UNIVERSITY OF LAGOS, NIGERIA

DISTANCE LEARNING INSTITUTE

DEPARTMENT OF SOCIAL SCIENCES

COURSE CODE: PAD 118

COURSE TITLE: PRINCIPLES OF DEVELOPMENT ADMINISTRATION

DEPARTMENT: PUBLIC ADMINISTRATION

TABLE OF CONTENTS

Gener al Introduction

Study Session 1: The Meaning of Development Administr ation

1.1 Define Development Administration

1.2 Rationale of Development Administration
1.3 Development Administration as Development of Bureaucracy
1.4 General Characteristics of Development and Underdevelopment
1.4.1 Characteristics of Development
1.4.2 Characteristics of Underdevelopment
1.5 Summary of Study Session 1

1
1.6 Self - Assessment Questions (SAQs) for Study Session 1

References/Further Reading

Study Session 2: Nature of Development Administr ation

2.1 Nature and Scope of Development Administration

2.2 Scope of Development Administration

2.3 Development Administration as a Science

2.4 Development Administration as an Art

2.5 Responsiveness and Accountability of Development Administration System

2.6 Goals of Development Administration

2.7 Summary of Study Session 2

2.8 Self-Assessment Questions for Study Session 2

References/Further Reading

Study Session 3: Theor ies/Approaches to the Study of Development Administr ation

3.1 The Modernization Theory

3.2 The Marxist Theory

3.3 The Dependency Theory

3.4 The World System Theory

3.5 The Developmental State Theory
3.6 Summary of Study Session 3
3.7 Self -Assessment Questions for Study Session 3

References/Further Reading

Study Session 4: Development Administr ation and Administr ation Development Debate

4.1 Describe Development Administration

4.2 Describe Administration Development

2
4.3 Distinguish between Development Administration and Administration Development

4.3.1 Features of Development Administration

4.3.2 Features of Administration Development

4.4 Summary of Study Session 4

4.5 Self-Assessment Questions for Study Session 4

References/Further Reading

Study Session 5: Ecology of Development Administr ation in Niger ia

5.1 Political Environment

5.2 Economic Environment

5.3 Social Environment

5.4 Summary of Study Session 5

5.5 Self-Assessment Questions for Study Session 5

References/Further Reading

Study Session 6: Development Planning in Niger ia

6.1 Concept of Development Planning

6.2 Explaining the Concept of Development Planning

6.3 Institutions for Development Planning in Nigeria

6.4 History of Development Planning in Nigeria

6.5 Summary of Study Session 6

6.6 Self-Assessment Questions for Study Session 6

References/Further Reading

Study Session 7: Str ategies of Development Planning in Niger ia

7.1 The Colonial Development Plan in Nigeria, 1946-1955

3
7.2 The First National Development Plan, 1962-1968

7.3 The Second National Development Plan, 1970-1975

7.4 The Third National Development Plan, 1975-1980

7.5 The Fourth National Development Plan, 1981-1985

7.6 The Structural Adjustment Programme, 1986-1990

7.7 The Rolling Plan, 1990-1998

7.8 The Vision Committee, 2010

7.9 The Four Year Medium Plan, 1999-2003

7.10 The National Economic Empowerment and Development Strategy, 2003-2007

7.11 The Vision 20:2020

7.12 The Seven-Point Agenda

7.13 The Transformation Agenda, 2011-2015

7.14 The Economic Recovery and Growth Plan, 2017-2020

7.15 Summary of Study Session 7

7.16 Self-Assessment Questions for Study Session 7

References/Further Reading

Study Session 8: The Planning Process in Niger ia

8.1 Planning Processes at the Central Government

8.2 Planning Processes at the State Level

8.3 Planning Processes at the Local Government Level

8.4 Summary of Study Session 8

8.5 Self-Assessment Questions for Study Session 8

References/Further Reading

4
Study Session 9: Problems and Challenges of Development Planning and Administr ation

9.1 Challenges of Achieving Sustainable Development in Nigeria

9.2 Problems of Development Planning in Nigeria

9.3 Challenges of Development Administration in Nigeria

9.4 Solutions to the Problems of Development Planning and Administration in Nigeria

9.5 Summary of Study Session 9

9.6 Self-Assessment Questions for Study Session 9

References/Further Reading

Study Session 10: Problems of Planning and Challenges of Development

10.1 Problem of Planning and Challenges of Development at the Federal Level

10.2 Problems of Planning and Challenges of Development at the State Level

10.3 Problems of Planning and Challenges of Development at the Local Government Level

10.4 Summary of Study Session 10

10.5 Self-Assessment Questions for Study session 10

References/Further Reading

Study Session 11: Contempor ar y Str uctur al/Constitutional Amendments in Niger ia

11.1 Amendments at the Federal Level

11.2 Amendments at the State Level

11.3 Amendments at the Local Government Level

11.4 Summary of Study Session 11

11.5 Self-Assessment Questions for Study Session 11

References/Further Reading

Study Session 12: State and Development Administr ation

5
12.1 Conceptualizing the State

12.2 Explaining the Origin of the State

12.3 Understanding the Evolution of the State System

12.4 Describing the Modern State System

12.5 Stating the Characteristics of the Modern State System

12.6 Summary of Study session 12

12.7 Self-Assessment Questions for Study Session 12

References/Further Reading

Study Session 13: Local Gover nment and National Development

13.1 Definition of Local Government System

13.2 Evolution of Local Government System in Nigeria

13.3 Theories of Local Government System

13.4 Local Government Development Strategies

13.5 Local Government Functions

13.6 Challenges Confronting Local Government as Development Institution

13.7 Summary of Study Session 13

13.8 Self-Assessment Questions for Study Session 13

References/Further Reading

Study Session 14: Development Administr ation and Rur al development

14.1 Cooperatives and Rural Development

14.2 Explain the Types of Trans/Multinational Companies (T/MNCs)

14.3 Describe the Mode of Operation of T/MNCs

14.4 State the Theoretical Positions of T/MNCs Operations

6
14.5 Summary of Study Session 14

14.6 Self-Assessment Questions for Study Session 14

References/Further Reading

Study Session 15: Pr ivatization and Commercialization

15.1 What is Public Enterprise?

15.2 Benefits of Privatization

15.3 Issues of Ideology and Accountability in Privatization of Public Enterprise

15.4 The Prospects of Development Administration in Privatization and Commercialization

15.5 Summary of Study Session 15

15.6 Self-Assessment Questions for Study Session 15

References/Further Reading

 ANSWERS TO SELF –ASSESSMENT QUESTIONS

GENERAL INTRODUCTION

This Course Module PAD 118 – ‘Principles of Development Administration’ is a course

designed to introduce you to the aspect of public administration which focus attention on
organizing and administering public agencies in such a way as to stimulate and facilitate defined
programmes of sustained social, political and economic progress. Development is the structural
transformation of the economy, society, polity and culture. At the end of this interactive academic
expedition, you will be exposed to the innovative approach to public management and social
engineering in developing society like Nigeria. The module specifically seeks to expand your
focus of the administrative theories required for the improvement of public administration
machineries and the evolutionary process of social transformation in Nigeria. To achieve this, the

7
course details the federal, state and local government interventions towards nation-building,
poverty reduction and improved living standards for the population; from colonial to post-
independence administration. Scholarly arguments and intellectual resources were drawn from
historical and contemporary literature to launch you into the exciting field of development and
under-development narrative in Nigeria’s historical trajectory.

In continuation of your study in public administration, this module will support your learning
through systematic and detailed explanation of the nature of national development planning and
government policies adopted to modernize the economy, accelerate development and ease the
transitional phase of underdevelopment in Nigeria. In furtherance of this, the module sought to
inculcate relevant academic literature that will enhance your appreciation of the capacity of
administrative systems and role of administrators as agents of socio-economic change and
political demands from the environment. Therefore, the study adopts a double-barrelled approach
to the explanation and analysis of the combined process of development policy formulation and
implementation, facilitated through improvement of bureaucratic capacity and competence.

The ‘Principles of Development Administration’ is a compulsory course of 3 credit units and

comprised of fifteen study sessions. Accordingly, the course outline is specifically designed for
you as the basic platform to enhance your learning and understanding of the concept of
development administration and administration development, responsiveness and accountability
in development administration, theories and approaches to the study of development
administration, ecology of development administration, development planning, strategies of
development planning in Nigeria, development administration and rural development in Nigeria,
state and development administration, problems of development planning and administration,
privatization and commercialization, among others. This module is informative and illustrative
with Learning Outcomes, In-Text Questions/Answers and Self-Assessment Questions to augment
your learning experience.

8
Study Session 1: MEANING OF DEVELOPMENT ADMINISTRATION

Introduction

This study session will define and explore the meaning, nature, scope and rationale of
development administration. You will also be exposed to the characteristics of development and,
underdevelopment. Development Administration is an innovative approach to public
management and social engineering. Development Administration requires public savings and
investment in the economy, and state intervention in the market system. The study session
provides the intellectual and ideological norms that focus on social change and human capital
development.

9
 Lear ning Outcomes for Study Session 1

When you have studied this session, you should be able to:

1.1 Define development administration

1.2 Explain the rationale for the study of development administration
1.3 Describe development administration as development of bureaucracy
1.4 Analyze the general characteristics of development and underdevelopment

: Development, Development Administration, Bureaucracy, Underdevelopment

1.1 What is Development Administr ation?

Development as a concept is multi-dimensional and thus appears elusive. Development is

defined as ‘a multidimensional process involving major changes in social structures, political
attitudes and national institutions as well as the acceleration of economic growth, the reduction
of inequality and the eradication of absolute poverty’ (Lane and Ersson, 1997). Development is
used to refer to growth, modernization, transformation, structural change or progression of a
system from a lower and often undesirable state to a high and, preferred one. Similarly,
administration is the process of planning, organizing and controlling the mobilization and
utilization of resources to achieve goals. Development administration is an inclusive approach
towards development.

Development administration is the application of administrative theories for the improvement of

administrative machinery as well as, the legitimate method and evolutionary process of social
transformation. Development administration is that aspect of public administration which focus
attention on organizing and administering public agencies in such a way as to stimulate and
facilitate defined programmes of social and economic progress. It has the purpose of making
change attractive and possible. Thus, development administration within the broader field of
public administration was adopted to transform and accelerate social, political and economic
development especially in the less industrialized nations.

10
Development administration is the process of consciously planning, coordinating, controlling,
organizing and directing resources for the transformation of a society (Balogun, 1983). It is the
machinery for implementing development policies formulated by governmental and non-
governmental agencies as well as the private sector within and outside its borders. According to
Fred W. Riggs (1964) development administration is the composition of the administrative
structures, organization and organizational behavior necessary for the smooth implementation of
development schemes, projects and programmes of socio-economic and political change
undertaken by the government in a transitional society. Development administration denotes the
complex web of agencies, administrative systems and processes that government establishes to
achieve politically determined goals and objectives. Basically, development administration is the
complex system of agencies and processes of government characterized by innovative functions
and social engineering, undertaken by developing countries embarking on the path of
modernization and industrialization (Abdulsalami & Abubakar, 1989).

What is development administration?

Development administration is "that aspect of public administration which focus

attention on organizing and administering public agencies in such a way as to stimulate
and facilitate defined programmes of social and economic progress.

According to Iyoha, et-al (2003) development involves the administration of government or, of
an agency to ensure capability to cop up with social change and sustained growth.

Development administration is the deliberate and continuing attempt by government to

accelerate the rate of socio-economic progress through policymaking, as well as the execution
and coordination of the activities of government ministries, departments, agencies, enterprises
and private sector. Development administration simply involves establishment of machinery for
planning economic growth, mobilizing and allocating resources to expand national income, and
design and execute growth programmes, objectives and goals. Thus, development administration
is the process of action motivated by and, oriented to the achievement of predetermined goals.

1.2 Rationale of Development Administr ation

11
The purposes of development administration are to stimulate and facilitate defined programs of
social and economic progress and are conceived with certain tendencies as presented below.

a). Development administration was adopted in the new nations to 'modernize' their economies,
accelerate development and ease the transitional phase of underdeveloped countries.

b). It enhanced administrative capability and the role of administrators as agents of social
change.

c). It increases the capacity of administrative systems to take decisions that meet political and
socioeconomic demands from the environment.

d). It supports the transformation of existing administrative mechanism through modernizing the
bureaucracy by manpower training, technology transfer and external stimulus.

e). Helps to reduce the dependence on foreign experts by producing adequate trained manpower.

f). Fashions out a system for the smooth running and functioning of government agencies.

g). Rehabilitates and resettles dislocated and internally displaced persons due to war, terrorism,
insurgency, and natural disasters.

h). It rectifies inequalities in income and reduce poverty in the newly independent countries.

i). Creates politics-administrative environment which is oriented towards securing basic needs of
the population.
j). It supports the application of innovative strategies for grass root development and
establishment of a just social order.
k). Development Administration aim toward the achievement of progressive political, economic
and social objectives that are authoritatively determined.

1.3 Development Administr ation as Development of Bureaucr acy

The major reason for development administration is the belief that the basic obstacle to socio-
economic advancement is administrative in nature (Esman, 1988). Hence, the adoption of
administrative structures, procedures, rules and practices to aggressively address and promote
development. Consequently, development administration is concerned with the methods of

12
accomplishing programmes and determining planning models required to implement target
projects and objectives. Riggs (1964) define development administration as the combined
process of ‘administration of development’ (implementation of development policies and plans)
and, the ‘development of administration’ (improvement of administrative capabilities).

By administration of development, it was reasoned that a technocratic and rational-legal

bureaucracy was required to overcome development challenges from tribal authority and
superstition. Max Weber described a bureaucracy as a formal organization based on functional
specialization, clear hierarchical lines of authority, application of rules, appointment and
promotion based on merit, assured tenure of office and proper communication and record
keeping. Development administration is that aspect of public administration which focus
attention on organizing and administering public agencies to facilitate the implementation of
defined programmes of social and economic progress. The central tenet of development
administration is that public bureaucracy should be the energizing force for socio-economic and
political transformation. However, while development administration requires decentralization
and delegation of authority, bureaucracy professes the principles of centralization, rules and
hierarchical order.

Development administration encompasses the innovations which strengthen the capacity of the
bureaucracy to stimulate the advancement of society. Development administration refers to the
administration of development programmes as well as, the methods used by government to
implement policies and plans designed to meet developmental objectives. Development
administration requires the strengthening of administrative capabilities and development of the
public bureaucracy. Development of bureaucracy is required to administer development in
Nigeria. Bureaucracy in Nigeria was instituted and transferred by the British colonial rule.
During the period of decolonization however, the public bureaucracy began to undergo some
significant changes in both its complexity and in the responsibility assigned to it.

Along with this development, there was the expansion of the bureaucracy and establishment of
public corporations. The high hopes raised by nationalists, anxiety of post-independence leaders
of Nigeria to achieve quick social economic development of the country and the availability of
more resources especially the oil windfall in the 1970s, greatly contributed to the expansion of
the size and responsibilities of the civil service bureaucracy. The phenomenal growth in the size

13
and responsibilities of the civil and public services and in particular, the realities of the social,
economic, and political situation within which it operated made the institution to become
embroiled in many serious problems e.g. red tapism, rigidity, corruption, nepotism,
ineffectiveness and inefficiency, conservatism, etc.

These challenges posed for the civil service made it a subject of many inquiries by the
government, all in an attempt to improve it. Such inquiries include the Gorsuch Report (1954),
the Adebo Commission on the Review of the Salary Structure of the Civil-Service (1971), the
Udoji Commission (1974), the 1988 Civil Service Reforms and the Ayida Panel (1994). These
bureaucratic reforms were necessary because the basic pattern of administration is imitating
rather than indigenous. Development administration therefore required that the organization and
management of the public bureaucracy be restructured to accelerate the effective attainment of
the National Development agenda. For example, in its recommendation, the Udoji Commission
introduced Management by Objective, Project Performance and Management Budgeting which
were necessary for central direction and coordination of development policies and priorities.

There was need for development administration to change the elitist, paternalistic and
authoritarian style of colonial heritage in Nigeria. Bureaucracy is critical to development
administration because it maintains sole ownership of technical knowledge in the various sectors
from agriculture to mining and industry. The bureaucracy was large, production directed but
deficient in skilled manpower necessary for developmental programmes.

For development administration to achieve its purpose there was need to change the values of
ascription to achievement; spoil system to merit system. Corruption was widespread and
bureaucracy was used as a social security programme to solve an employment problem. There is
widespread discrepancy between form and reality, what Riggs refers to as formalism. The
structure of Nigeria bureaucracy was closed because it had no provision for the admission of
outsiders (well-qualified and experienced persons) in the higher grades of the hierarchy. Such a
career and closed system did not provide enough incentives for change, modernization or the
transformation of socio-economic lives of the people.

Since development projects and programmes are initiated and executed under ministries and
respective departments and agencies under it, it was imperative that the minister as the chief

14
executive be in total control of men, materials and money which are critical inputs in the policy
implementation process. The minister was in charge of the administrative and professional cadres
and, worked with the permanent secretary, the executive, the clerical and the sub-clerical
officers. Through various reforms, the conflict between the administrative cadre and professional
cadre was resolved in favor of the generalist administrators (Balogun, 1983).

This was done bearing in mind the human resource deficiency which confronted the country at
independence, hence there was inadequate supply of specialist, experts and professionals to drive
development initiatives and interventions. Subsequently, development administration was to be
achieved by seeking improvement inline with environmental constraints that hampered
accelerated growth and transformation. It was expected that these bureaucratic modifications
necessitated by environmental reality would strengthen the administration of development
programmes in the country.

1.4 Gener al Char acter istics of Development and Under development

Development is the structural transformation of the economy, society, polity and, culture.
According to Sen (1990) development is coterminous with capacity expansion and freedom. As
capacity expansion, development requires adequate empowerment of the state and society such
that they can adequately distil their complimentary responsibilities. Development also requires
enhanced state capacity as well as, institutional and governmental stability. As freedom,
development demands autonomy for the political community and its constituent units as well as
the individual members of such communities (Omotola, 2003). Development involves
modernizing a traditional society or a subsistence sector of a developing society with the aim of
attaining sustained growth (Rostow, 1960). The task of development is problematic because
majority of the population does not possess or enjoy basic socio-economic necessities that
enhance standard of living. The stages of development are: the traditional society; the pre-
conditions for 'take-off; the 'take off’; and ‘sustained economic progress’. The central focus of
development is to achieve rising real per capita income for the society and higher capacity to
deal with the environment. Hence, the emphasis in the development literature is on meeting basic
needs and redistributing the benefits of economic growth.

15
According to Turner and Hulme (1997) the components of development cover social (human
health and wellbeing, life expectancy, education, etc.); political (good governance, human rights,
the rule of law, public accountability, etc.); economic (wealth creation, income distribution,
economic opportunities, etc.); and cultural (values, religion and ethnic tolerance, plurality, etc.).

The interpretation of development within the context of economic growth has led to the
redefinition of development in terms of redistribution of income and meeting the basic needs of
the population. Development is therefore, meant to address levels of poverty, unemployment and
inequality. By so doing, development administration is related to the management of an
economy. However, the concept of development is a normative concept in the sense that it
implies progress from a less desirable state to a more desired one. Rogers (1969), defines
development as social change and introduction of new ideas that enhance production methods
and improve social organization.

However, you should not conclude that social and economic aspects are the determining force of
development. This is because development implies not only the rise in real income, employment
and reduction in poverty and inequality as well as changes in social attitude and customs. The
underlying values of development administration in emerging economies like Nigeria focused on
the materialistic and quantifiable targets that meet the basic conditions of live. Hence,
development also encompasses qualitative and immeasurable changes in the socio-cultural,
political and administrative aspects of the people.

Nigeria has responded to the challenges of development through the adoption of the followings:
United Nations sponsored poverty reduction programme under the Millennium Development
Goals (MDGs); the New Partnership for African Development (NEPAD) and, the national
initiatives under the National Economic Empowerment and Development Strategy (NEEDS) and
the Social Investment Programmes.

1.4.1 Char acter istics of Development

Development is a process in which something passes by degrees to a different state, especially a

more advanced or mature state. It represents an act of improving by expanding, or enlarging or
refining; a gradual advancement or growth through a series of progressive changes (Abasili,
2004). With this explanation, you can now appreciate the unique characteristics of development.

16
a). Development is multi-dimensional, multi-sectoral and interdisciplinary in nature.

b). Development implies increased skill and capacity, greater freedom, creativity, self-discipline,
responsibility and material wellbeing.

c). Development implies increased capacity to regulate both internal and external relationships
within socio-economic groups.

d). Development is both quantitative and qualitative in character.

e). Development involves socio-economic and structural change and reorganization.

f). Development involves structural transformation of the economy, society, polity and culture of
the people.

g). Development is freedom from exploitation and oppression.

i). Development is knowledge driven, elusive, value – laden and encompassing.

j). Development is progressive and the gradual evolution towards ultimate wellbeing and
satisfaction of the preferences of the population.

k). Development is both an economic affair and an overall social process which is dependent
upon human effort to understand and control the natural environment.

l). Development is sustained improvement in material wellbeing, which is reflected in increased

flow of goods and services.

m). High and sustained investment in mechanized agriculture and food processing facilities.

The aspects of human existence that does not meet with the above characteristics of development
can qualify the society as an undeveloped. We now proceed to examine the major characteristics
of underdevelopment.

1.4.2 Char acter istics of Under development

A society is adjudged as underdeveloped when the population is dominated by low per-capita

income earners, low levels of human capital, high levels of poverty and malnutrition,
unsustainable population growth, low level of industrialization, predominance of subsistence

17
agriculture and high levels of import of food and consumables. Rostow (1960) perceives
underdevelopment as the failure of society to transit from one state to another; that is stationary
or backward state in human evolution. Developing and underdevelopment imply various stages
of improvement, stagnation or degradation, regression or decline. Underdevelopment is caused
by primitive technology, lack of scientific enquiry, and absence of entrepreneurial spirit. The
major characteristics of underdevelopment are presented as under:

a). Government ineffectiveness to provide basic socio-economic services and opportunities as

well as discharge its primary role as agent of development.

b). Political instability, absence of political participation, poor regulatory control and, prevalence
of lawlessness and insecurity in society.

c). Lack of transparency and accountability, non-guarantee of fundamental rights and

nonobservance of the rule of law.

d). Stagnation in industrialization and production which operates at low level equilibrium.

e). Economy is characterized by low income, low savings, low capital accumulation and low
investment.

f). Majority of the people manage to survive with predominance of subsistence agriculture and
high levels of reliance on imported goods and consumables.

g). Lack of administrative institutions and structures to perform integrative functions; achieve
national unity, common purpose and feeling of patriotism.

h). A modernizing elitist leadership accompanied by wide political gap between achievement of
the rulers and the expectations of the ruled.

i). The State is seen as the main instrument for modernization and industrialization.

j). Superstition such as angry deity, curses and witchcraft is a key socio-cultural feature that
place individual destiny beyond human control.

k). High level of apathy and mutual distrust which deprive individuals of the necessary
cooperation required in engineering solutions to pressing national or community issues.

18
l). Most rural and tribal groupings are differentiated on the basis of race, tribe and religion and,
are often alienated from functional government.

m). Tribal sentiments rather than achievement and merit usually determine the pattern of voting
or public appointment to positions of responsibility.

n). Resistance to new technology, knowledge and ideas.

o). Low productivity and inhibition of economic opportunities.

p). Dependence on rent and loyalties from exploitation and export of natural resources and raw
materials.

Summar y of Study Session 1

In this study session 1, you learnt that the concept of Development Administration represents
those changes in public administration, which are needed to improve living standards. Socio-
economic transformation is therefore the ultimate goal of development administration. We hope
that through the discussion in this study session, you are able to define, describe and explain the
nature, scope, and rationale of development administration. The session also focused your
attention to the development of bureaucracy in Nigeria as well as highlighted the general
characteristics of development and underdevelopment.

1.6 Self - Assessment Questions (SAQs) for Study Session 1

Now that you have completed this study session, you can assess how well you have achieved its
Learning Outcomes by answering the following questions.

SAQ 1.1 (tests Lear ning Outcomes 1.1)

Define the term ‘development administration’?

SAQ 1.2 (tests Lear ning Outcomes 1.2)

The rationale for development administration include the following except:

A. Stimulate and facilitate defined programs of social and economic progress.

19
 B. Enhance administrative capability and the role of administrators as agents of social
change.
C. Support the transformation of existing administrative mechanism through
modernizing the bureaucracy.
D. Rehabilitate the economies of Europe.

SAQ 1.3 (tests Lear ning Outcomes 1.3)

Development administration is an integral part of societal development (True or False?).

SAQ 1.4 (tests Lear ning Outcomes 1.4)

Identify one characteristic each of development and underdevelopment?

A. Development is multi-dimensional, while underdevelopment is multi-sectoral.

B. Development implies increased skill and capacity, while underdevelopment implies

greater freedom, creativity, self-discipline, responsibility and material wellbeing.

C. Development is sustained improvement in material wellbeing, while

underdevelopment connotes political instability.

D. Development is regressive, while underdevelopment is characterized by low income

and low savings.

References

Abdulsalami, Ibrahim and Abubakar Halithi (1989). ‘The management and administration of
development in Nigeria’, in Alex Gboyega, Yaya Abubakar and Yaya Aliyu (Eds). Nigeria Since
Independence: The first twenty-five years, Public Administration Vol. III; Ibadan: Heinemann
Educational Books Nigeria Limited

Balogun, M.J. (1983) Public administration in Nigeria: A developmental approach, London:

MacMillan press limited

Esman, M. J (1988) The maturing of development administration’ in Public Administration and

Development, Vol. 8, No. 2

20
Iyoha, F. et-al (2003) Rethinking governance and development in the 21st Century, Ekpoma:
Institute of Governance and Development

Lane, J. E and S. Ersson (1997) Comparative political economy: A development approach (2nd
edition) London: Pinters

Omotola, J. S (2003) Democratization, good governance and development in Africa: The Nigeria
experience 1999-2003, Ekpoma: Institute of Governance and Development, Ambrose Alli
University

Riggs, W. Fred (1964) Administration in developing countries: Theory of prismatic society,

Boston: Indiana Press

Rostow, W. W (1960) Stages of economic growth, Cambridge: Cambridge University Press

Turner, M and D. Hulme (1997) Governance, administration and development: Making the State
work, London: Macmillan press limited

Suggestions for fur ther Reading

Ake Claude (1996) Democracy and development in Africa, Washington DC: The Brookings
Institute

Almond Gabriel and David Apter (1965) A developmental approach to political system, in World
Politics, XVII

Ezeani, E.O. (2006) Fundamentals of public administration, Enugu: Snaap Press Limited

Gboyega Alex (1995) The civil service reforms: A critique, Harare: SAPES Books
Iyoha, F. et-al (2003) Rethinking governance and development in the 21st Century, Ekpoma:
Institute of Governance and Development

Mbeli, Patrick (2006) Public administration: A broad view, Lagos: Megavons West Africa limited

Nnoli, Okwudiba (1981) Path to Nigeria’s development Dakar: CODESRIA

Should you require more explanation on this study session, please do not hesitate to
contact

your e-tutor via the LMS.

21
Are you in need of General Help as regards your studies? Do not hesitate to contact the DLI IAG
Center by e-mail or phone on:

iag@dli.unilag.edu.ng
08033366677

Study Session 2: NATURE OF DEVELOPMENT ADMINISTRATION

22
 Introduction

The discipline of development public administration is subject to the philosophical controversy.

For instance, some who treat it as normative branch, while others consider it as positive and
empirical branch of public administration (Billar, 1971).

Lear ning Outcomes for Study Session 2

At the end of this session the student will be able to understand and explain the real nature of
development-administration and answer the following questions:

2.1 Explain the nature of development administration

2.2 Describe the scope of development administration

2.3 Analyze development administration a science

2.4 Discuss development administration an art

2.5 Discuss the responsibilities of development administrators

2.6 Explain the goals of development administration.

Development Administration, Science, Art, Discipline, Systematic,

2.2 Nature of Development Administr ation

The field of development administration can be said to have started after the socialist revolution,
the Great Depression of 1929, and development of the Welfare State. The development strategy
gained momentum in colonial territories following the agitation for independence after World
War II. The emergence of nations from independence heightened expectations of people for
immediate improvement in socio-economic conditions which extant model of public
administration was unable to provide. Development administration is characterized by the
followings:

a). Development administration is the end result of Public Administration in fragile societies.

23
b). Development Administration is an innovative approach to public management and social
engineering.

c). Development Administration requires public savings and investment in the economy, and
state intervention in the market system.

d). Development Administration may be ideologically driven or ethically motivated.

e). Development administration is a model for progressive change in Third World countries.

f). Development Administration devises set of guidelines potentially helpful in facilitating the
process of transition.

g). Development Administration is interdisciplinary and highly prescriptive in nature.

h). Development administration is an integral part of societal development.

i). Development administration focuses on the socio-economic change of developing nations.

j). Development administration is concerned with the formulation and implementation of plans,
policies, programmes and projects for national development.

2.2 Scope of Development Administr ation

Development Administration addresses the need of society and social dynamics. The scope of
development administration includes the following:

a). The model of development administration depends on the nature of government and its
policies.

b). Development Administration involves the institution of national planning.

c). Development Administration caters to the emerging needs of a given population.

d). Development Administration is an intellectual enterprise through which defined goals of

development can be achieved.

e). Development administration resonates in development plans, administrative reform agenda,

political party manifesto, government action plans and policies.

24
f). The thrust of development administration is the study of administrative patterns and behavior
in societies caught in transition from rural, agricultural and peasant life toward urban, industrial,
and advanced order.

g). Development Administration compel developing nations resort to a state or public-centred

approach for development initiatives.

h). The study of development administration cover reforms in bureaucracy, administrative laws,
e-Governance, among others.

i). Development Administration is the administration of social change: social justice,

improvement of standards of living, removal of poverty, reduction of inequality, etc.

j). Development Administration is a by-product derived from comparative public administration.

k). Development administration is the connection of public administration with its end result of
service delivery.

l). Development administration is concerned with inter system maintenance and outer system
modifications.

2.3 Development Administr ation as a Science

As we know science is a systematized body of knowledge with its distinctive subject matter and
distinctive methodology. Development-administration is a growing discipline. As a discipline it
belongs to the biggest family of social sciences. It is inter-disciplinary in approach. It can be
described as a scientific discipline for the purpose of study, teaching and research (Ramesh, and
Arora, 1977). It can safely claim the status of social sciences. All social science including public
administration and development-administration are 'inexact' because they deal with the human
element and human behaviour so the task of explaining and predicting the phenomena is not so
exact. It can be studied systematically and scientifically; it is scientific in nature. It uses scientific
method in collection, and verification of data. Data are gathered and tabulated, analyzed and
compared to hypothesis. Finally, hypothesis is supported or negated. The study of development-
administration and academic discipline is comparatively new.

25
As a field of systematic study, the development-administration has been only recent origin. The
word Development-administration was first coined by Indian Scholar Goswami in 1955. And
later on, credit goes to Prof. Weidner, because he made the symbolic, systematic and scientific'
study of development administration. He laid the scientific foundations of the discipline. We may
sum up as:

a). Development administration is an intellectual discipline or science to be studied in

educational institutions both by the students and scholars.

b). It is one of the social sciences largely concerned with the investigation of social and
economic issues, and

c). It is a positive, normative and empirical science.

It is positive and normative because it is concerned with the question of values. It is normative
science because it is intimately connected or concerned with the life and ideals of the people for
whom it has to function. It is empirical because it is concerned with the facts, and actualities.

2.4 Development Administr ation as an Ar t

Development-administration is an activity which requires a skill for its efficient performance. It

is an art, and development administrator is an artist. Talented person becomes administrator. As
an art, development-administration is concerned with the practical affairs of administration. As a
practice it stands for the process or activity of administering governmental affairs. It is not only
an art, but a fine art or discipline. Art is not merely theory, but putting theory in to practice.
Similarly, we find that development-administration is not merely theory but practice. It is more
practical aspect rather than theoretical discussion. As a practice, it is essentially an art (Hope,
1977). In the olden days of the monarchic period, the royal and the noble families used to pay
greater attention to the education of their children in the art of governance.

In this way, we can conclude by saying that development administration is 'both a Science as
well as, an Art.'

2.5 Responsiveness and Accountability of Development Administr ation System

26
In the traditional administrative system, administrators tend to be routine minded, stagnant and
generally lacking enthusiasm and ability for innovation. Development-administration on the
other hand requires an administrator who is dynamic, innovative, and development conscious to
perform his/her role in the administration for development. This is indeed a most decisive area in
development-administration. Development-administration is required to be responsive and
accountable. A top-down/bottom-up flow that is the important criteria, innovation, creativity,
adaptability, flexibility is crucial in the planning and administration of development activities.
All these requirements can be facilitated by development-administration.

A development administrative system requires highly motivated personnel at all levels. Such
personnel should be committed to the development goals and have a high degree of enthusiasm
to accomplish them. They need to possess and demonstrate their willingness, dedication to
achieve the progressive goals of development.

2.6 Goals of Development Administr ation

Development implies progressive improvement in the living conditions and quality of life
enjoyed by society and shared by its members. It is a continuing process that takes place in all
societies. Development has been conceptualized as a phenomenon of change and growth. It is
indeed a dynamic concept (Narman 1978). The goals of development administration can be
categorized into three namely: Economic goals should lay stress on eradication of poverty and
unemployment and development for overall improvement of quality of life; Social goals that at
brotherhood, welfare, happiness and peace and, Administrative goals which work for fairness,
justice and service.

1). Economic goal

In the area of economic goals, there exists a basis to plan for an annual growth rate of 7 per cent
or more on a long-term perspective. Goals have to be reset, measures are required to be taken
and sustained efforts have to be made to increase the annual growth rate to double digit which
will banish poverty and greatly reduce unemployment for which continued adequate attention is
also required to be given to the small and informal business sectors.

2). Social goal

27
The basic attributes of a good society include maintenance of peace and harmony, achievement
of material wellbeing, enhancing of justice and equality, enrichment of community life with a
sense of shared identity and commitment to rationality. Exploitation, ignorance, illiteracy, ill
health, exploding population, rampant corruption, variety of scams, the role of money and
muscle power, general apathy, unconcern of the people and several other maladies made the
country unprogressive.

One important social goal has to be the continuance and protection of the family as basic human
and social institution for the welfare, happiness and peace of individual members within the
group and the society. Strengthening of the family will be needed for the preservation of cultural
heritage and tradition. The strength of our social life is the harmonious relationship among the
people belonging to various linguistic, cultural and religious groups living in any part of this
country. Therefore, our social goals will be. Creating and promoting global social network
through messages of universal brotherhood, human welfare, happiness and peace.

