GLOBALIZATION
THE CONCEPT OF GLOBALIZATION
Globalization is defined as the increasing process of interdependence and interconnectedness between different political, social, and economic components of the world. It is the way in which the world is seen as a global village. Globalization has become a worldwide system because it integrates people across their national borders, making the world operate as a village and therefore allowing free movement of people, goods, capital, and information. The process of globalization is largely facilitated by rapid advancement in technology, growth in trade, and competition.
Historical background of globalization
The world’s interconnectedness and interdependence between its different social, political, and economic components started as far back as during the European mercantile period (1500–1750) and has continued up to today.
During the mercantile period, European merchants crossed their borders and conducted trade in other parts of the world like Africa, Asia, and Latin America. The event of slave trade and the exportation of Africans from their continent to other continents, notably America, linked Africa more and more with the outside world. All these activities were demonstrations of globalization at that time.
Driving forces of globalization
The process of globalization is a result of various factors. Such factors include the following:
1. Advancement in science and technology
The development of science and technology has contributed greatly to the development of global interconnectedness, interactions, and integration of world societies into the global village. The development of science and technology has enabled technologists to design and make machines which simplify human activities. For example, the development of information and communication technology (ICT) has contributed much to the globalization process. The development of science and technology, which marked the initial stage of integration between Europe, America, and other external worlds like Africa, has eventually changed the world into a global village.
2. Advancement in education
Education has contributed greatly to the development of science and technology and the integration of people from distant places. The education process has marked the point of no return towards the integration of different people from different nations and cultures in the world. From the 20th century, revolutionized education marked intensive integration of people in universities, colleges, and international conferences. Through interactions and integration, most people adopted culture from other people, thus beginning cultural liberalization.
3. Social and political liberalization
This process has its roots in liberal democratic principles. Liberals believe that freedom of an individual is the main principle of life that people are supposed to have. The freedom of individual principle has thus fostered the development of globalization in social and political aspects.
Social liberalization is widely spreading due to the advancement of information and communication technologies like TV, e-mail, cellular phones, and internet technology.
Politically, the integration of politics on a global scale has fostered the development of globalization. Traditionally, politics have been undertaken within national political systems, but due to globalization, national governments have become ultimately responsible for maintaining the security and economic welfare of their citizens as well as the protection of human rights.
Aspects of globalization
Globalization as an economic, political, and social phenomenon is associated with the following major aspects:
Information technology and communication
Globalization is characterized by the advancement of information and communication technology. This sector has expanded drastically within the last few years, especially by the last quarter of the twentieth century. In that period, people witnessed global distribution of media images through computer screens, radio, newspapers, televisions, and mobile phones. Development of information and communication technology went together with the rise of the biggest information companies such as Microsoft, Intel, and Cisco. The rise of these companies indicates quick advancement of technology.
Modern communication technologies brought by globalization
Fig. 5. Cellular phone
Movement of people
There have been increasing movements of people from one country to another. These people include tourists, immigrants, refugees, business travelers, scholars, and diplomats, who move from one country or continent to another. Most migration occurs between developing countries, but there is also a flow of migrants to economically advanced countries from poor countries, hence making the world interconnected.
Spread of ideas and ideology
Spread of knowledge, ideas, information, and ideologies have been integral aspects of globalization. Direct foreign investment brings physical capital, technical, managerial, and marketing skills as well as global economic policies in the production process. The spread of these technical know-how goes hand in hand with the diffusion of political ideologies, for instance, multiparty democracy which has become worldwide.
Free market economy
Globalization has brought about the international political economy through international financial institution policies and international trade. Free market (neoliberalism) has become a dominant economic ideology of the world. The main emphasis of free market economy (economic liberalism) is to minimize the direct involvement of government in economic production.
Finance
There is also a global flow of money often driven by interconnected currency, stock exchanges, and commodity markets. The flow of money is also facilitated by international financial institutions such as IMF and the World Bank, assisted by multilateral banks which have branches almost in every part of the world, thus allowing smooth money transactions all over the world.
The rise of intellectual property
The rise of intellectual properties or items in this case includes patents, copyrights of movies, computer software, compact discs, advertisements, and financial services.
Privatization
Refers to the policy of transferring assets and activities of public sectors to the private sectors or individuals. Privatization is one of the Structural Adjustment Program results which has been emphasized by the International Monetary Fund (IMF), World Bank (WB), and donors from abroad, particularly western countries like Britain, France, USA, Denmark, and Germany.
