The Effect Of Poverty Alleviation Program On Economic Development

The Effect Of Poverty Alleviation Program On Economic Development
Chapter One
Introduction
1.1 Background of the Study
Poverty alleviation is one of the most difficult challenges facing and country in the developing world where, on the average, majority of the population is considered poor. Evidences in Nigeria shows that the number of those in poverty has continued to increase. For example the number of those in poverty increased from 27% in 1980 to 45 in 1985 and to 67% in 1996, by 1999 it increased to more than 70% (Ogulumike, 2001) poverty alleviation programme in Nigeria are means through which the government high incidence of poverty in the country has made poverty alleviation strategies ranging from operation Feed the nation of 1978, the Green revolution of 1982, the directorate of foods, Roads and Rural infrastructure DEFRI, then National Directorate for Employment NDE, poverty alleviation programme, PAP up to the National poverty alleviation programme, NAPEP were all attempts.
The alleviation of poverty is one of the most difficult challenges facing any country in the developing world where on this average majority of the population is considered poor. In Nigeria evidences have been shown ;that number of those in poverty increased from 24 percent in 1980 to 46 percent in 1985, the ratio increase to 53 percent in 1996 and rose steeply thereafter, reading an estimate to million people or 67 percent of the population in 1999 with these figures, Nigeria now accounts for needy one fourth of sub-square Africans population (Global Economic Prospects 2001). In the past poverty has been regarded as a rural phenomenon, in Nigeria, but recent studies have concluded that urban poverty has gown faster than rural poverty, owing largely to the massive migration from rural areas to the citizens, with the incidence of urban poverty almost matching that of rural poverty (World Development Report, 2001).
The poor in Nigeria have limited access to savings and credit facilities, good roads, pipe borne water, innovative technology and out put markets. They are predominantly in the agricultural sector, and in petty trading teaching utilizing traditional input, moreover female headed households, widows and single mothers are particularly vulnerable to poverty. Consequently the federal government has in recent years macro policy of government. Additionally, the multilateral financial institution such as the international monetary fund.
The Nigerian State had been hit by the twin problems of poverty and under-development. This may be attributed to a number of factors, some of which are mismanagement of human and material resources, indiscipline, lack of political will by the government of the country beginning from the post-independence and present-day Nigeria.
Rather than tackle development and poverty alleviation in the society policy makers or politicians appeared to have converted leadership positions and public offices into avenues to squander money, embezzlement, corruption, money laundering abroad, to the neglect of the suffering masses and development. As a result of these underdevelopment and poverty in the land, the country has woken up to witness anti-social activities and vices like armed robbery, cultism, drug trafficking, prostitution, child labor and trafficking, ritual killings, political thuggery and assassinations, etc. This phenomenon has left the country highly underdeveloped socially, economically and technologically. This has created a situation of mass unemployment and other social vices articulated from the foregoing.
Highly skilled trained manpower and infrastructure facilities are either under-utilized or non-existent. The worsening economic condition prompted the introduction of economicstabilization act of April 1982 with minimal involvement of non-governmental institution. The various government programmes aimed at eradicating or alleviating poverty have not stood the test of time, as they have not actually impacted positively on the people. When the former president, General Sanni Abacha took power from chief Earnest Shonekan in 1993, he introduced other poverty alleviating measures like Family Economic Advancement Programme (FEAP). However, upon coming to power in the new democratic order in 1999, the Obasanjo administration in an effort to alleviate the suffering and poverty in the land, introduced the National Poverty Eradication Programme (NAPEP).
However well intentioned, these programmes were hijacked by the politicians as the philosophy behind the setting up of these programmes were politicized, thereby undermining the objective of setting up these programmes. For instance, beneficiaries of these programmes are usually party faithful, loyalists and family members. This research therefore, identifies the problems and consequences of poverty and underdevelopment, on a developing economy like Nigeria The issue of poverty is a global phenomenon, which affects continents, nations and people differently. There is no nation that is absolutely free from poverty.
The main difference is the intensity and prevalence i.e the highest level of social insecurity, violence, social unrest and generally unacceptable low standard of living. Thus, poverty is a condition in which a person is deprived of, or lacks the essentials for minimum standard of living. Poverty has been defined as the inability to attain a minimum standard of living (World Bank Report, 1990). Nigeria with a population estimated at about 168 million, having the 8th largest deposit of natural gas in the World is also not left out of this phenomenon given its name as the giant of Africa. Nigeria is blessed with abundant resources. There are also abundant solid mineral deposits that remained largely untapped. Nigeria has been noted to be poor inspite of the fact that it has put in place a lot of plans and programs to resolve this cankerworm right for her independence, the number of those in poverty increased from 27% in 1980 to 46% in 1985, it declined slightly to 42% in 1992 and increased sharply to 69% in 1996. This is so pathetic in the sense that a very good proportion of the populace lives below absolute poverty line i.e those living on an income of less than $1 a day (Ogwumike, 2001) Despite the above statement, Nwaobi (2003) asserts that Nigeria presents a paradox.
