THE IMPACT OF THE NEW ECONOMIC PARTNERSHIP FOR AFRICAN DEVELOPMENT (NEPAD) ON THE NIGERIA ECONOMY.
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THE IMPACT OF THE NEW ECONOMIC PARTNERSHIP FOR AFRICAN DEVELOPMENT (NEPAD) ON THE NIGERIA ECONOMY.
The African continent is described as the “black continent” for several reasons. One of such reasons is the fact that a greater proportion of their populations are poor, due to poverty and thus in need have help. Several administrations in government across Africa have at one time or the other, have instituted programmes to minimize the trend but have failed for several integrated and isolated reasons. However, there has never been a coalition of the African heads of state in collaboration with the west, until the initiative NEPAD. NEPAD’s fundamental objective is to minimize if not eliminate poverty in Africa by at least 50 percent in the next 15 years from its inception in July, 2001. One of such ways in which it hopes to achieve this herculean task is through the creation of viable job opportunities through direct foreign investment for its working population in other to maximize the output of the nation’s economy or otherwise effectively and efficiently utilize its human and natural resources. In other to know if NEPAD has impacted on the Nigeria economy as one of the fore runners of the programme after four years, a working hypothesis and questions were formulated. The research setting is Port Harcourt, which was sub-divided into dusters for adequate representation of age range and careers respectively. Chapter two constitutes the literature review and theoretical framework. The work as streamlined along the major theories of development, to reveal the features and condition necessary of and for a developed economy. The third chapter concerns itself with the method of data collection and type of analytical tools to be used. While we were able to analyze and draw inferences in chapter four that although NEPAD has the potential of impacting on the Nigerian economy, it has not impacted in impacted in any way in four years of existence. The fifth chapter is a blend of the summary, recommendation and conclusion based on findings during the course of this work. It was however revealed that although nepad had the potentials of aiding Africa’s development, it has however failed to impact on the lives of the people significantly and hence the economy.
TABLE OF CONTENTS
Title Page i
Table of Contents vi
1.1 Introduction 1
1.2 Statement of problem 2
1.3 Objective of study 3
1.4 Research questions 5
1.5 Research hypothesis 7
1.6 Scope of study 8
1.7 Significance of study 9
1.8 Organization of study 10
2.1 Literature review 11
2.1.1 Introduction 12
2.2 Economic development 13
2.2.1 The mainstream approach to development 13
2.2.2 The Neo-marist approach 14
2.2.3 The man centred approach 15
2.3 Theories of economic development 15
2.3.1 The production function based model 17
2.3.2 The harrod dommar growth model 18
2.3.3 The lewis dual sector model 19
2.3.4 Rostows stages of growth theory of development 21
2.3.5 The general theory of development 25
2.4.1 The new economic partnership for African Dev (introduction)
2.4.2. The Africa setting 27
2.4.4 The objectives of NEPAD 28
2.4.5 Action plans towards the achievements of the these objective
3.1 Method of study 33
3.2 Population sample 33
3.3 Method of data collection 34
3.4 Method of data analysis 34
DATA PRESENTATION, ANALYSIS AND DISCUSSION 36
5.1 Summary 50
5.2 Recommendation 52
5.3 Conclusion 54
Appendix A 56
Appendix B 57
Appendix C 59
Poverty, a state of depravity of a set of people unable to meet the basic necessities of life, has been the bane of less developed countries especially in Africa. Poverty as defined by the longman dictionary of contemporary English- new edition, states that “it is a situation or experience of being poor on the income below which a person or family is officially considered to be very poor and in need of help”.
The most widely and commonly discussed issue in the West-African sub-region in particular and Africa in general in the past five decades, has been the issue of under development despite several laudable policies and programmes, leading to a high level of poverty and consequently the vicious circle of recurrent malnutrition, illiteracy, poor health services and consequently high mortality rate.
Several administrations in different part of the continent at different period have been proffering solutions to eliminate or otherwise these trends in order to emancipate the black continent and place it at the fore front of the global economy.
The technical adviser to the West African monetary in institute (WAI) in a key note address on NEPAD’s need for 8.704 trillion to fight poverty in African, in Lagos argued that:
“NEPAD is aimed at eradication of poverty on the African continent and to place Africa on the path of sustainable growth and development” (business times, January 13-19, 2003 pg 25).
This is a clear indication of the state of affairs on the African continent and the sole objective of NEPAD. The present state of the Nigerian economy has left less to be desired of it and only viable if it could proffer attainable solutions to the already existing and impending problem of poverty. The government over the years have been formulating to combat the menace. The operation feed the nation (OFN) programme instituted in 1979 was aimed at creating a balance for the agricultural sector during the oil boom and help diversify the resource base of the economy and the school to land programme (STL) nurtured in 1985 aimed at giving college graduates a career in agriculture both failed to achieve its objective basically because of the change in administration and the over whelming influence of crude in the international market giving rise to the weak attraction of the agricultural sector.
