South Africa and Globalization
Introduction
Globalization has brought both positive and negative in different countries. It has affected the various nations’ economies those are using variables such as trade, foreign direct investment (FDI), GDP per capita, capital flow, and others. The paper discusses the impact of globalization on South African trade. It will investigate the major changes in the country due to globalization after WW2.
Impact of globalization on trade
South Africa is an unequal country in the world that is trying to develop itself economically and bring restitution to its black majority. Globalization has affected the economy of the country and increased new trend towards globalized economy . It is noticed that the country has lost a due way of trade carried out. Poverty is an important issue in the country and the African companies lack important competitive advantages in the world. The companies are struggling to adapt the new way international companies renew themselves and gain advantage from international trade.
Globalization has enhanced the international trade in the country during 1989–99 and increased imports and import in the country. However, the country stood at over 5% of the total exports globally during the 1960s, and in 2013 it stands at about 3% of the total exports globally. It shows that the country has struggled to adapt to globalization in the beginning and again it started to reverse this trend of globalization. In 2005, the export increased in the country and the continent exported for about $50bn more than it imported. It has brought positive changes in the country and total share of international trade has increased about 0.5 percentage points in exports.
The change shows that the trade is developing in the country that increases the technological development in South Africa . The country is the 36th largest export economy in the world and main export destinations are the U.S, China, the U.K, India, Germany, and others . The foreign trade of the country has increased over the years and exports enhanced by ZAR 0.7 billion or 0.7 percent in June of 2016 as compared to the previous period .
Changes in South Africa after World War II
It is well-known that globalization started after World War II, and it has significantly accelerated since the mid-1980s . Globalization has brought some positive changes in the country upgraded its role in the world economy. It has tightly integrated into the world’s production that improved the international trade system led by multinational businesses. The country has improved its economy and increased diversification that improved living standard of the people . South Africa has improved energy, health, education, human rights, and other elements after World War II. The country has experienced improvement in employment, working condition, and labor policies.
In 1994, development was experienced in the country and ANC’s Reconstruction and Development Program (RDP) was started to provide homes and other basic services to the nation. It was focused to increase access to houses through redistributing land and bring clean water to the people . However, South Africa also failed to improve social security and poverty in the country. Poverty has affected the country negatively and it is reported that 5.5 million people infected with the HIV. The government policies are insufficient for controlling the food security, unemployment, and local population .
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