Economics Notes for Schools – Edudelight.com
SUBJECT: ECONOMICS CLASS: SS 3
SCHEME OF WORK SECOND TERM
- ECONOMIC GROWTH AND DEVELOPMENT
- ECONOMICS DEVELOPMENT PLANNING
- INTERNATIONAL ECONOMICS ORGANISATION
- CURRENT ECONOMIC PLANS
- ECONOMIC DEVELOPMENT CHALLENGES
- ECONOMIC REFORM PROGRAMS
7 – 12. MOCK AND WAEC EXAMS
- Amplified and Simplified Economics for SSS by Femi Longe
- Essential Economics for SSS for SSS by C E Ande
- SSCE Economics Past question pack.
ECONOMIC GROWTH AND DEVELOPMENT
- Definition and distinction between economic growth and development.
- Underdevelopment and its characteristics.
- Solutions to underdevelopment.
- Strategies for economic development.
Economic Growth: A country is said to achieve economic growth when there is an increase in the volume of National output (National Income) arising from an expansion in production. When there is economic growth, it shows in the form of an increase in income level, an expansion in the labour force, an increase in the total capital stock of the country and a higher volume of trade and consumption.
While Economic development means economic growth coupled with the improvement in the living standard of the people of the country. This arises from equitable distribution of the National income. Economic development reveals all aspects of economic activities and emphasizes more on distribution of facilities between various areas.
CHARACTERISTICS OF ECONOMIC DEVELOPMENT
1. Improvement in the general welfare of the people.
2. Equitable distribution of the National income
3. Reduction in the level of unemployment.
4. Increase in real income of the citizen.
5. Increase in the total capital stock.
In a nutshell, while economic growth emphasizes the increase in the volume of National output, Economic development stresses growth coupled with improvement in the general welfare, of the people arising from equitable distribution of the National Income.
1. Describe economic development.
2. State five features of economic development.
A country is said to be underdeveloped when she lacks the human and material resources needed to improve the welfare of her citizens.
WHY COUNTRIES ARE CONSIDERED UNDER DEVELOPED OR DEVELOPING
Most West African countries and part of Asia are considered to be underdeveloped or developing due to the following features:
1. Over dependence on primary source of production e.g. Agriculture
2. High dependency on foreign countries for survival.
3. Poor living standard – poor housing, hunger.
4. Poor medical facilities.
5. Poor infrastructural base.
6. High level of illiteracy.
7. Increase in unemployment rate.
8. Inequality in the distribution of income.
9. Political and economic instability.
10. Low savings and investment arising from low per capital income.
1. Define under development.
2. Mention and describe five features of an under developed country.
CAUSES OF UNDERDEVELOPMENT
1. Low level of saving arising from low per capital income
2. As stated above, where savings is low, investment as well will be low resulting to underdevelopment.
3. Political instability which transient to frequent change in economic policies.
4. Poor planning and implementation.
5. Corruption and embezzlement of fund by public officials.
6. High rate of population growth.
7. Over-reliance on importation.
8. Poor capacity building.
9. Poor infrastructural base
10. Low level of Technology.
SOLUTION TO UNDERDEVELOPMENT
For a country to eradicate poverty and be considered developed. The following steps should be taken.
1. Capital accumulation i.e. encourage savings towards investment.
2. Capital formation – Investment should be made on social infrastructure and businesses.
3. Engage in Foreign Trade – In doing this the country must bargain for a favourable term of Trade. Industrialization is important, this will ensure that the country export more than she imports.
4. Borrowing from Financial Institution both local and foreign e.g. IMF, World Bank. But effort must be geared towards enduring that loan obtained is used for capital project that will add value to the economy.
5. Capacity Building – Training of man power is very essential. This could be achieved through establishment of vocational centres, colleges, universities to enrich the technical know-how of the citizens.
6. Adoption of socialist ideology since capitalist ideology is capable of widening the gap between the rich and the poor.
STRATEGIES FOR ECONOMIC DEVELOPMENT
1. Diversification of the economy. That is to say Nigeria should develop other sectors apart from oil.
2. Provision of social infrastructure e.g. roads, railways, school, hospitals etc.
3. Ensuring political stability.
4. Export promotion
5. Manpower development
6. Capital accumulation
7. Development of market
8. Borrowing from Foreign Lenders but with favourable interest rate.
- Amplified and Simplified Economics for SSS by Femi Longe page 447-450.
- Essential Economics for SSS by C E Ande page 369 – 402.
1. Economic growth is the ____________
A. rate of increase in a country’s full employment and real output. B. rate of increase in a nations total population rate.C. increase in inflation.D. growth in birthrate.
