Nigeria: Hike Of Fuel Price And Scarcity Of The Product In The Past Years And Globalism/Washington Consensus On Economy In Developing Nations (1)

Nigeria: Hike Of Fuel Price And Scarcity Of The Product In The Past Years And Globalism/Washington Consensus On Economy In Developing Nations (1)

Nigeria: Hike Of Fuel Price And Scarcity Of The Product In The Past Years And Globalism/Washington Consensus On Economy In Developing Nations (1)

Nigeria: Hike Of Fuel Price And Scarcity Of The Product In The Past Years And Globalism/Washington Consensus On Economy In Developing Nations (1)

Global economic policy on advanced nations and economic emerging nations are not the same. Most of the leaders in emerging nations of Africa and other South South nations don’t have ideas on global view or otherwise call “global direction”.

As this writing said it several times that economy is the most important element in nation’s and family life in every parts of the world. Many factors triggered economic aridity especially in 1938 and 2008 whereby both advanced and less advanced nations experienced economic meltdown. Hence, that’s what made it imperative for global economic stakeholders and economic policy makers to find solutions for the economic emerging nations that shall be different from that of Northern parts of the world. So, global economic experts such as Professor John Williamson were requested by WB/IMF to designed economic prescription for the developing nations of Southern parts of the world.

Some The Ten Prescription

Some of the ten prescription include removal of fuel subsidy, privatization, deregulation of nation’s currency, diverting the nation’s income to be spent on primary health care, primary and secondary education, tax reform and so on. Although some scholars around the world criticized the ten prescription for developing nations. And the fact of the matter has been that competition is the most important element in capitalism and capitalism will not contains laziness, illiteracy and bad governance.

But despite the argument some nations such as Brazil, Mexico, Kenya and many emerging nations in Africa, Asia and Latin America have succeeded in implementing the economic reform. Also nations such as Saudi Arabia, UAE and other nations in the Middle East adopted and implemented the reform and succeeded economically. Therefore, the reform is still ongoing in Nigeria and other South South nations.

Although There Was

Although there was an option call “Beijing Consensus of 2004” which gives developing economies to find their owned ways on how to reform the economy of their nations. But the Beijing economic policy has not being implemented by the emerging nations for the fact that the world has been globalized since mid90s based on 3 key principles: democratization, integration of global economy and multiculturalism. Very few nations isolated themselves (North Korea, Cuba, Venezuela) and still globalism or call global order exists as an IPP that is international public policy under the watch of UN and other global stakeholders/NGOs etc. That’s to say policies on education, healthcare, economy, security etc.

COVID-19

Covid-19 is slowing down the world economy and it seems that global economy is moving into eclipse as both advanced and emerging economic nations are lockdown their nations as a preventive measures against coronavirus known as covid-19 pandemic. The world nations seems to be in sorry stage at the moment. Would the world experience economic recession like 1938 and 2008?

Nigeria is number seven in oil quantity in the world and 85% depends largely on oil for foreign income. And oil price is now less than $40 per barrel in global market and the budget of 2020 was estimated at $57. And this means that deficit is certain and FG went back to the drawing board and readjusted the budget of 2020.

Economic Interplay

Economic interplay between nations in the world is the live wire of human existence and also the wheel that drives the human family. Economic interplay is everything as far as human life is concerned. This means that economic activities are an imperative part of human existence especially at this era of globalisation policy. We have two types of economic activities; political economy and that of market economy. Both are essential in the existence of any nation in the world. But political economy is the mother of all because it all depends upon the policy formulation by the nation’s economy experts and policy makers.

Professor Robert Gilpin observed "Repackaged securities and other financial assets play an important role in international finance.

Professor Robert Gilpin observed “Repackaged securities and other financial assets play an important role in international finance. Valued at $ 360 trillion (larger than the value of the entire global economy)” R.Gilpin, 2001. And again,the world economic inter-play is amounting to “$1.08 trillion” (Baylis J./Owen, 2008) every 24 hours (all global stocks-exchange). Can we describe Nigeria among the key players of the world economy or even African nations? One can analyze that the stocks-exchange at world-over is a replica of how economic activity is taking place in every market around the world.

Professor Robert Gilpin observed "Repackaged securities and other financial assets play an important role in international finance.

The global economic activities are shrinking due to the fact that there is a wide gap between advanced economies and less advanced economies. This writing doubts that 54 African nations possessed 2% of the global economy. “USA with 26% of global GDP and only 4%of global population” (George Friedman, 2009). And again, EU nations with about 25% global GDP; S/South nations are in deep economic backward.

 

Although BRICS nations possessed 28% of global economic activities and unfortunately Nigeria is not among the BRICS nations. And Nigeria needs to either join BRICS nations or create another economic forum that may comprise nations such as Mexico, Nigeria, Saudi Arabia, Indonesia and South Korea.

 

*Nigeria as an example on implementing the economic reforms

 

The total capital of Nigeria’s stock exchange seems to be around or a little above 13 trillion Naira; I think about or less than $50 billion? When one subtracts $50 billion out of $1.08 trillion then one may ask is the amount significant in the world economic interplay?

 

Nigerian leaders must wake up and create more policies that will boost the nation’s economy. Malaysia, Brazil, Saudi Arabia, UAE, South Korea and many economic emerging nations are an excellent example on economic reforms; especially tax reform and other sources of foreign earning.

 

Again, Gilpin says that “It is estimated for example, that Africa south of Sahara accounted for only about 1 percent of total world trade in the 1990s”. Nigeria is a major economic player or spectator in the world economy? If we are players what do we contribute as a nation to the world economy? We are dependent on oil (before now 90% now 74% as our export, so no nation is among the 20 largest economies in the world. By 2020—2040 plan what is our GDP out of $54 trillion of world GDP?

 

(Friedman, 2009) Brazil is the 5th largest economy in the world today (one step ahead of Britain) but their dependency on oil is only 12%. No nation that depends on oil export is among the top ten economies in the world. Manufacturing and digital economy are the key elements to boost the nation’s economy.

 

So, what makes a nation to be economically strong and among the world top economies? Nigeria must support and back agriculture, trade/services and manufacturing. But not oil. 90% or so of the world economy is trade and services. Not oil! Oil is just an element of fueling/oiling the world economy, pure and simple. Our leaders should take note of these points. Otherwise Nigeria will remain lingering in global economic activities. The measures taken by the PMB’s regime to close borders, block leakages and fight corruption is the only option to boost the nation’s economy among the comity of nations. And again, emphasis on agricultural, digital economy, health care and qualitative education are the keys for future generations to benefit.

 

*Comparative analysis on fuel scarcity in the past years and the current hike price———

To be continued inshaAllah

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Abbati Bako, (International Political Strategy and Communication Consultant, IPRC, Nigeria)

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