Globalization and Socioeconomic Development in Nigeria 2020-2024
Abstract
This study examined the impact of globalization on socio-economic development in Nigeria, employing a quantitative survey research design. A structured questionnaire was developed to collect data from a sample of 120 respondents, representing diverse demographic backgrounds and professional expertise. The data collected were analyzed using SPSS27, facilitating the presentation and interpretation of key findings. Hypotheses formulated were tested using the t-test statistical technique to ascertain the significance of observed relationships. The findings of the study revealed several notable insights into the nexus between globalization and Nigeria’s socio-economic landscape. Firstly, the study identified various drivers of globalization in Nigeria, including advancements in technology, trade liberalization, foreign direct investment, and participation in regional and international organizations. These drivers were found to significantly influence Nigeria’s integration into the global economy, shaping economic policies, market dynamics, and socio-cultural interactions. Furthermore, the study examined the impacts of globalization on Nigeria’s socio-economic development, revealing both positive and negative consequences. While globalization facilitated economic growth, increased access to international markets, and promoted cross-border investment, it also exacerbated income inequality, social disparities, and environmental degradation. The study highlighted the need for targeted policy interventions and institutional reforms to maximize the benefits of globalization while mitigating its adverse effects on vulnerable populations and natural ecosystems. In conclusion, the study underscored the complex and multi-dimensional nature of globalization’s impact on Nigeria, emphasizing the importance of evidence-based policy-making and holistic development strategies. Based on the findings, several recommendations were proposed to address the challenges posed by globalization, enhance socio-economic resilience, and foster inclusive growth. These included strengthening regulatory frameworks, promoting sustainable development practices, investing in human capital development, and fostering international cooperation to address transnational challenges. By integrating these recommendations into policy formulation and implementation processes, Nigeria could navigate the complexities of globalization and harness its potential for sustainable development and prosperity.
CHAPTER ONE
INTRODUCTION
Background to the Study
Globalization is the recent growth of commercial operations across national and international borders, made possible by advances in technology, communications, and socioeconomic, political, and environmental developments. Consequently, everyone living in today’s world has experienced the benefits of globalisation in one wayanotherther: this implies that the expansion of foreign trade has meant that vaccines and antibiotics manufactured in one country can be used elsewhere in the globe to supplement medical cases and challenges (Akinkunmi, 2017 Ajide, 2014). Since 1900, life expectancy has improved across countries of the globe, and globally, average life expectancy has now doubled (Ospina, 2017). Hence, suffices to state that globalization is among the issues and phenomena that have attracted much attention everywhere. The process has existed from the beginning of human existence and with its modernization/development at different times and stages since its effect has been growing enormously in these modern times (Chirwa and Odhiambo, 2016; Ang, 2018). From an economic perspective, globalization is defined as “… the increasing interdependence of world economies as a result of the growing scale of cross-border trade of commodities and services, the flow of international capital, and the wide and rapid spread of technologies,” according to (the Committee for Development Policy, a subsidiary body of the United Nations).
As developing countries attempt to open up their economies in recent years, they are concerned about globalization and its different effects on economic growth especially as poverty,
inequality, environment and cultural dominance are increasing every day (Samimi and Jenatabadi, 2014). As an important component of the developing world, Nigeria is faced with opportunities and costs of globalization. Although Nigeria is endowed with natural resources, these resources are not being utilized appropriately. It is pertinent to highlight that exploring new ways to harness Nigeria’s resource endowments more efficiently is important and necessary for the country to improve its economic situation and position in the global sphere (Anwana and Affia, 2018).
In instances or situations where issues concerning globalization are brought up or analyzed, the link connecting economic development and globalization usually makes important headlines. Ensuring economic growth and development is the aim of policymakers as it shows the success of a nation. Hence, the pattern of globalization, and analyzing the consequence of globalization on economic development is very crucial. This stems from the premise that globalization has (and continues to have) a profound effect on the globe, and also on the way companies and even governments do business. According to World Bank data, trade accounted for more than 70% of global GDP in 2017, from less than 25% in 1960 (Trefler, 2019; Bartolucci, Marelli, Signorelli, Tanveer, 2018)
In this regard, the nature of globalization in the 21st century; fuelled by post-war economic booms, global movements for liberalization and freedom, and the emergence of dominant multinational corporations all resulted in the ever-increasing connected world and interdependence among different economies of the world. Thus, governments and businesses have responded to each wave of globalization by harnessing the technological developments presented to refine their strategy and increase growth, bring innovations, and also evolve and adapt to the changing world (Chimobi 2010; Bartik, 2012).
