A RESEARCH PROJECT SUBMITTED TO THE DEPARTMENT OF
HISTORY AND INTERNATIONAL RELATIONS
FACULTY OF ARTS AND HUMANITIES
IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE
AWARD OF BACHELOR OF ART (B.A)
TABLE OF CONTENT
Title page
Approval
page
Dedication
Acknowledgement
CHAPTER
ONE
1.1 Introduction
1.2 definition and origin of globalization
1.2 concepts & process
End notes
CHAPTER
TWO
2.1 Globalization and the third world
2.2 Globalization new version of colonialism
CHAPTER
THREE
Globalization
and Economic Development in Nigeria.
3.1 The concept of economics
3.2
The Nigeria socio- Economic situation
i. political instability
ii. Building a unified nation
iii. Corruption
iv. Unemployment
v. Poverty
vi. Illiteracy
viii. Low standard of living
CHAPTER
FOUR
The
impacts of globalization on the Nigeria economy.
4.1 information and communication technology
system
(I C T S) positive impacts on
1. Communication
ii. Employment
iii. Education
iv. Health
v. Agriculture and industrial development
vi. Trade and commerce
4.2 The challenges of globalization in
Nigeria
i. Poverty
ii. Lack of adequate infrastructural
facilities
iii. In adequate power supply
iv. Misconception about globalization
v. Lack of free competitive economy
vi. Not embarking on serious Technological
revolutions
End
notes
CHAPTER
FIVE
Conclusion
End
notes
Bibliography
CHAPTER ONE
1.1 INTRODUCTION
Globalization is a process of integration internationally; human interaction
over long distance which has existed for thousand of years. The over land silk
road that connected Asia, Africa and Europe is a good example of transformative
power of international exchange, philosophy, religion, language, arts and other
aspect of culture spread and mixed as nations exchanged products and ideas.
Moreover, the word ‘globalization’ was derived from the root word “globe” which
means” sphere” an English word from latin- globus meaning round mass sphere,
ball, carrying the sense of planet earth or three dimensional map of it, from
around 1550.1
Globalization refers to an extension
beyond national boundaries of age – old market forces. It refers sometimes to
the mobilization of people (labour) and knowledge (Technology) across
International borders and besides. It has a broader reference to cultural,
environmental and political activities with world wide dimensions.
Globalization process points to the effort of making the whole world a global
community and in practical, it embarks on a bold programme of making the
benefits of our scientific advances and industrial progress available for the improvement
and growth of underdevelopment or underdeveloped areas of the world.2
However, there are many economic
impacts of globalization on the third world countries which will be discussed
in a chapter of this work. For instance, there are both negative and positive
impacts, example, in Nigeria, though the economy is not stable but the existence
of Technology innovations through international integration, there have been an
opening up of vast new possibilities for production and exchange. Innovations
like internet have made it possible to access information and resources across
the world and to coordinate activities in real time. On the other hand through
this global technology Innovations our resources have been sapped, which helped
to make the economy of the nation dwindled. Also the local industries could not
even compete with other multinational foreign companies as it was recorded also
in 2000 that ten multinational foreign companies control eighty six percent of
two hundred and sixty two dollars of telecommunication business of the third
world countries. The concept and process of globalization with regards to
African economic development will be discussed.
Among other things, the definitions,
origin of globalization as well as the different views of globalization and the
third world countries will be highlighted. For instance, an agreement was
reached by major developed countries to lay down the framework for
international monetary policy commerce and finance and the funding of several
International institutions intended to facilitate economic growth multiple
rounds of trade opening simplified and lowered trade barriers. This policy
thus, was believed to promote global village and to put an end to economic
repression, but on the other hand it made the rich countries richer and left
the poor one poorer.
Significantly, this work will be
properly presented in a way that it would be of an immense help to students,
individual, or group of individual as well as those who mighty be carrying out
further research on the topic. Besides, the governments, economist, policy
makers, multinational cooperators etc might through this work understand what
globalization is, it’s process and concept as well as how it affects the
economy of its nation.
