Data response question (1)
As the 1970s evolved, so Nigeria was seen as one of the great hopes of the developing world. It had oil and a population that was being educated to international standards. As a consequence, bankers liked lending to such a prosperous nation. Then the oil price started to fall and lenders wanted their money back. Africa's largest country became riddled with debt, poverty and corruption. Now, despite being beset with many, there are at least some encouraging signs.
Key data - Nigeria
|Life expectancy (years)||50.1||46.8||46.1||48|
|Infant mortality rate (per 1,000 live births)||111.2||110.0||110.0||86|
|Under 5 mortality rate (per 1,000 children)||...||184.0||183.0||138|
|GDP growth (annual %)||2.7||3.8||3.9||6|
|Exports of goods and services (% of GDP)||45.0||52.3||48.3||36|
|Imports of goods and services (% of GDP)||37.8||41.1||49.0||27|
|Total debt service (% of exports of goods and services)||7.8||7.9||12.0||1|
|Short-term debt outstanding (current US$)||5.5 billion||1.1 billion||1.7 billion|
Oil prices Crude spot price US$
Explain using supply and demand diagrams why in the last two decades of the 20th century the long term price of commodities such as oil fell.
Explain how falling commodity prices can impede economic development.
Using the data above, comment on the economic development process in Nigeria over the period 1997 to 2009.
Examine the factors that might have caused the fall in the economic potential of a country as rich as Nigeria?
From the early 2000s the price of oil has risen again. Using appropriate diagrams, evaluate the impact of an oil price increase on the economy of Nigeria.