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How the industrial revolution in Europe effected Africa
Globalization and its impact on contemporary African Society
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While Kenya was definitely one of the leaders in the race towards globalization in Africa, their progression forward was plagued with stops and starts that put them at a disadvantage. It was actually not until 1993 that Kenya fully integrated itself into the global market1. As Africa gained full independence from its colonial masters, “the global trading system remained highly inefficient, with advanced economies drawing on their technological edge to enjoy tremendous market powers: monopoly or oligopoly on the supply side, and monopsony or oligopsony on the demand side (Blue Hippo).” Due to the inefficiency of the system it was even more difficult for Kenya to gain ground in the global economy and thus their economy became impaired which in turn negatively impacted the evolution of their labor market.
Globalization
To fully understand the impact of globalization on the Kenya labor market, it is crucial to illustrate what globalization is. According to the International Monetary Fund (IMF), globalization is “is the integration of economies throughout the world through trade, financial flows, the exchange of technology and information, and the movement of people (IMF).” This increased in integration and interdependence has created a complex link between the world economies which has in in turn increased each member’s reliance on the global economy. This has greatly improved the investment portfolios of business and individuals alike. With the new cross-border opportunities countries are continuing to see larger and larger amounts of their GDP coming from international trade2.
Historical View of Kenyan Economy
Once Kenya gained its independence from Britain in 1963 its economy began to bloom during the period of 1964-1980. At...
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...“allowed trade unions to seek full compensation for price increases without hindrance through wage guidelines (essay).” Due to the aforementioned there was an increase in real wages in the private and public sector.
Following the institution of the 1990s trade reforms it was obvious that competition had increased and the current employment levels were too high. Following the laws had to be amended which would give employers the power to terminate employees easier. This occurred as a result of firms saying that it was necessary that they have the power to “restructure their operations in response to economic adjustment taking place in the country (Essay).” It was a system quite similar to employment at will in the United States. Instead of notifying the minister to labor when they terminate an employee, they only have to notify the district or regional labor office.
European imperialism in Africa caused Africans to lose their independence and culture. After a long time, “the wave of Independence across Africa in the 1950s and 1960s brought to the end around 75
Rodney, Walter, A.M Babu, and Vincent Harding. How Europe Underdeveloped Africa. Washington, D.C.: Howard UP, 1981. Print.
Priscilla. “The World Economy and Africa.” JSpivey – Home – Wikispaces. 2010. 29 January 2010. .
“The sun never sets on the British Empire,” Great Britain often bragged. By 1914, about 85% of the earth’s surface was colonized by Europe. Between 1884 and 1885, The Berlin Conference took place to carve up the African continent (Background Essay). Europeans saw high potential in Africa and thought the continent was empty, even though it was not. It was roughly “untouched” and they thought they could do anything they wanted (Doc.1). Great Britain’s colonization in Kenya affected the country’s religion and culture, education, and government.
These results change or modify political organizations to be suitable for the needs of global capital. Regions and nations are encouraged to import and export of goods from other parts of the world rather than supplying or manufacturing them in their own homeland. Thus, seeking expensive manufactured supplies or goods from third world countries to import them to the first world corporation’s injunction with the free trade zones of globalization (Ravelli and Webber, 2015). These negotiations raises new organizations, for example, the World Trade Organization (WTO) to aid and supervise both countries to for a legalized trade. However, Neoliberalism amplifies the negative aspects of globalization’s effect on the economy. For example, deregulation, decrease of government benefits, and tax modifications (Bunjun, 2014). Nevertheless, relating these negative aspects to the documentary Made in L.A. (Carracedo, 2007) which is the main issue of increased risk of employment for both the first world and third world countries. In regards to, a switch from full time stable and secure jobs to part time unstable and insecure jobs. This reduces career growth for many employees, which they recognize, and thus switch jobs – where as they may not fit as well (Bunjun, 2014). As a result, globalization causes market inefficiency via labor market segregation and exploitation, unemployment and underemployment, unequal access to employment (Bunjun,
When Margaret Thatcher became Prime Minister the first thing she wanted to do was limit union power. She felt that union power applied to nationalized industrial monopolies resulted in poor service at exorbitant cost to the taxpayers. She pointed to inefficient work practices, overemployment and restrictive employment conditions such as the all union “closed shop”. These rules were dictated by union contracts and served to tie the hands of managers and the government alike. Mrs. Thatcher’s greatest grievance concerned the powers union leaders had over strikes ( Moskin 100).
