Globalization (2008)

Globalization and the challenge for Nigeria’s

Development in the 21st Century
Solomon O. Akinboye, Ph.D.
University of Lagos
Nigeria

Abstract
The dominant feature of global economic trends in contemporary world system is globalization, which is
being driven particularly by a new wave of information technology that is unparalleled in the history of
humankind. Nation states have consistently intensified efforts towards engaging in business across
national borders and constructing production and distribution networks on a global scale. Thus, the
world today is a ‘global village’ given the unprecedented level of inter-connectedness of political,
economic, social and technological forces that permeate contemporary international system.

The paper recognizes the existence of a global environment that is deeply embedded in interdependency,
and the necessity for Nigeria to minimize the adverse effects of globalization while harnessing whatever
its benefits for national development. It concludes that Nigeria should completely restructure and
transform its political economy in order to frontally confront contemporary global challenges.

Introduction
Globalization constitutes a mega trend in global political economy and has assumed a new phase in
contemporary international economic relations. Given the emergent socio-political and economic
transformation as well as the technological advancement in communication, information, transportation
etc, the process seems to be irreversible. Nation States have indeed consistently intensified efforts
towards engaging in business across national borders and constructing production and distribution
networks on a global scale. Thus, the world today is a ‘global village’ given the unprecedented level of
inter-connectedness of political, economic, social and technological forces that permeate contemporary
global system.

The thrust of this paper is the recognition of the existence of a global environment that is deeply
embedded in interdependency and the necessity for Nigeria to minimize the adverse effects of
globalization while harnessing whatever its benefits for national development. Following the
introduction, the paper examines the phenomenon of globalization and the multidimensionality of its
conceptual usages. It then provides an overview of the two major contrasting paradigms that underpin
discussions on globalization. This is followed by the analysis of the powerful forces that propel
globalization in contemporary world environment. It also discusses the challenges that the current
globalization poses for Nigeria.
The paper in its conclusion submits that Nigeria should completely restructure and transform its political
economy in order to meaningfully confront the challenges of globalization.

Globalization and Its Conceptual Usages

The phenomenon of globalization is a multi-dimensional and multifaceted process that encompasses
political, economic, social and cultural dimensions that have been variously explained in different terms
and contexts. Viewed from a general perspective, the notion of globalization is broad and diverse. Our
analysis in this paper is focused on its challenge for Nigeria’s development in the 21 st century. It is
considered germane however to consider first the multi-dimensionality of its conceptual usages.

Due to its multivariate nature, globalization does not lend itself to easy conceptualization; and like other
concepts in social sciences, it is not amenable to a single, simple and straight jacket definition, which
perhaps explains its various connotations by scholars of different persuasions as internalization,
universalization, liberalization, westernization etc. As Jibrin Ibrahim, drawing from James Mittleman,
insists, globalization is not a single unified phenomenon but rather “a syndrome of processes and
activities, which embody a set of ideas and a policy framework organized around the global division of
labour and power” (Ibrahim, 2002:3). In a similar vein Tade Aina forcefully submits that:

… any meaningful and relevant understanding of globalization… in Africa must go beyond the myths
and ideologies of globalization… to the confrontation with the diverse but actual processes, how they
unfold, their relationships with themselves and other social and economic relations and dynamics. Such
an understanding must also recognize not only the complex but varied history of the processes being
studied but it must reject a monolithic or homogenized under- standing such as that found in the
currently neo-liberal confrontation of the subject. (Quoted in Dauda Abubakar, 2001: 16).

There is therefore no unanimity of opinion on what constitutes globalization; neither is there a consensus
concerning the extent of its advancement as a concept.

For a thorough understanding of the concept however, there is the need to reflect briefly on the thrust of
the discourse which in literature has been classified into three main clusters – globalization as implying
global culture; globalization as the expression of the global political order; and globalization as
depicting global economy. Hence, as Symonides perceptively submits, globalization is generally “the
process of growing interconnection and interdependence in the modern world. It is generated by
growing economic, cultural and political cooperation and links, as well as by the need to respond
together to global problems which can be solved only on a planetary scale” (Symonides, 1998:28).

