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is defined as the increasing process of interdependence and
interconnectedness between different political, social and economic
components of theworld. It is the way in which the world in seen as the
global village. Globalization becomes a worldwide system asit integrates
people across national boarders, making the world operate as a village
and therefore enablingfree movement of goods, capital and information.
is a result of man’s progressive nature of change. It can be traced far
back from the 16th C – the period when European traders and sailors
interfiled overseas trade through mercantilism. From the 16th C
on-wards, the shape of global migration was transformed by the Europeans
and Americans. The first great wave of the early modern migrations
involved forced movements of the Trans-Atlantic Slave Trade which
shifted about 9-12 million people. By the mid-19th century, this trade
linked West Africa with the external world through enslaving Africans.
integration became more pronounced during the Second World War. The
Europeans economies in the 1950’s and 1960’s drove a renewed epoch of
global migration that that turned Europeans interest to overseas nations
where they were thought to be acheap source of wealth, despite the oil
shocks of 1970’s and the closure of many Europeans peripheries.
Concept and Aspects of Globalization
Explain the concept and aspects of globalization
the1970’s, the wave of migration wasenormous. Labour added the new
pattern of regional migration within Africa, Latin America and East
Asia. However, from the 1990’s, migration intheglobal society has been
intense, due to the advancement of science and technology, crisis’sand
disintegration in the developing world. The interconnectedness has led
tothe development of the communication technology and space
  • 1. Advances in Science and Technology.The
    development of science and technology has contributed greatly to the
    development of global interconnectedness, interactivity and the
    integration of the world societies into asingle global village. Through
    science and technology, machines which simplify human activities like
    communication have been developed. The development of science and
    technology marked the initial stage of integration of people from far
    distances. Education process marked the point of no return towards the
    integration of different people from different nations and cultures in
    the world. From the 20th C, revolutionized education marked the
    intensive integration of people in universities, colleges and
    international conferences. Through interaction and integration, most
    people have adopted culture from other people and thus the beginning of
    cultural liberalization.
  • 2. Socio – political liberalization.Liberalization
    was derived from the liberal democratic principle. Liberalists believed
    that the freedom of an individual is the main principle of life that
    people are supposed to have. The freedom of individual has fostered the
    development of globalization in the world. Social liberalization is
    widespread due to the advancement of information and communication
    technologies like television, e-mail, cellular phones and the internet.
  • Political integration of politics
    in the global scale has fostered the development of globalization.
    National governments have been ultimately responsible for maintaining
    the security and economic welfare of their citizens as well as the
    protection of human rights and security of the world. Political
    activities increasingly take place, from national to global
    level.Examples includedemocratization process, multiparty democracy,
    formation of NGOs and Civil society Organizations (CSO).
Globalization as a economic, political and social phenomena is associated with the following major aspects:
  1. Information and Communication Technology.
    Globalization is characterized by the advancement of information and
    communication technology. This sector expanded drastically within the
    last few years, specificallythe last quarter of the twentieth century.
    This period witnessed the global distribution of media images through
    computers, screens, radio, newspapers, televisions and mobile phones.
    Development of information and technology goes hand-in-handwith the rise
    of information companies such as Microsoft, Intel, Compaq and Cisco.
    The rise of these companies indicates the quick advancement of
  2. Movement of People. There has been
    an increase in the movement of people from one country to another. These
    may betourists, migrants, refugees, business travelers and diplomats.
    Most migrations occur between developing countries and developed
    countries. There is also a flow of migrants to developedeconomies from
    developingcountries, making the world more interconnected.
  3. Spread of Ideas and Ideology.
    Spread of knowledge, ideas, information and ideologies has been
    anintegral aspect of globalization. This may be different physical
    capital, technical skills andproduction methods, managerial skills,
    marketing skills and global economic policies. The concept of multiparty
    and green peace areexamples of political ideologies that have acquired
    international dominance.
  4. Finance. There is a
    global flow of money often driven by the interconnected currency market
    stock exchange, as well ascommodity markets. The flow of money is also
    facilitated by international financial institutions such as the IMF and
    World Bank, assisted by multilateral Banks which have branches in almost
    every part of the world. Thus, this flow allows for smooth money
    transaction all over the world.
  5. The Rise of Intellectual Property.This refers to items includingpatents, copyrighted movies, compacts discs, advertisements and financial services.
  6. Free Market Economy.
    Globalization has brought about the integration of an international
    political economy through inter-financial institution policies and
    international trade. Free market (Neo liberalism) has become a dominant
    economic ideology inthe world. The price is determined by the market.
  7. The Structural Adjustment Program (SAP).SAP
    refers to the list of budgetary and policy changes required by the
    International Monetary Fund (IMF) and World Bank (WB) for developing
    countries to qualify and apply for a loan. This conditions typically
    include reducing barriers to trade and capital flows, tax increases and
    cuts in government expenditure. All sub – Saharan African countries
    south of the Sahara including those in east, central and southern Africa
    – excluding the Republic of South African – were obliged to adopt the
    policy to solve the international problems and reduce the heavy debt
    burden that seemed to increase rapidly between 1970s and 1980s.
Objectives of (SAP)
  1. To introduce tax reforms and eliminate quantitative restrictions in the trade sector.
  2. To rationalize the public sector and enhance employment opportunities.
  3. To improve the public investment program.
  4. To introduce agricultural sector reforms, market liberalization and institutional reform.
  5. To improve sectoral resource allocations, mobilize domestic resources and restore growth ofthe economy.
  6. To devalue local currency as a means of monitoringexchange rates and therefore balance the domestic currency price.
  7. To reduce poverty by improving the living standards of people in lesser developed countries.
Reasons for Structural Adjustment Program Formation
  • The GDP declined by nearly 20%. In 1987, it dropped by 4.7%.
