Ways The Governments Waste Money


Governments over the world are being accused of wasting tax payers money on unnecessary expenditure. Priorities of governments at times usually are not in line with realities on the ground and within no time, money may be spent on projects that their aims have nothing to do with the communities living around the project areas. Governments waste money by constructing projects that become white elephant projects at the end as there is no use for them as intended before.

Governments waste money through dubious local international and international deals that they enter without proper measures taken to protect the public’s money when they don’t happen in the end. When a project is cancelled at the end and no work is yet to be done, it may happen that the government is forced to make payments for not fulfilling their part of the bargain as earlier agreed. This is normally projects or contracts started with the aim of defrauding the government of funds mostly through corruption.

Tax payers’ money is lost through overpricing of products and services by people who supply the government agencies. Products and services are highly overpriced when compared to average market rates in the country. The government loses the extra funds due to the over-payment of the particular products.

Public funds are lost through other ways like double payments for goods and services offered by different government agencies whose roles overlap each other. A government health agency may have oversight roles over a particular area that is being served by another government entity. This may be ignored but in real sense, it is a way that the government wastes money which adds up to millions when everything is factored in.

Governments waste money through the spending of the huge budgets on wages and salaries to bloated civil services that does not provide value for money. Many governments have bloated civil servants who do not have much to do in the offices and many government agencies but have to be paid at the end of the month. They get to earn salaries with no equivalent job done. When taken into account, the governments will realize much money is also lost through ghost workers who are paid but they do not actually exists in their work stations as they appear to be in official documents. Ghost workers are a common problem in many countries and eradicating them has proved a challenge for many countries so far.

Government workers are known for their extravagance when it comes to expenditures involving the funds belonging to the government. They plan for expensive trips to exotic destination for functions or meetings that would otherwise be held within their boundaries and at cheap prices. This is a way that governments waste money and they should have caps that protect such from happening.

Governments of poor nations are known for their insensitive spending when they spend excessively on lavish parties for state guests and giving state gifts to people who would otherwise not deserve such. All this is at the expense of their general public that is surviving on little. This is another way the governments lose money.


When you look to create a product most people will only view the economic imperative of profit, this is often very self-centred and limited in those it serves and only generally for a very limited time period.! If we look at it differently and take a simple product like a copper bangle.

46664 Bangle COPPER

Now ordinarily the copper would be mined in a remote location and sent to china for refining and then cast into usable ingots or wire strand. That strand is then sold to a factory and shaped into a bangle as an example. The bangle is sold to a merchant who then adds packaging and marketing to sell to a consumer. This all sound great but when the merchant orders the bangle from let’s say china the only imperative are hard costs so they can maximize profit and cover the rent marketing and profit they require, which is often in the many 100 percentile, while the manufacturing process is often a point of human rights controversy.

Now take that very same bangle and have the mine in your own country, refine the metal in your own country rather than ship the ore out via container, refinery jobs created. The refined metal in wire or ingots are then sent to a factory to make into bangles, more labor and jobs created. The packaging is now made in your own country, helping the packaging industry and more Jobs. The marketing and sales function are now helping the economy, but if we started exporting these items we will build the country even more as we add to a positive balance of trade with foreign money entering the country.

Beneficiation is the simple process of taking a raw material and adding as many stages of value to it as possible inside our own economy. The improvement in stability and economic viability of the country we live in is something we all feel the impact of in areas we often don’t realize, like crime and the informal sector where most jobs reside in developing nations.

Mining the ore and shipping it elsewhere only creates mining jobs, Adding the value to the complete products creates more than double the jobs but more importantly it will have all the additional people adding to the economy at multiples.

When we study the resources of the planet we notice some startling facts almost immediately, the largest proportion of mineral assets are found in Africa, the highest amount of beneficiation to base materials and products happens in Asia. We have the power to change the face of Africa through one simple principal “ Beneficiation”  Start small but think big and then we must scale fast to catch up, the world won’t wait for us.

Apply this to any industry and perhaps you will see things like food products, metals and minerals, clothing, service industries, pharmaceuticals and much more. Today look at what you do in your company and ask yourself, how do we add value to the products using resources from our own country? This could be as simple as buy a product from outside your country but make the packaging in your country to localize it and add value in a way your culture understands. You might be surprised to see an improvement in sales of your product when you start to care about the local content.