Economic Globalization And Poverty : A Case Study Essay

956 Words Dec 6th, 2016 4 Pages
Economic Globalization and Poverty: A Case Study in Nigeria.
When Nigeria attained independence, more than 70 percent of its GDP came from agriculture and non-oil sectors of the economy. However, shortly after independence, Shell Petroleum discovered oil for the first time in a viable quantity in Nigeria. A decade later, petroleum products supplanted agriculture as the mainstay of Nigeria’s economy. In 2006, more than 80 percent of Nigeria’s revenue and expenditure were derived from proceeds generated through petroleum products. The shift from agriculture and non-oil sectors of the economy to petroleum economy will soon open the floodgate of Nigeria’s economy to trade openness. As the below figure demonstrates, from 1970 to 2012, the country’s economic globalization index rose from 20 to about 60, a 300% leap within four decades’ span.

While Nigeria has opened its door to global trade, its poverty scores seem to have nosedived within the period. For instance, a 2006 UNDP report shows that while just 7.2 percent of Nigerian residents in the Bayelsa and Rivers State were poor in 1980, in 2004, the poverty index figure rose to 44.3 percent (UNDP, 2006). Nigeria’s national rural poverty index jumped from 28.3 percent in 1980 to 48.1 percent in 2004 . In addition, a 2010 Human Development Report on Nigeria’s Multidimensional Poverty stood at 43.25 percent and its population living below $1.25 a day at was at 67.98 percent. Why is Nigeria not reaping benefits associated with…

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