HUBERT KAIRUKI MEMORIAL UNIVERSITY

HEALTH SYSTEM DEVELOPMENT (HSD 300)

DEVELOPMENT STUDIES (DS 100)

TOPIC GLOBALIZATION: IT’S EVOLUTION

CHANGED PERSPECTIVES AND ITS EFFECTS ON HEALTH

LEARNING OUTCOMES
At the end of this module, the students will able to:

1. Define the term globalization and its related concepts.

2. Demonstrate the understanding of the origins of globalization.
3. Demonstrate the understanding of industrial revolution and global
economy 1760 – 1900.
4. Demonstrate the understanding of globalization during the cold war.
5. Demonstrate the understanding of after the collapse of the communist
states.
6. Demonstrate the understanding of the current state of globalization.
- Positives
- Negatives
7. Possible solutions/strategies.

BY

BERNARD JULIUS KASIMILA

DENIFINITIONS
The current process of development of the concept and practice of globalization has
made it look a new "event". But as Late President Benjamin William Mkapa, the Co-
chair of the ILO established World Commission on the Social Dimension of
Globalization remarked on 19th August 2002; “Globalization is a process of
integration and internationalization. It has been around for centuries; its speed and
intensity being determined by the level of technological progress”.

While Mbilinyi (2001) defines globalization as “neo-colonialism” UNDP considers

globalization to be “widening and deepening of international flows of trade, finance
and information in a single integrated global market”. It is a process aimed at
progressively integrating national commodity, capital, financial and currency
markets into a single global market operating according to universal rules (cited by
Davies, 2000:159).

In the module, we trace the development of globalization to the current levels:

which factors have facilitated it to reach its present status; the challenges,
opportunities and threats it presents to developing countries, and strategies
developing countries should design to benefit from it and avoid marginalization or
exclusion a world dominated by cutthroat competition.

1. INTRODUCTION

Globalization as international collaboration in trade and later in politics through the

process of creation by Europe of overseas dependencies, colonies and neo-colonies
is a very old process.

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Up to the 15th century people in all continents of the world traded among
themselves, with the Mediterranean area being the center of the world economy.
There was limited international trade as we indicate below. Following voyages of
overseas exploration and the consequent “discovery” by Europeans of the so-called:
new world” (Africa, the Americas, the Caribbean Islands and Asia/Pacific), world
trade developed to link Europe and the outside world.
This module is organized as follows: section two, traces the historical development
of globalization, including factors which facilitated it; section three discusses the
current state of globalization and the challenges, opportunities and threats it
presents to developing countries; section four discusses strategies which developing
countries should design in order to benefit from globalization; section five makes
general conclusions.

2. THE HISTORICAL EVOLUTION OF GLOBALIZATION

2.1 Definition of globalization

Globalization is from the English world global, which means concerning or

including the whole world. In its current use, globalization describes “complies
interactions between societies, cultures, economies, technologies, governance,
institutions and individuals worldwide. Its critical dynamic is the compression of
time and space, while it dramatically shifts and stretches relationships from local to
global contexts. Its power and momentum is derived from growing markets
capitalism and global advances in communication technologies” (Semboja, et al.
2002: 1). Mkapa (2002) defines globalization as “a process of integration and
internationalization”. Although, as noted above, globalization has been around for
centuries, its speed or dynamic currently and in the future has been and will be
determined by information and communication technologies (ICT) and the profit
motive of capitalism.

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Globalization is, therefore, multidimensional, involving economic concerns such as
trade, investment and financial flows, technology, competition, global production,
distribution and policies. It also involves social and cultural concerns such as
poverty and inequality, employment, drug trafficking and crime. Other dimensions,
which are taking root, are lack of respect for the sovereignty of small nations by the
big powers under the leadership of the United States of America. The invasion of
Afghanistan and Iraq and the violent removal and replacement of ruling regimes in
those countries by the United States of America and its allies is demonstrative of the
use of power in pursue economic and political interests.

