The changing economic world - Nigeria case study Flashcards
Location??
- Located in West Africa
- Just North of Equator
- South of the Tropic of Cancer
Classifying industry jobs? Primary?
Extracting/ using raw materials e.g. agriculture, mining
Classifying industry jobs? Secondary?
Manufacturing e.g. Nissan
Classifying industry jobs? Tertiary?
Providing a service e.g. retail/ doctor
Classifying industry jobs? Quaternary?
High tech, Research + Development, e.g. Web design
GDP in Nig?
GDP per capita has had a steadyincrease after 2010
Total GDP has increased rapidly since 2010
Importance of oil in Nig?
- Nigeria’s oil is high quality
- ## Income from oil and gas has helped Nig make the transition from LIC to NEE
Downfalls of being so dependent on oil?
- The country’s dependence on oil makes it vunerable to changes in the oil prices
- The USA used to be Nig’s largest customer for oil. Now USA produces it’s own oil (shale), India has become the largest customer
Why is manufacturing flourishing in Nigeria? Large pop
- Large pop = large workforce
Why is manufacturing flourishing in Nigeria? Youthful pop
- Able-bodied workforce
Why is manufacturing flourishing in Nigeria? Official national language is English
Interntional lang and beneficial for investment from around the globe
Why is manufacturing flourishing in Nigeria? No longer a LIC
More disposable income for local pop
Why is manufacturing flourishing in Nigeria? 70% of pop living in poverty
Low wage rates
Why is manufacturing flourishing in Nigeria? Oil contributes $10 bn in foreign exchange
Income to driv economic development
Why is manufacturing flourishing in Nigeria? Wealth of natural resources
Raw materials for manufacturing (e.g. agriculture and minerals)
Why is manufacturing flourishing in Nigeria? Stable democratic gov since 1999
Attractive for forign investment
Positive multiplier effect of manufacturing?
TNC’s set up factories ➡ Factory workers spend money locally ➡ Local services have more trade ➡ Gov. receives more tax ➡ Gov invests in infrastructure
Examples of manufacturing?
- VW cars
- Unilever e.g. Marmite, persils, food + toiletries
Trade in Nigeria - import
China is the top importer - growing wealth (more disposable income) increases demand for luxury elecrical appliances and engineered goods, which thy can’t yet produce itself - China is a low cost source
Trade in Nigeria - exports
N exports most to india bc it is another NEE and it needs oil to support growth - USED TO EXPORT TO AMERICA BUT THEY STARTED PRODUCING OWN SHALE OIL
What is a TNC?
a TNC is a large company that operates in several countries
What do TNCs locate in foreign countries to take advantage of?
- Tax incentives
- Cheap labour
- Less strict environmental laws
- Access to wider market
Benefits of having shell oil in N?
- Shell has created 65k permenant jobs
- 250,000 jobs in related industres
- making major tax contributions in taxes and export revenue
- supporting the growth of N’s energy sector
Disadvantages of having shell oil in N?
- oil contributed to corruption as oil has helped corrupt politicans to get rich fast
- Corrupt politicazns have taken taxt revenues
- Oil has increased the gap between the rich and poor
- Gangs includ. islamic fundamentalists ‘BOKO HARAM’ have stolen oil for themselves - civil unrest - reducing oil production levels and coting TNC’s and gv bns $ every year
- oil spills caused water pollution and soil degredation, reducing agricultural production and fishing yield
Problems of extracting oil in N for Shell?
- Niger Delta is an area of swampy land which makes drilling for oil very difficult + £$£
- as large and successful TNC shell has been able to invest huge amounts of money and expertise
Dependency theory?
countries can become dependent on aid and be unable to develop without it
What is aid?
aid can be defined as ‘assissting ppl’ . Providers can be individuals, charities, NGO’s. Gov’s, International organisations
What is emergency aid?
usually follows a natural disaster, war, conflict. - food water, medical supplies, shleter
What is Developmental aid?
long term support - aims to improve quaity of life by proving safe water, education, improvements to infrastructure - roads and electricity supplies
Why does N receive aid?
- 70% still living in aid
- Birth rates and infant mortality are high and low life expectancy
- many ppl have limited access to services, such as safe water, sanitation, reliable electricity supply
Where does aid come from and how much for N?
- UK, USA
- INTERNATIONAL DEVELOPMENT AGENCY GIVE $550 MIL
impact of aid in N
- The Uk deparment for International development has funded a health and HIV programme, providing health care in rural areas
- aid from the USA helps to educate and protect ppl against the spread of AIDS/ HIV
What prevents aid being used effectively?
- Corruption in Gov and by individuals is a ajor factor in loss of aid - Gov may divert money to be used for purposes
- Donors have political influence
How is aid beneficial - economically (World Bank)
$500 mn from world bank for development projects and business loans ➡ creates jobs - generates tax
How is aid beneficial - health (AIDS)
Aid from USA to tackle aids to help reduce number of avoidable causes and death
How is aid beneficial - socially (orphans)
US AID for ophans and children in need
How is aid beneficial - health (education)
Nets for life provide education, equipment and trainng to tackle malaria- has reduced number of deaths from malaria
how is aid beneficial social - (Uk deparment)
UK deparment for International Deveopment providing jealth eduction in rural areas ➡ increasing literacy rates
Have all Nigerians benefited from economic deveopment?
- Many have as HDI has gone from 0.46 in 2004 to 0.5 now
Benefits of N’s economic development?
- Reliable, better paid jobs in maufacturing and serviecs
- An increased disposable income
- Better access to safe water
- Improvements to infrastructure
Benefits of N’s economic development 2?
- More money to spend on schooling
- improved access to a better diet
- More reliable electricity supplies
- better quality health care
But has it all been good news for Nigeria?
- 60% of ppl still living in poverty
- Poor road quality
- Poor buildings - made from corrugated iron, wooden, some concrete
- Lack of services such as refuse collection
Has oil benefited the poor ppl of N?
- Oil wealth has not been used effectively (sanitation)
- The gap between rich and poor become wider
- Corruption in gov
- Oil wealth was not used to diversify the economy
- Oil price has fallen
- Shale oil developed elsewhere
what are the political challenges that face Nigeria’s poor in improving their lives?
- the need for a continuing stable Gov to encourage inward investment
what are the Environmental challenges that face Nigeria’s poor in improving their lives?
- Pollution of the Niger delta by oil spills. Pests like the tsetse fly restrict commercial livestock farming
what are the social challenges that face Nigeria’s poor in improving their lives?
- Historical distrust between tribal groups
- religious divide between Muslims and Christians
- Recent kidnappings by the militant group Boko Harsm spread fear among Nigerians and potential investors
Environmental issues in Nigeria? Industrial growth
- Fast and unregulated industrial growth has led to environmental problems
- Some industries dispose of chemical waste on nearby land - threatening the groundwater quality
- Industry chimneys emit poisonous gases that can cause respitory + heart problems in humans
Evironmental issues in Nigeria? Urban growth
- Traffic congestion is a major problem, leading to high levels of exhaust emissions
- Waste disposal has became a major issue
- Building on green spaces has reduced bio - diversity
Environmental issues in Nigeria? Oil
- Growng things like palm oil has led to dstruction
- Destroyed habitats - Links to climate change
- Deforestation/ commercial farming - water pollution due to chemicals, soil erosion
Environmental issues in Nigeria? Deforestation/ commerical farming
- Oil spills can cause fires, sending co2 and otehr harmful gases into the atmosphere
- Oil spills in the Niger Delta have had disastorous effects on freshwater and marine ecosystens
- Theu cause acid rain which harms plants and aquatic ecosystems
