GLOBALIZATION AND ITS EFFECT ON THE COUNTRY NIGERIA

GLOBALIZATION AND ITS EFFECT ON THE COUNTRY NIGERIA

ABSTRACT

This research work deals with the impact of globalization, its concept, and development, the opportunities opened by globalization to Nigeria and identifies the problem and tension posed. 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. This study also examines the effect of Globalization on the Country Nigeria and its uneven application of regulatory standards in Nigeria has exacerbated ethnic and class tensions and how the oil exploration/extraction activities have affected the individual and collective lives of the people in the Niger Delta region. Overall, the study links the individual and collective lives of Nigerians, particularly people in the rural communities to the political economy of global capital. Globalization undermines state control, while states undeniably remain significant actors in the international system, the effect of globalization are steadily eroding away at state authority. Trade, communications, technology and travel serve to undermine state control. This has attributed to the various impact of globalization on state sovereignty. State sovereignty was premised on a territorial world. Furthermore, the study explores how the expansion and activities of global capital necessarily create ethnic tension, class struggle, and gender inequality. In order to maintain the status quo, global capital creates structural inequalities that divide societies into hierarchies of the “rich” and the “poor.” Consequently, the main questions addressed in the study focus on if, how, and why globalization, carried out through the activities of MNCs, affects ethnic tension, class struggle, and gender inequality. In order to address the questions, a critical ethnographic paradigm was used to explore and explain the processes of globalization that affect the people’s lives and means of livelihood. Since this study’s focus is on a neglected population, a critical ethnographic paradigm was used to speak on behalf of the subjects as a means of empowering them by giving more authority to their voices. Consequently, this study has the possibility of not only speaking about the marginalization of the people of the rural communities and their livelihood but, also, speaking on their behalf in order to increase awareness of their present economic situation, aiming at the general improvement of their economic situation and quality of life. 

This study, therefore, provided the subjects an opportunity to articulate their economic problems and share their lived experiences in a region that has been devastated by the activities of oil MNCs. Data were collected and analyzed using both qualitative and quantitative methods. The specific methods used in data collection included in-depth interviews, questionnaires, and observation. The results obtained from the study support the hypothesis that the oil MNCs in Nigeria, in partnership with the Nigerian government, have engaged in a process of resource exploitation that has resulted in economic expropriation, political disenfranchisement, social dislocation, anomie and environmental devastation, of the people of the Niger Delta in particular. Considering the impacts of globalization on the Nigeria state, it is recommended that first, while we recognized the need to be part of the changing world; there is the need for the Nigeria state to take its environment and people/citizens into consideration in whatever policies she wants to adopt from the various globalization policies put forward by the west.