As we will note under section two, globalization has undergone metamorphosis

from formative stages when international trade was its main form. Later it included
international division of labour by which current Third World countries produced
raw materials and exported human labour to the Americas and Europe. Political
domination of colonies and dependencies further integrated the current Third
World countries into the capitalist ode of production and political system of
exploitation and impoverishment. Developments in science and technology have
been the main driving force of globalization throughout its history.

2.2 World Trade Before the Era of Voyages of Exploration

As we have noted above, up to the 15th century, the world economy was mainly
within continental and national boundaries. There was limited international or
transcontinental trade. For example, there was some overland trade between
Europe and the Far East and between West Africa and the Mediterranean sea (the
Trans Saharan trade); overseas trade between North Africa and Mediterranean
Europe; between the East African coast and Arabia and the Far East, including China.
Such transcontinental trade was limited in quantities of commodities traded

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because of long distance and the use of animals and manpowered or wind powered
sea vessels.

Although some historians have claimed that before voyages of exploration Africa
was a dark continent, the fact of the matter is that Africa participate in world trade
within the limits experienced by other continents. It is the Americas, the West Indies
and Australasian, which did not have contacts with the other continents owing to
physical isolation in a world of low technological development. Northwestern,
North and North-Eastern Africa were part of the center of the world economy, the
Mediterranean region. From West Africa through trans Saharan trade, the wealthy
in the Mediterranean region were able to obtain goods from West Africa (mainly
gold and other exotic products with a high value to bulk ratio).

During this period, the level of globalization was very low. Limitations in transport
and communication and low level of development of productive forces ruled out the
possibility of mass production and the marketing of mass consumption goods at the
global level. Kapinga, (1983: 51 – 59) discusses the articulation of Africa to the
world economy during the period before 1500. Links between Europe and other
continents known to Europe then are elaborated with the form of commercial ties
and cultural influences.

2.3 World Trade After the Voyages of Exploration (1500 – 1760s)

In the period between 1500 and the 1760s (the beginning of the Industrial
Revolution in England), the most important achievement which had a great impact
on word development was the development of world commerce occasioned by the
“discovery” of new lands. Developments in shipping and naval strength in Europe
led to the successful exploration in the 15th century of African coast lands, the West
Indies, North and South America, Australasia and the rounding of the Cape of Good

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Hope, had a great impact on world development. First, Europe was able to increase
its volume of trade with the East which had hither to depend on the land route
connecting the two regions. Secondly, Europe was able to open up new areas for
commerce and productive investment. In fact, the center of world commerce shifted
from the Mediterranean region to Western Europe. Commercial and production
operations created new peripheries and peripheries of peripheries. For example,
the West Indies and the Americas became peripheries of Western European center
while West Africa and East Africa become peripheries of the West Indies. Americas
and the Asian respectively. These developments revived hope for the survival and
development of Europe.

The pattern of trade which responded to the enlarged world economy was both
legitimate and illegitimate. While trade between Europe and the Fat East, the West
Indies and the American consisted of commodities, that between West and East
Africa and the West Indies and the Americas consisted of slaves. The Far East
exported species, cloth; East Africa exported spices, rhinoceros horns, elephant
tusks and slaves; West Africa exported slaves in exchange for beads, bangles, cloth
and other ornaments; the West Indies and the Americans exported to Europe
commodities produced by slave labour; gold, cotton, tobacco, sugar and rum. Trade
between Europe, West Africa and the America are also called the Great Trade
Triangle.

This implies that overseas trade developed after the voyages of exploration gave to
Western Europe necessary resources for the development of the Industrial
Revolution and industrial capitalism. The Industrial Revolution, with its
tremendous economic and socio-political impact on the world was preceded by
about two and half centuries of trade between England, Africa, the Far East and the
New World (the West Indies, the Americas and Australasia). The period between
1500 and 1760s is generally referred to as the period of primitive accumulation

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necessary for the economic take-off of England in particular (the first industrial
nation) and Western Europe in general.

