Visiting Nigeria: Tragic Poverty, Pervasive Insecurity Extraordinary Potential

ABUJA, NIGERIA—Like so many developing states, Nigeria showcases poverty while exhibiting potential.  People are entrepreneurial but the state is exploitative.  Wealth is made but too often stolen.  Evidence of security—which really means insecurity—is everywhere.

I traveled with a journalist group on a business tour of Nigeria.  We were met by representatives of the organizer, along with a driver and two national policemen armed with AK-47s.

All of my hotels around the country had metal detectors.  High walls and gates manned by armed security personnel. 

Nevertheless, Abuja, as the seat of government, is relatively safe.  Former governor Orji Uzor Kalu, a successful businessman considering a presidential run, complained that “without a police escort you can’t move” in much of the country:  “You can move in Abuja, maybe some parts of Lagos, but you cannot move elsewhere.”  Security checkpoints on major roads were common as we traveled outside of major cities.

As I explain in my latest article on the American Spectator online:  “The Niger Delta, host to manifold energy and maritime operations, is particularly risky.  Residents resent northern domination and perceive that, as one businessman put it, money being extracted from the ground and water isn’t going to the local people.  These attitudes have prompted kidnappings of foreigners and attacks on facilities and ships.” 

Being careful isn’t enough.  Nor is hiring protective personnel.  Company officials privately acknowledge more directly buying protection, spreading cash throughout local communities. 

The smart outsider makes sure he has a well-armed friend or two.  A sign on the door leading from the pool to the hotel proclaimed:  “All Escorts Terminate Here.  Fire Arms Are Prohibited In This Facility.” 

Nigeria has had its share of conflict—four decades ago the central government brutally suppressed the attempted secession of the eastern region as the state of Biafra, resulting in anywhere between one and three million dead.  More recently ruthless military dictators ruled.

Today the greatest problem may be internal divisions within the population of about 175 million divided into roughly 500 ethnic groups.  The country is almost evenly divided between Christian and Muslim, leading to complicated political bargaining.  Recently the terrorist group Boko Haram has been slaughtering Christians and moderate Muslims.

The country already suffers from the usual Third World maladies of the over-politicized state.  Bureaucracy is pervasive and corruption is rife.  One expatriate worker observed:  “Nigeria is not a country.  It is an opportunity.”

These economic disincentives are greatly exacerbated by problems of insecurity.  A potential investor or trader cannot move freely.  Expatriate employees much watch their backs.  And the costs roll down to indigenous peoples, who lose economic opportunities.

Kalu, who is considering a presidential run, emphasized the need for deregulation and privatization and professed his admiration of Ronald Reagan.  He also highlighted the problems of corruption and energy for his oil-rich nation, where bribes are expected and power outages are constant.

But he suggested that the lack of personal safety is even more basic.  During a recent interview in Abuja he noted that “internal security is crucial.”  Without security, he said, “I don’t know how we can develop.  We need internal security so citizens and non-citizens can move more freely.”

Nigeria’s security problems underscore the country’s extraordinary unmet potential.  It has Africa’s largest population and Nigeria’s GDP will soon surpass that of South Africa. Nigeria’s energy reserves are an envy of the continent.

Moreover, the Nigerian people exhibit both hard work and entrepreneurship.  People are every where on the move, hawking products.  What Nigerians lack, one businessman complained to me, was an “enabling environment” from the government.

Which should include security, perhaps the most foundational government responsibility.

Nigeria has many advantages lacking in its neighbors, and other developing states.  However, so much of its potential is yet untapped.  It is well past time for Nigeria’s leaders to put their people’s interests first.

Climate Change: We TOLd You So.

Global Science Report is a feature from the Center for the Study of Science, where we highlight one or two important new items in the scientific literature or the popular media. For broader and more technical perspectives, consult our monthly “Current Wisdom.”


We complain so constantly about the pessimistic view that the government takes on climate change that perhaps some of you are thinking alright already, we get it.  Of course, the concept that governments exaggerate threats in order for the populace to clamor to be led to safety is Mencken at his pithiest, and such sentiment  is not in particularly short supply here at Cato!

