22 April 2014

African Economic Renaissance

The months of March and May, 2014 have been and would be particularly exciting for economists, policy makers and development experts in Nigeria. For in these months, three impactful international conferences, one featuring two Nobel Laureates in Economics would be held at Covenant University, while The World Economic Forum on Africa will take place in Abuja; the third, The Economist’s Nigeria Summit 2014, was held in March in Lagos.

What makes these conferences important is underwritten, not so much by the excitement they generate, but by the promise they hold for sustained economic growth in the continent.

But do they? Would they help unlock the mystery of  Africa’s perennially chronic economic under-performance in spite of its vast human and natural resources? Or is it the case that the vectors that have persistently subdued economic development in constituent nation-states are not purely economic after all?


On May 5th and 6th the First Covenant University International Conference on African Development Issues would feature Professor Thomas L. Sargent of New York University, and a 2011 Nobel Laureate in Economics, and Professor Eric Maskin of Harvard University, the 2007 Nobel laureate in Economics. What these world-class economists bring to bear on development issues are a wealth of empirical research, publications, and guidance to policy makers on economic and social variables important to growth and sustained development. Their presence in Nigeria in one conference is not only unique, but indicates the important role Nigeria plays in Africa, and the foresight of the university in organizing such historical event.

While the Nobel laureates would headline the conference, the discussants assembled to provide further practical insight and depth are nationally and internationally recognized experts in the field of economics, finance, public policy analysis, and governance of private and public resources. They include: Professor Jonathan Leape of the London School of Economics, Dr. Kalu I. Kalu, the two-time Nigerian Minister of Finance, Dr. Sarah Alade, the Acting Governor of the Central Bank of Nigeria, Dr. Okogu Bright, the Director-General of the Nigerian Budget Office, Professor John O. Ifediora of the University of Wisconsin, USA, Professor Machinko Nissanke of the University of London, Professor Ademola Oyejide, University of Ibadan, Professor Kenneth Adeyemi, Covenant University, Dr. Jonathan Aremu, ECOWAS, and Professor Olu Ajakaiye. More experts from the private sector are also featured.

The conference would be particularly relevant to policy makers at all levels of government, development experts, economists, business and corporate leaders, and academics. When asked to provide a glimpse of what can be expected in the conference, Professor John Ifediora had this to say:
“I contend that social institutions matter, and that economic development is path-dependent. The path taken so far by African states in their quest for sustained development, while different to a large extent from those embarked upon by other resources-rich countries such as Iran, Algeria, Indonesia, and Venezuela, ultimately led in many instances to the same destination: one of missed opportunities, poverty, inadequate infrastructure, marginalized educational systems, a growing pool of unskilled and displaced workers, and under development of crucial sectors. While the path chosen is deliberately purposeful, it is invariably shaped by lived experiences of policy makers, and the political and economic institutions adopted post-political independence in the 1960s.”  He continued:

“That these institutions matter stems from the fact that they are rules that guide conduct, and sanction what activities maybe engaged to advance society’s welfare in terms of governance, the use of social resources, and property rights. In almost all resource-endowed countries in Africa that failed to achieve sustained economic development, policy makers relied almost exclusively on oil or other natural resource to drive macro-economic agenda for growth; and they did so when discovery of natural resources in their territorial competence coincided with periods of nation-building, and experiments with political and economic ideologies. The growth-sustaining qualities of inclusive political and economic institutions are their liberating effects on individuals and capital. By giving the governed free choice to pursue activities compelled by self-interest, investment in human capital through education, and acquisition of skills invariably follow. Capital, free to move into areas of higher than normal returns, helps beget technologies that enable both workers and capital to become more productive.” He concludes by saying:

 “This cycle of improvements in skills and technology are the basis of sustained economic growth that is made possible by inclusivity. Nigeria’s failure to achieve broad economic prosperity is (as in many African countries) in more ways than one, attributable to low levels of education, lack of adaptable skills to modern technologies, and the inability to emulate advanced economies. That this is the case is readily traceable to restrictive social institutions that, by their very nature, do not create adequate incentive to invest in human capital development. Thus, any serious effort to engage development problems in Africa must begin by taking notice of the reality that socio-economic development in the continent may be attained, and sustained only if the processes engaged toward these ends are properly mindful of the cultural and social experiences of Africans. This means looking at things from the point of view of those whose welfare one seeks to improve; for only when the life experiences of the indigenous people are clearly understood would it be possible to work within the context of their cultural and traditional observances to establish accommodative social and economic institutions necessary for sustained development. This is not to say, however, that culture and tradition are not immutable; they are malleable, and ultimately adapt to socio-economic changes.”

Professor John O. Ifediora
Director and Editor-in-Chief, Council on African Security And Development (CASADE)

The views expressed above are solely that of the author and not of stephenladoye02.blogspot.com or its associates.

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