Dauda Abubakar pungently argues that globalization “entails universalization whereby the object,
practices or even values transcends geo-political boundaries, penetrating the hitherto sovereign nation
state and impacting the orientation and value system of the people” (Abubakar, [Link]). In a broader
perspective, Tade Aina posits that globalization depicts “… the transformation of the relations between
states, institutions, groups and individuals, the universalization of certain practices, identities and
structures, and perhaps more significantly, the expression of the global restructuring that has occurred in
recent decades in the structure of modern capitalist relations (Aina, 1996).

In its most generic and broadest sense, Mike Kwanashie sees globalization as a part of the movement of
history as evident in certain forces that appear to push for increasing integration of human activities with
emphasis in contemporary world focused more on the economic aspect of the process. It is a process of
increased integration of national economies of states with the rest of the international system in order to
create a more coherent global economy (Kwanashie, 1999:17). The process has been increasingly
propelled by the revolutionary trend in information technology that combines advancement in
computing, electronics, and telecommunications which has brought up “a highly dynamic process of
storing, processing, transmitting and presenting information” (Ibid:20). As Nuhu Yaqub copiously
observes, globalization “refers to the tremendous revolutionary changes that have affected our planet as
a result of changes that have also taken place in information and communication technologies -
processes that have, cumulatively, led to the villagization of the globe” (Yaqub, 2003:45).

Broadly speaking and from the perspective of the UNDP National Human Development:

globalization can be defined as a multidimensional process of unprecedented rapid and revolutionary

growth in the extensiveness and intensity of interconnections on a truly global scale” (UNDP: National
Human Development Report, 2000/2001).

From the foregoing, a fundamental feature of globalization is that the economies of modern nation states
have been highly integrated to the extent that the internationalization of trade and economic activities
has become imperative. The interdependency is profoundly informed, as Mufana Lipalile observes, by
enhanced international trade, sustained financial flows, increased inter-country mobility as well as
improved communication arising from the innovative existence of cellular telephones, electronic mail,
the internet and digital satellite television (Lipalile, 2001:296).

Strands of Thought on Globalization

There exists a plethora of works on globalization (see for instance Aina, 1996; Ake, 1995; Appadurai,
2001; Clark, 1999; Nabudere, 2000; Ninsin, 2000; Mittleman, 2000; Rugumamu, 1999; Scholte, 2000;
Tandon, 2000; etc.), perspectives on the subject however differ fundamentally depending on the
ideological conviction of different scholars. In general, the phenomenon has been conceived from two
contrasting paradigms namely globalization as interdependence and globalization as imperialism.
Scholars of globalization as interdependence are of liberal persuasion. They see the concept as a
framework of complex and growing interdependence among nations. The global socio-political and
economic integration is viewed in the context of inter dependencies which has restructured the world
into a new and all inclusive social pattern. They associate globalization with economic liberalization as a
policy option for the development of the south through a process of free trade, investment and capital
flows between countries.

Scholars of globalization as interdependence have consistently maintained that globalization is the

rational end point of human development, and that it is capable of impacting positively on the life of
state actors that integrate their economies. Francis Fukuyama for instance, in his treatise ‘The end of
history and the last man’ perceives globalization as universalization of western values. He proposed the
celebration of a globalized world and the unabashed victory of political and economic liberalism that is
evidenced in the triumph of western ideas and values and in the exhaustion of viable systematic
alternatives to western liberalism ( Fukuyama, 1992). Severine Rugumamu opines that globalization is
not merely a buzzword; rather it is “a new paradigm in international economic relations which
apparently signals the triumph of capitalism on a truly global scale following the end of the cold war, the
collapse of the Soviet system and the dissolution of planned economies, particularly in Eastern Europe”
(Rugumamu, 1999:3).
Jan Scholte identifies globalization as deterritorialization or as spread of supra-territoriality. He opines
that the phenomenon constitutes a transformation in the spatial organization of social relations and
transactions (Scholte, 2000). Proponents of globalization as inter-dependency therefore see a better
world if nation states would realize and utilize to the maximum the opportunities presented by inter-
dependency resulting from globalization. Their belief is hinged on the premise that interdependency has
opened up the world, reduced the abuse of human rights, and eradicated, to a large extent, social and
economic injustices by national governments.

