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Economic Development in Nigeria: A Demographic Perspective Committee on African Studies Harvard Africa Seminar,  April 13, 2010    David E. Bloom and Salal Humair Department of Global Health and Population, HSPH
 
Nigeria’s economy has stagnated: No growth in income per capita Source: World Development Indicators 2008
Indonesia and Pakistan have seen economic growth Source: World Development Indicators 2008
Nigeria’s economy  compared with world regions Source: World Development Indicators 2008
Comparing economic growth rates average annual growth rate of GDP/capita (PPP), 1980 - 2006 Source: World Development Indicators 2008
Nigeria’s fertility rate has started to fall Source: UN, World Population Prospects, 2008
The infant mortality rate has fallen,  but not steadily Source: UN, World Population Prospects, 2008
Life expectancy has risen,  but not steadily Source: UN, World Population Prospects, 2008
Crude birth and death rates are falling Source: UN, World Population Prospects, 2008
Population growth has been rapid Source: UN, World Population Prospects, 2008
The ratio of working-age to non-working-age people has been pretty steady Source: UN, World Population Prospects, 2008
Changing Age Structure, 1950-2010: A 3-dimensional view Source: UN, World Population Prospects 2008
Average annual growth rate of  GDP per capita, 1975-2005 Source: World Development Indicators 2008
Changing age structure, 1960-2005 Source: UN, World Population Prospects 2008
The demographic transition Population   growth rate time Death rate Birth rate
Population age structure is a robust and powerful predictor of economic growth  ,[object Object],One third (about 2 percentage points) of the growth of income per capita in East Asia during 1965-90 is attributable to the independent influence of changes in age structure.   Income
Nigeria’s population is set to soar Source: UN, World Population Prospects, 2008
The fertility rate is expected to continue falling Source: UN, World Population Prospects, 2008
The infant mortality rate is projected to continue falling Source: UN, World Population Prospects, 2008
Life expectancy will continue to rise Source: UN, World Population Prospects, 2008
Crude birth and death rates will continue to fall Source: UN, World Population Prospects, 2008
Population growth rate will decline substantially Source: UN, World Population Prospects, 2008
The ratio of working-age to non-working-age people is set to increase dramatically Source: UN, World Population Prospects, 2008
Growth of the working-age to non-working-age ratio, 1960-2050 ( under 3 UN fertility scenarios) Source: UN, World Population Prospects, 2008
Comparing the growth rates of the working-age and non-working-age population Source: UN, World Population Prospects, 2008
Changing Age Structure, 1950-2050: A longer 3-dimensional view of Nigeria’s trajectory Source: UN, World Population Prospects, 2008
Source: UN, World Population Prospects, 2008 1950
Source: UN, World Population Prospects, 2008 1960
Source: UN, World Population Prospects, 2008 1970
Source: UN, World Population Prospects, 2008 1980
Source: UN, World Population Prospects, 2008 1990
Source: UN, World Population Prospects, 2008 2000
Source: UN, World Population Prospects, 2008 2010
Source: UN, World Population Prospects, 2008 2020
Source: UN, World Population Prospects, 2008 2030
Source: UN, World Population Prospects, 2008 2040
Source: UN, World Population Prospects, 2008 2050
Changing Age Structure, 1960-2050: Nigeria compared with East Asia Source: UN, World Population Prospects, 2008
Changing Age Structure, 1960-2050: Nigeria compared with Indonesia and Pakistan Source: UN, World Population Prospects, 2008
Reaping the demographic dividend is not automatic, and may not be permanent ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
The elderly will make up a larger share of the population Source: UN, World Population Prospects, 2008
Will demographic heterogeneity induce economic inequality and political instability?
