ABSTRACT
This study examines the relationship between the
third world countries and the western capitalist countries. It shows dependency
as a phenomenon or problem of relationship that gave rise to the economic
growth and development of the western world in expense of the third world
societies which are economically underdeveloped, and lack the capacity
and ability to control the economic system or productive processes of
the societies. In our attempt to analyze and address this problem we used
dependency theory for the analytical framework while documentary research
method was employed in gathering and analyzing data. Unequal relationship
between Nigeria and countries of the western world coupled with negative role
of the Nigeria economic elite was discovered as the major problem, it was
ascertained that this problem is historically rooted in foundation of the
society, as such, ordinary measures are not suitable, rather concrete type in
form of socialist transformation is recommended by the study.
TABLE OF CONTENTS
Title page i
Approval page ii
Dedication iii
Acknowledgement
iv
Abstract v
Table of
content vi
CHAPTER ONE
Introduction 1
Statement of
the problem 2
Objective of
the study 2
Significance
of the study 3
Theoretical
frame work 4
Hypothesis 5
Literature
review 5
Definition of
the terms 17
Method of data
collection/analysis 20
Scope of the
study 20
Limitation of study 21
Reference 22
CHAPTER TWO
THE ORIGIN OF DEPENDENCY RELATIONSHIP BETWEEN THE
NIGERIA AND WESTERN WORLD
2.1
The
pre colonial political economy 23
2.2
The
colonial political economy 28
2.3
Post
colonial political economy 36
CHAPTER THREE
THE RELATIONSHIP BETWEEN NIGERIA AND THE
CAPITALIST COUNTRIES OF THE WESTERN WORLD
3.1
Dependency
relationship 44
3.2
The
positive roles of multi national
corporations 46
3.3
The
negative role of multinational corporations
50
3.4
High
rate of importation in Nigeria 53
3.5
Foreign
loan in Nigeria 58
3.6
The
roles of international financial institution in
Nigeria 64
CHAPTER FOUR
NEGATIVE ROLES OF NIGERIAN ECONOMIC ELITE
4.1
Problem
of corruption 70
4.2
Foreign
oriented economic policies 75
4.3
The
structural adjustment programme (SAP)
77
4.4
National
Economic Empowerment
Development
strategy (NEEDS) 81
4.5
Lack
of ability of self reliance 86
CHAPTER FIVE
5.1
Summary
90
5.2
Conclusion
91
5.3
Recommendation
91
Bibliography 97
CHAPTER
ONE
INTRODUCTION
Economic
dependency is the lack of capacity and ability to control the economic system
or productive process of a society such that the society as a state depends on
foreign developed economy states for leadership and control through regulations
and some economic institution. The country that are depending on the rest are
mostly poor countries of the third world, Nigeria is a typical poor third world
country and underdeveloped that depend on the western world for decision and
implementation of economic policies , thereby contributing to the economic
development of the west to her own
detriment. For example, (SAP) structure Adjustment programme of 1986, National
Directorate of employment (NDE) of 1986,
Petroleum Trust Fund (PTF) poverty alleviation programme etc. all seems to have
end in failure after gulping in estimate material and human resources, funded
with loan and the associated intrest.
Since
the economic structure is disarticulated, being the main structure; the
foundation; on which rise the political super structure; and which controls
both the intellectual and material production, the implication is the
underdevelopment of the entire society. The state of underdevelopment of the
entire society raises serious alarm in whole third world countries and the
international community. Historically, most of the third world countries suffering
dependency. Passed common rigorous stages of development from slavery to colonialism/imperialism, and to and to the
contemporary globalization. What distinguished one stage from the other was the
intensification of the rate of suppression and exploitation mounted on the poor
third world countries by the economically developed west.
1.2
Statement Of Problem
What
makes human is the ability to be independent from the wills of other people.
People of the third world are regarded as sub-human being because of absolute
economic dependency on the western developed economies. The problem of the
study is that Nigeria like other third world countries has being suffering
underdevelopment which emanated from dominant exploitative character of the
western economies on which those of the third world depend. The foregoing raises some major
questions:
·
What is the major cause of economic
dependency in Nigeria?
·
What is the role of Nigerian economic
elite in the economic dependency problem of the country?
What
role do multinational companies play in sustaining economic dependency?
1.3 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:
1.
It will investigate the major cause of
economic dependency in Nigeria.
2.
To discover the impact or the role
Nigerian economic elite in the economic dependency problem of the country.
3.
To examine the role of Multinationals
in the economic dependency of Nigeria
1.4. Significance Of Study
This
work will serve as material to other researcher and in practical it will serve
as a tool to the government guiding them on implementation of policies, this
policies shall serve as a guide to Nigerians development.
This work, prescribes how to manage
the nations resources, for the benefit of the general citizens, and this will
determine the relevance of the existing government policies.
1.5. Theoretical Framework- Dependency Theory.
It is important to explain what the
theory is all about in order to achieve a more concrete understanding of the
theoritical framework of the study to this end, therefore, a theory
functionally can be defined as a set of ideas, which provide an explanation for
something. In this study, some scholars in Latin America and Africa have there
views concerning this theory. They include: Dos Santos ,Andre Gunder etc.
According to Dos Santos (1979)
“Dependency relates to a situation which the economy of certain countries is
conditioned by the development and expansion of the other to which the former
is subjected .The relation of inter dependence between two or more economies ,
and between these and the world trade ,assumes the form of dependence when some
countries the dominant ones which are the capitalist nations like America can
expand and can be self sustaining while other countries the dependent ones like
Nigeria can do this only as a reflection
of expansion which can have either a negative or positive effect on
their immediate development. ”There basic assumption is that there is a
dialectical relationship between development and underdevelopment ,in other
words according to Andre Frank(1975) “Development and under development are two
different sides of a universal historical process. ”To him what causes under
development in third world is as a result of what brought about development in
Europe and America.
