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UNJYERSXTY OF NIGERIA, NSUKKA
DEPARTMENT OF MECHANICAL ENGINEXRING
TOPIC:
INDUSTRIAL BACKWARDNESS OF THIRD WORLD
COUNTRIES AND NIGERIA IN PARTICULAR: WHICH WAY
OUT?
A TERM PAPER
PRESENTED IN PARTIAL FULFILLMENT OF THE
REQUIREMENT OF THE COURSE G. S. 104 (SOCIAL
SCIENCE)
BY
OSUEBI C H U W J E M E K A
REG NO: 2006/143907
LECTURER: I.E. UKWUARA I!
JUNE, 2008.
TITLE PAGE
INDaZS'bR3CAb BACKWARDNESS OF
THIRD WORLD COUNTRIES AND
NIGERIA IN PARTICULAR:
WMTCM WAY OUT?
DEDlCATlON
This work is dedicated to the most high God the maker of
heaven and earth for his kindness and grace upon my I
dedicate this work to my hl~rnble family and friends for
both financially and other wise.
life. Finally 1
their support
ACkiYOWLEDGEMENT
Most importantly I acknowledge the almighty God for the
inspiration he gave to me to compile this work and the success so far
on my academics.
T wish to acknowledge with deep sense of gratitude the authors,
publishers and or individuals wlme works were cited in this work.
Finally 1 also thank all those wlio made this term paper a
success. T want to say I love you all.
PREFACE
The goal of this term paper, industrial backwardness of third
world countries and Nigeria in particular; which way out is to
highlight some factors which causes industrial backwardness,
consequences and sohtions to industrial backwardness in third would
countries and Nigeria in particular.
Chapter one contains the introduction, defhtion of terms and
some major points why Nigeria is chosen as a case study of industrial
backwardness.
Chapter two contains / treats the possible factors which leads to
industrial backwardness while chapter three deals with the
consequences of industrial backwardness.
Chapter four which contains the crux of the term paper deals
with solution (way out) to the longstanding problem of industrial
backwardness in Nigeria. Finally chapter five contains the summary /
conclusion and references.
TABLE OF CONTENTS
CHAPTER ONE
1.0 INTRODUCTION - - .. - - - 1
1.1 Definition of term - - - - - - 2
I .2 What is industrialization - - - - - 2
1.3 What is industrial bacLxardness - - - - 3
1.4 Third world countries - - - - - - 3
1.5 Why is Nigeria important as a case study of industrial
backwardness - - - - - - - 3
CHAPTER TWO
2.0 FACTORS THAT LEADS TO JNDUSTRTAL
BACKWARDNESS - - - - - - 5
2.1 Administrative constraints and a restritive industrial
policy - a - - - - - - 5
2.2 Political influence I instability and government policy - 5
2.3 A small size market for industrial goods - - - 6
2.4 Low man power skill - - - - - - 7
2.5 A Jack o f adequate research and a delay in completing
feasibility studies - - - - - - - 8
CHAPTER THREE
3.0 CONSEQUENCES OF INDUSTRIAL
BACKWARDNESS - - - - - - 9
3.1 Inhibition of economic growth and development - - 9
3.2 Unemplo-pent- - - - - - - 10
3.3 Hinder craftsmanship - - - - - - 10
CHAPTER F O t X
4.0 POSSIBLE SOLUTIOYS TO INDUSTRIAL
BACKWARDNESS - - - - - - I 1
4.1 To diversi6 the economy
4.2 Making industrial policy which will favour foreign
investors - - - - - - - - 11
4.3 Increase market size for produced goods - - - 12
4.4 Improve standard of education - - - - 12
4.5 Provision and maintenance of infiastn~ctural facilities - 1 3
CHAPTER FIVE
5.0 SUMMARY ,' CONCLUSION - - - - 14
Bibliography
CHAPTER OXE
1.0 l[NTRBDUCTION
?'he international system have been undergoing tremendous
changes since the cessation of the divisive and delibilitating cold war
in 1989. Apart from being witnessed in political and economic scene,
the Post - Cold War c l ~ a n ~ e s are also profound in the industrial sector.
This cold be observed from immense industrial and economic
transfortnation taking place in the developed cowtries like, china,
Hong kong, Taiwan, united states of America (USA), Europe, Egypt,
Germany etc.
As the impressive industrial revitalization process is being
witnessed in different part of the world, one is apprehensive about the
future of the third world countries, (developing countries) with
Nigeria in particdar. +this is ccmsiderins the higering stagancy and
backwardness o f the cormtry, which is endowed with enormous
li~m~an, natural and material resources but yet is not making
sipificant indwttial headway which countries like united states,
Japan, China and others, which do not have mrtch resource have
recorded.
Following the Ions lastins industrial baclnvardness in the
developing counties, the objective of this term paper is to address the
factor responsible for industrial backwardness, the consequences and
most importantly the way out of the problem specifically in Nigeria.