The development of free-market economics has, since the 18th century, resulted in the spread of a set of ideas, creeds and practices all over the developed and much of the developing world. Today, the globalisation of trade, capital, technology and innovation has accelerated competitive conditions for businesses all over the world. Globalisation may be defined as the opening of markets to the forces of neoliberalism and capitalism; it is characterised by the free movement of people, talent, skills, capital (intellectual, social and economic) across international borders. All kinds of barriers have either been swept away, diffused or made obsolete by the forces of globalisation: trade barriers, subsidies, geographical boundaries, linguistic and cultural differences. Technological advancements have pulled the world closer and, in the process, affected how labour relations and worker/employer relations operate and develop. The multinational corporation as well as the public sector alike are affected by global competition.
The main source of income for Kenya comes from agriculture. Coffee and tea are the most valuable crops. Together they account for approximately 50 per cent of all forigien exchange earnings. Because of the rapidly growing population, Kenya now imports large quantities of food, praticularly wheat. Unemployment is high. Expecally in the urban areas.
Globalization in its most technical form refers to the lowering of economic and trade barriers between nations, which results in increasing international trade as well as reducing costs through allowing for resource use efficiency (Stiglitz, 2002). Under this model of globalization, the main focus is on economic gain, including the promise of poverty reduction or elimination and other significant social and economic gains (Stiglitz, 2002). Of course, this promise of economic improvement through globalization is not fully delivered on; many countries, particularly developing countries, have actually had losses in their positions through globalization, particularly forced economic globalization (Stiglitz, 2002). However, other
The laws and regulations surrounding Industrial Relations since the 1900’s have, at each reform, placed tighter constraints on the amount of power unions are able to exert. The reforms have also radically increased managerial prerogative, through an increased use of individual bargaining, contracts and restrictions imposed on unions (Bray and Waring, 2006). Bray and W...
Globalisation goes back as far as the era before the First World War. During that time globalisation’s general tendencies produced a very uneven pattern of global economic development, exposing the limits of global economic integration. For example, the integration of the African economy into the capitalist economy is part of the globalising tendencies of capitalism.
Traditional literature in the field of labor relations has focused immensely on its benefit towards the employer and in the process equating it to working rules. This has been so despite the field being expected to cover the process of, labor management, union formation, and collective bargain; all which are anticipated to create a positive employer-employee relationship. This relationship is said to be positive if there exist a balance between employment functions and the rights of the laborer. Also important to note, is that this relation is equally important to the public sector as it is to the private one. Therefore, to ensure a mutually conducive labor environment exists, effective labor management process and inclusive negotiation program should be adopted (Mulve 2006; Walton, 2008).
On attaining independence in 1963, the inaugural Kenya government identified poverty illiteracy, disease and unemployment as the most debilitating of challenges facing the country. Almost five decades later, despite numerous policy efforts, these challenges continue to enslave many Kenyans. The situation is even more debilitating when one is a youth. According to the Kenya Integrated Household Budget Survey , approximately 67 per cent of the unemployed in the country are youth.
...tries. These ideas were discussed in lecture on February 16th, 2011, as well as explored in Manfred B. Steger's, Globalization: A Very Short Introduction, and I.B. Logan and Kidane Mengisteab's article, "IMF – World Bank Adjustment and Structural Transformation in Sub-Saharan Africa." Instead of globalization as a positive system for SSA, it did the opposite, and made the region stagnant in economic terms. It was about expanding relationships among countries, but adjustments were creating barriers that prevented SSA from economic communications with other countries. Therefore, it contributed to colonialism after World War II; colonial powers were able to indirectly control what SSA could do, and whom they were able to contact. The World Bank as a financial institution affected SSA's economic industry, and was partly responsible for the control colonial powers had.
Globalization’s history is extremely diversified and began during the beginning of civilization. Now we live in a world that is constantly evolving, demanding people to use resources in locations that are very difficult to obtain certain resources. This could make it completely impossible to operate in these specific parts of the world. However, globalization allows people across the world to acquire much needed resources. Globalization creates the opportunity for businesses to take advantage and exploit the ability to take part of their business to a different country. Nevertheless, globalization is part of today’s society and will be involved in virtually all situations.