The intervention of the international monetary fund (IMF) to assist in helping the nation develop its infrastructures to encourage scientific and industrial development brought about stringent measures and conditions for loan acquired that were more or less not used for the purposes resulted in our huge external debt to a tune of about 27 billion us dollars as at 1989. The structural adjustment programme in 1986 was also aimed at diversifying the economy base through the creation of viable job opportunities through increased local industrial output; hence the restriction of importation of consumables and capital goods that can be local sourced for and produced. This resulted in the in favourable loan of trade and hence the depreciation of the local currency naira, which has continually had an adverse effect on the Nigerian economy to date.
In view of the stack poverty and economic backwardness that has plagued the African continent over the years; African leaders have understood the necessity of presenting a viable and formidable front to combat the menace. In their bid to meet this objective the organization for African unity was formed. This organization was structured to maintain political stability and economic integration, but failed to fulfill these objectives as it was faced with complex challenges with the antecedent myriads of failures of developmental programmes by African leaders, the need to build a coalition of partners within the international community became imperative.
This is vividly supported by and excerpt of the former President of Botswana and Sir, Ketumile Masire’s key note address at the annual Murtala Mohammed memorial lecture in Abuja in 2003 where he posited that:
“it is perhaps pertinent to mention that the millennium partnership of the African recover programme (map) and the omega plan are the basis for what was initially known as the new African initiative (NAI) approved by the OAU summit of the heads of state and government on 11July, 2001. On 2nd October 2001. The NAI was transformed into NEPAD by the implementation committee of the heads of state, under the chairmanship of his excellency President Obasanjo here in Abuja” (The Business Times February 24, March 2, 2003 Pag 13).
From the foregoing, it is evident that the NEPAD programme has evolved through series of policy initiation at the continental level and as such attracted global attention and recognition.
Although there are critics to the view that NEPAD holds the solution to Africans developmental problem as argued by Yash Tandon when he posits that it’s another body trap just like SAP by the international world communities, but this time to allow direct foreign investment to provide for social infrastructure whereby opening the poor masses to the influence of the international market and its associated politics.
Also in terms of its implementation, success being a recurrent constrain with most African countries and especially Nigeria, it is believed that the intentions of the African leaders are genuine and sincere but must be pursed objectively as posited by President Olusegun Obansanjo when he state that;
“The laudable goals of NEPAD will not succeed if we do not courageously and comprehensively address the issues of corruption, mismanagement, waste and misplaced priorities in our societies’ (Daily Champion December 8, 2004).
In order to maximize the benefit accruable from NEPAD, therefore, the Nigeria government initiated the New Economic Empowerment and development strategy (NEEDS) programme in May 2004 with its subsidiary programmes at the state and local government level and styled states Economic Empowerment and Development Strategy (SEEDS) and local respectively. This is a Nigerian home grown poverty reduction strategy programme (PRSP) structured like that of the National Poverty Eradication programme (NAPEP) meant to help Nigerian enjoy the maximum benefit from NEPAD. As such, its objectives are similar to those of NEPAD and hence complementary.
The poverty and economic backwardness of African nations is evident and cannot be over emphasized. Over two thirds of its population live below one dollar per day thereby placing the greater percentage of her population under the poverty line. Mortality rate despite medial advancement is still high and the average life expectancy rate in the content in 54 years. While illiteracy rate is very low, unemployment is at an astronomical level and increasing by the day.
The state of the African continent is that though she is blessed with diverse human and natural resources, with crude in Nigeria, gold in Ghana, diamond in Bostwana and South Africa, etc. she is still wallowing in the mire of underdevelopment.
The resurgence of the need by the UN to empower the Africa content, in order to actualize its globalization objective, led to the inauguration of the New Economic Partnership of African Development (NEPAD) in July 3, 2001. The programme is presently speartheaded by the Nigerian and south African government, with a major objective of reducing poverty by 50 percent by the year 2015 as one of the millennium development goals (MDG).
Consequently, one of the ways by which it intends to achieve this laudable goal is through the creation of viable job opportunities for its ever-increasing population. It is envisaged that about 7 million jobs would have been created by the year 2007, in view of the government’s determination to mobilize the private sector, as the engine for growth. This is supported by the president of the manufacturers association of Nigeria (MAN) Mr. Charles Ugwuh as he posits that:
“Canvasing the pursuit of full employment in the economy, which itself a ling with needs target”…… “it is universally accepted that the major sources of employment generation are the agricultural and manufacturing sectors of the economy. Consequently these two sectors must be empowered to grow” (The Guardian March 30, 2004 pg 33).