The origin of privatization policy
The ongoing economic crisis of the developing countries and their growing dependence syndrome are some of the factors that have contributed to the introduction of privatization.
However, the policy started in the 1980s and gained significant public notice at the global level during the same decade when Britain’s Prime Minister Margaret Thatcher took deliberate and extra efforts to advocate the necessity of shifting public or government activities to private actors so as to increase production and efficiency in the economic sectors and restructure the prevailing conditions in countries like Tanzania.
Under the conditional ties of the World Bank, governments of the developing countries began experimenting with various forms of market reforms including selling most of the public assets to private sectors, deregulating, and contracting their public services to private providers.
Under this situation, therefore, privatization gained widespread interest and became an acceptable policy to government policymakers, service providers as well as public planners.
The objectives of privatization
- To create a more market-oriented economy where those privatized firms will participate in the stock market.
- To improve the economy through increased productivity and efficiency of the privatized parastatals.
- To secure and enhance access to foreign markets, capital, and technology through attracting managerial and technological resources from the private sector.
- To broaden share and ownership through equal provision of public services to all levels.
- To reduce the overwhelming and challenging increase of public debt.
- To promote the spirit of self-reliance.
Measures taken to enhance privatization
- To improve the operational efficiency of enterprises and their contribution to the national economy by selling them to private investors.
- To reduce the burden of parastatal enterprises’ dependence on the government budget by selling them to private investors.
- To expand the role of the private sector in the economy and permit the government to concentrate on the provision of social services like health, education, and infrastructure.
- To encourage wider participation in the ownership of private companies and management of business by selling and letting private investors engage in production.
Advantages of privatization
- It has increased flexibility due to reduction of bureaucratic complexity and procedures which have in turn led to an improvement of the national economy.
- It has reduced costs resulting from improving and increasing efficiency in production through competitive processes.
- Privatization has led to the improvement and rise of competition among existing organizations.
- It has met demands beyond the current government capacity. The private sector encourages competition which increases the level of productivity and efficiency.
- Privatization provides clients with more choices where they can be more satisfied in terms of contracts, salaries, and working conditions.
Disadvantages of privatization
- Privatization has led to an increase in unemployment rate among indigenous people. This has been the case because most of the private investors are people from outside. When any public enterprise is privatized, it is accompanied by massive redundancy of the previously local working personnel and employment of new workers from the investors’ home country.
- It has led to the fall in the agricultural sector due to the withdrawal of the government from providing agricultural incentives to peasants/farmers.
- It has increased temptation to reduce quality of goods and services by some dishonest investors in order to reduce costs and maximize profit.
- Privatization has increased the rate of moral erosion due to its policy of free trade. Private firms such as those dealing with pornography and related goods like VCD/DVD have greatly affected the younger generation.
- Privatization policy has increased the rate of poverty among people, especially those living in rural areas, due to the decline in agricultural production. Rural people depend on agricultural production for better quality of life. But due to privatization, their standards of living have been deteriorating because of the falling prices of their agricultural produce.
Trade liberalization
Trade liberalization refers to the reduction of tariffs and trade barriers to permit more foreign competition and foreign investment in the economy. It is a term which describes complete or partial elimination and reduction of trade barriers such as quotas and tariffs. Trade liberalization sometimes refers to free trade. Free trade is the unrestricted flow of goods and services between countries and is a name given to economic policies and parties supporting increases in such trade. Tanzania introduced trade liberalization from the mid-1980s, following the IMF and World Bank conditional ties for giving aid to needy nations.
Democratization process
Globalization is associated with global political reforms under the process called democratization. The democratization process is based on the following basic principles:
Free and fair political competition
There is a need for peaceful, free, and fair competition between different political parties that want to control the government. In order to maintain such competition, there ought to be the following requirements:
- Permanent party organization at the local and national levels. No opposition party can exist without continuous and permanent struggle against the ruling party. The goals of these parties should not be linked with personal interests of particular party leaders.
- Continuous contact of leaders at all levels of a given political party.
- Determination of party leaders to hold political offices.
- Determination of the party to gain popular acceptance for its programs.
- Constant search for more members.
Such requirements can exist only in a multiparty system. Therefore, a mono-party system cannot be democratic. It is a rejection of democracy and leads to dictatorship.
Tolerance
This is the ability to bear with something unpleasant or annoying. Tanzania is composed of different races, tribes, and religious groups. In this society, Africans form the majority compared with other racial groups. As the rights of small groups of persons do not depend on the number of people in the group, the majority group has a duty to respect convictions and ways of life of the minorities.