Advocates of globalization as imperialism on the other hand are mainly of the radical persuasion and
political economy genre. While the interdependence school of thought on globalization claims that
interdependence is the reality of globalization and that it constitutes a positive development in world
affairs, scholars who view globalization as imperialism insist that the phenomenon as it is today
represents nothing but capitalism and imperialism. Ali Mazrui calls it “the new global imperialism”.
Scholars that allude to the same position have proclaimed that globalization is a transformatory capitalist
project, which can only serve to impoverish the underdeveloped nations on the fringe of the world
capitalism. Claude Ake, for instance, sees globalization as a capitalist project that is structured to
perpetuate the underdevelopment of Africa and other Third World countries. He construed globalization
in terms of profit maximization, and perceptively referred to it as the march of capital across the world,
in search of profits; a process that is facilitated by the expansion of multinational corporations, and
driven by the technical advances in communication. In his words:

Globalization is about growing structural differentiation and functional integration in world economy; it
is about growing interdependence across the globes, it is about the nation-state coming from under
pressure from the surge of transnational phenomenon; about the emergence of a global mass culture
driven by mass advertising and technical advances in mass communication (Ake, 1995).

Alluding to Ake’s contention, Edwin Madunagu sees globalization as the rapid expansion of capitalism.
He believes that:

The rapid expansion, through giant multinational companies, of capitalism to several areas of the world,
including areas where it had hitherto been resisted or put in check side by side with this expansion, is the
phenomenal development of computer technology, telecommunication and transportation. The latter
serve as the main vehicle of the former. Globalization is globalization of capitalism, not the
globalization of a “neutral” economic system or globalization of post-capitalism as the imperial
intellectuals and their slaves in the underdeveloped countries would have us believe (Madunagu,
1999:53).

Daniel Nabudere similarly submits that globalization is a capitalist economic project that is propelled by
two contradictory movements – first, the tendency of economic globalization to create uniformities in
the entire world; and second, the tendency of marginalization and fragmentation, which the phenomenon
connotes. He summed up that these two processes make it possible for globalization to spread out its risk
and losses throughout the global arena (Nabudere, 2000).

Thus, can it be contended that globalization appropriates development for one part of the world and
underdevelopment for another? How has this been actualized? and what should be done in order to
confront the challenges posed? There is no doubt that globalization has impacted differently on the two
parts of the global system. While it strengthens the already developed advanced western countries, it
marginalizes the peripheral economy of the Third World countries. K.A Ninsin elegantly captures the
scenario in his description of globalization as “the engine by which the economies of the world’s weaker
nations are being opened up and subjected to the hegemony of the developed capitalist economies”
(Ninsin, 2000:5). Felix Oriakhi alludes to the same position when he states “globalization super-imposes
the values of the North on the South by accelerating the successful penetration of capitalism and other
bourgeois ethos into the nooks and corners of Asia, Latin America and Africa and the erstwhile non-
capitalist states of Eastern Europe” (Oriakhi, 2001:24). In a seminal work, Esko Toyo insists that
globalization is an alternative imperialist policy deliberately designed to maintain their structure of
impoverishment on their satellite states (Toyo, 2000).

The two paradigms - globalization as interdependence and globalization as imperialism-generally reflect

the deep ideological and political predilections of the different scholars. What is of more concern and
relevance however is that globalization, from which ever perspective it is construed, has its merits and
shortcomings; and as Bill Clinton, former US president, contends, it is “ a fact and not a policy option “
(Quoted by Lipalile, 2001: 295). Cuban president, Fidel Castro’s position is equally germane.
Globalization, to him, portends a law of history and the consequence of the development of the
productive forces, or in simple terms, the development of science and technology (Ibid). Hence, inspite
of its adverse effects, it is in the interest of a nation to harness whatever the benefits of globalization for
upward national mobility.

Forces of Globalization
Three main powerful forces that propel globalization in contemporary global environment can be
discerned, namely, technological revolution, economic liberalization and democratic system of
governance. (Usman, 1999:45 – 63; Kwanashie, 1999: 15-27).

