Abstract
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1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Over the past two decades, world output has been expanding and many countries are
benefiting from increased cross-border trade and investments. Many others suffer because
economic regimes are inefficiently managed, and this weakness reduces their capacity to
successfully compete globally (Schneider & Enste, 2002).
According to Abubakar (2001) economics is essentially the study of a process we find in all
human societies – the economic problem. “It is simply the process of providing for the material
and well being of society.” (Anya 2001) Thus, economic history focuses on the central problem
of survival and how mankind has solved that problem. Man, generally, is an economic animal
who is constantly engaged in activities that would improve his economic situation Mittleman
(2000). The countries of the globe have faced the challenges of improving the economic realities
in their domains over time. These challenges have been seen in the development realm.
Development can be understood from the point of continued advancement of man towards good
living standards.
Modern concept of development has its roots from the emergence of industrialization in Western
Europe in the mid 18th century. By 1945, after World War II, scholarly interest in development
economics heightened. This made it possible to explore the economic conditions / development
levels among nations on the globe. Thus, scholars were able to establish that economic
development is not even world over. Other countries or societies are more developed than others.
At first, scholars looked at macro-economic issues in determining the development of societies;
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however, as time went on, in the 1980s, scholars approached in assessing the development level
of a society shifted to micro-economic issues. Thus, the human development index, which
basically is concerned with individual?s poverty levels, became a major concern of development
scholars, wishing to determine the level of development of individual societies on the globe
(Ninsin, 2000)
Through this approach, it became apparent that there exist two major economic worlds on the
globe: the wealthy and the poor worlds, respectively.
In this essay, it is my desire to draw a distinction between these two economic worlds using few
variables to include levels of productivity, population growth and dependency burden,
agricultural production, exports, and international relations.
The focus of this research is the rethinking of the global north/global south economic
relationship and to examine the way forward for Nigeria to minimize the effects, 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 the global north/global south economic relationship. 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.
1.2 STATEMENT OF THE PROBLEM
The Global economic challenge between the developing nations living in the Southern
Hemisphere and the industrial countries of the North has posed as a serious problem for the third
world countries especially in Africa.
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The countries of the world are coming seriously to terms with the growing material inequalities
between the affluent nations in North America, Western Europe and Japan (which account for
less than 18 percent of the world population but more than 60 percent of world income), and the
scores of poor countries in Asia, Africa and Latin America which constitute the bulk of humanity
but enjoy very little of the earth’s bounty.
For more than a generation, the North-South asymmetric divide was central to the explanation of
world inequality and poverty (Willy Brandt (1969). Being categorized as part of the “North”
implies development as opposed to belonging to the “South” which implies a lack thereof.
According to N. Oluwafemi Mimiko, The South lacks the right technology, it is politically
unstable, their economies are divided, and their foreign exchange earnings depend on primary
product exports which come from the North, along with the fluctuation of prices. The little
control of imports and exports condemned the South to obey the imperialist system. The lack of
the South and the development of the North further the inequality and end up putting the South
as a source of raw material for the developed countries. (Mimiko Oluwafemi (2012).
From the 1960s until the late 1980s, the image of a world split between the wealthy developed
countries of the North and the poor developing countries of the South which fuelled the activity
of policy makers and scholars of international political economy. In the diplomatic community,
the global south countries that benefit less from this asymmetric divide are faced with a lot of
problems as a result of this unequal relationship between them. Some of these problems are:
Underdevelopment, low levels of productivity, population growth and dependency burdens,
poverty, debts crisis, brain drain, inflation, and so on.
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The events in the last decade in the global economy suggest a challenge; the utilization of the
opportunity engineered by the global north/global south economic relationship while at the same
time managing the problem and tension it poses, for developing countries particularly Nigeria.
While some individuals such as Scholte (2000) Tandon (2000) and Salimono (1999) opine that
the global north/global south economic relationship opens opportunities, others such as Awake
(2002) and Garry (1998) express fear about it.
It is in this context that the Nigerian Economy has remained dependent and vulnerable to the
Global North Countries. The Global North being stronger than the Global South especially due
to the emergence of Globalization, the unequal strength between the two is manifested not only
in the dominant power of the Global North to control the pattern of international trade and
agreement regulating it but also in their ability often to dictate the terms whereby technology,
foreign aid, and private capital are transferred to Global South. This has acted as a factor in
contributing to the persistence of low levels of living, rising unemployment, and growing income
inequality in the Global South compared to the Global North.