Citizen participation
Participation is the major role of citizens in democracy. It is both their right and duty. Citizenship participation includes standing for elections, debating issues, voting in elections, gathering for community meetings, joining parties and organizations, protesting, and paying taxes. All these activities strengthen a democracy.
Equality
In democracy, all people are equal. This means people are valued equally. They have equal opportunities. No one is discriminated against. Moreover, groups are free to maintain their different cultures, personalities, languages, and beliefs. When the majority deny rights to or destroy their opposition, they also destroy democracy.
Accountability
In democracy, elected and appointed officials ought to be accountable to the people. They must make decisions and perform their duties according to the wishes of the people, not for their own interests.
Smooth transfer of power
In democracy, there is a well-established and transparent system of transferring power from one political party to another.
Economic freedom
In democracy, people must have economic freedom. This means that the government allows people to own private property and businesses. People can choose work and join trade unions. There should be free markets whereby the state should not control the economy.
Control of power abuse
In democracy, elected and public officials are prevented from misusing their powers. The most common form of power misuse is corruption. This occurs when officials use public funds for their own benefit, accept bribes in order to render services, or exercise power illegally. Protection against abuse of power has been achieved through various methods. For example, having independent courts with power to take action against corrupt officials; allowing for citizen participation in elections; and checking police abuse of power.
Incorporation (inclusion) of a bill of rights in the constitution
A bill of rights is a list of rights and freedoms guaranteed to all citizens in a country. Many democratic countries incorporate a bill of rights in the constitution. In those countries, the courts have the power to enforce these rights. A bill of rights limits the power of government and imposes obligations on individuals and organizations.
The rule of law
In a democracy, no one is above the law; not even an elected president. This is called the rule of law, meaning everyone must obey the law. If they violate it, they must be held accountable. Similarly, the law must be equal, fair, and consistently enforced.
Sovereignty
Only a sovereign nation can practice democracy. Sovereignty means the freedom to decide and execute domestic and foreign policies without interference from another country. Therefore, a neo-colony cannot exercise democracy. Neo-colony means the control of a weak country by a more powerful one. The subject country loses control of its destiny. The master nation controls both domestic and foreign policies of the neo-colony. In other words, the weak country loses part of its sovereignty. It loses its power and freedom to make its own decisions. It loses the ability to practice democracy too.
By considering the above, any country in the world is considered to be democratic if it abides by all or most of the stated principles.
Effect of globalization in Tanzania
Effects of globalization in Tanzania can be political, economic, social, or cultural. The effects are both positive and negative as analyzed below.
Economic effects
From an economic point of view, globalization as a phenomenon has both positive and negative effects on developing countries like Tanzania.
Positive effects
Effective utilization of natural resources
Through trade liberalization and free market economy, globalization has stimulated much utilization of natural resources. There are many companies investing in natural resources such as mining at Mwadui, Bulyankulu, Geita, and Nzega. Presence of these foreign companies enables Tanzania to utilize her resources for the development of her people. This has been possible due to the technology brought to Tanzania by the investing foreign companies.
Increase free trade
Globalization has made production and transportation of goods easier and faster than ever before. Therefore, it enables Tanzania to get different varieties of goods of various quality and quantity from any corner of the world. These goods include electronic devices (computers, mobile phones, etc.), food, medicine, automobiles, and chemicals.
Opens doors for employment opportunities
In some instances, globalization creates employment opportunities for many people. For example, foreign companies like Vodacom, Celtel (currently Airtel), and Tigo have created thousands of jobs for Tanzanians.
It helps to raise national income.
Through privatization of public sectors and investment by foreign investors, the national income has increased through taxes paid to the government.
Improvement of quality of goods and services
This has been due to the competition created by foreign investors who use new technology from outside.
Negative effects
For developing countries like Tanzania, free trade causes the decline and underdevelopment of the industrial sector and local technology. The decline of the industrial sector and local technology is caused by the influx of goods from outside whose prices are low, yet with higher quality than local goods.
Presence of multinational companies in Tanzania, if not well controlled, may acquire super profits through exploiting citizens and leaving them poor. Some companies tend to exploit citizens by paying low salaries to local employees compared to foreigners. Also, some companies evade paying tax to the government, hence denying it revenue.
Globalization sometimes creates unemployment
With the growth of technology, machines have greatly replaced human labor. For example, the introduction of electronic devices like computer technology and its programs have led to eviction of many unskilled Tanzanians from their jobs.
