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This work is licensed under a Creative Commons License.
Manifold risks, vulnerability and failures in globalization process: Empowering local organization to engage and benefit in the process Printable Version PRINTABLE VERSION
by Samo, Germany Sep 11, 2007
Globalization   Opinions

  


Engaging the Locals:

This section of the essay would make an elaborate explanation on ways local organization can be effective and benefit in the face of the global competition. Attention would be place on human capacity development and utilization, nature and composition of the work place and work force, economies of scales and technology acquisition.

The rapidly changing work place had necessitated the need to move from the traditional state-centric approach of work to work base training in organization. African government and indeed locally based organization in South Africa need to concentrate more on training and development of labour. This would enable the workforce to meet-up with technological advancement and contemporary methods of task execution. It would facilitate high-skill labour and man-power in various sectors and the consequential attainment of product quality to international standard. Work based training, though might lead to hard employment practices as argued by Geoffrey Woods. However, one cannot underestimate the strength of active, efficient and highly skilled work force in the globalization process. The much celebrated Chinese economy growth within the confine of the contemporary world order could be traced to its strong work force. In fact, a company which fails to have a coherent training strategy put itself in a position of dependence on external labour market and hence have very limited chance in competing in the process.

Another point in mind is the need of Local organization to improve on the nature of work place to meet international standard. The nature of work place is continuously transforming in consonance with globalization. Locally situated organization in Africa should not be found wanting in this regard. The parameters of work should be well defined and fit to the evolving nature of work place using sophisticated and advance technology. In essence, the identification of individual workers to a particular occupational task should be replaced with a more flexible work base environment. This has a lot to do with workers training and identification of prior experience rather than placing emphasis on qualification. Flexibility in all ramifications is an important aspect of current globalization, since technology development is not static. Also, the role of labour union in this context should be well defined. They need to be aware of current trend in technological innovation, canvass for it acquisitions and emphasized on labour training and development.

Traditionally, labour union has been more pre-occupied with salary increases, promotions and benefits alike. In this era, labour struggles should forthwith include pressuring the management to acquire the necessary technology to be able to fit into the globalization process. We are in a post modern era; therefore all forms of conventional approaches to issues should be changed in Africa. This would make Sub-Saharan Africa and indeed South Africa to compete favorably.

Local manufacturing companies cannot compete favorably without enlarging their production capacity and market base. A radical approach to locating new market source is very important. This would enable them to benefit from the principles of economy of scale which include but not limited to bulk buying of materials, managerial specialization and accessing all avenue to advertise their product globally. This would improved their competitiveness and bring benefits to the firm on the long run. And importantly, local organization should endeavor to acquire modern technology for cost effectiveness and efficiency.

Role of the Government:

Classical economist such as Adam Smith has argued that a nation would be better off if she concentrate it efforts on the products she has comparative advantage. The point I am trying to drive at is that Sub-Saharan Africa countries should concentrate on labour intensive product such as textile and Agricultural produce; since there is abundance of cheap labour around, cost of production is going to be minimized and firms can compete in the global markets. The role of government therefore is to provide appropriate policy framework and level playing ground for all companies involve in the sector. Good policies framework would eventually creates several opportunities and capabilities for local firms to thrive within the global market. Jagdish Bagwati stated that protectionist policies would improve nation economy. He argues that European and American countries still maintain protectionist policies by subsidizing production in aerospace, electronics, steel and agriculture.

In essence Sub-African government should still maintain protectionist policies in some areas where it is most needed. The Sub continent should operates with multiple strategies of coping, in order to develop the informal sector to deal with the risks. Also, the sub continent must make use of the opportunity provided by the process, and making the best use of western scientific knowledge through acquisition and technology transfer. It is very important for the countries of the region to provide safety nets.







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