Vision 2020: How do nations develop?
By Luke Onyekakeyah - vanguard newspapers.

THE recent statement by President Umaru Yar'Adua that Nigeria needs investment of between $8 and $10 billion annually to be among the 20 developed economies by 2020 puts the vision in suspense. It raises a number of fundamental questions about what development is all about and what makes it happen. Is it a matter of mere availability of cash or are there some other more critical issues that must be addressed to make development happen?
How did the countries like Japan, Europe and America develop? How did the Asian Tigers, namely, Singapore, Malaysia, China and South Korea emerge as developed economies? Economic development has precedents. There are countries out there that have succeeded in lifting their economies from poverty to affluence.

Today, countries aspiring to develop economically have excellent models to understudy and adapt to suite their local situations. Granted that the circumstances of countries vary, when examined closely, it would be found that the developed countries have a lot in common. They have adopted the same patterns and procedures to excel.

From the angle of the President's statement, the attainment of the vision 2020 is a function of massive capital investment in the economy that must be consistently implemented in the next one decade and two years. If this feat is realizable, vision 2020 will be a reality. On the other hand, if the envisaged quantum of investment is not received, the vision can as well be forgotten. In this regard, achieving the vision 2020 is a feat that depends on huge financial investment. At this juncture, it is pertinent to ask where is the plan for the 2020 vision? There must be a deliberate policy framework legally binding to transform the country. What we have at the moment is mere rhetoric.

President Yar'Adua's statement was made at a conference on microfinance in Abuja. He was represented by the Minister of Finance, Dr. Shamsudden Usman, who also hinged the attainment of vision 2020 on the development of the microfinance sector. I like to agree with the Minister that microfinance has the capacity to reduce mass poverty if it is properly administered. Countries like Bangladesh where selfless individuals with commitment have administered microfinance over the decades have witnessed tremendous transformation in the lives of the people.

But Nigeria's microfinance administration has not recorded any success like in other places. There are too many of these banks all over the place without corresponding impact. They are not contributing to poverty reduction, as they ought to. This is because the banks are formalized and regulated like the conventional banks. Lifting the masses from the throes of poverty and squalor to productivity at the micro-level is a necessary ingredient for realizing the vision 2020. The real sector must be active and productive as a precondition for attaining vision 2020.

When it is realised that the year 2020 is only 12 years away from now, going by the president's comment, Nigeria must invest between $96 - $120 billion to realize the vision. This is a huge amount of money, which nonetheless, is affordable by Nigeria. There has virtually been no time since independence that the country lacked the funds to realize its development goals. Bad leadership and corruption are the bane of our development.

For example, last year, the immediate past chairman of the Economic and Financial Crimes Commission (EFCC) Nuhu Ribadu, at the launching of the "FIX Nigeria Initiative" in Abuja disclosed that about N65 trillion (?220 billion) has been stolen by the past Nigerian leaders within the past 40 years of independence. The stolen money according to him was part of a total of $500 billion official development assistance (ODA) granted to Nigeria during the four decades. Ribadu regretfully stated that the money could have recreated the beauty and glory of Western Europe six times all over Nigeria.

Nuhu Ribadu was definitely right in his observation. The development of Europe cost far lesser amount. When George Marshall, the U.S. Secretary of State launched the Marshall Plan to reconstruct Europe at the end of World War II (WWII), the United States offered just $20 billion for the project. Subsequently, all the European countries came together and drew up a plan on how to utilize the aid. The impact of the Marshall Plan came quickly. Between 1947 and 1953, a period of 7 years, Europe was revived and came back on its feet. The Marshall plan helped to provide food for the starving folks provided shelter and put the economy back on course.

The point of this discourse is that Nigeria can conveniently afford $120 billion to realize the vision 2020 if that is what is required to attain that goal. As a country, Nigeria does not lack money to accomplish any task. When the former military head of state, Gen. Yakubu Gowon, reaped the first oil windfall in the mid-1970s and declared that Nigeria's problem is not money but how to spend it, many thought he was a jester and criticised him.

