HEALTH INDICES AND NIGERIA ECONOMIC GROWTH (AN ECONOMETRIC ANALYSIS)
ABSTRACT
This research works examines the health indices and the Nigeria's economic Growth. In particular, the researcher is interested in knowing the type of correlation that exists between health indices and economic growth thereby, representing health indices such as infant mortality rate and life expectancy at birth. The researcher also represents the economic growth of Nigeria with Gross Domestic Product. A series research made into the health sector shows that the infant mortality increased at an increasing rate from the year 1990 to 2000 but has been decreasing since then. This research study also reveals that there was a continuous decrease in life expectancy from the year 2000 to 2008 .According to this research study, these two health care indicators show that there is an inverse relationship between GDP and health indices in Nigeria. Finally, this research study reveals that in order for the healthcare system to be a major determinant of the country's GDP (Nigeria), some vital roles should be played by the government at all levels such as financing the health care sector adequately, health problems should be extended to health economist and not only to the hands of health professionals and ministers, includes the training of health economics in national policies among others.
CHAPTER ONE
1.1 INTRODUCTION
Health is the ability to perform one's roles or functions. It helps us develop what we are capable of doing to society at large. Inadequate health contributed directly to redaction in productivity and loss of payment for the individuals, with disastrous consequences for the dependent class, The basic diagnostic point that good health is an integral part of development has therefore come take centre stage in development thinking; this point is due to the fact that only healthy people can earn income afford and seek medical care for themselves as well as their families, have better nutrition and experience more freedom to live healthier lives (Dr. Lius G. Bambo 2006).
It is pertinent to note that to sustain our global environment and improve the quality of living in our human settlements, we commit ourselves to sustainable patterns of production, consumption, transportation and settlement development pollution, prevention, respect for the carrying capacity of Ecosystem and the preservation of opportunities for future generations (U.N conference and human settlement ,HABIT ATII Istanbul, Turkey 1996).
In this respect there has been a growing in thrust to analyze the relationship between health and economic growth this notion was brought about by the world health organization (WHO) report on health (1999). Dr. Chris Mwrska (2005) comments of reducing poverty and achieving sustained economic growth.
From this argument ,world health organization (WHO) urge African government and their partner to design National development plan that could provide opportunities for innovative reform for health and poverty reduction within past war or crisis reconstruction and also in the emergence of new democracies ( Brundtland , 1998).
In its renewed health for all policy the organization stressed that in addition to developing sustainable health system all organization efforts to improve health require making central to development by combating poverty and aligning sectoral programme of heath(Lipson 1996,Lius et,aI1997).
As development paradigms move from a faces on economic growth to more concern for poverty and local ownership improvement in health, outcomes have gained recognition in programmme of national development and civil society participation identifies as the largest single factor in development (Wolfenson, 1999 .world Bank 2000) .The World health organization (WHO) has constituted a commission on macroeconomics and health (CMH) with the task of conducting the needed analysis of how health related to macroeconomics and development issues.
Health indices are crucial part of economy development, especially in the developing countries .Health indices combine changes in both quality of life (QOL) and life expectancy (LIFEPEC).Health indices such as quality of life and life expectancy, infant mortality rate (IMR), disability adjusted life expectancy (DALE), material mortality rate(MMR) death indicators or health indi.ces of an economy are being provided solution to through three basic health sectors of the economy which are :secondary health care, primary health care and tertiary health care .All these sectors through their functions provides adequate measure to increase the labour force of the nation and invariably the level of production in the country . Therefore, it is necessary to appraise health indices in Nigeria as a important factors in her economic growth process.
1.2 BACKGROUND OF THE STUDY
Available resources are not always reliable accurate, adequate credible to tackle the priority public health problem in Nigeria .These resources are not accurate and are inadequate to lay down value judgment about the health problems in Nigeria demographic data such as census ,health survey examples are census other demographic data health survey e.t.c. are unreliable.
However, it is estimated by the united Nations that about 20%of Africa's population reside in Nigeria and that over 50% of African investment is in its most populous nation( Chinsmnan,1998) .In spite of substantial economic progress and social advancement in the past thirty years ,there is still much human suffering and setting a development agenda that meets the need of its citizenry in a cost effective and equitable way about 48.50/0 of the Nigeria population lives in absolute poverty (defined as earning less than S 1.00 per day ) with about 80% of the poor residing in the rural area (UNDP 1998) .The gross national product (GNP) has declined from S1.00 in 1980 to S260 in 1995 ,placing Nigeria among the 20 poorest countries in the world (UNDP 1998) .The quality of life indices recorded in 1980 was 38% in Nigeria ,the united Nation Department programme (UNDP) and human development index (HDI) for 2000 placed in Nigeria 151 of 174 countries assessed bagging behind Cameroon .Gambia, Ghana and Zambia without her National and human resource. Whilst gender development index (GDI) is a little better to 124th position .Yet this is a country that ranks 6th and th as oil exporter and production and ranks 10th as the most populous country in the world,
HUMAN DEVELOPMENT INDEX IN NIGERIA 1960-2000
1960
1970
1980
1990
1991
1992
1993
1994
1995
1996
1997
1998
2000
0.18
0.23
0.30
0.32
0.24
0.35
0.25
0.35
0.40
0.40
0.40
0.38
0.30
Source: UNDP, Human Development Report, Nigeria (2000)
Human Development Report ,Nigeria (2000) figure from the federal ministry of health indicate that infant mortality rate is 89.3 per 1000 live birth and under .Five mortality rate is 92 per 1000 live births for the male child and 174 per 1000 live births for the female child .Life expectancy rate dropped by 52years,Adult literacy rate 59% for male and 39% for female to 47.9 years for male and 49.1 years for female in 2001 only 49% have access to safe drinkable water and 56.3% access to organized health care service UNDP 1998) .Also according to NHDR(2001) the life expectancy rate for an average Nigeria stood Brutish at 51years at birth .The material mortality rate (MMR) of 800 per 1000 live births is one of the highest in the world .
