Effects Of Globalization In South Africa

Effects Of Globalization In South Africa

Globalization involves “shrinking” or reduction of the world as well as an increased consciousness in regards to the world as a whole. Globalization is a term which is used in the description of changes in societies and the economy of the world which results in a dramatic increase in investment, cross border trade s well as cultural exchange. Globalization is dominated by nation states, economies of national and the cultural identities of nations. Globalization creates an interconnected world with a global mass culture which is commonly referred to as a global village (Egnatz, 2011).

South Africa is integrated highly into the world economy. South Africa is the strongest African economy and has attained positions like being a member of g8 .All these are as a result of globalization. Globalization has had an impact on the economy, the government and social nature resulting to some effects. The paper will look at how globalization has affected South Africa under several categories. It will also give an explanation on the actions of successful global business leaders on improving conditions that have been worsened by globalization.

Equality

Whether inequality is measured in terms of disparities between social groups, per capita income or gross domestic product or even by poverty and wealth levels in terms of accessing food or health care South Africa can be termed as a grossly unequal country. Globalization has brought about inequality in many sectors within South Africa. First of all gender inequality is quite rampant as man and women are not treated same. The relative status of women and men and the patterns of gender relationships that exist in South Africa are to some degree influenced by processes which are now on a global scope. However there has been market liberalization which has generated an increase in demand for labor from women that has given women access to resources and income hence reducing on inequality among women in South Africa (Egnatz, 2011.

Globalization has led to the facilitation of disease control in South Africa through an increase in speed of communication and efficiency when it comes to the dissemination of knowledge. However there are income disparities among the citizens of South Africa. The income inequality has a significant impact on control of diseases even if a solution exists. This therefore creates an inequality in the health sector. Research indicates that the more unequal a society is the unhealthier it is. Through the generation of an increase in unemployment, poverty, globalization adds on health problems creating a demand on the health services which are already stretched. Therefore globalization has greatly led to an increase in inequality in South Africa. A major form of inequality in South Africa is poverty. About half of the population in South Africa (22million) is people who are living in poverty (Poverties.org, 2012).This inequality is as a result of unequal distribution of wealth due to globalization. This creates social stratification where there are people who are living in extreme poverty while others are very wealthy.Government

The government of South Africa has benefited from globalization in so many ways. Through globalization there is exchange of ideas from other governments and hence the government uses these ideas to come up withy better policies of governing the nation. Globalization has also enabled the government to build relations with key policy making bodies like national policy making bodies, international monetary fund and academic economists. This has led to a rise in the living standards among the people in South Africa. The dynamic structure of a global economy due to globalization has had an influence on macroeconomic policies in the South Africa government towards realizing great benefits of globalization for the country. The South Africa government has had to adjust to demands of the forces of globalization and cope with the country’s status as an emerging market. The government has implemented policies that have enhanced economic globalization at international and national levels through allowing liberalization in investment trade and financeLabor conditions

Globalization has greatly impacted the labor conditions in South Africa in both positive and negative ways. The positive effects occur as a result of the increase in the capacity in South Africa to create new opportunities for production and work. Globalization has led to opening up of new opportunities in South Africa and therefore the labor market in the country is open with new opportunities for people. There is a lot of employment created in South Africa but it all depends on the investments made, type of technology that has been adopted, and South Africa’s ability to master the technology that has been imported and adapt to its needs.

The negative effects of the labor conditions in South Africa as a result of globalization are large scale technological developments by many companies in the country. These technologies have led to the reduction of unskilled labor in the companies. Foreign investment in the country does not care much about the cheap labor but only cares about the highly skilled labor. This has resulted to an increase of unemployment rates which are between 25-30% (The Levin Institute, 2013).The nature of work traditionally known by South Africans might disappear as a result of the rapid technological advancements .this might at the same time create new and innovative occupations that are in favor of the skilled and specialized professionals in South Africa.

