Thursday, May 25, 2017. 19:33GMT
Ngozi Okonjo Iweala gives expert reasons why Nigeria economy will never grow
“So, the proposals for industrial parks, industrial zones or what you want to call them as a way of kicking off development in a country fits within this context. For me, I think we should just absorb the lesson that there is no one correct answer to economic growth and development. There is no one path.
“There are some specific and fundamental principles that are important, which, if you do not observe, you will not take off. And I think, even with this, you would agree; if your prices are not right within the economy, it is still not going to work.
“And when I mean prices, I think like, if you have a distorted exchange rate regime, if you have very severe distortions within the economy, that are fundamental to macroeconomic stability, it is not going to work.
“So we can outline those principles, and say you need to observe certain principles; these are not conditionalities or 450 prescriptions we are talking about. They are just certain basic principles that underpin development,” she said.
The former Minister said the state also has a major role to play in achieving economic growth and development, emphasising that not all can be left to the market to do.
“We forget that even in those countries where the economic theories we are expounding were born and are being practised that there is an acknowledged role for the state.
“That there are market imperfections and failures, where we have to call in other instruments other than the market. These are things we need to bear in mind”, she said.
First published by DailyPost
Ngozi Okonjo Iweala gives expert reasons why Nigeria economy will never grow
“So, the proposals for industrial parks, industrial zones or what you want to call them as a way of kicking off development in a country fits within this context. For me, I think we should just absorb the lesson that there is no one correct answer to economic growth and development. There is no one path.
“There are some specific and fundamental principles that are important, which, if you do not observe, you will not take off. And I think, even with this, you would agree; if your prices are not right within the economy, it is still not going to work.
“And when I mean prices, I think like, if you have a distorted exchange rate regime, if you have very severe distortions within the economy, that are fundamental to macroeconomic stability, it is not going to work.
“So we can outline those principles, and say you need to observe certain principles; these are not conditionalities or 450 prescriptions we are talking about. They are just certain basic principles that underpin development,” she said.
The former Minister said the state also has a major role to play in achieving economic growth and development, emphasising that not all can be left to the market to do.
“We forget that even in those countries where the economic theories we are expounding were born and are being practised that there is an acknowledged role for the state.
“That there are market imperfections and failures, where we have to call in other instruments other than the market. These are things we need to bear in mind”, she said.
First published by DailyPost
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