Distress Signs of a Failing Economy

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ASSIGNMENT QUESTION:

Many world economies have manifested distress signs commonly associated with failed states. Identify these signs and explain their implication on the desired National integration and the future. -------------------------------------------------

DISTRESS FACTORS/SIGNS OF A FAILING STATE
(AS INDICATED IN THE NIGERIAN SYSTEM)

Introduction

According to a popular writer of the mid 200s, he describes the reasons why States fail when he said, “States fail because they are convulsed by internal violence and can no longer deliver positive political goods to their inhabitants. Their governments lose legitimacy, and the very nature of the particular nation-state itself becomes illegitimate in the eyes and in the hearts of a growing plurality of its citizens”. This is mainly caused by the inability to deliver the necessary Political Goods, needed by the citizenry to live a comfortable life.

He also described Political Goods as those intangible and hard to quantify claims that citizens once made on sovereigns and now make on states. They encompass expectations, conceivably obligations, inform the local political culture, and together give content to the social contract between rulers and the ruled that is at the core of regime/government and citizenry interactions. These are those service-oriented obligations that the rulers are supposed to perform for and on behalf of the ruled or those who placed them in office to represent their interest. However, shortage of Political Goods is at the core of the causes of failure in most failed or failing states.

The signs of a failing State – a government which for whatever reason is unwilling or unable to fulfill its responsibilities to a particular country’s citizenry can be referred to as failing or failed (Fr Laurent Magesa, 2011). Nigeria as a nation, has in recent times been encountering some difficulties, otherwise we can call them some signs, which some failed states around the world showed on their way to the subsequent failure of their system. These distress signs, which are now eminent in almost every areas of the Nigerian scheme of things, are enumerated below. However, the writer of this paper stands to be criticized in the case that any of the views highlighted below are not true or does not share the general view of any of the reader of the paper.

Distress signs of failed States as evidence in the Nigerian economy today can be grouped into different scopes according to Economic, Political, Social Factors, as illustrated below:

Economic Factors/Signs

1. Unstable Economy Index: Many will not exactly agree with this point in the sense that the leaders of the Financial/Economic sector keep telling the populace that the nation has a huge sum of money in its foreign reserves. But come to think of it: if the money really exists, why aren’t we building more roads, bridges, railways, drainages and other capitals projects? The fact is that despite the huge money being derived from the Oil/Gas sector of the country, Nigeria is yet to fully utilize the proceeds economically to benefit the populace. The implication here is that should oil/gas dry up today, nothing will stop the country from failing and very drastically. 2. High level of unemployment: According to the Federal Bureau of Statistics, more than 40% of the population of Nigeria are unemployed or living below the average level of $1 (One Dollar) a day. With this level of unemployment and poor living standard, it is expedient that failure is inevitable. 3. Ever-increasing cost of living: This is the most painful sign that is eating every citizen of this country. Even when this was almost unbearable, the cost of living in the country has tripled since the removal of the subsidy on fuel products by the present administration. Also, the difference between the haves and the have-nots have also widened very bigger and wider. This is a sure sign of a failing state and it is evident...
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