Primitive accumulation of the pre-industrial era took three forms: First, the sale of
slaves. By the early eighteenth century, male salves fetched about $15 each in the
West Indies and up to $40 on the American mainland. Second, the exploitation of
slave labor. Slaves produces valuable commodities without wages. The products
they produced in the West Indies and the Americas became industrial raw materials
and consumer goods in Europe. Rodney (1972) links slave trade to the
establishment of firms, insurance and banking houses in England. The mercantile
trade was a major source of capital for the development of the industrial revolution
and industrial capitalism. Third, the destruction of craftsmen and serfs on whose
ruins stood the pillars of capitalist production and exploitation.

Emphasizing the impact that overseas trade had on the New World and Europe, Karl
Marx wrote: “The discovery of the Americas, the rounding of the Cape, opened up
fresh ground for the rising bourgeoisie. The East Indian and Chinese markets, the
colonization of America, trade with colonies, the increase in the means of exchange
and in commodities generally, gave to commerce, to navigation, to industry and
impulse never known before, and thereby to revolutionary element in tottering
feudal society industry under which industrial production was monopolized by
closed guilds, now no longer sufficed for the growing wants of the new markets.
“The manufacturing system took its place”.

During the period under discussion and owing to improvements in transportation

we see the emergence of a global economy. All the continents were connected in
commerce and production. We also observe rediments of an unfair world economic
system whereby some countries export human labour and primary commodities,
while others export high value industrial products. These are the crucial causal

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factors of the development of underdevelopment which intensifies during the era of
industrial capitalism.

2.4 The Industrial Revolution and the Global Economy; 1760s – 1900

Although capitalism in commerce and agriculture emerged since the 16 th century, it

was the Industrial Revolution, which intensified it, developing through pre-
monopoly phase to monopoly phase or imperialism. Starting in England around the
mid-18th century, then spreading to continental Europe and America, the Industrial
Revolution intensified the process of globalization of the world economy. Further
development of capitalism which was facilitated by industrialization led to
imperialism, which is political annexation of overseas territories for the purpose of
protecting markets.

Beginning mid-19th century, developments in industrial technology enabled Europe

to produce in excess of internal markets. The need for external markets arose.
European nations competed for foreign markets in Africa, Asia and Latin America.
Cutthroat competition for markets in Africa, and particularly in West Africa, nearly
caused wars between imperialist nations. In order to avoid war, the Berlin
Conference (1884/5) was called to divide Africa among imperialist nations: Britain,
Germany, France, Portugal, Spain and Italy.

Imperialism added another dimension to globalization; which is political

domination of overseas territories so as to exercise economic monopoly. Imperialist
nations were able to obtain cheap industrial raw materials and food from their
colonies. They had also ready markets for their products. Imperialism marked the
beginning of the international division of labour whereby metropolitan countries
specialized in industrial production and colonies specialized in the production of
industrial raw materials, a system which still exists today. In the past fifty years,

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and particularly since 1960 (the year of Africa’s independence). Third world
countries have been attempting to readjust this system of unequal exchange. In the
1960s, development theoreticians identified dependency relations of colonialism
and neo-colonialism as the cause of the process which led and perpetuated
underdevelopment. That is, in the process of their development, developed
countries created under development in the periphery (colonies, dependencies and
neo-colonies).

We can conclude by stating that the industrial Revolution facilitated the

development of capitalism from pre-monopoly (free markets, free competition)
stage to monopoly stage. During its monopoly phase, capitalism added political
occupation and domination of overseas territories. The world was ruled by one
ideology; capitalism. Capitalism has as its ethic, individualism.

2.5 Globalization during the Cold War

The great October Revolution of 1917 in Russia ushered in a new era regarding the
world economic and political system. In 1917, under the leadership of V.1. Lenin,
Russia achieved the first socialist revolution in the world. Capitalist and feudal
property was nationalized and a state managed economy was established.

