Nigeria’s Socio-economic Development – The Impact Of Foreign Aid: A Case Study Of Nepad
Nigeria’s Socio-economic Development – The Impact Of Foreign Aid: A Case Study Of Nepad
Foreign aid provides both opportunities and challenges for Nigerian socio-economic development. To place an order for the Complete Project Material, pay N5,000 to Then text the name of the Project topic, email address and your names to 08060565721.
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Then text the name of the Project topic, email address and your names to 08060565721.One of the greatest problems facing Nigerian intellectuals is how to go about the negotiation process between Nigerian and the international or multilateral aid agencies. Two reasons are responsible for this development. Firstly, negotiations are done in secret and out of public glare.
Secondly, the agreements resulting from such negotiation are never made public or published until after twenty five years or more.
Instructively, international negotiations between Nigeria and international aid agencies on the one hand and developed countries on the other hand have been infact a virgin forest begging for exploration. As Bonaham (1971) observed, although the era of negotiation has begun, we know very little about the process of international negotiations.
Do international or multilateral aid agencies dictate, rather than negotiated with developing countries, one may ask? Another question that has continued to agitate the minds of many Nigerians is how to explain the worsening nature of their economy inspite of the numerous agreements with the World Bank and other multilateral aid agencies in the area of agriculture.
In most cases, these negotiations have resulted in increasing unemployment, double digit inflation, virtual halt in domestic capital accumulation, breakdowns in the productive apparatuses and widening income inequality.
The former Governor of Kaduna State, Alhaji Balarabe Musa protested against world Bank food production programme in he state because one of the terms of that loan agreement required vesting the management of the programme in the hands of the World Bank Officials. He argued that it was not in the national interest of Nigeria to SURRENDER to the World Bank the management of a programme, which directly affects the lives and destiny of millions of Nigeria peasants. Another thorny issue was the Banks insistence on consultants, preferably foreigners who will ensure that the terms of the agreement are full implemented and employed. The fact is that international aid agencies are in control of who gets what, how and when. This explains why Jerry Gana of Alhmadu Bello University described the ADPS as World Bank Directed and not World Bank Assisted. It is popular in Nigeria today that World Bank and other multilateral aid agencies dictate rather than negotiate with the government.
To bring to an end the activities of these imperialists, Africans on their own decided to find solution to their problems of underdevelopment by way of integration. NEPAD is an acronyms for new partnership for African development, supposedly a developmental partnership between Nigeria, African and the developed countries.
African Labour Unions were on target when they in Dakar under the Aegis of the Organisation for African Trade Union Unity (OATUU), Congress of South African Trade Union (CSATU) and the International Confederation of Trade Unions (ICFTU) raised questions over the new partnership for African development (NEPAD). Their objections can be summarized under the then environmental climate of war without end in Africa, unsustainable debt burden to which the west is cynical about its abetting, and the unfair terms of trade. Other areas adduced by the labour leaders include NEPAD’s apparent distance from existing structures popular participation in development and transformation, African Union and the outright dependence on the west-west by NEPAD, contrary to the labret it has been given as home from initiative.
In addition, the labour leaders drew attention to the imbalance between the market and state, the lather assuming too low a consideration, relegation of Africa’s development bottlenecks arising from the underplay of the responsibility of the state and the parlous sense of history displayed in the formation of NEPAD by African leaders. Indeed, at a recent brain storming on issues on NEPAD at Burbar, South Africa, Abdoulaye Wade, president of Senegal disagreed with peer review content of NEPAD’s implementation while muammar Gaddafi of Libya condemned the apparent capitulation to the capitalist cause by NEPAD even though they are in agreement with the principal objectives of the initiative. These are just a few areas where critics hope the leadership of NEPAD would pay careful attention. Many continued to applaud the New partnership for Africa’s development (NEPAD) just as many might continue to pick holes in the arrangement even to the extent of distancing themselves from it entirely. All these are to be expected given the multifarious facets of African socio-economic and political problems. It would have been surprising if not disturbing for the introduction of NEPAD by African leaders to attracts a different consternation of reactions. Africa remains relevant on the world socio-economic and political scene. It may be worlds poorest continent, making up more than two thirds of low income countries around the globe, yet the continent harbours an equally disproportionate reservoir of the world natural resources for development. That in itself raises the hope that Africa could occupy a high pedestal of the worlds most developed continents as it was noted by history.
Africa therefore needs series of initiatives to turn its resources into real wealth. On these score alone, no one can present a convincing argument against the need for NEPAD at that time. There is no doubt that a new initiative by Africans for African’s development in the first decade of the 21 century is long over-due. The present corps of African leaders must therefore be praised for quickly coming up with a revamping of African’s political and economic relations as the African union (AU) replaces the organisation of African Unity (OAU). The creation of NEPAD in this regard is a worthy initiative to jump-start the new dream.
Yet NEPAD is actually too little, too late as the commitment of Africa’s development partners especially E8 Group of the west is still doubtfully. NEPAD ought to be seen by both African and western leaders as the authentic basis for Africa’s “marshal plan” which is a plan made by the African leaders to redressing previous neglect and platform for reconstruction. It was originally an effort set by the united nation in the year 2000 to achieve the millennium development goals, which include; eradication of extreme poverty, increasing asses to education, promotion of sub-regional and the continental economic integration, to increase infact and child mortality ration by two third and to promote the role of women in social and economic development by 2005. Marshal plan was endorsed unanimously by five African presidents at the introduction of NEPAD in the Lusaka submit of the OAU in the years 2002. This plan was to move in conjunction or agreement with the G8 to achieving the set millennium development goal. In this context, a $ 2 billion gross annual resources inflow to Africa pledged by the G8 nations is inadequate especially compared to $ 20 billion handed to Russia. It is arguable for instance whether to-date, the current administration in the united states has any serious matching arrangement to assist Africa outside the much trumpeted Bretton woods initiatives and the African Government opportunity Act (AGOA), a legacy of the previous administration. Who does not know for instance that the current system and framework of technical co-operation under which external assistance is discharged is bedeviled by the donors control and lack of altruism? In nearly a decade of the Bretton wood implementation of their highly indebted poor countries initiatives, what is the result and who is fooling who? Africa’s debt to the west is no longer an economic-business issue but one which the west continues to prosecute as a political Agenda through every subterfuge, that stance has to change.
