Debt & aid impact on a society, and the widening gap between the rich and the poor

The impact of debt on my country has been mixed. Therefore the long-term gains are not quite established. For instance, the Structural Adjustment Program in Nigeria, proposed by the World Bank Group. It targeted reduced inflation, and increasing the productivity base of the country. However, critics argue that its focus on capital led to the opposite effects. As there was a plenty-fold devaluation of the Naira, and increased inflation. While it was focused on creating infrastructure like roads, it should have also focused on developing Human Capital to match the returns on investment of the infrastructure.

Debt & Aid Versus Development

Debt that is not adapted to the context of the Nigerian economy, continues to remain counterproductive. Otherwise, it becomes a policy tool by international financial institutions, mainly to further the economic interests of international financiers.

If debt is focused on development objectives, that outweigh economic interests the returns of investment will lead to an improved quality of living for citizens of developed nations.

On the other hand, aid fighting for polio eradication and creating vaccines has led to reduced mortality rates. Vaccines have been suitable for the African context in combating diseases like small pox; where health infrastructure is poor. Organizations like GAVI have been at the forefront of rallying resources for vaccines. This is particularly important because mechanisms are put in place for reducing the costs of life saving vaccines through aid.

The metrics for measuring development is a part of the problem

The widening gap between the rich and poor in my country is increasing. The outlook towards life promotes being rich — in terms of accumulating resources, as opposed to value for development and human lives. In recent times, 2 young people have emerged rich from fraudulence — one profiled by Forbes, and another currently facing charges by the Arab government. The metrics for measuring development have to be recaliberated to focus on human development.

The conditions of living in my country are so harsh that it is deemed normal. For instance, the State government once implemented a policy to remove okadas within a very short notice. Okadas are commercial motor cyclists who come from rural areas to ply city roads. They help citizens maneuver through the traffic jams and lessen commute time. I am of the opinion that the notice was too short, to remove people’s source of livelihood. Not to mention those who commute with Okadas to get to their jobs. It shows that the government is oblivious of the needs of the average citizen — the cyclist and passengers. Governance or development that does not seek to serve the needs of the people is misguided. And citizens, who are crippled to the point that they accept ‘harsh’ as ‘normal’, will soon become a resistance.

(Excerpts from an Op-ed for my school work.)

Reference:

African Technology Forum. (n.d.) Structural Adjustment is the Wrong Policy. http://web.mit.edu/africantech/www/articles/PlanningAdjust.htm