GLOBALIZATION THROUGH MEANS OF EXPOITATION

Globalization Through Means Of Expoitation In African Nations

Globalization Through Means Of Expoitation In African Nations

Introduction

Globalization is the process of world populations becoming interconnected and interdependent. Globalization creates four major transformations. First, globalization stretches social, political, and economic activities across the frontiers of communities, nations, regions, and continents. Second, globalization intensifies the magnitude of the flows and networks of trade, investment, migration, and cultural transmission. Third, with the development of new worldwide transport and communication systems, globalization speeds up global interactions and diffusion of goods, ideas, capital, information, and people. Fourth, the pace of the first three transformations deepens the impact of distant events on everyday life. This deepening involves the rise of an awareness that increasingly many parts of everyday life are connected with things that happen at a distance (Steyn, 2004). This paper discusses that exploitation through means of globalization in African nations in a concise and comprehensive way.

Exploitation through means of Globalization in African Nations

One of the most important impacts of globalization has been on the human habitat. The interaction among ecosystems from different parts of the globe has increased markedly. The increase in world trade is increasingly linked to the ability of businesses to exploit natural resources. As the volume and intensity of trade increase, so does the exploitation of natural resources. Poor countries increasingly find themselves home to industries that use their raw materials (Steyn, 2004). A related concern is the use of lax environmental regulations to draw foreign direct investment—a number of countries offer low or no taxation and lax labor and environmental regulations within export processing zones (EPZs) to attract foreign investment.

Globalisation's impact goes beyond economics to cultural, social and political influences as well. A comprehensive globalisation index is calculated by Foreign Policy Magazine, which includes the level of economic integration, technological connectivity, political engagement, and personal contact. The 2005 Foreign Policy Magazine Globalisation Index ranked South Africa at 48; this is behind six other African countries, including Uganda and Tunisia. The ranking shows that South Africa is not very well integrated into the global community relative to other countries. This may be due to the fact that South Africa has not been "globalising" for as long as many other countries have. The rankings support this assertion in that South Africa fairs better than China and Russia who have also not been "globalising" for as long as many other countries1.

Tariff, non-tariff barriers and capital controls have all been decreasing since democracy (and South Africa's re-entry into the WTO); which is in line with the global trend. This is due to the downward pressure that globalization places on tariff structure and capital controls to maintain global competitiveness. Exports of goods and services as a percent of GDP have only increased slightly, from 24% in 1990 to 28% in 2003, and South Africa's share in world trade has remained around the 0.5% mark since 1995. This shows that South Africa is maintaining its share of exports in the rapidly increasing global exports and ...