Buhari: The Awaited Messiah - By Bala Yahaya

Nigeria has over the years witnessed a lot of political instability which no doubt, contributed to its economic backwardness.  The country’s problem is certainly not of lack of resources but of managing them.  This is because, the Almighty in his wisdom, has endowed the country with abundant natural and human resources; talk of black gold, limestone, coal, gas, arable land, population, favourable climatic conditions, etc.  When one takes cognisance of all these natural endowments, he finds it difficult to understand why 42 years after independence; Nigeria is still a dwarf in the realm of economically tall nations.

The major problem with this country is clearly that of lack of purposeful leadership that could adequately utilise the nation’s potentialities and launch it to its rightful position in the comity of nations.  This belief stems from the fact that the selfless leadership styles exhibited by Nigeria’s early post-independence leaders saw to the putting up of viable structures such as higher educational institutions, parastatals, hospitals among many others.  It was an era when leaders saw themselves as leaders and not rulers of conquered territories.  They were so selfless that some of them even died without owning houses of their own in spite of being in power for some years.

Closely following this era, was the era of the earlier military incursions into politics.  This brought about a period of economic mismanagement and political maladministration.  The nation was able to absorb the shock of inefficient leadership at that point in time because of unprecedented enhanced national income occasioned by the oil boom.   The nation was fortunate enough to later have a new military administration led by General Murtala Muhammed of blessed memory who was able to, in unequivocal terms, make the point that with a purposeful and visionary leadership, Nigeria could be a truly independent nation that could define its priorities and take its destiny into its hands without succumbing to the whims and caprices of neo-colonialists. Unfortunately the administration was short-lived. The end result of this was that Nigeria continued to suffer from leadership crisis, which extended far into the civilian regime of 1979-83, a period that was characterised by colossal acts of high level corruption, crippling political violence, gross financial indiscipline, political assassinations among many other vices.

   
Amidst the storm came a messiah in the person of General Muhammadu Buhari whose leadership style saw to the return of sanity and culture of discipline in our society.  For the first time in many years, the monster of corruption was ably tamed, the queue culture was restored, environmental cleanliness became a way of life rather than a novelty, financial indiscipline, late coming, bribery and abuse of office by public office holders were effectively subdued, inflation was practically checked, crime rate significantly reduced and ultimately the country was once again put on the enviable track of self-reliance, economic recovery and enhanced national image. 

Unfortunately, like the Murtala/Obasanjo regime, this administration was also short-lived.  The gargantuan achievements and reconstruction efforts of the astute administration were gradually destroyed through successive years of military coups and political intrigues aimed solely at protecting the selfish interests of the perpetrators.

When therefore, the General Abdulsalam Abubakar-led regime took over the reigns of power after the demise of General Abacha and unveiled the shortest political transition programme ever in the history of Nigeria, expectations were high among Nigerians that democratic governance which has been acclaimed as the best form of governance was about to be enshrined and the country will once again breath the fresh air of freedom and enhanced standard of living.

However, four years after the entrenchment of democracy, Nigerians are yet to witness any significant difference in their standard of living.  Each time, the PDP led government talks about its economic achievements for the country, the common is always at a loss.  Perhaps one needs to have a Ph.D. in economics to really understand the way in which our economy has improved in the past four years.  The whole scenario became even more frustrating when people like Professor Sam Aluko, a world class economist declared that the Late Abacha was a better manager of the economy than OBJ.  OBJ in turn described the erudite scholar as being senile.  But senility or not, the fact remains that the old man has spoken his mind and by extension the minds of millions of Nigerian masses whose standard of living continue to fall by the day with attendant unfortunate effect of having to suffer starvation in the midst of abundance. 

One beauty of democracy however is that it always makes provision for a pay day – a day in which the masses will re-endorse a performing administration and reject a still-born one with the power of their votes.

Nigerians have a cause to thank God that General Buhari, with all his apathy towards partisan politics have answered the SOS calls of Nigerians to come and once again administer his efficacious  Buhariphenicol pill which will certainly cure Nigeria of its numerous ills.  Under Buhari, Nigeria shall witness a sincere anti-corruption crusade, which will deal decisively with any government official, ministry or government contractor found indulging in the act.  Buharism is certainly not the leadership style that will sack an Auditor General for publishing an audit report which every common man on the street know is true.  It is not the type of administration that will attempt to plant ethnocentric stooges in strategic government positions so as to cover its corruptive activities while pretending to be fighting corruption by merely chasing shadows.  It shall certainly not be the type of administration that will send troops to destroy innocent, unarmed civilians and raze down their villages on account of an offence many knew nothing about instead of using the machinery of government to fish out the guilty ones.  With Buhari in power, Nigeria’s sunrise is certainly in sight.

Globalisation and Development in Africa (2000-2011): (A Case Study of Nigeria) - Being a PGD Public Administration Project Work By Bala Yahaya

ABSTRACT

The title of this study is Globalisation and Development in Africa (2000 -2010): A Case Study of Nigeria.  In it, the concepts of globalisation and development have been brought under focus.  The features and instruments of globalisation as well as Dudley Seers’ Development theory which forms the theoretical framework of the study have been duly examined. The work establishes that the three indices of poverty, unemployment and income inequality are common features of the Nigerian economy which according to Seers form the basis of underdevelopment.  The work also examines the Structural Adjustment Programme (SAP), a policy framework designed for Nigeria by the duo of IMF and World Bank which was adopted in 1986 and yet failed woefully in addressing the country’s socio-economic problems.  The study equally identifies a wide gap in sharing of the benefits of globalisation between the advanced and less developed economies.  The work also concludes that even though globalisation plays a key role in underdevelopment of Africa it is not the sole culprit as other factors such as poor leadership, massive corruption, manipulation of electoral system by elites, intellectual and entrepreneurial laziness, mutual group distrust and suspicion among the component tribes and regions are also major contributory factors. One of the major suggestions of the study is that African governments must resist the IMF-induced principle of less government participation in economic activities as no country could achieve meaningful development without the government of that country playing crucial roles whether through participatory or regulatory intervention.

CHAPTER ONE

1.1.       BACKGROUND TO THE STUDY

From time immemorial, man has been challenged by the task of coping with his natural environment. This is in his effort to provide for his basic needs of life i.e. food, clothing and shelter.  In order to satisfy these needs man gradually learnt how to invent better and more convenient ways of doing things e.g. cultivation of land for agriculture, animal husbandry, health care and disease prevention and control, etc.  Gradually he develops customs and traditions that constitute what can be considered as the accepted behavioural patterns in his relationship with others within his immediate environment. With time, he became aware of other societies existing outside his own society meaning that he does not exist in isolation and that in order to enhance his economic wellbeing he needs to relate with those societies through trade, commerce and finance. 

He (man) further understands that this relationship is not only defined by economic power but also by political and military power.  Thus, the more powerful societies negotiate with weaker ones from a position of power and influence and hence get better bargain.  Furthermore, the powerful societies often times go to the extent of attacking and annexing the weaker ones in order to expand their territories and get even more power for negotiating with other larger societies.  This gave birth to the existence of autonomous often hostile empires and later countries, continents, regions etc. each bloc defined by certain characteristics such as geography, population, sovereignty, etc.

It is out of these relationships that the concept of globalisation which entails growing interdependence of countries worldwide emerges.  The whole essence of globalisation is to bring about rapid growth and development of world economies in such areas as significant improvement in science and technology through transfer of technology among nations, poverty reduction, infrastructural development, improved child and maternal healthcare, education, gender equality, employment generation, bridging the gap of income inequality, better and enhanced communication and transportation system among many other such lofty objectives.

It is therefore imperative to conduct a critical analysis of how these benefits of globalisation are shared among countries of the world.  This is necessary particularly in view of the identified wide knowledge and economic gap between the developed and the developing countries which shows that the benefits of globalisation are not evenly distributed among countries of the world.  This situation is aptly captured in the words of Aluko (2002) who stated that, “there are three regions of the world today that emphasise and wish to impose globalisation.  They are the European Union (mainly the most powerful members like Britain, France and Germany), North America (Mainly USA and Canada), and the Pacific Rim countries (notably Japan).”

The instruments used by these countries to dominate the global economy include the World Trade Organisation (WTO), the International Monetary Fund (IMF) and the World Bank. It is through the instrumentalities of these institutions that African and other third world economies are integrated into the ‘global’ economy but certainly not on anything near an equal footing with the western advanced economies.

Nigeria for example emerged from an agrarian economy in the 1970s with the discovery of oil in commercial quantity.  The oil boom of the 1970s also significantly strengthened the country’s national income that it was obvious that it (Nigeria) was well-positioned for prosperity.  However, the oil glut of the early 1980s changed this otherwise promising picture.  In the face of a dwindling national income the government had to embark on austerity measures to put the economy back on track.  In furtherance to this and after a lengthy national debate on whether the country should take the IMF loan or not, the then Federal Military Government adopted the Structural Adjustment Programme (SAP) which contains a set of policies recommended by IMF and World Bank in 1986. These policies, according to Wikipedia.com, entailed “deregulation of the agricultural sector by abolishing Marketing Boards, elimination of price controls, privatisation of public enterprises, devaluation of the Naira to aid the competitiveness of the export sector, and the relaxation of restraints on foreign investment put in place by the Gowon and Obasanjo governments during the 1970s.”

However, twenty five years down the line, the problems of mass unemployment, acute poverty, falling educational standard, collapsing industrial and manufacturing sector, collapsing health sector, inability to achieve reasonable and sustainable level of electricity generation that will trigger industrial growth, deteriorating infrastructure, mutual group suspicion and distrust among different ethnic and religious groups in the country, rising crime rates, etc. are still bedeviling the country in much more higher propensity than before the embracement of the supposed solutions.

It is against this background that it becomes expedient to ask the questions: If globalisation is truly a panacea to the numerous economic and socio-cultural problems identified above why has it not been able to address them in Nigeria and other third world countries? Could it be correctly argued that advanced economies of Western Europe, North America and Pacific Rim countries are more favourably positioned to benefit from globalisation at the detriment of third world countries? How comes countries of South East Asia that have similar histories with African countries being able to meaningfully tap from the benefits of globalisation in sharp contrast to their African counterparts?

It is hoped that this work will provide answers to some of the above and many other questions thrown up by the globalisation challenge with particular reference to the relationship between the concept and development in Africa with Nigeria as a case study.