2. An increase in the quantity of goods and services produced in a country which raises her national income is known as ____ A. economic development B. economic growth
C. domestic investment D. productivity
3. Economic development is reflected in ____ A. Scarcity of capital B.increase in the price level C. decline in agricultural production D. increase in productive capacity
4. The level of Economic development is low in Nigeria because ____ A. planning has no practical relevance B. of the pattern of consumers spending C. the country is too large D. of ineffective plan implementation
5. The stability of the Nigeria economy depends mainly on the export price of ____
A. groundnut B. cotton C. cocoa D. mineral oil
1. What is economic development? State its characteristics.
2. How is economic growth different from economic development?
- 1988 SSCE QUESTION OBJECTIVE AND THEORY
- 1989 SSCE QUESTION OBJECTIVE AND THEORY
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- 1991 SSCE QUESTION OBJECTIVE AND THOERY
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Economics Notes for Schools – Edudelight.com
ECONOMIC DEVELOPMENT PLANING
- Meaning and reasons for planning
- Types of plan.
- Problems of Planning
As discussed in Week 2 and 3 respectively that economic development is an essential feature of any country. In achieving this, there is need to influence some principal economic variables such as production, distribution, inflation, import and export in order to achieve a predetermined goal and objectives. Then Economic planning can be simply defined as a conscious governmental effort to influence some principal economic variables such as: production, distribution, inflation import and export in order to achieve a predetermined goal and objectives.
TYPES OF PLAN
The various types of economic planning are:
1. Financial economic planning.
2. Strategic planning.
3. Comprehensive economic planning.
4. Partial economic planning.
5. Controlled economic planning.
A. Financial Economic Planning – This plan deals with how National Income is distributed to various sectors of the economy.
B. Strategic Planning – This is a plan designed to address a specific objective in the economy.
C. Comprehensive economic planning – This type of plan covers all major aspects of the national economy.
D. Partial Economic Planning – This is a plan directed or targeted at specific segment of the national economy e.g. plans to boost agricultural production.
E. Controlled Economic Planning – This plan is common in a socialist economic system. This is a plan in which government formulates and executes plans for the economy. This is also known as authoritarian planning
1. What is Economic plan?
2. List and explain four types of Economic planning.
PROBLEMS OF PLANNING
1. Frequent change in government i.e. political instability.
2. Insufficient capital to execute the project itemized in the plan.
3. Misplacement of priorities – Resources are sometimes diverted to white elephant projects i.e. unproductive projects.
4. Inaccurate statistical data and information.
5. Lack of skilled personnel
6. Reliance on foreign aid.
7. Rapid population growth
8. Corruption and embezzlement.
10. Exchange rate volatility i.e. fluctuation in exchange rate.
1. Give five reasons for planning.
2. What are the problems facing planning in Nigeria.
- Amplified and Simplified Economics for SSS by Femi Longe page 454-458.
- Essential Economics for SSS by C E Ande page 403 – 405.
1. Economic development is reflected in _____A. scarcity of capital B. increase in the price level C. decline in agricultural productiveD. Increase in productive capacity
2. Development plans in Nigeria have deviated from their targets due to ____ A. Lack of power B. political instability C.High population growth rate D. brain drain in the country
3. The level of economic development is low in Nigeria because _____ A. planning has no practical relevance B. of the pattern of consumers spending C. the country is too large D. of ineffective plan implementation
4. Development of planning which takes an overall view of the economy is described as ____ A. Aggregate /comprehensive economic planning B. Disaggregated economic planning C. Sectorial economic planning D. system economic planning
5. The type of economic planning that deals with distribution of National Income to various sectors is known as _____ A. Financial planning B. sectorial planning C. strategic planning D. partial economic planning
1. What are the problems of planning in Nigeria?
2. Outline any five reasons for planning.
- 1993 SSCE QUESTION OBJECTIVE AND THEORY
- 1994 SSCE QUESTION OBJECTIVE AND THEORY
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- 1997 SSCE QUESTION OBJECTIVE AND THOERY
- ECOWAS – Origin, objectives, achievements, problems.
- IBRD – Origin, objectives, achievements, problems.
- IMF – Origin, objectives, achievements problems.
- ADB – Origin, objectives, achievements, problems.
The Economic Community of West African States was founded on May 28th 1975 in Lagos,
Nigeria. It comprised all the 16 independent nations of West African. Abuja and Lome serve as
the administrative and fund headquarter respectively. The body was formed under the leadership of General Yakubu Gowon and President Eyadena.
Anglophone – Nigeria, Ghana, The Gambia’s Sierra Leone and Liberia.
Francophone – Senegal, Guinea, Togo, Mali, Benin Republic, Burkina Faso, Cote de voire,
Mauritania and Niger Republic.
Busophone or Portuguese speaking countries – Cape verde and Guinea Bissau.
