Showing posts with label subsidies. Show all posts
Showing posts with label subsidies. Show all posts

Wednesday, 26 January 2011

Ribadu on Foreign Policy

Awareness
This section of Mr. Ribadu's plan realises that until Nigeria has sorted out its domestic situation, it can't be overly active in terms of foreign policy. Despite this, the plan could have done more to acknowledge Nigeria's role as a regional player in ECOWAS etc. and the implications this has or could have economically or militarily (although mention was made of the gulf of Guinea Commission). It also neglects to mention the role of diplomacy and foreign policy in addressing trade imbalances, attracting foreign capital and redressing the brain drain.

Ambition
The plan has little in the way of actual policy but demonstrates a desire to cut back the role Nigeria plays outside of our crusade for democratic government in the region.

Detail
As there is little in the way of policy, there is little in the way of detail, although reviving the Gulf of Guinea Commission is mentioned explicitly.

My View
I agree for the most part with the Mallam on this section. We as a nation need to stop throwing our weight about on the international scene until we have sorted out the problems at home. We need a period of isolation, where the only foreign policy addressed is to pursue economic issues such as the removal of subsidies and trade barriers, the compensating of developing economies for the brain drain and attracting strategic foreign direct investment

Scores (Out of 5)
Awareness: 3.25
Ambition: 1.0
Detail: 1.5
My view: 4.25

Ribadu on The Economy

Awareness
'The Pathway' is very perceptive of the problems of the Nigerian Economy. It acknowledges the problem of unemployment ( in particular youth and graduate unemployment) and the effect that this is having on education. It also notices the not-so-well publicised problems of a growing fiscal deficit, diminishing excess crude accounts, diminishing foreign exchange, increased domestic debt and the problem of states borrowing beyond their means. There is also an implicit nod to the need to diversify the economy away from the oil-sector.
However, there is no mention of the problem of inflation and in particular regarding the inflation of food prices and seasonal price variation. There is also no mention of income inequality.

Ambition
The aim of reducing youth unemployment will no doubt be difficult, but it has to be seen as necessary rather than ambitious. The failure to achieve it will lead to economic rot and political instability for generations to come. That said, the introduction of target based economic planning in Nigeria is ambitious in itself but beyond that the targets that are set (7-8% growth for the next five years) are very ambitious especially as without proper diversification the fortunes of the Nigerian economy are dictated by external factors ( global commodity, oil and food prices). So the less ambitious sounding plan for diversification is important to any grander plans for the economy.

Detail
The plan is very detailed in its analysis of the problem, It is very detailed in its goals giving measurable targets and specific timescales. Despite this, it is not forthcoming in what sepcific policies will be used to achieve these targets. It speaks of investment in infrastructure, healthcare education etc and creating 'an enabling environment' but this sort of rhetoric will surely be common to most people's manifestos and without specific policies to promote, then these are meaningless.

My View
I think the Nigerian government really doesn't have a saving mentality, building up reserves wil just leave more in the kitty for the next government to steal. I feel therefore that governemnt should spend, spend on new industries, spend on subsidizing burgeoning industries, spend on training and possibly spend on state-owned enterprises ( especially in agriculture). I am also disappointed that there is no plan to combat high inflation or at least bring it into the single figures. Having said that Mr. Ribadu's plan is on the money about a lot of the problems facing the economy and the targets set out to combat them are commendable.

Scores (Out of 5)
Awareness: 4.5
Ambition: 3.5
Detail: 1.5
My View: 3.0

Ribadu on Agriculture and Food Security

Awareness
Here he recognizes the historical failure of agricultural policy in Nigeria despite the well documented human and natural resources available to implement them. His plan also recognizes the role agriculture has in terms of reducing imports and creating jobs. In addition to this it does well to acknowledge that the failings in this sector are failings of productivity and not of effort.
However, the document could have done more to recognize the role played by food prices in terms of inflation and overall poverty. It also fails to link the failure of commercial agriculture in Nigeria to the policies (vis a vis subsidies) of the western world.

Ambition
The policy that is mentioned here is to provide every school child with an egg and a glass of juice/milk everyday by 2014. The plan also wants to put in place a system of grants and loans to help farmers. These are relatively ambitious without necessarily being revolutionary.

Detail
The Policy of providing school children with egg and milk is fairly detailed in that it is easily measurable and a time frame is given, however it fails to say who will fund it and how it will be distributed and who will enforce it. The grant and loan system is vague, vague in its criteria for giving out the loans and vague as to which crops will be supported. In general, the section is vague as to how the administration would seek to solve the problems of agriculture highlighted in the plan

My View
Agriculture is so important for any developing country, so much so that it needs to be at the core of economic/industrial/social policy.
There are problems surrounding property rights that need to be addressed first, but principally I think Nigeria should identify the food crops that are necessary for the nation and invest public finds in them - either through marketing boards (to encourage over-production) or to buy land and grow crops themselves. I think industrial (export orientated) agriculture should be pursued as well, in terms of palm oil, tea, cocoa, coffee, ground nut etc.
The plan to introduce a cup of milk and an egg into each child's school day is admirable but should really be part of a health policy. The use of grants and loans I am always suspicious of in the Nigerian context as it provides an avenue for the easy diversion of funds.

Scores (Out of 5)
Awareness: 3.75
Ambition: 2.75
Detail: 2.0
My View: 2.0