When Gowon's statement is put alongside Ribadu's, it becomes obvious that really the country has enormous cash, which she does not know how to spend. It is by the reason the country not knowing how to spend its wealth that engenders looting of the public treasury by those in authority. Because the country has failed over the decades to develop a national development plan, privileged individuals take advantage and plan for themselves and their families with the money that could have been used to develop the country.

It is interesting that the discussion about Nigeria joining the 20 most developed economies is coming at a time the country is reaping from another oil windfall. With a barrel of oil selling for nearly $100, President Yar'Adua can be rest assured that money cannot hinder any genuine drive to develop the country. We have the excess crude oil money. We have a foreign reserve that has peaked to around $45 billion etc.

Having said that, the attainment of vision 2020 would be hindered by other fundamental issues that have nothing to do with money. The question to ask is how did the 20 top economies develop? If we want to join the 20 topmost economies in the world, we must think like them in every aspect.

According to the World Bank, there are common factors that are associated with successful development. No country has attained development outside these common denominators. These are:

Economic growth: This has to do with poverty reduction. Experience shows that countries that have reduced poverty substantially and in a sustained manner are the ones that grow fastest. Successful development is predicated on a country having sustained periods of high per capita income growth. Mass poverty and economic development don't go together.

Vibrant private sector: It has been established that private firms, including small and medium-sized businesses in rural nonfarm sectors, play a critical role in generating employment, particularly for the youth and the poor. Like I said earlier, this is where the contribution of the microfinance banks is needed. Undeveloped real sector coupled with mass unemployment are obstacles to development.

Empowerment: The citizenry must be empowered to contribute to development. Accordingly, every person should be able to enjoy good health and education. People should shape their own lives by being able to participate in the opportunities provided by economic development. People should have their voices heard about decisions affecting their own lives. Furthermore, there should be essential public services such as health, education and safe water. These are critical social services that should be provided equitably.

Good governance: Good governance is perhaps the most important factor in development. Without good governance, every other thing is in disarray. Good governance in both public and private sectors creates an environment where contracts are enforced and markets can operate efficiently. It ensures that basic infrastructures are provided, with adequate health, education and security. People can effectively participate in decisions that affect their lives.

Ownership: A nation's development agenda must be homegrown. This ensures that there is widespread support for the programmes and reform measures that underpin it.

Based on the foregoing, Nigeria must do the first thing first. We must start from the grassroots to transform the economy. We must follow the pathway to economic development, which the other developed nations have followed.

@topic.

This is excellent for me. Do you agree?

Too much Grammar

Sad!!!

instead of talking about it, do something about it. the article hardly says anything about how this can be achieved.

bawomol:

instead of talking about it, do something about it. the article hardly says anything about how this can be achieved.

Sorry, i will be forced to do something by picking up arms like MEND, OPC and NDVF soon. Or what do you expect me to do; Change the minds of people like Yaradua, the Governors and over 800 persons in the legislative arm of government?

Just go through this and you may understand well the only way for Nigeria to develop.


Good governance: Good governance is perhaps the most important factor in development. Without good governance, every other thing is in disarray. Good governance in both public and private sectors creates an environment where contracts are enforced and markets can operate efficiently. It ensures that basic infrastructures are provided, with adequate health, education and security. People can effectively participate in decisions that affect their lives.

@nuzo
I can see that you are from China, but I don't know whether you are Nigerian or not. However, read my question below:

Tell me if you were the Nigeria President, Yaradua's shoe , how can you deal with 140 millions Nigerian population with 250 Nigeria-speaking languages and 350 ethnic groups/tribes in the 35 states of Nigeria to resolve this problem?

Plus the majority of them are unemployed and illiterates in Nigeria.

Did you do your research understanding about the Nigeria Culture and Language?

if i were president i'd spend the fOUR year budget on agricultural settlements AND industhal parks. DOESN'T Matter what tribe religion language literacy level people all like home things. do the right things and the people will give you a chance.

