The Implications of Received Economic Development Theories on the Role of Agriculture Sector in Sustaining Economic Development in Nigeria

It is an all known fact that agriculture sector holds or has held strong places in economic development history of most countries of the world. This is regardless of whether it is a developing or a developed country.

We shall be making references to the economic implications of previously implemented received or orthodox economic development theories on the role agriculture sector have played and can play in achieving sustainable economic development in Nigeria.

The various economic development theories implemented in Nigeria from the pre-colonial era down through the colonial and subsequently after the political independence era have different origins. This fact points to the reason why the theories worked in developed countries such as Britain, United State of America etc.

The theories propounded and implemented were related to circumstances peculiar and unique to the economic environment of these countries. This is why received or adopted theories will never (as we shall observe from histories) and will not owe Nigeria any true economic development benefit.

Nigeria must therefore, evolve and implement economic philosophies or theories that will provide the intellectual cohesion unique to Nigeria economic scenario.

 

Nigeria as a country have benefited tremendously in the past and somewhat now from the agriculture sector in sustaining economic development in the country. The benefits achieved could not be sustained enough because the foreign economic theories used.

Economic development challenges and the place of agriculture sector in Nigeria have over the years been at the forefront subject of discussions among scholars, public policy analysts and the public.

In most of these instances, when arguments are presented, one or two points always draw attention to the roles agriculture sector have played and/or should played in sustainable economic development in Nigeria without a second thought as to the implication of policy strategies adopted.

We shall in this article attempt an economic analysis of the implication of received economic development theories on the role of agriculture sector in sustaining economic development in Nigeria.

Nigeria needs self-proved economic philosophies in it economic transformation quest. The economic philosophies/theories needed should provide both rational explanations to Nigeria’s past economic development experiences and intellectual stimuli to its desired economic transformations.

Such economic philosophy must rationalize and harmonize some of the dominant economic theories and intellectual strands ever coming in interaction with Nigeria economy.

We are using received economic development theories implemented in Nigeria to analyze the role of agriculture in achieving sustainable economic development because one component in determining how to use agriculture to improve an economy is to evaluate the historical efforts in terms of economic theories and agricultural performance.

Most of the economic development theories under which Nigeria have witnessed economic booms and bursts were based on foreign theories with little or no applicability to Nigeria economic development challenges.

For Nigeria to witness enduring economic development, it will be required the formulation or at least re-modification some of the received theories to match the current and changing economic realities in Nigeria.

Should Nigeria seek these theories in the foreign economic development theories? This will be inappropriate because a working theory seeks to explain man’s experiences and provide a rational guide to his actions. The actions reflect and explain the social background in which the man finds himself.

Should Nigeria because of the above reason turn its back on world knowledge in a sort of theoretical isolationism? This is an impossible alternative because in final analysis, human knowledge belongs to one world pool.

In any of the above cases, Nigeria for the past centuries have become so influenced by various received strands of economic theories to an extent where Nigeria now finds herself helpless to cut adrift from these theories.

It is important for Nigeria to have indigenous and applicable economic development theories for the country’s economic planning and development strategies. Undertaking such beneficial intellectual exercise will ensure that the country does not repeat its past mistakes.

To accelerate and sustain the growth and development witnessed in Nigeria so far, Nigeria government as a matter of urgency and necessity must encourage diversification of the Nigeria economy. As this is the only sustainable way to survive the recurrent state of global economic uncertainty ranging from unfavourable quota system of OPEC, instability of crude oil prices and shocks and depletion in crude oil reserves.

 

To become an economically developed nation, Nigeria needs to speed up its economic growth by focussing on vital economic sectors like education, energy, agriculture and manufacturing.

Almost all of the economic development theories have a phase that identifies agriculture sector as one of the major economic development magic wand required for economic development. This is not surprising recalling the imperative role played by the sector during the industrial revolution.

At this point in Nigeria’s economic development stage, the best approach to achieving sustainable economic development is to focus on the agricultural sector as the core driving force. By focusing on agricultural development, Nigeria can speed up its economic development in the shortest period of time frame.