From the breakdown of the positive benefits of globalization highlighted above, it will suffice to say that on the global scope, globalization has had enormous positive influences and effects on the world in general (Chirwa and Odhiambo 2016). This is evidenced in the assertion of Erixon (2018) that the period of globalization, between 1980 and 2010, is unique because global trade grew very fast. International trade grew in the years preceding 1980, and there has also been some growth in the years succeeding 2010, but none of these periods can equate to the growth of trading activities during the era of globalization. The same is true for Foreign Direct Investments (FDI): as the multiplier impact can be witnessed from 1980 to 2010 (Doguwa, 2012; Chirwa and Odhiambo 2016)
But has globalization been an engine of economic development in Nigeria? In this regard, Adesoye et al. (2015) have argued forcefully that many highly globalized developing countries have not been able to profit from globalization and are still facing the same problems they have been facing for many decades. For instance, Nigeria has embraced globalization since the 1980s with the expectation that enhanced free trade, competitiveness, financial integration, foreign investment and technological advancement would ensure the achievement of rapid growth and development of the economy (Doguwa, 2012).
The borderless trade associated with globalisation has stirred a multidisciplinary discussion on the benefits of globalisation on developing economies’ socioeconomic growth. It has also resulted in diverse scholarly probes and assertions on the benefit of globalisation in developing economies (Egbulonu and Ajudua, 2017). There are, however, more assertions that globalisation benefits the developed economies more than the developing ones (Akpor-Robaro and Erigbe, 2019; Hyeon-Seung and Park, 2019). Globalisation influences the economic and social outcomes in a developing country, such as Nigeria. We see this in the Globalisation Report (2020) which uses three dimensions of globalisation—economic, social and political to assess globalisation in countries. In this report, Nigeria’s globalisation score stands, in 2018 was economic (24.61 per cent), social (38.65 per cent), and political (85.41per cent); with a lower score low in economic and social globalization (Forster, Kentikelenis, Stubbs and King, 2020). In line with the above, this study examines the scholar’s and researchers’ need to question the differences in these outcomes. These motivated this study to assess what globalisation is, its components, and its influence on Nigeria’s socio-economic growth.
Statement of the Problem
In recent times, it has been observed that the wave of globalization phenomenon has taken centre stage as a dominant feature in the international socio-economy (Haller, 2012 Inam, 2014). It is inevitably a phenomenon that no country can escape. It is on this note that many countries are compelled to take strategic steps towards actualizing their economic growth and development. in this circumstance, Nigeria is at liberty to either position itself and maximize the benefits of this New World Economic order or be left away as a bystander or marginal player in the international economic configuration (Tandon, 2000; Inam and Etim, 2020). Putting this into consideration, the globalization of the world economic system has, however, forced many developing countries such as Nigeria to initiate policy measures and establish institutional frameworks aimed at accelerating their growth and development in line with current global economic trends. Globalization constitutes a mega trend in the global social economy and has assumed a new phase in contemporary international economic relations (Akinboye, 2008; Ismaila and Imoughele, 2015).
Given the emergent socio-and economic transformation as well as the technological advancement in communication, information, transportation etc, the process seems to be irreversible (Yaqub, 2003). Nation States have indeed consistently intensified efforts towards engaging in business across national borders and constructing production and distribution networks on a global scale.
Although studies have been conducted on the impact of foreign direct investment in Nigeria (Chirwa and Odhiambo 2016; Anwana and Affia, 2018; Inam, and Etim, 2020). Chirwa and Odhiambo (2016) conducted studies on the positive and negative impacts of multinational companies in Nigeria. Further studies have shown how the Nigerian government relied on foreign companies for aid and technology transfer (Chimobi 2010; Bartik, 2012; Aidi, Emecheta, and Ngwudiobu, 2017; Anwana and Affia, 2018). However, there is a dearth of empirical studies on globalisation its components, and its influence on Nigeria’s socio-economic growth; hence this study.
Research Questions
The following questions will guide this study;
- What are the drivers of globalisation in Nigeria?
- What are the influences of globalisation on socioeconomic development in Nigeria?
- What are the problems of globalisation on socioeconomic development in Nigeria?