But Africa must co-operate with the west for NEPAD to success as both have done for centuries to the advantage of the latter. Now is the time to find accommodation for each others interest to the benefit of both. The west must be re-assured in this process. This is the context of relevance of NEPAD’s insistence on peer review of each country’s situation, as found for instance under the common wealth arrangement. Debt forgiveness will prove its worth only if indeed the environment for the use of limited resources improves in Africa. The African private sector is critical but it can succeed in leading development in African only if the government are transparent accountable and ensure the rule of law, safe property rights, human and national security.
Foreign investment can only come if indigenous investment is growing as an evidence of trust in the economy which must employ adequate macro-economic policy and a conducive environment for investment. Above all, the countries must grow in their understanding and practice of democratic government that ensure the rights and participation o the people who actually are the end and means of development. A situation of perpetual wars, skirmishes of religious, ethnic and violent political conflict will only create uncertainty in the continent. Unless African leaders address these problems as critics contend, NEPAD will prove inadequate if not counter-productive in bringing about development.
However in Africa integration is an expression of both the need for satisfy the yearning and desires of the citizenry and that of nationalism. In an age of universalism, African is left with little or no choice than to come together, politically and economically what ever the cost are in order to survive and have a stronger voice in the committee of nations. This understanding is partly what informs the formation of the African Union (AU) with its accompanying “New partnership for African Development (NEPAD). NEPAD is seen from its formation as a nascent platform designed to pull the continent of socio-economic miasma. So, NEPAD is saying, African nations must come in Unison, ensure that they develop a mature financial and capital market.
1.2 STATEMENT OF PROBLEM
In the statement of problem, the research is shaped to studying the impact of foreign aid on Nigeria socio-economic development and how NEPAD have served as the need to meeting African millennium economic development initiative goals. NEPAD has been of immense help to African economic development. How its programmes has promoted democracy and good governance which has been an essential component of economic development. So, the research will focus on the following problems;
(1) What are the causes of underdevelopment of African states, example Nigeria?
(2) What the roles of NEPAD on Nigeria socio-economic development?
(3) What are the challenges of NEPAD on Nigerian socio-economic development?
1.3 OBJECTIVES OF THE STUDY
The research objectives will run as follows:
(1) To explore the causes of underdevelopment of African States.
(2) To examine the role of NEPAD of Nigerian socio-economic development.
(3) To examine the challenges of NEPAD on Nigeria socio-economic development.
1.4 SIGNIFICANCE OF THE STUDY
The work is of great benefit. These benefits will include both intellectual and practical intellectually, the research will reflect findings which will be of great help to other researchers on the topic impact of foreign aid on Nigeria socio-economic development. Practically, this work is aimed at exploring the effort of NEPAD as Africans New millennium economic development initiative goal, the impact of foreign aid on Nigeria socio-economic development, the roles of NEPAD in Nigerian socio-economic development, finally, the challenges of NEPAD to restoring sound socio-economic development in Nigeria.
1.5 RESEARCH HYPOTHESIS
H0: NEPAD will likely help Nigeria meet her growth rate per-annum and her millennium development goal.
H1: NEPAD will not help Nigeria meet her growth rate per-annum and her millennium development goal.
1.6 SCOPE AND LIMITATION OF THE STUDY
The scope of this research is delimited to exploring the impact of foreign aid on Nigeria socio-economic development, the role of NPEAD on Nigeria socio-economic development, the challenges of NEPAD on Nigeria socio-economic development. This research will also cover the response of the donor agencies to ensuring economic development of Nigeria.
The limitations of this research are money constraint, time constraint, non-availability of some of the NEPAD officials.
(i) MONEY CONSTRAINT:- As a student researcher of this work the researcher was financially constrained that all attempts made to generate money for extensive research work failed. This money if it was available could have as well be used for internet browsing and photocopies in appropriate website at available computer business kiosk, it could as well been used for traveling to rich libraries where international relations documents could be found at ease, even visit NEPAD offices located in some part of Nigeria.
(ii) TIME CONSTRAINT:- Time given to the researcher is also limited, that he is to restrict himself to a barely minimum scope of the study.
(iii) Finally, non availability of some of the NEPAD officials who would have supplies the researcher with some salient and required information for thorough and effective research work were not found owing to the fact that the NEPAD personnel could not make themselves available on the researcher for adequate information.
1.7 OPERATIONAL DEFINITION OF TERMS
NEW PARTNERSHIP FOR AFRICAN DEVELOPMENT (NEPAD)
On October 19th 2001, five African heads of state inaugurated a new African initiative (NAI) later called New Partnership for African Development (NEPAD). The New African initiative was set up in July, 2001 at the OAU submit in Lusaka. The renaissance programme spear headed by president Mbeki of South Africa. The millennium African programme led by Nigeria’s leader, president Olusegun Obasanjo and president Boutelflica of Algeria. The programme was finally recognized as the Omega plan put forward by President Abdoullaye Wade of Senegal.
The originality of this initiative is that it is a reflection of the desire of Africans to take its destiny in its own hands, with vital support of international community. Support is the key and not aid as has been the case over the years.
NEPAD is regarded as the overhaul of the African, continent desired by a new generation of statesman who advocate regional co-operation to reverse the downward spiral of poverty and set Africa on the road to globalization. It is comprehensive, integrated strategic framework for socio-economic development of Africa. The policy provides the frame-work for the public and private sectors, partnership between and among Africans in the first instance and then with the rest of the world.
