How then does Nigeria increase the productivity of its resources?
Yes, a country can link its producers directly to the end consumers of the country’s products, reform its banking sector, improve education etc. but lets try and answer the question first on a macro level, and while we are at it pitch in like everyone else with suggestions towards tackling the problems. There are three main ways a country can increase the productivity of its resources: it can raise the quantity and quality of its business capital investment; it can improve the public capital that enables the private economy; it can improve the quality of its human capital. To ensure that the solutions proposed offer more than intuitiveness, lets look at each one of these sources of productivity growth and try and answer the question by inferring how Nigeria triggered its productivity decline. Business investment By definition, private investment equals the sum of three sources of saving: private saving, government saving (or budget surpluses) and net inflows of capital from other count