It leads to unequal exchange
Through privatization and capital mobility, Northern countries (Europe, North America) undermine Southern countries (Africa, Asia, South America) through unequal exchange. Most potential natural resources in developing countries are owned by companies from developed countries, hence undermining local communities.
Increase in people’s expenditure
Globalization has made Tanzanians spend much of their resources on recreation activities instead of investing in productive programs. As an adaptation from the West, many Tanzanians spend their money on weddings, buying luxurious items such as cars, expensive clothes, etc.
POLITICAL EFFECT OF GLOBALIZATION
Positive effects
Globalization has brought important changes in the content of international law. Contemporary states like Tanzania make laws which comply with international laws and therefore abide by them in such a way that they can no longer mistreat their citizens as they wish. Issues like human rights and social justice are part of Tanzania’s constitution, key laws, and statutes.
Under globalization, Tanzania has integrated itself into global politics through international agencies and organizations. New forms of multilateral and global politics have been established involving various governments including the government of Tanzania.
Globalization has made it necessary for poor countries like Tanzania to form strong political organizations as a way of minimizing its negative impacts. The formation of the African Union (AU) and the continuing process of formation of the East African Federation, of which Tanzania is a member, are consequences of globalization.
Globalization has sped up the democratic process in Tanzania. In order to promote democracy, Tanzania is adopting global democratic principles such as rule of law, transparency, multiparty system, accountability, and is trying to implement them.
Negative effects
There has been centralization of political power in the biggest capitalist nations. This situation has created an interstate condition whereby the political sovereignty of poor countries like Tanzania has been reduced in such a way that they are made more accountable to bigger countries like the USA and UK than to their citizens.
Tanzania has been affected by global political disorders and terrorism. The bombing of the USA embassy in Dar es Salaam in 1998 is a product of global political conflict which involved the USA and Al-Qaeda terrorists who are against USA imperialism.
Globalization has undermined the efforts made by poor countries like Tanzania to form strong political organizations such as the African Union or East African Community due to the spread of spheres of interest to the regions by the biggest powers such as America and Western Europe. As a result, countries like Tanzania have become more interested in cooperating with such capitalist countries rather than their neighboring countries like Malawi, Mozambique, and Zambia, wishing to get more profit.
In some cases, globalization with its related political agendas such as multipartism, transparency, accountability, rule of law, and others create chaos in the country. There are some politicians who have manipulated these agendas of democracy, hence threatening peace and security which have existed since independence.
Erosion of national control over governance
Globalization, which has been facilitated by policies such as those of the World Bank, the IMF, and the World Trade Organization (WTO), which insist on Structural Adjustment Programs (SAPs), is closely tied to free trade and expansion of commerce through the deregulation of markets. These policies are top-down and authoritative, so that developing countries like Tanzania are being told what to do and what not to do. Due to these policies, the economic structures and orientations of developing countries have been greatly influenced.
Socio-cultural effects of globalization
Positive effects
Globalization has made diffusion of beliefs and values an international concern. Each community is struggling to achieve those world cultural standards in respect of human rights and better living standards.
Through development of information and communication technology like internet, fax machines, satellites, and cable TV, globalization has managed to integrate all cultural practices in the world and created a common cultural vision for the present and future generations. Those cultural practices include sports, games, music, etc.
Globalization has revealed some bad cultural practices which have been performed by some communities. For instance, the issue of female genital mutilation which is now globally condemned with great emphasis by different international agencies.
The expansion of the great world religious institutions, particularly in Africa and Asia, has transformed their socio-cultural values into modern and acceptable ones. In Tanzania, for example, the spread of Christianity and Islam almost in every part of the country has played a significant role in the eradication of unacceptable cultural practices such as genital mutilation, forced marriages, harassment of women, etc. Globalization has improved provision of social services. Social services such as education, healthcare, and communication have been improved. For example, education has been improved due to the presence of distance learning through the use of internet, video, etc.
Negative effects on culture
Globalization has swept away cultural boundaries which existed before by the use of advanced information and communication technology such as TVs, radio, internet, and magazines.
This situation has led to the destruction of inferior cultures of Africans including Tanzania. Most Tanzanians, particularly the youth, have been influenced by Western ways of life.
Cultural globalization ties have been responsible for increased immoral behavior such as violence, prostitution, drug abuse, homosexuality, and other related behaviors which increase as one becomes more integrated into the global system.
