Economic crisis is a situation in which the economy of a state or country goes through sudden or unexpected downfall and this is caused as a result of financial crisis. Financial crisis is that is used to refer to a number of circumstances where by some financial assets go through a sudden or unexpected loss in value. In the 19th and 20th centuries, many financial crises were as a result of some banking panics and many recessions coincided with these panics. Financial crisis presents itself or appears in many different forms such as: stock market crashes and the bursting of other financial bubbles, currency crises (like what is going on in Europe currently. Especially in Spain and Greece (NEWS, 2012)), and sovereign defaults. Financial crisis …show more content…
One of the countries where this situation is at an intense level is Nigeria. The economic crisis in Nigeria is provoked by certain factors such as poverty, terrorism in Nigeria, mismanagement of natural resources, corruption, unavailability of constant power supply and spread of diseases leading to low investment. These factors are generally known to be the major causes of economic crisis in Nigeria. I would therefore like to further elaborate on these salient points. The first major cause concerning economic crisis in Nigeria is poverty. The federal republic of Nigeria has a population of over 160 million being the largest in Africa. Despite Nigeria’s vast agricultural resources and oil wealth, poverty has been widely dispersed all over the country and has elevated seriously since the late 1990s. About 70% of Nigerians live on less than 1.25 us dollars a day. The rural areas in Nigeria, especially, are the areas that experience the wrath of poverty the most. As the population rises and forces pressure on diminishing resources , elevating environmental challenges continue to threaten and put food production at risk. …show more content…
Terrorism in Africa is currently occurring at a very high rate and Nigeria the country where it occurs the most. Foreign business and investors that have always been major contributions to the country’s economy are therefore moving out of the country and ceasing all their operational activities out of fear. This would therefore mean that the country is loosing a very great percentage of its economy and is therefore experiencing severe economic crisis as a result. The terrorism in Nigeria has recently worsened with the evolvement of an Islamic group that recruiting soldiers and creating an army and who only believe in violence. They indulge in all kinds of massacres such as suicide bombings, kidnapping, destroying state property such as bridges, schools, hospitals etc. As Result of this, huge of many, basically a greater part of the country’s budget that has been set aside for developmental purposes, has to be put into and used for maximum security in order to protect and save the lives of the country’s citizens. The country therefore does this at the expense of its own economy and what is left after this is therefore very little and not enough to even guarantee a stable economy. The country also has to spend a lot of money trying repair, renovate, rebuild and replace the destroyed property as a result of the terrorism and this therefore becomes a serious economic challenge. It
The financial crisis of 2007–2008 is considered by many economists the worst financial crisis since the Great Depression of the 1930s. This crisis resulted in the threat of total collapse of large financial institutions, the bailout of banks by national governments, and downturns in stock markets around the world. The crisis led to a series of events including: the 2008–2012 global recessions and the European sovereign-debt crisis. The reasons of this financial crisis are argued by economists. The performance of the Federal Reserve becomes a focal point in this argument.
Economic ways started in the nineteenth century, still have a hold on the countries of the sub-Sahara today. These countries are all impoverished and have seen horrific civil wars, however, the general consensus is that they are making slow improvements in their economy. The starvation, overpopulation and health problems are still very evident. Perhaps continued assistance coupled with education and protection will keep them on the road to stability and more rewarding lives for their citizens.
All financial crises can be related back to the idea that people think they can spend more than they have. The start of the Great Depression can be attributed to many variables such as the wealth gap where the wealthiest people made the most profits. Many people viewed the 1920’s as a very prosperous time but in reality the income was unevenly distributed.
The financial crisis occurred in 2008, where the world economy experienced the most dangerous crisis ever since the Great Depression of the 1930s. It started in 2007 when the home prices in the U.S. Dropped significantly, spreading very quickly, initially to the financial sector of the U.S. and subsequently to the financial markets in other countries.
World Food Programme. (2013). Comprehensive food security and vulnerability analysis (CFSVA): Uganda. Retrieved from http://documents.wfp.org/stellent/groups/public/documents/ena/wfp256989.pdf
This paper provides an overview of the crisis, outlines the major causes of the crisis, examine alternative solutions to the problem
Despite the numerous wealth generated on a daily basis from oil exportation over the years and the vast amount of untapped resources laying in commercial quantity, the country does not have a single or recognize means of directly addressing the welfare of its citizenry. Only the present democratic administration has promised to execute out a compulsory cash transfer of N5,000 to the poorest 25 million Nigeria (based on some conditions), pay graduating corp members some stipends for a year and design a one-meal a day for public primary school
Eurozone crisis can be seen as the most important economic problem of the European Union in the history. Because of that crisis the currency union have faced the possibility of separation which is an extremely critical issue not only economically but also politically. Until the subprime crisis which became prominent by the bankruptcy of Lehman Brothers in 2008, the economic level of the EU members were similar. When the bankruptcy occurred those countries started to differentiate in a very significant way. Total government debt and also problems of banking sector lead many countries to negative GDP growth, high unemployment rates and more importantly social unrest.