NEPAD is also a merger of millennium partnership for the recovery programme and the Omega plan. The merger was finalized on July 3rd 2001. Out of this merger the new Africa initiative (NAI) was born.
This is the combination of social and economic development. In this case the study of socio-economic development includes the advancement or improvement in the standard of living and the increase in economic life of the people.
A lot of works have been done on the topic “impact of foreign Aid on Nigeria socio-economic development. The review of these works therefore focus on the contributions and relevance of some materials such as newspaper; journals, magazines relevant books on international relations and internet browsing. Meanwhile crisis, low standard of living, low Agricultural productivity etc in Africa has attracted various minds of foreign aid to her socio-economic development.
Clover R. W (1966:74) Observed that “the increasing complexities in the relationship of African societies have made a bold attempt towards the achievement of Africa place a mirage. This assertion stems from the realities that African Nations just like individuals are selfish especially in the pursuit of their national interest.
According to Oganski A.F.K (1958), he says that in the pursuit of National interest nations “use power”. He further asserted that it is in the pursuit of interests that conflicts emanate.
NEPAD as many observed is a nascent platform design to pull the continent out of socio-economic miasma. But the head of NEPAD team in Nigeria, Iseac A. Olokun, is disturbed by the observation that the core issues of NEPAD is said to be poverty eradication and wealth creation are being confirmed to the back burned; that indeed, conferences and workshops are being held without these issues taking the centre stage, sometimes not even mentioned.
Iseac A. Olokun in his interview on how he intended overcoming the problem of finance with respect to NEPAD. In his words; “you know, we have been talking about and $64 billion worth of investment every year. No, this is not all about it. There are millennium development goals. There are goals universal accepted by United Nations and all the international fora in the past two years since the year 2000 to set a vision for the world to help people that are falling behind like in Africa”. The millennium development goals say that by year 2015, all developing countries especially Africa must try and reduce the number of people caught in poverty (living under one dollar per day). They must try and reduce them by 50%, not really to eradicate them. What NEPAD has done and supported by international financial institutions is simply to say, what does this translate? So, for the expert, this would mean that Africa will need to grow on the average at 7% per annum on a sustained basis between now and year 2015.
Iseac A. O further observed that to get 7% per annum what do we do? The experts advised the investment of 33 percent of our Gross Domestic Product (GDP) to enable us to meet the set target. So NEPAD says, let’s be optimistic let’s say eight out of that 18% comes in as foreign aid and even through, it’s not up to 8.
Oghogho O.U. (2002) says “I tell you first, if we imbibe good economic governance; if we learn respect this iron low of macro-economics and manage our economy well, we will be able to get a lot more resource. Now we have to be able to ensure that we save more. That’s the secret in all societies that have developed. We cannot be saving 10% or 15% of our GDP and say we are going to move like China” meanwhile, deducing from his assertion, government has to begin sustained campaign to make people realize the importance saving. Save more, that is the only secret to be able to invest more because we are talking about wealth; the secret to long term capital so that businessmen can raise long-term capital and go and turn that bush into factory.
Momoh E.O. (2001) says “even here in Nigeria, we don’t have bond capital. The state government are just trying to borrow to revive the bond market. Bond market is part of the secret of development”. NEPAD is saying, African nations must come in unison and ensure that they develop a mature financial and capital market. And I am saying in addition to that, that there must be capital repatriation. Te negotiation that former president Olusegun Obasanjo has had with the Abacha family to bring home these billions of dollar is part of it.
The World Bank president Mr. Paul Wolfowitz has recently challenged the international community to deliver on its promises of five years ago to help the world’s developing countries halve poverty and deliver real improvements in the lives of their poorest people by 2015.
Wolfowitz call was made during the recently concluded United Nations summit in New York, which was the largest gathering of world’s leaders in history and attended by more than one hundred and seventy heads of government, and making the 60th anniversary of the founding of the United Nation. The World Bank president pleaded with the world leaders who attended the United Nations meeting to assist the world poorest countries especially in sub-Saharan Africa-which would not meet the millennium Development Goals to fight hunger, poverty and disease (Daily independent September 23, 2005:4)
Olisa et al (2002:242) observed that “despite Nigeria’s gestures of prominence, democracy, love and peace, it has internally had one of the highest incidences of political instability, civil war, inflation, strikes, religious crisis and intolerance, violence, famine as result of her relationship with international bodies.
The successive United Nation Development Programme (UNDP) Report on Human Development (HDR) since 2003 have consistently shown that Nigeria is paradoxically one of the poorest nations in the world in spite of its abundant natural and human resources (see Njoku, 2005:121-141; Okafor: 2004 and Oni 2005:9). This paradox in the nation’s economic and social life poses a problem to Nigeria’s foreign posture. It is in view of this unacceptable situation in the country’s socio-economic life that the present administration embarked on economic reform to launch the country on the part of sustainable economic growth and social development.
Nwoji (2003:18) observes “The underlying philosophy of NEPAD is that Africa will champion its own development and will no longer beggarly approach the super-powers for a paradigm and resources for development. Rather, Africa in the spirit of mobilize most of the funds within to further its development”
Africa and other developing states were not divinely or originally underdeveloped. Underdevelopment came at a particular historical epoch when external factors interfered with existing economic of these states thus; distorting and disarticulating them such that they are highly dependent on external economies. Even the euphoria of political independence among the underdeveloped states has worsened dependence and economic backwardness rather than fundamentally or structurally change the status quo.
Gana J. of Ahmadu Bello University described the Agricultural Development Project Scheme (ADPS) as “World Bank direct and not World Bank Assisted” when he sees World Bank Project Evaluation State as the fact that World Bank is in control of who gets what, how and when.
