The Invisible Hands of Globalization and the Discontentment of its Payoff: A Discourse

Abstract

The paper attempted an analytical interrogation of the payoff of globalization so as to ascertain whether or not the invisible hands of capitalism are fair to every nation of the world. The methodology of the paper is purely interrogative in nature without situating the analytical track of the paper within a theoretical base. The proponents of globalization believe that removal of encumbrances for easy movement of factors of production across national frontiers is a recipe for global wealth creation and poverty reduction. To them, the indivisible hands of capitalism which determines demand and supply in the global market is value-free and it has the potentials to reduce global inequality and course development. But the protagonists have contrary views. Their discontentment is that nations engage in international trade for the purpose of profit making and as such, the economic weaknesses inherent in the economies of less developed countries would invariably become the sources of economic gains for the developed countries. They believe that the fruits of globalization are not distributed by invisible hands but carefully designed hands of the developed counties and international institutions controlled by them. The protagonists believe that globalization makes some nations better off, and the same time, makes others worse off. These divergent views notwithstanding, globalization also has its own potential benefits. But for a developing nation like Nigeria, the risks and costs associated with globalization seems to outweigh its potential benefits. The paper concludes that, if a leper may be embraced, caution is required. And from all indications, globalization is associated with some risks and costs, and may have adverse indications for international economic stability and poverty reduction.                     

Keywords: Globalization, Invisible Hands, Payoff and Nations