Building a strong economy in Nigeria using the ideology of diplomacy to normalize situations

1. Oyewole O. Sarumi |PhD|
The Ideology of
Diplomacy Strategy
and its effects in
Building A Stronger
Economy.

2. The
Ideology of
Diplomacy
Strategy
and its
effects in
Building A
Stronger
Economy.

3. Outlines/Coverage
▪ Introduction
▪ Definitions – ideology, diplomacy, strategy and Ideology of Diplomacy Strategy
▪ The Economic Systems
▪ Periscoping the Nigeria Economy
▪ General Challenges in Economies of Nations
▪ The Challenges Facing Nigeria Economy
▪ What Makes A Country’s Economy Strong
▪ Growing the Economy: Separating the Myths from the Facts
▪ Making Nigeria Economy Stronger: Deploying the Ideology of Diplomacy Strategy
▪ Conclusion

4. Introduction
▪ It is a sad commentary on political developments in Nigeria that
after fifty years of independence, we have not produced enough
evidence that Bernard Shaw could be wrong after all, when he
noted long ago that “we learn from history that we learn nothing
from history”.
▪ How Nigeria can be in this pitiful economic state leaves one to
wonder ‘what the heck’ when nations like Malaysia, Indonesia etc.
that got independence within five year range have been turned into
economic wonders among nations!

5. What Determines a Healthy Economy?
▪ A human body, be it alive, unhealthy or dead, has the same volume
of blood. The difference lies in circulation. We are healthy when our
circulation is maximized, and our body begins to fail when our
circulation is inhibited.
▪ The same is true for economies. All entities — individuals,
companies or countries — are healthy to the extent that they have
circulation. For a country, money is the equivalent to the body’s
blood. And if the money is not flowing properly, the nation’s
economy suffers.

6. ▪ Whatever hinders the flow of money in circulation is ‘blood clot’.
Sometime, the federal government is equivalent to a blood clot
within the economy. It stops the flow of money by removing it from
the system and distributing it to largely ineffective government
programs, causing the system to work harder in order to
compensate.
▪ The extent to which we have increasing government intervention
correlates to the amount of money being pulled out of the country’s
bloodstream. One such example is income tax.

7. Definitions - Ideology
▪ A system of ideas and ideals, especially one
which forms the basis of economic or political
theory and policy.
OR:
▪ A collection of beliefs held by an individual,
group or society. It can be described as a set of
conscious and unconscious ideas which make
up one's beliefs, goals, expectations, and
motivations.

8. Definition - Diplomacy
▪ An instrument by which a
state (or, by extension, an
organization or individual)
attempts to achieve its
aims, in relation to those of
others, through dialogue
and negotiation.**
**http://www.businessdictionary.com/definition/diplomacy.html

9. Definition - Strategy
▪ “The direction and scope of an organisation over
the long term: ideally, which matches its resources
to its changing environment, and in particular its
markets, customers or clients so as to meet
stakeholder expectations.” - Johnson & Scholes
'Exploring Corporate Strategy: Text and Cases'
▪ ‘Strategy is a long-term plan of action designed to
achieve a particular objective or goal.
▪ Strategies are used to make future challenges
easier to deal with.’

10. Definition - ‘Ideology of Diplomacy Strategy’
▪ From the foregoing, we can define the ‘ideology
of diplomacy strategy’ in the context of this
lecture as follows:
▪ “A system, body or instruments of beliefs, ideas
and skills used to negotiate plan of action
and/or destination with organisation or people
through sharing information that will help both
parties to come to a unified agreement on
matters of interest without hostility.” [Oyewole
Sarumi 2016].

12. What is Economy?
▪ An economy consists of the
economic system of the country
or the area, the labour, capital
and land resources and the
manufacturing, production, trade,
distribution, and consumption of
goods and services of that area.

13. Understanding the Economic Systems
• The three questions that every country must answer
when developing its economic plan are:
1. What goods/services will be produced?
2. How will goods/services be produced?
3. Who will consume the goods/services?
• The way a country answers these questions determines
what kind of economic system it will have:
▪ Traditional Command Market

14. Kind of Economic System
• The way a country answers these questions
determines what kind of economic system it will
have:
Traditional Command Market
TRADITIONAL COMMAND MARKET

15. • All economic decisions are based on customs,
traditions, & beliefs of the past.
• People will make what they always made & do the
same things their parents did.
• The exchange of goods is done through bartering.
• Bartering = trading without using money
• Some examples: villages in Africa & South America,
the Inuit in Canada, Aborigines in Australia.

16. • All economic decisions are made by the Government.
• The government owns most of the property, sets the prices of goods, determines the
determines the wages of workers, plans what will be made…everything.
• This system has not been very successful. More and more countries are
are abandoning it.
• This system is very harsh to live under; because of this, there are no PURE
PURE command countries in the world today.
• Some countries are close: Cuba, former Soviet Union, North Korea, former East
former East Germany, etc.
• All of these countries have the same type of government: Communist! The
The government is in control of everything.

17. • Economic decisions are made based on the changes in prices that occur as
buyers & sellers interact in the market place.
• The government has no control over the economy; private citizens answer
all economic questions.
• In a truly free market economy, the government would not be involved at
all. Scary…
• There would be no laws to make sure goods/services were safe. *Food!
Medicine!
• There would be no laws to protect workers from unfair bosses.
• Because of this, there are no PURE market economies, but some countries
are closer than others.
• Some Examples: US, UK, Australia, etc.