1.2.       STATEMENT OF THE PROBLEM

African countries Nigeria inclusive are today bedeviled by serious underdevelopment issues.  Poverty is widespread, unemployment is rampant, child and maternal deaths are on the rise, income inequality gap is getting wider by the day with the rich getting richer and the poor even poorer, local industries are not operating at anything near full capacity utilisation, inflation is rising at an alarming rate, commercial banks are in a turmoil, government policies are incoherent and lack focus and direction, educational system is in shambles.  Furthermore, HIV/AIDS is ravaging a significant percentage of the active population; socio-cultural and religious values of honesty, piety, loyalty and commitment to national ideals have been replaced by negative incidence of high level corruption, election rigging, prostitution, hooliganism and vandalism of government property among many other such societal ills.

The state of affairs depicted above is not only disturbing but also unacceptable especially because of the country’s embracing of economic policies dictated by the trio of World Trade Organisation (WTO), the International Monetary Fund (IMF) and the World Bank among whose major objectives is to help address some of the identified problems globally.  It is also observed that while Nigeria and other African countries continue to wallow in abject poverty in spite of their rich natural and human endowments, their counterparts in Western Europe, North America and South East Asia continue to witness enhanced economic prosperity with very high standard of living and life expectancy ratio.

This researcher is therefore spurred by this wide gap identified in the fortunes of the global south and the global north to undertake this study with the view to ascertaining the causes of these inequalities and to establish whether or not globalisation as a concept has actually treated different regions of the world in a fair and equitable manner.

1.3.    OBJECTIVES OF THE STUDY

The general objective of this study is to examine the subject of globalisation and development in Africa. The study covers the period 2000 to 2010 i.e. a timeframe of ten (10) years.

          The specific objectives of the study include:

i)            To examine the issue of globalisation in terms of its content

ii)         To examine the effects of globalisation on developing economies with particular reference to Nigeria.

iii)       To examine why the Nigerian economy for decades hadn’t really grown despite adaptation of several policies from the so-called developed economies and their institutions.

1.4.    RESEARCH QUESTIONS

This research work will be targeted towards answering the following questions:-

i)            Is globalisation solely responsible for Nigeria’s numerous economic problems?

ii)            To what extent do International financial institutions like IMF and World Bank influence Nigeria’s economic policies?

iii)  Has Nigeria and other African countries derived any benefits from globalisation?

iv)           Is there linkage between the rampant occurrences of social conflicts in Africa and globalisation?

v)   What is the relationship between Nigeria’s collapsing industrial and infrastructural base and globalisation?

1.5.    SCOPE AND LIMITATIONS TO THE STUDY

This work is on globalisation and development in Africa (2000-2010): A Case Study of Nigeria.  The researcher believes that a timeframe of ten (10) years is very sufficient in making analysis on issues relating to globalisation and its effects on the Nigerian economy.

                                               

The study is constrained by three (3) major factors. Firstly, due to the vastness of the subject of globalisation it will require a great deal of time to effectively cover the subject. The timeframe given for submission of this work is rather short. 

Secondly, the research is constrained by limited resources available to the researcher as a work of this nature requires sufficient funding.

Thirdly, the nature of the subject under study is also a limitation.  This is as a result of the fact that the contemporary nature of the subject makes it difficult to effectively capture a complete picture of the globalisation crisis in Africa as fresh dimensions to the crisis are continually emerging by the day.

1.6.    SIGNIFICANCE OF THE STUDY

This work is expected to assist in closing the identified gap in the fortunes of the African countries (with particular emphasis on Nigeria) and the developed economies and also identify why the policies dished out to the developing countries by the trio of WTO, IMF, and World Bank are not translating to concrete development in such countries.

 Secondly, the study will serve as an eye opener to all stakeholders in the Nigerian economy on how they could effectively survive unfair competition posed by globalisation. This includes economic planners, monitors, local industrialists, investors, etc.

 

Furthermore, it is expected that this study `will serve as a veritable reference material for future researchers on the issue of globalisation and development in Africa.

It is also expected that the work will constitute a potent tool for ensuring the reduction of socio-economic conflicts that manifest all over Africa in form of internecine and genocidal strifes leaving some of the states collapsed and many more others distressed.

Lastly, it is hoped that the work shall be a pointer to African countries on how they could achieve self-sufficiency by developing realistic, inward looking development strategies devoid of any self-defeating and imaginary attachment to the dictates of contemporary globalists.

1.7.    RESEARCH METHODOLOGY

1.7.1. Sources of Data Collection

a).      Primary Sources – This comprise of firsthand information gathered as a result of an empirical examination of the phenomenon under study.  This can be garnered through laboratory experiments, personal observation, interview, questionnaire administration, etc.

b)       Secondary Sources – This encompass information gathered through review of related literature and facts gathered from other sources like newspapers, magazines, journals, internet, etc.

Due to the nature of this study, the secondary sources are essentially consulted.  Thus, the work is based purely on content analysis.

1.7.2. Population and Sample Size

The population entails the total number of possible respondents from whom data can be sourced while the sample size is the actual percentage of the population that the researcher intends to interview usually due to large size of the population. However, since this work is based on content analysis this instrument will not be used.

1.8.    DEFINITION OF TERMS

Globalisation:         A process which involves economic interdependence of countries worldwide such that the world becomes a single economic village.

Development:         Gradual and systematic changes in the material, social and psychological conditions of the people.

Development          Theories of development as advanced by various

Models:                  scholars over time based on the experiences of various countries.

Integration:            Combining two or more different things in such a way that one becomes fully a part of the other.

Triad:                    Three regions of the world that control the global economy i.e. the European Union, North America and the Pacific countries.

Deregulation:         Removing all regulations and restrictions to economic activities and allowing the market to determine the trend of events in an economy.

WTO:                    World Trade Organisation – one of the instruments of globalisation

Devaluation:           Reduction in the value of a country’s currency as a measure of attracting foreign buyers or correcting unfavourable balance of payment.

Privatisation:          Change of ownership of public parastatals to private hands i.e. from non-profit making to profit oriented.

MNCs:                   Multinational Corporations i.e. World class companies with presence in many countries of the world.

CSR:                     Corporate Social Responsibility: Assistance rendered by organisations to neighbouring communities in form of intervention projects like road, boreholes, electrification, etc.

HDI:                      Human Development Index

CHAPTER TWO

REVIEW OF RELATED LITERATURE

2.0.    INTRODUCTION

In this chapter effort is made to review the works of writers as contained in various books, magazines, journals, seminar papers, articles posted on the internet, etc. on the issue of globalisation and development in Africa.  It sets off by giving a variety of insights into the concept of globalisation.  It also identifies the difference between globalisation and internationalization. The main features of globalisation, as well as the instruments of globalisation are also brought under scrutiny.  It also examines the Structural Adjustment Programme (SAP) i.e. one of the programmes adopted by the Nigerian government to address its economic problems. It as well throws light on the concept of development.  At the end of the chapter, the theoretical framework of the study which forms its theoretical basis is given. A brief summary is also given at the end of the chapter to recap its contents.

2.1.    THE CONCEPT OF GLOBALISATION

The concept of globalisation has come to dominate the literature of international economics especially since the collapse of the Soviet Union in 1989.  Thus, the era of ideological war between the capitalists and the socialists is gone.  It is now an era of a new world economic order which seeks to promote the internationalisation of capital by integrating several world economies into a single economic village.  

Several authors have attempted to offer a definition of the word globalisation.  For instance, globalisation has been defined as:

Basically, the intensification over the last two decades of the interconnection and interdependence between all parts of the world, particularly at the levels of the economy and communications, such that former national barriers to the movement of information, finance, goods, services, and entrepreneurship are being drastically reduced, and everybody now has to compete with everybody, in what has now become a global village and a single global market. (Usman, 2004)

Also according to the Centre for Research on Globalisation (2002), “globalisation is a process of building connections between regions of the world”.  Kavaljit Singh as quoted by Alkali (2003) described globalisation as “the process which involves growing economic interdependence of countries worldwide”.  The interdependence manifests itself in different arenas such as communication, culture, politics and economics.

Perhaps, the impact of globalisation is most dramatically demonstrated in the area of communications.  The development of the internet technology, advances in telecommunications, and the explosion of international jet travel have resulted in the ability to communicate instantaneously with many parts of the world.  This ability to communicate widely and quickly has also resulted in the spread of a wide variety of cultural forms and expressions.  However, in this study, the emphasis will be on economic globalisation so as to effectively link it with the questions of development in Africa.

Over the years, several writers have attempted to offer varying assessments of the impacts of globalisation as it affect various regions of the world.  Some of these assertions seem to suggest that globalisation is a double edged sword which breeds equality and at the same time, inequality within the international system.  For instance, the Centre for Research on Globalisation (2002) opines that “globalisation may lead to greater economic, social, or cultural equality around the world.  On the other hand, the process of globalisation may result in greater inequality.  It may increase the power, wealth and influence of individuals, institutions, corporations and nations that are already wealthy, influential and powerful”.

The concept of globalisation is not new because even in the ancient and medieval world international companies were formed, promoted and financed by states, governments and groups of individuals to explore and at times, pillage and conquer distant and less privileged communities and countries for the benefit of the more privileged ones.  The activities of the colonialists, slave dealers and their local collaborators and even the partitioning of Africa and the activities of multinational corporations were “globalisation” of a sort and were undertaken by almost the same groups of countries and races that are the main protagonists of today’s globalisation.  Even though, the present day globalisation differs in scope, manner and intensity from these earlier international processes like slavery, colonialism, or religious fervor, it benefits the same powerful nations at the expense of more or less the same weak nations.

2.2.    DIFFERENCE BETWEEN GLOBALISATION AND INTERNATIONALISATION

          It has been established in the earlier section that prior to the advent of globalisation as we know it today several attempts have been made at globalisation in world history.  Apart from the ones discussed above, the formation of international and regional organisations like the United Nations Organisation (UNO), Organisation of Petroleum Exporting Countries (OPEC) Organisation of African Unity (OAU), etc. can also be described as some sort of globalisation especially in view of the fact that their overall objective is to integrate countries with common socio-economic interests.  Such integration, according to Aluko (2002) “is better described as internationalisation instead of globalisation”.  He went ahead to outline the fundamental differences between the two as follows:-

i)             While globalisation focuses on economic necessity, internationalisation is best exemplified in founding and operation of the League of Nations, the United Nations Organisation and other regional political organisations, like the Organisation of African Unity (OAU) that seek to create one world or continent based on strong and effective national, sovereign and individual governments.  Globalisation on the other hand seeks to encompass all countries into one economic unit, possibly without governments or boarders.

ii)            While internationalisation aims at improving relationship between and among nation states, globalisation seeks to undermine the very concept of nation states.

iii)          While internationalisation expects citizens to influence and play active part in the economic affairs of their respective countries, globalisation seeks to erode national sovereignty and diminish the citizen’s participation in national economic and political affairs by substituting the “market” for the people.

iv)           While in internationalisation each sovereign nation is trying to have a voice in international affairs on “equal” footing, not all countries are participating in the global economy on anything near an “equal” footing.

