CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
Poverty remains the focus of national and international development programme given its excruciating effect on development and its global dimension. In spite of the pursuit of economic adjustment programmes and the achievement of moderate growth, poverty has increased developing countries.
It has been generally accepted that although economic growth is a pre-requisite for poverty reduction, it is not by itself a sufficient condition, especially where growth is accomplished by inequality in income distribution.
Therefore, the design of the poverty reduction strategies, encompassing the adoption of programmes and provision of appropriates social safety nets which will ensure that the benefit of economic growth actually trickle down requires that the most vulnerable groups in the society be clearly identified.
The widespread nature of poverty would wide has been generating great concern for policy makers and development analysts since the last few decades poverty is a plague afflicting people all over the world. It is a considered one symptoms or manifestation of underdevelopment. Poverty is the condition that is said to exist when people lack the means to satisfy their basic needs |Encyclopedia Britannica, Macropaedia, 1976).
According to World Bank (2000), Poverty is multi-directional encompassing not only lack of income but also assets, health status vulnerability to economics and natural shocks and lack of choice in decision-making. Although, poverty is not peculiar to developing countries, its incidence has been higher in this part of World compared to the other regions. As observed by the World Bank (1988) over a decade ago, poverty in developing countries is on the rise. At present, more than one billion people in the developing countries continue to live in absolute poverty and are struggling to survive on less than one dollar per day (Akinlo, 1999).
The increasing and high level of poverty in developing countries (including Nigeria) has serious implications for the World economy. Hence, reducing poverty in developing countries has become the most persistent challenge facing the World (NGOS), and the international institutions such as the World Bank are now in the forefront of the battle to reduce poverty in developing countries including Nigeria.
In order to reduce poverty in Nigeria, many programmes and projects have been designed to tackle poverty problems. These include;
River Basin Development Authorities (RBDA)
Agricultural Credit Guarantee Scheme (ACGS)
Agricultural Development Programme (ADP)
Rural Electrification Scheme (RSS)
Better Life/Family Support Programme
National Directorate of Employment
Directorate of Food, Road and Rural Infrastructure (DFRRI)
Rural Banking Scheme (RPS) and People’s Bank.
Many of these programmes have varied on poverty reduction (Ogwumike: l999). This study assesses the effectiveness of poverty reduction strategies in Nigeria.
1.2. Statement of the Problem
Poverty has been a general problem Worldwide. In Nigeria, the trend of poverty incidence increased from 28.1 percent in 1980 to 46.3 percent in 1985, 42.7 percent in 1992 and 65.6 percent in 1996. This implies that a larger proportion of the Nigeria populace still live in poverty.
Some of the factors responsible for this lie in the nature of the socio- political and economic structures, which alienate and exclude the poor for decisions affecting their Welfare programmes are imposed from the top, with huge overheads which flavor contractors, consultants and the cronies of those in power. The politicization of policies aimed at poverty reduction and the displacement of goals and objectives of programmes designed to reduce the incidence of poverty coupled with this is problem of political instability, the rapid turnover of programmes of action and office holders, lending to the truncation of programmes midstream and unnecessary duplication and waste (Aluko, 1999).
Poverty is a serious problem in Nigeria. A large proportion of the population lack food, housing and health facilities. Surviving in Nigeria includes a daily struggle against hunger and a total back of housing and health facilities. In 1995, estimates of the Federal office of statistics put the number of Nigerians living in poverty at 48 percent and even now recent studies shows that it is 65.6 percent (United Nations System in Nigeria, 2001). The vast majority of the population in Nigeria has little or no access to social amenities.
There is no social welfare network to ameliorate the condition of the poor.
Therefore, this study focuses attention on the following areas.
1. Government effort at reducing poverty in Nigeria.
2. The success of these efforts.
3. Suggested efforts to reduce poverty in Nigeria.
1.3 Purpose of the Study
The main purpose of this is to examine the poverty reduction strategies and its effectiveness on the Nigerian economy. However, the specific purposes are as follow:
1. To identify the causes of poverty in Nigeria.
2. To examine governments poverty reduction strategies in Nigeria.
3. To use the effectiveness of poverty reduction strategies in Nigeria.
4. To identify the constraints of poverty reduction strategies in Nigeria.
5. To discuss alternative institutional structure that can assist in poverty reduction.
1.4. Significance of the Study
Poverty is an undesirable condition and whenever it exists tends to perpetuate itself. It is a living condition in which an entity is faced with economic, social, political cultural and environment deprivation to which a person, household, community or nation can be subjected.
The need for this study arises as a result of the failures of past poverty reduction programmme, due to poor implementation wrong approach to the programme design, lack of accountability, transparency, overlapping functions and inadequate co-ordination of programmes. Hence, there is a need to study the effects these programme have on the economy and provide measures to ensure better policy implementation of future project,
1.5. Research Questions
With reference to the stated statement of the problems, the research will answer the following questions.
l. Is government making effort to reduce poverty in Nigeria?
2. Is the effort yielding a positive result?
3. If yes, why and if no why?
4. What can be suggested to reduce poverty in Nigeria?
1.6. Research Hypothesis
The research hypotheses formulated were as follows;
l. Ho: There is no significant relationship between poverty alleviation strategies standard of living.
Hi: There is significant relationship between poverty alleviation strategies standard of living.
2. Ho: There is no significant impact between poverty alleviation strategies and employment opportunity.
Hi: There is significant impact between poverty alleviation strategies and employment opportunity.
3. Ho: There is no significant effect between poverty alleviation strategies and economic growth.
Hi: There is significant effect between poverty alleviation strategies and economic growth.
1.7 Basic Assumption of the Study
The study assumed that the high level of poverty in Nigeria has been trend to the failure of the past poverty reduction programmes, poor implantation of the strategies embarked on, wrong approach to the programme design failure to give proper account and inadequate co-ordination of the programme.
Hence, this study assumed that there would be reduction in the level of poverty, if the strategies adopted were properly implementation and its effectiveness will be felt.
1.8. Delimination of the Study.
This study is a macro study covering the nature of poverty and effectiveness of the various poverty reduction strategies adopted in Nigeria.
1.9. Limitation of the Study
Time and space available for the study has imposed some constraint on the researcher. Finance on it part limited the coverage of the study.
1.l0. Definition of Terms
Poverty: This is a situation when the resources of individuals or families are inadequate to provide a socially acceptable standard of living. In other word, the individuals live below the conventional poverty line demarcating the poor from non-poor (Harry Johnson, 1974).
Government: – This is a body of people who are responsible for controlling a state or a country.
Strategies: – This is the skill or method that is adopted (intended) to achieve a particular purpose.
Economy: – This deals with the relationship that exists between production trade and the supply of money in a particular state or region.
Income: – This is the money a person, a group, a country earn from work, business or investment.
Standard of Living: – This is the rate at which individual or family can cater for their needs.
Reduction: – This is an act of making an amount, quantity price e.tc. Less than their originals.
Destitution:- This is a situation of lacking necessary materials in life or to be used to carry out a project.
1.11 Summary
The chapter reveals the background, knowledge and views on the programmes and projects designed to tackle poverty problems. The objective and significance of the study was stated.