Poverty alienation through increased private sector or state controlin Essay

Poverty alienation through increased private sector or state controlin Nigeria...what is the way forward - Essay Example Despite providing 95 per cent of foreign exchange earnings and about 60 per cent of government revenues, the oil sector’s contribution to GDP is less than 25 per cent. The agriculture sector is largely subsidized and has made a 26.8 per cent contribution to GDP in 2005. Industry and services contributed by 48.8 and 24.4 per cent respectively. Although, Nigeria had once been a large net exporter of food, it is now importing some of its food products. Nigeria’s economic progression has been disturbed by corruption, political instability and poor macroeconomic management for years. Following the restoration of democratic rule in 1999, Nigeria is now undergoing substantial economic reform (Anthony Maduagwu, 09/09/00). During the period 2003 to 2007, Nigeria put into effect National Economic Empowerment Development Strategy (NEEDS) which aimed towards raising the standard of living of the people by establishing macroeconomic stability through deregulation of the economic environment privatization of government ventures, economic liberalization and accountability. This initiative also addressed the basic deficiencies such as unreliable power supplies, poor infrastructure and lack of fresh water for household and irrigation. It was also aimed towards creating 7 million employments, boosting non-energy exports, increasing industrial capacity utilization, improving agricultural productivity and diversifying the economy. Similar initiative called State Economic Empowerment Development Strategy was also implemented at the state level. The UN sponsored the National Development Goals program for Nigeria, as a long-term economic development program, covering the period 2000-2015. Under this program Nigeria is committed to achieve number of set targets in the areas of poverty reduction, gender equality, health, education, environment and international development cooperation. Despite these efforts and with the presence of enormous

International Business- Foreign Direct Investment Essay

International Business- Foreign Direct Investment - Essay Example Vertical FDI involves locating different stages of production in different countries. Oil companies showcase vertical FDI through production/drilling, product refining and distribution in different countries. Lastly, conglomerate FDI where a firm acquires controlling interests in a firm operating in a different country. FDI brings the advantage of job provision, injection of cash into the economy, income to governments through taxation and infrastructural/technological development (Nehaus 42-45). However, the firms may concentrate the top and crucial management positions with expatriates while also repatriating profits to their home countries (Kapil 629). Besides, financial downturns such as the recent global economic crisis would see the firm close the foreign investments first. Nehaus (142) discusses the OLI paradigm of attracting FDI- Ownership advantages, Locational advantages and benefits of Internationalization, where locational influences can be determined by the host country. Here, big markets, removal of market entry barriers, subsidies and lower costs, good infrastructure, trade openness and economic and political stability promote FDI. At all times, the country has to be aware that it is competing with other countries to receive the