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CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
The World Bank (2000) World Development Report defines poverty as an unacceptable deprivation in human well-being that can comprise both physiological and social deprivation. Physiological deprivation involves the non-fulfillment of basic material or biological needs, including inadequate nutrition, health, education and shelter. A person is considered poor if he or she in unable to secure the goods and services to meet these basic material needs. Social deprivation widens the concept of deprivation to include risk, vulnerability, lack of autonomy, powerlessness and lack of self-respect.
Poverty is a worldwide-recognized problem that afflicts more than one billion people (Adeyemo and Alayande, 2001:1). It is said to exist when one or more persons fall short of a level of economic welfare deemed to constitute a reasonable minimum, either in some absolute sense or by the standard of a specific society (Lipton and Ravallion, 1995).
Poverty according to 2004 National Planning Commission’s reports on National Economic Empowerment and Development Strategy (NEEDS) is “one of the most difficult challenges facing Nigeria and her people, and equally the greatest obstacle to the pursuit of sustainable socio-economic growth”. Poverty situation in Nigeria since independence does not seem to have shown any remarkable positive change or appreciable reduction.
The state of poverty in the country is still high and increasing rather than decreasing. This position was corroborated by data and information from the studies/survey conducted by the Federal Office of Statistics (FOS) and National Bureau of Statistics (NBS) from 1980 to 1996 and 2003/2004 respectively, as shown in table 1 below:
Table 1: Incidence of Poverty in Nigeria, selected years (1980 to 2004)
Poverty Level (%)
Population in Poverty (million) Estimated Total Population (million)
Total Core Total Core
1980 27.2 6.2 17.7 4.0 65.0
1985 46.3 12.1 34.7 9.1 75.0
1992 42.7 13.9 39.2 12.7 91.5
1996 65.6 29.3 67.1 30.0 102.5
2004 54.4 22.0 68.7 27.8 126.3
Source: FOS (1999) Poverty Profile for Nigeria 1980-1996, Lagos and NBS (2005) Poverty Profile for Nigeria, Abuja.
As seen in Table 2.1, the incidence of poverty rose sharply between 1980 and 1985, declined between 1985 and 1992 and increased again between 1992 and 1996, only to decrease again between 1996 and 2004. The total poor rose from 27.2 percent in 1980 to 65.6 percent in 1996, an increase of 141.2 percent. Over the same period, percentage of population in core poor category rose from 6.2 percent to 29.3 percent, an increase of 380 percent. However, between 1996 and 2004, total poor declined by 17.1 percent to 54.4 percent, while the core poor declined by 24.9 percent to 22.0 percent. It was also observed that despite the decline in the proportion of the population in poverty between 1996 and 2004, in absolute terms the populating in poverty rose from 67.1 million to 68.7 million, while those in core poverty declined by 2.2 million. However, we noted that World Bank (2001) estimated that 70.2 percent of Nigerians live on less than one dollar per day; hence the fact that over 50 percent of total population are poor should be of concern to our policymakers.
Poverty in Nigeria has many dimensions and manifestations, some of these include joblessness, economic dependence, and lack of freedom, inability to provide the basic needs of life for self and family, lack of access to land and credit and inability to save or own assets. Lack of food is the most critical dimension of poverty, reflected in the popular saying that “when hunger is excised from poverty, the burden of poverty is light” (NPC, 2004). The above scenario must have informed the past successive governments’ efforts in tackling and fighting poverty by conceptualizing and initiating various programmes to alleviate poverty.
Between 1962 and 1985 the country witnessed four different National Development Plans (NDPs) which were fashioned towards improving the economy, empowering the masses and developing the country. Almost all the National Development Plans directly or indirectly incorporated a mechanism that addressed poverty and how to tackle its menace. These plans, therefore laid the foundation for successive governments’ efforts in creating poverty related and poverty induced alleviation cum reduction programmes (see appendices IV, V and VI).
Despite the plethora of poverty alleviation programmes, which past governments had initiated and implemented, the data and information available in the literature show that the programmes yielded little or no significant results in fighting poverty. The United Nations’ Human Poverty Index (HPI) in 1999 placed Nigeria amongst the 25 poorest nations in the World, and in 2008, ten years after that report, things have not changed for the better (see appendices VII & VIII). Indeed, it was the state and extent of poverty incidence among Nigerians that necessitated the urgent and immediate introduction of National Poverty Eradication Programme (NAPEP) by Chief Olusegun Obasanjo’s administration following a critical assessment of poverty situation in the country after assumption of office in 1999.