Technological revolution

That the world is currently experiencing phenomenal changes in social, political, economic and
technological spheres cannot be disputed. One fundamental instrument for this increasing transformation
is technology, especially computer technology, and the evolution of low cost, global communications
system which constitute major challenges that will dominate and fundamentally shape developments in
the 21 st century, particularly in the economic and financial sectors. (Usman, 1999:48). The revolution
in computer technology, has led to the advancement of information technology, which has in turn
enhanced the level of information transmission and business transactions across the global system.
Indeed, the revolutionary changes that have occurred in computer technology since the latter part of the
20 th century have brought about tremendous improvements in all facets of human endeavour.

Today, the use of computers has increasingly become quite commonplace in pure scientific research,
social science and especially in managerial decisions. The significance of the strong force of technology
can best be illustrated by reference to the financial system. Globalization and information technology
have thrown up formidable challenges for national economies, especially the financial system, by
reducing the world further into a global village, and as well by providing enormous information through
a wide range of inter-connectivity. The interconnectivity (network) of computers has given rise to the
development of Internet, which constitutes the largest network and largest reservoir of all types of
information in the global system (Ibid).

Furthermore, information technology in particular has combined progress in electronics,

telecommunications and computing to bring about a highly dynamic process of storing, transmitting,
processing and presentation of information. This has led to increasing capacity for new and efficient
responses to antiquated problems. For instance, more efficient production processes are now possible
and countries with the necessary capacity are embracing and adopting them in a bid to maintain a
competitive edge within the changing world environment (Kwanashie, 1999:20). Information
technology has equally provided tremendous opportunity for the exploitation of economies of scale,
making for rapid growth and conferring comparative advantage to those that have access to it.
Consequently, it is increasingly promoting the internationalization of productivity and markets, which is
crucial to the globalization process (Ibid).

Economic liberalization

One dynamic and fundamental force in contemporary globalization process is economic liberalization,
which has been embraced by virtually all countries and major international institutions within the global
system. Economic liberalization refers to the process of achieving unobstructed economic activities. It
seeks to remove all obstacles to trade, production and investment; emphasizes freedom of economic
activities and dominance of private enterprises; and aims ultimately at the divorce of the state from the
economy (Onyekpe, 2001:52). At the global level, economic liberalization attempts to make all
economies fully open for free inter-penetration and inter-state access.

Issues relating to the forces of economic liberalization are generally more complicated and not as
obvious as in technology. In pursuit of economic liberalization, the global system is polarized into
various groups. In one group are the industrialized (G8) countries that work intimately with the world
financial (IMF, World Bank) and Trade (WTO) institutions, and pursue a broad and ambitious agenda
that attempt to build international capitalism on the foundations of open world trade and capital flows,
privatization, balanced budget, freeing up of exchange controls and similar deregulation and
liberalization measures (Usman, Op. cit: 52).

In another group are the ‘Asian- Tigers’ who have, through economic liberalization process, achieved
unprecedented growth in their fragile economies. The countries, in addition to economic liberalization,
have used other policy instruments to expand Foreign Direct Investment (FDI) and attain higher
economic growth. These include developing a strong production base; opening up of new investment
areas; as well as designing and implementing sound macro-economic policies. They have also created a
conducive climate and stable political and economic environment to attract foreign investments. These
policy measures have enhanced the expansion of FDI in the countries, and led to their rapid growth and
development. Other groups of countries that have achieved momentous feat as a result of economic
liberalization include the transition economies of the Eastern Europe as well as the Latin American
countries. Also included are the African States most of which have suffered tremendously from extreme
poverty and lack of policy focus. Thus, it is obvious that economic liberalization is now a common
feature among nation states.

It can therefore be rightly concluded that no country in contemporary world can really be an island unto
itself, either due to its vibrant economic strength e.g. United States or because it decides to close its
doors to the outside world like China successfully did in the past. The critical message of globalization
in this context is that in the existing moment of integration of global markets, Nigeria and other
developing nations have little choice but to try and join the globalization train despite of their
disadvantaged position in the process.

