The term “Matthew Effect” finds its roots in the biblical parable of the talents, where the rich get richer, and the poor get poorer. In contemporary economic discourse, the Matthew Effect refers to the phenomenon where initial advantages lead to accumulative benefits, perpetuating and amplifying existing inequalities. Today, Nigeria grapples with a confluence of economic challenges, including high inflation, a rising cost of living, and pervasive poverty. These issues have given rise to a Matthew Effect that exacerbates inequality and squalor, perpetuating a cycle that is difficult to break.
Coined by sociologist Robert K. Merton in 1968, the Matthew Effect draws its name from the Gospel of Matthew, Chapter 25, Verse 29: “For whoever has will be given more, and they will have an abundance. Whoever does not have, even what they have will be taken from them.” This principle underscores the self-reinforcing nature of advantages and disadvantages. In the context of Nigeria, the Matthew Effect unfolds in a way that widens the economic divide, leaving a significant portion of the population trapped in poverty.
Nigeria’s economic landscape has been marred by persistent high inflation rates, a situation exacerbated by a range of factors such as fluctuating global oil prices, inadequate infrastructure, and insufficient policy responses. The inflationary pressure erodes the purchasing power of the vulnerable, pushing them further into poverty. Real-life examples abound, with families struggling to afford basic necessities like food, healthcare, and education.
The Matthew Effect intensifies as those with the means to weather inflationary storms continue to accumulate wealth. Wealthy individuals can invest in assets that appreciate over time, such as real estate or stocks, further widening the gap between the rich and the poor. The initial advantage of financial stability propels the affluent into a cycle of continuous accumulation, leaving the less fortunate with diminishing resources.
The rising cost of living in Nigeria is a significant driver of the Matthew Effect. Basic commodities become more expensive, making it challenging for low-income earners to make ends meet. In urban areas, where the cost of living is disproportionately high, individuals with meagre incomes struggle to access housing, healthcare, and education. This leads to a concentration of poverty in specific regions, perpetuating a cycle of disadvantage.
Real-life issues emerge as families grapple with the impossible choice between sending their children to school or putting food on the table. Education, a supposed equalizer, becomes a privilege for the affluent, setting the stage for intergenerational transmission of poverty. Economic theories such as the vicious cycle of poverty and the human capital theory come into play here, emphasizing how initial disadvantages can hinder individuals from acquiring the skills and education needed to break free from poverty.
In Nigeria, inequality is not just an outcome of economic disparities but a perpetuating force in itself. The Matthew Effect ensures that those who start with advantages continue to accumulate wealth, while the less privileged face barriers to economic mobility. This is starkly evident in the unequal distribution of resources, where a small elite enjoys disproportionate access to political power, business opportunities, and social amenities.
One real-life manifestation of this inequality is the unequal distribution of land ownership. In many cases, wealthy individuals or corporations acquire vast tracts of land, leaving the majority of the population with limited access to this essential resource. This concentration of land ownership perpetuates a Matthew Effect where the privileged few can leverage their initial advantage to generate more wealth, while the majority faces increased difficulty in securing the resources necessary for economic advancement.
Understanding and addressing the Matthew Effect in Nigeria requires a multi-faceted approach that combines short-term interventions with long-term systemic changes. Policymakers must prioritize measures that alleviate the immediate suffering of the most vulnerable, such as targeted social safety nets, while also addressing the root causes of inequality.
Implementing inclusive economic policies that provide equal opportunities for education, healthcare, and employment is crucial. Additionally, regulatory frameworks should be strengthened to curb monopolistic practices and ensure fair competition, preventing the concentration of wealth in the hands of a few.
Conclusively, Nigeria stands at a critical juncture where the Matthew Effect threatens to deepen existing economic disparities. High inflation, a rising cost of living, and pervasive poverty create a fertile ground for the amplification of advantages and disadvantages. Real-life examples highlight the urgency of addressing these issues, not only for the immediate well-being of the population but also to break the cycle of the Matthew Effect that perpetuates inequality and squalor. The path forward requires concerted efforts from policymakers, civil society, and the private sector to create an inclusive and sustainable economic environment for all Nigerians.
