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StatiSense ® - Wale Micaiah © Nigeria Global Competitive Index: Institutions Institutions Institutions Institutions 2006 2006 2006 2006- - -2012 2012 2012 2012

Nigeria global competitiveness index institutions (2006 - 2012)

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Nigeria GCI from 2006 - 2012....Institution is the Focus.

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Page 1: Nigeria global competitiveness index   institutions (2006 - 2012)

StatiSense ® - Wale Micaiah ©

Nigeria Global

Competitive Index:

InstitutionsInstitutionsInstitutionsInstitutions2006200620062006----2012201220122012

Page 2: Nigeria global competitiveness index   institutions (2006 - 2012)

The World Economic Forum (WEF) Geneva,

Switzerland produces a yearly report to measure

countries and regions competitiveness among

Nations of the world using Global Competitiveness

Index (GCI)

This presentation focuses on Nigeria’s GCI rating

from 2006 – 2012 on the 1111stststst PillarPillarPillarPillar:::: InstitutionInstitutionInstitutionInstitution, for the

purpose of knowing how strong and viable our

Institutions are over a period of 7years as this

would help know where more efforts need to be

applied in order to achieved better growth and

development.

1111stststst Pillar: InstitutionPillar: InstitutionPillar: InstitutionPillar: Institution

Page 3: Nigeria global competitiveness index   institutions (2006 - 2012)

The 12 Pillars of GCIThe 12 Pillars of GCIThe 12 Pillars of GCIThe 12 Pillars of GCI

�Institutions� Infrastructure

� Macroeconomic Environment

� Health and Primary Education

� Higher Education & Training

� Goods Market Efficiency

� Labor Market Efficiency

� Financial Market Development

� Technological Readiness

� Market Size

� Business Sophistication

� Innovation

BASIC

REQUIREMENTS

EFFICIENCY

ENHANCERS

INNOVATION &

SOPHISTICATION

FACTORS

Page 4: Nigeria global competitiveness index   institutions (2006 - 2012)

The institutional environment is determined by the legal and administrative

framework within which individuals, firms, and governments interact to

generate income and wealth in the economy.

Institution:� Has a strong bearing on competitiveness and growth

� Influences investment decisions and the organization of production

� Helps societies distribute the benefits and bear the costs of development

strategies and policies

The role of institutions goes beyond the legal framework. Government

attitudes toward markets and freedoms and the efficiency of its operations

are also very important:

� excessive bureaucracy and red tape,

� overregulation, corruption, and dishonesty in dealing with public contracts,

� lack of transparency and trustworthiness,

� inability to provide appropriate services for the business sector,

� political dependence of the judicial system,

� improper management of public finances.

Page 5: Nigeria global competitiveness index   institutions (2006 - 2012)

In all, 21 indicators were used in measuring the strength of Nigeria’s

institutional economy:

� Property rights, � Intellectual property protection, � Diversion of public funds, � Public trust in politicians, � Irregular payments and bribes, � Judicial independence, � Favoritism in decisions of government officials, � Wastefulness of government spending, � Burden of government regulation, � Efficiency of legal framework in settling disputes, � Efficiency of legal framework in challenging regs., � Transparency of government policymaking, � Gov't services for improved business performance, � Business costs of terrorism, � Business costs of crime and violence, � Organized crime, � Reliability of police services, � Ethical behavior of firms, � Strength of auditing and reporting standards, � Efficacy of corporate boards,� Protection of minority shareholders’ interests, � Strength of investor protection

Each indicator were ranked (based on the number of countries surveyed) and scored from 1-7, 1 being the least.

� Irregular payments and bribes was not

used between 2006 & 2009.

� Efficiency of legal framework in settling

disputes – 2006 & 2008

� Efficiency of legal framework in

challenging regs. – 2006 & 2008

� Gov't services for improved business

performance – 2006 & 2011

Page 6: Nigeria global competitiveness index   institutions (2006 - 2012)

Nigeria Ranking & ScoresNigeria Ranking & ScoresNigeria Ranking & ScoresNigeria Ranking & Scores

Effort = 1 – C3/C2

Year Country Count Rank Score Effort

2006-2007 121 87 3.33 28%

2007-2008 131 103 3.33 21%

2008-2009 134 106 3.42 21%

2009-2010 133 102 3.34 23%

2010-2011 139 121 3.18 13%

2011-2012 142 111 3.31 22%

2012-2013 144 117 3.33 19%

This shows a marginal deterioration in Nigeria’s Institutional

systems with the best effort made in 2006. Even though Nigeria has

achieved a score value of 3.33 in 2012 which is same with year

2006, it posit to say, Nigeria has not experienced any growth

Institutionally while other countries have moved far ahead.

