Transcript Slide 1

National Human Development Report
Nigeria 2008-2009
Achieving Growth with Equity
Presentation Outline
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Focus and Approach
Methodology
Overview and Key Messages
Recommendations
Focus and Approach
 Three essential points
 Danger of focusing on growth as an end in itself
 Growth alone will not help achieve Vision 20:2020 + MDGs
 The win-win choice is to opt for growth with equity
 What is growth with equity?
 Income as a means to human development not an end
 Simple but powerful idea: gains in human development
increase labour productivity, the main asset of the poor.
This, in turn, increases the output of goods and services.
Higher output means a bigger economy with more
resources to invest in human development. A virtuous
cycle, thus, takes effect.
Methodology
 Findings of studies on growth, equity and poverty
 Utilized both national and state level indicators:
 State-level index of economic activity, as a proxy measure
of GDP
 State level Human Development Index (HDI), poverty and
inequality data – first in Nigeria
 Updated economy wide Input-Output tables for economic
analysis
 Prepared by Nigerian experts plus NBS
 Guided by an advisory board composed of
government, civil society, academics and UNDP
Overview and Key Messages
Good recent macroeconomic performance:
 significant growth in recent years - per capita income
crossed the $1,000 mark in 2006
 Expansion in agriculture as main driver of overall growth
 From low bases other sectors have experienced
expansion as well – e.g. communication and banking
 But there has been no structural transformation
Overview and Key Messages
But inequality has remained high:
• One of the highest in the world (0.49)
• 65% of assets in the hands of 20% of
population
 1st Quintile – 1.43%
 2nd Quintile – 4.11%
 3rd Quintile – 12.82%
 4th Quintile – 17.04%
 5th Quintile – 64.78%
Overview and Key
Messages
HDI 2007
Poverty is still widespread:
prevalence has declined but…
•Extreme poverty has risen
•Number of poor people has
risen
•Driver of growth, agriculture,
accounts for 67% of the poor
Human development has
improved but more slowly
than peers
Nigeria
Senegal
Kenya
Sudan
Comeroun
Ghana
India
E/Guinea
Botswana
S/Africa
Egypt
Indonesia
Algeria
Tunisia
China
Brazil
Malaysia
Libya
Korea
0
0.2
0.4
0.6
0.8
1
Overview and Key Messages…
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S/No
State HDIs reflect Country HDI
States
(HDI)
Value
Human Poverty Index
S/No
States
(HDI) Value
Human Poverty Index
0.436
0.410
0.377
0.411
0.429
0.607
0.488
0.463
0.465
0.592
0.475
0.478
0.392
0.633
0.475
0.351
0.278
0.434
0.717
43.0
1
Abia
0.516
21.9
19
Kano
2
Adamawa
0.372
42.4
20
Katsina
3
Akwa Ibom
0.616
27.1
21
Kebbi
4
Anambra
0.427
22.8
5
Bauchi
0.291
48.8
6
Bayelsa
0.593
32.5
7
Benue
0.532
36.0
8
Borno
0.345
55.9
9
Cross River
0.539
31.9
0.592
23.6
22
Kogi
23
kwara
24
Lagos
25
Nasarawa
26
Niger
27
Ogun
28
Ondo
29
Osun
10
Delta
11
Ebonyi
0.401
34.3
30
Oyo
12
Edo
0.465
21.7
31
Plateau
13
Ekiti
0.523
22.1
32
Rivers
14
Enugu
0.502
28.6
33
Sokoto
15
Gombe
0.353
45.0
34
Taraba
16
Imo
0.510
22.7
35
Yobe
17
Jigawa
0.362
48.4
36
Zamfara
0.448
34.3
37
FCT, Abuja
18
Kaduna
49.9
50.2
34.4
33.3
14.5
38.5
42.8
24.5
23.9
22.1
21.9
36.5
22.8
40.5
43.4
58.0
42.6
21.0
Overview and Key Messages
 Disconnect between growth, poverty reduction and
human development
 Why? The NHDR argues that…
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High inequality limits opportunity for poor people to benefit
from growth
Nature and content of growth (low employment elasticity,
that is, employment not keeping pace with growth
expansion of labour force)
Structure of the economy still unchanged unlike in other
emerging economies (dominance of primary production,
weak farm-factory linkage, disconnect between finance and
real sector)
Slow progress in social indicators
Underlying institutional weakness
Recommendations
 An ambitious but common sense agenda of action
 Discipline, consistency and continuity of priorities and
policies over the long-term will be key
1. Create an environment for high levels of investment and
growth: infrastructure (rural and rural-to-urban), spending
efficiency and effectiveness, macro stability, institutional
reform and financial sector intermediation
2. Make growth pro-poor and inclusive: human capital
development (basic education, primary health care and
nutrition, safe water and sanitation), vocational education,
safety nets and investment in rural areas
3. Achieve effective multi-tier cooperation in government:
commitment and engagement by States and LGAs is key
Thank You.