The Benefits and Challenges of the Incorporation of Traditional African Political-Economy into the Western Capitalist Economic System

Abstract

This manifestation promoted economic dichotomy as well as mutual benefits between the states of the developed West and states of Africa. Underdevelopment which is now a common place in Africa can also traced to export of western capitalism into the continent. It is in context of this development that this study examined the benefits and challenges of the incorporation of traditional African economy into the capitalist-economy system. Historical method of data collection was adopted to elicit data and information mainly from secondary sources, such as books, journal, dailies, periodicals, internet materials, among others. The study adopted the theories of development and underdevelopment (modernisation and dependency theories) to analyse the reasons for the stratification in the global political-economic system which positioned Africa at the negatives and receiving end of European exploits. The study finds out among others, that the intensification of westernization of global economic diplomacy and integration of Africa economy into the western capitalist economic system positioned Africa into a polygamous and reciprocal relationship with the European powers. Also, the involvement of the new entrants, the United States of America (USA) and China in exploring Africa resources constitute a problem on the continent. The study considered the seemingly unending inequalities in trade relations between the Western capitalist states and the developing countries of the Third World, especially Africa, as the reason for the underdevelopment in the states of Africa. The study suggests that the states in Africa should strengthen the already existing regional and sub-regional economic integrations in order to reposition their economies. There is also the need to renegotiate the place of African countries in the existing multilateral Organizations and institutions in which they are members, such as the World Trade Organisation (W.T.O), United Nations (UN), and World Bank and the International Monetary Fund (IMF) to fast track African development.