Page 7: Nigeria global competitiveness index   institutions (2006 - 2012)

Scores, being measured from 1 – 7, with 1 being the worst performance and

7 the best, it is safe to assume that a minimum benchmark should be 3.5 so

as to focus on indicators which are below this value.

The following indicators reflects areas where attention are most need:

Indicators 2006 2007 2008 2009 2010 2011 2012

Institutions 3.33 3.33 3.42 3.34 3.18 3.31 3.33

Intellectual property protection 2.96 2.94 2.94 3.08 2.88 2.78 2.89

Diversion of public funds 2.50 2.40 2.44 2.33 2.23 2.19 2.16

Public trust in politicians 2.11 2.01 1.48 1.57 1.78 1.92 2.23

Irregular payments and bribes 2.91 2.92 2.91

Favoritism in decisions of gov’t officials 2.69 2.43 2.07 2.28 2.38 2.58 2.45

Wastefulness of government spending 2.76 2.71 2.57 2.32 2.02 2.34 2.56

Gov't services for improved business

performance3.22

Reliability of police services 2.60 2.78 2.77 2.88 2.84 3.00 3.25

A closer look at the above shows a downward trend in

the scores of Indicators; Diversion of public funds, Public

trust in politicians, Favoritism in decisions of gov’t

officials and Wastefulness of gov’t spending.

Page 8: Nigeria global competitiveness index   institutions (2006 - 2012)

Indicators 2006 2007 2008 2009 2010 2011 2012

Institutions 3.33 3.33 3.42 3.34 3.18 3.31 3.33

Diversion of public funds 2.50 2.40 2.44 2.33 2.23 2.19 2.16

Public trust in politicians 2.11 2.01 1.48 1.57 1.78 1.92 2.23

Irregular payments and bribes 2.91 2.92 2.91

Favoritism in decisions of gov’t officials 2.69 2.43 2.07 2.28 2.38 2.58 2.45

Wastefulness of gov’t spending 2.76 2.71 2.57 2.32 2.02 2.34 2.56

�Diversion of public funds ------- Nigeria ranks 110/144 (2012)

� Public trust in politicians ------- 135/144 (2012)

� Favoritism in decisions of gov’t officials ------- 127/144 (2012)

�Wastefulness of gov’t spending ----- ------- 122/144 (2012)

Public Funds, Politicians,

Gov’t, Wastefulness

Page 9: Nigeria global competitiveness index   institutions (2006 - 2012)

It is also important to say that there are marginal

improvements in indicators such as:� Burden of government regulation

� Efficiency of legal framework in settling disputes

� Efficiency of legal framework in challenging regs.

� Transparency of government policymaking

� Efficacy of corporate boards

� Strength of investor protection

� Judicial independence

Nigeria achieved scores of 4.31, 4.11 & 4.36

in Efficacy of corporate boards, Efficiency of

legal framework in settling disputes and

Transparency of government policymaking

respectively.

Page 10: Nigeria global competitiveness index   institutions (2006 - 2012)

3.53.3

Average point

2012 score

Page 11: Nigeria global competitiveness index   institutions (2006 - 2012)

Institutions – Government, Churches,

IndustriesIndustriesIndustriesIndustries, and the like – have properly

no other function than to contribute to

human freedom; and in so far as they

fail, on the whole, to perform this

function, they are wrong and need

reconstruction.---- Charles Horton CooleyCharles Horton CooleyCharles Horton CooleyCharles Horton Cooley

Evidently, the Nigeria Institutions are not

contributing to the Freedom of Nigerians

and definitely need reconstruction!

Page 12: Nigeria global competitiveness index   institutions (2006 - 2012)

2008

20092010

2011

2012

2006

2007

1

2

3

4

5

6

7

Page 13: Nigeria global competitiveness index   institutions (2006 - 2012)

StatiSense ® - Wale Micaiah ©

Freely share, freely use and freely acknowledge the

source – © Wale Micaiah

Data source:

- The World Economic Forum https://www.weforum.org/

- The Global Competitiveness Index 2012-2013 data platform

Analysis by: WaleWaleWaleWale MicaiahMicaiahMicaiahMicaiah

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