- ECONOMIC GROWTH AND DEVELOPMENT: SECOND TERM SS3 ECONOMICS
- ECONOMIC DEVELOPMENT PLANNING: SECOND TERM SS3 ECONOMICS
- SS3 ECONOMICS SECOND TERM: INTERNATIONAL ECONOMIC ORGANIZATION
- CURRENT ECONOMIC PLANS: SECOND TERM SS3 ECONOMICS
- NIGERIA’S ECONOMIC CHALLENGES: SECOND TERM SS3 ECONOMICS
- ECONOMIC REFORMS PROGRAMME: SECOND TERM SS3 ECONOMICS
Economic Growth and Development: SECOND TERM SS3 ECONOMICS
TOPIC: Economic Growth and Development
Economic growth can be defined as an increase in the real per capital income of an economic. By increase in the real per capital income, we mean economic improvement in real terms per person in the economy. Economic development on other hand focuses the improvement of the standard of living of the citizen and their quality of life.
Differences between Economic Growth and Development
Economic growth focuses on the quantitative improvement of the economic alone. In other words, it looks at the increase in per capital income only. On the other hand, economic development is concerned with both quantitative and qualitative improvements of the economic as you can see highlighted below-
(i) Increase in per capital output (qualitative)
(ii) High level of literacy (qualitative)
(iii) High life expectancy (qualitative)
(iv) High quality of health care (qualitative)
Under Development and Its Characteristic
Underdevelopment is defined as the under utilization of either the human capital or the natural resources of an economy. An underdeveloped economy is often characterized by the followings-
(i) High rate of poverty
(ii) Low level of literacy
(iii) Low quality of health care
(iv) Low level of per-capital income
(v) Wide income of inequalities
(vi) Underutilized man power and natural resources
(vii) High level of corruption
(viii) Dependence on primary goods
(ix) Use of outdated technology
Solutions to Underdevelopment
(I) Encourage investor to invest
(II) Provisions of infrastructure
(III) Provisions of employment opportunity
(IV) Haman capital development
(V) Economic export
(VI) Provisions of business incentives
Further Explanation of Solutions
1. Encourage Investment: The government as a matter of utmost importance must encourage both local and foreign investor to invest into the economy .This will lead to job creation and reduce poverty in the country.
2. Provisions of infrastructure: infrastructure like good roads, constant electricity most be provided so as to reduce the cost of doing business in the country
3. Provision of employment opportunity: Government absorbed some of the unemployment into civil service as civil servant.
4. Human capital development: Development of the labour force very key for a country to move from an under developed economy to a developed one .Government must hence education and researcher.
5. Provision of business incentive: Business incentive like tax holidays and low interest rate on loans must be given to infant industry (new industry) for them to be able to complete with the stabilized ones.
Strategies for Economic Development
1) Import Substitution: This is when a country encourages the product of imported goods locally. By doing such, firms are spring up; supporting firms are also springing up, both employing labour and by extension reducing poverty. Example of this is the policy of encouraging local production of rice.
2) Export Promotion: this is a situation where government reduces or eliminates barrier that could hinder the export of final goods.
ASSESSMENT
- Which of the following is generally regarded as the true index of economic growth?
(a) An increase in national income at constant prices during a year
(b) A sustained increase in real per capita income
(c) An increase in national income at current prices over time
(d) An increase in national income along with a corresponding increase in population - The concept of economic growth is:
(a) Identical with the concept of economic development
(b) Narrower than the concept of economic development
(c) Wider as compared to that of economic development
(d) Unrelated to the concept of economic development - Which of the following is not an indicator of economically underdeveloped countries?
(a) Low per capita income
(b) High death-rate
(c) Low proportion of labour force in the primary sector
(d) High level of illiteracy - The rate of growth of an economy mainly depends upon:
(a) The rate of growth of the labour force
(b) The proportion of national income saved and invested
(c) The rate of technological improvements
(d) All of the above - Among the following determinants of growth, which is a non-economic factor?
