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When the country initially gained its independence from Britain in 1960, expectations were high that Nigeria would become an economic heavyweight in Africa. With abundant natural resources and a large population, it seemed the stage was set for success. However, despite earnings of more than $500 billion from oil sales during the period 1970 to 2007, the country still suffered from extreme poverty, illiteracy, and high debt. Several factors have been blamed for Nigeria’s troubles including political instability and corruption. Furthermore, in 2007, Transparency International ranked Nigeria one of the most corrupt countries in the world, and the Human Development Index ranked the country a dismal 159 out of
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One common measure of economic development is a country’s gross national income per head of population (GNI). To account for cost of living differences between countries, GNI can be adjusted by purchasing power. A purchasing power parity (PPP) adjustment allows for a more direct comparison of living standards in different countries. A drawback of both GNI and PPP data is that they provide only a static picture of development.
Broader Conceptions of Development: Amartya Sen
C) Nobel Prize winning economist Amartya Sen has argued that development should be assessed less by material output and more by the capabilities and opportunities that people enjoy. Sen’s ideas have been picked up by the United Nations and are reflected in the Human Development Index (a United Nations developed index based on life expectancy, education attainment, and whether average incomes are sufficient to meet the basic needs of life in a country). The index was developed to gauge a country’s economic development and likely future growth rate.
Political Economy and Economic Progress
D) What is the relationship between political economy and economic progress? This question has been the subject of a vigorous debate among academics and policy makers for some …show more content…
Innovation and Entrepreneurship Require Strong Property Rights
G) Strong legal protection of property rights is another requirement for a business environment conducive to innovation, entrepreneurship, and economic growth.
The Required Political System
H) In the West, it is often argued that democracy is good for economic growth. However, there are examples of totalitarian regimes that have fostered a market economy and strong property rights protection and experienced rapid economic growth. Given all the facts though, it seems likely that democratic regimes are far more conducive to long-term economic growth than a dictatorship, even one of the benevolent kind.
Economic Progress Begets Democracy
I) While it is possible to argue that democracy is not a necessary precondition for the establishment of a free market economy in which property rights are protected, it seems evident that subsequent economic growth leads to establishment of democratic regimes.
Country Focus: Emerging Property Rights in China
One common measure of economic development is a country’s gross national income per head of population (GNI). To account for cost of living differences between countries, GNI can be adjusted by purchasing power. A purchasing power parity (PPP) adjustment allows for a more direct comparison of living standards in different countries. A drawback of both GNI and PPP data is that they provide only a static picture of development.
Broader Conceptions of Development: Amartya Sen
C) Nobel Prize winning economist Amartya Sen has argued that development should be assessed less by material output and more by the capabilities and opportunities that people enjoy. Sen’s ideas have been picked up by the United Nations and are reflected in the Human Development Index (a United Nations developed index based on life expectancy, education attainment, and whether average incomes are sufficient to meet the basic needs of life in a country). The index was developed to gauge a country’s economic development and likely future growth rate.
Political Economy and Economic Progress
D) What is the relationship between political economy and economic progress? This question has been the subject of a vigorous debate among academics and policy makers for some …show more content…
Innovation and Entrepreneurship Require Strong Property Rights
G) Strong legal protection of property rights is another requirement for a business environment conducive to innovation, entrepreneurship, and economic growth.
The Required Political System
H) In the West, it is often argued that democracy is good for economic growth. However, there are examples of totalitarian regimes that have fostered a market economy and strong property rights protection and experienced rapid economic growth. Given all the facts though, it seems likely that democratic regimes are far more conducive to long-term economic growth than a dictatorship, even one of the benevolent kind.
Economic Progress Begets Democracy
I) While it is possible to argue that democracy is not a necessary precondition for the establishment of a free market economy in which property rights are protected, it seems evident that subsequent economic growth leads to establishment of democratic regimes.
Country Focus: Emerging Property Rights in China