Neoliberalism And The Transformation Of The Global Economy

Abstract

The paper examined neoliberalism and the transformation of the global economy, with particular emphasis on its implications for developing countries like Nigeria. The study adopts a qualitative research methodology based on secondary data analysis, drawing from scholarly books, journal articles, institutional reports, and policy documents relevant to neoliberal economic reforms and global economic restructuring. The study is anchored on the World-Systems Theory, which explains the structural inequalities in the global economy and the division of the world into core, semiperiphery, and periphery nations, highlighting how neoliberal policies reinforce dependency and unequal development patterns. Findings from the study reveal that neoliberalism has significantly transformed the global economy through trade liberalization, financial globalization, privatization, and deregulation. These transformations have facilitated the expansion of multinational corporations, increased global economic integration, and enhanced capital mobility. However, the study also finds that these developments have produced adverse consequences for developing countries, including increased economic dependency, widening inequality, unemployment, weakened state capacity, and vulnerability to global economic shocks. Furthermore, neoliberal reforms have limited policy autonomy in developing countries, particularly through Structural Adjustment Programmes imposed by international financial institutions. The study concludes that while neoliberalism has contributed to economic integration and growth in some regions, its uneven outcomes have reinforced structural inequalities and hindered sustainable development in many developing countries like Nigeria. The transformation of the global economy under neoliberalism therefore requires balanced policy approaches that integrate market efficiency with social protection and state-led development strategies. Based on these findings, the study recommends that developing countries should strengthen state capacity and regulatory frameworks to manage globalization effectively and protect domestic industries. Additionally, regional economic cooperation and economic diversification should be prioritized to reduce dependency on external markets and promote sustainable development in developing economies.