NATIONAL ECONOMY: Distribution sector

Hello! You are warmly welcome to another week, and another episode off the on going series about national economy. I hope so far, its being enlightening? To our first timers, you are warmly welcome too. I hope today’s read will add to your knowledge.🙏

So today’s topic is about distribution; the second phase of the three activities that determines the fate of every ecomomy; either individual, societal or national.

The bitter truth is, until you have goods and services to render, this sector is almost useless. Irrespective of how large a nation is, if they do not produce anything,  they will not dsitribute anything except they import or buy from some other source. Distribution in this context can be defined as the commercial activity of transporting and selling goods from a producer to a consumer. Which means, distributional sector is the bridge between the maker and the consumer.

Pic Credit- FintechAge

For a nation, this bridge will always be, even if the production sector is nonfunctional but it will be at the detriment of the national resources; that I will explain later. Distribution can be divided into two segments; the transportation process and the trading process. Transportation process is what makes automobiles and roads important in a nation while trading aids buying and selling of goods and services amongst citizens.

MAJOR MISTAKES: transportational means and resources is needed for distribution; but also requires alot of maintenance. Therefore if a nation does not produce their fuel, if they do not produce their cars and do not have qualified indigenous contractors to help build and properly network their roads; all the resources needed to bring in experts, to import cars and/or required to maintain and keep this sector active becomes a big weight on the nation.

This was why I previously said “a nation without a system does not have an economy”. A system in these context is defined as a body made up of interdependent components forming a unified whole. The benefit of a system is that, all the different sectors are functional on their own. That is what will make it hard for a wrong choice of leader to affect the economy of the nation.

If a nation is not self sufficient and self equipped, the economy of that nation will be plagued; their resources will be used for irrelevant projects and corruption will be the order of the day while hunger and poverty slowly plague the citizens.

With regards to trade, if the nation is not producing, definitely they will resort into importing good and expertise to render services. This will inflate the amount goods will be sold, considering the amount and stress it took to import goods into that nation. And when expertise are brought in from another nation, it means the resources paid those expertise will be spent outside the shores of that nation.

Pic Credit- EurActiv

Same applies to individuals; imagine when you do not work but you know you need to eat, wear clothes and have a roof over your head. It’s either you become a begger or steal to survive. A nation that does not produce anything will become a begger and most of their citizens will resort into stealing for survival reasons. 

Another effect of a nonfunctional production sector on distribution sector is the fact that, most of the goods that will be importated for distribution will be preserved with unchecked chemicals. This means the goods distributed amongst the nation will not be first hand products. That meana that nation will become a dump site of unused clothes, expired foods, goods and chemicals; the very way you give what you do not need to beggers.

All of this happens because consumption is constant. So, when consumption is constant and the production sector is not functioning,  the nation is plagued already. Inflations will make it hard for anybody to live in that nation, hence the few intelligent citizen of that nation will run to add value to other nations where things are more organised and orderly.

LESSON OF THE DAY: am saying it re-emphatically, a nation’s woe starts from not having a functioning sytem that helps the nation manage all the various sectors in it. The two most important sectors are the educational and agricultural sectors because both determines how the citizen of the nation turns out and how the economy fair respectively. And when the production sector is nonfunctional, distribution sector is as good as dead too! It will be a burden on the budget of the nation.

Thanks for reading through. I hope you gained a thing or two. Blogs doesnt give you the chance to expand on topics but I hope you understood my bone contention in today’s post. Please do not forget to share this on your social media page as well as leave comments, questions and/or emphasis if you so wish. Next episode is the about the consumption sector which will take us towards the health and vitality of man. Until then, do take care of you! Ciao!🙏