ABSTRACT
Recent measures of welfare tend to go beyond the conventional focus on resources to a wide range of other aspects due to the multidimensional nature of quality of life. Such an approach is however limited by lack of clear framework for evaluating quality of life particularly at the micro level. This study evaluates the quality of life, living conditions and the effectiveness of governance in Zaria Local Government Area from an economic perspective. The Capability Deprivation Index (CDI) was developed and estimated across the thirteen wards of the study area. Using a combination of stratified and systematic random sampling, data were collected on key dimensions of quality of life – education, health and living conditions, to determine the nature and extent of capability deprivation and its disparity across the thirteen Wards and Zaria Local Government Area as a whole. With the use of descriptive statistical method of analysis, findings from the study suggest the existence of capability deprivation in all dimensions with great disparity across households. The results also point to living conditions as the greatest source of deprivation, which is evident in poor living standards and significant governance deficit. The study therefore recommends that government should scale up commitments in the living conditions dimension, and welfare intervention policies should be ward-specific based on a scale of preference.
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
Quality of life is tied to the extent with which the welfare of the people is promoted across space and time. This can be achieved either through market mechanism as a first-best option, or by way of government interference as a second-best alternative. From whichever perspective, the role of government is typically the provision and equitable allocation of public goods (Barr, 1987). Therefore people’s access to, and effective distribution of goods and services can be an important yardstick for evaluating quality of life and the effectiveness of governance.
Determination of economic criteria for welfare evaluation has been a subject of debate among economists. The source of this debate is the inability to decide on purely economic grounds how the goods and services produced in an economy should be distributed among individuals, arising from the political, economic, and moral considerations surrounding issues of distribution and equity (Just, Hueth and Schmitz, 2004). Welfare economics provides an economist with tools of analysis for making normative statements about the ideal policy choice in any given situation, and the basis for evaluating the achievements of markets and governments in resource allocation.
The approaches for the assessment of human welfare have evolved from the utility-based to resource-based approach, and more recently to the capability approach. According to Walle (1996), the evolution of these approaches can be attributed to three important revolutions in economics. First is the marginalist revolution associated with the independent works of Calrl Menger, Leon Walras, and Alfred Marshal. Their most notable contribution is the idea of diminishing marginal utility which has been the basis for consumption theory and the backbone of welfare measurement up to early twentieth century. The second is the ordinalist revolution which, starting with the work of Lionel Robbins in 1932, synthesized the contributions of the marginalists into a coherent school of neoclassical economics. The ordinalists maintained that utility is a subjective concept that can be measured only through revealed preference. The third revolution is attributed to the work of John Rawls in a 1971 publication A Theory of Justice. Drawing on the philosophy of Rawls, Amartya Sen developed the capability approach with focuses on human potentials rather than merely on resources. This is known as the humanist revolution which has been influential particularly in development policy circles (Cooter and Rappoport, 1984; Stanton, 2007). Most recently, the evolution is towards an integrated approach that combines all approaches to welfare with emphasis on sustainable development (see Costanza et al. 2008; Stiglitz, Sen and Fitoussi, 2009). However, the empirical application of this heterodox approach is limited by a lack of workable framework for welfare evaluation. In addition, the Millennium Development Goals (MDGs) have been used as a framework for public policy and evaluation especially in the developing world. But as at 2015, many countries in Sub-Saharan Africa including Nigeria have not achieved the targets for MDGs despite sustained periods of growth, calling for a shift of focus to a post-MDGs world. The prospects of most of these countries even in a post-MDG era are unclear especially when growth forecasts are being adjusted downwards. As such, it is important to have a clear and measurable framework for quality of life evaluation as a basis for government action in less developed countries. Empirically, studies on quality of life use diverse indicators as healthcare, education, housing, and earnings as components of welfare. However, studies on developed countries focus on happiness and satisfaction with the components since public goods are available and readily accessible in those countries. On the other hand, studies on developing countries emphasize on access to such welfare components due to the prevalence of resource poverty and other forms of deprivations in less developed countries. For example, observations from reports on a global scale show a wide disparity in quality of life between the developed economies of Latin America, Europe, Europe and Central Asia, and the developing economies of Sub-Saharan Africa and South Asia (see Helliwell, Layard and Sachs, 2013; Porter, Stern and Green, 2013; UNDP, 2014). The differences in the level of development across countries indicate that different societies face different types of problems at varying degrees, and therefore have differing needs. This provides a basis for evaluating quality of life using different standards for different societies.Contemporary studies on quality of life tend to follow the growth-centred model of development in focusing exclusively on the macro economy while neglecting the human potentials that are lost to other forms of deprivations. Thus the entry point in this study is the recognition that multidimensional deprivations exist at the micro level that conventional approaches to welfare scarcely capture, and which coexist with high inequalities in many dimensions.