Democratic system of governance

The third major force of globalization in contemporary world is the general acceptance of democratic
forms of governance. In modern political system, democracy is the preferred system of governance. This
is in view of its relationship to good governance with its inherent features including rule of law,
democratic participation, probity, integrity, and transparency. It is also preferred because it posits and
insists that power springs from, and therefore belongs to the people and that those who exercise power
should use it in the interest of the people, or at least, the majority of the people (Yusuf, 1994: 113). In
addition, democracy demands unequivocally that while the majority should rule and even in most cases,
have its way, the minority must be able to have its say, and its say must be listened to while its rights
must be respected and protected. Preference for democracy also springs from the fact that it demands
that people should be availed equal opportunities to participate in the administrative and decision
making machinery of the state; and that there should exist a free, fair and independent judiciary; equality
of all before the law; supremacy of the law; and fundamental human rights for the people (Ibid).

While there has previously been virulent anti-democratic tendencies and suppression of democratic
rights of the people, the pendulum is contemporaneously swinging in favour of democracy and
democratic governance. Democracy, although varied in form, has in contemporary global system,
become widely accepted as the form of governance that advances the interests and aspirations of the
majority of the people. This is underscored by the failure of various authoritarian regimes including the
erstwhile military and civilian dictatorships in many parts of the world, as well as the collapse of the
communist system that provided for usurpation of power by a small clique of bureaucrats over every one
else in the society (Usman, Op. cit: 54). The manner of rejecting and isolating non-democratic regimes
globally also attests to the changing fortune of democracy as a formidable force and most acceptable
system of governance in the global system.

Challenges for Nigeria

Nigeria , at independence in 1960, was largely a producer and net exporter of primary products. The six
major agricultural products then were cocoa, rubber, palm oil, groundnut, cotton and palm kernel.
Although there existed mining and quarrying activities, these were of negligible percentage and never
counted for the economy as a whole. In other words, agricultural produce and raw materials constituted
the sole foreign exchange earner for the country. Specifically, the Nigerian state as an exporter of
agricultural goods had 69.4% of its total GDP for the year 1963/64 comprising the six aforementioned
agricultural commodities (Olaloku, 1979:8).

The trend of having agriculture as the main foreign exchange earner for Nigeria stopped in the early
1970s when the country was suddenly awash with petrol dollars arising from the quadruple increase in
the price of oil in the world market. From 1972 onwards, oil gained ascendancy over all other
commodities as the largest contributor to the GDP, and also as a major foreign exchange earner. There
was substantial increase in oil production accompanied by a sharp increase in the global market price of
high-grade crude oil from low price of $3.8 per barrel in October 1973 to a skyrocketing price of $14.7
per barrel in January 1974. This trend continued till 1981 when the price of crude oil attained a high
level of $38.77 per barrel. Within the same period, total revenue from oil rose correspondingly from
N1billion to N4billion while external reserves increased from N180million to N3.7billion in 1975
(Osaghae, 1998:96).

The increase in national wealth resulted in the government of the day embarking on rapid expansion of
the public sector and squandering of the wealth on expanding distributive instead of productive capacity;
and on increased dependence on external goods and inputs (Ibid). By 1978, oil (Petroleum and
associated components) composed a total of 89.1% of Nigeria’s export as against agriculture, which had
plummeted in its contribution to export to 6.8% in the same year. The fact of the matter is that Nigeria’s
commodity pattern has, since the advent of oil, been a ‘mono-cultural’ one with the product being the
only one the country depends upon for its foreign exchange earning - a situation that has constrained the
pace of its developmental efforts.

Thus, it can be unequivocally asserted that Nigeria’s development impotence cannot be solely attributed
to colonialism, neo-colonialism and imperialism as often perceptively advanced by scholars of radical
persuasion; but also to its own weak domestic economic structure. There is therefore the necessity for
the country to diversify its economic base in order to confront the challenges of contemporary
globalization process and remain relevant in the scheme of world events. The economies of South East
Asian Countries especially the Asian Tigers namely Taiwan, Hong Kong, Singapore and South Korea as
well as Thailand, Malaysia and Vietnam are successful stories of how diversification has enhanced their
economic developments. The success recorded by this Newly Industrialized Countries (NIC) can be
duplicated by Nigeria in its current efforts toward economic transformation.

For instance, as a means of liberalizing its economy, revitalizing its financial sector and generating
foreign exchange earnings, Thailand placed top priority on exports. Its economy was liberalized thus
encouraging foreign investors. The country’s manufacturing sector has emerged as a formidable engine
of development in the kingdom with traditional exports in the agricultural sector performing quite
successfully. In 1996, Thailand exported about US$9billion worth of goods to the European Union
alone, and by 1997, the country’s exports had become highly competitively priced for foreign buyers
(Akinbobola, 1999:65).

