It simply emphasises trade between countries in such a way that there are no forms of barriers. Globalisation basically is believed to be a fertilizer to economic growth and development but over the years it has being contrary to most developing and third world countries hence the need for a closer review of globalisation and Nigeria as a developing country.
What about Globalization?
According to Adams smith globalization or openness in the economy fosters world peace. It’s also believed that globalization coupled with liberalization and deregulation brings about competition which eventually results in economic growth and efficiency. That notwithstanding globalization has some negative effects on the countries on the weaker sides of every global activity like overdependence on foreign countries, debt burden, and imbalance in the balance of trade amongst others. Globalization also has positive impacts on the host countries like technological innovation, development of new products amongst others. It’s crucial to note that we cannot talk about globalization without being conscious of liberalization as it’s the first step towards globalization. It has also being argued that three basic axis of the world benefits most from globalization. These are the European axis (Germany, France and Britain), the North American axis (Canada and United states) and the Pacific Rim axis (Japan) hence they advocate more for globalization.
Considering the enormous resources available in Nigeria one will think Nigeria will be one of the key actors in the global market but it’s unfortunately not the case. In fact Nigeria has witnessed some negative impacts of globalization though not usually portrayed to be so publicly. So the question now is why Nigeria is not enjoying the full benefits of globalization. The answer is not far-fetched as we can trace the answer to poor governance and weak managerial strategies; exhibited in form of;
Inconsistencies in government,
Poorly developed manpower,
High cost of investment ,
Security challenges and corruption and
Overdependence on one major source of income (crude oil).
Knowing this distinct challenges the government must arise to practical ways of ensuring that Nigeria reaps the full benefits of globalization and this can only be done through;
Export oriented strategies. Producing in diversity not just for domestic consumption alone but also for external consumption in terms of export.
Diversification of the economy. The mentality of relying on only crude oil for the country’s export revenue should be eroded as a matter of fact the country should search for possible areas of advantage and improve on it e.g. agriculture, tourism etc.
Consistency in government policies. This is very crucial as most countries are judged by their government. Credible and democratic elections should always be ensured and rewards or punishment should be given as at due when it comes to the issue of corruption.
Finally policies should be made to ensure the safety of investments in the country as well foster the growth of the upcoming small firms and industries in the country.
Globalization is a blessing as it could enhance development and growth of developing countries but could become a curse if not well practiced. Considering this, developing countries should be sure of the benefits they stand to enjoy from globalization before deciding to run an open economy.