The Importance of Measuring Governance Effectively
The primary goal of governance should be to achieve sustainable economic development and significantly improve the living conditions of citizens. This raises an important question: are people’s lives better now than when the current government took office? A positive response from most citizens indicates good governance, while a negative one suggests poor governance. To evaluate any government effectively, we must adopt a scientific approach that involves analyzing economic and social data, as well as the results of opinion polls. This kind of assessment is often carried out by NGOs focused on development evaluation.
Distinguishing Between Governance and Government Objectives
It is crucial to understand that the objectives of governance may differ from those of the government itself. As a result, governments sometimes present favorable economic statistics even when these do not reflect improvements in citizens’ daily lives. For example, jobless growth occurs when GDP increases but unemployment remains high or even rises. A growing economy should ideally lead to increased employment, but this is not always the case. Governments often focus on showcasing GDP growth while neglecting employment generation. Such growth is frequently low, discrete, and more related to price changes than actual output or productivity.
The Role of Economic Advisers
Economic advisers play a critical role in shaping government policies. However, they are often uncertain about their responsibilities and may prioritize maintaining the government’s image over providing accurate economic insights. This situation undermines the quality of policy decisions. Advisers should be experts who can assess situations and develop plausible solutions. They need to maintain an environment where they can collaborate with colleagues before presenting recommendations to their principal. In Nigeria, there is a lack of respect for research outcomes, leading many advisers to offer personal opinions rather than well-researched insights. This must change if effective governance is to be achieved.
Key Social Indicators for Evaluating Governance
Governments should focus on social statistics to evaluate their performance. Important indicators include how many people have been lifted out of poverty, the number of jobs created, the reduction in unemployment, and the return of out-of-school children to education. Other key metrics include the number of new schools built, the increase in electricity generation, road construction, and improvements in infant mortality rates. Additionally, per capita income and income distribution are essential measures. These statistics reveal whether the government has performed credibly in its duties.
International Indices as True Measures of Governance
International indices such as the Human Development Index and the World Happiness Index provide reliable measurements of good governance. These data points are available in international statistics books and are less subject to manipulation. There is still time to improve the situation, but government expenditure must be directed toward meeting basic needs as a priority in budget implementation.
Economic Data and Public Perception
While it is understandable for governments to highlight economic data such as GDP growth, falling inflation, increasing foreign reserves, and improved balance of payments, these figures alone do not tell the whole story. In Nigeria, the unemployment rate is not declining, and debt servicing continues to consume a large portion of the annual budget. Recent reports indicate that the nation’s debts have reached N159.28tn after new loans were contracted, and the IMF has declined to support further borrowing due to concerns about debt sustainability.
Financial Discrepancies and Stolen Funds
There is a growing concern about the disparity between Nigeria’s foreign reserves, which hover around $50bn, and its external debts exceeding $100bn. While there may be justifications for optimism based on untapped resources, continuous borrowing is not sustainable. Reports have also highlighted stolen funds that the government has not pursued for recovery, instead using them to fund projects. This is a serious issue that requires urgent attention. For instance, a recent report mentioned $69bn in stolen funds that have remained unaccounted for since President Buhari’s tenure. Efforts by agencies like the EFCC are needed to track and recover such funds.
Global Economic Challenges and Policy Adjustments
Last week, the World Bank and the IMF revised downward Nigeria’s growth rate, partly due to the ongoing conflict between the US, Israel, and Iran. While these institutions recognize the benefits of rising oil prices, they also acknowledge Nigeria’s inability to meet OPEC quotas due to low productivity. The government must focus on increasing output in the GDP ratio rather than relying on price increases. This requires taming inflation from the production side, which is a critical task for the economic team. They should learn from global events and implement short, medium, and long-term strategies to address these challenges.
