WEEK 6: Looking at the Growing Economies of Nigeria and Angola

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According to HumaniatrianInfo.org, the Consolidated Appeals Process (CAP) is a program cycle for aid organizations to plan, coordinate, fund, implement and monitor their response to disasters and emergencies, in consultation with governments. It contributes in developing actions between governments, donors, NGOs, aid agencies, etc. to work together and produce a Common Humanitarian Action Plan (CHAP). The 2013 Sahel Regional Strategy shows a CHAP in Nigeria, noting UNICEF and NGOs and notes the country many times in its report. Back on the Humanitarian Info site, it notes that since 1992, about one hundred donor countries have provided $29 billion to over 50 countries, noting Angola as one of them.

According to Investopedia.com, Gross National Income (GNI) is the sum of a nation’s gross domestic product (GDP) plus net income received from overseas. It is defined as the sum of a value added by all producers who are residents in a nation, plus any product taxes minus subsides not included in output, plus income received from abroad. The World Bank notes that between 2009 and 2013, Nigeria had a GNI of 2,710 and Angola had a GNI of 5,010. It classifies Nigeria as a blend nation and Angola as an upper-middle-income economy.

ODA stands for Official Development Assistance, which is used to measure aid. Wikipedia defines it as:

“Flows of official financing administered with the promotion of the economic development and welfare of developing countries as the main objective, and which are concessional in character with a grant element of at least 25 percent (using a fixed 10 percent rate of discount). By convention, ODA flows comprise contributions of donor government agencies, at all levels, to developing countries (“bilateral ODA”) and to multilateral institutions. ODA receipts comprise disbursements by bilateral donors and multilateral institutions.”

When Oxfam calls for developed countries to meet financial commitments of 0.7% of GNI as an ODA, it means they are supposed to donate 0.7% of their national income to foreign aid.

The most recent record of Nigerian ODA I found here said it was last measured in 2010, at 13.02 per capita. It didn’t note if ODA was “met” or not. On the World Bank site, it says Nigeria had an ODA of 1,915,820,000 between 2009 and 2013, while Angola had an ODA of 242,350,000 in that same timespan. I’m honestly still very confused what these numbers even mean.

Oxfam notes that the U.S. spends about $80.37 per person each year on development aid. They compare that to the $101.76 we spend on candy and the $204.78 we spend on soft drinks, and that makes me feel horrible. It specifies that less than one percent of the U.S. federal budget is spent on poverty-reducing foreign aid.

USAID is helping to develop policy in Nigeria aimed toward helping small businesses and expanding access to commercial financial services. It works closely with the Nigerian government to promote increased trade. USAID is also supporting the government’s efforts to use more sustainable practices in dealing with their natural resources, mainly being oil and gas.

In Angola, USAID works with the Central Bank and commercial banks to reform policies and procedures to increase smaller banks’ willingness and ability to lend money to both small and medium-sized borrowers. USAID is helping Angola’s agriculture industry in terms of production to processing to transport to marketing on crops like bananas and coffee. Combined with the International Monetary Fund, the World Bank and the European Commission, USAID is helping build the capacity of the Ministry of Finance in Angola in order to manage the national budget in a better way.

The process of policy coherence for development (PCD) has potential as a global tool for creating the environments that the MDGs call for. OECD says that to achieve MDGs, governments need to design more effective policies that avoid impacts that adversely affect the development prospects of other countries. A coherent policy would call for being to enable developing country exports to have greater access to markets while simultaneously help them boost their export supply capacity.

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