18. So …… What??
• Since there are no countries that
are purely command or purely
market, what does that make
them?
• Most democratic countries have
some characteristics of both
systems, so we keep it simple
and call them: MIXED
• Of course, most countries’
economies are closer to one type
of system than another.

19. • GDP is the total value of all the
goods and services produced in
that country in one year.
• It measures how rich or poor a
country is.
• It shows if the country’s economy
is getting better or worse.
• Raising the GDP of a country can
improve the country’s standard of
living.

20. • To increase GDP, countries must invest in capital
goods:
• All of the factories, machines, technologies,
buildings, and property needed by businesses to
operate.
• If a business is to be successful, it cannot let its
equipment break down or have its buildings fall apart.
• New technology can help a business produce more
goods for a cheaper price.

21. • To increase GDP, countries must invest in human capital.
• Human capital is the knowledge and skills that make it
possible for workers to earn a living producing goods and
services.
• This includes education, training, skills, and healthcare of the
workers in a business or country.

23. • Like all countries with democracies, Nigeria has a
mixed economic system.
• However, because of a long period of military
dictatorship, Nigeria’s poorly organized economy is
struggling to move away from a command system.
• Nigeria would like to become a strong leader in the
world’s oil market, but poor organization and
corruption are obstacles that the country must
correct and overcome.

24. • Nigeria’s GDP is $455.5 billion (US
dollars).
• It is ranked 31st in the world.
• The GDP per capita (value of goods and
services produced per person) is $2,800.
• Country comparison to the world: 180
**www.Theodora.com/wbfcurrent/nigeria/

28. • What are Nigeria’s major natural resources?
• natural gas, petroleum, tin, iron ore, coal, gold,
limestone, niobium, lead, zinc, & arable land
• Nigeria has rich oil deposits.
• The country's petroleum sector is the focus of
Nigeria’s economy.
• The United States gets almost 17% of its imported
oil from Nigeria.

29. Nigerian Oil Spill, 2011

30. • What percentage of the land is arable (capable
of being farmed)?
• 38.97%
• What are the major agricultural products?
• cocoa, peanuts, cotton, palm oil, corn, rice,
sorghum, millet, cassava (manioc, tapioca),
yams, rubber, cattle, sheep, goats, pigs,
timber, fish

31. ▪ The Buhari administration made appreciable progress in the agricultural sector.
According to the NBS report, the agricultural sector share of GDP was 28.65%
(representing the largest share since the 1970s), from 22.55% in Quarter 2 of
2016 and 20.48% in Quarter 1 of 2016.
▪ The Federal Executive Council (FEC) recently approved an agriculture promotion
policy called “Green Alternative” (2016-2020).
https://www.naij.com/1055979-breaking-woes-nigeria-economy-shrinks-2-2-infographics.html

32. Currency e

33. • What’s produced in Nigeria’s factories?
• crude oil, coal, tin, columbite, rubber products,
wood, hides and skins, textiles, cement and
other construction materials, food products,
footwear, chemicals, fertilizer, printing,
ceramics, steel etc.
• Agriculture accounts for 70% of Nigeria’s
economy.

34. • Nigeria’s chief exports include:
• Petroleum and petroleum products (95%),
cocoa & rubber
• Nigeria specializes in exporting oil.
• Unfortunately, the emphasis on oil production
has left other parts of Nigeria’s economy
disorganized.
• Nigeria has to import food to feed its growing
population.

35. • What percentage of the population over the
age of 15 can read and write?
• Males – 72.1% ] 61.3% for the whole
• Females – 50.4% ] population.
• How long are students expected to stay in
school?
• Males – 10 years old
• Females – 8 years old

36. Nigerian School

37. • What percentage of people do not have
jobs?
• 23.9% of Nigeria’s workforce is unemployed.
• What percentage of people live in
poverty?
• 70% of Nigeria’s population cannot meet basic
needs.

38. ▪ 51.53 million [2011 est.]
▪ Labour force by occupation:
▪ Agriculture: 70%
▪ Industry: 10%
▪ Services:20%
▪ Unemployment rate: 23.9% [2011 est.]

39. General Challenges in
Economy of Nations

40. ▪ The strongest economies should be those with three characteristics:
▪ public policy that places the highest priority on economic growth relative to
other objectives
▪ No significant debt overhang
▪ Rising productivity among the workforce due to the diffusion of modern
technology and business practices.
▪ Of all the economic indicators, the three most significant for the
overall stock market are inflation, gross domestic product (GDP),
and labor market data.

41. ECONOMIC CHALLENGES:
▪ 1. Business Environment: Inclement and harsh
▪ 2. Foreign Investment: Declining
▪ 3. Exchange Rate: Depreciating
▪ 4. Inflationary Pressure: Building Up
▪ 5. Foreign Exchange Reserves: Depleting
▪ 6. Industries closing down or relocating Abroad
▪ 7. Electricity and Gas Shortages: Aggravating

42. ▪ 8. Relations with International Financial Institutions
Including like World Bank, ADB: Improving
▪ 9. Exports Growth: Turning Negative
▪ 10. Corruption: Continuing and Thriving
▪ 12. Unemployment: On the increase
▪ 13. Insecurity & Sabotage of pipelines: Not too
good
▪ 14. Debt owed: State Governments are owing
workers’ Salary even after bail-out by FG
▪ 15. Domestic Investment : Not expected to Pick up

