Wema Bank PLC · NSENG:WEMABANK
Wema Bank — Investor Presentation (April 2015)
20 slides from Wema Bank's investor presentation, Apr 20, 2015
Slide 1: Why Nations Succeed
Why Nations Succeed Wema Bank PLC, 70th Anniverdsary Commemorative Lecture, Lagos James A. Robinson Harvard April 20, 2015 Robinson (Harvard) Why Nations Succeed April 20, 2015 1 / 20
Slide 2: Recap: The Main Questions of Why Nations Fail
The Puzzle Recap: The Main Questions of Why Nations Fail Why is it that some parts of the world are much richer and more successful economically than other parts of the world? What can poor countries do to make themselves richer? My book Why Nations Fail (with Daron Acemoglu) proposes a theory based
Slide 3: A Simple Example
Main Concepts An Example A Simple Example How did the two richest men in the World, Bill Gates and Carlos Slim make their money? Proximate explanations: Gates: Innovation, entrepreneurship in software and with the Microsoft company. Slim: Monopolies starting with Telmex. Deeper Reasons - both men ar
Slide 4: Towards a Theory of Institutions
Main Concepts Inclusive and Extractive Institutions Towards a Theory of Institutions Inclusive economic institutions: Create incentives and opportunities for the broad mass of the population. A level playing …eld and a rule of law based on universal principles. Inclusive political institutions: Poli
Slide 5: An Inclusive Economic Institution
Main Concepts Inclusive and Extractive Institutions An Inclusive Economic Institution Innovation Drives Long-Run Growth The 19th Century US Patent system. Great example of how to harness the talent and creativity of a society - inclusion! Robinson (Harvard) Why Nations Succeed April 20, 2015 5 / 20
Slide 6: Growth under Inclusive Institutions
Main Concepts Institutions and Growth Growth under Inclusive Institutions Inclusive economic and political institutions (or inclusive institutions for short) create powerful forces towards economic growth by: encouraging investment (because of well-enforced property rights) harnessing the power of m
Slide 7: Growth under Extractive Political Institutions
Main Concepts Growth under Extractive Political Institutions Growth under Extractive Political Institutions Though growth is much more likely under inclusive institutions, it is still possible under extractive institutions. Why? ! Generate output and resources to extract. Two types of growth under e
Slide 8: Synergies
Main Concepts Growth under Extractive Political Institutions Synergies Economic Institutions Inclusive Extractive Political Inclusive # Institutions Extractive " ! Robinson (Harvard) Why Nations Succeed April 20, 2015 8 / 20
Slide 9: The Chinese Model?
Main Concepts Growth under Extractive Political Institutions The Chinese Model? How does China …t into this in more detail? Part of it perfectly - the trigger for economic growth was obviously the movement towards more inclusive economic institutions which started with the deregulation of agricultur
Slide 10: Growth under Extractive Political Institutions
Main Concepts Growth under Extractive Political Institutions No Creating inclusive economic institutions can be part of a political project and enlightened leaders can want to develop and modernize their countries: Botswana (Seretse Khama), Singapore (Lee Kuan Yew), South Korea (Park Chung Hee) and
Slide 11: The Persistent Illusion of Autocratic Success
Main Concepts Growth under Extractive Political Institutions The Persistent Illusion of Autocratic Success Maybe not in Nigeria... Africa has not had a happy history with ‘autocratic growth’(few exceptions, Rwanda..) and this is deeply related to extractive institutions - absence of an e¤ective stat
Slide 12: The Emergence of World Inequality
World Inequality The Emergence of World Inequality Started by the Industrial Revolution which was created by the emergence of inclusive institutions in Britain. Disseminated very unevenly because di¤erent parts of the world have very di¤erent institutions: European settler colonies in North America
Slide 13: African Development
World Inequality African Development From my perspective Africa is poor because it has su¤ered from a long history of extractive economic and political institutions. These are part of deeply rooted historical proceeses The slow development of centralized political entities compared to Eurasia (e.g.,
Slide 14: Negative Institutional Legacies of Colonialism
World Inequality Negative Institutional Legacies of Colonialism .. and some Nigeriaan Examples 1 Perverse e¤ects of particular colonial institutions, such as agricultural marketing boards (yes!). 2 Colonialism created an arbitrary state system which has led to political con…cts (Biafra, Boko Haram?)
Slide 15: The Nigerian Legacy after 1960
World Inequality The Nigerian Legacy after 1960 Extractive political institutions Dictatorship and military regimes Weak state unable to raise taxes, enforce law, control violence Extractive economic institutions Marketing boards and farmers Undersupply of public goods Large amount of predation by t
Slide 16: Turning Nigeria Around: The Broader Evidence
Paths to Inclusive Institutions Turning Nigeria Around The Broader Evidence Need to move towards inclusive institutions. Our framework emphasizes that this is not a technocratic economic problem, this is a political problem. Focus …rst on developing inclusive political institutions and the economics
Slide 17: Turning Nigeria Around: The History since 1999
Paths to Inclusive Institutions Turning Nigeria Around The History since 1999 Since 1999 Nigeria has progressed towards inclusive institutions in both ways Democratization of 1999 with President Obasanjo. The remarkable success of the recent election. Strengthening of the state (reforms at the cente
Slide 18: Problems for the Transition
Paths to Inclusive Institutions Problems for the Transition Democratization of 1999 not forced by a broad coalition in society but by the collapse of the kleptocratic military regime of Sami Abacha following his death in 1988. Problems with the functionality of the state inability to contain Boko Ha
Slide 19: Problems of Building Inclusive Political Institutions
Paths to Inclusive Institutions Problems of Building Inclusive Political Institutions Distribution of Power Narrow Pluralistic State Ine¤ective Extractive !#? #? Institutions E¤ective !? Inclusive Robinson (Harvard) Why Nations Succeed April 20, 2015 19 / 20
Slide 20: The Complicated Transition
The Future for Nigeria The Complicated Transition Critical to think about the inter-relationships between the two dimensions of political institutions. Trying to create pluralism without thinking how the state works: Iraq today. The failed Russian transition in the 1990s. Mexico: democracy has led t