This dependency concerns the centre
which refers to the technological advanced countries of the world and the
periphery refers to the third world countries, also, when looking at this
theoretical framework we talk about the centre of the centre which refers to
the urban areas of the world. Centre’s of the periphery refers to the urban
centre of the developing countries like
Nigeria, periphery of the centre refers to the rural areas of the
industrialized countries while the
periphery of the periphery refers to the rural areas of the developing country.
This is a relationship where the
centre of the developed countries dictates the terns of their co-existence
economically, socially and politically. there is an exploitative and vertical relationship
between the centre of the centre and the centre of the periphery in this setup.
Looking at this case the periphery is subordinate to the centre. In this, the
centre is assigned the role of manufacturing industrial products while the
periphery produces primary goods – raw materials and needed resources, the
periphery now depends on the centre for her economic survival and consumption
of the already made products.
I prefer this theory because it truly
illustrates the exploitative natures of the developed countries to the less
developed country. (LCD) which led to dependency.
1.6. Hypotheses:
For the purpose of guidance and
in order to achieve the statements of problems and the objectives of this
study, the researcher has proposed the following hypothesis.
·
The unequal exchange between the
advanced capitalist countries and third world country like Nigeria enhances
economic dependency.
·
The activities of the Nigeria economic
elite sustain the dependency problem of Nigeria.
·
The activities of Multinational
Corporations perpetuates Nigeria
continued dependent on the advanced countries.
1.7. Literature Review
Many articles and books have been
written on the problems of economic underdevelopment in the third world countries
as a whole some western written attributed this to the third world inferiority
towards industrialization and that they are incapable of thinking
constructively. They also said that the third world countries have to go
through the long stages which the western nations have gone before reaching
their present level of development. Some African writers on the other hand
blamed this on the integration of third world economy into the capitalist
system.
In Rodney book how Europe
underdeveloped Africa (1972), he succinctly said , “when two societies of
different sorts come into prolonged and effective contact, the rate and
character of changes taking place in both is seriously affected to the extent
that entirely new patterns are created two general rule can be observed to
apply in such cases. Firstly, the creator of the two societies (i.e the one
with less economic capacity) is found to be directly affected- and the bigger
the gap between the two societies concerned the more detrimental are the
consequences”.
Secondly, assuming that the greater societies
do not survive, they ultimately it can resume their own independent development
only if it proceeds to a level higher than that of the economy which have
previously dominated it.
What Rodney (1972) is basically saying
is that underdevelopment results from unequal interaction between two
societies. The more this unequal relationship lasts, the more the backwardness
of the less privileged ones, that this underdevelopment is a sign that societies
have come into contact when they were in different levels. He further said that
if the underprivileged society hopes that it can make any head way in that type
of relationship, that it is deceiving itself. The poverty of the less
privileged one is the development of the other. This situation will be
worsening as far as the relationship continues. He gave example of the European
capitalism and the indigenous hunting societies of America and the Caribbean.
He said that the contact between the two nearly exterminated the later. This
can be applicable in what is happening in the capitalist society today, this is
a warning that as far as the relationship lasts, the third world countries will
not make any breakthrough to industrialization. From experience, it could be
seen that the situation is worsening instead of improving. He uses Soviet
Union, china and Korea as the concrete instances of the operation of this rule.
He said that these countries were nearly exterminated when they came into
contact with the more mature capitalism of the western Europe that these three
societies advanced to their present state of development because they succeed
these relationship with the capitalist
world and followed a new path altogether. He went further to conclude by saying
that, “indeed”, as far as the two biggest socialist states are concerned, (the
soviet union and china), societies development has already catapulted them
beyond states such as Britain and France, which have been following the
capitalist path for centuries.
Walter Rodney (1972) catalogued the
disadvantages that go with the unequal relationship with the advanced
countries. He mentioned poverty stagnation, greed etc. he traced the present
predicament of Africa to the time it came into contact with the advanced
countries. The contact was made in the 15th century. This contact is
the result of the underdevelopment of Africa today. That while Africa continues
to stagnate, Europe continues to develop and that before this contact, Africa
be developing on their own pace- but has been degenerating since its contact
with the capitalist world. At the end he recommended the sourcing of this
relationship and the adoption of socialist mode of production as Soviet Union
and china have done. He said that socialism aims at and has significantly
achieved the creation of plenty, so that the principle of egalitarian
distribution becomes consistent that the satisfaction of the wants of member of
the society. That when this is
achieved, the workers and the peasants will be in control of the economy that
the exploitation and misery will end. What Rodney(1972) has said is what is
really happening to Africa today. I strongly share his view that the serving of
the relationship between the two .tough he did not tell us the consequences of
the serving of the relationship and how to avoid it.
Fanon (1961) argued that Europe is
literally the creation of the third world. The wealth which smoothen her is
that which was stolen from the underdeveloped people. “He went as far as saying
that we should not tremble with gratitude when any help comes from Europe. He
says this should be the ratification of a double realization: the realization
by the colonized people that it is there due, and the realization by the capitalist
power that in fact they must pay”. What
Fanon (1961) is basically saying is that Africans should realize that
Europe was created by them and therefore should disregard anything that comes
from them in the name of gifts or aid. Fanon (1961) enumerated the criminal
activities of the colonialists in their robbery adventure in Africa. These
include deportations, massacre, forced labor and slavery.
These are the methods that capitalism
used to increase its wealth its gold or diamond resources and establish its
power. He said that violence was their main instrument of accumulation. He
mentioned in detail how the European activities affected the underdevelopment
of Africans both mentally and physically, the imposition of western culture on
Africa.