2.3.    MAIN FEATURES OF GLOBALISATION

Aluko (2002) outlines the following as the main features of the contemporary globalisation trend:-

i)             Promotion of free market, individual initiative, private enterprises, and ruthless competition.  The logic of survival of the fittest becomes the norm for success. The weak people or the poor countries and their governments are blamed for their lack of competitiveness.  The mix between competition and cooperation, between the public sector and the private sector in economic activities is downplayed.

ii)            There is emphasis on competition which goes pari-passu with the credo to limit the economic role of the state through privatization, deregulation, and liberalization.  In the poor developing countries more so in Africa these policies are the offshoots of Structural Adjustment Programme (SAP) imposed on poor countries since the early 1980s on the insistence of the International Monetary Fund (IMF) and the World Bank.

iii)          Another important feature of globalisation is that privatisation which is one of its major components is alleged to be designed to achieve a diminished role of the state in the economy, so as to achieve greater economic efficiency through increased private participation and to raise revenue so as to reduce or repay the governments’ external and internal debts.

iv)           Global institutions are made important in the process of restructuring the national economies.  The ratification of the revised General Agreement on Tariffs and Trade (GATT) since 1947, and of the World Trade Organisation (WTO), in 1995 marked landmark in the development of the global economic system.

v)            Moreover, globalisation further enjoins budgetary austerity, currency devaluation and the loss of national economic sovereignty and control over fiscal and monetary policy of the compliant country.  The central bank and the ministry of finance of the compliant country are reorganized and supervised by the IMF and the World Bank often with or without the consent of the state government.

vi)           Also good governance, incorruptibility, the holding of multiparty elections and the sustenance of human rights are additional attributes of globalisation even when the very nature of the economic and the political solution imposed by globalisation on the country precludes the practice of genuine democratization to the extent that very few of the governments of the globalized countries, particularly in Africa, meet the criterion of being the government of the people, by the people and for the people.

vii)         It is also a fact that in spite of the existence of an individual country’s separate currency, globalisation dollarises the domestic currency, domestic prices and government budgets.  With the ever recurrent devaluation of the national currency, the urge to hold the USA Dollar, the British Pound Sterling or the German Deustsche Mark becomes irresistible.   This in turn causes further devaluation of the local currency.

viii)        Globalisation also has the tendency to destabilize the nation’s public finances by prescribing drastic reduction in the activities of the government, the dismissal, retrenchment and premature retirement of public employees, a drastic cut in social sector programmes, a ceiling on wages, increase in the prices of public utilities, the deregulation of the banking system and the liberalization of capital movements, including interests, profits and dividends, most of which benefit the Triad, because of the flight of capital from the poor countries for ‘safe keeping’ in the Triad.

ix)           Also the receding influence and social containment of the state, which is an offshoot of globalisation, increase unemployment, reduces social welfare services and reduces the standard of living of the lower levels of the population, thus increasing the number of those living below the poverty level in almost every developing country.

2.4.    INSTRUMENTS OF GLOBALISATION

According to Ahmed (2004), “the principal instrument of the contemporary phase of globalisation is the World Trade Organisation created at Marrakesh at the signing of the Uruguay Round Table Agreements (URAs).  To complement this instrument, the older Bretton Woods Instruments i.e. the IMF and the World Bank are also changing in subtle ways, both in their constitutions and in their operations to provide added instruments for financial liberalization. A brief appraisal of each of these institutions is necessary to show how they serve as instruments in shaping and reshaping global activities.

2.4.1. World Trade Organisation (WTO)

According to Nwagwu (1999), “on January 1 1995, the World Trade Organisation (WTO) succeeded the General Agreements on Trade and Tariff (GATT).  The WTO which is based in Geneva, Switzerland is the legal and institutional foundation of the global trading system.” This is because it provides the principal contractual obligations determining how governments frame and implement domestic legislations and regulations and it is the platform on which trade relations among countries evolve through collective debate, negotiation, bargaining and adjudication.  To meet its objectives, the WTO seeks to ensure open markets and fair competition in global trade.  He concluded thus WTO is therefore, considered as part of a global economic arrangement of which the World Bank and the International Monetary Fund (IMF) are the other stands of the global economic tripod”.  Some of the principles of WTO include:

i)             Trade without discrimination which incorporate the Most Favoured Nations (MFN) and the National Treatment (NT) principles.  MFN demands that all countries of the WTO be treated equally, whether rich or poor, strong or weak.  Under the WTO agreements, countries cannot normally discriminate against their trading partners.

ii)            National Treatment means treating or giving equal treatment to both imported and locally produced goods and services after they have entered the domestic market.  These include trademarks, copyrights, and patents.

iii)          Freer Trade through Negotiations: Lowering of trade barriers is one of the obvious means of encouraging trade.  The barriers include custom duties (tariffs) and measures such as import bans or quotas that restrict quantities selectively.  Other barriers such as red tape and exchange rate policies are also discussed to ensure the smooth flow of trade.

iv)           Predictability through Binding: Promising not to raise a trade barrier can be as important as lowering one because the promise gives businesses a clearer view of their future opportunities.  With predictability and stability assured, investment is encouraged, jobs are created and there is competition.  The WTO is an attempt by governments to make business environment stable and predictable.

v)            The WTO is a system of rules dedicated to open, fair and undistorted competitions.  For example, the rules of non-discrimination – MFN and NT – are designed to secure fair conditions of trade. So too are those on dumping (exporting at below cost to gain market share) and subsidies. Most other WTO agreements aim to support fair competition.

vi)           Encouraging Development and Economic Reforms: The WTO system contributes to development.  The agreement gave Leader Developed Countries and Developing Countries periods to adjust to the more unfamiliar and difficult WTO provisions, and time to implement the agreements.  These include the special differential provisions created specially for them to encourage developments by enabling developing countries pursue their development programmes at favourable speeds while liberalizing their trade regimes and fostering growth and development.

vii)         The WTO makes a case for open trade: the economic case for an open trading system based on rules that are mutually agreed upon rests largely on commercial commonsense.  World trade had continued to grow due to opening of the markets in various sectors leading to rapid liberalization and globalisation.

2.4.2. IMF and World Bank

Alkali (2003), stated in his work Issues in International Relations and Nigeria’s Foreign Policy that the history of the IMF and World Bank could be traced to the era of Second World War.  According to him “a year before the United States dropped the Atomic Bomb code named Little Boy on Hiroshima, a Japanese City, representatives of 44 countries met in a small town called Bretton Woods, New Hampshire in the United States of America to discuss plans for post war world economic engagements.  The result of that Monetary and Financial Conference was the establishment of two sister institutions, the International Monetary Fund (IMF) and the International Bank for Reconstruction and Development (IBRD) otherwise known as the World Bank.  The IBRD began operations in June 1945, the very year the United Nations Organisation was established while the IMF began operations in 1947.  According to Hersefield (1965) as in Alkali (2003), the main objectives of IMF are:-

i)             To promote International Monetary Cooperation

ii)            To facilitate the expansion and growth of International Trade through consultation and collaboration.

iii)          To create exchange stability among member states so as to avoid competition that could lead to depreciation of currencies.

iv)           To establish multilateral system of payments to eliminate foreign exchange restriction.

v)            To provide confidence for members in balance of payments crisis and readjustments without resorting to destructive measures.

vi)           To shorten the duration and lessen the degree of disequilibrium in members’ international balance of payments by making the resources of the fund available under adequate safeguards.

vii)         To promote and maintain high employment of productive resources of members as a primary objective of economic activity.

Similarly, a former employee of World Bank Reid (1965), outlines the objectives of the World Bank as follows:-

i)             To assist in post war reconstruction of war torn economies of Western Europe

ii)            To promote private foreign investment, if necessary to supplement it from its own resources

iii)          To promote trade balance of payment equilibrium

iv)           To ensure that priority projects were dealt with first

v)            To support development programmes in poorer regions, and

vi)           To conduct its operations with due regard to the effect of international investments on business conditions in member countries.

In order words, from the objectives of the two Bretton Woods Institutions, it is clear while the IMF is primarily concerned with establishing mechanisms for managing and maintaining balance of payment equilibrium, the World Bank is concerned more with the generation and provision of long term capital for the reconstruction of Europe after the Second World War and for the development of emergent independent nations in Africa, Asia and Latin America.

It is significant however, to note that just as in the case of the United Nations, throughout the processes that led to the establishment of these financial institutions that were to play strategic roles in post war politics and economics, the developing countries were not directly involved.  Thus, in their structures, organisation, objectives and operational guidelines, they merely reflected the interests of imperial powers, (Alkali 2003).

2.5.    STRUCTURAL ADJUSTMENT PROGRAMME AND THE NIGERIAN ECONOMY

2.5.1. Background:

According to National Centre for Economic Management and Administration (NCEMA), “the collapse of world oil prices and the sharp decline in petroleum output, the latter resulting from a lowering of Nigeria’s OPEC quota in the early 1980s, brought to the forefront the precarious nature of the country’s economic and financial positions.” Rising and ill-directed government spending during the 1970s, neglect of the agricultural sector, and inward-looking industrial policies left Nigeria vulnerable to profound changes in the external environment in the following decade.

Thus, the dramatic fall in oil export revenues entailed a sharp deterioration in the country’s public finances and balance of payments. This led to recession and economic deterioration as manifested by fiscal crisis, foreign exchange shortage, balance of payments and debt crisis, high rate of unemployment, negative economic growth, to mention a few. Indeed, beginning from 1982, and through 1984, the country had become saddled with negative trends in economic growth as indicated by the decline in the Gross Domestic Product (GDP) (0.35% in 1982; -5.37% in 1983; and –5.18% in 1984), persistent current account and budget deficits, a huge backlog of uncompleted projects, especially in the public sector, factory closures, large-scale retrenchment, acute shortages of essential commodities and galloping inflation.