Ratio, working-age to non-working-age population, by state Source: Population and Housing Census, National Population Commission, Nigeria, 1991 and 2006
Take-home messages so far ,[object Object],[object Object],[object Object]
Estimates of the potential size and impact of Nigeria’s demographic dividend ,[object Object],[object Object],[object Object],Source: Bloom et al. 2010. Nigeria’s demographic dividend. Background paper for the NGN project
Central questions ,[object Object],[object Object],[object Object]
One major challenge in estimating the demographic dividend Source: Holly Reed, 2010. Capitalizing on Nigeria’s Demographic Dividend. Background paper for the NGN project ,[object Object],[object Object],[object Object],[object Object]
Demographic data is also a big political issue Source: http://news.bbc.co.uk/2/hi/africa/4512240.stm
How much demographic dividend can Nigeria expect? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Source: Bloom et al. 2010. Nigeria’s demographic dividend. Background paper for the NGN project
Potential impact of demographic dividend on per capita income Source: Bloom et al. 2010. Nigeria’s demographic dividend. Background paper for the NGN project
Potential impact on per capita income with institutional and health improvements  Source: Source: Bloom et al. 2010. Nigeria’s demographic dividend. Background paper for the NGN project Year GDPpC "business-as-usual" GDPpC with DD & added LE GDPpC improved IQ &  LE 2010 $2,070  $2,070  $2,070  2015 $2,521  $2,653  $2,664  2020 $3,070  $3,435  $3,461  2025 $3,738  $4,486  $4,535  2030 $4,553  $5,882  $5,966
Potential impact of the demographic dividend on poverty Source: Source: Bloom et al. 2010. Nigeria’s demographic dividend. Background paper for the NGN project Year # lifted out of poverty with DD and added LE  # lifted out of poverty with improved IQ & LE 2010 -  -      2020 5.8 million 5.8 million     2030 31.8 million 34 million
What are the challenges and opportunities in collecting the demographic dividend? ,[object Object],[object Object],[object Object]
Nigeria will need lots of jobs Source: Author calculations. Year WA pop Unempl-oyment Jobs needed Between years Jobs to be added 2010 85,525,401  20% 52,358,719      2015 97,731,223  15% 63,570,579  2010-15 11,211,860  2020 111,088,850  10% 76,509,768  2015-20 12,939,189  2025 125,325,513  8% 88,233,036  2020-25 11,723,268  2030 140,036,212  7% 99,661,452  2025-30 11,428,415
But jobs will also need to be productive: Nigeria’s economic lifecycle - individual Source: Mason et al. 2010. Population and economic progress in Nigeria. Background paper for the NGN project
Education will be key in making jobs productive: economic lifecycle - aggregate Source: Mason et al. 2010. Population and economic progress in Nigeria. Background paper for the NGN project Needs of children Labor surplus
And results can be achieved with little: Nigeria’s current education expenditures Source: Mason et al. 2010. Population and economic progress in Nigeria. Background paper for the NGN project
Nigeria’s education and health spending Source: Mason et al. 2010. Population and economic progress in Nigeria. Background paper for the NGN project.   Actual ($)  % of spending Education, Public 142  7.33 Education, Private 922  47.63       Health, public 39  2.01 Health, private 833  43.04       Total 1,936  100 Total Public 181  9.33 Total Private 1,755  90.67 Per capita spending (2004 $s)  
Nigeria’s human capital investment compared to other countries Source:  Nigeria: The Next Generation Task Force secretariat, 2010.
Low health spending reflected in low level of maternal health Source: Nigeria 2008 demographic and health  survey: key findings.
Low health spending reflected in high levels of child mortality Source: Nigeria 2008 demographic and health  survey: key findings.
Low health spending reflected in low level of children vaccination coverage Source: Nigeria 2008 demographic and health  survey: key findings.
Low health spending reflected in high level of unmet need for family planning Source: Unpublished background memo for the NGN project.
Unmet need in the context of current fertility Source: Nigeria 2008 demographic and health  survey: key findings.
Nigeria’s untapped human capital: the diaspora Source: US Department of Homeland Security, Office of Immigration Statistics, 2008 Yearbook of Immigration Statistics. Number of persons obtaining legal permanent residents who were born in Nigeria, fiscal years 1961-2008
The Nigerian US diaspora is well-educated Source: Nigerian-born Population in the United States, unpublished background memo, NGN project
And the diaspora is a significant resource Source: The World Bank. Migration remittances factbook 2008. Updated Nigeria data from personal communication.