The Great October Revolution of 1917 divided the world into two contending
ideological camps, capitalism and socialism under the leadership of the United
States of America and the Soviet Union respectively. The process of integration of
the world which had been set in motion by monopoly capitalism was interfered
with. The unified world market which was necessary for the very survival of
monopoly capitalism was split.

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Third World countries, suspicious of the consequences of the hostile relations of the
two camps, formed the Non-Aligned Movement. Non-Alignment helped them to
benefit from trade with and aid from both camps. Most Third World countries
maintained their economic links with the capitalist cap. Although the socialist camp
had supported their struggles for independence morally and materially, after
independence African countries did not bread economic links with their former
colonizers.

2.6 Globalization after the collapse of the communist states

Globalization as a process of integration or internationalization has benefited

tremendously from the collapse of communist states. Such benefit is in the
following sense. First, the world is in the process of economic integration guided by
the capitalist model of development. Former communist states are in different
stages of building capitalist economic. They are in a process of reverse transition
from socialism/communism to capitalism which has no historical precedence or
experience. The only transition they know is that from capitalism to
socialism/communism. The current transition is guided by capitalist institutions
and personnel. Second, globalization benefits from the process of creating a single
ideology, capitalism.

Ideological conformity or unity is a tool in the creation of an integrated world

economy and culture. Third, globalization has inbuilt interplay of power relations.
The Late President Benjamin Mkapa argues that globalization is driven by “power to
determine the framework and rules of the game; political and military power to
pursue national goals unilaterally if necessary; and power to influence other” (ibid:
102).

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The collapse of communist states, the disintegration of the Soviet Union and the
dismantling of the Warsaw Pact, have left the United States of America and its allies
as the sole world power which does not need to argue in order to impose its will.
Developing countries have no protection against arbitrary use of power by western
countries, Negotiation with such countries are the main tool in international
economic relations. We need to negotiate commodity prices, trade agreements, the
cost of technology transfer et cetera.

3. THE CURRENT STATE OF GLOBALISATION

It is the current state of globalization, particularly its challenges and threats to poor
countries which has made it topical and attract a hot debate among its supporters
and opponents both in developed and developing countries.
This is not to suggest that globalization has no benefits. Globalization has benefits
but to the developing countries it may mean outright marginalization.

3.1 Positive Elements of globalization

 Increased flow of goods and services between nations due to reduction in

trade restrictions. This has been facilitated by economic and trade
liberalization policies. In developing countries, a reversal of the 1970s –
1980s economic hardships has occurred. Now shops are full of goods while
the majority of people have empty pockets. This means, the flow of goods
does not correspond to growth of the economies. Availability of goods in an
incentive to production.

 Globalization of markets facilitated by the reduction in restrictions has

enabled some developing countries to increase their imports and exports.
Efficient communications and falling transportation costs have been added

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 facilitatory factory (Wangwe and Musonda, 2002). East Asian and some Latin
American countries offer an example of countries which have taken
advantage of the opportunities and benefits provided by globalization.

 Development of financial markets has been another feature. Wangwe and

Musonda record that in 1998, the daily volume of capital flows throughout
the world stood at USD 1 trillion. But of course the financial flows are mainly
between developed economies and between them and Eastern European
transitional economics, South East Asia and Latin America. For example
Wangwe (2002) records that although Foreign Direct Investment (IFD) flows
to Africa rose from USD 8 billion in 1998 to USD 10 billion in 1999,
investment by Transnational Corporatisions (TNCs) into the continent sill
represents only 1.2% of global FDI flows and just %% of total FDI into all
developing countries (p.4), the continent is not attractive to investors owing
to political turmoil, economic instability, diseases and natural disasters
(UNCTAD, 1999, cited by Wangwe, ibid).