43. What to expect:
▪ 1. Political manoeuvring with adverse consequences on
the economy.
▪ 2. Mobilization of people through taxation will take front
burner.
▪ 3. Expenditure is expected to rise further with budget
deficit
▪ 4. Political leadership will be struggling with the economy.
▪ 5. Energy shortage (electricity and gas) to aggravate
further.
▪ 6. Politics is likely to dominate economics.
▪ 7. Improvement to infrastructure investment decisions

44. Economic Problems
▪ Economy affected by escalating attacks on Pipelines
in the Niger Delta.
▪ Economy in recession – defined by rising
unemployment, high inflation, increase in poverty
index, reduced GDP, decline in stock market and
housing market.
▪ Increasing production costs.
▪ Diversion of funds to counter terrorism.
▪ Energy shortage.
▪ Multiple Tax system.
▪ The ineffectiveness of cost of government;
▪ Unnecessary regulatory complexity;

45. The Challenges Facing
Nigeria’s Economy

46. ▪ The state of the society is defined by the effectiveness of the
political leaders, great and well established social institutions. The
multiplier effect of these results into a developed economy and
people with superior quality of life.
▪ In such a clime, citizens empowerment become top priority in
governance as the proper fixing of infrastructures and institutions
propel the economy and create employment for the millions churn
out by the educational institutions littered across the nation.

47. ▪ Where the contrariwise is the norm, the state of such society is
characterised by the ineffectiveness of the political leaders and poor
social institutions which consequently cripple the economy and
pauperized the people.
▪ These myriad problems in the society exerts untold pressures on
the people to do all sorts in pursuance of daily living.

48. ▪ In Nigeria, the promises of resolving the nation’s socioeconomic
and political problems became the hallmark of political leaders over
the years raising people’s hope by painting glowing picture of their
development plans which they never pursue once in office.
▪ The answer to the challenges facing the Nigerian economy seem
not to be in the hands of these present crop of leaders who are self
serving, but in the hand of the people who should rise up and make
demand for political leaders voted for to perform.

50. 1. Human Development Challenges:
▪ Human resources play an immerse role in the success
or failure of any organization or nation in terms of
capability and strength of character. In Nigeria, most of
the problems facing the economy are a reflection of the
poor quality of human development and management.
▪ Why? Education, which plays a critical role in human
development and the economic health of the nation,
has been neglected for decades (Krueger and Lindhal,
2001).
▪ The lack of high quality work force to propel the
economy is owing to the inability of the nation’s
educational system to perform its basic objectives. The
system lacks adequate funding (for research and
innovative ideas, etc.), lacks good planning and
management, teaching materials and good quality
teachers at all levels, and with poor governance and
infrastructure, among others.

51. ▪ Good quality education or value education involves ‘educating for character’,
good ‘moral values’ and civic responsibility shape the character of nations. No
nation would make any meaningful socioeconomic and political stride without
viable educational institution. Our schools lack the tools to produce good quality
graduates to manage the affairs of the nation. Majority of graduates workers lack
the skills that drive human productivity.

52. ▪ The immediate gains of education benefit the children themselves: learning key
academic concepts, developing social skills, building self-confidence, and
establishing positive relationships with peers and mentors.
▪ These individual benefits accumulate over the long-term to serve as a core
foundation for strengthening our state economy. In general, states with better
educated workforces have stronger economies with higher living standards.

53. 2. Leadership challenges:
▪ Good, progressive leadership is a prerequisite for
any country to thrive and be successful. The
leadership of a country or state is a complex and
monumental task.
▪ The leadership problem that has confronted
Nigeria since independence seems to be
worsening due to the rapid deteriorating state of
the polity.
▪ The society that lacks committed political
leadership would find implementation of
developmental programmes difficult.

54. ▪ Leadership is a process of getting things done through people,” and it means
responsibility and having ‘passion for the purpose and the mission of the
organization’ or society one leads (Northouse, 2007).
▪ The present crop of leaders fail to understand that performance is the only
standard by which leaders are judged. Nigeria’s development rests with good
leadership and better governance.
▪ Good leaders are transparent and always driven with the need to produce
positive results. As Fullan (2001) notes, “Leadership, if it is to be effective, has to
have an explicit [making-a-difference] sense of purpose ... and be ultimately
assessed by the extent to which it awakens people's intrinsic commitment, which
is …mobilizing of everyone's sense of moral purpose.”

55. ▪ State or national leader in Nigeria and elsewhere for that matter should be a
combination of many virtues. He/she (subsequently designated as he) should be,
honest, knowledgeable, humble, fair-minded, compassionate, empathetic, and
always ready to learn.
▪ To be successful, once elected and installed, a leader should rise above his
electorate and partisanship and become leader for all. He should be a perpetual
student of the complexity of the human condition; he should strive for equitable
justice for all citizens, and he should be a custodian of the environment.

56. ▪ A leader should have the potential to mould the present in a way that will promote
a successful future for the country.
▪ While the development of a nation requires good leadership it also requires
appropriate division of labor because it is unrealistic to expect a leader to do
everything by himself.
▪ A county’s leader should be sensitive to the fact that we now live in a complex
world where the ability to accomplish most tasks requires the pre-acquisition of a
lot of basic knowledge, expertise and experience.

57. 3. Governance challenges:
▪ Related to leadership problem is bad governance.
Governance is defined as a system of values,
policies, and institutions by which a society manages
its economic, social, and political affairs through
interactions within the state, civil society and private
sector.
▪ Role of the masses: The masses themselves should
be aware that consciously or unconsciously they too
play a big role in making their country or state what it
is. They do so by the leaders they choose to govern
them, by the tasks they devote their time to, by how
well they perform in their differing vocations and by
how they treat one another.

