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Nigerian Presentation 1
Transcript of Nigerian Presentation 1
By: Katy, Teju, Jason, Sophia, Jeff History of Nigeria On January 1st, 1901, Nigeria became apart of the British empire.
In 1954 Nigeria had 3 regions ( Northern, Western, Eastern)
Regions were responsible for education, agriculture, public health, and local government.
The center was responsible for foreign relations, defense, the police, overall aspects of finance and trade policy, and major forms of transport and communication.
Share responsibility between the center and regions were economic development, higher education, and labor matters
The British divided and ruled by using local authority structures
The richest region was the west, which was also favored by British rule
Northern region was the largest, but poorest region
Independence was on October 1st, 1960 HDI http://hdrstats.undp.org/en/countries/profiles/NGA.html http://www.afdb.org/uploads/pics/map_africa_western.gif
Is Nigeria's economic history unique to it
or is this a shared relationship amongst
its neighboring countries of West Africa? THE OIL BOOM `
Arab Oil Embargo Act by US in 1973 All these countries have one commonality,
they are full of raw materials:
crude oil, cotton, palm products and cocoa
Cocoa, coffee, Didier Drogba, petroleum, cotton, bananas, pineapples, palm oil and fish
Uranium ore, livestock, cow, peas, and onions
Petroleum and petroleum products, cocoa, rubber, machinery, processed foods, and entertainment
Capital goods, food items,
petroleum produce, fuel, capital equipment,
machinery, vehicles and parts,
petroleum, cereals, chemicals,
manufactured goods, and live animals What is going on in the 80's and 90's? Countries involved in West African economy:
India, China, Thailand, Netherlands, France, Germany,
United States, Brazil, Spain, and Japan These countries are not just receiving the exports
they are also providing the imports Nigeria:
80% of exports are petroleum but
70% of imports are domestic goods,
what's happening? Arab Oil Embargo Act + Petroleum Oil = Opportunity,
but who benefits? Petroleum Oil:
West African resource Opportunity:
Foreign countries importing
West African resources, i.e. Petroleum
AND supplying imports to those
West African countries The 90's: Initiatives and Reconstruction What happened to West Africa? -Infrastructure
-unite productive sectors
-Involvement of banks -HIPC;
-Highly Indebted Poor
-Poverty Reduction Strategy
-technology The 80's: Oil Boom and Bust -Insufficient infrastructure and technologies to self sustain:
-Debt servicing takes 30% of revenue
-3x resources given to external debt seeking than education and health -Cyclic Stagnation
-Unstable oil prices
-borrowing thus more debt
-Inflation -The power rests in the hands of the customers, i.e. NOT West Africa. A MORE HOLISTIC APPROACH TO ANALYZING DEVELOPMENT IN NIGERIA “The Industrial sector and the Agricultural sector if strongly focused would help in achieving an accelerated and balanced growth in Nigeria economy since the manufacturing can draw lots of inputs from agriculture where Nigeria seems to have comparative advantage. Agricultural growth in Nigeria is constrained by Industrial growth.”
-Uzochukwo Amakom Industrialization in Nigeria -Shift from economy dependent on agriculture to one dependent on oil
-Industrialization seen as way for Nigeria to advance to economic prosperity
-Competition between regions for economic dominance leads to the
“Golden era” of industry policy in Nigeria
-1964-65 oil-boom From Independence to End of Civil War Nigerian Enterprises Promotion Decree in 1972: Government becomes
directly involved in all aspects of the economy
-Exchange rate regime makes economy heavily dependent on imports
-Manufacturing sector sees misleading success
-Unhealthy transition from “nurture capitalism” to “pirate capitalism” The 1970s and the Oil-Boom -Era is defined by stagflation and disequilibrium in the balance of payments
-Government is no longer able to afford indigenization policy --> Industrial
-The Structural Adjustment Program: a new vision for industrial policy The 1980s and the Structural Adjustment Program Oil Boom
Two Year Drought 1970’s Exploitative strategy
Minimal intervention Colonial Period Agricultural Development
of Nigeria Nigeria and Trade - External Dependence - Trade liberalization - Dependence on food imports Structural Adjustment Program Bibliography IMPLICATIONS OF THE RELATIONSHIP BETWEEN GDP PER CAPITA, POVERTY RATES AND THE HDI -We notice that as GDP
per capita rises, so does
poverty and the HDI.
-However, we notice that
the slope of the GDP per
capita graph is steeper
than the slope of HDI HDI - Lack of efficiency in turning material wealth into development.
-Between 2005 and 2011,
Nigeria’s HDI value increased from 0.429 to 0.459, an increase of 7.0 per cent or average annual increase of about 1.1 per cent, while annual GDP growth has a rate of 6.4%, and has GNI/capita has increased over 30% from 1980. Rising Poverty and Inequality Source: UNDP HDR 2011 -As GDP increased, poverty levels increased as well. From 1980-2011, Poverty rates have risen from 27.2% to 71.2%.
-Thus, inequality in distribution. http://nigeria.prognoz.com/Map.aspx UNEQUAL DEVELOPMENT WITHIN NIGERIA
-OIL WEALTH AND ITS DISTRIBUTION
*The Case of Lagos
-GENDER INEQUALITY -"Nigeria’s HDI for 2011 is 0.459. However, when the value is discounted for inequality, the HDI falls to 0.278, a loss of 39.3 per cent due to inequality in the distribution of the dimension indices"
UNDP HDR 2011 on Nigeria WHEN HDI IS ADJUSTED FOR INEQUALITY "In Nigeria 54.1 per cent of the population suffer multiple deprivations while an additional 17.8 per cent are vulnerable to multiple deprivations. The breadth of deprivation (intensity) in Nigeria, which is the average percentage of deprivation experienced by people in multidimensional poverty, is 57.3 per cent. The MPI,
which is the share of the population that is multi-dimensionally poor, adjusted by the intensity of the deprivations, is 0.310."
UNDP HDR 2011 for Nigeria Multidimensional Poverty Index (MPI) THE INFORMAL ECONOMY - Presently stands at two-thirds the size of formal economy
-About 80% of the population engages in the informal economy.
-Largely composed of people distributing goods from other countries; predominantly technology — rather than producing their own marketable goods. Domestic goods are also marketed: mainly foods and agricultural commodities.
-Women very active in the informal sector and in the home. The informal sector in Nigeria employs about 46% of the female labor force -Different views of what Happiness is, different criteria, different outcomes
-In 2011, a Gallup poll ranked Nigeria as happiest in the world.
-In that same year, the Happy Planet Index ranked Nigeria as 125th out of 151. ALLOWING FOR VARIATIONS IN VALUATION: HAPPY PLANET INDEX