This study examines the relationship
between the third world countries and the western capitalist countries. It
shows dependency as a phenomenon of relationship that gave rise to the economic
growth and development of the western world in expense of the third societies
which are economically underdeveloped, and lack the capacity and ability to
control the economic system or productive processes of the societies. In our
attempt to analyse and address this problem we used dependency theory for the
analytical framework while documentary research method was employed in
gathering and analysing data. Unequal relationship between Nigeria and
countries of the western world coupled with negative role of the Nigeria
economic elite was discovered as, the major problem. The study revealed that
this problem is historically rooted in foundation of the society, as such,
ordinary measures are not suitable, rather concrete type in form of socialist
transformation is recommended by the study.
TABLE OF CONTENTS
of Contents v
1.0 Background of the Study 1
1.2 Statements of the Problems 2
1.3 The Objectives of the Study 2
1.4 Significance of the Study 3
1.6 Research Methodology 4
1.7 Scope of the study 5
1.7 Limitation of the Study 5
1.8 Definition of Terms 5
TWO: LITERATURE REVIEW
and Colonial Make - Up in Nigeria 8
2.2. Conceptualising Dependency Attitudes in
THREE: HISTORICAL OVERVIEW
3.1 The Pre-Colonial Political Economy of
3.2 The Colonial Political Economy of Nigeria
3.3 The Post-
Colonial Political Economy of Nigeria 35
CHAPTER FOUR: GENERAL
4.1. The Role of Multinational Corporation in
A case study of Shell –BP 43
4.2. Negative Role of Multinational
4.3. High Rate of Importation in Nigeria 49
4.4. Foreign Loan in Nigeria 53
Role of International Financial Institutions in Nigeria:
A case study of World Bank and
International Monetary Fund (IMF) 59
4.6. Negative Roles of Nigeria Economic Elite 62
4.7 Foreign Oriented Policies in Nigeria:
A case study of NDE AND
Structural Adjustment Programme (SAP) 69
Economic Empowerment Development Strategy (NEEDS) 72
4. 10 Lack
of Self-Reliance 78
CHAPTER FIVE: CONCLUSIONS
5.3 Recommendations 81
Background of Study
Economic dependency is the lack of
capacity and ability to control the economic system or productive process of a
society such that the society as a state depends on foreign developed economy
states for leadership and control through regulations and some economic
institution. The country that are depending on the rest are mostly poor
countries of the third world, Nigeria is a typical poor third world country and
underdeveloped that depend on the western world for decision and implementation
of economic policies, thereby contributing to the economic development of the
west to her own detriment. For example, (SAP) structure Adjustment programme of
1986, National Directorate of employment (NDE) of 1986, Petroleum Trust Fund
(PTF) poverty alleviation programme etc. all seems to have end in failure after
gulping in estimate material and human resources, funded with loan and the
Since the economic structure is
disarticulated, being the main structure; the foundation; on which raise the
political super structure; and which controls both the intellectual and
material production, the implication is the underdevelopment of the entire
society. The state of underdevelopment of the entire society raises serious
alarm in whole third World countries and the international community.
Historically, most of the third world countries suffering dependency, passed
common rigorous stages of development from
1.2 STATEMENT OF PROBLEM
The followings are the study stated statement of
are the major cases of dependency in Nigeria?
the Nigerian Economic Elites have any role to play in solving the dependency
rate of the country?
the hiccups and the possible implications of this to the Nigeria project?
are the roles of Multinational Corporation to the Nigerian Economy?
the Nigeria dependency ratio affects Human capacity development in the
1.3 OBJECTIVE OF THE STUDY
It is the objective of this study to
examine certain crucial concepts that are closely related to the problem of
economic dependency and underdevelopment in Nigeria, specifically:
i. the study will investigate the major case
of economic dependency in Nigeria.
ii. To discover the impact or the role
Nigerian economic elite in the economic dependency problem of the country.
iii. To examine the role of Multinationals in
the economic dependency of Nigeria.
iv. To determine the cost benefit effect of
the Nigerian economy to the populist
v. To examine the implications of Nigerian
dependency ratio to the development of human capacity of the country.
