Impact of globalization on the nigerian economy

Thesis Overview

<p> </p><div><p><strong>INTRODUCTION</strong></p><p><strong>1.1 Background of the Study</strong></p><p>Globalization, the increasing integration among nations has accelerated over the past half a century, driven largely by the remarkable expansion in international trade and extra ordinary advances in information and communication technologies (Ojeka, 2004).</p><p>Globalization is not a simple phenomenon neither is it a uniform process rather, it is a process that is complex and multifaceted. The process has undoubtedly led to a high skilled labour force. But global capital still continues to look for cheap labour to export in it bid for profit maximization.</p><p>Globalization of the world’s goals and services markets through trade liberalization and the removal of numerous controls preceded financial market integration. The removal of barriers to international trade by countries in the quest to operate within the framework of the multilateral trading system was a major impetus for the acceleration of globalization of trade.</p><p>Scholars are polarized between those who are of the opinion the globalization produces uniformity and homogenization and those who are convinced that homogeneity is maintained by different cultural responses to apparent similar global pressure (Ohmea 1995:12).</p><p>Owugah (2003:239-240) views globalization as a process which breaks down national borders to ensure an unrestricted movement of capital technology goods and services across national borders”. He observed further that globalization is propelled by the industrial economies multilateral financial institutions, transnational corporation (TNCs) and the World trade organization (WTO) supposedly for the benefit of all.</p><p>The benefits of globalization have not been evenly distributed. Disparities between the rich and the poor as well as within many countries have increased. Today, more than half of the world’s population still lives below the poverty line. The persistent object poverty and other related problems including those posed by the volatility of international capital flows have been a matter of serious concern it is worthy of note that in the early 1970s Nigeria had made visible progress in closing the income gap relative to advanced economies but the case can not be said of the country today in this era of globalization. Moreover in many other countries, in the sub Saharan African, the process has been slow. In the same vein, the income gap of Nigeria relative to developed economies has widened and per-capital income in a number of countries have actually dropped.</p><p>Rodrick (1987:26) posits that there has also been a decline in Nigeria’s share of world trade, eyen for its traditional commodity exports. Also foreign direct investment in the country has generally remained at a very low ebb (level), thus countries of the South entered the new millennium trailing well behind other regions and facing enormous development challenge (Offiong 1980).</p><p>Developing countries and especially those of the third World including Nigeria have for years experimenting with various development strategies and programmes with the aim of attaining self-reliance from excessive dependence on the West. Thus, overtime, various programmes ranging from import substitution, industrialization have been adopted by these counties without achieving the much desired leap into modernity. One of the fundamental features of these development programmes is their insensitivity to the local, social, economic and political environments since the policies were conceptualized by Western Scholars and adopted by developing countries. The result has been that of repeated and woeful failure of these strategies (Aloson, 2001).</p><p>By and large, globalization started in a small way, when capital left Europe to open up new areas in America and other part of the World. The structural changes that followed were caused by the technological improvement of the post 1970s era in computers, communications and transport networks. In addition this coincided with the collapse of the Soviet Union, the decline of the influence of socialist ideology, the end of the cold War consequent upon the fall of the Berlin Wall and the disintegration of the planned economies Eastern Europe. As a result, the world economy, greatly influenced by the capitalist inclination and laid bare to the market forces, has witnessed renewed invigoration of the reform programmes which have been constructed in what has been often times referred to as “Washington consensus”. In the course of the past tow decades, implementation of these economic reforms programmes have changed national economic structure across the global altered international incentives and international flow of capital, goods and services (Cornell 2001).</p><p><strong>1.2 Statement of the Problems </strong></p><p>The conceptualization of globalization can be traced to the compartmentalization of the USSR and the onward emergence and development of a Unipolar World order with America, the West and financial cartel like the World Bank and International Monetary Funds, Marketing Capitalism via various forms of economic liberation to every nook and cranny of the world.</p><p>To be specific, globalization is promoted through the instruments such as multilateral financial institutions, World Trade Organisation (WTO), Transnational organizations etc. Anchored on this instruments, he promoters of globalization promises a process of liberalizing economies particularly so that trade between countries can take place easily (Okolie, 2003:263). According to the Westerners (that is the developed countries) globalization in natural and inevitable part of historical change which will tendentiously increase wealth and prosperity for all countries and peoples and subsequently enhance world economy (Camdessus 2000).</p><p>Anne Icrueager as quoted by Owugah (2003) described globalization as a vehicle for closing the gap between the industrial and poor countries of the world. She opines that globalization has gone far in helping to free some coutries from poverty and enabling them to enjoy a higher standard of living.</p><p>This research work sis carried out to find out whether or not globalization has impacted positively on the Nigerian economy.</p><p>It is pertinent to argue therefore, that since Bahangida regime (that in produced SAP) till this Buhar is time, Nigeria has fully embraced globalization via the commitment to privatization, deregulation, commercialization and liberalization etc. which are the care instruments of globalization.</p><p>Against these convictions and Nigeria’s relationship with strong financial cartels such as IMF, World Bank, London &amp; Paris clubs, the idea of globalization has been embraced with its major instruments as part of present economic reforms. Based on this background this work intends to answer the following questions;</p><ul><li>Whose interest is globalization protecting?</li><li>What are the philosophical and ideological drives that influence or propel globalization?</li><li>Are instruments used by forces of globalization those of subjugation or liberation?</li></ul><p>In strongly believed that if the above questions are objectively answered, it is possible that in would arrive at an unbiased conclusion as regards the concept of globalization and its impacts on the economy of Nigeria.