Oluyomi Ola-David Insights

Desperate people do desperate things. Early on in my academic journey,  I was pretty desperate to produce an output. During such an instance, there was conference on innovation coming up at UNU-MERIT. I needed to be obedient and not to rest on my hoars as a young academic. I had an idea of a paper that could fly. If my memory serves me right,  titled the paper, 'the employment effects of process and product innovation in Nigeria.' I strove and I strove and I wrote and wrote. There were some papers based on other climes that I could glean thoughts from too. I got as much useful material that I could get, did preliminary analysis and sent it off. Ultimately, the paper came back rejected for the conference.  As I went further down the academic road, I realised that paper was not original in the least. If I know what I know now I should have done a plagiarism test before sending it out. But I was very grateful I was not accepted for that conference. In the spirit of transformation,

Amongst several determinants of economic growth and development, capital plays a critical role. We can identify two broad types of capital important to any economy – physical capital and human capital. Physical capital comprises of buildings, machines, technical equipment and stock of raw materials; all of which are used in the production of goods and services. Alternatively, human capital is a term used to represent the collection of people’s knowledge, skills, abilities, and a gamut of productive attitudes. It is beneficial to the production process and valuable to those who own it. While it is important to acknowledge that all forms of capital have balancing roles, the importance of human capital over physical capital is especially worthy of note. One of the ways by which economists have emphasised the importance of human capital over physical capital is by comparing the distribution of income among those who own physical capital vis-à-vis those who own human capital. Just as

Economists are keenly interested in how income is distributed among the population. Why? It is only fair to be concerned about inequality because, the number of poor persons in country and the average quality of life depends on the equal or unequal distribution of income. Also, though high levels of inequality may lead to growth as some stages of development (see Kuznet’s hypothesis), high inequality tends to be tricky for the economy at other times. What then is inequality? Whenever there exists a disproportionate distribution of total national income among households, there is inequality. In most cases, the share of income attributed to the rich in a typical country is far greater than the share attributed to poor segments of the population. Needless to say that inequality of income is observable in every country of the world, developed and developing countries alike. However, the extent of inequality differs from country to country. For the most part, higher observable ine

Quantitative easing, QE, is a monetary policy means to an end – stimulating growth in the economy. It is an extraordinary tool employed by central banks to boost an economy when tempering interest rates yield little or no desirable results. In order to maintain satisfactory economic growth rates, a central bank may decide to raise or lower interest rates. Lowering interest rates tends to lower savings and encourage consumption spending and investment spending. In the event that a lowered or close-to-zero interest rate does not rouse aggregate demand as expected, a central bank may decide to ‘pump’ money directly into the financial system; this is what QE is about. Ordinarily, a central bank may adjust interest rates to put a check on inflation. For instance, when corporates scale back on investment due to uncertainties about the future, a central bank can reduce its lending rates. A reduction in the rate at which banks and other financial institutions may lend from the centr

Recession is costly and it happens in all countries and at various points in the global growth trajectory. A recession simply indicates a slowdown in economic activity in a domestic economy or an average slowdown in global economic activity if it is on the global scale. Broadly, a recession is characterized by a contraction in domestic output and all components of the aggregate demand function – consumption, investment, government spending and net export activity. The observable decline in real income, real GDP, industrial production, employment, sales activities across an economy could last more than a few months . It usually begins with a contraction after a peak and ends after an economy reaches a through. When severe and prolonged, recession results in a depression. An economic slowdown characterized by a recession can be triggered by a variety of phenomena. Based on observable cross-country economic experiences over time, there are several indications that a domestic rec

Developing countries, usually considered ‘latecomers’ in development, can create learning opportunities for themselves through channels of knowledge diffusion and technology transfer such as international trade and foreign direct investment.  For instance, ownership-specific advantages of multinational corporations, which make up the majority of large corporations in developing countries, could spill over to the domestic environment through consciously built learning relationships (in forms of forward and backward linkages). Mauritius is an African success story of structural transformation resulting from export-oriented FDI stimulated through the creation of special economic zones. Now that foreign investment promotion has become central to the industrial policies of most African economies, it is important to evaluate how much of the positive trends in FDI inflows are associated with local learning and improvements in local ways of doing things. Put differently, is FDI to

As I reminisce on the history of Independence in various African states, the glamour and the euphoria of liberty, with particular interest in the experience of Nigeria – the land of my birth. I am reminded of the celebration that ensued upon the expulsion of Mr. Jones and his men from the Manor Farm in George Orwell’s Classic, 'Animal Farm ’. In a speech motivating the animals to fight for their freedom, Old Major painted on the minds of his fellow ‘comrades’ a picture of a new world, which they could only access and possess after their gaining Independence from the oppressive rule of Mr. Jones and his likes. Oh how they relished the allure of freedom! Freedom from misery and slavery, which comes with an opportunity to own all they would ever produce without fear of external subjugation. Almost overnight every animal would become rich and free! Little did they know, except for the ‘cleverer’ of the animals, that following the eviction of an imposed master and a d

Against the background of the recently adopted Sustainable Development Goals, it is evident that there is a global will to make a success of the development process across countries. However, individual countries need a will to prepare for sustainable development. This speaks to the inevitable role of national development planning in the development process. While embracing market liberalization strategies and other popular policy propositions of international financial institutions, for instance, governments must keep in mind that the market does not have all the answers. Particularly so in developing countries of Africa where living standards are low, institutional frameworks are weak, income inequality is high and in-country spatial inequality is widespread. Zambia is one African country among several which has experienced woes associated with a blind adoption of ‘Invisible Hand’ policy options. Its fourth development plan was aborted at a point when it felt the time was

Beginning today Friday 25 th through Sunday 27 th September 2015, Heads of State and Government and High representatives will meet at the 70 th session of the United Nations General Assembly in New York to ratify the blue print of the post-2015 Development Agenda – Sustainable Development Goals. The 2030 Agenda for Sustainable Development focuses on transforming the world with a focus on 5 Ps – People, Planet, Prosperity, Peace and Partnership. The blueprint is indeed a product of conscientious consultations involving various stakeholders deliberating and debating various thematic and sub-thematic issues. The Task Force improved on the consultative processes that birthed the MDGs. Consequently, the SDGs are a product of wider and more inclusive consultations on elements essential to creating the World We Want by 2030. Also, in many ways the 2030 Agenda for Sustainable Development seeks to build on the Millennium Development Goals and complete what it could no