Free market economy. Globalization has been brought about the integration of international political economy through interfinancial institutions, policies and international trade. True markets have become a dominant economic ideology of the world.
Finance. There is also a global flow of money often driven by interconnected currency, market, stock exchange and commodity markets. The flow of money is also facilitated by international financial institutional such as IMF and the World Bank assisted by multilateral banks which have branches almost every part of the world this allow smooth money transactions all over the world.
PRIVATIZATION
Privatization refers to the policy of transferring asserts and activities of public sectors to be run by the private or individuals. Privatization is one of the structural adjustment programs results which has been emphasis by the International Monetary Fund (IMF), World Bank and donors from abroad particularly Western countries like Britain, France, USA, Denmark and Germany.
The main factor contributed to the formation of privatization is ongoing economic crises of the developing countries and dependency syndrome.
THE OBJECTIVES OF THE PRIVATIZATION
To create more market oriented economy where these privatized firms will participate in the stock market.
To improve economy, productivity and efficiency of privatized parastatals.
To secure and enhance access to foreign markets, capital and technology through attracting managerial and technological resources from the private sector.
To broaden share and ownership through equal provision of public services to all levels.
To reduce the overwhelming and challenging increase of public debt.
To preserve the goal of self reliance.
MEASURES TAKEN TO ENHANCE PRIVATIZATION
To improve the operational efficiency of enterprises and their contribution to the national economy by selling them to private investors.
To reduce the burden of parastatals, enterprises to depend on the government budget.
To sell them to private investors to expand the role of private sectors in the economy and permit the government to concentrate on relieved burden of dealing with production activities, social services like health, education and infrastructures.
To encourage wider participation in the ownership of private companies and management of business by selling and letting private investors engage in production.
ADVANTAGES OF PRIVATIZATION
It has increased flexibility due to the reduction of bureaucratic complexity and procedures in order to improve the national economy.
It has reduced costs resulting from the improving and inefficiency in production through competitive process.
Privatization has led to the improvement and rise of competition among the existing organization.
It has met the demands beyond the government capacity. The private sectors encourage competitions which increase the level of productivity and efficiency
Privatization provides clients with more choice of options where they satisfy in terms of contracts, salaries and working conditions.
DISADVANTAGES OF PRIVATIZATION
Privatization has increased unemployment of indigenous people. This has been so because most of the people come from outside. When any public enterprise privatized it is accompanied with 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 agricultural inputs.
It has increased temptation to reduce quality of services in order to reduce costs and maximize profits.
Privatization tends to increase the rate of moral erosion due to its policy of free trade. The private companies tends to import all natural of goods without considering consumers such goods includes pornography and other related films or VCD/DVD which affect the younger generation.
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.
TRADE LIBERALIZATION
Trade liberalization refers to the reduction of tariffs and trade barriers to more foreign competition and foreign investment in the economy. It is a term which describes complete or partial elimination and reduction of trade barriers such as quota as tariffs. Trade liberalization sometimes refers to free trade.
DEMOCRATIZATION PROCESS
Globalization is associated with global political reforms under the process called democratization. The democratization process is looking at the following basic principles;
Free and fair political competition. There is peaceful, free and fair competition between different political parties for there ought to be following requirements.
Firstly, permanent party organization at the local and national levels. No opposition party can exist without continuous and permanent struggle against the ruling party.
Secondly, there ought to be a determination of the past leaders to hold political party.
Thirdly, there ought to be continuous contact between all levels of a given political party.
Fourthly, there should be a determination of the past to gain popular acceptance for its programs.
Fifthly, there must be contact search for more members such as requirement can exist only in a multiparty system. Therefore, a monopoly system not be democratic. It is a rejection of democracy and leads dictatorship.
Tolerance. This is the ability to bear with something unpleasant or annoying. Tanzania is composed of different races, tribes and religious group this society African from the majority compared with the negligible non-African minority group.
Citizen participation. Participation is the major role of the citizens in democracy. It is both their citizenship participation includes standing for election debating issues, voting on elections, gathering forces and organization protesting and paying taxes. All these activities strengthen a democracy.
Equality. In democracy all people are equal this means people are valued equally. These have equal opportunities. No one is discriminated against. Moreover, groups are free to maintain their different cultures, personalities, language and beliefs. When the majorities deny rights to destroy their opposition also destroy democracy.