The sharp worsening of economic conditions prompted the Shagari Government to introduce the Economic Stabilisation Act of April 1982 with minimal involvement of non-governmental institutions. The stabilization Act comprised a package of stringent policies and measures of demand management aimed at rationalising overall expenditure pattern in order to restore fiscal balance on the domestic front and equilibrium in the external sector. These stabilization measures were, to a large extent, implemented through administrative controls which include a severe tightening of import controls, the imposition of exchange restrictions on current international transactions, substantial increases in customs tariffs, the introduction of an advance import deposit scheme, and ceilings on total central bank foreign exchange disbursements. The tightening of fiscal policies consisted of a freeze on capital expenditure, the curtailment of lower priority public investment projects, an increase in petroleum products prices and utility tariffs, and a freeze on wages and salaries in the public sector. In addition, foreign borrowing of the state and local governments was severely restricted, ceilings on bank credit to the private sector were progressively lowered, and administered bank lending rates were raised.

The worsening economic and financial conditions led to a military coup on 31 December 1983. The new regime under General Buhari sought to reinforce the 1982 austerity measures by further tightening financial policies and introducing more administrative controls. The government also implemented the counter trade policy in the light of the economic circumstances that existed then. This was aimed at reviving the crumbling economy through the provision of raw materials that were needed in industries, stopping further closure of industries, assisting in reducing the unemployment problems and, perhaps, minimising the spiralling inflation. The implementation of the counter-trade deals was, however, not free of irregularities that derived largely from the secrecy with which the trade was conducted. This secrecy created room for suspicion and opposition from stakeholders such as the organised private sector and the academia, who queried the rationale behind the deals. Indeed the irregularities associated with the counter-trade deals were cited as one of the reasons for the 27 August 1985 military putsch.

The Government’s austerity measures achieved some success by 1985; inflation fell to a single digit, the external current account moved from deficit to balanced positions, and real GDP growth jumped to 9½ per cent. The substantial growth in real GDP was due principally to an increase in oil production arising from the upward adjustment in OPEC quotas and to the recovery of the agricultural sector from a two-year drought. However, improvements in the fiscal and external positions in 1984 and 1985 proved transitory and failed to establish a basis for sustained economic growth. Short-run fiscal stabilization measures and quantitative trade controls dominated the adjustment efforts, while underlying economic and financial conditions continued to worsen. Between 1980 and 1985, government revenue fell from 24 per cent of GDP to 12 per cent, reflecting the sharp decline in oil prices as well as the diminished buoyancy of non-oil taxes. The adverse impact of the overvalued exchange rate on oil and customs revenue, coupled with the depressing effect of increasingly complex import controls on the customs tax base, exacerbated the difficulties.

The authorities’ policy to foster employment through the creation of public sector jobs continued to exert strong pressure on the budget during 1981-84. Following a 109 per cent increase in 1977-81, public sector employment grew by a further 18 per cent between 1981 and 1984. This policy promoted migration into cities, as government salaries compared very favourably with income opportunities in the rural areas. Urban migration and its attendant unemployment problems became even more pronounced in 1981 when the Government increased the minimum wage rate to the entry level salary of public sector employees. Urban unemployment increased substantially, from 2½ per cent in 1980 to 10 per cent in 1985, while rural unemployment rose from 3 per cent to 5 per cent over the same period. Real per capita income fell significantly as well, from US$1,010 in 1981 to US$850 in 1985.

The emphasis on short-run stabilization measures reflected the Government’s belief, at the time, that Nigeria’s economic and financial problems were transient and would eventually disappear with a recovery in oil export prices. In the event, oil prices did not recover, and it became clear that the stabilization policies were inadequate in tackling the underlying economic problems, including the lopsided reliance on oil, the neglect of the agricultural sector, the inward-looking industrial strategy, the inefficiency of the public enterprise sector, and the misdirected capital investment projects of the Federal Government.

In addition to the inefficient allocation of large oil receipts, intervention in key areas of the economy, including the fixing of the exchange rates, of interest rates, and of domestic and export prices and the marketing of non-oil exports, remained pervasive and impeded the supply response essential to a sustained recovery of the Nigerian economy. The extensive system of direct controls suppressed market signals and discouraged private sector activity.

Crippling import shortages and growing social and political discontent set the stage for another military coup, under General Babangida, who assumed power in August 1985.

It became clear to Nigeria’s economic policymakers that short-run stabilization measures and increased regulation were not appropriate responses to deep-seated impediments to growth. It was also clear that there was the need to adjust to the structural imbalances and external shocks. But then an important question that needed to have been addressed concerned the type of adjustment that was desired. The government was left with three policy options namely to: (i) maintain the status quo, i.e., a continuation of the austerity measures without structural adjustment reforms; (ii) accept IMF Structural Adjustment Facility including its conditionalities; and (iii) reject the IMF loan proposal but adopt a modified variant of the traditional structural adjustment package, designed and implemented by Nigerians.

The Babaginda government decided to throw the decision of whether to take the IMF loan to the general public through a debate. This was because the leadership felt that taking the loan would involve some hardships on the citizens; and not taking the loan will have the same effect since creditors would no longer permit further imports of raw materials for the industries. Those who participated in the debate represented different stakeholders in the society. There was the group from the organised private sector who were business individuals, those from the academia, religious organisation, socio-cultural societies and individuals with different social and ideological backgrounds. While many like the nationalists, communists and the academia wanted the government to reject the IMF and its conditionality, some like the bankers and the industrialists saw the need for the loan.

Essentially every Nigerian agreed that the economy demands restructuring. They agreed that it was too much dependent on foreign inputs; that agriculture was neglected; that the dependence on one export commodity should be halted. It must however be noted that this was the first time in the history of the nation for all stakeholders to be involved in the decision making process that would ultimately affect the lives of the general populace. After the popular debate, the Government adopted in June 1986 a comprehensive structural adjustment program (SAP) that signalled a radical departure from previous reform efforts. It emphasized reliance on market forces and the private sector in dealing with the fundamental problems of the economy. The SAP was originally intended to last for two years, but was extended when it was realized that implementing many of the reforms required more time. Nigeria’s adjustment efforts were supported by three stand-by arrangements with

the IMF, but the government decided not to use the Fund’s resources. The World Bank also supported the adjustment program though a US$450 million trade policy and export diversification loan.

2.5.2. Objectives of SAP

The objectives of the SAP were, among others, to:

·        restructure and diversify the productive base of the economy so as to reduce dependency on the oil sector and imports;

·        achieve fiscal and balance of payments viability over the medium term; and

·        promote non-inflationary economic growth.

The growth and inflation objectives for 1987-88 were a real GDP growth of 3-4 per cent and a reduction of inflation to 9 percent per year on an average annual basis. It was thought that the anticipated devaluation of the naira would have a considerable impact on consumer prices.

2.5.3. Policies Designed to Achieve the Objectives of SAP

The key policies designed to achieve these objective were:

·        Strengthening of hitherto strong and relevant demand management policies;

·        Adoption of measures to stimulate domestic production and broaden the supply base of the economy;

·        The setting up of a Second-Tier Foreign Exchange Market (SFEM) as a mechanism of realistic exchange rate and consequently, the alteration of relative prices to enhance efficiency in resource allocation, and to promote domestic-based production and nonoil exports;

·        Further rationalisation and restructuring of tariffs in order to aid industrial diversification;

·        The liberalization of the external trade and payments system-dismantling of price, trade and exchange controls;

·        The elimination of price controls and commodity boards;

·        The decontrol of interest rates; and

·        The rationalization and restructuring of public sector enterprises and overhauling of the public sector administrative structure.

In general, the various policy measures incorporated in SAP have been pursued to varying degrees of implementation coupled with a number of complementary policies and programmes.

2.5.4. Measures Taken to Cushion the Effects of SAP

Some of the measures geared towards alleviating the unintended effects of adjustment and to provide relief to the people include the establishment of the National Directorate of Employment (NDE) in 1986; a SAP relief package introduced in 1989; the establishment of the Urban Mass Transit Programme in 1988; establishment of the People’s and Community banks in 1989/90; the establishment of the Directorate of Food, Road and Rural Infrastructure (DFRRI) in 1986; a reflationary budget package in 1988; the 1991/1992 relief package for public sector officers; the reform of the civil service; and the Better Life for Rural Dwellers’ Programme in 1989.

As at 1995, the Structural Adjustment Programme in Nigeria has a record of mixed performance. In spite of the gains recorded under the programme, certain macroeconomic, political and social problems have so far defied solution.

The major gain can be recapitulated as reversal of the negative trend of the growth of GDP and other key sectors of the economy. Others are easy access of economic agents to foreign exchange market and the enhancement of efficiency in resource allocation to the productive sectors enhancement of non-oil export competitiveness and inducement of enthusiastic export drive increase in the prices of agricultural exports in naira terms and the subsequent improvement in rural nominal incomes, successful debt rescheduling and debt conversion programmes, evolution of maintenance culture in both public and private life and the development of local technology and recycling of used materials. In spite of these gains, a number of economic problems have remained intractable.

Despite the programmes and policies put in place, the SAP has brought few tangible benefits to the people. Ineffective corporate governance, the distortions of continued government interventions, and the lack of government part to carry the various stakeholders in the design, implementation and execution of programmes, have limited the level of success for the programmes and reforms. In particular, all stakeholders have been ignored in the core areas that involved them and thus, these had led to opposition to governments continued programmes. The continued absence of progress is the consequences of non-interactions between the government and the various stakeholders within a particular programme. There has been no capacity for decision-making including policy dialogue with other stakeholders.

2.6.    THE CONCEPT OF DEVELOPMENT

Griffin and Khan (1992) stated that “the ultimate purpose of development is to expand the capabilities of people, to increase their ability to lead long and healthy lives, to enable them to cultivate their talents and interests and to afford them an opportunity to live in dignity and with self-respect”.  The means by which this is achieved may be diverse – by increasing the stock of physical capital, introducing new technologies, changing institutions, and altering incentives.  Equally important and sometimes more important are investments in human capital – the provision of education and training, the creation of employment and opportunities to acquire skills while on the job, the provision of primary healthcare and adequate nutrition, expenditure on research and on seeking out new sources of information.  Both these ideas see development as capability expansion and as human capital formation.

According to Rodney (1972), “more often than not, the term ‘development’ is used in an exclusive economic sense – the justification being that the type of economy is itself an index of other social features”.  He further continued that “a society develops economically as its members increase jointly their capacity for dealing with the environment.”  This capacity… “is dependent on the extent to which they understand the laws of nature (science), on the extent to which they put that understanding into practice by devising tools (technology); and on the manner in which work is organised”.

