The overall objective of the macroeconomic management (MEM) research area is to conduct technical analyses on key macroeconomic issues. The MEM area first covers issues on Nigeria, with the coverage gradually expanding to include other African countries. The MEM area has four components:
Budget and the Macroeconomy
Research on the budget and macroeconomy is aimed at analysing national and sub-national governments’ budgets in order to determine the growth implications of public expenditure. The assumptions and targets of the budgets are first tested vis-à-vis the prevailing economic situation while the allocations to the different sectors are evaluated on the basis of the relevance of such sectors to growth enhancement and poverty reduction. Sub-national budgets are specifically analyzed with the purpose of ascertaining their ability to augment revenues from the federation account with internally generated revenue. MEM also focuses on national and sub-national debts, with particular emphasis on debt sustainability and debt management practices.
Fiscal and Monetary Policy
The fiscal and monetary policy sub-theme of MEM examines the macroeconomic impact of fiscal and monetary policies, with the central focus on the fiscal-monetary policy mix in an oil dependent economy such as Nigeria.
Deregulation and Government Reforms
Deregulation and economic liberalisation have been pursued in Nigeria in the last decade. However, there is limited empirical evidence as to the effect of these reforms. The MEM research area seeks to verify the impact of deregulation and other public reforms on key economic sectors such as oil and gas, telecommunications, agriculture, trade, and manufacturing. Attention will be paid to the impact of these reforms on public service delivery and market efficiency.
CSEA’s research in the area of public-private partnerships (PPPs) is aimed at providing evidence on the nature and impact of the model of PPPs for the provision of infrastructure and other public amenities. MEM will adopt several analytical techniques to determine the social benefits and costs, distributional and efficiency implications of PPPs. Furthermore, MEM will examine the institutional environment for PPPs in African countries, and conduct cross-country and global comparisons, to identify ‘best practices’ and useful lessons that can be transferred to Africa in order to enhance public sector capacity to provide social amenities.