If  you think that we are out on a pessimistic limb, check out this story making headlines out of Japan, from the U.N.’s Intergovernmental Panel on Climate Change meeting to hash out the second part of their latest climate change assessment report.  The first part, on the science of climate change, was released last fall (it was horrible). The second part deals with the impacts of climate change (isn’t going to be much better). The news is that one of the lead authors on the economics chapter, Richard Tol, Professor of Economics at the University of Sussex, has quit the IPCC over their irrational negativity.

Here is how a Reuters article headlined “UN author says draft climate report alarmist, pulls out of team” captured Tol’s thoughts:

Tol said the IPCC emphasised the risks of climate change far more than the opportunities to adapt. A Reuters count shows the final draft has 139 mentions of “risk” and 8 of “opportunity”.

Tol said farmers, for example, could grow new crops if the climate in their region became hotter, wetter or drier. “They will adapt. Farmers are not stupid,” he said.

He said the report played down possible economic benefits of low levels of warming. Less cold winters may mean fewer deaths among the elderly, and crops may grow better in some regions.

“It is pretty damn obvious that there are positive impacts of climate change, even though we are not always allowed to talk about them,” he said. But he said temperatures were set to rise to levels this century that would be damaging overall.

Tol has developed an economic model that finds that modest climate change will prove economically positive. However, towards that latter part of this century, temperatures in his model are projected to rise to such a degree that that resulting negative consequences eventually overwhelm the positive one.  Thus the final sentence in the passage above.

However, the climate projections that are incorporated in Tol’s economic model are likely wrong—they predict too much warming from future carbon dioxide emissions. When those climate model projections are brought more in line with the current best science, the positive economic benefits from Tol’s model likely extend far beyond the end of the 21st century.

The bottom line is that people adapt to climate change and so long as it is relatively modest—and there is growing evidence that it will be—the human condition will almost certainly be no worse off and probably even better.

Enough with the pessimistic outlook!  It is high time to celebrate the progress we are making, in the face of, or even in part because of, the earth’s changing climate.

Can Incentives Improve Performance of Public School Teachers?

A fundamental problem for most public schools is that teacher compensation is minimally related to performance, relying instead on years of service and credentials. So poor teachers face minimal incentive to improve or leave.

In a new study, Thomas Dee (Stanford) and James Wyckoff (Virginia) suggest this failure to employ incentives has substantial costs. Their analysis examines IMPACT, a

teacher-evaluation system introduced in the District of Columbia Public Schools by then-Chancellor Michelle Rhee. IMPACT implemented uniquely high-powered incentives linked to multiple measures of teacher performance.

Dee and Wyckoff

compare the retention and performance outcomes among low-performing teachers whose ratings placed them near the threshold that implied a strong dismissal threat [as well as] … outcomes among high-performing teachers whose rating placed them near a threshold that implied an unusually large financial incentive. …

[Their] … results indicate that dismissal threats increased the voluntary attrition of low-performing teachers by 11 percentage points (i.e., more than 50 percent) and improved the performance of [low-performing] teachers who remained.

The financial incentives also improved performance by high-performing teachers.  

These results are not surprising; as economists are fond of saying, incentives matter!  

But failure to use incentives is one reason why public schools are a bad way to subsidize education, setting aside whether any subsidy is desirable. 

Bureaucracy, Boondoggles, and Bad Behavior

In catching up on news about the federal government today, I noticed that articles fit into three categories: bureaucracy, boondoggles, and bad behavior. On any given day, it seems, the Washington Post and other outlets have new tales of BB&BB to report. No wonder most Americans want to cut federal spending.

Let’s look at the latest on BB&BB:

Regarding bureaucracy, you can’t find a better illustration that David Fahrenthold’s article in the Washington Post last Sunday. He describes an underground cavern in Pennsylvania where 600 government workers process federal pension paperwork with the use of 28,000 old-fashioned file cabinets. The paper-based process works the same way that it did four decades ago, and it takes just as long. Efforts to computerize it have failed over and over.

Regarding boondoggles, the cost of a new D.C. building for the Consumer Financial Protection Bureau has tripled to $145 million, reports the Washington Examiner. Meanwhile, a huge new D.C. headquarters for the Department of Homeland Security (DHS) is overbudget by $1 billion. When President George W. Bush created DHS in 2002, he promised that it would “improve efficiency without growing government” while cutting out “duplicative and redundant activities that drain critical homeland security resources.”

