Nigeria; What Lottery Did for the Developed World
BYLINE: Vanguard
ATLANTIC market place constitutes the fulcrum of the world economy. Economic activities in the market place usually have impact, directly or otherwise, on the wellbeing of other economies in different parts of the world. Africa is not an exception. In fact, the economic trend in the developed world dictates the pace of economic development process in different parts of the world. Obviously, what happens to America and the 25-nation European Union (EU) economically, matters to several other countries.
Aware of this, José Manuel Barroso, representative of the EU at the April 2007 Business Forum, organised in New York, United States of America, noted that the trans-atlantic market place is still the economic engine of the world. Collectively, the European Union and the US register more than $3 trillion of commercial sales annually. Bilateral trade between the EU and the US accounts for 40 percent of all global trade. Fourteen million jobs on both sides of the Atlantic are dependent on these links.
The combined Transatlantic Gross Domestic Product (GDP) accounts for an astonishing 60 percent of the total for the world. Speaking on: "Strengthening the Transatlantic Economy", Barroso disclosed that, last year, countries in the region enjoyed growth of three percent - the highest in six years.
This year, according to the February European Commission forecast, growth should hit 2.7 percent - higher than in the US.Labour productivity growth in the Euro area is also up, averaging one percent in 2006, compared to an annual average rate of 0.7 percent for the previous decade.Of course, a lot of this performance is cyclical in nature. But, it has certainly been boosted by efforts to put their house in order, as the developed countries face up to the challenges posed by increasing competition from abroad, and demographic challenges at home.
This economic and structural reform programme - known in Europe as the Lisbon Strategy for Growth and Jobs - has seen the EU and its Member States pull together at all levels to cut red tape, unleash the energies of business and entrepreneurs, make labour markets more flexible and secure, invest in research and innovation and place welfare systems on a firmer financial footing. All this activity is focused squarely on two related goals: sustainable growth and the creation of more and better jobs. And it is delivering results. The EU unemployment rate fell to 7.6 percent by the end of 2006, and we expect more than sven million new jobs will be created up to 2008.
One may be right to say the countries in the region have been greatly aided by the success of the Euro, Europe's single currency, which obviously has contributed to price stability, shielded them from currency turmoil, fostered intra-EU trade and pushed down inflation. It has also contributed to greater fiscal discipline. In 2006, the Euro area budget deficit fell to 1.6 percent of GDP, down from a high of 5.5 percent in 1993. In summary, Europe is not only returning to healthy growth, but is increasingly assuming its responsibilities by contributing to the correction of global imbalances.
Europe accounts for almost 70 percent of total US inward investment stock, and owns 75 percent of all foreign-owned assets. European affiliates employ nearly 300,000 people in New York alone. Although invaluable contribution of the single currency to economic vibrancy in the region can not be overstated, there are other boosters working simultaneously to position the transatlantic economy ahead of others in Asia, Middle East, Far East, not even to talk of Africa. Among them is lottery, a veritable means of revenue generation and socio-economic development. Obviously, the perception of the people towards lottery in that part of the world is positive, to say the least. It is, indeed, the reverse of the situation in most parts of Africa, where the people's interest in lottery is currently on the low ebbs. But, lottery has a place of recognition whenever the feat attained by the developed world, in terms of socio-economic development forms the subject of discussion.
One would have expected countries in the sub-Saharan Africa to be self- sufficient in food production, considering the fact that most countries there are agrarian; but the reverse is the case. Several hectares of arable land lie fallow, as several farmers do not have access to the tools necessary for mechanized farming. However, such shortcomings are effectively taken care of in the developed world. Lottery may really not play a direct role in boosting agricultural produce; it supports other sectors like education, health and sports. Consequently, this frees more funding to other spheres of life.
The aim of the EU Common Agricultural Policy (CAP) is to provide farmers with a reasonable standard of living, to furnish consumers with quality food at fair prices and to preserve EU rural heritage and environment. Fundamental reforms of the CAP, begun in1992 with the latest round in 2003, have radically transformed and reduced the levels of support offered to EU farmers at a time when the number of EU farms has steadily increased with EU enlargement. Subsidies on quantities produced have largely been replaced by payments to farmers to guarantee that they receive a decent income and are linked to compliance with broader objectives.
These include environmental standards, food safety and the health of animals and plants. Farmers are also expected to keep their land in good condition in order to preserve traditional rural landscapes, birds and other wildlife. One may wonder whether lottery should be allowed to have direct contribution to socio-economic life of people in this country, considering the background of our societies.
The answer to this can be found in developed countries where the game has contributed positively to economic development. Specially, the California Lottery was created to generate supplemental funding for public schools in 1984. For every dollar spent on lottery products, at least, 34 cents is returned to the classroom materials such as textbooks, while the remainder is spent in other areas.
In 2005 and 2006 fiscal year, revenues from the lottery generated $154 per pupil, or $1.28 billion total and supported over 8.3 million students in California's public schools. These funds were in addition to the $10,325 per pupil, or $62 billion provided by California's general fund. Lottery funds account for approximately 1.5 percent of all education funding - providing school districts the flexibility to keep valuable programmes and services for students.
Mr. Ayeni, a management consultant, writes from Lagos.