Impact Of Trade Liberalization On African Countries Essay

The scholarship examining the extent at which trade liberalization (henceforth refers to as economic globalization) impacts poverty levels is limited. This essay examines the relationships between economic globalization and poverty levels in African countries. For instance, a 2006 UNDP report illustrates that just 7.2 percent of Bayelsa and Rivers State (Nigeria) residents were poor in 1980, but in 2004, the poverty index figures rose exponentially to 44.3 percent; Nigeria’s national rural poverty index jumped from 28.3 percent in 1980 to 48 percent in 2000. Also, the 2010 Human Development Report on Nigeria’s Multidimensional Poverty was at 43.25 percent and its population living below $1.25 a day was at 67.98 percent . The reason for this decline, the report noted, must do with the destructive impact of globalization on the local economy in Nigeria. The report avers that more than 70 percent of the residents’ income comes from the informal sector; consisting of farming, fishing, and other related income-generating activities . As Nigeria’s economy, has been fully incorporated into the international economic system, the country’s poverty indexes too seem to have been rising alongside. This seeming relationship between globalization and poverty in Nigeria may run contrary to how economic globalization has been publicized as something beneficial to all. Western institutions have touted trade liberalization as essential for the stability of advanced economies, and as aShow MoreRelatedInternational Factors and Multinational Corporations1724 Words   |  7 PagesRegional Trade Agreements and Global trade liberalization are common terms that are used to analyze different market structures in the market. According to international economics, RTAs (Regional Trading Agreements) are the agreements in which members give each another privileged treatment with respect to the extent by which the trade barriers have been established. On th e other side, Global Trade liberalization is a general term referring to the depletion of trade boundaries globally to ensure freeRead MoreImf Structural Adjustment Programs in Africa1070 Words   |  5 Pageson African debtor nations. SAP’s have been imposed on 36 African Sub-Saharan countries under the assumption that neo-liberal reforms lead to economic growth and an increased standard of living. For that reason, focus was put on macroeconomic policies with the open market based approach. 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This followed the settingRead MoreThe Creation Of The World Bank1999 Words   |  8 Pagesdisparities facing African nations, and open new markets for international trade. Africa’s economic stagnation calls for a shift in paradigm, leaning towards sustained economic growth. It is only through the sustained growth of these economies that the World Bank can claim success. This essay will assess the meaning of failed development, effects of trade liberalization and the impact that multi-national corporations have had on African countries. Imposing neo-liberalism on African nations has led to