Summary of challenges and opportunities in collecting the demographic dividend ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Other challenges and opportunities we have not touched on ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Take home messages ,[object Object],[object Object],[object Object]
Reaping the demographic dividend: cautionary points regarding Nigeria ,[object Object],[object Object],[object Object],[object Object],[object Object]
Backup slides
Estimation results Source: Bloom et al. 2010. Nigeria’s demographic dividend. Background paper for the NGN project

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Demography and Economic Growth in Nigeria

  • 1. Economic Development in Nigeria: A Demographic Perspective Committee on African Studies Harvard Africa Seminar, April 13, 2010 David E. Bloom and Salal Humair Department of Global Health and Population, HSPH
  • 2.  
  • 3. Nigeria’s economy has stagnated: No growth in income per capita Source: World Development Indicators 2008
  • 4. Indonesia and Pakistan have seen economic growth Source: World Development Indicators 2008
  • 5. Nigeria’s economy compared with world regions Source: World Development Indicators 2008
  • 6. Comparing economic growth rates average annual growth rate of GDP/capita (PPP), 1980 - 2006 Source: World Development Indicators 2008
  • 7. Nigeria’s fertility rate has started to fall Source: UN, World Population Prospects, 2008
  • 8. The infant mortality rate has fallen, but not steadily Source: UN, World Population Prospects, 2008
  • 9. Life expectancy has risen, but not steadily Source: UN, World Population Prospects, 2008
  • 10. Crude birth and death rates are falling Source: UN, World Population Prospects, 2008
  • 11. Population growth has been rapid Source: UN, World Population Prospects, 2008
  • 12. The ratio of working-age to non-working-age people has been pretty steady Source: UN, World Population Prospects, 2008
  • 13. Changing Age Structure, 1950-2010: A 3-dimensional view Source: UN, World Population Prospects 2008
  • 14. Average annual growth rate of GDP per capita, 1975-2005 Source: World Development Indicators 2008
  • 15. Changing age structure, 1960-2005 Source: UN, World Population Prospects 2008
  • 16. The demographic transition Population growth rate time Death rate Birth rate
  • 17.
  • 18. Nigeria’s population is set to soar Source: UN, World Population Prospects, 2008
  • 19. The fertility rate is expected to continue falling Source: UN, World Population Prospects, 2008
  • 20. The infant mortality rate is projected to continue falling Source: UN, World Population Prospects, 2008
  • 21. Life expectancy will continue to rise Source: UN, World Population Prospects, 2008
  • 22. Crude birth and death rates will continue to fall Source: UN, World Population Prospects, 2008
  • 23. Population growth rate will decline substantially Source: UN, World Population Prospects, 2008
  • 24. The ratio of working-age to non-working-age people is set to increase dramatically Source: UN, World Population Prospects, 2008
  • 25. Growth of the working-age to non-working-age ratio, 1960-2050 ( under 3 UN fertility scenarios) Source: UN, World Population Prospects, 2008
  • 26. Comparing the growth rates of the working-age and non-working-age population Source: UN, World Population Prospects, 2008
  • 27. Changing Age Structure, 1950-2050: A longer 3-dimensional view of Nigeria’s trajectory Source: UN, World Population Prospects, 2008
  • 28. Source: UN, World Population Prospects, 2008 1950
  • 29. Source: UN, World Population Prospects, 2008 1960
  • 30. Source: UN, World Population Prospects, 2008 1970
  • 31. Source: UN, World Population Prospects, 2008 1980
  • 32. Source: UN, World Population Prospects, 2008 1990
  • 33. Source: UN, World Population Prospects, 2008 2000
  • 34. Source: UN, World Population Prospects, 2008 2010
  • 35. Source: UN, World Population Prospects, 2008 2020
  • 36. Source: UN, World Population Prospects, 2008 2030
  • 37. Source: UN, World Population Prospects, 2008 2040
  • 38. Source: UN, World Population Prospects, 2008 2050
  • 39. Changing Age Structure, 1960-2050: Nigeria compared with East Asia Source: UN, World Population Prospects, 2008
  • 40. Changing Age Structure, 1960-2050: Nigeria compared with Indonesia and Pakistan Source: UN, World Population Prospects, 2008
  • 41.
  • 42. The elderly will make up a larger share of the population Source: UN, World Population Prospects, 2008
  • 43. Will demographic heterogeneity induce economic inequality and political instability?