TABLE OF CONTENTS

Cover Page i

Title page ii

Certification iii

Dedication iv

Acknowledgements v

Abstract      vi-vii

Table of contents      viii-ix

CHAPTER ONE

INTRODUCTION

1.1 Background to the study 1

1.2 Statement of problem 5

1.3 Objectives of the study 6

1.4 Research Questions 7

1.5 Significance of the study 7

1.6 Research Method 8

1.7 Scope of the study 9

1.8 Limitation of the Study 10

1.9 Definition of Terms 10

CHAPTER TWO

LITERATURE REVIEW AND THEORETICAL FRAMEWORK

2.1 Literature Review            12 

2.2 Theoretical Framework 27

CHAPTER THREE

RESEARCH METHODOLOGY

3.1 Impact of Globalization 30

3.2 Social Services Provisions under Structural Adjustment and Globalization. 32

CHAPTER FOUR

CRITICAL ASSESSMENT OF GLOBALIZATION ON NIGERIA

4.1 Concept of Development 43

4.2 Influence of Globalization on the Economy of Nigeria 45

4.3 Policy Strategies for Development 54

CHAPTER FIVE

SUMMARY, CONCLUSION, RECOMMENDATIONS AND CONTRIBUTION TO KNOWLEDGE 

5.1 Summary 61

5.2 Conclusion 64

5.3 Recommendations 67

5.4 Contribution to Knowledge 69

References       73-76

CHAPTER ONE

INTRODUCTION

1.1 Background to the Study

The new system of colonization, being imposed on every nooks and crannies of the world recently is globalization. This important change in the world during the twentieth century, introduced the term globalization. Globalization as it is used here is a process whereby social relations acquire relatively distance less and borderless qualities, so that human lives are increasingly played out in the world as a single space. Social relations here is the countless and complex ways that people communicate with and affect other. One of the feelings that characterizes the recent world is the intense inter-dependence of states, many authors argues that the very notion of sovereignty has being shattered by globalization. States like Nigeria did not spring up one day to change the level of control they hold, rather the nature of the global village require the state to change, if Nigeria wants to participate in the International system, because International system has existing forms of dominant and subordinate relations.

Fafunwa (1998:5) defines globalization as the increasing breaks down of trade barriers and the increasing integration of world markets. Today globalization process can be seen as the creation of global village. This phenomenon in its stage now is tending towards one world community of a complex inter-relationship, a closely knit society, nations evolving a homogenous society on planet earth, a people with same political structure through the democratization process. Economic historians are quick to point out that globalization is no recent phenomenon.

The sixteenth and seventh centuries saw the emergence of dependence on world trade for national economic development and prosperity. The industrial revolution that is the late 18th and 19th centuries gave a fresh impression to globalization process. The last fifty years in particular contributed to the process in terms of peace and complexity. The advent of the jet age, Satellite Communication and the computer information technology saw the shrinking of the globe in terms of speed and comprehensiveness of global transaction as well the rapidity of fundamental societal changes. The last decades stressed the marginalization of Africa and indeed Nigeria; this revealed the continents glaring disadvantageous position with respect to the information revolution.

Twenty years after the dominant Lagos plan of action (LPA), a new Millennium Plan of Action (MPA) was initiated by African leaders. This plan of action was focused to reduce poverty and corruptions as well as Nigerians are taking steps in liberalization, privatization, deregulation and adoption of new investment codes to create prosperous conditions to attract foreign investors, Nigeria is at the fore front to promote economic reforms and free market to enable her to integrate properly into global economy. The financial sector including banking system is being recognized to play a pivotal role in the international financial sector as well as in the stock markets. Since 2000, Nigeria has become more globally in economic and socio-cultural activities. According to Albow (2000:27) globalization refers to all those processes by which people of the world are in co-operated into a single world society, which is global society. Globalization can also be defined as the intensification of the worldwide social relations which link distance localities in such a way that local happenings arc shaped by events occurring many miles away and vice versa. (Giddens, 2001:69). While Akindele et al (2002) posits that Globalization refers to the process of intensifying economic, political, social and cultural relations across national boundaries. It is thus aimed at transcendent homogenization of political and socio-economic theory across the globe. Ohuabunwa (1999:20) saw it as more related to capital intensification. According to him, it entails the broadening and deepening linkages of national economies into world wide market for goods and services, especially capital. It is in the light of the above that Tendon (1998:2) wined that globalization seek to remove all national barriers free movement of international capital mid this process is xe1erated and facilitated by supersonic transformation in information technology. Expanding on the subject under review, Nigeria’s experience in structural adjustment programme (SAP) and the growth of transactional and multinational organizations and democracy are some waves of globalization.

In any case, the globalization exercise has hanged on public policies in the attempt to a sustaining growth in Nigeria and Africa through policies taken is still being made in the industrialized economies and in some cases impairing macro economic management and sustainable development. The globalization process shaping the Nigerian economies in many ways has undergone the process of liberalization, regulation, privatization, economic reforms and democratization, all of which has impacted on the Nigeria state system. Many scholars have argued that the process of globalization has also intensify environmental degradation on the continent and global policies that are being made in the industrialized economies to promote globalization in the international system have some ways negatively impacted on Nigeria’s public policies, hence, on its state sovereignty. The work therefore united to examine the extent of this impact.