Infact, the popular understanding in Nigeria is that the World Bank as one of the foreign aid agencies dictates rather than negotiate with the government. Although, this is not totally true as we have tried the show, the behaviour of government functionaries who are associated with the project reinforce this belief. For instance, when a particular community in Ilorin did not like the manner in which one of the ADPS was being implemented specially in matters relating to the sitting of the projects headquarters, they were forced by the Nigerian government’s headquarters in Washington DC to protest. As Dunmoye (1986) noted, the Nigeria government gave the impression that the Bank had the final say on the matter. When there was a disagreement at the governmental level on the state-wide Agricultural Development Project (ADP) in Kaduna State, the state government protested that rather than SURRENDER to the Bank, it would withdraw from the project (New Nigerian November 20, 1980).
Nigeria and Japan on Monday 11October, 2006 in Abuja signed an agreement for N710 million Japanese grant meant to support and enhance the quality and quality of water supply in Oyo State as well as improve sanitation.
Chief Economic Adviser to former president Obasanjo and Deputy Chairman of the national planning commission, Dr. Magnus Kpakol said at the signing ceremony that owing to the envisioned increased in the current low water supply rate in its rural areas from 4.28% to about 17.5% by 2006 through the planned construction of borehole facilities Oyo State through the federal government has approached the government of Japan for assistance in actualizing this dream. In response to this request, Kpakol said, the government Japan through the Japan international co-operation agency (JICA) had sent study terms to conduct a “Basis Design study on rural water supply and sanitation in Oyo State.
Kpakol commended Japan for its assistance and expressed optimism that with the execution of project, the water supply rate in the rural areas of Oyo State would increase from 4.28% to 5.31%.
“Currently, an estimated 150,000 persons from 600 communities are receiving safe water from 600 boreholes provided by Oyo State water supply and sanitation agency. The immediate effect would be gradual decline in the infestation rate of guinea worm, which is an endemic problem in the state” said Kpakol.
Dr. Bamanga Truker, Chairman Business Group of NEPAD. Observed that NEPAD success lies more on the inter-state trading between African countries. He noted further that Africa will effectively attract foreign partners to the continent and even NEPAD through inter-State trading. Bamanga said “we have enough opportunities and businesses within the continent. But we tend to look further. Even within these countries, we can develop ourselves through this trade and also reduce the cost of doing business. As a matter of fact we need trade more than foreign direct investment”. Dr. Bamanga in his interview is only canvassing for the creation of an enabling environment for such inter-state trading to thrive.
On April 20, 2004, German government pledged support for the New partnership for African Development (NEPAD), while the exact extent of the support was not spelt out. The German leader, President Johannes Rau hinted that Berlin was designing and fin-turning, when necessary, polices aimed at realizing the goals agreed at the United Nations millennium summit of September 2000 and would endeavour to meet the continent project halfway on such crucial issues as human rights and good governance, strengthening the rule of law, democracy and Civil society, food security and fight prevention, peaceful conflict resolution and post conflict rehabilitation, activities to help groups threatened with economic and technologies marginalization and fight against Hiv/Aids. He made a case for a purposeful mobilization of the continent strength and capabilities if only to send a powerful message to those who, at present remain unconvinced that the dream of a buoyant, modern Africa would ever come true.
In his address, “charting Africa’s path into the 21st century-Reflections from German perspectives”-delivered in Dares Salaam, Tanzania, at the invitation of the Mwalimu Nyerere foundation, Reu said Berlin would continue its utmost to ensure that people in Africa could live in peace, prosperity and dignity. Africa, in his words “is no longer the forgotten continent. A politically stable and economically prosperous Africa is also our own interest… creating an environment that offers security growing prosperity and fair give-and-take between all sections of society is the best way to prevent the spread of instability and terror”. The German leader said that Europe and the Organization of Economic Co-operation and Development (OECD) countries needed to do more than in the past to open up their markets, especially to Africa’s agricultural products and they needed to eliminate their own agricultural subsidies. Free access to the market of OECD countries in Rau’s evaluation, would mean for the developing countries an estimated $100 billion in additional revenues. “To grasp the true significance of this”, he offered that “we need recall that the annual sum currently spent on development aid around the world is about $50 billion. The heated debate over whether Africa stands to remains lost from globalization Agricultural Products from the continent are denied fair access to OECD markets. The countries of Africa deserve more than a future as commodity suppliers”
Besides, Olukukun (2004) observed that in a recent meeting with parliamentarians of the Economic Community of West African States (ECOWAS) that with the process of integration going at the continental level, African States had shown desires to be responsible for their own future.
These are the above modalities observed by different writers that will be of a help to the development of Nigeria socio-economic, particularly eradicating poverty and hardship in the faces of the citizens of Nigeria.
2.1 THEORETICAL FRAMEWORK
In the theoretical framework of this research it will be anchored on a synthesis of the modified dependency theory and social order theory of negotiation propounded by Anselm Strauss (1979).
The corrupt of “dependency” was coined by a Brazillian sociologist, Fernando Hanrique Cardoso. However,, A.G frank is often credited with formulating the original version of the “Dependency theory”. His book titled; capitalism and underdevelopment in Latin America, written in the early 1960s and published in English in 1976 can be taken to be the opening salvo in the debate over dependency theory. Frank presented this theory as his contribution to development economies and wanted it to be seen along side neo-classical theories viz structurist theories and traditional Marxist theories all of which he sees as competitors for the explanation of the present condition of the less developed countries. He used the concept of dependency to categories relation of power and control such that the course of development in the underdeveloped nations or satellite is determined by that of the developed nations or metropole. The consequences of these relationships for the stated as that certain problems such as poverty and distorted development are accelerated and the steatite is further disadvantaged (Frank 1986).
Johan Galtung (1970) has improved on A.G Fank’s effort. In a journal article titled “structural theory of imperialism” he argued that the world consists of “centre” nations and “periphery” nations. According to him, there is a harmony of interest between centre states, especially the centre of the centre and the centre of the periphery. Also a disharmony of interest exists between centre of the periphery and periphery of the periphery.