1.4 SIGNIFICANCE OF THE STUDY
This study is
significance in several ways. Firstly, dependency is alien and at the same time
imported to dwarf the recipient IQ about self-reliance and independent, apart
from the ripple effects on the society, people and other sectors, it is highly
exploitative. We now know the dependency render a country useless and may even
keep such state in a conspicuous consumption paradigm. It only take inner-will
and commitment for a particularly the Leadership of the state to provide
positive direction so that dependency can be gradually alienated.
international organisations and imperialist states sees Nigerian oil as the
single largest item of the world trade that they cannot afford to missed like
Shell BP position in Nigeria. The global economic meltdown and fallen prices of
crude oil at the international market more than before makes it imperative for
Nigeria to greatly depend on them the more.
is an obvious fact that dependent on foreign goods have destroyed our values
and prestige because of our failures to develop human capacity. Investment and
development also suffers because of over dependent on foreign aids, loans and
donations among others to which this study tends to disabuse in totality,
thereby projecting our own efforts to be relied on. The subsequent reduction in
unemployment will reduce poverty which has been identified as bane to
apart from the above, when people will begin to grow home made goods and even
seek initiative to develop more ideas about being self-reliant. In essence,
more money will be available to individuals, organizations involved in the
sector as well as the entire country.
the area of social welfare, development rather than dependency, particularly on
the economic arena will attractive positive effects on the health, industry,
development and well-being of Nigerians.
This work will serve as material to
other researcher and in practical it will serve as a tool to the government
guiding them on implementation of policies, this policies shall serve as a
guide to Nigerians development rather than dependent.
This work, prescribes how to manage
the nations resources, for the benefit of the general citizens, and this will
determine the relevance of the existing government policies.
1.5 RESEARCH METHODOLOGY
This involve documentary research
method was used in gathering and analyzing data for the project work. Again
review of relevant textbooks newspapers internet and all relevant publications
and journals on economic dependency are used in this work. Therefore the method
of data analysis is explanatory in nature.
Since the method of data is based on
secondary source the method of data analysis is based on the qualitative method
of data analysis, which is explanatory in nature. This would help in finding
out the degree of effectiveness of what led to third world dependency.
1.6 SCOPE OF STUDY
This study focus on what led to the
third world dependency Nigeria to be precise. However, this study is confined
on the underdevelopment of Nigeria.
1.7 LIMITATION OF STUDY
The work is limited in many respects.
These include the long year of neglect that had made it impossible to have
enough literature for the study. Logistic and poor funding had also halted the
necessary development in the course of the investigation. Poor logistic and
fund for traveling to the site also acted as limitation to the duration of the
work. The study also experienced hiccups that acted as a hindrance to early
completion, especially on the issue of attend to the researcher by the library
attendance. Also, lack of security and the role of the tradition indigenes
trying to obstruct and impose problems to the researcher. The absent of elderly
men and true worshippers make the study tedious and cumbersome.
1.8 DEFINITION OF RESEARCH TERMS
To avo1d distortion and
misinterpretation of words there is need to define some concepts used in this
This is the process whereby society or social institutions change or move from
traditional or less developed ones to those that characterize the developed
ones. For this work, modernization is seen as involving a complex or changes in
institutions or societies for the betterment of citizens.
Economic Dependency: This means depending on the developed countries for over economic
problems, that is the wholesale importation of western art crafts for our
developmental purposes, we depend on the west for goods and services which we
cannot create for ourselves with the resources available at disposal.
Economic Development: Is the ability of a country to deal with its environmental through the
knowledge of science and technology and applying this in changing its
environment. Therefore, development connotes training in the art of using local
resources and creative human energy in the problem solving rather than a
wholesale limitation of the path to a good life that some societies have
Underdevelopment: This means economic backwardness which results from the inability of a
country to deal with its environments, the underdevelopment is characterized by
lack of indigenous industry inadequate production of food unscientific
agriculture, underdevelopment is not absence of development but it makes sense
only as a way of comparing levels of development. Underdevelopment is very much
tied to the fact human social development has been uneven and from a strictly
economic view point, some human groups have advanced further by producing more
and becoming wealthier.
Comprador Bourgeoisie: These are the internal bourgeoisie that is those that help
the westerners in the control of means of production.
These are the individual that own and control the means of production to
achieve that with the help of the comprador in exploiting the nation.
Multi-National Corporation (MNCs): These are foreign oriented companies in less developed
are aids given to less developed nations or countries (LDCs).
Economic Elites: Economic elite are the individuals that help in influencing economic
policies in some countries of the world.
Capitalist Countries: These are western allied nations that situate in Europe and North
America and have colonies in Africa and other third world countries.
Financial Institutions: These are monetary or fiscal institutions that give loan to
other countries especially third world countries.
Economic Policies: These are guidelines used in the economic development of a nation. In
Nigeria, we have (SAP) Structural Adjustment Programs, National Directorate of
Employment (NDE), etc.
These involve the movement of goods from outside the country to another, in this
sense it involves the western capitalists and third world countries.
This involves the movement of goods from a country to other countries.