Also this week, a House committee learned that numerous Veterans Affairs’ building projects across the country are overbudget by hundreds of millions of dollars. It appears that Edwards’ Law of Government Cost Overruns is as immutable as Murphy’s Law.

Regarding bad behavior in the federal government, it’s never ending. The Air Force found out that dozens of its officers at a nuclear base have been cheating on proficiency tests and breaking other rules. And this week the Secret Service reaffirmed its reputation as the Animal House of police forces when an agent in the Netherlands for a presidential visit was found passed-out drunk in a hotel hallway.

If anything can go wrong in government, it will go wrong—and we’re all paying for it.

More on cost overruns here. Thanks to Nick and Pierre-Guy for help.

If People Are Like Polar Bears, We’ll Be Fine

Global Science Report is a feature from the Center for the Study of Science, where we highlight one or two important new items in the scientific literature or the popular media. For broader and more technical perspectives, consult our monthly “Current Wisdom.”

 

The United Nations’ Intergovernmental Panel on Climate Change (IPCC) is meeting in Japan this week to finalize the second part of its latest compendium on climate change.

The first part, the Working Group I report, focused on the physical science of climate change.  The main findings of that report, released last fall, have been widely panned for not telling the truth about how the latest science is stacking up in support of modest rather than alarming climate change.

The second part, making the news this week, is from the IPCC’s Working Group II and focuses on the effects of climate change.

In an interesting piece in a blog hosted by the United Kingdom’s The Telegraph, Andrew Lilico reports that if leaked drafts are to be trusted, the new report will mark a “formal moving on of the debate from the past, futile focus upon “mitigation” to a new debate about resilience and adaptation.”

We can only wonder what took them so long to realize this—something that we have been saying from virtually day one of this whole global warming thing.

That is not to say that the new IPCC report won’t proclaim that a whole lot of bad things are going to happen as a result of climate change. It most assuredly will say that. But, as we last reported, much of that concern is overblown hype.

Here is another example:

Slovakia’s Strongman Heading for a Defeat?

A presidential election in Slovakia is usually a dull affair. The head of state plays a largely ceremonial role and, since 1993, the post has been occupied by fairly pedestrian, aging figures whose footprint on either domestic politics or on Slovakia’s reputation abroad has been negligible. 

Nevertheless, the stakes are higher in the second round of this year’s presidential election that will take place on Saturday. The leading candidate is the current prime minister, Robert Fico, whose party, Smer, has enjoyed a comfortable majority in the Slovak Parliament since the election in 2012. Fico, who has led Smer since its birth in 1999, served one term as prime minister between 2006 and 2010 and has traditionally enjoyed significant public support. A former member of the Communist Party, he once said that he “had not noticed” the Velvet Revolution of 1989, insinuating that free markets and an open political system have brought little good for ordinary people.

While presenting himself as a social democrat, Fico has successfully courted Slovak nationalists. For example, he has been a vocal opponent of recognizing Kosovo’s independence, for fears that the Hungarian-majority areas of southern Slovakia could follow the Kosovar example. While such concerns are baseless, as Slovak Hungarians display very little interest in secessionism, the rhetoric was successful in attracting Slovak voters that had previously supported fringe nationalist parties.

Fico’s cabinets have adopted several controversial policies, including the 2008 press law, which enabled politicians and companies to file successful lawsuits against newspapers. That has resulted in grossly disproportionate sanctions against Slovak media. One Slovak weekly was recently ordered to print a 54-page apology to a former member of parliament. In 2009, the weekly published an article about the parliamentarian’s company that allegedly received large payments from the European Union’s structural funds. Another weekly is currently being sued over another piece of investigative journalism. The €20 million in damages sought exceed, by an order of magnitude, the earnings of the magazine.

According to some, the presidency is an attractive exit option for Fico, whose two years in government have not produced the results that his electoral base hoped for. The country’s chronically high unemployment, especially among young people, shows no signs of receding, and many of the measures adopted by the government—including the repeal of the flat tax or the re-regulation of labor markets—have done little to foster economic growth and sound public finances.

The Most Wonderful Video You’ll See Today

The most wonderful video you’ll see today:

Watch as a deaf woman, Joanne Milne, is overwhelmed by hearing for the first time after having her cochlear implants switched on. This is just another way in which modern technology improves lives of the less fortunate. For more on technological and medical breakthroughs, follow us on Twitter.

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