Similarly, Alkali (2003), considers development as “movement and change of a phenomena whether at the level of knowledge, nature or society.  It implies that nothing is static.  It also implies that all phenomena develop over time through complex process and through dialectical combination of quantitative growth and qualitative change of the given phenomenon”.  He supported his views with the views of Hoogvelt (1979), who opined that “at the level of society, this means the gradual and systematic changes in the material, social and psychological conditions of the people.  In other words, development is a process, an action and interaction”.  The defining features of social development appear contentious not because they are not known but rather because views and perceptions of development are often obscured by ideological pontifications.

Furthermore, in their joint classic work the Communist Manifesto, Karl Marx and Fredrick Engels identified five stages of mode of production.  They posit that social development historically progresses from primitive communalism through slavery to feudalism and to capitalism.  They however, argued that because of the inherent contradictions in capitalism, it would ultimately collapse leading to the emergence of communism, which according to them is qualitatively higher.  Karl Marx noted that at each epoch, it is the dialectics of class contradictions and conflict that tend to move society from one mode of production to a new and higher one.

2.7.    THEORETICAL FRAMEWORK

This researcher chooses the Dudley Seers’ Theory of Development as the theoretical framework of the study.  This is because of its contextual relativity with the subject of this research work as it lays emphasis on the three indices of poverty, unemployment and income inequality which are glaring manifestations of socio-economic problems bedeviling the case study of this research work i.e. Nigeria.

2.7.1. THEORY OF DEVELOPMENT – DUDLEY SEERS

According to www.economics4development.com “As a concept, Economic development can be seen as a complex multi-dimensional concept involving improvements in human well-being”. 

However defined, development scholars are of the view that GDP is a narrow measure of economic welfare that does not take account of important non-economic aspects like more leisure time, access to health & education, environment, freedom or social justice. Economic growth is a necessary but insufficient condition for economic development.

Seers (1979), further stated the site, argues that, “development is about outcomes i.e. development occurs with the reduction and elimination of poverty, inequality and unemployment within a growing economy.”

These views of Seers on the issue of development were summarised in following objectives by  Nixson and Colman (1986) in their book “Economics of Change in Less Developed Countries”, as quoted by Wikipedia as follows:-

·        That family income should be adequate to provide a subsistence package of food, shelter, clothing and footwear.

·        That jobs should be available to all family heads, not only because this will ensure that distribution of income will generally achieve subsistence consumption levels but also because a job is something without which personality cannot develop.

·        That access to education should be increased and literacy ratios raised.

·        That the populace should be given an opportunity to participate in government.

·        That national independence should be achieved in ‘the sense that the views of other governments do not largely predetermine one’s own government’s decisions.

Also according to an article posted on www.econessays.com entitled “The concept of Development according to Seers, “Seers stressed the significance of social development in developing countries before moving to economic development saying that in order for economic development to reach its maximum potential social development has to occur first.”

Seers was highly critical of using indexes such as unemployment and inflation when referring to Third World countries, possibly because the statistics we have from these countries are too unreliable for us to be able to make judgments concerning their economies. In other words to Seers true development lay in the elimination of poverty, increase in literacy, improvement in the health system as opposed to the increase of per capita output. Thus one may conclude that the whole concept behind the HDI lies within Seers notion of development.

For example if a third world nation wants to develop it can't be expected to use the same policies as a first world nation. If, for instance, a third world nation had set growth as their macroeconomic target the government can't expect that by cutting taxation and reducing government spending its economy will grow the same way it would if it was a first world nation (fiscal policy). The reason behind this is that if the government in third world countries had taxes in the first place the people would be much worse off than they are now and the other complication is that the government can’t increase spending since all its spending relies on aid. Thus it would be much more beneficial for the governments of these countries to focus on combating illiteracy so as to educate its population and in the future this population will acquire jobs either within the country or abroad and thus poverty will be reduced.

Moreover reduction of inequality is a key issue in Seers theory. When a Third World country wants to develop, it needs a large labor force so as to produce a great number of products at low prices. However with the problem of discrimination in such countries many people are excluded from the labor force for example in the majority of countries women aren’t allowed to work. This issue creates a number of complications due to the following two reasons. The first reason is that there is a reduced labor force and thus the country isn’t producing at national income at full level since factors of production haven’t been used maximally.

The second reason is that women not working and being discriminated against leads to an increase in population which may cause problems for a number of reasons. On the one hand women can’t take part in family planning and contraception and thus not only do they end up with diseases like AIDS and syphilis but they also end up having an excess number of children which is why third world countries have such a great problem with large population. On the other hand, if women work they have less time to spend at home and end up having fewer children since they will be more geared to work than to give birth to excess numbers of babies.

A final key concept in Seers theory is improvement in health standards. Most third world countries have great problems with HIV and diseases like malaria, thus a key step to development in such countries would be the elimination of such diseases through the improvement of the healthcare system. If the people in these countries became healthier and life expectancy rose then these countries would develop much faster since the labor will be in a much better condition to work which will probably lead to a much more efficient and skilled labour force. Moreover a better health system will mean that less children will be dying and thus more of them will be able to go to school and thus the economy won’t be stuck in a vicious cycle of producing goods of the primary and secondary sector for the first world countries to consume.

On the overall, Dudley Seers theory is very accurate and up to date being that he has tracked the complications of each social problem of these countries in their economic performance.

Following from the above ideas and based on the bare facts observed, globalisation has not actually helped Nigeria to address the basic issues of poverty, unemployment and income inequality. Problems bordering around these variants which are readily discernible from the Nigerian environment include acute poverty level, prevalence of diseases, massive corruption scale, low life expectancy, collapsing industrial and educational sectors, wealth worshipping, political gangsterism and godfatherism, among many other such vices.  It is indisputable that these negative tendencies are major impediments to development and that is why the researcher believes that the Dudley Seers development model is very relevant to this study.

SUMMARY

In this chapter effort has been made to review the works of scholars and other authorities on the subject of globalisation and development in Africa.  The chapter is divided into seven (7) major parts each part reviewing literature on very vital components of the subject under study.

The chapter begins by reviewing literature on the concept of globalisation offering several definitions by different scholars.  The chapter also considered the difference between globalisation and internationalisation two concepts that are different but often wrongly used interchangeably.  It also looked at the main features of globalisation and its instruments which include the World Trade Organisation (WTO), the International Monetary Fund (IMF), and World Bank.

The Structural Adjustment Programme (SAP) one of the policies adopted by the Nigerian government to tackle its numerous economic problems was also brought under spotlight in this chapter. In this section, the background, objectives, policies and measures taken to cushion the effects of SAP were duly considered.

The chapter also throws light on the concept of development being one of the key components of the subject under study.  Also, the theoretical framework of the study is being established in this chapter where Dudley Seers’ development theory was adopted.  The chapter was summarized at the end to recap its contents.

CHAPTER THREE

3.0.    INTRODUCTION

In this chapter effort is made to conduct an analysis of the impacts of globalisation on three other African case studies i.e. Rwanda, Somalia and Liberia.  The essence of this is to give a comparative analysis of the experiences of these countries since they fall under the same class of developing countries with Nigeria which is the main case study of this research work.  Effort is also made to throw light on the effects of the globalisation crisis on these countries’ development efforts.

3.1.    THE RWANDAN EXPERIENCE

In his work entitled, “The Economic and Political Failure of Globalisation in Africa”, Aluko (2002) stated that “Rwanda became independent in 1962.  The 1990 Rwandan ethnic strife between the Tutsis and the Hutus was largely fueled by the collapse of the Rwandan economy under the tutelage of the IMF.” 

The civil war that led to the massacre of the Tutsis by the Hutus was preceded by deep-seated economic inequalities between the aristocratic Tutsis and the largely peasant Hutus.  The colonial structure of the Rwandan economy played a decisive role in the development of the Rwandan crisis.  The economy depended largely on the export of coffee, which used to provide Rwanda with about 80% of its foreign exchange earnings.  The Tutsis constituted a rentier class that profited from coffee export which coffee was grown mainly by the Hutus.  However, local self-sufficiency in food was achieved and protection for local production existed up till 1990 when it was lifted with the adoption of IMFs Structural Adjustment Programme.

Since the rural economy, based largely on the export of coffee provided the largest share of government revenue, a collapse in the price of coffee precipitated financial crisis in Rwanda’s public finances. The Rwandan debt crisis increased, following the collapse of the export price of coffee between 1987 and 1991, when export earnings declined by 50%. Consequently, famine erupted throughout Rwanda’s countryside. 

The World Bank and the IMF intervened and imposed trade liberalization and currency devaluation on Rwanda, alongside the removal of subsidies to agriculture, the phasing out of state protection, the privatisation of state-owned enterprises, and the dismissal of civil servants.  A 50% devaluation of the Rwandan Franc was carried out in November 1990, a little over a month after the invasion of Rwanda from Uganda which was supporting the rebel army of the Rwandan Patriotic Front, manned by Rwandans that had felt sidelined by the worsening economic situation. 

The economic crisis and thus the political and military crisis reached its climax in 1992 when Rwandan farmers, i.e. the Hutus, in anger destroyed over 30,000 of their coffee trees so as to further strangulate the finances of the Rwandan government.  In 1992, at the height of the civil war, a further devaluation of the Franc and the deregulation of the economy were ordered by the IMF.  Under the free market system imposed by the IMF/World Bank, heavily subsidized and cheap food imports and food aid from Europe, and America entered Rwanda and further impoverished the local producers. 

Under the same system, neither cash crops nor food crops production at home was any longer economically viable.  The state administrative system crumbled; civil war escalated as a result of the increasing austerity measures, diminishing civil service salaries and an increasing insecurity of life and property which fueled the outbreak of hostilities in October 1990.  The various austerity measures of the Somalia’s type imposed on Rwanda further polarized the Tutsis from the Hutus and exacerbated the ethnic genocide. 

The deliberate manipulation of market forces destroyed the economic base of Rwanda, increased unemployment, and created the situation of widespread famine and social discontent.  An idle hand, as the saying goes, is the devil’s workshop.  Although the ethnic hatred between Hutus and the Tutsis had been long, there is no doubt that the disintegration of economic, social and political relationships fueled the crisis in Rwanda.