58. ▪ Governance comprises the mechanisms and processes for citizens and groups:
▪ To articulate their interests,
▪ To work together and mediate their differences, and
▪ Exercise their legal rights and differences, and
▪ Exercise their legal rights and obligations with rules, institutions, and
▪ Practices that set limits and provide incentives for individuals, organizations and firms.

59. ▪ Bad governance (political, economic and social governance) - the three
dimensions of governance is among the major causes of the problems facing the
nation as it is threatening to undermine the nation’s democratization process.
▪ People are not allowed equal economic opportunity and freedom to participate in
the political process.
▪ The problem with Nigeria is that the system lacks checks and balances (or
mechanisms) to control the autocratic tendencies in government and to hold
political actors accountable for their actions.

60. ▪ Our politicians do not practice ethical politic and their actions do not add values to
the system. Lack of ethical politics and values and politics of hate and destruction
contribute to the economic and political hiccups in the society.
▪ The people should be politically active to get the government and the politicians
to listen and act right.
▪ Political pressure from the people could determine the type of policy the
government would choose for execution.

61. “One should always be mindful that
whenever fate puts one in a position of
service to society due to a unique talent
or training, failure to serve and serve
honourably is a violation of moral
responsibility”. - Prof. Dike Kalu 2016

62. 4. Corruption Challenges:
▪ Corruption is a global scourge, Nigeria appears
to suffer the most from it because the leaders
are pathologically corrupt.
▪ Nigeria nation seems to have a “ culture of
corruption”. The huge sum of money earned
from crude oil has disappeared through
political elite cooperative corruption.
▪ A bunch of our political leaders are so rich
through our commonwealth, while the nation is
gasping for life.

63. ▪ The wealth of a country is closely linked to the level of corruption. Corruption
means that individuals who work hard or have good ideas do not get the benefit
of their efforts - it all ends up going in bribes of one sort or another.
▪ So nobody tries hard to do anything but get to a place where they, too, can extort
money and the country is stuck in basic poverty.
▪ The present government is making a headway, but lack adequate support from
the people, political class and relevant institutions.

64. 5. Infrastructural challenges:
▪ One of the main challenges facing the economy
are poor social infrastructures; bad roads,
moribund rail and waterways transportation, erratic
power supply, limited access to potable water and
basic healthcare, etc.
▪ Building a vibrant economy or restoring growth to a
sluggish economy takes resources, to ensure long-
term growth and prosperity.
▪ Nigerian must use her rescores wisely, invest in
advanced technology and rebuild the
infrastructures without which the economy will not
gain from the power of productivity.

65. 6. Institutional challenges:
▪ Institutional challenge remain the bane of Nigeria’s
underdevelopment in the comity of ‘classmate’
nations. The police, education, health services,
judiciary, legislature, financial institutions, regulatory
agencies, and much more are in a state of anomie.
▪ Legal, political environment, policy framework:
Whether the legal and political environment allows
economy to flourish or not is a sine qua non for the
economy to be poor or developed.
▪ The plethora of policies in the society is ineffective
due to broken and dilapidated institutions.
▪ The regulatory agencies in the society (SON,
NAFDAC, FRC, INEC, EFCC, CBN, CAC, SEC, etc.)
are not free from political interference to operate
effectively.

66. 7. Environmental and Public Health Challenges
▪ The environmental and health standards of
Nigeria are in a bad state. The health system in
Nigeria does not adequately serve the population.
The average Nigerian life expectancy is 38.3,
according to the World Health Report, one of the
lower life expectancies in sub-Saharan Africa.
▪ The government needs to play a bigger role in
providing proper waste disposal systems and
better healthcare, particularly in neglected rural
areas. Environmentally sustainable disposal
practices, like recycling, should be adopted.

67. ▪ Those who vandalize oil pipelines should be pursued more aggressively and
punished for causing oil spills. Bush burning must be limited so that the micro-
organisms that promote crops output can thrive.
▪ Hospitals need better funding. The state must take steps to keep qualified young
doctors in the country, perhaps by giving them more important roles in public
health administration.

68. 8. Civic Pride and Patriotism Challenge
▪ Nigeria suffers from a deficit of civic pride and collective
responsibility. Wealthy Nigerians do little to use what
they have to help the masses. Instead, they transfer their
money to foreign banks rather than making it useful for
the nation. When these wealthy men want to go on
holiday, they travel to United States or Canada, and
many emigrate to the developed world rather than spend
their money here.
▪ Citizens should cherish the goods manufactured in
Nigeria, and wealthy Nigerians should invest their money
in local industry to encourage development. With this,
more jobs will be created for the masses. Economic
freedom should be encouraged in the country for better
business growth.

69. ▪ This lack of civic engagement has real economic consequences. The masses do
not purchase the goods manufactured in Nigeria because they believe they are
inferior. Instead they spend money on goods created in Europe, which doesn’t
benefit businesses or ordinary workers in Nigeria.
▪ When local industry is discouraged, the Nigerian government spends more on
imported goods. Even as an exporter of crude oil, Nigeria imports its refined oil
from other countries, and will have to sell its agricultural products and goods from
factories to abroad in quest of capital formation and pooling.

70. 9. Macroeconomic challenges:
▪ Policy inconsistency and greed are among the
causes of the haemorrhage in the economy
(Eichengreen, 2004).
▪ Every administration that comes on board
takes on a new policy initiative instead of
building on the previous ones.
▪ Nigeria has toyed with a series of ineffective
and poorly implemented policies that has
stunted economic development.