1. State the meaning of ECOWAS.
2. Highlight four members state of ECOWAS.
AIMS AND OBJECTIVES OF ECOWAS
1. ECOWAS aimed at promoting cooperation and development in al fields of economic activity e.g. transport, energy, agriculture, Telecommunication, etc. among the member states.
2. It aimed at liberalizing trade within the region.
3. ECOWAS promotes economic stability.
4. Also, ECOWAS aimed at removing trade barriers and restrictions.
5. The body aimed at integrating both the fiscal and monetary policies of West African State.
6. ECOWAS aimed at establishing common fund within the sub region.
- ECOWAS had helped to remove all custom duties that enhance free trade among member nations.
- The organization had established a common fund through which members are rescued.
- It had played a mediating role among member state e.g. Nigeria and Chad, Liberia, Sierra Leone etc.
- To promote peace in the sub region, ECOWAS had formed ECOMOG to restore peace in Liberia and Sierra Leone
- The eradication of Apartheid and neo-colonialism in South African can be traced to ECOWAS.
- ECOWAS had enhanced growth and expansion of market in the region
- ECOWAS had played a vital role in promoting unity in diversity among member nations.
1. What are the Achievement of ECOWAS?
2. Mention three Objectives of ECOWAS.
PROBLEMS OF ECOWAS
1. Some of the member nations are still tied to the apron of their colonial masters.
2. The official language differs among member nations which constitute language barriers.
3. Differences in ideology among member nations offer hampers togetherness of the community.
4. Political instability – Most member frictions had been affected with coup e.g Nigeria.
5. Fear of domination by big nations.
6. Poor funding due to member nations inability to contribute to ECOWAS fund.
7. Problem of where to locate investment by the body.
The International Monetary Fund (IMF) was established at an international conference held in
Bretton woods in 1944. It began operation in 1947 with its headquarters in the United States of
America. Presently it has 138 member countries. It was established to encourage balance of
payment equilibrium and to stabilize exchange rate among member countries.
1. Write brief history of IMF.
2. List five problems of ECOWAS.
OBJECTIVES AND FUNCTIONS OF IMF
1. IMF helps to stabilize exchange rate among member nations.
2. IMF assists members to finance balance of payment deficit.
3. IMF makes recommendations to member nations on economic policies to adopt.
4. IMF facilities settlement of debts in foreign transactions.
5. IMF promote co-operation among member countries on financial matters.
PROBLEMS OF IMF
1. Exchange rate volatility i.e. fluctuation in value of key currencies such as Dollar pounds.
2. Inability of developing nations to repay loans obtained.
3. Recommendation of policies to adopt to member nation leave some countries rich, while some poor e.g privatization, wage freezing etc.
4. High rate of interest on loan obtained by developing nations makes repayment impossible e.g. Nigeria.
5. Interference in the economic affairs of a country makes experts to see IMF as imperialist monetary fund instead of what it claimed to be.
1. Since its inception, IMF had helped nations to overcome economic problem e.g. Nigeria.
2. Relatively, IMF had helped to stabilize exchange value of currencies e.g. dollar in relation to other currencies.
3. Debt forgiveness – due to inability of most nations to repay loan, IMF had written off these loans.
4. Promotion of international trade.
1. Discuss two problems of IMF
2. What are the Achievements of IMF?
The International Bank for Reconstruction and Development (IBRD) popularly known as World
Bank was founded in 1944 exactly the same period IMF was founded at Bretton woods. IBRD was its headquarter in Washington, United States of America. The World Bank started with 45 member nations at the beginning and as at 1992, the member has risen to 178 member nations.
OBJECTIVES OF IBRD
1. IBRD grants long term loans for infrastructural development.
2. IBRD offers expert advice development problems.
3. IBRD offers training for experts.
4. It conducts feasibility studies relating to economic development.
5. World Bank helps to develop productive resources of member nations.
ACHIEVEMENTS OF IBRD
1. IBRD had helped developed as well as developing nations in area of infrastructural development.
2. Educational development – Through world bank assisted programme education to developing nation had been solved.
3. Long term loan for developing nation for socio-economic development had been made feasible with the assistance of World Bank
PROBLEMS OF IBRD
1. Lack of capital.
2. Inability of nations to repay loan.
3. Financing of white elephant projects i.e. unproductive project.
4. Most of the Loans are directed towards the developed nations at the expense of the less developed ones.
1. State five objectives of World Bank.
2. Outline any four problems of IBRD
African Development Bank (ADB) came into being in 1964 with its headquarter in Abidjan, Cote
d’ivoire. It is a bank owned by African countries. It started full operation in 1966 with initial
membership of 23 African Countries and as at 1970, membership had risen to 31.
