**4. Globalisation in Africa**

During Ramatex operation, many local entrepreneurs saw an opportunity to venture into textile and garment manufacturing to get their hands on the now locally available textile materials. Some of those entrepreneurs are Namalenga and associates who founded Dinapama Manufacturing and Supplies in 2006, a garment and clothing manufacturing company, in Windhoek, Namibia. The company started with 6 employees and today employs over 300 local employees, thereby filling the gaps left behind by the closure of the large-scale Ramatex factory. With increasing demand and a customer base all over Namibia, Dinapama continues to thrive despite the financial constraints Namibia is facing, manufacturing a range of products, from clothing to bags and corporate items. It has secured business deals with notable institutions in Government, private, and NGOs due to the quality of their product. The company imports textile materials from abroad, as there are no reputable textile factories in Namibia at the

Globalisation is the growing interdependence of the world's economies, particularly the huge increase in capital movements and the rapid growth of world trade [2]. The adoption of trade policies and removal of trade barriers, leading to decrease in informational and communication costs due to information technology revolution, fosters the interdependence between nations and increasing internationalisation of trade and production. It is characterised by an intensification of cross-border trade and increased investment flows, and promoted by rapid

While globalisation was viewed in 1900s as a strategy by imperialists to advance their agendas, today globalisation is viewed as interdependence of the world's economies. Globalisation has various dimensions and are commonly grouped under five categories, namely: economic, political, social, technological, and cultural. Among the dimensions and aspects of globalisation, the focus of recent discussions besides wars and climate change has been centred on whether globalisation really help poor people of the world. Most scholars concluded that globalisation indeed benefit the poor, but only if appropriate complementary policies and institutions are in place [4], while others challenge the presumption of a positive relationship

Namibia was classified as an upper-middle income country in 2009, and after South Africa is the most unequal country in the world with a Gini coefficient at 0.572 (World Bank, 2017). The Namibian economic growth has averaged 4.5% over the past 10 years, but with a high unemployment rate of 34% (broad) and of 29.6% (strict), and poverty incidence of 27% (Namibia

The government's social safety net programme introduced at independence in 1990 helped to reduce absolute and severe poverty with over 32 percentage points. Despite this progress about 6.1% of the Namibian population still could not afford to buy the minimum calories per day (approximately 2000–2500 calories per day), and about 11% of the population were still below the lower bound poverty line and 17% below the upper bound poverty line. Experts

moment (**Figure 2**).

94 Globalization

**3. Defining globalisation in the Namibian context**

liberalisation and advances in information technologies [3].

between globalisation and welfare of the poor [2].

Statistics Agency, 2016).

There are two schools of thought regarding globalisation. One that perceive globalisation as the key to international trade which promotes global economic growth, jobs, and low prices, and another that perceive it as exploitation of domestic markets in the third world countries [2]. The ideal situation is that the utilisation of relatively cheap and abundant labour by transnational companies in the third world countries should increase demand, thereby increasing employment, raising wages and reducing poverty. Instead, most multinationals use this opportunity to capitalise on weaker labour laws, lenient policies, and corruption in poor countries.

embarked on a land reform in 1980, intended to balance inequalities in land ownership, followed by a "fast track" redistribution campaign in 2000 whereby white owned farms were forcibly confiscated without compensation. This led to detrimental economic consequences for Zimbabwe. South Africa has also been reported to be in the planning process of land

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• Big corporations seek to set up production in developing countries with cheap labour, and non-regulated markets. Consequently, job opportunities are lost in developed countries and shifted to developing countries thereby putting pressure on government's ability to provide social safety nets in those countries. Transnational corporations also set up pro-

• Profit-driven transnationals disregard environmental laws, are always accused of unfair labour practices, and neglect their corporate social responsibility. Ramatex in Namibia has been accused of violating labour laws, illegal dumping of chemical and waste, and pollution.

• Due to their bargaining power, multinational corporations encourage corruption in devel-

• Multinationals corporations with advanced technology and the benefit of economies of scale drives out smaller domestic companies as they do not have the capacity to compete

• Globalisation offers less intellectual property protection, as competitors can easily steal technologies and produce counterfeit products. The Chinese business people have been

• There have been claims that globalisation does not work for the majority of the world as inequality keep worsening. The UN Development Program reports that the richest 20% of the world's population consume 86% of the world's resources while the poorest 80%

• Globalisation greatly contributes to the spread of epidemics, pandemics, and outbreaks of contagious diseases. The Severe Acute Respiratory Syndrome killed about 800 people worldwide; The Ebola outbreak killed nearly 11,000 people from 2014 to 2016 in West Africa; the influenza killed over 50 million people in Spain, Asia, and Hong Kong around 1950s; about 37 million people are living with HIV and resulted in over 1 million deaths,

• Brain drain has also been attributed to globalisation. Professionals, especially in the health sector, leave their countries to work abroad for greener pasture, safer working environ-

• The migration of people from rural to urban areas is also rife, more especially in third world countries, in search for employment opportunities and perceived better life in the cities. • Globalisation brought with transnational corporations with little consideration for the welfare of the poor, subjecting them to unethical and socially unacceptable behaviours. Safety standards are disregarded for cheaper production thereby subjecting workers to hazardous

oping countries due to their ability to influence, power, size, and status.

duction facilities in tax havens to avoid paying taxes.

accused of stealing product ideas and counterfeiting.

ments, and to countries with better standard of living.

restitution.

at that level.

consume just 14%.

just to mention a few.

This section evaluates the advantages and disadvantages of globalisation with a specific focus on the economic dimension of globalisation.

