MANAGEMENTOFDEVELOPMENT BAM 323 THEPROBLEMSOFNATI ONALDEVELOPMENT Def i ni t i onofDev el opment 1)Dev el opmenti sapr ocesst hatcr eat esgr owt h, pr ogr ess, posi t i v echange or t he addi t i on of phy si cal , economi c, env i r onment al , soci al and demogr aphi ccomponent s. 2)Dev el opmenti st hepr ocessbywhi chanat i oni mpr ov est heeconomi c, pol i t i cal , andsoci al wel l bei ngofi t speopl e. Def i ni t i onofNat i onal Dev el opment 1)Nat i onalDev el opmentcanbedef i nedast hepr ocessofr econst r uct i on anddev el opmenti nv ar i ousdi mensi onsofanat i onanddev el opmentof i ndi v i dual s. 2)Nat i onaldev el opmentcanbedef i nedasacompr ehensi v et er m whi ch i ncl udesi mpr ov ementi nl i v i ngst andar doft hepeopl e,i ncr easei nper capi t ali ncome,pr ov i di ngsoci alameni t i esl i keeducat i on,medi calcar e, soci al ser v i ces, et c.t ot heci t i zensoft hecount r y . 3)Nat i onaldev el opmenti st hechangei ngr owt handdev el opment ,whi ch i ncl udessoci al ,cul t ur alandeconomi cchange.I ti st heabi l i t yofacount r y t oi mpr ov et hesoci al wel f ar eoft hepeopl e. Nat ur eandDi mensi onofDev el opmentCr i si si nNi ger i a Dev el opmentcr i si si nNi ger i ai st r aceabl et ot hecol oni aler a.Dev ast at i ng col oni all egaci eswer ei nher i t edbyt heemer gi ngNi ger i anel i t es.Theseed ofdev el opmentcr i si swhi chhast odayspr eadl i kewi l df i r ei nNi ger i awas l ai ddur i ngt heper i odofcol oni al i sm,t heper i odt hatwaschar act er i zedby di f f er entcr i ses such as mar r i age ofi nconv eni ence ( Amal gamat i on of 1914) , di sar t i cul at i onoft heeconomy , t hecol oni aleconomi cst r uct ur eal so cr eat edaf er t i l egr oundf orpubl i ccor r upt i ont hr ought hei mposi t i onoft ax sy st em aswel lasexpl oi t at i v eschemeoft heEur opeant hatwashi ghl y i nst i t ut i onal i zed,andl eader shi pquest i oni nt hecount r y .Howev er ,Ni ger i a i soneoft hecount r i est hathasbeenexper i enci ngv i ol enceofv ar i ous magni t udessuchasci v i lwar ;coupsandcount ercoupsaswel laspol i t i cal i nst abi l i t yt hatchar act er i zedNi ger i anpol i t i calsy st em si ncei ndependence. Dev el opmentcr i si si nNi ger i ahasbecomear ecur r i ngphenomenonand despi t et he at mospher e ofcr i si s cr eat ed dur i ng t he col oni aler a,t he l eader shi ppr obl em hasbecomeamaj ori ssuei nt hepost col oni alNi ger i a. Thef undament alquest i oni st hi s,si nceNi ger i a' spr edi camentcannotbe at t r i but edt ocol oni al i sm al one,whatar et heot herf act or sr esponsi bl ef or t he count r y ' s dev el opment cr i si s? Ni ger i a' s pr edi cament cannot be absol ut el yat t r i but ed t o col oni al i sm al one,t he l eader shi p pr obl em and cor r upt i onoft hehi ghestor dert hathav ebecomeNi ger i anpol i t i calcul t ur e i nt hepost col oni aler awi l lcont i nuet of uelt hef i r eofdev el opmentcr i si s andev ent her ecentBokoHar am i nsur gencyt hatmar kedt henewphaseof dev el opmentcr i si si nt hecount r yi soneoft hej ust i f i cat i onf orl eader shi p f ai l ur e. ScopeofNat i onal Dev el opment . 1)Nat i onal Dev el opmentseekst or emov epov er t y . 2)I ti mpr ov est heNat i onal I ncomeaswel l asper capi t ai ncome. 3)I tdev el opsqual i t yi nEducat i on. 4)I tbr i ngsr ev ol ut i onar ychangei nt hef i el dofAgr i cul t ur e. 5)I tdev el opsTr anspor tandCommuni cat i on. 6)Dev el opmentofMedi cal f aci l i t i es. 7)Ont hecont r ar yi tcont r ol spol l ut i onandenv i r onment al hazar d. 8)UseofSci enceandTechnol ogy . 9)Pr eser v at i onanddev el opmentofnat ur eandenv i r onment . 10)Dev el opmentoft heeconomi ccondi t i onoft hepeopl el i v i ngi nt he par t i cul arcount r y . 11)Dev el opmentoft hesoci oeconomi ccondi t i onoft hepeopl e. 12)I nt r oduct i onofwel f ar eschemeofpeopl ef ort hebet t er mentoft hei rl i f e andst andar dofl i v i ng. 13)Dev el opmentofani mpar t i al andwel l or gani zedpol i t i cal sy st em. 14)I tencompassest he pr eser v at i on,enr i chmentand dev el opmentof cul t ur e. 15)Mor eov er , i tpr omot est heconceptofsust ai nabl edev el opment . Whati sCr i si s? Acr i si si sanyev entorper i odt hatwi l ll ead, ormayl ead, t oanunst abl eand danger oussi t uat i onaf f ect i ngani ndi v i dual ,gr oup,oral lofsoci et y .Cr i ses ar enegat i v echangesi nt hehumanorenv i r onment alaf f ai r s,especi al l y whent heyoccurabr upt l y ,wi t hl i t t l eornowar ni ng.Mor el oosel y ,acr i si si s at est i ngt i meoranemer gency . CausesofDev el opmentCr i si si nNi ger i a 1)Economi cCr i si s:Economi cdev el opmenti soneoft hemaj orf act or s causi ngdev el opmentcr i si si nNi ger i a.I naneconomywher et hewor ki ng popul at i onoft henat i onpr oducesgoodsandser v i cesathi gherr at ewoul d dev el opmor er api dl yt hanot her s.Buti ft her ev er sei st hecase,t her ei s boundt obeDev el opmentCr i si s. 2)Pol i t i calCr i si s:Thepol i t i calsy st em ofanat i onal sodet er mi nest her at e ofnat i onaldev el opment .I ni nt r uedemocr at i cgov er nment ,i ti seasi ert o achi ev et hedesi r edgoalbecausei ti sr epr esent edbyi t sownpeopl e. Ni ger i a dev el opment cr i si s began wi t h t he emer gence of mi l i t ar y gov er nment . 