FUNCTION / OBJECTIVES OF ADB
1. To provide loan to aid social and economic development of member nation.
2. It provides fund for the agricultural development of member nations.
3. ADB provides fund for infrastructural facilities such as : electricity, water, transport and telecommunication.
4. ADB helps to foster economic integration.
PROBLEMS OF ADB
1. Lack of capital due to low economic activities in member nations.
2. Poor infrastructural base of most nation in African.
3. Lack of Technical expertise.
1. Outline four objectives of ADB
2. Mention four problems of ADB.
The economic commission for Africa (ECA) also known as the United Nations Economic
Commission for Africa was founded in 1958, with its headquarters in Addis Ababa, Ethiopia. It is an Organ of the United Nations Organization (UNO).
OBJECTIVES AND FUNCTIONS OF ECA
1. ECA – ensures the economic development of African continent.
2. To foster cooperation of OAU now
3. ECA helps to develop manpower for the entire African continent.
4. It helps to accelerate economic growth and integration in Africa.
5. It helps to harmonize economic policies for African continent.
6. ECA conducts research in the areas of production and technology, to aid Africa in economic development.
PROBLEMS OF ECA
1. Economic community for African lack the needed capital to execute some of its projects.
2. Differences in Economic policies of the country due to differences in ideology.
3. To accelerate the Economic development of Africans
4. To conduct research in the area of production and technology.
5. To modernize Agriculture and industry in Africa
1. What are the objectives of Economic Commission of Africa.
2. Mention two problems facing ECA.
The United Nation Conference on Trade and Development (UNCTAD) was found in 1964 with its
heaquarters in Geneva, Switzerland. It was created as an organ of the United Nations by a
resolution passed by the United Nations Organisation (UN0). The first conference was held in
Geneva, Switzerland in 1968, the second in New Delhi, India in 1968.
OBJECTIVES AND FUNCTIONS OF UNCTAD
1. UNCTAD helps in promoting trade i.e. international trade in developing countries.
2. UNCTAD assists in solving the increasing balance of payments difficulties of the developing countries.
3. It helps to accelerate economic development of underdeveloped nations.
4. To help in solving balance of payment deficit.
5. To promote trade for developing countries.
1. What are objectives of UNCTAD?
2. State two problems of UNCTAD.
EUROPEAN ECONOMIC COMMUNITY
The European Economic Community (EEC) was established by the treaty of Rome, Italy in 1957 by six European countries. These countries were France, West Germany, Italy, Belgium, the Netherlands and Luxembourg.
OBJECTIVES OF EEC
1. To adopt a common currency known today as the Euro.
2. To ensure economic and social progress.
3. To eliminate trade restriction, thereby ensuring free trade between members nations.
4. To eliminate barriers to free mobility of labour and capital between member states.
ACHIEVEMENTS OF EU
1. The EU had developed a common market involving the free circulation of goods and capital.
2. Since its origin, the EU has established a single economic market across the territory of all its members currently single currency is in use.
3. The twenty-seven member state EU had an agreed budget of E120. 7 billion for the year 2007 with 46.7% for Agriculture.
4. The EU is has diversified its energy supply.
5. The EU seventh Framework Programme (FP7) sponsors research conducted by consortia from all EU members to work toward a single European Research Area.
6. Through its support of the Bologna process the EU is supporting comparable standards and compatible degrees across Europe
PROBLEMS OF EU
1. Lack of capital
2. Heavy expenditure on energy importation the EU currently imports 82% of its oil.
3. Religion barrier – Christian in the EU are divided among followers of Roman Catholicism, as of 2009, the EU had an estimated muslim population of 13 million.
The West African Clearing House (WACH) was established in June 1975 with its headquarters in
Freetown, Sierra Leone. WACH is multi- lateral clearing house which comprises 15 – member
Central Banks of West African States of Nigeria, Republic of Benin, Cote D’ivore, Niger, Senegal,
Togo Burkina Faso, the Gambia, Ghana, Guinea, Guinea Bissau, Liberia, Mali, Mauritania and
FUNCTIONS/OBJECTIVES OF WACH
1. WACH enhances trade liberalization.
2. It promotes the use of member national currencies for intra-sub-regional transactions.
3. WACH aimed at promoting monetary co-operation in the sub-region
4. It bring about savings in the use of foreign reserves.
1. Outline five objective of EU
2. State four objectives of WACH.
- Amplified and Simplified Economics for SSS by Femi Longe page 460 – 463.
- Essential Economics for SSS by C E Ande page 406 – 412.
