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THE NEXUS BETWEEN GLOBAL COMPETITIVENESS AND NIGERIA'S VISION 20:2020
Ayodele Festus Odusola,
United Nations Development Programme (UNDP), Nigeria
The world, in the best of circumstances, marked by intense competition, uncertainty, and instability, is not an easy place, and developing countries were not always doing the most they could do to advance their own well-being.
- Stiglitz (2006: ix)
ABSTRACT
This paper analyses the nexus between global competitiveness and the attainment of the Vision 20:2020 agenda of the Federal Government of Nigeria. In doing this, the paper reviews the key elements of Vision 20/2020, the pillars of global competitiveness and the ranking of Nigeria on global indicators of competitiveness (GCI), size (GDP) and living standards (PCI). The goal is to assess the challenges Nigeria must overcome to achieve Vision 20:2020, given the significance of global competitiveness in determining national productivity and living standards, and the significance of economic growth and growth in exports. The assessment of the Vision's targets against the background of Nigeria's performances on global rankings indicates that realizing the Vision 20:2020 would be challenging though, not impossible. Nigeria's political elite must recognize that achieving global competitiveness is a necessary condition for attaining the goals of Vision 20:2020. They must also be willing to deploy greater political commitment, sound knowledge and good judgment, and improve governance by reducing corruption and raising the ethical standards in the management of the economy.
ASSESSING NIGERIA'S COMPETITIVENESS IN THE AFRICAN CONTEXT: A Case of the Natural Resource Curse?
John C. Anyanwu
Development Research Department, African Development Bank, Tunis, Tunisia
and
Andrew E. O. Erhijakpor
Delta State University, Asaba, Nigeria
ABSTRACT
Two key issues are addressed in this paper. First, Nigeria's competitiveness in the World Economic Forum's Global CompetitivenessIndex (GCI) and African Competitiveness Index is assessed to highlight Nigeria's competitive strengths and weaknesses. The purpose was to identify the areas Nigeria should target if the country is to achieve sustainable growth and enduring prosperity for its citizens. Second, the paper examines the hypothesis that resource rich countries like Nigeria
face a "natural resource curse". through an evaluation of Nigeria's expenditure management of the volatile oil revenue/wealth and the implications for economic growth in Nigeria. First, it was found that Nigeria's major weaknesses are in the basic
requirements for growth while it was relatively better ranked in terms of the macroeconomic policy environment and financial innovation. Second, Nigeria has not been able to successfully use its oil revenue windfall to lay the foundations for sustainable growth. Indeed though the oil revenue has positive growth effects, these are offset by the negative effects of high expenditure dependence on oil revenue and the negative effects of oil revenue volatility. Therefore, it is recommended that Nigeria should
enhance its global competitiveness by targeting its main constraints in the the basic requirements for growth, de-link government expenditure from oil revenues, follow a permanent income rule and put away some of its oil wealth/revenue for future generations by establishing a Future Fund invested abroad, like the Norwegian Fund, i.e. smoothing out expenditure into the future.
ANALYSING THE COMPETITIVENESS OF THE NIGERIAN BANKING SYSTEM WITHIN THE CONTEXT OF A GLOBAL BANKING REGIME
Robert C. Asogwa
Economic Governance Programme, UNDP, Abuja, Nigeria
ABSTRACT
ABSTRACT
The episodes of financial crises witnessed in several emerging economies over the past two decades have led the international financial community into designing a series of governance and operational issues now referred to as a 'global banking regime'. These issues, coupled with communication and globalization, have intensified competitiveness and shifted its focus from quantitative superiority to qualitative superiority. This paper examines some aspects of the indicators of qualitative and quantitative competitiveness of the Nigerian banking system within this global context. The findings suggest that the Nigerian banking system cannot yet be described as fully competitive globally, despite recent increases in banks' minimum capital requirements. Though the paper does not cover all the indicators of global competitiveness, it provides a foundation for further discussion of Nigerian banking competitiveness within the global context.
EXTERNAL CONSTRAINTS TO THE COMPETITIVENESS
OF THE NIGERIAN ECONOMY
Sheriffdeen A. Tella
Department of Economics, Olabisi Onabanjo University, Ago-Iwoye, Ogun State
ABSTRACT
This paper noted that the Nigerian economy remains uncompetitive in the face of increasing global competitiveness and globalization. It therefore sought to identify the external factors responsible for the situation. Major factors detected are imposition of some trade barriers, concentration of trade on one commodity - oil, exchange rate instability, substandard
tradeable products, restriction on capital mobility, lack of financial depth, and absence of policy on cross-border investments. The identification leads to proposal on solutions which, in the main, emphasize the role of regional integration in strengthening
competitiveness.
EXTERNAL THREATS TO THE COMPETITIVENESS OF THE NIGERIAN ECONOMY IN THE 21ST CENTURY
Uwatt Bassey Uwatt,
Monetary Policy Department,
Central Bank of Nigeria, Abuja
ABSTRACT
This paper discusses Nigeria's competitiveness within the context of Porter's (1990) national competitive advantage theory, the diamond framework and the debate on the concept of national competitiveness. Though there is little consensus on the precise definition and theory of national competitiveness, competitiveness is crucial for economic growth and development of a country. National competitiveness is determined by both domestic and external factors. The major external challenges include growing global volatilities, uncertainties and insecurities, growing economic polycentrism, high rate of technological advances,
draining of Nigeria's intellectual and human capital, inability to attract FDI, rise of Asia as the global economic power centre and so on. By most indicators of competitiveness, Nigeria is not regarded as competitive, and the path to it is tough, given the challenges. Yet, because competitiveness is rather created than inherited, Nigeria can be competitive, provided it is able to deal with both the external and the internal challenges, particularly energy and power.
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