71. 10. Market challenges:
▪ Lack of genuine competition in the system is
among the challenges facing the economy. Real
capitalistic economies are controlled by market
forces or what Adam Smith brands the ‘invisible
hand’ of the market.
▪ The self-regulating nature of the market
determines where one lives and works, how
much one earns, and what one can buy.
▪ Every economy (developed, developing or
underdeveloped) needs some form of
government intervention, Nigeria’s leaders are
yet to heed the advice of Adam Smith in 1776
that the state should not unnecessarily interfere
in the economy.

72. ▪ In Nigeria, the federal government has virtual monopoly of setting the prices of
petroleum products and other goods and services.
▪ The federal government raised the prices petroleum products without considering
the distributive negative consequences on the economy always raising the stick
of subsidy to just this unleachment of hardship on people.

73. ▪ Government should provide the enabling environment for a healthy economic
competition, and allow the law of demand and supply (not personal
idiosyncrasies) to regulate prices for the well-being of the society.
▪ Market forces (and competition”) would drive ineffective organizations out of
business and open up more market to well-managed corporations.

74. 11. Marketable Surplus of Agriculture challenge
▪ Increase in agricultural production accompanied by a rise in
productivity is important from the point of view of the
development of a country. But what is more important is
that the marketable surplus of agriculture increases. The
term ‘marketable surplus’ refers to the excess of output in
the agricultural sector over and above what is required to
allow the rural population to subsist.
▪ The importance of the marketable surplus in a developing
economy emanates from the fact that the urban industrial
population subsists on it.
▪ Since Nigeria as a country has failed to produce a sufficient
marketable surplus, it is left with no choice except to import
foodgrains which has caused a huge balance of payments
problem that contributed to the present recession.

75. 12. Capital Formation Challenge
▪ The strategic role of capital in raising the level of
production has traditionally been acknowledged in
economics. It is now universally admitted that a country
which wants to accelerate the pace of growth, has no
choice but to save a high ratio-of its income, with the
objective of raising the level of investment.
▪ There is no sector with free money. Good sector is built
through dedicated production and hard work. When the
government talks about diversification, the expectation
is to jump into another sector where free money could
flow. There is no such other sector.
▪ Any sector that would bring revenue would need the
hard work of production. Is the government and the
people of Nigeria ready to engage and proceed in this
direction? Time will tell.

76. ▪ The Federal Government sets out a huge budget with massive revenue
expectation from the Customs, FIRS and Ports Authority in a recessive economy.
▪ They forgot something: there would be a decline in importation under recession.
▪ In the same vein, State Governments are projecting massive increases in tax
collection even without any projected improvement in production capacity. Haba!
▪ The role of productivity in determining living standards is important for nations as
it is for individuals. According to Mankiw (2001) the productivity of a society is
determined by many factors including physical and human capital, natural
resources, and technological skills and knowledge.

77. ▪ In economics, when production increases, tax accruing to government increases,
so government should be interested in helping to expand and increase production
by churning out favourable fiscal and economic policies that support evolution of
a productive base. It is an exercise in futility when you want more taxes even
where production is plummeting.
▪ Great reliance on foreign aid is highly risky, and thus has to be avoided.
Economists rightly assert that lack of capital is the principal obstacle to growth
and no developmental plan will succeed unless adequate supply of capital is
forthcoming. This is only made possible where the economy is supported by a
well developed productive based that supplies both local and foreign markets

78. 13. Inability to Exploit Natural Resources
Challenge:
▪ The principal factor affecting the development of an
economy is the natural resources. Among the
natural resources, the land area and the quality of
the soil, forest wealth, good river system, minerals
and oil-resources, good and bracing climate, etc.,
are included.
▪ For economic growth, the existence of natural
resources in abundance is essential. As discussed
above, Nigeria has a huge reservoir of natural
resources, but remain poorly exploited. A country
deficient in natural resources may not be in a
position to develop rapidly. In fact, natural
resources are a necessary condition for economic
growth but not a sufficient one. Japan and India are
the two contradictory examples.

79. 14. Political Parties without Ideology:
▪ The multitude of political parties devoid of
discernible modern political ideologies is a
part of the problems facing Nigeria today.
▪ The politicians thrive on ignorance. In
advanced economies and true democracies,
there are inherent ideological ‘wars among
political parties that drive democracy and
economic development.

80. ▪ In such nations people of similar ideology congregate under a party, push their
agenda and build a strong democratic government.
▪ In the process of selling their ideologies (vision, values and beliefs) to the public,
political parties help to shape the political culture of nations and promote
development.

81. ▪ In Nigeria, politicians shuttle from one party to another to achieve their selfish
purpose, and many of them would disappear into the thin air after collecting their
share of government grants.
▪ They are obstacle to political and economic development as their activities have
negative impacts on the polity.
▪ Government should stop the grants INEC gives to political parties so that political
parties that are there just to collect the grant would disappear.

82. 15. Lack of True Federalism
▪ Lack of true federalism is among the
challenges facing Nigeria. There’s too much
power at the centre, with the federal
government wielding enormous power, as it
doles out monthly allocation to states and
local governments and controls the mineral
resources in their domain.
▪ The basic tenets of federal system is flagrantly
violated which make the polity toxic.
▪ The Nigerian economy may not grow and the
society may not change positively until the
political parties and politicians learn to play by
the rule.