 Globalization has facilitated the flow of technologies between nations. The

Information and Communication Technology (ICT) revolution has made
tremendous contribution to virtually all facets of our lives. It has facilitated
the globalization of capital and financial markets, goods markets, specific
labour markets and information and knowledge markets (Wangwe and
Musonda, 2002:60).

3.2 Negative impacts of globalization on developing countries

 We should be aware that globalization is a capitalist, profit-motivated system.

Further, capitalism is not sympathetic with the poor. The tendency of
capitalism is to reap profits (even super profits) and not do distribute and
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 empower the poor. The internationalization of capitalism only provides wider
avenues for developed countries to exploit the poor. Socialist planning was
put in place to counter the inherent problem of capitalism to allocate
resources in favour of those who have. The collapse of socialist/communist
regimes was obvious: allocation of resources to non-directly productive
sectors (social services to achieve equity) denied productive sectors
necessary resources. And you can only distribute what you have produced.
Hence the technological stagnation and economic crises and consequent
social upheavals which led to the collapse of the system.

Specific negative impacts of globalization at the local level relate to:

 Because of differential capacity to gain benefits and to build negative impacts,

in a fact globalization has tended to widen the gap between rich and poor
countries, between poor countries in various regions and the rich within
nations. Class differentiation is the cause of political instability, social crisis
and social instability. Increase in crime, particularly its violent version, is
both symptomatic an consequential upon class differentiation.

 Globalization in the developing countries takes the form of pre-monopoly

capitalism in the short-run. But in the long run, monopoly capitalism will be
reached whereby small firms will be unable to compete with big firms. This
will inevitably lead to combinations (small firms forming partnerships, small
firms being bought by large firms, and some small firms being liquidated for
lack of buyers). This will have the negative consequence of emiseration of
those who in the process will lose their jobs or capital.

 In the sphere of trade, globalization has led to a rapid increase in importers

and exporters. Although economic liberalization restricts government form

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 direct intervention in the economy or direct economic management and
explosion of traders, local and foreign, genuine and crooks, has increased the
roles of the state: regulatory, supervisory, control and facilitatory.

The escalation of traders does not match with the knowledge – based capacity
of state officials to fulfill the above roles. As a result, countries such as
Tanzania re-flooded with substandard, health risk goods.

 In the political sphere, globalization fostered governance and democracy has

led to authority crisis the world over. Power of states has declined as states
find it increasingly difficult to control the flow of ideas, money, goods, drugs,
crime, pollution and people crossing borders. Authority is undergoing
disaggregation on a world wide scale. Local communities and groups are
acquiring greater autonomy. (Rosenau, 2003). Skilful people, the
proliferation of organizations and mobility upheaval of organizations add to
the burden of controlling power of states.

 The sphere of culture has been very negatively affected by the ICT revolution.
Foreign cultural influences have negatively influenced our traditions, ethical
and moral standards. The youth are the most affected as they uncritically
emulate dress designs and styles, foreign dances, foreign music, consumption
haloits, etc. Local elites are prone to conspicuous consumption not seen even
in developed countries. Meagre foreign currency is siphoned to import
luxuries which do not add anything tangible to national economics but which
reduce internal capacity for investment.

4. WHICH WAY FORWARD

Globalisation is a necessary evil which cannot be ignored or abandoned.

Globalization offers opportunities and threats. We have to develop skills to enable
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us to take advantage of the opportunities it offers and confront the threats it poses.
During the hey advantage of the opportunities it offers and confront the threats it
poses.
During the heyday of dependency theories (1980s), one prescription was
disengagement from exploitative centre-periphery relations. The method was the
building of industrial bases in the periphery (Third World), so that we consume
what we produce. Producing what we do not consume (industrial raw materials
introduced by centre of metropolitan countries) was the cause of exploitation and
under development.