The country is rich but the people are poor. Given this condition, Nigeria should rank among the richest countries that should not suffer poverty entrapment. However, the monumental increase in the level of poverty has made the socio-economic landscape frail and fragile. However, the above scenario has not come into being as a result of nonchalant attitude and non-recognition of the problem at hand. It has also not come by as a result of lack of response to the yearning of the poor people to be emancipated from their rather deplorable and frustrating state of near despair. As an emerging economy, government lacked capacity and resources to deal with the problems of development and international relations, their political leaders became overwhelmed by the severity of hunger, disease, illiteracy, and poverty afflicting the citizens of the country. To worsen matters most of these political leaders soon separated themselves from the sufferings of the people, engaged themselves in self-aggrandizements and became insensitive to the yearnings of their people for basic economic and social amenities instead, they frittered away their nations’ wealth in self-enrichment and engaged in worthless development programmes. Besides, the new world order that place emphasis on good governance, economic prosperity and social justice. However, the study tends to examine the effects of poverty alleviation programme on economic development.
1.2 Statement of the Problem
In 1980 poverty was largely a rural phenomenon from records, 28 percent of rural people were under poverty as compared with 17 percent in 1980’s table 3, p28 of the urban dwellers (Shaohua Chen and Martin Ravallion, 2017) “How have the world poorest fared since the early”. Generally, the estimates of poverty rates shows that for the period of review poverty incidence gap and severity seems to be positively correlated to size of households. In terms of trends in individual size, groups experienced an increase in poverty rates between 1980 and 1985, all groups with exception of the size group “20 and above”, persons experienced on increase in poverty live. Successive governments in Nigeria had collaborated with various international organizations. Notably, the World Bank United Nations Development Programme (UNDP) etc.
During the era of pre-structural adjustment planning and management, government only showed concern for poverty alleviation indirectly. The era of SAP (Structural Adjustment Programme) has marked the formulation of conscious policies effort by government towards poverty alleviation. The advent of structural adjustment programme (SAP) in 1986 brought out more forcefully the need for policies and programmes to alleviation poverty and provide safety nets for the poor.
1.3 Objectives of the Study
The objective of the study is to find out if the poverty alleviation programmes have yielded desirable result.
Specific objectives include;
- The problems millating against poverty alleviation programmes
- To suggest possible solutions that will reduce poverty rate in the state and advice the body in change of the programme to use fund allocation to them maximally.
- To know if the poverty alleviation programmeyields desirable result
- To find out if the level of rural development in the poverty alleviation programme has increased
1.4 Research Questions
- What are the problems millitating against poverty alleviation programmes?
- Are there any possible solutions that will reduce poverty rate in the state and advice the body in change of the programme to use fund allocation to them maximally?
- Has poverty alleviation programme yield desirable result?
- Has the level of rural development in the poverty alleviation programme increased?
1.5 Research Hypotheses
Hypothesis I
- H0: There is no possible solutions that will reduce poverty rate in the state and advice the body in change of the programme to use fund allocation to them maximally
- H1: There are possible solutions that will reduce poverty rate in the state and advice the body in change of the programme to use fund allocation to them maximally
Hypothesis II
- H0: There is no poverty alleviation programme yield desirable result
- H1: There are poverty alleviation programme yield desirable result
1.6 Significance of the Study
This study will be of immense benefit to other researchers who intend to know more on this study and can also be used by non-researchers to build more on their research work. This study contributes to knowledge and could serve as a guide for other study.
1.7 Scope of the Study
This study is on the effect of poverty alleviation programme on economic development in Nigeria.
The study is carried out in the Lagos metropolis only. The study will make use of both primary and secondary data. Questionnaires will be distributed and used
1.8 Limitations of the Study
The demanding schedule of respondents at work made it very difficult getting the respondents to participate in the survey. As a result, retrieving copies of questionnaire in timely fashion is very challenging. Also, the researcher is a student and therefore has limited time as well as resources in covering extensive literature available in conducting this research. Information provided by the researcher may not hold true for all institutions but is restricted to the selected organization used as a study in this research especially in the locality where this study is being conducted.
Financial constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).
Time constraint: The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.
Finally, the researcher is restricted only to the evidence provided by the participants in the research and therefore cannot determine the reliability and accuracy of the information provided.
1.9 Definition of Terms
Poverty Alleviation:
Poverty alleviation refers to the ability of human beings to lead lives they have reason to value and to enhance the substantive choices they have (Sen, 1997), which can only be realised in the context of well-functioning institutions committed to social security (Nussbaum, 2000).
Economic Development:
Economic Development is the creation of wealth from which community benefits are realized. It is more than a jobs program, it’s an investment in growing your economy and enhancing the prosperity and quality of life for all residents. Economic development means different things to different people.
Chapter Five
Conclusion and Policy Recommendations
Despite the fact that the variables used to study the incidence of poverty is not exhaustive of factors that influence poverty incidence, which is even evidenced from our explained variables.
This work therefore concludes that poverty eradication in Nigeria is a difficult and herculean task as efforts so far exerted by various past administration, has been relatively futile. Poverty has weighty consequences on the poor, the family and on the society. Once poverty is not broken; it breeds vicious poverty at higher level. It causes lack of regard for constituted authority. It breeds hunger, social rejection, and dejection and in the extreme case, it can lead to armed robbery. The issue of poverty alleviation should be taken with all sense of seriousness it deserves and not ordinary paying lip-service to it.
In view of the analysis and findings drawn from this research work, the following recommendations are put forward:
- The National Bureau of Statistics (NBS) should be well funded and managed to ensure that adequate data relating to poverty incidence are readily availability and gathered from time totime to aid uniform and consistent decisions, progress reports and speculations.
- Government policy on poverty alleviation should follow a multi- sectoral approach where all the stakeholders are given specific roles to play.
- All those likely to participate in any form of poverty reduction programmes must undergo capacity building and ethical orientation training.


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