1.2 Definitions and Origin of Globalization
Globalization was earliest used as
the noun term in 1930, in the publication entitled towards New Education, to
denote a holistic view of human experience in education. Since the inception of
the concept of globalization in the 19th century, it has inspired
competitive definition and interpretations with antecedents dating back to the
great movements of trade and empire across Asia and the India Ocean from the 15th
century onwards. Thus, the word globalization is an English word derived from
the root word “globe” which means “sphere”, and it’s a word gotten from Latin
“globus”- round mass sphere, ball, carrying the sense of planet earth. However,
globalization is the trend of time that involves the integration of countries
at the International level to eradicate and remove barriers that hinders the
free flow of trade, commerce e.t.c.3
Roland Robertson, professor of
sociology at the University of Aberdeen, was the first person to define
globalization as the compression of the world and the Intensification of the
consciousness of the world as a whole.4
Globalization according to oxford
advanced learned Dictionary is defined as the fact that different cultures and
economic systems around the world are becoming connected and similar to each
other because of the Influence of large multinational companies and of improved
communication.5
Martin Albow and Elisabeth king have
defined globalization as “…………all those process by which the people of the
world are incorporated into a single world society.6
The Journalist Thomas L Friedman
popularized the term “flat world”, arguing that global trade, out scouring,
supply-chaining and political forces had permanently changed the world, for
better and worse. He asserted that the pace of globalization was quickening and
that its impacts on business organization and practice would continue to grow.7
In the consequences of modernity, Anthony Giddens uses
the following definitions in explaining globalization, globalization can thus
be defined as the intensification of world wide social relations which link
distant localities in such a way that local happenings are shaped by events
occurring many miles away and vice versa.8
Swedish Journalist Thomas Larsson,
in his book the race to the top defined globalization as the process of world
shrinkage of distance getting shorter, things moving closer. It pertains to the
increasing ease with which somebody on one side of the world can interact to
mutual benefit, with somebody on the other side of the world.9
The United Nations Economic and
social commission for Western Asia defined globalization as a widely used term
that can be defined in a number of different ways. When used in an economic
context it refers to the reduction and removal of barriers between national
borders in order to facilitate the flow of goods and service, capital, and
labour, although considerable barriers remain to the flow of labour….10
Globalization is not a new
phenomenon it began towards the end of the nineteenth century, but it slowed
down during the period from the start of the First World War until the third
quarter of the twentieth century. This slow down can be attributed to the
inward-looking policies pursed by number of countries in order to protect their
respective industries…. However, the pace of globalization picked up rapidly
during the fourth quarter of the 20th century.
Tom G. Palmer of the Cato institutes
defines globalization as the diminution or elimination of state enforced
restrictions on exchanges across borders and the increasingly integrated and
complex global system of production and exchange that has emerged as a result”.11
Globalization has existed from the
early history of the world with the rise of trade links between summer and the
Indus valley civilization in the third millennium B.C.E; according to German
historian, an economist and Sociologist Andre Gunder Frank argument. The modern
globalization was born and bred at the Breton woods conference with its’
institutional agents in 1945. By this time, almost all the third world
countries were under colonial domination, subjugation and control. This immediate
post-war economic conference which plotted the trading arrangements of the
world was established by Core countries with the G8 and the United states in
Particular. An agreement was to lay down the frame work for international
monetary policy, commerce and finance, and the founding of several
International institutions intended to facilitate economic growth, multiple
rounds of trade opening, simplified and lowered trade barriers. Also they aimed
to conquer the third world countries economically, culturally, psychologically
and socially, however, making globalization a western driven paradigm for
extending economic plunder, political domination, and social inferiority etc of
the third world countries. Africans argue that they are not against the normal
existence of globalization but loathe corporate driven globalization. This is
because the multinational company’s objective is to make profit and to
repatriate hard capitals to the metropolis. What the core countries fail to
understand is that globalization demands work for both the poor and the rich
counterpart. It means that the world is a global village, a term which captures
the independence of the global and local.12
According to the oxford dictionary,
the world Globalization was first employed in the 1930. It entered the Merriam-Webster
dictionary in 1951. It was widely used by economist and social scientist by the
1960s Marshall Mcluhan, Canadian who analyzed the impact of mass media on
society, coined the term” global village” in 1962.13
Following the fall of the Berlin wall
and the end of the cold war, globalization became a buzzword as we seemed to
have become one world, one planet or one globe. The word globalization was
ready to become a buzzword because it was already popularized by “Ted Levitt’s’’
powerful thinking which is still studied and talked about today to such an
extent that many truly believe that he invented the world. Unfortunately,
globalization also became a lightening rod for anyone who was unhappy about
something. The word was most usually applied to the economy when different
national economies became integrated through flow of goods and services,
capital and labour, that is global market. The world can also be applicable to
global culture, society, community, ideas, beliefs e.t.c.14
This growing world wide integration has
produced a whole series of consequences-economically, politically, culturally,
and environmental, unfortunately some of these consequences can be negative.
