THE EFFECT OF GLOBALIZATION ON THE ECONOMIC DEVELOPMENT IN NIGERIA BETWEEN 1999 AND 2007
The purpose of this study is to analyze the effect of globalization on the economic development in Nigeria between 1999 and 2007 considering how globalization affects the developing economy. This research also identified the effect of globalization on national development (industrialization, technological advancement and agricultural development). Data was obtained from the secondary sources like Journals, textbooks, internet and all other secondary sources. More data were also gathered through interviews. The data obtained was analyzed using thematic format and a descriptive essay and the result revealed that globalization has greatly influenced the national development in Nigeria giving rise to macro-economy instability and mixed economy syndrome that had characterized Nigeria government and all other developing economy. However, for globalization to succeed it must also deliver right no less than riches and provides social justice and equity no less than economic prosperity and enhanced communication. This study concludes that the merit of globalization for Nigeria lies in the capacity for wealth creation through export-led growth and the benefit of expanded international trade of goods, services, and access to new products and designed in the global markets. It however recommends that economic globalization should not be driven by desire to make money.
This chapter gives an overview of the study making a quite summary of findings, conclusion of the result and further recommendations. The rationale of the study which was to analyze the effect of globalization on the economic development in Nigeria between 1999 and 2007 which was exhaustively introduced in chapter one laying emphasis on the background of the study, statement of the problem, the purpose of the study, significance of the study, research questions, limitation of the study, definition of terms.
The chapter two which was the review of related literature was introduced and theories (World system theory and theory of global capitalism) relating to globalization and economic development of a nation were comprehensively discussed and in details. Chapter three contains the overview of globalization and its development oriented framework Also, responses of the developing economy to globalization analyzing properly a Nigeria experience. Chapter four describes the nature of the developing economy considering the economy of Nigeria, mixed economy syndrome and the responses of the economy to the global market.
TABLE OF CONTENT
Table of content……...…v
1.1 background of the study
1.2 statement of problem
1.3 significance of the study
1.4 objectives of the study
1.5 research questions
1.6 research methodology
1.7 sources of data
1.8 scope and limitation of the study
1.9 definition of terms
2.1 literature review
2.2 theoretical framework
2.2.1 world-system theory
2.2.2 theories of global capitalism
3.1 globalization: the salient features
3.2 development – oriented framework of globalization
3.3 response of the developing economy to globalization
3.4 globalization and the nigerian state
4.1 the nature of the developing economy
4.2 the history and the nature of nigerian economy
4.3 the mixed economy syndrome
4.4 response of the economy in the global market
Summary, conclusion and recommendations
1.1 Background of the Study
Since the advent of globalization the world has become a much smaller place where interaction between different countries has led to a situation where a country's economy and development are not only in the hands of the ruling government but also influenced by international organization where international rules and legislation reign.
Though globalization seems to be a modern term yet its tenets and characteristics stretch back into antiquity in the annals of human history (which has not been static but had continuously evolved with the society itself over the years) various development and changes had taken place thus affecting the systematic existence mankind regardless of geopolitical location within universe.
Globalization seems to denote something that is changing human kinds pre - occupation with territoriality and the traditional arrangements of the state system. As a universal concept, it came into limelight about fifteen years ago and was used alongside "Liberalization and economic integration which advocates of specific Types of economic cooperation among various countries of the world in the field of industrialization, trade, commerce, finance, trade commerce, transport, communication, infrastructural development etc and championed by the western capitalist countries and their institution and agencies with a new ideological name as the international community.
Today it is believed that Nigeria is already in a global economy where flow of trade, capital and knowledge not only large but also increasing yearly and as such it could not close its economies to the process especially because it could not produce everything it needed. Also given the historical relationship between Nigeria and the west, she has confirmed to be part of globalization process. This is due to the fact that colonialism provide a legal framework for the dependence of the Nigeria's economy on the economy of the western countries. Hence, it becomes a producer of raw materials for industries in advanced capitalist societies. But it should be that the developing and advanced countries should stand equally to benefit from the opportunity that globalization is set to offer. Rather imperialism in its matured neo-colonial or multilateral stage of development in which people of the third world countries (i.e Africa) are valued as not human beings, but for what they have to offer.
Globalization has faced much criticism due to its controversial process in the current Neo-capitalist form and comes to a surprise to economist and policy makers who are highly convinced of the benefits this form of globalization can bring to the developing world.