1. ECA was founded in _____ A. 1962 B.1965 C.1958 D.1901
2. The UNCTAD has its headquarter in _____ A.Meiran Lagos B. Accra Ghana C. Lome Togo D. Geneva Switzerland
3. One of the following is a member of EU A. GhanaB. Argentina C. Togo D. France
4. The West African Clearing House was established in ____ A. Jan 1914 B. June 1975
C. May 2005 D. May 1902
5. WACH headquarter is in _____ A. Ikeja, Nigeria B. Cairo, EgyptC. Accra, Ghana
D. Freetown, Sierra Leone.
1. Outline five objectives of European Union.
2. Mention four functions of Economic community for Africa.
- 1998 SSCE QUESTION OBJECTIVE AND THEORY
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Economics Notes for Schools – Edudelight.com
CURRENT ECONOMIC PLANS
- MEANING AND OBJECTIVE OF MILLENNIUM DEVELOPMENT GOAL
- MEANING AND OBJECTIVE OF NEEDS
- MEANING AND OBJECTIVE OF VISION 2020
The millennium development plans are eight international development goal that were officially established following the millennium summit of the United Nations in 2000.
OBJECTIVE OF MDGs
Goal 1: Eradicate extreme poverty and hunger.
Target 1: Half of the population between 1990 -2015 whose income is less than one dollar a day be reduced.
Target 2: Half of the population that suffers from hunger be reduced
GOAL 2: Achieve Universal Primary Education
Target 3: To ensure that by 2015 all children are enrolled and have completed primary education.
GOAL 3: Promote gender equality and empower women
Target 4. Eliminate gender disparity in primary and secondary education, preferably by 2005 and to all levels of education not later than 2015.
GOAL 4 Reduce child mortality rate.
Target 5. Reduce by two-thirds between 1990 and 2015 the under five mortality rate.
GOAL 5. Improve maternal health.
Target 6. Reduce by three quarter between 1990 and 2015, the maternal mortality rate.
GOAL 6.Combat HIV/AIDS, malaria and other diseases.
Target 7. Have halted by 2015 and begun to reverse the spread of HIV/AIDS.
Target 8. Have halted by 2015 and begun to reverse the incidence of malaria and other major diseases.
GOAL 7. Ensure environmental sustainability.
Target 9. Integrate the principles of sustainable development into country policies and programmes and reverse the loss of environmental resources.
Target 10. Halve by 2015 the proportional of people without sustainable access to safe drinking water.
Target 11.By 2020 to have achieved a significant improvement in the lives of at least 100 million slum dwellers.
GOAL 8. Develop a global partnership for development.
Target 12. Deal comprehensively with the debt problems of developing countries through national and international measures in order to make debt sustainable in the long term.
Target 13. In cooperation with the private sector make available the benefits of new technologies, especially information and communication.
NATIONAL ECONOMICS EMPOWERMENT AND DEVELOPMENT STRATEGIES ( NEEDS)
NEEDS is derived from the urgent requirement for value orientation, the objective of which is to sound the message clearly that is not business as usual. Therefore the bedrock of NEEDS is its vision of a Nigeria with a new set of values and principles which will facilitate the achievements of national goals of wealth creation, employment generation and poverty reduction.
OBJECTIVES OF NEEDS
NEEDS is therefore fashioning for Nigeria, a common ground for all economic agents to interplay in a healthy and sustainable manner. The objectives are mainly in threefold;
- Poverty Reduction
- Employment Generation
- Wealth Creation.
- State five objectives of millennium development goals.
- State three objectives of NEEDS.
It is stated in the document VISION 2020Economic Transformation blueprint (2009) that by the year 2020, Nigeria would have a large, strong, diversified, sustainable and competitive economy that effectively harnesses the talents and energies of its people and responsibly exploits its natural endowments guarantee a high standards of living and quality of life to its citizens. In order to achieved this according to the same vision statement, a Gross Domestic Product of not less than &900 billion is required.
OBJECTIVES OF VISION 2020
- The social dimension: It envisions an equal society that can sustain a life expectancy of at least 70 years.
- The economic dimension: It envisages a vibrant economy whose manufacturing sector can contribute atleast 25% to Gross Domestic Product.
- The institutional dimension: Expects a state democracy.
- While the environmental dimension envisions effective management of our natural environments. It is pretty clear from the objectives that the vision 2020 is a grandiose adventure.
- Discuss vision 2020
- Mention four objectives of vision 2020.
- Essential Economics for SSS by C E Ande page 423-429.
- Amplified and Simplified for SSS by Femi Longe
- The objectives of NEEDs include all but ____ A. poverty reduction B. employment generation C. wealth creation D. scarcity.
- The life expectancy ratio stated in Vision 2020 is ____ A. 60years B. 87years C. 70years D.50years.
- The seven point agenda proposed to increase power and energy to ____ A. 60,000 MW B. 100,000 MW C. 26000 MW D. 20000MW.
- Which of the following is Millennium Goal (MDG)? A. Attracting foreign direct investment B. Eradication of extreme poverty and hunger C. Increasing capital flows through debt reduction D. To guarantee Africa’s renewal.
- The seven point agenda includes all except ____ A. land reform B. food security C. mass transportation. D. insecurity.
- Discuss the Millennium Development Goal.
- Describe the Seven Point Agenda.
