A paper on the Globalization: Development Challenges

CHAPTER ONE: Introduction
This paper will introduce the concept of globalization and its impact on development of third world countries and the world in general. It will take us through faces of globalization and Tanzania is a case study. The paper will cover five parts:- Introduction, Theories related to globalization (literature review), Analysis of globalization outstanding issues(findings), Possible criticisms and recommendations(discussion) and Conclusion. To start with let us know the meaning of Globalization which can be described as a process by which the people of the world are unified into a single society. This process is a combination of economic, technological, socio-cultural, environmental and political forces. It has become increasingly fashionable to use the term globalization as a description of the international economy and international political relations. Global culture and economic changes is always complex and multidimensional which brings benefits and burdens the world. The benefits and burdens of global culture and economic changes are not distributed evenly among people. It is clear that globalization of the past shapes globalization of the present. Globalization today is characterized by a dramatic increase in and acceleration of earlier kinds of connections. Today, Globalization is about the liberalization and global integration of markets, which involves flow of people, capital, technology, culture, information and ideologies.



CHAPTER TWO: Theory related to outstanding issues on globalization
2.1 The concept of globalization
Globalization can be defined as the diffusion of ideas, practices and technologies in a seamless way throughout the world. Globalization is the intensification of worldwide social relations which link distant localities in such a way that local happenings are shaped by events occurring many miles away (Giddens, 1990)

Globalisation is a complex process at present time which requires careful analysis and follows up. It is a process of inclusion as well as exclusion because it demands that people sacrifice or do way with some separatist tendencies in order to be part and parcel of the global economy and a global culture. Globalisation requires the opening up of boundaries and borders and the exposition of the world’s resources for the common good. It actually assumes that leaving everything functions according to the laws of the market is one of the best ways to ensure proper development (Mwingira, 1998).

Goods and services can freely be sold across the borders and the distance between North and South, East and West is steadily diminishing. However, globalization also confronts us with new problems. The economic forces are becoming more and more intractable, weak group are being marginalised, inequality is increasing, financial crises are being exacerbated, the cultural identity is being re-shaped, community and family ties are being broken down and global crime is on the increase (MS, 2000).Globalisation creates wealth for some and leads to poverty and marginalisation for others. The situation must be reversed and the economic wealth that accompanies the global market must be used to eliminate poverty and hunger, ensure education and health for everybody, and solve the environment problems. We must recognize that globalisation contains a danger increasing even further the gap between those who have access to education and new information technology and all those who do not (MS, 2000).

Globalization is offering the poorest countries new ways of fighting poverty. Development organizations and donor – countries are now sending in the information – and communication technology in order to get rid of poverty. Computers, internet connections and mobile phones are supposed to be in the forefront of the new battle. Tele –and communication centers are being put up in a lot of the big cities in the developing countries, but the rural areas also have to be covered. The basic idea is that internet connections are central development tools (Bech, 2004).

Globalization is not only about communication, though, traveling by plane you can cross continents in a few hours and go from one part of the world to the other in a day. It’s also getting the possibility of tasting food from other cultures and its increased trade between the continents. But so far all this is still only possible to a limited number of people in Tanzania! The people in favor of globalization are seeing the ‘global village’ as a way of eradicating poverty and creating more equality. And the skeptical ones see globalization as a new evil-benefiting the rich and leaving the poor even further behind. The ‘global village’ is both a great opportunity and a possible catastrophe if not handled properly (Bech, 2004)

The process which is characterized by neo-liberal ideologies of the market economy mainly initiated by global political and economic elites has transformed the social economic structure of states in such a manner that there is now an apparent and clear growing gap between the rich and poor. A sense of powerlessness is growing which can lead to a state of depair. A new “African Renaisance” it is on the other hand being perceived without however much being seen on the ground. The transformation of people’s life and the economy for countries like our own is still a change. The CBOs/NGOs in struggle to eradicate poverty cannot afford to ignore the globalization process with its positive and negative consequences on our people. If so, we run the risks of playing match whose net results will be negative hence the failure to meet our development objectives. The challenges for CBOs/NGOs are to look for ways to cope with the process and be alert to find out how the balance between free systems and deregulations and the protection of national identity and priorities for development can be maintained. The need for participatory process and the instance that the voices of the poor also are taken into account is necessary. Otherwise the poor, especially those of Africa will only be objects of globalisation process and not subjects. CBOs/NGOs being and working very close to the people have also a duty to create more awareness to the communities ahead the global trends and prepare them. CBOs/NGOs are called to ensure that people make informed choices about the policies and programmes introduced to them under the cover of poverty eradication so that they can also gain and not end up losing even the little they have like the right to ownership of land and the right of decisions about how to organise their own lives (Mwingira, 1998)

