4 weeks ago
46 ARTICLE AD
A Senior Lecturer at the Federal University of Kashere, Gombe State, Dr Tukur Yemi, has criticised the World Bank’s Senior Vice President, Indermit Gill, for his recent remarks suggesting that Nigeria must endure 10 to 15 years of economic hardship to achieve prosperity.
Yemi, speaking on Sunday, said that this assertion has caused considerable distress among Nigerians, who are already struggling with the effects of the petrol subsidy cuts and rising living costs.
The former Head of Department noted that Gill’s remarks, “delivered at the 30th Nigerian Economic Summit in Abuja, reflected the World Bank’s ongoing support for economic reforms that prioritise macroeconomic stability through fiscal austerity and deregulation.”
He argued that while these reforms may align with the bank’s broader agenda of promoting global economic efficiency, they often come at the expense of social welfare and equity in countries like Nigeria.
“Historically, such approaches have led to deeper inequality, undermined local economies, and heightened social unrest, as seen in several countries. Take Argentina in the 1990s, for example: Despite austerity measures promoted by international financial institutions, including the World Bank, Argentina’s economy collapsed in 2001, plunging millions into poverty and leading to one of the worst financial crises in its history,” he stated.
He cited other cases, including Greece after the 2008 Global Financial Crisis, where austerity programmes enforced by the IMF and World Bank led to severe unemployment, increased poverty, and drastic cuts in public services without achieving the desired economic recovery for many years.
He also highlighted Zimbabwe’s Economic Structural Adjustment Programme (ESAP) in the 1990s, heavily influenced by the World Bank, which led to rising unemployment, inflation, and a decline in social services, further destabilising an already fragile economy.
Yemi said these examples demonstrate how the World Bank’s focus on market liberalisation and fiscal austerity often overlooks the unique social, political, and economic contexts of the countries it aims to support, exacerbating inequality and hardship rather than alleviating them.
The scholar suggested that these challenges could be addressed through proven solutions, such as promoting economic diversity. He referenced countries like South Korea and Malaysia, which successfully built economic resilience by investing in local industries and supporting diverse sectors, including agriculture, technology, and manufacturing. This approach, he said, not only created jobs but also shielded local economies from external shocks.
Yemi recommended another solution, inclusive development, citing Rwanda’s emphasis on home-grown solutions that have significantly reduced poverty and fostered rapid economic growth. By tailoring policies to local needs, Rwanda has built a more inclusive economy that benefits all segments of society.
He also suggested “Listening to Local Voices,” pointing to Brazil’s Bolsa Família programme, which was designed with local knowledge of poverty dynamics and successfully reduced inequality by addressing root causes. This model lifted millions out of poverty through solutions tailored to specific challenges.
For Nigeria, Yemi advocated for Federal and State Governments to encourage economic diversity that promotes the growth of local industries, safeguards citizens’ purchasing power, and supports the informal economy to foster sustainable development.
“This approach will help Nigeria mitigate the impact of external shocks while improving living standards,” he added.
He continued, “Listen to Local Voices: Engage local experts and stakeholders in shaping economic policies to ensure they are context-sensitive and aligned with Nigeria’s unique social and economic dynamics. Policies arising from within are more likely to succeed because they consider local strengths, vulnerabilities, and aspirations.”
The senior lecturer emphasised that if these approaches are followed, they would promote economic stability, reduce Nigeria’s vulnerability to global fluctuations, and ensure a more stable and resilient economy.
He concluded by underscoring the importance of adopting policies that balance economic growth with social welfare and inclusivity. While the World Bank may advocate for fiscal discipline and market liberalisation, Nigeria’s needs must come first.
“We must hold our leaders accountable to ensure that local realities and human development are prioritised over external financial prescriptions,” Yemi noted.
