Globalization in Africa - Assignment Example

Globalization in Africa Introduction The process of globalization is rather challenging. Its scope is incredible and the modern countries have the opportunity to develop their potential, economic welfare and social well-being under conditions of globalization. African countries are the main targets for potential globalization processes. They open their territories and provide other European countries with the opportunities of exports and imports. Therefore, these countries contribute much into developments of the global economy. The globalized economy has not exerted much influence on the development of the African countries, but it happened because of the countries’ inability to readily accept potential changes and opportunities of their economic, political and social development. There are three main preventive factors, which halt processes of globalization in Africa. These are: a continent’s remoteness, little foreign investments, and a small scope of exported products. There is an evident potential of Africa in different fields of its potential development. This continent is mainly focused on preservation of the current positions it has, but it does not take much from the potential global opportunities offered in the processes of globalization. There are different African countries, which need help from the global community. On the one hand, these countries provide the African continent with a little help, but on the other hand, they are able to intensify and trigger processes of potential development in different spheres of activity. It is on behalf of the African countries to be much focused on their own prospects of development. The massive aid is not the only one option for the African countries’ development. There is a need to help the African countries on a deeper level. Challenges of Globalization to Africa There are so-called “high-performers” among African countries. These are: Botswana and Mauritius (and possibly Namibia) and the microstate of Seychelles as well as Ghana and Uganda, countries that have substantial population number and which have implemented innovative reform programs within the last 20 years. Mauritius obtains essential foreign investors’ help and this country is able to increase interests among potential investors by its performance in clothes and other light exports (Keller, 2005). The major advantage of Botswana is diamond industry. Uganda and Ghana underline essential levels of growth within the last 40 years. Therefore, South Africa should be considered as a distinct sector further on. This sector is on the verge of globalization. There are many opportunities for development and it is of crucial importance to focus on the real chances of development. In accordance with the typical African template of development the main stake is put on minerals mining. There are other African countries, which are on the way of their “upward development”. Their governments are constantly improving and they are looking forward to the opportunities of potential development. Mozambique perfectly illustrates the perspective of the upward development, readiness for perspectives and ability of taking advantages from the processes of globalization. Benin, Tanzania, Madagascar are countries with the similar development trajectories. There are many poorly-developing countries, such as Nigeria, and Sudan, Democratic Republic of the Congo, Ethiopia (Keller, 2005). There are large populations in those countries, but people have a very low income. These countries have excellent resources and potential perspectives of development. They are also focused on growth, but are not fully entrusted in the policies of a potential global development. There are other countries in Africa, which poorly perform and in accordance with the international standards, these countries experience the real per capita growth that equals to zero. There is a slow downfall of their economies. Other African countries are challenged with environmental issues and challenges, which prevent them from a potential growth. These are Mauritania, Chad, Burkina Faso, Mali, and Niger (Schneider 2003, p. 390). Ecological constraints disable the African countries from a proper development. The African countries have a perfect chance of a sound development. It is relevant to outline the basic trajectories of development and the main directions of opportunities creation. The most challenging African countries are Zimbabwe, Central African Republic, Guinea, Côte d’Ivoire, Liberia, Sierra Leone, and Somalia. There is no dynamic development at the governmental level and they should be looking for avoidance of institutional collapse and start to set up the conditions for a potential development. There are different developments in the African countries, which are positioned as oil producing countries. These countries are Angola, Cape Verde, Equatorial Guinea, and Gabon. The main challenges in these countries are underdeveloped governance rates. It is underlined that “the dramatic cash inflows produced by oil assets usually inhibits governance improvements” (Keller 2005, p. 48). Therefore, there are different categories of African countries and different growth prospects. The global economy is a perfect opportunity for development of the African countries. Globalization can be also considered as a threatening opportunity for the poor countries. It is an open way to guns, drugs etc (Dzodzi & Golah, 2010). In accordance with the modern researches and studies, a dozen African countries of varying sizes may feel a great relief in the process of globalization in the future. Their domestic policies are on the way