No one is interested in Nigeria anymore.

The first step towards developing Nigeria is through banning of all political parties, pan ethnic groups like Ohananze, odenigbo, MEND, arewa, Nze na ozo, Yoruba council of crooks, Afenifere, OPC etc. Nigerian should utilize the web and proffer solution on how to elect leaders who are interested in pursuing Nigerian dream instead of ethnic dream. Let there be no major and minor tribes but institute equality among every Nigerian citizen. Until we learn to respect and judge each other by our individual characters and not by the gender, religion, tribe or ethnic group we belong to, we are going nowhere.

aloy*emeka:

The first step towards developing Nigeria is through banning of all political parties, pan ethnic groups like Ohananze, odenigbo, MEND, arewa, Nze na ozo, Yoruba council of crooks, Afenifere, OPC etc. Nigerian should utilize the web and proffer solution on how to elect leaders who are interested in pursuing Nigerian dream instead of ethnic dream. Let there be no major and minor tribes but institute equality among every Nigerian citizen. Until we learn to respect and judge each other by our individual characters and not by the gender, religion, tribe or ethnic group we belong to, we are going nowhere.

Chai Emeka you are really a strange character, so you have such progressive ideas and you engage in tribal fight in other threads. I must say that I am pleasantly shocked. Until we Nigerians learn to love each other regardless of tribe we will not move forward. You see the way all Nigerians kiss and hug each other when the super eagles are playing ,that is the way we must love each. I support you 1,000% on this particular comment , to hell with political parties. Emeka I have an idea and I am going to start a thread about it. Just look out for it ,it about dealing with corrupt leaders.

@Poster, do you still believe this is the only way to develop Nigeria?

Developing Nigeria lies with God, else invoking into our lives the whole duty of man : Fear God and keep His commandments, eccl 12:13.He alone can purge out the infestations of corruption that have eaten deep the entire masses, and encroached even deeper into the posterity that would succeed the future.
The recent culture of the country is more of selfish opinions and finally,wealth acquisition on the side of persons in their various specialty. Patriotism has been ridiculed, integrity is in jeopardy, not even from the country’s pilgrim’s fathers had we found the foundations on a fertile footing.
The country lacks conscience and the ones in the hem of affairs are in confusion, too many problems; which will go first?
The only place to experience peace of mind is in churches as a christain, to hear your minister console you and tell to be patient in your suffering, embrace it and forget hunger…. it will never kill you but if does be rest assured you are in God’s hands.
The leading career in the country is politics….lets cut our own national cake.
Nevertheless, I’d say development will start in the sane minds of just and obedient God’s elects who will take up the course of industrialization to curb unemployment and joblessness, one major causes of corruption amongst the youths.Before advancing to industrialization, steady power supply would have been experienced.I dont know how it’d be but since so many countries enjoys that,it is then possible in Nigeria. Nigerian leaders are controversial, they garnish problems to look so impossible, their reasons unknown!
Three things that sets the pace of development…
1. Patriotic leaders with a conscience and a motive backed up with integrity.
2. Industrialization
3. Steady Power Supply.

CONSTITUTIONAL REFORMS:
Repeal land use act and provide a more reasonable alternative.
Repeal decree 101 and set nigerian football free.
Reform revenue allocation and ensure lg chairmen get the funds direct from abj not through the governor.
Reform the constitution and remove the house of reps.
Scrap office of the vice president. Senate President to be considered as de-facto Vice President.
Make entry in constitution allowing creation and management of a sovereign wealth fund to house extra oil windfall above budgeted oil price.
Minister of State posts to be restricted to serving Federal Civil servants or current State Permanent Secretaries within the Specified Ministry.

ENERGY:
Pass Petroleum Industry Bill. (pretty vague but thats the best I can think of at the moment).

MEDIA:
privatize NTA, FRCN and create legislation preventing any state government owning more than thirty percent of any media bodies.

