Go to AfricaBib home

Go to AfricaBib home AfricaBib Go to database home

bibliographic database
Line
Previous page New search

The free AfricaBib App for Android is available here

Periodical article Periodical article Leiden University catalogue Leiden University catalogue WorldCat catalogue WorldCat
Title:President Babangida's Structural Adjustment Programme and Inflation in Nigeria
Author:Anyanwu, John C.ISNI
Year:1992
Periodical:Journal of Social Development in Africa (ISSN 1012-1080)
Volume:7
Issue:1
Pages:5-24
Language:English
Notes:biblio. refs., ills.
Geographic terms:Nigeria
West Africa
Subjects:inflation
economic policy
Politics and Government
Economics and Trade
Development and Technology
Economics, Commerce
Structural adjustment programmes
Abstract:The IMF-World Bank economic policy packages embodied in the structural adjustment programme (SAP) of President Babangida of Nigeria provide overt encouragement to the fostering of an unregulated, dependent capitalist development model, while allowing only a supportive role for the government in a refurbished economic environment of highly reduced government ownership and control of enterprises. Inflation has assumed a doomsday scenario since the inception of the SAP in July 1986 (from 5.4 percent in 1986 to 40.9 percent in 1989). It is the principal price of the SAP measures, which include external debt management strategies, second-tier (foreign exchange market) operations, removal of subsidies on petroleum products and fertilizer, privatization and commercialization, trade liberalization, and interest rate deregulation. This SAP-induced inflation has resulted in adverse income redistribution, leading to increased personal insecurity, while heightening interpersonal and institutional tensions and deterring investment and inhibiting consumer spending. Other costs include the depletion of external reserves; a worsening balance of payments position; the diversion of managerial talent from managing production, maintaining efficiency and innovating, in favour of manoeuvring and speculation for protection against inflation. This paper recommends abandoning orthodox policies in favour of 'shock treatment' embodied in heterodox policies. Bibliogr.
Cover