The United Nations publications on Human Development Report 1999, explained
people live around the globe are linked more deeply, more intensely, more
immediately than ever before. This opens many opportunities giving new power to
good and bad.15
Afro-centric scholars query the
intentions of multinational companies whose strategy of course dictated from
their home countries in the metropolis is based on the criteria of prodigality
and market slave. This is against the development needs of the periphery
countries. For example, the chairman of a U.S owned British subsidiary put the
duties and loyalties of a multinational company executive very dearly. This
arrangement under the United States led imperialism against the poorest of the
world’s poor. Many developing countries remain marginalized on any significant
benefits form the globalization of trade. If globalization means the free
movement of people (Labour) goods and services across borders, then why is it
that it doesn’t apply to African expatriate who wants to work abroad?16
According to the New Africa magazine
today, economic migration is a dirty term because the white man who came to
Africa as an economic immigrants (without any visa), who settled, worked and
send money home (gold, diamonds, cowries, slaves and more) in his case to
develop his country is now pulling the leader.17 Globalization
existed from the beginning to ensure economic integration though it left much
to be desired.
In conclusion, globalization is the
process enabling financial and investment markets to operate internationally,
largely as a result of deregulation and improved communications. The emergence of
a single world market dominated by multinational companies since 1980s, leads
to a diminishing capacity for national governments to control their economies.
It’s the process by which a company expands to operate Internationally.18
1.3 Concepts
and Process of Globalization
The last few decades have witnessed
the growing impact of the two distinct global trends. It has a profound implication
for the world economy-rapid growth of information technology, and the increased
global integration of trade and capital flows. Countries at various stage of
development are increasingly forced to take account of an ever expanding
interconnection of economies in the management of their national economies. It
is however, important to note that the history of interconnection of national
economies is as old as the history of organized nation states. In a sense,
globalization process can be dated to the late 19th and early 20th
Century. Some historians have insisted that there was something very special
about the imperialism which was conventionally dated from 1870 to 1914. That it
was not simply a linear continuation of previous national expansions. This
period witnessed the rapid expansion of Europe into other parts of the world.
Africa was simply divided up early by open agreement among the powers that
exist in Berlin in 1884 and 1885 conference. The colonization process created a
more integrated world economy controlled by the metropolitan countries this was
the first globalization process.19
This process followed revolutionary
changes in the way production was organized in Europe that gave it a
competitive edge over the rest of the world. It is clear that the present trend
of globalization differed form the earlier globalization process.
Participation in the earlier one was
shallow and often based on unfavorable terms especially in Asia and Africa.
They reported exclusively primary products and capital flow mainly to support
such enterprises to develop capacity in natural resources extraction and
maintain the support of friendly government. The development today can also not
be seen as a linear continuation of the process of interconnection of the
world’s economies in the second part of the century. We are witnessing a sudden
jump in the process fuelled by the development in information technology.
Today, developing countries have the opportunity to play a far active role. Those
promoting the globalization process would argue that it had led to better products,
lower costs, more jobs and rapid increase in productivity and that is
increasing global welfare even if such improvements are not evenly distributed.
