Thursday, June 25, 2015

CHAPTER ONE 1.0 Introduction to roles of goverment in poverty

CHAPTER ONE 1.0 Introduction The reduction of poverty is the most difficult challenge facing any country in the developing world where on the average majority of the population is considered poor. Evidences in Nigeria show 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 46% in 1985; it declined slightly to 42% in 1992, and increased very sharply to 67%in 1996. By 1999 when the present administration came to power, estimates had itthat more than 70% of Nigerians lived in poverty. That was why this government declared in November 1999 that the N470 billion budget for year 2000 was “to relieve poverty.” Before the National Assembly even passed the 2000 budget, the government got an approval to commit N10 billion to poverty alleviation programme. In the 2001 budget, the government has increased the allocation to poverty alleviation programme by 150%. This idea of poverty alleviation was received with high hopes especially given the speed with which this present administration tackled the fuel problem as soon as it came to power. Poverty alleviation was seen as a means through which the government can revamp the battered economy and rebuild self esteem in majority of Nigerians who had been dehumanized through past military regimes. The present paper assesses not only the efforts of the current administration in poverty reduction, but also the role played by past administrations so as to identify a more pragmatic approach to poverty reduction in Nigeria. 1.1 Background of the study CHAPTER TWO 2.0 INTRODUCTION This chapter has attempted to review relevant literature. The essence of literature review is to ascertain the relevance of major contributions in an area of study and also provide indications about existing gaps that need to be filled. In this regard, this review has tried to look at the major developments in the area of poverty with particular reference to: concepts and measurement, theories, causes and effects. The review enabled the work to be properly focused and tailored towards complementing existing body of knowledge. In addition, aspects of the review considered relevant to the study were adopted. 2.1 Literature review Poverty in Nigeria is explained by the combined factors of inadequate food supply and limited entitlement to food as the most rudimentary manifestations of poverty is hunger and malnutrition (Atoloye 1997, Agbu, 1997 and Aku, et al, 1997). In dealing with the problem of poverty alleviation, Archibong (1997) opined that two opposing measures (direct measures which tackle poverty issues and indirect measures of promoting welfare through economic growth) exist. The direct approach assumes that economic growth by itself is too slow to provide substantial benefits to the poor in a reasonable period. Thus, it posits that government should provide goods and services directly to the population in order to ensure that the poor receive an equitable share. On the other hand, the indirect approach is of the view that policy makers should reduce government role in the provision of goods and services and rather concentrate on increasing long - term economic growth. Archibong (1997) continued that poverty alleviation programmes adopted so far in Nigeria reflect a mixture of the direct and indirect approaches. In Nigeria, successive governments have attempted to tackle the problem of poverty through various programmes over the years having identified poverty as the main obstacle to rural development in the country (Egware, 1997 and Ekong, 1997). In a bid to tackle this impediment to rural development, the Nigerian government, responding to World Bank’s recommendations and based on its agricultural survey, embarked on the implementation of three pilot integrated agricultural and rural development projects by early 1970s in Funtua, Gusau and Gombe but later spread to other states of the federation. These projects were mainly to stimulate increase in food production and enhance the income of the rural population. Ekong (1997) further argued that apart from the Agricultural Development Projects, an integrated rural development strategy proposed by the United Nations made up of three main components (rural-urban integration, intersectional and/or zonal coordination, and the package approach) was adopted. This development strategy saw the emergence of Operation Feed the Nation (OFN) in 1976 which was renamed Green Revolution by the civilian administration in 1979 and the Agricultural Credit Guarantee Scheme (ACGS) in 1977. He added that this strategy failed to meet the food aspirations of the nation neither did it uplift the poor class. Other programmes specifically designed to facilitate rural development include: River Basin Development Authorities (RBDA) of 1973, the erstwhile National Agricultural Land Development Authority (NALDA) of 1991 and the Directorate of Food, Roads and Rural Infrastructures (DFRRI) of 1986. While Archibong (1997) and Egware (1997) argued that the anti-poverty effect of these projects remains marginal, Egware (1997) opined that NALDA has encouraged small holder farmers to bring more land under cultivation thereby improving agricultural output which should all things being equal, reduce household expenditure on food, thus reducing poverty. Egware (1997) continued that in addition to the above programmes, there have been special relief package projects targeted at alleviating poverty during and after the Structural Adjustment Programme (SAP) which was introduced in 1986. Such projects include the National Directorate of Employment (NDE); Family Support Programme which was later replaced by the Better Life Programme and again changed to Family Economic Advancement Programme; the People’s Bank; Community Banks; Rural Health Schemes and the Expanded Programme on Immunization as well as National Orientation Agency whose purpose among others is to mobilize and encourage the participation of rural people in their development. Specifically, an extra-budgetary relief package to the tune of N494.9 million was announced in 1989 to provide employment opportunities, health care delivery and reduce difficulties faced in transportation. According to Agbu (1997), recent efforts by the nation’s government to tackle the poverty situation have been addressed within the broader policy objectives of national development as the following targets were set in the 1996 - 1998 rolling plan. a. reduction of overall incidence of poverty to 20 per cent by the year 2010; b. ensuring adequate availability of infrastructure and access of the poor to land, credit and technology; c. ensuring increase in primary school enrolment from the current level of 69 per cent to 100 per cent and adult literacy rate from 52 percent to 76 per cent by the year 2010. Agbu (1997) however lamented that one year after these recommendations were made as part of the 1996-98 rolling