3)Soci alCr i si s:Thesoci et yandi t sst r at i f i cat i onal soi nf l uencet henat i onal dev el opment .I nor t hodoxsoci et i esi tbecomehar dt ot akeadeci si on unani mousl ywhi chwoul dbenef i tt henat i on.I nst eadcast e,cl ass,cr eed, col ouret ccr eat esbi asesanddev el opmentcr i si s. 4)Popul at i on Cr i si s:Popul at i on ofa nat i on al so i nf l uence nat i onal dev el opmentofanat i on.I ncount r i esl i keNi ger i a,Chi na,I ndi a,Bangl adesh peopl e wer e of t en depr i v ed oft he basi c needs due t oi t s massi v e popul at i onexpl osi on. 5)Soci ocul t ur alCr i si s:Thecul t ur alt r ai t sper si st edi ndi f f er entsoci et i es det er mi nest hewayofnat i onaldev el opment .Thef ai l ur eoft heNi ger i a gov er nmentbot h atf eder aland st at el ev elt o ef f ect i v el ymanage t he peopl ewi t ht hei rdi v er gentcul t ur ehasl edt osev er ali nt er nalcr i si ssuchas I f ev smodakekecr i si si nOdunSt at e,TI Vv sJukuncr i si si nTar abaSt at e, I j awv sI l aj econf l i ct , et c. 6)Moder ni zat i on Cr i si s:Moder ni zat i on ofsoci et i es hel ps f ora f ast er gr owt hi n nat i onaldev el opment .The use of ar chai c and pr i mi t i v e t echnol ogyt ogov er nt hepeopl ecausesal otofdev el opmentcr i si sf or Ni ger i a. 7)Psy chol ogi calcondi t i onCr i si s:Ment alst at usofpeopl eofanat i on, t hei r ment alheal t handhy gi eneal sogi v esdi r ect i onst onat i onaldev el opment . ManyNi ger i ansar enotment al l ybal anced.Theyar enott hi nki ngi nt her i ght di r ect i on, hence, dev el opmentcr i si s. 8)Cor r upt i onCr i si s:I n2018, t hecount r yr anked144t hi nt he180count r i es l i st edi nTr anspar encyI nt er nat i onal ' sCor r upt i onI ndex( wi t hSomal i a,at 180t h, bei ngt hemostcor r upt , andDenmar kt hel east ) . 9)I nsecur i t yCr i si s:I nsecur i t yapar tf r om bei ngt hef earofev er yNi ger i an hasbecomet hewor dont hel i psofev er yNi ger i anandadi scussi ont opi c wher et woort hr eear egat her ed.I nsecur i t yhasbeenamaj ort hr eatand dev el opmentcr i si si nNi ger i aoft oday . 10)Epi l ept i cPowerSuppl yCr i si s:Ni ger i ai ndust r i aldev el opmentov ert he y ear shasbeenbedev i l edbymy r i adsofpr obl emst opamongwhi chi st he Epi l ept i cnat ur eofel ect r i ci t ysuppl yi nt hepowersect or .Ev er ysuccessi v e gov er nmenthadpr omi sedt odosomet hi ngdr ast i ct ost abi l i zet hesect ori n ot hert odr i v egr owt hi nt hei ndust r i alsect or .Howev er ,mor et hanhundr ed y ear sofamal gamat i onofnor t her nandsout her npr ot ect or at eand54y ear s af t ert heat t ai nmentofi ndependenti nNi ger i a,t heNat i oni spl aguedwi t h chr oni cunderdev el opmenti nev er yar eaofl i v esi ncl udi ngpoor ,unr el i abl e andepi l ept i cel ect r i ci t ysuppl y . Possi bl eSol ut i onst oDev el opmentCr i si si nNi ger i a The t heor y ofdependency whi ch was ar t i cul at ed by Pr esbi sch and Bodenhei mer( 1970)opi nedt hef ol l owi ngsol ut i onst odev el opmentcr i si s i nacount r y : a)Cont r olt he monet ar y exchange r at e,pl aci ng mor e gov er nment al emphasi sonf i scal r at hert hanmonet ar ypol i cy . b)Pr omot e a mor e ef f ect i v e gov er nment alr ol ei nt er ms ofnat i onal dev el opment . c)Cr eat eapl at f or mf ori nv est ment s,gi v i ngapr ef er ent i alr ol et onat i onal capi t al s. d)Al l ow t heent r anceofext er nalcapi t alf ol l owi ngt hepr i or i t i esal r eady est abl i shedi nnat i onal pl ansf ordev el opment . e)Pr omot eamor eef f ect i v ei nt er naldemandi nt er msofdomest i cmar ket s asabaset or ei nf or cet hei ndust r i al i zat i onpr ocess. f )Gener at eal ar geri nt er naldemandbyi ncr easi ngt hewagesandsal ar i es ofwor ker s, whi chwi l li nt ur nposi t i v el yaf f ectaggr egat edemandi ni nt er nal mar ket s; g)Dev el op a mor e ef f ect i v e cov er age ofsoci alser v i ces f r om t he gov er nment ,especi al l yt oi mpov er i shed sect or si n or der t o cr eat e condi t i onsf ort hosesect or st obecomemor ecompet i t i v e. h) Dev el op nat i onalst r at egi es accor di ng t o t he modelof i mpor t subst i t ut i on,pr ot ect i ng nat i onalpr oduct i on byest abl i shi ng quot asand t ar i f f sonext er nal mar ket s. MANAGEMENTOFDEVELOPMENT BAM 323 TOPI C: THEROLESOFBUSI NESSI NNATI ONALDEVELOPMENT Busi nessasAgentofChange, Gr owt handDev el opment WhatI saBusi ness? 1)Abusi nessi sdef i nedasanor gani zat i onorent er pr i si ngent i t yengaged i ncommer ci al ,i ndust r i al ,orpr of essi onalact i v i t i es.Busi nessescanbef or pr of i tent i t i esort heycanbenonpr of i tor gani zat i onst hatoper at et of ul f i l l a char i t abl emi ssi onorf ur t herasoci al cause. 2)Thet er m" Busi ness"al sor ef er st ot heor gani zedef f or t sandact i v i t i esof i ndi v i dual st opr oduceandsel lgoodsandser v i cesf orpr of i t .Busi nesses r angei nscal ef r om asol epr opr i et or shi pt oani nt er nat i onal cor por at i on. A change agent ,oragentofchange,i ssomeone who pr omot esand enabl eschanget ohappenwi t hi nanygr ouporor gani zat i on. I nbusi ness,achangeagenti sani ndi v i dualwhopr omot esandsuppor t sa newwayofdoi ngsomet hi ngwi t hi nt hecompany ,whet heri t ' st heuseofa new pr ocess,t he adopt i on ofa new managementst r uct ur e ort he t r ansf or mat i onofanol dbusi nessmodelt oanewone.Achangeagenti s somet i mesal socal l edanagentofchangeorchangeadv ocat e Char act er i st i csofChangeAgent Tohel pensur esuccess,or gani zat i onall eader sshoul dchooseachange agentbasedonav ar i et yofchar act er i st i cst hatar ecommonl yi dent i f i edas t hemostef f ect i v ef ort heposi t i on.Thosechar act er i st i csi ncl ude: 1)Di v er si f i edknowl edge; 2)Exper i encei nt hebusi nessdi sci pl i nei mpact edbyt hechangeef f or t ; 3)Awi l l i ngnesst oaskt oughquest i ons; 4)Fl exi bi l i t y , cr eat i v i t yandanopennesst onewi deas; 5)Ast r ongnet wor k; t r ust wor t hi nessandcr edi bi l i t y ; 6)Anunder st andi ngoft hebusi nesscul t ur e; 7)Cour age; 8)Exci t ementf ornewoppor t uni t i esandpot ent i al ; and 9)Comf or twor