They argued that the potential for large gains is enormous. It is generally
acknowledged, however, that whether these gains are realized or not will depend
on the number of critical factors. The Policy of choice made by developing
countries governments for example would determine the extent to which they can
benefits form the dividends of globalization. The world is witnessing ever
strong links within the global market caused by a combination of powerful, cost
reducing and technological changes, induced policy changes and political developments.
The emergence of uni-polar world power following the collapse of the Soviet
Union has created a global environment in which western hegemony is going
unchallenged. The political force behind the globalization process is presently
very strong and dominant globally. A new world order is being created with
clear international division of Labour. The harsh reality of the resulting
global market is that policy failures are punished hard. Developing countries
can no longer remain docile, waiting for grants and aids for their
developments. The emerging consensus is that they must stand on their own
within the global market place. Political transformation, structural
adjustments are dictated by the global market of which they have no control.
The agents of globalization argue that the new global market place is a source
of opportunity where private initiative and industry bring swift rewards.
Developing countries are expected to appreciate these facts and to develop the
internal capacities to respond to them. In parts of the industrial and
developing world, however, there remains a great deal of concern as their
processes still regarded a threat to social and economic security.20
According to Mike Kwanashie,
“Globalization as a process of integration economic decision making such as the
consumption, investment and saving process all across the world aims at
creating a global market place in which increasingly, all nations are forced to
participate”.21 Key elements of this process are; the
interconnection of sovereign nations through trade and capital flows,
harmonization of the economic rules that govern relationships between sovereign
nations creating structures to support and facilitate dependence, inter
connection and creation of a global market place. Another perspective of
globalization goes beyond the economic sphere. The opening which information
technology has created impact on most aspect of human life (culture, religion
and values) are exposed more than ever before to different alternative views.
The fear of cultural imperialism under scores a point that globalization could
also be seen as a process of harmonization of different culture and beliefs.22
Some elements of hype can be said to
be associated with the concept of globalization. There is the misconception
that this process would eventually result in a borderless world. The world of
separate nation sates is said to be ending if the process of globalization is
allowed to run its logical course. The fact that the process aims at increasing
inter-border relationship does not automatically mean an elimination of the existence
of nation states. Globalization is a process of expanding economic integration
among states and this does not necessarily imply future breakdown of borders
looking at it from an economic perspective, it does not even required
harmonious or integration of social and political systems. It is simply a
process of intensified and broadened Interdependence among nations. The process
simple creates a global market place, which with the development in
communication technology can be accessed by virtually anyone from any location.
Internal laws of nations would still have to operate, regulating how
individuals and groups would be affected. The process opens up a world of
opportunities for business. It links them to markets which were hitter to
unknown to them and provides prospects for growth. The changing structure of
the world’s economy has been observed and how it facilitated the growing trend
of globalization. However, the dynamics system of globalization process should
be examined with the collapse of the Soviet Union and an apparent domination of
the world economic system by the western capitalist economies. The logic of
capitalist expansion leads to the creation of a global market in which western
capital seeking more profitable outlets need the integration of the world
economy and access to all parts of the world. Ironically, the first step
towards the present trend of globalization led by the developed countries of
the world started with regionalization. The intention of regionalization was to
provide a common market to the exclusion of others. It was to protect the
interest of domestic capital within the region and confer on it advantages that
would make it strong to compete around the world. Capital needs a secure
environment to thrive. It requires stability and harmonization of laws. Common
markets, however seem to have reached their limits for Western capital so
increasingly the focus has shifted to regional blocs collectively doing
business with the outside world. Initially, this process was seen as contradictory
to the free Trade doctrine preached by western world them selves. But it has
now become clear that it is strategy for breaking into a group. Regional blocs
often tend to encourage common laws which enable business once. It establishes
in one country to gain access to all others in the blocs. The fact today is
that while pushing for greater trade liberalization, which in most cases means
opening up of new markets in developing countries for western capitals and
goods. This is a deliberate strategy by the industrialized world to maintain
their hegemony over the new world order. This process of globalization has
fundamental implication for the developing countries who on the one hand are
being asked to open up while on the other hand, find the world market
impossible to penetrate. Reconciling the process of globalization with the
guest for regionalization for example the North Atlantic free Trade Area
(NAFTA) involving the United States, Mexico and Canada, the European Union and
Association of South East Asian nations (ASEAN) involving some nations in South
East Asia. The logic of globalization has to be explained to the developing
countries. Is globalization leading Nigeria to a nation without borders-The
regional blocs sought to protect local capital by providing secured
environment. They see the growth of the region as predicted on their ability to
collectively protect the interest of capitals, common laws, integrated markets,
liberalized environment attract capital flow and spur growth in the region. The
experience so far has been that while the developed countries are projecting
their regionalization projects, business organization within these countries
are already taking advantage in telecommunication to build global companies.
