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AN EVALUATION OF THE OKOWA’S URBAN BIAS THESIS IN IHIALA L.G.A OF ANAMBRA STATE
This research work focuses on the evaluation of the Okowa’s urban bias thesis in Ihiala local Government Area of Anambra State. The objective that guided this research work was to review the Okowa’s urban bias thesis and then determine how public policy implementation affects in Ihiala Local Government Area. Based on the above objectives, a hypothesis was formulated and we used questionnaires to collect the data from primary source. These sets of questionnaires were drawn from three categories of respondents-farmers, students, traders, civil servants, are classified by three selected sectors namely, Agriculture, education and health, as regards the composite six towns in Ihiala. The Chi-square was used in testing the hypothesis, while frequency tables and simple percentages were used in the data analysis and presentations. However, we found that public sector expenditure, particularly on Agriculture, education and health is highly urban biased in Ihiala. This finding conforms with the Okowa’s thesis on urban bias in Nigeria Development, which therefore suggests the inequitable distribution of potential development programmes in both the urban and rural sectors in Nigeria. The government should adopt some of the potential development policies and programmes to be effective in reaching out to the rural towns and communities. Human resources development should be equitably extended to both the rural and urban sector.
TABLE OF CONTENT
Title page i
Table of content vi
CHAPTER ONE: INTRODUCTION
1.1 Background of the study 1
1.2 Statement of problem 3
1.3 Objective of the study 4
1.4 Research questions 4
1.5 Research hypothesis 4
1.6 Significance of the study 5
1.7 Scope and limitation of the study 5
1.8 Organization of the study 6
CHAPTER TWO: LITERATURE REVIEW AND THEORETICAL FRAME-WORK
Literature Review 7
2. Theoretical framework 16
2.1 Harris and Todaro model 17
2.2 Jorgenson’s Neo-Classical Theory 18
2.3 Fei-Rains theory 19
2.2.4 Lewis theory of development 20
2.2.5 Development and urban bias in Ihiala 22
2.2.6 The Keynesian economic theory 23
CHAPTER THREE: RESEARCH DESIGN AND METHODOLOGY
3.1 Research design 24
3.2 Population of the study 24
3.3 Sampling technique 24
3.4 Sample size determination 25
3.5 Data collection instruments and procedure 26
3.6 Method of data analysis 27
CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS
4.1 Introduction 29
4.2 Allocation of questionnaires and rate of returns 29
4.3 Analysis of respondents 30
4.4 Analysis of relevant questions 31
4.5 Test of hypothesis 32
4.6 Discussion of results 35
CHAPTER FIVE: SUMMARY, RECOMMENDATIONS AND CONCLUSION
5.1 Summary 37
5.2 Recommendations 38
5.3 Conclusion 39
1.1 BACKGROUND OF THE STUDY
Urban bias may be referred to a situation of the development process, whereby the urban sector benefits relatively more in the rural-urban distribution of public sector expenditure in an economy, during a particular period of time. Thus, the provision of social and physical infrastructure through public investment and expenditure on some goods and services can directly improve productivity and development in both the urban and rural sector through a more efficient and equitable allocation of resources.
However, a developing region maybe classified into two; urban sector and the rural sector. The urban sector is the region that is defined by town or cities; it is classified as the industrial or modern areas, whereas, the rural sector is an area that is defined by communities, it is largely dominated by traditional agricultural activities. Some developmental economists of the structuralist school posit that some categories of government expenditure on the urban sector are necessary to overcome constraints of economic growth.
Hence, the responsibility of the government in any economic system irrespective of the political arrangement is to initiate policies towards the achieving of four basic micro-economic goals which are price stability, the government regulates the distribution of public goods and services in stimulating the productive capacity of the economy.
Over the years, Nigeria has made conscious and determined effort to attain a high level of social and economic transformation of the economy. So far, the Nigeria economy has had four (4) national development plans in which varying emphasis were made on the achievement of the development goals and objectives, several policy tools were adopted including monetary policy, fiscal policy, exchange control measures, changed from time to time to reflect the changing economic environment and circumstances.