ki ngt hr oughuncer t ai nt y . THEROLEOFBUSI NESSI NNATI ONBUI LDI NG Nat i onbui l di ngi sconst r uct i ngorst r uct ur i nganat i onali dent i t yusi ngt he poweroft hest at e.Nat i onbui l di ngai msatt heuni f i cat i onoft hepeopl e wi t hi nt hest at esot hati tr emai nspol i t i cal l yst abl eandv i abl ei nt hel ong r un.Accor di ngt oHar r i sMy l onas," Legi t i mat eaut hor i t yi nmoder nnat i onal st at esi sconnect edt opopul arr ul e,t omaj or i t i es.Nat i onbui l di ngi st he pr ocesst hr oughwhi cht hesemaj or i t i esar econst r uct ed. Nat i onbui l der sar et hosemember sofast at ewhot aket hei ni t i at i v et o dev el opt henat i onalcommuni t yt hr oughgov er nmentpr ogr ams,i ncl udi ng mi l i t ar yconscr i pt i onandnat i onalcont entmassschool i ng.Nat i onbui l di ng cani nv ol v et heuseofpr opagandaormaj ori nf r ast r uct ur edev el opmentt o f ost ersoci alhar mony and economi c gr owt h.Accor di ng t o Col umbi a Uni v er si t ySoci ol ogi stAndr easWi mmer , t hr eef act or st endt odet er mi net he successofnat i onbui l di ngov ert hel ongr un: 1.Theear l ydev el opmentofci v i l soci et yor gani sat i ons, 2.Ther i seofast at ecapabl eofpr ov i di ngpubl i cgoodsev enl yacr ossa t er r i t or y , and 3.Theemer genceofashar edmedi um ofcommuni cat i on Busi nessesar eessent i al t onat i onbui l di ngf ort hef ol l owi ngr easons: : 1)Pr ov i si onofJobOppor t uni t i es: Theyof f erj oboppor t uni t i est ot heci t i zensoft hatnat i on.Thi si nt ur nhel ps t hepeopl et ogener at ei ncomesandi mpr ov et hei rl i v i ngst andar ds. 2)Gener at esRev enuest ot heGov er nment : Busi nessesof f eranoppor t uni t yt ogov er nment st ogener at er ev enuesi n or dert or unt hecount r yandadmi ni st r at i v eoper at i onst hr ought het axes t heypay .Thi sdi r ect l yf ost er sdev el opmentast hesef undsar echannel ed t owar dsi mpr ov i ngaspect ssuchassecur i t yandi nf r ast r uct ur e. 3)Fost er i ngofCor di al Rel at i onshi pbet ween/AmongCount r i es: Busi nesseshel p di f f er entcount r i est of ost ercor di alr el at i onsasseen t hr ough i mpor tand expor tbusi ness.Count r i esr el yon each ot herf or par t i cul argoodsandt hi st r ansl at est oi mpr ov edr el at i ons. 4)Focusoni mpr ov i ngt hequal i t yofpr oduct sandser v i cesofaNat i on: Busi nessi sessent i ali nnat i onalgr owt hbecausei thel pst hecount r i est o f ocusoni mpr ov i ngt hequal i t yoft hei rpr oduct sandser v i ces.Thi sbenef i t s bot ht hepopul at i oni nt er msofsuper i orof f er i ngsandt hegov er nmenti n t er msofi mpr ov edr ev enues. 5)Fost erI nnov at i onandCompet i t i on: Busi nessesal so f ost eri nnov at i onand compet i t i on.Byhav i ng mul t i pl e si mi l arbusi nessesi n a mar ket ,heal t hycompet i t i on can cr eat e bet t er goodsandser v i ces.Consi derasmal lt ownwhi chhast woquai ntcof f ee shops.I foneshopcr eat esanew hol i daybr ew,t heot hershopwi l ll i kel y f ol l owwi t hasi mi l arnewt r eatt oav oi dl osi nghol i daycust omer s.Thet wo shops ar e al so unl i kel yt o si gni f i cant l y out pr i ce each ot herso t hat cust omer si nsear chofacupofcof f eewi l l notbedet er r edbypr i ce.Bot hof t hesear eheal t hyi mpact sofbusi ness. 6)Meansofi ncomef ort heaNat i on' sPopul at i on: On a mostbasi cl ev el ,busi ness pr ov i des a means ofi ncome f ora popul at i on.Peopl eneedmoneyt onotonl ysur v i v e,butt oenj oyt hei rl i v es. I nexchangef ort hei rl abor ,busi nessesgi v emoneyt opeopl ewhi cht hey cant henuset opur chaseev er y t hi ngf r om f oodt ov acat i ons.Thi shel psa popul at i onsur v i v eandt hr i v e. 7)Cont r i but i onofTaxRev enues: One maj orr eason whybusi nesses ar ei mpor t antt o nat i onbui l di ng i s becauset heycont r i but et axmoneyt ot hegov er nment ,whi chpr ov i des f undi ngf orav ar i et yoft hegov er nmenti nf r ast r uct ur alf aci l i t i espr ov i dedby f eder al ,st at e,andl ocalgov er nment sf ort hebet t er mentofci t i zenr yl i v i ng st andar d. BUSI NESSSOCI ALRESPONSI BI LI TY( Economi candNon-Economi cOut put ofBusi nesses) Soci al r esponsi bi l i t yi n busi ness,al so known as cor por at e soci al r esponsi bi l i t y( CSR) ,per t ai nst opeopl eandor gani zat i onsbehav i ngand conduct i ngbusi nesset hi cal l yandwi t hsensi t i v i t yt owar dssoci al ,cul t ur al , economi c, andenv i r onment al i ssues. Whati sCor por at eSoci al Responsi bi l i t y( CSR) ? 1)Cor por at e Soci alResponsi bi l i t yi s a managementconceptwher eby compani esi nt egr at esoci alandenv i r onment alconcer nsi nt hei rbusi ness oper at i ons and i nt er act i ons wi t ht hei rst akehol der s.CSR i s gener al l y under st oodasbei ngt hewayt hr oughwhi chacompanyachi ev esabal ance ofeconomi c, env i r onment al andsoci al i mper at i v es 2)Cor por at esoci alr esponsi bi l i t y( CSR)r ef er st ost r at egi est hatcompani es puti nt oact i onaspar tofcor por at egov er nancet hatar edesi gnedt oensur e t hecompany ’ soper at i onsar eet hi cal andbenef i ci al f orsoci et y . Someoft heexampl esofBusi nessSoci al Responsi bi l i t yar e: 1)Reduci ngcar bonf oot pr i nt s. 2)I mpr ov i ngl aborpol i ci es. 3)Par t i ci pat i ngi nFai r t r ade. 4)Char i t abl egi v i ng. 5)Vol unt eer i ngi nt hecommuni t y . 6)Cor por at epol i ci est hatbenef i tt heenv i r onment . 