African native languages including Kiswahili have been undermined by foreign languages such as English, French, and German. English, for example, has become a global language such that it is viewed by many Tanzanians who can speak it as a sign of civilization. By so doing, our local languages including Kiswahili are being abandoned or left to be used by less educated people who also wish they knew English.
Spread of religious fundamentalism
Globalization of communication networks has facilitated the easy spread of various religions across the world and strengthening of solidarity of the sects worldwide. Through cable television, believers in Tanzania are accessed by preachers from Korea, Japan, USA, Germany, etc.
This worldwide spread of fundamentalism has not only increased social tension and insecurity but also had adverse economic effects as now the solutions to social and economic problems are sought in prayer rather than hard work.
In Tanzania, for example, some families have been torn apart by Christian fundamentalists, who have cut links with their parents or spouses because they are “saved” and therefore it is not proper for them to associate with the “unsaved.” Child care has been affected because some parents spend too much time praying, including overnight wakes.
Also, some youth have dropped out of school and opted for employment in the name of evangelism and the belief that once you are saved everything in life will work smoothly.
The spread of materialist lifestyle attitudes
Materialist lifestyle attitudes consider consumption as the path to prosperity. Today, if someone has enough material wealth, he/she is considered as nothing. With this loss of vision, the very foundation on which a people‘s culture is constructed is severely shaken. The foundation on which to construct behavioral patterns, ideas, beliefs, values, and attitudes on which people’s economic, social, and political character can be based no longer exists. In traditional society, hard work was one of the key factors for a good leader or citizen, but today the one who is rich, even if he is a thief, can be highly respected and considered the smart guy.
Some effects of globalization may be experienced in the assessment of pre-existing African traditional songs and ceremonies which have now been replaced by new ones having Western styles and contents. Examples of such things include kitchen parties and beauty pageants.
Impacts of globalization on environment
Positive effects
It has enabled various countries to solve global environmental problems together.
Negative effects
Globalization causes pollution due to the constant emission of toxic gases from heavy industries of the developed countries.
Fig. 9 industries produce smoke
High exploitation of natural resources due to advancement in science and technology has led to serious environmental destruction such as deforestation, pollution of air, water, and land.
Hundreds of thousands of hectares of forests are destroyed through mining activities, construction of infrastructures like roads and railways, establishment of settlements (houses), preparation of fuel like charcoal and firewood, etc.
Globalization has increased global warming due to gradual increase in temperature caused by emission of gases from industries and automobiles. These gases prevent the escape of heat from the earth’s surface to the atmosphere.
Third world countries including Tanzania have become dumping places for outdated material from the first world countries.
Challenges of globalization in Tanzania
The following are challenges of globalization in Tanzania.
Low level of use of communication systems. In Tanzania, the use of global communication systems, such as internet, communication satellites, and telephones, is still low and underdeveloped. Most communication systems are greatly confined to urban areas while the rural population, which is bigger, is still unconnected with the world communication system. This problem of uneven distribution of communication systems makes the rural population become isolated (marginalized) from the global village.
Another challenge which Tanzania faces is low production. Tanzania’s economic sectors such as agriculture, industry, mining, and fishing are not producing enough goods for export. The increase in international trade as one of the fundamental characteristics of globalization will make Tanzania a buyer of foreign goods more than what is sold.
The low level of education in Tanzania is posing a big challenge under this globalized world. The level of education among Tanzanians is very low compared to other countries in the world.
This level of education fails to meet intellectual demands of globalization such as technological skills, managerial skills, entrepreneurial skills, marketing skills, etc. Thus Tanzania will not be able to compete in employment opportunities with other countries.
Tanzania faces a problem of low savings and investment. Low savings, caused by low income, may prolong the vicious cycle of poverty among Tanzanians.
Tanzania should create policies which focus on its own problems and lay strategies to reduce poverty by focusing on provision of social services such as healthcare, education, and security to her citizens.
The government of Tanzania should prepare a conducive environment for investors so as to stabilize the macro economy. Attractions to investors must go together with conditions which will make Tanzanians benefit from foreign investments rather than being mere watchers.
Education should be given significant priority and made compulsory to all people. The Tanzanian government should make sure that most Tanzanians get quality education which will enable them to cope with challenges brought by globalization.
There should be proper utilization of both natural and human resources so as to boost economic growth. Tanzania has been experiencing a shortage of personnel like doctors from Tanzania who are working abroad. This is improper utilization of human resources.
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