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ECONOMIC DEVELOPMENT CHALLENGES
- MEANING AND EFFECT OF POVERTY
- METHODS OF PVERTY ELLEVIATION AND ERADICATION
- AGENCIES FOR POVERTY ALLEVIATION
- HIV/AIDS AND THE ECONOMY
- CORRUPTION AND ECONOMY
- POWER AND ENERGY INADEQUANCY
Poverty is often used in conjunction with material possessions that belongs to people. it is defined as a lack of a material possession belonging to a person. According to the world bank,
poverty is defined to a situation where ones income is below two dollars per day.
EFFECT OF POVERTY
Poverty can lead a person to experience the following:
- Poor health care
- Low life expectancy
- Domestic violence
- Large family size
METHODS OF POVERTY ALLEVIATION
- Applying appropriate combinations of mineral fertilizers using green manures to increase soil facilities planting fertilizer trees, returning crop residuals to the soil, using improved measures of soil erosion control and water conservation and using nitrogen fixing seeds can improve soil health which can improve farming productivities whereby providing employment opportunity so as to reduce poverty.
- Improve water, sanitation, feeder and main roads, maternity energy sources such as kerosene for cooking, rural electrification and women empowerment by allowing them to spend less time doing basic shores such as fetching fire woods and water. Improved gender equality does a whole lot of things such as increasing women’s chances to get job which will lead to more gender equalities.
- Nutritious school meals, farming improvement, clean water sanitation, hygiene education and nutrition education can all lead to improved nutrition. Improved nutrition will lead to improved health in general.
AGENCIES FOR POVERTY ALLEVIATION
- NATIONAL POVERTY ERADICTAION PROGRAMME (NAPEP): The programme started in 2001 to reduce poverty in Nigeria. It was design to replace poverty alleviation programme. NAPEP’s goals include training youths in vocational traits to support internship, to support micro credits, create employment in the automobile industry.
- DIRECTOTATE OF FOOD, ROADS AND RURAL INFRASTRUCTURAL (DFRRI),
- BETTER LIFE PROGRAMME
- NATIONAL DIRECTORATE OF EMPLOYMENT
- FAMILY SUPPORT PROGRAMME (FSP)
- POVERTY ERADICATION PROGRAMME(PEP)
- COMMUNITY BANK
HIV/AIDS AND THE NIGERIA ECONOMY
HIV/AIDS have become a major treat to the economy. The disease is more common with the youth which should form the greater percentage working population. Under this situation, the economy will suffer as it will lead to low productivity and slow down the growth and development of the nation.
CORRUPTION AND THE ECONOMY
Corruption is the usage of acquired power in a dishonest or in illegal way to acquire wealth that belong to a person, state or government. In Nigeria, corruption has eaten deep into the fabric of society. Money meant for the development is normally carried away by few individuals in power. This practice do
POWER AND ENERGY INADEQUANCY
The power and energy supply with particular reference to electricity is a big problem to the economy growth of a nation. Power supply to the economy for productivity is inadequate to ensure rapid economy development.
- Essential Economics for SSS by C E Ande page 430-445.
- Amplified Economics for SSS by Femi Longe page 504-513
- NAPEP was established in …… year A. 2000 B. 2001 C. 1960 D. 1945
- The absence of lack of food, shelter, clothes and education is A. stand B. poverty C. growth D. hunger.
- Which is not an agency for poverty alleviation? A. NEPEP B. NDE C. HIV D. PEP.
- According to United Nation, Nigeria is living below? A. 2 dollars per day B. 1 dollar per day C. 2 dollars per week D. 10 dollars per day.
- The act of inflating the amount of a particular contract is A. corruption B. employment C. development D. planning
- Define poverty
- Discuss five causes of poverty.
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ECONOMIC REFORM PROGRAMS
- Consolidation of financial institution
- Privatization and Commercialization
- EFCC and ICPC
Before June 2004, there were 89 banks in Nigeria with 3,382 branches network. The banking sector was characterized with structural and operational weaknesses such as:
1. Low capital base: Dominance of a few banks.
2. Insolvency and illiquidity
3. Over dependence on public sector deposit and foreign exchange trading.
4. Poor asset quality.
5. Weak corporate governance – A system with low depositor confidence
6. Banks that could not effectively support the real sector of the economy at 24% of GDP, compared to Africa average of 78% and 272% for developed countries.
The professor Charles Soludo led Central Bank, reduce the banks to 25 with capital base of N25 billion this led to merger and acquisition in the banking industries.