What is the major goal of development administration?

The progressive improvement in the living conditions and quality of life enjoyed
by society, eradication of poverty and unemployment and development for overall
improvement.

3) Administr ative goal

The administrative goals must call for certainty, stability, creativity, innovativeness, super-
sensitivity, responsiveness, fairness, openness and transparency in national life. Presently, in the
developing countries like Nigeria there exists a highly bureaucratic civil service and excessive
centralization of authority and control. This excessive centralization of authority and control is
reflected in government ministers assuming overall and total control of their respective ministries
and departments in terms of decision making and paying inadequate attention to or giving little
opportunity of middle or lower level civil servants to participate not only in the decision-making
process but in the development process as well.

According to Rathod (2010) the significant goals of development-administration are as follows:

28
a). It is concerned with protection of tenancy that means tenant as the landowner.

b). Development-administration is concerned with distribution of surplus land to the landless and
peasant farmers.

c). It aims at 'Reservation' in the distribution of surplus land.

d). Agricultural development is another important aim of development-administration.

e). A minimum standard of living.

f). Improvement in the wellbeing of the individual.

g). Sharing of benefits by all.

h). Equitable distribution of income and wealth.

i). A greater degree of income security.

j). Expansion and improvement of health, education, housing, social welfare etc. and,

k). Safeguarding the environment.

Summar y of Study Session 2

In this session we have identified then nature of development administration, and understand that
development administration is both art and science, we identified, the development
administration is unique hence it requires highly motivated personnel at all levels. Such
personnel should be committed to the development goals and have a high degree of enthusiasm
to accomplish them. We discussed goals of development administration such as economic goals,
social and administrative goals.

2.8 Self - Assessment Questions (SAQs) for Study Session 2

SAQ 2.1 (tests Lear ning Outcomes 2.1)

Which off the following is not a feature of development administration?

A). Development administration is the end result of Public Administration in fragile

societies.
29
 B). Development Administration is an innovative approach to capitalism and globalization.

C). Development Administration requires public savings and investment in the economy, and
state intervention in the market system.

D). Development Administration may be ideologically driven or ethically motivated.

SAQ 2.2 (tests Lear ning Outcomes 2.2)

The scope of development administration includes the following, except:

A). The model of development administration depends on the nature of government and its
policies.

B). Development Administration involves the institution of national planning.

C). Development Administration caters to the emerging needs of the political elites.

D). Development Administration is an intellectual enterprise through which defined goals of

development can be achieved.

SAQ 2.3 (tests Lear ning Outcomes 2.3)

Discuss the nature of development administration as an art?

SAQ 2.4 (tests Lear ning Outcomes 2.4)

What is the science of development administration?

SAQ 2.5 (tests Lear ning Outcomes 2.5)

Identify the responsibilities of development administrator?

SAQ 2.6 (tests Lear ning Outcomes 2.6)

Highlight the goals of development administration?

References

Billar, N. (1971), “Adaptation Capacity and Organizational Development" in Frank Marini(ed),

Towards a New Public Administration: The Minnow Brock Perspective, Pp. 121 -134.

30
Hope, N. (1977) "Development-administration in Post-Independence Guyana," International
Review of Administrative Sciences, 43(1).

Narman, P. D. (1978), "Development: The Need for an Imperative Dialogue", in S.K. Sharma
(ed), Dynamics of Development: An International Perspective, New Delhi: Concept Publications,
Vol. 2: Pp. 693-700.

Ramesh. K. and V. Arora (1977), Introduction to the Ecological Dimensions of Development-

administration, New Delhi: S.A. Faisal, AI-Salem, Associated Publishing House, ,.

Rathod, J. (2010), Elements of Development-Administration: Theory and Practice, Rajasthan:

ABD Publishers.

31
Study Session 3: THEORIES/APPROACHES TO THE STUDY OF DEVELOPMENT
ADMINISTRATION

Introduction

Theoretical approaches to the study of development administration refer to those theories that
provide explanations to how development and change occurs in society. Below are some of
the theories that explain development;

Lear ning Outcomes for Study Session 3

At the end of the session you will be able to:

3.1 Discuss the various theories of development

3.2 Explain the Marxist Theory

3.3 Describe the Dependency Theory

3.4 Explain the World System Theory

3.5 Analyze the Developmental State theory

Dependency, Development, Mar xism, State theor y

3.1 The Moder nization Theor y

The focus of the modernization theory is dualism. The theorist believes that there are two
societies, the traditional society and the modern society. Thus, the problem of the Third World
countries is that there are influences of the traditional society by the modern society. The
theorists believe that Africa and the Third World countries should go through the process of
development that Europe went through for it to develop. Therefore, they must do away with all

32
forms of the traditional society. It is on this note that Rostow (1962) came out with the five
stages of economic growth which according to him the developing societies must undergo these
stages as follows:

a. The traditional society

b. The precondition for take-off
c. Take off
d. The drive to maturity
e. The age of high mass consumption
i. Tr aditional Society: Here, according to him the economic system is stationary
and dominated by agriculture with traditional cultivating forms. Productivity by
man hour work is lower, compared to that of the following stage. The society
characterized a hierarchical structure and so there is low vertical as well as social
mobility. An historical instance of Rostow’s traditional society can be founded
during the time of Newton.
ii. The Pre-condition for take-off: During this stage the rate of investment are
getting higher and they initiate a dynamic development. This kind of economic
development is a result of the industrial revolution. As a consequence of this
transformation, which includes development of agriculture too, workforces of the
primary sector become redundant. A prerequisite for this stage is industrial
revolution which lasted for a century.
iii. Take-off: This stage is characterized by dynamic economic growth. The main
character of this economic growth is self-sustained growth which requires no
exogenous inputs. Like the textile industry in England, a few leading industries
can support development. Generally, take off lasts for two to three decades e.g. in
England it took place by the middle of the 17th century or in Germany by the end
of the 17th century.
iv. The Dr ive to matur ity: This is characterized by continual investment by 40 to 60
percent. Economic and technical progress dominates this stage. New forms of
industries neo-technical industries emerged. Neo-technical industries supplement
the paleo-technical industries.

33
 v. The Age of High Mass Consumption: This is the final step of Rostow’s five
stage of development. Here most part of the society lives in prosperity and
persons living in this society are offered both abundant and multiplicity of
choices. According to him the west or the North belongs today in this category.

Therefore, modernization is the opposite of traditionalism which keeps hold of traditions and
custom (Okereke & Ekpe, 2002). Through this, traditionalism involves conservative connotation
while modernism a positive connotation. The modernization theory looks at the internal factors
of a country while assuming that with assistance traditional countries can be brought to
development in the same manner more developed countries have. The theory attempts to identify
the social variables which contribute to social progress and development of societies and seek to
explain the process of social evolution.

What is the focus of the modernization theory?

The focus of the modernization theory is dualism.

The idea behind the modernization theory is that the underdeveloped countries should seek and
imbibe those culture, values and patterns of life and political process that has developed in the
west in order to set them on course to development.

That they should do away with traditional society and embrace modernism, the theorist attributed
the problem of the third world country to vestiges of traditional society existing along the line of
modern society. The theorist who projected this idea includes Lucian Pye, Samuel Huntington,
W. W. Rostow, among others.

This theory was criticized in the 1960s because it could not lead to development of the third
world countries as predicted by the theorists.

The critics of the theory argues that though the modernization theory has not remained static and
changes have occurred in response to reconfigured development in the third world countries.
Two fundamental problems appeared to remain unresolved.

34
a. The modernization theory failed to understand and explain the uneven distribution of
wealth between the haves and have not of the world. That is modernization theorists
could not account for the growing gaps between countries of the advanced industrial west
and large majority of the Third World.
b. Modernization theory failed to provide real initiative in the formulation of policies geared
to the eradication of this income gap by reducing dependency of the third world on the
West and achieving capital accumulation at a sufficient rate to permit development in
these countries.

Pratt asserted that there are weaknesses in the modernization theory paradigm because it
neglected the historical and international context in which the new nations of the world find
themselves.

Finally, the work of the modernization theorist focused largely on the level of the single nation-
state but missed the economic and political relationship which operates at the level of the world
economic system.

The development strategies that flow from the perspective of the modernization theorist has
failed to cope with the problem of underdevelopment, and this is clear enough when we take a
critical look at the third world economics today. According to Mabogunje many of the solutions
that derive from the modernization had been attempted and have led to the worsening situation
for a sizeable proportion of underdeveloped countries.

In what seems to be similar solution to the persistent problem of underdevelopment, Garvin

Williams documented what he regarded as monumental failure of the world bank project in the
developing countries because of the banks undue emphasizes on modernizing the peasants to
western standard, Williams argued that for the modernization theorist. “Modernization is
identified with the diffusion of altitude and practices to rural producers and their incorporation
into the market economy. The problems of the peasants are explained hereby their exclusion
from the modern rather than exploitation by it. The solution is to incorporate into it (the world
capitalist system). Thus, we reject the modernization theorist in view of their inadequacies as
outlined above in analyzing the political economy of the third world countries. The

35
underdevelopment of the TWCs is not due to the low productivity of the traditional sector but the
activities of imperialism. The traditional and the modern are not separate sectorial unit but form
part of one contradictory unit articulated by relation of exploitation which marked the peripheral
capitalism.

3.2 The Mar xist Theor y

Since much of what is referred to as the Third World was under colonial domination by the
nations of Europe in the mid-19th century, Marx's views must be interpreted through his views
on colonialism (Avineri, 1968). Because he saw capitalism as a progressive force, Marx thought
that colonialism would benefit the colonies by introducing capitalist relations. Capitalism was
progressive because it had an endogenous dynamism which earlier socio-economic systems
lacked.

The very survival of capitalism hinged on its continuing ability to revolutionize its means of
production. As economic activity provided the basis for social structure, such dynamism
extended to the social realm too; even "traditional and unchanging" societies and peoples were
inevitably drawn into its fold and rescued from the "idiocy of rural life" and old prejudices. Thus,
Marx distinguished between what he saw as the objective laws of history and colonialism as a
morally untenable practice. Capitalism's socio-economic dynamism was explained by the logic
of its reproduction.

This logic required the continuous extraction of surplus value from production. Essentially, the
production process transformed nature into commodities for sale. The efficacy of such
transformation depended on the technical means at the disposal of the capitalist. More important,
it depended on the relations of production, since production also required the use of labor power.
Indeed, to Marx, the labor input was the source of value. Marx saw the extraction of surplus and
the exploitation of wage labor as the basis for class conflict. Such conflict would result in the
eventual overthrow of the bourgeoisie and the establishment of a system where private property
and the extraction of surplus by the subjugation of labor would be abolished. While the issue of
colonialism was never central to Marx's writings, Lenin (1939) wrote more specifically on the
subject in the early 20th century.

36
In doing so, Lenin made an important departure from Marx, arguing that colonialism would
retard development in the colonies. To Lenin, colonialism was the outcome of imperialism, the
highest stage of capitalism. This stage was characterized by the formation of monopolies and a
concentration of finance capital and production. Seeking new investment opportunities for
capital and new sources of raw materials, the strongest capitalist nations partitioned the world
into colonies. Thus, colonialism brought much of the non-capitalist world under the control of
international capital and locked the new colonies into the international division of labor as
suppliers of raw material.

By the 1960s, however, it was not clear that the world-wide spread of capitalism had led to the
progressive transformation of all societies. Nor had political independence significantly
improved the conditions of the former colonies. On the contrary, by most economic and welfare
measures, much of the Third World was not faring well. It was in this context that dependency
theory arose. Frank (1967), its most important spokesperson, drew on studies of Brazil and Chile
to argue that since the sixteenth century, an expanding world economy centered in certain core
regions had incorporated an undeveloped periphery in the form of colonies. But incorporation
into the world economy had led to a systematic economic underdevelopment of the periphery;
colonies were drained of surplus as they exchanged primary products for manufactured goods
from the industrialized core regions. Frank and others argued that political independence did not
alter this state of affairs since the interests of the dominant classes in the periphery were closely
tied with those in the core.

In one sense, Frank's thesis linking retarded growth in the periphery to the spread of capitalism,
continued Lenin's line of thought. However, the argument that development in the core would
only lead to underdevelopment in the periphery was a problematic discontinuity. To begin with,
it had only limited empirical validity. For instance, Brazil industrialized extensively since World
War II; the 1960s was a period of rapid economic growth (Evans, 1979). Evans showed how this
growth was made possible by an alliance between the Brazilian State, local capital and
multinational corporations (MNCs); he argued that development was not inconceivable even
under conditions of dependency. The inability of Frank's thesis to account for such contradictory
evidence highlights two broader problems in his arguments. First, it presented a static picture of
relations in a changing world economy. Second, by making relations with the core the engine of

37
all development, it failed to consider whether and how changing conditions within the periphery,
such as shifting social alliances, could affect economic development. These problems were a
point of departure for Cardoso and Faletto (1979) who called for a more nuanced understanding
of dependency.

They and other authors acknowledged that dependency constrains development, representing
"asymmetrical structural relations between social formations, such that the dependent society is
shaped to a large extent by the social dynamics and interests generated in the dominant society"
(Castells and Laserna, 1989). However, Cardoso and Faletto argued that a simple core-periphery
formulation could not account for the wide variation in the conditions of dependency even
among Latin American societies. Instead, they called for an "historical-structural" approach that
"emphasizes not just the structural conditioning of social life but also the historical
transformations of structures by conflict, social movements, and class struggles" (Cardoso and
Faletto, 1979).

In other words, dependency is not so much a formal theory as it is a methodology for the analysis
of concrete situations of underdevelopment (Palma 1978). The discrediting of dependency theory
did not, however, prevent its reincarnation in a different form: theories of the New International
Division of Labor.

3.3 The Dependency Theor y

Indeed, the dependency theory developed in the 1960 under of the guidance of the Director UN
Economic Commission for Latin America under the leadership of Raul Presbish and his
colleagues who were concerned by the fact that economic growth in the advanced industrial
countries did not necessarily lead to growth in the poorer countries, the study of the ECLA
school suggested that economic activities in the richer countries often lead to serious economic
problem in the poorer countries such possibilities predicted by the modernization school which
assumed that economic growth is beneficial to all even if the benefits were not always equally
shared.

The ECLA School explain that the phenomenon of underdevelopment thus; as poor countries
exported primary commodities to the rich countries who then manufactured products out of those
commodities and sold them back to the poorer countries at higher price, this relationship cannot

38
allow the Third World Countries (TWC) to develop, since the price is determined by the richer
countries. The value added by manufacturing usable products always cost more than the primary
(raw) material and sold them back to the poorer countries at a higher price.

Therefore, poorer countries would have to be earning enough from their export earnings to pay
for their imported goods.

For Preshbish and other scholars of the ELCA schools, the solution to this unequal exchange was
that poorer countries should embark on programme of import substitution industrialization (ISI)
so that they need not purchase the manufactured goods from the richer countries, although the
poorer countries will still sale some of their primary product in the world market, but their
foreign exchange reserve will not be used to purchase manufactured goods from the
industrialized countries. However, there were three basic problems with the ECLA School’s
recommendation.

a. The internal markets of the poorer countries are not strong or large enough to support the
economy of scale used by the richer countries to keep price low.
b. The political will of the leader of the poorer countries to transform primary product to
industrial commodity may not be possible or feasible.
c. The inability of the poorer countries to actually control the prices of their primary product
at home and abroad.

It was these obstacles of ISI policy on industrialization and its failure that resulted in the rise of
another group of Latin American writes known as the dependency school of thought; this school
took a radical approach to the ECLA and modernization school position.

Dependency can be defined as an explanation of economic development of a state in terms of

external influence these influences could be political, economic or cultural on national
development politics of a country. The scholars that propounded this theory include:

Theotonio Dos Santos, Henrico Cardoso and, Andre Gunder Frank. They are the major writers of
this school; they are more form Latin America. Dos Santos emphasized the historical dimension
of the dependency school as follows:

39
 “dependency is a historical condition which shapes a certain structure of the
world economy such that it favors some countries to the detriment of others, and
limit the developing possibilities of the subordinate economies. A situation in
which the economy of a certain group of countries is conditioned by the
development and expansion of another economy to which their own is subjected
to”.

There are three common features in this definition which the dependency theorist share:

a. Dependency characterized the international system as comprised to two sets of states

variously described as dormant – dependent, centre – periphery, or metropolis – satellite.
The dependent states are those states in Latin America, Asia and Africa, which have low
per capita income and which rely heavily on a single commodity to earn foreign
exchange which they need to buy drugs, machines, chemicals, iron and steel and
consumable products from the advanced industrialized countries.
b. The definition also assumed that external forces are of great importance to the economics
activities within the dependent states, these external forces includes: MNCs, international
commodity market foreign assistance (AIDs), communication and other means by which
the advanced industrialized countries can represent their economic interest abroad.
c. The definition of dependency indicates that the relations between the dominant and
dependent states are dynamic because the interaction between them tends not only to
reinforce one another, but also to intensify the unequal patterns from slavery to
colonialism to neo-colonialism, to the world trade organization (WTO). Thus,
dependency s a very deep sited historical process rooted in the internationalization of
capital and capitalism.

For Dos Santos and other dependency writers, Latin America has since the 19th centuries been
part of the international systems dominated by the now developed nation, Latin American
underdevelopment for them is the outcome of a particular series of relationship to the
international capitalist system.

Finally, dependency theory attempt to explain the present underdevelopment to many states of
the third world by examining the pattern of interaction among nations and by arguing that
inequality among nations is an intrinsic part of this interaction.

40
Andres Gunder Frank; Professor of Development Studies was one of the foremost dependency
scholars. He stated that historical research demonstrates that contemporary underdevelopment is
in large part the historical product of past and continued economic relations between the satellite,
underdeveloped countries and the now developed metropolitan countries. Furthermore, these
relations are essentially part of the capitalist system in a world scale as a whole. According to
Frank, capitalism has reinforced the rigid international division of labour which is responsible for
the underdevelopment of many parts of the world.

In the process of world capitalist development, Third World dependent states supply cheap
mineral, agricultural commodities and cheap labour and also serves as the depository of surplus
capital, obsolete technology and manufactured goods and services. The functions performed by
the dependent states, orient their economies towards the outside world in terms of money, goods,
and services which flows into the dependent states. However, the allocation of the resources was
determined by the economic interest of the dominant states and not that of the dependent states.

This international division of labor is ultimately the explanation for poverty and
underdevelopment, and there are little questions but that capitalism regards the division of labor
as necessary condition for the efficient allocation of resources; the most explicit manifestation of
this characteristics is in the doctrine of comparative advantage. Furthermore, the dependency
model rest upon the assumption that the economic and political power are heavily concentrated
and centralized in the industrialized countries.

Dependency writers believe that there is no distinction between economic and political power:
they believe that government will take whatever steps necessary to protect private economic
interest of their citizen and companies e.g. MNCs. The process of underdevelopment in
capsulated by Frank’s phrase:

“The development of underdevelopment is conceived in the synthesis of two

dimensions: The historical and the geographical with their synthesis occurring in
the level of their economies”.

41
In his work, Frank advanced the radical thesis that the Third World had been capitalist not from
its birth but from its conception as the producer of commodities for the world and for economic
surplus which became appropriated by non-producers – the metropolitan bourgeoisie.

A concomitant of this proposition is the assertion that underdevelopment for countries such as
Nigeria is not as original stage or a historical stage of economic growth, rather
underdevelopment constitute the necessary products of the contradictory process of capitalist
development, in short, it was the historical development of the capitalist world system into which
countries such as Nigeria were integrated from their inception that generated underdevelopment
in some and development in the other.

Therefore, the history of Third World development is the history of subordinated development,
which the advent of formal independence did not alter but merely perpetuated in new form.
Therefore, the dependency writers advocate that for the Third World countries to develop, they
need to delink from the western capitalist system. That this will enable them be part of the world
capitalist system from an advantageous position.

The dependency school had been subjected to serious criticism by some other writers. The critics
suggest that:

4 The dependency school is too much concerned about the external factors that led to the
underdevelopment of the third world countries, without considering the internal factors also
such as the role of the political elites, the middle class in these countries.
5 Their idea of delinking from the world capitalist system is not empirical, and thus, cannot be
sustain, this is because autarky is not possible in a globalized world.

6 The idea of import substitution industrialization could not work because the third world
counties do not have the large market to ensure the economies of scale which the developed
world use to keep prices low. And the products of the third world countries cannot compete
in their local market not to talk of the international market.

3.4 The Wor ld System Theor y

42
World system theory as propounded by Immanuel Wallenstein has its foundation on the
dependency theory. World System is a social system, comprising of identifiable boundaries,
structures, individual groups, prescribed rules, and coherence. The theory suggests that there is
an economic system in the world which aids the development of some countries at the expense of
others (Uche, 1994). Development according to the World system theory can be analyzed based
on three hierarchical levels which are; Core, Periphery, and Semi-periphery countries. The Core
countries are predominantly capitalist countries that are economically powerful, possess strong
military power and are not dependent on any state or country for their survival. The periphery
countries are made up of nations who are weak, lack strong economic base and central
government.

Their weaknesses provide an avenue of exploitation and manipulation. The peripheral countries
lack the basic technological facilities to boost their economy, as such, they export their raw
materials to the core countries at a relatively cheap rate and in turn import finished goods at a
highly exorbitant price. These countries depend solely on the capital given to them by the core
countries for their economic survival. The semi-peripheral nations fall between the two groups,
as such, they share the characteristics of both the core and peripheral countries. The semi-
peripheral countries are those who employ various strategies such as industrialization and
economic diversification to improve their economic status. They are sometimes exploited by the
core countries, but are not subject to perpetual manipulations and exploitation like the peripheral
countries. In fact, they sometimes exploit the peripheral countries. The central thesis of the world
system theory is that development is achieved as a result of the exploitation of one country by
the other. The development of any nation is therefore predetermined by the role it plays and the
class it belongs in the world economy. The world system theory has however been criticized for
being too focused on the economy. It has also been criticized for bridging the boundary between
the state and big businesses.

3.5 The Developmental State Theor y

The concept of the developmental state is used to identify a specific form of state that is said to
enjoy high levels of autonomy from different segments of the capitalist class as well as labour

43
unions, and have strong institutional capacity, both of which allow this specific form of state to
implement a set of successful state-interventionist policies in pursuit of developmental goals.

The concept was first coined by Chalmers Johnson (1982) with reference to the Japanese state. In
his seminal work, Johnson makes a distinction between two forms of state: developmental and
regulatory. According to this, the Western states that were first to industrialize hardly intervened
in the markets and since the late nineteenth century, these states have undertaken regulatory
functions; whereas “in states that were late to industrialize, the state itself led the
industrialization drive, that is, it took on developmental functions” (Johnson, 1982).

Johnson, therefore, describes the United States as an exemplar of a “regulatory state”, while the
Japanese state is depicted as a “developmental state”. The key difference between these two
different forms of state lies in their divergent rationales with regard to state-market relations. The
rapid industrialization of the Japanese economy was rendered possible through a “planned
rational” strategy of the Japanese state. Contrary to the neo-classical view that free market
mechanism is the only way to development economically, the Japanese case demonstrates that a
state-led development strategy could lead to rapid industrialization and high levels of economic
growth for late developing countries.

In this reading of development, a pilot agency planning long-term developmental goals

autonomously from political pressures - which was the Ministry of Trade and Industry in the case
of Japan - is of central importance. Fine (2006, 2011) identifies two variants within the theory of
the developmental state: the political school and the economic school. While the political school
focuses on the nature of the state itself in an attempt to comprehend the necessary features of the
state, thus allowing it to be developmental, the economic school is concerned with the policies
enacted by the state that produce state-led industrialization and economic growth.

If Nigeria is to evolve as a developmental state, the state must have autonomy to design
developmental goals, the vision and mission for development which is controlled by external
forces. And there must be strong institution that will drive development, the institution will
determine the rule of the game and ensure that the private sector conforms with the goals of the
development for the state.

44
 Summar y of Study Session 3

Under this study session, you learnt the various theories and approaches adopted for the study of
development administration. Beginning with the modernization theory, the session brought to the
fore the struggle between the traditional and modern societies. The theorists opined that Africa
and the Third World country should go through the process of development that Europe went
through for it to develop. Other theories discussed are the Marxist theory, Dependency theory,
World System theory and the Developmental State theory.

3.7 Self-Assessment Questions (SAQs) for Study Session 3

SAQ 3.1(tests Lear ning Outcomes 3.1)

Identify the five stages of development by W. Rostow

SAQ 3.2 (tests Lear ning Outcomes 3.2)

Discuss the Marxist theory of development

SAQ 3.3 (tests Lear ning Outcomes 3.3)

What is dependency theory, identify the tenet of dependency theory

SAQ 3.4 (tests Lear ning Outcomes 3.4)

Outline the views of the world system theory

SAQ 3.5 (tests Lear ning Outcomes 3.5)

Describe a developmental state

References

Avineri, S. (1968), Karl Marx on Colonialism and Modernization: His Dispatches and Other
Writings on China, India, Mexico, the Middle East and North Africa . (ed.) New York:
Doubleday.

45
Cardoso, F. H. and Enzo F. (1979). Dependency and Development in Latin America, trans. by
Marjory Mattingly. Berkeley, CA: University of California Press.

Castells, M. (1989). The Informational City: Information Technology, Economic Restructuring

and the Urban-Regional Process. Oxford: Basil Blackwell.

Evans, P. B. (1979), Dependent Development: The Alliance of Multinational, State and Local
Capital in Brazil. New Jersey: Princeton University Press.

Fine, B. (2006). The Developmental State and the Political Economy of Development. In K.S.
Jomo and B. Fine (eds), The New Development Economics: After the Washington
Consensus (pp. 1-20), London: Zed Books.

Fine, B. (2011), Locating the Developmental State and Industrial and Social Policy after the
Crisis. In The Least Developed Countries Report 2011: The Potential Role of South-
South Cooperation for Inclusive and Sustainable Development, Background Paper No: 3.

Frank, A. G. (1967). Capitalism and Underdevelopment in Latin America: Historical Studies of

Chile and Brazil. New York: Monthly Review Press.

Johnson, C. (1982). MITI and the Japanese Miracle: The Growth of Industrial Policy, 19251975.
Chicago: Stanford University Press.

Okereke, O. O. and Ekpe, A. E. (2002). Development and Underdevelopment: Politics of North

South Divide. Enugu: John Jacob’s Classic Publisher Ltd.

Palma, G. (1978). "Dependency: A Formal Theory of Underdevelopment or a Methodology for

the Analysis of Concrete Situations of Underdevelopment?" World Development vol.6,
Pp. 881-924

Rostow, W. W. (1962), "The Stages of Economic Growth" London: Cambridge University Press,
pp. 2, 38, 59

Suggestions for Fur ther Reading

Frank, A. G. (1967). Capitalism and Underdevelopment in Latin America: Historical Studies of

Chile and Brazil. New York: Monthly Review Press.

46
Okereke, O. O. and Ekpe, A. E. (2002). Development and Underdevelopment: Politics of North
South Divide. Enugu: John Jacob’s Classic Publisher Ltd.

Evans, P. B. (1979), Dependent Development: The Alliance of Multinational, State and Local
Capital in Brazil. New Jersey: Princeton University Press.

Should you require more explanation on this study session, please do not hesitate to
contact

your e-tutor via the LMS.

Are you in need of General Help as regards your studies? Do not hesitate to contact the
DLI IAG

iag@dli.unilag.edu.ng
08033366677

47
Study Session 4: DEVELOPMENT ADMINISTRATION AND ADMINISTRATION
DEVELOPMENT DEBATE

Introduction

This study session will expose you to the development administration and administration
development debate. You will be afforded the opportunity to understand both concepts and their
focus areas as we describe and distinguish the two terminologies.

Lear ning Outcomes for Study Session 4

At the end of this study session, you should be able to:

4.1 Describe Development Administration

4.2 Explain Administration Development
4.3 Distinguish between Development Administration and Administration Development

: Development Administration, Administration Development, Reform, Reorganization

4.1 Development Administr ation

Development administration is described as the conscious study of administrative, political,

economic and social environment. The basic assumption behind development administration is

48
that social changes can be initiated or guided by administration machinery. Development
administration advances developmental programmes suitable to implement policies, projects, and
programs that improve socio-economic conditions in developing countries. Development
administration aims to reduce poverty in the newly independent countries (Adamolekun, 1983).

It represents an action oriented strategy and path breaking approach towards administration.
Development administration is an attempt to integrate multitude functions of government in a
systematic way established to fast-track nation-building. Edward Weidnerdefined development
administration as the process of guiding an organization toward the achievement of progressive
political, economic and social objectives that are authoritatively determined.

Development administration involves programme implementation for socio-economic progress

and monitoring of nation building progress, as well as administrative reforms to keep the
bureaucracy updated (Adegoroye, 2006).

Thus, development administration is the bureaucratic process that initiates and facilitates socio-
economic progress by making the optimum use of talents and expertise available; and
mobilization of administrative skills to speed up the development process. Development
administration concentrates on the needs and desires of people through formulation and
implementation of programmes, policies and projects. It plays a central role in planning,
coordination, control, monitoring and evaluation of policies and programmes. It is not only
concerned with the application of policies as determined by the political representatives but also
with initiating efforts to modify existing conditions to serve the masses (Ake, 1996). Generally,
development administration is situated within the study of specific environment, and is
influenced by the overall political, economic, and cultural attributes of society.

Development administration is focused on the application of administrative theories to problems

of developing societies characterized by different ethnic, cultural, historical, religious, linguistic,
or racial backgrounds. Development administration therefore, aims to achieve national
development through adoption of goal-oriented and self-reliant administrative process.
Development administration recognizes and highlights the unity, rather than dichotomy between
politics and administration in an ecological setting (Riggs, 1980).

49
Development administration is concerned with the planning, organizing and controlling of the
stated objectives of government establishments; to promote and support social, economic and
political objectives. Development administration seeks quantitative improvement in material
wellbeing of fragile societies. Its major objective is to improve the living standard, reduce
maternal –child mortality, and provide critical socio-economic infrastructure that support health
care, education, sanitation, transportation, security, communication. Development administration
is therefore, implemented to meet needs of specific target groups, enlist popular support for
development planning and implementation as well as, achieve socio-economic change.

4.2 Administr ation Development

Public officials are expected to apply administrative principles and practices that will facilitate
the effectiveness of development programmes and resolution of human problems in society. The
need to accelerate growth in developing countries necessitated the distinction between
development administration meant to accelerate socio-economic transformation from
administrative development which fall under the purview of public administration.
Administration development is concerned with structural capacity-building and the strengthening
of the institutional capabilities of administrative institutions charged with the formulation and
implementation of development interventions. Administration development is required to
improve the capacity of the institutions of state to undertake the implementation of strategic
projects (Adebayo, 1995). Administration or organization development is undertaken to fill the
gaps in the institutional structures, systems and reinforce existing values, achieve behavior
modification and reshape organizational relationships and interactions. Administrative
development has the purpose of promoting and enhancing government capacity to discharge the
development initiatives as well as, strengthening the organizational structures required to achieve
development targets.

While development administration is more militant and result-oriented, undertaken to change the
worsening condition of developing nations; administrative development is a continuous function
of every public bureaucracy, meant to enhance the effectiveness and efficiency of public services

50
through innovation and reform. Administrative development is described as public organization
restructuring, reorganization and rationalization. Administration development was initiated in
Nigeria’s pre-colonial society due to the existence of multiple systems of feudal rule with
conflicting values and divergent political models and governmental systems.

Whereas some traditional societies in Nigeria have centralized systems of authority,

administration and political organization, others were content with segmented systems and
mutual protection societies (Balogun, 1983). While other systems of government and public
administration represented a combination of the centralized and the segmented models.
Administratively, these traditional, undeveloped and unscientific principles were unsuitable to
modernization and nation building hence, the adoption of the Weberian bureaucratic principles.
Modern administrative philosophy was transferred from the British parliamentary system and
instituted to replace the overpowering influence of rituals and ceremonies and, the dominant role
of traditional autocratic tendencies towards legal-rational authority, neutrality and impersonality.

Through administration development the British colonial government introduced uniform and
universal standards of administrative behaviour in a highly centralized social organization. The
inherited form of public bureaucracy introduced the doctrine of parliamentary supremacy,
collective ministerial responsibility, political neutrality of public officials and, security of tenure
of public officials. After independence in 1960, the public service was compromised first by
political competition and later by the military intervention of January 1966. Under military
autocratic rule, decrees were enacted and used to destabilize the bureaucratic organization with
attendant effect on public administration control and accountability.

Describe what you understand as administration development?

Administration development is described as public organization restructuring,

reorganization and rationalization.

Post-independence decline in the efficiency of public bureaucracy was further attributed to

stifling hierarchical and bureaucratic control, demotivating leadership styles and negative impact
of the values underlying administrative practices and behavior (Balogun, 1983). The return to
civil rule in 1979 under the Presidential system of government did little to change the damage to

51
the bureaucratic organizations. The public service witnessed diminishing influence of hierarchy,
grading, job evaluation, efficiency and merit as the ability of most public organizations to
achieve specified objectives gradually declined. These circumstances necessitated the re-jig of
the administrative structure to infuse innovation, creativity and efficiency.

Bureaucratic reform, restructuring and reorganization are the rationale for administrative
development. Notably, administrative development encompasses strengthening the capacity of
public organizations and institutions towards achievement of good governance. A highly
developed public administrative system was necessary to deliver government effectiveness, the
rule of law, political stability, security of life and property, voice and accountability and, strong
regulatory control. Hence, administrative development is characterized by the institutionalization
of qualitative values in the society. The inability of the public administration to effectively
deliver on the nation building interventions further necessitated the adoption of planned change
in the hierarchy, structure and processes of public ministries, departments and agencies.

4.3 Distinguish between Development Administr ation and Administr ation Development

Development Administration in emerging societies represents cluster of politico-bureaucratic

relationships to achieve integrated process of change. It is the transformative process of change
in the economic, social, political and administrative aspects of society. Administration
development on the other hand involves internal reforms within the public organization structure.

Development administration implies the execution of programmes and projects designed to bring
about progressive improvement in the material wellbeing of the people. Development
administration is a people-centred vision and its merit is judged from the point of fulfillment of
public policy rather the procedural clearance of bureaucratic administration.

Development administration represents the goal oriented or plan based developmental tasks,
which deviates from traditional instrumental designs of policy implementation.

