THE IMPACT OF GLOBALIZATION On Industrial Growth Of Nigeria (1985-2011)

The Impact Of Globalization On Industrial Growth Of Nigeria (1985-2011)

Chapter One

Introduction

Globalization remains one of the most controversial subjects of our time. Several authors and ideological operations. Globalization is the close commerce between public economics through trade investment and capital overflows made possible by technological development and advancement in telecommunication world to a global vill. Globalization has evolved over the times but its fleetly boosted after the end of the world war.

According to Giddens( 1990) Globalization can be defined as “ the intensification of world wide social relation which link distant points in such a way that original happenings are shaped by events being numerous long hauls down andvice-versa, irrespective of the ongoing contestation and measures of nebulosity in its uses, it frequently depicts the metamorphosis of the relations between countries, institutions groups and individualities, it describes the growing profitable, political, technological and artistic liaison that connects individualities, business and Government around the world.

Globalization braked during the world war as a result of protectionist programs applied to defend ideological interest by the major protagonists.

The main driving forces of this process are technology, policy and competition and its inferior domestic economics to global request conditions and practices. Developed nations are the heirs of globalization as their share of world trade and finance has expanded at the charges of developing countries. therefore, the process has worsened inequality between the world’s region and furnishing in the developing world. Nigeria has not served from globalization due to mono culture import, incapability to attract increased foreign investment and huge debt. But globalization can be domesticated in the county through diversification of exports debt reduction and expanded development co-operation with other countries. The Nigerian

countries also need to be strengthene as a bulwark against the dictates of foreign capital. All these fulfilled, Nigeria could join the league of countries enjoying the benefits of Globalization.

BACKGROUND OF THE STUDY

Globalization is a system that confers benefits and trains challenges and pitfalls to countries across the globe and has gained instigation from the last quarter of the twentieth( 20th) century. It’s the intensification of cross border trade and increased fiscal and foreign direct investments flows among nations, promoted by rapid-fire advances in and liberalization of communication and information technology. Technology, polling and competition are the forces during globalization. This is attested to, for illustration, by advances in calculating technology, which enables dealers to meet their demands for fiscal instruments similar as barters and future with relative ease. Globalization constitutes a mega trend in global political frugality and has assumed a new phase in contemporary transnational profitable relations, given the merged socio- political and profitable metamorphosis as well as the technological profitable metamorphosis as well as the technological advancement in communication, information transportation etc. The process seems to be unrecoverable. Nations, countries have indeed constantly boosted sweats towards engaging in business across public borders and constructing product and distribution network on a global product and distribution network on a global scale.

The transnational institution that overseen world trade and finance like the IMF, the world Bank, WTO play an decreasingly important part in this period of globalization. Globalization has both negative and positive impacts, amongst the negative impacts are the rapid-fire spread of conditions, crime, lawless medicines, terrorism and unbridled migration, which is one of the topmost problem facing Nigerian frugality. The problem came more pronounced

and exacerbated by the structural adaptation programme( SAP) and more lately by globalization. Given the low position of industrialization and the SAP. Induced under application of artificial capacity in the Nigeria frugality, globalization has restated into the restriction of Nigeria to primary product indeed with this the price of primary goods is extremely determined. This transport Nigeria into a helpless situation where she lacks direct control over the extremity in her frugality because her hands are tied by the terms and dictates of globalization.

The most drastic substantiation of globalization is the increase in trade and the movement of capital stocks, bonds, currencies and other volume of investments from the period of( 1950- 2001). The volume of worlds import rose by 20 times and by 2011, world trade amounted to a quarter of all the goods and services produced in the world. In the early( 1970’s) only$ 10 billion to$ 20 billion in public currencies were exchange daily, by the early part of the 21st century.

further than$1.5 million worth of ten, Euros, bones , pounds and other currencies were traded daily to support the expanded situations of trade investment which is as a result of globalization.

Statement Of The Problem

Globalization is a process of boosted inter dependence which makes it possible for any one( country) to insulate itself and anticipate to develop, the argument is that globalization makes it possible for all nations to profit from interdependence. Interdependence is manifested in the adding profitable liaison among countries through trade and fiscal inflow, it has been argued that interdependence entails amplified threat and misgivings and one major challenge of utmost countries especially developing countries like Nigeria is “ How to Manage this threat and handle misgivings ”, more profoundly, interdependence mean that openings for collaborative earnings are enhances but

vulnerability is also greatly manifested. Developing countries are therefore faced with the exaggeration of vulnerability and occasion.