(a) Natural resources
(b) Population growth
(c) Favourable legislation
(d) Capital accumulation
ANSWERS
- b
- b
- c
- d
- c
Economic Development Planning: SECOND TERM SS3 ECONOMICS
TOPIC: Economic Development Planning
Economic Development planning has to do with the policies made by the government of a country to ensure rapid economic development across all the sectors of an economy. In other words, it typically entails holistic distribution of economic resources to every sector of an economy.
Types of Economic Planning
1. Comprehensive Economic Planning: This entails economic planning for virtually all the sectors of an economy. The aim is to ensure a holistic economic development whereby no sector of the economy is left unattended to. This is in recognition of the fact that every sector contributes to the overall wellness of an economy. This is therefore [perhaps] the best economic planning approach there is.
2. Partial/Sectoral Economic Planning: This type of economic planning only takes care of a particular sector. Please bear in mind that every economy is made up of different sectors. For example, there are the agro-allied sector, the industrial sector, the financial services sector and the entertainment sector etc.
3. Authoritarian Economic Planning: This is the types of planning that takes place in socialist economies such as the former USSR.
4. Democratic Economic Planning: This [of course] is the direct opposite of the Authoritarian Economic Planning approach. It is the type of planning that takes place in a free market/capitalist economy.
5. Financial Economic Planning: This is the type of planning in which allocation of resources are done in monetary terms.
Reason for Economic Planning
1. Diversification of the Economy
2. To increase the Gross National Product
3. To create more employment
4. To ensure equitable allocation of resources
5. To achieve economic growth
6. To encourage
Problems of Economic Planning
1. Insufficient and inaccurate statistical data: In countries like Nigeria, there is often the problem of insufficient data on which economic planning can be based. Even the avaiable data are often prone to errors, thereby making any projections inaccurate. This poses itself as a serious problem.
2. Inadequate Capital: Capital is needed for the execution of any economic plan. If the available capitals are not adequate, it will be difficult to execute any plans.
3. Political Instability: Changes in government (especially in countries like Nigeria) in most often leads to change of plans even as the plan of the previous administration are jettisoned; whether or not they are good.
4. Rapid Population Growth: Every economic plan is always based on a projected/estimated population of a country. In situations whereby a country’s population grows faster than anticipated (as it so often happens in Nigeria), economic plans tend to fail.
5. Lack of Political Will: If leaders are not committed to making sure the economic plan is successful, it won’t be successful.
Nigeria Planning Experience
ASSESSMENT
- Measurement of economic development is based on:
(a) Monetary income
(b) Real income
(c) Future income
(d) Permanent income - When a country develops:
(a) Per capita income rises
(b) Specialization increase
(c) Urbanization rises
(d) All of the above - When economic development takes place:
(a) Market imperfections increase
(b) Population increases
(c) Capital stock increases
(d) (b) and (c) of the above - When economic development takes place:
(a) Exports increase
(b) Imports increase
(c) Capital stock increases
(d) All of the above - When economic development takes place:
(a) Specialization increases
(b) Commercialization decreases
(c) Market imperfections increase
(d) None of the above
ANSWERS
- b
- d
- d
- d
- a
SS3 Economics Second Term: International Economic Organization
TOPIC: International Economic Organization
ECONOMIC COMMUNITY OF WEST AFRICAN STATES (ECOWAS)
Ecowas is a sub-region organization formed by fifteen West African countries in 1975. Lagos was originally its headquarters before it was moved to Abuja. It now has sixteen members states as a result of the inclusion of Cape-Verde. Ecowas’ main aim is to promote economic co-operation among members geared towards the development of the sub-region and African continent.
Aims and Objectives of ECOWAS
1. Promotion of co-operation and development among member nations. This is the major reason behind the formation of ECOWAS; the need for co-operation and development. This development agenda was envisioned to cut across all sector of each of the member states’ economies. The end result of this is to raise the standard of living of citizen of member country.