plan, very little was done towards achieving these targets. This not withstanding, Ekong (1997) noted that the government formed a new approach known as the Community Action Programme for Poverty Alleviation (CAPPA) in 1997 to help alleviate poverty with the following objectives: i. improvement of the living conditions of the poor through a targeted cost-effective, demand-driven and promptly delivered programme; ii. enhancement of the productivity of the poor through skills improvement; iii improvement of the nutritional status of the poor through improved household food-security and health practices. Ekong (1997) was quick to observe that though the programme had strict and enviable objectives, neither the basis nor the framework for its adoption was clear. Available records indicate the establishment of several specific interventions by government between 1986 and 2003 to alleviate poverty. These programmes/projects include: the National Directorate of Employment, the People's Bank, the Community Bank Scheme, the National Economic Reconstruction Fund, the Better Life Programme/Family Support Programme, the Family Economic Advancement Programme, the Directorate of Food, Roads and Rural Infrastructure, the Primary Health Care, the Federal Urban Mass Transit Scheme, the National Agricultural Land Development Authority, the Nomadic Education, the Universal Basic Education, the Poverty Alleviation Programme and the National Poverty Eradication Programme (National Planning Commission 1994; Ogwumike 2001; Obadan 2001; Ali- Akpajiak and Pyke 2003). 2.2 CAUSES OF POVERTY IN DEVELOPING COUNTRIES Though poverty is said to result from many causes, Oxfam Community Aid Abroad (1992) was of the view that poverty is primarily a function of entrenched social and economic inequality at both the national and international levels. At the international level, such inequality is manifested in the areas of trading and financial system where developed countries which are in minority in the world economy enjoy affluent lifestyle at the expense of developing countries which constitute the majority. This view is corroborated by that of Central Bank of Nigeria (1998) which said that poverty results from the international economic system’s interdependency relationship where a set of countries (developed countries) gains an economic advantage over another set of countries (developing countries) for a given situation. The CBN continued that developing countries’ indebtedness, payment of increasing prices for imported inputs from developed countries as against their relative low export prices perpetuate international inequality which leads to growing number of poor people in developing countries. At the national level, inequality also exists and causes poverty especially in developing countries as argued by Kwanashie (1998:316) in the case of Nigeria that: a small segment of society through their control of state power simply expropriate to themselves the major part of the nation’s wealth which they squander. A parasitic ruling class which is incapable of investing looted resources consequently undermines the ability of the economy to grow. Through mismanagement, competition and bad government, the country is left in a circle of poverty and deprivation. In many countries of the world, macro economic disequilibrium caused by balance of payments deficits, poor fiscal management, etc, have made it necessary for them to embark on major policy reforms since these conditions on their own would still produce poverty. These reforms have led to monetary and fiscal policy measures that have negatively impacted on cost and access to credit by the poor, retrenchment, high cost of domestic production and decline in capacity utilization all of which have worsened poverty situation (Ajakaiye and Adeyeye 2001). Deng (1994) argued that economic reforms such as structural adjustment programmes have contributed to increase in poverty in developing countries as they hurt the urban vulnerable groups of unskilled and semi-skilled workers as well as public sector workers who were marginally living above the poverty line before reforms. On their part, Anyanwu and Nsoro (2002) said that policies like privatization and commercialization have not only led to greater inequality but denied majority of Africans access to basic necessities of life such as health, potable water and sanitation thereby making them poorer. In a nutshell, World Bank (2001:32) has it that: in many countries, social spending is regressive. Moreover, such investment has been less effective than expected, in part because of serious problems in quality and in responsiveness to poor people’s needs. Central Bank of Nigeria (1998) and Odusola (1997) summarized the causes of poverty to include: (a) inadequate access to income earning and productive activities such as land, capital as well as necessities of life such as shelter, health, education and safe water; (b) inadequate participation in the political process (even in the design and implementation of programmes that are meant for the poor) and absence of the poor’s influence on the potential life of their societies; (c) inadequate or near absence of developmental efforts in the areas inhabited by the poor in preference to urban and high potential areas; (d) inadequate access to markets for goods and services of the poor in rural areas due to poor road network; and (e) the effects of external economic and financial factors over which governments of developing countries such as those in Africa have no control. 2.3 EFFECTS OF POVERTY IN DEVELOPING COUNTRIES A society is likely to remain largely in subsistence production if most of its members are poverty-stricken as the poor can hardly afford capital for expansion in production. They thus resort to labour intensive production with the margin of productivity remaining low. This situation is worsened by the fact that subsistence production is not fully utilized as it is constrained by poor processing and storage techniques, unfavourable weather conditions as well as damages caused by pests and diseases. Even where some of the poor benefit from credit facilities, instead of using such loans to boost production, they are sometimes misallocated as a result of indebtedness, low educational attainment and low sales proceeds (CBN 1998, and Aku et al, 1997). Central Bank of Nigeria (1998), Aku et al (1997) further opined that poverty leads to little or no confidence in constituted authorities and this does not only generate disrespect from the poor public but also renders government policies ineffective. This is because their loyalty which is seen as the reciprocal of benefits from government remains daunted as they feel uncatered for. Some of the effects of poverty are evident in consumption, justice, health and politics argued CBN (1998). In the area of consumption, the poor obviously pay higher prices for the goods and services they consume. This is