Vanguard (Lagos)

Africa: Globalisation and the Development of Africa

opinion

Kaduna — THE inequality of nations challenges the theory of globalisation as a world system, because it is common knowledge that Africa falls within the category of countries regarded as underdeveloped. If we examine the structure of an underdeveloped economy, it is typically an importer of both capital and technology as well as consumer goods from the developed world. These imported capital and technology play a crucial part in its development.

Domestic substitution for foreign capital and foreign technical know-how is a very costly affair, often indeed impossible.This is true whether we think of replication or genuine substitution allowing for the different needs of a poorer country. For most African countries, the export sector is the leading sector which sets the pace for development and shapes the rest of the economy including the pattern and pace of growth.

Typically, size by size,the poorer a country ,the more dependent it is on foreign markets ,and foreign sources of supply. If the export sector stagnates, such that the inflow of resources from abroad is constrained, the pace of growth and rate of structural change are likely to be highly sensitive to such decline in the availability of foreign resources.

The terms on which the developing countries can obtain foreign exchange, capital and technology reflects the relationship between the rich and poor countries in the world economy.

In the face of the existing distribution of economic power, it is the rich countries who determine the terms because in the short run, the developing countries nay Africa need the products and services of the developed countries much more than the latter needs the output of the former. Recent statistics obtained have infact confirmed that Africa's share in the total world trade is just about 1% This can be appreciated if we take a look at the international commodity and factor markets. African countries are mainly price takers and also "takers" untill very recently in trade negotiations and trade policy formulations.

This dependence of African countries on developed countries\western countries has far reaching consequences for the development prospects of the former.

The existence of such great disparities and one-sided depen-dence has placed a moral question on the concept of globalisation.

The poverty of African countries also reflects essentially the technological gap between them and the rich countries. Even the oil rich countries are no exceptions in this regard.

This results in the developing countries inability to produce by themselves goods which require modern technical know-how as important inputs and even less to develop an alternative technological substitute.

The trade patterns of African countries show that they usually export crude or processed agriculture or mineral based products.These countries have not succeeded in adapting or replicating for their own countries the technological development that have occurerd in the rich countries. This is another fact that we are confronted with that has tended to negate the principle of globalisation vis a vis the development of Africa.

Although ,the division of the world into developed and underdeveloped countries is an oversimplification, ,vast differences in natural endowments ,economic conditions,cultural heritage,social organisations and political traditions are factors that have also tended to broaden the inequalities that exist between the developed countries and Africa in particular, hence globalisation has excarbated "global poverty" particularly in these African countries.

The difference in the material conditions of people living in various parts of the world is reflected graphically in two socio-economic indicators the rate of national literacy and the per capita energy consumption rate. Together these two indices provide a telling measure of sophistication of the production structure of a nation, and they are much significant than indicators based on the sectoral origin of gross domestic product [GDP} Literacy in African countries is considerably lower than in developed/western societies as is per capita energy consumption.

This structural characteristic of the economy reflects the inability of African countries to exploit their economic potential and also to enjoy the so called "benefits of globalisation"

In fact about 40 African countries fall within the category of the poorest countries in the world; as a matter of fact the global economic turmoil of recent years has affected developing countries with severity.

In Africa the free working of market forces in no way enables countries to withstand the challenges of globalisation and multinational capital.

The proponents of globalisation must recognise that only global redistribution can ensure the development of Africa; that the developing world's primary needs are far more social rather than private capital accumulation,which globalisation entails.

Another dimension to the issue of globalisation vis-a-vis the development of Africa is the activity[ies] of multinational companies [MNC's] which are agents of developed nations who are advocating a greater role for the free play of market forces without due regard to social factors within these African nations. As a result of these, Africa stands the risk of distorted development.

The calamities which this "new world order" is visiting on billions of people around the globe, particularly African nations cannot be quantified. As a matter of fact globalisation has led to a situation whereby the top 20 per cent of humanity now controls 84 per cent of the worlds wealth, while the bottom 20 per cent makes do with a little over one per cent of the world's wealth.


Copyright © 2007 Vanguard. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica aggregates and indexes content from over 130 African news organizations, plus more than 200 other sources, who are responsible for their own reporting and views. Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica.

Comments Post a comment