This theory is useful for our understanding of the process of negotiation between Nigeria and the international aid agencies because there is structural inequality between international aid agencies and its mentors on the one hand and an underdeveloped state such as Nigeria on the other hand. While international aid agencies belong to the centre of the centre, Nigeria falls within the centre of the periphery. Instructively, international aid agencies do not operate on the principle of the country one vote, but according to the axiom, “the richer the country and the greater its stock in the bank the greater its weight the decision making process” five countries dominate the international aid and agency namely the United States, Great Britain, West Germany, France and Japan with United States having by far the largest stock and voice.
Not surprisingly IMF and the World Bank have not hesitate to exploit this leverage when they have to force most third world governments including Nigeria to adopt adjustment programme preferred by the Bretton wood twins. Being aware that non-agreement with I.M.F and world bank may create unbearable economic hardship, the developing countries including Nigeria abrasion get tensed up and behaved as directed by victor.
Meanwhile, Dependency theory serves best for this research work.
2.2 THE CAUSES OF UNDERDEVELOPMENT OF AFRICAN STATES, EXAMPLE NIGERIA
This segment of this chapter will explore the remote and immediate causes of underdevelopment of African states using Nigeria as an example.
2.2.1 REMOTE CAUSES OF UNDERDEVELOPMENT OF AFRICAN STATES
At the end of colonialism in Africa, the imperialists left continental economic landscape distorted and disarticulated such that autonomous economic and technological development proved extremely difficult. It is important to note that through the period of colonialism, the Europeans aid not re-invest excess wealth generated with a view to developing local economics. There was no attempt to develop industrial and technological skills, which were important for a viable economic and industrial base. Colonial state in Africa, Nigeria to be precise created dependent local economies and weak state structures. The result has been that post independence Africa (Nigeria inevitably found itself structurally disadvantaged in international division of labour. African found itself dependent in various spheres of human activities, some of the features of African economics include:
a. Trade dependence
b. Financial dependence
c. Technological dependence
d. Psychological dependence
e. Military dependence
f. Dependence on foreign grants and aids
Today, Africa is underdeveloped; out of 32 identified most underdeveloped countries of the world, Africa accounts for 22 of the lot. It has also the highest number of land-locked and draught ravaged countries of the world. It has the highest cases of unemployment and refugee problems in the world. It also has the most irresponsible and dictatorial leaders in the whole world running draconian system of governments.
African underdevelopment has be worsened by frequent military interventions and cases of intra-and intern-state conflict. The first has to do with discontinuity of policies while the latter has to do with diversion of scare resources to arms prounment and non-economic activities.
Africa is under great influence of neo-colonialism. By way of definition, neo colonialism means economic domination, subordination and exploitation of foreign economic without the establishment of formal political power and authority. In other words this is a kind of post-independence economic imperialism. The agents are multi-national co-operations (MNCs) and international financial institutions such as IMF and World Bank.
2.2.2 IMMEDIATE CAUSES OF UNDERDEVELOPMENT OF AFRICAN STATES
The immediate causes of underdevelopment of African states can be viewed as follows:
Firstly the way in which the goal of national unity and integration was handled: The assumption that the objective of uniting the multi-ethnic and in many cases multi-religious countries of Africa, like Nigeria after decades of colonial strategies of divide and rule was one which could only be constituted from above by the state.
From management of the economic crisis in Africa eg Nigeria was accompanied by increased levels of political repression and exclusion which further widened the gulf between state and society, popular social forces and the wielders of state power.
The IMF/World Bank structure adjustment framework that triumphed in the quest for reversing the divindling economic fortune of Africa not only exacerbated the crisis of decline, but also represented the final nail on the cofin of the post-colonial model of accumulation and the social contract that was built into it. In the face of the failure of structural adjustment to redress the crisis of decline facing the continent, both increased political repression/authoritarianism.
A German leader, Rau identified immediate cause of underdevelopment in Africa states and suggested as follow: that Europe and organization of Economic Co-operation and Development (OECD) countries need to do more to open their markets, especially to Africa’s Agricultural Products and they needed to eliminate their own agricultural subsides. Free access to the markets of OECD countries, in Rau’s evaluation, would mean for developing countries on estimated $100 billion in additional revenue. So, the barriers on the OECD market restructuring African agricultural products encourage instability and terror in Africa socio-economic sectors.
The underlying logic of the economic view is that there is nothing inherently wrong in the economic system that cannot be righted by appropriate adjustment based on good science and ecological principles. As long as corruption exists there must be routine deviation from established standards (standards established in developed countries), appropriate adjustments based on good science and ecological principles cannot take place.
It can therefore be asserted that the beautiful and expensive palaces set up through corrupt practices is an evidence of the level of deviation from established standards and plans. It may be funds set aside for road or ecological disaster that has been diverted to build a big house for one man, millions are suffering from bad road and thousands are dying for lack of modern health facilitates. What a society, a clan or a family prides itself to have gained through the construction of one beautiful house in that society by a corrupt member of the society the individual citizens loose through the ill-effects of bad roads, absence of environmental and social services that can ensure sustainable transition at the economic dimension of sustainable development. Meanwhile, corruption in general has far-reaching implication for social and economic development.
Finally, political instability in Africa is another causes of underdevelopment of African states. Forceful change of government by way of military coup’d etat causing abandonment of economic development project.
2.3 ROLES OF NEPAD TO NIGERIAN SOCIO-ECONOMIC DEVELOPMENT
African countries entered the period after the second world war on the basis of a gradually intensifying popular mobilization against continued colonial domination. The sources of the popular discontent against colonial rule were many but, in summary, they include a strong desire to over turn the affront against human liberty and dignity of the African which colonialism represented; a generalized assertion of the continued, racially based segregation of opportunities for social advancement and access to resources, amenities and services, the increasingly unattainable political administrative framework that denied the colonized full, unfettered participation and representation in the structures of governance, and the intensive draining of the resources of the colonies without a corresponding/commensurate investment in the development of physical and social infrastructure, as well as their human resources formed the basis of the formation of NEPAD.