Perhaps, the full implications of the Rwandan genocide are as depicted by wikipedia.com in their analysis of the conflict. It recorded that out of a population of 7.3 million people–84% of whom were Hutu, 15% Tutsi and 1% Twa – the official figures published by the Rwandan government estimated the number of victims of the genocide to be 1,174,000 in 100 days (i.e. 10,000 murdered every day, 400 every hour, 7 every minute). It is estimated that about 300,000 Tutsis survived the genocide. Thousands of widows, many of whom were subjected to rape, are now HIV-positive. There were about 400,000 orphans and nearly 85,000 of them were forced to become heads of families.

3.2.    THE SOMALIAN EXPERIENCE

In their joint work entitled “Globalisation and its impacts on Somalia”, Marchal et al (2000), mentioned that “Somalia’s communities have had to deal with a period of statelessness for longer than any other society in the contemporary world.”

It also ranks among the lowest countries in the world on UNDP’s Human Development Index (HDI). It might, therefore, seem reasonable to view Somalia as a country left out of the loop of new global markets, technologies, politics and cultures. In reality, however, Somalia has had a complex and uneven set of interactions with global actors and trends.

For a period of 21 years, Somalia existed under the authoritarian regime of Mohamed Siyad Barre, whose adoption of                                                                                                             “scientific socialism" led to the imposition of a Statist economy. Somalia’s low rate of urbanization and the small number of foreigners in the country at the time accounted for the low level of exposure to the more obvious global trends.

The lack of outside influences was maintained by restrictions on the importation of foreign books and periodicals. Although viewed as a society in isolation, Somalia’s geographically strategic location in the Horn of Africa meant that, between 1960 and 1990, it attracted one of the highest amounts of per capita foreign aid in the world. The effects on the expansion of the civil service, military build-up, industrial development, patronage and corruption in the financial sector are difficult to overstate. In the mid-1970s, Somalia had one of Africa’s largest standing armies, and spent between 40% to 50% of its budget on defence and security.

External donors underwrote nearly all of the human development activities and services. In some cases, the accomplishments have a positive aspect: a thriving export market in livestock and bananas and cereal production, though even these activities enjoyed the benign neglect of the Somali State, rather than its enthusiastic support (especially in the case of livestock). Unfortunately, the State never came close to sustaining itself on locally generated revenues.

Globalization resulted in the collaboration between the East and the West. Somalia’s strategic importance was based on East/West competition in the Horn of Africa. But Siyad Barre was oblivious to the changing international situation, and the possibility that Somalia’s loss of strategic importance would soon be followed by a decline in military aid. The withdrawal of support by the USSR during the Ogaden war was followed by the provision of aid from the US. The amounts provided by the Americans were substantially lower, as they had never considered Somalia as strategically placed as Ethiopia. A series of insurrections began to plague the country, and in 1988 Siyad Barre’s brutal attack on Hargeisa led to charges of genocide and the subsequent freezing of aid from the West.

Within two years the regime collapsed, the end of the Somali State came shortly after, followed by a civil war. Siyad Barre’s regime and its manipulative relationship with global partners on opposite ends of the political spectrum left a dangerous legacy. The massive amounts of weaponry provided by its former patrons contributed to the violent warfare and banditry experienced in 1991-1992. Siyad Barre’s previous manipulation of clans had created an atmosphere rife with inter-clan mistrust and hostility.

The abuse of power and repression suffered by the Somali people left a deep distrust of any central government. Finally, the high levels of corruption and personal wealth amassed during the days of massive foreign aid donations continue to fuel the fixation that Somali factional leaders have with foreign assistance. To this end, Somali leaders still believe that if they can create some sort of internationally recognized state, or political structure, international funding will resume on a grand scale.

The UN intervention in Somalia from 1992 to 1995 resulted in a new influx of foreigners, their values and their money, and a new and rapid phase in its globalization. Somalis who had cultivated contempt for the Western languages suddenly found them useful in acquiring well-paying jobs. Foreign products (sodas, computers and other items) which had, until then, been prohibitively expensive (or simply prohibited) made an appearance. Losing one’s life over inter-clan conflict became less tolerable, as many Somalis realized that a different way of life existed, and might even be within their reach.

Somalis came up with a number of ingenious strategies to please donors, while at the same time getting access to the resources available. During the period from 1960 to 1969, Somalia had experimented with multi-party democracy. After that, it entered a period of nationalism and repression, together with the prohibition of local NGOs and political parties. The international presence in Somalia after 1992 was looking for political movements of one sort or another. Somalis responded by establishing factional organizations, then a number of local NGOs, and then systems of representation by elders (whose traditional influence had been, tour a tour, undermined and enhanced under Siyad Barre).

Although these groupings have roots in the indigenous cultures of the region, it is clear that most of them reflected the desire to obtain a share of foreign aid, using paradigms and structures acceptable to the international community. For example, most of the many local NGOs that emerged during this era were known as ‘pocket NGOs". They were simply fronts for factions or businesses formed to secure grants and contracts from international agencies, which had been encouraged to work through ‘local counterparts’. When aid began to dry up in 1995, these NGOs disappeared. Those that remain now tend to be authentic, and will perform useful service, provided that they are able to maintain their independence from clans and factions.

One symptom of globalization is a retreat of sovereignty in a market-driven global environment. Sovereignty operates in the context of political solutions to problems, but the market imposes economic realities that often assume primacy over national laws and the wishes of the citizens. In this case, national laws (if they exist), become invalid, or are overridden by multinational business interests. An example of this was the proposed Multilateral Agreement on Investment (MAI) that would have given investors rights to compensation by governments if their actions (for example, to protect their workers or the environment) undermine investors’ ability to reap profits.

In a global counter-effort, arrays of international groups were able to stop this particular measure, but the World Trade Organization has provisions that are equally worrying. The MAI and WTO issues fall within the realm of legal business interests. However, illegal international commercial activities often involve exploitation of resources, or other activities within the boundaries of other countries that are ignored unless international force is brought to bear on the culprits.

One example of this, which has affected Somalia, is illegal fishing within territorial waters (although it is possible that some of the fishing companies had received permits from faction leaders). Another is the dumping of toxic wastes along the Somali coast, possibly by Swiss and Italian firms who specialize in this business. The countries involved in dumping and illegal fishing are reported to include Italy, Russia, Ukraine, Spain, Portugal, Romania, South Korea, Taiwan, Thailand, Pakistan, India and Kenya. Ironically, the combination of illegal dumping and fishing can pose health hazards to consumers in other countries, as there is no regulation of either activity. In the end, it might be Somalia’s fishing industry whose reputation is damaged if the fish stocks are contaminated by toxic or nuclear waste.

Summarily, the above arguments show that even though we cannot discount local factors as contributing agents to the problems that led Somalia to its present status of an African failed state, this analysis shows that globalisation as represented by the actions/inactions of metropolitan financial powers and international organisations played dominant roles in exacerbating the problem.

3.3.    THE LIBERIAN EXPERIENCE

In his work entitled “The Impact of Globalisation on Liberia’s Ecosystem” Makina (2011), stated that “contrary to global socio-economic expectations, the West African state of Liberia has been slowly capitalizing on the growing and unique human interaction and interconnectedness sweeping the world in the name of globalization”.

Decades of recurring civil wars, coup d’états, endemic corruption, environmental pollution, and protracted insecurity has made Liberia a laughing stock in a world experiencing tremendous economic globalization. Despite Liberia’s proximity to the United States in terms of culture, politics, and history and despite Liberia containing abundant exploited and unexploited natural resources, the country has not achieved much in terms of economic globalization.

Liberia is party to the following International Agreements: Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Desertification, Endangered Species, Hazardous Wastes, Ozone Layer Protection, Ship Pollution, Tropical Timber 83, Tropical Timber 94, and Wetlands. It has signed but not ratified the following agreements: Environmental Modification, Law of the Sea, and Marine Life Conservation. The unemployment rate of Liberia is 85%; population below poverty line is 80%; as of December 2008, commercial bank prime lending rate stood at 14.4%; inflation rate (consumer prices) stood at 11.2% (2007); as of 2006 Liberia’s estimated exports was $1.197 billion while its imports was estimated at $7.143 billion for the same year.

Furthermore part of the negative consequences of globalisation on Liberia includes tropical rain forest deforestation; soil erosion; pollution of coastal waters from oil residue and raw sewage. Often, MNCs have been accused of practicing varying forms of exploitations: manipulation of child labor and environmental degradations in regions governed by corrupt regimes where laws are lax and ineffective. Reports abound of workers suffering untold health hazards while perilously toiling extended hours in poor conditions. Liberia’s European owned timber industries have been implicated in illegal arms trafficking.

For example, according to a 2003 report, arms shipments for Charles Taylor arrived at ports controlled by the timber industry. The report further affirms that arms shipments arrived from Eastern Europe every two to three weeks via Nigeria and Libya before being dispatched to their right destinations to wreak havoc on peaceful civilian populations.

According to Tiepoh (2001), “Since the inception of the IMF Staff-Monitored Program (SMP), the country has been under a tight monetary regime, with the Taylor government required to refrain from borrowing from the Central Bank and private banking system.”

IMF Staff reports indicate, for instance, that net claims on government from the banking system have increased only "marginally" (1.2 percent) for 1999. However, in spite of this obvious lack of government competition over loanable funds, average lending rates have been extremely high (from 26 percent at the end of March 1998, they fell only to 17 percent at the end of October 1999).

Such high interest rates are therefore more a result of the extreme lending risk conditions facing banks, and the government’s own tight monetary policy which has possibly caused a shortage of loanable funds. In short, the theory of sound finance is at least problematic in this particular Liberian case.

Notwithstanding, Liberia, which not too long ago emerged out of a self-inflicted civil war of economic and human destruction, and whose economy is still plagued by mass unemployment and hollow growth, has had to travel this traditional route of tight money and fiscal conservatism. It became a regular routine for the then Taylor government to pledge balanced or surplus budgets for each coming fiscal year, even though such commitments are hardly kept.

For instance, under pressure from the international institutions, such as the IMF, the government pledged a balanced budget for 1999 but recorded a deficit of $US2 millions (or 0.5 percent of GDP) for that year. And as if to outdo its previous promise and impress the international financial markets and institutions, the government again targeted a surplus of US$2 million for the January-June 2000 period, only to register a deficit of $US4 million (or 1 percent of GDP). A balanced budget on a cash basis was also pledged for the last half of 2000.   In all cases, these deficits were incurred not for productive investment activities but for consumption expenditures, such as purchases of government vehicles and presidential and security-related outlays (IMF Staff Country Reports for 1999 and 2000).

