Globalization and Its Impact on Africa’s Economy and Business

What Is Globalization?

Globalization is the way of establishing interaction and integration among various governments, businesses, and people. Businesses and organizations develop influence and function on an international scale through globalization.

In simple terms, globalization aids in a transparent flow of information, technology, and goods between various countries and its consumers. It has smooth public administration and creates an openness that encourages cordial relationships. It ranges from the business segment to geopolitics, technology to travel, and media. 

Today’s world is a network, and globalization goes unnoticed at work almost every day. However, the world is shrinking, and it is high time for companies to realize the future of doing business. Companies that do not acknowledge globalization enter the risk of losing a competitive edge in the market. It makes way for other businesses to grasp the new opportunities that prevail in the global marketplace.

Merits of Globalization 

Globalization has always been a boon to businesses worldwide. Mainly the businesses and consumers of the Western economy have experienced the opportunities of globalization. It has enabled an increase in economic freedom that has made favorable perceptions on freer trade. It is a win-win situation for every country.

Globalization has given several benefits, such as:

  1. Access to New Cultures
    Access to foreign culture has never been this smooth. It has started the free flow of people, food, goods, art, music, and information. 
  2. The Spread of Technology and Innovation
    Globalization helps the developing world progress quickly. Many countries from various parts of the world stay continuously connected. It is to ensure that knowledge and technological improvements spread faster. 
  3. Lower Costs for Products
    Globalization reduces currency manipulation issues. It helps to find cost-effective ways for the production of products and increases global competition. Hence, prices go down, and choices are more for consumers. Lowered costs help in developing people as well as the economy.
  4. Raised Standards of Living Worldwide
    Due to globalization, many developing countries experience effective eradication of poverty and higher standards of living.
  5. Removal of Tax Havens
    Globalization has considerably reduced this issue. It eliminates the middleman administrative structures. Thus, it makes sure wealthy individuals or businesses cannot hide their funds from being taxed. It emphasizes greater transparency and equality. 
  6. Entrance to New Markets
    Globalization boosts free trade. Whether it is business or employment opportunities, it is needless now to establish a foreign body to magnify overseas.
  7. Admission to New Talent
    Globalization creates additional employment opportunities. The International PEO permits companies to employ workers overseas easily. 

Downside of Globalization 

  1. Globalization Encourages Much Offshoring
    There are not many restrictions in place, and many businesses take this to their advantage. There is more threat involved in undertaking jobs overseas because it would mean a lower income at home.
  2. Globalization Helps the Wealthy than the Poor
    Value-added taxes are 25%, and tariffs are above 70% in some nations. The people with power dictate policy, and they are reaping more profits. It is partial toward one particular group of people, whereas the others are living paycheck to paycheck. They are struggling to keep up their jobs and to survive.
  3. Possible Disease Transfer
    The recent COVID-19 is an example of the global pandemic. Now, global travel restrictions have been put in place to reduce the outbreak.
  4. Globalization Creates a New System of Politics
    This is the last thing that we would want as it would translate the global economy entirely. The rich and influential will be the face of globalization, where the poor will still be poverty-stricken.
  5. Excess Resource Consumption
    Wealthiest countries consume about 90% of the world’s resources. But, the goal of globalization is for every nation to have equal access to resource consumption.
  6. Does Not Find a Solution for Employment
    With the widespread knowledge and usage of technology like artificial intelligence, automation, and robotics, manual jobs will be reduced. The most redundant ones will be the first to vanish. Without vocational development opportunities in place, globalization will have a border between developed and developing nations.
  7. Negative Impact on the Environment
    The impact of free-trade is quite evident like greenhouse gas emissions, micro-plastics in oceans and water bodies, and water acidification. There is economic deterioration, which will worsen if the caps on globalization are removed any further.

The proper system must be in place to avoid the situation from getting shoddier. Political reforms must ensure proper policies to safeguard the socio-economic conditions of nations. The goals of globalization must not be misused; instead, it should be enforced strictly. Respective authorities and public administration bodies must function without the power and influence of affluent communities.

