SECTION I 7.21.1.14 Policy
3.7 INTERNATIONAL TRENDS THAT IMPACT ON LOCAL GOVERNMENT
Globalisation consists of a bundle of interrelated ideas' economic
, ,
political,
technologically and cultural. In this research study, focus will be based on the economic aspect. Economic globalisation can be described in a number of ways. At the most basic
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level, it refers to the expansion of the world market economy during the past two decades; The rise of the South East Asian economies, the fall of communism in Eastern Europe and the former Soviet Union and the emergence of market economies notably in Chile Argentina and Brazil. More than ever before, there is a growing international integration of markets for goods and service and capital (Centre for Development Enteprize 1996:7).
Globalisation involves a number of discrete but interrelated economic processes. It was not until the 1960's and 1970's that a true 'global economy' emerged, despite a long history of international flows of capital, labour goods and service.
Globalisation poses real threats to business for cities all over the world, while it simultaneously creates exciting opportunities for growth and prosperity. The new opportunities for developing countries are accompanied by tough new challenges of economic management. Integration with the global economy requires a liberal trade and investment regime. In trade, competition is increasingly stiff, and the rapidly changing possibilities favour the more agile. A classic example of a state that responded to changes in global trade and investment patterns is Hong Kong. (Centre for Development Enterprise, 1996:8).
The trajectory of emerging growth coalition in metropolitan Durban may well represent the best possible plan that can be promoted in the age of globalisation, offering an expansion of the economy based above all on Durban's location and infrastructure. This may provide jobs indirectly rather than far more directly and also create the financial basis whereby services can be delivered to the poor people. (Sowetan, 10 November 1999).
At the Common Wealth Heads of State Meeting held in Durban Secretary General Chief Emeka Anyoaku stated that there is likely to be new impetus towards tackling some of the civil society in Commonwealth countries. It deals with globalisation and was intended to the lot of the poor. He argues that globalisation and pluralism are the two major
challenges facing most developing countries and how that is managed has enormous implications for development (Sowetan, 10 November 1999).
His concern is what he terms 'divisive pluralism'. Since the end of the Cold War era, there has been an increase number of countries riven by internal conflicts.
Within the Commonwealth, there has been a culture of advocacy, which, besides mustering support against apartheid South Africa, and supporting the independence of Zimbabwe, has also introduce new approaches to global matters, such as the cancellation of poor countries' dept (Sowetan, 10 November 1999).
He also added that the Highly Indebted Poor Countries (HIP C) initiative which allow for poverty stricken countries like Mozambique to have some of their debt cancelled originated in 1994. CHOGH. "We actively advocated the merits of the HIPC initiative.
Now that has been shown to have it, can be reviewed. This is then the purpose to call this conference.
Economic experts argue that globalisation is seen to benefit the poor. They argue that unless globalisation is seen to be creating conditions for the eradication of poverty, the advancement of world peace and the promotion of a safe environment, the world's poor will believe it is "a useless concept".
At the opening of Commonwealth Business Forum in Johannesburg, Gauteng Premier Mbazima Shilowa told the delegates that most of the developing countries need to reap a rich harvest from seasons of globalisation. He added that it is for this reason that we must emphasise the need for co-operation and the vigorous pursuit of economic interest. This is a millennium during which globalisation will be driven even more by knowledge and significance of communication and technology (Sowetan, 10 November 1999).
The Forum which will be held in Durban will bring together government and business leaders to discuss global business trends, the effects of globalisation and review the
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interaction between business practises and government policies under the theme "Making Globalisation Work"(Sowetan, 10 November 1999).
There is hope that the Commonwealth leaders might become just another talk shop, let alone a rubber stamp for willy-nilly economic globalisation and instead set a pace for international bodies by beginning to address the concerns of small developing countries.
Not least because on the one hand South Africa is playing host and will chair the meeting. On the other hand, even in the camp of Britain Prime Minister Tony Blair- an ardent proponent of liberalised trade and globalisation as the path to development. there is a concern that globalisation must not be perceived as undermining human development in poor countries. (City Press, 7 November 1999).
It is not only the poorer parts of the globe where opposition to accelerated globalisation lurks. Summer in Britain this year saw thousands of protestors descend on London for a
"take-over" that was ironically, organised through the internet, one of the major facets of globalisation (City Press, 7 November 1999).
It is also important to consider the fact that local government has a key role to play not only in tackling degeneration and poverty, but also in helping remove the barriers to economic development. Barriers such as
• Low levels of investment
• Paucity of good managers and skilled workers; and
• Inadequate economic development planning skills
Bearing in mind the implications of operation in the era of a global society, that all spheres of national government have to place these problems at the heart of their analysis of the requirement of economic progress.
The evidence from the Commonwealth was that all member states must embrace the ideal of good governance, and it was also noted that not only is good governance a sine qua
non for economic development, but also, without it, the tribal wars such as those experienced in parts of Europe and Africa will remain a permanent feature of political landscape (Sowetan, 16 November 1999).
The challenge is that the exciting opportunity of ensuring that the impoverished majority does not continue to be bypassed by the benefits of economic growth. This growth must give people the possibility to feel the heartbeat of the rebirth of the continent as this is happening in some communities who now have clean water electricity and even sewers.
In the present day society, there is a phenomenon that requires an organised response from government at national, provincial or regional level all over the world. Strong local government can give local communities access to the benefit of globalisation by harnessing the best elements of the phenomenon. In this era people-centred development is not guaranteed unless the community leaders take steps to ensure that proponents of globalisation do not only focus on the global movement of capital, but are also made to pay attention to the real needs of local communities and environment.
Many people have expressed different thoughts on globalisation. Some say it will only serve developed countries while others say it will further cause poverty in poor underdeveloped and some developing countries. It is an undisputed fact that globalisation can never be avoided since people are living in a global world.