Globalization and the Problems of Socio-economic Development in Nigeria
Objective of the study
The objectives of the study are;
- To assess the impact of globalization on Nigeria’s socio-economic development.
- To examine the unequal distribution of benefits arising from globalization and its effects on social and economic inequalities in Nigeria.
- To analyze the vulnerabilities and challenges faced by Nigeria’s economy due to globalization, including exposure to external shocks and competition from foreign firms.
- To explore the cultural implications of globalization in Nigeria, including the erosion of traditional values and the impact on local industries.
- To identify strategies and policy recommendations for addressing the problems associated with globalization and promoting sustainable socio-economic development in Nigeria.
REVIEWED OF RELATE LITERATURE
Globalisation and development in the west
Inequality and corruption have eaten deep into the fibre of most countries and regions, however, developed countries seem to have found a way of fighting off this problem, as they happen the be the largest benefactor of globalisation. Funke, Sachs, Bohmer, Weinelt and Weib (2016, pp 16) performed a study that shows what countries benefits most from globalisation. The study reveals, Switzerland, Finland, Denmark and Japan had absolute per capita income gain due to globalisation. It also reveals that the increase in transnational economic activity spurred national growth in these countries. Developed countries have been exceeding economic expectations through globalisation, this is evident in Germany’s economic prowess. In 2016, Germany’s export exceeded its import resulting to a trade surplus of €252.9 billion which is approximately 7% of its GDP (Adam and Thomas 2017 1). Montanino, Przywara, Young (2004) found that developed countries benefit from globalisation and achieved economic growth due to their investment in education. The European Union (EU) for example, has promoted globalisation by encouraging students to participate in the Erasmus programme, which exposes them to transnational education, youth training as well as workshops that contribute to the expansion of this programme, thus broadening their horizon, increasing their employability chances and presenting opportunities for them to develop their skills such that it effectuates national development. (European commission, 2017). Shangquan (2000, 4) argues that another reason why developed countries are the largest beneficiary of globalisation is because many international institutions and financial organisations are subjects to the control of developed countries. As a result, developed countries consciously or unconsciously make policies tailored to dominate and at the same time promote globalisation. Oatley and Yackee (2004) noted in their study, that although the International Monetary Fund’s (IMF) is essentially one of the most influential international organisation in the world as it can make and enforce economic policies on its member government. America still heavily influences and determines the content of the IMF conditionality agreement. In other words, American policymakers use their influence in the IMF to formulate policies that further the 10 financial and foreign policy goals of the United States. This implies that when the United States affairs are at stake, the IMF is obliged to provide loans. However, the IMF is not obliged to provide loans when the US interest is not at stake (Oatley and Yackeee 2014). The world bank is also another example of a financial organisation enormously influenced by the United States of America (USA). Although the world bank has a significant degree of autonomy, that, however, does not stop the USA from imposing its will on certain issues deemed important. This is evident as the USA is the only member country that has de facto rights of veto at the world bank, it is also the dominant member of the bank board, this implies that decisions that concern loans or developmental project are ultimately decided by the USA (Toussaint 2014). In this case, the fate of developing countries is being decided by the developed countries. This is a major setback, as each country engaged in the globalisation process expects some level of transparency regarding loan allocation or in general, decision crucial to their national development.