NEPAD was initiated by African leaders in the year 2001 to accelerate the continent socio-economic and political development.
The major aim of NEPAD is the eradication of poverty. And you know going by World Bank statistics about 60% of Nigerians are caught up in core poverty, that is living below expenditure range of $1 per day. NEPAD seeks to eradicate in Africa, promote accelerated growth and sustainable development, not just economic growth but growth and sustainable development. That is, as economic grows, it is spread all across the social strata into the health sector, education, Agriculture, into every sector.
This is all about promoting standard of living in Nigeria NEPAD’s programmes that promotes democracy and good governance seems as essential components of economic development. The business organizations turning Business for African, seeks to boost the private sector throughout the continent and encourage governments to pursue policies that will encourage both domestic and foreign investment.
Meanwhile NEPAD (formerly the New African initiative is an initiative by African leaders to set their countries on the path sustainable growth promoting democracy human rights, sound economic management and full participation in the global economy. It is being welcomed internationally as a determined step by Africans to rebuild their continent by encouraging peace and stability, poverty reduction and regional co-operation.
NEPAD is also recognized in its role on the fight of inflation in African. This inflation is created by government asking its central Bank to print more money to meet up with its big project thereby increasing its debts stock and when this is in its debts stock, it primarily affect the inflation.
German government through NEPAD pledged to design and fine-time policies aimed at realizing the goals agreed at the United Nation millennium summit of September, 2000 and promised endeavour to meet the continental project half way on such issues as the fight against HIV/AIDS, help groups threatened with economic and technological marginalization, post conflict rehabilitation etc.
Europe and the organization of Economic Co-operation and Development (OECD) countries through NEPAD opened up their market to Africa’s agricultural products and eliminated their own agricultural subsidies, allow free access to the market of OECD countries, in Rau’s evaluation would mean for the developing countries like Nigeria, an estimated $100 billion in additional revenues.
Talking about America and Canada is important. They, at present as part of the G8 and the EU control the resources of the world. As you had known 48 years of independence have thought us it is not easy to get up without those resources. So, we have to be clever all the way. We must need the resources even if it our resources that have be siphoned there for it to come back, we just have to win them over. This is the way it is. This is why the world “partnership” in NEPAD is absolutely important because it underscores the need that although NEPAD is about an autonomous, home made, indigenous impulse to growth in Africa, we have to be realistic as to how much of the where withal we can generate. You look around every where in Nigeria, you final out that most things you see are imported. We don’t want. So NEPAD is about self-reliance, it is about empowerment about learning to do it ourselves; about embibing good governance; it is about adopting best practices as they best suit us, and nonetheless it’s about partnership with the developed nations.
Finally, the role of NEPAD to Nigerian socio-economic development cannot be measured since this initiative is truly indigenous development platform.
2.4 THE CHALLENGES OF NEPAD TO NIGERIA SOCIO-ECONOMIC DEVELOPMENT
Here it is logical to examine the challenges facing the African indigenous initiative, NEPAD, in its effort to building sustainable socio-economic development in Nigeria.
Examination of these challenges may consequently suggest certain basis question. Has African socio-economic problem changed by requiring a change in the former initiatives which seems indigenous or put differently, what circumstances led to the formation of NEPAD? Are there going to be new problems or is the new economic initiative through its structure and procedures going to tackle those socio-economic problems that could not effectively be handled to the satisfaction of founding fathers previous initiatives?
The world is today linked up and reduced to a global village and these problems and challenges are here with us in Africa. There is a desire for a respectable degree of political, social and economic independence, coupled with high, welfare expectation of the rules. Nations States come together to forge partnership that will enable them make joint decision or delegate these decision to a new body. It is therefore imperative that African be not left out in all the global dynamics, problems and challenges.
The quest for unity in Africa has a deep historical resonance. It was the goal of the fathers of independence and has remained the basis aspiration of African citizens across the continent. Political economic and social unity in Africa is not an alien idea or a programmes imposed from outside.
On the contrary, it springs from the very root of African identity which long resisted being arbitrarily divided into national citizenship.
African has seen many false starts in the last few decades. How do we now know that this is not just another focus for misplaced enthusiasm? Will the current initiatives fall by the way side? Will the world continue to mock African as the land of broken promises of criminalized and failed state that inevitably subvert the best intentions of their people and their development partners? There are some good reasons to hope that things may be different time around. The decision for greater partnership, for better government, for sustainable and improved economic management, because of inescapable pressure both internal and external that really force us to come to learn with the collectives realities that we are facing.
The root of African recovery at the national and sub-regional and continental level is recognizing what has gone wrong and accepting these realities, societies that have solved their basic problems, conflict and mismanagement, have done so, first and foremost, by allowing free debate, open exchange of ideas and adoptions of pee review mechanism. Where there is secrecy and censorship, there we see that corruption, conflict and complacency thrive sunlight they say is the best disinfectants.
Let us start by facing the difficult realities of our continent. The fact that our economic are crippled by corruption and mismanagement, that organized crime has penetrated the highest levels of many governments, that many states are adopting the language of democracy and human rights only with the greatest reluctance and that African institutions are weak and incapable of delivering on their mandates.
Across Africa, there is genuine commitment to solving the most pressing problem facing the states of Africa. Africans are supremely skilled at surviving. African people have managed to not only to survive, but also even building businesses and preserve vibrant communities, in countries whose states have collapsed such as Somalia or where the formal economy has disintegrated like Congo, Nigeria etc. If we look at the economic statistics of this country (Nigeria) most of us would have starved to death long ago but we are resourceful and resilient. We have a habit of confounding the worst predictions.
But how are we to transform this expertise at coping to economic and government capacity to putting Africa on the road to conquering poverty and achieving democracy and human right as well as integration and unity? There are high level of initiatives including the African union and the idea of NEPAD. We also see steady accretion of best practices in the fields of government and development.