Advantages of globalisation


Disadvantages of globalisation

• Today, the richest 1% owns half of the world's wealth and the situation is not changing. Globalisation tends to boost growth and increases wealth of the rich at the expense of the poor, and the environment. Developing countries are also having a hard time in efforts to reduce extreme inequalities that are attributed to colonial systems. For example, Zimbabwe embarked on a land reform in 1980, intended to balance inequalities in land ownership, followed by a "fast track" redistribution campaign in 2000 whereby white owned farms were forcibly confiscated without compensation. This led to detrimental economic consequences for Zimbabwe. South Africa has also been reported to be in the planning process of land restitution.

and another that perceive it as exploitation of domestic markets in the third world countries [2]. The ideal situation is that the utilisation of relatively cheap and abundant labour by transnational companies in the third world countries should increase demand, thereby increasing employment, raising wages and reducing poverty. Instead, most multinationals use this opportunity to capitalise on weaker labour laws, lenient policies, and corruption in

This section evaluates the advantages and disadvantages of globalisation with a specific focus

• Different countries, corporations, and individuals have competitive advantage over others either due to abundant resources, advanced technology, skills, superior quality, etc. Every

• The internet and social media made it possible for nations and companies to trade and compete globally (ecommerce). Competitiveness reduces commodity prices, making goods affordable, improving efficiency and innovation, and boost market growth. The days of monopolies are long gone as market penetration process became fast and smooth. Namibia is rich in diamonds and minerals, meat and livestock, and fish, among others, which con-

• Countries also benefit from globalisation through foreign capital and technology. The potential for growth helps poor countries get to "catch-up" faster with wealthy countries. Governments use new technology to improve public services and infrastructural development, while the business community has access to opportunities that enable them to automate their production lines to produce and/or provide efficiently and

• Poor or slow growing economies have an option to converge. The European Union of 28 member states developed has developed one market through standardised laws and common policies. Countries also collaborate to tackle common problems such as global warm-

• Globalisation brings about cultural diversity, thereby learning from one another. The level

• Countries work with one another to solve issues concerning the world such as global warming, terrorism, outbreaks, etc. 193 out of 195 countries in the world today are member

• Today, the richest 1% owns half of the world's wealth and the situation is not changing. Globalisation tends to boost growth and increases wealth of the rich at the expense of the poor, and the environment. Developing countries are also having a hard time in efforts to reduce extreme inequalities that are attributed to colonial systems. For example, Zimbabwe

party brings something on the table, and trade flows globally.

tribute greatly to revenues through export to outside markets.

of tolerance towards one another has also improved.

poor countries.

96 Globalization

productively.

ing, terrorism, etc.

states of the United Nations.

Disadvantages of globalisation

Advantages of globalisation

on the economic dimension of globalisation.


working environment, and uses child labourers. About 11% of overall child population is engaged in child labour, of which nearly 60% is in agriculture. This also leads to human trafficking. About 800,000 people are trafficked across international borders annually, of which half are children and 80% are female.

what [5] termed symbiotic entrepreneurship—"an enterprising effort by multiple parties, each of which benefits from the joint effort, such that added value is created". This will lead to multi-polar networks, as firms focus on relationships rather than on the firm, thereby enhanc-

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Evidently, the Ramatex investment was doomed to fail as it was not based any nearer to this foundation. Ramatex needed to set up a factory in a country with relatively abundant and cheap labour, manufacture the fabrics, and export to the US market. A discussion with experts

Mr. Namalenga is the founder and Managing Director of Dinapama Manufacturing and Supplies. He is of the opinion that the impact of globalisation on small firms such as Dinapama is that one is able to find new strategies, technologies and market in the world. There are however also challenges as small firms sometimes lack capacity to utilise such opportunities due to the non-levelled playing field, thereby ending up being overshadowed by large corpora-

Mr. Namalenga revealed that the strategies Dinapama have employed to fill the gaps left behind by Ramatex is growth at home. He said that Ramatex was supplying the world, while Dinapama want to first supply Namibia and Africa before moving anywhere in the world. He believed that relationship building with their clients is critical for their growth, as they do not

Mr. Namalenga further echoed that the lessons that Namibia should take from the failed Ramatex investment in Namibia is that rather put your faith in your own people, because they will still be around if things go south. He emphasised that today they have learned to trust themselves and grow their domestic market in a way that benefits the people, and that foreign investors should only come to complement the already existing efforts by the Namibians.

Taking cognisant of the fact that globalisation opens up trade barriers and increase trade between nations, he responded that the loopholes for exploitation and self-advancement by multinationals can only be best dealt with if developing countries start teaming up and supporting each other to develop their local and regional networks. He however advised that people should still remember that trade openness is key to success of developing nations, as it brings with new technology, which can help them to do things better and efficiently to better

Mr. Namalenga further encouraged that developing countries should emulate strategies that a country like Singapore have developed to propel themselves from the third world to first world position. He reminded that developing countries, especially African countries, are still at the beginning of the transformation journey and different pathways will emerge as countries navigate the transformation of production systems. Namibia and Africa have a huge opportunity to capitalise on these opportunities as long as they do it with the best interest of the people at heart. He concluded by imploring for a new and available strategies to help close

only want to sell but also to engage and develop relationships with their clients.

ing competitiveness and growth.

below sheds more light on the subject.

tions and eventually close-down.

their position in the global village.

loopholes that Ramatex left behind.

**6.1. Discussions with Mr. David Namalenga**

• Co-movement of domestic politics with international political risk is also common today. The Arab spring that began in 2010 in Tunisia spiralled all over North Africa and Middle East with protests, coups, and civil war that is responsible for massive civilian displacements, terrorism, and killing of innocent civilians.

Evidently, globalisation is good for the world as countries have access to global markets, but pressure is heavily placed on the world's poor as only wealthy countries and/or corporations with resources and better capacity gets the larger share.