  • Export earnings fell by about 40%in 1986. In 1987, it continued to decline due to price falls in the World market.
  • Import purchases fell by about 40% from 1981 to 1985, due to the presence of tariffs.
in all, eventssuch as theworld economic crisis, the oil shock of the
1970’s, the Kagera war and failure of the government to provide social
services were among other factors thatnecessitatedTanzania’s adaptation
of SAP as part of their economic recovery efforts.
Principles of SAP
  • Elimination
    of tariffs, reduction of taxes and promotion of the role of private
    operation in export trade, as well asliberation of domestic retail and
    whole world sale trade (in final goods and capital).
  • Lowering
    explicit and implicit taxes on the agricultural sector, raising real
    producer prices while reducing subsistence taxes on imports and
    liberalization of export crop marketing.
  • Removing restrictions on collective reforms and wage setting practices in order to attain better life of people in the LDC‟s.59
  • Parastatal
    privatization and reform programs, financial sector reforms, and
    improving public sector management through civil service reforms, all
    intended to consolidate and ensure effective performance in trade sales
    and joint ventures.
  • Governments to withdraw from providing free
    education and agricultural incentives. Instead cost sharing to be
    implanted in all social services.
  • The agricultural sector to be privatized to minimize government expenditures on it.
Achievements of SAP
  1. The
    formation of adjustment programs and policies with the intention of
    economic sustainability, efficiency and growth has raised the living
    standards of people in their respective countries through the
    privatization policy.
  2. Agricultural productions, exports, investments and consumption witnessed increases in strong reformed countries.
  3. The
    average annual export growth rates rose by 5 – 6 percent in strong
    reforms and only by about half ½ % as much in non- reforming countries
    from the early 1980s to 1985 – 1987.
  4. The invest performance
    improved mostly in strong reforms, while it went up slowly in non –
    reforming countries, in years between 1980 – 1984 and 1985 – 1987.
  5. The
    increase in the growth rates on real consumptions in 1986 and 1987
    compared to 1980 – 1984, has been three times as great in reforming
  6. Exchange rates grew in some of African countries, for example, Nigeria in 1980 – 1984, prices and exchange rate was 86%.
  7. Today,
    people have a choice on commodities. They have the ability to choose
    what to buy and at what cost. It is different from previous situations;
    when people were buying only what was available in themarket without
    choice. For example, all Tanzanians can buy sugar from Mtibwa, Kagera or
    Kilombero. People have a choice on the kind of commodity, the price and
    quality of items to buy. This is due to privatization which allows
    different companies to engage in business of the same kind.
  8. No
    more bureaucracy. Before SAP establishment in Tanzania, there was
    bureaucracy in offices that provide public services such as banks,
    posts, telecommunication, transport, etc. But with SAP, bureaucratic
    actions in offices have ceased as a good number of companies are
    engaging in the same business and therefore competing for customers.
    This has allowed thecustomer to be attended effectively. With SAP, it is
    “customer first” practice.
  9. Politically, SAP has made many third
    world countries democratic. Among SAP conditions, good governance is
    insisted. Therefore, people have freedom of speech, decision making and
    accountable in their development. This has been made possible through
    multi-partyism process which intends to alloweveryone topractice
    democracy by participating in decision making for the betterment of
    their country.
Failures of SAP
  1. SAP
    has failed to implement most of its objectives and principles to the
    developing countries and instead it accelerated the rate of poverty in
    rural areas. This has come about due to the fall of the agricultural
    sector which acts as the back bone of most developing countries.
  2. Economic
    diversification is still low due to instability ofeconomis in which the
    capital earned per year tends to be directed in different
    socio-economic issues.
  3. Export capital and investment capital ratio still low in developing countries, especially in Sub-Saharan African countries.
  4. Agricultural and industrial products are still unsatisfactorily produced due to improper investment and inadequate technology.
  5. SAP
    has destructed local industries. This is due to theborder-less policy
    which allows regional and international companies to pour their
    commodities into the market. This has increased theavailability of
    commodities produced and reduced their price,compared to local
    industryprices. Therefore, the low price of commodities in the market
    hasresulted in the failure oflocal industries to tradeeffectively.
    Theyproduce at high cost and sell at high cost which result in a
    decrease inmarket and makes industries fail to continue producing the
  6. SAP has brought about user fee or cost sharing.
    This has made poor people fail to get services. For example, user fees
    have made people fail to get medication at hospitals. Also, it has made
    students fail to continue with their studies. This is more evident at
    tertiary level where students aregiven 40%, 60%, 20% or 80% of the total
    cost by governments and demanded to pay the rest. This practice has
    made a good number of students unableto continue with their university
  7. SAP has stratified societies into “know and know not”.
    With SAP, people are making choices even in education. Poor parents fail
    to send their students to school while the rich send them to quality
    schools. The consequence of this is the creation of social classes of
    those who are knowledgeable andare obviously going to be decision makers
    and those who do not have knowledge andend up being poor.
  8. SAP
    has brought about chaos and crisis. With the introduction of multiparty
    democracy, many African countries are in chaos and conflict. The
    conflict is between the ruling and opposition party. This is evident in
    Zanzibar, Kenya, Burundi and Zimbabwe.
Possible Solution to Each of the Challenges
Propose possible solution to each of the challenges
  • State interventions:
    The state should act with regulatory framework. It should not control
    but where possible should intervene. The state should make the market
    friendly to all, i.e. buyers and sellers. Otherwise, without state
    interventions, the poor will remain poor and the rich became richer and
  • Priorities and preferences in privatization:
    Not all government institutions should be privatized. The government
    should have priorities on what to privatize and why. Otherwise ,
    privatize everything can lead to lack of sovereignty and imbalance in
    market; which in turn lead to failure of poor Tanzanians fail to get
    basic needs. This can be dangerous for the betterment if national
    security and development.