83. 16. Disrespect for the Rule of Law:
▪ Disrespect for the rule of law was rampant during
the Obasanjo administration. It was an era of
selective justice, with a set of laws for the rich and
well-connected and another for the poor. Although
disrespect for the rule of law has reduced, it has
not stopped completely.
▪ There are still some unresolved electoral cases
from the 2007 elections.
▪ The judiciary – the bar and bench are presently
under scrutiny due to culpability in corruption
cases.

84. 17. Insecurity Challenges:
▪ Many insecurity issues bedevilling the nation
cannot allow for any meaningful economic
development.
▪ Some of these security challenges have
been briefly highlighted below.
▪ Also, drawing copiously from existing
literature on insecurity in Nigeria, the
aetiologies of insecurity within Nigeria is
twofold:
▪ Remote and
▪ Proximate causes.

85. Areas of Nigeria’s Security Challenges
1. The Niger Delta Crisis
2. Kidnapping in the South-East/West Zones
of Nigeria
3. The failure of security agencies in the
country.
4. The judiciary arm of government
5. Indecisiveness on issues bothering on
insecurity on the part of the government
6. The Hydra-headed Unemployment
7. The issue of lop-sided development of the
country.
8. The Boko Haram Terror Machine
9. Ethno-religious conflicts
10. Porous Borders
11. Systemic and political Corruption
12. Hired Assassins
13. Armed Robbery
14. Poverty & Illiteracy
15. Unending Call for re-structuring of Nigeria.
16. INEC and lack of trust for transparency
during elections.

86. Remote Factors
▪ The remote factors include such causes as follows:
▪ Absence of Institutional Capacity Resulting in Government Failure
▪ The Gaping Chasm of Inequality and Absence of Fairness and Justice
▪ Ethno-Religious Conflicts
▪ Disconnect between the People and Government
▪ Weak and Poorly Funded Military Establishments
▪ Interagency Rivalry
▪ Non-Prosecution of Perpetrators of Violence In Nigeria
▪ Loss of Socio-Cultural and Communal Value System

87. Immediate and Proximate Factors
▪ According to Achumba et al, the proximate factors that have contributed to the
state of insecurity in the country are:
▪ Porous borders,
▪ Rural-urban drift,
▪ Social irresponsibility of companies resulting in negative externalities which provoke
social unrest within their host communities,
▪ Unemployment and
▪ Poverty and
▪ Terrorism, among others.
**All these factors combine to create the
sultry security situation in the country.

88. What Makes A Country’s
Economy Strong?

89. The 6 Goals of Economic Society
▪ The rich countries are rich
because they have higher per
capita income, higher efficiency.
▪ Efficiency is one of the six goals of
society, but not the only one.

90. 1. Security
▪ The first of the six goals is
security:
▪ Personal security,
▪ Property security and
▪ Job security.

91. 2. Efficiency
▪ The second requirement will
be efficiency.
▪ Efficiency is defined as the
average value that every
individual creates in a given
period of time.

92. 3. Equity
▪ The third factor would then be
equity (or justice, fairness),
meaning that every individual
has the same opportunities
and is subject to the same
limitation, which is law.

93. Definition for Equity is…
▪ …..the situation when the ratio
between the value that any
individual in the society creates
and the domain that he/she
controls equals to the ratio
between the value that any
other individual in the society
creates and the domain that
any other individual controls.

94. 4. Social Freedom
▪ The fourth factor will have to be social
freedom. What is social freedom? We
have to understand what freedom is in
the first place.
▪ Freedom means no limitation or
restraints. There are two kinds of
limitation. First, Natural limitation that
comes from nature.
▪ Second, this kind of limitation is man-
made, such as limitation in expression or
thoughts, mobility, choice of occupation
and the like. They are called social
limitation. Natural freedom is without the
limitation of nature, and social freedom is
without the limitation of society.

95. Natural Freedom
▪ The fifth factor is therefore
natural freedom in terms of
time and space and the
like.

96. 6. Equality
▪ The sixth factor is equality,
meaning an equal
distribution of wealth.

97. Figure 1
▪ These six social requirements
contradict one another.
▪ As shown in figure 1 here, dotted
lines indicate contradictory
relations and solid black lines
demonstrate complementary
relations. Where there is no line,
there is no direct relation.
▪ Figure 1 has seven dotted lines
and two solid black lines,
indicating nine different kinds of
relations:

98. The Social Requirements:
Possible Scenarios/Combinations
▪ Security and Efficiency
▪ Social Freedom and Equality
▪ Social Freedom and Security
▪ Efficiency and Natural Freedom
▪ Social Freedom and Efficiency
▪ Efficiency and Equity
▪ Social Freedom and Equity
▪ Equity and Security
▪ Equity and Equality NOTE: There is no perfect social system in this world

99. Why did Japan develop so fast after WWII?
▪ According to figure 1, one has to sacrifice some degree of security in return for
efficiency. Japan lacks natural resources and the sense of security, with her back to
the wall, she develops intellectual resources.
▪ According to Guinness Book of World Records (1989), Japan has the highest
average intelligence quotient in the world. Since Japan lost in the WWII, she has
been forbidden to have military expenses anywhere more than 1% of her gross
national product. She therefore has saved tremendous wealth from military spending.
Japanese scientists and engineers design and manufacture many quality industrial
products with reasonable price for civil use and export them to the world. They do not
operate like the scientists and engineers of the other countries, wasting time and life
in designing and manufacturing weapons. After the WWII, Japan adopted a
democratic system with the rule of law. Her people enjoy sufficient social freedom
with the system of law guaranteeing a fair competition as much as possible. The
combination of all these factors has created an economic miracle.