Administration development denote series of coordinated changes within the administrative

system characterized by increase in size, specialization, division of tasks, professionalization of
personnel and capacity to implement nation building projects and programmes.

52
Development administration is therefore, different from administrative development in that
development administration is undertaken by the public and private sector, while administrative
development is the preoccupation of the public and civil, appointed and elected officials. Also,
administrative development is a public administration innovation function performed to enhance
the efficiency, effectiveness and economy of the public bureaucracy.

4.3.1 Features of Development Administr ation:

a). It is concerned with coordinating and integrating effort of government for implementation
of socio-economic programmes.

b). It has to do with achieving change, improvement and innovation in society.

c). The scope of development administration encompasses federal, state, local governments
as well as, non-governmental and private organizations.

d). It is focused at improving administrative efficiency and processes and systems

e). Primary objective is the coordination of complex organization goals and relationships.

f). It is the establishment of plans, policies, programmes and projects.

4.3.2 Features of Administr ation Development:

a). It is concerned with ensuring the effectiveness in the organization and deployment of the
human and material resources.

b). It is focused on attaining improvement in the operations of public agencies.

c). It ensures that development institutions possess the requisite capacity to implement the
development projects and programmes.

d). It enhances the skills and knowledge of organizational personnel.

e). It is aimed to create and facilitate the capacity and capability of development institutions.

f). It involves organization reform, restructuring and rationalization.

g). Its major purpose is to make administrative agencies to become more effective, efficient
and economical in the performance of assigned tasks.

53
However, there are some areas of commonality between development administration and
administrative development. These areas of similarities are explicit in the followings:

a). Both development administration and administrative development involve organization

capacity building for the attainment of goals and targets.

b). They utilize human resources for the achievement of their assigned tasks.

c). Administrative development facilitates the capability of development agencies to achieve

socio-economic progress.

d). While development administration is dominated by materialistic and quantifiable goals,

administrative development is underlined by qualitative and immeasurable values.

e). Development administration and administration development occur within public

organizations.

f). Both adopt structures, methods and procedures to interact with the environment.

g). Development administration and administrative development require positive, persuasive

and innovative attitudes.

Summar y of Study Session 4

In this study session 4 you learnt that to describe development administration as governmental
effort towards socio-economic change. In addition, you learnt to distinguish development
administration from the term administrative development which describes public administration
innovation function performed to enhance bureaucratic efficiency, effectiveness and economy.

4.5 Self - Assessment Questions (SAQs) for Study Session 4

Now that you have completed this study session, you can assess how well you have achieved its
Learning Outcomes by answering the following questions.

SAQ 4.1 (tests Lear ning Outcomes 4.1)

Name one aim of development administration in newly independent countries?

SAQ 4.2 (tests Lear ning Outcomes 4.2)

54
 Explain the rationale for administration development?

SAQ 4.3 (tests Lear ning Outcomes 4.3)

Compare and contrast development administration and administration development?

References

Ake Claude (1996) Democracy and development in Africa, Washington DC: The Brookings
Institute

Adamolekun Ladipo (1983) Public administration: A Nigerian and comparative perspective, New
York: Longman Inc

Adebayo Augustus (1995) Principles and practice of public administration in Nigeria, Ibadan:
Spectrum Books Limited

Adegoroye, Adegoke (2006) Public service reform for sustainable development: The Nigerian
experience; New Zealand, March Edition

Balogun, M.J (1983) Public administration in Nigeria: A developmental approach, Lagos:

Macmillan

Riggs, W. F (1980) ‘The ecology and context of public administration: A comparative

perspective’ in Public Administration Review, March/April

Suggestions for fur ther Reading

Adebayo Augustus (1995) Principles and practice of public administration in Nigeria, Ibadan:
Spectrum Books Limited

Adamolekun Ladipo (1983) Public administration: A Nigerian and comparative perspective, New
York: Longman Inc

Iyoha, F. et-al (2003) Rethinking governance and development in the 21st Century, Ekpoma:
Institute of Governance and Development

Nnoli, Okwudiba (1981) Intellectual aspects of the struggle for Nigeria’s development, Dakar:
CODESRIA

55
 Should you require more explanation on this study session, please do not hesitate to
contact

your e-tutor via the LMS.

Are you in need of General Help as regards your studies? Do not hesitate to contact the
DLI IAG Center by e-mail or phone on:

iag@dli.unilag.edu.ng
08033366677

Study Session 5: ECOLOGY OF DEVELOPMENT ADMINISTRATION

Introduction

Ecology of development administration is an attempt to relate development administration to its

environment. In other word, attention is focused on dynamic relationships between development
administration system and its environment such as physical, social, political, legal and
technological subsystems. The ecological approach is popularized by Fred Riggs.

The ecology of administration sees all administrative systems as being part of the larger
environment and as such, when systems are considered to be living, they interact within
themselves (among component parts), as well as within themselves and the larger environment.
Thus whatever affects the larger environment affects the systems found within it. Development
administration is considered as part of the administrative system, it exists within the larger
national environment. This national environment within which the development administration
must function is in turn affected by a larger international environment. This session examines the
environment of development administration.

56
 Lear ning Outcomes for Study Session 5

By the end of this session you will be able to:

5.1 Explain the influence of political environment on development administration

5.2 Discuss the effect of economic environment on development administration

5.3 Describe the impact of social environment on development administration

Ecology, Environment, Economic, Political, Social

5.1 Influence of Political Environment

The major characteristics of the political environment of the third world include the following:
political instability defined by instability of regimes, constant coups or rapid changes of
government through unconstitutional and violent means.

The propaganda value of democracy in recent times seems to be reversing this tide. Low levels
of political participation manifesting in absence of political representation and mobilization.
Weak political institutionalization typified by of rule of law and rationalization of political
structures and functions. Political interference in administrative duties, and distorted distribution
of projects (Obi and Nwanegbo, 2006:203). Lack of patriotism that result in lack of national
identity and the absence of national unity, and very low calibre of leadership which result in lack
of direction both in policies, programmes and actions of government (Achebe, 1983).

The administrator who finds himself in such a political setting therefore, is a technician whose
techniques are rendered impotent by potent and negative political forces, and indeed so
overwhelming is the political influence on bureaucrats that bureaucracy in the third world has
itself become highly politicized (Sharma, Sadana and Kaur, 2012). Politicization of the civil
service per se is not undesirable, only certain aspects of such politicization exert a negative
influence; for instance, when the civil service becomes partisan and proceeds to reflect such a
partisan bias in its activities, then it becomes undesirable. If politicization on the other hand
becomes identifying with the policies and objectives of the government of the day in an
enthusiastic manner, such politicization is desirable. A more ideal political situation for

57
development administration is that in which the political environment is more predictable in the
following ways:

a). Strong culture of the r ule of law: In other words, an environment in which sudden
unpredictable changes (personnel and programmes) are avoidable. In such an environment, long
range planning and completion of programmes or projects is possible. Where the reverse
situation obtains, political personalities and policies change in a disruptive fashion. It is this
phenomenon that explains the inability of a system such as Nigeria to make reasonable progress
along the path of development (Ibietan, 2013).

What is the ideal political situation for development administration?

A more ideal political situation for development administration is that in which the
political environment is more predictable.

b). Representation: A political environment that creates avenues for the articulation and
aggregation of component interest groups stands a better chance of making progress than that
which is characterized by lack of representation and elite domination. Indeed, the capacity for
social and political mobilization depends solidly on individuals and groups having that feeling
that they have a stake in government. Such a feeling could be assured in groups or persons
through the sitting of government projects in their area or at least their identifying with a key
member of the decision making group. Where people feel that they are not represented in any
government or regime, the tendency is for them to become politically indifferent (apathy).
Political apathy serves to reduce the effectiveness of any government as it becomes less and less
legitimate in the eyes of many. This process of political indifference has the effect of reducing
the total energy input of the political system. Consequently, it affects the progress of
development (Ibietan, 2013).

c). Rationalization of political str uctures: refers to the process of dividing political functions
among political structures including the executive, legislature and judiciary. This process is
similar to the process of division of labor in industries- since it results in greater specialization
and more effective handling of roles by the various arms of government. But more importantly,

58
there is uniquely political element in this process of rationalization which is the effective
checking and balancing act which the various arms of government exercise on one another.

5.2 Effect of Economic Environment

The economic environment of development administration exercises major constraints on the

process of development. This is mainly due to the fact that the world economy has largely
become internationalized; therefore, no economy is insulated from changes within the
international environment. This means that there are uniquely local economic forces which
operate as constraints on economic development and that these exist side by side with economic
forces emanating from within the international environment. The level of economic buoyancy of
a country determine the implementation of developmental goals, also, developmental planning
helps the government of a country to increase its revenue thereby improving its economic base.

5.3 Impact of Social Environment

The socio-cultural environment of development administration has behaviour as its reference

point. Development in any society is a function of the attitudes exhibited by its members. Factors
such as the need for change or maintenance of status-quo; respect for watch (time
consciousness); work ethics and group dynamics among others affect the pace of development in
any society. If for instance, the people show apathy towards innovation and manifest traits of
avarice and grand corruption in the face of weak or non-existent public accountability
mechanisms which characterize the environment of developing countries, it becomes axiomatic
that these countries cannot be optimistic in terms of development (Ibietan, 2013). It is based on
this that Mead in Pye (1965:190) argued that development in any social system is a function of
the sweeping character of social transformation which demands total rather than selective
change.

Summar y of Study Session 5

This session has examined the ecology of development administration, by looking at those
environmental factors that impinges on development administration such as the political
environment, economic environment and socio-cultural environment. Each of these

59
environmental variables has significant effects on the implementation of the developmental goals
which is the hallmark of development administration.

5.5 Self -Assessment Questions (SAQs) for Study Session 5

SAQ 5.1 (tests Lear ning Outcomes 5.1)

Discuss the influence of political environment on development administration

SAQ 5.2 (tests Lear ning Outcomes 5.2)

Explain the effect of economic environment on development administration

SAQ 5.3 (tests Lear ning Outcomes 5.3)
Describe the impact of social environment on development Administration

References

Achebe, C. (1983). The Trouble with Nigeria. Enugu: Fourth Dimension Publishers.

Obi, E. A. and Nwanegbo, C. J. (2006). Development Administration: Theory and Applications.

Onitsha: Book-Point Ltd.

Pye, L. W. (1965). Political Culture and Political Development. Princeton: University

Press.Ibietan, J. (2013). Conceptual Issues in Development Administration, International
Journal of Innovative Education Research 2 (2), Pp. 19-31.

Sharma, M. P; Sadana, B. L. and Kaur, H. (2012). Public Administration in Theory and Practice.
Allahabad: Kitab Mahal.

Suggestions for fur ther Reading

Obi, E. A. and Nwanegbo, C. J. (2006). Development Administration: Theory and Applications.

Onitsha: BookPoint Ltd.

Sharma, M. P; Sadana, B. L. and Kaur, H. (2012). Public Administration in Theory and Practice.
Allahabad: Kitab Mahal.

60
 Should you require more explanation on this study session, please do not hesitate to
contact

your e-tutor via the LMS.

Are you in need of General Help as regards your studies? Do not hesitate to contact the
DLI IAG

iag@dli.unilag.edu.ng
08033366677

Study Session 6: DEVELOPMENT PLANNING IN NIGERIA

Introduction

The end of the Second World War, European economies which were adversely affected needed
urgent action to revamp them. George C. Marshall Plan was adopted by the United States of
America to provide huge financial aid to the European economies to help them reconstruct and
rehabilitate their infrastructure. The introduction of the Marshall Plan played significant role in
the historical narrative of development administration. Similarly, the effort British Colonial
Office was responsible for establishment of development planning agencies in Nigeria.

Lear ning Outcomes for Study Session 6

61
When you have studied this session, you should be able to:

6.1 Conceptualized Development Planning

6.2 Explain the Importance of Development Planning
6.3 Describe the Institutions for Development Planning in Nigeria
6.4 Highlight the History of Development Planning in Nigeria

: National Planning, Development Planning, Planning Institution, Planning Objectives

6.1 Concept of Development Planning

Development requires the conscious attempt to attack wide-spread poverty, reduce inequalities
and remove the spectra of unemployment. Development is a multi-dimensional process involving
changes in structures, attitudes and institutions as well as, the acceleration of economic growth,
reduction of inequality and eradication of absolute poverty (Todaro, 1977). According to Ake
(1996) development is a process by which people create and recreate themselves and their life
circumstances to realize higher levels of civilization in accordance with their own devices and
values. Planning as the term implies is the formulation of a strategy for the future. It also means
the assessment and allocation of present resources to meet some specific goals in the future.
When a nation plans, it assesses its resources and allocates them among different competing uses
based on specific priorities. Planning is the conscious effort to influence, direct and control
changes in economic variables of consumption, investment, exports, and imports over a period of
time to achieve predetermined set of objectives (Iheanacho, 2014). Planning simply is deciding
what to do, how to do it and who is to do it.

National development planning is an effort to schedule and promote the activities of government
ministries, departments, agencies and public enterprises across all levels of administration
(Stolper, 1970). Development planning is government programme designed to effect some
permanent structural changes in an economy along perceived objectives and necessary
interventions required to achieve those stated objectives (UNPD, 2008). Development planning
is a means to an end; the realization of predetermined and well defined objectives laid down by a
central planning authority (Ugwu, 2009). Development planning involves processes which
ensure that national policies and strategies are realized.

62
Thus, the process of plan formulation in Nigeria involves almost all the agencies of the federal
and state governments. This definition focuses on functional relations among the various levels
of government and the institutions engaged in development efforts. Subsequently, national
development planning can be categorized according to purpose, scope, degree of
comprehensiveness and duration. Nigeria's planning experience dates back to the 1940s when the
British colonial office requested the colonies to prepare development plans which could assist it
in disbursing the Colonial Development and Welfare Funds (Adedeji, 1971).

Development planning is the conscious effort by all levels of government and the private sector
to maximize the socio-economic welfare of the people (Osoba, 1973). Development planning is a
document containing quantitative and qualitative description of the current economic potentials
of the economy. Development planning is regarded as the strategy for achieving rapid increase in
the standard of living of people and narrowing the gap between the rich and poor and between
developing and advanced societies.

National development planning is the framework within which governments intervene in the
socio-economic development process. The ability to institutionalize planning and make it an
efficient tool for generating growth and managing development is the test of government
commitment to national development objectives (Abdulsalami &Abubakar, 1989).

Development Planning Process involves the following sequence:

a. Identify areas of development interventions

b. Set development goals and targets
c. Formulate policies and course of action
d. Articulate appropriate projects and programmes
e. Mobilize available financial, human and material resources for effective realization
and execution of programmes
f. Review and evaluate projects and programmes.

6.2 Impor tance of Development Planning

Development planning is essential for several reasons such as:

63
a). The economic expectations and political sensitivity between centralization and
decentralization are balanced in the planning process.

b). National development planning fosters promotion of federal character of government.

c). National development planning affords all levels of government in Nigeria the process of plan
formulation and coordinated implementation.

d). National development planning provides the premise for planning techniques, plan
formulation, national and sectorial policies, funding and manpower strategies, etc.

e). NDP provide guidelines and analysis of the major problems of the country's socioeconomic
system, sector by sector and indications of policy types.

f). National Development Planning contain estimates of funds which will be available during the
plan period and the objective of the plan.

g). National development policy circular helps to prepare the mind of government agencies both
at the federal and state levels for the impending planning exercise.

h). National development planning encompasses the economic, political, social and cultural
dimensions of nation-building.

i). National development plans are necessary to increase national wealth, promote general
welfare and eliminate mass poverty.

6.3 Institutions for Development Planning in Niger ia

National planning in developing countries like Nigeria is supported by organizations like the
UNO, World Bank, IMF, African Development Bank, WHO, UNESCO, UNICEF, among others.
The process of plan formulation in Nigeria involves almost all the agencies of the federal and
state governments. At the heart of the process was the cluster of organizations referred to as the
National planning institutions. The World Bank Mission Report, 1954 introduced some bodies
which formed the nucleus of government planning (IBRD, 1945; Federal Republic of Nigeria,
1977). The main institutions which constitute the planning machinery in Nigeria are:

a. National Economic Council

b. Economic Secretariat

64
 c. Economic Committee
d. Joint Planning Committee
e. Central Planning Office
f. National Economic Advisory Committee
g. Joint Planning Board
h. Military Council
i. State Bank and Statutory Corporations
j. Regional Development Boards

a). The National Economic Council

At the core of the national planning process are the ministerial programmes drawn up
independently of the overall financial, economic and technical considerations. The National
Economic Committee (NEC) was the supreme organ for national planning, and coordination of
economic policies. Under the NEC, the federation and regions discussed the common economic
problems and development policies which are beyond their respective constitutional
jurisdictions. The council was consultative in nature without administrative responsibility.

b). The Economic Secretar iat

This was established at the centre, with regional counterparts. Functionally, it was responsible to
the Economic Committee of the Council of Ministers. The Secretariat assist the Economic
Committee to undertake feasibility studies for plan formulation. The Economic Secretariat was
charged with the responsibility to collect, and analyze information on development potentials of
the country; appraise economic forecasts, estimate the financial requirements of development
projects and programmes, and prepare studies and documentations and estimates. The Secretariat
also reviewed estimates of development expenditure based on the priority needs of the country
and report to the Economic Committee of the Council of Ministers for necessary action.

c). Economic Committee

This is a committee of the Council of Ministers charged with the formulation and coordination of
the financial and economic policies of federal development projects. The Economic Committee
was composed of cabinet members responsible for economic development, and report to the

65
Council of Ministers. The Economic Committee similarly has regional counterparts. The
Committee bring together, compare and reconcile the various plans on a basis consistent with the
overall size of the public investment programme and recurrent expenditures in the light of
manpower and other resources requirements.

d). Regional Development Boar ds

These are Nigeria’s principal institutions for the financing and execution of agricultural and
industrial development projects. The regional boards made projections for establishment and
construction of critical infrastructure that have the greatest potential to impact on the socio-
economic lives of the people.

e). The J oint Planning Committee

The Joint Planning Committee (JPC) which was established in 1958 as a technical advisory body
to guide the federal and regional governments in the formulation of development plans. The JPC
is to examine and review the plans of the various governments, direct the Economic Secretariat
in data collection and dissemination. In addition, the JPC was expected to render to the NEC the
projection, patterns and rates of growth, assessment of major needs in critical sectors of the
economy, establishment of development priorities and establish the physical, financial and
manpower requirements for the national plans.

The Joint Planning Committee is expected to prepare broad tentative targets of national income
and related magnitudes as well as guidelines for planning activities by various agencies. The
recommendations of the NEC are passed on to the NEC and constitute the raw materials for
determination of national objectives, development priorities, general economic policy measures
and planning strategies. The priorities, targets and strategies approved by the NEC form the
framework within which all ministries, departments and agencies are expected to prepare their
respective sectoral programmes and unit plans.

f). Centr al Planning Office

The Central Planning Office (CPO) is comprised of experts and was created to replace the
planning unit in the Ministry of Economic Development and Reconstruction. The CPO is
responsible for the statistical projection of economic trends and coordination of all federal and

66
state plans. They convene work meetings involving representatives of concerned ministries to
gather information on types and quantity of manpower, study effect of overall employment,
construction cost, strategy of project financing, expected revenues and access management
capacity to execute programmes. On the basis the data generated, the CPO estimates the cost and
benefits of each ministries programmes. The aim is to prepare an integrated view of the national
plans for minimal review by the JPC and the approval of the National Economic Committee.

g). National Planning Office

The National Planning Office has its origins in the small Economic Planning Unit (EPU) created
in the Federal Ministry of Economic Development during the preparation of the First National
Plan. The National Planning Office (National Planning Commission) is responsible for
coordinating both the national development plan and other federal government economic
programmes. It also serves as the secretariat of the Joint Planning Board, Conference of
Ministers/ Commissioners for economic Planning and, the National Economic Council.

h). Militar y Councils

The Supreme Military Council and the Armed Forces Ruling Council from 1966-1979, and
18983-1999 were military bodies comprised by high ranking officials from the army, air force,
navy, immigration, police and custom and excise to exercise legislative powers. The military
institution led by the Head of State and Commander-in-Chief of the armed forces of the
federation is the supreme planning and approving authority for the federal and state
governments.

i). National Economic Advisor y Council

Established in 1972 the National Economic Advisory Council (NEAC) was to ensure that the
input and interest of the private sector and other groups were incorporated into the national plans.
The membership of the NEAC cut across the Chambers of Commerce, Manufacturers
Association Agricultural concerns, trade unions and professional bodies. The NEAC as a
planning body was resurrected in 2019.

j). J oint Planning Boar d

67
Established during the Second National Development Plan the Joint Planning Board was
composed of permanent secretaries of all planning ministries in the federal and state
governments. Other members are top planning officers of the ministries and permanent
secretaries of finance in the federation. These experts assess the relevance of recommendations
of the Central Planning Office to the overall national development priorities, using technical
criteria.

k). Conference of Commissioner s

The Conference of Commissioners of Economic Planning is a policymaking body headed by the

federal executive council. Its objective was to discuss plan guidelines and consider the
recommendations of the JPC and progress report of projects under implementation.

l). National Economic Council

The 1979 constitution created the National Economic Council (NEC) which occupies almost the
apex of Nigeria's planning machinery. The council consists of the Vice-President as Chairman;
the State Governors and the Governor of the Central Bank of Nigeria as members. The National
Economic Council has powers to advise the President concerning the economic affairs of the
federation, and in particular on measures necessary for the coordination of economic planning of
the various governments of the federation.

6.4 Histor y of Development Planning in Niger ia

The national development planning process from inception was centralized in nature, from top to
bottom. Since Nigeria became independent in 1960, it has formulated and implemented four
Development Plans (1962 - 1968, 1970 - 1974, 1975 - 1980 and, 1981 - 1985); one structural
adjustment plan, two 3–year rolling plans, four visions and strategies. After the Civil War, the
strategy for development administration was intensified through the policy of reconciliation,
rehabilitation and reconstruction to accelerate development. The 1981-85 Plan process was set in
motion through a planning workshop held at the University of Ibadan in 1978 at the instance of
the National Planning Office (Esman, 1988). Areas emphasized at the workshop included

68
planning techniques, plan formulation, national and sectorial policies, manpower implication for
the plan development strategies, etc.

Development planning involves several institutions that deliberate, analyze, review and
recommend plan priorities, targets and programmes (Ugwu, 2009). The plan document goes
through several stages and is often discussed at ministerial levels, the Joint Planning Board, the
Conference of Ministers/Commissioners for Economic Planning and, the National Economic
Advisory Council. Finally, it is submitted to the higher decision- making bodies in the country
for example, the National Economic Council for approval and subsequently published as a policy
document. Shortly after the publication of the guidelines, circular letters are sent to all federal
ministries and state governments inviting them to submit their projects for the plan.

The belief that development can be achieved through government intervention originated after
the Great Depression, World War II, Marshall Plan and was accelerated in Nigeria in 1954 by the
British colonial administration. The governments of Nigeria under the United Kingdom and the
International Bank for Reconstruction and Development (World Bank) sent a mission to appraise
the economic development prospects in Nigeria and recommend practical measures to accelerate
the organization and finance of development goals (IBRD, 1945). The World Bank Report on
Nigeria coincided with the adoption of the 1954 Federal Constitution which devolved political
and policymaking powers to the decentralized regions. National development planning was
premised on the belief that appointed and elected public officials possess adequate appreciation
and understanding of the values and expectations of the society.

List 3 bodies engaged in development planning in Nigeria?

i). National Planning Board

ii). National Economic Council

iii). National Economic Advisory Council.

A significant feature of the history of development planning and administration in Nigeria is the
militarization of governance and the trend towards greater centralization of the federation. The
military after the Civil War in 1970 adopted highly centralized institutions of national panning

69
with the objective to achieve high levels of integration and unity in the ethnic federation. The
central government became very strong and concentrated major administrative and economic
powers to the federal government. The military adjusted the Legislative List in favor of the
federal government by allotting overwhelming functions within its jurisdictions.

Consequently, there was significant imbalance between federal and state government share of
resources and responsibilities. This was followed by the creation of states without administrative
and economic viability which resulted in state dependence on federation account for
development resources, and integration of the inter-governmental policymaking institutions and
processes. Another important factor that contributed to the development planning in Nigeria is
governments’ adoption of the value of socialism and mixed economy. Hence, development
planning was given greater impetus through the dualistic system of public and private
involvement for mutual benefit and in the national interest. Consequently, national development
planning was encouraged as an instrument of nationalism and attempts to liberate the national
economy from foreign domination. Through national development planning, Nigeria sought to
exercise sovereignty and control over national destiny.

Development plans in Nigeria are therefore, motivated by the desire to ‘industrialize’ and to
‘Nigerianize’ with defined roles for state enterprises and indigenous private sector. National
development plan was further accentuated in the indigenization of selected industrial and related
enterprises in 1972. The policy gave Nigerians opportunity for active participation in the
industrial and commercial sectors of the national economy (Balewa, cited in Gboyega et-al,
1989). Under the Fourth Republic, National Development Plans and Annual Budgets are
undertaken by the Budget Office, Ministry of National Planning and recently by the Ministry of
Finance and National Planning.

The National Planning Directorate under the Ministry of Finance issues circulars to all federal
ministries, departments, agencies and public sector organizations requesting the provision of
respective proposals and programmes along with revenue projections. Similarly, at the state
level, the authorized ministry initiates the procedure requesting the various commissioners and
directors of government agencies to submit estimates of proposed programmes and projects with
funding sources. Later, guidelines are sent to all government ministries, departments and
agencies indicating the priorities of the national government and the nature of the plan with

70
which it proposes to achieve these objectives. The aim is to acquaint those concerned with
formulation of the plan at various levels with the vital points which must be borne in mind in
drawing out their respective department or units plans.

Proposals from these ministries, departments and agencies are passed to the National Planning
Directorate/Department of the Ministry of Finance and National Planning. Each division of the
National Planning Directorate is assigned specific sector and related activity. The ministry
organizes seminars for representatives of the relevant sectors. This is followed by a meeting of
representatives of each ministry to discuss details of the components of their proposals.
Ministries and agencies may be persuaded to review or modify certain ideas, programmes or
projects. The end product of these sessions will be subjected to further technical evaluation
before being presented to the Budget Office and later the Federal Executive Council. The
National Economic Council which is the highest planning authority in the 1999 Constitution is
chaired by the Vice-President of the country.

Political party ideology and the policy preferences play major role in the consideration and
choice of programmes and projects. The final decision is further based on financial projections
and projected revenue estimates from various sources. Later, final plan is presented to the
National Council of States for consideration and accommodate the special interests of
stakeholders on the policy and strategies for attaining them.

Lastly, the plan is sent to the legislative house for deliberation, review and approval. Approved
plans by the legislature are sent back to executive for implementation by the various ministries,
departments and agencies. The coordination and supervision of the plan execution is undertaken
by the Ministry of Finance and National Planning through the release of funds and approval of
schedules for financing prepared by the respective government agencies. The session concluded
with a brief history of development planning ideology in Nigeria.

Summar y of Study Session 6

Under study session 5, you learnt that Development planning is the conscious effort by all levels
of government and the private sector to maximize the socio-economic welfare of the people. The

71
benefits, institutions and agencies for national planning and coordination were discussed against
the background of the national development ideology.

6.6 Self - Assessment Questions (SAQs) for Study Session 6

Now that you have completed this study session, you can assess how well you have achieved its
Learning Outcomes by answering the following questions.

SAQ 6.1 (tests Lear ning Outcomes 6.1)

Define national development planning?

SAQ 6.2 (tests Lear ning Outcomes 6.2)

Which of the following is not a planning institution?

A. Economic Committee
B. Joint Planning Committee
C. Central Post Office
D. National Economic Advisory Committee

SAQ 6.3 (tests Lear ning Outcomes 6.3)

The National Economic Council as the highest planning authority in the 1999 Constitution is
chaired by:

A. The Vice-President
B. The President
C. The Minister of Finance
D. The Economic Adviser to the President

SAQ 6.4 (tests Lear ning Outcomes 6.4)

The private sector organ authorized to participate in national development planning in Nigeria is
known as…

A. Nigeria Economic Advisory Council

B. National Economic Advisory Council
C. National Economic Council

72
 D. Nigeria Chamber of Commerce and Industries

SAQ 6.5 (tests Lear ning Outcomes 6.5)

What is the motivating ideology of national development planning in Nigeria?

A. Maintenance of the British economic structure
B. Protection of foreign businesses
C. Desire to ‘industrialize’ and to ‘Nigerianize’
D. Monopoly for state and private enterprises.

References

Abdulsalami, Ibrahim and Abubakar Halithi (1989). ‘The management and administration of
development in Nigeria’, in Alex Gboyega, Yaya Abubakar and Yaya Aliyu (Eds). Nigeria Since
Independence: The first twenty-five years, Public Administration Vol. III; Ibadan: Heinemann
Educational Books Nigeria Limited

Adedeji, A (1971) ‘Federalism and development planning in Nigeria’ in A. A. Ayida and H. M.

A. Onitiri (Eds) Reconstruction and Development in Nigeria: Proceedings of a National
Conference, Ibadan: Oxford University Press

Balewa, Abubakar Tafawa (n.d); Nigeria Speaks, London: Longman, Green and co; cited in Alex
Gboyega, et-al, (1989).

Esman, M. J (1988) The maturing of development administration’ in Public Administration and

Development, Vol. 8, No. 2

Federal Republic of Nigeria (1977). Federal Republic of Nigeria: Third National Development
Plan, 1975 – 80, Lagos: Government printer

Iheanacho, E. N. (2014): National development planning in Nigeria: an endless search for

appropriate development strategy. International Journal of Economic Development Research and
Investment, 5(2) 49-59.
International Bank for Reconstruction and Development (1954), The economic development of
Nigeria, Federal printers, Lagos, P. xxi

73
Todaro, M. P. (1977). Economics for Developing World. An Introduction to Principles, Problems
and Policies for Development. London: Longman Group Limited.

Osoba, S. O (1973) ‘Ideology and planning for national economic development in Nigeria, 1946-
72’ in M. Tukur, et-al (Eds) Nigeria in search of a viable polity, Institute of Administration,
Zaria, Nigeria.

Stolper, W (1970) ‘Problems of Development Planning’ in Maier, G. M (Ed) Leading issues in

economic development: Studies in International Poverty; Oxford University press

Ugwu, C. E. (2009). The imperatives of national development programmes harmonization in

Nigeria: Vision 2020, Millennium Development Goals and Seven Point Agenda. Nigerian
Journal of Public Administration and Local Government, XIV(2)200-216.
Suggestions for fur ther Reading

Ejimudo, K. B. O. (2013). The problematic development planning in Nigeria: Critical discourse.

Journal of Developing Country Studies, 3(4) 67-80.
Jhingan, M. L. (1992). The Economics of Development and Planning. Delhi: Virinda
Publications (P) Ltd.
Goullet, D (1992) Development: Creator and destroyer of values, in World Development, Vol. 20,
No. 3

Obayan, E. D (1962) ‘The machinery of planning in the federation of Nigeria’ in the Nigerian
Journal of Economic and Social Studies, Vol. 4 No. 3

Pye, Lucian (1963). The political context of national development, in Swerdlow, Irving (ed)
Development administration: Concepts and problems, Syracuse: Syracuse University Press

Should you require more explanation on this study session, please do not hesitate to
contact

your e-tutor via the LMS.

74
Are you in need of General Help as regards your studies? Do not hesitate to contact the DLI IAG
Center by e-mail or phone on:

iag@dli.unilag.edu.ng
08033366677

Study Session 7: STRATEGIES OF DEVELOPMENT PLANNING IN NIGERIA

Introduction

75
Under this study session you will learn the various development strategies adopted to generate
the blueprint for development during colonial rule and post-independence in Nigeria.
Development administration was formally introduced in Nigeria through the Ten-Year Plan for
Development and Welfare and accelerated through the National Development Plans. Thereafter,
the country has moved on to adopt the 3 Year Rolling Plan, four visions including the NEEDS,
Vision 20:2020, the Transformation Agenda (2011-2015) and strategies including the Economic
Recovery and Growth Plan of the present administration.

Lear ning Outcomes for Study Session 7

At the end of this study session, you should be able to:

7.1 Explain the Colonial Development Plan in Nigeria (1946-55)

7.2 Describe the First National Development Plan (1962-68)
7.3 Describe the Second National Development Plan (1970-75)
7.4 Describe the Third National Development Plan (1975 – 80)
7.5 Describe the Fourth National Development Plan (1981-85)
7.6 Discuss the Structural Adjustment Programme (1986-1990)
7.7 Describe the Rolling Plan (1985 - 99)
7.8 Explain Vision Committee 2010
7.9 Discuss Four-Year Medium Plan (1999-2003)
7.10 Explain the National Economic Empowerment and Development Strategy (2003-
2007)
7.11 Explain the Vision 20: 2020 (2007)
7.12 Describe the Seven – Point Agenda (2007-2011)
7.13 The Transformation Agenda (2011-2015)
7.14 Economic Recovery and Growth Plan (2017-2020)

: Development Plan, Development Strategy, Development Objective, Rolling Plan

7.1 The Colonial Development Plan in Niger ia (1946-55)

76
The history of development planning in Nigeria could be traced to the preparation of the Ten
Year Plan of Development and Welfare (1946 – 1955) by the colonial administration in Nigeria.
Following the passage in 1940 of the Colonial Development and Welfare Act in London for the
improvement and wellbeing of the colonies, a long term development plan was initiated for the
Nigeria. The Ten-Year Plan Development and Welfare for Nigeria was presented before the
Legislative Council of Nigeria, through the Sessional Paper No. 24, in December 1945. The plan
proposal covers a period from 1946 to 1956. In February 1946, statute incorporating the plan was
adopted by the Legislative Council. This was followed by the establishment of the Colonial
Economic Development and Social Committee by the Colonial Office. The Committee was to
adopt strategies for agricultural development, industrial development, overall coordination,
control of finances and the preparation of major policies (Obayan, 1962).

Also, a Central Development Board which was made up of the Development Secretary, chief
commissioners for the Northern, Western and Eastern Provinces, the Commissioner of the
Colony, the Financial Secretary to the Government, and the Director of Public Works was
established in the Secretariat in Lagos. The function of the Board was to laydown planning
principles, policies and funding of development year by year and across the country.

