Sunday, April 25, 2010

‘Poverty In Nigeria To Drop 50% By 2015’




Weitten by From Jerry Uwah, Washington DC Sunday, 25 April 2010 00:12  
LeadershipNigeria
920 million to remain poor || 1.2m more infant deaths may occur || Poverty in Nigeria and other sub-Saharan African countries would drop by a half to 21 per cent from its current level of 42 per cent by 2015, the World Bank and the International Monetary Fund (IMF) have said.

The federal government estimates put poverty rate in Nigeria at 55 per cent but independent observers insist that 70 per cent of Nigerians live below the poverty line.

The latest Global Monitoring Report 2010 on the Millennium Development Goals (MDGs) released at the World Bank/IMF Spring Meetings in Washington D.C., yesterday, said the estimates are largely based on the strong progress in some regions before the global financial crisis.

However, the report said that as a result of the crisis, 53 million more people will remain in extreme poverty by 2015 than it otherwise would have been. Overall, the report projects that the number of extreme poor could total around920 million five years from now, marking a decline from the 1.8 billion people living in extreme poverty in 1990.

The MDGs - a set of internationally agreed targets adopted in 2000 - measures the extent to which people across the world have access to clean water, education, food, healthcare and other basic needs.

However, the critical MDG target of reducing by half the number of people suffering from hunger from 1990 to 2015 is very unlikely to be met, as over a billion people struggle to meet basic food needs, the report says.

Both the 2008 food price crisis and the financial crisis that hit in the same year have exacerbated hunger in the developing world.

Moreover, the report notes that malnutrition among children has a multiplier effect, accounting for more than a third of the disease burden of children under age five. According to the report, for the period from 2009 to the end of 2015, an estimated 1.2 million additional deaths may occur among children under five due to crisis-related causes.

Noting that these effects might have been more serious, the report stated that pre-crisis policy reforms by developing countries, as well as strong actions by countries and by international financial institutions helped avert a much worse crisis. "Governments kept social safety nets intact (at least through 2009), and massive efforts by the international community to limit economic contraction and contagion have paid off.

"Spurred by recent strong performance in emerging economies and the recovery of global trade, Gross Domestic Product (GDP) growth in developing countries is projected to accelerate to 6.3 per cent in 2010, up from 2.4 per cent in 2009, according to new IMF projections contained in the report.

Global output, meanwhile, is projected to increase to 4.2 per cent this year, reversing a decline of 0.6 per cent in 2009.

"The international community cannot afford to be complacent, since the recovery remains fragile, with long-term implications for many of the goals, including those related to health and education," cautioned Justin Yifu Lin, World Bank chief economist.

Before the crisis hit, progress on the individual MDGs was already mixed. The proportion of children under five who are underweight declined from 33 per cent in developing countries in 1990 to 26 per cent in 2006, a much slower pace than is needed to halve it by 2015. Improvement on this target has been slowest in sub-Saharan Africa and South Asia, where as many as 35 per cent of children under five suffer from stunting.

"The crisis is hitting everyone. But for poor countries, the impact will last long after the global economy has recovered," said Lin. "Furthermore, if recovery is not sustained, continued weak external conditions could lead to widespread domestic policy failure. History tells us that the consequences for human development will be disastrous," he warned.

Thursday, April 15, 2010

Kaduna Govt Disburses N155 Million Micro-credit Loan To Traders

By Baba Negedu, Reporter, Kaduna

Special Adviser on Media and Public Affairs to the Government of Kaduna State, Umar Sani (middle); Chairman, NUJ, Kaduna State Council, Yusuf Idris (left) and his Secretary, Mr. Dominic Uzu, during an interactive forum with journalists at the NUJ Press Centre, Kaduna…recently.
Photo: Nath Jubril

Kaduna State government has disbursed N155 million as micro-credit loans to about 21,856 traders from 252 market associations in the state and called on the traders to make good use of the government assistance to them.

Governor Namadi Sambo, while issuing out cheques to the beneficiaries, disclosed that the state has concluded agreement with Access Bank to raise N1billion for the traders and with Unity Bank to also raise N1billion for farmers in the state.

Sambo, who described the state’s gesture to the traders as a poverty alleviation strategy, said the micro-credit delivery system is meant to provide immediate support to the productive sector of the state’s economy “so as to enhance their operational efficiency and eventually get such enhancement sustained.”

While congratulating the beneficiaries, Sambo urged them to judiciously use the facility by allowing it to be revolving thus paying back promptly to allow other people also participate in the scheme and restated his administration’s commitment to implementing poverty alleviation programmes targeted at the very poor in the society.
 
Sambo said, “You will recall that the first phase of the distribution of poverty alleviation materials carried out in November 2009, then about 4,950 persons benefited and very soon the second phase of the distribution of poverty alleviation materials will take place in Kachia Local Government Area and many more people are expected to benefit.

“This administration’s primary drive has been focusing on projects/programmes that touch the lives of the common man, positively making him have a sense of belonging. We are not unmindful of the harsh economic realities currently being experienced by our citizens thus posing a challenge to us to extend measures to cushion these difficulties and make life meaningful to our people. This we have identified and pursued from the inception of this administration to date.”

According to Sambo, “Today 252 associations from Sheikh Abubakar Gumi, Chechnya, Kafanchan, Sabongari, Zaria City, Tudun-Wada Zaria markets and the Central Union with a total of 21,856 members will benefit from a total loan package of N155 million through five micro-finance banks. Our support to the six market associations will also be extended to other markets in Kaduna State in the near future so that they could also benefit from the government’s good gesture in boosting their businesses,” he said.

Method of Action

The Grameen Bank's Method of Action can be illustrated by the following principles:
1. Start with the problem rather than the solution: a credit system must be based on a survey of the social background rather than on a pre-established banking technique.
2. Adopt a progressive attitude: development is a long-term process which depends on the aspirations and committment of the economic operators.
3. Make sure that the credit system serves the poor, and not vice-versa: credit officers visit the villages, enabling them to get to know the borrowers.
4. Establish priorities for action vis-a-vis to the the target population: serve the most poverty-stricken people needing investment resources, who have no access to credit.
5. At the begining, restrict credit to income-generating production operations, freely selected by the borrower. Make it possible for the borrower to be able to repay the loan.
6. Lean on solidarity groups: small informal groups consisting of co-opted members coming from the same background and trusting each other.
7. Associate savings with credit without it being necessarily a prerequisite. 
8. Combine close monitoring of borrowers with procedures which are simple and standardised as possible.
9. Do everything possible to ensure the system's financial balance. 
10. Invest in human resources: training leaders will provide them with real development ethics based on rigour, creativity, understanding and respect for the rural environment.

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