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Monday,Jul 26,2010
Why the Government May Be Wrong on The New ‘Minimum’ Wage
The recent 63.7 percent increase in the national minimum wage, from N11,000 to N17,000 (or is it N18,000?) has gene....
By Jideofor Adibe
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Saturday,Jul 17,2010
Between Octopus Paul And Nigerian Juju Men And Pastors
One of the celebrities thrown up by the just concluded World Cup tournament in South Africa is the German Octopus P....
By Jideofor Adibe
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Sunday,Jul 11,2010
Igboland: When Did Things Really Begin To Fall Apart?
That the level of insecurity in Igboland has reached unacceptable level is no longer news. In virtually all parts o....
By Jideofor Adibe
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Wednesday,Jun 30,2010
Jonathan, Babangida and the Sword of Damocles
In the Sword of Damocles, the Roman politician and philosopher Cicero tells the story of Dionysius II, a king who r....
By Jideofor Adibe
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Wednesday,Jun 30,2010
Letter To “Father No Shaking” On The September 2010 Festival Of Oath-taking In Umuagwu-Aro, Osuh-Owerre, Isi-ala Mbano Local Government Area (LGA), Imo State
Dear Rev. Father, Greetings! I have to address by the above name since it is the name you are commonly kn....
By Odimegwu Onwumere
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Wednesday,Jun 23,2010
Attahiru Jega and the Search for a Nigerian Hero
Nigerians seem to be in constant search for public heroes - competent little messiahs who will not hesitate to put ....
By Jideofor Adibe
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Thursday,Jun 17,2010
The Return of Mallam Ribadu
Mallam Nuhu Ribadu, the one time strongman of the financial crime buster EFCC, who sneaked out of Nigeria into self....
By Jideofor Adibe
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Thursday,Jun 17,2010
Too Many Captains…
Two major attributes that have been quite easy to discern about President Goodluck Jonathan are: one, he seems to l....
By Ijeoma Nwogwugwu
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Thursday,Jun 10,2010
Should Suspects Be Paraded?
The above question is generating increasing furore among our intellectuals, and ‘beer parlour’ politica....
By Jideofor Adibe
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Thursday,Jun 10,2010
Nigeria: A Two Party System By Legislation?
Perhaps enamoured by the seeming ease with which two dominant political parties trod the political landscape of, at....
By Joel Nwokeoma
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World Bank and Africa’s Quest for Growth
By:
Charles Malize
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Governments in Africa face a major hurdle of addressing issues on good governance, transparency, accountability, and respect for the environment. These items seem to be a major concern and impediment to growth in the region.
According to World Bank, African economies will grow by an average of 1.7 percent in 2009. This is a downgrade from an earlier forecast of 3.5 percent and is as a result of the recent global recession.
The projected growth according to the bank for the continents in 2010 will be 2.5 percent, down from an annual average of 5.8 percent over the last decade. The continent growth and the need to remain competitive on the global stage require the strengthening of the commodities sector (especially agricultural), the resumption in private capital flows, and investments in infrastructure.
Africa's economic recovery can be quickened if governments invest in core infrastructure projects. Efficient management of resources by governments should enhance important areas such as public investment in human capital development and economic infrastructure.
A key challenge remains the financing for these projects, although in recent years the region has seen investments from their governments, traditional donors like the World Bank and new partners such as Brazil, China, India, Russia and the Arab world.
In the case of China, their involvement in developing Africa's infrastructure remains a major factor although many observers on the continent complained about the Asian giant’s reluctance to ask tough questions on governance and corruption in countries in which it invests.
The negative impact of corruption on the African continent is evident as they appear reluctant to effectively tackle it. To be competitive in the new global environment, the continent will have no choice but to tackle this problem as it is the most important constraint to its development. African countries are ranked the most corrupt in the world by the watchdog Transparency International and companies frequently complain of the hidden costs of doing business in the region.
Funding
To fund its growth Africa needs the required human and financial resources to see its objectives through. In the last decade some countries in the region had their debts written off. Several debt forgiveness were in the form of debt restructuring, which in Africa always seem to have an unpleasant taste among international financial institutions.
The concern of some in the private sector is that foreign investors with exposure to local debt in the continent seems to suffer the same restructuring terms that holders of foreign debt would have to bear – with the approval of the International Monetary Fund (IMF). Their argument: this would discourage foreign investors from buying local bonds in Africa.
Before the recent global credit crisis, a number of African countries had begun turning to international capital markets. Some of the countries had planned the launching of Eurobonds. This plan was put on hold when global markets seized up and some countries with liquidity, like China, stepped back in to provide emergency help to some of the hard-hit countries.
There has been a lack of willingness for international investors to plow money back into Africa, after many pulled out as a result of the global financial crisis. Furthermore, corruption, bureaucracy and uncertainties over debt restructuring remain barriers to investing in the region, although the overall climate seems to be improving.
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