Implications of Globalization on African Econony

IMPLICATION OF GLOBALIZATION ON AFRICAN ECONOMY AND DEVELOPMENT
From the above analysis, Globalisation “entails the increasing international integration of markets for goods, services and capital bringing about noticeable changes to the face of the world economy which has frequently been described as gravitating towards a global village” (Mike Obadan, 1999) argued further that “these changes are observable in the magnitude
and structure of trade in goods and services, capital movements, gains in productivity and efficiency that are driving growth and creating jobs in industrial countries and opening the door to export led industrialization in middle income countries”
[52]. This assertion is also in line with the presentation of Peter D. Sutherland while discussing in the IMF 1998 Pa Jacobson lecture that “the qualitatively new world economy that has emerged under globalization is characterised by an extra-ordinary volume and pace of international capital flows and a structure in which the production and marketing of
goods and services are integrated across national borders” [53]. The process of globalisation is therefore playing a more and more crucial role in the determination of the efforts of trade and other external economic relations ands national development strategies. To this end, globalisation has become even more intense, with economic competition between companies and countries providing even more of an impulse to international relations and to domestic politics.
Due to inequities in power; capacity and resources; in the trading and economic relationships; in the distribution of gains and losses and inequalities in global economic structure, the South is transferring several hundreds of billions dollars of economic resources to the North annually in terms of trade losses, debt servicing, profit outflows, etc. “This drain is
a major cause of lack of resources in the South, profoundly affecting the ability to meet basic needs” for effective...