Culture and community

Through the advancement of technology, transport channels and communication there has been the enhancement of globalization. People are continuously being brought together as a result of these advancements. These networks have resulted to the transfer of cultural images and ideas from different parts of the world to South Africa. The contact between different cultures in the world creates the need for the establishment of a global culture which can rise above racial, ethnic, and religious conditions of people who are in contact. In South Africa there are different cultural groups as a result of globalization. The different cultural groups are on the basis of ethnicity, race religion and language (Kasongo, 2010).In South Africa 12.73% of the population comprises of white people while 76.3% is black people, 8.5% is colored population and 2.5% is Asian. The highest spoken language is Zulu while the common religion is Christianity. An interaction of these languages, religions and ethnicities brings about a clash in practices and cultural beliefs. For example there is a conflict between the traditional beliefs of African Bantu speakers and the U.S secular individualism culture (Sotshangane, 2010).

Environmental sustainability

As a result of globalization South Africa has developed into a country striving for environmental sustainability. Through globalization, economic and environmental experts come up with ideas on the perspectives to be taken on the issue of environmental sustainability. Environmental sustainability in South Africa has led to the identification of course of action for using natural resources which support life on the land without their availability being limited in future. South Africa is now inclined towards green business practices as the country is protecting its lands and the planet from degradation which is irreversible. Globalization has also influenced the approach that South Africa takes when trying to solve issues that are critical like global warming, production of food, production of energy. In South Africa policies on environmental sustainability have now become key.

On the other hand globalization has also had some negative implications on environmental sustainability in South Africa. This is through cross border pollution; impact global goods have on South Africa, loss of scenic beauty and extinction of some species. There are direct environmental impacts which are a result of using new technologies for production in agriculture and energy industries and release of substances into the environment. New technologies particularly in the field of biotechnology have a potential of bringing significant implications to the environment these changes have a significant effect on the environmental sustainability in South Africa.

Actions taken by organizations to improve conditions worsened by globalization

There is an enormous upsurge of many people protesting against multilateral institutions which are designed to implement capitalist globalization. There have been actions taken by global organizations in order to try and reduce the conditions which have been worsened by globalization (Engler, 2007). There are anti-globalization movements whose participants are in opposition of multi-national corporations being given political power usually unregulated, and is exercised through trade agreements as well as the deregulation of financial markets. In South Africa there have been wide ranges of anti-capitalist forces .these forces act together with Anti-privatization forums of Cape Town and Johannesburg. Liberalization and the opening up of South Africa market has not led to creation of more jobs instead it has resulted to too many people loosing their jobs. It has also led to the favoritism for the people with better education. Therefore, organizations such as International Monetary Fund give out social grants to the poor people. An example of such grant programs is social welfare grant which is just like a retirement pension which enables a person lift his household from poverty. This enables a person to access education, telecommunications, health and so on. This is often referred to as a universal basic income grant as it enables individuals to be able to pay for their basic needs (Poverties.org, 2012).

References

Egnatz, N. (2011).Globalization and South Africa. Retrieved May 10, 2013 fromhttp://www.intrepidreport.com/archives/3395Engler, M. (2007). Defining the Anti-Globalization Movement. Retrieved May 10, 2013 from http://www.democracyuprising.com/2007/04/anti-globalization-movement/Kasongo, A. (2010).Impact of Globalization on Traditional African Religion and cultural conflict. Retrieved May 10, 2013 from http://www.academia.edu/297040/Impact_of_Globalization_on_African_Religion_and_Cultural_ConflictPoverties.org. (2012). Poverty in South Africa Taming Globalization & Inequalities. Retrieved May 10, 2013 from http://www.poverties.org/poverty-in-south-africa.htmlSotshangane, N. (2010).What impact Globalization has on cultural diversity. Retrieved May 10, http://www.alternativesjournal.net/volume1/number4/sotsh.htmThe Levin Institute. (2013). What South Africa Thinks about Globalization. Retrieved May 10, 2013 from http://www.globalization101.org/what-south-africa-thinks-about-globalization-2/