IT is no longer a secret that Europe is currently going through some difficult times as a result of the Eurozone debt crisis. For some people in Nigeria, the debt crisis in Europe is far remote in its consequences to the nations economy for them to bat an eyelid. For such people, the debt crisis is the white mans headache. Yes, I agree only to the extent that while it is the white mans headache, it is also our headache as an import-dependent nation. For in the main, the world today is a global village. The term, global village, which was coined by Marshall McLuhan, describes how the globe has been contracted into a village by electric technology and the instantaneous movement of information from every quarter to every point at the same time. In bringing all social and political functions together in a sudden implosion, electric speed heightened human awareness of responsibility to an intense degree.True, the imperatives and dynamics of economic globalisation make it quite compelling for everyone to be concerned with what is happening even in the remotest parts of the globe. Therefore, technology fosters the idea of a conglomerate yet unified global community. Due to the enhanced speed of communication online and the ability of people to read about, spread, and react to global news very rapidly, McLuhan says this forces us to become more involved with one another from countries around the world and be more aware of our global responsibilities. This is why developed economies such as the US and UK are concerned about the principles of democratic governance, transparency and accountability in Africa and other developing nations.Nigeria is an import dependent nation. Indeed, the country is one of the trading partners of Europe. That explains the numerous Economic Partnership Agreements, ranging from the First Yaound Convention (1963-1969); The Second Yaound Convention (1969-1975) - in French only ; The Lom I Convention (1975 - 1980) ; The Lom II Convention (in French) (1980-1985); The Lom III Convention (1985-1990); The Lom IV Convention - Part 1 (1990-1995); The Lom IV Convention - Part 2 (1995-2000); to The Cotonou Agreement (2000-2020) which Europe has entered into with African, Caribbean and Pacific countries, otherwise referred to as the ACP countries.By the way, EPAs are free trade agreements which eliminate tariffs, import quotas, and preferences on most (if not all) goods and services traded between the members. If people are also free to move between the countries, in addition to FTA, it would also be considered an Open Border. It can be considered the second stage of economic integration. Countries choose this kind of economic integration if their economic structures are complementary. In any case, a curious and inquisitive mind may ask: What triggered the European Sovereign Debt Crisis' What are its implications to the economies of developing nations like Nigeria' How can Nigeria protect her economy from the adverse consequences of the Eurozone debt crisis'To begin with, the eurozone officially called the euro area, is an economic and monetary union of seventeen European Union member states that have adopted the euro () as their common currency and sole legal tender. The eurozone currently consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain. Most other EU states are obliged to join once they meet the criteria to do so. Interestingly, no state has left and there are no provisions to do so or to be expelled.Although the European Sovereign Debt Crisis started in 2009, it was recently precipitated by the Greek Sovereign Debt. To the layman, a sovereign default is a failure by the government of a sovereign state to pay back its debt in full. Indeed, Greeces problems have been at the heart of the European debt crisis.Notwithstanding that the EU leaders meeting in Brussels(Belgium) on Thursday October 27, 2011 hammered out a long-awaited deal to bolster support for Greece by committing Eurozone lenders to agree to write off 50 per cent of Greeks bond debt while at the same time raising the Eurozone bailout to 1tr, it is certain that the two halves of the Eurozone are locked in a broken marriage.For import-dependent nations like Nigeria, the Eurozone debt crisis has far-reaching implications and consequences. First, import-dependent nations are exposed to economic vulnerability due to external dependence. There is no escape from the reality that Nigerias economic prosperity is much dependent on external economic circumstances, notably the price of crude oil in the international market. This is not a recent development with globalisation as some contend. It is a phenomenon that developed with colonialism following our reliance on export of agriculture produce. The country was turned into an import-export economy with high trade dependence. The development can cause disequilibrium in Nigerias balance of payment and trade since the volume of imports is likely to increase while at the same time exports will shrink. Furthermore, it would be more expensive for Nigeria to pay back her foreign debts.The big question is how can Nigeria protect herself from the adverse consequences of the debt crisis in Europe' First and foremost, Nigerias economic management team should take steps now to slash the exposure of the countrys economy to the debt crisis. One such measure is for our policy makers to hold crisis management strategy meetings together.Second, the Central Bank of Nigeria, as a matter of top priority, should put together a Rescue Leverage Mechanism by designing an interim/fall-back bailout measures to stem any shock waves arising from the debt crisis.Third, and this is important, the economic management team should restructure Nigerias public debt by ensuring that there is orderly default since there is also a corresponding crisis of confidence in European banks.Fourth, since there is currency mismatch between the Naira and Euro, further devaluation of the Naira should be halted for now or else Nigerias foreign debt may become prohibitively expensive to pay back, particularly, with respect to the countrys foreign-denominated bonds.Let not our policy makers think that the Nigerian economy is shielded from the shocks and after-shocks of the European Sovereign debt crisis. Let me urge our policy makers to take proactive measures to generate the capacity to overcome the grinding combination of poverty, exclusion, lack of opportunity and choking socio-economic space that has held so many Nigerians back from reaching their full potential.Let those who bear rule over us choose this key moment of our history to strengthen our institutional capacities, not committed to preserving their own prerogatives but to meeting needs for which the institutions were created; namely, serving the interests of the Nigerian people.- Okorie, a lawyer, wrote in from Straddle Partners, 199, Igbosere Road, Lagos via ikeokorie@yahoo.com. Tel. 08120353700
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