The Positive and Negative Effects of Globalization on the Nigerian Economy.
LITERATURE REVIEW AND THEORETICAL FRAMEWORK
2.1 Literature Review
There has been a consensus among the scholars of the Third World extraction that globalization is not a new phenomenon. The new phase has however assumed new dimension to further undeveloped and entrench dependency in Africa. According to Stiglitz (2002:62), globalization is:- A new social architecture of cross-border human interactions – in which the integrity of the national territories state as a coherent political economy is eroded, as the functions of the state became re-organized to adjust the domestic economic and social policies…
Again, Nabudere (2000:16) sees globalization as an unequal process of capitalist development. He posits that uneven and unequal economic opportunities are characteristics of the present capital modernization. This process is reflected in the unequal integration and fragmentation of many communities, especially, what came to be called the “The World”, in the process f the unfolding economic, political, social and cultural activity.
More concretely, Ake (1994:22) views globalization as a March of capital all over the world to search for profits, a process reflected in the rich and power of MNCS. He asserts that; It is about growing structural differentiation and functional integration in the world economy; it is about growing interdependence across the globe; it is about the national-state coming under pressure from the surge of transnational phenomenon, about the emergence of a global mass culture driven by mass advertisement and technical advances in mass communication, (Ake, 1994:22-23)”.
The foregoing has shown that the roots of African underdevelopment and Dependency lie with the capitalist expansion globalization are therefore a phase in the process of this expansion. Hoogvelt (2001:68); submits that as an instrument of imperialism, globalization is linked systematically with social exclusion. This means that as globalization proceeds, more and segments of populations as well as whole areas and regions are being excluded from its benefits.
In the same vein, Nnoli (2000:173) consider globalization as imperialism. According to him, globalization is a dynamic phenomenon, which changes in accordance with the laws of capitalist expansion. Consequently, it has assumed different focus in the past such as slave trade, legitimate trade, colonialism and nee-colonialism today, it is simply globalization.
It is implicit therefore that globalization is a relation of domination and exploitation between nations and groups of nations. This relationship takes place at different levels of economic, political, social and so on. In this contribution, Oyebody (2002:48) maintains that the different economic and political strategies such as globalization, liberalization. Privatization, foreign aid and the activities of MNCS are instruments of under-developing and entrenching Dependency in Nigeria and the whole of the developing world. Continue reading The Positive and Negative Effects of Globalization on the Nigerian Economy.