Research Objective
The general objective of this study is to examine globalization and socioeconomic development in Nigeria. The specific objectives are to:
- Determine the drivers of globalization in Nigeria
- examine the influences of globalisation on socioeconomic development in Nigeria
- ascertain the problems of globalisation on socioeconomic development in Nigeria
Basic assumption
- The various drivers of globalization often lead to imperialism in Nigeria’s socio-economy
- Globalization has influenced Nigeria’s socio-economic development
Scope of the Study
The study examines globalization and socioeconomic development in Nigeria. The scope of the study is between 2020-2024. The rationale behind the choice of the year is to make the work recent.
Significance of the study.
The study will be of significance to the government on the importance of globalization to the Nigerian economy. The study will also be of importance to the stakeholders in the economic sector on how foreign aid and foreign direct investment can be of use to the country.
Definition of Key Terms
Globalization: globalization ‘’is a way by which the economies of the world become more integrated, leading to a global economy and increasingly, global economic policy-making’’. In concrete terms, globalization is the intensification of cross-border trade and increased financial and foreign direct investment flows among nations, promoted by rapid advances in and liberalization of communication and information technology
Socio: Prefix Socio- is used to form adjectives and nouns which describe or refer to things relating to or involving social factors.
Economy: The state of a country or region in terms of the production and consumption of goods and services and the supply of money.
Socioeconomic: The term socioeconomic refers to the interaction between the social and economic habits of a group of people
Development: Development is a process that creates growth, progress, positive change or the addition of physical, economic, environmental, social and demographic components.
Foreign aid: The term foreign aid refers to any type of assistance that one country voluntarily transfers to another, which can take the form of a gift, grant, or loan. Most people tend to think of foreign aid as capital, but it can also be food, supplies, and services such as humanitarian aid and military assistance.
Foreign direct: Foreign direct investment (FDI) is a category of cross-border investment in which an investor resident in one economy establishes a lasting interest in and a significant degree of influence over an enterprise resident in another economy.
Theoretical framework
Several theories can be used to explain globalization and socioeconomic development. This study employed the Neoliberalism and Dependency theory as a major basis for analyzing globalization.
Neoliberalism theory
Neoliberalism theory, tracing its roots back to the Mont Pelerin Society in 1947, has become a significant framework shaping political-economic practices and thinking globally. Founded by influential figures like Friedrich Hayek, Milton Friedman, Karl Popper, George Stigler, and Ludwig von Mises, neoliberalism has garnered attention from various scholars contributing to its development (Boans and Gans-Morese, 2009; Thorsen, 2009). Harvey (2005) asserts that since the 1970s, there has been a widespread adoption of neoliberalism, becoming hegemonic in shaping the discourse and understanding of the world. Neoliberalism, as a mode of discourse, has permeated common understanding to a point where it has become integral to how we perceive economic, social, and political phenomena (Ibid., 2007).
Furthermore, scholars argue that neoliberalism serves as the primary driver of globalization, with globalization itself being both an effect of and a move towards global neoliberalism (Litonjua, 2008). Economic neoliberalism advocates for maximizing economic freedom for individuals while minimizing state intervention to the bare minimum. This ideology promotes the elimination of government-imposed restrictions on the transnational movements of goods, capital, and people (Harmes, 2012; Cohen and Centeno, 2006). Despite the prevalence of neoliberal discourse since the 1970s, there is little concrete evidence to suggest that countries have universally undergone a clear neoliberal transition.
Neoliberalism emphasizes free markets, deregulation, and privatization, principles that can exacerbate the negative effects of globalization, particularly on developing countries. The pursuit of economic liberalization may lead to increased inequality, diminished social safety nets, and heightened vulnerability to economic shocks (Barr, 2004). Moreover, deregulation and privatization policies may result in the exploitation of natural resources, labour, and markets in developing countries by powerful multinational corporations (MNCs), further widening the gap between the global North and South (Gereffi, 2005). Thus, while neoliberalism promotes economic freedom and market efficiency, its implementation can perpetuate or exacerbate inequalities and vulnerabilities, particularly in developing regions.
In the context of the current study, understanding the influence of neoliberalism on globalization and its implications for socio-economic development in Nigeria is crucial. As Nigeria navigates its path within the global economy, it faces the challenges and opportunities associated with neoliberal policies and globalization dynamics. Exploring the interplay between neoliberalism, globalization, and socioeconomic development in Nigeria can provide valuable insights into the complex dynamics shaping the country’s economic trajectory and its position in the global arena.