1.1 DEFINlTlORT OF TER,MS
1.2 WHAT 1s TND~~STRIALIZ4TION
Industrialization is a phenomenon in the development of
nations, characterized by the _ero~vtJi of machine and power tools
production. The growth of mechanical and technical skills
( tecllnolo~~) C - required for indristrial production, with attendant large
scale production, all of which leads to changes in the social and
economic organisation, society. Indirstria!ization is a process, which
increase the vol~irne of production in industrial activities such as
manrrfact~rring, construction, etc. As industrialization proceeds. Its
total output of the indush-ial sector, as a percentage of nation output
increases.
1.3 W H A T IS INDWTR I A L BACKM'ARDNESS
Industrial backwardness can be defined as the phenomenon
whereby the volume of production in industrial activities is decreased.
Tt could be experience within a particular season in a particular place.
Moreover, as industrial backwardness persist the total output of the
industrial sector, as a percentaze of nation output decrease.
1.4 THIRD WORLD COtlNTRIES
This are the countries which are less developed as compared to
developed counties like United State, Japan, China, etc. They are the
counties where the standard of living is ~rnfavourable to the common
tnembers of the society. Thev can also be called developing countries.
This countries include: Nigeria, Ghana, India, Zimbagwe, among
others and are highly known for their indmtrial / economic
backwardness.
1.5 WHY IS NIGERIA IMPORTANT AS A CASE STUDY OF
l NnUSTRIAL R,tG h71'A RQNKSS
Nigeria has the bigzest population in Africa with 1 in 6
Africans beins Nigerian. Nig,eria has a peat deal of influence in West
African. I t is an important member of ECOWAS (the economic
comrntmity of West African stated and plavs a central roIe in
industrial market system in Afhca.
Having the above mentioned features, it will not be wrong to
say Nigeria economy is the backbone of some economic system in the
developing countries of A-Fn'ca hence the need for a h m over in the
industrial sector of the comtry.
CHAPTER -mlrQ
2.0 FACTORS THAT LEAD TO INDITSTRIAL
RACKWARQNESS
2.1 ADMINISTR,4TIVE CONSTRAINTS AND A RESTRICTIVE
INDUSTRlAL POLICY
There are certain government restriction and administrative
bottlenecks which fixstrate entrepreneurs and prevent the setting up of
certain industries. These include the difficulty in getting licenses or
permits because of the very many authorities from whom these have
to be collected. Approval for setting up an industry is thereby delayed.
Sometimes taxation is usrlafly high. Also, there may be lack of chear
guidelines with regards to payment of royalties, license fees and
technical fees. All these tend to limit industrial development.
2.2 POLITJCAL INFLCTENCBE / TNSTARILIXY AND
GOVERNMENT POLICY
These have led to the location of industrial in economically
unviable areas. Since these two factor are important factors industrial
location in third world countries and the worId at large, they have
constituted obstacles to good industrial performance. They have
resulted in many industries being established which have performed
far below the optimum.
The third world counties are also faced with incessant internal
inprisings, coups d'etat, etc. 11ese create an atmosphere of fear and
insecurity, therebv discouraging investment in industry.
E there are frequent crises in a country, the attention of the
government will be primarily focused on dealing with such crises
rather than on development of indushy. Indigenous entrepreneurs
would not be encourage to invest. In addition foreign entrepreneurs
would be seaned away, thereby discouragins investment hence
leading to industrial backwardness.
2.3 A SMALL SIZE MARKET FOR TNDUSTRlAL GOODS
There is an inadequate demand for goods in the third kvorld
countries. This is due to the small size of population of some
co~intries, and the low income per capital, with the exception of
Nigeria, with the Jmze popdation of over 140 nill lion, and some other
large developing co~mh-ies, many developing countries have small
popdations. This mean the potential market for industrial goods is
small in many countries.
Tt has beera diflicdt to set up iron and steel industries, car
manufacturing industries, etc. in some developing conntries because
of the low demand.
2.4 LOW MAY POWER SKILL
Skilled industrial manpower is scarce in developing countries.
The shortage of skilled industrial manpower is partly due to the high
degree of illiteracy which placed greater emphasis on gmnrnar
subjects has led to a shortage of manpower suitable for industrial
development.
The shortage of skilled labour has hindered the establishment of
heavy engineering industries in developing countries. It has also
brought about reliance on foreip manpower. Dependence on foreign
skills labour has its shortcomings. Among them i s that such people are
mually highly paid. and this reduces business profit. Again, it results
in a drain in foreign exchange due to the reloatriation of money over
seas.
2.5 '4 LACK OF ADEQUATE RESEARCH AND A DECAY IN
COMPLETING FEASIRILIT'I' STUDIES
The shortage of required manpower has led to inadequate
research in matters relating to industrial development, since the
amount of research done is still so small, it has not been possible to
over come certain constraints which result in industrial backwardness.
