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CHAPTER ONE
INTRODUCTION
Background to the Study
One of the most popular concepts in recent times is globalization. Globalization is a complex and multifaceted concept that has generated controversy from its meaning, its time line, and its future as well as whether it is serving the interest of all or it is benefiting just a few countries or individuals in the world. Due to the fact that it cuts across almost all disciplines, each of the disciplines proffers varying definitions and interpretations for the concept.
Unlike the millennium, the notion of globalization captures what could be called the essential character of the age. Francis (2001) describes globalization as the great economic event of our era. It is also because; it is now bringing unprecedented opportunities to billions of people throughout the world. The rapid growth of information technology and the increased global integration of trade and capital which have had profound consequence for the world economy are resulting into significant shift in the world economy. This is because, increasingly, major decisions around the world are given by global competitive pressure.
The speed at which the effect globalization is spreading is fast day by day and no nation can afford to be behind if such a nation is to maintain acceptable rate of growth and development (Peter; 2002). It is also observed by Bayo (2000) that the growing impact of two major distinct global trends, which has profound implication on the world economy, are rapid growth of information technology and the increased global trade integration. He notes that these trends are resulting in a significant shift in the world economy. Probably this is why Eduard (2002) notes that the people of the planet of the earth have become one large family. To him, information technology has advanced to a level of rendering distance irrelevant. Further more, he observed that the new epoch offers new challenges and new global problems, such environmental catastrophes, extinction of resources, blood conflict and poverty.
The events in the last decade in the global economy suggest a challenge; the utilization of the opportunity engineered by globalization while at the same time managing the problem and tension it poses, for developing countries particularly Nigeria. While some individuals such as Dani (1999) David (1997) and Salimono (1999) opine that globalization opens opportunities, others such as Awake (2002) and Garry (1998) express fear about globalization. Probably it is fear anticipated by the people of the world that in December 1999, a meeting of the World Treaty
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Organization, held in Seattle, U.S.A was interrupted by riot. The demonstrators feared the effects of globalization on the people and on the planet. Since that time anti-globalization movements have spread across the globe. It is however observed that advocates of globalization hail it has the panacea for the most world problems.
It is in the light of this that this paper concentrates effort on globalization and national development, identify the opportunities for wealth creation provided by globalization as well, as the problems and macro-economic volatility and instability in the income distribution and job security.
Statement of the Problem
There has been a general outcry on the persistent rise in the unemployment rate in Nigeria. This has led an army of angry and desperate unemployed youths prowling cities and the unending influx of youth into the urban areas which has now posed further threat to an already precarious state of national security (Hernando 2013). The unemployment situation has denied its victims their legitimate means of livelihood, and in order to survive, they now involved in all forms of criminality which threaten the peace of the society.
Although during Obasanjo‟s civilian dispensation, the Nigerian economy prior to that time was closed to the world because of its pariah status, was thrown wide open, in order to attract foreign direct investments(FDIs), as it was thought that that would tackle the problem of high level unemployment, especially among youths. In doing this, it meant Nigeria had come to terms with the idea of a global village and it was ready to play the globalization game, this inturn encouraged a flurry of multinational corporations like mtn multichoice etc. The snag however is that the coming of MNCs is the demand for high skilled labour which due to certain problems inherent in the country there is a widespread deficit of. Thus these MNCs find themselves employing citizens from their home countries and bringing them to Nigeria to work, also these MNCs are backed with the seemingly bottomless speed of funds and expertise needed to survive in this clime. This enables them to have a better wherewithal to survive even morethan the indigenous local companies in most cases the success of the MNCs means the death of local companies and small scale businesses creating monopoly, thus making theses MNCs the only realistic employers of labour. In recent time the jonathan led federal government has been able to pass the local content bill which stipulate 75% of local content in every MNCs but a hindrance to this welcome development is rooted in the great advancement in science and technological
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know-how. Thanks to globalization, there is more exchange in technological know-how between nations and the trend worldwide is while should man do what machines can do more efficiently. This has sparked a wave of increased reliance on machines over human labour and a reduced need for employment of human expertise in a lot of areas. In otherwords the uses of these machines has practically brought about unemployment in the country.
Objectives of the Study
The following are the objectives of this research:
1. To provide an intellectual discourse on the functional relationship between globalization and unemployment;
2. To establish to what extent the globalization logics has benefited Nigeria; and
3. To proffer mechanisms to overcome the current challenges of globalization in Nigeria.
Research Questions
The following research questions are formulated for the study.
1. Is the lack of intellectual discourse on the fuctional relationship between globalization and unemployment responsible for youth unemployment?
2. Is the increase of globalization logics responsible for unemployment in Nigeria?
3. Is the lack to provide better mechanism to overcome the current challenges of globalization?
Research Hypothesis
Base on the above research questions, the following hypotheses are generated.
1. The lack of intellectual discourse on fuctional relationship between globalization and unemployment is responsible for youth unemployment.
2. The increase of globalization logics is responsible for youth unemployment in Nigeria.
3. The lack to provide better mechanism to overcome the current challenges of globalization is responsible for youth unemployment in Nigeria.
Significance of the Study
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There is need to study “globalization and youth unemployment” due to the increasing rate of unemployment problem among youth and others.
The findings of the study would be of great benefit to the general public like youth, parents and government.
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