2.2 Globalisation by people
Globalisation by people is where people and communities are placed at the centre of the process of development, rather than being marginalised as it is often the case with the type of neo-liberal globalisation dominating today. People and communities need to be protected through the enforcement of globally binding rules. There is an increasing lack of democratic culture and practice in global decision-making process. Trans-national corporations have more power and influence than many countries. International cooperation is more often than not dominated by the interests of the powerful industrialised nations. It is necessary to balance the freedom enjoyed by the few with global rules that protect the many. Since environment and development is totally intertwined in both the global and the local context, therefore, globalisation must contribute to better living conditions and a better environment for all people. Also it should be known that, wealth and consumption patterns by rich people have negative impact on the poor, and the environmental problems faced by poor can eventually lead to instability and insecurity in other parts of the world. The focus of global negotiations have increasingly turned to the global environmental problems that have a potential impact on the rich countries, such as ozone depletion and climate change, rather than to the environmental problems that have an immediate and serious effect on the poor countries , such as lack of clean drinking water, indoor air pollution and desertification (Bech, 2004).

2.3 Tanzania in the globalization
Global Tanzania’ is not doing well. Tanzanians are not part of the global rush and rural people in the country have probably never heard about the ‘global village’ they are supposed to be living in. Some people are even calling globalization a new kind of colonialism.

Global trade is not really going Tanzania ‘s way, the internet is only used by very few people, traveling by plane is only an option for a limited crowd of rich residents and most educated Tanzanians will leave the country to work abroad if they get the chance.

We cannot wish globalization away! The fast-moving, communicative and consuming monster is here to stay. Africa and Tanzania must act –and act fast to be part of the process and to gain from the new era. More trade inside Africa is needed. But Tanzania must also fight to remove the agricultural subsidies in the developed world. Movements from the rich part of the world is already fighting alongside the Third World trying to change the fact that ‘a cow from the North is receiving 100 times as much financial support as a farmer from south’-as one slogan reads. Tanzania must also have the courage to change its national policies. A better investment climate is needed, more planning ahead is essential and a serious crack-down on the destructive corruption on all levels of society are the keys to bring back trust in Tanzania economy (Bech, 2004).


CHAPTER THREE: Analysis of globalization outstanding issues
Heshmati (2004) finds that globalization reduces poverty among the poor people and women in rural. Also finds that globalization reduces inequality by increasing the income or consumption of the poorest 20%. Globalization can reduce poverty because it acts as a filter that magnifies the impact that institutions and policies have on the poor (Heshmati, 2004). The outcome of globalization for the poor depends on the quality of economic institutions and policies (Bardhan, 2004a). Therefore, if a country has sound policies institutions, globalization can positively affect the poor. The effects of globalization are difficult to isolate from other effects that have had significant impact on the poor. However, some great effects of globalization are as follows:-
• There is a capital savings and technology change
• There is a labor savings in developing countries which increases marginal productivity to unskilled labor
• There is a sector creation that provide jobs for the poor
• There are potentially lower tariff rates which can have an extremely positive pro-poor impact
• Globalization promotes free trade and ultimately benefits everyone because free trade opens access to goods, services, capital, people, information, and technology,
• It provides countries with their best opportunity to advance
• Money comes easily, money goes easily.
• Corporate networks more easily established, illicit and terrorist networks more easily established.
• Computers and programmers move more easily, weapons and sex traffickers move more easily.
• New medical technologies spread more easily.
• There is availability of items in market
• The government receive tax form private business to run the government
• There is an increase in investments
• Choice of varieties is high
• There is an increase of entrepreneurs
• Goods and services are drawn more and more into the market
• There is a perfect information in the market
• Resources are mobilized and allocated in most efficient and cost effective manner

However, Croucher, S (2004) in her book says that globalization has various aspects which affect the world in several different ways such as:
Industrial (alias trans nationalization) - emergence of worldwide production markets and broader access to a range of foreign.
Financial - emergence of worldwide financial markets and better access to external financing for corporate, national and sub national borrowers give opportunity for poor especially women to access credits and other funded projects.
Economic - realization of a global common market, based on the freedom of exchange of goods and capital. Globalization, when considered in a sociological context, has increased economic inequality throughout the world. In global world there is an increasing economic interconnectivity which experience:-
v International division of labor
v Rapidly expanding volume of capital flows
v Capital remains concentrated among the wealthiest nations
Political - political globalization is the creation of a world government which regulates the relationships among nations and guarantees the rights arising from social and economic globalization.
Informational - increase in information flows between geographically remote locations, whereby poor people and women are living.
Cultural - growth of cross-cultural contacts; advent of new categories of consciousness and identities such as Globalism - which embodies cultural diffusion, the desire to consume and enjoy foreign products and ideas, adopt new technology and practices, and participate in a "world culture" Ecological- the advent of global environmental challenges that cannot be solved without international cooperation, such as climate change, cross-boundary water and air pollution, over-fishing of the ocean, and the spread of invasive species. Many factories are built in developing countries where they can pollute freely. Social - the achievement of free circulation by people of all nations.


