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28 - Vanguard. MONDAY, OCTOBER

1,2012

FinancialVanguard

Business & Economy

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adopted inflation targeting and flellble exchange rates. lor example, and their fiscaJ and monetary policies are .now more 'countercyclical' than in the past-lhal is, they stimulate the economy when it is weak. and rein it in when it 15 overheating ."

BRIEFS African, g~ obal leaders partner to drive agricult~rilll

growN! in Africa A. p~~o\

l'(~ds of state.

~(en ,

pnvale sector representflliv'¥i. the interne· tional comnn.."it'[ and farmers gathered lat t!t~ l.tr1can Green ReVOIUli~Forum (AGRF) in Atushato enuNcoIlCI'eteaclions tor ansr~r;ning Africa's agrieult roll liector. AGRF 20121Sth globalplaUormlor the promtLton of ,be signifi. cant privar Set.'L lrlnvestment and pollet 5Uppo>rt needed to increase grim.! ;utal productivity an lncOtT e growth for the . agriC"llturaJ sedor As bos (If the forum, H .E Jakaya ho ~ele. President 01 p UnHed Republic ofTanz ill sair to forum at-

-From left : Dr Joe Odumodu, Di.reclor·GeneraJ. S'ondard OrgCJJtisation of Nigeria, repre.senling Dr Segun Aganga. Han Miru.sler of nude and Inve.stment; Dr ObaJoJu Ojo, NaUonal Chairman. Nigerian A.s$xioUon of Indu.strial Phannodm and Dr. Nelson Uwaga. chairman of Ute occasion 01 the NIgerian A&3ociaUon of Indu.strlal PharmacistS 15th annual national conference held in l.ag~ on Friday. Photo by Lamidl BamJdele

Emerging, developing economies now more resilient

tendees 0 I Abiol's promising

future; -We ale poised to succeed ~ our qJest for eradicating bunger and poverty in Africa through ' ransforming agricuJture" With the right policy mil.. aPllrlpriate interventions bein;l taken by Alrican bovenunenls, the continued BUPp'lrt of donors , and robml pnr :iClpation of private se.."1or - both local and foreign·, tra.nsfol malion of agricultur~ in /! frica is an aduevabk undertakutg."

Nasa~aW21 State govt, Fmmlts N30", ~o I'ice production OY. Nas govemm N30 . . of rice in ra slaled he receI bassador ichi Sho

G

roaru \1-Makura of raw,," fitate said the 'ot tl j committed II to .eproduction be 5t tel. AI-Makutbis !' L Lafia when the 8taJlese Amto NI ena. Mr Ryw~ paid him a ill Ie reiterated un~ s determinaand the scope of

I\1pJI l~.onin!-he

,ols"

m.uuslration has pro '.5 million as count 1ft co lribution towards lh ~d 'loon and capacity b diu for farmers aimed at bnPI ling agricultural p lIctiO in the state." AI-Ma ura 5 id that N30 million WdS co mitted to the conslrudjion a t installation of mod~n ric~ mills in the state. The gov~ .nor said the project wb em Irked upon in collabor~on ' th the FederalGovemment md the Japanese Inlematio 1al CorporationAgency (JIC:::A).

he researchers found that these economies have built up more room to maneuver, thanks to lower inflation and better fiscal and external positions than in the past . "Setter policies and greater policy space account for three-tifths of the increased duration of in these econo· mies' expansIOns." SaId Abiad. "andless~uentshocks accounts for the remainder." But the report also cautions against complacency. "'lbere are significant risks to the outlook for Europe and the United States, ~ said Guajardo. "II these nsks materialize, emerging and developing economies will likely end up 'recoupUng' with advanced economies, much as lbeydid during the recent global crisis." Even in the absence of eIternal shocks, he noLed , homegrown shocks could pull down growth further in some key emerging economies . Th gllard against such risks, the researchers say these economies will need to rebuild theu bulfers, to ensure that they have adequate policy space. "In response to the global downturn. policy space was appropriately used-many countries increased spending and lowered interest rates to support activity," Ahiad said.