because their meagre incomes restrict them to purchases in small pieces thus preventing them from enjoying discounts which are associated with bulk purchases. The poor are not only denied justice but are easily arrested and often given stiffer penalties than the non-poor for same or similar offences. As regards health, the poor who have little or no access to qualitative health facilities also have less nourishing diets, more birth defects, accidents and disease infections than the non-poor. These in turn affect their productivity and quality of life. In politics, the poor are so unorganized that they can hardly influence any political decision or make any meaningful impact in voting for a candidate of their choice into an elective office. According to World Bank (2001), the poor are not only deprived but also seriously feel their lack of voice, power and independence. In other words, they find themselves in a state of helplessness and powerlessness. Describing the complete powerlessness of the extreme poor, Kwanashie (1998) said that in addition to the fact that most of the time they have absolutely no power to influence their destiny and thus left at the mercy of those considered powerful in the society, their inability to escape from extreme poverty condemns generations after generations to the same fate. 2.4 ROLES OF GOVERNMENT IN POVERTY ALLEVIATION • The federal government could strengthen or create: o Income and capacity supports like employment insurance, immigrant settlement, early childhood learning and child care, o Community Innovation Funds that would support place-based initiatives like pilot and demonstration projects • Provincial governments play central roles in: o Affordable housing and transit o Labour market issues like minimum wages, employment standards and training o Social assistance, education and health, child and elder care • Municipalities play at least three key roles: o They contribute valuable local knowledge and community networks o Though planning for land use, transit, public health, housing, culture and recreation and immigrant services, they frame and influence the quality of life and community wellbeing; this needs to be done through a social inclusion lens They convene and partner with the voluntary or third sector agencies who do collaborative work that can help build momentum and impact 2.5 THE ROLES OF GOVERNMENT IN POVERTY ALLEVIATION PROGRAMMES THROUGH SOME ESTABLISHED PROGRAMMES 1. AGRICULTURE The tasks of the agricultural sector (among others) are to ensure internal food security, provide raw materials for domestic industries and also contribute to the diversification of the export base of the economy. The sector has not been able to adequately achieve these tasks as it is faced with problems of storage and preservation, poor rural infrastructures and low level of technology. To tackle these problems, the government had established the Directorate of Food, Roads and Rural Infrastructure (DFRRI), the National Agricultural Land Development Authority (N.A.L.D.A) and the Strategic Grains Reserve Programme. 2. Directorate of Food, Roads and Rural Infrastructure (DFRRI) Ogwumike (1998) argued that in addition to the conventional pursuit of growth objectives, the 1986 budget radically departed from past narrow sectoral pre-occupation with mere generation of food and fibre surpluses to over-all formulation of a national rural development strategy with emphasis on the alleviation of rural poverty and enhancement of the quality of rural life. It was in the light of this that DFRRI was established by Decree No. 4 of 1986. The DFRRI was expected to identify, involve and support viable local communities in the effective mobilization of the rural population for sustained rural development activities recognizing the complementarities of the basic needs of food, shelter, potable water, as well as bearing in mind the need for promoting greater community participation and economic self-reliance of the rural community (NPC 1994, Ogwumike 1998). The objectives of DFFRI included the following: - assisting rural dwellers to improve the quality of their lives and enhance their standard of living; - laying a solid foundation for security, socio-cultural and sociopolitical growth and development of the country, by linking security, growth and development of rural areas to those of urban areas; - diversifying and improving rural infrastructures; - creating a deeply rooted and a self-sustaining development process predicated on effectively mobilized mass participation starting from the grassroots to encompassing the entire nation (NPC 1994). 3. National Agricultural Land Development Authority (NALDA) The National Agricultural Land Development Authority was inaugurated in 1991 but took off in 1992 with the aim of moderating the problem of low utilization of abundant land resources in the country. This programme which involved the three tiers of government and the local communities had as its target, the development of 3000-5000 hectares of land in each state between 1992 and 1994. This was to develop at least 7,500 to 12,800 farmers within the area so that they could live within the radius of 3-5 kilometres of their farmlands. Unfortunately, NALDA developed and allocated only 1000 hectares of land as composite divided into 4 hectare plots. The authority was faced with problems ranging from inability of some states to provide the required 1,200 hectares of land in a contiguous location due to shortage of funds for the execution of the authority’s activities (NPC 1994). A major shortcoming of the authority’s work was its allocation of developed plots of land to highly placed public officers and urban and rural rich individuals at the expense of the targeted rural population. The end result was that rural dwellers’ land were taken from them and handed over to wealthier personalities. 4. Strategic Grains Reserve Programme This programme was established in 1987 to help address the problem of food insecurity; minimize intra and inter seasonal variations in agricultural products’ supply; offer assistance to deserving neighbouring and friendly nations and curtail the perennial problem of post-harvest losses (NPC 1994). Though this programme was well-intended, it has not impacted on the rural farmers as they have continued to experience increasing post-harvest losses while the high rates of inflation that affect almost all agricultural products are testimonies to the fact that the issue of food security in Nigeria has remained an illusion. In summary, these agricultural related programmes aimed at poverty alleviation in Nigeria though well intended, have seemingly failed to impact significantly on the poverty situation. This may be partly blamed on failure to enlist the participation of the rural farmers in the planning and implementation processes in addition to inadequate funding. In the words of Okunribido, Amusan, Araoye and Babalola (1996), in slums and squatter settlements, many families reduce food intake from 3 to 2 meals a day with the situation worsening in rural areas where acute under nutrition is prevalent. This view points to the fact that the agriculture related poverty alleviation programmes discussed in this section have done little or nothing to ensure food security in the country. 