IMPACT OF MACROECONOMIC POLICY ON POVERTY ALLEVIATION IN NIGERIA

IMPACT OF MACROECONOMIC POLICY ON POVERTY ALLEVIATION IN NIGERIA (ECONOMICS PROJECT TOPICS AND MATERIALS)

ABSTRACT

The objective of this study is to examine the impact of macro economic policy on poverty alleviation in Nigeria. In order to test the hypothesis formed on the study, secondary data were collected from reliable sources like CBN official bulletins FOS etc, three general models were formulated and tested using ordinary least square analysis where the relationship between the dependent and independent variables were tested. The reliability of the parameters estimated for the models were tested using T – test and Durbin Watson test of autocorrelation. It was discovered that poverty alleviation allocations increased annually. In terms of approaches to poverty alleviation, there is the need to increase the demand and therefore the prices for those factors of production that the poor own (e.g their own labour); transfer physical assets such as land to the poor, providing social services such as education to the poor and transferring current income to the poor through cash or food subsidies. All these approaches are aimed at utilized the poor’ factor endowments for improved income earnings and in living standards.

However, instead of the unemployment level to reduce in accordance with our expectation coupled with increase in level of job creation, the reverse was the case for both variables. Therefore, further observation and analysis showed that poverty level escalates year in year out, despite the fact that poverty alleviation fund allocations are intensified annually.

CHAPTER ONE

1.1     INTRODUCTION

Fundamental, poverty IS often described as the state or condition of living in which people have little or no money, assets, or means of support. Some development economists define poverty with particular reference to basic human needs which the individual must have in order to survive a family may be said to have been in poverty when it is unable to satisfy its basic needs. The basic needs concept in its restricted sense is concerned with food, clothing and shelter. Basic needs may includes clean air and water, an adequate and balanced diet, emotional and physical security and climatically appropriate clothing and shelter.  (Burkey, 1993), Greenwald and association (1965) designed, poverty as a condition in which income is sufficient to meet substance needs; this implies that level of living standard may be considerably lower than the minimum living standard. The capital household expenditure measures of poverty showed that about 71 percent of Nigerian households are poor out ofwhich 36 percent classified moderately poor Federal Office of Statistics, 1996 (FOS).

IMPACT OF MACROECONOMIC POLICY ON POVERTY ALLEVIATION IN NIGERIA (ECONOMICS PROJECT TOPICS AND MATERIALS)