Economic Dependency and Third World Under-development; Nigeria Experience
CHAPTER ONE
OBJECTIVES OF THE STUDY
In the light of the consideration therefore is the purpose of this work which becomes the task of identifying the historical forces which has generated economic underdevelopment has continues to reproduce itself till today. This history of economic underdevelopment will be traced from the period of colonization to the present time.
It is the aim of this study to examine certain crucial concepts that are closely related to the problem of economic dependency and underdevelopment, specifically:
- It will investigate the major cause of economic dependency in Nigeria.
- To discover the impact or the role Nigerian economic elite in the economic dependency problem of the country.
- To examine the role of Multinationals in the economic dependency of Nigeria
CHAPTER TWO
REVIEW OF RELATED LITERATURE
INTRODUCTION
This chapter reviews the literature on the impact of economic dependency and third world underdevelopment in Nigeria. It discusses issues arising from the topic of interest as viewed from different perspectives, with a view of giving a theoretical and empirical foundation to the study.
REVIEW OF SOME LITERATURE
Ake (2002) posited that “an economy is dependent to the extent that its position and relations to other economies in the international system and articulation of its internal structure make it incapable of auto-centric development”. In essence, economic dependency refers to the lack of capacity and inability of a country to control its productive processes such that the country’s economy depends on foreign economy for direction and control through regulations and foreign economic institutions which directly or indirectly regulates its growth or expansion. Historically, third-world economic dependence is tied to Western European capitalist expansion and Imperialism. European capitalist expansion was necessitated primarily by the internal contradictions of capitalism in Europe, or what Lenin (1917) referred to as the crises of profitability as reflected in reducing consumption capacity of the ever increasing mass production of goods; increasing cost of labour and increasing cost of raw materials.
Nkwocha et al 2016 in their paper examined the crises of underdevelopment in the third world with specific reference to Nigeria arising from colonially imposed economic dependency and inherent disarticulation in its production and consumption patterns as measured by its recent import and export trends. The paper adopted the dependency theory as its theoretical framework. The paper largely adopted the library research method as secondary data were utilized and content analyzed. Also descriptive tools such as tables and charts were used to corroborate analyses. The paper concludes that the colonially imposed export oriented production and import oriented consumption economy of Nigeria has negative implications on the overall socio-economic development of Nigeria as reflected in its weak industrial base, food insecurity and dependence on foreign capital. Following these submissions, the paper recommends that the Nigerian government should pursue diversification of the Nigerian economy from oil, while vigorously enhancing rural development and promotion of internally oriented regional trade amongst the African Union countries. Emeh, Ikechukwu in 2013 linked Africa’s underdevelopment has been to two categories of factors: internal and external. The internal factors, Nnadozie said, fan the ember of the external factors and therefore require and deserve more attention hence the connivance of African elites with the Europeans elites to impoverish the continent.
Stanley B et al in 2016 examined the crises of underdevelopment in the third world with specific reference to Nigeria a rising from colonially imposed economic dependency and inherent disarticulation in its production and consumption patterns as measured by its recent import and export trends. The paper adopted the dependency theory as its theoretical framework. The paper largely adopted the library research method as secondary data were utilized and content analyzed and concludes that the colonially imposed export oriented production and import oriented consumption economy of Nigeria has negative implications on the overall socioeconomic development of Nigeria as reflected in its weak industrial base, food insecurity and dependence on foreign capital. Following these submissions, the paper recommends that the Nigerian government should pursue diversification of the Nigerian economy from oil, while vigorously enhancing rural development and promotion of internally oriented regional trade amongst the African Union countries.