Hardly any country disengaged from economic and trade relations established by
the colonial capitalist mode of production. It would have been suicidal. Import
substitution industrial strategy attempted by some Third World countries including
Tanzania failed. The Government of Tanzania is in a painful process of privatization
of long closed down factories/industries established in the implementation of
import substitution industrial strategy. This is an era of constructive
engagement/coexistence and not withdrawal. Our ability to adapt globalization to
our advantage rests on the principle that we are not victims but disadvantaged
participants in an unfair system of exchange. In a system where there is freedom of
entry, there is also freedom of exit. Any system, no matter how unfair creates
room for manoeuvre.

How do we manoeuvre in this system of unequal economic and political relations?

First, we must identify our interests. We must put national interests ahead of
personal and other interests. We need to have patriotism, initiative and
commitment/dedication. If one examines our dealings with other countries or
corporations, one realized that patriotism is at very low ebb. Seif-centeredness and
personal interests override all other interests. Corruption in trade (important

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export) tax collection, contracts, tenders and other transactions is caused by self-
interest overriding national interest.

Secondly we ought to plan our strategies and tactics on the basis of the identified
national interests. We should effectively utilize all opportunities in which we have
an advantage over others; for example in tourism, fisheries, minerals, harbours and
ports etc.

Third by developing collective self-reliance through regional cooperation (e.g. SADC,

East African Community, etc) and South Cooperation.

Fourthly, by investing in science and technology (S & T), promoting exports,

particularly of non-traditional crops, promoting savings among of the people, and
the government maintaining “macroeconomic balance and ensuring the provision
and maintenance of basic infrastructure” (Arkadie, 2002;49-50).

Fifthly, we should increase our negotiation capability. World trade is conducted

through contracts. Development countries have highly trained and experienced
negotiators of contracts with clearly identified interests. Most of the time our
negotiators lack requisite training experience, seriousness and patriotism. They can
easily be lured by token bribes.

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5. CONCLUSION

We have argued that globalisation as a process of integration and

internationalization is a historical phenomenon whose speed and intensity has been
determined by the level of technology progress. Developments in ICT have made
the world become a “global village” with each country needing others. We have also
noted that in the world of political and economic relations there is no fair play, with
poor countries facing the risk of marginalization. But patriotism, initiative and
commitment among people in poor countries can convert threats posed by
globalization into opportunities.

Some of the socio-cultural impacts of globalization which are very easy to notice can
be controlled by conscious and responsible organs concerned, for example the
media, censorship boards etc. we cannot blame developments in ICT because of
their abuse by irresponsible people and organs. Cultural imperialism has been there
since the advent of colonialism but it has been enhanced by globalization in the era
of ICT revolution.

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REFERENCES

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Globalisation: The African Case, Dar es Salaam: Mkuki na Nyota Publishers.

2. Mkapa, B.W. “Statement at the Launching of the National Dialogue on the

Social Dimension of Globalisation, “Golden Tulip Hotel, Dar es Salaam, 19
August, 2002.

3. ESRF/REPOA, “globalization: A Conceptual outlook”, Golden Tulip, [Link].

4. Wangwe, S.M. (2002). “The Social Dimension of Globalisation: Main issues of

Concern to Tanzania”, Golden Tulip Hotel, [Link].

5. Kimit, P.P, “National Dialogue on Social Dimension of Globalisation”, Golden

Tulip Hotel, [Link].

6. Kapinga, D.S. (1983), Development Studies: A Reader, IDS, UDSM.

7. Mbilinyi, Marjorie (2000), “Budgets, Debt Relief and Globalisation. Third

World Network Africa, Accra-North, Ghana.

8. Davies, Rob (2000), “Perspectives on Globalisation and regionalization: A

View from South Africa, “In: Othman, Haroub, Reflections on Leadership in
Africa: Forty Years After Independence, Dar es Salaam: I.D.S.

9. Rosenan, James, N. “Globalisation and Governance: Bleak Prospects for

Sustainability,” In: International Politics and Society, Vol. 3, 2003.

10. Kent, Bruce (1991), Building the Global Villages, Glasgow: Harper Collins.

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