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STUDENT NOTES - 3

STUDENT NOTES - 3. Political Economy and Development. Deep state involvement in the economy was an enduring feature from the colonial period until the mid-1980 ’ s

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STUDENT NOTES - 3

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  1. STUDENT NOTES - 3

  2. Political Economy and Development • Deep state involvement in the economy was an enduring feature from the colonial period until the mid-1980’s • 1985 saw the implementation of a structural adjustment program under the Babangida government, though it failed largely as a result of public opposition and the deeply entrenched nature of the country’s economic problems • After the 1980’s, the role of the state was undermined and regulatory functions eroded; the predatory and corrupt behavior of leaders also grew, creating even deeper problems • Strong competition to control natural resources, and economic opportunities among the various ethnic, religious and regional groups.

  3. Political Economy and Development • 1970’s: oil sucked up much of the domestic capital that might have been used to agriculture or industry • Rentier state: a country that obtains lucrative income by exporting a raw material or leasing out a natural resource to foreign countries • Oil is the property of the state • ~2.5 million barrels/day • 95% of export earnings • 80% of federal revenue

  4. Political Economy and Development • CONSEQUENCES: • lack of diversification of the local economy • price fluctuations caused by dependence on world market • income inequality exacerbated where disparity is already extreme • no incentive to industrialize/modernize economy • increased opportunity for corrupt usage of income from rents • lack of accountability to citizens

  5. Political Economy and Development • Oil • Oil wealth during the 1970s gave Nigeria international leverage • OPEC member • Conflicts in Middle East have made Nigeria more important as a trade partner for other countries since 1970s • Lack of economic diversification hurts Nigeria when oil prices drop • DEBT – as a result of drop in oil prices and lack of revenue surplus • Structural Adjustment • 1980s, Nigeria seeks assistance from international organizations to deal with debt crisis • World Bank & IMF involvement • Restructure & diversification of Nigerian economy • Privatize parastatals • Cut government spending • “Shock Treatment” not very successful • Parastatals still under government control • Debt repayment had to be restructured

  6. Political Economy and Development • Nigeria in the Regional Political Economy • Economic Community of West Africa States (EWOWAS)-attempts to unite currency and trade efforts • Mission: promote economic integration across the region; trade block

  7. PUBLIC POLICY • Obasanjo retired all military leaders who held positions under military governments • Promised to fix the economy and Nigerian state. • Raised the minimum wage • New management for oil sector • “truth and reconciliation” commission to address abuses and fight corruption • Won re-election amid a electoral malpractices which lost confidence among the people. • National Political Reform conference 2005- to review constitution and establish legitimacy.

  8. PUBLIC POLICY There's a long-standing dilemma in Nigeria's oil-rich Niger Delta region. The people are desperately poor and blame the oil companies for polluting their land and fishing waters. As a result, many folks steal oil from pipelines and refine it in barrels along the creeks. That, in turn, further pollutes the environment.

  9. PUBLIC POLICY • ETHNIC MOVEMENTS arose • socioeconomic inequality and discrimination. • exploitation of local natural resources by the government and foreign oil companies • MEND: Movement for the Emancipation of the Niger Delta. • MOSOP: Movement for the Survival of the Ogoni People. • Indigenous peoples in Niger Delta (Ijaw). • OPC: Oodua People’s Congress (Yoruba). • MASSOB: Movement for the Actualization of the Sovereign State of Biafra (Igbo) • Boko Haram (only acceptable if directly tied to Hausa/Fulani ethnic group).

  10. PUBLIC POLICY MEND's stated goals are to localize control of Nigeria's oil and to secure reparations from the federal government for pollution caused by the oil industry

  11. PUBLIC POLICY MOSOP's mandate is to campaign non-violently to: promote democratic awareness; protect the environment of the Ogoni people; seek social, economic and physical development for the region; protect the cultural rights and practices of the Ogoni people; and seek appropriate rights of self-determination for the Ogoni people.

  12. PUBLIC POLICY • Environmentalist • Ken Saro-Wiwa • Targeted the international oil companies

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