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Dependency And Underdevelopment In Africa: The Nigerian Experience
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Dependency as noted earlier states that
crucial economic decisions are made not by the countries that are being
“developed†but by foreigners whose interest are carefully safeguarded,
foreigners use their economic power to buy political power in the
country that they penetrate. Instances could be drawn from the IMF, SAP,
World Bank etc. The western world adopted this strategy
which
appeared as a means to develop most African states and Nigeria in
particular, thereby learning Nigeria and most African states indebted to
these Europe nations and as of which the debts owned by these
developing nations, increases as times goes by and becomes a reary tasks
for the developing nations as a result of their incapability to pay
backs the idea now leaves Nigeria and Africa unable to attain autonomous
growth because their structures are dependent ones.
Dependency can
be seen or defined as an explanation of the economic development of a
state in terms of the external influences, political economic and
cultural on national development.
1.5 Significance of the Study
The
significance of this study cannot be over emphasized because it is of
great importance and adds to the existing knowledge towards the concept
(Dependency
and underdevelopment). As such the ongoing analysis
becomes of great importance to these who particularly seek to understand
why Africa or Nigeria is dependent on the western world. Also of high
value of today’s government of Nigeria, which tries to eradicate the
concept of dependency and underdevelopment from the Nigeria,
socio-economic and political system
This study is finally important
to Nigeria and Africa as a whole because it explores and attempts to
bring possible solution on how Nigeria could attain a sustainable
development, inspite of her dependent nature.
1.6 Theoretical Framework
This
study considers dependency theory most appropriate as the frame work of
analysis. Dependency theory is a body of social science theories, both
from developed and developing nations that creates a world
view
which suggests that poor underdeveloped states of the periphery are
exploited by wealthy developed nations of the center in order to sustain
economic growth and remain wealthy.
For example, these European
stats of the world, issued out loans to most African states for
development exercise, and these African states, have been made to
service these debts from time to time irrespective of the fact that most
African stated are unable to pay up these debts.
Now it is seen
that even the amount paid on debt servicing for a number of years, has
even exceeded the debt owned by these African states. This is an example
of what these European, or rather what the theory of dependency
explains by suggesting that the poor underdeveloped nations of the
periphery are exploited by the wealthy developed nations of the center
in order to sustain economic growth and remain wealthy.
Dependency
theory developed in the late 1950’s under the guidance of the Director
of the United Nations Economic commission for Latin America Raul
Presbisch. Presbisch and his colleagues were troubled by the fact that
the economic growth in advanced industrialized countries did not
necessarily lead to the growth of the poorer countries. Indeed, their
studies suggested that economic activity in the rural countries often
led to serous economic problem in the poorer countries. Such as
possibility was not predicted by neo classified theory, which lead
assumed that economic growth was beneficial to all even if the benefits
were not equally shared.
Presebisch’s initial explanation for the
phenomenon was very straight forward, poor countries exported primary
commodities to the right countries that then manufactured products out
of those commodities and sold them back to the poor countries. The value
added by manufacturing a usable product always cost more than
their
primary products used to create those products. For instance, in the
oil and gas sector in Nigeria, it is observed that we export our oil to
these westerns, for refinery and after it is being refined, we also take
out variable time and money to import back this oil, and at the end of
the day, the cost of exportation and importation of these products,
becomes so high but no profit is realized after the transaction. This
now boils down to the increment of fuel price in Nigeria, workers go on
strike etc. Therefore poorer countries would never be earning enough
from their export earnings to pay for their exports.
Presbisch’s
solution was similarly straight forward poorer countries should embark
on program of import substitution so that they need not purchase the
manufactured product from the richer countries. The poorer countries
would still sell their primary product on the world market but their
foreign exchange reserves
world not be used to purchase their manufacturers from abroad.
Three
issues made this policy difficult to flow. The first is that the
internal markets of the poorer countries were not large enough to
support the economies of scale used by the richer countries to keep
their prices low.
The second issue concerned the political will of
the poorer countries as to whether a transformation from being primary
product producers was possible or desirable.
The final issue
revolved around the extent to which the poorer countries actually had
control of their primary products, particularly in the area of selling
those products aboard.
These obstacles to the import substitute
policy led others to think a little more creatively and his toxically at
the relationship between rich and poor countries.
At this point,
dependency theory was viewed as a possible way of explaining the
persistent poverty of the poorer countries. The traditional
neo-classical approach said vertically nothing on this question except
to assert that the poorer countries were late in coming to solid
economic practices and then as soon as they learned the techniques of
modern economies, then the poverty will begin to subside. However
Marxist theorists of viewed the persistent poverty as a consequence of
capitalists exploitation. And e new body of thought, called the “word
system approach†argued that the poverty was a direct consequence of the
evolution of the international political economy into a fairly rigid
division of labour, which favoured the rich and penalized the poor.
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ABSRACT - [ Total Page(s): 1 ]Dependency and underdevelopment in Africa is our main thrust which we try to relate the above to the Nigerian context. Dependency as we all know is a product of underdevelopment which is prevalent in Africa in general and Nigeria in particular. It is certain that Nigeria is an independent nation, but it does not reflect in all the facts in the society since the super structures that form the society and state are dependent on foreign policy and factors. As we can see in this research work, we ob ... Continue reading---
