CHAPTER TWO

2.0 LITERATURE REVIEW

2.1 INTRODUCTION

2.2 THEORITICAL FRAMEWORK

2.2 THEORETICAL REVIEW

2.2.1 THE RATIONAL CHOICE THEORY

The rational choice theory is a framework for understanding and modeling social and economic behavior (Blume & Easley, 2008). The main thrust of the rational choice theory is that individuals’ rational decisions are premised on the expected benefits and costs of each action, and they seek to maximise the best course of action that will benefit their interest (Gupta, 2008). In relation to terrorism, the theory states that terrorist actions are driven from a conscious, rational and calculated decision to embark on an optimum and strategic course of action with the view of achieving socio-political goals (Sandler, Tschirhart & Cauley 1983; Crenshaw, 1992; Wilson, 2000). Thus, terrorists must allocate their available resources (money, ammunitions and human resources) over time and space so as to maximize terrorism’s net returns (Shughart, 2009). The rational choice theory suggests that terrorist’ activities undermine policy effectiveness and constrain the development process of any nation. In Nigeria, terrorist activities often distort fiscal policy actions which unexpectedly increase government spending via extra budgetary spending. A major setback of the rational choice theory is its inability to provide appropriate parameters for measuring how a perceived action could serve as benefit or cost to the terrorists (see Wieviorka, 1993).

2.2.2 THE RELATIVE DEPRIVATION THEORY OF TERRORISM

The Relative deprivation theory of terrorism introduced by (Gurr, 1970) suggests that political violence and terrorism occur mainly because of a collective discontent caused by a sense of relative deprivation. This theory is premised on the Frustration-Aggression hypothesis which assumes that frustration breeds aggressive behavior. In economic sense, the theory attempts to explain the correlation between poverty and insecurity, implying the emergence of conflicts most especially in developing countries is caused by the prevalence of poverty. Empirical evidences from the works of Collier & Hoeffler (2002); Bellow & Miguel (2006); Ford (2007) indicate that poverty is the major cause of conflict in Africa. Awojobi (2014) observed that frustration, lack of income, unemployment prompted the Northern youths in Nigeria to become foot soldiers of the Boko Haram movement. Hess, and Weerapana (2004) provide empirical evidence showing that economic contraction in high-income countries has a significant effect on transnational terrorism.

2.3 CONCEPTUAL FRAMEWORK

2.3.1 CONCEPT OF INSECURITY AND ECONOMIC GROWTH

From the available literature, the concept of insecurity and its negative impact on economic growth has not gone without notice. However, to close a gap and for a balance analysis, we will consider a brief review on the existing literature on security before delving into insecurity. According to Nwolise (2006: 352), security is an all-encompassing holistic concept which implies that the territory must be secured by a network of armed forces: that the sovereignty of the state must be guaranteed by a democratic and patriotic government, which in turn must be protected by the military, police and the people themselves, they must not only be secured by external attacks but also from devastating consequences of internal upheavals, unemployment, hunger and starvation, diseases, ignorance, homelessness, environmental degradation, pollution and socio-economic injustice. In the view of McGrew (1988: 101), the security of nation is predicated on two central pillars. On the one hand, it entails the maintenance and protection of the socio-economic order. In the face of internal and external threat, and on the other hand, it entails the protection of a preferred international order which minimize the threat to core values and interest as well as the domestic order. The UNDP (1994), defined human security with a view to understanding what insecurity entails. According to it, human security means first, safety from such chronic threat as hunger, disease and repression. And second, it means protection from sudden and hurtful disruption in the pattern of daily life whether in homes, in jobs, or in communities. The UNDP report identify seven elements that make up human security. i. Economic Security ii. Food Security iii. Health Security iv. Environmental Security v. Personal Security vi. Community Security and vii. Political Security According to Beland (2005), insecurity entails lack of protection from crime (Being unsafe) and lack of freedom from Psychological harm unprotected from emotional stress resulting from paucity of assurance that an individual is accepted, has opportunity and choices to fulfil his or her own potentials including freedom from fear. Collier (2006) stressed that those countries which have a substantial share of their income (GDP) coming from the export of primary commodities are radically more at risk of conflict. The most dangerous level of primary commodity dependence is 26% of GDP. According to him, conflicts and insecurity is concentrated in countries with little education, fast population growth and economic decline. This was also the views expressed by Aderoju (2007). The effect of Insecurity on economic growth has been described to be negative. Stewart (2004) analysed the effect of conflict and insecurity on development for twenty five countries between 1960 – 1995 and found that economic growth was almost always affected, agricultural sector was badly hit, exports were negative, production fell, there was a shift from international to domestic markets, imports went up dominated by military expenditure and essential consumption goods, usually leading to a shortage of foreign exchange for economic inputs., consumption per head fell, government revenue as a share of GDP mostly fell and foreign and private investments including government investment fell. This was further corroborated in SIPRI yearbook 2015, were they observed that threats to security can have socioeconomic roots, including contests over natural resources, spill over effects of environmental degradation, economic and social inequalities, economic and political migration, natural disasters, among others. On the whole, this study is a departure from most of the existing literature as it examines the effect of insecurity on economic growth from a political or purely socio-economic perspective.