One important aspect of the globalization process is the spread of global
companies. Regionalization has provided bases for the emergence of strong
global companies with interest allover the world ready to exploit any
advantages provided23.
The phenomenon of the “emerging
markets” and emerging economics” in recent years it show the extent of the
penetration of western capital into new areas. The response of this economy to
the urge for the international finance agencies, opened up as led by the
massive penetration of western capital. Global companies take advantage of openings
to increase their share of the world market. Multi-national corporations have
been a major vehicle for the globalization of manufacturing, in which
relatively cheap Labour in developing countries has been equipped with capital
and modern techniques of production. Events in recent years in south East Asia
raises question as to the sustainability of this process for the growth and
development of individuals countries.24
The role of the financial markets in
the process of globalization is also very important. The globalization of the
financial market means gain for private capital, which can now flow around the
world in search of higher returns. Developed countries have for long recognized
the importance of the financial markets for financial development. Financial
capital now responds rapidly to new profits opportunities. They equally
recognized that financial capital is attracted on the basis of sound economic
fundamentals. The industrialized countries are very selective in those aspects
of globalization which allow international migration of people in search of
work. Globalization of Labour markets should be a logical part of the
globalization process but this is the slowest process of all. Countries are
still very reluctant to liberalize the flow of population between borders.25
END NOTES
1. Http://www.tigweb.Org/youth-media/Panorama
2. Http://www.tigweb.Org/youth-media/Panorama
3. Http://www.lares net/levit.pdf
4. Robertson
Roland, (ed) Globalization social theory and global culture (London 1992):
sage.
5. Oxford Advanced learner’s dictionary
7th ed.
6. Albrow,
Martin and Elisabeth King (ed.) Globalization, knowledge and society (London 1990),
p.8.
7. Http//www.en.wikipedia.org/wiki/globalization
8. Giddens
Anthony, ‘The consequences of modernity’ (Cambridge; polity press 1991), P. 64.
9. Larsson
Thomas, ‘The Race to the Top: the real story of globalization’ ( Washington
D.C. Cato Institute), P.9.
10. The “battle of Armageddon” October, 1879.
page 365
370.
11. http://www.lapres.net/levit.pdf
12. John
Ronnie short, An introduction of political Geography, (Rutledge 1954), p.11.
13. “Globalization”,
Oxford English Dictionary on line September 2009. Retrieved July 2012.
14. Levitt
Theodore, ‘the globalization of market’ Harvard Review. May-June 1983.
15. The United Nations Publication on human
Development
Report. (1999), p.2
16. Ibid. p 24
17. Baffour Ankomah, ‘New African’ (IC
publications May,
2001).
18. Collins
English Dictionary, version 2. 17. O. Vendor Mobile systems. July 2011.
19. Akujoobi A.I …. ‘Globalization and its
concepts’ a term
paper presentation. (Imo State
University, Owerri,
2003), p.20
20. Mike Kwanashe, C.B.N, ‘economic and
financial review’,
(1998), vol. 36, No. 4.
21. Ibid. p. 341
22. Ibid. P. 342
23. Ndu L.
Njoku, Eric C. Njoku, ‘Nigeria and the rest of Africa in a globalize world
order’. (Avan Global Publication Owerri,
2002), p.4
24. Ibid p. 10.
25. Ibid p. 11