7)Soci al l yandenv i r onment al l yconsci ousi nv est ment s. Cat egor i esofBusi nessSoci al Responsi bi l i t y Al t houghcor por at esoci alr esponsi bi l i t yi sav er ybr oadconceptt hati s under st oodandi mpl ement eddi f f er ent l ybyeachf i r m,t heunder l y i ngi dea ofCSR i st o oper at ei naneconomi cal l y ,soci al l y ,and env i r onment al l y sust ai nabl emanner . Gener al l y ,cor por at e soci alr esponsi bi l i t yi ni t i at i v es ar e cat egor i zed as f ol l ows: 1.Env i r onment al r esponsi bi l i t y : Env i r onment alr esponsi bi l i t yi ni t i at i v es ai m atr educi ng pol l ut i on and gr eenhousegasemi ssi ons, andt hesust ai nabl euseofnat ur al r esour ces. 2.Humanr i ght sr esponsi bi l i t y : Humanr i ght sr esponsi bi l i t yi ni t i at i v esi nv ol v epr ov i di ngf ai rl aborpr act i ces ( e. g. ,equalpayf orequalwor k)andf ai rt r adepr act i ces,anddi sav owi ng chi l dl abor . 3.Phi l ant hr opi cr esponsi bi l i t y : Phi l ant hr opi cr esponsi bi l i t ycani ncl udet hi ngssuchasf undi ngeducat i onal pr ogr ams, suppor t i ngheal t hi ni t i at i v es, donat i ngt ocauses, andsuppor t i ng communi t ybeaut i f i cat i onpr oj ect s. 4.Economi cr esponsi bi l i t y : Economi cr esponsi bi l i t yi ni t i at i v esi nv ol v ei mpr ov i ngt hef i r m’ sbusi ness oper at i onwhi l epar t i ci pat i ngi nsust ai nabl epr act i ces–f orexampl e,usi ng anewmanuf act ur i ngpr ocesst omi ni mi zewast age. Busi nessBenef i t sofCor por at eSoci al Responsi bi l i t y I naway ,busi nesssoci alr esponsi bi l i t ycanbeseenasapubl i cr el at i ons ef f or t .Howev er ,i tgoesbey ondt hat ,asbusi nesssoci alr esponsi bi l i t ycan al soboostaf i r m’ scompet i t i v eness.Thebusi nessbenef i t sofcor por at e soci al r esponsi bi l i t yi ncl udet hef ol l owi ng: 1.St r ongerbr andi mage,r ecogni t i on,andr eput at i on:CSRaddsv al uet o f i r msbyest abl i shi ngandmai nt ai ni ngagoodcor por at er eput at i onand/ or br andequi t y 2.I ncr easedcust omerl oy al t yandsal es:Cust omer sofaf i r mt hatpr act i ces CSRf eel t hatt heyar ehel pi ngt hef i r m suppor tgoodcauses. 3.Oper at i onalcostsav i ngs:I nv est i ngi noper at i onalef f i ci enci esr esul t si n oper at i onal costsav i ngsaswel l asr educedenv i r onment al i mpact . 4.Ret ai ni ngkeyandt al ent edempl oy ees:Empl oy eesof t enst ayl ongerand ar emor ecommi t t edt ot hei rf i r m knowi ngt hatt heyar ewor ki ngf ora busi nesst hatpr act i cesCSR. 5.Easi eraccesst of undi ng:Manyi nv est or sar emor ewi l l i ngt osuppor ta busi nesst hatpr act i cesCSR. 6.Reducedr egul at or ybur den:St r ongr el at i onshi pswi t hr egul at or ybodi es canhel pt or educeaf i r m’ sr egul at or ybur den. HOW GOVERNMENT POLI CI ES AFFECT BUSI NESS OPERATI ONS I N NI GERI A Gov er nmentpol i ci es ofanycount r yr ef ert o pl ans ora car ef ul l ypr edet er mi nedcour seofact i onsi nt endedt oi nf l uencedeci si onsandact i ons r egar di ng al lsect or si nt hecount r y .Gov er nmentpol i ci esar et her et o r egul at eandgui det heeconomi cset t i ngatal l l ev el si nacount r y . I nNi ger i a,t hegov er nmentatf eder al ,st at eandl ocalgov er nmentl ev el cr eat es and i mpl ement s pol i ci es meant t o al l ev i at e and r egul at e commer ci alact i v i t i es and mostt i mes,t hese pol i ci es act ual l yhav ea posi t i v eef f ect . Gov er nmentpol i ci esi nNi ger i at hataf f ectbusi nessesi ncl ude;mi ni mum wage, t axat i onexci sedut i es, i nt er estr at est r ader egul at i onset c. Ev er ybusi nessi nt hi scount r yi saf f ect edbyt hesepol i ci esi nonef or m or anot her and t her ef or e suscept i bl et ot he ef f ect s of i t s successf ul i mpl ement at i onornotsosuccessf ul i mpl ement at i on. Hence,ev er ybusi ness owner ,company / or gani zat i on and ent r epr eneur shoul dbeawar eofhowt hesepol i ci esaf f ectt hei rbusi nessandt her ef or e shoul dconst ant l ybei nt heknow onchangesi nt hesepol i ci esandt he modeofi mpl ement at i on. Her ear esomeoft heef f ect sofgov er nmentpol i ci esonbusi nessi nNi ger i a: 1.Costofdoi ngbusi ness: Thepr ocessofst ar t i ngandr egi st er i ngabusi nessi nNi ger i ai squi t ea cost l yandcumber somepr ocess,SMEsi nNi ger i ast r uggl et hemostand ev ent heest abl i shedbusi nessesandcompani es,al sopol i ci esi npl ace suchas;hi ghi mpor tandexpor tduesaf f ect st hecostofdoi ngbusi ness, t hi scoul dbei nt hef or m ofi ncr easei nt het ar i f f sgov er nmentl ev i eson i mpor t at i onofr aw mat er i al s.Asar esul toft hi scostofpr oduct i onand pr i ceofpr oduct sar ei ncr easedexponent i al l y . Taxat i onpol i cyal sohasahugeef f ectont hecostofdoi ngbusi ness.An i ncr easei nt het axl ev i edonanor gani zat i onorbusi ness, af f ect st hecostof pr oduct i onandhast hesameef f ectont hecostofpr oduct sandser v i ces. 2.Faci l i t at esChangesi nt heMar ketEnv i r onment : Themar ketenv i r onmenti sconst ant l yi nf l uencedbygov er nmentpol i ci es. Fi scalpol i ci esl i ket axat i onaf f ect sbusi nessesbyal t er i ngt hecust omer s pr oposed expendi t ur e.I ncr eased t axes l owerconsumer s’di sposabl e i ncomeav ai l abl ef orspendi ng. Taxsensi t i v epr oduct sar edemandedl esswhent her ei sani ncr easei nt ax, ast hepr i ceoft hepr oduct sgoesupandconsumer s’di sposabl ei ncome r educes. 