The shortage of personnel has also delayed the completion of
feasibility shrdies before an industry is established; it is necessary to
determine its viability. In developing countries, this may take a long
time to do became of the shorta~e of personnel. In some cases, such
feasibility studies are not undertaken. Tlie result is that industries,
wl~icli are estaldished, may not be viable after all. They fold up after a
s1101-t period of operation.
T l~e shodage of indigenous personnel has led to reliance of
foreign experts wid1 their usual shortcomings.
CHARTER THREE
3.0 CONSIQUENCIES OF IINDIISTRIAL BACDYARDNESS
3.1 JNAIBITJON OF ECONOMlC CROFVTFI AND DEVELOPMENT
Industrialization stapated from the late seventies onwad.
Output per capital Nigeria declined. and so did the share of industry in
Gross Domestic Prodnct (GDP) within indushy, the share of
manufacturing stagnated. Viis situation has made sotne economic
scholars to draw conclr~sions that Nigeria. in a s+vmptom of its general
declines, is de - industrializing.
The industrial growth in Nigeria so fir has been mainly due to
import - substitution industrialization (ISI), resulting until mid -
1970s in growth rates similar to those of sub- Sahara countries
realized for their economic performance almost singularly on the
export of prima? products, improcessed raw materials, and were
unable to substantially c h a n ~ e the colonial Features, and inherent
restrictions, of their economics.
A birds - eye view of the present predicament of Nigeria shows
that economic performance has been poor, especially since the
be@nming of 1980s. With GDP yowth rate consistently falling below
population growt11 sates, rewlting in a fall in per capital income.
3.2 UNEMPLOYM EiVT
Unemployment is one of the major consequences of indmtrial
backwardness and also a nations backwardness both in other sectors
like economic sector, political sector, agicultmal sector etc.
Today one may gaduate with a first class honour in any
university and remain jobless because of lack of job opportunities,
which is as a result of industrial and economic decline.
3.3 HINDER CRAFTSMANSNTP
Most of the goods, which are manufactured in several places,
cotltains several raw materials which are mainly produced in the rural
areas bv craft men or talented people. Due to the devastating nature of
the economy, such talents may not be ed~ibited due to financial
constraints.
CHAPTER FOUR
POSSlBLE SOLIITlONS TO lNDllSTRIAt
BACJGVARDNESS
TO DIVERSITY THE ECONObW
The magic wand for the developing co~mtries is economic
diversification, the significant emphasis being placed on harnessing of
development catalytic sectors like tecl~nology, industrialization, mine
/ power / steel, private initiative etc.
Having emphasized the foregoing, the need for diversifying the
Nigeria economy for growth cannot be under scored. As a step in this
direction, the Federal Government should start working towards
reversal of the mono economic profile of the country by placing fewer
premiums on oil export as means of our national sustenance.
4.2 MAKlNG INDUSTRIAL POLICY WF-TICH WILL FAVOUR
FOREIGN IN\:ESTOIR
Foreign investors are sometime scared of investing in the third
world counties due to the fact that most times government policies
tends to restrict them from normal operation.
Therefore it is wise for our government to make policies, which
will promote foreign investment which will in t ~ r r n promote the
industries sector of our great nation.
4.3 INCREASE MARKET SIZE FOR PRODUCED GOODS
Manv developing co~uitries have small populations. This mean
that potential market for industrial ~ o o d s is small in many countmes.
It has been difficult to set up some industries in developing
countries became of the how demand for goods produced by siich
industries. This is as a result of a small size market for such goods
therefore; the government pthlic and private sectors should help to
increase the market size for produced _eoods. This can be done by
creating a wav for exportation of produced good to some other
counties and also by restricting the rate of importation of some
certain goods, which are produced in the country.
4.4 IMPROVE STANDARD OF EDUC.4TIBN
The standard of education in Nigeria is very low. This is the
reason why most people who are well to do travel aboard for
education. Pupils or students are not well equipped with facilities for
13
learning. This problem has lead to low technical manpower skill for
industrial improvement. The government should used the money
which is normally allocated for vocational training to better the
education system of the nation. By so doing individuals on different
field will improve on their technical skills and industrialization will be
boosted.
4.5 PROVlSlON AND MAINTENANCE OF
JNFRASTRUCTURAL FACILITIES
Infrastructural facilities like electricitv, water etc are vital il
some manufacture industries. The rate of supply of electricity in
Nigeria is not encouraging, this could result in the increase in the
piice of manufactured good due to other expenses like, using
electrical generatins plan, bumins of diesel and firel in the course of
production. Of course, such experiences will always cause the price of
commodity produced to increase this is done so as to recover the sum
of money spent in the course of production. Adequate supply and
maintenance of infiastnrctural facilities will help to and such
situations.