Beruflich Dokumente
Kultur Dokumente
CHALLENGES
Introduction
It is no exaggeration to say that this workshop and the topic of
discussion are not only timely but also critical, given the enormity
of the challenges that confront our country Nigeria at this period
in time. In 2008, the world economy was severely jolted by a
major economic meltdown which affected several sectors. It
started as an essentially American recession which was the
definite result of decades of economic mismanagement in both
public and private sectors, it quickly attained the status of a
global meltdown. Economies in all the continents and espousing
different ideologies and institutional organizations were quickly
caught in the inevitable web of multifarious networks which are
the hallmark of globalization.
Every market economy goes through a business cycle. A
dependent
capitalist
economy
like
Nigeria,
cannot
escape
it experienced periodic
Conceptual Clarification
Productivity: A measure of economic efficiency that shows how
effectively
economic
inputs
are
converted
into
Domestic
income,
employment, industrial production and wholesaleretail sales". More specifically, recession is defined as
when
businesses
cease
to
expand,
the
GDP
recession.
consumption,
GDP
includes
government
all
private
outlays,
and
public
investments
Causes of Recession
A recession is when the economy declines significantly for at least
six months. The factors responsible for any economy falling into a
recession include the following:
i.
iii.
iv.
ii.
2014.
Excessive spending on elections by the immediate past
iii.
administration.
the full implementation of the Treasury Single Account (TSA)
and the movement of trillions of naira from the economy and
iv.
v.
kept in CBN.
Drastic fall in the price of oil at the international market.
the non-payment of salaries by most states of Nigeria, and/
vi.
use the time for growth and exploration, many suffer with
depression, alcoholism, and denial.
The impact of job loss goes well beyond income and
earnings, and can impact ones mental health (see Murphy
and Athanasou (1999) for a review of 16 prior studies). It is
also important to note that how one fares in a recession
depends on a variety of factors. For example, older workers
tend
to
be
over-represented
among
the
long-term
Poverty
Simply put, poverty is not good for the economy. When
children grow up in poverty, they are more likely, later in life,
to have low earnings, commit crimes, and have poor health.
Holtzer et al. (2007) estimate the cumulative costs to the
economy of childhood poverty to be about $500 billion per
year, or about 4% of GDP. There is significant evidence that
poverty
has
educational
lasting
consequences
achievement,
cognitive
for
kids,
including
development,
and
Economic Mobility
Poorer families can lead to less opportunity and worse
economic outcomes for their children through a variety of
mechanismsbe
it
through
nutrition,
educational
ones
position
in
the
income
and
wealth
Family Life
The stress of not finding work, and a loss of income, can lead
to damaging inter-family relationships that can take years to
mend.
Sometimes
families
must
borrow
money
from
5.
6.
Education
Recessions can impact on educational achievement in a
number of ways. First, a substantial body of literature
addresses the importance of early childhood education (see,
e.g., Heckman (2006, 2007)
Many families cannot afford to send their children to school,
most especially pre-primary and primary education during a
recession. Because education at this level is primarily driven
by parental options and funding, factors that reduce families
resources will impact the level and quality of education
available to their children. For example, Dahl and Lochner
(2008) find a direct effect of family income on math and
reading test scores.
7.
10
2) Energy Sustainability
3) Governance and Institutions
4) Human Capital Development
5) Infrastructure
6) Real Sector
7) Science and Technology
8) SME
9) Financial Inclusion and Financial Markets Trade
10) Investment and Competitiveness.
2.
i.
ii.
iii.
property repossession.
Recessions can lead to a reduction in borrowing, and families
may become more fiscally responsible following an economic
12
v.
vi.
spent as a family.
Short-term solutions might include borrowing money from
friends or family, and taking a lower-paying job, or transiting
to a new line of work. Choose new career paths wisely,
based on the job market and the outlooks for great career
fields., moving to a new town for a job can open up new
career opportunities as well.
Conclusion
The global economic crisis and the implications on the Nigerian
economy were discussed. A number of possible initiatives for fast
tracking the economy and the more daunting task of preparing
Nigeria, which has the resources and management capability of
becoming a major player in the global economy should be looked
13
the
availability
of
cheap
funds,
trigger
off
14
on
the
Nigerian
economy
is
the
need
for
References
Arinze, N. & Mattew, O. (2014). Global Financial Crisis and Nigeria
Economy
Global Journal of Management and Business
Research: B Economics and Commerce Volume 14 Issue 4
Version 1.0
Dahl, G., and L. Lochner. (2008). The Impact of Family Income on
Child Achievement: Evidence from the Earned Income Tax
Credit.
National
Bureau
of
Economic
Research,
December. http://www.nber.org/papers/w14599
Ekpo, P. (2016). How Economic Recession may Affect You. An
Interview with Vanguard Newspaper. 26th September, 2016.
Heckman, J. J. (2006). Skill Formation and the Economics of
Investing in Disadvantaged Children. Science. Vol. 312, No.
5782.
Heckman, J. J. and D. V. Masterov. (2007). The Productivity
Argument for Investing in Young Children. National Bureau
of Economic Research, Working Paper No. W13016.
Cambridge, Mass.: NBER.
Murphy, G. C., and James A. A. (1999). The Effect of
Unemployment on Mental Health. Journal of Occupational
and Organizational Psychology. Vol. 72, pp. 8399.
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