Globalization's Impact on Africa

Introduction

The world is made up of many countries which need close collaboration to maintain peace and prosperity. Different countries sign bilateral agreement to ensure that they do business without many barriers which reduce maximum return and exploration. Notably, no country is self-sustaining either in raw materials, labor or market for finished good hence there is a need for developing and maintaining good relations. Globalization is a significant factor that leads to close relationships. Primarily, globalization with various factors like technology makes the world look like one village. Globalization, since its popularity, has its share of advantages and disadvantages globally. For those working on a politics dissertation, politics dissertation help can be valuable in navigating these complexities. The African continent is also not spared from different implications of globalization. This report will describe the various impacts of globalization in Africa giving examples using countries in this continent.

Globalization may mean different thing to different people. Various scholars define globalization in terms of economic development while others see globalization to include technological advancement. Neither of the scholars is wrong. Primarily, globalization refers to the process in which countries liberalize their economy. Under this explanation, globalization relates to liberalizing import protocols and welcoming foreign investment in the mainstays of the country’s economy. In globalization, there is the free movement of merchandise, people and services from one region/location to another in an integrated as well as seamless manner (Croucher, 2018). Globalization could also mean the interaction of world’s cultures, economies and the entire population due to cross-border trade besides the flow of information, people and investment (Steger, 2017).

Given that globalization work in the unregulated market, it benefits the whole society and harms certain groups. In Africa globalization has taken roots where many African countries rely on each other and countries from America, Europe, and Asia. The impacts of globalization in Africa can be categorized in different ways based on the sector it affects and includes economic, technological, social and political impacts.

Economic Impacts

Globalization has impacted on African economy. Over the past few years of increased globalization, different countries have had foreign direct investments (FDIs). Most multinational companies have internationalized through FDI. FDI include pumping in money to start or promote an existing company in foreign countries. Different companies have opened subsidiaries in African countries. For example, the Hilton Worldwide Holding Inc. a company based in America has many subsidiaries and location in African countries like Kenya, Algeria, Egypt, Mauritius, Nigeria, and South Africa among others (Hilton, n.d). It is an indication that, that globalization has made local companies gain global recognition and enjoy the free trade even in foreign countries. Similarly, many African states enjoy foreign direct investment and aids from more economically developed countries like the United States, the UK, and China.

Free trade is another economic advantage earned from globalization. Currently, African countries export different products to European countries and in America. Globalization has opened the barriers that were there before which limited countries to consume only product produced in their country. Given the technological advancement, a person can order product miles away and get it within a short time. The free trade allowed foreign companies to develop the economic status of the African countries by offering employment opportunities to citizens reducing the level of unemployment. Similarly, free trade allowed importing companies/industry to outsource cheap product and labor hence increase their profitability.

The free trade permitted competition within the country which brings down prices. The available competition has two impacts. The positive impact includes African countries having an equal chance to maximum return in the global market. Primarily, African industries do well in the global market as the raw materials they offer are of low prices. Low-priced material gave African industries a competitive edge. Given that the companies pay tax to their countries, the competitive edge and profit gained contributes to the improvement of GDP. On the other, the competition introduced by globalization affected African industries. Notably, increased competition disadvantaged African companies with low financial stability. Foreign companies enjoyed enormous financial strengths may push the African companies to the edge thereby facing them out of the industry.

Traded goods quality improved while costs reduce. Remarkably, there is an international standard set by world international bodies to maintain product quality. For example, the intermodal containerization was an element of globalization developed by International organization for Standardization. Containerization reduced most transportation cost associated with damage and theft (SteadieSeifi et al., 2014). Given that the standard applies to all nations willing to do business, globalization played a crucial role in developing product structure, and quality as companies tries to maintain competitiveness.