The antecedent argument therefore forms the curst for this research work, as employment generation is one of the formidable means by which poverty can be eradicated or reduced in any society.
1.2 STATEMENT OF PROBLEM
Generally from the introductory discourse, it is evident that there is a perplexing problem with the African continent, resulting in its underdeveloped status. As posited by Yash Tandon 2002 that though the African continent is richly blessed and Nigeria in particular, there are yet no visible improvements in the lives of its people. Several other programmes of development had failed such as of, SAP, SLP, etc, mainly because of ineffectively implementation, inconsistency and policy reversals, inadequate resources and neglect of the private sector as a result of governments’ overbearing role in the economy.
Hence the need to pursue this study on the impact of NEPAD, becomes imperative, to enable us determine if it has impacted on the lives of the people and consequently the economy. Specifically, the following problems would be considered.
i. The problems associated with the Nigerian economy prior to the inauguration of NEPAD.
ii. The relevance of the policies of NEPAD is the solving of these problems
iii. The effort or accomplishments of NEPAD in the past four years and some months of its existence in solving these problems needs to be investigated.
iv. The measures put in place by the Nigerian government and its citizenry to derive maximum benefit from NEPAD.
These and some other chains of problems have necessitated a cursory enquiry into the activities of NEPAD and what prospects it has for the Nigeria economy.
1.3 OBJECTIVE OF STUDY
The relevance of every research is predicated on the need to investigate empirical issues that would did the improvement of the society and welfare of people. Some of the objectives of the study would include.
i. Revealing some problems inherent in the Nigeria economy that as constrained its development.
ii. analyzing the constraints of the Nigerian economy in the light of the objectives of NEPAD in revealing its effectiveness in adding the Nigerian economy towards poverty eradiation and sustainable growth and development and
iii. assessing the achievements of NEPAD in the past four years and its impact on the Nigeria economy towards sustainable growth and development.
1.4 RESEARCH QUESTIONS
Certain questions would be considered in the process of carrying out this research. The ability of the research instrument to find relevant answers to these questions would enhance the effectiveness of this work.
Some of the question shall include;
i. What are the constraints to poverty alleviation, sustainable growth and development in the Nigerian economy?
ii. what are the objectives of NEPAD?
iii. what can Nigerian do to benefit maximally from NEPAD?
iv. has Nigeria benefited in any way so far?
These and some other questions shall be reflected in the sample questionnaire to respondents in other to achieve the objectives of this study.
1.5 RESEARCH HYPOTHESIS
The hypothesis to be tested here shall be stated in the null form therefore, the following null by hypothesis shall be tested.
H01: there is no relationship between the objectives of NEPAD and the eradication of poverty in Nigeria.
H02: there is no relationship between the objectives of NEPAD and the achievement of development in the Nigerian economy.
H03: NEPAD has not impacted on the Nigeria economy, positively, so far.
1.6 SCOPE OF STUDY
The scope of this research shall be limited to the Nigerian economy. The impact of NEPAD on the African economy would not be considered here though its outcome could be used in other African economy as a comparative study.
The research shall be limited to the few literature available as at the time of this analysis of NEPAD. This is as a result of its nascent position as much has not been written on it.
1.7 SIGNIFICANCE OF STUDY
The outcome of this study would be useful to the Nigerian government, policy makers, academics and other African countries. It would enable the Nigeria government to know the level of NEPAD’s impact on its citizen and help them position the economy towards achieving the best from NEPAD.
Secondly, it would help policy makers formulate appropriate economic development and poverty eradication policies that would improve the lives of its citizens and overall efficiency of the economy through NEPAD and make our home grown poverty reduction strategy programme (PRSP), NEEDS succeed.
Consequently, other African countries can emulate our success by a applying it to their economy. This is because virtually all African countries have a peculiar economic development problem. Finally, it would contribute to the existing literature, data and write-up on NEPAD. It would also facilitate other research into the activities of the NEPAD programme.
This is the position of this research work. However it does posit to fully exhaust the impact of NEPAD on the Nigeria economy, as it is both complex and nascent.
1.8 ORGANIZATION OF STUDY
The research work is dividend into five chapters will the introductory chapter one giving the framework of the study in sequence followed by statement of problem, objective of study, research questions, hypothesis, scope of the study and its significance chapter two gives a reviewed insight into some developmental programmes instituted by the government since its independence in the introductory part, followed by reviewed theories of development by various scholars to reveal or reflect the true features of a developing state and finally, literatures on the new economic partnership for African development. The third chapter reveals the method of study through its population sample, method of collecting data and the data analysis method of be sued. Chapter four is the presentation of the data its analysis and discussion resulting from the observations that shall be encountered during the course of this study. The research is concluded in chapter five, reflecting the summary, recommendations based on findings and conclusion.