In the provinces and the colony, the chief commissioners established Area Development
Committees made up in each case of the Resident and representatives of departments. The area
committees were expected to evaluate proposals from the provinces prior to their submission to
the Central Development Board. Each of the twenty-four provinces also had a Provincial
Development Committee consisting of the Resident as Chairman, representatives of departments
and some unofficial members. The role of these committees was to prepare local schemes to be
sent to the Area Development Committee. However, overall approval of proposals was vested on
the Governor-Council in Lagos, while final authority was exercised by the Secretary of State for
the Colonies in the Colonial Office.

In one sentence, state the first attempt at national development planning in Nigeria?

77
 The history of development planning in Nigeria could be traced to the preparation
of the Ten Year Plan of Development and Welfare (1946 – 1955) by the Colonial
administration in Nigeria.

The Ten-Year Plan of Development and Welfare in Nigeria (1946 -55) contained coordinated
proposals aimed to improve the standards of health, education, transport and other social welfare
services, which were consistent with the political ideology of the British ruling Labour Party.
Under the plan a total planned expenditure of about N110 million for a period of ten years was
envisaged with N46 million of the amounts to be met with funds provided under the Colonial
Development and Welfare Act. The economic recession of 1929, retrenchment policies in 1930s,
and need for rapid structural reforms in the colonies informed the allocation of funds and
programmes under the Plan. There was also the associated problem of paucity of data, non-
quantifiable economic targets against which the performance of the plan could be measured and
lack of participation by Nigerians.

However, following the adoption of the federalism in Nigeria through the Lyttleton Constitution
in 1954, the Ten-Year Colonial Plan was abandoned (Ibietan & Ekhosuehi, 2013). This was to
enable each of the autonomous regions adopt individual development plans to cover the rest of
the years leading to Independence. Hence, the introduction of the five-year development plan
(1955- 60). The total cost of projects budgeted for the period was N328 million meant to cover
the provision of critical infrastructure necessary for nation-building in a period leading to
independence. The coordination of the regional and national plans was undertaken by the
National Economic Council with the aim to eliminate overlapping of plans. The planning
institution provided the platform to discuss development policies and economic problems with a
view to achieve integrated development.

The National Economic Committee was under the leadership of the Governor-General and later
by the Prime Minister with the regional premiers, federal and regional ministers as members
were charged with the coordination of development policies and programmes under the
decentralized political environment. The National Economic Committee acted as a consultative
body in which the governments of the Federation and the regions meet to discuss common
economic problems and encourage the development of a national economic policy irrespective of

78
separate constitutional functions. The National Economic Committee later established the Joint
Planning Committee in 1958 as its intellectual and technical arm which was charged with the
advisory task of formulating planning objectives and of coordinating the planning proposals of
the federal and regional governments. The committee was required to:
1. Examine and report upon any matters remitted to it by the National Economic Council or
individual governments.
2. Advise the National Economic Council, in respect to:
a). Preparing a statement of fundamental objectives for the guidance of the planning committees
of the several governments.
b). Examining the plans formulated by the governments and advising on possible modifications
for the purpose of coherence and synergy.
3. To direct its secretariat in:
a). The preparation studies, reports and surveys.
b). The collation, coordination, and dissemination of information.

Planning under this period was marred by lack of expertise in the Joint Planning Committee,
composition by junior officials, irregular meetings, high turnover among committee members,
and political rivalry among the regional governments.

7.2 The Fir st National Development Plan (1962-1968)

After gaining independence, there was a compelling need to have a home-grown development
plan for Nigeria that will invariably reflect Nigeria's independent status. The First National
Development Plan (1962-68) stressed the imperative of active participation by Nigerians and the
private sector in national development. It also pledged to increase the standard of living and the
creation of necessary conditions for public support and awareness of the potentials that exist and
the sacrifices that will be required (Federation of Nigeria, 1963).

The First National Development Plan provided for total investment expenditure of N2.130
million, with public and private sector investments of N1,352.3 million and N780 million
respectively. Funding for the plan was expected to come from both external and external sources.
These sources comprise external loans, foreign aid, borrowings from commercial banks and

79
Central Bank, technical assistance, earnings from marketing boards and statutory corporations,
and government budget surplus.

The Post-Independence Plan therefore, provided the framework for participation by the federal
and regional governments as well as, set uniform and quantifiable national economic priorities.
Each regional government's plan was developed independently in line with their respective
ruling party ideology, while the federal government projected encompassing targets, developed
out of political negotiation, bargain and coalition.

The aim of the Plan is to achieve and maintain the highest possible rate of increase in the
standard of living. Specific objectives of the Plan were to:

a). Grow of the gross domestic product at 4 per cent per annual;
b). Raise savings ratio to 15 percent on of the gross domestic product;
c). Achieve annual investment of 15 percent of gross domestic product;
d). Prioritize agriculture, industry, and training of manpower.
e). Accelerate technical education and managerial training;
f). Expand health and educational facilities;
g). Increase real income;
h). Provide employment opportunities and,
i). Improve the living conditions of Nigerians.
The implementation of the plan was extended to 1969-70 due to the Nigerian civil war. However,
while the expectations and targets of the public sector were clear, the degree of participation of
the private sector was confined to contributions from taxes and other revenues. Hence, the
Federal and regional governments did not incorporate in their respective Plans the intentions of
private entrepreneurs, thereby limiting its scope.

7.3 The Second National Development Plan (1970-1975)

The Second National Development Plan was launched after the Nigerian-Biafra Civil War in
1970. The Plan witnessed attempts to rectify some of the shortcomings of the first development
plan. The Plan was aimed at national reconstruction, rehabilitation and reconciliation, as well as,
the attainment of a national sense of purpose. Greater priority was accorded to defense, security,

80
agriculture, industry, transportation and manpower development. Further attention was paid to
the provision of social services and utilities such as electricity, telecommunication and water
supply (FRN, 1970).

The circumstances under which the Second National Development Plan was formulated required
strong interventionist policy and coordination from the federal government in the national
economy. This was made possible through the Economic Planning Unit and later the Central
Planning Office in the Federal Ministry of Economic Development. In addition, a private-sector
dominated National Economic Advisory Council was also set up to ensure that all the sectors of
the economy were given adequate consideration in the formulation of the Plan.

Another feature of the Second National Development Plan was that it was formulated and
implemented under a military regime. It was imperative for the country to quicken its
development agenda to catch up with the lost years under civil conflict and forge a united front
for socio-economic and infrastructural renewal and transformation. The primary aim of the Plan
was to reconstruct and rehabilitate the economy and achieve social development of the populace.
The Plan which had a capital expenditure of N3.2 billion, diversified projects, was national in
character and fully integrated the federal and state governments. Defense, security, transport,
roads, waterways, telecommunications, agriculture and social services were given attention.

The guiding philosophy of the Plan was to establish:

a). A united, strong and self-reliant nation;
b). A great and dynamic economy;
c). A just and egalitarian society;
d). A land of bright and full opportunities for all citizens; and
e). A free and democratic society.
A profound qualitative value contained in this Plan was that of democracy, justice, equality and
egalitarian society. The emphasis on these unquantifiable objectives was no doubt an attempt to
address the internal issues that caused the civil war, and thereby marked a significant departure
from the materialistic orientation of previous development plans. The Plan was a surplus budget
and was to be financed through public corporations and marketing boards, the Central Bank of
Nigeria and sundry borrowings, external financing. The Plan laid high emphasis on domestic
sources of funding with emphasis on the capability of the indigenous population to take

81
advantage of the macroeconomic policies that were intended to enhance private sector capital,
entrepreneurship and commerce.

The objectives of the plan were considered to be so relevant that they were included in the 1979
constitution. Yet their inclusion in the constitution did not materialize into plan implementation
but they were considered as ordinary directives that are not legally enforceable (Abasili, 2004).
The major reason was that federal and state governments lacked the relevant institutional
machinery and manpower resources required for economic planning and implementation.

7.4 The Thir d National Development Plan (1975 – 1980)

The Third National Development Plan began in 1975 with a plan total capital expenditure of 30
billion Naira, later revised to 43.3 billion Naira (Federal Ministry of National Planning, 1981).
The main approach was to utilize the proceeds of the oil boom to develop the productive capacity
of the economy and improve the standard of living of the people. The Plan emphasized projects
which had direct effect on the living standard of the common man. Sectors such as agriculture,
health, housing and water supply were therefore prioritized (FRN, 1977). The Plan maintained
the broad objectives of the previous Plans. The objectives for the Third National Development
Plan are:
a). Increase in per capital income.
b). More even distribution of income.
c). Reduction in the level of unemployment.
d). Increase in supply of high level manpower.
e). Diversification of the economy.
f). Balance development.
g). Indigenization of economic activities.

The Plan was prepared within the Oil Boom years characterized by increases in both the price
and domestic production of crude oil. The Plan projections yielded recurrent budget surpluses
which were adequate to implement the assumed capital programmes and projects. The budget
included two sources of revenue: statutory corporations and external finance despite the
projected increment in crude oil proceeds. The Plan therefore, adopted an ambitious agenda to

82
accelerate national development through external borrowing to finance critical economic
infrastructure necessary for nation-building.

However, the Plan reinforced the military trend towards greater centralization through the
increase in federal share of national resources and responsibilities. The appropriation of mineral
resources from the state governments and increase in the fiscal responsibility of the federal
government increased dependence of states on federal allocation and created problems for
national integration, competitiveness and productivity.

7.5 The Four th National Development Plan (1981-85)

The Fourth National Development Plan provided for an investment of N82billion and was
launched by a democratically elected government under a new constitution based on the
presidential system of government. The Plan was intended to further the process of establishing a
solid base for the long-term economic and social development of Nigeria (FRN, 1981).

Priority areas of the Plan were agriculture particularly food production, manufacturing, education
and manpower development, the strengthening of economic infrastructure such power, water
supply, telecommunication, transportation, and diversification of the economy away from
reliance on petroleum sector. This was to be achieved through establishment of public sector
enterprises and promotion of export industries such as textiles, tyres, coal, pulp and paper, and
the traditional exports like cocoa, groundnuts, palm produce and rubber products. The objective
of agricultural revolution was deemed feasible through the assignment of significant role to the
local government councils and the mandatory integration of agricultural interventions into state
government projects. The establishment of River Basin Authorities was one of the strategies
adopted to drive the mass production of agriculture for consumption and industry.

Also, social services like housing, health and water supply were emphasized with a view to
improving the quality of life in both urban and rural areas. It went further to articulate the need
for self-reliance, self-sufficiency and mass mobilization. The overriding aim of the Plan was to
improve the living conditions of the people. The material objectives set for the Plan were:
a). Increase in average income of average citizen.
b). More even distribution of income among individuals and socio- economic groups.
c). Reduction in the level of unemployment and underemployment.

83
d). Increase in the supply of skilled manpower.
e). Reduction of dependence of the economy on a narrow range of activities.
f). Balanced development, that is, achievement of a balance in the development.
g). Participation by citizens in the ownership and management of productive enterprises.
h). Greater self-reliance on local resources to achieve the various societal objectives.
i). The optimum utilization of Nigeria's human and material resources.
j). Development of technology.
k). Increased productivity.
l). The production of a new national orientation conducive to greater discipline better attitude to
work and, a cleaner environment.
The plan was predicted on a buoyant performance of the oil sector with projected capital
expenditure of N82 billion, which was to be financed through expected aggregate surplus of the
federal and state governments. Other sources of funding are the internal sources of public
corporations, domestic and external borrowings. The budget anticipated that significant financial
resources required for implementing the public sector investments will be generated internally.

However, the shortage of executive capacity especially in the area of project formulation and
preparation in government ministries and corporations affected the integration of national plans.
Also, many of state ministries and their agencies were unable to submit feasibility studies or
evaluate the guidelines issued by the National Planning Office. Absence of skilled manpower at
key ministries and public agencies to generate and collate statistical data for national planning in
led to uncoordinated planning activities and affected the Plan implementation.

7.6 Str uctur al Adjustment Progr amme – SAP (1986-1990)

By 1986, Nigerian economy was traumatized by huge deficits and external debts rose to the tune
of $22billion. The situation necessitated the introduction of debt rescheduling under the
Structural Adjustment Policy of the World Bank and the International Monetary Fund (Ikeanyibe,
2009). The Structural Adjustment Programme (SAP) was an economic emergency programme
with the objective to shift from "project-based" to “policy-based” planning system. The
economic reform programme re-evaluated the planning system and placed more emphases on
private sector-led economy over the prevailing public-sector-led system.

7.7 The Rolling Plan (1990-98)

84
The concept of Rolling Plan was initiated into the Nigeria Development Plan process from 1990
to 1998 under the Ibrahim Bababgida Administration. The rolling plan is a medium term plan
which covers about 2-3 years for purpose of apportioning finance and execution. The projects
and programmes under the rolling plan are broken down into annual plans for gradual execution.
The concept of the rolling plan was introduced under the Babangida Administration as a
substitute for the Five-Year Development Plans. The challenges of inadequate data, funding,
manpower, policy inconsistency as well as political instability required the preference for plans
that are executed within a short time of 2 to 3 years.

The Rolling Plan enabled government to breakdown capital intensive programmes and projects
into annual projections for the purpose of funding. Hence, a percent of a particular project is
selected for execution in a particular year and following project review, fresh allocation is
devoted for another phase till the entire programme is completed. Similar to the Medium Term
Income and Expenditure Framework, the Rolling Plan provides consistency and continuity in
government programmes. This is with the intent of preventing abandonment of projects and to
utilize the limited funds maximally.

The primary objective of the three-year rolling plan that was initiated in 1990 was to provide the
opportunity of socio-political and economic revival.
The First National Rolling Plan covered the period 1990-1992. The main objective was to
consolidate the achievements made in the implementation of the Structural Adjustment
Programme and address the pressing problems which confronted economic development.
The Second National Rolling Plan (1993-1995) sought to tackle the observable lapses and
inefficiencies in the operation of monetary and credit instruments, low level of capacity
utilization of industries and the rising trends of unemployment.
The Third National Rolling Plan (1996 – 98) had employment generation as its priority
programme (National Planning Commission, 2000; cited in Okojie, 2002).
Hence, the objectives of the rolling plans in Nigeria were to reduce inflation and exchange rate
volatility, maintain infrastructure, achieve agricultural self-sufficiency, and reduce the burden of
the Structural Adjustment Programme on the most vulnerable people.

7.8 Vision Committee 2010

85
Abacha administration set up the Vision 2010 committee in 1996 which submitted its report to
the government in September 1997. The Committee recommended the centrality of a national
vision which was divided into prospective, rolling and annual plans.

7.9 Four-Year Medium Plan (1999-2003)

The Four-Year Medium Plan was initiated by the democratic government of the Fourth Republic
under the National Economic Direction (1999-2003). The plan had the primary object of
pursuing a strong, virile and broad- based economy with adequate capacity to absorb externally
generated shocks. In addition, the New Plan aimed at a highly competitive economy; responsive
to incentives, private sector led, diversified, market-oriented and open to external stimulus.

7.10 National Economic Empower ment and Development Str ategy – NEEDS (2003-2007)

National Economic Empowerment and Development Strategy (NEEDS) is a continuation of the

Four-Year Medium Term Plan for the period 2003 to 2007. NEEDS has its basic thrust:
economic empowerment, wealth creation, employment generation, poverty reduction and value
reorientation. The NEEDS document as a poverty reduction strategy paper aimed to significantly
eradicate poverty in Nigeria, promote self-reliance, entrepreneurship, innovations, rewards hard
work, protect citizens and property (National Planning Commission, 2005; World Bank, 2010).
NEEDS is a federal government plan, but it was also expected that the state and local
governments develop derivative plans from it, namely: State Economic Empowerment and
Development Strategy (SEEDS) and, Local Economic Empowerment and Development
Strategy (LEEDS) respectively.

7.11 Vision 20: 2020 (2007)

The Nigerian government launched the Vision 20:2020 in 2007 as a development planning
initiative. The vision 20:2020 is a perspective plan that has its major aim of making Nigeria a
fully developed economy, Africa’s Financial capital and one of the 20 biggest economies in the
world by Year 2020 (Ugwu, 2009). Ibietan & Ekhosuehi (2013) observed that the Vision 20:2020
called for an urgent developmental paradigm shift and it placed a duty on Nigerians regarding
their attitudes in order to realize the stated objectives and targets.

86
The Vision 20:2020 had clear goals and it includes engendering peaceful, harmonious and stable
democracy by 2020; sustenance of sound, stable and globally competitive economy with an
estimated GDP of not less than $900billion and per-capita GDP of over $4000. Other goals
include provision of infrastructure, modern system of education, improved health sector and
public services delivery that can guarantee high life expectancy; modern and technologically
based agriculture sector, a competitive manufacturing sector, etc.

7.12 Seven–Point Agenda

The Yar' Adua Administration presented a Seven Point Agenda for development in Nigeria which
is aimed at tackling the numerous problems of: power and energy; food security and agriculture;
wealth creation and empowerment; transport sector; land reforms; security; and education. The
Seven-Point Agenda was an off-shoot of the United Nations Millennium Development Goals
(MDG's) and, it was expected to run concurrently with its objectives of eradicating extreme
poverty and hunger; achieving universal primary education; reducing child mortality by two-
third; improving maternal health; combating HIV/AIDS, malaria and other preventable diseases;
ensuring environmental sustainability and developing global partnership for development by
2015.

7.13 The Tr ansfor mation Agenda (2011-2015)

In May 2011, the Goodluck Jonathan Administration introduced the "Transformation Agenda"
aimed to transform Nigeria to an economic powerhouse in the world. The development policy is
embedded with good governance, security, energy and human development and aimed to address
the surge in poverty and insecurity (Awojobi, 2017). The Transformation Agenda focus on three
core areas: revamping ailing industries, encouraging agriculture and agro-related businesses,
promote small and medium enterprises. Secondly, the policy aims to reduce poverty and create
massive employment; and thirdly, to fight corruption at all levels of governance.

7.14 Economic Recover y and Gr owth Plan (2017-2020)

Mohammadu Buhari Administration launched the Economic Recovery and Growth Plan
(ERGP) in 2016 as a medium-term economic framework meant to stimulate the recessive
economy back to sustainability and accelerate development. The Economic Recovery and
Growth Plan is an all-inclusive and comprehensive strategy that prioritizes agriculture and food

87
security and set out the Government’s commitment to funding social safety nets. The ERGP
aims to restore growth, engender macroeconomic stability and diversification. It equally aims to
provide support for the economically disadvantaged individuals, create jobs, and improve
accessibility and affordability to quality healthcare across the country and improved human
capital in the areas of improved education for all.

Lastly, the ERGP aims to significantly increase investment in infrastructure through a robust
Public-Private-Partnership arrangement, improve the legal and regulatory framework for doing
business and promote digital-led growth through the expansion of broadband coverage. It is
anticipated that cumulative effect of the ERGP's targets will translate to Gross Domestic Product
of 2.19% in 2017, 4.62% between 2018 and 2019 and, 7% by 2020. It is equally predicted to
reduce unemployment rate from 13% in 2016 to 11.23% by 2020 (Kyaram & Ogwuche, 2017).

Summar y of Study Session 7

In study session 7, we enumerated the different development plans adopted in Nigeria beginning
from the Colonial Plan for Welfare and Development through the First National Development
Plan to the Fourth and concluded with the Rolling Plan. The study session introduced you to the
strategies of development planning in Nigeria starting with the Ten Year Colonial Plan for
Welfare and Development through four National Development Plans up to the Rolling Plans.

Self - Assessment Questions (SAQs) for Study Session 6

Now that you have completed this study session, you can assess how well you have achieved its
Learning Outcomes by answering the following questions.

SAQ 7.1 (tests Lear ning Outcomes 7.1)

What is the objective of development strategy in Nigeria?

SAQ 7.2 (tests Lear ning Outcomes 7.2)

The Ten-Year Plan Development and Welfare for Nigeria was adopted by the

A. Colonial office

88
 B. Legislative council
C. Development council
D. Economic council

SAQ 7.3 (tests Lear ning Outcomes 7.3)

What is the key priority of the Second National Development Plan?

SAQ 7.4 (tests Lear ning Outcomes 7.4)

Which of the following is not an objective of the Third National Development Plan?

A. Increase in per capital income

B. More even distribution of income

C. Reduction in the level of employment

D. Increase in supply of high level manpower

References

Abasili, O. Celestine (2004), Citizen and State relations: A political approach, Somolu, Lagos:
Concept Publications

Awojobi, O. N. (2015). Cultivating policy for development in Nigeria: An appraisal of President

Goodluck Jonathan’s Transformation Agenda (2011–2014). International Journal of Humanities,
Engineering and Pharmaceutical Sciences 1(9)1-11
Federation of Nigeria (1963), First National Development Plan 1962-68, Federal Ministry of
Economic Development, Lagos 12th January
Federal Republic of Nigeria (1970). Second National Development Plan 1970-74, Lagos:
Government printer
Federal Republic of Nigeria (1977). Third National Development Plan, 1975 – 80, Lagos:
Government printer
Federal Republic of Nigeria (1981), Fourth National Development Plan 1980-85, Lagos:
Government printer
Ibietan, J. & O. Ekhosuehi (2013). Trends in development planning in Nigeria: 1962 to 2012.
Journal of Sustainable Development in Africa, 15(4)297-311.

89
Ikeanyibe, O. M. (2009). Development planning in Nigeria: reflections on the National
Economic Empowerment and Development Strategy (NEEDS) 2003-2007. Journal of Social
Sciences, 20(3) 197-210
Kyarem, R. N., & D. D. Ogwuche (2017). Nigeria’s Economic and Growth Plan (ERGP):
Tackling the macroeconomic downside risks. International Journal of Advanced Studies in
Economics and Private Sector Management 5(3) 1-10.
National Planning Commission (2005). National Empowerment and Development Strategy
(NEEDS) (Abridged). Abuja: NPC, Reproduced by CBN.
Obayan, E. D (1962) ‘The machinery of planning in the federation of Nigeria’ in the Nigerian
Journal of Economic and Social Studies, Vol. 4 No. 3
Okojie, C. E. (2002). Development Planning in Nigeria Since Independence. In: M. A. Iyoha, C.
O. Itsede (Eds.): Nigerian Economy: Structure, Growth and Development, Benin City: Mindex
Publishing.
Ugwu, C. E. (2009). The imperatives of national development programmes harmonization in
Nigeria: Vision 2020, Millennium Development Goals and Seven Point Agenda. Nigerian
Journal of Public Administration and Local Government, XIV(2)200-216.
UNDP (2008). Human Development Report. New York: UNDP.
World Bank (2010). World Development Report, World Bank, Washington D. C.
Suggestions for fur ther Reading
Adubi, A. A. (2002). Plan-budget link in Nigeria: An exploratory investigation. NCEMA Policy
Analysis Series, 8(2): 1-17.

Babawale Tunde (2007) Nigeria in the crises of governance and development: Retrospective and
prospective analyses of selected issues and events, (Vol. 1) Lagos: Concept Publications Limited

Fadeyi, A. O (2005) African perspective on globalization and sustainable development, Lagos:

Faculty of Social Sciences, Lagos State University, Ojo

Journal of Nigerian Public Administration and Management, Vol. 1, No. 2

Uche Emmanuel (2019) ‘Development plans and policies in Nigeria: Observed impediments and
Practical best alternatives’, International Journal of Research and Scientific Innovation, Vol. 6,
Issue 7. July

90
Should you require more explanation on this study session, please do not hesitate to
contact

your e-tutor via the LMS.

Are you in need of General Help as regards your studies? Do not hesitate to contact the
DLI IAG Center by e-mail or phone on:

iag@dli.unilag.edu.ng
08033366677

91
Study Session 8: THE PLANNING PROCESS IN NIGERIA

Introduction

Development planning that involves processes which ensure that national policies and strategies
are realized and development concerns at all levels are fully integrated into the overall national
development thrusts are globally an on-going concern. In Nigeria, there have arguably been
development planning initiatives and programmes, yet such efforts do not seem to produce
concrete developmental results from all indicators. Development planning as a long-term
programme designed to effect some permanent structural changes in the economy is connected
with the involvement of government in the economy whereby it sets out objectives about the
way it wants the economy to develop in the future and then intervenes to try to achieve those
objectives.

Lear ning Outcomes for Study Session 8

At the end of this study session, students should be able to:
8.1 Discuss the planning process at the central government level
8.2 Explain planning processes at the state level
8.3 Discuss planning Processes at the local government level

Government, Planning, planning process,

8.1 Planning Process at the Centr al Gover nment Level

Planning at the national level is carried out by the National Planning Commission. It was
originally set up by Decree No 12 of 1992 as the National Planning Commission and later
amended by Act 71 of 1993. The core responsibility of the commission is the formulation of
medium term and long term economic and development plans for the nation. The National
Planning Commission was often headed by the Minister of National Planning, who is also the
Deputy Chairman of the National Planning Commission. The Chairman of the Commission is the
Vice President of the Federation.

92
The National Planning Commission was originally established by Decree No 12 of 1992 and
later amended by Act 71 of 1993. The Commission has the mandate to determine and advise the
Government of the Federation on matters relating to National Development and overall
management of the national economy. The detailed objectives, functions, powers and structure of
the Commission are outlined under sections 2, 3 and 5 of the Establishment Act.

In what year was the National Planning Commission established?

The National Planning Commission was originally established by Decree No 12 of

1992.

The functions of the National Planning Commission are to:

a. To provide policy advice to the President in particular and Nigeria in general on all
spheres of national life;
b. To set national priorities and goals and engender consensus among Government agencies,
as may be contained in guidelines issued by the Commission from time to time;
c. To undertake periodic review and appraisal of the human and material resources
capabilities of Nigeria with a view to advancing their development, efficiency and
effective utilization;
d. To formulate and prepare long-term, medium-term and short-term national development
plans and to co-ordinate such plans at the Federal, State and Local government levels;
e. To monitor projects and progress relating to plan implementation;
f. To advise on changes and adjustments in institutions and management techniques as well
as attitudes necessary for the alignment of actions with plan targets and goals;
g. To conduct research into various aspects of national interest and public policy and ensure
that the implications and results of the findings in such research are geared towards the
enhancement of national, economic, social, technological defence and security
capabilities and management;
h. To mobilize popular group and institutional consensus in support of Government policies
and programmes;

93
 i. To manage multilateral and bilateral economic co-operation, including development aid
and technical assistance;
j. To deal with matters relating to regional economic co-operation, including the ECOWAS
k. To carry out such other duties as are necessary or expedient for the full discharge of all or
any of the functions conferred on the Commission under the Act.

8.2 Planning Processes at the State Level

Financial management at the state government level comprises of planning, organizing,
purchase, and the use of government resources (Chi-Chi & Ebimobowei, 2012). Also, public
financial management involves the formulation of public policies to achieve the objectives of the
government. In the view of Premchand (1999) state government financial management suggests
a linkage between the aspirations of a community and their resources as it relates to its present
and the future. Therefore, public financial management is central to government fiscal policy at
all levels of governance. Chi-Chi & Ebimobowei (2012) identified the following as stages or
organization for planning and financial management:
a). Policy for mulation: the formulation of public policy is fundamental to public financial
management at the state and local government level, Premchand (1999) argues that the ability to
transform the desires of a people into a feasible policy with monetary attachment is the basis of
financial management at the public sector. According to him “things that are not captured during
the policy formulation stage tend to arise when the policy is being implemented, this may lead a
fundamental change in the pursuit of the policy and can affect the result of the policy”. There are
certain projects which the public financial management is designed to achieve, be it national, and
state or local government. it is geared towards structuring a mechanism that can ensure prudence
in the use of resources.
b). Budget for mulation: budgeting refers to resource allocation subject to legislative approval.
Appiah (2009) argues that budgeting process in Nigeria include the determination of the fiscal,
monetary, political, economic, social and welfare programs of the regime by the head of state in
line with (i) the department issues policies and guidelines which form the basis of circulars to
Ministries/Departments requesting for inputs and their needs for the ensuring fiscal periods;
(ii) Accounting officers of responsibility units are required to obtain and collate the needs of their
units; and

94
(iii) Accounting officers of ministries, in this case, the Permanent Secretaries, are required to
collate these proposals which would be defended by unit heads before the supervising minister
(Appiah 2009).
c. Budget str uctures: Anyanwu (1997), opines that the structure of the budget determines the
composition of the budget. The budget structure in Nigeria provides for the revenue and
expenditure sides. In the view of Prenchard (1999), several governmental bodies in Nigeria are
yet to incorporate a system for financial management, which will lead to coordinated
management at the local level.
d. System for payment: the concern here is mapping out the mechanism that will aid the
receiving and payment of money to and from the public. There are several methods of payment
in Nigeria, either through the issuance of cheques, online payment.
e. Gover nment accounting and financial repor ting: this is an important aspect of financial
management in the public sector in Nigeria. It entails recording, summarizing, reporting in detail
and resounding manner (Adams 2001). Similarly, Prenchard (1999) submits that government
account serves a double purpose first it meets the need for domestic management, secondly, it
provides the opportunity for citizens to view governmental operations.
f. Audit: The audit report is an important aspect of public financial management in Nigeria.
Auditing is the act of examining the financial record of an organization during its fiscal year.
The idea about an audit is to examine the financial stand of the government over a fiscal year.
g. Legislative control: The House of Assembly are required to regulate the expenditure of the
States and local government respectively. The annual budget of the state or local government is
submitted to the House of Assembly or Council as the case may be for scrutiny.

Arguably, financial management is central to the success of any government at any level. How
funds are generated and managed remains a concern of the masses. The performance of any
government is dependent on the revenue it generates and how it spends the generated revenues.
To ensure effectiveness, there must be prudence in the management of public funds and
management of public finance involves the generation of revenues, allocation of funds and
management of treasury.

8.3 Planning Process at the Local Gover nment Level

95
According to Awotokun (2005), the term local government administration in Nigeria attracted
serious attention both nationally and internationally since 1976 reform. It is the reform that
opened the rural area to meaningful development in terms of input that could be garnered from
the federation account. The 1976 local government reform created for the first time, a single tier
structure of local government administration in Nigeria.

This single tier structure can be seen in form of the functions, the structure, the financial
resources, the place of traditional institutions, relationships with state government; and law
enforcement in the local governments. Following the 1976 reform, a fixed proportion of
statutory allocation of revenue from the central government to local governments is entrenched
in the recommendations of the Aboyade Revenue Commission of 1977 (Awotokun, 2005). This
leads to the establishment of the Revenue Mobilization Allocation and Fiscal Commission
(RMAFC), and the commission is charged with the responsibility of allocating revenue to the
three tiers of government - federal, state and local. Other commissions that have worked on the
disbursement of federal statutory allocation before the Aboyade com-mission are Phillipson
(1946), Hicks-Phillipson (1951), Chick (1953), Raisman (1958), Binns (1964), Dina (1968), and
Okigbo (1980) worked on statutory allocation disbursement after the Aboyade commission.

As agent of rural development, local governments are to use the funds made available to the
local governments by both central and state governments and their internally generated revenue
to improve on the lives of the people within local government’s area of operation through the
following: Initiating and attracting developmental projects to the local governments such as
provision of access roads, water, and rural electricity; communal services such as the
construction of roads, bridges, water ways; and personal welfare in such areas as education,
housing, and healthcare service delivery system.

Local governments can equally generate revenue to improve on the lives of the people within
their areas of operation through initiating and attracting developmental projects to the local
governments such as provision of access roads, water and rural electricity; sustaining livelihood
through the provision of credit facilities for agriculture, arts, crafts and small scale business; and
encouraging the formations of cooperative societies and other economic groupings (Ajayi, 2002).

96
Local government as a public business consumes huge resources in providing vital services
which are managed by elected and appointed officials.

In Nigeria, the responsibility of providing basic essential services and bringing about
development has been delegated to local government as the third tier of government. The types
of social services that a local government may require to provide include housing, water,
education, electricity, roads and transport, health facilities and other social services. As a
consequence, local governments have to effectively identify and target essential infrastructure
and social services at any particular point in time, neediest communities, have systems in place
to track expenditure on projects and be able to determine if the allocation of resources has an
impact. So, it is imperative that any work done within the social accountability arena should have
a strong focus on service delivery within the local government’s environment. The most
immediate need is to improve the ability of citizens to engage with the local governments so that
they may be empowered in gaining an understanding of where the priority areas are and what the
local governments are planning to do. It will also give citizens an opportunity to hold local
governments accountable for the delivery of social services.

Adedeji (1970) blamed the ineffectiveness of local administration on the following reasons: lack
of mission or lack of comprehensive functional role; lack of proper structure (that is, the role of
local governments in the development process was not known); low quality of staff; and low
funding. According to him, these problems led the local governments into a vicious circle of
poverty because inadequate functions and powers lead to inadequate funding which result in the
employment of low skilled and poorly paid staff. In contradistinction to the position of Adedeji
(1970), there has been tremendous improvement in the quality of staff, funding of local
government, functions and responsibilities of local government in Nigeria. The area that seems to
be lacking is the area of weak institution which leads to embezzlement (Lawal, 2002), and poor
managerial accountability (Salihu, 2011).

Summar y of Study Session 8

This session has examined the planning process in Nigeria; it looked at the planning at the
central, state and local government level. It is important to note that planning is significant to the
development of a country; therefore, it must be decentralized to be able to get the grass root.

97
8.5 Self-Assessment Questions (SAQs) for Study Session 8
SAQ 8.1 (tests Lear ning Outcomes 8.1)

Identify the ministry responsible for national planning in Nigeria

SAQ 8.2(tests Lear ning Outcomes 8.2)
Highlight functions of the ministry of planning
SAQ 8.3 (tests Lear ning Outcomes 8.3)
Describe the planning process at the state level

Answer s to Self-Assessment Questions (SAQs) for Study Section 8

References
Adedeji A (1970). Nigerian Federal Finance. London: Hutchison.
Ajayi K (2002). Theory and Practice of Local Government, Ado Ekiti: UNAD Press.
Awotokun K (2005). Local government administration under 1999 constitution in Nigeria. J.
Soc. Sci., 10(2): 129-134.
Lawal S (2000). “Local government administration in Nigeria: A practical approach”, Ibadan:
University Press Limited.
Salihu AA (2011). Primary education and healthcare service delivery by local government in
Oyo state, Nigeria. An unpublished PhD Thesis submitted to Universiti Utara Malaysia,
Malaysia.
Suggestions for fur ther Reading

Adedeji A (1970). Nigerian Federal Finance. London: Hutchison.

Should you require more explanation on this study session, please do not hesitate to
contact

your e-tutor via the LMS.

