The Effects of Globalization on Developing Economies: The Nigerian Experience

Abstract

This paper examines globalization and its effects on third World Economic development with emphasis on Nigerian economy. Globalization has become a whirl wind blowing across the world due to acceleration in information and communication technology thereby fostering more interactions as it shrinks the geographical boundaries of all countries into a global village. The unequal effect of globalization has preponderantly distorted third world economic development. There is lack of infrastructure in every sector of the economy. Poverty, accompanied with its consummate terminal deceases has been rife. The agricultural sector is drastically affected. The education sector is poorly funded. Income per capita has been on the downward trend with no meaningful result from policy changes. Corruption due to bad government has become the order of the day as workers strive to survive with meager income that cannot cover consumption, let alone savings and investments. The Nigerian situation has generally been a calamity as the various macroeconomic indices applied by the government has not been able to positively turn around the economy in this globalizing world. Inflation, unemployment, armed banditry and other vices continue to be on the increase, thereby inhibiting foreign trade investment. Apart from the above the inherent cultural and social values, constitute major barriers to desired corresponding result in earnings. The concluding part of this paper focused on the strategies to be adapted to free Nigeria from the clutches of economic relegation. It suggests the panacea to ameliorate or eliminate the negative effect of globalization and to domain the positive side of globalization as a vehicle for economic development of Nigeria and other Third World countries.