  • Human capital should be developed.
    More schools offering sound and appropriate education should be
    established. The curriculum should reflect SAP needs. This will make
    Tanzanians compete in global market.
  • Effective tax collection:
    With SAP conditionalities, the government provides investors with tax
    holidays. In order to make SAP to all stakeholders, no tax holiday is to
    be provided to any62investors. Tax holiday has made the government fail
    to collect revenue for development. Many investors have started making
    some manipulation of changing the names and ownership of the investment.
    Therefore, No tax holidays is to be offered unless otherwise there is a
    special circumstance to be offered for specific investment.
  • Local or internal industries should be provided with subsides:
    This will make the local industries to complete in the market.Also, Low
    Developed Countries (LDC‟s) should implement their integrations. They
    must produce and sell in their market rather than the current situation
    where every country is producing as its stake and selling in the world
    market at low price. Regional integration will make more market for the
    local products. By integration, it will be easy for LDC‟s to establish
    common more for the price of their products in the world market.
  • All in all,
    in order to fight out the failure or challenges of SAP , LDC‟s should
    have state interventions, priorities effective tax collection , develop
    human capital, internal effective resource mobilization, provide
    subsidies to local entrepreneurs integrations of LDC‟s , promote expert
    sectors, and make indigenous control their economy.
The Privatization Process
  1. Privatization
    refers to the policy of transferring assets and activities of public
    sector to the private sectors to be owned and operated by individuals.
  2. Privatization
    is one of the results of Structural Adjustment Programs which has been
    emphasized by the International Monetary Fund (IMF), (World Bank (WB)
    and donors from abroad, particularly Western countries like British,
    France, USA, Denmark, and Germany.The ongoing economic crises of
    developing countries and dependency syndrome of these countries are some
    of the factors that contributed to the formation of privatization.
  3. However,
    the policy started in 1980‟s and gained significance public notice at
    the global level during the same decade (1980‟s) when Britain‟s Prime
    Minister Margaret Thatcher took deliberate and extra efforts on economic
    sectors to restructure the prevailed condition in the country.
  4. Under
    the provisions of the World Bank, governments of developing countries
    began experimenting various forms of market reforms including increased
    privatization out of public63services. Under this situation, therefore,
    privatization gained wide spread interest and became an acceptable
    policy, to government policy makers, service providers as well as public
The Objectives of Privatization
  1. To create more market oriented economy where those privatized firms will participate in the stock market.
  2. To improve economy, productivity and efficiency of the privatized parastatals.
  3. To
    secure and enhance access to foreign markets, capital and technology
    through attracting managerial and technological foreign investors.
  4. To broaden and share ownership through the equal provision of public services at all levels by individuals and the state.
  5. To
    reduce the overwhelming and challenging increase of the public debt.
    This is done by collecting tax from the private investors and use part
    of the tax to service the foreign debt.
  6. To preserve the goal of self –reliance.
Measures taken to Enhance Privatization in Tanzania
  1. To improve the operational efficiency of enterprises and their contribution to the national economy.
  2. To reduce the burden of parastatal enterprises to depend on the government budget.
  3. To
    expand the role of the private sector in the economy and permit the
    government to concentrate on social services like health, education
  4. To encourage wider participation in ownership of private companies and management of business.
Advantages of Privatization
  1. It
    has increased flexibility due to the reduction of bureaucratic
    complexity and procedures in order to improve the national economy.
  2. It has increased efficiency in provision of goods and services due to the competitive spirit in production.
  3. Privatization
    has led to the improvement and rise of competition among the existing
    organizations, hence brought about better services.
  4. It has met
    the demands beyond the current government capacity. The private sectors
    encourage competitions which increase the level of productivity and
  5. Privatization provides clients with more choice of
    options where they can be more satisfied in terms of contracts, salaries
    and work conditions.
Disadvantages of Privatization
  • Privatization
    has increased unemployment of the indigenous people. This has been the
    case because most of the personnel are from outside. When any public
    enterprise is privatized, it is accompanied by massive redundancy of the
    previously local working personnel.
  • It has led to the fall in
    agricultural sector due to the withdrawal of the government from
    providing the agricultural incentives.- It has increased temptation to
    reduce quality of services in order to reduce costs and maximize profit.
  • Privatization
    increases the rate of moral erosion due to its policy of free trade.
    The private companies tend to import all types of goods without
    considering the consumers. Such goods include phonographs and other
    related firms or VCD/DVD which ruin the younger generation morally.
  • Privatization
    policy increases the rate of poverty to the people living in rural
    areas due to the decline in agricultural production. Rural people depend
    on agriculture for the better quality of their life.
(i) Trade liberation
liberation refers to the reduction of the tariffs and trade barriers to
permit more foreign competition and foreign investment in the economy.
It is a term which describes the complete or partial elimination of
trade barriers such as quotas and tariffs. Trade liberalization is
sometimes refers to as free trade. Free trade is the unhindered flow of
goods and services between countries, and is a name given to economic
policies and parties supporting increase in such trade. It is a market
model in which trade in goods and services between or within countries
flow unhindered by government –imposed restrictions. Restrictions to
trade include taxes and tariffs, and other non-tariff barriers, such as
legislation and quotas.
Free trade includes:
  • Trade of goods without taxes (including tariffs) or trade barriers (e.g., quotas on imports or subsides for producers).
  • Trade in services without taxes or other trade barriers.
  • The
    absence of trade-distorting policies (such as taxes, subsidies,
    regulations or laws) that give some firms, households or factors of
    production an advantage over others.