Are you in need of General Help as regards your studies? Do not hesitate to contact the
DLI IAG

iag@dli.unilag.edu.ng
98
08033366677
Study Session 9: PROBLEMS AND CHALLENGES OF DEVELOPMENT PLANNING
AND ADMINISTRATION

Introduction

In this study session you will learn the peculiar problems and challenges of development
planning and administration facing nation-building in Nigeria. The discussion on development
problems and challenges are important at this stage since you have been taught a wide range of
complex issues affecting development administration outcomes in previous study sessions. It is
therefore imperative that you understand the reasons for Nigeria’s failure to effectively adopt and
utilize development planning and administration to resolve the recurring challenges of poverty,
unemployment and inequality that stifle the standard of living in our society. This study session
will also proffer some practical recommendations that you can relate to and adapt to your
community development effort.

Lear ning Outcomes for Study Session 9

At the end of this study session, you should be able to:

9.1 Highlight the challenges of achieving sustainable development in Nigeria.

9.2 Identify the problems of development planning in Nigeria.
9.3 Explain the challenges of development administration in Nigeria
9.4 Discuss the solutions to the problems of development planning and administration in
Nigeria.

: Development, Sustainable, Development, Development Planning, Problems

99
 9.1 Challenges of Achieving Sustainable Development in Niger ia

Nigeria at independence in 1960 adopted the philosophy of a Welfare State by embarking on the
path of national development. This effort was supported by a federal constitution where central
and regional (later states) governments were assigned functions in the development through the
Legislative List. These initiatives provided the critical changes in administrative apparatus of the
various levels of government for the adoption and propagation of development plans, policies,
programmes and projects (Abasili, 2008). Development interventions in Nigeria were adopted
within the institutional framework that federal, state and local governments play central roles.

The search for development in the ethnic federation created integrative tendencies which are
inconsistent with the principles of devolution of power (Babawale, 2007). The situation was
made complex by the predominant philosophy of integration, balance and a united country
within a federal framework. Hence, each state in the federation was not allowed to develop at
their own pace and in accordance with their peculiarities, priorities and diversity (Adebayo,
1995). The desire of the federal government was to carry every section of the country along the
same path of even development, but ended up slowing the rate to the most backward parts,
thereby stunting the progress of all its constituent parts. The adoption of balanced development
was ostensibly borne out of fear of ethnic domination and the need to bring the Northern part of
the country at par with the more educationally advanced South.

To achieve the objective of unity in diversity, constitutional provisions gave the federal
government overwhelming control over fiscal and economic resources in the country. Through
the instrumentality of the revenue mobilization and allocation agency the federal government
appropriated economic and productive resources from the rich south and adopted subjective
criteria to apportion significant amount of the federally collected revenue to unproductive parts
of the society, largely located in the north. The use of unscientific revenue allocation formula
which was based on unscientific criteria like population and land mass to distribute the national
wealth could not foster competitiveness as it created a disincentive among the states to engage in
productive activities. Most of the constituent units in the federation depended on the revenue
allocation from the federation account as the major source of revenue and development
financing. Subsequently, more state and local governments were created mainly under military
autocratic decree without administrative and economic viability and unable to meet basic

100
statutory responsibilities. Consequently, after remuneration of political officials and government
employees, there is nothing actually left to meet capital investment in critical infrastructure.

In that position most states of Nigeria federation depend on the federal government for statutory
transfers, grants and aid entirely for meeting recurrent expenditure and little or nothing for
engaging in capital expenditure. Hence, the lack of administrative competence among these
ethnically determined state and local governments deprived them of the potency to engage in any
meaningful development (Balogun, 1983). This is because the states and local governments were
created as instruments of ethnic domination, control and appropriation of the national wealth.

Coupled with this was the low attention and poor budgetary allocation to human capital
development, education, health and social amenities and facilities in the country by the federal
and state governments (Ohiorhenuan, 2003). The government has therefore, not invested
adequately in basic socio-economic infrastructure and opportunities but rather concentrated on
the geometric increment of the remunerations of political officers, especially under the Fourth
Republic. Nigeria is a federation with 36 constituent states and a Federal Capital Territory
Authority with each level of government given powers to make laws for the socio-economic
development and welfare of its population. The federal, state and local governments which
formed the bedrock of development administration were too weak to finance or coordinate the
provision of socio-economic infrastructure and facilities that enhance the standard of living of
the population (Turner & Hulme, 1997).

Corruption is another area that has stunted development in Nigeria. Lack of transparency and
opaque public accountability has become pervasive in the society as significant amount of public
revenue are stolen, mismanaged or misappropriated by elected and appointed officials.
Corruption indeed poses the greatest obstacle to development in Nigeria. Transparency
International and other anti-corruption institutions have listed Nigerian public institutions as one
of the most corrupt in the world. This has been worsened by policy inconsistency and
externalization of policy blueprints. Hence, despite adoption of several development plans and
strategies, Nigeria is still grappling with mounting developmental challenges ranging from
endemic poverty, social inequalities, hunger, hyper-inflation, unemployment, disease, dilapidated
infrastructure and excruciating foreign and domestic debt.

Specifically, development in Nigeria is problematized by the followings:

101
 a. Allocative authority under the federal system tends to be highly centralized.
b. Activities of development institutions are supervised and poorly coordinated using
dysfunctional bureaucratic structures.
c. The public and civil services are compromised through unscientific recruitment,
selection, appointment and promotion of personnel.
d. Emphasis of development interventions is focused on federal, state and local
governments which are devoid of administrative and financial capabilities.
e. Pervasive corruption and absence of transparency and accountability.
f. Violence, lawlessness, militancy, terrorism and insurgency.
g. Tremendous reliance on community development efforts for the provision of basic
societal needs; even without adequate incentives.

Hence, decades after political independence Nigeria still grapples with ineffective provision of
basic socio-economic amenities, facilities and infrastructure. By 2015, Nigeria was one of the
few countries that failed to meet the minimum requirements of the Millennium Development
Goals (MDGs) set by the United Nations Organization. Consequently, poor infrastructural
facilities, dysfunctional public utilities, political instability, weak public institutions and
ineffective public services have reinforces State fragility in Nigeria. Nigeria is still in the
development wilderness unable to fashion out effective mechanisms and strategies that will
achieve and sustain meaningful development at national, state, local, community and individual
levels (Awojobi, 2015). This is despite several socio-economic, political and administrative
reforms undertaken by military and civil regimes.

9.2 Problems of Development Planning in Niger ia

The federal constitution provides the basis for balance between centralized policy objectives by
the federal government and participation by the state governments in the planning process. The
government’s jurisdiction for development policy making is informed by the provisions of the
Legislative List of Functions in the Constitution. Development planning in Nigeria is
problematic due to:

a). Paucity of relevant and timely socio-economic data.

b). Short supply of economists, statisticians and other technical staff at the regional level.

102
c). Different levels of government prepared and implemented independent development plans,
without relating to the overall national objectives.

d). Reliance on the service of foreign experts who had little understanding of the social and
political environment.

e). Predominance of inexperienced personnel in the Economic Planning Unit.

f). Lack of executive capacity in the plan preparation and implementation.

g). Incomprehensive plans which devoted unequal attention to the provision of basic social and
economic services.

h). Absence of overall economic goals problematized coordination and integration of diverse
sectoral projects, regional/states and federal programmes.

i). Significant decline in the percentage of financial and human resources allocation to economic
and social sectors.

j). Government perception of the recommendations of planning institutions as merely advisory.

k). Centralized planning process, top to bottom, exclusive and devoid of meaningful public
participation.

l). Failure to exploit local diversity, private sector experiences and peculiar problems, despite
adoption of the federal principle.

m). Inadequate opportunities to broaden developmental initiatives and decision making.

n). Insufficient mechanisms to resolve planning conflicts and indiscipline.

List 2 problems of development planning in Nigeria?

a). Paucity of relevant and timely socio-economic data.

b). Short supply of economists, statisticians and other technical staff at the
regional level.

103
9.3 Challenges of Development Administr ation in Niger ia

Development administration in Nigeria has been compromised and mitigated by several external
and internal factors. Nigeria as a state was created out of conquest and a product of imperialism
and colonization. Consequently, Nigeria obtained political but not economic independence,
which compounded the development problems for nation. Nigeria’s incorporation into the
international capitalist market as a junior partner started with the supply of slaves and continued
unaltered with the supply of commodities like palm oil, cocoa, groundnut, cotton and later crude
oil (Babawale, 2007). The situation perpetuated the exploitation of peasant producers, expatriate
domination of investment opportunities while indigenous entrepreneurs remained as
intermediaries between foreign interests and the economy.

Subsequently, the context of the dependent relationship between Nigeria and its former colonial
master did not change with independence. The externally induced structural imbalance placed
Nigeria in the periphery of global trade and unable to detach its economy from foreign
domination and influence. The Nigeria state has therefore failed to resolve the contradictions
inherent in the neo-colonial political economy (Babawale, op. cit.).

The political class which inherited the post-colonial state became fractionalized and fragmented
by the pursuit of power as means to wealth and access to opportunities for tribe, relatives and
political allies. The ruling class became too preoccupied with settling ethnic and sectional
differences to devote meaningful attention and commitment to development. Projects and
programmes were either adopted or rejected based not on its merit but on the primordial
advantages they confer on certain ethno-religious groups. Generally, development administration
in Nigeria has been constrained by:
a). Shortage of skilled and professional manpower to cope with the numerous task of nation-
building.
b). Failure of training institutions to raise the level of efficiency and output of administrative
agencies.
c). Absence of an educational curriculum that is development, practical and production oriented,
but rather geared towards theoretical and clerical knowledge.

104
d). Unscientific recruitment, selection and promotion of public personnel as a result of adoption
of federal character principle in employment matters.
e). Inability of public service bureaucracy to adhere and practice the inherited colonial and
western administrative practices.
f). Disconnect between the elements that spur development and the values of traditional society.
g). Undue reliance on external policy duplication without due consideration for implementation
capabilities within the domestic environment.
h). Corruption, mismanagement of resources, political instability, and ethno-religious
competition and conflicts.
i). Politicization of nation-building priorities, objectives and goals.
j). Excessive centralization, duplication and overlapping of organizational responsibilities.
k). Complete disconnect between the people’s needs, inclusive growth and the policy makers.
l). Government insensitivity and poor funding of education and health care programmes.
m). Misplaced assumption among development experts that only market driven policies will
address the prevailing problems of poverty, unemployment and inequality.
n). Pathetic attitude and performance of the public personnel delivering development
programmes.

9.4 Solutions to the Problems of Development Planning and Administr ation in Niger ia

a). Expand and strengthen planning institutions in order to provide specialized training for
personnel of public ministries, departments and agencies.

b). Active collaboration and communication between National Planning Commission and
development implementation agencies.

c). Better coordination and distribution of statistical agency data and findings.

d). Adopt minimal changes to approved plans at the execution phase.

e). Encourage popular participation at the plan formulation and implementation.

f). Conflicts from programmes and projects should be resolved at the planning stage to minimize
disruption and abandonment during implementation.

105
g). Availability and participation of highly skilled and professional manpower at the plan
formulation and implementation.

h). Development and public administration personnel should br recruited, trained and deployed
on the basis of merit and competence.

i). Adequate funding and budgetary allocation should be made for provision of education, health
and socio-economic amenities, facilities and infrastructure.

j). Governments at all levels should adopt the institutional arrangements and broad guidelines
with appropriate modifications to suit their peculiar situation.

k). Mandatory accountability and transparency in public expenditure of development projects.

l). Legislative authorization of national plan us required to give political legitimacy and
acceptability.

m). Greater participation by the private sector and civil society are required in the planning and
execution process for holistic participation and maintain checks and balances.

n). Concerted effort be made to ensure that approved development plans are subjected to
necessary preliminary appraisals to establish not only feasibility, scope and estimated costs but
also their cost-benefit analysis as well as environmental impact assessment.

Summar y of Study Session 9

In this study session 9, you learnt the many challenges which hindered achievement of
sustainable development in Nigeria, and explored the problems of development planning and
development administration in Nigeria. In addition, you were learnt some solutions to these
problems of development planning and administration in Nigeria.

9.6 Self - Assessment Questions (SAQs) for Study Session 9

Now that you have completed this study session, you can assess how well you have achieve its
Learning Outcomes by answering the following questions.
SAQ 9.1 (tests Lear ning Outcomes 9.1)
What was the development philosophy adopted in Nigeria at independence in 1960?

106
SAQ 9.2 (tests Lear ning Outcomes 9.2)
Identify the consequences of corruption in Nigeria’s development?
SAQ 9.3 (tests Lear ning Outcomes 9.3)
Identify the legal framework that defines jurisdiction of government in development planning?
SAQ 9.4 (tests Lear ning Outcomes 9.4)
Which of the following is Not a problem of development planning and administration Nigeria?
a). Shortage of skilled and professional manpower to cope with the numerous task of nation-
building.
b). Failure of training institutions to raise the level of efficiency and output of administrative
agencies.
c). Strong connection between the elements that spur development and the values of traditional
society.
d). Corruption, mismanagement of resources, political instability, and ethno-religious
competition and conflicts.

References

Abasili, O. Celestine (2008) Elements of public administration, Shomolu, Lagos: Concept

Publications limited
Adebayo Augustus (1995) Principles and practice of public administration in Nigeria, Ibadan:
Spectrum Books Limited
Awojobi, O. N. (2015). Cultivating policy for development in Nigeria: An appraisal of President
Goodluck Jonathan’s Transformation Agenda (2011-2014). International Journal of Humanities,
Engineering and Pharmaceutical Sciences 1(9)1-11
Babawale Tunde (2007) Nigeria in the crises of governance and development: Retrospective and
prospective analyses of selected issues and events, (Vol. 1) Lagos: Concept Publications Limited
Balogun, M.J. (1983) Public administration in Nigeria: A developmental approach, London:
MacMillan press limited.
Ohiorhenuan, J. F (2003). The poverty of development: Prolegomenon to critique of
development policy in Africa, Social Science Academy of Nigeria , No. 14

107
Turner, M & D. Hulme (1997). Governance, administration and development: Making the State
work, London: Macmillan press limited

Suggestions for fur ther Reading

Ezeani, E.O. (2006) Fundamentals of public administration, Enugu: Snaap Press Limited
Adamolekun Ladipo (1983) Public administration: A Nigerian and comparative perspective, New
York: Longman Inc
Iyoha, F. et-al (2003) Rethinking governance and development in the 21st Century, Ekpoma:
Institute of Governance and Development
Adedeji, A (1971). ‘Federalism and development planning in Nigeria’ in A. A. Ayida and H. M.
A. Onitiri (Eds) Reconstruction and Development in Nigeria: Proceedings of a National
Conference, Ibadan: Oxford University Press
Omotola, J. S (2003) Democratization, good governance and development in Africa: The Nigeria
experience 1999-2003, Ekpoma: Institute of Governance and Development, Ambrose Alli
University
Fadeyi, A. O (2005) African perspective on globalization and sustainable development, Lagos:
Faculty of Social Sciences, Lagos State University, Ojo
Journal of Nigerian Public Administration and Management, Vol. 1, No. 2
Should you require more explanation on this study session, please do not hesitate to
contact

your e-tutor via the LMS.

Are you in need of General Help as regards your studies? Do not hesitate to contact the
DLI IAG Center by e-mail or phone on:

iag@dli.unilag.edu.ng
08033366677

108
Study Session 10: PROBLEMS OF PLANNING AND CHALLENGES OF
DEVELOPMENT

Introduction

Planning is derived from the French word ‘Provoyance’ which means looking ahead (Dahl
1963). Planning is an integral part of development administration. Chronologically, it precedes
all decision-making and action (Haridwar and Singh 1979). Broadly speaking, a plan is a
scheme, a design, or a frame work of programme of action, work, activities etc. Planning helps in
the promotion of economic growth and employment and social objectives (Rathod, 2010). It is
felt that planning makes economic and social development easier by providing for explicit
analysis and evaluation of alternative policies and that it can systematically resolve competing
demands and conflicts.

Lear ning Outcomes for Study Session 10

At the end of this session you should be able to;

10.1 Explain the problems of planning and development at the federal level
10.2 Discuss the challenges of planning and development at the state level
10.3 Describe the problems of planning and development at the local government level

Challenge, Problem, Planning, Development

10.1 Problems of Planning and Development at the Feder al Level

109
Since independence status was attained in 1960, Nigeria had embarked or launched several
National Development plans so as to achieve all round development. Unfortunately, the
development plan was unable to achieve their aims to the fullest. Therefore, the following
challenges have been identified as some of the factors that militated against the full actualization
of the National Development plans.

a). Plans distor tion: It has been observed that all the development plans that were launched
were at one time or the other distorted.

b). Political instability and discontinuity of progr ammes: The 1960s, 1970s and 1980s were
characterized by military coups and change of governments in Nigeria. These were the periods
when these national development plans were launched. The political atmosphere was unstable
and successive administrations were not interested to continue or implement projects that were
initiated by their predecessors (Deedam, Akpe and Emeto, 2019).

What strategy was adopted by Post-Independence Nigeria to achieve all round

development?

The National Development Plan.

c). Lack of political will: A careful examination and analysis of development plans indicated
that the political actors that were at the helms of affairs at one time or the other did not have the
political will to implement the development plans.
d). Poor or inadequate feasibility studies in planning: Poor or inadequate feasibility studies in
planning and lack of comprehensive statistics are responsible for the failure of development
plans in Nigeria (Ibetan and Oghator, 2013). Nigeria planners did not carry out intensive
feasibility studies and comprehensive statistics about the cost of the project before including
them in the development plans.
e). Cor r uption: Corruption is the most challenging problem that has eaten deep into the bone-
marrow of Nigerian leaders. The funds that would have been used for the implementation of the
development plans have been mismanaged and converted into personal bank accounts and
coffers (Deedam, Akpe and Emeto, 2019).

110
10.2 Problems of Planning and Challenges of Development at the State Level

Nigeria operates a three tier federal system, comprising the central government, the state and
local government. The overthrow of the Government of the First Republic by the Nigerian Army
and the emergence of General Gowon to power brought in a Government which was determined
to break up the three regions which had given the three major ethnic groups so much control over
our national affairs. It was under these circumstances that Gowon used the civil war against
Biafra as a pretext to precipitate a major fundamental change in the Federal system by abolishing
the three regions and replacing them with 12 states.

The states of the Nigerian Federation have since been increased to 19 in 1976, 21 in 1987, 30 in
1991 and to 36 in 1996 and 774 Local governments.

Development planning must be broken down into these three levels of government. For example,
the National Economic Empowerment and Development Strategy (NEEDS) was subdivided to
state and local government layers. Development at the state level in Nigeria is hampered by the
dependent on allocation from the federal government, reduced internal revenue, corruption and
maladministration.

10.3 Problem of Planning and Challenges of Development at the Local Gover nment Level

Planning and development is affected by lack of autonomy of the local government in finance
and administration. In Nigeria, local governments are controlled by the state government; most
of the Local government council Chairmen are determined by the state, hence, the state
determines the direction of developmental planning at the local government level.

Also, corruption and embezzlement, the little fund that comes to the local government are often
stolen by the officials of the local government. This affects the developmental planning and
execution.

Summar y of Study Session 10

Under this session we have been able to discuss the problem of planning and development both
at the federal, state and local government level. It is identified that Nigeria knows how to plan
but execution and implementation is where the challenges lie. It session suggests that Nigeria as

111
a federal state, its development planning is often broken down to federal state and local
government levels. And that political interference, corruption and maladministration is a major
challenge to developmental planning and execution among the levels of government in Nigeria.

10.5 Self - Assessment Questions (SAQs) for Study Session 10

SAQ 10.1(tests Lear ning Outcomes 10.1)
What are the challenges to planning and development at the federal level?
SAQ 10. 2 (tests Lear ning Outcomes 10.2)
What are the challenges of planning at the state level?

SAQ 10. 3 (tests Lear ning Outcomes 10.3)

What are the challenges of planning at the local government level?

References
Dahl, R. A. (1963), Who Governs Democracy and Power in the American City, New Haven, Yale
University Press.
Haridwar Rai and S.P. Singh (1979), Current Ideas and Issues in Indian Public Administration,
Uppal Publishing House, New Delhi.
Rathod, J. (2010), Elements of Development-Administration: Theory and Practice, Rajasthan:
ABD Publishers.
Deedam, D.G., Akpe, C.I. and Emeto, J.Z. (2019), “Nigeria Development Plans and Its
Challenges: The Way Forward”, International Journal of Advanced Academic Research in Social
and Management Sciences Vol. 5, (12), Pp. 1-12.
Ibetan, J. and Oghator, E. (2013) Trends of Development Planning in Nigeria. A Journal of
Sustainable Development in Africa. Vol. 15. No. 4, ISSN 1520-5509 Clarion University of
Pennsylvania; Pennsylvania.

Suggestions for fur ther Reading

Dahl, R. A. (1963), Who Governs Democracy and Power in the American City, New Haven, Yale
University Press.

112
Aboyade, O. (1983). Integrated Economics: A study of development economics. London: English
Language Book Society.
Ayinla, M. A. (1998), Essays on planning and Budgeting Systems in Nigeria. Ilorin: Berende
Printing and Publishing Company

Should you require more explanation on this study session, please do not hesitate to
contact

your e-tutor via the LMS.

Are you in need of General Help as regards your studies? Do not hesitate to contact the
DLI IAG

iag@dli.unilag.edu.ng
08033366677

113
Study Session 11: CONTEMPORARY STRUCTURAL AND CONSTITUTIONAL
AMENDMENT IN NIGERIA

Introduction

Constitutional issues are important questions about the meaning of the constitution that spark
significant disagreement. Such issues require the citizens to consider whether a government
policy is constitutional or not. Controversial public issues are unresolved questions of public
policy that spark significant disagreement between different tiers of government or individuals,
groups and associations in a federation. Such issues require proper deliberation and further
legislative process in order to determine which policy is the best response to a particular
problem.

Lear ning Outcomes for Study Session 11

At the end of the session the student will be able to;
11.1 Discuss amendments at the federal level
11.2 Explain amendments at the state level
11.3 Discuss amendments at the local government levels

Constitution, Amendment, Federal, State, Local

11.1 Amendments at the Feder al Level

114
There are many contradictions in some sections of 1999 constitution that is promoting inter-
governmental conflicts between the states and government at the centre over the establishment,
funding and supervisions of local government administration in Nigeria. The 1999 Constitution
despite of its amendment by the National Assembly does not still clearly prescribe any
contending paradigm while those contentious areas serve as impediments towards optimal
performances of the grassroots administration in Nigeria. Those constitutional issues include:

a). Provision on the Establishment and Composition of Local Gover nments: The Section
7(1) of the 1999 Constitution stated that “the government of every state is constitutionally
empowered to make law that will provides for the establishment, structure, composition, finance
and functions of local government in their respective states”. This is subject to Section 8(6) that
required the state governments to approach the National Assembly for further legislation in order
to make local governments created by them officially listed in the Constitution. By the former
clause, i.e. Section 7(1), a state is empowered to make laws to regulate within the state in all
ramifications with local government inclusive. However, provision of Section 8(6) has become a
subject of contradiction hindering the state governments to create more local governments. This
is despite the geometric rate of population growth differentials in the respective states that make
hamper local councils to cater for the needs of the people at the grassroots level (Igbuzor, 2009).

b). Non-Elected Local Gover nment Officials and the Appointment of Caretaker
Committees: The recent practice where the Section 7(1) of the 1999 Constitution is being abuse
by some governments at the state level has become a recurring factor hindering effective public
service delivery at the local government level in Nigeria. This is because, some governments at
the state level deliberately violated Section 7(1) which make case for democratically elected
local government across Nigeria. In order to consolidate on their illegality, some state
governments do influence the Houses of Assembly to pass resolutions for the appointment of
caretaker committees to oversee the affairs of the local government administration without being
democratically elected by the people. Ozioma (2008) believed that non-elected representatives in
local government administration have negative effect on the capacity of local councils to impact
positively on the needs of the people.

c). State/ Local Gover nments J oint Account System: The provision for state/local
governments joint accounting system in Section 162(6) of 1999 Constitution has hindered the

115
smooth running of local governments in Nigeria. The domineering attitude of the state authorities
over the funds accrued from the Federation Account to the Joint Accounts meant for sharing
between local and the government of each state of the federation, enabled the state authorities to
make some illegal deductions from the fund. Agbani and Ugwoke (2014) believed that most state
governors in Nigeria are being presently prosecuted not because of mismanaging the state
government resources but because of the fraud and embezzlement of local government funds
which they are major determinants in its sharing to beneficial local governments in their
respective state.

d). Tenure-ship and Succession Cr isis: This is another major factor hindering effective local
government performance in Nigeria. For instance, decree 36 of 1998 which ushered the conduct
of local government election during military regime provided for 3-year tenure-ship for local
government elected officials across Nigeria. Unfortunately, the elected official inaugurations
were delayed for over six months before their eventual sworn-in in May 1999 together with other
elected political office holders at states and the federal levels. This delay in the inaugurations
prompted political office holders at local government level to agitate for tenure extension in
order to be at par with their colleagues at higher levels. They eventually got their tenure extended
through proclamation of National Assembly against Section 7(1) that empowered the State
Houses of Assembly to do so. To Sunday (2014), this has resulted to controversy and power
struggle between the National Assembly and the Nigerian Governors’ Forum. The matter was
later resolved in favour of the Governors’ Forum by the Supreme Court judgment in suit No.
SC/236/2002; that no legislation of the apex legislature can extend the tenure of political office
holders at the local government level without legislations from the State Houses of Assembly in
Nigeria (Sunday, 2014).

e). Local Gover nments Autonomy: The long time expectation of the people at the grassroots
level to see full autonomy being granted to local governments in Nigeria has not come to reality
over the years. The autonomy of course will enable them take major decisions that are peculiar to
their localities. However, the provision for other regulatory bodies like Local Government
Service Commission (LGSC), and the Auditor General of Local Government (AGLG) to employ,
deploy, promote and discipline senior local government staff posed major challenges to local
governments’ ability to control its key staff. The AGLG which was created to ensure effective

116
post expenditure audit for local government account has the problem of weakness in terms of
number of qualified staff and resources of doing the job. While the reports of AGLG always goes
to the State House of Assembly for adoption, the people at local government level have little
opportunity to check the financial performance of their local governments as and when due. This
principle negates the principle of the communal governance at the grassroots level (Ozioma,
2008).

11.2 Amendment at the State Level

Constitutional amendment at the state level refers to the processes of state creation which
enlarged the component units in the federation. In a multi-ethnic State like Nigeria, the minority
issue constitutes one of the basic problems militating against the development of the country.
Nigeria has three major ethnic groups, The Hausa-Fulani, Ibo and Yoruba and, multiplicity of
minor ethnic groups scattered all over the federation. Since the Amalgamation of the Northern
and Southern protectorates till present day there has been fear of the domination of the minority
ethnic groups by their majority counterparts. This prompted the agitation for creation of states.
To allay the fears of the minority group the Sir Henry Willink Commission was set up in 1957 to
investigate the issue of fear of domination of the minority ethnic groups.

What does constitutional amendment at the state level refer to?

Constitutional amendment at the state level refers to the processes of state creation
which enlarged the component units in the federation.

The minority group later agitated for a creation of state; this prompted the creation of mid-
western state by August 1963. The creation of the mid-western state increased the agitations of
the minority groups. It was such demand that compelled the Head of State Lt. Col. Yakubu
Gowon to create twelve states out of the four regions in 1967. This was increased to nineteen by
General Muritala Mohammed when he announced on February 3, 1976, the creation of seven
additional states base on the recommendations of the Justice Ayo Irikefe Panel on State Creation.
The General Ibrahim Babangida Administration added two more states of Katsina and Akwa
Ibom in August 1987 and another nine states in August 1991bringning the number of states to 30.
General Sanni Abacha further increased the number states to 36 on 1st October 1996, bringing the

117
states to 36. The 1999 Constitution of the Federal Republic of Nigeria was based on the 36 states
structure; hence Nigeria is a federation of 36 states, a Federal Capital Territory Administration
and one central government. In spite of these states that were created majorly by the Military
administration, the agitation for creation of more states in Nigeria is endless.

11.3 Amendment at the Local Gover nment Level

The Fourth Schedule of the 1999 Constitution outlines the following functions as the statutory
responsibilities of the local government councils in Nigeria.

Planning and Monitor ing the Gover nment Activities: The local government system in Nigeria
was established across all the 36 states and area councils in the federal capital territory, Abuja
towards setting overall direction for effective governance. The objective is to develop the local
councils through long-term planning and, monitoring the implementations of various government
policies at the grassroots level. The good examples of this according to Thomas (2009) include
their participation in joint economic planning with the state governments in order to engender
development at local council level.

Effective Ser vice Deliver y: the effective service delivery is an important ingredient to the
administration of public affairs. Therefore, the Nigeria’s 1999 Constitution recognizes the
existence of local government councils for effective service delivery at the grassroots level
through prompt provision of basic and essential needs to the people (Adegbolu, 2003).

Lawmaking & Enforcement Functions: The 1999 Constitution under Section 7(4) recognizes
the existence of democratic local government administration in Nigeria. However, local
government was empowered to make bye-laws through their respective legislative councils.
However, those laws are not to be competing with the laws made by higher legislative bodies.
The local councils are also constitutionally empowered to enforce any byelaws made within their
localities (Raji and Garuba, 2017).

Policy Development Responsibility: Local council’s mandate also includes the prompt
engagement in economic planning for the sustainable development of their localities with the
state government towards meeting the needs and aspirations of their people at grassroots level
(Igbuzor, 2009).

118
Policy Advocacy and Advancement: In the case of policy advocacy and advancement, the
grassroots government is responsible for the higher governments’ policies advocacy and
advancement on behalf of their respective council in order to know the acceptability or otherwise
of the policies initiated by the higher authorities (Ozioma, 2008).

The Local makes input to the constitutional amendment through elected representation at the
state and federal Legislature

Summar y of Study Session 11

This session discussed contemporary structural and constitutional amendment in Nigeria. You
learnt about the legislative amendments at the federal, state and local government levels in
Nigeria federation. The major constitutional issues examined include provision for the
establishment and composition of local councils, non-elected local government officials and
appointment of caretaker committee, state/local government joint account system and local
government autonomy. Other areas like the processes of state and local government creation,
planning and monitoring of government activities, law making and enforcement policy
development responsibilities and policy advocacy and advancement where also examined.

11.5 Self-Assessment Questions (SAQs) for Study Session 11

SAQ 11.1 (tests Lear ning Outcomes 11.1)

Highlight the amendments at the Federal level

SAQ 11.2 (tests Lear ning Outcomes 11.2)

What are the causes of agitation for state creation?

SAQ 11.3 (tests Lear ning Outcomes 11.3)

Describe the amendment at the local government level

References

Igbuzor, O. (2009). Local government reform and constitution review in Nigeria. Culled from
http://gamji.com
119
Ozioma, B. O. (2008). Constitutional provisions and challenges to local government
administration in Nigeria. The Nigerian Academic Forum, Vol. 14 (3). pp. 63-71

Agbani, B. J and Ugwoke, R. O. (2014). The state joint local government account system:
Challenge on rural development in Nigeria. Research Journal of Finance and Accounting.
http://www.iiste.org.

Adegbolu, M. B. (2003). The role of citizens in local government administration in Nigeria

Journal of Social and Management Sciences, Malazian Center for Management Sciences, Vol. V,
No. 2 (August), pp. 12 – 18.

Raji, S. and Garuba, R. O. (2017). Comparative Study of Local Government System in Nigeria
and United States of America (USA), in Rethinking the Governance System inNigeria. Edited by
Bamisaye and Alimi, Oduduwa University, Press, Ipetumodu, Ile- Ife, Nigeria.

Suggestions for fur ther Reading

Ozioma, B. O. (2008). Constitutional provisions and challenges to local government

administration in Nigeria. The Nigerian Academic Forum, Vol. 14 (3). pp. 63-71

Should you require more explanation on this study session, please do not hesitate to
contact

your e-tutor via the LMS.

Are you in need of General Help as regards your studies? Do not hesitate to contact the
DLI IAG

iag@dli.unilag.edu.ng
08033366677

120
Study Session 12: STATE AND DEVELOPMENT ADMINISTRATION

Introduction

The state is central to the idea of development administration; this section discusses the state and
development administration. The state provides the vision and mission for development,
developmental planning and provide the social infrastructure necessary for development.

The neo-liberal scholars argued that the state has no business in economic advancement of the
society, yet the state are called upon when the economy is phase with shock, the fact remains that
the state has roles to play in the development of the society, but the nature and character of the
state will determine its role in societal development. This session discusses the state and
development administration. It will examine the origin of the state system, the role of the state
and describe the nature and character of the modern state.

Lear ning Outcomes for Study Session 12

At the end of the session you will be able to:

121
12.1 Conceptualize the state
12.2 Explain the origin of the state system
12.3 Discuss the evolution of the state system
12.4 Describe the modern state system
12.5 Analyze the characteristics of the modern state

State, State System, Modern State, Sovereignty.

12.1 Conceptualize the State

A state is a group of people who live in a definite geographical location, with a government and
have sovereignty. The Marxist see the state as the executive committee of the bourgeoisie
ordering the affairs of the proletariat; this means that the state is an instrument of oppression in
the hands of the capitalists. the liberals see the state as an umpire that exists for the good of the
citizens; meaning that there are things that citizens cannot achieve by their self being alone, they
need to the state.

Archaeology has had two primary problems with the idea of the state: how to distinguish states
from other entities, and how to connect states with other entities in an evolutionary explanation.
This latter problem includes understanding the origins of states.

States are often defined in terms of “government”—that is, a dedicated cadre of political,
military, economic, and social specialists who are supported in part or in whole by surpluses
extracted from other levels of society. States must also be territorial in some sense, although the
meaning of territory necessarily varies. City-states are based in a single settlement, dominate a
local territory, and may compete with one another for sources such as land, water, and labor,
often in the form of villages or captives.

They stand at the center of a small network of political, economic, social, and political relations,
which may be perceived through hierarchies of settlement or flows of goods (Nichols and
Charlton, 1997). Territorial states stand at the apex of larger hierarchies of subordinate
settlements, and they dominate larger areas, as well as other states, or former states. They are not
necessarily different in organization than city-states but by virtue of the need to integrate and
dominate larger and more varied assortments of people they must employ different techniques.

