All this macro stability stuff means nothing without the basic necessities of life. Please advise your newly adopted country, Nigeria, to abandon its outlandish ambition to engage in space exploration and give a life to its hordes of poor - electricity, water, rubbish removal, basic health , good roads and an enlightened education.
Before your readers start salivating at the $273 billion GDP of 160 million Nigerians, I would like to remind them that Singapore with 4 million Chinese has a GDP of $239 billion. The citizens of Nigeria and Singapore were all dressed in white singlets and loin cloths at independence in 1960!
The big difference in Singaporean GDP has been due to Confucian discipline and enlightened despotism. Lee Kwan Yew and his elite ruling apparatchik (genuine intellectuals from elite World universities) decided what was good for the unthinking masses and applied legendary discipline to accomplish their agenda.
In your adopted country, Nigeria, it is very difficult to distinguish between thieving Ajeh butter (elite butter eaters) and Ajeh kpacko (hordes of cassava eaters). They are all stealing with impunity from the public purse to the detriment of a civil society.
Mukefor
Gubernatorial Aspirant
South West Region.
To: camnetwork@yahoogroups.com; ambasbay@googlegroups.com; cameroon_politics@yahoogroups.com
From: tumasangm@hotmail.com
Date: Wed, 29 May 2013 09:45:18 +0000
Subject: [cameroon_politics] Lesson 101 to Biya on how to manage economy under democracy
Macro Indices, reforms show democracy as benefitting economy
Fourteen years of democracy (1999 – 2013), have left a positive legacy of reforms and macro-economic stability for Nigeria, BusinessDay analysis of available CBN, IMF, World Bank and NBS data has shown.
Nigeria's economy expanded six-fold to $273 billion in 2012, from $45 billion in 2000 with an average Gross Domestic Product (GDP) growth rate of 8.3 percent for the period, as new industries such as telecommunications helped boost growth.
Income per head in 2000 which was $378 dollars rose by 357 percent to $1,731 by 2012, while Net Foreign Direct Investment (FDI) of $1.1 billion grew to $6.1 billion by 2012.
Nigeria which suffered from periodic bouts of hyper inflation in the 1990's, with CPI touching a high of 75 percent in 1995, has managed to bring inflation somewhat under control in the 14 year period, with current inflation rate in single digits at 9.1 percent.
Macro stability also benefitted fundamentally from the fiscal reforms put in place by finance Minister Ngozi Okonjo-Iweala in her first term by capping the deficit at 3 percent of GDP, and more recently, from the tighter monetary policy regime put in place by the Central Bank of Nigeria (CBN).
The reforms that revamped the domestic bond market have also led to macro stability.
Moribund until 2003, the domestic bond market today finances much of the FG budget deficit and some long term infrastructure projects.
The size of the domestic bond market in 2011 was N9.5 trillion ($60 billion), made up of AMCON bonds (57.42 percent), FGN bonds (37.21 percent), Sub nationals (3.58 percent) and Corporate bonds (1.79 percent).
The value of transactions in the domestic fixed income market is up four-fold since 2006, reaching a value of N14.7 trillion at the end of 2010, from an almost negligible level in 2000 according to data from investment firm Vetiva Capital.
Meanwhile, the nations yield curve has extended from three months to 20 years, with 3yr, 5yr, 10yr and 20 year bonds routinely issued by the Debt Management Office (DMO).
This has eliminated so called 'ways and means' (money printing) deficit financing, rampant in the eighties and nineties, and a major source of inflation. It has also attracted offshore investor interest in naira denominated assets.
"As a result of the increased flow from offshore investors, the naira is stable. This has helped too, with macroeconomic stability, and acts as a check on policies that should continue to guarantee stability," Razia Khan, regional Head of Research, Africa, at Standard Chartered Bank said.
The nation's public debt which stood at 84 percent of GDP in 2000, is down to 14.7 percent in 2012, while gross external debts at $6.3 billion at the end of last year is down 80 percent from the $31.4 billion it was in the year 2000.
The nation's foreign exchange reserves are also up 340 percent to $44.2 billion at year end 2012, from $9.9 billion in 2000.
The pension reform enacted in the period has led to the accumulation of long term funds with Nigeria pension funds having N3 trillion ($19 billion) worth of assets at the end of 2012, up from negligible levels at 2000.
Other reform efforts in the period include the elimination of most of Nigeria's external debt to the Paris and London clubs, which has seen gross external debt fall to 2.3 percent of GDP from 70 percent of GDP in 2000.
The privatisation of major government enterprises also eliminated waste and led to the rise of Nigerian private sector-led conglomerates, such as Dangote Cement and the nation's major banks.
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