All the above threatening figures put together is due to the level of poorly planned, inadequate regularity of Nigeria economy .Beside the lackadaisical attitude of the government towards health development in Nigeria and these seem to establish the inescapable picture of a country that is one of the poorest in the world .
In conclusion the above presentation, point s to the critical stance of the Nigeria economy and therefore call for giant policy measures to revamp booster and booster the economy.
This however requires constructive macro-economic policy approaches that will seriously alleviate poverty, redistribution of income and stimulate investment and output growth.
The adoption of the structural Adjustment programme (SAP) in 1986 was followed by three years rolling plan (l990-1992).In 1988, the vision 2010 document was development, and in 2005, the National Economic Empowerment and development strongly 2003-2007 was put in place and various policies also exist between 2003 -2007 .The nutrition policy .National policy on woman, universal basic education (UBE) and micro-credit scheme in Nigeria.The common object of the development plans was how to achieve a free and democratic society, a united strong and egalitarian society and self reliant Nation: a great and dynamic economy and a land of bright and full opportunities and to it all, improve basic education and health of the population is seen as cornerstone of economic growth and social development.
1.3 STATEMENT OF THE PROBLEM
Undoubtedly, the experience of Nigeria economy is one trapped within the orbit of widespread poverty. organisation, financing and allocating provision, and health service. The percentage of allocation of health has always been about 2.3% of the national budget, although this has increase marginally in recent time.
Funding for the sector come largely from government ,more specifically the federal government .According to the World Bank the basic spending per capital for the health in Nigeria is less than US S5 dollar and can be as low as US 82 in some part of the country .The federal government health recurrent budget show on upward trend from 1996 to 1998 ,a decline in 1999 and a rise in 2000.The bulk of health recurrent expenditure went to personal and construction of higher technology hospital that were of various stages completion.
Beyond budgeting allocations another of the health sector in Nigeria is the gap between budgeted figure and the actual fund released from the treasury for health activities .In some specific case statistic show that the actual amount released from the budget is Iowa s30-40% in a year.
This has therefore further heightened the need to support the development and refinement of National health policies so as to track the source ,flow funds and take adequate measure within the heath sector so as to ring about economic growth in Nigeria.
1.4 AIM AND OBJECTIVES OF THE STUDY
The aim of this study is mainly to examine the relationship between health and economic growth in Nigeria
Objectives of the study include:
i. To make value judgment on the impact of health as an important aspect of economic growth in Nigeria
ii. To analyze the Nigeria health, financing reform
iii. To discuss the benefit of the world health organization among others to the economic growth of Nigeria
iv. To make suggestion to appropriate authorities as to how health could be effectively and efficiently utilize in Nigeria.
1.5 RESEARCH QUESTIONS
In this regard the following research question would guide the study
i, How the health system is organized structure in Nigeria?
ii. What is the impact of health on the economic growth of Nigeria?
iii. What are the major problems in Nigeria health care system?
iv. What is the importance of health financing reforms in Nigeria?
1.6 RESEARCH HYPOTHESES
Hypothesis One
Ho: That infant mortality rate has a negative effect on Economic growth of Nigeria
Hi: That infant mortality rate has a positive effect on Economic growth of Nigeria
Hypothesis Two
Ho: That life expectancy does not have any significant impact on economic growth of Nigeria
Hi: That life expectancy has significant impact on economic growth of Nigeria.
1.7 SIGNIFICANCE OF THE STUDY
Fundamentally, the study shall examine the relationship that exists between heath and economic growth in Nigeria.
Also, the study shall critically appraise the health financing reform and such raise critical issues that concern it
Lastly, the study would add to the existing literature of the impact of health system on economic growth of Nigeria.
1.8 SCOPE AND LIMITAION OF THE STUDY
The scope of this study shall be limited to the empirical impact of health care system on the economic growth of Nigeria and shall be restricted to the period of l8years. The scope of this study shall cover the heath financing reforms in Nigeria as well as the current issues relating to it. However, the study shall be limited to the impact of heath care system on the economic growth of Nigeria and shall be restricted to the period between (1990-2010). One major limitation of this health system is that some of the demographic data gathered may not be comprehensive and can hardly be relied upon. However, the study shall concentrate on most relevant indicators such as life expectancy (LIFEPEC) rate infant mortality (IMR) and gross Domestic Product (GDP).
1.9 METHOD OF DATA ANALYSIS
The role of health system in Nigeria economic growth would be justified with the used of ordinary least square method (OLS) .Statistical package for social science (SPSS) application will be used the necessary data would be collected from secondary source such as the central Bank of Nigeria statistical reports and statements of accounts bulletins ,text .e.t.c.
1.10 ORGANISATION OF THE STUDY
This study shall be designed and contain five chapters with each chapter focusing on different aspect of reasoning. The background of the study, statement of the research problem, the objectives of the study and the methodology to be used shall be discussed in detail in chapter one.
Chapter two shall deal with the literature reviews. Chapter three shall examine the health care system in Nigeria. The manipulation of data in different ways, which is termed the methodology and data presentation, would be concern in chapter four.
Chapter five shall deal with the concluding part of the study where; summary, conclusion and the recommendation would be discussed.
