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Convention (UCC), provides national treatment for the holders of copyrights of all other signatories of the UCC. The Nigerian government is also in the process of reviewing adhesion to the Berne Convention. Cases involving infringement of non-Nigerian copyrights have been successfully prosecuted in Nigeria, but enforcement of existing laws remains weak, particularly in the patent and trademark areas.

The Copyright Decree of 1988 provides an improved copyright regime, based on the World Intellectual Property Organization (WIPO) and U.S. copyright law. Criminal offenses under the law include counterfeiting, exporting, importing, reproducing, exhibiting, performing, or selling any work without the permission of the copyright owner. Progress enforcing the 1988 law has been slow, in large part because of the government's decision to inform the public about the provisions of the law before actively enforcing it. The expense and length of time necessary to pursue a copyright infringement case to its conclusion are detriments to the prosecution of such cases. The government is considering amendments to the law to make its enforcement more effective.

The Patents and Design Decree of 1970 governs the registration of patents. Once conferred, a patent gives the patentee the exclusive right to make, import, sell, or use the products or apply the process. The Trade Marks Act of 1965 governs the registration of trademarks. Once conferred, a trademark gives its holder the exclusive right to use the registered mark for a particular good or class of goods approved the trademark registrar. Few companies have bothered to secure trademark or patent protection because it is generally considered to be ineffective. The government has begun the lengthy process of drafting new legislation covering both trademarks and patents.

Losses from ineffective intellectual property rights protection are substantial, although their magnitude is difficult to estimate. It has been estimated that 80 percent of the sound recordings sold in Nigeria are pirated copies, and the entire video industry is based on the sale of pirated tapes. Satellite signal piracy is common, but any infringement of other new technologies is infrequent in Nigeria, as most computer and computer-related technologies are not yet widespread. The International Intellectual Property Alliance estimated that U.S. companies lost $39 million in 1988 due to copyright piracy, excluding losses from computer software.

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Nigerian workers, except members of the Armed Forces and employees of government services designated essential by the Federal government, may join trade unions. Employers are obliged by law to recognize trade unions and must pay or deduct a dues checkoff for employees who are members of a registered trade union. While the trade union movement has had, within limits, considerable latitude for action, it is subject to government oversight, particularly during the past

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three years.

The right to strike is recognized by law, except in the case of essential services as defined by the government. During the past year, strikes were relatively few and of short duration and focused primarily on pay and benefits.

b. The Right to Organize and Bargain Collectively

The labor laws of Nigeria permit both the right to organize and the right to bargain collectively between management and trade unions. Collective bargaining is in fact, common in many sectors of the economy. Nigerian law further protects workers against retaliation by employers for labor activity through an independent arm of the judiciary. the Nigerian Industrial Court, which handles complaints of antiunion discrimination. The Government, however, retains broad authority over labor matters, and unions frequently take their demands directly to the Government, rather than to the employers. In January 1991 the Government abolished the uniform wage structure for all government entities, allowing workers to negotiate their own levels of wages, benefits, and conditions of employment.

C.

Prohibition of Forced or Compulsory Labor

Nigeria's 1989 Constitution prohibits forced or compulsory labor, and this prohibition is generally observed.

d.

Minimum Age of Employment of Children

Nigeria's 1974 Labor Decree prohibits employment of children under 15 years of age in commerce and industry and restricts other child labor to home-based agricultural or domestic work. The Labor Decree does allow the apprenticeship of youths aged 13 to 15, but only under specific conditions. Activities of apprentices over 15 years of age are not specifically regulated by the government. These laws are enforced only sporadically, particularly in rural areas where most Nigerians live.

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Nigeria's 1974 Labor Decree also established a 40-hour workweek, prescribed 2 to 4 weeks of annual leave, and set a minimum wage for commerce and industry. In January 1991 the government announced a 50 percent increase in the minimum wage but labor leaders were not satisfied with the new figure, believing that it did not represent much of an increase since it also included many allowances previously given, or permitted a reduction in the benefits of some workers. Labor also complained that government and private employers were slow to enact the new wage scale and there were numerous local strikes and work stoppages in protest. The 1974 Decree contains general health and safety provisions, including compensation for injured workers and dependent benefits for workers killed in industrial accidents. The Government's ineffectiveness in enforcing these laws is regularly criticized by labor unions.

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f.

Rights in Sectors with u.s. Investment

Worker rights in petroleum, chemicals and related products, primary and fabricated metals, machinery, electric and electronic equipment, transportation equipment, and other manufacturing sectors are not significantly different from those in other major sectors of the economy.

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(D)-Suppressed to avoid disclosing data of individual companies

Source:

U.S. Department of Commerce, Survey of Current Business
August 1991, Vol. 71, No. 8, Table 11.3

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1/ Statistics depending on population data are often unreliable; official black population and unemployment rates are likely understated. While the Central Statistical Services no longer attempts to quantify black unemployment, most economists believe the rate is in excess of 40 percent. Unemployment among other racial groups is lower.

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South Africa is a middle-income developing country with a modern industrial sector, well developed infrastructure, and abundant natural resources. Economists agree that the South African economy has the potential to grow at an annual rate in excess of five percent; yet economic growth over the past decade averaged less than one percent in real terms; no new net jobs were created in the manufacturing, mining, and agricultural sectors; and per capita incomes declined sharply. Real growth in 1990 failed to meet even this low standard of performance, with real GDP declining by almost one percent. The economy will continue to decline in 1991, as the nation battles to emerge from its longest recession in over forty years.

Besides being affected by the present worldwide recession, the South African economy's poor performance can be explained by several structural factors. Apartheid policies have led to inefficient use of human resources, underinvestment in human capital, labor rigidities, and large budgetary outlays for duplicative layers of government and facilities. Inflation has persisted at double-digit levels each year since the early 1970's. Labor productivity has been low and declining, and has been outstripped by high average wage increases. The government has intervened extensively in the economy to protect inefficient industries, provide employment to its constituents, and combat foreign economic sanctions. Foreign and domestic investment has been limited by political uncertainty, continuing violence, labor unrest, and the concern over the role of the private sector in a post-apartheid South Africa. Many sectors of the economy are dominated by a few large firms with pre-emptive market strength.

The South African Government has taken steps to address some of these structural problems. The U.S. Government has consistently opposed apartheid but is encouraged by current multiparty negotiations on a new democratic constitution. While there is a long way to go in eliminating the effects of apartheid and meeting the aspirations of the black community, progress has been made in reducing the economic distortions caused by racial policies. Legal restrictions which prevented black South Africans from owning businesses, obtaining skilled jobs, or living in major urban centers have been lifted. Black trade unions have been recognized. Spending on black socio-economic development, including education and health care, has increased in recent years, although it still remains greatly below spending on white services. Much remains to be done, and the effects of past policies, particularly the legacy of the "bantu" education system, will be felt for many years.

Over the last decade, quantitative credit controls and administrative control of deposit and lending rates largely disappeared. The South African Reserve Bank now operates similarly to western central banks. It influences interest rates and controls liquidity through its rates on funds provided to private sector banks, and to a much smaller degree through the placement of government paper. The Reserve Bank has had some success in meeting its M3 growth target for FY 91,

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