Globalization which is the rapid
integration of trade relations and productive, and investment decisions across
the globe by the economic agents; which employs and move investment capital and
technology around have created a great impact in the development of economy of
Nigeria. Today, some third world countries can now boast of improve technology,
easy communication, effective passage of information irrespective of the
distance. They are all products of the trends of time known as globalization.
All these out come of globalization encourages and improves the economic
standards of nations.1 In other words, they increase out put in
production.
Although, some countries are
revolting against globalization haven see it from the negative angle. For
instance, they see it as some thing that is expensive and imperialistic in
nature, due to the fact that their economy is poor and cannot keep pace with
its requirement. But it should be called in mind globalization does good more
than harm for example, the existence of global market helped Nigeria to have
business contact of the world. Though it has its ugly effects on Nigeria’s
economy, but it also helped to solve problems of unemployment, brought the existence
of some technology, infrastructural facilities etc in Nigeria. Therefore, all
nations should put on their best and embrace it so as to be on line of
development like the western counterparts. Hence, when a country is not
modernized, it’s marginalized. Also involvement in the global market should be
done with caution because the wrong application of global market or interaction
principles can lead to repression, inflation or deflation in a nation’s
economy.2
THE CONCEPT OF ECONOMIC DEVELOPMENT
Economic development entails those
structural reforms or processes put in order to develop any dilapidated
economy. Economic development leads to development which is a multi-
dimensional as well as a multi- disciplinary concept. When I talk about
development the same time I’m talking about it anti-thesis - underdevelopment
because they are two sides of the same coin. Economic development can be
measure through various statistical indices or methods such as gross domestic
product (GDP), gross national product (GNP), standard of living, per capital
income and thorough economic growth. Moreover, economic growth brings about
economic development although not all economic growth leads to economic
development. Thus, when a country is investing, establishing and growing
economically it is as well developing respectively. There are two common
measures of economic growth first is the rate of growth of nations real Gross
National product or net National product which tells us how rapid the economy’s
total real out put of goods and services is increasing. Second, is the rate of
growth of per- capital real gross National product which is a better measure of
the rate of increase of nation’s standard of living. This measure is only a
very crude approximation to the rate of increase of economic welfare.3
Small difference in the annual rate
of economic growth can make very substantial difference in living standard of a
nation. Thus, for economic growth to extend to development, it requires
continuous transfer of economic activity, exploration of the mechanism that
causes development. In fact, it requires elements of constant and careful plan,
involving the choice of goods or goals and charting of the means of attaining
such goals.4 Nigeria and some African countries is currently
undergoing an economic crisis of a magnitude unprecedented in its recent
history. Overall economic stagnation and a drastic fall in economic growth,
population exploration, food crisis, deforestation and growing external debt
burden have marked the African scene over the past few years. The continent is
rich in natural resources and has all the necessary properties which are
essential for economic development. The areas stretching from the south tip of
South Africa to the Northern borders of Zaire has been described as the “gulf
of minerals”. There is abundant agricultural land and a huge potential river
for irrigation, yet there is dearth of human resources which could be a great
asset. As a result of its economic problems, most of the sub-Saharan African
countries are poor and belong to the low-income gap.5
According to the World Bank report,
more than half of the sub-Saharan African population which are in the category
where the GDP per head is less than 400 U.s dollar. Thus, the situation in this
region is not only hampering the economic development process but also
affecting the very survival of millions of people.6
Similarly, development which hinges
on economic development should be therefore perceived as a multi-dimensional
process involving the re-organization and reorientation of entire economic and
social system. In addition to improve income and out put there should be
radical changes in institutional, social and administrative structures, popular
attitudes and even customs and beliefs. Also theories that concern primary with
exploration of mechanism that causes development should be adopted. This is
because there are activities that spark off development while others does not,
such theories assume that societies or nations develop as a result of the work
of exceptional and occasional forces. And where such factors are present,
development occurs.7
THE NIGERIAN SOCIO-ECONOMIC SITUATIONS
Nigeria as a country in African
continent consists of over millions of people. Nigeria is one of the richest
African countries when it comes to the abundance of national resource available
to the citizens of the country. She is endowed with vast and largely untapped
natural resources –minerals such as petroleum, lime stone, Tin, Columbine,
kaolin, gold, silver, coal, lead etc. It had many institutions of higher learning
with which it can provide research and development to the region of the world.
Nigeria has many rivers apart from River Niger which is the third largest river
in Africa which provides fishery occupation and serves as a means of
transportation. However, in agriculture, Nigeria has vegetation and climatic
factors suitable for agriculture.8
Prior to 1986, Nigeria was operating
more of a mixed economy in which government owned and ran most public
enterprises as well as mining, iron, and steel etc. Indeed, the introduction of
the IMF, World Bank, backed structural adjustment programmes in 1986 the
country turned into a capitalist economy with its major public enterprises
either privatizes or commercialized .also, the oil boom of 19705 brought with
it fundamental changes in the Nigeria economy such that prior to 1986, Nigeria
witnessed a traumatic economic crisis. For instance, there was a heavy
dependence of the economy on crude petroleum export as the main sources of
foreign exchange earner, and government revenue. By 1980, the oil sector which
accounted for 22% of the GDP provided 80%of government revenue and over 96%of
export earning.9 with all this in mind, one would think that Nigeria
would become an economic, political, and social successful country. But Nigeria
unfortunately is not rather it is classified as a third world country because
of her dependency on the economic development of other developed countries.
They struggle to implement democracy and to keep pace with the globalization
world. Nigeria economy is characterized as being a mixed economy (market) by
policy markers.
However, Nigeria has so many
problems that Hindus the economic development of their country they include:
1 Political instability
2 Building a united nation
3 Corruption
4 Unemployment
5 Poverty
6 Illiteracy
7 Low standard of living
END NOTES
1. Akujobi A. I ------- ‘Globalization and it’s concepts’, a
term paper presentation. Imo state
university, Owerri
(2003),
p. 18.
2. Ibid p. 19
3. Edwin Mansfield, ‘Economic principles, problems and
decision’( W.W Norton and company, inc.
London,
1980),p.2.
4. Ibid p.76.
5. Harjinder Sigh, ‘The Economic of Africa’, ( Kalinga
publication, Delhi, 1992), p. 37- 38.
6. The world Bank, sub-Saharan African- from crisis to
substantial growth- along term
perspective study,
(Washington, November, 1989), p.213.
7. NDU L. NJOKU,ERIC.
C. NJOKU, ‘Nigeria and the rest
of Africa in a Globalize world order’
(Avan Global
Publication Owerri, 2002), p. 7
8. J.C. Anyanwu, ‘Monetary
Economics: Theory, policy
and institutions’, (hybrid publishers ltd.
1993), p. 4.
9. Ibid p. 5
10. Gabriel Almond et al,
comparative politics today: A
World view, 7th ed. (New
York, Longman,2000),p.2.
11. Williams, Pat and
Falola Toyin, Religions impact on the
nation state, (Ashgate publishing company
Vermont,
1995), p.2
12. J. C. Anyanwu, Monetary Economics: Theory, policy
and institutions, (hybrid publishers ltd
1993), p.6
13. Ibid p.5
14. World development report, 1990.
15. Anthony o’connor, poverty in Africa: a geographical
approach. (Belhaven press, London
2000),p.3.
16. Ibid p.15.