Abstract Five 2014-2015

GLOBAL

DEVELOPMENT STUDIES

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Volume Seven Winter 2014-Spring 2015 Numbers 3-4.

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A TALE OF TWO GIANTS: OIL AND ECONOMIC DEVELOPMENT IN NIGERIA AND INDONESIA

(1960-1999)

Akinyinka Akinyoade

African Studies Center

Leiden, The Netherlands

David Enweremadu

Department of Political Science

University of Ibadan

Ibadan, Nigeria

Published Online: March 15, 2017

ABSTRACT

This study compares the development trajectories of Indonesia and Nigeria during the period 1966-1999, and identifies the key factors influencing rapid socio-economic development and economic stagnation in both countries. An assessment is made of the extent to which political instability and economic policies adopted by governments in both countries accounted for major socio-economic transformation. The main question that guided the research is, “What other factors, apart from economic policies and political instability are relevant in explaining the divergent development outcomes observed between Nigeria and Indonesia in the last four decades?” The study goes beyond the three already identified pre-conditions for economic growth and development (macro-economic stability, economic freedom and pro-poor/rural spending) by examining the possible impact of other key variables such as population control, foreign aid, and investment that have been evoked by other researchers but often in a very limited way. This study explores the potential impact of the latter three factors using the Indonesian experience as a case study, assessing what went wrong in Nigeria’s economic development planning and whether the Indonesian model of economic growth and development can be replicated in Nigeria, under what specific conditions.