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

Shishi Zhema, Ochoga Edwin Ochoga, Attah Pine


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


Full Text:



Abubakar, D. Globalization, Social Sciences and Nigeria in the 21st Century. Nigerian Social Scientist, 4 (1). 2001

Acemoghi, O. and Ventura, J.. “The World Income. Distribution”, Quarterly Journal of Economics Vol. 117, No. (3), 2002, 659-94.

Ajavi. S. What Africa Needs to do to Benefit from Globalization. Finance and Development Vol. 38, No. (4). 2001.

ASSU. The State of the National. Ile-Ife: Academic Staff Union of Universities. March, 2002.

Akinboyo, O. Globalization Information Technology and the Nigerian Financial System. NES 2003 Annual Conference, Ibadan, 2003.

Aryeetey F.. Recent Development in African Financial Markets: for Further Research. Plenary Paper AERC Workshop, Kenya, 2-7 Dec. 2000.

Bhagwati J. and Scrinvasan, T. Trade and Poverty in the Poor countries. American Economic Review Papers and Proceedings, Vol. 92. No. (2), 2002.

Bono, R. Inequa1ity and Growth in Panel of Countries. Journal of EconomicGrowth, Vol. 5, No. (1): 1999.

Bigesten, J.. Growth, Income Distribution and poverty: A Review Goteborg. Scandinavian Working Paper in Economics, No. 32. 2001.

Deninger, K. and Squire, L., A New Data Set measuring Income Inequality.World Bank Economic Review Vol.10, No. (3). 1996.

Dollar, D. and Kraay A. Growth is Good for the Poor. Washington D.C. World Bank Working Paper, No. 2587, 2001b.

Dollar, D. and Kraay, A. Trade, Growth and Poverty. Washington D.C. World Bank Working Paper, No. 2615. 2001a

Hoogvelt, A. Globalization and the Post-colonial World: The New Political Economy of Development. London: Palgrave, 2001.

Kuznet, S. Economic Growth and Income Inequality. American Economic Review. Vol. 45, No., 1955.

Kwanashie. M. The Concept and Process of Globalization. CBN Economic and Financial Review Vol. 36, No. (40) Decembe, 1998.

Ochoga, O.E.. The Impact of Globalization on Poverty Reduction in Nigeria,2000-2012. M.Sc Dissertation to Benue State University. (unpublished, 2012)

Owolabi, E.A.. “Globalization, Liberalization and theRisk of Marginalization of Nigeria” in CBN Research Dept. Seminar Paper No. 5 CBN. Abuja, 1998.

Rodrik, D. Comment or ‘Trade, Growth and Poverty by D. Dollar and A. Kray. Cambridge Mass Havard University, Mimeo, 2000.

Sala-I-Martin, X. The World Distribution of Income Inequality. Cambridge (Mass) NBER Working Paper No. 8904., 2002

Sala-I- Martin, X. The World Distribution of Income (Estimated form Individual Country Distribution). Cambridge (Mass), NBER Working Paper No. 8933, 2002b.

Soyibo, E.. Financial Liberalization and Bank Restructuring in Sub- Sahara Africa,Some Lessons for Sequencing and Policy Design. Plenary Paper AERC Workshop, 4-9 December, 2002 Nairobi, Kenya.

Spillimbergo, A., Londono, J. and Sezekely, M. Income distribution. Factors Endowment and Trade Openness, Journal of Development Economics, Vol. 59,No. (1), 1999.

Stislitz. J.. Globalization and its Discontents. New York, W.W Norton, USA. 2002

UNDP, Human Development Report, Oxford: Oxford University Press. 2019

Winters, L. Trade, Trade Policy and Poverty: What are the Links? London, CERP Discussion Paper, No. 2382, 2000.

Yusuf, S. Globalization and the Challenges for Developing Countries. World Bank, Development Economies Research Group, DERG, April 30,2000


  • There are currently no refbacks.