  • Free access to markets.
  • Free access to market information.
  • Inability of firms to distort markets through government – imposed monopoly or oligopoly power.
  • The free movement of labour between and within countries.
  • The free movement of capital between and within countries.
(j) Democratization Process
is associated with global political reforms under the Process called
democratization. The democratization process is assessed by looking at
the following principles.
  • Free and fair political competition:
    There is peaceful, free and fair competition between parties for the
    right to control the government. In order to control such
    competitiveness, there ought to be the following requirements. First,
    permanent party organization at the local and national level. No
    opposition party can exist without continuous and permanent struggle
    against the ruling party. The goals of these parties should not be
    linked with the personal interests of particular party leaders. Second
    there ought to be continuous contact at all levels of a given political
    party. Thirdly, there should be determination of party leaders to hold
    political office. Fourthly, there should be determination of the party
    to gain popular acceptance for its programmes. Fifthly, there must be
    constant search for more members. Such requirements can exist only in a
    multiparty system. Therefore, mono – party system cannot be democratic.
    It is a rejection of democracy and it leads to dictatorship.
  • Tolerance:
    This is the ability to bear with something unpleasant or annoying.
    Tanzania is a pluralist society. This means a society composed of
    different ethnics, racial and religious group.66In this society Africans
    form the majority, compared with the negligible non-African minority
    groups. The right of the small groups does not depend on the number of
    people in a group. The majority group has a duty to respect the
    convictions and ways of life of the minorities.
  • Citizen participation:
    participation is the major role of citizen in a democracy. It is both
    their right and duty. Citizenship participation includes standing for
    elections, debating issues, voting on elections, gathering for community
    meetings, joining parties and organization, protecting and ways of life
    of the minorities.
  • Equality: In a democracy
    all people are equal. This means people are valued equally. They have
    equal opportunities. No one is discriminated against. Moreover, groups
    are free to maintain their different cultures, personalities, languages
    and beliefs. When the majority deny rights to or destroy their
    opposition, they also destroy democracy. A democracy is enriched by
  • Accountability: In a democracy,
    elected and appointed officials ought to be accountable to the people.
    They must make decisions and perform their duties according to the
    wishes of the people, not for their own interest.
  • Smooth transfer of power:
    In democracy there is a well established and transparent system of
    transferring power from one political party to another.Economic freedom:
    In a democracy people must have economic freedom. This means that the
    Government allows people to own private property and businesses. People
    can chose what work to do and can join trade unions. There should be
    free markets. The state should not control the economy.
  • Control of power abuse:
    In a democracy, elected and public officials are prevented from
    misusing their powers. The most common form of power misuse is
    corruption. This occurs when officials use public funds for their own
    benefit, accept bribes in order to render services, or exercise power
    illegally. Protection against abuse of power has been achieved through
    various methods. For example, having independent courts with power to
    take action against corrupt officials, allowing for citizen in
    elections, and checking police abuse of power.
  • Inclusion of a bill of rights in the constitution:
    A bill of right is a list of rights and freedom guaranteed to all
    citizens in country. Many democracies include a bill of right because it
    limits67the power of government with good intention. It may also impose
    obligations to individuals and organizations.
  • The rule of law:
    In a democracy no one is above the law, not even an elected president.
    This is called the rule of law. It means every one must obey the law. If
    they violate it they must be held accountable or liable. Similarly the
    laws must be equally, fairly and consistently enforced.
  • Sovereignty:
    Only a sovereign nation can practice democracy. Sovereignty means the
    freedom to decide and execute domestic and foreign policies without
    interference from another country. Therefore a neo – colony cannot
    exercise true democracy. Neo-colonialism means the control of a weak
    country by a more powerful one. The subject country loses control of its
    destiny. The master nation controls both the domestic and foreign
    policies of the neo-colony. In other words, the weak country loses part
    of its sovereignty. It loses power and freedom to make its own
    decisions. It loses the ability to practice democracy too.
considering the above principles, any country in the world is
considered to be democratic if it abides with all or most of the
principles discussed above.
(k) Economic integration
integrations have been emphasized today due to globalization. Economic
integrations refer to the combination or grouping together of several
countries for the sake of cooperating in various undertakings to as to
enjoy economic benefits. It is aimed at increasing the benefits of
international trade and my result in political integration, which can be
national or inter-state.
Economic integration is classified according to the levels or stages of development as follows:
  1. A Free Trade Area:
    This is the type of integration whereby countries remove all trade
    barriers such as tariffs, imports and export quotas or devices, so as to
    trade freely among member countries but each member country maintains
    unilateral right to impose tariffs on goods from the rest of the world.
    (Non-member countries).
  2. A Custom Union: This is
    a stage at which, in addition to having abolished trade restriction
    among the member countries as in a free trade area, the members have a
    common tariff against non-members (third countries).
  3. A Common Market:
    In this stage, on top of what takes place in customs union, there is a
    free factor movement among the member countries. This means that capital
    and labour are free to move within the region. The nationals (people
    from member countries) can find employment in any member country. For
    example, in East Africa a person from Kenya can go to work in Uganda or
    Tanzania and one from Tanzania or Uganda can go to any other member
    country and work.
  4. An Economic Community (union):
    This embodies all elements of the common market; in addition the member
    countries institute joint ownership of certain enterprises like roads,
    railways and so on. All economic policies in this stage are harmonised
    or are common.
  5. Total Economic Integration: In
    this stage, not only there is free movement of commodities and other
    factors of production among the member states as in economic union, but
    also there is a unification of monetary, fiscal, social and other
    policies. The members can start using a common currency. In addition,
    there is a supra-national authority that makes decisions binding to all
    member countries.