Overall, economic globalization influenced the growth of African states economy. Due to increased exportation, globalization fortified marginalized African economy by giving them an equal opportunity to serve the global market. Similarly, globalization eliminated overreliance of more developed countries for aids and grants. The free market allows African enterprises to set prices and request product easily which support companies growth and overall productivity. It enabled African country to attain economic specialization resulting in sustainable development. Social Impacts

Social Impacts

There are social impacts of globalization. Developing countries, Africa included, benefited or lost in the wake of globalization. One benefit is the international mobility. Free trade and opened policy allowing the movement of people from one place to another. Multinational companies seek cheap labor that comes from all over the world African people sometimes having the most affordable available labor. The elimination of barriers to entry in different international market like the USA enabled the African population to move in search of a better life. International mobility improved people way and standards of lives. The international movement encouraged by globalization has negative impacts on African society. Some foreigners came and occupy the minimal employment spaces available in different African economy because of the perceived expertise. Besides the expertise being of great importance, international mobility limited people growth within their countries of origin.

Globalization encouraged poverty alleviation. The existence of FDI and increased trade allowed increased economic growth which alleviates poverty levels. Citizens receiving the foreign direct investment had a chance to attain economic breakthrough through employment opportunities afforded by trade and FDI. However, there is a counter-argument that globalization caused increased poverty. Globalization caused African country to rely upon the global market for imports and exports. It opens up a leeway through which there was increased vulnerabilities and suffering from economic crisis. Vulnerabilities in the economy instigated negative impacts on macroeconomic policies which may be a reason for poor economic growth in African countries.

Eze and Nkwede (2012) identify that globalization accrued more benefit to the developed countries more than it has on developing countries like Africa states. Globalization widens the already existing gap between the rich and the poor as developed countries achieve more significant advantages. African countries should join the globalization arena as equals to enhance development (Eze and Nkwede, 2012).

The most significant social influence of globalization is on culture. Notably, countries supported different culture in terms of language, morals, arts, beliefs, foods and dress styles (Kawuley and Iskandar Lee Abdullah, 2017). Globalization affords the cultural intermingling where each country learned about another culture. For example, English is the international recognized official business language. African countries adopted the language into their education system to ensure that the school system raised people who can participate in business.

Similarly, people change their living ways to copy what other countries do. In Africa, the challenge of western culture is immense. Dressing styles, the method of doing and managing business took the culture of the west. Globalization causes dilution of African culture, besides allowing people to intermingle and benefit economically and socially (Lane, 2017).

Political Impacts

Globalization has more negative political impacts in African countries than benefits. In the wake of distributing aids and grants to developing nation, globalization introduced a new level of exploitation. African countries became dependent on western economy bring in disastrous consequences on African governments and its people. There is perceived re-colonization afforded by globalization. Lere (2014) argues that globalization is a form of re-colonization using exploitative instruments like the International Monetary Fund (IMF), World Trade Organization (WTO), World Bank, and other international financial organization. Globalization is seen to bring modernization, but the issue of recolonization becomes rampant as the instrument named above provides funds for development causing African countries to incur more debts.

The issue of the political economy is evident in globalization. The developed nations used their financial stability to arm-twist African countries to conform to their demand. Currently, the debt capacity owed by African countries to more developed nations is rising (Babu et al., 2014). Whenever the African countries show weakness in repaying the debts, there is a possibility of exploitation by the creditors. Political speaking, globalization favored principles of developed countries at the expense of the vast majority of African countries. Globalization eroded the sovereignty based on financial and economic matters due to policies and strategies employed by the financial institution (Lyubashits et al., 2015).

The local government policies changed due to globalization in Africa. Some countries lack governmental incentives which promote domestic production. The African government supports imports making local production less economic. For example, most African cloth manufacturing companies are not operational. For example in Kenya, the government has less support of local cloth manufacturing industry; instead, the government imposes less import duty on second-hand clothes, therefore, killing the manufacturing industries. The African government has a limitation in protecting the social status of their citizens among the factors that make most developed country maintain domestic political support as well as social cohesion (Majekodunmi and Adejuwon, 2012). Globalization caused underdevelopment due to asymmetrical relations between developing and developed countries (Majekodunmi and Adejuwon, 2012). Former colonial power affects how globalization takes place in Africa. Viotti and Kauppi (2010) argue that postcolonialism indicates the ill effects of political globalization within African states hence understanding former colonial power remains relevant in comprehending the issue of neo-colonialism.