CHAPTER THREE
DEPENDENCY AND AFRICAN UNDERDEVELOPMENT; A PARADIGM SHIFT
The May 13-19 issue of the Economist, the influential London news magazine has Africa on the cover. The magazine also has a sketch of Africa on an inside page. It depicts Africa lying prostrate while a bloodied black hand drills a knife into her very heart: Africa’s problems are self- inflicted! It used to be fashionable to blame the ills of Africa on others: Colonialism; Neo-colonialists; Imperialists; etc. Political Scientists describe this phenomenon of the blame game as Dependency Theory, a symptom of a symbiotic relationship between the rich and the poor where the poor is dealt the weak hand, deliberately. Late Walter Rodney wrote a book about that titled, “How Europe Under-Developed Africa.” This is no longer absolutely tenable. The reality of the matter is that the major culprits of the destruction of Africa today, are Africans themselves. To wit: our corrupt leaders and their bands of sycophant, president does-no-wrong minions. Major corruption in African officialdom continues to cause degenerative under-development on the continent. African countries have become the personal estates of official criminal gangs whose avowed aim is not the development of their countries, but rather the siphoning off of national resources into foreign banks. Officials in the tiny European principality of Luxembourg frizzed eight bank accounts totaling 600 million U.S. dollars, belonging to the late super corrupt Sani Abacha of Nigeria. This is one example of how our African leaders contribute to the under-development of Africa! Official corruption siphoning of money intended for the development of Africa is contemptible. Apart from making a lot of profit on the interest on investments accruing from Africa’s stolen money, Europeans turn around and loan such money to Africa at exorbitant rates. Thus, in nearly all African countries today, we spend more money to pay the interest on such loans (not on the debt itself) than we do on Health and Education! In effect, African countries are played like a football. Whoever has the ball kicks it until it is near deflation! It is then pumped up by some foreign loans, and the process continues. Such has been our lot since independence. Africa suffers from chronic intermittent growth, and perpetual deflation (Ghanaian Chronicle, 2000). Little wonder Nnadozie declared that the economic future of Africa is very bleak; and that of the five continents in the world, none is facing as many debilitating problems as the African continent. These problems include those of poverty, hunger, war, environmental/ecological degradation, religious and ethnic conflicts, political instability, leadership inertia, illiteracy and bad governance, among others (Nnadozie, 2010)”.
CHAPTER FOUR
CAUSES OF AFRICAN CONTINENT UNDERDEVELOPMENT
The current state of African development which has been described by scholars as a development crisis cannot be explained from one perspective but several perspectives of exogenous and endogenous factors which have plagued the continent for decades. One of the exogenous causes of African underdevelopment widely alluded to by many scholars in the literature has to do with colonialism and the scramble for African continent in 1880. Most African countries have been colonized by the British through the policy of indirect rule and the French through their policy of assimilation. According to Simensen, ‘colonial rule can be regarded as the next phase of Africa’s integration into the international system. European policies varied considerably between regions and over time, from a brutal period of conquest at the end of the 19th century to active development efforts following the Second World War’. Colonialism is linked to African underdevelopment from the perspective of exploitation of precious natural resources from the continent of Africa which is used to develop the jurisdiction of their colonial masters at the detriment of the African countries. For example, Ghana is been colonized by Britain and numerous resources including gold, diamond, bauxite, timber, etc. are exploited to the benefit of Britain. But the question is what about Ethiopia who has never been colonized before in its history but is still underdeveloped. One conspicuously feature of Ethiopia’s level of development is that, it is lagging behind to even countries that have been colonized, for example Ghana. So the question is, is colonialism important in explaining African underdevelopment? Yes to a lesser extent since there are other equally important factors which are endogenous to Africa’ underdevelopment. The world capitalist system in which the African countries find themselves in also accounted for Africa’s underdevelopment.
CHAPTER FIVE
SUMMARY CONCLUSION AND RECOMMENDATIONS
Introduction
It is pertinent to state that the objective of the study was to ascertain the effect of economic dependency and third world underdevelopment; Nigerian experience. In the preceding chapter, the relevant literature for this study was presented, critically analyzed and appropriate reviewed. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of economic dependency and third world underdevelopment; Nigeria experience.
