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Globalization and Economic Development in Nigeria

Globalization and Economic Development in Nigeria: An Assessment

Literature Review

In carrying out these research studies, which includes, articles, seminars paper, newspaper, text books etc.

The review materials are grouped under the following headings:

  1. Positioning Nigeria for development in an era of globalization
  2. The challenges of globalization
  3. Globalization and economic development
  4. Obstacles to economic development
  5. Benefits of globalization

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2.1     Positioning Nigeria for Development in an Era of Globalization.

According to Anyakoha (2002); globalization is a phenomena that evolve over time but has suddenly accelerated in the last quarter of the century by revolutionary development in technology.

It represents the emerging worldwide inter –dependence of individuals and countries which is characterized by various economic, political cultural and social realities.  This has created a new order of electronics telecommunication network, covering the world though cable satellite information super high way. These are new global networks which have dismantled national boundaries and barriers. These have created a global village where one can access information from any part of the universe by mere touch of a bottom.

Trade barriers have broken down, the world’s major financial markets have been integrated and travel has become easier and cheaper. These are now a greater integration of the world economy.

Globalization has however continued to engender enormous debate, controversy, protest and demonstration that are sometimes violent. The reaction to the concept of globalization and its application to human development have been significantly more pronounced in the relationship between the developed richer western world which are the owners of the new technologies and the poor developing countries which are by and large the consumers of the capabilities.

Globalization has this produced negative effects on less or undeveloped countries.

A country is poor because it is under developed.

Low Rates of Capital Formation

The most pertinent obstacle to economic development is the strategies of capital, poverty are both a cause and consequences of a countries low rate of capital formation. In an under developed country, the masses are poverty ridden.

Their marginal production is extremely low. Low productivity leads to low real income, low savings low investment and to a large rate of capital formation.

Socio Cultural Constraints

Economic development has must to do with human endowments, social attitude, political conditions and historical antecedents.

According to the United Nation (UN) report on process and problems of globalization in under developed countries, there are elements of social resistance to economic change in under developed countries which includes institutional factors characterized by rigid stratifications of occupation re-enforced by traditional beliefs and values. Social attitudes towards education are further minimally to economic progress.

Agricultural Constraints

Another obstacle relates to this agricultural sector, agricultural production constitutes a large share of the G.D.P and agricultural commodities form a considerable part of the value of their total export. Agricultural practice is controlled by custom and tradition.

A village is fearful of science, for many villages’ insecticides is a taboo. A new and improved seeds is suspected as a result of the environmental factors, agricultural output falls to increase to meet the rising demand of the developed economy. Furthermore, when the growth rate of population is high, per capital agricultural and food output may actually decline instead of increasing as was the case with the low income countries during 1970’s – 1980’s when their per capital agricultural output deadline by0.4% and capital food output by 0.3% per year.

READ  Globalization and Economic Development in Nigeria

Human Resource Constraint

This is an important aspect in the development of any economy, and it’s importance cannot be over emphasized.

However, human resource is one of the constraints of economic growth and development of any economy. In as mush as this plays a cardinal role in the economy of nation its inadequacy also forms challenges in the globalized era of economic development, through globalization.

2.2     The Challenges of Globalization

The word globalization is used in different ways. The contested nature of the concept of globalization is part of the explanation for the confusion of so much of the public debate.  The UK government believes that if well managed, the benefits of globalization for poor countries and people can substantially outweigh the cost especially in the longer term.

The rapid integration of the global economy combined with advances in technology and science in creating unprecedented global prosperity. It is not inevitable that globalization will work well for the poor or that it will work against them. This depends on the policies that governments and international institution pursue.

We need developing countries, international institutions, private sectors and civil service to rise to the challenges of globalization to exploit it benefit. Globalization also is re-enforcing the need for a more integrated approach to policy making, policies no longer fit into what the distinction between domestic and inter-national policy to increasing to meet.

Most domestic policies such as taxation have international perspective and most international policies are in dimensions. The formulation of sustainable development strategies in a global economy requires that developed and developing countries have more joined up and co-herent policies, Steward (1999).

2.3     Globalization and Economic Development

In runaway world according to Rout and Anthony Giddens (2009) accept that the ideal that globalization is changing the way we have and in a very profound manner. But they went further to argue that globalization is more than just economic and its risk affects every aspect of life, including policies, technology and culture. Giddens never tries to describe the vastness of globalization permeates ideas, notion and functions of risk tradition, family and democracy.

In trying to convey the complexities of globalization to the reader, Giddens debates by distinguishing two distinct groups of people. First, the skeptic as he calls them feel the type of globalization is just talk and that the system of the world carry on must be like it were before.

The second group, the radical argues that not only is globalization real, but that its effect can be felt everywhere. The author claims the skeptic represent the political left over who feels that globalization is an ideology put forth by free marketers to dismantle the welfare of the state and cut back on government expenditures.

The radicals represent the free marketers and opportunities who seem to make money on every situation. He feels that both groups fails to see the total effects of globalization as both groups only focuses on the economics of the country.