Dependency theory
In the realm of International Political Economy, diverse theoretical perspectives vie for prominence in explaining global inequalities and the North-South divide. Among these competing perspectives, dependency theory stands out as a significant framework. Originating in the 1950s as a response to modernization theory, dependency theory gained traction in the 1960s and 1970s as a critique of the latter (Matunhu, 2011; Herath, 2008). Despite the challenges posed by the 21st century, dependency theory remains relevant and continues to offer insights into global inequalities.
Theotonio Dos Santos, a key figure in the development of dependency theory, defines dependence as “a situation in which the economy of certain countries is conditioned by the development and expansion of another economy to which the former is subjected” (Dos Santos, 1970). At its core, dependency theory argues that the economic development of peripheral countries is hindered by their subordinate position within the global economic system. These countries often find themselves reliant on more developed nations for trade and investment, perpetuating their economic dependency.
Dependency theory’s relevance to globalization becomes evident as it elucidates how the unequal power dynamics and economic relationships fostered by globalization exacerbate the dependency of less developed countries on their more developed counterparts. This theory underscores the role of globalization in reinforcing economic disparities between core and peripheral countries. While globalization has brought benefits to some nations, it has also deepened the economic vulnerabilities and uneven development experienced by many others, aligning with the central tenets of dependency theory.
The interconnectedness of dependency theory and globalization underscores how the globalized economic system perpetuates and exacerbates existing inequalities. By highlighting the unequal distribution of power and resources within the global economy, dependency theory offers a critical lens through which to analyze the impact of globalization on different countries and regions. Understanding these dynamics is essential for addressing the persistent challenges of economic inequality and vulnerability in the contemporary global landscape.
Organization of the Study
Chapter one introduces the study, chapter two comprises of the review of relevant literatures, chapter three gives an historical overview of globalization and socioeconomic development in Nigeria, chapter four an assessment of globalization and socioeconomic development in Nigeria 2020-2024, chapter five presents summary, conclusion and recommendations.
The research methodology
Research Design
The research design for this study is quantitative. A quantitative survey research design is being chosen due to its ability to gather numerical data from a large sample size, allowing for statistical analysis and generalization of findings to the population of interest (Saunders et al., 2019). This design is facilitating the collection of data on the relationship between globalization, neoliberalism, and socioeconomic development in Nigeria.
Population of the Study
The target population for this study comprises individuals directly involved in business and economic activities in Nigeria. Given the broad scope of the research objectives, a diverse population is deemed necessary to capture a comprehensive understanding of the phenomena under investigation. Therefore, the target population is being determined to be 171 respondents (Saunders et al., 2019; Anderson et al., 2020).
Sampling Technique and Sample Size
A simple random sampling technique is being employed to select respondents from the target population. This technique ensures that every member of the population has an equal chance of being selected, thus enhancing the representativeness of the sample (Anderson et al., 2020). The sample size is being determined using the Taro Yamane sample size formula, resulting in a sample size of 120 respondents, which is deemed sufficient to achieve the study objectives (Bell et al., 2019).
Sources and Method of Data Collection
Primary data is being collected for this study through the use of structured questionnaires. Questionnaires are being distributed to the selected respondents, allowing for the systematic collection of data directly relevant to the research objectives (Saunders et al., 2019). The use of questionnaires enables the researchers to gather quantitative data efficiently from a large number of respondents.
Method of Data Analysis
The collected data is being analyzed using the Statistical Package for the Social Sciences (SPSS) version 27. SPSS is a widely used software for statistical analysis, providing tools for data manipulation, descriptive statistics, and inferential analysis (Saunders et al., 2019). The use of SPSS facilitates the examination of relationships between variables and the generation of meaningful insights from the data.
Validity and Reliability of the Study
To ensure the validity and reliability of the study, Cronbach’s alpha coefficient is being employed to assess the internal consistency of the questionnaire items. Cronbach’s alpha is a widely used measure of reliability, indicating the extent to which items in a questionnaire consistently measure the same underlying construct (Goddard & Melville, 2020). By assessing the reliability of the questionnaire items, the study aims to ensure the accuracy and consistency of the data collected.
Ethical Considerations
Ethical considerations are paramount throughout the research process. The study has obtained ethical approval from the relevant institutional review board before commencing data collection. Informed consent is being obtained from all participants, and their confidentiality and anonymity are being ensured throughout the study. Additionally, participants are being assured of their right to withdraw from the study at any time without repercussion (Saunders et al., 2019).
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