2.3.2 THE CONCEPT OF ECONOMIC GROWTH

Economic growth in most developing and underdeveloped societies especially in the Latin America and Africa do not provide corresponding social good. Evidently, economic growth could not significantly address the spate of unemployment, poverty, diseases, hunger, illiteracy and ever increasing crimes and insecurity. Economic growth is the process of steady increase in the real gross national product (GNP) per head of population. However, when people talk about “growth” they think chiefly of different it makes to the standard of living rather than general welfare, while growth can start from a position of less than full employment, it usually refers to the rate a t which output continues to expand in the long run after employment has been achieved. Growth is essentially a long run phenomenon. To Todaro (1977), economic growth is the steady process by which the productive capacity of the economy is increased over time to bring about rising level of national income. Brooman (2004) economic growth is the process of steady increase in the quantity and quality of goods and services the economy can produce Schumpeter (1996), defined growth as gradual and steady increase in the rate of saving and population growth. Friedman ( 2006), defined growth as “an expansion of the system in one or more dimensions without a change in its structure, Stanlake (1974) defined economic growth as the increase in national output which is due to greater utilization of existing resources. From the foregoing, economic growth is viewed, in this study, as the increase in productive capital of goods and services produced by an economy over time which can be conveniently measured as the gross domestic product (GDP) sustainable within a period of time

2.3.4 DIMENSIONS OF INSECURITY IN NIGERIA

In Nigeria, the achievement of desired level of internal security is elusive. Nigeria has witnessed the proliferation of different militia groups that posed serious security threat to the Nigerian government. Thus, such unwholesome behaviors has affected economic growth in Nigeria and resulted in loss of numerous lives and property of the Nigeria citizen. This pathetic situation is critically examined under five dimensions of insecurity in Nigeria.

1. Militant Dimension of Insecurity Challenge Conflict in the Niger Delta arose due to tension between foreign oil corporation and some of Niger Delta’s minority ethnic group who felt they were being exploited, particularly the Ogoni‟s and the Ijaw (Osungade, 2008). Thus, ethnic and political unrest continued in the region throughout the 1990‟s and persisted despite the enthronement of democracy in 1999. However, competition for oil wealth in the region gave rise to agitation, violence and subsequent extra-judicial killing of Ken Saro-Wiwa and nine Ogoni leaders by the Abacha regime (Ogbodo, 2010:10). This action by Abacha‟s administration was condemned not only by many Nigerians, but also the international community. Thus, the inability of the Government to address the root causes of agitation (marginalization, poverty, unemployment, etc.), in the Niger Delta region, resulted in proliferation of ethnic groups causing the militarization of the entire region by ethnic militia groups. The agitation groups includes the Movement for the survival of the Ogoni people (MOSOP), founded by Ken Saro-Wiwa. Movement for the Emancipation of the Niger Delta (MEND), Niger Delta People Volunteer Force (NDPVF) led by Mujahid Dokubo-Asari and Niger Delta Vigilante (NDV) led by Ateke Tom (Amaizu, 2001).