The donour agencies putting high conditionalities on the developing countries for their assistance poses a very big challenge to the African new initiatives (NEPAD)
Regional peace and security is an essential foundation of the integration, without it, NEPAD’s energies are wasted. Africa is still seeking what walks in terms of making peace and making it sustainable.
Conflict in various dimensions will continue to render Africa impotent making it unable to more forward and utilize its abundant human and material resources for the benefit of her people. These include ethno-religious and boundary wars. In prosecuting these conflicts, scare resources, which should have been used in development continue to be deployed into purchase of weapons of war.
Unsustainable debt burden is another challenge to NEPAD in the development of Nigeria socio-economic development to which the west is cynical if not abetting and the unfair terms of trade.
Another challenge to NEPAD in the development of Nigeria socio-economic sector include NEPAD’s apparent distance from existing structures such as the African charter for popular participation in development and transformation African union and the outright dependence on the west by NEPAD, contrary to the label it has been given as “home grown initiatives.
Agena, James (2004): Peaceful co-existence among nations; edited, Egwu .U. Egwu and Ndukwe C. copy craft productions.
Ake, Claude (1985): Political Economy of Nigeria. Enugu: Longman.
Arthur, S. Lau (2000): Modern International Negotiation: principles and practices. New York and London; Columbia University Press
Beekmen, B. (1981): The World Bank and Nigeria Peasantry. An online; paper presented at a seminar on peasant and other petty commodity producers-organised by Akut Group for study of development strategies stockholims.
Clover, R.W (1966): Growth without development. Evanston: North West Union Press.
Hoffman, S. (1985): Future of international political system a sketch in S.P Huntington and J.S Nyerere (ed) Masschusent cambridges.
Onu, Godwin (2003): Globalization and integration in Africa Book points publishing Ltd.
Organski A.F.K (1958): World polities. New York: Knopt publishers.
Oneja. L. (1996): Peace keeping and international security, Jos: mono expression publishers.
Olinger J.P. (1978): The World Bank and Nigeria. Review of African Political Economy No: 13.
Zartman I. William (1971): The politics of trade Negotiation between African and EEC: The weak confront the strong. Princetion, N.J princetion University Press
NEPAD: Paradigm for development. The Daily champion Friday, July 26, 2002.
How to boost NEPAD through intra African trade, say Beuanga. The Guardian Wednesday, August 30, 2006.
German leader, at ECOWAS Parliament backs NEPAD. Sunday vanguard, April 25, 2004.
Nigeria get N170m grant from Japan. The Guardian Wednesday October 16, 2002.
NEPAD is about partnership on all levels. The Guardian Sundry, November 17, 2002.
African Business group defines role for NEPAD initiatives; The Guardian July 23, 2002.
NEPAD will not replace African union. Daily Champion, Wednesday July 24, 2002.
Integrating African Economics through NEPAD Daily Champion, Thursday, September 19, 2002.
Howe NEPAD will work by Olukoshi. Daily Champion, Friday, July 12, 2002.
NEPAD; matters Arising, the Guardian, Thursday, August 8, 2002.
4.2 SUMMARY OF FINDINGS
With regard to the responses of the respondent, the researcher has been able to come out with the following findings:
(i) That imperialism was the real cause of African underdevelopment.
(ii) European exploitation of African national resources without corresponding investment was also another cause of Nigeria socio-economic underdevelopment.
(iii) That unsustainable debt burden is a serious threat to Nigerian socio-economic development.
(iv) Activities of corrupt leaders in Nigeria also effect the development of Nigeria socio-economic sectors.
(v) That NEPAD provides long-term loan to Nigeria.
(vi) That NEPAD has also capitalized new banks in Nigeria.
(vii) NEPAD has accelerated Agricultural productivity in Nigeria.
(viii) NEPAD in its programme will help Nigeria achieve her millennium development goal.
5.0 DISCUSSION ON FINDINGS, SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 DISCUSSION ON FINDINGS
From the findings, it is evident that NEPAD provides long credit and various forms of aid for Nigerian’s socio-economic development. This was proved by the respondents whose answers were in support of the fact. This indicates that various forms of aid were given out to Nigerians in support of socio-economic development. This shows that good road, good infrastructure and high project in Nigeria were as a result of aid or assistance. This was in line with the idea of peer review mechanism and other scheme that will help provide rural development embarked upon by NEPAD.
Secondly, the research has also found that NEPAD presence in Africa has increased agricultural productivity from lower base to the higher based. Form the responses of the larger populations of the respondents, NEPAD render such services of Agricultural production and infrastructural development since it present in Nigeria. This was also supported by literature review which was placed that NEPAD aimed at agricultural, Agro-allied industries and enhanced value added in agricultural exports.
This brings economic social development to other sectors in Nigeria.
Further discover was that NEPAD capitalized newly established banks in Nigeria. This is achieved by NEPAD’s encouragement role of saving by individual and organisational sector depends on the policies and operations of bank sectors with the country. Thus, this role of NEPAD renders high motivation to firms, organisation and individual to serve as this helps in the development of economic sector of a country like Nigeria and as well serve as a means of capitalizing newly established banks in Nigeria.
The research further findings are the challenges of NEPAD to the achievement of sustainable socio-economic development in Nigeria such as imperialism, exploitation, debt burden, corrupt practices etc which if not tackled by NEPAD will hamper her millennium developmental goal.
This research has reviewed or analysed new partnership for African development (NEPAD) and its capabilities to meeting African millennium development goal on or before year 2015 and the activities of other foreign aid agencies like multilateral aid agencies such as World Bank, IMF etc. How these structures both indigenous and foreign has helped Nigeria to attain its millennium development goal come 2015.
The research work is divided into five chapters and each of these is summarized as follows:
Chapter one looked at the general introduction of the study, statement of problems, objective of the study, significance of the study, Research hypothesis, scope and limitation and operational definition of terms.