Poverty reduction, no doubt, is an integral part of development strategy in almost all the nations of the world, Nigeria inclusive. Seer (1972, 21-36), says that:
“any discussion on development must address three fundamental questions, which among others include what has been happening to poverty, what has been happening to unemployment, and what has been happening to inequality? If all these three have declined from high levels, then there has been a period of development in the country concerned, but if one or more of these central problems have been growing worse, then it would be strange to call the result development even if per capita income doubled”.
Nigeria is a large country with an estimated total area of 923,768 square kilometers and a population of about 140.8 million. The country is blessed with vegetation that ranges from forest in the South to savannah in the North. Apart from being endowed with agricultural and water resources, Nigeria is the 6th largest producer of crude oil and is potentially viable for natural gas and a variety of solid minerals. Despite these vast natural, human and material resources that abound, the country has not achieved much in development in terms of poverty reduction.
It is obvious from the above discussion that the failure of poverty reduction efforts in Nigeria is not as a result of the paucity of resources and programmes, but the ineffectiveness of the strategies and approaches to poverty policy formulation on one hand, and programme implementation on the other hand. All the reviewed poverty alleviation programmes of the past successive governments in this country show that the Nigerian government and, by extension, its poverty alleviation policy makers may not have recognized and applied marketing as a potent private and public sector management tool. This researcher believes that this non-application of marketing concept and strategies in poverty alleviation programmes formulation and execution could be contributing to these past failures in this crucial area of national and sustainable human development in Nigeria.
Marketing no doubt, has since been recognized as a veritable, effective and efficient tool for development. Marketing’s impact on economic development especially in bringing about social, attitudinal and behavioural changes has not been sufficiently explored in Nigeria, as has been done in some developed and developing nations of the world. Although marketing as a catalyst for development is a concept long accepted, the often intangible benefits of marketing have been overshadowed by the more visible results coming from manufacturing, construction and agriculture (Wood and Vitel, 1986). Public policymakers and officials in developing countries rarely ever see marketing as an agent or catalyst in development (Bartels, 1976).
Marketing as seen from available literature can indeed influence the society and move the system towards a desirable state. Kinsey (1982) observed that marketing influences development and is itself influenced by development. Drucker, (1958) pointed out that marketing influences development by creating standards and developing managers and entrepreneurs. Other researchers hold the view that the active transference of marketing techniques and know-how to managers in developing countries will stimulate development (Cundiff and Hilger, 1979; Sentell,
1982).
Development here connotes an attack on deprivation, and the meeting of basic human needs such as adequate nutrition, safe water, education, medical facilities and services, transportation and shelter which are all the components of poverty definition. It also includes a feeling of self worth on the part of Nigerian citizens. Aspects of self worth include; selfdetermination, self-reliance, participation in decision-making, a national and cultural identity, and a sense of purpose in life and work (Streeton, 1979). Since the development process is multifaceted, it demands the use of multiple tools, disciplines, and strategies which the past Nigerian poverty alleviation policy makers seem not to know, but even when they know might not have applied them appropriately.
The effectiveness and success of marketing in bringing about social change has been demonstrated in many other parts of the world. The concept and application of marketing is not limited to only business organizations, but has been broadened and extended to both non-business and not-for-profit making activities and organizations. The use of marketing in non-business domains has proved to be an important tool and veritable strategy in bringing about social change. Universities, hospitals, voluntary agencies and donor organizations, for examples, realize good results with the use of marketing concepts and strategies (Kotler, 1979). There is also evidence indicating the success of family planning programmes in developing countries and of heart disease prevention programmes in certain communities of California through the application of marketing (Fox and Kotler, 1980). Marketing effectiveness in non-business situations, such as fighting poverty in this study, provides an ideal opportunity to fill the gap between the expanded concept of development-economic and infrastructural aspect and the traditional focus of marketing-meeting basic human needs and wants (Duhaime, McTavish, and Ross, 1985).
1.2 STATEMENT OF THE PROBLEM
Poverty reduction is the most difficult challenge facing Nigeria and its people and the greatest obstacle to pursuit of sustainable socio-economic growth. Although revenue from crude oil has been increasing over the past decades, our people have been falling deeper into poverty. The poverty rate in Nigeria increased from 27 percent in 1980 to 66 percent in 1996 and by 1999 it was estimated that more than 70 percent of Nigerians lived in poverty and the figure has been rising since then. (National Planning Commission (2004) National Economic Empowerment and Development Strategy: NEEDS).
