Free Paper Example on Ethiopian Globalization

Introduction

Globalization in the world has been a result of the interdependence created between various countries in the world as they are involved in the trade of different goods and services, exchange of cultures, sharing of technology and information, the flow of capital, and labor in and out of various economies. Globalization has affected very many counties, either positively or negatively ("Experiencing Ethiopia’s Encounters with Globalization, Sustainability, and Empowerment | Business and Economics | Allegheny College", 2019).

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It has affected transitional economies, developing economies, and developed economies differently. Developing countries like those in Africa and East Asia have been negatively impacted compared to developed countries like the United States of America (Cherkos Meaza, 2017). The country that has benefitted the most in this new world order is China, which can be attributed to its fiscal and trade policies. Besides, the cost of labor is very cheap compared to other places in the world.

Therefore, this paper will analyze the impact of globalization on Ethiopia and examine its place in the global community. The paper will look at its demographics, and adopt the use of a societal health scale to measure the impact of globalization. The paper will also adopt the use of the three dimensions of globalization paradigm, i.e., economic, political, and cultural forces, in Ethiopia's analysis. The paper will correctly analyze the benefits and costs of foreign investment, civil society, and global impact upon culture.

Ethiopia Globalization

Globalization has impacted many countries, but it has greatly changed the way people do business and life in Ethiopia. Therefore this paper is going to analyze the impact of globalization on Ethiopia. It will examine the impact of globalization in the Ethiopian context. It will analyze political, economic, and cultural forces in play in Ethiopia, and examine the role of various stakeholders in Ethiopia. Furthermore, it will summarize the impact of globalization in Ethiopia and provide three macro- actions taken by Ethiopia to improve its quality of life (Berhane Weldegebriel, 2016).

The virtue has greatly weakened Ethiopia's position in the international space. It cannot compete with other countries economically, and it lacks human development. This has resulted from political instability in Ethiopia, poor policies, and the establishment of authoritative regimes ("Experiencing Ethiopia’s Encounters with Globalization, Sustainability, and Empowerment | Business and Economics | Allegheny College", 2019). This is very unusual since Ethiopia is one of the two countries in Africa that successfully defended its territories from colonization and did not suffer any post-colonialism (Berhane Weldegebriel, 2016).

Economically, globalization has negatively impacted Ethiopia because it has created many challenges for Ethiopian people. It is because they encounter the adverse effects of the globalization of markets ("Experiencing Ethiopia’s Encounters with Globalization, Sustainability, and Empowerment | Business and Economics | Allegheny College", 2019). They have supply problems, skilled labor problems, and capacity issues; thus, they cannot compete effectively with developed nations like China, and the United States of America. Therefore, economically, globalization is threatening the economy of Ethiopia (Berhane Weldegebriel, 2016).

Politics

Politically, Ethiopia has also been negatively disadvantaged by globalization. Ethiopia has no political sovereignty when it comes to making decisions concerning economic and financial matters. This is because various organizations like the international monetary fund, world bank, and world trade organizations have imposed policies, strategies, and various economic models which have negatively affected Ethiopia("Experiencing Ethiopia’s Encounters with Globalization, Sustainability, and Empowerment | Business and Economics | Allegheny College", 2019). For instance, the international monetary fund has imposed several structural economic reforms in Ethiopia, which have led to a lot of Ethiopia discourse.(Cherkos Meaza, 2017)

On the cultural front, Ethiopia is a very diverse country with people from different cultures and languages ("Experiencing Ethiopia’s Encounters with Globalization, Sustainability, and Empowerment | Business and Economics | Allegheny College", 2019). Though the Ethiopian culture is highly appreciated and celebrated in Ethiopia and other places globally, it is soon diffused with cultures from other places. This can be attributed to globalization's impact on Ethiopia. For instance, Ethiopia has adopted the use of women labor in various sectors of the economy.

In the past, before the advent of globalization, women in Africa were supposed to work in homes, but nowadays, they are the ones who go out to look for income. Foreign direct investments play a crucial part in globalization and the increase of GDP in various countries in the world. Foreign direct investments in Ethiopia dropped to 2.5 billion dollars in 2019 from 3.3 billion dollars in 2018(Cherkos Meaza, 2017). This has decrease FDI can be attributed to the restrictions imposed by the government. Thus, the Ethiopian government must do away with foreign direct investment restrictions if they are to enjoy the benefits of globalization.

Globalization has greatly benefited civil society in Ethiopia. It has enabled these societies to be able to link with each other and share information and resources. In Ethiopia, civil society groups have significantly grown as a result of the liberalization of the markets. Therefore globalization has increased the transfer of technology and information, has opened markets, has increased lobby groups, and has facilitated brain drain in Ethiopia.

In order for Ethiopia to improve their quality of life with the advent of globalization, they invest heavily in skilled labor. The population of Ethiopia is about 100000000, with 70% of the population being under the age of 30 (Cherkos Meaza, 2017). Therefore investing in the education of this demographic will highly contribute to the GDP of Ethiopia since it has the human capital.

Conclusion

The people can also reduce the income inequality between the people. In Ethiopia, only a few people are rich, which is evident from the poor roads, and way of life outside Addis Ababa. This can also be solved by investing heavily in human capital and the creation of employment. Ethiopia can undertake economic growth activities, which will help improve the quality of life of the people. For instance, investment in infrastructure badly needed in Ethiopia is the best way for this African country's economic growth ("Experiencing Ethiopia’s Encounters with Globalization, Sustainability, and Empowerment | Business and Economics | Allegheny College", 2019).

References

Berhane Weldegebriel, Z. (2016). The Link between Globalization and Economic Growth: Evidence from Ethiopia. Retrieved 25 August 2020, from https://www.researchgate.net/publication/332274972_The_Link_between_Globalization_and_Economic_Growth_Evidence_from_Ethiopia.

Cherkos Meaza, G. (2017). An Assessment of the Economic Impact of Globalization In Ethiopia: A Co-Integration Analysis. Mpra.ub.uni-muenchen.de. Retrieved 25 August 2020,
from https://mpra.ub.uni-muenchen.de/83533/1/MPRA_paper_83533.pdf.