June 18, 2013

Achieving Inclusive Growth Through Pro-poor Spending

The
paper examines if the nature of the economic growth in Nigeria is inclusive
(Pro-poor) or exclusive (pro-rich) and recommends ways to achieve inclusive
growth with emphasis on Pro-poor spending.

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Author:Ibrahim A. Tajudeen

Publication Date: December, 2011

Document Size:18pages


Objectives

  • This study aims to achieve the following objectives;
  • Determine whether Nigeria is experiencing economic growth.
  • Determine the nature of the growth in Nigeria inclusive (Pro-poor) or exclusive (pro-rich)?
  • Recommend ways to achieve inclusive growth or to sustain existing inclusive growth emphasize Pro-poor spending.

Concepts

Inclusive Growth

    • growth that enables the poor to actively participate in and significantly benefit from economic activities.
    • growth that reduces the level of poverty by providing everyone the minimum basic capabilities
    • Labour absorbing, mitigate inequalities, facilitate income and employment generation for the poor, particularly women (ADB,1999)

Pro Poor Spending

    • reduces the level of poverty, inequality and empowers females.
    • focuses on the development of key social and




Related

 

Infrastructure Financing In Nigeria:

Similar to most sub-Saharan African (SSA) countries, Nigeria has a huge infrastructure deficit which considerably limits efforts towards achieving inclusive growth, sustainable development, and poverty reduction. With infrastructure stock estimated at 20-25 per cent of Gross Domestic Product (GDP), Nigerias infrastructure stock is still significantly lower than the recommended international benchmark of 70 per cent of GDP. The 2014 National Integrated Infrastructure Master Plan (NIMP) estimates that a total of US$ 3 trillion of investments, or US$100 billion annually, is required over the next 30 years to bridge Nigerias infrastructure gap. In particular, the Plan estimates that Nigeria will have to spend an annual average of US$ 33 billion infrastructure investments for the period 2014 -2018. This means that Nigeria will have to more than double its spending on infrastructure from the current 2-3 per cent of GDP to around 7 per cent to make appreciable progress in infrastructure development over the next three decades.

The Chinese Model Of Infrastructure Development In Africa

Infrastructural development is a key step in providing a competitive business environment for African economies. It provides the backbone for poverty reduction strategies and programmes designed to improve the livelihood of the poor. Africa is in dire need of infrastructural development. The absence of quality infrastructure in the continent holds back per capita economic growth by 2 percentage points each year and depresses firm productivity by as much as 40 percent (Escribano et al., 2008 and Kelly, 2012). Estimates suggest that around USD 90 billion is required to close Africas infrastructure gap annually until 2020 (AICD, 2010).

Internally Generated Revenue

Internally Generated Revenue: Total internally generated revenue particularly declined across the 36 states in Nigeria, in 2015. This is attributable to the weak macroeconomic and financial conditions