1. ECON 408 SPRING 2016 MAJOR DEVELOPMENT CHALLENGES IN NIGERIA. MORAH CHIDIEBUBE VICTORIA 127176 SOOMON CHIEBUKA ONUOHA 138022 BUNMI ADEJOKE ADERANTI 128727 EJIRO SAMUEL EHINMISAN 128385

2. OUTLINE INTRODUCTION INCOME AND INEQUALITY CORRUPTION HEALTH EDUCATION (HUMAN CAPITAL) CONCLUSION

3. 36 states. POPULATION :173.6 million GDP : 521.8 billion GDP per capital : 3005.51 USD HDI : 0.514 out of 1 Pop below poverty line: 53.5% NIGERIA This case study is to view our country through the theoretical models using statistical methods.

4. INDICATORS AND DEVELOPMENT INCOME AND INEQUALITY ECONOMIC DIMENSION: LESS INCOME CONSUMPTION DEMAND (AD) GDP (WHOLE ECONOMY) DECLINE IN ECONOMIC GROWTH PEOPLE’S WELFARE (INDIVIDUAL LEVEL) EQUILITY (POOR > RICH) CONSUMPTION GDP CORRUPTION POLITICAL DIMENSION: CORRUPTION POOR GOVERNMENT INSTITUITIONS AND POLICIES RESOURCE MISSALLOCATION WELFARE HEALTH SOCIAL DIMENSION: LIMITED SUPPLY OF HEALTH FACILITIES CRUDE BIRTH MORTALITY LIFE EXPECTANCY WELFARE

5. EDUCATION SOCIAL DIMENSION: LOW EDUCATION LITERACY KNOW HOW STANDARD OF LIVING WELFARE INFANT MORTALITY ECONOMIC DIMENSION: SKILLED LABOR PRODUCTIVITY GDP DECREASE IN ECONOMIC GROWTH A more developed country: is a country where most of the population can read, write and possess skills. There is availability of enough health facilities which aids survival and lessens death. They earn enough to consume, invest and save with a little gap between the rich and poor. More so the decision of the government favors the general public.

6. Accordıng to harrod-donar growth model: a functional economic relationship in which the growth rate of gdp depends directly on national net savings rate and inversely on national capital-output ratio. Saving is influenced by income and its distribution. 100 line of equality 80 60 40 Lorenz 20 10 0 10 20 40 60 80 100 percentage income of recipient INCOME AND INEQUALITY Percentage of income GINI INDEX IN NIGERIA = 48.8% (2013) GINI INDEX IN CANADA = 31.4% (2010) GNI PER CAPITAL IN NIGERIA= $2990 GNI PER CAPITAL IN CANADA =$51,630

7. Accordıng to NEOCLASSICAL COUNTERREVOLUTION : ıt states that underdevelopment ıs due to poor resource allocatıon caused by ıncorrect polıcıes, too much state ınterventıon and corruptıon 2015 Scored: 26 Ranked : 136/168 NIGERIA corruptıon ındex The scale ıs from 0-100 0= hıghly corrupt 100= no corruptıon CORRUPTION

8. HEALTH AND EDUCATıON Accordıng to tradıtıonal neoclassıcal growth theory output growth stems up from the followıng : labor quantıty and qualıty, ıncrease ın capıtal and ımprovements ın technology. Literacy: definition: Age 15 and over can read and write. total population: 61.3% The diagram shows the life expectancy of Nigeria as at 2012.

9. FINDINGS AND CONCLUSION. After the studies we still maintain that Nigeria is a LESS DEVELOPED country. The two approaches used (harrod-domar model and traditional neoclassical growth theory) increased our understanding about the development and growth level of Nigeria Conclusively, we agree strongly with Harrod Domar because our plight today is due to the fact the we didn’t make provisions for the rainy day when we were in boom.