Project Materials

CHAPTER ONE

INTRODUCTION

1.1. BACKGROUND OF THE STUDY

Globalization has become a commonly used word world-wide. It is no more a new concept in the business and academic world as generally the social scientists, journalists, business analysts, management theorists, writers and commentators have at many times used and will continue to use the word in particular expression or contexts for some specific purposes, with more or less effectiveness in their attempt to explain or interpret issues in this changing and complex world (Akinlo, 2010). This concept has gain expression recently in all the world’s major languages.

An “Idea which encompasses everything from global financial markets to the Internet” Globalization  has indeed become, “the cliché of our times” [David Held & Anthony Megrew 2012] disagrees a rapid spread perception that the world is speedily being molded into a shared social arena by economic and technological forces and that developments in one region of the world can have profound consequence for the life chances of individuals or communities on the other side of the globe

[David Held & Anthony Megrew 2012] Globalization  has opened up new and extensive opportunities for worldwide development. However, this is not “progressing evenly” as some counties are becoming integrated into the global economy more rapidly than others with the evidence of fast growth and reduced poverty. Thinking about the unification and re-shaping of the world into a global village and the description of the dynamics of political and economic relations within it constitute the essence and the development of the new phenomenon globalization.

For example, this mistakenly informed the outward – oriented policies which finally brought about the change and greater prosperity to much of East Asia, changing it from one of the financially down cast regions of the world 40 years ago to a growing region – economically and politically.

Contrary to the above view, for instance, Latin America and Africa in 1970s and 1980s pursued inward oriented policies, which incidentally resulted into economic stagnation or deteriorating socio-economic conditions. Poverty and high inflation became the feature in many cases especially in Africa as adverse external developments made the problems worse.

Development, however, though a multi-dimensional concept has to do with a rate of change in a particular direction “change in technology, social, economic and political aspect of life resulting in happy human life’ [Inusa Bello- Imam, 2010]. It is related closely to the concept of globalization.

Development as a concept has attracted many definitions and interpretations among scholars and writers; nonetheless, it addresses the process of transforming a society positively. It is therefore necessary to see “globalization and development as the two broad concepts for change and transformation.

There is an increasing debate among scholars who view globalization as having the capacity for increased opportunities for growth and development. Globalization may not be that imperative particularly in the 21st century if there is no development in some international economies (societies).

In other worlds, development may not be noticeable (particularly in Africa) if as argued, the principle or notion of globalization is not embraced. Which one comes first is another area of the process of transformation that is still contestable.  Today, as a major force in the world system, globalization enhances trans- borders’ interaction which in turn stirs all aspects of the process, namely; economic, historical, technological, social and political among others.

In a more clear term, it refers as to the increasing economic interdependence among countries of the world through the heighten volumes of cross-border transactions in contemporary times (Egbaju, 2007). We could take globalization to mean the establishment of a global market for goods and capital, the universal character of competing technologies, the progression towards a global system of production (Amin, 2010).

The concept of globalization came to Nigeria for the first time, not just in the last century, as it is generally thought, but when the Portuguese and the British landed on our shores before the end of nineteenth century to establish new trade link, and to spread Christianity (Iwara, 2014).

Globalization is therefore the high breakdown of hindrances and obstacles to the world-wide diffusion of economic ideas, doctrines, products, services and practices originating from the western industrialized, especially the United States of America (Abutudu, 2012) whatever ideas, products and services are distributed across territorial boundaries.

It then implies a world system in which development in one region can come to shape the life chances of communities in parts of the globe (Arowolo, 2008). It should be noted that Nigeria, a post-colonial state, cannot feign ignorance of the force of globalization. Of course, globalization has the promise of new opportunities for expanded markets and the spread of the use of technology (Ajayi,2014).

Undoubtedly, a major trend that cannot be wished away in the global political economy today is the phenomenon of globalization. Though the beginning of globalization can be traced to around 1870, its pace and scope in the last twenty years has been unprecedented (Onimode, 2012).

The collapse of the Soviet Union by 2008; the subsequent adoption of economic liberalization program by erstwhile Communist States, the efforts of China to join the main stream of market-led economies of the Capitalist West, all of these combined as factors that propelled economic globalization process (Babawale,2007).

To be properly integrated into the dynamics of the global arena, Nigeria should necessarily align with the demands of the new wave of technology, capital flow and vigorously pursue the goal of development and how Nigeria can minimize the adverse effects of globalization and harness the benefits there in to engender national development, hence the study, globalization and Africa’s dependent development: the experience of Nigeria.

1. STATEMENT OF PROBLEM

For decades now, Nigerian has been experiencing disappointing performance in terms of growth in GDP and the general development of her economy. As a result, there is no improvement in the reduction of poverty level, in the 90’s, came the era of globalization which connotes external opening and increased role of markets domestically (i.e., the market economy).

To the developing world, market economy is a modern way of turning the economy around. The essence of globalization is to move the economy towards external liberation, focusing on market-oriented economic system export-led strategy and stabilization of the economy.

In Nigeria, it was the era of structural adjustment program in collaboration with the IMF and World Bank. The governments in the developing world believe that it is more desirable to globalize which simply means to open up the economy and penetrate the international markets. Hence there is need to examine globalization and Africa’s dependent development: the experience of Nigeria.

1.3 AIMS OF THE STUDY

The major aim of the study is to examine globalization and Africa’s dependent development: the experience of Nigeria.  Other specific objectives of the study include;

1. To examine globalization in Nigeria.
2. To examine the prospects and challenges of globalization in Nigeria
3. To examine the impact of globalization on national development.
4. To examine the relationship between globalization and national development.
5. To examine the solutions and benefit from globalization.

1.4 RESEARCH QUESTIONS

1.  What is globalization in Nigeria?
2. What are the prospects and challenges of globalization in Nigeria?
3. What is the impact of globalization on national development?
4. What is the relationship between globalization and national development?
5. What are the solutions and benefit from globalization?

1.5 RESEARCH HYPOTHESES

Hypothesis 1

1. : There is no significant impact of globalization on national development.
2. There is a significant impact of globalization on national development.

Hypothesis 2

1. : There is no significant relationship between globalization and national development.
2. : There is a significant relationship between globalization and national development.
3. SIGNIFICANCE OF THE STUDY

Globalization is a powerful real aspect of the new world system, and it represents one of the most influential forces in determining the future course of the planet. It has manifold dimensions: economic, political, security, environmental, health, social, cultural, and others. Globalization has had significant impacts on all economies of the world, with manifold effects.

It affects their production of goods and services. It also affects the employment of labor and other inputs into the production process.

The study would be of benefit to educate the government and stakeholders in the country on globalization and its impacts on development and economy. The study would also be of immense benefit to students, researchers and scholars who are interested in developing further studies on the subject matter

1.7 SCOPE AND LIMITATION OF THE STUDY

The study is restricted to globalization and Africa’s dependent development: the experience of Nigeria.

LIMITATION OF THE STUDY

Financial constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview)

Time constraint: The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.

1.8 DEFINITION OF TERMS

Globalization: Is a process of vertical and horizontal integration involving increasing volume of and variety of transnational transactions, in goods and services, in international capital flows, in human migration, and through a rapid and widespread diffusion of technology.

Development:  Is a multidimensional concept that involves in it re-organization and re-orientation of the entire economic, political and social institutions.