A BOUND TEST ANALYSIS OF THE EFFECTS OF GLOBAL ECONOMIC SHOCKS ON NIGERIAN ECONOMY: The Role of Fiscal and Monetary Policies (1960-2011)

This study examines the effectiveness of both fiscal and monetary policies in mitigating external shocks on Nigerian economy. In addition, it determines which of the macroeconomic policy was more effective in mitigating the possible adverse effects of external shocks; The study uses annual data from 1960 to 2011 and data are sourced from Statistical Bulletin of CBN. Also, Mundel-Flemming theoretical framework is adopted to model the interaction between domestic and international macroeconomic policy variables. The time series properties of the variables are examined before the Autoregressive Distributed Lag (ARDL) analytical technique is adopted to estimate the model. Beta coefficient is also generated to determine the effectiveness of each of the policies. The result showed that external shocks had hindered the effectiveness of domestic policy overtime. The result also shows that monetary policy is more effective than the fiscal policy but a coordination of both fiscal and monetary would give a better result.

Decent Work and Poverty Reduction Strategies

This article examines how the International Labour Organization’s (ILO) Decent Work agenda integration into poverty reduction strategies has provided the wherewithal for closer cooperation with the International Monetary Fund and the World Bank. It begins by discussing multilateral approaches to poverty reduction and identifying criticisms of structural adjustment programmes and the policy prescriptions of the Washington Consensus as key prompts for closer cooperation with the ILO. The article examines the development of the ILO and identifies the role that successive Director Generals have played in repositioning it as a key player in multilateral approaches to poverty reduction. The complex nature of cooperation between the ILO and the International Financial Institutions (IFIs) is acknowledged and discussed. While the Washington Consensus has not been abandoned, analytical shifts within the IFIs, including greater acknowledgment of the role labour market institutions can make in sustainable growth and development, have prompted closer integration between employment and social policies and international macroeconomic policy strategies. At the heart of this engagement lies the ILO’s Decent Work Agenda and the demand for greater policy coherence among multilateral organizations in poverty reduction. The integration of Decent Work into IFI Poverty Reduction Strategy Papers (PRSPs) is identified as a key platform for these activities. The article describes the ILO strategy for integrating Decent Work into the PRSP process and examines the criticisms this strategy has attracted. In highlighting the importance of worker voice in the national delivery of poverty reduction strategies, the article concludes by promoting the need for representative bodies to have the necessary organization and skills to engage with and implement poverty reduction strategies. For Decent Work and poverty reduction to succeed, this need is of both a national and international concern. Such challenges loom large in future engagement between the ILO and the IFIs.