Extant literature shows high incidence of poverty in Nigeria despite abundant human, natural and material resources (Ogwumike and Ekpenyong, 1995; Maduagwu, 2000; Osinubi, 2003; Adeleye, 2004; Garba, 2006; Garuba, 2007). Governments on the other hand have been initiating programmes to address various manifestations of poverty such as hunger, shelter, health, education and credits facilities, as well as rural and gender dimensions of poverty. Available information from the literature including data from the Federal Office of Statistics show about 30 Federal Government’s projects and programmes with poverty reduction mechanism (NEEDS 2004). While none of these programmes was completely without merit, none of them had a significant, lasting or sustainable positive effect on reducing poverty in the country. Hence from available evidence, the results have been far below expectations.
This, therefore, raises the fundamental question as to what could be the reason behind the poor performance of such programmes in Nigeria.
There is evidence in the literature that the Nigeria government still relied on mainly administrative (top-down) implementation strategies with little or inadequate marketing strategies in their poverty alleviation programme design and implementation (see Eboh 2003:14; Maduagwu, 2003:3). One begins to speculate that limited consideration of marketing in the government’s poverty alleviation programmes formulation might be contributing to the dismal performance of such programmes. It seems therefore necessary to go beyond speculation and establish empirical evidence of this neglect or inadequate use of marketing in planning and executing poverty alleviation campaigns, as we plan to do in this study.
In doing this, we are aware that the issue of poverty alleviation in Nigeria is a momentous task going by the past efforts. We are also aware that there are no quick-fix solutions. But we believe, based on the past research findings around the world, that a marketing approach has the potential to make a significant contribution. Marketing no, doubt, has been acknowledged as serious source of success in both private and public sectors, as well as in non-business and social issues (Zaltman and Vertinsky, 1971; Dahringer 1978; Kotler, 1979). For instance, in Sri Lanka, a coordinated marketing programme helped to increase the use of family planning and prevented an estimated 60,000 unwanted pregnancies (Fox and Kotler, 1980: 24-33). The same source also describes similarly successful programmes in India, Bangladesh, Thailand and Mexico. In Jamaica, the National Savings Committee enjoyed some success in marketing concept of money management and savings among primary school children. Students qualifying for a bank account increased from 5,702 to 22,326 between 1973 and 1975, and the number of students in saving clubs increased from 36,284 to 102, 075 in the same period (University of the West Indies, 1977:134). Thus, in other parts of the world, marketing has become acceptable tool of public sector management and important techniques for achieving social change. All these examples simply suggest that social problems (like poverty alleviation here) are potentially solvable, at least in part, by utilizing marketing strategies.
Many authors and researchers have researched and written on different aspects of government poverty alleviation programmes. Going by the existing literature, there are volumes of research documentation on poverty, and poverty alleviation programmes in Nigeria. While most of these studies did a review of successive government poverty alleviation programmes with the aim of showcasing there shortcomings and pitfalls, others concentrated on poverty programmes impact assessment and measurements. Though some of these studies succeeded in exposing and buttressing the fact that past government’s poverty alleviation efforts yielded little results, they did not, however, dwell much on exploring ways through which the design and implementation of these programmes or campaigns can apply management strategies such as marketing to achieve improved results.
Since the satisfaction of basic human needs and wants is critical for development, marketing can contribute towards meeting these needs and wants by formulating programmes based upon detailed knowledge of citizens needs and wants – through research; segmenting the citizens (into poor and non poor) based on objective and quantifiable criteria; designing programmes for the segments based on their input through participations; setting up cost reduction pricing polices; and developing integrated marketing communication and distribution strategies. These, we believe, will contribute significantly to the nation’s fight against poverty. So, whereas the broadened concept of marketing which includes the marketing of non-business organizations, ideas and causes has been successfully used in such areas like Public health campaigns, education campaigns, image campaigns and environmental campaigns, it has not been applied to poverty alleviation campaigns. While the application of marketing strategies to social programmes campaigns have been diagnostically studied and evaluated from various perspectives, the researcher could not find studies that directly and quantitatively analyzed or evaluated the application and effectiveness of marketing in Nigeria’s poverty alleviation campaigns. We consider the absence of such empirical studies in Nigeria a serious gap in knowledge. The major problem or focus of this empirical study therefore, is to fill this serious gap in knowledge and practice in this crucial area of Nigeria’s development by studying poverty alleviation and the critical role of marketing in managing campaigns against it.