To avoid being perceived as anti government, I agree that Nigerias economy has overtaken that of South Africa as reported by the government. I agree that Nigerias GDP was rebased to arrive at an alarming 60% growth rate that moved the GDP from $1100 to $1700 (from 1999 to 2014). These are known facts even though not clearly proven. What is not known is why the rebased GDP and its impact on the overall growth of the economy has not moved Nigeria from the rank of world poorest countries whose citizens live below $1.25 a day. An interesting report would be such that shows how a 60% increase in GDP has moved Nigerians above the national or international poverty line. Am wondering if GDP is no longer a measure of total income and productivity? Or have we changed the definition? This is interesting because one of the variables that UNDP measures in its annual human development report to determine which nations are ranked as low, medium or high is GDP per capita (purchasing power parity). I would like our economists to tell us why Nigeria still ranks among low human development countries with a HDI score of less than 50. Is it that the GDP has been growing silently without a corresponding impact on the lives of citizens? How do we generate GDP? We generate GDP through income earned as a result of individual productivity. How do we determine the GDP of garri sellers in our villages, the cobblers, the tailors, the seamstresses, the people doing pedicure, the rice farmer etc? This was the question I asked at the World Bank Institute and gratefully I trained by top World Bank economists who produce knowledge that shapes how nations define their growth. I will not discuss my World Bank experience on facebook. Second, how many people have been employed in my local government (taking into consideration the public sector, the private sector and the informal economy?) How many poeople in my local government for example earn as high as $1700 on average through productive employment? That amount is probably what the majority of persons in our local government earn per year. If national accounting takes into consideration income generated from every sector of the economy including the local, informal sectors that are not properly calculated, am wondering where my local government falls in GDP growth. There is money in our community. There is construction work everywhere and young boys are earning money as masons, plumbers, electricians etc. But has it occurred to the local government administration to take stock of these economic activities? This is why we must have experienced people as legislators and local government executives who think economically and who think beyond the monthly allocation. Surprisingly, those of us talking about these issues or raising more critical issues are often the enemies.
Posted on: Tue, 08 Apr 2014 15:26:11 +0000
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