2. Terrorism Dimension of Insecurity Challenge Another major insecurity challenging Nigeria which has adversely affected the Nigerian economy growth is the activities of Boko Haram group (Olugbode, 2010). The Boko Haram is considered the most dangerous Militant Islamic group in the northern part of nigeria that seeks the imposition of Sharia Law in the Northern States. Ideologically, the group opposes western education, culture and modern science. Historically, the Boko Haram group was founded in 2002 in Maiduguri by Utaz Mohammed Yusuf. In 2004, it moved to Kanama in Yobe state, where it set up base called „Afghanistan‟ used to attack nearby Police stations and killing police officers (AwowoleBrowne, 2010). And lots of its members that speak Arabic comes from neighbouring Chad, the group stronglybelieve in the Quranic phrase which says “anyone who is not governed by what Allah has revealed is among the transgressors”. The activities of the Boko Haram group constitute serious insecurity challenges in the contemporary Nigeria state. The activities of members of this group which have raised critical questions among investors on the safety of their investment in Nigeria, this ranges from killing of innocent Nigerians, raping of women, to bombing of major cities and police stations in the northern part of Nigeria, particularly, Borno, Kano, Bauchi, Yobe, Adamawa, Abuja, among others.

3. Kidnapping and Armed-Robbery Dimension of Insecurity Challenge Kidnapping is the act of illegally taking somebody away and keeping him as a prisoner in order to get money or something in return before releasing him. This situation was pervasive shortly after 2007 general elections in Nigeria. This is partly because the youths that were used as political thugs by politicians during the 2007 general elections subsequently engaged in kidnapping as means of livelihood after the elections. Indeed, confession by those apprehended indicated that some politicians in these states supplied guns to youths for the purpose of rigging the 2007 general election. Unfortunately, these guns were not retrieved at the end of the elections. Subsequently, kidnapping later turned a profitable business mostly among youths in Abia, Imo, Ebonyi, Bayelsa, Rivers and other states (Nwogu, 2008), several prominent men in Aba and its environs were kidnaped for ransom. This adversely affected the economic growth in Nigeria as many business men and manufacturing companies relocated to other countries, this pathetic situation got to a crescendo, when school were closed for fear of kidnappers as several students and pupils were kidnapped in Aba in 2010.

4. Ethno-Religious Dimension of Insecurity According to Oladoyinbo (2007) the nature of the crises in Jos, Plateau State and North Central part of Nigeria is a very complex one. It is tribal, religious and social. It is discovered that politics is the major cause of some of this crisis that erupted in that part of the country. There is no need for some people to use all means to dominate others or use people to subjugate others. Thus, this ethnic religious crisis has claimed numerous lives of Nigerians and property worth billions of naira. This crisis has resulted to several attacks on Christians by Muslims which over 10,000 Christians were slaughtered during the Jos crisis in 2010 (Oladoyinbo, 2010:15). Precisely, the Jos crisis has resulted in unimaginable confrontation, killing, bombings and other forms of violence. Many observers have argued that the root cause of the crisis was the inordinate desire by Muslims to forcefully convert Christians in the area as Muslims faithful‟s. Others assert that the root causes of Jos crisis are culture and land disputes. A closely related cause of insecurity facing Nigeria currently is the activities of Fulani Herdsmen. Several attacks have been carried out by these herdsmen in all parts of the country. Killing people and rendering others homeless

2.3.5 IMPACT OF INSECURITY CHALLENGES ON ECONOMIC GROWTH IN NIGERIA