Chapter two of this study was concentrated on literature review of different scholars from different textbooks and other secondary sources of data collection, theoretical framework was also explored. Other items like causes of underdevelopment of the African Sattes, roles of NEPAD in Nigeria’s socio-economic development, the challenges of NEPAD to Nigeria’s socio-economic development and the references.
In chapter three of this work, research methodology was discussed that include, the research design, population where the researcher selected 80 respondents, instrument of data collection where questionnaire was used; sample size and sampling techniques where 80 respondents were selected at random, method of data analysis was also discussed in this chapter as simple percentage was used to analysis the data collected, after which the validity and reliability of data collected were proved by the supervisor of this study.
Chapter four of this study discussed the data presented. The chapter also shows how the data collected through questionnaire method was analysed and discussed, presented by the simple percentage statistical method.
While chapter five deals with the summary, conclusion and recommendation which is aimed at finding possible way forward.
Before concluding this research study on the impact of foreign aid on Nigerian socio-economic development and the help of NEPAD as an indigenious initiatives to achieving millennium development goal of African states.
It is imperative to point out that “A purely contemporary view of any problem is necessary a limited and even distorted view. Every situation has its root in the past…. The past survives into the present, the present is indeed survives undergoing modification. NEPAD indeed is a self-help plan by African governments spearheaded by south African president. NEPAD formerly the New African initiatives is an initiatives by African leaders, to set their countries on a path of sustainable growth by promoting sound economic management democracy, human rights and full participation in the global economy.
It is being welcomed internationally as a determined step by Africans to rebuild their continent by encouraging peace and stability, poverty reduction and regional co-operation.
NEPAD’s programme promises democracy and good governance seem as essential component of economic development.
Dr. Mohammed Ibu Chambas, the executive secretary of ECOWAS, said that the experience of independent African countries on governance had generally been characterized “by palpable failure, fuelling in its turn, which in the process drown into political scene where they became major players, with similar devastating consequences and had recognised NEPAD as a new paradigm on good governance and socio-economic development.
NEPAD documents programme of action covers numerous socio-economic aspiration with a target date of 2015 for the realization of most of them. Meanwhile NEPAD seek to eradiate poverty in Africa, promote accelerated growth and sustainable development, not just economic development, but growth an sustainable development. That is, as the economic growth, it spread to all across the social state into the health sector, into education, into agriculture, into every sector.
Frantz Farnon (1979) observed that “every generation out of relatives obscurity must discover their mission or betray it”. “Dr. Ibn Cgmabas described as tragic, the case of Africa, a continent richly endowed yet excessively depleted of its human and material resource in many cases with demonstrated reckless abandon” adding that the continent had been a major source of supply of various commodities to the world for centuries “key areas identified in African include an array of mineral, oil and gas deposits rich flora and fauna, a manpower that has provided quality service abroad, a rich cultural heritage that contribute to enrich other cultures” he explained. However, inspite of such riches, Africa remain an impoverished and marginalised continent as a result of what constituted the bridge between African potential wealth and the state of deterioration and backwardness. The impoverishment of the continent was mainly driven by the legacy of centuries of slavery decade of cold war and the experience of our new African leaders to deal with their environment.
Meanwhile following the above assertion, the research has been able to post the following recommendations.
Firstly, Nigeria government should address the issues of corruption by setting up institutions or agencies that will deal with corrupt leaders or official as this will enhance successful achievement of NEPAD’s programmes.
Secondly, NEPAD should extend its aid to both private and public organisation and should not be restricted to the government only.
Thirdly, Nigeria government should give full support to NEPAD by providing enabling environment for its operations in Nigeria. For instance, requisite manpower should be made available.
Fourthly, NEPAD ought to be seen by both African and western leaders as the authentic basis for African’s “Marshall plan” for redressing previous for reconstruction.
Fifthly, Nigerians should understand that Africa’s debt to the west is not longer an economic business issue but one which the west continues to prosecute as a political agenda through ever Subter Fuge. That stance has to change.
Sixthly, Nigerians should also understand that foreign investment can only come if indigenous investment is growing as an evidence of trust in the economy which must enjoy adequate macro-economic policy and a conducive environment for investment.
Nigeria government should learn to grow in the understanding and practice of democratic government that ensures the right and participation of the people who actually are the end and means of development.
Finally, Nigeria should know that a situation of perpetual wars, skirmishes of religious, ethnic and violent political conflicts will only create uncertainty in the country. So, unless Nigeria leaders address these problems, NEPAD will prove inadequate if not counter-productive in bringing about development.
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1. Gender: Male Female
2. Age: 18-25 yrs 26-35yrs 36-45yrs 46 & above
3. Marital status: Single Married Widow Widower Divorced
4. Qualification: FSLC SSCE GCE OND/NCE HND/B. Sc M. Sc/PHD
5. Religion: Christian Muslems Traditionalist
6. Nationality: Nigeria: Yes No
Please tick (√) in the box against answer of your choice.
7. Are you aware of NEPAD programmes in Nigeria?
Agreed Undecided Disagree
8. Is imperialism truly the major cause of underdevelopment of African State?
Agreed Undecided Disagree
9. Does NEPAD provide long term loan to Nigeria?
Agreed Undecided Disagree
10. Has NEPAD not able to capitalize the newly established banks in Nigeria?
Agreed Undecided Disagree
11. Is economic Underdevelopment of Nigeria of foreign origin?
Agreed Undecided Disagree
12. Does the programmes of NEPAD on agriculture in Nigeria increase productivity in Nigeria?
Agreed Undecided Disagree
13. Is unsustainable debt burden a challenge to Nigeria socio- economic development?
Agreed Undecided Disagree
14. Are corrupt leaders a cause to Nigeria socio-economic underdevelopment?
Agreed Undecided Disagree
15. Is NEPAD capable of making Nigeria achieving her millennium development goal?
Agreed Undecided Disagree
Nigeria’s Socio-economic Development – The Impact Of Foreign Aid: A Case Study Of Nepad
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