ABSTRACT
After about five decades of political independence, all efforts towards prosperous Nigeria were devastated by corruption, fraud, poverty, insecurity and primitive wealth accumulation. A lot is being said on the actual causes of the Nigeria’s socio-political and economic predicaments especially in the wake of the present century. This paper explores and analyses the roles of the so-called ‘United Nation Development partners’ (the World Bank, the International Monetary Fund and the World Trade Organization) in making Nigeria one of the poorest and corrupt countries on earth. The paper also sheds more light on how the activities of these institutions pushed Nigeria into the “poverty-trap” which makes it difficult for the country to harness the vast human and material resources available for a common goal.
Table of Contents
1. INTRODUCTION
2. EXTERNAL FORCES
3. POVERTY
4. THE ACTIVITIES OF EXTERNAL FORCES IN NIGERIA
5. SOCIO-ECONOMIC CONSEQUENCES OF THE ACTIVITIES OF EXTERNAL FORCES IN NIGERIA.
6. RECOMMENDATIONS
7. CONCLUSION
Research Objectives and Core Themes
This paper examines the influence of international financial institutions, specifically the World Bank, the International Monetary Fund (IMF), and the World Trade Organization (WTO), on Nigeria's economic development. It seeks to analyze how their policy interventions, particularly the Structural Adjustment Programme (SAP), have contributed to economic stagnation, poverty, and the erosion of national economic sovereignty in Nigeria.
- The role of international "development partners" in Nigeria's economic decline.
- The impact of the Structural Adjustment Programme (SAP) on the Nigerian economy.
- Indicators and causes of poverty in Nigeria since the 1980s.
- Critical analysis of neo-liberal economic policies and external debt.
- Proposed strategies for economic recovery through national policy autonomy.
Excerpt from the Book
THE ACTIVITIES OF EXTERNAL FORCES IN NIGERIA
The role of IMF, World Bank and WTO in distorting the fabric of the Nigerian economy cannot be overemphasized. The World Bank started involving itself in Nigeria as early as 1955 when it shouldered the responsibility for a critical study on the future of Nigerian economy titled the “Economic Development of Nigeria” (Alkali, 1997). This study unveiled the structure and the prospects of the Nigerian economy in the future. In 1958, the Bank extended its first credit facility to the tune of $28.0million to Nigeria to complete the railway line from Gombe; where this congress is taking place, to Maiduguri; the capital of Borno state. This marked the beginning of the World Bank interference in the Nigerian political economy. Most of the projects financed by the Bank were in the areas of highways, transport, seaports, telecommunications and electricity energy. From 1958 to 1970, a total of twelve projects were financed by the World Bank in Nigeria totaling some $284.3 million. Out of this amount, the sum of $242.6million, accounting to 87 per cent of the Bank’s total loan was spent on provision of urban highways and electricity. Other sectors affected here were the education and business finance where $43.7million amounting to 13 per cent of the total facility. (Alkali, 1997).
Summary of Chapters
INTRODUCTION: Outlines Nigeria's vast natural resource endowment and its transition from an agriculture-based economy to an oil-dependent one, while noting the persistent poverty despite this wealth.
EXTERNAL FORCES: Defines the specific international institutions, namely the IMF, IBRD (World Bank), and WTO, and their origins as post-WWII economic frameworks.
POVERTY: Discusses various definitions of poverty and establishes it as a multidimensional economic condition affecting the standard of living for the majority of Nigerians.
THE ACTIVITIES OF EXTERNAL FORCES IN NIGERIA: Details the historical involvement of the World Bank in financing Nigerian infrastructure and the subsequent introduction of the Structural Adjustment Programme.
SOCIO-ECONOMIC CONSEQUENCES OF THE ACTIVITIES OF EXTERNAL FORCES IN NIGERIA.: Analyzes the negative impacts of SAP, including currency devaluation, debt accumulation, and declining social welfare indicators.
RECOMMENDATIONS: Proposes that Nigeria must pursue independent economic strategies, re-establish national planning, and prioritize domestic welfare over external neoliberal prescriptions.
CONCLUSION: Argues that development must focus on human welfare and that Nigeria should reject the restrictive guidelines of Bretton Woods institutions to regain economic sovereignty.
Keywords
Nigeria, Economic Security, Structural Adjustment Programme, World Bank, IMF, WTO, Poverty, Debt, Foreign Policy, Neo-colonialism, Economic Sovereignty, Infrastructure, Agriculture, Privatization, Development.
Frequently Asked Questions
What is the central focus of this paper?
The paper examines the impact of international financial organizations—specifically the World Bank, IMF, and WTO—on Nigeria's economic stability and development since the mid-20th century.
What are the core thematic fields covered?
The work explores themes of economic dependency, international loan conditionalities, the historical failure of the Structural Adjustment Programme (SAP), and the link between these policies and rising poverty rates.
What is the primary objective of the research?
The objective is to demonstrate that policies enforced by external agencies have significantly contributed to Nigeria's socio-economic decline and to argue for a shift toward autonomous national economic planning.
Which scientific approach is utilized?
The author employs a historical-analytical approach, using macroeconomic data, government reports, and literature reviews to trace the impact of international institutional interference on the Nigerian economy.
What topics are discussed in the main body of the work?
The main sections cover the history of World Bank involvement, the definition of poverty in the Nigerian context, the specific mechanisms of the SAP, and the devastating consequences for the banking, agricultural, and social welfare sectors.
Which keywords best characterize the research?
Key terms include Nigeria, Economic Security, Structural Adjustment Programme, World Bank, IMF, Poverty, Debt, and Economic Sovereignty.
How did the Structural Adjustment Programme specifically affect the Nigerian Naira?
The implementation of SAP led to a massive devaluation of the currency; the author notes that within fifteen months of the program's introduction, the Naira value depreciated by 600%.
What specific alternative strategies does the author recommend for Nigeria?
The author recommends rejecting unhealthy foreign prescriptions, re-establishing a ministry of economic planning, subsidizing the agricultural sector, and utilizing capital controls to protect the economy, citing the successful examples of countries like China and Malaysia.
- Quote paper
- Dahiru Rabe (Author), 2008, Influence of external forces on Nigeria's economic security, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/189399