Globalisation and development in Sub-Saharan Africa
Globalisation has been accepted in this sub-Saharan part of Africa. However, there are certain factors that make this region losers of globalisation in terms of development, economic growth and political stability. Barry (2010, 57-60) highlighted reasons why sub-Saharan Africa is still experiencing slow economic growth, some of which includes its heavy reliance on the sales of its natural resources, less diversification to other industries and low investment in human capital — this ultimately has led to the region’s failure in handling the evolving stages of globalisation trends. International institutions such as the Bretton Wood Institutions (BWI), has tried to curb these problems by imposing structural adjustment programmes as prerequisites for loan allocations. These programmes are intended to effectively address the economic and political challenges of sub-Saharan Africa. However, policies in this programme such as privatisation, liberalisation and currency devaluation are founded on the principles of neo-liberalism, thus, applying this approach to a region characterised with weak institutions and poor governance would ultimately lead to a spiralling race to the bottom and halt the process of development. (Heidhues and Obare 2011, 57-60) 11 These policies also disregard the role culture plays in shaping a market economy, the western markets have stronger institution capable of absolving the intensity of globalisation such that they benefit economically, socially and politically. African markets, on the other hand, operate very differently from the western market, there are lots of domestic determinant of economic performance in African markets (such as culture, type of governance, institutions level of transparency, diversity of the population, and willingness of people to accept changes) which some of these policies ignores, thus, leading to economic dependence, higher indebtedness to western markets, higher poverty rates, regional instability, inequality and little or no development. (Heidhues and Obare 2011, 57-60) A study by Kai and Hamori (2009, 3-9) highlights the necessity for creating domestic policies to promote national development and reduce inequality caused by some of the neoliberal policies associated with globalisation. They suggested in their study that countries in sub-Saharan Africa should create a domestic financial market, implement market intervention policies, diversify their economy and provide easy access to financial services (i.e. safety net) for people of all social class. This if implemented, would significantly reduce the dependence of African markets on foreign markets as well as curb the problem of inequality. Zajda (2005, 155) asserts that a skilled and educated populace is pivotal to economic, social and political growth. Therefore, the government should invest in human capital as it would result in having an intellectually capable society which would essentially ease the process of globalisation. However, Chimanikire (2005), argues that African skilled and educated population migrate due to economic stagnation, low wages, politically instability, international institution’s imposed policies, politically motivated violence, unemployment, low standard and high cost of living and lack of development, which ultimately has led to the chronic brain drain syndrome Nigeria faces. The study by Chimanikire (2005) went on to suggest that government of this countries should enact policies that would curb these problems and encourage African intellectuals to reside and work in their countries. Additionally, the government should address these economic and political problems that inform citizens’ decision to emigrate. In the long run, this would eventually bridge the gap between the industrialised and developing nations, lay foundations for economic development, improve the social welfare of the populace and promote political stability in the region.
In this chapter, we described the research procedure for this study. A research methodology is a research process adopted or employed to systematically and scientifically present the results of a study to the research audience viz. a vis, the study beneficiaries.
Research designs are perceived to be an overall strategy adopted by the researcher whereby different components of the study are integrated in a logical manner to effectively address a research problem. In this study, the researcher employed the survey research design. This is due to the nature of the study whereby the opinion and views of people are sampled. According to Singleton & Straits, (2009), Survey research can use quantitative research strategies (e.g., using questionnaires with numerically rated items), qualitative research strategies (e.g., using open-ended questions), or both strategies (i.e., mixed methods). As it is often used to describe and explore human behaviour, surveys are therefore frequently used in social and psychological research.
POPULATION OF THE STUDY
According to Udoyen (2019), a study population is a group of elements or individuals as the case may be, who share similar characteristics. These similar features can include location, gender, age, sex or specific interest. The emphasis on study population is that it constitutes of individuals or elements that are homogeneous in description.
This study was carried to examine globalization and the problems of socio-economic development in Nigeria, the Buhari era. CBN form the population of the study.
DATA PRESENTATION AND ANALYSIS
This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of eighty (80) questionnaires were administered to respondents of which only seventy-seven (77) were returned and validated. This was due to irregular, incomplete and inappropriate responses to some questionnaire. For this study a total of 77 was validated for the analysis.
SUMMARY, CONCLUSION AND RECOMMENDATION
It is important to ascertain that the objective of this study was to ascertain Globalization and the problems of socio-economic development in Nigeria, the Buhari era. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing Globalization and the problems of socio-economic development in Nigeria, the Buhari era Summary
This study was on Globalization and the problems of socio-economic development in Nigeria, the Buhari era. Five objectives were raised which included: To assess the impact of globalization on Nigeria’s socio-economic development, to examine the unequal distribution of benefits arising from globalization and its effects on social and economic inequalities in Nigeria, to analyze the vulnerabilities and challenges faced by Nigeria’s economy due to globalization, including exposure to external shocks and competition from foreign firms, to explore the cultural implications of globalization in Nigeria, including the erosion of traditional values and the impact on local industries and to identify strategies and policy recommendations for addressing the problems associated with globalization and promoting sustainable socio-economic development in Nigeria. A total of 77 responses were received and validated from the enrolled participants where all respondents were drawn from CBN. Hypothesis was tested using Chi-Square statistical tool (SPSS).