2. Harmonization of Policies. The commission also aim at harmonizing the different sectoral policies of member states, for example harmonization of agricultural policies, harmonization of monetary policies, etc.
3. Abolition of Obstacle to free movement. Ecowas aims at encouraging free movement of citizens from one member states to another.
4. Abolition of Trade Restriction. Ecowas also aims at making sure that goods and services are not subjected to quantitative and administrative restrictions among members state.
5. Establishment of a common Tariff. Ecowas also aim at establishing a common tariff and a common commercial policy between member country
ECONOMIC COMMISSION FOR AFRICA (ECA)
The Economic Commission for Africa (ECA) was founded in 1958 as an organ of United Nations. Its aim is to continually contribute to the development of Africa. Below are all of its aims and objectives succinctly stated-
1. To Promote the social and economic development of Africa as a whole
2. To conduct economic research and provide useful conclusion that will help Africa to develop
3. To aid the acceleration of economic integration of Africa sub region
4. ECA helps in the establishment of Africa Development Bank
5. To contribute to the training of economic manpower that aid economic
development.
INTERNATIONAL MONETARY FUND (IMF)
The International Monetary Fund [IMF] was established in 1944 after a modification of the Gold Currency Standard. It’s headquarters is in Washington DC, United States of America and its aims and objectives are enumerated below-
1. To serve as a clearing house for member nations.
2. To promote international monetary co-operation and the expansion of international trade.
3. To give advice and help member nations.
4. To eliminate exchange controls
5. To contribute to the development of member nations.
International Bank for Reconstruction and Development World Bank
The IBRD, also known as World Bank is an international financial institution and an organ of United Nations, established with the main objective of providing developmental funds (in the form of loans) to underdeveloped countries of the world.
Aims and Objectives of IBRD
1. To assist the reconstruction of territories affected by the world war II
2. To provide technical assistance to member nation
3. To promote private foreign investment by supplementary private investment when private capital is not readily available on reasonable term.
4. To help raise the standard of living in underdeveloped countries.
5. Tom promote international trade and balance of payment
AFRICA DEVELOPMENT BANK
The Africa Development Bank was established in 1964 with the aim of financing developmental projects in Africa. It has it’s headquarters in Abidjan, Ivory Coast (i.e., coted’ivoire). Below are its aims and objectives clearly stated-
1. To grant loans to member states and private firms so as to accelerate economic activities that will lead to Africa development.
2. To promote development projects that will facilitate the economic development of Africa countries.
3. To provide technical assistance for developmental project and programmes embarked upon by member states.
4. Provision of fund for the supply of infrastructural facilities like electricity, water, etc.
5. To contribute to the economic integration of African countries.
ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES (OPEC)
OPEC was established in 1960 by five oil exporting countries. It now has thirteen countries as members. Its main objective is to protect the interest of its member and form an economic bloc. Read more of its aims below-
1. Stabilization of price of oil in the world market.
2. It fixes and allocate production quota member states
3. It protect its member from being exploited by multinationals oil company
4. Stabilization of oil income of member states.
5. To ensure steady supply of goods of oil to consuming nations.
UNITED NATION CONFERENCE ON TRADE AND DEVELOPMENT (UNCTAD)
UNCTAD was established in 1964 to complement the activities of the general agreement on Tariffs and Trade. It has its headquarter in Geneva, Switzerland. And here are its aims and objectives-
1. To promote international trade.
2. To help poor nation solve their balance of payment problem.
3. To aid economic development.
General Agreement on Trade and Tariffs
GATT was an agreement among multilateral countries which was aimed at regulating international trade. GATT was signed in October 1947 by twenty three countries in Geneva, Switzerland and lasted till April 1994. Here are the aims and objectives GATT hoped to actualize-
1. To regulate and expand international trade
2. Raise the standard of living of the world
3. Development and full utilization of world’s resources
4. To come up with a tariff that benefit both developing and developed nations.
ASSESSMENT
- When did the international Monetary Fund (IMF) begin its operations?
(a) 1945
(b) 1946
(c) 1947
(d) 1948 - Where are the headquarters of the IMF?
