Introduction

Globalization has been viewed as an instrument that accelerates economic growth, most especially among those countries that are technologically advanced. It can also aid a country as it makes the transition from a primarily extractive economy to one that has a significant manufacturing sector. This has not been the case with sub-Saharan African countries, including Nigeria. They have been relegated to the background in the international arena. They could not even determine the prices of their primary commodities that earn them the largest percentage of their foreign exchange. These countries have also weakened their economies as they are constantly faced with problems of policy inconsistency and political instability. Hence, their primary commodities are sold at very cheap and unsustainable prices. This disadvantage has led to a series of interrelated negative impacts on their economic growth, which include, among others, very low industrial development. Just as it succeeded in increasing the tempo of low-scale manufacturing activities in Nigeria, as existing evidence has shown, so globalization has equally put several large-scale industries out of operation.

Though in theory globalization is expected to integrate all economies of the world into a self-sustainable equilibrium market and promote growth through reduction in barriers to trade, in reality it has led to the deindustrialization of Nigeria by emphasizing liberalization, privatization, and deregulation (three factors that are together referred to as LPD). It is against this backdrop that I seek to examine in this chapter the interconnections between globalization and industrialization by testing for their extent of correlation. I will conclude by offering recommendations about what steps should be taken in the Nigerian manufacturing sector in order for Nigeria to compete more effectively in the global economy.

Concept and Processes of Globalization

The concept of interdependence of nations due to differences in resource endowment is a fundamental principle upon which globalization has been conceived.