Thus, the urgency of establishing a new framework for them becomes the basis of this project.
In line with the above statement this article therefore attempts to understand these problems and
proffer possible solutions for the Nigerian Economy in dealing with these problems.
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1.3 OBJECTIVES OF THE STUDY
The broad objective of this study is to examine the global north/south economic relationship and
to examine the way forward for Nigeria economic development. Other basic objectives include
to:
i. Examine the challenges Nigeria faces in terms of economic, political, social and
technological development within the global arena.
ii. Investigate whether Globalization is a major factor that serves as a challenge to
the Nigerian Economy
iii. Determine the Economic Implications of Globalization to the Nigerian Economy.
iv. Offer possible recommendations and suggestions for way forward to the Nigerian
development in the global economy.
1.4 RESEARCH QUESTIONS
The following research questions are formulated to pilot this research work: Accordingly,
this study seeks to answer the following questions:
i. What challenges Nigeria is facing in terms of economic, political, social and
technological development within the global arena?
ii. What are the Economic Implications of Globalization to the Nigerian Economy?
iii. Is Globalization a major factor that serves as a challenge to the Nigerian Economy
iv. Are there way forward to the Nigerian development in the global economy?
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1.5 SIGNIFICANCE OF THE STUDY
While economic and social indicators describe the structural aspects of the North–South
divide, a political analysis of the North–South conflict has to deal with the emergence of
different coalitions and institutions, representing the interests of South or North in the domain of
international politics. The history of the developing countries, like Nigeria, also plays an
important role in this context since it was the experience of colonial subjugation and oppression
which contributed to the formation of a common, anti-colonial identity in the South. This
research makes use of both definitions of North and South: one of them describes the structural
features of the North–South relationship and one relating to North and South as political forces,
themselves shaping world affairs. This research therefore is relevant in helping interested
populace to know where Nigeria falls in the divide and how the economic relationship between
the two can impact on Nigeria economy as it affect all facets of our lives.
1.6 SCOPE OF THE STUDY
This research is focused on and highly restricted to the global north/global south economic
relationship and the way forward for third world countries like Nigeria in order to benefit from
such relationship.1.7 LIMITATIONS OF THE STUDY
The study is concerned with the work – Rethinking the Global North/Global south economic
relationship – and also to critically examine the challenges faced by Nigeria. Limitations in the
study include:
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i. Collection of Data: Data collection was one of the major challenges to the study. The
respondents did not want to give answers to the questions put forward to them, while
those who may want to give have limited knowledge of subject matter and may not give
correct and reliable answers and thereby creating problems of data unreliability to the
researcher.
ii. Finance: The cost of carrying out in a practical research due to transportation cost and
other logistics is another major constraint to this research.
1.8 ORGANISATION OF CHAPTERS
This research work has been divided into five chapters. The First chapter is the introduction
which discusses the background of the study, statement of the problem, objectives of the study,
basic assumptions, research questions and operational definition of terms. Also included in this
chapter is the scope of study and limitations. The Second chapter is devoted to literature review
and theoretical framework with the aim of providing fundamental and historical background to
the Global North-South relationship and also the challenges Nigeria faces economically.
The Third chapter covers research methodology taking cognizance of the research design,
research population, sample and sampling technique(s), research instrument(s), validity and
reliability of instruments, data collection techniques and finally the data analysis technique(s)
employed in the research. On its part, The Fourth chapter discusses analysis, the assessment of
data collected research findings. Finally, The Fifth chapter contains the summary and conclusion
of research work, as well as recommendation on how problems raised can be tackled.
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1.9 DEFINITION OF TERMS
Global North: these are the richer and more developed region of the world which include North
America, Western Europe and developed parts of Asia.
Global South: these are the poorer, less developed region which includes Africa, Latin America
and developing Asia including the Middle East.
Globalization: Globalization is the process of international integration arising from the
interchange of world views, products, ideas and the other aspects of culture (Al-Rodhan 2006)
Economic Development: the definition of economic development given by Professor Micheal
Todaro is an increase in living conditions, improvement of the citizens self-esteem needs and
free and a just societ