Economists in the house, please help me out o. A certain Obinna Aligwekwe is proposing a new MBA theory as regards Rebasing here: No bro, mere growth in itself has little to do with sound macro-economic projections. The sheer resilience of a growing populace can. Do not mix mere growth with development. Nigeria is merely growing, not developing, but her astronomical increase in populace is making that growth significant, even without the needed commensurate development. Lets tease these fine differences first, then you will appreciate the fact that an economy can be bigger, but not necessarily better. He also said: I think we are missing something here. Even economists who have acknowledged the figures have also said NOTHING HAS CHANGED. We just realised our potential was bigger than we thought it was. Size does not connote progress. Its like a farmer who does an audit of his land, thinking he has 15 plots, only to find out he has 20. That info will not help him in anyway until he factors it into future plans. At 170 million, it should not be a miracle that our economy is larger than SAs, but when you divide the total income over populace, SAs citizens will be more affluent, more secure because their revenue base is wider due to more diversification. Thats where all these indices (GDP, GINI, HDI, PCI) come in with their different connotations. A family of 15 with an income of 10,000naira may have more money, but less quality of life than a family of 3 with 5,000naira. If ever you have argued about China overtaking Japan to become worlds number 2, then be informed that its the same process of rebasing that brought about that reality, even though the poor in China is more than the whole population of Japan. Ditto for the way Brazil overtook the UK to become the worlds 7th largest. That is why the process is generating ripples across the continent, and attention globally, even when the same pundits maintain that the main work is in providing infrastructure, enacting favourable policies and combating corruption. Please economists in the house, help us take a deeper look.
Posted on: Mon, 07 Apr 2014 19:14:54 +0000
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