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ANY emerging and developing economies did well over the past decade and through. the global financial CriSlS. Analysis in the IMF's latest World Economtc Outlook (WED) suggests this resilience IS likely to continue. It SaId that opti.mists have pointed to improved policymaklng m these economies, a.nd to their increased "policy space" room to respond to shocks witbout undermining sustainability. Skeptics note that these economies' recent good performance has been supported by factors that are prone to reversal such as strong capital inflows, rapid credit growth and high com· modity prices. The IMF sludy suggests some of the optimism is war· ranted. It studied economic exparuHons and downturns in more than 100 emerging and developing economies over the past 60 years. The researchen! found that the resilience or emerging and developing economies is not a recent development, but the result of sleady gains in performance over the past two decades. These economies are now spending more time in expansion. and their downturns and recoveries have be· come shallower and shorter. In fact. the past decade was the first time that emerging and developing economies spent more time in expansion. and had shallower downturns, than advanced econo· mies. This was true not just for emerging markets, but for low-income countries as well. The authors cautioned, however. that these economies are Dot immune to shocks, either external or domestic.

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"Among external shocks, recessions in advanced economies and 'sudden stops' in capital inOows have the most pronounced effects," said Jaime Guajardo, one of the chapter's authors . "These shocks double the likelihood that expansions in emerging and developing economies will come to an end . The effect of domesuc .hocks is just as .trong, U not strongercredit booms mue it twice as likely that an expansion be-comes a downturn by the 101lowing ye~ and banking cri&e$ make it three times as like-

ly." So if shocks can easily de· rail expansions in emerging and developing economies, wbat accounts for their improved performance? Part of the improvement is because some of these shocks are less common now than in past decades, the researchers found . But the bulk of the improve-ment is due to better policies "Many emerglDg and devel· oping economies have become better at pollcy· making," said Abdul Ahiad, who headed the research team . "More of them have

Jigawa farmers seek food aid OME farmers in Jigawa have appealed to the Fed· eral Government to a5lIisl them with food items to check: impending shortages caused by the destruction of f&.rm lands by flood . The New.s Agency of Nigeria (NAN) re· caJ.Is that theJigawa Government had declared that more than 400,000 farmlands and 360, 000 houses were destroyed in 18 out of the 27 10calgovemment areas. Across section of the farmers, who spoke to NAN in Kiyawa and Jahun local government areas, said they lost all their produce to ~ooding . Malam Muhammadu Naga· ji. a maize fann~ said he lost four hectares of maize, millet andsorghwn to the natural disaste!:. Nagaji said the damage caused by the Dood had exposed the farmers to the danger of hunger as they had nothing lett to eaL He said that he had cultivated more than 40

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bags of maize and millet and could not harvest his farms dueto the ravaging nood. "1be farm produce were wasted by the ravaging Oood. l have noth· ing left." Nagaji said. Another farmer, Ja.milu lsa, said that the flood had exposed them to hunger. as most families bad 00 food to eat. Lsa. who described the Hood as the worst in the last 30 yean, added that urgent measures were necessary to save the displaced penons from famine. "We do not have food to eat and our farms have been de-stroyed. .. he llaid, and urged the state and federal governments to assist them. Commenting on the situation. A1haji Dahiru Mada.ld.. the Chairman,Kiyawa Local Government Council, said that five persons were killed and thousands of hectares of farmlands were lost to flood in tbe area. Madalri said that the Dood also destroyed houses

and cut 0lflhe47 -km Kiyawa· Birnin-Kudu road . He said tbat the council had spent N3.6 million on the provision of rellef malerials for distribu· tion to the displaced persons, to cushion the effects of the flood . oPfhe nood caused co· lossal damages. We are faang dangers of possible food shortage." Madaki said. Also commllmting, Alhaji Abdullahi Harbo , the Chairman of Jahun Local Government Area. said the council bad procured five canoes to rescue families in about 20 villages, wluch were cut olf by Hood. Harbo said the council had also constructed embank· ments and dislributed 30,000 bags of sand to check Dooding in the area. He listed Harbo-Sabuwa, Harbo -Tsohuwa, Gemu. Kawuri, Doguwa. Hayin Gada, Gidan-Ganji, Gunka. Doro and Darai as some of the areas ravaged by flood .


VANGUARD, 01 OCTOBER, 2012