STUDENT NOTES 3 CH. 6 NIGERIA

POLITICAL ECONOMY  Origins of Economic Decline Nigerian economy was centered on agricultural production for domestic consumption as well as for export. –Nigeria self-sufficient in food production at independence Late 1960s emphasis shifted to nonfood export crops through large-scale enterprises –Small farms received little government support. –Food production declined, food imports increased to meet population needs. Three factors undermined Nigerian agricultural: Biafran War (1967–1970) Severe drought and subsequent famine Development of petroleum industry

POLITICAL ECONOMY 1970s oil boom allowed Nigeria to increase education, defense, infrastructure expenditures. –Imports of capital and consumer goods increased seven-fold. –Budget deficit by 1978 caused borrowing and increased debt. Increased oil wealth increased corruption. –Nigeria forced to import refined petroleum. –2002 internet scams had become one of Nigeria’s top five industries, earning more than $100 million annually. Oil boom: double edged sword –Generated large amounts of income –Source of external dependence

POLITICAL ECONOMY 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 – ***Dependent on that revenue! – Oil is the property of the state – ~2.5 million barrels/day – 95% of export earnings – 80% of federal revenue

POLITICAL ECONOMY 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

POLITICAL ECONOMY Nigerian wealth was perceived by elite as source of strength. –When the oil market fell, oil dependence was seen as a source of weakness. Nigeria was forced to seek support from international financial institutions. Nigeria remains dependent on Western technology and expertise for oil exploration and extraction. Formation of African Union, based on European-style integration Governments commit to good governance and economic reforms in exchange for access to Western markets and financial assistance.

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

Nigeria’s Goodluck Jonathan, profile of a president Describe how President Jonathan “fall into the presidency.” Describe how President Jonathan’s run in 2010 broke with PDP tradition. Explain why President Jonathan’s rise to power is described as ‘meteoric.” Describe how each of the following have weakened President Jonathan’s political position/legitimacy: – Allegations of corruption: – Insurgency of Boko Haram: – President Obasanjo’s critique’s:

Nigeria schools walk line between Islamic and Western traditions Describe the difference in access in education in northern versus southern Nigeria. Describe how access to education for even a small amount of children in northern Nigeria can have a larger impact on entire villages. Describe the possible long-term outcomes to modernizing Koranic schools. Explain how northern Nigeria’s colonial past threatens the desire to modernize education.

Nigeria’s “brown envelope’ journalism Explain how ‘brown envelopes’ undermine freedom of the press. Explain how the meaning behind the following statement threatens Nigeria’s frail democratic status: “The Nigerian media has become a thriving arena for all sorts of sponsored falsehoods.”

Nigeria’s fashionistas upset by falling oil prices Explain how Nigeria’s status as a rentier state has affected prices on basic consumer products. Describe the suggested solutions for Nigeria’s ‘monoculture economy.’

Nigeria’s suddenly supersized economy is indeed a wonder; but so are its still-huge problems Describe the conditions that have led to Nigeria’s present/new status as the ‘colossus of the continent.’ Explain how Nigeria’s GDP and GDP per head account for its classification as both growing economically while still lacking developmentally. Describe the conditions that can lead to Nigeria’s economic progress slowing.

Nigerian elections: Goodluck Jonathan vs. Muhammadu Buhari again Explain how the presence of Boko Haram threatens the 2015 Nigerian presidential election. Explain why the Nigerian media has predicted a possible victory for Buhari after 3 consecutive losses. Explain how the presence of Boko Haram threatens Buhari’s election chances. Describe the methods used by the National Electoral Commission to ensure a clean election.