Babangida issued a referendum to garner support for austerity measures suggested by the International Monetary Fund (IMF) and the World Bank, and subsequently launched his "Structural Adjustment Program" (SAP) in 1986. The policies entailed under the SAP were the deregulation of the agricultural sector by abolishing marketing boards and the elimination of price controls, the privatisation of public enterprises, the devaluation of the Naira to aid the competitiveness of the export sector, and the relaxation of restraints on foreign investment put in place by the Gowon and Obasanjo governments during the 1970s.
Between 1986 and 1988, when these policies were executed as intended by the IMF, the Nigerian economy actually did grow as had been hoped, with the export sector performing especially well, but the falling real wages in the public sector and amongst the urban classes, along with a drastic reduction in expenditure on public services, set off waves of rioting and other manifestations of discontent that made sustained commitment to the SAP difficult to maintain.
Babangida subsequently returned to an inflationary economic policy and partially reversed the deregulatory initiatives he had set in motion during the heyday of the SAP following mounting pressure, and economic growth slowed correspondingly, as capital flight resumed apace under the influence of negative real interest rates. Babangida is seen by many to have presided over one of the most corrupt governments in Nigeria, however, unlike other regimes, no ministers of his regime were convicted/tried by the courts.
Although he ran a Military Government, his government appeared to be consultative: issues were subjected to public debate, but the use to which the final recommendations were put was another matter. For instance, in setting up a 17-man 'Political Bureau' (the so-called Politburo) in January 1986, Babangida kicked off what was intended to be a national debate on the political way forward for Nigeria. The Politburo 'majority report' appeared to have been completed whilst consultations were ongoing nationwide. Curious still, the manipulation of what would be revealed as a 'minority report' made it to being the majority report.
Significantly, a member of the Politburo issued a separate report, now popularly referred to as the 'minority report'. All the members of the Politburo were promised some involvement in managing the execution of the programmes suggested, and only a maximum of four did not benefit after the report was issued. This methodology is consistent with Babangida's patron-client political style.
He initiaited the following Economic policies; Peoples Bank of Nigeria - National Directorate for employment - Road Safety Commission - National Directorate for Food Roads and Rural Infrastructure - Better Life for Rural Women - The National Economic Reconstruction Fund
No comments:
Post a Comment