Necessary Conditions for a Successfully Economic Integration
  • Good
    infrastructure In order for economic integration to be successfully
    countries in the region of integration must be having good
    infrastructures to facilitate movement of goods and people from one area
    to another.
  • Political will and commitment69For a regional
    integration to be successfully political leaders must be willing and
    committed to implement various resolutions that are made and to make
    necessary decisions for the betterment of the integration.
  • Common
    Language Common language among the people in the integration enables
    ease communication among the people in the region when they engage in
    socio-economic and political activities.- Common currency In order to
    smoothen exchange a common currency is very important in the
    integration, absence of a common currency makes exchange to be
  • Differentiated products Exchange cannot take place if
    countries produce similar products, each country specializing in a
    commodity of comparative advantage.
  • Trade gains For integration
    to be successfully each member country must be gaining from trade, if
    some member countries do not gain from trade or any economic activity
    then the integration will not be successfully.
  • Similar level of
    developmentIn order to reduce uneven distribution of gains among the
    member countries, countries should have similar level of economic
    development, if the levels of development are so wide, rich members will
    gain more than poor countries.
  • Member countries must be
    neighboursIt is easier for member countries to engage in economic
    activities and establish joint institutions when they are close
    neighbours in terms of geographical location than when they are located
    far distance from each other.
  • Cultural similaritiesCultural
    similarities facilitate interactions among the people in various
    economic activities such as trade and investments.
  • Trade
    creationTrade creation is said to occur when a country in an integration
    import goods from a low cost member country after abolition of tariffs
    which it was importing from a high cost non- member country.
Reasons for Economic Integration
The rationale behind economic integration in the world includes the following:
  • To
    expand the market among the member countries and attain a common voice
    on advocating the market for the goods of the member countries.
  • Another
    reason for economic integration is to establish good condition for
    industrial development among the member countries. This happens due to
    the fact that the removal of restrictions facilitates the movement of
    factors of production, distribution of products and fast spread of
    technology. Also duplication of industrial products is avoided when the
    countries decide to integration economically.
  • To promote
    transport and communication development for easy distribution of goods
    and services as well as facilitating information flow.
  • To
    intensify security, fraternity and unity among the countries, which have
    long been disunited and conflicting over various aspects, based on
    ethnic grounds.
  • To maintain peace and uphold the status of human
    rights among individuals of the member countries in order that
    democracy can prevail and discrimination of any kind can be brought to
    an end.
  • To promote comprehensive research activities on various
    areas that range from economic, social, political and environmental
  • Another reason for integration is to encourage
    diversification of the economies of the member countries following the
    expanded market and removal of trade restrictions. When countries decide
    to integrate various needs for various goods and services crop up
    leading to the need for producing a variety of goods and establishing
    various enterprises to cater for the increased needs.
  • Countries
    integrate so as to promote the capacity for rational or sustainable use
    of resources. This takes place after the advancement of science and
    technology in the member countries. In integration, people exchange
    ideas and experiences on how to better plan for sustainable use the
    available scarce but valuable resources.
  • To formulate common
    policies geared towards solving global problems like population
    explosion and migration, epidemic diseases like cholera, Ebola and
    HIV/AIDS, as well as environmental problems and challenges of
  • Economic integration also encourages heavy
    investment on the available resources. When countries integrate, they
    create confidence among the investors due to the fact that the market is
    expanded, peace and security are assured and the resources are easily
    available due to removal of restrictions or tariffs.
  • To promote
    the life standard among the member countries as a result of increased
    production, easy movement of goods and services and economic
  • To promote employment opportunities following
    the diversification of the economy and development of industries among
    the member countries.
  • Economic integration increases the
    opportunity to borrow from outside since it is easy to borrow as a
    community rather than a single country due to the fact that that the
    donor do not have high confidence on individual countries.
  • To promote the quality of production among the member countries through positive competition in the production process
  • To easily share common services such as Posts and Telecommunications, railways, airways, medical services etc
  • To
    stimulate smooth development of trade using a common currency and by
    removing tariffs. A common currency removes complications of converting
    currencies, which sometimes tends to be cumbersome and time-consuming
    leading to inefficiency and ineffectiveness in the commercial
  • Economic integration leads to political cooperation
    and sharing of ideas and experiences which in turn bring effectiveness
    in the production process and promotion of peace and security for smooth
    development proces
Disadvantages of Economic Integration
Economic integration has several disadvantages, which include the following:

  • Trade diversion: Low cost trade can be replaced by a high cost trade
    due to the geographical restrictions. A country can buy goods at a
    higher price than it is used to buy from another country, which are not
    members leading to the decline in profit or income generation. The other
    countries can start enjoying economic advantages in trade.
  • Movement
    of goods can be in one direction leaving other countries without goods.
    This can encourage the occurrence of polarized development in which
    some countries develop at a higher speed than other countries.
  • Countries
    may be compelled to buy goods of poor quality within the region
    especially if the level of technology is low. This is a great problem in
    African countries where there is low level of technology in many
    countries. Agricultural products, for example, tend to be very poor due
    to poor methods of cultivation and processing among the countries.
  • Because
    of uneven industrial development, one country which is more
    industrialized. In the East African Community, for example Kenya was
    developing faster and at the expense of Tanzania and Uganda because of
    more industries that made her keep on exporting manufactured goods of
    high quality.
  • Economic integration is usually associated with
    political problems, as some leaders tend to be in need of holding
    positions permanently so that they can keep on looting while in
  • Cultural disruptions, which tend to stifle cooperation
    among the members, can occur following the multiple interactions of
    people from different member countries. In East Africa for example, one
    can see deterioration of morals, and prevalence of other unwanted
    behavioural aspects.