(a) Paris
(b) Geneva
(c) New York
(d) Washington, DC - Which one of the following is not a function of the IMF?
(a) The promote international monetary cooperation
(b) To promote exchange stability
(c) To promote a multilateral trading system
(d) To promote the development of backward countries - The Africa Development Bank was established in
(a) 1964
(b) 1965
(c) 1966
(d) 1969 - United Nation Conference on Trade and Development (UNCTAD) is headquartered in
(a) Paris
(b) Geneva
(c) London
(a) Abuja
ANSWERS
- b
- d
- d
- a
- b
CURRENT ECONOMIC PLANS: SECOND TERM SS3 ECONOMICS
TOPIC: CURRENT ECONOMIC PLANS
VISION 2020
Vision 2020 is an expression of long term objectives hoped to launch Nigeria unto the path of sustained social and economic development by the year 2020. Simply put, vision 2020 is a document that proposes how Nigeria can become one the top twenty most developed nations in the world by the year 2020.
What are the Objectives of Vision 2020?
1. To maintain GDP growth at an average of 13.8% this will be driven by non-oil sector like agriculture and industrial sector.
2. To increase the life span of an average citizen to 70 years.
3. To inculcate the sense of patriotism to every private individuals.
4. To manage the Nations? God-given natural resources and ensure its preservation for the benefit of present and future generation.
5. To maintain a peaceful, equitable, harmonious and just society.
National Economic Empowerments Development Strategies (NEEDS)
The idea of NEEDS was conceived in 2001 by the Obasanjo led Administration which is aimed at moving Nigeria from an under developed nation to developed Nation. NEEDS objective are as follows-
1. Target a positive Growth in the real GDP of the economy
2. Public sector reforms
3. Encouraging privatization and liberalization
4. Development of local resources
Encouraging Small and medium scale enterprises: Millennium Development Goals
These are eight international objectives that were established in the year 2000 and signed by one hundred and eighty nine [189] countries, including Nigeria. The basic aim is to encourage development by improving social and economic conditions. See more of the aims enumerated below-
1. Eradicate extreme poverty and hunger
2. Achieve universal basic education
3. Promote gender equality and empower women
4. Reduce child mortality
5. Improve internal health
6. Combat HIV/AIDS, malaria and other diseases
7. Ensure environmental sustainability
8. Develop a global partnership for development.
Objectives of MDG
Objectives of MDGs can be derived from their goals and they include-
1. Increase in the level of literacy
2. Reduction in child mortality
3. Reduction/elimination of death during birth
4. Reduction in child mortality
5. Waging war on deadly effect of HIV/AIDS, malaria etc
ASSESSMENT
- Vision 2020 is a document that proposes how Nigeria can become one of the ____ most developed nations in the world by the year 2020
(a) top top
(b) top twenty
(c) top thirty
(d) top forty - One of these is not an objective of Vision 2020
(a) to increase the life span of an average citizen to 70 years
(b) to inculcate the sense of patriotism to every private individuals
(c) to maintain a GDP growth driven by 100% dependence oil
(d) maintain a peaceful, equitable, harmonious and just society - NEEDS stands for
(a) National Economic Empowerment Development Strategies
(b) Nigerian Economic Empowerment Development Scheme
(c) Northern Economic Empowerment Development Strategies
(d) Northern Economic Empowerment Development Scheme - The idea of NEEDS was conceived in
(a) 2000
(b) 2001
(c) 2002
(b) 2003 - One of these is not an objective of the MDGS
(a) increase child mortality
(b) improve internal health
(c) combat HIV/AIDS, malaria and other diseases
(d) ensure environmental sustainability
ANSWERS
- b
- c
- a
- b
- a
NIGERIA’S ECONOMIC CHALLENGES: SECOND TERM SS3 ECONOMICS
TOPIC: NIGERIA ECONOMIC CHALLENGES
Nigeria has a lot of economic challenges, chief among which is poverty. And as you may well know, poverty is a state of extremely impoverishment and lack. In other words, people are categorised as poor when they are unable to afford basic necessity for themselves. In Nigeria, millions of people are poor; completely unable to afford basic needs of every day living such as food, housing and clothing. The situation seems to get worse every passing day and unfortunately the Government has not taken any actual [functional] steps towards addressing it.