5. EMPLOYMENT AND RURAL DEVELOPMENT In this section, we have tried to review the activities of the National Directorate of Employment, the Better Life Programme/Family Support Programme and Family Economic Advancement Programme. 6. Better Life Programme (BLP)/Family Support Programme(FSP) In the words of Ogwumike (1998), due to limited educational skills and paucity of formal employment opportunities, most women have turned to self employment as a means of supporting themselves and their families. Their activities do not yield enough to raise them out of poverty as they lack the capital, technology and management skills as well as access to credit and markets that could aid in expanding and improving their productivity and income. As a result, the Better Life Programme and the Family Support Programme established in 1987 and 1994 respectively organized cooperative societies for women to increase their access to credit, enhance their productivity and income earning potentials. Both programmes were said to have shown varied levels of success. In this direction, NPC (1994) observed that between 1987 and 1990, 150 women cooperatives were reached by the Better Life Programme in each state and by 1992, the number increased to 9,044. In addition, the BLP trained 1,444 traditional birth attendants between 1990 and 1992. 7. Family Economic Advancement Programme (FEAP) The Family Economic Advancement Programme which was seen as an off-shoot of FSP was introduced in 1997 as an economic project designed for the poor and the needy. It was meant to empower locally based producers of goods and services as well as potential entrepreneurs in the cottage industries. Thus, it was specifically aimed at facilitating the setting up of productive cottage enterprises by communities/cooperatives that were to use locally fabricated equipment in the rural areas (Okunmadewa, 1998; Central Bank of Nigeria and World Bank 1999). The rural areas were to be reached through electoral wards. 2.6 National Directorate of Employment (N.D.E) The directorate was established in 1986 with the objectives of designing and implementing programmes to combat mass unemployment, articulating policies to develop work programmes with labour intensive potentials; obtaining and maintaining a data bank on employment and vacancies in the country so as to act as a clearing house to link job seekers with vacancies in collaboration with other government agencies (NPC 1994, Ogwumike, 1998). The directorate has four (4) main programmes that according to Ogwumike (1998) do not only create jobs but also enhance productivity and income earning potentials of youths and other beneficiaries. These programmes are: vocational skill development (VSD), special public works (SPW), small-scale enterprises (SSE) and agricultural employment. On the directorate’s achievements, NPC (1994) and Ogwumike (1998) observed that over 766,783 individuals were trained in the open apprenticeship scheme between 1987and 1998; more than 106,854 persons benefited from the resettlement scheme as at 1996; the school on wheels scheme had engaged 15,317 unemployed youths as at 1994; the waste to wealth scheme benefited 6,394 youths as at 1994; and the special public works programme created jobs for more than 154,910 unemployed persons between 1987 and 1994. In addition, the small scale enterprises programme had provided loans to about 2,335 persons as at 1994. The programme has been constrained by inadequate funding, shortage of staff, inadequate vehicles and equipment for projects’ monitoring, loans coordination and recovery activities. Thus, the issue of sustainability has remained uncertain as the directorate is finding it difficult to cope with the needs of the increasing number of applicants in the face of inadequate funding (CBN and World Bank 1999, NPC 1994). However, the fact that many Nigerians have benefited from the directorate cannot be denied though it has not been able to evolve a mechanism for self-sustenance. CHAPTER THREE RESEARCH METHODOLOGY INTRODUCTION The methodology adopted for conducting this research is aimed at finding out An appraisal of the t role of government in poverty alleviation areas with references to Imo State. Research design aimed at showing the various methods and procedures of the research work. The methodology adopted for this work reflects the researchers sense of originality and power of mental enquiring. The method of enquiring data collection, questionnaire design and data analysis technique will substantiate this fact. 3.1 RESEARCH DESIGN Research design according to Osuala E.C. (2001) is the blue print or plan which determine the nature and scope of study carried out or proposed. The research design used in this project is descriptive design which seek to describe the existing status of what is being investigated and it will also help the researcher to know where the variable are gotten and how the objectives could be achieved. This descriptive approach involves the normal gathering analysis and interpretations or a set of data so as to explain the underling factors that surround the problems that triggered of the research. 3.2 AREA OF STUDY This study centres on the impact of poor revenue generation on the development of local government areas. It covers only Umuahia North Local Government in Abia State. 3.3 POPULATION SIZE Population is the number of respondents, the researcher is investigating. This also known as the universe. The population under study consists of 200 people Owerri municipal. 3.4 SAMPLE SIZE AND SAMPLING TECHNIQUES We study a sample because it would be virtually impossible to study the entire population due to constraints of time and costs. However, the sample must be representative of the population from which it is draw. In other to determine the sample size, the researcher used a 5% level of significance, the sample size was derived using Yaro Yamnane formular n = N 1+ N (e)2 Where n = sample size N = Population of the study e = level of significance/Error estimate at 5% 1 = Constant n = 200 1+ 200 (0.05)2 n = 200 1+ 200 (0.0025) n = 200 1+ 0.05 n = 200 = 133.33 1.5 = 133 3.5 SAMPLE SIZE AND SAMPLING TECHNIQUES The sample size of the study as determined from the population is 133, therefore the sample size = 133. the researcher used simple random sampling technique to select the sample from the population. 