Similarly, in the manufacturing sector, there has been a phenomenal increase in the exports categories. A
dramatic development has been the automotive industry in which several big automobile makers have
set up production lines in Thailand, thus making the country to become a regional leader in the
production and exportation of automotive. In 1996, automotive exports to the European Union alone
amounted to US$205million signifying an increase of 38% over the preceding year (The Economist,
cited by Akinbobola: 66).

It is interesting to note however that in spite of Thailand’s advent of high technology, the country has
remained deeply committed to its agricultural base and has indeed emerged as one of the world’s leaders
in agro business. In general, Thailand has confronted the challenge of globalization by liberalizing its
economy, embracing internationalization of capital and opening new markets across the length and
breadth of the world. Hence, Thai’s products (manufacturing and agricultural) are found all over
American, European, Asian and African countries (Ibid). Nigeria can tremendously benefit from
Thailand’s experience. The Nigerian economy must be completely diversified rather than remaining
mono-cultured.

Furthermore, there is the need to ensure a free competitive economy. Taiwan represents one of those
Asian nations that have transited from government guidance to a free competitive economy, and thus
liberalizing its economy for foreign investors. Today, there exists in Taiwan, foreign investments in
construction, power generation, oil refining, real estate, telecommunications and gas stations. In
concrete terms, foreign investment has been quite staggering. For instance, United States accumulated
investment in Taiwan amount to US$7billion representing about 30% of total approved foreign
investment in the country. Taiwan has huge foreign investments in South East Asian countries and all
over the globe. The country also has a large chunk of human resources ready to be utilized by foreign
firms. All these have been made possible because of the country’s dynamic efforts towards a free
competitive economic structure.

The challenges posed by globalization for Nigeria are multifarious. These are considered in the same
manner that we articulated the forces that propel it. First, for the country to be fully integrated into the
world economy and in order to harness the benefits of such integration, it must embark on serious
technological revolution. As Shamsudden Usman pungently remarks, “the pervasiveness of technology
is such that a country ignores it at its own peril” (Usman, Op cit: 56). In order to ensure technological
revolution, the country’s technological base must be developed. Science and technology should be made
a formidable part of the key strategic area of its developmental effort. The need to fundamentally
transform the nation’s educational, health, agriculture and industrial development has therefore become
an imperative demand.

Due attention must equally be focused on information technology and telecommunication. In

contemporary global economy, information technology and the ability to use it are very critical. While
computers and other electronics gadgets are already in place and do not need to be re-invented, there is
the need to ensure that the enabling environment for their uses is provided. Hence, adequate basic
infrastructures such as power supply and telecommunications must exist regularly and uninterruptedly.
Similarly, industrialization, including manufacturing and fabrication should be re-invigorated, while
agriculture should be re-positioned with mechanized farming fully embraced to enhance agricultural
productivity.

The second challenge relates to economic liberalization. The liberalization policy of the ‘Asian Tigers’
tremendously enhanced their development. This entails liberalizing the economy, internationalizing of
capital, opening new markets and attracting new investments. This poses a great challenge to Nigeria.
We agree with Usman that the Nigerian economy must not only be diversified, but also built on sound
economic policies including those that will necessarily ensure increased domestic savings; continued
reform of the domestic financial sector; opening up to foreign capital inflows, while simultaneously
protecting the country from the huge destabilizing effects of short-term, speculative capital inflows; and
together with other developing countries, continue to champion the necessity for the reform of the global
financial system that ensures shared prosperity and a greater inducement to the development of the
weaker countries ( Ibid:58).

The heavy dependence of the country on crude oil exports has unprecedentedly “exposed the economy
to the boom-and-bust cycles and the concomitant unstable and unpredictable volume of revenue
receivable by the government” (Yaqub, 2003:41). For instance, Nigeria’s total export receipts from
goods, services and transfers dropped from N10,899.6 million in 1979 to N7,884.2million in 1983. The
country’s import, at the same time increased from N9,890.1 million to N11.022.1million during the
same period (CBN Economic and Financial Review 1981-1986). This also affects contributions to the
country’s Gross Domestic Product (GDP). For instance as at 1999, oil and gas contributed 36.5% of the
GDP, while agriculture (including livestock) accounted for 32.8%. In the same period, wholesale and
retail trade contributed 16.6%, while manufacturing accounted for only 5.5% of the GDP (Anya,
2001:15). There is therefore the need for the country to diversify the economy and focus on non-oil
sector, particularly agricultural and mineral resources.

