GLOBALISATION AND ECONOMIC DEVELOPMENT IN AFRICA: OPPORTUNITIES AND CHALLENGES

Abstract

The term “globalization” has been in use since at least the early 1990’s to characterize the present period in which we live. Globalization is multi-dimensional and affects all spheres of economic, cultural, environmental and social, up to relations between states and nations across continents. The study adopted the secondary sources of data to examine the effects of open door policy and Foreign Direct Investment as a channel for financial globalization on the African economy. The research examined the concept of globalization and development and the position of Africa in the international economic relations which involves trade in goods and services. This research observed that Africa has not actually benefited much from globalization, owing to their undue over reliance on imported manufactured goods and the underdeveloped domestic financial market. This revealed that open door policy has significantly affected the economic growth rate of African Countries while Foreign Direct Investment as a means of financial globalization has not significantly impacted on the African economy. It is recommended that government should revive all mal-functioning industries, refineries and diversify the economy, so that most African countries can participate actively which inevitably promotes economic productivity, exportation, growth and development. In this research, the theoretical framework adopted was, classical theory and the theory of unequal exchange and underdevelopment, this research concluded that for Africa to benefit much from globalization and escape from being exploited, suppressed and marginalized, African countries must diversify their economy and the state should come in (Protectionism) and regulate the necessary sectors of the economy and corruption must be alleviated in African states.