....South Korea, under strongman Park Chung-Hee, focused on building up large economic champions, or chaebols (business conglomerates), against American advice to focus on small- and medium-sized companies.

That policy laid the foundation for successful South Korean brands in the world market, such as Samsung and LG, although it came at a price in terms of political corruption in the close ties between business and political elites. KoFID and ReDI argue that the focus on conglomerates led to the chaebols exploiting their monopoly status, fostering increasing economic inequality.

Park took a pragmatic approach to corruption. Instead of cracking down on corrupt businessmen as urged by the US, he expropriated their bank shares and assigned them to invest in import-substitution industries, such as fertilisers, a point made in Catalysing Development, a book on aid edited by Homi Kharas, Koji Makino and Woojin Jung.

Whatever its faults, the South Korean regime did not squander the aid it received, unlike Mobutu in the DRC's previous incarnation, Zaire. As the International Monetary Fund (IMF) and the World Bank looked the other way, Mobutu looted the country, building himself palatial follies in his mother's home village in the remote bush in Gbadolite, complete with an airport that could accommodate Concorde for shopping trips the Mobutu clan would make to Paris or New York.

While the DRC stands out as a model of development to be shunned, South Korea, as well as Vietnam provide pointers on how development should be done.

life2017:
Why I don't fully agree with Bill gates on Nigeria Economic Growth Plan

I consider Bill Gates opinion as opinion base on nice to have which does not conform to the reality on ground in Nigeria.

Human capital development is a good thing. So also is Infrastructural development a good thing. While Bill gates believe human capital should be the priority, the federal govt Economic Recovery Growth Plan believes the most critical thing Nigeria needs now is radical infrastructural development with some level of human capital development alongside. I strongly believe that to grow human capital, u need good economy. The government believe through infrastructural development (good roads, rail way and power) that people will be able to use their individual ability to grow the economy at least in the short to medium term. Human capital as defined by Bill Gates is Education and Health care.

Let's look at it in Nigeria context. There is currently huge unemployment in Nigeria. There is unemployment even among those who went abroad such as UK, US etc to study before returning back to Nigeria. Which means even among few well developed human capital (Well educated youths with good health) in Nigeria, there is lack of opportunity for them to utilize all the resources that have been spent developing their human capital capacity. Even those who are making attempt to use their talents, skills (human capital capacity) to grow the economy are frustrated and made less productive because of poor infrastructure.

America govt with a population of 326 million people spend about 700billion dollars( 210 trillion Naira) a year for their K-12 education. American K 12 is Nigeria primary and secondary school. Nigeria has a population of 200million people. Which means if we are to follow America full step we should be spending 130 trillion Naira a year for only primary and secondary education. America Fed govt spent 3.2 trillion dollars (1000 trillion Naira) on health care. If we are to follow US full step we will need to spend 600trillion naira on health care every year. So by US standard Nigeria needs about 730 trillion naira annually to develop human capital.

Nigeria full annual budget is less than 9 trillion Naira with the actual expected revenue around 6trillion (The extra that made it about 9 trillion is deficit to be borrowed). That is the budget for defence, agriculture, Salaries, health, education etc. if Nigeria is to stop borrowing, stop looting, stop paying civil servant salaries and pension, stop paying army, etc we cannot even achieve 1% of what is required for Human Capital by America standard.

What does that tell us? It means the country is too poor to develop it's human capacity effectively.

What is the way forward? Nigeria like every other poor country must first develop it's economy before it can better fund human capital development. Human capital development cannot be achieved by wishful thinking. it involves huge investment . U need good economy to fund good human capital development. Yes good human capital will help to further develop the economy.

I have strong respect for Bill gates as the richest man in the world for over 22 years ( though sometimes he do come 2nd). Bill gates is rich because of the opportunities that abound in the United state. Bill gates is not an economist.

This issue or debate is like an arguments of Chicken and Egg which came first. No matter how complex the topic may be, some things are clear. You cannot grow Human Capital when the economy is very poor. You cannot grow the economy under very poor infrastructure. and a poor country cannot grow infrastructure when it focuses on consumption. For Nigeria to grow its economy, it will require a lot of sacrifice from both the leaders and the people.

What we need now, is to focus on how to create opportunities for the few well develop human capital we already have. So that they can use their skills and talent to boost the economy, which will further help to develop more sound human capital. The little human capital we have been able to develop over the years are wasting because of lack of opportunities and development. Infrastructure will help to some extent in solving the challenge.


I will also advise the govt to copy south korea as a template for development. South korea govt refused to accept america advise and they rather chosed thier own path. And today it is very successful. In the case of south korea, it is the growth of thier export businesses that lead to growth of human capital capacity. Bill gates does not understand Nigeria reality. Below is UK guardian report on how South Korea grew its economy. I think Nigeria govt should learn from it in their anti corruption fight. We need to convert all corrupt Nigerians with millions and billions to Dangote like South korea did.