Nigeria can go back to reforming and adapting theories such as Myint “Vent-for-surplus” theory which suggested the turning of Nigeria by Britain to a surplus producer of agriculture raw-materials for British’s industries considered as the modern sector.

The theory particularly categorized a developing economy as consisting of a “modern sector” that is largely non-agricultural and a “subsistence sector” that is agricultural. The subsistence sector that is perceived to be unproductive but full of under-utilized resources is expected to feed the modern sectors e.g raw-materials.

Even though the theory of Myint “vent-for-surplus was an exploitative economic policy implemented in Nigeria prior to and during the climax when agriculture sector was contributing the most to Nigeria GDP. It will benefit Nigeria a lot now if it serves itself in like manner by concentrating on the agriculture sector to be the feeder of industrial sector.

The linear stages-of-growth model of economic development advocated by an American economic historian W.W. Rostow (1960) is yet another economic development theory applicable to Nigeria economy with all things been equal (though with modifications in assumptions and analysis).

Rostow propounded that it was possible to identify all societies, in their economic dimensions, as lying within one of five categories. These include the traditional society, the preconditions for take-off into self-sustaining growth, the take-off, the drive to maturity and the age of high mass consumption.

Rostow stated that one of the principal strategies of development necessary for take-off of an economy was the mobilization of domestic and foreign savings to generate sufficient investment to accelerate economic growth.

It is unclear which phase in the stages Nigeria is presently, as she kept embarking on development plans, taking-off (probably) in some instances and landing in preparation for take-off every now and then.

Whatever phase we are, we need to take-off and better start driving towards self-sustaining and sustainable economic development now.

Here is one implication of Rostow’s theory. If mobilization of savings and investment guarantee’s economic development, Nigeria would have gone past its present state of economic development after the massive infrastructural development undertaken shortly after the civil war and the oil boom in the 1970’s and 1980’s.

The above wasn’t so due to some factors ranging from corruption, extravagant national spending on projects with little or no benefit (FESTAC), incomplete projects, policies inconsistency etc.

The International-Dependence Revolution emphasizes the dependence of poor countries on their rich counterparts both with respect to financial aid and technical support. The common problem with such “dragon’s gift” is that, they come with stringent conditions.

Quick to come to mind was the 1986 Structural Adjustment Programme (SAP) facilitated by International Monetary Fund (IMF) which is still sapping economic juice of Nigeria till date.

The Lewis model emphasizes structural transformation which admittedly is a challenge to many developing countries. However the assumption on the surplus labour in the rural area and that of automatic employment for such labour from the agricultural sector, the quality of labour, notwithstanding, is unrealistic.

The above explains one of the reasons why rural-urban drift witnessed during the oil boom had negative effect of an unemployment rate and reduction in productivity of the agricultural sector.

Nigeria has both natural and human resources in abundance. The natural agricultural resources range from dams, streams, rivers, rainfall, and cultivatable land. Human resources are very much available with the total population estimated to be about 170 millions people. Nigeria has 75 per cent of its land suitable for agriculture, but only 40% is cultivated.

These indicate there are much room for the country to focus on agriculture.

A group study done by Diao, Xinshen, Hazell, Peter & Thurlow, (2009) examined the effect of other channels of growth on the decrease in poverty and the overall growth rate in six low-income countries of Africa.

The findings of that research can be applicable to Nigeria. It shows that industrial growth is less effective in reducing poverty than agricultural growth because a major percentage of the population (about 70%) live in rural areas.

In addition, the study stated that there was little evidence to prove that African countries (including Nigeria) could launch a successful economic transformation without going through an agricultural revolution on a nation-wide basis.

With regards to sustainable economic development in Nigeria there are evaluations of both internal (e.g the state of agriculture sector) and external factors (e.g economic theories implications) impacting on the role of agriculture in achieving sustainable economic growth and development.

In all, therefore, for a developing country most of the models are important but the selection of which to apply in a particular economy should be done with great caution. In addition, it is important to therefore identify the policy strategy needed to enhance sustainable economic development through the use of agriculture in Nigeria.

In conclusion, the agricultural sector is favourable when combined with unique and applicable economic development theories to achieving sustainable economic development in Nigeria as it allows greater employment opportunities for the poor.

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