</p><p><strong>1.3 objectives of Study</strong></p><p>The research sought to achieve the following objectives;</p><ul><li>To examine whose interest globalization protects.</li><li>To identify they philosophy behind globalization.</li><li>To find our the level of exploitation occasioned by globalization.</li><li>To identify the root causes of globalization.</li></ul><p><strong>1.4 Significance of the Study</strong></p><p>Before the emergence of globalization, Nigeria has been consistent in her commitment, to her relationship with the international capitalist system and would not hesitate to try off policies, programmes and projects suggested by these international financial economic cartels.</p><p>Despite Nigeria’s commitment, the issue of sustainable human development continued to elude the nation. As it is, poverty still reign high while majority of the populace lives below the poverty line.</p><p>Knowing the strong inclination of Nigeria and commitment to the international financial cartels, when the concept of globalization was mooted and it became the globalize concept that should adopted by virtually all the third world nations. Knowing Nigeria s commitment to the concept outtalked decided to undertake a critical assessment of its impact on the Nigeria economy. The research is quite relevant and significant on the grounds that despite Nigeria’s acceptance over the years to implement policies foisted on her by imperia forces from United States, European countries and other developed countries.</p><p>Nigeria continues to remain a subjugated and subjected to the whims and caprices of the international system without much of positive development in the country.</p><p>The work will also serve as a reference point to budding and interested scholars in the field of politics sociology, law and economics etc.</p><p><strong>1.5 Scope and Limitation the Study &nbsp;</strong></p><p>The research will be limited in scope to a critical appraisal of the impact of globalization on the economic development of Nigeria (1999-2006). The choice of Nigeria as the case study is because to time and financial constrained in traveling to other countries for data. Also, the choice of Nigeria is based on consideration of the fact that Nigeria and some of her contemporaries in the third world countries share similar historical experiences of colonial rule and economic bastardization.</p><p><strong>1.6. Research Hypotheses</strong></p><p>(i) &nbsp; There is no significant relationship between genuine interest of globalization and Nigeria economy.</p><p>(ii) &nbsp; There is no significant relationship between the philosophy behind globalization and economic growth.</p><p>(iii) There is significant relationship between the level of exploitation by globalization and economic growth of Nigeria.</p><p>(iv) There is no significant relationship between the root cause of globalization and economic growth of Nigeria.</p><p><strong>1.7 Definition of Concepts</strong></p><p>Capitalism</p><p>Development</p><p>Dependency</p><p>Commercialization</p><p>Economy</p><p>Economic integration</p><p>Globalization</p><p>Privatization</p><p><strong>(i) &nbsp; &nbsp; Capitalism:</strong>&nbsp;A social economic system based on private property rights, including the private ownership of resources or capital, with economic decisions made largely through the operation of a market unregulated by the state. It is also a socio economic system based on abstraction of resources into the form of privately owned capital.</p><p><strong>(ii) &nbsp; &nbsp; Development:</strong>&nbsp;It is a process by which a highly degree of self-reliant economic growth in a society sustained over a longtime, is associated with substantial reduction in poverty, unemployment, inequality and external dependency. It is the act or process of developing growth, progress and the manner in which things are developed.</p><p><strong>(iii) &nbsp; Dependency:</strong>&nbsp;A situation in which the economy of certain countries is conditioned by the development and expansion of another economiy to which the former is subjected. The relation of inter-dependency between two or more economies and between these and World Trade, assumes the form at dependence, which some countries (the dominant ones) can do this only as a reflection of that expansion which can have neither a positive or negative effect on the immediate development.</p><ul><li><strong>Commercialization:</strong>&nbsp;This is a process whereby an enterprise or parastatal is subjected to commercial criteria in terms of management, profitability and some degree of financial independence. Partial commercialization occurs when enterprise or pavatatals are dependent on government for subventions for their operational costs and capital projects, on the ground that their goods and services have a high element of publicness. Full commercialization occurs when enterprise or parstatals are self-sufficient and independent in terms of both their capital and recurrent expenditure.</li><li><strong>Economy:</strong>&nbsp;This is an organization of money and other resources for the well being and development of man. Economy is the foundation of social life. It determines other aspects of social life, particularly the legal system, the political system the belief system and the morality. Once the mode of production of the economic system is understood we have a fairly good idea of what the general character of the other aspects of the social system will be like.</li><li><strong>Economic Integration:</strong>&nbsp;Is the Unification of economic policies between different states through the partial or full abolition of tariff and non tariff restrictions on trade taking place among them prior to their integration. It is also the arrangement between different regions marked by the reduction or elimination of trade barriers and the coordinating of monetary and fiscal policies.</li><li><strong>Globalization:</strong>&nbsp;The process of making global; being present World wide. It entails universalization whereby the object, practice or even values transcends geo-political boundaries, penetrating the with sovereign nation state and impacting on the orientation and value system of the people. It is also a process of increasing interdependence and integration which occur as money, people, images, values and idea which flow more swiftly and smoothly across national boundaries.</li><li><strong>Privatization:</strong>&nbsp;Is a process by which government divests its proprietary interests in state owned enterprises parastatals so that such establishments falls into private ownership either partially or completely. Privatization occurs where government still retain some interest in the enterprise as signaled by its representation. While full privatization refers to a situation where government completely disgorge its entire equity holding in the enterprise or parastatals.</li></ul><p><strong>1.8 Validity of the Instrument &nbsp; &nbsp;</strong></p><p>Validity in this study was ascertained using the face value facility consequently scholars in political science and public administration research were consulted and they examined the instruments for inductiveness, clarity and beauty.</p><p><strong>1.8.1 &nbsp; &nbsp; Reliability of Instrument</strong></p><p>Reliability was ensured through a pilot test of a 12% of sample. The percentage scores did not reflect any significant different. The questioner was therefore adjudge reliable for the study.</p></div><h3></h3><br> <br><p></p>