Matters Arising: How Roosevelt’s New Deal can be used to rescue Nigeria’s economy

Dr. Lanre Towry-Coker, FRIBA, FNIA, MA Law (UL), Ph.D, a former commissioner for housing in Lagos State, with a doctorate from Lagos State University, is founder of Towry-Coker Associates since 1976, and a professional architect with a postgraduate qualification in Architecture from the University of North East London. He had his professional training at the world famous Royal Institute of British Architects (RIBA) and is an Associate of the Chartered Institute of Arbitrators in the United Kingdom (ACI.Arb.); a Fellow of the Nigerian Institute of Architects (FNIA), he was elected Fellow of The Royal Institute of British Architects, (founded 1834), in November 2016, and is one of only forty architects worldwide to be so honoured. He is also the author of the book, “Housing Policy And The Dynamics Of Housing Delivery In Nigeria: Lagos State As Case Study” published by Makeway Publishers, and available on Amazon and also at The Royal Institute of British Architects, Portland Place. London.

His consortium, Towry-Coker Associates/Neue Heimat Abuja Consortium, was also one of the master planners of the Federal Capital Abuja, along with Japanese architect Kenzo Tange and Brazilian architect Oscar Neimeyer.

Franklin D. Roosevelt’s “New Deal” initiatives during the Great Depression aimed to stimulate the U.S. economy through various programmes and projects.

Key components included infrastructure development (like the Works Progress Administration), financial reforms, and social welfare programmes. These efforts provided jobs, stabilised the banking system, and supported struggling citizens, collectively helping to lift the economy out of the Depression.

Here are some key aspects:

1. Infrastructure Projects: The Works Progress Administration (WPA) was a major initiative, employing millions to work on public infrastructure projects like roads, bridges, and public buildings. This not only improved the country’s infrastructure but also provided jobs and income to those in need.

2. Financial Reforms: Roosevelt introduced measures such as the Emergency Banking Act and the Glass-Steagall Act. The Emergency Banking Act aimed to restore confidence in the banking system by declaring a “bank holiday” and allowing only solvent banks to reopen. The Glass-Steagall Act separated commercial and investment banking, aiming to prevent the risky financial practices that contributed to the Depression.

3. Social Security Act: Enacted in 1935, this established the Social Security system, providing financial support to retirees and the unemployed. This social welfare programme aimed to address the widespread poverty and economic insecurity faced by many Americans.

4. Agricultural Adjustment Act (AAA): The AAA sought to stabilise farm incomes by addressing overproduction and falling prices. It paid farmers to reduce production, thereby raising agricultural prices and incomes.

5. Tennessee Valley Authority (TVA): This was a comprehensive development programme for the Tennessee Valley region, addressing issues like flood control, electricity generation, and economic development. It created jobs and improved living conditions in a depressed area.

6. Civilian Conservation Corps (CCC): Focused on environmental conservation, the CCC provided employment for young, unemployed men in forestry, soil conservation, and other related projects.

These initiatives collectively aimed to create jobs, stabilise the economy, and provide a social safety net for those struggling during the Great Depression. While opinions on the New Deal’s overall impact vary, many historians credit it with helping to mitigate the effects of the Depression and laying the groundwork for future economic recovery.

7. National Industrial Recovery Act (NIRA): The NIRA sought to promote fair business practices and stimulate industrial recovery. It established the National Recovery Administration (NRA) to work with industries to establish codes of fair competition, minimum wages, and maximum working hours.

8. Federal Deposit Insurance Corporation (FDIC): The FDIC was created to insure bank deposits, providing greater stability and confidence in the banking system. This measure aimed to prevent the bank runs that had contributed to the economic crisis.

9. Securities Act of 1933 and Securities Exchange Act of 1934: These acts aimed to regulate the securities industry, restore investor confidence, and prevent the abuses that led to the stock market crash in 1929. The Securities and Exchange Commission (SEC) was established to enforce these regulations.

10. Housing Programmes: The New Deal also included housing initiatives, such as the Public Works Administration (PWA) and the United States Housing Authority (USHA), which aimed to address housing shortages, improve living conditions, and create jobs in the construction industry.

11. Cultural and Artistic Projects: The New Deal included programmes supporting the arts, such as the Federal Arts Project, Federal Writers’ Project, and Federal Theatre Project. These projects provided employment for artists, writers, and performers, contributing to the cultural development of the nation.

It’s important to note that while the New Deal had significant positive impacts, it also faced criticisms. Some argued that it didn’t end the Depression entirely and that World War II was the ultimate catalyst for economic recovery. Nevertheless, the New Deal left a lasting legacy, shaping the role of the federal government in economic and social affairs.

President Franklin D. Roosevelt, however, faced the challenge of garnering support for the New Deal from all 48 states (the United States had 48 states at the time; Alaska and Hawaii were admitted later). Here are some key factors that contributed to the acceptance of the New Deal across the states:

1. Communication and Leadership: Roosevelt was a charismatic and effective communicator. His fireside chats, radio broadcasts addressing the nation, helped build public support for his policies. His leadership during a time of crisis was instrumental in gaining trust and cooperation.

2. Economic Desperation: The Great Depression created widespread economic hardship, and many states were desperate for relief. The severity of the economic conditions made leaders more willing to consider and support federal intervention.

3. Flexibility of Programmes: The New Deal comprised a variety of programmes that could be adapted to the specific needs of each state. This flexibility allowed states to tailor the initiatives to address their unique challenges and priorities.

4. Political Alignment: Roosevelt’s Democratic Party had a strong presence across the nation, and the Democrats gained further support during the 1932 elections. This political alignment facilitated the implementation of New Deal policies at both the federal and state levels.

5. Public Support: The public, experiencing the hardships of the Depression, often supported the New Deal. This support translated into pressure on state leaders to cooperate with federal initiatives aimed at economic recovery.

5. Collaboration with Governors: Roosevelt worked closely with governors, regardless of political affiliation, to ensure a coordinated effort between federal and state governments. This collaboration helped in implementing and adapting New Deal programs at the state level.

6. Pragmatic Response to Criticism: Roosevelt was willing to adjust and modify New Deal programmes in response to criticism. This pragmatism helped in addressing concerns and gaining broader acceptance.

It’s essential to note that while the New Deal had widespread support, there were also critics who argued against its policies. However, the combination of economic necessity, effective communication, and political leadership contributed to the acceptance of the New Deal across the majority of states.

The New Deal, as a historical set of policies implemented in the United States during the 1930’s, was tailored to address specific economic and social challenges of that time. While the principles of government intervention, economic stimulus, and social welfare are universal, the applicability of a similar initiative in Nigeria or any other country would depend on the specific context, challenges, and political and economic conditions.

Nigeria, like any other nation, may face unique circumstances that require tailored solutions. Factors such as the country’s economic structure, political landscape, social dynamics, and historical context would influence the feasibility and effectiveness of implementing a New Deal-style programme.

Governments around the world often design policies and programmes based on their specific challenges and goals. If Nigeria were to consider a comprehensive economic recovery initiative, it would likely involve a careful assessment of its current situation, consultation with experts, and the development of targeted strategies to address the country’s specific needs.

In conclusion, while the principles of government intervention for economic recovery and social support are relevant globally, the exact nature and design of any initiative would need to be adapted to the unique circumstances of Nigeria.