Chapter Four: Criticisms and recommendations
4.1 Criticisms on globalization
Although, globalization is doing well in the modern world system, the following are criticisms of globalization:-
• Economic globalization is associated with increasing disparities in wealth and power both between nations and between different groups within nations and between public and private sectors
• Poorer people are at disadvantage: While it is true that Globalization encourages free trade among countries on an international level, there are also negative consequences. The main export of poorer people is usually an agricultural good. It is difficult for these people in developing countries to compete with stronger countries that subsidize their own farmers. Because the farmers in the poorer countries cannot compete, they are forced to sell their crops at much lower price than what the market is paying.
• It is difficult for developing countries to compete with stronger countries that provide bigger subsidy to their own farmers. Because the farmers in poor countries can not compete, they are forced to sell their crops at much lower price than what the market is paying.
• With globalization, traditional agricultural exports have gone down due to stiff competition in the world market.
• Extreme volatility for primary commodities, which is bad for the farmers that produce primary commodities, but is mixed for the poor who consume primary commodities because their prices, although volatile, are less expensive;
• Volatility of income, prices, or output in the short-run, which is bad for the poor, unless policies and institutions are implemented that to enhance macroeconomic stability;
• Culture, identity, and tradition are disrupted and reworked. As a result of these global flows, new ways of living and new forms of culture are created :( hybrid cultural forms). Therefore there is a decline of moral responsibility due to free entry of western culture and traditions
• In political terms, globalization has reduced the ability of governments to manage their national economies.
• Most of he developing nations including Tanzania, have been so much dependent on financial support from developed Nations; which can result in making unimplementable national budgets/plans/policies.
• Developing nations have in most cases implementing decisions made by WB and IMF; which in most cases have not been favoring their own national policies.
• With globalization, the developing nations like Tanzania have been experiencing importation of fake and poor goods from other countries.
• Globalization results in unemployment to most of the citizens. The Tanzanian population for instance can not compete in the world market on employment aspect due to the unconvincing educational background undergone in the previous years.
• There is outflow of capital for example mines industry
• In some of activities human capital replaced by machinery and computer technology
4.2 Recommendation on globalization
Though globalization has brought many positive things in human development, it has to do much for pro-poor especially women. Globalization need to address development issues pro-actively through policy dialogue, consultative processes, data analysis, and the full range of operational instruments. This is primarily the job of government, but has to be helped and supported by donors and research/training institutions.
Governments, donors, and the World Bank are urged to take action to address globalization challenges in the context of adjustment and to internalize the recommendations and thinking within their own institutions and programs.
Open up economic decision making bodies like the WTO and the IMF to the people; make them as democratic and transparent as possible and require them to achieve equitable human development and environmental goals; require trade agreements to show their positive impacts on humans and the environment before finalizing them.
Transform the productive monetized economy to enable people’s roles in the reproductive or social economy to be respected, so that we can all live more balanced lives.
Equalize political decision making at all levels.
Mean while alternatives suggested for pro-poor, safety nets, such as education, health, and welfare reform, should be provided for the poor during trade and financial liberalization. These institutions create an opportunity for those who are living in extreme poverty to learn skills that will increase their marginal productivity, and therefore their wage. The redistribution of wealth, such as asset ownership for the poor, targeted lending, progressive taxes, and consumer subsidies, is also considered a safety net that can be used during crises or volatile times to help protect the poor from the cruelty of extreme poverty. In order to realize true development in this global world, therefore:-
Education should be treated as a strategic agent for mind set transformation and creation of a well educated nation sufficiently equipped with the knowledge to completely and competitively solves development challenges which face the nation. In this right the education system should be restructured and transformed qualitatively with a focus on promoting creativity and problem solving.
• Human rights should be promoted worldwide and stop all kinds of violation
• We should promote equity and less disparity within and between nations
• The world should promote sustainable development through less environmental destruction, poverty and deprivation


Chapter Five: Conclusion
This paper discussed an overview of globalization concept. Also the paper discussed theory related to globalization, globalization outstanding issues, criticisms of globalization as well as recommendations.

It is clear that, in globalization world market economy system is known to be the most efficient resource allocation system ever made by human. Globalization can be pro-poor and gender oriented if the developing country implements the correct policies and institutions.

Globalization magnifies the effects of policies and institutions, so policies and institutions that are bad for the poor or that create macroeconomic instability will hurt the poor especially women even more after globalization. Countries need to make a committed effort to implementing policies and institutions that strengthen the trade and financial sectors. These institutions and policies must also fend off problems, such as trade shocks, speculative attacks, volatility, and corruption. Problems are larger after a country globalizes because it is open to massive shocks, but countries must join the globalization trend because those who do not globalize become worse-off, such as the Sub-Saharan African countries, after other countries globalize. Countries that want to help their poor including women must globalize, and they must do so carefully, implementing the proper institutions and policies.