Okowa’s (1991) urban bias thesis stated that a Development policy should include;
i. Enhanced economic growth
ii. Reduction over time of economic dependency
iii. Reduction over time of economic inequality
iv. Reduction over time of unemployment
v. Maintenance of stable price (inflation)
We can therefore identify urban bias with respect of any one of the mentioned development aim. If economic growth could have been enhanced by a distribution of public sector resources that allocated more to the urban sector than to the rural sector, then we say that the given rural-urban perspective is such as to generate greater rural-urban economic dependence than would have been the case. Thus, inequality bias is a situation whereby distribution of income has a relative greater benefit in the sector, in this light, the ratio of unemployment and inflation between the rural and urban sector is used as a measure for inequality bias.
In this line, many development scientists have stated that the rationale for balanced and equitable development to take place in any economy, certain efforts should be made to develop the rural and urban sector simultaneously. In this thesis, Professor Okowa (1991) held the view that development effort in Nigeria has been urban biased, although severe measures have been taken by the Nigeria government to develop the rural areas.
However, our concern in this study is to evaluate the Okowa’s urban bias thesis in Ihiala local government area of Anambra State this study cannot cover the entire country, the researcher focuses on his local government area of origin.
1.2 STATEMENT OF PROBLEM
Prof Okowa’s thesis was published in 1991, about 18 years now and on other research to the best of my knowledge has been carried out to affirm or dispute his urban bias thesis. There is urgent need to do this, in order to see if there are policy changes to develop the rural areas. Again, we also need to study the rural areas to find out empirically, how the policy changes (if there is) have affected the rural areas. We do not have ready evident to show that such research are carried out especially in the researcher’s Local Government Area-Ihiala Local Government Area of Anambra State.
This research is intended to bridge this observed gap. As at when this research was carried out this findings could be said to be correct in many respects. Therefore, it is in the light of the above that this research is undertaken to evaluate the Okowa’s urban bias thesis in Ihiala Local Government Area of Anambra State.
1.3 OBJECTIVES OF THE STUDY
The activities of this research project include:
i. To review the Okowa’s urban bias Thesis and the various development theories.
ii. To determine whether government policies are urban bias
iii. To find out how the policies are implemented in Ihiala Local Government Area.
1.4 RESEARCH QUESTIONS
Some of the questions the study will attempt to proffer answers to include the following;
a. What are the urban development strategies employed by the government in developing Ihiala Local Government Area?
b. To what extent are these government strategies employed to cause urban bias?
c. How do these government expenditure strategies compared in there relative effectiveness in the rural and urban sector?
d. Does public sector expenditure in the rural and urban areas complement each other synergistically?
e. What are the implications of urban bias?
1.5 RESEARCH HYPOTHESIS
The hypothesis have been put forward for testing
H0: Public sector expenditure in Ihiala Local Government Area is not urban bias
H1: Public sector expenditure in Ihiala Local Government Area is urban bias.
1.6 SIGNIFICANCE OF THE STUDY
The significance of this study lies on the fact that our rural communities to a large extent need to be developed. It is our belief that this study will serve as an important reference to local government for future development of rural area, based on suggestions advanced therein. It will also serve as a reference point to others who find time of reason alongside with us on the issue of the rural development in Nigeria.
Based on the findings of the research project, the government will be in a better position of either adding or dropping some public sector expenditure programmes in the rural or urban sector in Nigeria.
1.7 SCOPE AND LIMITATION OF THE STUDY
The scope of this study on the evaluation of the Okowa’s urban bias thesis focuses in the Ihiala Local Government Area of Anambra State in Nigeria.
Ihiala Local Government Area is made up of about six (6) towns (Uburu, Mbosi, Iseke, Azia, Orsumaonyu and Lilu) with various villages. The researcher may not go beyond the above scope.
However, there are two limiting factors that affected the researcher’s progress in this work. One is that of inadequate funds to carryout an elaborate research that concern Anambra State in Rivers State. Whereas, the second factor is that of time constraint, hence, the researcher was working within a time frame despite the prolonged academic staff union of universities strike action.
1.8 ORGANIZATION OF THE STUDY
This study is organized into five interrelated chapters.
Chapter one introduces the background of the study, statement of the problem, objectives, research questions, hypothesis, significance, scope, limitations and the organization of the study. Chapter two reviews related literature and theoretical frame of the study.
The three is the research design and method of the study. Chapter four presents and analyzes the data. Finally, chapter five summarizes, recommends and concludes the study.