100. Others Things that Makes A Country’s
Economy Strong are……
• Capital Formation
• Desire to develop
• Social Organisation: Mass participation
in development programs is a pre-
condition for accelerating the growth
process.
• Technical know-how and general
education
• Conditions in Foreign Trade
• Marketable Surplus of Agriculture
▪ Natural Resources
▪ Geography
▪ Population
▪ Physical & Social Infrastructure
▪ Human Resources
▪ Political Freedom
▪ Good Governance
▪ Government Policies: Legal, political
environment, policy framework

101. So, What Makes Economy Grow?
▪ The economy grows when individuals and
businesses succeed in recognizing new
markets and new opportunities and accept
the risks involved in pursuing these
opportunities in the hope of earning income.
▪ Why are some countries poor?
(1) They have lower average IQ.
(2) Higher military expenditure.
(3) Dictatorial government.
(4) Centrally planned economy.
HOW DO YOU RATE NIGERIA??

102. ▪ Schramm said:
▪ “The single most important contributor to a nation’s economic
growth is the number of startups that grow to a billion dollars
in revenue within 20 years.”
▪ But what really matters is a hundred or so companies, per year, that launch, find a
market, execute, scale, learn, adjust and sail over the billion-dollar mark within
two decades.
▪ If Nigeria is serious about building a strong economy, it had better get serious
about removing the tax and regulatory barriers for these kind of startups with the
potential to scale. Also, infrastructural deficits should be quickly corrected while
the institutional framework to support this initiative is put in place.

103. Growing the Economy:
Separating the Myths
from the Facts

104. MYTH #1: Government spending grows the
economy by pumping new money into it.
▪ FACT: Every dollar that
government “injects” into the
economy must first be taxed
or borrowed from families,
businesses, or other nations.

105. MYTH #2: Government spending makes
people more productive.
▪ FACT: Government spending
often encourages behavior that
has bad economic consequences.

106. MYTH #3: The federal government should bail out
faltering industries and states to revive the economy.
▪ FACT: Bailouts harm the
economy because they reward
reckless private and state
spending, leaving it unchecked
and effectively encouraging
more of the same in the future.
▪ The Greek philosopher Aristotle once said, “If
you want to encourage something, reward it.
If you want to discourage it, punish it.” His
words ring true 2,500 years later.

107. MYTH #4: Public works projects stimulate the
economy by creating new jobs.
▪ FACT: In the short run, public
works projects have no real effect
on overall unemployment.
▪ They simply displace resources
that could be used to create jobs
in the private sector and move
those resources to the government
payroll.

108. MYTH #5: Tax cuts simply pad the pockets
of the rich without helping a weak economy.
▪ FACT: Smart tax cuts encourage
work, savings, and investment to
help stimulate economic growth
that benefits people across the
board.

109. Making Nigeria Economy
Stronger: Deploying the
Ideology of Diplomacy
Strategy

110. **This may not be too late if it can be pursued…
▪ At the recently concluded 22nd Nigerian Economic Summit in Abuja, President
Mohammed Buhari said this:
▪ “…we need to diversify the economy so that we will never again
have to rely on one commodity to survive as a country so that we
can produce the food we eat, make our own textiles work; produce
most of the things we use and create the right environment for
young people to be able to innovate and create jobs through
technology.”
**www.dailypost.ng/2016.10/10/
…BUT WE NEED TO DEPLOY SOME DIPLOMACY TOOLS TO RESOLVE
MOST OF THESE CHALLENGES BEFORE WE CAN DIVERSIFY EFFECTIVELY….

111. The Deployment of Ideology of Diplomacy
Strategy
▪ Some of the problems facing Nigeria
today require common sense solutions,
others would involve sophisticated
framework of ideas (debate, discussion
and decision making) and application of
modern technologies.
▪ Albert Einstein said that, the specific problems
we face today cannot be solved at the same
level of thinking we were when we created
them’.

112. Recap…..
▪ Diplomacy is the employment of
tact to gain strategic advantage or
to find mutually acceptable
solutions to a common challenge,
one set of tools being the phrasing
of statements in a non-
confrontational, or polite manner.

113. What Ideology of Diplomacy Strategy
Involves….
▪ The sophisticated framework of tapping ideas that will help in building a strong
economy in Nigeria involve the effective deployment of the ideology of diplomacy
strategy. [IDS]
▪ IDS would involve the following:
▪ Debate
▪ Discussion
▪ Negotiation
▪ Advocacy using CSO
▪ Town hall meetings
▪ Leaders’ conferences
▪ When done properly, it helps government in decision making that will help the
economy to blossom.

114. Who Should be involved..
▪ State Actors: Civil servants responsible for the planning and
economy, elected and appointed officials in both the executive and
legislature, diplomats learned in trade, commerce, finance and
economy.
▪ Non-state Actors: Civil Society Organisation, Trade Associations,
Chambers of Commerce and Industries, Manufacturing
Association/Groups, relevant NGOs, Corporate Bodies, Local
leaders, Professional Groups, Technocrats, Academia, concerned
agitators, etc.
The NEED for DIALOGUE to resolve
these ECONOMIC Challenges in a
pluralistic society like Nigeria is the
ONLY option to build a strong nation.

115. Why did Singapore become an economic
success?
▪ Its strategic location and natural
harbour helped.
▪ Welcomed foreign trade and
investment.
▪ The government was kept small,
efficient and honest.