Effects of poverty
1. Malnutrition: People living in poverty do not have access to quality/nutritious food and if they do have access to quality food, they do not the economic power to get them.
2. Poor health: when a child does not take nutritious food. It therefore means such child is prone to disease as the body does have the ability to fight off disease. When such disease is noticed, there are no financial resources to go to hospital.
3. Lack of Education: Many people living in poverty do not attend school, even when the school is free, they do not have the financial muscles to buy educational materials, school uniform etc.
4. Undeveloped Economy: without an education, it is very likely that people will not be able to get a job and when people are not working the economy suffers as they are not contributing their quota to the development of the economy.
5. Social Vices: Social vices like stealing, killing etc have a direct relationship with poverty. An increase in poverty level leads to increase in social vices. Many people living in poverty are homeless and stays on the street which may lead to social unrest taking over the society
Poverty Alleviaion Agencies
1. NAPEP: The National Poverty Eradication Programme is a 2001 program by the Nigerian government aimed at addressing poverty in Nigeria and related issues. Its objectives are as follows-
1. Training youth in vocational trade
2. Graduate internship
3. Creating employment
4. Giving micro-credit to small and medium scale enterprises.
2. NDE: The National Directorate of Employment was established in 1986 by the then Babangida military led-administration with the aim of combating mass unemployment. It focuses on-
1. Vocational skill development
2. Entrepreneurship development
3. Agricultural Development
4. Public work programmes
Method of Poverty Alleviation
Methods of poverty alleviation are the activities embarked upon by governments and NGOs with the aim of either alleviating poverty in a country or reducing it to its barest minimum. Some of these measures include-
1. Creation of employment: Giving employment to those who are willing and able to work makes it possible for them to earn income and as such be able to afford the basic necessities of life.
2. Training: Training individuals will help them acquire basic vocational skills which will ultimately make them self employed and as such be able to earn money and be able to afford basic necessities.
3. Micro credit: Giving small credit to people who have entrepreneurial skill to start a business will assist in a long way as they can use profit made to get necessities and also plough part of the profit back into the business,
4. Provision of infrastructure: Provision of social infrastructure like electricity, good road networks etc will encourage investors to come to the country to establish and by extension increase the level of employment which will reduce the level of poverty in the country.
HIV/AIDS and the Economy
HIV/AIDS is a sexually transmitted disease which can also be gotten through other means. The illness (when left undetected and managed early), can affect the physical capacity and productivity of sufferers. In this regars therefore, HIV/AIDS adversely affects the economy in the sense that resources are deployed towards catering for those with the disease. As commendable it is to take care of people who are sick, it has an opportunity cost.
Corruption and the Economy
Corruption is the act of knowingly taking what does not belong to you or putting oneself in a position an undue/illegal advantage over another person. Corruption can be in different forms but whichever form it takes, it has a negative impact on the economy. Let us take a situation where a government official steals public fund that could have been used to better the lots of citizens through road construction, power generation etc. Please note that corruption is not only financial or economical; it can also be attitudinal like selling of votes etc.
‘POWER AND ENERGY INADEQUACY’ AND THE ECONOMY
Power is critical to the development of any economy. Many companies in Nigeria have closed down their business operations as a result of erratic power supply and the huge cost of generating electricity for themselves. This has in in turn resulted in increased unemployment, which in turn led to an increased social vices. Nigeria currently generates less than 5000 MW as oppose the minimum 20000MW required to reasonably power the whole country. The [un]bundling of the power sector into three main components namely Generation, Transmission and Distribution have not helped to increase the rate of power supply and we hope things improve in the long run.