3.Tr adeRegul at i ons: Thesear er egul at i onsputi npl acebyt hegov er nmentatdi f f er entl ev el s, t hatal lbusi nesseshast ocompl ywi t hsomeoft heser egul at i onsar e i nef f ect i v eandconst i t ut eaf or m ofexpenset obusi nessowner s. Butsome r egul at i ons l i ke per i odi c heal t hi nspect i on car r i ed outat busi nesses l i ke r est aur ant s,hospi t al s,gr ocer y shop et c.t hough,i f i mpl ement edwel lcont r i but essi gni f i cant l yt ot hewel l bei ngofconsumer s andf or cesowner sofsuchbusi nessest oconst ant l yi mpr ov e. 4.Sect i onal i sm: Thedi scov er yofoi li nNi ger i ahasbeenabl essi ngandacur set osome. Thepr oceedsf r om t heoi landgasi ndust r yi nt hi scount r ygener at esat l east60%ofi t sr ev enueannual l y . I tgoeswi t houtsay i ngt hatt heoi lsect ori st hemostl ucr at i v esect ori nt he count r yandassuchi tdi ct at est her at eofsoci al ,pol i t i cal ,andespeci al l y economi cpr ogr essi nt hecount r y . Unf or t unat el y ,t hi shasal so r esul t ed i n an ov erdependenceon oi lt o sust ai neconomi cgr owt h, l eadi ngt oanegl ectofot herpot ent i al l yl ucr at i v e sect or s.Ni ger i ai soneoft hemostmar ket abl ecount r i esi nAf r i canodoubt , wi t har api dl ygr owi ng economyy etmosti nv est or s( pr ospect i v e and pr esent )hav ei nt er esti nonl yonesect oroft hecount r y . 5.St i f l esGr owt hofSMEs: Wi t ht her at eofunempl oy menti nt heNat i onconsi st ent l yont her i se, mor e peopl et hanev erbef or ear egoi ngi nt obusi nessont hei rown,t hi ssel f empl oy ed peopl e and busi ness owner s const i t ut e maj or i t yofwhati s r ef er r edt oi nt hebusi nesswor l dassmal landmedi um ent er pr i ses( SMEs) . Unf or t unat el ymostoft hi sv ent ur esnev ermakei tpastt hest ar t upphase, andwhi l et her ear eal otofdi f f er entr easonsf ort hi ssuchas;l ackof pl anni ng,obsol et ebusi nessi deas,l ackofcapi t al ,gov er nmentpol i ci es, et c. wear egoi ngt of ocusexcl usi v el yont her ol egov er nmentpol i ci espl ayi n t hesuccessorf ai l ur esoft hesev ent ur es. MANAGEMENT OF DEVELOPMENT BAM 323 TOPIC: NATIONAL DEVELOPMENT AGENDA National Development Planning Framework in Nigeria. Understanding national development planning is knowing the functions of planning in management as a discipline. Planning means "thinking before doing", therefore “National Planning” is a process where relevant analysis is made about the future environment having in mind the past records by putting toward an articulated program and policies towards the achievement of pre-determined goals. When planning is extended to a nation, we say that country is embarking on national planning and when development is the focus of such plan then such arrangement is referred to as “National Development Planning’. Definition of National Development Planning National development planning can be defined as the strategic measurable goals that a country plans to meet within a certain amount of time in order to provide enabling environment and improve the quality of life of its citizenry. The purpose of development planning is to promote sustainable and stable development of the country and to improve people's quality of life. National planning idea provides the enabling environment and capacity to meet these national desired efforts. National planning brings to bear the entire social, political, economic and technological development program and strategy with so much concern for target growth and objective and its attainment. Development Planning and its Management in Nigeria Nigeria has had a relatively long experience in development planning beginning with the Colonial Development Plan (1958-68). Medium-term development plans and national rolling plans were also developed and implemented with mixed results. Other major strategic initiatives such as the Structural Adjustment Programme, the National Economic Empowerment and Development Strategy; the Strategy for Attaining the Millennium Development Goals; and the 7-Point Agenda were not seen to have been effectively managed and implemented. The Nigeria Vision 20:2020 expressed the aspiration for Nigeria to become one of the top 20 economies in the world by 2020. Attainment of the Vision would have enabled the country to achieve a high standard of living for its citizens. It was developed by Nigerians for the Nigerian people and involved a process of thorough engagement with all stakeholders across all levels of government and society. The Vision was pursued through a series of three/four-year plans which was to be achieved with articulate strategies, policies, projects and programmes. Unfortunately, the current state of insecurity, banditry, kidnapping, terrorism, etc. have jeopardized the laudable efforts made by the government to achieve this fit. The Nigerian Development Plans Pre-Independent Plan Nigerian national planning is dated back to 1940 specifically 1945 when the first 10 years development plan was submitted to the colonial administration to guide it in its allocation of the development and welfare fund for Nigeria in 1946. The objective of the plan though not stated but was to meet the perceived needs of the colonial government rather than any conscious attempt to influence the overall performance of the Nigerian economy. Irrespective of the weaknesses of the plan, it serves as a Launchpad two subsequent development plan in Nigeria. The First National Development Plan (1962 -1968) Still in the euphoria of national independence, the government launched the first national development plan with unprecedented zeal for achievement. The good things about the plan was the acknowledgement by the Administration of the inadequacies that existed then. Objectives of the First National Development Plan 1. To bring about equal distribution of national income 2. To speed up the rate of economic growth 3. To generate savings for investment 4. To generate enough capital for the development of manpower 5. To increase the standard of living of the masses 6. To develop the infrastructure of the nation Shortcomings of the First National Development Plan 1. It created a high sense of insecurity and fear of domination that led to the civil war 2. A lot of social ills were created because of the plans inability to create jobs and lift the standard of living of the citizen. 