The aim of re-capitalization of banks includes:
1. To ensure strong financial base.
2. To increase deposits’ confidence in banks.
3. To enhance liquidity and solvency of the banks.
4. To increase loan to real sectors.
5. To encourage banks to practice real retail banking instead of depending on public sectors fund.
1. Outline four aim of re-capitalization of banks.
2. Discuss Charles Soludo’s effort to increase the capital base of Banks.
INDIGENIZATION; NATIONALIZATION; COMMERCIALIZATION and PRIVATIZATION POLICY
Indigenization may be defined as a process through which the government through the used of law increase the level of participation of citizens (indigenes) of a country in the ownership and management of business enterprises and the industrial sectors of the country’s economy.
The objective of the indigenization policy is to give Nigerians increased involvement in her ownership , control and management of business enterprise that were formerly dominated by foreigners in the country. The fulcrum of the policy was the Nigerian. Enterprises Promotion Decree (1972)
The NEPD (1977) grouped businesses under three categories
A. The first group consists of businesses reserved exclusively for Nigerians (i.e. 100% reserved for Nigerians) e.g. manufacturing of blocks, candles etc
B. The second group consist of businesses which can be undertaken by foreigners so long as Nigerians hold or have not less than 60 per cent participating shares eg banking, insurance, construction, mining, beer brewing
C. The third group consist of businesses which are open to foreign investments provided Nigerians hold not less than 40 per cent participating shares eg textile, tobacco and drug manufacturing hotels, synthetic resins, distilling etc.
The NEPD (1992) was revised in 1977
OBJECTIVES OF THE INDIGENIZATION POLICY
1. To promote and encourage the participation of indigenes of the country actively and effectively in the industrial sector of their economy
2. To reduce foreign control of the country’s economy
3. To promote industrialization through the use of indigenous technology
4. To reduce the country dependency on foreigners
5. Creation of employment opportunities for indigenes
6. To encourage local retention of profits made
7. To avoid neo-colonialism and imperialism
8. To improve the income and standard of living of the people
9. To ensure economic stability in the country
1. Define Indigenization.
2. State five objectives of indigenization policy.
Advantage / Importance of Indigenization
- Increase in participation of indigenes in the economy
- Reduction of foreign control of an economy
- Encouragement of local retention of profits
- Promotion of Industrialization
- Creation of employment opportunities
- Enhancement of self-reliance i.e. reduction in dependency
- Improvement in standard of living
- Economic stability is enhanced
Disadvantages of Indigenization Policy
- Discouragement of Foreign investors
- Concentration of wealth in the hands of few indigenes
- It widens the gap between the rich and the poor
- It may lead to economic instability
- It may result in retaliation by the foreign countries involved
- It may lead to political instability
PROBLEMS OF INDIGENIZATION IN NIGERIA
- Shortage of Capital: The indigenes do not have enough capital to take over the business
- Lack of technical and managerial skills
- Reduction of Foreign investments
- Widespread incidence of fronting i.e. collusion between indigenes and foreigners who uses the indigenes as cover to perpetuate their continuing ownership of the businesses
- Mismanagement of the business taken over by indigenes
1. What are the problems of indigenization in Nigeria.
2. State five disadvantages of indigenization in Nigeria.
This may be defined as the taking over by the government of privately owned businesses.
It involves the transfer of ownership of privately owned business enterprises to the government for economic, social and political reasons.
Such industries taken over by the government are known as nationalized industries and the individual owners of the affected businesses are paid compensation by the government.
Reasons why government nationalize industries
- To prevent the exploitation of the consumer
- To ensure state security and for political considerations.
- To provide employment for the citizens
- To generate revenue that will be used for development
- To ensure fair and equitable distribution of social and economic amenities
- To break private monopoly power
- To provide the large capital required to establish or run some business especially where private interests cannot raises such capital.
- Define Nationalization.
- Highlight four reasons the government nationalize some industries in the economy.
Advantages of Nationalization
- It eliminates wasteful competition
- It enables the government to provide essential goods and services to consumers at a affordable prices
- It is used by the government to protect the consumer i.e. to prevent the exploitation of consumers
- It promotes steady supply of goods and services
- It leads to the elimination of monopoly by private businessmen
- It [provides employment opportunities
- It enhances government control of the economy
Disadvantages of Nationalization
- It destroys private initiatives
- It promotes state monopoly
- Nationalized businesses become inefficient
- Corruption and embezzlement of funds is rampant among nationalized industries
- Bureaucracy and political interference in the nationalized businesses
COMMERCIALIZATION AND PRIVATIZATION
Commercialization is a process whereby state owned enterprises are restructured (re-organized) and run with the primary aim of turning them into profit making entities. The policy makes it possible for state owned enterprises to explore all avenue of making profit.
Privatization is the process whereby ownership and control of businesses, companies, industries or corporations are transferred from government (public sector) to private individual’s i.e. private sector.