  • It is difficult to harmonise the common external tariffs due to differences in the foreign policies.
  • Member countries tend to produce the same goods and hence forces to loom for market outside the region.
Factors that can Facilitate Economic Integration
  1. Strong
    determination among the states can lead to the fast pace of economic
    integration. This is due to the fact that when people are determined
    they tend to be ready to work very effectively for the purpose of
    bringing about common development.
  2. Language which functions as a
    unifying force can lead to fast economic integration. When people
    communicate intelligibly they easily exchange ideas and experience as a
    result they cooperate easily in solving common problems.
  3. Readiness
    to cooperate among the leaders of states also plays a great role in
    facilitating economic integration. This happens when some of the leaders
    are ready to relinquish some of the leaders are ready to relinquish
    some of their powers and work cooperatively.
  4. External influences
    also play a great role in integration. Some donors urge that they
    cannot provide assistance to individual countries since there can be
    misuse of fund provided. Also experiences of success in the integration
    from outside stimulate the need to integrate. For example, the EU has
    been a strong dynamo in stimulating the formation of the African Union
    (AU). Another external influence is related to the dynamics within the
    international trade. The existence of poor trading system and especially
    poor pricing in the world market make the developing countries join to
    have a stronger voice in bargaining for better prices and also to pave
    the way for the creation of the international market.
  5. Well-developed
    infrastructure can also expedite the pace of economic integration. If,
    for example, there is good transport and communication network the
    movement of goods and services as well as the flow of information takes
    place effectively.
  6. Where the countries exhibit positive economic
    performance can integrate very easily unlike the countries where there
    are poor records of economic performances. Usually the countries, which
    are very poor and have few resources, tend to take time to accept
    integration for fear of losing freedom to the stronger nations. In
    Africa for example many countries fear South Africa and Libya due to
    their stronger economics bases.
  7. Existence of peace and security
    in the countries, which intend to cooperate, can also hasten the pace of
    economic integration. Where there are political conflicts integration
    is not attained easily since people who are the major stakeholders of
    integrations ventures are usually restless and some run out of their
    countries of origin to other countries as refugees
  8. . Advanced
    level of technology can also act as dynamo for facilitating smooth
    economic integration because the cooperating nations produce high
    quality products which can attract market.
Constraints (setbacks) on Economic Integration in the Developing Countries
  1. Low
    Technology is one of the hindrances of economic integration. This slows
    down the industrial development among the member countries. Low
    technology leads to poor quality of product and hence low market for the
    products leading to poor income generation.
  2. Political
    instability characterized by wars and other problems disrupt peace and
    security and keep people restless such that they cannot settle and
    produce or interact effectively.
  3. Balkanization (division) of the
    states is another limitation. This leads to the poor cooperation in
    different economic aspects since people of one country tend to feel as
    different in status and belongingness from people of other countries.
  4. Poor
    infrastructure network like roads, railways make cooperation
    ineffective since movement of factors of production, as well as goods
    and services can take place effectively between member countries.
  5. High
    degree of poverty among the member countries weakness the cooperation.
    Because of poverty people fail to move from one country to another, they
    cannot invest properly in technology promotion and production of high
    quality goods, and efficient provision services.
  6. Problem of
    common market and the way the local markets operate do not allow for the
    positive cooperation among the member countries.
  7. The resources
    are not evenly distributed since some countries are naturally endowed
    with more resources than other member countries. This also leads to poor
    cooperation as some countries are not ready to share their resources
    with other countries, which lack such resources.
  8. Environmental
    predicaments (problems) like floods, such as those of Malawi and
    Mozambique; earthquakes, drought, diseases like EBOLA that hit Uganda,
    and the75HIV/AIDS pandemic disrupt cooperation due to the fact that
    people are not physically and psychologically settled and hence, cannot
    cooperate effectively.
  9. Cultural differences are also setbacks to
    economic integration. This is manifested through existence of many
    tribes, religions and political ideologies. With different cultural
    orientations people fail to easily reconcile their differences and work
    together smoothly.
  10. Lust for positions among some of the leaders
    is another problem as some of them do not like to relinquish some of
    their powers to other leaders for the sake of promoting economic
  11. Some countries are reluctant or are not committed
    to contributing for the development of the organization leading to
    ineffective running of the various functions.
  12. High illiteracy rate is also another bottleneck. This obstructs the diffusion of technology among the member countries.
  13. Explosive
    population expansion creates pressure for resources and forces the
    governments to concentrate on solving the problems of population growth
    like food supply rather than focusing on then economic integration among
    the member countries.
  14. Exhaustion of resources caused by over exploitation deters economic integration in the developing countries.
  15. Inferiority
    among the small countries, which fear being dominated by other
    countries, some of which are even more developed than them, is a
    hindrance too. These small and poor develop feeling that they can lose
    their freedom and the available few resources.
impact of globalization in Tanzania can be discussed under political,
economic, social or cultural categories. Globalization has positive and
negative effects as discussed below.
Social –Economic Effects
  • On
    the economic point of view, globalization as worldwide phenomena has
    both positive and negative effects on developing countries like
  • Many economist support globalization because they
    believe it is beneficial for all countries involved. Economists believe
    that, if there is worldwide trade then there will be more efficient use
    of resources.
  • Each country can make money off of the product
    they can most easily produce.Every country will be able to produce a
    maximum amount of goods and services for a limited cost. If each country
    produces what it is best at manufacturing then, it can trade that
    abundant product for other products the country itself cannot produce.
  • This
    potentially means that every country can get everything it needs, and
    get it at the best price. If you can cheaply produce your product, then
    you can also sell it cheap.
  • This trade spreads environmentally
    beneficial products and technologies to countries that otherwise could
    not have the technology. In this way and in others, globalization gives a
    “helping hand” for developing countries.