3. Projects were executed not on a proper analysis of its need but to balance regional discrepancies. 4. The plan was initiated during the civil war 5. The plan was too large and over ambitious The Second National Development Plan (1970-1974) After the civil war the second national development plan focuses on national reconstruction and rehabilitation. Objectives of the Second National Development Plan 1. To build a united strong and self-reliant nation 2. To create a just and egalitarian society 3. To create a land of brightness and full of opportunities for all citizens 4. To build a free and democratic society 5. To create a great and dynamic economy Shortcomings of the Second National Development Plan 1. Over-dependence on petroleum thereby neglecting agriculture 2. The plan lays much emphasis on indigenization policies 3. No concrete projects was executed 4. There was no concrete program to achieve the identified goals and objectives 5. Other contributors to gross domestic product were ignored with special Focus on oil. 6. Agriculture experienced a negative growth rate. The Third National Development Plan (1975 -1980) The plan aimed at harnessing the gains from oil sector into the provision of wide network of infrastructure for the nation’s self-sustaining growth. Objectives of the Third National Development Plan 1. To ensure increase in per capital income 2. To ensure even distribution of income 3. To reduce unemployment rate 4. To ensure diversification of the economy 5. To increase supply of high level manpower 6. To ensure balance development at indigenisation of economic activities. Shortcomings of the Third National Development Plan 1. The exaggerated programs made at the twilight of the plan became unrealised because of the downturn on the fortunes of oil, the main sustenance of the economy 2. The plan did not really achieve its set target 3. Extra budgetary spending became prominent which seriously cause inflation 4. Agriculture further experienced negative growth 5. The civil government that came in 1979 did not help matter at all. The Fourth National Development Plan (1981-1985) The plan came on board in 1981. It was the first that the civilian government prepared since the intervention of the military in Nigeria politics in 1966. Objectives of the fourth National Development Plan 1. To increase the real income of the average citizens 2. More even distribution of income among individual and socioeconomic group 3. To reduce the level of unemployment and underemployment 4. To increase the supply of skilled manpower 5. To increase participation of the citizens in the ownership and management of productive enterprises 6. Greater self-reliance to achieve optimum utilization of resources 7. Development of technology 8. Better attitude to work and cleaner environment Shortcomings of the Fourth National Development Plan 1. The Nigerian economy witnessed debt service and balance of payment problem coupled with high level of inflation 2. The rise in the cost of living led to a reduction in the standard of living of a common man 3. Increased in unemployment among school leavers in the country 4. External reserves kept on declining 5. Most of the projects that were started at the beginning of the plan were not be completed The Fifth National Development Plan (1986-1990) Sequel to the implementation of the 4th national development plan, a machinery was put in place for preparation of the 5th national development plan. Objectives of the Fifth National Development Plan 1. Diversification of the nation's economy. 2. Revitalization of the agricultural sector. 3. Domestic production of raw materials for local industries in order to reduce the importation of locally manufactured goods 4. Promotion of employment opportunities in order to erase the deteriorating mass unemployment. Shortcomings of the Fifth National Development Plan The 5th national development plan did not materialize. It was incorporated in the Structural Adjustment Programs (SAP). SAP, a well-articulated economic relief package was conceived and launched in July 1986 by the former Military Head of State, General Ibrahim Gbadamosi Babangida to reduce the structural shortcomings and dislocations in the economy and realign local demand and production patterns to a path of steady and sustainable economic growth. Objectives of the Structural Adjustment Program (SAP) 1. Adoption of a realistic exchange rate policy that is reduction of inflationary rate 2. Rationalization and restructuring of tariffs in order to aid and promote industrial diversification 3. Reduction of administrative control and fostering reliance on market forces 4. Rationalizing and commercialization of public sector enterprises i.e to reduce the unproductive public sector investment and expand the growth. 5. Introduction of measure to stimulate domestic production, i.e. to increase the supply in the economy, restructure and diversify the productive sector i.e. to reduce dependence on the oil sector. The key policies designed to achieve these objectives are: 1. Strengthening of hitherto strong and relevant demand management policies. 2. Adoption of measures to stimulate domestic production and broaden the supply base of the economy. 3. The setting up of a Second-Tier Foreign Exchange Market (SFEM) as a mechanism of realistic exchange rate and consequently, the alteration of relative prices to enhance efficiency in resource allocation, and to promote domestic-based production and nonoil exports. 4. Further rationalization and restructuring of tariffs in order to aid industrial diversification. 