122
At the very least, more administration and larger ideas are required. These include abstract as
well as legal and juridical concepts such as territory, property, and trespass. Nation-states, on the
other hand, are characterized by an integrative idea of a “nation,” a unifying concept of ancestry,
language, and belief that is rooted in a specific territory (Grosby, 2005). Empires are also
territorial, but they are far-flung and may be more difficult to reconstruct and represent (Smith,
2005). They are states in the largest possible sense, integrating regions, states, tribes, and more.
Their economic and symbolic universes are also far larger than city-states or territorial states.
They have complex internal politics and economics, which may be brutal or benign, and they
may be polyglot or domineering in terms of culture. They may have rigid and exploitative
economic structures or be more loose and free-flowing. Their ideologies may be similarly
variable, singular in their emphasis on core ideas or characterized by hybridity.

12.2 Or igin of the State System

The origin of the state is one of the fundamental questions in political theory, and political
thinkers have responded to this question by arguing that there are various theories about the
origin of the state such as; the social contract theory, the divine right theory, the force theory, the
patriarchal theory, the matriarchal theory and the evolutionary theory (Appadorai, 2004).

The argument of the social contract theory is that the state is a product of an agreement entered
into by men who originally had no governmental organization – the state of nature. This position
was prompted by Thomas Hobbes, John Locke and Jean Jacques Rousseau. They divided the
history of the world into two; the period before the institution of the state and the period after the
state. In the first period there was no government, no law which could be enforced by sovereign
authority. Men lived in a state of nature, where they were subject to such regulations as nature
will supposed to prescribe. But there was no human authority to formulate these rules precisely
or to enforce them. After some time, they decided to set up government. Whereby they parted
with their natural liberty and agreed to obey the laws by the government (Appadorai, 2004).

Opinion of the exponents of this theory differs on how men lived in the state of nature without
the coercive agency of a government, why they chose to establish a government, who were

123
parties to the contract, what were the terms of the contract. However, they agreed on the idea of
the social contract, and that the state was created by human.

The theory of divine origin is better known as the theory of divine right of kings; the thrust of the
theory is that the state has been established by the ordinance of God; its rulers are divinely
appointed; they are accountable to no authority but God. As an explanation of the origin of the
state, theory is discredited because it involves proposition that are to be accepted as a matter of
faith rather than of reason. One of the major shortcomings of the theory is that it tends to leave
the entire community at the mercy of a despot. It has the merit that if ideally interpreted, it will
create in the mass of the people a sense of value of order and obedience to law, so necessary for
the stability of the state and in the ruler a moral accountability to God for the manner in which
they exercise their power.

The force theory simply suggests that the State is a product of subjugation of the weak by the
stronger that war begat the king. It also argues that the State is founded by successful migrations
and conquests. One of the criticisms of the force theory is that, force is not the sole factor in state
formation despite being one of the elements in the formation. The state is a result of action of
various causes – kinship, religion, force and political consciousness.

The thrust of the patriarchal theory is that the unit of the primitive society is the family, in which
descent was traced through males and in which the eldest male parent was absolutely supreme
(Appadorai, 2004). His power extended to life and death, and was as unqualified over his
children and their houses as over his slaves. The single family break up into more families,
which, all held together under the head of the first family (the chief or the patriarch), became the
tribe. An aggregation of tribe makes the State. The chief exponent of this theory is the Sir Henry
Maine (1822-1888).

The Matriarchal theory is distinguished from the patriarchal; this theory holds that the primitive
group had no common male head, and the kinship among them could be traced only through
women. Under such system, it is obvious that as far as there is any recognition of blood
relationship at all, it is through women and not through men. It argues that maternity is a fact
while paternity is an opinion.

124
The Patriarchy and Matriarchy is criticized because neither of them can lay serious claim as the
oldest form of social organization everywhere. There has been paralleled development, but the
line of the patriarchy is thicker and longer.

12.3 Evolution of the State System

All the five theories were analyzed before regarding ‘The Origin of the State’ is inadequate,
incomplete, defective and speculative. It was not able to give the true and correct explanation of
the origin of the state. It was lacking on the ground of logic, legal, philosophical and historical
defect. It is an assumption and the emphasis is on the one or two facts which are insufficient to
come to a definite conclusion.

In this regard, Garner (2007) has aptly stated, “the state is neither the hand work of God; nor the
result of superior physical force; nor the creation of resolution of convention, nor a mere
expansion of family. The state is not a mere artificial creation but an institution or natural growth
of historical evolution”.

The important factor that helps to bring out the growth and development of the state was the
dawn of political conscious among the people. Political consciousness indicates the recognition
of certain conclusion to be achieved through political organization. At the beginning, there was
no awareness of unity of interest. In course of time, the importance of defending people against
the enemy took both internal and external; maintaining law and order regulation rose upon the
mind of the people. They felt the awareness of the authority to regulate social issues and protect
their life and property. This consciousness and unity paved way for particular organization that is
the state. In this connection Gilchirst (1998) has stated “underlying all other elements in state
formation including kinship and religion is political consciousness, the supreme element”.

12.4 The Moder n State System

It was at the Peace of Westphalia in 1648 that Europe consolidated its long transition from the
middle Ages to a world of sovereign states. The treaty of Westphalia ended the thirty - year war
and gave leaders the authority to determine the religion of their own lands. The treaty also gave
rise to many territorial adjustments with many countries becoming more secure in their
independence (Holland, France and England).

125
After the fall of the Roman Empire in the Fifth Century a new era, known as the Middle Ages or
medieval times, began. With the new era came a new way of political organization. Political
power in Europe during these times was held by two levels of authority. On a universalistic level,
“international organizational authority existed in the form of the Catholic Church” (Garner,
2007). The Roman Catholic Church provided a universal language in the form of Latin. The
Christian doctrine was often the basis for ideas about rights, justice and political norms. Even
kings were often subordinate to papal authority. The Holy Roman Empire was strengthened in
936 when Otto I was crowned head. However, over the centuries the overarching authority of the
church was overturned with the emergence of multiethnic empires such as British, French and
German. These empires were ruled by monarchs and citizens often lacked emotional attachment
to them. Most of these empires lasted into the 20th century with the collapse of the Soviet Union
marking the end of the last of the great multi-ethnic empires.

Generally, the Renaissance, the Reformation and the Industrial Revolution were the turning
points for the modern era. These movements made the people unite together on the ground of
ethnic, linguistic, religion and territorial bonds (Garner, 2007). As a result, the Feudal states
began to fall and gave rise to the modern nation states. Further, there were disputes among the
feudal states. General disorder and confusion everywhere, the use of gun powder, national
taxation, and standing army was made independent upon the feudal nobility and did diminish the
political importance of the feudal states. The general tendency of the reformation teaching was to
strengthen the whole of the monarchy principle in monarchy lands, and that of the aristocracy
lands was to strengthen the absolution of the political sovereign.

What is the name of the new era that emanated from the fall of the Roman Empire
in the Fifth Century?

After the fall of the Roman Empire in the Fifth Century a new era, known as the
Middle Ages or medieval times, began.

Once the objective of the unity of absolution was achieved, the people demanded their rights and
privileges and succeeded (Garner, 2007). The democratic movement started early in England. Its
progress was gradual and peaceful. In France, it was a violent revolution. In other countries, the

126
kings accepted the popular will, and remained as normal head under the democratic government.
The democratic movement worked so satisfactorily that the democratic national state came to be
regarded as the final stage in the evolution of the state.

12.5 Char acter istics of the Moder n State

According to Held (1992), the modern state is a state where:

“political apparatuses are distinct from both ruler and ruled, with supreme
jurisdiction over a demarcated territorial area, backed by a claim to a monopoly of
coercive power, and enjoying a minimum level of support or loyalty from their
citizens.”
This definition is validated by Pierson’s (2004) defining characteristics of a modern state, which
he lists to include; control over the means of violence, territoriality, sovereignty, constitutionality,
impersonal power, public bureaucracy, authority and legitimacy and citizenship.

Secularization is among one of the most important ways in which the modern state differs from
earlier state formations. So important is this distinction that Carroll (1984) suggests
secularization to be a necessary precondition for the modern state, going further to assert that the
modern state is inherently secular. Earlier state formations before modernity, were often
organized along religious-political systems where legitimacy and political ideology came from
religion (Carroll, 1984).

The modern state is however, distinct in this regard in that there is separation of religion and the
state. That is, the political sphere and all matters political are separated from other spheres of life,
including religion. Political issues and state administration are handled and carried out by
political and administrative authorities and life is generally not ruled by religious laws, ideals or
the clergy (Carroll, 1984).

The concept of sovereignty is another distinguishing characteristic of the modern state.

According to Caporaso (1996), sovereignty is the acknowledgment by external and internal
actors that the state possesses the sole and absolute authority to carry out activities within its own
territory. This concept can be broken down to its two main aspects, the first being internal
sovereignty, that is the right a state has to rule itself as it pleases, to choose its own form of
government and to structure it in whichever way it wants to.

127
The second aspect refers to the external aspect of sovereignty where states are first and foremost
equal to other states and thus also have a right to non-interfere in their internal affairs by other
states. This basically means that a state has the right to do whatever it wants as long as it is
within the bounds of its territory (Pierson, 2004).

Constitutionalism is one of the key distinctive elements of the modern state. Modern states have
to govern according to the stipulations of a constitution, which is a set of regulations, practices
and statutes. Governments are obliged to conduct their affairs in concurrence with the
constitution (Pierson, 2004). This is in contrast to earlier state formations where rule and
governance was often by decree or custom and laws were not prescribed. This has seen a legal
system in the modern state which operates using formulated legal codes which include legal
courts, contracts and the concept of private property.

Although the concept of citizenship predates the modern state, the modern state places more
significance on it. In the context of the modern state, a citizen or national refers to any man/
woman with some sort of personal history with a national territory, that is, they are the citizen of
whatever state practices sovereignty over that territory (Grace 2006). In earlier state formations,
especially monarchies, being a citizen of a certain state was usually nothing more than an
identity and carried little entitlement.

In modern states, citizenship brings with it a prerogative to participate in political activities and
with this prerogative, the right to political participation is often accompanied with certain
responsibilities (Pierson, 2004). Citizens in modern states are; eligible to vote and thus are in
some way involved in the political undertakings of their states, eligible for conscription into the
army and most importantly are expected to pay tax.

Legitimacy is probably one of the chief differentiating characteristics of the modern state. As
discussed earlier, modern states saw the advent of constitutionalism this saw the demise of the
monarchy’s divine right to rule. It essentially meant that the legitimacy of the state no longer
emanated from God or any other such archaic justifications (Pierson, 2002), instead legitimacy
now rested on the will of the people (Braddick, 2000).

The polity of the modern state relative to that of earlier state formations is one of the crudest
examples of how “modern” the modern state really is. Braddick (2000) identifies three major

128
distinctions in the polity of modern states mostly pertaining to the control of political power,
these are; how function and jurisdiction restrains and limits power, the power officers of the law
have over all citizens regardless of a citizen’s status or eminence and specifically how political
power is vested in offices and not in individuals.

Taxation in the modern state is far different from earlier state formations. Whereas in earlier state
formations taxation was largely sporadic and haphazard and done forcefully (Pierson, 2002),
taxation in modern states is constant, systematic and often well regulated owing to the adoption
of capitalist market economies by modern states. Taxation in the modern state is also distinct
than that in pre-modern state formations because of the advent of bureaucracies, trained
professionals and dedicated institutions which changed the way states went about collecting
taxes.

The modern state’s monopoly on violence sets it apart from earlier state formations. The modern
state basically controls the right to impose violence, and for the most part to maintain peace and
stability (Pierson, 2002; Caporaso, 1996); one essentially needs the consent of the state to legally
carry out violence (Pierson, 2002). This carte blanche is generally reserved for the police and the
army. In earlier state formations the state did not always enjoy this monopoly, houses, families
and fiefdoms were allowed to exercise violence, at times at the behest of the state, but usually in
their own capacity, an instance being medieval Italy with its city states or feudal Japan where
gangs of militias often waged war on one other, outside of the state’s control.

Summar y of Study Session 12

This session discussed the role of state in development, it began with the conceptualization of the
state, examine the origin of the state, where the various theoretical explanations for the origin of
the state were explained. The session evaluated the nature and character of the modern state, as
well as the evolution of the modern state.

12.6 Self-Assessment Questions (SAQs) for Study Session 12

SAQ 12.1 (tests Lear ning Outcomes 12.1)

Discuss the social contract theory of the state

SAQ 12.2 (tests Lear ning Outcomes 12.2)

129
Describe the patriarchy and Matriarchy models on the origin of the state
SAQ 12.3 (tests Lear ning Outcomes 12.3)
Discuss the evolution of the State
SAQ 12.4 (tests Lear ning Outcomes 12.4)
Describe the Modern state
SAQ 12.5 (tests Lear ning Outcomes 12.5)
Why is the modern state distinct?

References

Appadorai, A. (2004), The Substance of Politics, New Delhi: Oxford University press

Braddick, M. J. (2000), State formation in early modern England c1.550 – 1700. Cambridge:
Cambridge University Press.

Caporaso, J. (1996), The European Union and Forms of State: Westphalian, Regulatory or Post
Modern. Journal of Common Market Studies.34: 29 -52.

Carroll, T. G. (1984). Secularization and States of Modernity. World Politics.36:362 – 382.

Accessed May 10, 2014 from www.jstor.org/stable/2010379.

Garnar J. W. (2007) ‘Political Science and Government”, New York: John Wiley and sons

Gilchrist, M. (1998) “Principles of Political Science”, New Delhi: Vikas Publications.

Grosby, S. S. (1995), “Territoriality: The Transcendental, Primordial Feature of Modern

Societies,” Nations and Nationalism143–62.

Grosby, S. S. (2005), Nationalism: A Very Short Introduction, Oxford: Oxford University Press.

Held, D. (1992). The Development of the Modern State. Formations of Modernity. Oxford:
Blackwell Publishers.

Lovejoy, A. O. (1964). The Great Chain of Being: A Study of the History of an Idea . Cambridge,
Massachusetts: Harvard University Press.

Nichols D. L. and T. H. Charlton, “The City-State Concept; Development and Application,” in

The Archaeology of City-States: Cross-Cultural Approaches (ed. D. L. Nichols and T. H.
Charlton; Washington, D.C.: Smithsonian Institution Press, 1997), 1–14.
130
Pierson, C. (2004). The Modern State. (2nd Edition). London: Routledge.

Smith, M. L. (2005), “Networks, Territories, and the Cartography of Ancient States,” Annals of
the Association of American Geographers 95(8), Pp. 32–49.

Spruyt, H. (2002). ‘The Origins, development and possible decline of the Modern State’ Annual
Review: Political Science. 5:127-149. DOI: 10.1146/annurev.polisci.5.101501.145837.

Suggestions for Fur ther Reading

Appadorai, A. (2004), The Substance of Politics, New Delhi: Oxford University Press

Held, D. (1992). ‘The Development of the Modern State’. Formations of Modernity. Oxford:
Blackwell Publishers.

Lovejoy, A. O. (1964). The Great Chain of Being: A Study of the History of an Idea . Cambridge,
Massachusetts: Harvard University Press.

Should you require more explanation on this study session, please do not hesitate to
contact

your e-tutor via the LMS.

Are you in need of General Help as regards your studies? Do not hesitate to contact the
DLI IAG

iag@dli.unilag.edu.ng
08033366677

131
Study Session 13: LOCAL GOVERNMENT AND NATIONAL DEVELOPMENT

Introduction

This study session will introduce you to decentralized local government as autonomous
institutions of development administration. The study undertakes a conceptualization of local
government and takes you through its evolution from colonial to post-independence
governments. This was followed by the theories of local government, strategies for local
government development, functions of local government and the problems confronting local
government as effective instrument of development administration in Nigeria.

Lear ning Outcomes for Study Session 13

When you studied this session, you should be able to:

13.1 Define Local Government System
13.2 Describe the Evolution of Local Government Administration in Nigeria
13.3 State the Theories of Local Government

132
 13.4 Describe the Local Government Development Strategies
13.5 Discuss the Functions of Local Government Council
13.6 Describe the Factors Confronting Local Government as Development Institution

: Local Government, Evolution, Theory, Challenges

13.1 Local Gover nment System

Decentralized local governments system suggests giving people direct access to the government
and bringing government closer to the people. The aim is to stimulate the whole nation in their
local communities to participate in national development. Local government is the creation of
institutions in which representatives are given formal power to decide on a range of public
matters, separated by law from the other levels of government. Their political base and main
influence over decision-making is the local community. Their area of authority is limited, but
within that area their right to make decisions is entrenched by the law and can only be altered by
new legislation. They also have resources which subject to the stated limits, are spent and
invested at their own discretion.

In essence, it involves a shift of decision making outwards from the central government. Hence,
a decentralized local body should have its own budget, a separate bank account, legal existence
(corporate status, power to sue and be sued, power to hold land and property); and the authority
to appropriate and allocate substantial resources (power to decide over expenditure, power to
vary revenues, decisions over appointment, promotion and discipline of staff). Also, a
decentralized local institution should exercise power on a range of different and multiple
functions, with decisions being made by local representatives of the people.

Therefore, a local government system should have a limited population with a taxable capacity
sufficient to support an efficient local administration. The local authority must be close to the
people to feel that it represents their interests, and it must be able to raise sufficient resources in
buildings, equipment and staff to deliver effective public services like primary education,
primary healthcare, sanitation, road maintenance, agricultural extension, etc.

Local government is a philosophical commitment to demonstrate participation (Ani et-al, 2009).

Local government is an instrument of devolution of power. It is an avenue for legal and

133
administrative decentralization of authority and power. Local government is an organ of the
higher levels of government but with a will of its own and performing specific functions; either
administratively delegated or constitutionally devolved. Local council authority is a system of
government by popularly elected bodies charged with administrative and executive duties in
matters concerning the inhabitants of a particular district or place. Laski (1982) opined that
problems are not central in their incidence but local, and requires decisions at the place and by
persons where the incidence is most deeply felt (Laski, cited in Ani et-al, 2009).

Local governments are the infra-sovereign geographical units contained within a sovereign
nation or quasi-sovereign province-state. They include intermediate units such as provinces,
basic units such as municipalities and, in some countries, sub-municipal units (Humes & Martin,
1969). Local government is a political subdivision of a federal state which is constituted by law
and has substantial control of local affairs, including the power to impose taxes, or to exact labor
for prescribed purposes (Emil Sady, cited in Olawuyi, 1999). Local government is characterized
by the provision of opportunity for the local community to determine their own political,
economic and social destiny, by actively participating in the making and execution of decisions
that affects them and managing their own affairs. Local government provide public services in a
particular area and is characterized by a defined area, a population, a continuing organization, the
authority and power to undertake public activities, the ability to sue and be sued and, to enter
into contracts, to collect revenue and to determine a budget. Generally, local governments can be
general-purpose, special-purpose, or representation or, both.

Define local government?

Local government is the creation of institutions in which representatives are given

formal power to decide on a range of public matters, separated by law from the other
levels of government.

The Guidelines for Local Government Reform (1976) defined local government as:
…government at local level exercised through representative council, established by law to
exercise specific powers within defined areas. These powers should give the council substantial
control over local affairs as well as, staff, institutional and financial powers to initiate and direct

134
the provision of services and, to determine and implement projects so as to complement the
activities of the state and federal governments in their areas, and to ensure through devolution of
functions to these councils and through the active participation of the people and their traditional
institutions, that local initiative and response to local needs and conditions are maximized (FRN,
1976). The 1999 Constitution of the Federal Republic of Nigeria recognized local council as a
third-tier system of local government (Olawuyi, 1999). Local government council is a
jurisdiction that engages in inventive actions to live within their financial means and under a
government authority (Bowman & Kearney, 1990).

The above definitions provide normative rules in support of local government as:

i. A power sharing relationship between the higher levels of government and local
communities.
ii. The third-tier of government in the federation with power to recruit, promote and
discipline its own staff in fulfillment of its self-determined priorities.
iii. Creation of the statutory instrument of the government.
iv. Decentralized government based on geographical, financial and administrative
autonomy to plan and execute programmes.
v. Preoccupied with the regulation and administration of local community affairs.
vi. Comprised of elected representatives and appointed officials accountable to the local
community through their council without external interference.
vii. Entity protected by law and empowered to make by-laws, rules and regulations for
the good governance of the people.

13.2 Evolution of Local Gover nment Administr ation in Niger ia

Communities had governing institutions since the beginning of recorded history, which took the
form and role of local government following the development of larger political entities. The
present institutions of local representative government developed their characteristics over the
course of the 19th and the 20th centuries. Every system of local government is a mixture and
blend of assorted traditions and techniques, which have been affected by variety of historical,
political, economic, social, and environmental factors. Hence, the effects of industrialization,

135
cash economy, coupled with pressures for rapid socio-economic change and demand for range of
infrastructural services affected adoption of local government as a modern phenomenon.

Decentralized local administration was pursued in Nigeria by the British colonial powers as an
autonomous model of governance (Mawhood, 1993). Following the Native Authority Ordinance
of 1904 and the Native Authority Enforcement proclamation of 1907, the Lugardian native
authority system evolved a system of local government in Northern Nigeria which enhanced the
traditional socio-political structure and authority of the Emir (Gboyega, 1993). The Northern
Native Authorities was unrepresentative and dominated by traditional elites with freedom to
administer local affairs under the ‘Indirect Rule’ system (Ugwu, 2000). Hence, local
administration was adopted in Nigeria under the Native Authority system of ‘Indirect Rule’ as a
strategy of governance and policy of administrative decentralization (Adamolekun et-al, 1998).

Subsequently, Native Authority Ordinance and Laws were promulgated in 1916, 1933 and 1943
to provide the development of a tax system, establishment of treasury, the ‘Chief-in-Council’ and
‘Chief and Council’ with the traditional institution playing dominant roles. Heterogeneity and
diversity of the local councils formed the justification of their autonomy. The attempt by the
Colonial Administration under Sir Frederick Lugard to replicate the system of native authorities
in Southern Nigeria was largely unsuccessful. Consequently, the British-type Conciliar system of
local government was created in the Eastern Region in 1951 and the American-type Manager
system in Western Region in 1953 respectively. The reforms ensured local accountability through
periodic election of representative councils, majority of members and, a chairman. This local
government system aimed at rapid political transformation, secularization of authority, rule by
representative council, separate budget and accounting system, power to tax and make by-laws,
limited autonomy in the structure, finance and general administration at the local level.

The reform of the local administration in the Eastern Region (1950) led to adoption of Divisional
Administration system, abolition of the Conciliar system of local administration and vested civil
servants with the powers of the local authority. The Divisional Administration system was a form
of de-concentration of organizational decision effecting the distribution of powers within the
bureaucratic structures (Mudd, 1976). The system was later adopted with minor structural
modifications by Cross River, Rivers and, Bendel states. In the Western Region, the Local
Government reform of 1953 followed the promulgation of the Local Government Law of 1952.

136
Later, the Local Government Law, 1954 empowered the local government to take full
responsibility for rural development within its area of authority. The 1966 reform of local
government administration in the Northern Region was therefore, directed at diffusing the power
of the traditional rulers, division of the Native Authority into Administrative Area Councils with
separate decision-making body, budget and treasury and, introduction of elective majorities
(Oyediran & Gboyega, 1979).

The implementation of decentralized government in Nigeria continued under the Yakubu Gowon
and Olusegun Obasanjo military administration. The decentralization reforms of 1976 intended
to encourage initiative and leadership potential at the grass roots level, stimulate return to
democratic self-government, increase the responsibilities of local authorities, ensure grass roots
participation and, accord traditional authority special recognition (Oyediran & Gboyega, 1979).
These principles were later translated into modestly sized authorities that make citizen
participation in decision-making meaningful; local responsibility for policy and control of
personnel and integration of traditional rulers into the local government system. These objectives
were later published as Guidelines for Local Government Reform in August 1976.

The Local Government Reform Act (1976) established a uniform structure, multi-purpose and,
single-tier local government administration; placed formal authority in elected secular
authorities; and provided for elective executive Chairman and supervisory councilors with the
traditional institution in an advisory role (Balogun, 1974). Significantly, the 1976 reform
entrenched representative local government system as a national norm, as guaranteed under
Section 7(1) Constitution of FRN 1979:

The system of local government by democratically elected local councils is under

this Constitution guaranteed. Accordingly, the government of every state shall
ensure their existence under a law which provides for the establishment, structure,
composition, finance and functions of such councils.
The 1976 reform entitled local authorities to a share of the financial resources of the State; as
provided by Section 149, of 1979 Constitution. In addition to statutory contributions from federal
and state governments, local authorities were also allowed the traditional sources of revenue
(community tax, licensing fees, permits, dues or charges) to ensure financial autonomy. The Act
prohibited Emirs and Chiefs as Sole Authorities in local administration and the division of the

137
larger emirates by setting a population limit of 150,000 to 800,000 as criteria for any local
council jurisdiction (Abubakar, 1978). Accordingly, the local government reform of 1976
recognized 301 local councils in the federation. The 1976 reforms also provided for technical,
professional or administrative staff, Local Government Staff Training Programme, Local
Government Service Commission and ‘Unified Service’. This model guaranteed tenure of
qualified staff, prevented arbitrariness in personnel administration and, guaranteed salaries and
pensions (Guidelines for Local Government Reform, 1976).

In 1984, the military government abolished all newly created local government councils and,
appointed the Ibrahim Dasuki-led 21-member committee to reorganize local government system.
In 1988, the military government abolished the Ministry of Local Government Affairs and in its
place, the Department of Local Government was located in the Governor’s Office to provide
guidance and supervision to the local government (OCGS, 1988). The Civil Service Reforms of
1988 also recommended that the statutory allocations from the federation account be sent
directly to local government with the Chairman designated as the Chief Executive and
Accounting Officer. This was to avoid diversion of local council funds by state governments. The
number of local government councils was increased to 453 in 1989, expanded to 589 in 1991
and, 768 local governments and 6 Area Councils in the Federal Capital Territory in the 1999
Constitution. The Constitution also listed conditions for creation of new local councils as well as
the names and number of local governments in the First Schedule to the Constitution.

The 1991 local government reform introduced financial autonomy, democratization, fixed tenure
for elected local government officials, Presidential System with the Legislative Council
separated from Executive arm under the principle of separation of powers (Local Government
(Basic Constitutional Transitional Provision) (Amendment No. 3, Decree, 1991). The 1999
Constitution adopted substantial part of the local government reforms as provided under the 1976
Reform, 1979, 1989 and 1991 Constitutions with little amendment. Local government share of
the federation account was increased to 20.60% and 10% contribution from state government are
deposited into the State-Local Government Joint Account. Overall, Section 7(1) of the 1999
Constitution granted state government through the legislature power to make laws and administer
local government council finance, personnel and resources.

13.3 Theor ies of Local Gover nment System

138
Administrative needs arise in every locality which directly concern the local community and that
are best dealt with locally. Before the arrival of colonial administrators and the institution of
formal government; villages, towns and communities organized themselves to resolve various
common needs and provide for their security and wellbeing through local action.
The Native Authority Law (1954) provided theories of local government as under:
a. Gener al-pur pose representative local gover nment
According to this theory, local government is established to provide all necessary services
and cater for the overall needs of the community. The local government is constituted by law
and representatives of the local people who exercise authority on behalf of the people.
b. Gener al-pur pose non representative local gover nment
Under this theory, local governments are dominated by appointed officials, traditional rulers
and bureaucrats to provide a wide range of socio-economic services in the local area.
c. Special- pur pose representative local gover nment
This theory provides for an elected local government comprised of representatives of the
people to discharge a single function or specific activities like water, health or education. The
choice of the function depends on the peculiar need of the local people for which special
attention is required. The local council administration and elected representatives are
adjudged by their ability to utilize local resources to satisfy these needs adequately.
d. Special-pur pose non-representative local gover nment
The theory provides for special local government councils so created to discharge delegated
functions. The public bureaucrats are deployed to undertake specific activities approved by a
central authority. Accountability for service rendered resides with the higher government.

e. Chief-in-council
According to this theory of local government, the traditional institution headed by the Oba,
Emir, or Chief presides over a consultative council in the local community. The members in
council play advisory role to the head of the traditional institution in matters brought before
their purview for deliberation. It is a form of administrative de-concentration of authority,
where the Chief, Oba or Emir may decide not to comply with the decision of the council.
f. Chief-and-council

139
 Under this form of local government administration, the Chief, Oba or Emir is under
compulsion to abide by the decision of the council members. The governance of the local
council is a collective responsibility, with the monarch acting as the official representative.
Under this model, the value of participation and democracy is maintained.
g. Group of per sons
The theory allows a group of sedimentary communities in close proximity and confronted
with common problem to consult and reach unanimous decision on the best course of action.
h. Caretaker /Sole Author ity
This theory provided the framework for the adoption and practice of the Native Authority
system in Northern Nigeria. It is characterized by appointed and unrepresentative traditional
elites who owe their membership of the council to the traditional head. A higher officer at the
regional or provincial level appoints the sole administrator and some members of the
caretaker committee to oversee the affairs of the local council.
i. The council
This theory provides for a federation of native authorities which pool financial and human
resources to accomplish socio-economic services for the entire locality. It is a composition of
mini council heads coming together for purpose of common defense, agricultural and
environmental expediency. The headship of the council is rotated among the clans, villages or
communities that comprise the jurisdiction of the council.

Eneanya (2014) had listed some models of rural community development that can be used to
buttress the theory of local governments in Nigeria.

a). Classical Model:

Local government development will occur if capital intensive projects are sited in the rural areas
using the human and material resources available in those areas.
b). Inter nal Combustion:
This theory of local government posits that development is achieved through the political desires
of the state's policy makers igniting the productive forces within the country. According to them
the explosive effect of this situation will automatically result into rapid growth and development.
c). Basic Resource:

140
This posits that local government development and growth depend on the availability of natural
resources in large quantity. Its availability and accessibility must be certain and, its magnitude
·must be such that it would attract commercial interest.
d). Dual Economy Model:
This model recognizes the co-existence of the modern economy and the rural economy as
essential for enhancing local government development.
e). Expor t-led Theor y:
This theory explains the emergence and expansion of export potentials in a local community
facilitates local government growth and development.
f). Ur ban Industr ial Model:
This model assumes that development and growth will occur in the local government if
agricultural production and output is near to the urban areas. This will result in the greater
probability of increased employment and incomes for the rural population.
g). High Input Payoff Model:
This model assumes that local council development will occur when a strategic role is assigned
to high yielding agricultural varieties.
h). Induced Model:
The model of local government posits that no matter the model or, theory that is used, problems
will always arise in the course of growth and economic development.
i). Diffusion Theor y:
This is a theory which explains why substantial productivity among farmers in the same
economic and geographical areas is seen to produce different results.

13.4 Local Gover nment Development Str ategies

Local government development strategy encompasses a wide range of measures and institutions.
The rationalization and realignment of local government development institutions is prerequisite
to achieve collaborative efforts with primary stakeholders for the production and marketing of
agricultural products and other rural commodities and resources. Similarly, partnership with the
private sector is required for rural transformation through promotion of industries, employment
and economic growth. Generally, the federal and state governments in Nigeria adopted the

141
National Policy on Integrated Rural Development, National Economic Empowerment and
Development Strategy, State Economic Empowerment and Development Strategy, Local
Economic Empowerment and Development Strategy, and Microfinance Finance Bank as the
strategic tools to facilitate development in the local governments. The aim is to:

a. Reduce poverty by raising the quality of life of the rural inhabitants.

b. Use local council administration to accelerate foundation for national development.
c. Create productive employment to enhance the income of the rural population.
d. Ensure gender protection and responsiveness and,
e. Guarantee adequate care for vulnerable groups.

Through creation of the Federal Ministry of Agriculture and Ministry of Humanitarian Affairs,
development needs of individuals in the local area were to be addressed. Harrigan & Nice (2006)
identified some strategies of development in the local government:

a. The federal government provides financial incentives and grants directly to local
councils to run a variety of social welfare programmes.
b. Agricultural development programmes like agricultural credit, river basin
development authority, extension services, fertilizers, crop storage and processing.
c. Non-governmental organization programme for poverty reduction.
d. Government social security scheme, social investment, low cost housing programmes.
e. Healthcare programmes such as HIV/AIDS, Polio, Ebola, Lassa Fever, Yellow Fever,
and COVID-19 epidemic eradication.
f. Government sponsored community development initiatives to solve the problems of
poverty, illiteracy, and poor physical infrastructure in the local government councils.
g. Stimulate and encourage integrated rural community development.
h. Provision of channels for closer coordination, monitoring and cooperation between
governmental and non-governmental agencies in grassroots development.
i. Promotion of regular publicity, information, and public enlightenment on local
government development activities.
j. Mobilize public spirited individuals, private and business sectors to show interest in
the problems, needs and welfare of local governments within their areas of operation.

142
 k. Provision of training and orientation courses for local government council staff on
community development.
l. Encourage planning and research in modern techniques of rural community
development.

Identify 3 strategies of development in the local government?

i). Provision of financial incentives and grants directly to local councils to run a
variety of social welfare programmes.
ii). Adoption of agricultural development programmes: agricultural credit, river basin
development authority, extension services, fertilizers, crop storage and processing.
iii). Non-governmental organization programme for poverty reduction.

The state government also monitors and coordinates local government development strategy
through the followings:

a. Organization of rural works services and community voluntary self-help projects.

b. Education Training and development research and planning.
c. Women empowerment programmes and cooperative schemes.
d. Leadership and vocational training, and skill acquisition centers.
e. Provision of infrastructure to meet the national goal of Universal Primary Education.
f. Committed partnership with United Nations Children’s Fund (UNICEF) to set up
Day-Care Centers for pre-school age children.
g. Direct provision of healthcare delivery services to the local community.
h. Implementation of Economic Empowerment and Development Strategy at the local
government level.

13.5 Local Gover nment Development Functions

Governments in Africa faced problems upon creation and have to attempt something more
dynamic than routine administration to accelerate the objectives of nation-building and socio-
economic development. Local government provided the alternative approach to problem of
underdevelopment with emphasis on popular support and participation. This is premised on the

143
argument that people know about the environmental constraints of their own situation more than
government officials and will accept palliatives if they consent to the proposed changes.

The rural areas in Nigeria constitute an important asset in the national development equation.
They are endowed with human and natural resources which are utilized to produce goods and
services for domestic and industrial consumption needs and, international market (Eneanya,
2012). The rationale for the creation of local government system stems from the need to facilitate
development at the grassroots (Ani, et-al, 2009). It is the path to and, guarantor of national
development, preservation of diversity and culture of the local people. Local government council
is created to facilitate significant increases in rural resources productivity with the overall
objectives of enhancing rural incomes and increasing employment opportunities in rural
communities. The local council is that system of government under which local communities are
organized to maintain law and order, provide some limited range of social services and public
amenities and, encourage the cooperation and participation of the inhabitants towards the
improvement of their condition of living.

