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|Where Are The Economists In The House? by jadesola7: 10:13am On Jun 05, 2012|
y'all where r d Economists in the building?
Has anybody been thinkin about Nigeria's clashes as a global economic problem? have
we been thinking about them in terms of commodity scarcity, global imbalances and increased urbanization?
take a look at this brilliant, beautiful african Economist; Dambisa Moyo- Author of Dead Aid...stop giving aid
|Re: Where Are The Economists In The House? by tanimola22: 11:50am On Jun 05, 2012|
jadesola7: y'all where r d Economists in the building?
Urbanization sure has its disadvantages, but the advantages significantly exceed the disadvantage. Every nation will eventually become urbanized if it is to remain viable and economically competitive. The UN even conducted a research in which it concluded that at least half of the world's population would converge into urbanization. This is in fact a belief highly held by economists in the area of regional growth and convergence long before the UN publication.
The effect of the global economic problem on Africa as a whole and Nigeria in particular is not in doubt. This is the so called negative trickle-down effect. Indeed, almost every economy in the world is intertwined and Nigeria is visibly not an exception, forget what one CBN governor or the other may claim or force you to believe. The good news, though, is that the impact or effect varies markedly from country to country and countries more exposed to these world economic tigers are the ones that would greatly feel the impact. In a way, China has an advantage in this regard due to its diversification away from the dollar. No wonder why its economy has been growing in handsome digits. In fact, in a paper I prepared while visiting the Paris School of Economics, I prognosticated that the Chinese economy would surpass the US economy come 2035 if it continued to grow and increase at an increasing rate (some economies increase at a decreasing rate).
For commodity scarcity, I refer you to a well-written paper by R. Lopez. The abstract of the paper reads as follows 'This paper first shows that new structural changes in the world’s pattern of development have made demand for primary commodities more income elastic and their supply less price elastic. Thus the commodity price-economic growth links have become tighter than ever before. With this framework in mind we then focus on the potential effects of the financial crisis upon the environment and natural resources in the developing world. We find that the impact of the current crisis can exacerbate environmental and natural resource scarcities in the developing world, and thus may force a tightening of environmental policies over the long run in response to such degradation. This,in turn, may make the supply curve for basic commodities even steeper in the future, thus reinforcing the sensitivity of commodity prices to world economic growth and increasing potential instability in the global economy.'
On the whole, I tend to slightly tilt in favor of Dr. Moyo's submission, although I do not believe that the West would open its eyes to see its economy go down the drain.
 López, R.; 2010. World Economic Crises: Commodity Prices and Environmental Scarcity as Missing Links. University of Maryland, College Park, Economic Research Paper, pages 1-56.
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