In conclusion, globalization has brought both opportunities and challenges to Nigeria’s socio-economic development. On one hand, it has opened up avenues for international trade, foreign investment, and technological advancements, which have the potential to boost economic growth and improve the standard of living. However, on the other hand, globalization has also exposed Nigeria to a range of problems that hinder its development.
One of the main challenges of globalization for Nigeria is the unequal distribution of its benefits. The country has struggled with income inequality, and globalization has exacerbated this issue by concentrating wealth in the hands of a few, while leaving many Nigerians in poverty. The influx of foreign goods and services has also impacted local industries, leading to job losses and economic vulnerability for local communities.
Furthermore, globalization has exposed Nigeria to economic volatility and dependency. Fluctuations in global markets, such as changes in commodity prices or economic recessions in major economies, can significantly impact Nigeria’s economy, which heavily relies on oil exports. This vulnerability highlights the need for economic diversification and the development of sustainable industries to reduce dependence on a single commodity.
Globalization has also posed cultural challenges for Nigeria. The influx of foreign cultures, media, and ideologies has the potential to erode traditional values and identity. Moreover, the integration into global networks has increased the exposure to global risks, such as transnational crimes, terrorism, and health pandemics, which require effective governance and security measures.
Addressing the problems of socio-economic development in Nigeria within the context of globalization requires a multi-faceted approach. The government needs to prioritize inclusive growth by implementing policies that promote equitable wealth distribution, support local industries, and foster job creation. Investments in education, healthcare, and infrastructure are essential to provide a strong foundation for sustainable development.
Additionally, Nigeria should strive for economic diversification by encouraging investments in non-oil sectors such as agriculture, manufacturing, and technology. This will help reduce the country’s vulnerability to global economic shocks and create a more resilient and diversified economy.
To protect Nigeria’s cultural heritage while embracing the benefits of globalization, there is a need for a balanced approach. This involves promoting cultural preservation, supporting local creative industries, and fostering cultural exchange that enriches Nigeria’s society while maintaining its unique identity.
Lastly, collaboration with international partners, regional integration, and active participation in global governance platforms are crucial for Nigeria to effectively address global challenges. By engaging in dialogue, cooperation, and knowledge sharing, Nigeria can contribute to shaping a fairer and more inclusive global order that addresses the specific needs and challenges of developing countries like itself.
In conclusion, while globalization has presented Nigeria with numerous challenges, it also offers opportunities for socio-economic development. By adopting a comprehensive approach that addresses the concerns of equitable growth, economic diversification, cultural preservation, and global collaboration, Nigeria can navigate the complexities of globalization and strive for sustainable development that benefits all its citizens.
Based on the study of globalization and the problems of socio-economic development in Nigeria, several recommendations can be made to address the challenges and leverage the opportunities presented by globalization:
Promote inclusive growth: The government should prioritize policies and initiatives that aim to reduce income inequality and ensure that the benefits of globalization are shared equitably among the population. This includes investing in social welfare programs, education, and healthcare to provide equal opportunities for all Nigerians. Diversify the economy: Nigeria should actively pursue economic diversification by encouraging investments in sectors beyond oil, such as agriculture, manufacturing, and technology. This will help reduce the country’s dependence on a single commodity and create a more resilient and sustainable economy.
Enhance local industries: Efforts should be made to support and strengthen local industries, particularly those that are at risk of being overshadowed by foreign competition. This can be achieved through targeted policies, incentives, and capacity building programs that enable local businesses to thrive in the global marketplace.
Invest in infrastructure: Adequate infrastructure, including transportation, energy, and telecommunications, is crucial for economic development and attracting foreign investment. The government should prioritize infrastructure development projects and seek partnerships with international investors and development organizations to address infrastructure gaps.
Preserve cultural heritage: Nigeria should prioritize the preservation and promotion of its cultural heritage while engaging with global influences. This can be achieved through initiatives that protect traditional values, support local arts and crafts, and encourage cultural exchange programs that celebrate diversity.
Strengthen governance and security: Effective governance and security measures are essential to address the risks and challenges associated with globalization. Nigeria should invest in strengthening institutions, improving transparency, and enhancing security and law enforcement capabilities to mitigate threats such as transnational crimes and terrorism.
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