1.2 Statement of Research Problem 

The impact of globalization in Nigeria can not be ignored, because Nigeria has found her self in the dilemma of mixed foreign economic and development policies that she is not used to. That Nigerians now takes instructions from the West, multinational and international organizations set up by the same West is typical evidence in the whole sale implementation of International Monetary Fund (IMF) programme, such as structural Adjustment Programme SAP). The problem of implementing such policies is that they were not designed neither to suit the Nigerian situation nor for the benefit of the nations economy. All of these constitute the problems brought about by globalization, specifically as it impacts on Nigeria sovereignty.

1.3 Objective of the Study

The primary objective of this study is to highlight the impact of globalization on Nigeria. In line with this, the study will;

1. Examine the extent to which globalization has impacted on Nigeria.

2. Determine if such impact eroded the state sovereignty.

3. Determine the extent to which the external bodies like advanced industrial economies, multinational companies influence state policies and decisions.

 1.4 Research Questions

The following research questions are going to be addressed in this research work and the answers obtained will provide better understanding on the impact of globalization on Nigeria;

1. Has globalization affected the responsibility of the state towards its citizen?

2. Has globalization affected the sovereignty of Nigeria State?

3. Has globalization moved governmental powers to multinational companies and international organizations, such as the United Nations and Bretton Woods?

1.5 Significance of the Study 

The study of the impact of globalization is of immense importance due to the followings:

1. It will enable us to access or ascertain the impact of globalization in Nigeria.

2. It will identify and proffer solutions to the various problems faced by Nigeria in the global community.

3. It will show more clearly; how globalization policies can be effectively implemented.

4. Finally, most discourse on globalization centres on the economic, cultural, technological (communication impact).

1.6 Research Method 

Data were collected from secondary sources. The techniques used are detailed consultation on the internets, relevant textbooks, and journals.

The research method used by the researcher is the use of content analysis, which is none experimental and most useful because the area of study deals with contemporary issues which express dynamism and of which not much has been done.

 1.7 Scope of the Study

This research work is designed to examine the impact of globalization on Nigeria, to this end; the scope of the study will focus only on Nigeria, though attempts will be made to look at the African continent to buttress some of the points. This study will however examine the various economic policies such as Structural Adjustment Programme (SAP), as it affects Nigeria and the activities of the multinational corporations. It should be well noted that apart from economic critics, globalization delve also into social, political and cultural aspects, in the sense that globalization exercise hanged on public policies in order to attain a sustaining growth in Nigeria and Africa, policies taking is being made in the industrialized economies and in some cases impairing macro economic management and sustainable development. The globalization process shaping the Nigerian economies in any ways has undergone the process of liberalization, deregulations, privatization, economic reforms, democratization and interference on Nigerian state, all of which has impacted on Nigeria.

 1.8 Limitation of the Study

As a result of time and limited resources, only important issues relating to the research topic will be addressed. Also, very important is the limited availability of finance to carry out the research and it was not easy to travel far and wide to libraries to consult as was my wish. However, efforts were made to do justice to the research topic as the internet came handy.

1.9 Definition of Terms 

Globalization: This refers to the intensification of economic, political, social and cultural relations across boundaries; it is seen as the breaking of barriers and increasing the integration of world markets.

System: It is an autonomous unit of complex elements which interacts and capable of adapting within its environment.

Policy: This is a plan of action agreed or chosen by an individual, group, organization or government that influences the behaviour of people within a territory.

State: This is defined as human community which successfully claims within a given territory. It is the monopoly of legitimate use of physical force.

Economy: This is the relationship between production, trade and supply of money in a particular country or region.

Democracy: This is defined as government of the people, by the people and for the people.

Sovereignty: Complete power to govern a country. It is the main symbol of statehood and the legal basis of existence.

International System: It is made up of units that  are sovereign and independent states standing in interactions.