The economic crisis has its basis 2007 and to date, January 2013 the effects are still being felt. The economic cliffhanger is an economic reality and it would appear, from the news, that we are about to fall off. Unfortunately this state of affairs continues and affects more and more countries in a negative fashion and it sadly continues affecting more and more countries. One of the worst European financial cliff hanger situations is Spain. In 2011 in this country budget deficit was 8.9 % PKP and in addition Spain has one of the highest levels of unemployment in Europe. Spanish banks are indebted to the World Bank (WB) and the International Monetary Fund (IMF) and according to research approximately 70% of the Spanish young and graduate population, live with their parents. Low employment prospects seem to be the order of the Spanish future. These factors have impacted the negative Spanish moods – people are afraid of the future.
Spain being a member of the EU can call on help for financial assistance and as such agreements have been negotiated on the same basis as provided in October 2011 to Greece by amongst others Finland. The guarantees cover 40 per cent Finnish participation in the European Spanish Banks Rescue Plan, which amounts to €769.92m. Notwithstanding the foreboding insolvency position Spain is in an exceptionally good position solely because it is a member of the EU. The EU Member States are obligated to cooperate and bail out Spain and other European countries which have financial deficit problems solely based on preserving the EU status quo.
Nigeria is of course a totally different scenario worthy of consideration. This country currently in has a large financial crisis despite being oil rich – whereas Spain has no natural reserves. The recent parliamentary inquiry into the deficit pointed the finger of blame on the dramatic events of the last few years, insurgence, uprising, wars, etc., etc.
Among the main culprits of the crisis are mentioned: the Nigerian Commission for Securities and Exchange Commission (SEC), Nigerian Stock Exchange (NSE), the Central Bank of Nigeria and the standard commercial banks. No blame seemed to be found in the way the trade and industry allowed western rich countries to exploit Nigeria’s oil reserves and its people. Nearly 50 years after the establishment of the Nigerian Stock Exchange, the Nigerian capital market stood at a precipice from which almost fell. The Nigerian stock market capitalization declined from 12.6 billion naira in March 2008 to 3.99 trillion naira in February 2009. Where has the money gone?
One of the reasons for Africa’s crisis is the result of defeat socio-economic policies pursued in recent decades on one side by the African elite, on the other by elite U.S. and Western Europe. Africa is in fact a wealth store of engineering, economic, social and ecological and holds a hoard of natural resources which are being diminished on a vast scale on a daily basis. The devastating effect of which is now being felt revealed in all its fullness to the detriment of its nation states.
Nigeria deeply felt the effects of crisis. The country is plagued by frequent strikes. It has problems with unemployment health service and education. Nigerian people do not have an access to such a level of life which the European people have and that is not surprising. They have a level of life that supports the world’s richest woman, an oil magnate(ess) Folorunsho Alakija. Another problem is a hunger, Nigeria could provisionally sustain itself and its population but problem still arises and Nigeria asks the west for aid….where are the economists and the mathematicians. What is going on??? The western international media often show this mammoth problem on its TV screens and portrays Nigeria as the ‘poor citizen of the continent of Africa’. The problem exists and the means to solve it is right in front of the eyes of the Nigerians……2013 must be a better year.
The sad thing is that unfortunately, Nigeria cannot count on financial support from the African Union as Greece and Spain has done. Nigeria has to rely on itself and it can if the Nigerian government allows it to and creates the means to ensure that Nigeria flourishes.
This is a urgent call for Nigerians to put Nigeria on the economic map in 2013 where it should be….for all the rightRelated articles
- Nigeria may join global economic powers in 2030 – US (vanguardngr.com)