3.6 INSTRUMENT FOR DATA COLLECTION The researcher will make use of the most appropriate and suitable instruments for data collection. The instrument is questionnaire and direct interview the questionnaire will be generated in line with the research questions in a simple and clear grammar to enable the respondent understand and respond to the research questions. In this study, the researcher will also employ other instruments for data collection like personal observation and interview. 3.7 SOURCES OF DATA COLLECTION The researcher used two basic sources of data collection in the process of conducting the research, the researcher used both primary and secondary sources of data collection. i. PRIMARY SOURCE OF DATA COLLECTION Primary source of data collection are information that are generated specifically for the purpose of this research work. In this study, data were got from personal observation, interview and responses on the questionnaire. The questionnaire is a well structured one, which permit the respondents to answer (yes or no). the questions are designed in the closed ended manner in order to ensure accurate statistical evaluation. ii SECONDARY SOURCE OF DATA COLLECTION The secondary sources of data were gotten from existing information that are already written, published and unpublished that are related to the topic which includes textbooks, journals newspaper, international financial publication towards development. 3.8 VALIDATION OF INSTRUMENT According to Bowen etal and Runkel etal validity can be defined as the process of finding out the degree to which a researcher or a test indeed measures what it purports to measure. In other words the questionnaire instruments or tests or items concern the content of the variables or rational categories the researcher has identified as the element of these variables of which she feels that by using them to test her respondents, she will receive similar answers from them. By instrumentation validation, the researcher tries to show her readers that what she thought the contents of the study to mean are what the umpires have taken them also to mean. In order to establish the validity of the instrument, the researcher used the pilot test technique. According to Odo pilot test technique could be defined as the process of trying out the entire aspects of a study including analysis of the data following closely the procedures planned for the main study before launching the main study. For this purpose, the researcher selected 14 respondents identical to the proposed sample group of the main study from a population other than the main study. The researcher distributed the constructed questionnaire to them to score. She scored one the way she expected them to score. She then compared the result side by-side with each one scored by the respondent 12 out of the 14 (86%) of the respondents made definite decision on the questions. The researcher, therefore claimed that the instrument was valid. ii. TEST FOR RELIABILITY OF INSTRUMENT Odo ibid, citing Ibanga, Williams, Kerlinger, Behing, Bowen et al and Borg et al defined reliability of an instrument as a process of obtaining information on degree to which a measure will yield similar results for the same subjects at different times under different conditions on a consistent, dependable, stable, predictable and accurate way. The researcher used the test-retest process to establish the reliability of the instrument. According to Odo ibid, stated that the test-retest is a process whereby the researcher administers the constructed questionnaire to the same reliability sample group more than once with the view of discovering how consistent each element of the group is in the scoring of the instrument at those different times. The researcher wants to show the reader that she ought to trust or depend on the results generated with her instrument of the study. Measuring instrument is reliable it provides the same data when administered twice or more times in any other local government under similar conditions. The instrument was test-retest for reliability, test-retest was conducted at Owerri Municipal where the questionnaire was administered to members of selected staffs. These was retrieved, presented and analyzed. The results of the two were compared. Where the results are found to be similar, the researcher was convinced that the instrument was reliable. METHOD OF DATA ANALYSIS The data collected is going to be presented in a tabulated form with focus on the major research questions in other to enable the researcher determine the results. Data collected were analyzed by use of simple percentage analysis. The following formular was applied. f x 100 n 1 Where f = frequency of response n = number of respondents Decision Rule All positive respondents to any item are recognized as a factors. CHAPTER FIVE DISCUSSION AND CONCLUSION AND RECOMMENDATION In this chapter, the findings and conclusions in earlier chapters are summarized after which policy recommendations are provided. The recommendations are aimed at re-invigorating poverty alleviation programmes in Nigeria with particular reference to Benue, Nasarawa and Plateau states for the purpose of reversing the persistent rise in poverty incidence in these three states and the country at large. 5.1 SUMMARY The main objective of this research is to investigate and analyse with the aid of primary and secondary data the extent to which poverty alleviation programmes (specifically, National Directorate of Employment, Peoples Bank and Primary Health Care) have affected the level of poverty in Benue, Nasarawa and Plateau States. Findings obtained from the analysis have been discussed in chapters three (3) and four (4). The relationship between poverty alleviation programmes and poverty reduction has been very weak. This can be attributed to the shortsightedness and half- hearted approach by those entrusted with the responsibility of tackling this hydra-headed problem (Silas-Manner, 2003:3). This non-challant attitude explains why despite the fact that not less than ten (10) poverty alleviation programmes were established in Nigeria between 1986 and 2003, the nation's poverty level has continued to rise as indicated in table 1. It is important to note that these poverty alleviation programmes have gulped billions of naira with little or nothing to show for it. In the analysis, income has been considered as the major determinant of poverty. This implies that the large sums of money spent on poverty alleviation programmes should have been translated into enhanced income and a consequent reduction in poverty incidence. Unfortunately, the reverse has been the case as over 50% of the nation's population are currently poor and most disturbingly, apart from National Directorate of Employment's beneficiaries in Keana and Jos East local government areas, more than 50% of the beneficiaries of National Directorate of Employment and People’s Bank in all the local government areas sampled lived below the poverty line as at 2003. Even where observed improvements have occurred in the incidence of absolute poverty, such changes were found to be statistically insignificant. That