Multinationals, the State and Control of the Nigerian Economy

Multinationals, the State and Control of the Nigerian Economy

Thomas J. Biersteker
Copyright Date: 1987
Pages: 366
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    Multinationals, the State and Control of the Nigerian Economy
    Book Description:

    Thomas Biersteker evaluates the sources of Third World economic nationalism and assesses the significance of the changes that have taken place between North and South since the early 1970s. Neo-classical and neo-Marxist approaches to international and comparative political economy are explored to develop methods and select criteria for the assessment of major change.

    Originally published in 1987.

    ThePrinceton Legacy Libraryuses the latest print-on-demand technology to again make available previously out-of-print books from the distinguished backlist of Princeton University Press. These paperback editions preserve the original texts of these important books while presenting them in durable paperback editions. The goal of the Princeton Legacy Library is to vastly increase access to the rich scholarly heritage found in the thousands of books published by Princeton University Press since its founding in 1905.

    eISBN: 978-1-4008-5850-7
    Subjects: Business, Political Science

Table of Contents

  1. Front Matter
    (pp. i-vi)
  2. Table of Contents
    (pp. vii-viii)
    (pp. ix-x)
    (pp. xi-xiv)
    (pp. xv-xviii)
    (pp. xix-2)
    (pp. 3-10)

    The issue of control is central to an understanding of the economic and political conflict that separates North from South, rich from poor, the haves from the have-nots in the contemporary world economy. It is related to, but analytically distinct from, the issue of improving the material well-being of the South. For example, nationalization of extractive industries throughout the world took place in part because host states wanted greater control over the natural resources removed from their sovereign territory. OPEC was founded to provide producer states with greater control over the international prices petroleum obtained and over the international markets...

  8. CHAPTER ONE Assessments of Indigenization: A Critical Review of Six Theoretical Approaches
    (pp. 11-51)

    There are as many different perspectives on indigenization and economic nationalism as there are people writing about these topics. However, six distinct theoretical approaches to contemporary international political economy can be identified as important in the discussion of these issues today. Each of these theoretical approaches has different ideas about what development is and what it should be. Each also has a different interpretation of the direction of change in the relationship between rich and poor in the world economy since the mid-1970s. The issue of control is central to many of their concerns, and different perspectives can be defined...

  9. CHAPTER TWO The State as Collaborator: The First Indigenization Decree
    (pp. 52-96)

    On 25 February 1972, Nigeria’s first Enterprises Promotion Decree was announced by the then head of state, General Yakubu Gowon. It was not the first step, but was a very important one, on a path that would lead throughout the 1970s to one of the most comprehensive mandatory joint-venture programs in Africa, and throughout the Third World. The decree outlined the government’s intention to divide the Nigerian economy into three sections, one reserved entirely for Nigerians (Schedule I), one in which Nigerian equity participation must be at least 40 percent (Schedule II), and a third that would be entirely unaffected...

  10. CHAPTER THREE Fronting, Commercial Consolidation, and Inequality
    (pp. 97-158)

    The implementation of the first indigenization decree was even more controversial than its formulation. Nearly everyone in Nigeria, and a great many people outside the country, had a strong reaction to the program. Alison Ayida, the permanent secretary in the federal Ministry of Finance during the formulation of the decree, suggested in 1973 that the program “may yet turn out to be one of the most important landmarks of the military regime.”¹ A similar view was expressed by a senior official of the Lagos Stock Exchange in 1982, when he described indigenization as “one of the major developments in the...

  11. CHAPTER FOUR The State as Initiator: The Second Indigenization Decree
    (pp. 159-198)

    Nigeria’s second indigenization decree grew rather logically out of the widespread dissatisfaction with the results of the first decree. The fronting, inequality, and regional imbalances associated with the first decree were evident to nearly everyone and created an environment in which new pressures for a revision or extension of the first decree were inevitable sooner or later. The mere existence of this dissatisfaction would not have been sufficient to broaden the indigenization program as extensively or as quickly as happened with the promulgation of the second decree in January of 1977. It took the overthrow of the Go won administration...

  12. CHAPTER FIVE Maintaining Control: Multinational Responses to the Second Decree
    (pp. 199-244)

    At the outset, reactions to the second decree appear to have been very similar to reactions to the first. The measure was once again broadly popular with the Nigerian public and attracted the explicit enmity of the multinational corporations. The multinationals were more numerous and more concerned than they had been after the first decree, since this time every foreign enterprise was forced to sell a major portion (or a majority) of its equity to Nigerian subscribers. Indigenous businessmen made supportive comments about the process, but tended to avoid making specific statements about the revised program. Their reticence in speaking...

  13. CHAPTER SIX The Control of Finance and the Development of Capitalism in Nigeria
    (pp. 245-283)

    Although no real change took place in the effective control (and operations) of the vast majority of the enterprises affected by the second indigenization decree, the program was not entirely without effect at the enterprise level. Some changes did take place in each of the schedules, and especially in a number of the banks. When we begin to evaluate the consequences of the program at higher levels of aggregation (i.e. at the sectoral and national levels), a somewhat different pattern emerges. Some significant changes have taken place at both levels.

    To an extent far greater than before 1975, Nigerians now...

  14. CHAPTER SEVEN The Dialectics of Indigenization: Stagnation and Transformation at Alternative Levels of Analysis
    (pp. 284-299)

    On the basis of the arguments and analyses of Nigerian indigenization presented in Chapters 2 through 6, it is possible to construct a general model of the process. Like any public policy (in any country), the program is not entirely rational or consistent. It is part of a political process, the outgrowth of recurring combinations and recombinations of prominent political-economic actors in the country operating to maximize their conceptions of group, national, and occasionally international welfare. Thus, the successive indigenization decrees were essentially compromises, and each contained contradictions which planted the seeds of future policy initiatives.

    Throughout the process, each...

  15. APPENDIX A Research Methods and Sampling of Companies and Individuals Interviewed
    (pp. 300-312)
  16. APPENDIX B Methodology and Codebook for Data Set Assembled on Incorporated Enterprises in Nigeria
    (pp. 313-321)
  17. APPENDIX C Microeconomic Data Gathered about the Operations of Manufacturing Firms
    (pp. 322-323)
  18. APPENDIX D Chronology of Economic Nationalism in Nigeria
    (pp. 324-326)
    (pp. 327-336)
  20. INDEX
    (pp. 337-344)
  21. Back Matter
    (pp. 345-345)