In the final analysis, Liberia’s socio economic problems are etched in poor leadership, local struggles for power, large scale official corruption, and as well the critical effects of the wild fire of globalisation.

          SUMMARY

In this chapter effort was made to examine other African case studies as regards the issue of globalisation and development in Africa. The comparative analysis shows that these countries share common features of underdevelopment with Nigeria especially with regards to declining economic fortunes, rising inflationary and unemployment rates, increasing poverty and disease levels, rising crime rates, arms proliferation, communal conflicts, environmental degradation, falling educational standards, etc.

The analysis also shows that these countries constitute a part of the global south that received the short end of the stick as far as the sharing of globalisation benefits is concerned.

CHAPTER FOUR

PRESENTATION AND ANALYSIS OF RESEARCH QUESTIONS

4.0.    INTRODUCTION

In this chapter effort is made to conduct an analysis of the data reviewed in subsequent chapters narrowing it down to our case study i.e. Nigeria.

          The chapter sets off with an in introductory analysis of the effects of globalisation on Nigeria’s economy.  In the succeeding sections the researcher uses secondary data to test the research questions presented in chapter one.

4.1.    EFFECTS OF GLOBALISATION ON NIGERIA’S ECONOMY

Nigeria got its independence from Britain on the 1^st of October 1960.  All economic indices were in its favour as at then.  In the first place, it is the most populous country in Africa.  It has also been gifted with abundant natural and human resources as well as strategic location.  Agriculture used to be the mainstay of its economy till early 1970s when oil was discovered in commercial quantity and this coupled with the oil boom saw the country treading the path of prosperity and self-sustenance.  Unfortunately, this was not to last long as the world oil market crashed at a time when the agricultural sector had been almost completely neglected.  This coupled with instability in government resulting from several military coups and counter coups made the country lose its focus.  As a result of this corruption, arrogance of power, fraudulent activities in high places, general unemployment, increased poverty, prevalence of predatory diseases became of the order of the day in the hitherto, promising country.

It is a combination of these factors that led the country under the leadership of General Babangida to resort to the International Monetary Fund (IMF) to assist Nigeria with loan to enable it address its lingering economic problems.  Even though Nigeria did not take the loan the Federal Government adopted the conditionalities attached to it which basically entail changing the structure of the country’s economy from an import dependent economy to an export-oriented economy.  Some of the tenets ingrained in these conditionalities include currency devaluation, privatisation of government parastatals, less government intervention in economic activities, as well as reduction and or outright removal of subsidies on services hitherto enjoyed by the populace.

However, adoption of these policies instead of serving as remedy for the country’s socio-economic problems, only added to their dimension and intensity. For instance, the country continued to witness rising poverty level, low investment drive within the economy, corruption and self-enrichment in high places through mindless looting of state treasury, among many other such vices.  The educational sector also continued to suffer from one form of crisis or the other thus drastically destroying the quantity and quality of education available in the country.

The rising level of unemployment rate also continues to be a stumbling block to the country’s development drive.  Thus, most graduates could not secure employment, as jobs became very scarce.  Meanwhile, the country’s abundant resources are daily been shared among a very small percentage of the population with the resultant benefits going to only a few collaborators of western capitalist nations at the expense of the majority.

It is such unhealthy state of affairs that gives birth to several uprisings in the Niger Delta region where unemployed and hungry youths engage in vandalisation of oil installations to protest their daily degenerating living standards in spite of the stupendous amount of wealth extracted from their backyard.

At the general societal level, the country has been engulfed by several ethno-religious uprisings since the adoption of IMF conditionalities.   Some of these conflicts have their roots in earlier colonial policies.  For instance, the lingering Tiv/Jukun crisis, Ife-Modakeke crisis, the Uguleri-Umuleri crisis arise, to a large extent, as a result of boundary disputes.  This is rooted in the fact that the colonialists created entities without due consideration of the peoples socio-cultural affinities and common peculiarities.  Thus, in such areas, there are frequent eruptions of crisis leading to loss of lives and destruction of properties.  Furthermore, the society has been divided along ethnic and religious lines since the return of democratic rule in 1999. 

It is on record that several lives have been destroyed in several conflicts in various parts of the country since 1999.  Such crises include the Ketu, Mile 2 Ogbomosho crises in the South West between the Yoruba-dominated Odua People’s Congress (OPC) and Hausa settlers with their attendant spill over to areas like Kano in the North and some parts of the South East.  The Kaduna mayhem of February 2000 and its aftermath also increased ethno-religious tensions and mutual group suspicion and distrusts in the country.  Furthermore the 2011 post elections violence and the Boko Haram insurrections are very sore reference points that the country is battling to contend with.

The overall effect of all these ugly events is that they have in them, the potent capacity to retard any development effort. For instance, the failure of the Obasanjo II administration to realize its principal foreign policy objective of attracting foreign investors into the economy was largely attributed to this. This is because foreign investors will not be willing to stake their monies in a country where there are increasing cases of communal distrust, violent inter-tribal conflicts, collapsing infrastructure, increasing cases of armed robberies, prevalent activities of dupes, tricksters and swindlers among many other such negative tendencies.

These are some of the effects of the social conflicts that engulf Nigeria which continue to retard its development efforts. This, as argued above is the result of the wholesale adoption of IMF and World Bank policies and conditionalities instead of sound and realistic home-grown policies that are in line with the countries socio-economic realities.

4.2.    ANALYSIS OF RESEARCH QUESTIONS

In this section, attempt is made to answer the research questions proffered in chapter one vis-à-vis available data on the subject of the research work i.e. Globalisation and Development in Africa (2000-2010): A case study of Nigeria

4.2.1. Research Question 1:

Is globalisation solely responsible for Nigeria’s numerous economic problems?

This work has established, through reviewed literature that globalisation is one of the key factors responsible for Nigeria’s prevailing economic problems. This is because of the country’s inability to favourably compete with other global economies.  The work established that the discovery of oil in commercial quantity led to the neglect of other vital sectors of the economy e.g. agriculture, solid minerals and development of indigenous technical skills and competencies which would have served as catalysts for homegrown development. Thus, the country becomes a mono-product economy relying solely on oil for its revenues in spite of its much great potential in other areas.

For example, according to www.economywatch.com “Oil and natural gas are the most important export products for Nigerian trade. The country exports approximately 2.327 million barrels per day, according to the 2007 figures.”   In terms of total oil exports, Nigeria ranks 8^th in the world. As of 2009, Nigeria has approximately 36.2 billion barrel oil reserves.

It further stated that “prior to oil production, which surged after the 1970s, agricultural production was the largest export sector for Nigeria. After the country became a largely oil-intensive economy, the agricultural sector took the back seat. However, it still provides employment to almost 70% of the total working population.”

It is therefore evident that it is not only globalisation that is responsible for the country’s economic woes as other internal factors such as poor leadership, massive corruption, manipulation of electoral system by elites, intellectual and entrepreneurial laziness, mutual group distrust and suspicion among the component tribes and regions among many other factors also play dominant roles in compounding the country’s economic woes.

Thus, this research question is rejected on the basis that globalisation is not the sole factor responsible for Nigeria’s economic problems instead it is just one of so many other factors.

4.2.2. Research Question 2:

To what extent do International financial institutions like IMF and World Bank influence Nigeria’s economic policies?

This work has established that Nigeria’s economic policies are to a very large extent influenced by the trio of WTO, IMF and World Bank.  This situation has been more pronounced since the country’s adoption of Structural Adjustment Programme (SAP) in 1986 which essentially contains policy templates dished out by IMF and World Bank.  The fact that the country is a debtor of London and Paris Clubs made it nearly impossible for its leaders to take an independent path to policy formulation.

In this regard for example, Aluko (2002) stated that “the total externally borrowed money by Nigeria was about $17.5 billion between 1978 and 2000.  Although $32.5 billion had been repaid to the external creditors between 1978 and 2000, Nigeria still owed the external creditors $28.5 billion as at the end of year 2000.”  However, the IMF and World Bank had been contending that at the beginning of year 2001, Nigeria still owed $34.5 billion and not $28.5 billion and that Nigeria must reach accord with the London and Paris Clubs of creditors on the debt issue before any rescheduling or relief to her would be considered.

With the above kind of scenario, the country is continuously under pressure by these institutions to devalue its currency, significantly reduce or completely stop government participation in economic activities, removal of social safety nets like subsidies on essential commodities, removal of trade barriers, etc.  These measures which would have been right for well-diversified economies are not only unhelpful but also injurious to mono-product economies like Nigeria especially with the political leadership’s insincerity in exploring other revenue centres of which the country is enormously endowed with.

In the light of the foregoing therefore, this work accepts that to a very large extent, IMF and World Bank play significant roles in determining Nigeria’s economic policies.

4.2.3. Research Question 3

Has Nigeria and other African countries derived any benefits from globalisation?

It has been established in the introductory part of this work that the whole essence of globalisation is to bring about rapid growth and development of world economies in such areas as significant improvement in science and technology through transfer of technology among nations, poverty reduction, infrastructural development, improved child and maternal healthcare, education, gender equality, employment generation, bridging the gap of income inequality, better and enhanced communication and transportation system among many other such lofty objectives.

Looking at it from this point of view, the experiences of Nigeria and other developing countries in terms of benefits of globalisation can be said to be mixed in nature. For instance, Nigeria recorded significant improvement in the area of communications especially with the advent of GSM in August 2001.  According to the Sun Newspaper’s editorial of August 10, 2011, at independence in 1960 Nigeria had 18,724 telephone lines which translated to a tele-density of about 0.5 telephone lines per 1,000 people which over the years rose to 400,000 and 25,000 analogue mobile lines for a population of 120 million before 2001.

These figures have now grown from 75 million in 2010 to over 90 million today thus making Nigeria the largest GSM market in Africa. The tele-density now stands at 65% of the population from almost zero point before the advent of GSM. 

The gains of the GSM revolution also includes over $18 billion private sector investment with over N300 billion contributed to the national purse through frequency spectrum sales and 4% contribution to GDP as annual revenue mobile service. The GSM revolution has also facilitated internet access and created millions of private sector jobs for the country’s teeming population.

In view of the above facts, this work accepts that in spite of the very negative consequences of globalisation on Nigeria’s and other African countries’ economies the country has recorded some benefits sequel to it especially in the area of rapid improvement of its telecoms sector, intervention projects by International organisations like polio eradication and roll back malaria programmes.

This work therefore accepts this research question that Nigeria has indeed recorded some benefits from globalisation in spite of its many negative consequences.