to development and there is a need to advance their governmental and domestic policies in order to readily meet potential globalization changes. The general problems of globalization The first challenge is location of the African country. There is a great difficulty for any of the African countries to be included in the dynamic regional market. The main emphasis is made on the fact that the majority of African countries do not have essential market power. Another challenge occurs: “countries that seek to export more will have to operate in far-way markets where they have no immediate advantages in languages or personal contact and where trading networks must first be established” (Keller 2007, p. 47). There is a need to develop African countries’ “brand”. The whole continent is associated with decline, hardships and instability. Though there is an evident heterogeneity of the African continent, it is rather hard to determine potential sectors for investments. A place of destination is the challenging question for the potential investors. Even in case of experienced complex governmental reforms, the African countries cannot turn into potential targets for the investors. There is a necessity for the successful African countries to promote an image of a successful country for potential investments. The Southern African region has different opportunities for a significant development: Botswana, Mozambique, and South Africa. There are also countries, which can bring in too many challenges. These are: Nigeria and DRC. There are also countries of a significant and dynamic development, such as Ethiopia. There is the organization of the New Partnership for Africa’s Development (Keller 2007, p. 47). Currently, the African countries are successful in crops and minerals production. African countries should have an opportunity to develop relative benefits and advantages for assistance of labor-intensive manufacturing. The majority of the African countries do not have a large number of people who are able to work and get low salaries. Nevertheless, there is a slowly developing manufacturing sector in the country. There is a great challenge of electricity in the process of manufacturing and in spite of this fact the African countries are manufacturing to the greatest extent, they have to deal with their manufacturing challenges. There is an inexhaustible potential of low-cost labor supply in China and India, for example. Moreover, the investors may be afraid of potential hazards caused in the result of the huge level of crimes in Africa or the absence of reliable security in the country. In accordance with the recent developments: “Zimbabwe could threaten its relatively successful Southern African neighbors, Ghana could be destabilized by Nigeria, and the political vacuum in the DRC could potentially destabilize Uganda” (Bond 2004, p. 23). As far as it can be seen, there is an option for every African country to develop its own insulating ways. Political and economic challenges of globalization In order to promote a market-growth among different African countries, it is relevant to implement political, social and economic changes and developments. For example, in Botswana and South Africa, political changes and developments were introduced. There is an essential option for investments introduction in the African continent (Omotola 2005, p. 454). Nevertheless, it is relevant to differ between different visions and approaches to globalization: “The ahistorical, simplistic view of globalization as a steady, progressive, beneficent integration of the global economy is both inaccurate and dangerous. Africa might indeed benefit from globalization, if that actually meant greater flows of foreign investment and greater exports of a wider range of processed and manufactured African-produced goods” (Keller 2007, p. 47).  As far as it can be seen, political issues of Africa globalization are of crucial importance. A favorable political background is a perfect option for the country’s development in different spheres. Social, economic and political concerns should be the dominant factors for the stakeholders in the process of their globalization developments in Africa. The international community should take into account the fact that there is a need to promote sovereignty on economic and financial basis. There is a need for development of appropriate models and strategies, sustaining the economy of Africa. For example, the International Monetary Fund, the World Bank and the World Trade Organization should develop their policies and strategies in accordance with the special needs and concerns of the African continent. There is an option to develop democratic government in the country and apply democratic rules selectively and subjectively. In the process of economic development the main emphasis should be made on nature, ownership, management, location, utilization and distribution of resources. These are the issues of the central concern for any political economy and they create an efficient background for the nature and type of economic and political development. In accordance with the abovementioned facts, there is a direct dependence between capitalism and liberal democracy and it is relevant to focus on the occurrence of an indigenous entrepreneurial class, which is able to develop international economies. Failed globalization It is possible to provide the example of Botswana participation in the globalization process. This country has been always known for its diamond manufacturing and exports. Fluctuations of diamond prices are intimidation factors for the development of the African continent and its participation in the global