In a recent report entitled ‘Global Economic Prospects’ released in June, 2014, the World Bank enunciated, among others, that growth will “remain robust in Nigeria, the region’s largest economy”. The bank based its position on a strong domestic demand in the Nigerian economy which has underpinned the country’s GDP growth. Of course, it is no longer news that, with a Gross Domestic Product [GDP] of 510 Billion US dollars, Nigeria has leapfrogged South Africa as the largest economy in Africa and 26th in the world. It must, however, be clearly understood that being the largest economy does not necessarily connote the best or most developed economy. In other words, an increase in the growth of GDP does not automatically translate into economic development, without the necessary policy complementarity. Therefore, that Nigeria, with her humongous GDP, is the largest economy should not be misconstrued to be the best or most developed economy in Africa! South Africa is still way ahead of Nigeria, in terms of economic development and human development indices, based on current World Bank rankings. While the sole criterion for being the largest economy is purely the Size of the GDP, a developed economy is predicated on the soundness of economic policies, [especially in terms of their positive impact on the people] business environment, good governance and human development indices. This is what development economists refer to as inclusive economic growth.
The World Bank/ International Finance Corporation Report on ease of doing business ranked Nigeria 133rd, among 183 nations. In the regional ranking, Mauritius is the best country for doing business in Africa, while Nigeria, the so called largest economy in Africa, is 15th. South Africa, Rwanda [a former war thorn country], Botswana and Ghana are second to fifth, in Africa. Similarly, the Global competitive index [2011-2012], placed Nigeria on 127th position, out of 142 countries, in terms of enabling business environment. Some other economic indicators of low growth rates in which Nigeria has performed poorly[out of 142 countries] include; infrastructure-135, ease of access to loans-125, soundness of banks-136, regulation of securities exchange-81, business sophistication-64, capacity for innovation-54, state of the environment-119. In the area of power generation, for a country claiming to be the largest and one of the fastest growing economies, Nigeria’s per capita energy consumption is one of the lowest in the world- about 12 watts, as against that of South Africa- 478 watts, Mauritius- 198 watts, Gabon- 124 watts, Cameroon- 29 watts, Ghana- 27 watts.
From the foregoing statistics, it is evidently clear that there is a ‘reverse growth’ or “reverse progress” in Nigeria, such that while economic growth rates like Gross Domestic Product (GDP), Government revenues, balance of payments, external/foreign exchange reserves etc., are increasing, paradoxically the misery indices of poverty, hunger, illiteracy, unemployment, poor infrastructure and other social-economic deprivations are also exponentially on the rise! This is the tragic story of Nigeria which has been ambivalently and metaphorically described as “Rich Country, Poor People”. While I applaud the rebasing of the GDP and what it portends for Nigeria as the largest economy in Africa, in terms of foreign investments, economic opportunities and potentials, it is my considered submission that more focus should be placed on policies designed to achieve an all-inclusive economic development, not just growth. Concomitantly, in tandem with the Millennium Development Goals [MDGs], government should adopt and implement policies that will fundamentally impact the common man by way of access to basic needs, such as food, housing, health, education, power, public utilities/infrastructure, job creation/employment opportunities, security of life and property, rule of law and good governance. These are the fundamentals of a vibrant, efficient and an inclusive economic growth that can lead to sustained peace, progress and development. According to the World Bank, economic development is defined as “a sustainable increase in living standards that encompass material consumption, education, health and environmental protection”. The overall goal of development is, therefore, to increase the economic, political and civil rights of all people across gender, ethnic groups, religions, races, regions and countries”.
In conclusion, real, meaningful and progressive development is the attainment of a balanced socio-economic structure through enhancing the creation and equitable distribution of wealth to minimize income inequalities and social disparities in the society. In essence, the central objective and real purpose of economic development is not to be the largest economy but to enhance the welfare and standard of living of the people within the shortest possible period. Any process of development that does not lead to the satisfaction of basic elementary human needs and the fulfillment of the people’s desires – or worse still, disrupts them – is not only illusory, dysfunctional and dissonance, but also a travesty of the whole idea of development.
KAYODE OLUWA