From the foregoing, it is needless to search any premise other than to commence the re-examination of the concept of globalization identification of challenges and opportunities for Nigeria in the web of international relationships and to identify as well as proffer the possible potentials of globalization in transforming the socio-economic base.
1.2 Statement of Problem
It is worthy to note that Nigeria's economy is characterized by the number of socio-economic problems which include import dependence, weak industrial base, dependence on a single economic sector (oil), depending on foreign loans, a weak private sector, a low level of agricultural production etc. all these have contacted bottleneck in the nation's attempt to use globalization to advance her socio-economic fortunes.
1.3 Significance of the Study
The significance of the study is to understand the globalization process whereby a country's socio-economic growth and development will no longer depend on natural resources but a contribution of global networking, creativity speed entrepreneurial talents.
Thus, this research work is pertinent because it gives an evaluation of the process in Nigeria which invariably, will offer ways that the civil society, the government and policy makers can improve as well as maximize the negative effects in order to raise the socio-economic development ratio of the nation. This work will also serve as a contribution to an already existing body of knowledge.
1.4 Objectives of the Study
The main objective of this study is to examine globalization and economic development in Nigeria and to determine its impacts in the Nigeria Economy.
Other objectives include the following.
1. To examine the relationship that has existed between globalization and the Nigeria economy
2. To identify effect of globalization on national development (industrialization, technological advancement and agricultural development)
3. To determine the factors militating against economic development through globalization in Nigeria.
4. To ascertain the effect of globalization on the developing economy such as Nigeria’s
1.5 Research Questions
1. What is the relationship between globalization and the Nigeria economy?
2. What are the effects of globalization on national development (industrialization, technological advancement and agricultural development)?
3. What are the factors militating against economic development through globalization in Nigeria?
4. What are the effects of globalization on the developing economy such as Nigeria’s?
1.6 Research Methodology
Methodology is part of the research that shows the ways and approaches of collecting the data (Oliver, 2004). This research is primarily qualitative as it is based on Globalisation and economic development in Nigeria. The reason for choosing the qualitative analysis strategy is the exploratory and the qualitative nature of study. According to Robson (1993), flexibility is always the main strength of the case study strategy in terms of interpretation and getting access to the specified places. The research is a based on secondary data. We used document analysis/content analysis as main method of data collection. Document analysis/content analysis also called “textual analysis” (Travers, 2001) in the study will include all kinds of academic articles, textual and multi-media products, ranging from television programmes to web sites on the internet
1.7 Sources of Data
In the course of research for this work relevant data and information were obtained from the main sources. These were primary and secondary source.
1. Primary Sources:
Primary sources which were utilized in the course of the research for this work from archival research. Material was consulted at the National Library, Akure, Ondo State. They include intelligence report other documents relating to this works.
2. Secondary Source:
Secondary source which consulted in some university and public libraries across the country include textbooks, journals and periodicals information obtained from primary sources. These sourced helped to provide data and information relating to globalization and economic development in Nigeria.
1.8 Scope and Limitation of the Study
The scope of the study is to examine the pre-colonial and post colonial Nigeria state. This is because it will give an explicit and thorough analysis of the trend and dynamics of globalization within the nation against the back drop of imperialism and colonialism. The major constraint encountered during the course of this study is the management of data, this is to say that the plethora of writing exist on top (globalization) that a lot of time was spent trying to get the most appropriate for the work at hand.
Finance also poses a formidable limitations, as the researcher attracted no grants from any quarters. The researcher had to adopt possible means to elicit the necessary information from books, print media computer and respondents as most of them wouldn't comply, he also traveled repeatedly out of school to get those pieces of information.
Time Factor: the duration of this research is just very short and the research has struggled amidst other academic commitment thus cause an all night and day put to tie the project together.
1.9 Definition of Terms
Globalization: This refers to the process intensification of economic, social, political and cultural relations across international boundaries, it seeks to remove all national barriers in order to allow the free flow or movement of goods and services.
Liberalization: This was introduced in the seventies in a package of structural adjustment programs. It basically means a laissez-faire assumption of free flow of goods and services between countries and pre-supposes a dismantling of all trade barriers.
Development: This is a multi-dimensional concept. Thus for the purpose of the study, it would be viewed in three dismantling of all trade barrier.
Economic development: This concept concentrates primarily on increase reflected in the quality and quantity of usage and food available to man.
Social development: This could be called institutional and structural development. This is according to Aba (2000). The institutional and legal frame work created by man to bring about a conducive atmosphere and circumscribe the behavior of man in his relations to others while they individually and collectively seek to gain greater access to material things of value in society".