The Negative Effects of Globalization on South Africa Essay

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Globalisation refers to the process of the integration of economic, political, social and cultural relations among people, companies and governments of different nations and countries. It is a process aimed improving international movement of goods, services, labour and capital. This process also has a direct impact on the environment, culture, political systems, economic development and prosperity, and a human physical wellbeing of societies in the world.
Globalisation also indirectly suggests internationalism and mutual agreement and support between countries, as opposed to nationalism and protectionism, which have
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Firstly, the government’s liberalisation of macro-economic policies coupled with the advancement of telecommunications and technology has made it possible for exorbitant amounts of capital to move freely around the world by just a push of a button in search of the highest interest rate possible. Over the past decade South Africa has experienced extensive disinvestment and capital outflow to overseas which meant lost output, trade, and employment here at home. Moreover, the volatility on investment flows has also had a relatively weak impact on the GDP. At present investment represents only about 17 per cent of GDP in South Africa.
Robin Kibuka, an adviser in the Africa Department of the International Monetary Fund, said, "Globalization is a force for development, but clearly it is a force for development that will have to be managed because it does create instability." For example, investors can move money more quickly than ever from one country to another, potentially leaving a developing country reeling from the
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