4.2.4  Research Question 4

Is there linkage between the rampant occurrences of social conflicts in Africa and globalisation?

In its review of other African case studies in the third chapter, this work established a strong linkage between globalisation and development and manifestations of social conflicts in Africa.  For instance it established that the Rwandan genocide of 1990 was largely fueled by the collapse of the country’s economy under the tutelage of the IMF. That economy, the work established, depended largely on the export of coffee, which used to provide Rwanda with about 80% of its foreign exchange earnings.  The Tutsis constituted a rentier class that profited from coffee export which (coffee) was grown mainly by the Hutus.  However, local self-sufficiency in food was achieved and protection for local production existed up till 1990 when it was lifted with the adoption of IMFs Structural Adjustment Programme.

Furthermore, the work established that the political uprisings that led to loss of so many lives in Somalia, Liberia, Nigeria, etc. are largely traceable to globalisation whether in its modern form as we know it today or in its colonial ramification.  For example the work shows that the long standing boundary disputes between the Tivs/Jukuns, Ife/Modakeke, Uguleri/Umuleri are traceable to the arbitrary creation of political units by colonialists without due consideration of the peoples socio-cultural affinities which over the years leads to deep seated mutual suspicion and distrusts among them.

Also, in its final report submitted to the Federal Government of Nigeria, the Galtimari Committee on Boko Haram crisis blamed the violence largely on failure of governance, inadequate security intelligence and the existence of private militias founded and funded by politicians and individuals. The Committee also underscored unemployment as a major contributory factor and urged governments at all levels to initiate programmes to address the problem (Nigerian Tribune Newspaper, October 19 2011).

In the light of the above therefore, the work has established a strong connection between globalisation and occurrence of social conflicts in Africa.  Most of the conflicts in spite of their socio-political nature have economic undertones as well.

4.2.5. Research Question 5

What is the relationship between Nigeria’s collapsing industrial and infrastructural base and globalisation?

This work establishes that one of the cardinal principles of globalisation is the removal of trade barriers such that goods and services produced in any part of the world can reach other parts without restriction. The work however shows that such competition is not based on a level playing field among the competitors.

For example, the Central Bank of Nigeria Governor Sanusi Lamido Sanusi speaking at the 2010 KADCCIMA end of the year Annual Dinner stated that “No country in the world can survive industrially with such an unfavourable competition and I have been having this argument with the World Bank and IMF and we cannot accept such unfavourable competition.”

Also according to the Manufacturers Association of Nigeria (MAN), “a total of 834 manufacturing companies closed shop in 2009 as a result of their inability to continue to cope with the challenges posed by the harsh operating environment in Nigeria”. The implication of this according to Dr. Warea Thomas an economic analyst with UNDP is that “when a company stops operation, the workers there become the frontline victims. If 834 firms were officially given by MAN to have closed shop in 2009, it is easy to speculate that not less than 83,400 jobs were lost in that year alone; if we assume that they were all medium-size manufacturing firms, with each having 100 workers.

Also The National President, Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture, Dr. Simon Okolo, blamed the collapse of the manufacturing sector on the introduction of SAP in 1986. His words: “The introduction of the obnoxious SAP and the devaluation of the Nigerian currency (naira) by the Babangida government (especially with some of the conditions of the IMF Loan) in 1986 posed a grave danger to manufacturers, as those of them that used imported raw materials could no longer conveniently do so due to the prohibitive cost of imported goods as a result of naira devaluation.

In view of the above and other reasons advanced in the earlier parts of this work, the work accepts this research question that there is a strong linkage between globalisation and the collapse of Nigeria’s industrial and infrastructural base.

SUMMARY

In this chapter effort has been made to summarise the effects of globalisation on Nigeria’s economy.  The chapter also presents the findings of the work vis-à-vis the research questions. Out of the five (5) Research Questions four (4) i.e. RQs 2-5 have been proved and accepted while RQ 1 has been rejected.

CHAPTER FIVE

SUMMARY, CONCLUSIONS AND RECOMMENDATIONS

5.0.    INTRODUCTION

In this Chapter, attempt is made to conduct an overall summary of the entire study.  Also conclusions are drawn based on the facts examined in the various chapters of the work. Recommendations are also given based on the conclusions. At the end of the chapter, areas of further study are identified for those who would wish to conduct further studies on subjects related to the issue of globalisation and development in Africa.

5.1.    SUMMARY

The central theme of the work is Globalisation and Development in Africa – 2000-2010: (A Case Study of Nigeria) and it is divided into five chapters. In chapter one the researcher started with the background to the study in which the subject matter was generally introduced.  This provided the premise for the entire study.  Also the statement of the problem, objectives of the study, scope of the study, significance of the study, research questions, research methodology and definition of terms were all covered in this chapter.

In the second chapter of the work the researcher reviews relevant literature on the subject under study. The chapter reviewed the works of writers on the concept, features and instruments of globalisation. It also looks at the difference between globalisation and internationalisation.  Furthermore, it reviews the Structural Adjustment Programme (SAP).  It as well touches on the concept of development and identified the theoretical framework of the study which is based on the Dudley Seers’ development theory.

In Chapter three, the study conducted an in-depth analysis of three (3) other African case studies covering the experiences of Rwanda, Somalia and Liberia with regards to their experiences on the issue of globalisation and how it affects their development drives.

The fourth chapter dwells on the impacts of globalisation on our main case study i.e. Nigeria. Afterwards, the research questions were analysed vis-à-vis, the reviewed literature and also in line with the theoretical framework of the study. Four of the research questions i.e. RQs 2-4 were affirmed while RQ1 was answered in the negative.

Chapter five gives a general summary of the work, draw conclusions from the findings of the work and offered recommendations.  Also in this chapter areas of further study were recommended for future researchers who would wish to study areas related to the issue of globalisation and development in Africa.  Authors whose works have been consulted in the course of the study were duly acknowledged in the references using the APA style of referencing.

5.2.    CONCLUSIONS

Several conclusions have been reached from this study conducted on the subject of globalisation and development in Africa.  The general conclusion of the study is that globalisation has played a key role in Africa’s underdevelopment with particular emphasis on Nigeria.  This conclusion is premised on Dudley Seers theory of development which forms the theoretical framework of this study due to the linkage between the three indices of poverty, unemployment and income inequality which are rampant in Nigeria and globalisation. The conclusion is equally based on the following sub-conclusions drawn from the study.

·        That even though globalisation plays a dominant role in Africa’s underdevelopment other factors such poor leadership, corruption, mutual group distrusts and suspicion, intellectual and entrepreneurial laziness among many other such internal factors also play key roles in bringing about Africa’s underdevelopment.

·        That metropolitan trade and financial institutions especially WTO, IMF, and World Bank play dominant roles in influencing Nigeria’s economic policies.

·        That Nigeria has benefitted from globalisation particularly in terms of development of its telecoms and information technology sector and also through intervention projects by international organisations and CSR activities of some MNCs.  This is in spite of the many negative consequences of globalisation.

·        That globalisation has played a dominant role in bringing about social conflicts in Africa.

·        That there is a strong linkage between globalisation and collapse of Nigeria’s industrial and infrastructural base.

5.3.    RECOMMENDATIONS

Based on the conclusions drawn from the study, the following recommendations are hereby given:

·        That African governments must strive to subordinate external relations to the logic of internal development.  This is because no meaningful and sustainable development could come from outside a country without due consideration of its internal peculiarities.  The experiences of the Asian Tigers are very good reference points here.

·        The principle of less government participation in economic activities which is a component of globalisation must be strongly resisted by African governments.  This is because for any country to achieve meaningful development the visible hands of government must be seen regulating its activities, taking the right measures at the right time, thus creating enabling environment for the takeoff of sustainable development. The case of US’s President Roosevelt’s use of government machinery to ginger up the American economy in the 1930s in the twilight of the great depression is a point of reference here.  There is no reason why the destiny of Nigeria and other African countries must be left to the dictates of the ‘market’.

·        The issue of regional integration should also be taken seriously by African governments.  Such integration will be efficacious in dealing with the development problems of the continent.  This is because with identical peculiarities, the coming together of the countries in a concerted alliance will help them to effectively tackle their common problems and as well speak with one voice on global issues.

·        It is also high time, that steps are taken by African countries to form a coalition of debtor nations so as to fashion ways of renegotiating the terms of settlement of their external debts.  Such a step is desirable because it will help counter the activities of other creditor nations who formed alliances in the form of London and Paris Clubs to defend their interests by further suffocating the already exploited debtor nations.

·        The problems of incessant social conflicts in Africa which gives birth to several internecine and genocidal conflicts must be effectively checked through realistic and truly representative conciliatory summits of aggrieved communities in war torn countries and potential hotbeds as no meaningful progress could be recorded in an atmosphere of insecurity and frequent clashes.

·        There is also the need to diversify the economies of African countries.  This is because most of the economies are mono-cultural in nature while viable productive sectors are left grossly unharnessed.  Due attention must be shifted to the agricultural sector through provision of incentives that will make it more attractive to the populace. Furthermore, the government must embark on proper regulation of pricing and supply of agricultural commodities.

·        Moreover, the leadership question must be squarely addressed in Africa.  It is a fact that one of the central factors posing obstacle to Africa’s development drive is poor leadership.  Towards this end, sincere, qualified and progressive minded leaders must be elected into public offices and given the mandate to turn around their economies.  Also efforts must be made to resist exploitative leaders whose sole ambition is to capture the machinery of government with the view to enriching themselves and their godfathers.

·        The role of multinational corporations as agents of exploitation must also be viewed seriously.  The right atmosphere must be created for indigenous industries to thrive.  In doing this, the influx of foreign materials with local substitutes must be seriously checked in the continent.  This is because since the advent of globalisation this has been a major bane to Africa’s industrialization drive.  The case of the Nigerian Textiles Industry which today, is in a state of total collapse due to harsh operating environment is a case in point here.

5.4.    AREAS OF FURTHER STUDY

The subject of globalisation and development in Africa is a very wide area of study which cannot be comprehensively covered in a work of this nature.  This is because as development is multi-facet so is globalisation. It is therefore suggested that future researchers in this area should consider venturing into the following areas:

·        Globalisation and Food Security in Africa

·        The Effects of Globalisation on Africa’s Educational Development

·        The Roles of Multinational Corporations in Retarding the Progress and Development of Third World Countries in a Global Economy.

·        The Effects of Globalisation on the Military and Intelligence Networks of African Countries.

·        Globalisation as a Threat to Cultural Identity in Africa

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