5. The liberalization of the external trade and payments system-dismantling of price, trade and exchange controls 6. The elimination of price controls and commodity boards 7. The rationalization and restructuring of public sector enterprises and overhauling of the public sector administrative structure. Merits of Structural Adjustment Program 1. It ensured easy access to foreign exchange and fair distribution to the productive sector of the economy 2. SAP triggered reversal of the perverse phenomenon of rural-urban drift 3. It enhanced efficiency in resource allocation, thus prevented distortion and imbalances in the economy. 4. SAP encouraged local sourcing, that enhanced inward looking for our needs 5. SAP fostered and instilled a good maintenance culture among Nigerians arising from very high cost of procuring new spare parts/plants, repairing the spoiled or old ones and handling them with greater care become order of the day. 6. SAP encouraged drastic reduction in an ethical practices like fraud, over-invoicing, tax evasion, diversion of foreign exchange. 7. It enhanced export competitiveness since there was no subsidy by way of over valuation of the naira 8. Capacity utilization increased reasonably 9. SAP occasioned gradual restoration of international credit worthiness and confidence in Nigeria economy. Shortcomings of Structural Adjustment Program 1. The social service and utilities sector witnessed financial indiscipline political interference organizational deficiency and inadequate pricing policies 2. The excess liquidity and desire to keep inflation low led the government to adopt credit squeeze policy i.e., low aggregate demand and capacity utilization. 3. The trade liberation and ineffective implementation of tariffs led to increased importation of finished products. 4. The deregulation policy of the program adversely affected some sectors of the economy. Difficulties/Problems in Implementing Development Plans in Nigeria 1. Misplacement of Priorities Like the colonial ones, the policies of the post-independent plans also exhibited a basic lack of urgency. A typical example is the iron and steel industry that was in the first and second plans and was initiated for projected completion during the fourth plan. This represented a lag of twenty years; yet this project was repeatedly acclaimed the cornerstone of Nigeria’s industrialization. Similar examples include petrochemicals, fertilizers, the petroleum refinery, liquefied petroleum gas and other heavy industries. While this leisurely pace persisted, the country completed such counter-productive projects like the National Stadium and Trade Fair Complex in Lagos, the Festac Durbar Hotel at Kaduna and staged the multi-million Naira FESTAC itself in 1977. 2. Lack of Plan Discipline Nigerians seem to lack the political will to keep to our plans. While there are enough rules in the plans to enforce plan discipline, Nigerian leaders simply have a special knack for side tracking development plans. Though plan projects acquired priorities since 1962, these are invariably ignored by the bureaucratic bourgeoisie in a blatant demonstration of the superiority of its selfish class interests over avowed national objectives. Typical examples could be found in the FESTAC which cost hundreds of millions of Naira, yet nowhere in any plan document and the Universal Primary Education (UPE) programmer which was not in the second plan, yet its implementation began during that plan and its critical phase commenced during the third plan. 3. Lack of Self-Reliance In spite of about two decades of post-independent planning, the basic neo-colonial structure of the economy persists in terms of its dependence on international capitalism. In fact, by the kind of industrialization strategy of these plans, this is anchored to import-substitution and consequently dominated by the multinationals. Post independent planning has essentially integrated our economy more tightly and multilaterally into the orbits of imperialistic international capitalism. Worse still, is the capital- intensive techniques of this neo-colonial industrialization together with the orientation towards consumer- goods manufacturing in the country, especially the domestic production of former imports of manufactured goods which imply increased reliance on imperialists for capital goods. 4. Public Service Inefficiency Since the public service is the institution that implements the development plans, any efforts at improving our implementation record must begin with the public service. The fact that Nigerians outside the public service are quite productive is an indication that the problem must lie to a large extent with the service itself. Although the public service reforms, which among other things, attempted to increase the level of professionalization in the service, is a step in the right direction, the public service is still plagued with the problem of management malady, poor conditions of remunerations, overstaffing, and lack of a clear-cut job description as well as non-institutionalization of the principle of management b objective (MBO). .5. Technology Transfer Syndrome Until the fourth plan development plans in Nigeria did not recognize the key role of indigenous technological capability in national development Worse still is the fact that the stress on technological transfer through multination which has proved to be a mirage up till date 6. Systems Corruption Systemic corruption has to do with a situation where corruption has been institutionalized and (catapulted) raised to the level of a structural parameter Thus it has become part of the value-system of a society, that is to say, a condition par excellence It could be asserted that from the strategic corruption of the cement armada to the mega tonic corruption of the second Republic we have consciously or unconsciously, created systemic corruption in the country and the trend has continued through the third and fourth republics to the extent that it will not be a distortion of historical facts to assert that corruption is at home with Nigerians. 