  • 44. Ratio, working-age to non-working-age population, by state Source: Population and Housing Census, National Population Commission, Nigeria, 1991 and 2006
  • 45.
  • 46.
  • 47.
  • 48.
  • 49. Demographic data is also a big political issue Source: http://news.bbc.co.uk/2/hi/africa/4512240.stm
  • 50.
  • 51. Potential impact of demographic dividend on per capita income Source: Bloom et al. 2010. Nigeria’s demographic dividend. Background paper for the NGN project
  • 52. Potential impact on per capita income with institutional and health improvements Source: Source: Bloom et al. 2010. Nigeria’s demographic dividend. Background paper for the NGN project Year GDPpC "business-as-usual" GDPpC with DD & added LE GDPpC improved IQ & LE 2010 $2,070 $2,070 $2,070 2015 $2,521 $2,653 $2,664 2020 $3,070 $3,435 $3,461 2025 $3,738 $4,486 $4,535 2030 $4,553 $5,882 $5,966
  • 53. Potential impact of the demographic dividend on poverty Source: Source: Bloom et al. 2010. Nigeria’s demographic dividend. Background paper for the NGN project Year # lifted out of poverty with DD and added LE # lifted out of poverty with improved IQ & LE 2010 - -     2020 5.8 million 5.8 million     2030 31.8 million 34 million
  • 54.
  • 55. Nigeria will need lots of jobs Source: Author calculations. Year WA pop Unempl-oyment Jobs needed Between years Jobs to be added 2010 85,525,401 20% 52,358,719     2015 97,731,223 15% 63,570,579 2010-15 11,211,860 2020 111,088,850 10% 76,509,768 2015-20 12,939,189 2025 125,325,513 8% 88,233,036 2020-25 11,723,268 2030 140,036,212 7% 99,661,452 2025-30 11,428,415
  • 56. But jobs will also need to be productive: Nigeria’s economic lifecycle - individual Source: Mason et al. 2010. Population and economic progress in Nigeria. Background paper for the NGN project
  • 57. Education will be key in making jobs productive: economic lifecycle - aggregate Source: Mason et al. 2010. Population and economic progress in Nigeria. Background paper for the NGN project Needs of children Labor surplus
  • 58. And results can be achieved with little: Nigeria’s current education expenditures Source: Mason et al. 2010. Population and economic progress in Nigeria. Background paper for the NGN project
  • 59. Nigeria’s education and health spending Source: Mason et al. 2010. Population and economic progress in Nigeria. Background paper for the NGN project.   Actual ($) % of spending Education, Public 142 7.33 Education, Private 922 47.63       Health, public 39 2.01 Health, private 833 43.04       Total 1,936 100 Total Public 181 9.33 Total Private 1,755 90.67 Per capita spending (2004 $s)  
  • 60. Nigeria’s human capital investment compared to other countries Source: Nigeria: The Next Generation Task Force secretariat, 2010.
  • 61. Low health spending reflected in low level of maternal health Source: Nigeria 2008 demographic and health survey: key findings.
  • 62. Low health spending reflected in high levels of child mortality Source: Nigeria 2008 demographic and health survey: key findings.
  • 63. Low health spending reflected in low level of children vaccination coverage Source: Nigeria 2008 demographic and health survey: key findings.
  • 64. Low health spending reflected in high level of unmet need for family planning Source: Unpublished background memo for the NGN project.
  • 65. Unmet need in the context of current fertility Source: Nigeria 2008 demographic and health survey: key findings.
  • 66. Nigeria’s untapped human capital: the diaspora Source: US Department of Homeland Security, Office of Immigration Statistics, 2008 Yearbook of Immigration Statistics. Number of persons obtaining legal permanent residents who were born in Nigeria, fiscal years 1961-2008
  • 67. The Nigerian US diaspora is well-educated Source: Nigerian-born Population in the United States, unpublished background memo, NGN project
  • 68. And the diaspora is a significant resource Source: The World Bank. Migration remittances factbook 2008. Updated Nigeria data from personal communication.
  • 69.
  • 70.
  • 71.
  • 72.
  • 74. Estimation results Source: Bloom et al. 2010. Nigeria’s demographic dividend. Background paper for the NGN project