1.2 Statement of the Research Problem
Despite high rates of economic growth in the last decade, Nigeria’s Human Development Index (HDI) ranks 152 out of 187 countries in the 2014 Human Development Report. This places Nigeria among countries with low human development. The report further ranks Nigeria ninth of the 42 countries in the low human development category. The HDI ranking of the country and its economic growth seems to be incompatible. Real GDP growth rate averaged 7.4 percent in 20002013 which should have boosted Nigeria’s HDI. The divergence between growth and HDI suggests that the windfall from sustained GDP growth trajectory has not translated to high human development. Economic and social statistics of the Nigerian economy reveal the depth of poverty, inequality and low living standards across all states and communities with women and children as the most vulnerable group. The National Bureau of Statistics poverty profile for 2010 estimated 69% of Nigerians as relatively poor with 60.9% in absolute poverty while 93% as subjectively poor based on self-assessment (National Bureau of Statistics, 2012).
States and local governments in Nigeria are heterogeneous. Therefore, state and local government (micro) level research is important to improving the information required for effective welfare policy intervention. In addition, there is the need to expand the analysis of welfare beyond traditional poverty measures, toward expanding options and enhancing capability. The literature indicates a diverse set of welfare measures with focus on particular aspects of welfare such as happiness, inequality, and poverty, without due regard to the multidimensional nature of quality of life. It is thus necessary to determine the appropriate measure for policy at the micro level. Within states, there seems to be over concentration of intervention projects in state capitals and cities. The population in smaller communities may be neglected and conditions at local levels tend to be underreported by government survey agencies because of over-aggregation and apparent bias toward the macro economy. Hence, models of community-based development require studies of local government areas and communities. Zaria local government is one of 23 local government areas in Kaduna State. Given the multiple deprivations in Kaduna State relative to the national average, a measurement of the quality of life in Zaria local government is imperative. The study was guided by the following questions:
- What is the appropriate framework for evaluating quality of life at the micro level?
- What is the quality of life and living conditions of the population in Zaria local government area?
- To what extent is governance effective in Zaria local government area?
1.3 Objectives of the Study
The major objective of this study was to evaluate the quality of life and living conditions of the population in Zaria local government area. The specific objectives were:
- To develop a framework for evaluating quality of life at the micro level.
- To measure the quality of life of the population in Zaria local government area.
- To evaluate the effectiveness of governance in Zaria local government area.
1.4 Significance of the Study
This study could be useful in providing a broader knowledge base for policy makers at state and local government levels on the living standards of the people so that appropriate policies could be designed to promote their quality of life. It could help in identifying priority areas where the use of public resources will result in better outcomes. Information on the state of public goods and service delivery may be valuable in setting policy targets for their improvement. The need for partnership between state and local governments in providing essential services may also be made to be critical in achieving government policy objectives. An empirical framework for public policy evaluation such as this one, may assist in providing an alternative measure of quality of life especially at the expiration of the MDGs. With countries far from achieving the MDG targets, there is the need for other policy targets that would fill in the gap and augment the global development agenda. Such framework could help in identifying the relevant space for welfare expansion and policy evaluation. Due to the debates surrounding issues of welfare, it is hoped that this study would contribute to the development of better measures of welfare that suit less developed countries without compromising their cultural values. This may make the process of economic development more compatible with the circumstances of individuals in different societies. It may also add empirical content to the human development approach that is still evolving.
1.5 Scope and Limitations of the Study
This study was limited to Zaria Local Government Area of Kaduna State. Zaria local government is one of the 23 local government areas in Kaduna state. It is a socio-economic model that represents diverse values which characterize a heterogeneous society. Data was collected from households based on cross-sectional units surveyed according to wards. However, results from the study should be treated with caution since the data set used was mainly from survey, which depends on the sincerity of the responses therefrom. Yet in spite of the limited scope of this study, the findings can be generalized as a representative of quality of life in Kaduna state.