Advantages of commercialization and privatization or the objectives of the government’s privatization policy
- It promotes efficiency in the business that are commercialized or privatized
- Government generates a lot of revenue during the implementation of the policies
- It leads to competition and innovation as well as improvement in the quality of goods and services
- There is a great reduction in the level of public expenditure one enterprises that are not viable
- It deepens or widens the capital market
- It gives the consumers an increase range of choice
Disadvantages of commercialization and privatization
- It leads to uneven distribution of income
- It leads to increases in prices
- It leads to mass retrenchment of workers
- Both commercialization and privatization fuel inflation
- It leads to reduction or lowering of the standard of living of the citizen
- It may result in strikes, protests and public unrest
- The privatization process may not be transparent – allowing a few rich people to take over choice government businesses
- Define the term commercialization.
- Why do government take privatize some business?
- Which of the following is an advantage of indigenization? A. Checking exploitation by citizens B. Business risks are shared C. Fosters self-reliance D. Leads to monopoly of power
- The act of bringing a privately owned business under exclusive state ownership and control is referred to as A. commercialization B. indigenization C. nationalization D. privatization
- Which of the following is not a reason for nationalizing an industry? A. monopoly B. strategy C. inflation D. security
- Abuse of monopoly power by industrialists could lead to A. privatization B. commercialization C. nationalization D. indigenization
- The transfer of ownership of a business from the government of a country to private individuals is known as A. privatization B. indigenization C. nationalization D. commercialization
1. Define the term privatization.
2. State two objectives of commercialization.
Amplified and simplified Economics for SSS by Femi Alonge Page252 – 254.
ECONOMIC AND FINANCIAL CRIME COMMISSION
The commission was established in 2003 to investigate financial crimes such as advanced free fraud and money laundering. The agency has its head office in Abuja.
ROLES OF EFCC
- Sanitization of banks
- Aggressive investigation and prosecution of cases of past evasion.
- Fighting cybercrime and advanced free fraud using smart technology.
- Initiating legislative intervention in key areas that will aid anticorruption fight.
INDEPENDENT CORRUPT PRACTICE COMMISION
As provided in section 3(3) of the act 2000, the commission consist of the chairman and twelve members. Two of whom represents each of the six geopolitical zones of the country.
ROLES OF ICPC
- To receive and investigate complaints from members of the public on allegations on corrupt practices.
- To examine the practices system and procedures of public bodies.
- To instruct, advise, and assist any officer, agency or parastatal on ways by which fraud or corruption may be eliminated.
- To advise heads of public bodies of any change in practice with the effective discharge with the duties of public bodies.
- To reduce incident of bribery.
- To educate the public on and against bribery, corruption and related offences.
NATIONAL AGENCY FOR FOOD AND DRUG ADMINISTRATION AND CONTROL (NAFDAC)
The organization is headed by chairman who preside over a governing council appointed by the president on the recommendation of the minister of health.
ROLES OF NAFDAC
- Regulation and control of importation, exportation, manufacture, advertisement, distribution, sales and use of drugs, cosmetics, medical devices, bottled water and chemicals.
- Conducts appropriate tests and ensure complaint with standard specification designated and approved by the council for effective control of quality control.
- Undertake the registration of food, drugs, medical devices etc.
- Establish and maintain relevant laboratories in strategic areas of Nigeria.
- Undertake inspection of imported foods, drugs, cosmetics etc in order to establish a relevant quality assurance system.
STANDARD ORGANIZATION OF NIGERIA (SON)
The highest decision making body of SON is the Nigeria Standard Council. The federal government, on the recommendation of the minister of industry appoint members of the council who are drawn from both public and private sectors hold office for a term of four years. The permanent secretary in the ministry of industry is the chairman.
STATUTORY FUNCTIONS OF SON
- To investigate the quality of facilities materials and products in Nigeria.
- To ensure reference standard for verification of measures and measuring instruments.
- To compile and inventory of products requiring standardization.
- To foster interest in recommendation and maintenance of acceptable standard by industry and general public.
- To undertake preparation and distribution of standard samples.
- To register and regulate standard marks and specifications.
1. State five effects of computer on Nigerian economy.
2. Outline five problems that characterize Nigerian banking sector before recapitalization.
1. Which of the following bodies carried out banks recapitalization in Nigeria.
A. Federal office of statistics B. Stock Exchange C. Central Bank D. National Assembly
2. ____ initiated banks recapitalization in Nigeria. A. Ahmed Sanusi B. Professor Charles Saludo C. Joseph SanusiD. IkpeEkong
3. The minimum capital base of banks in Nigeria is _____
A. 1 billion B. 2 billion C. 4 billion D. 25 billion
4. The electronic machine that accept data and process it and present the information is____ A. computer B. microwave C. electric cooker D. television
5. One positive effect of computer on the economy of the country is ____
A. unemployment B. cybercrime C. banking fraud D. data management
1. Outline any five positive effects of computer on the economy of the country.
2. In your opinion, has recapitalization of banks helped the economy of Nigeria
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