is, compared to what the government had allocated in terms of financial and material resources, the improvements are nowhere near what could be termed a commensurate outcome. The statistical test enabled the research to capture explicitly the level of effectiveness of the programmes considered. In addition to the fact that the research has revealed that these programmes have not been very effective, it has also established that contrary to government claim, substantial proportion of beneficiaries of National Directorate of Employment and People's Bank have abandoned the projects they were identified with as beneficiaries. The study is made up of five chapters. Chapter one described in detail the methodology of the study which is mainly descriptive, but supported by the Foster, Geer and Thorbecke (FGT) index as well as the ‘z’ test distribution at 5 percent level of significance. The descriptive method enabled us to incorporate opinions that could not be captured by the research instrument while the FGT index was used in tracing the poverty incidence among beneficiaries of National Directorate of Employment and People's Bank. The ‘z’ test distribution has been used to determine the statistical significance of the impact of interventions through the National Directorate of Employment programmes and People's Bank loans in the six local government areas sampled. Chapter two which reviewed related literature focused on: concepts and measurements of poverty, poverty theories, causes of poverty and the effects of poverty. Specifically, the chapter highlighted that: a. there exists absolute, relative and subjective dimensions of poverty which are measured differently; b. poverty is highly associated with the interdependency relationship which exists in the international economic system as developed countries gain an economic advantage over developing countries; c. increasing poverty incidence in developing countries can be attributed to inequality where a small population of their economies appropriate wealth to themselves at the expense of the economic well-being of the majority. Attempts to reduce income inequality through fiscal policy and other measures have not yielded positive results in many developing countries including Nigeria; d. adverse impact of certain economic policies, such as structural adjustment programmes and economic management policies have also accentuated poverty; e. civil wars, armed conflicts and social unrests have contributed in deepening poverty in many developing countries; f. inadequate or even absence of basic social services, like good education, good health care and infrastructural facilities such as electricity, good roads as well as potable water inhibit productivity and has tended to make poverty a vicious circle. In effect, productivity margin remains low due to subsistence production which is characterized by poor processing and poor storage facilities as well as low education; g. poverty leads to little or no confidence in constituted authorities which could render government policies ineffective as the poor feel un-catered to. In essence, public demoralization leads to poor tax compliance and sporadic violence, which have tended to weaken governments in developing countries; h. malnourishment is common among the poor with children as the most vulnerable group in addition to their being ‘abused’, performing poorly academically and dropping out of school despite the fact that their parents are often ‘tied’ to the rich land owners in client- patron relationships; and i. high rates of mortality and morbidity are closely associated with poverty due to inaccessibility to quality health facilities. In chapter three, a descriptive examination of the performance of government poverty alleviation programmes has been presented. The poverty alleviation programmes considered in this chapter are: Directorate of Food, Roads and Rural Infrastructure; National Agricultural Land Development Authority; Strategic Grains Reserve; National Directorate of Employment; Better Life programme/Family Support programme; Family Economic Advancement Programme; Primary Health Care; Guinea Worm Eradication; People's Bank of Nigeria; Community Bank; National Economic Reconstruction Fund; Nomadic Education; Universal Basic Education; National Urban Mass Transit; National Policy on Housing; Petroleum Trust Fund; Poverty Alleviation Programme and National Poverty Eradication Programme. The analysis of these programmes revealed that: (i) though they were well intended, they failed to adequately target the poor people due to location, processes and/or mismanagement. Corruption has also been blamed widely in the literature as partly responsible for the derailment of several interventions; (ii) many of the programmes were inadequately followed-up, inadequately funded and poorly staffed; (iii) none of them had an in-built mechanism for sustenance; and (iv) in the case of National Directorate of Employment, People's Bank of Nigeria, Poverty Alleviation Programme and National Poverty Eradication Programme in which stipends were paid, intended beneficiaries were denied access to such funds while privileged members of the society and their families became major beneficiaries. Chapter four presented and analyzed secondary and primary data gathered for the study. A descriptive approach using percentages and graphs supported by Foster, Geer and Thorbecke (FGT) poverty index as well as the ‘Z’ text distribution were used in analyzing the data. An examination of the secondary data revealed that despite the existence of poverty alleviation programmes, poverty incidence continued to rise between 1986 and 1998 though it began to decline as from 1999. This supports the null hypothesis that poverty alleviation programmes have not significantly alleviated poverty in Nigeria. Analysis using the FGT poverty index indicated that except for National Directorate of Employment's beneficiaries in Keana, and Jos East local government areas, the poverty incidence among beneficiaries of NDE and People's Bank as at 2003 ranged between 54.87% and 79.03% which, going by hypothesis 1, depicts failure of the two programmes to significantly alleviate poverty. The analysis also revealed narrow coverage by National Directorate of Employment and People's Bank with urban areas benefiting more than rural dwellers which corroborate our descriptive analysis in chapter three. In the six local government areas sampled, the programmes have not been very effective due largely to non-existence of feed back mechanism from beneficiaries as they were rarely (if at all) monitored and encouraged. Generally, apart from high patronage of unsatisfactory services/facilities offered by Primary Health Care centres, the programmes studied have not been able to meet the aspirations of the poor. This is because they were not only insufficient but have not been properly managed. 