Globalization in South Africa

Introduction

There is a belief, within the developing-developed world paradigm, reflecting the convergence theory and contingency theory that the developing world, through industrialization and globalization, would more or less become like the developed world. This is reflected in the trend for 'western' approaches to management to be imported into developing countries through multinational companies. This may not only sway associations in the private sector, but furthermore those in the public and parastatal sectors and those lately privatised enterprises which are in the method of refocusing as a outcome of downsizing and other major organizational change. It is likely that when western companies try to implement 'western' human resource practices in cultures, which have a different concept of people, and a different regard for people in organizations, then incompatibilities will be manifested through lack of motivation and alienation leading to low productivity and labour strife.

Globalization and South Africa

The optimistic liberal scenario is that economic growth will spread across the world and that technological transfer would facilitate the spreading of the gains of globalization to all parts of the world. Meanwhile, sophisticated nations invest very strongly in poor nations, whose poverty down turns. "And growing middle classes clamour for more democracy" (Samuleson, 2002).

Unfortunately the world finances works differently in reality. These advantages do happen but have not come to the entire globe, particularly poorer third world countries. South Africa is one of them.

In 1994 South Africa was sharply split up and it was experiencing a high unemployment rate amidst socio-economic groups. But South Africa was very resolute to do the right thing economically by committing itself to becoming a international civilian and to play by free trade rules. South Africa has since privatised its big companies, such as Telkom and SAA, so as to appeal foreign capital. It furthermore alleviated exchange controls and the Rand became more comparable.

According to Sibuyi (2001), South Africa did everything it needed to do (and did it correctly) to become a 'global player' but it did not benefit from globalization. There was no record of better economic development, no increased grades of paid work, no increase in earnings and no foreign capital and buying into came flowing. (Subuyi, 2001)

There have been some advantages: commerce are a allotment more effective and expertise continues to play a changing function on the South African economy. However, the drawbacks far outweigh these benefits. Employment and income grades have turned down, commerce, such as the textile commerce, have been completely swabbed out and the Rand has proceeded to fall. South Africa had failed to fully benefit from globalization.

Impact of Globalization on South Africa

Before discussing the impact that globalization has had on South Africa, the extent of globalization in South Africa must first be established. Globalization's impact goes beyond economics to cultural, social and political influences as well. A comprehensive globalization 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 Globalization Index ranked ...