Shuttle Diplomacy Case Study
Studies have found that there is a positive correlation between economic growth of developing nations and the success of attracting foreign direct investments. Thus, President Olusegun Obasanjo adopted the tactic of shuttle diplomacy in tackling the innate problems his administration inherited from the previous Odysseus-military regimes particularly the Abacha regime that earned Nigeria a pariah status due to the inhuman conducts of violating human rights. In addition, the Olusegun Obasanjo administration took it upon itself to achieve a debt relief by engaging a vigorous campaign to address the debt crisis situation. The study relied heavily on secondary data provided by the United Nations Conference on Trade and Development (UNCTAD). It
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Apparently, it is observed that from 1990-1999, the inflow of FDI capital was low compared to the drastic pick between the period of 2000-2007. From 1990-1998, FDI inflow was from $1,002,500.00 USD to $1,210,100 USD while from 1999-2007, FDI inflow was from $1,177,000 USD to $12,453,700 USD. From this findings, it is crystal clear that measures put in place by the Obasanjo-led administration were effective than those of his predecessors. This fact strengthens the endorsement of Obasanjo's shuttle diplomacy as a good model to foster rapid development of the Nigerian economy.
Figure 1: Bar chart interpreting data from Table …show more content…
This is enough evidence that his shuttle diplomacy strategy was indeed an effective one and had an immense impact on increasing the amount of foreign capital that came into Nigeria throughout his years in office. Although, according to Alfaro et al. (2006), empirical evidence fails to believe the popular notion of policy makers that FDI helps generate positive productivity externalities for host countries. They further argue that both micro and macro empirical literature consistently finds no effect of FDIs on host countries firm productivity particularly in developing countries like Nigeria. However, theoretical models of FDI on the other hand imply that FDI is beneficial for the host country’s development. Thus, taking into consideration the benefits that FDIs bring such as the transfer of technology, provision of employments, increase in output, recipient country benefiting from improved knowledge and expertise of foreign multinationals etc. It is enough evidence that in a country where FDI is on the rise, economic development is
Apparently, it is observed that from 1990-1999, the inflow of FDI capital was low compared to the drastic pick between the period of 2000-2007. From 1990-1998, FDI inflow was from $1,002,500.00 USD to $1,210,100 USD while from 1999-2007, FDI inflow was from $1,177,000 USD to $12,453,700 USD. From this findings, it is crystal clear that measures put in place by the Obasanjo-led administration were effective than those of his predecessors. This fact strengthens the endorsement of Obasanjo's shuttle diplomacy as a good model to foster rapid development of the Nigerian economy.
Figure 1: Bar chart interpreting data from Table …show more content…
This is enough evidence that his shuttle diplomacy strategy was indeed an effective one and had an immense impact on increasing the amount of foreign capital that came into Nigeria throughout his years in office. Although, according to Alfaro et al. (2006), empirical evidence fails to believe the popular notion of policy makers that FDI helps generate positive productivity externalities for host countries. They further argue that both micro and macro empirical literature consistently finds no effect of FDIs on host countries firm productivity particularly in developing countries like Nigeria. However, theoretical models of FDI on the other hand imply that FDI is beneficial for the host country’s development. Thus, taking into consideration the benefits that FDIs bring such as the transfer of technology, provision of employments, increase in output, recipient country benefiting from improved knowledge and expertise of foreign multinationals etc. It is enough evidence that in a country where FDI is on the rise, economic development is