ASSESSMENT
- _____ is a state of extremely impoverishment and lack
(a) distribution
(b) corruption
(c) economy
(d) poverty - One of these is not an effect of poverty
(a) developed economy
(b) social vices
(c) poor health
(d) malnutrition - The NDE was established in
(a) 1984
(b) 1985
(c) 1986
(d) 1987 - NDE stands for
(a) National Directorate of Employment
(b) Nigerian Directorate of Employment
(c) Nigerian Directorate of Education
(d) National Directorate of Education - Nigeria needs to generate a minimum of _____ MW of electricity to reasonably power the whole country
(a) 5000MW
(b) 8000MW
(c) 15000MW
(d) 20000MW
ANSWERS
- a
- a
- c
- a
- d
ECONOMIC REFORMS PROGRAMME: SECOND TERM SS3 ECONOMICS
TOPIC: ECONOMIC REFORMS PROGRAMME
Economic Reforms are policies adopted towards achieving improvement in the economy. The policies can either be aimed at reducing the size of the government or privatizing government owned firms. It can also be about re-adjusting tax policy.
Consolidation of the Financial Institution
The Consolidation of the Financial Institution as introduced by then Central Bank of Nigeria (CBN) Governor Prof. Charles Soludo 2005 mandated every banks to have a minimum capital base of twenty five billion naira. This led to various merging and acquisition among and between various banks. This drastic [positive] measure has helped to sanitize Nigeria’s banking sector, ultimately making it more effective and efficient such that Nigerian banks can now compete with banks at international level.
Privatization and Commercialization
Privatization is a situation whereby organizations that are formerly issued by government are sold to private individuals (i.e. companies formerly owned by private individual E.g. NEPA). Commercialization can also be defined as making state owned and highly subsidized enterprises more profit-oriented. State owned enterprises are ideally not meant to be overtly profit-minded. But when they are commercialized, it means that they can finally operate as private firms and make profit.
Indigenization and Nationalization
Indigenization can be defined as reducing or eliminating foreign ownership of firms in a country. Nationalization is the direct opposite of privatization. It is a situation where an organization formerly owned by private individuals is now owned by government.
EFCC and ICPC
Economic and Financial Crime Commission is an anti graft agency saddled with the responsibility of investigating and prosecuting individuals accused of economic and financial crimes.
Independent Corrupt Practices and other related Offences Commission is a wider anti graft agency responsible for prosecuting charges alleged against individuals which are social, economical, marital in nature.
National Agency for Food and Drug Administration and Control is an agency saddled with the responsibility of ensuring that food and drugs locally produced or imported meet the acceptable standard before they are sold to final consumers. NAFDAC achieve this objective by visiting local production firms and also running a test on random samples of different locally and foreign products in its laboratory.
Standard Organization of Nigeria (SON)
SON is an agency that ensures standard in locally produced or imported goods. SON has the same responsibility as NAFDAC. The major difference is that whereas theirs is on a larger scale, NAFDAC’s jurisdiction is limited to food and drugs alone. Succinctly put, SON is a government agency saddled with the responsibility of ensuring that all goods locally produced or imported are of acceptable standards before they are sold to final consumers.
ASSESSMENT
- _____ are policies adopted towards achieving improvement in the economy
(a) economic perform
(b) economic reform
(c) economic deform
(d) economic inform - Government can achieve improvement in the economy by doing all of the following except
(a) reducing the size of the government
(b) privatizing government owned firms
(c) re-adjusting tax policy
(d) importing more goods than exported - The Consolidation of the Financial Institution as introduced by then Central Bank of Nigeria (CBN) Governor Prof. Charles Soludo was carried out in
(a) 2002
(b) 2003
(c) 2004
(d) 2005 - The situation whereby organizations that are formerly issued by government are sold to private individuals is known as
(a) privatisation
(b) consolidation
(c) indigenisation
(d) permutation - The agency that ensures standard in locally produced or imported goods is
(a) NAFDAC
(b) SON
(c) EFCC
(d) ICPC
ANSWERS
- b
- d
- d
- a
- b