economy. Nearly 50 percent of Botswana's GDP depends on mining and 80 percent depends on diamond exports. The country has been working in the name of global linkages fostering and it managed to establish valued currency, political and social stability, low wages, no unions, tax holidays, subsidized financing and training, and good education and infrastructure (Bond 2003). This experience was borrowed from the South Korea practices and there was a clear intention for the country to foster export and employ 400 Batswana workers. Nevertheless, Botswana failed to promote manufacturing exports via FDI. The majority of the companies of the country were unable to work in compliance with the employment conditions, investment and export demands. Such a tendency is often referred to as the process of “unregulated globalization”. Moreover, Botswana had an opportunity to employ its people in Hyundai and Volvo as assemblers. The corruption of the foreign managers prevented a proper way of required operations. This country has proven its unbreakable ability to depend on diamonds export. It is evident that a bitter experience of Botswana as a country, which failed to meet requirements of globalization and had a chance of development under conditions of globalization witnesses the necessity to promote radical changes at the governmental, political, social and economic level of the African region. Botswana is known for efficient, clear, business-oriented government; developed democracy; a proper education and infrastructure; and outstanding access to the large South African market (Bond 2004, p. 32). There are no other countries, which have similar to Botswana’s characteristics of development. Moreover, there is an intense work focused on promotion and intensification of reliable political, democratic and social principles of development in Botswana. Recommendations and conclusions Thus, the issues of location and development directions diversification on the African continent are of crucial importance in the process of global development. In spite of numerous attempts of foreign countries to get involved in economic, social and political relations with Africa, these attempts failed. There is an option to shift the accents of globalization processes integration and make them more focused on “embedded, decentralized, and broadly based trading networks that bypassed current trade patterns dominated by transnational oligopolies and corrupt African elites” (Keller 2005, p. 50). There is a lack of democratization processes in Africa. This fact is often explained by the instable relations between external and domestic forces. Other reasons can be found in abilities of state managers to privatize structures of public institutions for personal gain. There is a need to promote centrality of leadership, human rights protection, civil society development and efficient government. The national image of Africa is full of internal contrasts: between the educated and a less educated population. The African leaders have obtained the images of cruel merchants of death, dependence on their power, the growing rates of poverty resources diversification and inability to meet the challenges of globalization. The world’s community is working at development of a favorable image of Africa, the necessity to homogenize this country. There is no way of similar development for different African countries. It should be noted that the country is unable to develop without external assistance of other countries. Unfortunately, only a small number of African countries are able to follow the opportunities provided in terms of globalization processes. For the international community it should be evident that additional funding and direct investments in Africa is not efficient until the homogeneity of social and political background in the country is reached. Africa is a potential international partner in the international market, which has the abundance of natural resources, a strong workforce, produces diamonds et cetera. Still, the routes to this country are unfavorable for efficient international relations development. That is why one of the main concerns for the world’s community is to improve transport links to Africa in order to foster the processes of globalization in this county and enable it to become a sound partner globally. In order to consider potential prospects of Africa’s developments in the process of globalization, it is of crucial importance to position this country as a heterogeneous background for international partnership with its specific traditions, norms, development trajectories and other national characteristics, which should be taken by the international policies’ developers into account. Works cited Bond, Patrick. South Africa and Global Apartheid: Continental and International Policies and Politics. Uppsala: Nordic African Institute, 2004. Questia. Web. 24 Mar. 2012. Keller, Edmond J. "Africa in Transition: Facing the Challenges of Globalization." Harvard International Review 29.2 (2007): 46+. Questia. Web. 24 Mar. 2012. Omotola, J. Shola. "John Makum Mbaku and Suresh Chandra Saxena (Eds), Africa at the Crossroads: Between Regionalism and Globalization." Africa 75.3 (2005): 450+.Questia. Web. 24 Mar. 2012. Schneider, Geoffrey E. "Globalization and the Poorest of the Poor: Global Integration and the Development Process in Sub-Saharan Africa." Journal of Economic Issues37.2 (2003): 389+. Questia. Web. 24 Mar. 2012. Tsikata, Dzodzi, and Pamela Golah, eds. Land Tenure, Gender and Globalisation: Research and Analysis from Africa, Asia and Latin America. Ottawa: International Development Research Centre, 2010. Questia. Web. 24 Mar. 2012. Read More