2.4     Obstacles to Globalization and Economic Development.

According to Raph Nwatu, (2010), a lot of issues has been identified as hindrances to economic development in the developing countries among which are:

  1. Circle of Poverty: The basic circle stems from the fact that the total productivity is low due to deficiencies of capital market imperfections economic backwardness and under development. However, the circle operate both on the demand side and the supply side. The demand side is low level of income leads to a low level of demand which in turn leads to a rate of investment and hence back low income are important obstacle to economic development.
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2.5     Benefits of Globalization

According to Dauda Abubakar (2009), he argues that globalization entails universalization where by the objects practice or even values transcend geo-political boundris, penetrating the soverign nation and value system of the people.

However, the following have been pointed as the benfits of globalization. They are as follows.

  1. Globalization creates opportunities for the socio economic development among state or nations.
  2. Globalization paves way for international trade and investment, there by establishin trade and bilateral relations between or among countries.
  3. Technological diffusion and the spreading of economic development from rich to poor countries.
  4. Globalization creates freedom to choose markets among globalized economy.

2.6     EFFECTS OF GLOBALIZATION

The process of globalization which started about a decade and a half ago caught Nigeria on the basis of political instability. The main features of globalization process includes liberation of trade, free movement of capital and accelerated development in information technology.

Globalization provides windows of opportunities if the indices of development interest and exchange rates, terms of trade, traits etc, are on the positive and favorable scale. In Nigeria, however by the middle of the eighties, public infrastructure and utility had gone into serious dilapidation. The road network were in bad shape. Schools and hospitals deteriorated.

Telecommunication and power supply become very erratic. As a result of petroleum related activities, agriculture was relegatd to the background (Ralph 2010; 304).

According to Dauda, (2009;84) the effect of globalization is characterized by the following.

  1. Collapsing and uncompetitive industrial sector activities (30% surviving in the last 10 years.)
  2. Rapid growth in unemployment, under employment and poverty (about 60% among the youth aged 14-25 years) translating into 3 million jobless person entering the labour market annually.
  3. Social instability and intolerance (ethnic nationalist and religious friction)
  4. Hyperinflation coverage’s 50% between (1985 – 1995)
  5. Unstable interest and exchange rates (from and 1 – 1.0 in 1985 to and 1 to 100 in 1990 interest rate of 35% per annum as at September 2000)
  6. Low productivity and
  7. Endemic corruption, greed and advance. Given the Nigeria’s political and socio economic disposition

Globalization presented more challenges to the country as it lack what it takes to be relevant or event adopt and / or cope with it until the country can achieve certain level of good governance a revamped industrial base, modest economic growth, fairly efficient public infrastructure and utilities. Nigeria shall remain at the receiving end of globalization.

Summary of Findings, Recommendations and Conclusion

Summary of Findings

Based on the information gathered from both, the primary and secondary source of data in the course of carrying out the research work, the following findings were made:

The findings, of this study has some implication for public administrators, managers, politicians and government.

The following were the two findings of the study, they include;

  1. Globalization create freedom to trade among nations of the world, thereby establishing the freedom among markets, that are suitable for them in accessing the required technology for production.
  2. The findings of the study revealed the effect of globalization in that it make Nigeria economy vulnerable, for example Nigeria is now made a dumping ground for foreign products. Local manufacturing industries are closed down, because the economy is porous to importation of goods.
  3. Moreso, the findings of the study revealed that the following itemized are obstacle to economic development and globalization.
  • Poor knowledge
  • Problem of infrastructure facilities
  • Corruption
  • Low information of the study
  1. Finally the findings of the study following as strategies to enhance economic development and globalization.
  • Education
  • Good politics
  • Foreign partnership
  • Agriculture etc
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It was further revealed from the findings of the study that globalizations is also a veritable instrument for the economic development of the developed and developing societies or economy of the world.

  • Recommendations

Based on the finding of the study the following recommendations are made:

  1. The government should create an enabling environment that can accommodate globalization and economic development in the country.
  2. The government should enhance developmental processes by bringing about good and qualitative education that can enhance globalization.
  3. The government should make and implement policies that are geared towards economic development in the country, not policies that will not enhance economic development for the country.
  4. The government at all level should provide the nations with facilities that can match and compete it with other nations of the world globally to enhance economic advancement and technological advancement.

Finally, Intensive efforts should be made by the government and the people to adopt the present trend of global networking, so as to improve and grow in our attainment to which it geared toward vision 2010.

5.3     Conclusion

In conclusion of the research work, there is no doubt about the fact, that globalization and economic development are veritable instrument towards nations building and transformation which tend to compete with other developed and developing countries of the world.

Globalizations as a social economic networking among two or more countries for nations and economic development among countries thereby establishing bilateral and foreign trade partnership and technological advancement.

The world is a global village that can access what is happening in the whole world from any location of the world is economic development is a social transformation in the standard of living of the people in the society.

Globalization and Economic Development in Nigeria: An Assessment

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