In addition, the country should maintain a healthy investment climate that can be cashed on by foreign
investors. It should also pursue efficient and effective economic management of the country’s resources
so as to raise the people’s standard of living and overall economic development of the nation. It must be
stressed however that in its bid to liberalize the economy, the unbridled activities of the Multinational
Corporations in the country should be closely monitored and controlled so that the country will not be
reaped off by foreign capital. The fact that globalization entails ‘opening up’ does not signify that the
economy should be completely left uncontrolled.

Democracy constitutes the third challenge that globalization poses for Nigeria. Democracy has become
an acceptable form of governance in the world system. Indeed, no authoritarian or dictatorial regime is
fashionable any longer in the global environment. As observed by the UNDP National Human
Development Report:

The end of the cold war provided a historic opportunity for a world-wide liberal democratic revolution.
In view of the western industrialized market economies, the collapse of authoritarianism and socialist
central planning has revalidated the claim of liberal democracy, the doctrine of individual freedom and
popular democracy, as an ideology of potentially universal validity” (UNDP, National Human
Development Report for Nigeria, 2000/2001, p.2).

Nigeria regained its civil rule in 1999 after about fifteen years of uninterrupted military dictatorship. The
persuasive lack of democratic system of governance for several years had significantly deteriorated the
developmental pace of the country. Following the restoration of civilian government therefore, there is
the need for democracy to be fully entrenched and sustained. As stressed in the National Human
Development Report, “there must be a strong and vibrant civil society, good governance, effective
dynamic relationship between people and the government and entrusting the management of the state in
the hands of men and women of high technical competence and integrity” (Ibid, p. 42). The country
must be truly committed to, and demonstrate the capacity for good governance as a bedrock for a
durable democracy.

Conclusion

In this paper, it has been demonstrated that globalization as a phenomenon has assumed a new phase in
contemporary global political economy, and that Nigeria must equip and package itself effectively to
confront its challenges in the 21 st century. The paper also articulates the view that globalization in its
current dimension is characterized by three distinct but interrelated features: the integration of the
economic systems of nation states into ‘global economy’; the primacy and supremacy of international
markets and international competitiveness; and the phenomenal rise in the internationalization of labour,
capital and portfolio investments.

The paper critically examined the three forces that propelled globalization namely technological
revolution, economic liberalization and democratic governmental system. It submits that the new thrust
of globalization makes it imperative for nation states to understand the intricacies of the phenomenon so
as to enable them devise strategic ways to harness its advantages. The challenges of globalization must
be faced by developing nations for them to be relevant in the global scheme of things. For Nigeria, in
particular, the challenges are enormous but not insurmountable.

Nigeria cannot afford to remain aloof and be completely isolated from the global economic interplay.
The country should make conscious effort to transform the economy so as to fully harness the benefits
of globalization. The various endogenous and exogenous constraints that have continued to undermine
macro economic stability in the country should be seriously tackled. The critical sectors of the economy
that constitute the basis for sustainable growth e.g. agriculture, mining, industry and energy should be
the core concern of economic policy, and hence properly harnessed for the country’s development.
The nation’s technological base should be re-activated; hence the need to earnestly complete the
Ajaokuta steel rolling mill, the Aladja steel plant and the Katsina, Jos and Osogbo steel rolling mills. In
concert with other African states and using the instrumentality of the New Partnership for African
Development (NEPAD), Nigeria should work assiduously to ensure the collaborative involvement of all
stakeholders in African development through the promotion of regional economic blocs.

Finally, it must be stressed that given the nature and character of the Nigerian state with its inherent
weak domestic base, globalization, certainly has its adverse implications on the nation’s economy.
However, in order to minimize the negative effects and harness the whatever benefits of the current
growing and overwhelming globalization trend; there is the necessity for a complete restructuring and
transformation of the Nigerian political economy.

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