5.2 CONCLUSIONS a. Poverty incidence in Nigeria should have been declining due to implementation of a number of poverty alleviation programmes between 1986 and 2003. In essence, the number of those categorized as poor should have been falling. This study did not find evidence of this in the analysis of sample data. The nation's poverty incidence and indeed poverty incidence in the three states under study maintained a general upward trend between 1986 and 1998 while the number of poverty alleviation programmes during the same period continued to increase. Though our secondary data has indicated that the nation's poverty incidence began to decline as from 1999, the situation has remained worse than what was obtained prior to 1986. b. One observable shortcoming of poverty alleviation programmes in Nigeria is that their approach is top - bottom. Policy decisions on these programmes were taken without due consideration of would be beneficiaries' yearnings and aspirations. Beneficiaries were simply informed of the activities they were to be engaged in, which presupposes that by so doing, they would get out of poverty. This has explained why according to Ali-Akpajiak and Pyke (2003), states and local government areas have been reduced to mere implementing authorities. Many beneficiaries embraced such programmes as a last resort which explains why they abandoned acquired skills for other occupations. The bottom line is that the nation's poverty alleviation programmes have not been synchronized with the needs and aspirations of benefiting individuals and communities. c. The persistent rise in poverty incidence in Nigeria since 1980s has indicated that poverty alleviation programmes have not been very effective. This is due to the fact that in addition to inadequate financial, material and human resources, public officers vested with implementing these programmes have performed below expectation as corruption and outright manipulations characterized most of the programmes. The immediate consequence has been the failure of such programmes to significantly affect the poverty situation in the country. d. In financing public projects in an economy like Nigeria where fiscal indiscipline is high, a lot of public funds are expended with little to show. The existence of numerous poverty alleviation programmes during the period of study implied huge government expenditure with highly insignificant outcomes. The expenditures on these programmes have instead furthered the widening of the gap between the rich and the poor in the society due to their misapplication. e. The nation's poverty alleviation programmes which according to Ali-Akpajiak and Pyke (2003), Obaseki and Onwioduoki (1997) were meant to impact positively on the poor did not achieve the desired goals due to faulty implementation and absence of a permanent and comprehensive policy framework as well as undue political interference. The result is that these programmes have been bedeviled by inadequate monitoring and evaluation. Even in situations where stipends and credit facilities were given to beneficiaries, it has been difficult to ‘track’ them as up-to-date records on such beneficiaries are scarcely available. Thus, the failure to effectively implement poverty alleviation programmes has not only made it difficult for them to be sustainable but has been largely responsible for the perpetuation of poverty in Nigeria. f. Majority of Nigerians are left in a circle of poverty due to mismanagement, corruption and bad governance argued Kwanashie (1998). This view has re-enforced the position of the power theory discussed as part of the literature review which emphasized that those in power amass wealth to the detriment of the masses who are the majority. As a result of this, poverty in Nigeria has remained a stable characteristic of the nation's socio-political structure. g. Finally, poverty alleviation has remained a myth more or less due to faulty formulation, implementation and their non-participatory nature. It is tragic that the civil society which normally projects the interest and aspirations of the more vulnerable group-women and children – did not play an active role in the processes of the programmes. 5.3 RECOMMENDATIONS. (i). Identifying the poor. In the first instance, there is the need for policy makers and managers of poverty alleviation programmes to identify the poor at community levels so as to direct poverty programmes and projects towards them. It is not enough to simply find out the proportion of those poor in a particular society. Identifying them and their peculiarities is imperative. Such identification could be done by, after setting required benchmark, allowing community leaders to compile and submit to relevant organs the list of those categorized as poor alongside their needs. This is because an understanding of the diverse nature of the poor and their peculiarities will provide a focus for designing appropriate programmes that will not only help them to tackle their problems but also enable them take advantage of available opportunities in their environment. In addition, the identification will, according to Echebiri (1997) aid in overall economic development planning as geographical, cultural and social differences are considered thus enabling appropriate pathway through which each community can alter economic growth and development. It is only when this is done that we can recognize the communities that need urgent attention. (ii) Participation by beneficiaries. For any poverty alleviation programme to be successful and effective, poor people themselves should have a say in the formulation and implementation of the programme. This could be achieved through the involvement of civil society and/or Community Based Organisations. It creates a sense of ownership and makes accountability possible and effective. It is necessary to involve the poor in all stages of programme cycle (from conception to inception, implementation, monitoring and evaluation). It is through full participation of the poor from the stage of decision making that their views and opinions could be taken, harmonized and incorporated with the aim of ensuring that only programmes and projects which meet their yearnings and aspirations are put in place. This approach has the potential of mobilizing individuals in the various communities to provide adequate support to priority development programmes and projects that affect their welfare. As observed by Kanbur and Squire (2001), the poor know their situations and needs better and can best contribute to the design of policies and projects intended to improve their living standard. Once they are involved, they become more committed to the implementation of the projects. Kanbur and Squire (2001) used Indonesia to illustrate that such participatory approach improved project performance between 1979 and 1990. During this period, Indonesian government allowed the key criterion for water supply and sanitation to be