Reasons Why Japan and Nigeria Are at Two Different Economic Situations.

Reasons Why Japan and Nigeria Are at Two Different Economic Situations.

  • Submitted By: kibs
  • Date Submitted: 12/06/2008 6:50 AM
  • Category: Business
  • Words: 435
  • Page: 2
  • Views: 562

Reasons why Japan and Nigeria are at two different economic situations.

Nigeria has a dual economy with a modern segment dependent on oil earnings, overlaid by a traditional agricultural and trading economy. At independence in 1960 agriculture accounted for well over half of GDP, and was the main source of export earnings and public revenue. The oil sector, which emerged in the 1960's and was firmly established during the 1970's, is now of overwhelming importance to the point of over-dependence: it provides 20% of GDP, 95% of foreign exchange earnings, and about 65% of budgetary revenues. Competition between ethnic and regional groups for power and access to the country’s oil wealth are increasing in intensity as the 2003 elections approach. The largely subsistence agricultural sector has not kept up with rapid population growth, and Nigeria, once a large net exporter, now imports food. Based on GNP per capita, Nigeria is among the world's 20 poorest countries. Economic growth since the early 1970's has been erratic, driven primarily by the fluctuations of the global oil market. During the 1980's and 1990's Nigeria faced growing economic decline and falling living standards, a reflection also of political instability, corruption, and poor macroeconomic management. Whereas, Japan is one of the most highly developed nations in the world economically. Its GDP is the second highest in the world, and Japanese brands like Toyota, Sony, Fujifilm, and Panasonic are famous across the globe. Manufacturing is one of Japan's strengths, but the country has few natural resources. One common pattern is for Japanese companies to import raw materials and then process them to make finished products, which are sold domestically or exported. One of the most promising fields for future economic growth is robotics, in which Japanese technology leads the world.
Japan's main agricultural product is rice, and most rice eaten in Japan is home-grown. Japan also has abundant marine...

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