Globalization is a veritably uneven process with unstable distribution of its benefit and losses. This imbalance leads to polarization between the developed countries that gain and developing countries that lose out( OBADAN, 2001). In this regard, the place of Nigeria in the globalization docket requires some indepth study. To begin with, Nigeria s economically weak due to shy domestic profitable capacity and social structure demanded to boost the country’s productivity, growth and competitiveness.

Secondly, the frugality is made weaker by mono-artistic reliance and infavourable terms of trade in its import trade as well as excruciating debt and debt service burdens. Thirdly, by( 1986), profitable administrations were regulated and the country pursued an expansionary financial and financial policy in its development trouble( Obadan 1998). The problems were aggravated by political insecurity and corruption as a result, investment choices were distorted, which eroded the confidence especially for foreign investors.

Globalization is a dynamic process, the stronger countries are conforming fleetly as the process advances, while the weaker bones find themselves farther marginalized. The Nigerians incapability to profit from internalization is limited by multitudinous factors which includes poor domestic operation of the frugality, interest structural considerations of the frugality and some programs of western artificial countries. The state of backwardness made Nigeria to be heavily reliant on foreign inventories of artificial inputs similar as capital accoutrements , raw accoutrements , spare corridor and other intermediate accoutrements . The challenges now is for Nigeria to use the enormous coffers one has make to coherent, internally, harmonious tone sustaining frugality which will be competitive in the world request. Nigeria must develop the essential physical and mortal infrastructural to contend.

Nigeria can not anticipate to profit from the process f transnational pot without radical confining of her frugality, programs and society.

Exploration Questions

The following questions were posed guiding my exploration for result to the each problems

1. How does globalization affect artificial growth in Nigeria?

2. How has import affect the artificial affair in Nigeria?

3. Why is the rate of globalization in artificial growth of Nigeria veritably low?

Ideal Of The Study

The main ideal of the study is to probe the impact of globalization the artificial growth of Nigeria. Specifically, the ideal are

1. To examine the impact of globalization on artificial; growth in Nigeria

2. To determine the impact of import on the artificial performance in Nigeria

3. To examine if foreign investment affects that growth of the Nigerian diligence

exploration thesis

1. globalization has no significant impact on artificial affair in Nigeria

2. import has no significant impact on the Nigeria artificial sector

3. foreign direct investment and exchange rate has no significant impact on the growth of Nigerian diligence

SIGNIFICANT OF THE STUDY

The profitable applicability of studying the impact of globalization on the artificial growth of Nigeria needs not to

be over emphasized. Globalization has brought rapid-fire change in Nigerian frugality that seeks to increase their share of fiscal and direct investment in the globalization request.

Globalization provides profitable independence and triggers competition, stimulating globalization to elevate the living standard of people in the nation that offer themselves to the world trade, “ We’ve moved from a world where the big eat the small to a world where the fast eat the slow ” as observed by Klaw Schwas of the Dawob world profitable living standard of people have vastly bettered through the request growth within the development in technology isn’t only a stady incrasing demands but also it has led to lesser application.

The result of the study will also be significant in the following way

1. though the help of globalization, there has been easy and accessible communication network which

grease product, distribution of goods and services both domestically and transnational

. Globalization has fleetly improves the social and profitable status of women in the developing world. The explanation is grounded on the fact that in a competitive, globalization world, the part of women becomes indeed more precious.

3. Globalization breaks the accumulative taboos responsible for differencing against people on base of gender, race or religious beliefs and it’s an cure to the intolerant fundamentalism that appear to oppress million of the worlds poorest, globalization offers stopgap that one day they may enjoy the fruit of the west liberal tradition.

4. Globalization has help in the reduction of liability for war between advanced nations. It has also help to increase environmental protection in advanced nations.

Eventually, another factor which is frequently considered as a positive outgrowth of globalization is the lower affectation. This is be cause the request contest stops the businesses from adding prices unless guaranteed by steady productivity. Technological advancement and productivity expansion are two other significance of globalization because since( 1970s) growing internationals contest has touched off the diligence to ameliorate decreasingly.

Compass And Limitation Of The Study

The study covers the growth of the Nigerian artificial sector between( 1985- 2011).

The exploration work has been contained by lack of fund, inadequate data especially on veritably recent profitable performance and limited period of time to get enough exploration accoutrements .