A CRITICAL ANALYSIS OF THE DISTINCTION BETWEEN ECONOMIC DEVELOPMENT AND COMMUNITY DEVELOPMENT IN MY COMMUNITY – THE REALITIES OF PENSION REFORM IN NIGERIA
Abstract
Over the years the management of pension scheme in Nigeria has been inundated by multiple and diverse problems arising from which retirement became dreaded by workers especially in the public service. The failures of pension schemes in the country have been attributed to poor pension fund administration, outright corruption; embezzlement of pension fund; inadequate build-up of funds and poor supervision. There have been several reviews of pension schemes by the federal government which have also caused implementation problems. In 2004, Nigeria established a funded system based upon personal accounts. The purpose of this paper is to analyse the distinction between economic development and community development as it relates to pension reforms in Nigeria; how the reforms have affected the economy and the community/citizenry at large.
A country’s workforce can be regarded as a community on its own with members’ i.e., the workers coming together to take collective action and generate solutions to common problems in this case addressing the plight of pensioners who have served their country or worked for an organisation.
DEFINITIONS
ECONOMIC DEVELOPMENT
Economic development maybe defined as the sustained, combined actions of policy makers and communities that promote the standard of living and economic health of a specific area or community. Economic development can also be referred to as the quantitative and qualitative changes in the economy. Such actions may involve multiple areas including the development of human capital, critical infrastructure, environmental sustainability, social inclusion, health, safety, literacy, and other initiatives. Economic development differs from economic growth. Whereas economic development is a policy intervention endeavour with aims of economic and social well-being of people, economic growth is a phenomenon of market productivity and rise in GDP. According to Amartya Sen (1983) economic growth is one
Over the years the management of pension scheme in Nigeria has been inundated by multiple and diverse problems arising from which retirement became dreaded by workers especially in the public service. The failures of pension schemes in the country have been attributed to poor pension fund administration, outright corruption; embezzlement of pension fund; inadequate build-up of funds and poor supervision. There have been several reviews of pension schemes by the federal government which have also caused implementation problems. In 2004, Nigeria established a funded system based upon personal accounts. The purpose of this paper is to analyse the distinction between economic development and community development as it relates to pension reforms in Nigeria; how the reforms have affected the economy and the community/citizenry at large.
A country’s workforce can be regarded as a community on its own with members’ i.e., the workers coming together to take collective action and generate solutions to common problems in this case addressing the plight of pensioners who have served their country or worked for an organisation.
DEFINITIONS
ECONOMIC DEVELOPMENT
Economic development maybe defined as the sustained, combined actions of policy makers and communities that promote the standard of living and economic health of a specific area or community. Economic development can also be referred to as the quantitative and qualitative changes in the economy. Such actions may involve multiple areas including the development of human capital, critical infrastructure, environmental sustainability, social inclusion, health, safety, literacy, and other initiatives. Economic development differs from economic growth. Whereas economic development is a policy intervention endeavour with aims of economic and social well-being of people, economic growth is a phenomenon of market productivity and rise in GDP. According to Amartya Sen (1983) economic growth is one