Why Is Globalization Needed to Help Grow Africa’s Economy?

The first industrial revolution led to an increase in international trade. Africa was still on the sidelines of the global economy. In today’s advanced economies, the main advantages can be felt where industrial technologies emerged.

The repercussion against globalization, especially among the working-class citizens in developed economies, is prevalent. Stagnant wages and overselling economic integration were the usual highlights. What African citizens faced was less attention, although this vast continent contributes to over 40% of the population of the world. 

  1. Opportunities for New Business – Globalization makes it easier for setting up new business establishments. It also makes way for competing with existing businesses in the market. Economic development and employment for more number of people are possible. The import-export segment looks at a greater scope for economic growth, especially the western economy.
  2. Lowering of Consumer Prices – Globalization lowers the consumption cost and, in turn, increases the wages of the people. The availability of many goods was restricted earlier because of affordability issues like mobile phones and sewing machines. Now the scenario has changed, and they are common in every household.
  3. Increasing Productivity – With the introduction of technology to regions inaccessible, globalization has spread, thereby helping economies more productive. It has reduced the gender and age discrimination; therefore, new opportunities can be accessible by all. It also aims at better working conditions.
  4. Improving the Household’s Income – By reducing the inflation rates of goods and services, all people can get their money’s worth. Globalization offers economies and people a promising breakthrough.

Ghana’s GDP growth in Sub-Saharan Africa is 8.8% as of 2019, according to the GDP released by the IMF. Nigeria is projected at 2.1% GDP growth rate. South Africa and Angola stand at 1.2% and 0.4%, respectively.

However, trade and investment are not happening at a faster pace anymore. There has been a considerable decline in the economy, and implementing necessary actions is the need of the hour.

How to Streamline Globalization in African Countries

In order to make globalization more comprehensive in Africa, effective policies and public administration are necessary. Streamlining globalization is vital, and certain criteria have to be kept in mind and given priority.

  • Tackling inequality
  • Boosting convergence in living standards
  • Support from external partners
  • Speeding up the regional integration
  • Bridging gaps in labor skills
  • Creating digital infrastructure and regulating digital data.
  1. Revamping the Public Administration Sector in Africa
    For Africa to profit further from globalization, the region’s policymakers should fast track their efforts. Public administration is an essential aspect. It embraces the entire activity of the government and helps in effective implementation.
  2. Constructing Clear Trading Policies
    In order for Africa to advance in international trade, the government should enforce strict laws. The free trade of the African Continent has to construct a single African market for trade. More movement of people and goods can unlock Africa’s economic potential.
  3. Linking Qualified People in the Policy-Making Procedure
    Education and training programs on public administration should be focused more. It will develop digital proficiency and socio-behavioral competences. Hiring more-qualified people with a master of public administration degree can benefit a lot. Professionals with a master’s degree in public management can effectively run public service organizations and government institutions.

Online Master of Public Administration Course 

In association with the Central University of Nicaragua, Texila American University offers an online Master of Public Administration course (MPA) that gives importance to public management, policy development, and implementation. Anyone holding a bachelor’s degree along with a minimum of three years of work experience in public sector organization is eligible. It equips individuals with the professional expertise to handle challenges in the public administration domain.

The master’s in public administration salary scale is also good. It prepares for both government and corporate sectors. Is an MPA worth it? Well, yes, it can help to make effective at persuading changes, accomplishing the mission, and making a great impact.

Africa’s potential is enormous. Nevertheless, it is prone to inevitable challenges. Forecasts state that Africa will house almost 90% of the world’s deprived people by 2030. Unless proper public management is implemented in Africa, then globalization and the vision of shared prosperity may fade.

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Globalization and Its Impact on Africa’s Economy and Business Table of Contents What Is Globalization?Merits of Globalization Downside of Globalization Why Is Globalization Needed to Help Grow Africa’s Economy?How to Streamline Globalization in African CountriesOnline Master of Public Administration Course  What Is Globalization? Globalization is the way of establishing interaction and integration among various governments, businesses, and people. Businesses and organizations develop influence and function on […]
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