Technology Impacts

Technological development is a significant benefits that globalization impacted in African countries. Before globalization, only a small percentage of people had access to information, internet, and computerized machines. Currently, across the globe, all individual have access to the internet, telephones, and computers. Information Technology (IT) is changing people’s standards of living and has become ubiquitous.

Technology afforded by globalization brought the influx of information. The use of the internet gives people a platform through which they can exchange information. For example, many online studies are happening on the web equipping people with the knowledge necessary to drive economic development. African population benefited from globalized technology as they acquired relevant information which improves their understanding of life and business. African countries share information with other countries despite there being nothing in common between the two countries.

Technology improved the ease of doing business. People see the speed movement of information, goods, and services as a result of technological advancement. For instance, a person can book a hotel room earlier using the internet when he/she is in African and receive the services when he arrives in a foreign country. The Internet is a benefit of globalization which enhances e-commerce leading to companies increased profits and growth. Communication to secure raw materials and outsource cheap labor comes with the help of the internet between countries in different continents.

Globalization enhanced the relationship between countries due to technology exchange. The U.S. is among developed countries with better technology. The U.S. has a relationship with most African countries which rely on technological expertise to develop their economic and market system. The constant dependency to most developed countries concurs to globalization theory of dependency and world system (Ritzer and Dean, 2019). The technological relationship makes other African countries become IT hub, for example, Kenya in the East African region. Most African countries have no capital to develop their technology; they purchase shelved-software to help them meet daily demands. Technological exchange assists African countries to by-pass the challenges and cost associated with the development of technology. Without globalization, exchange of technology would not be possible.

Conclusion

Summarily, globalization is a necessary evil that comes with positive and negative impacts. The African countries also experienced the impacts of globalization which include economic, political, social and technological influences. As explored above, globalization causes economic development by opening up the market allowing free entry of foreign companies bring FDI. Opening up the market benefit not only the African countries but also increase vulnerabilities that might affect them. The significant negative impacts of globalization include political interference leading to neo-colonialism and increased overdependence of African countries to other developed countries. Conclusively, globalization is beneficial to all parties undertaking it.

Recommendations

Countries should always try to balance globalization effects and benefits. The African government should ensure that there is no political interference despite welcome the grant and aid offered by more developed countries. It helps maximize the benefit of globalization. Likewise, African population should hold to their culture and develop it without conforming to westernization affecting most African countries.

References

Babu, J.O., Kiprop, S., Kalio, A.M. and Gisore, M., 2014. External debt and economic growth in the East Africa community. African Journal of Business Management, 8(21), pp.1011-1018.

Croucher, S., 2018. Globalization and belonging: The politics of identity in a changing world. Rowman & Littlefield.

Eze, R.C. and Nkwede, J., 2012. The Effect of Globalization on African Countries: An over View of Nigeria. International Journal of Asian Social Science, 2(4), pp.394-401.

Lane, J.E., 2017. Globalization and Politics: Promises and Dangers. Routledge.

Lyubashits, V.Y., Mordovtsev, A.Y. and Mamychev, A.Y., 2015. State and algorithms of globalization. Mediterranean Journal of Social Sciences, 6(3 S6), p.277.

Majekodunmi, A. and Adejuwon, K.D., 2012. Globalization and African political economy: the Nigerian experience. International Journal of Academic Research in Business and Social Sciences, 2(8), p.189.

Muhammed, A., 2015. Economic and political impact of globalization on Africa. Sosyoloji Konferansları, (51), pp.107-126.

SteadieSeifi, M., Dellaert, N.P., Nuijten, W., Van Woensel, T. and Raoufi, R., 2014. Multimodal freight transportation planning: A literature review. European journal of operational research, 233(1), pp.1-15.

Steger, M.B., 2017. Globalization: A very short introduction (Vol. 86). Oxford University Press.