Positive Effects
  1. Through
    trade liberalization and free – market economy, globalization has
    stimulated much the utilization of natural resources. There are many
    companies which are investing in natural resources such as the mining
    companies at Mwadui, Bulyankulu, Geita, Nzega and Kahama. Presence of
    these foreign companies enables Tanzania to utilize her resources for
    development of her people.
  2. Globalization has made production and
    transportation of goods easier and faster than ever before. Therefore,
    it enables Tanzania to get different varieties if goods in both quality
    and quantity, from any corners of the world. These goods include
    electronic devices (computers, mobile phones). Food, medicine,
    automobile and chemicals.
  3. In some instances, globalization has
    created employment opportunity to many people. For example foreign
    companies like Vodacom, Zain, Zantel and Tigo have employed thousands of
    killed Tanzanians.
  4. Through liberalization of social services
    there is a wide spread of private schools, hospitals, dispensaries which
    contribute much in providing services to people hence improving their
Negative Effects
  1. For
    developing countries like Tanzania, free trade causes a decline and
    underdevelopment of the industrial sector and local technology. The
    decline of industrial sector and local technology is caused by influx of
    goods from outside whose prices are low and are of higher quality than
    our local goods.
  2. Presence of multinational companies in Tanzania
    if not well controlled may acquire super profits through exploiting the
    citizens and the countries resources to the maximum.
  3. Globalization
    sometimes creates unemployment. With growth of technology, machines
    greatly replace human labour therefore unemployment sometimes increases.
    The introduction of electronic devices like computer technology and its
    programs have led to eviction of many Tanzanians from their jobs.
  4. Through
    privatization and capital mobility, Northern countries (Europe, North
    America) undermine southern countries (Africa, Asia, South America)
    through unequal exchange. Most of potential natural resources in
    developing countries are owned by companies from developed countries
    hence undermining local communities.
  5. Advancement in technology
    causes environmental degradation. More increase in the use of advanced
    machines and modern equipments causes environmental degradation.
    Technological advancement in the mining sector, agriculture, fishing,
    transport systems and industrial sector threatens environmental quality
    in Tanzania. Moreover, poor countries like Tanzania have been turned to a
    garbage bin of capitalist waste products. Globalization has also made
    Tanzanians spend much of their resources in recreation activities
    instead of investing it into productive programme. As an adaptation from
    Western culture some Tanzanians, spend their money for buying beer,
    pornographic materials, drugs and other useless materials.
(a) Positive effects
  1. Globalization
    has brought about important changes in the content of international
    law. Contemporarily states like Tanzania makes laws which comply with
    international laws and therefore it abide with them in such a way that
    it can no longer mistreat her citizens the way it wishes. Issues like
    human rights, social justice are part of Tanzania‟s constitution, by
    laws and statutes which effectively started to be used in Tanzania in
  2. Under globalization, Tanzania has integrated itself into
    global politics through international agencies and organizations. New
    forms of multilateral and global politics have been established
    involving governments including the government of Tanzania.
  3. Globalization
    has made it necessary for poor countries like Tanzania to form strong
    political organization such as the formation of the East Africa
    Federation.(iv) Globalization has speeded up the democratization process
    in Tanzania. In order to promote democracy Tanzania is adopting global
    democratic principles such as rule of law, transparency, multiparty,
    accountability and it is trying to implement those aspects.
(b) Negative Effects of Globalization
  1. Negative
    Effects of Globalization(i) There has been centralization of power
    political power in biggest capitalist powers. The above situation has
    created an interstate situation whereby the poor nations are made
    accountable to bigger countries like USA, UK, than to their citizens.
  2. Tanzania
    has been affected by global political disorders and terrorism. The
    bombing of the USA embassy in Dar es Salaam is a product of global
    political conflict which involves USA and Al-Qaeda terrorists who
    protest against USA imperialism.
  3. Globalization is pushing down
    the efforts of the poor countries like Tanzania to form strong political
    organizations such as the African Union or East African Community due
    to spread of spheres of interest to the regions by biggest powers from
    America and Western Europe. Countries like Tanzania become more
    interested to cooperate with one of the capitalist countries rather than
    her neighboring countries like Malawi, Mozambique, Zambia etc. wishing
    to get more profit.
  4. In some cases, globalization with its
    related political propagandas such as multipartism, transparency,
    accountability, rule of law and others create chaos in the country.
    There are some politicians who manipulate the above agendas of democracy
    to jeopardize peace and security that have existed in countries since
1. Positive Effects of Globalization
  1. Globalization
    has made diffusion of good international beliefs and values to the
    individual nations. Each community in the world including Tanzanian
    communities are struggling to archive those world cultural standards
    i.e. respect of human rights, and better living standards.
  2. Through
    development of information and communication technology like the
    internet, fax machines, satellite and cable TV, globalization has
    managed to integrate all cultural practices in the world and have common
    cultural practices in the world and have common cultural practices such
    as sports, games and music.
  3. Globalization has revealed out some
    bad cultural practices which have been performed by some communities.
    For instance, the issue of female Genital Mutilation (FGM) is globally
    condemned with great emphasis from different international agencies.
  4. The
    expansion of the great world religious institutions particularly in
    Africa and Asia has transformed bad socio-cultural value into modern and
    acceptable ones. In Tanzania, the speed of the country plays a
    significant role in eradication of bad and unacceptable cultural
    practices such as Female Genital Mutilation, forced marriages and
    harassment of women.
2. Negative Effects of Globalization
  1. Globalization
    has swept away cultural boundaries which exist by the use of advanced
    information and communication technology such as, the radio, TVs,
    internets and magazines. This situation has led to destruction of
    interior cultures of Africans including Tanzania. Most Tanzanians
    particular young men have been influenced by the Western ways of life.