7. Inadequate Executive Capacity Inadequate executive capacity is one of the greatest problems of development plans in Nigeria in the area of execution. In fact, it is frustrating to plan the execution of programs which require the availability of organization, institutions and skills which the economy does not possess and cannot normally be expected to generate during the plan period. Executive capacity also involves the existence of competent contracting firms and basic socio-economic infrastructure including competent hands to run the civil service and allied government machinery. 8. Absence of Relevant Data Planning relies basically on data. Accurate data is a very scarce commodity in Nigeria due to problems arising from the inadequacies of the federal office of statistics, the unwillingness of Nigerians to reveal information and the outright manipulation of data for pecuniary or other gains. The most vivid illustration of the problem of data in Nigeria is the fact that since independence till date, nobody has been able to answer the simple question “How many are we?” A country that does not know its population would definitely not be in position to determine the other vital statistics necessary for planning life, birth-rate, death-rate, number of those of school age and the other demographic changes in the population which are essential for planning. 9. Domestic-Foreign Resource Generation Ratio There is the tendency to have over-sized plans because of the high expectations from foreign resources. This situation became obvious during the fourth plan, when the original capital outlay of N70.5 billion for the public sector became unrealistic as a result of the disturbances in the oil market. The plan’s resource allocation was based on the assumption that oil production would remain at over 2 million barrels a day at a price of at least, $40 per barrel. Regrettably, however, by February, 1983, Nigeria was producing less than 1 million barrels per day at about $30 per barrel. Also, the first plan could be considered over-sized because of the total planned investment of N1, 307.8million, domestic resource availability amounted to N526 million with the expectation of 50 per cent (million) of the capital budget from foreign sources. Worse still, Nigeria’s economy is mono- product and not technology driven in a domestic sense. 10. Weak Public/Private Sector Partnership Collaboration There is arguably a very weak collaboration between the public and the private sectors as far as development planning efforts in Nigeria is concerned. In fact, development planning has largely followed bureaucratic process with little private sector participation so much so that such efforts can be appropriately described as lacking in synergy. Ordinarily, development planning is supposed to incorporate broad policy frameworks that will have elements of public and private sector initiatives. Possible Solutions to Difficulties in Implementing Development Plans in Nigeria 1. Better Resource Control Human capital development should be greatly encouraged since the efficient use of human resources will cause rapid economic growth. Also, allowing more resource control at the local levels of government and creating a system that holds them accountable will greatly improve the country’s development at these levels. This will also see to maximum development in every state and not just a select few as is the case presently. 2. Discipline in Planning As earlier stated, change in government officials brings about change in policies and projects. These new projects compete for resources with already approved ones and most times, the plan is distorted. Laws should be enacted to enforce discipline in the completion developmental projects no matter the ruling party. 3. Mass Education on Development Plans Mass media should be employed to educate the people on plans being considered, its objectives, strategic implementation plans and feedback mechanism installed. This will go a long way to ensure commitment of the masses to bring these plans to realization. 4. Efficient Data Collection The relationship between a good development plan and efficient data collection cannot be overemphasized. The data gotten greatly influences the projection of the economic needs of the people and requirements of the nation generally. 5. Proper Financial Management The bulk of Nigeria’s revenue is derived from the oil sector. Asides poor projections over expected revenue, the scandals propagating in the oil sector must be put in check. The EFCC is doing a good job curbing financial crimes. Nonetheless, special attention should be given to ensure money recovered or allotted for development projects is put to good use and penalty meted out to defaulters. 6. Patriotism This was saved for last because it has to do with every individual in Nigeria; the President, the governor, the minister, the local government chairperson, the man on the street, the woman and the child. The spirit of patriotism in every citizen will in no small measure advance the course of development in Nigeria. It is not about what the government does for you or what you do for the government, it is about civicmindedness.