TECHNOLOGY:
Release the ISM frequency band from government control.
Tax Break for Startups that develop energy/telecoms software.
Government grant for companies running international internet fibre optic links for new projects.

CIVIL SERVICE:
Require federal civil servants be paid through special civil servant accounts. CBN to enforce compulsory biometric procedure for opening such accounts. No payment outside such accounts.
Require GMAT or other accepted international graduate testing standard for entry into Nigerian Civil Service.
Transform all government research institutions (except military) into private-public partnerships or fully private subsidiaries of tertiary institutions or scrap them totally.
Mandate full cashless operation in all government agencies.

NON GOVERNMENTAL ORGANISATIONS & SOCIAL WELFARE:
Stop spending government money on programs by first ladies.
All NGOs in nigeria to be registered either as volunteer movements who can never be eligible for a jot of government money or private social welfare organizations who must have a state prescribed minimum capital. (No more rent seeking charity orgs please).
State foster institutions especially in the north to take in all kids deemed to be without adequate care.

EDUCATION:
Set universities fee to raise fees moderated slightly by government but give student loans through banks at 2.5 percent interest.
Mandatory national apprenticeship scheme to replace nysc. Expand to include non graduates. Age based.
Reform UTME. Convert into computer based test and increase frequency of tests anually( 4 times a year).
Scrap NECO.
Voluntary NYSC Exemption granted to registered student entrepreneurs with at least 10 employees and/or minimum annual turnover of 2m as at time of graduation.

PRIVATE SECTOR & ECONOMY:
Reform nigerian insurance industry to allow micro insurance forms to operate or niche insurance firms.
Handover the YOUWIN program to a private consortium.
Tax breaks for cinema businesses in second tier cities.
Take nigeria cashless.
Make CAC registration in nigeria paperless and abolish many of their fees.

TRANSPORT:
Mandate all cars or buses used for inter city transport to run on natural gas and build natural gas stations nationwide or issue licenses for such.
Mandate all state capitals to implement some form of brt within the next decade.
Bring the rails back then privatize them.

SECURITY & DEFENCE:
Civil defense should be retained as a crisis response force only
Slim down nigerian army and create nigerian defense reserve who will be mobilized at intervals or during emergencies.
Massive physical fences at certain points on our border.

CRIME:
establish a nigerian sex offenders database.
Make car registration details searchable on the net.
Corruption proceeds act to enable seizing of properties if detailed tax records and evidence of legitimate money sources cannot be established.
Rebuild our prisons to enable a lower prisoner to room ratio.
Build one forensic lab in in each of the top 10 cities by population.
nigerians who have been deported once should require exit visas from immigration before they can make international visa applications our before booking any international tickets.airlines to enforce this.50 thousand dollar fines if they are caught not enforcing it.
Merge FRSC with Nigerian Police.

HEALTH:
Free detoxification care for drug addicted individuals
Free retroviral drugs
free mental healthcare to all indigent citizens especially the many mad men walking our streets.

FOREIGN AFFAIRS:
Scrap Nigerian membership of organisations that promote sectional/religious interests e.g OIC(Organisation of Islamic States).

aloyemeka7:
The first step towards developing Nigeria is through banning of all political parties, pan ethnic groups like Ohananze, odenigbo, MEND, arewa, Nze na ozo, Yoruba council of crooks, Afenifere, OPC etc. Nigerian should utilize the web and proffer solution on how to elect leaders who are interested in pursuing Nigerian dream instead of ethnic dream. Let there be no major and minor tribes but institute equality among every Nigerian citizen. Until we learn to respect and judge each other by our individual characters and not by the gender, religion, tribe or ethnic group we belong to, we are going nowhere.

Apt...Vision 2020,Today is january 1st 2020!

Features Of Developing Economy - The economy of most developing country can best be described as a mixed one where it is either capitalist west nor the socialist east although it is a mixed economy. In developing countries like Nigeria the public sector in terms of capital formation has been having a relatively larger share.