The largest petroleum-producing nation in Africa is Nigeria. The petroleum company is the main contributing factor of the GDP in the West African nation, which is also the continents, most noticeable and populous reserves. Since Nigeria was under British control it has suffered socio-economic and political adversities for decades. Corrupt domestic militias and complicity of multinational corporations have rid the nation of its natural resources. The same corporations that are ridding the land and exploring the resources have hypocritically identified Nigeria as a major concern with regard to human rights and environmental degradation. The petroleum business in Nigeria dynamically impacts its economy so much that “oil and gas exports accounted for more than 98% of export earnings and about 83% of federal government revenue, as well as generating more than 40% of its GDP.” Just to be reminiscent on this fact, the petroleum business accounts for almost the entire exporting business of a country so it raises the question of, where is the income going and how is it bring redistributed?
The question to be answered in this paper is to what extent has the resource curse affected the Nigerian economy and government? Resource curse is a term that states the observation that countries that have a plethora of natural resources (e.g. oil, coal, diamonds etc.) usually have unstable political and economic structures (Sachs, 827). Nigeria is categorized as a nation that has succumb to the resource curse as it has an abundance of, and an overdependence on, oil, and a decreasing gross domestic product (GDP) (Samuels, 321-322). Nigeria is known for its specialization and overdependence on oil and according to Ross, nations of such nature tend to have high levels of poverty, large class gaps, weak educational systems, more corruption within the government, and are less likely to become democracies (Ross, 356). The political instability and regime change in Nigeria will be observed in this paper. The resource curse has greatly weakened Nigeria as it has led to the numerous regime changes, the hindering of the nation’s democratization, corruption in the government, as well as, civil conflict.
Velde,D.K (2008). The global financial crisis and developing countries. Available at: http://www.odi.org.uk/resources/download/2462.pdf (Accessed: 5th August 2010).
Financial crises have influenced the os of financial markets in past. The most important the Great Depression in 1929-30, the 1970s inflation failures and the banking difficulties in the 1990s led to problems in the financial markets causing serious disturbance. The recent financial crisis which became known in 2007, though the roots were implanted much earlier, has been the worst situation financial markets have ever faced.
Growth in Africa is not enough for its people to grow, which is leading to poverty and hunger in Africa. Today Africa is one of the leading countries having poverty and economic problems. One half of the Africans live below the poverty line which leads to low human development in Africa. The main cause of poverty in Africa is a problem in its economic system and environmental factors. Because of poverty people of Africa remain hungry as they don’t have enough money to buy their food and their basic needs. Some of the African countries have less poverty rate than others due to good government and economic system in those countries. Most of the African is facing challenges to survive and keep their family healthy.
The objective of this report is to give understanding on the culture of Nigeria, the diversity of its people and the overwhelming struggles that exist. It also discusses the movements of the people, and how kingdoms arose and grew, and the expansions in their industries, in petroleum and their rural contributions, also the demographic features of the population of Nigeria, including population density, ethnicity, economic status, religious affiliations and added aspects of the population, and how Nigeria incorporates a more complete range of climate settings, and the environmental dangers the lands face, with corrosion, and the campaigns local and national, that fight to protect land from industrial development. The country's land that varies greatly, with lowlands in the south, hills and plateaus in the central region and plains in the north, with coastal swamps and tropical forests take over the southern lands, while the north is mostly savannah and semi-desert.
A large amount of people in poverty live on the streets of Ghana. The economy is steadily increasing about 7 percent each year. Poverty continues to be a consistent problem in specific areas of Ghana. The poverty rate in urban areas at 10.6 percent is nothing related to 37.9 percent in rural areas. Almost four million children continue to live below the poverty line, and the poverty reduction is not keeping up with the population growth. The population in Ghana is 28.21 million. A child in Ghana is about 40 percent more likely to be in poverty than a Ghanaian adult. The main causes of poverty in Ghana are lack of education, poor environment, bad character or morals, ignorance, greed and selfishness. Poverty in Ghana is also politically, culturally, and religiously driven. At least 45 percent of the population in Ghana lives on less than $1.25 a day. The highest proportion of food in households is in the upper east region, where 27 percent of households are at risk of hunger. Many of the major