Introduction
Development, colonialism, underdevelopment, globalization, and the roles of FDI, NGOs, and MNCs are closely linked themes in political economy. Together they explain how societies grow, why some remain behind, and how external forces continue to shape economic outcomes in Africa and other developing regions.
 |
| Oil and gas |
Development
The concept "development" refers to a means through which society improves the economy, social, political and general wellbeing of the people. It is not limited to economic growth; it also involves improvement in education, healthcare, employment, infrastructure, political participation and standard of living. Traditionally, development was measured largely by economic growth, such as increase in national income, industrial production and per-capita income.
Modern approaches, however, recognise that economic growth alone does not necessarily improve people's lives. Development therefore includes human development, which emphasizes people's ability to live healthy, educated, productive and dignified lives. There are several dimensions of development:
Economic development involves increased production, employment opportunities, industrialization, improved agriculture and higher income. Social development involves improvement in education, healthcare, housing, sanitation and social welfare. Political development involves democratic participation, good governance, political stability, respect for human rights and effective institutions such as the judiciary. Technological development involves the adoption of modern technology to improve production, communication, transportation and public services. Human development focuses on expanding people's capabilities and opportunities — a framework closely associated with the UN's Human Development Index, which measures life expectancy, education and income together.
Development can be promoted through investment in education, infrastructure, healthcare, agriculture, industry, science and technology and effective governance. For developing countries like Nigeria, economic diversification and poverty reduction are especially important.
In summary, development is a multi-dimensional process aimed at improving the quality of human life. Genuine development should benefit the wider population rather than only a small section of society.
Colonialism
Colonialism refers to the system where one country establishes political, economic and social control over another territory and its people. The dominant territory is called the colonial power, while the territory under its control is called the colony.
European colonial expansion in Africa intensified in the late 19th century and continued through much of the 20th century, ending mostly with the independence movements of the 1950s–60s. The major colonial powers in Africa included Britain, France, Portugal, Belgium, Germany, Italy and Spain. The Berlin Conference of 1884–1885 formalized the partition, scramble and occupation of Africa among European powers.
Motives of colonialism included the search for raw materials, new markets, investment opportunities, strategic trade routes and colonial political power. Colonial powers also claimed they wanted to spread Christianity, Western education and civilization, though this "civilizing mission" mainly served to justify economic and political domination.
Features of colonialism included the establishment of foreign political administration; exploitation of natural resources through taxation and control of trade, restructuring local economies to serve colonial interests; and the introduction of Western-style education, Christianity, modern transportation and administrative institutions.
Effects of colonialism were both lasting and mixed. Colonial powers built roads, railways, ports, schools, hospitals and administrative institutions, though most of this infrastructure was designed primarily to facilitate the extraction and export of African resources rather than local development. On balance, colonialism resulted in the loss of political independence, economic exploitation, land dispossession (notably in Kenya's "White Highlands"), the destruction of indigenous political structures, the imposition of artificial territorial borders, and continued dependence on the export of primary commodities.
Underdevelopment
From the liberal perspective, underdevelopment is defined as backwardness in "primitive" or traditional areas. From the Marxist/dependency perspective — associated with scholars such as Walter Rodney and Andre Gunder Frank — it is understood as a man-made process, a product of prolonged political and economic relationships between poorer countries and the advanced industrial world.
Underdevelopment refers to a condition in which a country experiences relatively low levels of economic, social, technological and institutional development, commonly associated with widespread poverty, unemployment, inadequate infrastructure, low industrialization, poor access to education and health, and dependence on foreign economies. It should not simply be understood as the absence of development.
Dependency theorists argue that underdevelopment in developing countries is historically tied to their relationship with more economically powerful states.
Causes include colonial exploitation, dependence on primary commodities, weak industrialization, poor infrastructure, political instability, low human capital, and external economic dependence.
Globalization
Globalization refers to the increasing interconnectedness and interdependence of countries through the movement of goods and services, capital, technology, information and people across national borders. It has created opportunities for developing countries to participate in the global economy. Media theorist Marshall McLuhan, building on ideas he developed with Edmund Carpenter, popularized the phrase "global village" in his 1962 book The Gutenberg Galaxy, describing how electronic communication was shrinking the world.
Globalization has, however, generated debate about a "crisis of development," particularly because its benefits are not equally distributed between and within countries.
Foreign Direct Investment (FDI) and Non-Governmental Organizations (NGOs)
FDI is investment made by individuals, companies or institutions from one country in a business or productive activity in another country, usually with lasting interest or significant control. FDI contributes to development by providing capital, creating employment, introducing new technology, improving skills and increasing government revenue. For developing countries with low domestic capital, FDI can help finance economic activities and infrastructure. In turn, however, foreign investors may repatriate a large share of profits abroad, while host governments often provide tax concessions and other incentives to attract investment.
In some cases, investment is concentrated in extractive sectors such as oil and mining, with limited benefits reaching local communities. Heavy dependence on foreign capital can therefore contribute to economic vulnerability.
MNCs
Multinational corporations (MNCs) are companies that own and operate productive activities in more than one country. MNCs can promote development by bringing capital, technology, managerial skills, employment and access to international markets, and by integrating developing economies into global production networks.
MNCs have also been criticized for contributing to the crisis of development by influencing government policies, exploiting cheap labour and natural resources, causing environmental damage, and sustaining poor working conditions. Their presence does not automatically guarantee equitable economic development.
Conclusion
Taken together, these concepts show that development is not a straightforward process of economic growth alone but is shaped by historical legacies such as colonialism, ongoing structural inequalities captured by underdevelopment and dependency theory, and current global forces like globalization, FDI, NGOs and MNCs. For countries like Nigeria, genuine development requires addressing both internal governance challenges and the terms on which they engage with the global economy.
0 Comments