controlled by benefiting communities. This did not only result to a drop of cash contribution from the government and an aid organization (CARE) from about 80% to about 30% of project costs, but also enabled successful operation and maintenance of the projects. In a nutshell, the current top-bottom approach should be reversed to bottom-top approach so that the poor will be able to initiate, design, execute and manage their priorities and consequently come out of poverty. (iii). Development of human capital. Efforts should be intensified by the various tiers of government to design relevant policy measures aimed at human capital development through skill acquisition. Once this is done in consonance with individual and societal needs, people including the poor will take advantage of and control of their environment (Obaseki and Onwioduokit, 1997). The result is that individuals will improve themselves as their production and productivity could be raised especially if they are appropriately ‘remunerated’. If these happen, it will be possible for the poor to ‘grow’ out of poverty. Specifically, this will require in the words of Ogwumike (1998) the strengthening of management capabilities of Community Based Organizations (CBOs) and Community Development Associations (CDAs) through workshops and seminars so that they can perform their expected roles in all poverty programmes effectively. According to Aigbokhan (1997), Achime and Afemikhe (1997), any policy based on capacity building through human capital development for full utilization of labour resource is capable of accelerating economic growth, alleviating poverty and protecting the Nigerian economy from further distortions (iv). Provision of functional amenities. In order to raise productivity among the poor so as to alleviate poverty, the government in partnership with the private sector and host communities should endeavour to provide functional qualitative amenities which are considered as complementary factors of production. Such amenities include improved good health care system, motorable roads, potable water and electricity. This will go a long way to increase productivity and consequently alleviate poverty. Here, priority should be given to implementation of a health care policy for the poor who most of the time, are unable to pay for ‘specialized’ medical services. This is because according to Central Bank of Nigeria and World Bank (1999), investment in preventive and primary health care is capable of raising life span as well as increasing the productivity of the workforce. (v). Reinvigorating NACRDB. To empower the poor economically, the Nigerian Agricultural Cooperative and Rural Development Bank (N.A.C.R.D.B.) must be re-invigorated if it has to meet the needs of the poor in the provision of accessible credit facilities to them. Also, an enabling environment should be created by way of tax exemptions so that wealthy Nigerians can provide credit facilities to the poor. Such exemptions should be restricted to the amount of money set aside for granting credit to the poor. Provision of credit facilities to the poor, will, all things being equal, promote their economic activities, engender employment of resources and raise their level of income if properly controlled and monitored. (vi). Instituting good governance. There is the need to entrench good governance in every sphere of government activity which according to Odusola (1997) is a sine-qua-non for poverty alleviation in every sphere of the Nigerian society. Good governance entails basically, accountability, transparency, fiscal responsibility and respect for the rule of law, where public participation increases with emphasis on stakeholders' ownership of programmes and projects as well as equity by involving the poor and other vulnerable groups in planning and implementation of programmes and projects (Obadan, 1997). Here, emphasis should be on programme evaluation, whereby, the effectiveness of programmes and projects are evaluated monthly during the first one year of implementation and quarterly thereafter. Such evaluation should be done with the aid of performance audit and monitoring to find out whether or not programmes and projects are achieving stated objectives. (vii). Overhauling of poverty alleviation programmes. Overhauling of existing poverty alleviation programmes in line with the principles of National Economic Empowerment and Development Strategy (N.E.E.D.S.), State Economic Empowerment and Development Strategies (S.E.E.D.S.) and Local Government Economic Empowerment and Development Strategies (L.E.E.D.S.) has become necessary. This implies that the three tiers of government in Nigeria should cooperate and work together in the true spirit of cooperative federalism. Thus, in addition to ‘full’ local participation, partnership between civil society organizations and the governments should be strengthened so as to ensure effective popular participation in the development process. Poverty has pervaded the Nigerian economy so much that government cannot tackle it alone. In order to alleviate and possibly eradicate poverty in the country, the three tiers of government must work in partnership with the civil society if policy makers are to properly understand the concerns and priorities of the poor (Museveni 2003; Ali-Akpajiak and Pyke 2003). This participation of ‘all’ (including the poor) according to Ogwumike (2001) and Obadan (2001) will improve access of households to labour markets, create new employment for household members and thus augment households' income. As a consequence, the perception that such programmes serve as conduit pipes for national cake sharing will be discarded while public commitment to the programmes will increase the scope thereby taking care of the present problem of narrow coverage. (viii). Pilot projects. The failure of poverty alleviation programmes in the country has made it inevitable to embark on pilot projects before implementing any programme or project on a large scale. Such pilot projects should be community based and involve the development of agro-allied industries and other income generating activities. They should be best sited in poor communities and closely monitored to avoid the usual practice of enunciating ‘blanket’ policies that hardly benefit the poor (Central Bank of Nigeria, 1998; Central Bank of Nigeria and World Bank 1999). (ix). International community efforts. As the world has become a ‘global village’, whatever affects one part of the ‘village’ affects the entire ‘village’. There is thus the need for the international community to improve upon their efforts towards poverty alleviation in Nigeria. This is because according to Ogwumike (2001), the complementary efforts of United Nations Development Programme (U.N.D.P.), Department for International Development (D.F.I.D.), United Nations International Children's Emergency Fund (U

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