116. Time to halt HARD Power usage!!!
▪ The TIME to stop using HARD DIPLOMACY through coercion and force is NOW.
We can’t find a long list of nations that used this methodology to grow their
economy.
▪ As already reported from the Guinness Book of Records, after the WWII, Japan
decided not to allocate any fund to military wares, but diverted huge money to
develop her industrial base, and today, they are among the G7 nations, and
making waves with a vibrant growing economy

117. What a 'Strong Economy' mean to the Average Citizen?
▪ Supporting education initiatives.
▪ Supporting family wage jobs and firms.
▪ Focusing on tourism to increase revenue to businesses in communities.
▪ Facilitating community input on issues such as transportation, technology, health
care, education, legislation, etc. and strategizing ways to meet the needs of the
community.
▪ Working on government policies that promote, rather than inhibit, job-creating
investments in technology.
▪ Improving public support and reducing the red tape and regulations that can delay
vital projects and new investments.
▪ Improving access to insurance for those who don’t have it, without jeopardizing the
coverage of those who do.

118. Conclusion
▪ Nigeria is today insufficiently developed because she imposed under-
development on herself. With the globalization of the economy, Nigeria
government need to wake up from this long slumber, and start building
legacy for future generations. This is achievable with vibrant productive
sectors enabled by favourable policies to create wealth where jobs are
nurtured and protected. In short, we need a production economy.
▪ Corporations like the IOCs, TNC will not protect Nigerian and create the
needed jobs that will make our nation strong economically. It is important
to remember that corporations exist only to make a profit. To move
beyond growth, businesses must seek new financial models, ownership
structures and ways to measure impact.

119. ▪ The Federal Government must provide a nurturing setting for the
development of privately owned and employee owned businesses
and new technologies that will help grow/diversify our economy.
When these businesses flourish, the economy gets stronger. Small
business incubators have an excellent record of rejuvenating local
economies.
▪ However, with dilapidated infrastructures and weak institutions,
such business will suffer atrophy. It is possible to make Nigeria
economy strong and productive if our political leaders will start to
govern as it’s done in developed nations.

120. ▪ So, for the economy to grow, and for businesses to thrive, the
institutions responsible for human capital development should be
properly funded, equipped and managed to enable them produce
advanced skilled manpower to manage the affairs of the nation.
▪ Also, the ease of doing business should be friendly and faster, while
the infrastructures and requisite institutions should be functioning at
optimal level to create an enabling environment for SMEs to thrive
and FDIs to come in.

121. ▪ The strategic role of capital in raising the level of production has
traditionally been acknowledged in economics. It is now universally
admitted that a country which wants to accelerate the pace of
growth, has no choice but to save a high ratio-of its income, with the
objective of raising the level of investment.
▪ Whatever be the economic system, a country cannot hope to
achieve economic progress unless a certain minimum rate of capital
accumulation is realized. However, any country that wishes to make
spectacular strides will have to raise its rate of capital formation still
higher. Wither Nigeria in this situation?

122. ▪ In every nation, development activity is not a mechanical process.
The pace of economic growth in any country depends to a great
extent on people’s desire to develop. If in some country level of
consciousness is low and the general mass of people has accepted
poverty as its fate, then there will be little hope for development.
▪ According to Richard T. Gill, “The point is that economic
development is not a mechanical process; it is not a simple adding-
up of assorted factors. Ultimately, it is a human enterprise. And like
all human enterprises, its outcome will depend finally on the skill,
quality and attitudes of the men who undertake”.

123. It depends on your point of view

124. References Consulted
▪ Barry Eichengreen 2004. productivity growth, the new economy and catching up. Review of international
economics, Vol.12, Issue 2; pg.243-245.
▪ Krueger, A.B, Lindhal, M. 2001. Education for Growth: Why and for Whom? Culled from
https://ideas.repec.org
▪ Peter Northouse, 20007. Leadership: Theory and Practice. 6th edition. From https://www.corwin.com
▪ Oyewole Sarumi. “Challenges Facing Nigeria Economic Development”. Culled from drwoolay.wordpress.
com/2015
▪ Anna Mar. 15 Diplomacy Strategies For Negotiations. Culled from http://training.simplicable.com/
training/new/ on Nov. 19, 2015
▪ Michael Fullan (2001). Leading in a culture of change, CA: San Francisco, Jossey-Bass
▪ Victor E. Dike. Governance and Nigeria’s Weak Institutions: Is the 2020 Project Achievable? Culled from
http://www.gamji.com/article8000/NEWS8396.htm
▪ Mike Uzochukwu. What Are The Problems Facing Nigeria Today. Culled from http://nigerianobserver
news.com/2015/05/

125. ▪ What makes an Economy Strong? Culled from http://www.quora.com/2014
▪ Economic Settings For Policy And Growth. Culled from www.strongbuilding.com.au
▪ How to build a strong economy? Architecture jobs. From www.marketplace.org
▪ Lee Kuan Yew’s Singapore: An astonishing record | The Economist. www.economist.com
▪ What are the criteria to be consider for an economy of any country to be called as strong
economy? – Quora. From www.quora.com
▪ Building a Strong Economy: The Roles of Education, Transportation, and Tax Policy –
MassBudget. From www.massbudget.org
▪ On what factors does the economy of a country depend? – Quora. From www.quora.com
▪ What -grows-an-economy Culled from http://www.forbes.com/sites/richkarlgaard/2010/10/20//2/#658e
56671b34