Accountability. In democracy elected and appointed officials ought to be accountable to people. They must make decisions and perform their duties according to the wishes of the people not for their interests.
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 democracy, people must have economic freedom. This means that the government allows people to own private property and business can choose work and join trade unions. There should be free markets in which this state should not control the economy.
Control of the power abuse. In democracy the elected and public officials are prevented from missing their power. The most common form of power misuse is corruption. These occur when officials use public funds for their own benefits accept bribes in order to render services or exercise power illegally. Protection against abuse of power has been achieved through various methods.
Inclusion of a bill of rights in the constitution. A bill of rights is a list of rights and freedom guaranteed to all citizens in the country. Many democratic includes bill of rights in the constitution in those countries courts have the power to enforce these rights. A bill of rights limit the power of government it may also impose obligations on individuals and organization.
The rule of law. In a democracy, no one is above 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.
Sovereignty. Only a sovereign nation can practice democracy. Sovereignty means freedom to decide and execute domestic and foreign policies without interference countries. Therefore, a neo-colony can not exercise democracy. Neo-colonialism means the control of weak country by a more powerful one.
EFFECTS OF GLOBALIZATION IN TANZANIA
Impact of globalization in Tanzania can be political, economical, social, or cultural. Globalization has positive and negative effects on which can be analyzed economically and politically thus;
(A). Social economic effects on economic point of view of globalization as a phenomena has both positive and negative effects on developing countries like Tanzania.
POSITIVE EFFECTS
Through trade liberalization and free market economy, globalization has stimulated much the utilization of natural resources.
There are many companies which are investing in national resources such as mining companies of Mwadui, Bulyankulu, Geita and Nzega presence of these foreign companies enables Tanzania to utilize her resources for development of the people.
Globalization has made production and transportation of goods, series and taste than ever before. Therefore, it enables Tanzania to get different varieties goods of various quality and quantity from any corner of the world.
In some instances globalization creates employment opportunities to many people for example, foreign companies like Vodacom, Airtel, and Tigo have created thousands of employment to Tanzanians.
Through liberalization of social services, there is a wide spread of private school, hospital, dispensaries and health centers which contribute much in providing services to people hence improvement in their well being.
NEGATIVE EFFECTS
For developing countries like Tanzania free trade causes the decline underdevelopment of 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 yet with higher quality then local goods.
Presence of multinational companies in Tanzania if not well controlled may acquire super profit through exploiting citizens thus leaving them poor.
Globalization sometimes creates employment with growth of technology, machine greatly replace human labour therefore unemployment sometimes increase. The introduction of electronics devices like computer technology and its programmes have lead to deviation of many Tanzanians from their jobs.
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.
Advancement in technology causes environment degradation. More increase in use advanced machine and modern equipment causes environment degradation.
(B).POLITICAL EFFECTS OF GLOBALIZATION
POSITIVE EFFECTS
Globalization has brought important changes in the content of international law contemporally states like Tanzania makes law which comply either international law and therefore it abides with them in such a way that it can no longer mistreat her citizen the it wishes.
Under globalization Tanzania has integrated itself into global politics through international agencies and organizations.
Globalization has made it necessary for poor countries like Tanzania to form strong political organization as a way of minimizing negative impacts of globalization. Formation of Africa Union (AU) and the formation of East Africa federation are consequences of globalization.
Globalization has speeded up the democratization process in Tanzania. In order to promote democracy, Tanzania is adopting global democratic principles such as value of laws, transparency, militarism, accountability and is trying to implement those aspects.
NEGATIVE EFFECTS
There have been centralization of political power in biggest capitalist powers. The above situation have created interstate order, hence reducing political sovereign to poor countries like Tanzania in such a way that they are more accountable to bigger countries like USA, UK then to their citizens.
Tanzania has been affected by global political disorders and terrorism bombings USA embassy in Dar es Salaam in a product of global political conflicts without involving USA and Al-Quarda terrorists where against USA imperialism.
Globalization is pushing down effort by poor country like Somalia. To strong political organizations such as Africa Union and East Africa Community due to spread of interests to the regions by bigger power for America and Western Europe.
Countries like Tanzania become more interesting to corporate with one of the capitalist countries rather than her neighbouring countries like Malawi, Mozambique, Zambia etc wishing to get more profits.
In some cases with its related political propaganda such as multipartism, transparency, accountability, need of law and others create chaos them. There are some politicians who manipulate the above agenda.