The 1999 Constitution of the Federal Republic of Nigeria provides that it shall be the duty of
local government to participate fully in the economic planning and development of the state.
Specifically, the Guidelines for Local Government Reform (1976) and the Fourth Schedule of the
1999 Constitution assigned local councils responsibility for the socio-economic development of
their areas. Two lists of functions were drawn up; one to be devolved to the local authorities and
others, as the local authorities acquired the capacity to discharge them. The functions of local
government councils in Nigeria are:

a. Markets and motor parks

b. Sanitary inspection, refuse and night-soil disposal
c. Control of vermin
d. Slaughter house and slaughter slabs
e. Public conveniences
f. Burial grounds
g. Registration of births, deaths and, marriages
h. Provision of community and local recreation centers
i. Parks, gardens, and public open places

144
 j. Grazing grounds, fuel plantations
k. Licensing, supervision, and regulation of bakeries and laundries
l. Licensing, regulation and control of sale of liquor
m. Licensing, and regulation of bicycles and carts and other types of vehicles except
those mechanically propelled and canoes
n. Control of animals
o. Control of advertisements, use of loudspeakers in or near public places,
drumming
p. Naming of streets and numbering of plots /buildings
q. Control and collection of revenue from forestry outside the ‘forest estate’ of
gazette forest reserves.
r. Collection of vehicle parking charges
s. Collection of property and other rates, community tax, and other designated
revenue sources.
t. Health centers, maternity centers, dispensaries and health clinics, ambulance
services, leprosy clinics, and preventive health services
u. Abattoirs, meat inspection
v. Nursery and primary and adult education
w. Information and public enlightenment
x. Provision of scholarships and bursaries
y. Provision of public libraries and reading rooms
z. Agricultural extension, animal health extension services and veterinary clinics

Other functions of the local government are:

a. Rural and semi-urban water supply

b. Fire services
c. Provision of roads and streets –other than trunk roads, their lighting, drainage
d. Control of water and atmospheric pollution
e. Control of beggars, of prostitutes, and repatriation of destitute
f. Provision of public utilities except where restricted by other legislation, especially
including provision of road and inland water transport

145
 g. Public housing programmes, operation of commercial undertakings
h. Control of traffic and parking
i. Regulation and control of building
j. Town and county planning
k. Piped sewage systems.

Local governments also engage communities in service delivery through:

a. Participation/partnering in developmental interventions.

b. Provision of community health centers, schools and construction of community halls.
c. Construction of rural roads, rural bridges, drainage systems to check erosion.
d. Partnering in agricultural activities, communal poultry and livestock, agro-based
industries, farmers cooperatives, farm settlements, food and cash crop production.
e. Partnering in provision of electricity, bore holes and rural water supply.
f. Establishment and facilitate training of local vigilante security outfit.
g. Construction of cottage industries, community markets, recreational facilities, community
health centers, maternity homes, rural post offices.

13.6 Challenges Confronting Local Gover nment as Development Institution

Local government administration is a strategy of socio-economic and political development

adopted by colonial and post-Independence governments. However, local government councils
have been unable to fulfill its potentials as instruments of development administration in Nigeria
due to a multitude of external and internal factors (Adamolekun, et-al, 1998). Based on
constitutional authority the state governments are empowered to dissolve or create local
councils/local council development authority, acquire lucrative tax-yielding sources, appropriate
and divert local government statutory transfers, adjust tenure of local government officials, and
institute care-taker management committees to oversee local government administration.

The challenges that confront local governments as agents of development include the followings:

a. The absence of well-trained personnel to run the public services and implement native
local government decisions hampered the effectiveness of the local elites.

146
 b. The perception of the local council authority as instruments of exploitation and repression
of the people.
c. Not much visible social welfare or development projects were executed for the revenue
contributed to the native authority treasury and the local government.
d. The lack of administrative capacity at the local level enhanced dependence upon the state
government for the drafting of local by-laws, budget formulation and implementation.
e. Fragmentation of the local government councils and ineffective administration of local
government services.
f. Long term development planning was also hampered by the inconsistent local
government grants and inadequate bureaucratic guidance.
g. Most local government councils are not democratically elected, being under caretaker
management committees.
h. The functions of local government councils and revenue yielding sources have been taken
over by the state government agencies.
i. The over bearing attitude of state government agencies and officials.
j. The state legislature has meddled in the affairs of the local government councils thereby
making them mere appendages of the state government.
k. Creation of the Ministry of Local Government Affairs.
l. Local government personnel and administration are subject to the state government
bureaucracy in terms of recruitment, promotion and deployment.
m. Local council financial autonomy has been severely hampered through the appropriation
of local council revenues and establishment of the State-Local Joint Account.
n. Dominance of paternalism, illiteracy, poverty and passivity among the local population.
o. The belief that local planning for rapid economic development requires centralized
government.

Summar y of Study Session 13

In this study session, you have learnt that local government is a creation of higher level
government with a separate legal authority and specified functions. The study session also
highlighted the strategies adopted for local government as instrument of development. Lastly, we

147
highlighted some systemic challenges that constrain the local council to perform its statutory
function as a third-tier of government and development institution.

13.8 Self-Assessment Questions (SAQs) for Study Session 13

Now that you have completed this study session, you can assess how well you have achieved its
Learning Outcomes by answering the following questions.

SAQ 13.1 (tests Lear ning Outcomes 13.1)

Which of the following is Not a feature of local government?

A. A limited population with a taxable capacity
B. The local authority must be close to the people
C. Able to raise sufficient resources
D. Overseen by bureaucrats
SAQ 13.2 (tests Lear ning Outcomes 13.2)

Democratic self-government is a major feature of …

A. Native Authority System

B. Local government reform of 1976
C. Indirect Rule policy
D. Northern Region administration.

SAQ 13.3 (tests Lear ning Outcomes 13.3)

Under the 1999 Constitution, local government share of the federation account is…

A. 10.60%
B. 10.00%
C. 20.60%
D. 20.00%

SAQ 13.4 (tests Lear ning Outcomes 13.4)

Under the Chief-in-council system, the Chief, Oba or Emir may decide not to comply with the
decision of the council – TRUE or FALSE

148
SAQ 13.5 (tests Lear ning Outcomes 13.5)

Under the 1999 Constitution, functions of local government are listed in the….

A. First Schedule
B. Second Schedule
C. Third Schedule
D. Fourth Schedule

References

Adamolekun, L; D. Olowu and M. Laleye (1998), Local government in West Africa since
independence (Eds) Lagos: University of Lagos Press
Abubakar Yahya Aliyu (1978) ‘As seen in Kaduna’ in Panter-Brich (ed) Soldiers and oil: The
political transformation of Nigeria , London: Frank Cass
Ani, Samuel, Eze Emeka and Ani Wilson (2009) Advanced local government finance, Enugu:
Spring-Time Press
Awojobi, O. N. (2015). Cultivating policy for development in Nigeria: An appraisal of President
Goodluck Jonathan’s Transformation Agenda (2011-2014). International Journal of Humanities,
Engineering and Pharmaceutical Sciences 1(9)1-11
Balogun, M. J (1974) Decentralization under civilian and military regimes: The pattern in
Western Nigeria 1953-73, Studies in Comparative Local Government, Vol. 8, No. 1, (Summer)
Bowman Ann and Richard Kearney (1990) State and local government, Boston: Houghton
Mifflin Company
Eneanya A.N. (2014). Theory and Practice of Public Administration, Ibadan: University of
Ibadan Press.
Eneanya, N. Augustine (2012). Local Government Administration in Nigeria: A Comparative
Perspective. Lagos: University of Lagos Press.
Federal Republic of Nigeria (1976), Guidelines for Local Government Reform, Kaduna
Gboyega Alex (1993), Local government reform in Nigeria, in Mawhood Philip (1993), Local
government in the Third World: Experience of decentralization in tropical Africa (2nd edition)
South Africa: African Institute of South Africa
Harrigan, J. and D. C. Nice (2006). Politics and Policy in States and Communities, New York:
Pearson Longman.
149
Humes Samuel and Eileen Martin (1969), The structure of local government: A comparative
survey of 81 countries, The Hague, Netherlands: International Union of Local Authorities
Ibietan, J. & O. Ekhosuehi (2013). Trends in development planning in Nigeria (1962-2012).
Journal of Sustainable Development in Africa, 15(4)297-311.
Kyarem, R. N., & Ogwuche, D.D. (2017). Nigeria’s Economic and Growth Plan (ERGP):
Tackling the macroeconomic downside risks. International Journal of Advanced Studies in
Economics and Private Sector Management 5(3) 1-10.
Local Government (Basic Constitutional Transitional Provision) (Amendment) (No. 3) Decree
1991, Section 22 G. See supplement to official gazette extraordinary No. 14, Vol. 78, 8 May
Mawhood Philip (1993), Local government in the Third World: Experience of decentralization in
tropical Africa (2nd edition) South Africa: African Institute of South Africa
Mudd, John (1976), ‘Beyond community control: A neighborhood strategy for city government’
Publius: The Journal of Federalism, Vol. 6. No. 4 (Fall)
OCGS (1988) Circular No GAO/CGS/925 of 13th October, 1988 from the Office of Chief of
General Staff
Olawuyi Goke (1999) Introduction to local government: Trends and development, Ketu: Gokus
Publishers
Oyeleye Oyediran and Alex Gboyega (1979), ‘Local government and administration’ in O.
Oyediran (ed) Nigerian government and politics under military rule (1966-79), New York: S.
Martin Press
Ugwu, S.C. (2000). Issues in local government and urban administration in Nigeria. Enugu:
Academic Printing Press.
Suggestions for fur ther Reading
Adamolekun, L; D. Olowu and M. Laleye (1998), Local government in West Africa since
independence (Eds) Lagos: University of Lagos Press
Amucheazi, E.C. (ed.) (1980). Readings in Social Sciences: Issues in National Development.
Enugu: Fourth Dimension Publishers.

Eneanya, N. Augustine (2012). Local Government Administration in Nigeria: A Comparative

Perspective. Lagos: University of Lagos Press.

Ezeani, E.O. (2006) Fundamentals of public administration, Enugu: Snaap Press Limited

150
Gboyega, Alex (1987) Political values and local government in Nigeria, Lagos: Malthouse press
Ugwu, S.C. (2000). Issues in local government and urban administration in Nigeria, Enugu:
Academic Printing Press.
Should you require more explanation on this study session, please do not hesitate to
contact

your e-tutor via the LMS.

Are you in need of General Help as regards your studies? Do not hesitate to contact the
DLI IAG Center by e-mail or phone on:

iag@dli.unilag.edu.ng
08033366677

Study Session 14: DEVELOPMENT ADMINISTRATION AND RURAL DEVELOPMENT

Introduction

Development is consolidated when it is internalized at the grass root level, development

administration and rural development has significant linkage. The former is concerned with
designing the road map for development over a given period. It is the conscious effort towards
creating the vision and mission that drive development in country for a specific time. Rural
development has to do with grass rood development, incorporating those developmental goals to
the rural areas. This session will examine the interface between development administration and
rural development.

Lear ning Outcomes for Study Session 14

151
At the end of the session, you will be able to:
14.1 Discuss the Concept of Cooperatives and rural development

14.2 Explain the Types of Trans/Multi-National Corporations

14.3 Describe the Mode of Operations of Trans/Multi-National Corporations

14.4 Analyze the theoretical positions on Trans/Multi-National Corporations Operations

Cooperatives, Development, Rural, Transnational, Multinational

14.1 Concept of Cooper atives and Rur al Development

The history of cooperation is directly related with human being, because, human being
traditionally cooperate each other in day to day life to overcome their immediate problems and
also to share their feelings. Representative body for cooperatives, the International Cooperative
Alliance (ICA) define cooperative in 1995, as:

“an autonomous association of persons united voluntarily to meet their common

economic, social and cultural needs and aspirations through a jointly owned and
democratically controlled enterprise.”
The United States Agency for international Development (1985) explained that, Cooperative
forms of social and economic organizations exist throughout the world, engendered and molded
by often quite dissimilar social, economic and political traditions. No single definition of
"cooperative" would be adequate to describe the diverse activities that have been labeled
"cooperative." But it is possible to identify certain common characteristics of cooperative
organizations.

Agriculture, including farming, forestry, fisheries and livestock, is the main source of
employment and income in rural areas, where the majority of the world's poor and hungry people
live. Agricultural cooperatives play an important role in supporting men and women small
agricultural producers and marginalized groups by creating sustainable rural employment.
Producer cooperatives offer men and women smallholders market opportunities, and provide
them with services such as better training in natural resource management, and better access to
information, technologies, innovations and extension services (FAO, 2011).

152
Cooperatives have played a major role in the agricultural industries of all developed countries
and many developing countries for well over a century. They have been important in farm
supply, providing fertilizer and other inputs, and product marketing including transport, storage
and processing (Yue Zhou, 2003).

Different cooperatives are playing vital role around the globe. For example, cooperatives control
about 80% of dairy production, while in California most of the specialty crop producers are
organized in cooperatives. In Colombia, the National Federation of Coffee Growers provides
production and marketing services to 500,000 coffee growers. It contributes to the National
Coffee Fund, which finances research and extension for coffee-growing communities.

In 2005, the Indian Dairy Cooperatives, with 12.3 million members, accounted for 22 % of the
milk produced in India. 60% of members are landless or have very small plots of land. Women
make up 25 % of the membership. In Brazil, cooperatives are responsible for 40% of the
agricultural GDP and 6% of total agribusiness exports. However, cooperatives around the world
over are in a state of instability. In almost all parts of the world, cooperatives face in one or
another way facing the same challenges. Such as past attitude (ideology), lack of committed
leadership, lack of good governance (management), lack of working capital, attitude and practice
of corruption, lack of knowledge and skill, lack in provision and utilization of improved
technology, weak vertical and horizontal linkage within and among cooperatives, lack and
inappropriate support from government and other stakeholders.

14.2 Types of Tr ans/Multi-National Cor por ations

In the international business literature, different types of multinational companies have been
conceptualized, which emphasizes their heterogeneous and changing character. Hedlund (1986)
considers the multinational company as a ‘hierarchy’, possessing several decision centers that
need to be coordinated. The author emphasizes that the organizational configuration of the MNC
influences strategic decisions and the interpretation of the environment. The hierarchical
structure requires a strong integration of different units to preserve the unity of the organization,
but also a certain disintegration of other activities to avoid a high degree of centralization.

Bartlett and Ghoshal (1991) introduce the ‘transnational company’, which allows going beyond
the centralization/decentralization dialectic. The authors describe a system of internal

153
differentiation which assigns different roles and responsibilities to foreign subsidiaries. Based on
a strong interdependence between subsidiaries, this management system can increase learning
capacities and improve the MNC’s competitiveness on international markets.

Doz et al, (2001) develop the ‘meta-national company’, whose competitive advantage is built
through the knowledge acquired by foreign subsidiaries. The authors consider that, in a
knowledge economy, companies innovate thanks to their learning capacity in different parts of
the world. The meta-national company has three key competences: it is the first to identify new
knowledge developed in different parts of the world; it is able to innovate by using this
knowledge before its competitors; it creates value through innovation by an efficient production
and marketing process at the global level.

14.3 Mode of Oper ations of Tr ans/Multi-National Cor por ations

Multinational corporations are companies which seek to operate strategically on a global scale. A
multinational corporation is a company, firm or enterprise that operates worldwide with its
headquarters in a metropolitan or developed country.

According to Gilpin (1987) ‘the principal objective of multinational corporations is to secure the
least costly production of goods for world markets. This goal may be achieved through acquiring
the most efficient locations for production facilities or obtaining taxation concession from host
governments. This objective confirms the views of the Marxist who see the MNCs as progressive
agents of capitalism. As a result of this capitalist motif, the MNCs try in every way possible to
cut down expenses and maximize profit. As stated, the MNCs usually have their head office in
one country with a cluster of subsidiaries in other countries and maintain a very high standard
management outfit. This managerial expertise gives rise to maximum efficiency, that is,
maximum result at minimum cost.

What is the view of the Karl Marx on Multi-National Corporations (MNC)?

Karl Marx views Multi-National Corporations as progressive agents of capitalism.

At the same time, they are often also accused of destructive activities such as damaging the
environment, complicity in human rights abuses, and involvement in corruption. Whether these

154
accusations are fair or not, many MNCs are now attempting to manage these complex set of
issues in the host countries by implementing corporate social responsibility strategies because
such issues may risk the success of their operations (Bulus & Ango, 2012). It is not in the nature
of the MNCs to solve social or economic problems of the host countries. Luis Echeveria, the
former Mexican President affirmed that there is the need for transnational corporations to respect
the social and cultural fabric, as well as the development priorities of the countries in which they
are investing (Robinson, 1979). This attitude of MNCs should encourage all those who are
clamoring for the involvement of MNCs in activities that are not attuned to or in line with the
activity of maximizing profits. They should begin by way of redefining and re-stating the
meaning and nature of the MNCs to have the well-being of the host nation at heart.

14.4 Theoretical Positions on Tr ans/Multi-National Cor por ation Oper ations

Several theories contribute to a better understanding of the existence of multinational companies,

their characteristics and their relationship with the environment. Forsgren (2008) put forward six
theoretical perspectives: industrial organization theory, transaction cost theory, organizational
capability theory, contingency theory, business network theory and institutionalization theory.

Industrial organization theory views the MNC as a company whose aim is to exploit a
monopolistic advantage in foreign markets. The organizational configuration is mainly
hierarchical, and the headquarters play a predominant role in the definition of corporate
strategies and the management of business activities (Ulrike and Prange, 2013).

According to transaction cost theory, the MNC is a company that internalizes and coordinates
market transactions across country borders, which are difficult to develop between independent
firms. The creation of foreign subsidiaries responds to logics of global efficiency (ibid).

The organizational configuration is hierarchical, and the headquarters seek to apply appropriate
behavioural constraints to local subsidiaries. The organizational capability theory, which is
based on the resource based view, argued that the MNC needs to possess a competitive
advantage. It should thus be able to create, transfer, combine and use unique capabilities in
foreign markets. Capabilities are specific configurations of resources and competences that can
be distributed throughout the group. They allow the MNC to build a competitive advantage. The
major role of headquarters is to stimulate the creation of capabilities within the company.

155
Contingency theory highlights the capacity of the MNC to adapt to the complexity and to
changes that take place in the environment. The MNC can exist in a long-term perspective if it
develops the ability to adapt the organization and control systems to changes in the environment.
The role of the headquarters is to analyze the environment and to shape the organizational
structure according to different local contexts. The emphasis is put on values that are shared by
the members of the organization (Ulrike and Prange, 2013).

According to business network theory, which is based on network theory and resource
dependence theory, the MNC can be viewed as a network. This perspective highlights the
importance of business networks (suppliers, distributors, customers, governments, etc.)
developed by local subsidiaries, which can be considered as strategic resources. The power is
dispersed throughout the company, and each unit of the group can thus influence strategic
decisions through its local business network.

The institutionalization theory views the MNC as a political actor rather than as a business actor.
The approach focuses on different institutional environments that the MNC needs to deal with,
but also on the influence the company can have on these environments. Headquarters and
subsidiaries need to manage political situations and conflicts in various institutional contexts, at
both national and international levels (Ulrike and Prange, 2013).

Summar y of Study Session 14

In this session we examine development administration and rural development. We examined

cooperative and rural development and argue that Cooperatives have played a major role in the
agricultural industries of all developed countries and many developing countries for well over a
century. We also interrogated Multinational Corporation and their roles in rural development and
argue that multinational corporations are companies which seek to operate strategically on a
global scale. A multinational corporation is a company, firm or enterprise that operates
worldwide with its headquarters in a metropolitan or developed country. The session concluded
by examining the theories of Multinational Corporation.

14.6 Self - Assessment Questions (SAQs) for Study Session 14

SAQ 14.1(tests Lear ning Outcomes 14.1)

156
Discuss the role of agricultural cooperatives in rural development

SAQ 14.2 (tests Lear ning Outcomes 14.2)

Highlight and explain the types of Multinational Corporations?
SAQ 14.3 (tests Lear ning Outcomes 14.3)
What are the operational modes of Multinational Corporations?
SAQ 14.4 (tests Lear ning Outcomes 14.4)
Discuss the contingency theory foundation of Transnational/ Multinational Corporations C

References

Bartlett, C. and Ghoshal S. (1991) Managing Across Borders: The Transnational Solution,
Boston, Massachusetts: Harvard Business School Press.

Doz, Y., Santos J. and Williamson P. (2001), From Global to Meta-national: How Companies
Win in the Knowledge Economy, Boston/Massachusetts: Harvard Business Press.

FAO. (2011), Agricultural Cooperatives are Key to reduce hunger and poverty. 2011

Forsgren, M. (2008), Theories of the Multinational Firm. A Multidimensional Creature in the

Global Economy, Cheltenham: Edward Elgar Publishing.

Hedlund, G. (1986), The Hypermodern MNC - A Tetrarchy, Human Resource Management,

25(1), 9-35.

Ulrike, M and Prange, C. (2013), Multinational Corporations (MNCs) and Enterprises (MNEs),
Wiley Encyclopedia of Management.

USAID Policy Paper, (1985), Cooperative Policy. Washington D.C. 20523, Bureau for Program
and Policy Coordination.

Zhang-Y. Z. (2004), China’s Experience with Agricultural Cooperatives in the era of Economic
Reform. Asian Agribusiness Research Centre, The University of Sydney, Orange NSW 2800.

Suggestions for fur ther Reading

Ake, C. (1981). African Political Economy, Essex: Longman Group.

157
Onimode, S and Aderan C (1983) Imperialism and underdevelopment in Nigeria, Ibadan:
Macmillan.

Wright, Robert. (1992). Labour and Multinational Corporations Foreign Affairs, New York:
Talcum Press.

Should you require more explanation on this study session, please do not hesitate to
contact

your e-tutor via the LMS.

Are you in need of General Help as regards your studies? Do not hesitate to contact the
DLI IAG

iag@dli.unilag.edu.ng
08033366677

Study Session 15: PRIVATIZATION AND COMMERCIALIZATION

Introduction

Privatization is the total sale of government stake in a public enterprise. It is one of the
requirements of the structural adjustment program, which emphasized the redefinition of states
role in the economy of the society by disengaging the state from those activities, which are best
done by the private sector with the overall objective of achieving economic efficiency. Verr
(1999), argues that it is first and foremost a political process although it has to be carried out as
an economic exercise.

158
Commercialization on the other hand is the transformation of a nonprofit oriented public
enterprise into a profit based organization, it does not involve the alienation of government
shareholding to the private sector but involves changing the way government owned companies
operate to ensure that they run commercially and that they make profit. Notwithstanding the
differences in their ownership structure, Commercialization like privatization is aimed at
improving efficiency in the management of public sector / enterprises, resulting in less
dependence on government for funding. This session will examine privatization and
commercialization.

Lear ning Outcomes for Study Session 15

At the end of the session, you will be able to;

15.1 Explain the concept of Public Enterprise
15.2 Discuss the benefits of privatization
15.3 Analyze the ideology of accountability in privatization of public enterprise
15.4 Describe the prospects of development administration in privatization and
commercialization

Accountability, Commercialization, Enterprise, Privatization, Public

15. 1 What is Public Enter pr ise?
According to Adeoti (2005) public enterprise means an agency of a predominantly industrial,
commercial or financial character, entirely or partly owned and substantially controlled by the
Federal, State or Local Government. To David Walker (1980) he referred to public corporation as
corporate bodies established by statute to own, manage and operate utilities and industries in the
public interest. As compared with private corporations, they have no stimulus to efficiency.

To Ademolekun (2002), a public enterprise is an organization that is set up as a corporate body

and as part of the governmental apparatus for entrepreneurial or entrepreneur-like objectives. The
United Nations (cited in Anyadike, 2013) defined a public enterprise as an incorporated or large
unincorporated enterprise in which public authorities hold a majority of the shares and/or can
exercise control over management decisions. In the submission of Egwakhide and Terzungwe

159
(2012) Public sector enterprises consist of government- owned enterprises whether at local, state
or federal levels. The public sector as an economic agent is acting on behalf of everybody, with
all its economic resources commonly owned, and all its activities carried on, on behalf of
everybody. In a related development, Oleku (in Akhakpe 2008) views public enterprises as
statutory corporations that are established by specific statutes that contain provisions relating to
finance and personnel among other things.

Corroborating the position of Onwe (2006), a public enterprise is viewed as an artificial person
who is authorized by law to carry on particular activities and functions. It is described as a
corporate body created by the legislature with defined powers and functions and independently
having a clear-cut jurisdiction over a specified area or over a particular type of commercial
activity (Salako, 1999).

Public enterprise is a government owned enterprise created to render essential service to the
public at a reduced price which if left for private individual will be expensive for the citizenry.

15. 2 Benefits of Pr ivatization

There are lots of benefits of privatization which have been identified by scholars. Ojobo (2005)
for instance summarized the benefits of privatization as follows:
a. Privatization and concentration of wealth in a few hands do not have to go together, on the
Contrary, an even spread of ownership can be achieved with sound planning of privatization;
b. Governments all over the world are not suited to run certain enterprises efficiently.
c. African nations under the economic slump can no more bear the inefficiencies of public
enterprises.
d. privatization will improve the efficiencies of the enterprises.
e. privatization is taking place in many countries of the world, including the United State, Britain
and Germany.
f. Government can still control enterprises without necessarily owing them. For example the
Central Bank of Nigeria controls the commercial banks through prescribing reserve ratio,
stipulated credit guidelines.
g. Revenue can be raised for government through better corporate taxation instead of corporate
ownership and through the proceeds from the sale of public enterprises.

160
h. The problems facing most public enterprises can be traced to the fact that they are government
owned and this is why they are used for political and other patronages; the managements are not
given a free hand to manage and the organizations do not care to collect their debts. Privatization
will remove political interference and administrative red tape from public enterprises.
i. privatization will abolish unproductive use of scare national resources, eliminate fraud and
embezzlement and infuse financial discipline into this organization.
j. tight controls by government which might result if these is no privatization is not necessarily in
the best interest of the country. For instance, if the government was in complete control of
commercial banks in Nigeria, the bank should have embarked on unnecessary retrenchment of
workers, besides watertight control of economy may degenerate into totalitarianism.
k. if public enterprises are privatized, they will generate greater wealth and provide more
employment because their efficiency and productivity level will be raised (Ojobo,2005).
Privatization is occasioned because the inefficiency in public enterprise, privatization brings
business model and practices to the public enterprise which improves its performance.

15.3 Issues of Ideology and Accountability in Pr ivatization of Public Enter pr ises

Privatization leaned on the ideology of liberalism which claims that government has no business
regulating the economy not to talk of owing business itself. That this function should be left into
market forces. Coyller (2003) noted that this ideology of liberalism or neoliberal thought come
as a result of change or new discourse in ideologies concerning the fundamental role of the state
and the relative merits of the private and public sectary. The simple assumption is that as state
cannot be as efficient as a private entity in the production of the same output”

According to Bagu (2003), liberalism came in the mid-20th century as a result of campaign
against state chartered monopoly by the dominant business groups in America. In response to
this new form of monopoly in the mid-20th century, a movement arose to fight over what it
considered big business strangulation of free competition championed by new generation
capitalist.

Key to this ideology of liberalism particularly its new form is the heavy reliance on market
forces, which it advocates claim to be the most efficient mechanism for allocation of scarce

161
resources. This ideology of liberalism was transported to the 3rd worlds through the United
Nations agencies especially the IMF and World Bank.

If there has been an ideological debate over privatization, it has certainly been won by those
favoring privatization, judging by the policy outcome. However, it is not so much that the debate
was won but that the counter debate was either not made or made weakly. In any case pragmatic
rather than ideological arguments seem to have held sway. Even in Britain, where the ideological
debate was supposed to be most fervent, the most cogent reason for continuing privatization
programme was pragmatic one of raising revenue rather than changing the shape of society.

Looking again at the different kinds of public enterprises in competitive benefits would only be
certain to arise from selling enterprises in competitive environments. For the other kinds, notably
utilities, the economic benefits would be greatest by encouraging competition.

What ideology informed the introduction of privatization?

Privatization was established on the ideology of liberalism.

Vickers and Yarrow (1988) argued that the degree of product, market, competition and the
effectiveness of regulatory policy have rather effects on performance than ownership'. Even
there, though, the benefits may not be large. There would seem to belittle advantage in
privatizing loss-making areas such as railways, although there may be some attraction in simply
getting rid of these kinds of enterprises.

The debate has now been won by those in favor of privatization. This has happened even though
the economic arguments for privatization are less than overwhelming, there is no in
controvertible evidence supporting the superior efficiency of private sector provision (although
there is a similar lack of evidence of any public sector superiority) and, the ideological
arguments remain unconvincing. Aharami (1991) argued that the goal of improving economic
efficiency is rarely shared by the major stakeholders and in the end, the largess of privatization
may come in subtle and indirect ways, for instance, where privatization is widely believed to
make a difference, it may prove a self-fulfilling prophecy. The expectation of government
agencies, the public, the labor force and the managers themselves may be altered by the changes

162
in ownership of the enterprises concerned. Those changes in expectations may prove more
important in the long run that the measurable economic consequences.

Once any organization is in government hands, there is bound to be questions about its
accountability. In theory all parts of government are accountable to the political leadership and
finally to the people. The question of accountability was once the major concern in public
administration studies of public enterprise and statutory authorities. Concern about ownership
came much later. Although the main question now is certainly that of privatization, the concern
with accountability remains important.

According to Aharami (1986), public enterprise inefficiency is not necessarily the result of
ownership. That accountability is a fundamental problem can be seen from the three
distinguishing characteristics of public enterprises. 'First they must be owned by the government.
Secondly, they must be engaged in the production of goods and services for sales. Third, sales
revenue should bear some relationship to cost'. These characteristics can lead to confusion in
accountability. Public enterprises are organizations designed to be a part of the government
sector, but also to operate commercially. They operate commercially but have no shareholders-
they are government-owned. They have their own management and boards of directors, but are
also responsible to a minister. A public enterprise is often required to meet other objectives,
rather than simply trying to maximize profit like a private company.

The theory of principal and agent suggests that accountability problems are inherently worse in
the public sector and in public enterprise in particular. This means that poor accountability is a
justification for privatization in addition to the economic rationale set out earlier. According to
Zechauser and Horn (1989), the separation of ownership and control in any enterprise creates an
agency problem. In private corporations, the shareholders' ability to sell their stock or vote out
management creates incentives for those who control the enterprise to serve the interests of
owners. The very diffuse, non- transferable shareholding that characterizes government
ownership, by contrast, reduces these incentives. Consequently, those who control the public
enterprise pay less attention to the interests of their taxpayer shareholders, and group with more
concentrated interests, such as supplier’s consumers and employees, can influence management
to favor them over the tax payers.

163
15.4 The Prospects of Development Administr ation in Pr ivatization and
Commercialization

Development administration was thought to be all that was needed to overcome tribal authority
and superstition and accelerate the rate of development. However, it was rather patronizing, as
Turner and Hulme (1997:12) argued that it was a form of social engineering imported from the
West and embodying faith in the application of national scientific principles and the efficacy of
the Keynesian Welfare economics. In its early days at least, it reflected the naive optimism and
ethnocentricity of modernization theory, that there were straight forward technical solutions for
under development and the West possessed

It was true that motivations of the practitioners of development administration were high but
there were problems as Dwivedi and Henderson (1990) argued that development administration
was supposed to be based on professional oriented, technically competent, political and
ideologically natural bureaucratic machinery. The ostensible output was modernization- induced
and predictable social change following Western perceptions preceded by institution building and
modernization of the indigenous bureaucratic machinery to undertake development tasks. But
what was missing from the expected picture-perfect imitation in the Third World was the
necessary set of conditions for bringing about a number of social, economic, cultural and
political changes. These included an expanding economic base, a tax base, professionally trained
manpower, political legitimacy, cultural secularization, and strong political super structure
capable of governing. Development administration is interesting for public management as a
topic in its own right and also as the area of government to change dramatically over the1980s
and1990s. It serves as a test case for what is likely to occur in the public sector as a whole.

In the final analysis it seems difficult to see any prospects future for development administration
in any advanced or developing country. The reduction of the public enterprise sector in 1980s
and 1990s says something about the public sector in general. The fact that government entities
may have lasted a long time is no guarantee of their continued existence. The shrinking of
government through privatization occurs through a process of economic theory feeding into
policy-making. The privatization policy may be a general test case for the practice of
development administration but it is one which shows that care must be taken in developing clear
objectives and with the implantation being crucial for desirable results.

164
 Summar y of Study Session 15

In this study session we have been examine the current status of development administration by
making reference to the views of some writer. And from these views we can predict a shaky
future for development administration. Although the evidence is mixed and far from conclusive,
this change in the theory has led to the adoption of policies by government to reduce or even
eliminate public enterprise (a vehicle for development administration). Development
administration is therefore, fading and the privatization movement portends a shaky future for
the once cherished field.

Self-Assessment Questions (SAQs) for Study Session 15

SAQ 15.1(tests Lear ning Outcomes 15.1)

What is public enterprise?

SAQ 15.2 (tests Lear ning Outcomes 15.2)

List the benefits of privatization

SAQ 15.3 (tests Lear ning Outcomes 15.3)

Discuss the issues of ideology and accountability in privatization

SAQ 15.4 (tests Lear ning Outcomes 15.4)

Evaluate the prospects of development administration in commercialization and privatization

References

Adamolekun, L. (2002). Public administration in Africa , Ibadan: Polygraphics Ventures Limited.

Adeoti, J. O. (2005). The social cost of privatization of public enterprises in Nigeria.

International Journal for Social Science, 36(2): 199-208

Akhakpe, I. (2008), Administrative and management of public enterprise in Nigeria , Lagos:

Pumark Nigeria Limited.

165
Anyadike, N. (2013). The need to make Nigerian public enterprises work, Journal of Humanities
and Social Science (IOSR-JHSS),18(3), 68-75.

Egwakhide, C.I & Nyor, T. (2012). Effectiveness of pricing policy in Nigerian public sector
enterprises: A theoretic Approach. International Journal of Business and Social Science,3(8) 218
– 224.

Salako, H.A. (1999). An overview of privatization in Nigeria and options for its efficient
implementation. CBN Econ. Finance. Rev. 37(2).

Verr, B. A. (1999). Issues in Privatization of Public Enterprises. Bullion Vol. 23, No. 3.

Turner, M.and Hulme, D. (1997). Government Administration and Development: Making the
State Work. London:Macmillan.

