Globalization and Structural Adjustments in Sub-Saharan Africa

University of New Hampshire University of New Hampshire Scholars' Repository The University Dialogue Discovery Program 2005 Globalization and structural adjustments in sub-Saharan Africa Joe L.P. Lugalla University of New Hampshire, [email protected] Follow this and additional works at: https://scholars.unh.edu/discovery_ud Part of the African Studies Commons, and the Anthropology Commons Recommended Citation Lugalla, Joe L.P., "Globalization and structural adjustments in sub-Saharan Africa" (2005). The University Dialogue. 8. https://scholars.unh.edu/discovery_ud/8 This Article is brought to you for free and open access by the Discovery Program at University of New Hampshire Scholars' Repository. It has been accepted for inclusion in The University Dialogue by an authorized administrator of University of New Hampshire Scholars' Repository. For more information, please contact [email protected]. A UNIVERSITY DIALOGUE ON GLOBALIZATION 2005–2006 41 Globalization and Structural Adjustments in sub-Saharan Africa (A New Dimension of Neo-Colonialism) JOE L.P.LUGALLA (PH .D.) P ROFESSOR, DEPARTMENT OF ANTHROPOLOGY, UNIVERSITY OF NEW HAMPSHIRE Introduction New Features and Trends in Globalization The concept of “globalization” is not more than twenty Although it is evident that globalization is nothing more years old, but the social, economic, political, and than an expansion of capitalist relations of production cultural processes that have been associated with global- at a global scale, there are however significant differ- ization have existed for many years. “Globalization” ences in the way this expansion has taken place through- refers to the increasing movement and exchange of out history. Each period has tended to be unique and capital, commerce, communication, and culture world- has been characterized by specific new features that have wide (Green 2001:2). These social economic processes been instrumental in ushering in new conflicts and are a central phenomenon in today’s world. However, contradictions. Today most people acknowledge that when these processes are reviewed in relation to the there are significant changes under way with important historic past and the plight of countries in general and implications in the organization and functioning of the sub-Saharan Africa in particular, these processes reflect global economy. Although there seems to be a consensus a continuation of the old practice of oppression and on this, there are disagreements as to whether the world exploitation that began via the mercantilist phase of the now has a globalized economy. What we see are new growth of capitalism, and later via the expansion of the trends in the world economy that symbolize globaliza- European’s empire to other parts of the world through tion. The trends do not follow a linear path, and some of colonialism. As I shall describe and argue later on in this the claims associated with globalization have not been paper, globalization is not at all a new process. It is sim- attained or are very unlikely to be tenable. ply an expansion of capitalism as a mode of production The new trends in the world economy that symbolize at a global scale. The impetus of this expansion has globalization are as follows: First, there is a tremendous further been enhanced by the collapse of the former increase in integrated global markets in production, communist societies and their system of economics, capital flows and trade. What we are seeing is a situation politics, and social organization of life, thus paving way where the world economy is increasingly becoming one to the penetration and dominance of capitalist social and national markets are being replaced by global mar- relations of production in almost every corner of the kets (Went 2000:8). The global markets are becoming world. Capitalism is now expanding and causing major the natural strategic horizon for major corporations, changes in the structure, cohesion and functioning of investors and speculators (ibid). Second, we are witness- the world economy. ing the fast growth of the weight of multinationals in the In this brief account of different faces of globalization world economy. Joint ventures are mushrooming among in sub-Saharan Africa, I discuss the following four companies. We are seeing not only the emerging of big issues. First, I describe the main features of the contem- global companies but their mergers too. These compa- porary process of globalization. Secondly, I present a nies are busy in producing and distributing their com- historical account of the process of globalization and modities regionally and globally. Third, in terms of colonialism in sub-Saharan Africa. In this section I also development planning, many countries emphasize the discuss the impact as well as the legacy of colonialism in macro-economic policies as if that was the only good societies of sub-Saharan Africa. Thirdly, I discuss how way of instituting successful development objectives and the new forms of globalization/colonialism play out in plans. Fourth, the ideology of free trade has become sub-Saharan Africa through the so-called Structural dominant. Many countries, particularly poor ones, have Adjustment Policies (SAPs), their major consequences, through the dominance of policies of neo-liberalism and who gains and who loses. Finally, I end the discus- liberalized their economies and trade transactions. This sion by highlighting in brief what ought to be done in liberalization has been followed with the international- mitigating the negative consequences of globalization. ization of goods and commodities. The World Bank and 42 WHERE IN THE WORLD IS UNH? the World Trade Organization are enforcing the same tion of poverty (the concentration of women among neo-liberal policies of structural adjustments in the the poor) has increased at an astonishing rate. This Third World countries and shock therapy policies in trend calls for assessing the impact of globalization countries in transition (former communist countries) as along gender lines and reveals that globalization has if all countries shared common history, held the same not meant the same thing to everyone. destiny, experienced similar problems, and had the same development agenda and priorities. These policies The History of Globalization in assume that all countries are endowed with the same Sub-Saharan Africa resources, social capital, and the same cultural back- The history of globalization in sub-Saharan Africa does ground. not only begin with the history of colonization, but As Went (op. cit) has argued, the austerity programs rather with African’s participation in the global economy in the OECD countries, shock therapy policies imple- via the supply of slave labor. However, the coming mented in transitional countries, and structural of colonialism intensified these relations and affected adjustments programs for the Third World countries Africa even more. all have the same characteristics. They propagate African countries were colonized by European powers export-oriented growth, free markets, less state because of the economic contradictions that were sanctioned social welfare, privatization, deregulation, created by the rapid growth of capitalism, particularly and free movement of labor. Full employment is not industrial capitalism in Western Europe. Colonialism in the prime motive of these policies but rather fighting sub-Saharan Africa had three main objectives: to meet inflation by stabilizing prices. Probably Teunissen and the high demand for raw materials for Western Euro- Veltman are right when they say that: “In corporate pean industries, to secure areas and territories that headquarters’ corridors these days, they say that the only could function as markets for the European goods that way to really insult an entrepreneur is by wishing him were being produced by capitalism (industrial revolu- luck in creating a lot of jobs…Modern entrepreneurs tion), and to identify and dominate strategic areas/ think globally from this standpoint, the nagging unions territories for future investments. This leaves no doubt who say that higher profits should mean more jobs in that the aims of the expansion of capitalism through your own country sound provincial.” (Went op.cit. colonialism were predominantly economic. However, Page 6). a political process of “colonialism” and the creation of At the same time, all these seemingly “nice” and the colonial state were necessary in order to achieve “attractive” new economic trends are accompanied by economic objectives. the increase in problems of governance and political Once colonialism was achieved, the colonizers began stability in many countries. Although the cold war setting out a variety of social and economic changes in (which was a war between communist/socialist ideology the conquered societies to make sure that their colonial and capitalist ideology) as we used to know it is over, economic objectives were fulfilled. First was the total to our dismay it has been replaced by an increase in destruction of the local system of social and political organized violence, crime, and brutal forms of organization. In most countries the traditional terrorism. chiefdoms/kingdoms were abolished and became re- The booming wealth and the lavish life styles that placed with the Western European system of political some few individuals enjoy is also accompanied by a rule and governance (the essence of the colonial state). rapid increase in the number of people living in poverty The consolidation

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