Summary
Nigeria, with its oil wealth, is different from many other neo-colonial countries as the majority of the ruling elite do not really care about developing the manufacturing or agricultural sectors of the economy as the only sure source of wealth in Nigeria is the daily inflow of $30m petrodollars into the regime’s off-shore bank accounts. This now makes up at least 85% of total government revenue and is the ‘pot of gold’ over which the elite fight. Corruption and financial swindles are the easiest way to make money in Nigeria, certainly better than the unpredictable fluctuations of industrial production or ‘normal’ trade (Salimu, 1998). The London Times reported one estimate that, since the early 1970s, Nigerian leaders have amassed personal fortunes totaling $217bn in foreign, mainly Swiss and Lebanese, banks. The Times estimated that Abacha himself accumulated $5.8bn during his nearly five years in power (London Times, 2002). The one that is brewing currently is Jonathan Administration’s involvement in a #155bn oil scandal which the federal government has refused to comment on. This is quite different from the fuel subsidy fraud whose report has been handed over the EFCC for arrest and prosecution. Even the EFCC was said to be involved; this is the nation’s anti-graft agency. On this issue, a forum called the congress for progressive change in Nigeria said that Jonathan administration is more concerned with looting than governance when their spokesman, Rotimi Fasakin asserted “after the death of Abacha, much noise was made on the tens of billions of naira that later became known as Abacha loot, little did we know that successive PDP governments would dwarf his records in mindless rapaciousness and kleptomaniac imprudence. But in these sleazy records, Jonathan Administration beats them all. No inspiring governance, only looting.
Conclusion
Ekpo (2011) stated, economic development has never been a linear process unfolding placidly over time and space. Economic development has always been propelled by classes and groups interested in a new economic and social order, and has always been opposed and obstructed by those interested in the preservation of the status quo, rooted in and deriving innumerable, benefits and habits of thought from the existing fabric of society, the prevailing moves, customs and institutions. In line with the above, we therefore recommend that thorough look at the past by the leaders of the Third World countries, when formulating policies, must be taken into consideration, to enable them come out with good and progressive polices that will make for development. Especially as regards policies that will enable the Third World countries break away from the old order of retrogressive policies. This can clearly be seen from the various development plans across time in Nigeria. Nigeria’s national planning experience dates back to the colonial era when the Ten year welfare and development plan was instituted. But indigenous national planning started in 1962 and between that time and 1985; the country experienced five development plans all of which could, from our classification of types of planning, be described as long term plans. Nigeria decided to experiment with shorter plans from 1986, starting with the Structural Adjustment Programme of the same year. And finally introduced perspective planning in 1990, starting with the 3 year Rolling plan of 1990, what have been tagged the rolling plans. This stretch on through the Vision 1997 to 2010, National Economic Empowerment and Development Strategy (NEEDS) Reform 2003 to 2007 and presently Vision 20,2020 (Imhanlahimhin, 2000). Though, these development plans were put in place for the development of the country, the assessment of the impact of the plans showed that they achieved very little. This is because right from the colonial time, taking into consideration the main objective of the colonial masters coming to Nigeria, Otite 127 which is economic, they planned their development plan towards this objective. While the British government tagged it development and welfare plan, it was really a facilitative plan for further exploitation of Nigeria without adverse reaction from the people. Inline with this, subsequent Nigeria leaders that took over the mantle of the leadership from the colonial masters tilted their development in the same direction. That is trying to protect their interest and their institutional building. That is to say, that all subsequent development plans to the present day can be seen from the same perspective, with slight variation. In addition to the above, enough resources were not made available for the implementation of most of these development plans. Coupled with this, the plans were not properly coordinated to make for development, but more of list of projects to be implemented. Thereby making it difficult to achieve the much needed development in the country.
Recommendations
Haven completed the study, the researcher recommends that African political and economic scholars should stop fixing blame; instead, they should fix the problem. For instance, they should bring to fore that fact that African leaders have connived within themselves and conspired to squeeze dry the orange and then discard it. Maybe that is why they save their monies abroad; have their investments over there too.
In fixing our problems, Nigerian leaders should invest in their home countries. This is necessary because without investment, unemployment thrives; poverty, hunger and starvation looms large and most importantly, underdevelopment soars higher than the eagles. The Billions of Dollars stashed away in foreign banks are what supposed to established companies; recruit people; services their payment; provide essential amenities that will make life worth living. Without these monies in the Nigerian soil, Nigeria can never development
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