IMPACT OF MACRO-ECONOMIC POLICY ON RURAL SECTOR IN NIGERIA.
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IMPACT OF MACRO-ECONOMIC POLICY ON RURAL SECTOR IN NIGERIA.
Chapter one
1.1 Introduction
Macroeconomic policy refers to policies that aim to achieve macroeconomic objectives such as price stability, equitable income distribution, full employment, economic growth, and balance of payment equilibrium.
In her words, it refers to the fiscal and monetary policy instruments used to solve, reduce, or regulate economic problems such as poverty, unemployment, inflation, and deflation.
In Nigeria, numerous macroeconomic policies have been implemented over the years in an attempt to control, solve, or alleviate some of these macroeconomic challenges.
In 1972, the National Accelerated Food Production Programme and the Nigeria Agricultural and Cooperative Bank were founded to fund agriculture in order to alleviate poverty and unemployment.
This was followed by Operation Feed the Nation in 1976. In 1979, the Green Revolution Programme was also introduced. In fact, various programmes, directorates, and policies aimed at solving the unemployment and poverty problem were launched and established, such as Better life for rural women aimed at reducing poverty levels in rural areas;
National Poverty Eradication Programme (NAI’EP) project aimed at reducing unemployment and poverty; Bank recapitalization policy in 2005 aimed at consolidating and strengthening Nigerian banks so as to achieve and ensure a diversified, strong, and dependable
The most recent is the National Economic Empowerment and Development Strategy (NEEDS), which focuses on four core strategies: reorienting values, eliminating poverty, building wealth, and increasing employment.
Most of these macroeconomic initiatives have had little or no impact on the rural sector. The rural sector, which is the principal occupation of the population, includes fishing, farming, forest product gathering, and crafts, all at a subsistence level.
In other words, the rural sector is predominantly agricultural in character. This study will examine the influence of several macroeconomic policies now in place in Nigeria on the rural sector, as well as the impact of the recent NEEDS policy on the Nigerian rural economy.
1.2 Statement of Problem
The main issue confronting Nigerian macroeconomic policy is the existence of contradictions between macroeconomic policy objectives. This problem is not confined to Nigeria; it exists around the world.
These conflicts arise when one goal is met at the expense of another. For example, while utilising the monetary policy tool, there may be a conflict between essay and policy.
A required conflict happens when achieving one aim prevents achieving the other, but a policy conflict occurs when there is no necessary conflict between two goals but the monetary authority finds it difficult to pursue both goals at the same time.
The Philip’s curve, which represents the trade-off between inflation and unemployment, is one example of a necessary conflict.
In this case, the emphasis may be on price stability. Pursuing price stability may conflict with the goals of full employment and economic progress.
Another example is the goal of full employment and a balanced budget. Domestic and rural employment promotion policies may have a negative impact on the balance of payments.
As domestic and rural employment increases, so will income. Importation will rise in tandem with the increase in output, but at a higher pace. This will have a negative impact or aggravate the balance of payments position.
When macroeconomic objectives contradict, policymakers must make a choice. When making a decision, it is critical to ensure that an alternative goal, which would be in the national interest under the current circumstances, is accepted.
1.3 Aim and Objectives of the Study
The purpose of this study was to conduct an in-depth analysis of policymakers such as the Central Bank of Nigeria in relation to macroeconomic policies such as the Structural Adjustment Programme (SAP), Better Life for Rural Women, and the recently implemented National Economic Empowerment and Development Strategy.
The objectives are:
i. To demonstrate the effectiveness of macroeconomic policies in lowering unemployment in rural areas.
ii. Examine the effects of macroeconomic policies on rural development.
iii. To assess the current impact of macroeconomic policy on rural development and poverty reduction.
1.4 RESEARCH QUESTIONS.
To achieve the aim and objective of this research study within the given area of inquiry, a series of critical questions will be required throughout the investigation. While attempts will be made to obtain solutions to the following questions:
Can macroeconomic policy boost Nigeria’s productivity and growth?
Can macroeconomic policy support full employment in Nigeria’s rural sector?
Can macroeconomic policy reduce poverty in rural Nigeria?
1.5 Statement of Hypothesis
Hypothesis 1: Effective macroeconomic policy can boost Nigeria’s productivity and growth.
Hypothesis 2: Effective macroeconomic policies can be employed to generate full employment in Nigeria’s rural sector.
Hypothesis 3: Effective macroeconomic policies can be employed to eliminate poverty in Nigeria’s rural sector.
1.6 Methodology
The methodology will be named regression analysis, and the type of regression will be multiple regression analysis.
The standard technique is to create a mathematical model, apply statistical methods to the available data to estimate the model parameters, and then evaluate whether or not the hypothesis should be accepted or rejected.
1.7 Sources of Data
The Central Bank of Nigeria (CBN) and the Federal Office of Statistics (FOS) would be required to provide extensive information for this investigation.
This research will be confined to the information currently available from the annual budget report, journals, and other materials that will be beneficial in doing effective research. The data will be examined and interpreted using theoretical analysis.
1.8 Scope of the Study
This study will focus on the influence of macroeconomic policies on Nigeria’s rural sector. Some of the topics that will be covered include the trend of macroeconomic policy objectives on the rural sector of Nigeria, as well as macroeconomic policy procedures in the rural sector of Nigeria. This study will only cover a ten-year period.
However, macroeconomic policy is severely constrained in its impact on the virus sector in terms of wealth creation, full employment, growth enhancement, and poverty reduction.
1.9 Significance of the Study
The reason I chose to focus my research on this topic is that, despite all of the available tools for accomplishing macroeconomic goals, Nigeria’s rural sector continues to face the following challenges.
1. Low productivity has led to a food crisis and low output.
2. The unemployment situation can take the shape of functional unemployment, cyclical unemployment, voluntary unemployment, or seasonal unemployment.
3. High levels of poverty have resulted in a high crime rate.
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