Dwivedi, O.P. and Henderson, K.M(1990). 'State of the Art: Comparative Public administration
and Development Administration' in O.P. Dwivedi and K.M Henderson (eds). Public
Administration in World Perspective. Ames: Iowa State University.

Suggestions for fur ther Reading

Adamolekun, L. (2002). Public administration in Africa , Ibadan: Polygraphics Ventures Limited.

Akhakpe, I. (2008), Administrative and management of public enterprise in Nigeria , Lagos:

Pumark Nigeria Limited.

Should you require more explanation on this study session, please do not hesitate to
contact

your e-tutor via the LMS.

Are you in need of General Help as regards your studies? Do not hesitate to contact the
DLI IAG

iag@dli.unilag.edu.ng
08033366677
166
ANSWERS TO SELF-ASSESSMENT QUESTIONS (SAQs):

Answer s to Self - Assessment Questions (SAQs) for Study Session 1

SAQ1:

Development administration is the process of planning, organizing and controlling the

mobilization and utilization of resources to achieve social transformation in fragile societies.
Development administration is multi-dimensional and refers to growth, modernization,
transformation, structural change or progression of a system from a lower and often undesirable
state to a high and, preferred one.

SAQ2:

D.

SAQ3:

TRUE

SAQ4:

167
Answer s to Self - Assessment Questions (SAQs) for Study Session 2

SAQ1:

SAQ2:

SAQ3:

As a field of systematic study, the development-administration has been only recent origin. The
word Development-administration was first coined by Indian Scholar Goswami in 1955. And
later on, credit goes to Prof. Weidner, because he made the symbolic, systematic and scientific'
study of development administration. He laid the scientific foundations of the discipline. We may
sum up as:

a). Development administration is an intellectual discipline or science to be studied in

educational institutions both by the students and scholars.

b). It is one of the social sciences largely concerned with the investigation of social and
economic issues, and

c). It is a positive, normative and empirical science.

It is positive and normative because it is concerned with the question of values. It is normative
science because it is intimately connected or concerned with the life and ideals of the people for
whom it has to function. It is empirical because it is concerned with the facts, and actualities.

SAQ4:

Development-administration is an activity which requires a skill for its efficient performance. It

is an art, and development administrator is an artist. Talented person becomes administrator. As
an art, development-administration is concerned with the practical affairs of administration. As a
practice it stands for the process or activity of administering governmental affairs. It is not only
an art, but a fine art or discipline. Art is not merely theory, but putting theory in to practice.
Similarly, we find that development-administration is not merely theory but practice. It is more

168
practical aspect rather than theoretical discussion. As a practice, it is essentially an art. In the
olden days of the monarchic period, the royal and the noble families used to pay greater attention
to the education of their children in the art of governance.

In this way, we can conclude by saying that development administration is 'both a Science as
well as, an Art.'

SAQ5:

In the traditional administrative system, administrators tend to be routine minded, stagnant and
generally lacking enthusiasm and ability for innovation. Development-administration on the
other hand requires an administrator who is dynamic, innovative, and development conscious to
perform his/her role in the administration for development. This is indeed a most decisive area in
development administration. Development administration is required to be responsive and
accountable. A top-down/bottom-up flow that is the important criteria, innovation, creativity,
adaptability, flexibility is crucial in the planning and administration of development activities.
All these requirements can be facilitated by development administration.

A development administrative system requires highly motivated personnel at all levels. Such
personnel should be committed to the development goals and have a high degree of enthusiasm
to accomplish them. They need to possess and demonstrate their willingness, dedication to
achieve the progressive goals of development.

SAQ6:

The goals of development administration can be categorized into three namely: Economic goals,
Social goals, and administrative goals, economic goals should lay stress on eradication of
poverty and unemployment and development for overall improvement of quality of life, social
goals should aim at brotherhood, welfare, happiness and peace and the administrative goals
should work for fairness, justice and service. the focus of social goals is the maintenance of
peace and harmony, achievement of material wellbeing, enhancing of justice and equality,
enrichment of community life with a sense of shared identity and commitment to rationality,
while the administrative goals must call for certainty, stability, creativity, innovativeness, super-
sensitivity, responsiveness, fairness, openness and transparency in national life.

169
The significant goals of development-administration are as follows:

a). It is concerned with protection of tenancy that means tenant as the landowner.

b). Development-administration is concerned with distribution of surplus land to the poor

farmers and the landless workers.

c). It aims at 'Reservation' in the distribution of surplus land.

d). Poultry farming is another important aim of development-administration.

e). It is concerned with the ceiling on agricultural land.

f). A minimum standard of living.

g). Improvement in the wellbeing of the individual.

h). Sharing of benefits by all.

i). Equitable distribution of income and wealth.

j). A greater degree of income security.

k). Expansion and improvement of health, education, housing, social welfare etc. and,

l). Safeguarding the environment.

Answer s to Self - Assessment Questions (SAQs) for Study Session 3

Rostow identified five stages of development which Europe went through and argue that the
third world countries must go through this process if they want to develop as follows;

i). Tr aditional Society: The society characterized a hierarchical structure and so there is low
vertical as well as social mobility. An historical instance of Rostow’s traditional society can be
founded during the time of Newton.

ii). The Pre-condition for take-off: During this stage the rate of investment are getting higher
and they initiate a dynamic development.

iii). Take-off: This stage is characterized by dynamic economic growth. The main character of
this economic growth is self-sustained growth which requires no exogenous inputs.
170
iv). The Dr ive to matur ity: This is characterized by continual investment by 40 to 60 percent.
Economic and technical progress dominates this stage. New forms of industries neo-technical
industries emerged.

v). The Age of High Mass Consumption: This is the final step of Rostow’s five stage of
development. Here most part of the society lives in prosperity and persons living in this society
are offered both abundant and multiplicity of choices. According to him the west or the North
belongs today in this category

Answer s to Self - Assessment Questions (SAQs) for Study Session 4

SAQ1:

Development administration aims to reduce poverty in the newly independent countries.

SAQ2:

The need to accelerate growth in developing countries necessitated the reform, restructuring and
reorganization of public administration system.

SAQ3:

Development administration implies the execution of programmes and projects designed to bring
about progressive improvement in the material wellbeing of the people; while administration
development involves internal reforms within the public organization structure. However, both
development administration and administration development require organization capacity
building to attain goals and targets. Second, is that they utilize human resources for the
achievement of their assigned tasks. Lastly, administration development facilitates the capability
of development agencies to achieve socio-economic progress in the environment.

Answer s to Self - Assessment Questions (SAQs) for Study Session 5

SAQ1:

171
The major characteristics of the political environment of the third world include the following:
Political instability defined by instability of regimes, constant coups or rapid changes of
government through unconstitutional and violent means.

The propaganda value of democracy in recent times seems to be reversing this tide. Low levels
of political participation manifesting in absence of political representation and mobilization.
Weak political institutionalization typified by of rule of law and rationalization of political
structures and functions. Political interference in administrative duties, and distorted distribution
of projects. Lack of patriotism that result in lack of national identity and the absence of national
unity, and very low calibre of leadership which result in lack of direction both in policies,
programmes and actions of government.

The administrator who finds himself in such a political setting therefore, is a technician whose
techniques are rendered impotent by potent and negative political forces, and indeed so
overwhelming is the political influence on bureaucrats that bureaucracy in the third world has
itself become highly politicized.

Politicization of the civil service per se is not undesirable, only certain aspects of such
politicization exert a negative influence; for instance, when the civil service becomes partisan
and proceeds to reflect such a partisan bias in its activities, then it becomes undesirable. If
politicization on the other hand becomes identifying with the policies and objectives of the
government of the day in an enthusiastic manner, such politicization is desirable.

SAQ2:
The economic environment of development administration exercises major constraints on the
process of development. This is mainly due to the fact that the world economy has largely
become internationalized. Therefore, no economy is insulated from changes within the
international environment. This means that there are uniquely local economic forces which
operate as constraints on economic development and that these exist side by side with economic
forces emanating from within the international environment. The level of economic buoyancy of
a country determine the implementation of developmental goals, also, developmental planning
helps the government of a country to increase its revenue thereby improving its economic base.

SAQ3:

172
The socio-cultural environment of development administration has behaviour as its reference
point. Development in any society is a function of the attitudes exhibited by its members. Factors
such as the need for change or maintenance of status-quo; respect for watch (time
consciousness); work ethics and group dynamics among others affect the pace of development in
any society. If for instance, the people show apathy towards innovation and manifest traits of
avarice and grand corruption in the face of weak or non-existent public accountability
mechanisms which characterize the environment of developing countries, it becomes axiomatic
that these countries cannot be optimistic in terms of development. Hence, development in any
social system is a function of the sweeping character of social transformation which demands
total rather than selective change.

Answer s to Self - Assessment Questions (SAQs) for Study Session 6

SAQ1:

National development planning is an effort to schedule and promote the activities of government
ministries, departments, agencies and public enterprises across all levels of administration.

SAQ2:

SAQ3:

SAQ4:

SAQ5:

Answer s to Self - Assessment Questions (SAQs) for Study Session 7

SAQ1:

173
Development planning is regarded as the strategy for achieving rapid increase in the standard of
living of people and narrowing the gap between the rich and poor.

SAQ2:

SAQ3:

The Second National Development Plan was aimed at national reconstruction, rehabilitation and
reconciliation, as well as, the attainment of a national sense of purpose.

SAQ4:

Answer s to Self - Assessment Questions (SAQs) for Study Session 8

SAQ1:

Planning at the national level is carried out by the Ministry of Budget and National Planning. It
was originally set up by Decree No 12 of 1992 as the National Planning Commission and later
amended by Act 71 of 1993. The core responsibility of the commission is the formulation of
medium term and long term economic and development plans for the nation. The National
Planning Commission is headed by the Minister of National Planning, who is also the Deputy
Chairman of the National Planning Commission. The Chairman of the Commission is the Vice
President.

The National Planning Commission was originally established by Decree No 12 of 1992 and
later amended by Act 71 of 1993. The Commission has the mandate to determine and advise the
Government of the Federation on matters relating to National Development and overall
management of the national economy. The detailed objectives, functions, powers and structure of
the Commission are outlined under Sections 2, 3 and 5 of the Establishment Act.

SAQ2:

The functions of the National Planning Commission are to:

174
 a. To provide policy advice to the President in particular and Nigeria in general on all
spheres of national life;
b. To set national priorities and goals and engender consensus among Government agencies,
as may be contained in guidelines issued by the Commission from time to time;
c. To undertake periodic review and appraisal of the human and material resources
capabilities of Nigeria with a view to advancing their development, efficiency and
effective utilization;
d. To formulate and prepare long-term, medium-term and short-term national development
plans and to co-ordinate such plans at the Federal, State and Local government levels;
e. To monitor projects and progress relating to plan implementation;

SAQ3:

Financial management at the state government level comprises of planning, organizing,

purchase, and the use of government resources, also, public financial management involves the
formulation of public policies to achieve the objectives of the government. State government
financial management suggests a linkage between the aspirations of a community and their
resources as it relates to its present and the future. Therefore, public financial management is
central to government fiscal policy at all levels of governance.

Financial management is central to the success of any government at any level. How funds are
generated and managed remains a concern of the masses. The performance of any government is
dependent on the revenue it generates and how it spends the generated revenues. To ensure
effectiveness, there must be prudence in the management of public funds and management of
public finance involves the generation of revenues, allocation of funds and management of
treasury.

Answer s to Self - Assessment Questions (SAQs) for Study Session 9

SAQ1:

175
Nigeria at independence in 1960 adopted the philosophy of a Welfare State by embarking on the
path of national development.

SAQ2:

The consequences of pervasive corruption in Nigeria are high poverty, unemployment and
inequality in the environment.

SAQ3:

The government’s jurisdiction for development policy making is informed by the provisions of
the Legislative List of Functions in the Constitution.

SAQ4:

Answer s to Self - Assessment Questions (SAQs) for Study Session 10

SAQ1:

Since independence status was attained in 1960, Nigeria had embarked or launched several
National Development plans so as to achieve all round development. Unfortunately, the
development plan was unable to achieve their aims to the fullest. Therefore, the following
challenges have been identified as some of the factors that militated against the full actualization
of the National Development Plans.

The following are some of the challenges of planning and development in Nigeria; lack of
political will, plan distortion, political instability and discontinuity of program, poor or
inadequate feasibility study.

SAQ2:

The states of the Nigerian Federation have since been increased to 19 in 1976, 21 in 1987, 30 in
1991 and to 36 in 1996 and 774 local governments and local councils.

Development planning must be broken down into these three levels of government. For example,
the National Economic Empowerment and Development Strategy (NEEDS) was subdivided to

176
state and local government layers. Development at the state level in Nigeria is hampered by the
dependent on allocation from the federal government, reduced internal revenue, corruption and
maladministration.

The challenges of planning at the state level stems from lack revenues, Nigeria operates a
centralized federalism where the powers of the states and local government are limited, in the
terms of revenues generation. Therefore, the states depend on the federal government for
allocation without which they cannot carry out any developmental projects. Planning is
predicated on how much is available for sharing among the levels of government.

The scenario above made the states dependents and docile, and not willing to expand the
internally generated revenue.

SAQ3:

Planning and development is affected by lack of autonomy of the local government in finance
and administration. In Nigeria, local governments are controlled by the state government; most
of the Local government council Chairmen persons are determined by the state, hence, the state
determines the direction of developmental planning at the local government level.

Also, corruption and embezzlement, the little fund that comes to the local government are often
stolen by the officials of the local government. This affects the developmental planning and
execution.

SAQ4:

Planning is derived from the French word Provoyance means looking ahead. Planning is an
integral part of development administration. Chronologically, it precedes all decision-making and
action. Broadly speaking, a plan is a scheme, a design, or a frame work of programme of action,
work, activities etc. Planning helps in the promotion of economic growth and employment and
social objectives. It is felt that planning makes economic and social development easier by
providing for explicit analysis and evaluation of alternative policies and that it can systematically
resolve competing demands and conflicts.

Answer s to Self - Assessment Questions (SAQs) for Study Session 11

177
SAQ1:

Provision on the Establishment and Composition of Local Gover nments: The section 7(1) of
the 1999 constitution implied that the government of every state is constitutionally empowered to
make law that will provides for the establishment, structure, composition, finance and functions
of local government in their respective states subject to Section 8(6) that required the state
governments to approach the National Assembly for further legislation in order to make local
governments created by them officially listed in the constitution.

Non-Elected Local Gover nment Officials and the Appointment of Caretaker Committees:
The recent practice where the Section 7(1) of the 1999 Constitution is being abuse by some
governments at the state level has become a recurring factor hindering effective public service
delivery at the local governments’ level in Nigeria. This is because, some governments at the
state level deliberately violated Section 7(1) which make case for democratically elected local
government across Nigeria.

State/ Local Gover nments J oint Account System: The provision for state/local governments
joint accounting system in Section 162(6) of 1999 Constitution has hindered the smooth running
of local governments in Nigeria.

Tenure-ship and Succession Cr isis: This is another major factor hindering effective local
government performance in Nigeria. For instance, Decree 36 of 1998 which ushered the conduct
of local government election during military regime provided for 3 year tenure-ship for local
government elected officials across Nigeria.

Local Gover nments Autonomy: The long time expectation of the people at the grassroots level
to see full autonomy being granted to local governments in Nigeria has not come to reality over
the years.

SAQ2:

Constitutional amendment at the state level refers to the processes of state creation which
enlarged the component units in the federation. Multi-ethnic State like Nigeria, the issue minority
constitutes one of the basic problems militating against the development of the country. Nigeria
has three major ethnic groups, The Hausa, Ibo and Yoruba and multiplicity of minor ethnic

178
groups. Since the Amalgamation of the Northern and Southern protectorates till present day there
has been fear of the domination of the minority ethnic groups by their majority counterparts. This
prompted the agitation for creation of states. To allay the fears of the minority group the Sir
Henry Willink Commission was set up in 1957 to investigate the issue of fear of domination of
the minority ethnic groups.

Since the Amalgamation of the Northern and Southern Protectorates till present day there has
been fear of the domination of the minority ethnic groups by their majority counterparts. This
prompted the agitation for creation of states. To allay the fears of the minority group the Sir
Henry Willink Commission was set up in 1957 to investigate the issue of fear of domination of
the minority ethnic groups.

SAQ3:

The fourth schedule of the 1999 Constitution outlines the following functions as the
constitutional responsibilities of local government system in Nigeria.

Planning and Monitor ing the Gover nment Activities: The local government system in Nigeria
was established across all the 36 states and the federal capital territory, Abuja towards setting
overall directions for effective governance at local level through long-term planning and
monitoring the implementations of various government policies and its reactions at the grassroots
level.

For Effective Ser vice Deliver y: the effective service delivery is an important ingredient to the
administration of public affairs. Therefore, the Nigeria’s 1999 Constitution recognizes the
existence of local government for effective service delivery at the grassroots level through
prompt provision of basic and essential needs to the people.

Lawmaking & Enforcement Functions: The 1999 Constitution under Section 7(4) recognizes
the existence of democratic local government administration in Nigeria. However, local
government was empowered to make bye- laws through their respective legislative councils and
those laws are not to be competing with the laws making by higher legislative bodies and they
are also constitutionally empowered to enforce any byelaws made within their localities.

179
Policy Developmental Responsibility: Local council’s mandate also includes the prompt
engagement in economic planning for the sustainable development of their localities with the
state government towards meeting the needs and aspirations of their people at grassroots level.

Policy Advocacy and Advancement: In the case of policy advocacy and advancement, the
grassroots government is responsible for the higher governments’ policies advocacy and
advancement on behalf of their respective council in order to know the acceptability or otherwise
of the policies initiated by the higher authorities.

Answer s to Self - Assessment Questions (SAQs) for Study Session 12

SAQ1:

The social contract theory is of the view that the state is a product of an agreement entered into
by men who originally had no governmental organization – the state of nature. This position was
prompted by Thomas Hobbes, John Locke and Jean Jacque Rousseau. They divided the history
of the world into two; the period before the institution of the state and the period after the state.
In the first period there was no government, no law which could be enforced by sovereign
authority. Men lived in a state of nature, where they were subject to such regulations as nature
will supposed to prescribe. But there was no human authority to formulate these rules precisely
or to enforce them. After some time, they decided to set up government.

SAQ2:

The thrust of the patriarchal theory is that the unit of the primitive society is the family, in which
descent was traced through males and in which the eldest male parent was absolutely supreme.
His power extended to life and death, and was as unqualified over his children and their houses
as over his slaves. The single family break up into more families, which, all held together under
the head of the first family (the chief or the patriarch), became the tribe. An aggregation of tribe
makes the State. The chief exponent of this theory is the Sir Henry Maine (1822-1888).

The Matriarchal theory is distinguished from the patriarchal; this theory holds that the primitive
group had no common male head, and the kinship among them could be traced only through
women.

180
Under such system, it is obvious that as far as there is any recognition of blood relationship at all,
it is through women and not through men. It argues that maternity is a fact while paternity is an
opinion.

The Patriarchy and Matriarchy is criticized because neither of them can lay serious claim as the
oldest form of social organization everywhere. There has been paralleled development, but the
line of the patriarchy is thicker and longer.

SAQ3:

The important factor that helps to bring out the growth and development of the state was the
dawn of political conscious among the people. Political consciousness indicates the recognition
of certain conclusion to be achieved through political organization. At the beginning, there was
no awareness of unity of interest. In course of time, the importance of defending people against
the enemy took both internal and external; maintaining law and order regulation rose upon the
mind of the people. They felt the awareness of the authority to regulate social issues and protect
their life and property. This consciousness and unity paved way for particular organization that is
the state. In this connection we can state that underlying all other elements in state formation
including kinship and religion, is the supreme element - political consciousness.

SAQ4:

The Renaissance, the Reformation and the Industrial revolution were the turning points for the
modern era. These movements made the people unite together on the ground of ethnic, linguistic,
religion and territorial bonds. As a result, the Feudal states began to fall and gave rise to the
modern nation states. Further, there were disputes among the feudal states. General disorder and
confusion everywhere, the use of gun powder, national taxation, and standing army was made
independent upon the feudal nobility and did diminish the political importance of the feudal
states. The general tendency of the reformation teaching was to strengthen the whole of the
monarchy principle in monarchy lands, and that of the aristocracy lands was to strengthen the
absolution of the political sovereign.

Once the objective of the unity of absolution was achieved, the people demanded their rights and
privileges and succeeded. The democratic movement started early in England. Its progress was

181
gradual and peaceful. In France, it was a violent revolution. In other countries, the kings
accepted the popular will, and remained as normal head under the democratic government. The
democratic movement worked so satisfactorily that the democratic national state came to be
regarded as the final stage in the evolution of the state.

SAQ5:

In the modern state, the political sphere and all matters political are separated from other spheres
of life, including religion. Political issues and state administration are handled and carried out by
political and administrative authorities and life is generally not ruled by religious laws, ideals or
the clergy.

The concept of sovereignty is another distinguishing characteristic of the modern state.

Sovereignty is the acknowledgment by external and internal actors that the state possesses the
sole and absolute authority to carry out activities within its own territory. This concept can be
broken down to its two main aspects; the first being internal sovereignty as the right a state has to
rule itself independently and structure it in whichever way it wants to.

The second aspect refers to the external aspect of sovereignty where states are first and foremost
equal to other states and thus also have a right to non-interfere in their internal affairs by other
states. This basically means that a state has the right to do whatever it wants as long as it is
within the bounds of its territory.

Constitutionalism is one of the key distinctive elements of the modern state. Modern states have
to govern according to the stipulations of a constitution, which is a set of regulations, practices
and statutes. Governments are obliged to conduct their affairs in concurrence with the
constitution. This is in contrast to earlier state formations where rule and governance was often
by decree or custom and laws were not prescribed. This has seen a legal system in the modern
state which operates using formulated legal codes which include legal courts, contracts and the
concept of private property.

Answer s to Self - Assessment Questions (SAQs) for Study Session 13

SAQ1.

182
SAQ2:

SAQ3:

SAQ4:

TRUE

SAQ5:

Answer s to Self - Assessment Questions (SAQs) for Study Session 14

SAQ1:

Agriculture, including farming, forestry, fisheries and livestock, is the main source of
employment and income in rural areas, where the majority of the world's poor and hungry people
live. Agricultural cooperatives play an important role in supporting men and women small
agricultural producers and marginalized groups by creating sustainable rural employment.
Producer cooperatives offer men and women smallholders market opportunities, and provide
them with services such as better training in natural resource management, and better access to
information, technologies, innovations and extension services.

Cooperatives have played a major role in the agricultural industries of all developed countries
and many developing countries for well over a century. They have been important in farm
supply, providing fertilizer and other inputs, and product marketing including transport, storage
and processing.

The history of cooperation is directly related with human being, because, human being
traditionally cooperate each other in day to day life to overcome their immediate problems and
also to share their feelings. Representative body for cooperatives, the International Cooperative
Alliance (ICA) define cooperative in 1995, as an autonomous association of persons united
voluntarily to meet their common economic, social and cultural needs and aspirations through a

183
jointly owned and democratically controlled enterprise. United States Agency for International
Development (1985) explained that cooperative forms of social and economic organizations exist
throughout the world, engendered and molded by often quite dissimilar social, economic and
political traditions. No single definition of "cooperative" would be adequate to describe the
diverse activities that have been labeled "cooperative." But it is possible to identify certain
common characteristics of cooperative organizations.

Agriculture, including farming, forestry, fisheries and livestock, is the main source of
employment and income in rural areas, where the majority of the world's poor and hungry people
live. Agricultural cooperatives play an important role in supporting men and women small
agricultural producers and marginalized groups by creating sustainable rural employment.
Producer cooperatives offer men and women smallholders market opportunities, and provide
them with services such as better training in natural resource management, and better access to
information, technologies, innovations and extension services.

Cooperatives have played a major role in the agricultural industries of all developed countries
and many developing countries for well over a century. They have been important in farm
supply, providing fertilizer and other inputs, and product marketing including transport, storage
and processing.

Different cooperatives are playing vital role around the globe. For example, cooperatives control
about 80% of dairy production, while in California most of the specialty crop producers are
organized in cooperatives. In Colombia, the National Federation of Coffee Growers provides
production and marketing services to 500,000 coffee growers. It contributes to the National
Coffee Fund, which finances research and extension for coffee-growing communities.

SAQ2:

In the international business literature, different types of multinational companies have been
conceptualized, which emphasizes their heterogeneous and changing character. It is considered
that the multinational organizations as a ‘heterarchy’, possessing several decision centers that
need to be coordinated. The author emphasizes that the organizational configuration of the MNC
influences strategic decisions and the interpretation of the environment. The hierarchical

184
structure requires a strong integration of different units to preserve the unity of the organization,
but also a certain disintegration of other activities to avoid a high degree of centralization.

Transnational corporations reinforce the centralization/decentralization dialectic. The authors

describe a system of internal differentiation which assigns different roles and responsibilities to
foreign subsidiaries. Based on a strong interdependence between subsidiaries, this management
system can increase learning capacities and improve the MNC’s competitiveness on international
markets.

Meta-national company, whose competitive advantage is built through the knowledge acquired
by foreign subsidiaries. The authors consider that, in a knowledge economy, companies innovate
thanks to their learning capacity in different parts of the world. The meta-national company has
three key competences: it is the first to identify new knowledge developed in different parts of
the world; it is able to innovate by using this knowledge before its competitors; it creates value
through innovation by an efficient production and marketing process at the global level.

SAQ3:

Multinational corporations are companies which seek to operate strategically on a global scale. A
multinational corporation is a company, firm or enterprise that operates worldwide with its
headquarters in a metropolitan or developed country.

The principal objective of multinational corporations is to secure the least costly production of
goods for world markets. This goal may be achieved through acquiring the most efficient
locations for production facilities or obtaining taxation concession from host governments. This
objective confirms the views of the Marxist who see the MNCs as progressive agents of
capitalism. As a result of this capitalist motif, the MNCs try in every way possible to cut down
expenses and maximize profit. As stated, the MNCs usually have their head office in one country
with a cluster of subsidiaries in other countries and maintain a very high standard management
outfit. This managerial expertise gives rise to maximum efficiency, that is, maximum result at
minimum cost.

At the same time, they are often also accused of destructive activities such as damaging the
environment, complicity in human rights abuses, and involvement in corruption. Whether these

185
accusations are fair or not, many MNCs are now attempting to manage these complex set of
issues in the host countries by implementing corporate social responsibility (CSR) strategies
because such issues may risk the success of their operations. It is not in the nature of the MNCs
to solve social or economic problems of the host countries. Luis Echeveria, believed that there is
need for transnational corporations to respect the social and cultural fabric, as well as the
development priorities of the countries in which they are investing. This attitude of MNCs
should encourage all those who are clamoring for the involvement of MNCs in activities that are
not attuned to or in line with the activity of maximizing profits. They should begin by way of
redefining and re-stating the meaning and nature of the MNCs to have the well-being of the host
nation at heart.

SAQ4:

Contingency theory highlights the capacity of the MNC to adapt to the complexity and to
changes that take place in the environment. The MNC can exist in a long-term perspective if it
develops the ability to adapt the organization and control systems to changes in the environment.
The role of the headquarters is to analyze the environment and to shape the organizational
structure according to different local contexts. The emphasis is put on values that are shared by
the members of the organization.

According to business network theory, which is based on network theory and resource
dependence theory, the MNC can be viewed as a network. This perspective highlights the
importance of business networks (suppliers, distributors, customers, governments, etc.)
developed by local subsidiaries, which can be considered as strategic resources. The power is
dispersed throughout the company, and each unit of the group can thus influence strategic
decisions through its local business network.

Answer s to Self - Assessment Questions (SAQs) for Study Session 15

SAQ1:

Public enterprise means an agency of a predominantly industrial, commercial or financial

character, entirely or partly owned and substantially controlled by the Federal, State or Local
Government. Public corporation as corporate bodies established by statute to own, manage and

186
operate utilities and industries in the public interest. As compared with private corporations, they
have no stimulus to efficiency.
Public enterprise is an organization that is set up as a corporate body and as part of the
governmental apparatus for entrepreneurial or entrepreneur-like objectives. The United Nations
defined a public enterprise as an incorporated or large unincorporated enterprise in which public
authorities hold a majority of the shares and/or can exercise control over management decisions.
Public sector enterprises consist of government- owned enterprises whether at local, state or
federal levels. The public sector as an economic agent is acting on behalf of everybody, with all
its economic resources commonly owned, and all its activities carried on, on behalf of
everybody. Public enterprises as statutory corporations that are established by specific statutes
that contain provisions relating to finance and personnel among other things.

Public enterprise is viewed as an artificial person who is authorized by law to carry on particular
activities and functions. It is described as a corporate body created by the legislature with defined
powers and functions and independently having a clear-cut jurisdiction over a specified area or
over a particular type of commercial activity. Public enterprise is a government owned enterprise
created to render essential service to the public at a reduced price which if left for private
individual will be expensive for the citizenry.

SAQ2:

There are lots of benefits of privatization which have been identified by scholars. For instance,
summarized the benefits of privatization as follows:
a. Privatization and concentration of wealth in a few hands do not have to go together, on the
Contrary, an even spread of ownership can be achieved with sound planning of privatization;
b. Governments all over the world are not suited to run certain enterprises efficiently.
c. African nations under the economic slump can no more bear the inefficiencies of public
enterprises.
d. Privatization will improve the efficiencies of the enterprises.
e. Privatization is taking place in many countries of the world, including the United State,
Britain and Germany.

187
f. Government can still control enterprises without necessarily owing them. For example, the
Central Bank of Nigeria controls the commercial banks through prescribing reserve ratio,
stipulated credit guidelines.
g. Revenue can be raised for government through better corporate taxation instead of corporate
ownership and through the proceeds from the sale of public enterprises.
h. The problems facing most public enterprises can be traced to the fact that they are government
owned and this is why they are used for political and other patronages; the managements are not
given a free hand to manage and the organizations do not care to collect their debts. Privatization
will remove political interference and administrative red tape from public enterprises.
i. Privatization will abolish unproductive use of scare national resources, eliminate fraud and
embezzlement and infuse financial discipline into these organizations.
j. Tight controls by government which might result if these is no privatization is not necessarily
in the best interest of the country. For instance, if the government was in complete control of
commercial banks in Nigeria, the Bank should have embarked on unnecessary retrenchment of
workers, besides watertight control of economy may degenerate into totalitarianism.
k. If public enterprises are privatized, they will generate greater wealth and provide more
employment because their efficiency and productivity level will be raised.
Privatization is occasioned because the inefficiency in public enterprise, privatization brings
business model and practices to the public enterprise which improves its performance.

SAQ3:

Privatization leaned on the ideology of liberalism which claims that government has no business
regulating the economy not to talk of owing business itself. That this function should be left into
market forces. This ideology of liberalism or neoliberal thought come as a result of change or
new discourse in ideologies concerning the fundamental role of the state and the relative merits
of the private and public sectary. The simple assumption is that as state cannot be as efficient as a
private entity in the production of the same output.
Liberalism came in the mid-20th Century as a result of campaign against state chartered
monopoly by the dominant business groups in America. In response to this new form of
monopoly in the mid-20th century, a movement arose to fight over what it considered big
business strangulation of free competition championed by new generation capitalist.

188
Key to this ideology of liberalism particularly its new form is the heavy reliance on market
forces, which it advocates claim to be the most efficient mechanism for allocation of scarce
resources. This ideology of liberalism was transported to the 3rd worlds through the United
Nations agencies especially the IMF and World Bank.
If there has been an ideological debate over privatization, it has certainly been won by those
favoring privatization, judging by the policy outcome. However, it is not so much that the debate
was won but that the counter debate was either not made or made weakly. In any case pragmatic
rather than ideological arguments seem to have held sway. Even in Britain, where the ideological
debate was supposed to be most fervent, the most cogent reason for continuing privatization
programme was pragmatic one of raising revenue rather than changing the shape of society.

The debate has now been won by those in favor of privatization. This has happened even though
the economic arguments for privatization are less than overwhelming, there is no incontrovertible
evidence supporting the superior efficiency of private sector provision (although there is a
similar lack of evidence of any public sector superiority). Hence, the ideological arguments
remain unconvincing. The goal of improving economic efficiency is rarely shared by the major
stakeholders and in the end, the benefits of privatization may come in subtle and indirect ways.
For instance, where privatization is widely believed to make a difference, it may prove a self-
fulfilling prophecy. The expectation of government agencies, public, labor and managers may be
altered by the changes in ownership of the enterprises concerned. Those changes in expectations
may prove more important in the long run that the measurable economic consequences.
Once an organization is in government hands, there is bound to be questions about its
accountability. In theory all parts of government are accountable to the political leadership and
finally to the people. The question of accountability was once the major concern in public
administration studies of public enterprise and statutory authorities. Concern about ownership
came much later. Although the main question now is certainly that of privatization, the concern
with accountability remains important.

SAQ4:

Development administration was thought to be all that was needed to overcome tribal authority
and superstition and accelerate the rate of development. However, it was rather patronizing that it
was a form of social engineering imported from the West and embodying faith in the application

189
of national scientific principles and the efficacy of the Keynesian Welfare economics. In its early
days at least, it reflected the naive optimism and ethnocentricity of modernization theory, that
there were straight forward technical solutions for under development and the West possessed

It was true that motivations of the practitioners of development administration were high but
there were problems that development administration was supposed to be based on professional
oriented, technically competent, political and ideologically natural bureaucratic machinery. The
ostensible output was modernization- induced and predictable social change following Western
perceptions preceded by institution building and modernization of the indigenous bureaucratic
machinery to undertake development tasks. But what was missing from the expected picture-
perfect imitation in the Third World was the necessary set of conditions for bringing about a
number of social, economic, cultural and political changes. These included an expanding
economic base, a tax base, professionally trained manpower, political legitimacy, cultural
secularization, and strong political super structure capable of governing. Development
administration is interesting for public management as a topic in its own right and also as the
area of government to change dramatically over the1980s and1990s. It serves as a test case for
what is likely to occur in the public sector as a whole.

In the final analysis it seems difficult to see any prospects future for development administration
in any advanced or developing country. The reduction of the public enterprise sector in 1980s
and 1990s says something about the public sector in general. The fact that government entities
may have lasted a long time is no guarantee of their continued existence. The shrinking of
government through privatization occurs through a process of economic theory feeding into
policy-making. The privatization policy may be a general test case for the practice of
development administration but it is one which shows that care must be taken in developing clear
objectives and with the implantation being crucial for desirable results.

190