Globalization and the challenges to developing african economies

Author: 
Ngoe Fritz Eseokwea, Ismaila Amadu and Manu Ibrahim

This article examines the challenges of globalization to developing African economies. It argues that although globalization has spurred competition among nations and enterprises, the greatest beneficiaries of the global agenda are the industrialised countries due to their advanced technologies which make their products more competitive in the international markets. The differences in technological developments and innovations between developing African economies and industrialized countries have favoured the global expansion of industries and enterprises of the developed economies, most often to the detriment of those of less developed countries. African countries greatly depend on taxes from international trade; therefore eliminating tariffs as compelled by WTO trade liberalization agenda deprives them of significant revenue for development. The question is whether African economies which are net importers could become richer by forgoing tax revenue when their enterprises are less competitive in the international market place. According to this paper, African economies should protect their domestic industries and invest on technological development and innovations so as to make their enterprises more competitive in the international market place”.

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