  2. Cultural
    global ties have been responsible for erosion of morals in societies.
    Immoral behaviours such as homosexuality, drugs abuse, violence,
    prostitution, and other related behaviours have been brought about by
  3. African native languages including Kiswahili have
    been undermined by English language. English has become a globalization
    language such that it is conceived by many80Tanzanians that speaking
    English is a sign of civilization. By so doing, our local languages
    including Kiswahili are being abandoned or left to be used by less
    educated people who also wish they knew English.
  4. Some effects of
    globalization have also been experienced in the assessment of the
    existing African traditional songs and ceremonies which are being
    replaced by Western ones.
has a huge impact on environment. World trade can bring about many good
things such as more efficient use of resources and aid to
underdeveloped countries. But globalization can also have damaging
effects on our planet.
Negative impacts:
  • Globalization can lead to shrinking forests and fisheries as well as the extinction and wrongful transportation of animals.
  • Globalization has increased pollution due to the constant emission of toxic gases from the heavy industries.
  • The
    high demand of natural resources which has been caused by advance in
    science and technology goes together with deforestation. Hundred
    thousands of hectares of forests are destroyed for mining activities,
    construction of houses, railways, dams, industries and areas for
  • Globalization has increase d global warming due to
    gradual increase of atmospheric temperature caused by emission of gases
    and smokes from industries and auto mobiles in the modern world.These
    gases prevent the escape of heat from the earth‟s surface to the
The following are challenges of globalization in Tanzania.
  1. Low
    level of the use of communication system. In Tanzania the use of
    global, communication satellites and telephone is still low and under
    developed. Most of communication systems are confirmed to the urban
    areas while a rural population which is bigger is still unconnected with
    the world communication system. A problem of uneven distribution of
    communication system where internets, mobile phones and others are only
    found in cities and big towns will make the rural population become
    isolated (marginalized) from this global village.
  2. The other
    challenges which Tanzania faces is low production, Tanzania‟s economic
    sectors such as agriculture , industry, mining, fishing are not
    producing enough goods for export . The increase of international trade
    as one among the fundamental characteristics of globalization will leave
    Tanzania a buyer of foreign goods rather than a manufacturer and
  3. The low level of education in Tanzania is posing big
    challenges to Tanzania under this world of globalization. The levels of
    education among Tanzanians are very low compared to that in other
    countries in the world. This level of education fails to meet
    intellectual demands of globalization such as technological skills,
    managerial skills, entrepreneur skill and marketing skills. Thus
    Tanzanians will not be able to compete in employment opportunities with
    others from other countries.
  4. Tanzania faces a problem of law
    serving and low investment growth, low saving, lack of individual
    capacity and prolonged vicious cycle of poverty among Tanzanians.
  5. Moreover
    Tanzanians primary exports are facing severe downward pressure of
    prices from world market. This trend is continuously discouraging
    primary producers which are mainly the defenseless peasants.
following below are some of the solutions which Tanzanians can
undertake so as to combat the challenges associated with globalization.
  1. Tanzania
    should create policies which focus on its own problems and lay
    strategies to reduce poverty by focusing on provisional health,
    education and social security to her citizens.
  2. There should be
    well prepared environment and conditions for investors so as to
    stabilize our macro economy. Attractions of investors must go together
    with stated conditions which will make Tanzanians benefit from foreign
    investments, rather than being the watchers of profit transactions.
  3. Education
    should be given a significant priority and compulsory to all people.
    Tanzanians government should make sure that most if not all Tanzanians
    get not only education but higher quality education which will enable
    them to cope with challenges brought about by globalization.
  4. There
    should be proper utilization of both natural and human resource so as
    to boost the economic growth. Tanzania has been experiencing the
    shortage of personnel like doctors yet there are many doctors from
    Tanzania who are walking abroad, this is improper utilization of human
    resources. Moreover, Tanzania faces a problem of shortage of food almost
    each year but they are so many uninhibited areas with fertile soils but
    still undeveloped.
  5. For Tanzania to compete with other countries
    in the world market, she should develop and promote researchers,
    providing education to all the people on how to improve production of
    their goods so as to have quality goods which can withstand competition.
  6. Regional
    integrations and co-operations should be encouraged so as to have a
    common say against exploitative practices done by developed countries.
    Membership of regional integrations and co-operations like SADC, and
    East Africa can enable Tanzania and other countries to at least fight
    back against the negative effect of globalization.
  7. The fighting against corruption should be an endless war so as to prevent those few one who want to enrich themselves.
Exercise 1
  1. Define the term globalization
  2. Explain briefly the aspects of globalization
  3. What are the impacts of globalization in Tanzania?
  4. Discuss the effects of globalization to environment
  5. Identify the challenges of globalization to Tanzania
  6. Suggest possible solutions to the challenges of globalization to Tanzania
  7. Discuss the concept of international cooperation
  8. What advantages does Tanzania get from the membership in the new East African community
  9. Account for the privatization of public enterprises in Tanzania
  10. Point out the effects of trade liberalization policies to the majority of Tanzanians
  11. Assess the impact of globalization on political and cultural aspects
  12. Mention the challenges of globalization in Tanzania and suggest measures to be taken to cope with globalization
  13. Using any sector of your choice, show the impact of SAP in the development of that sector and society at large.
  14. Discuss
    how the economic and political liberalization has undermine the efforts
    made by Tanzania in the post to develop national culture
  15. From
    independence to 1980s education in Tanzania has been provided free of
    charge. But with SAP conditionalities the situation has changed. Discuss
    this assertation showing the advantage and limitations of the two
    periods in the development of a country