globalization

         According to E-Marketing. (2006) defined globalization as People around the globe are more connected to each other than ever before, Information and money flow more quickly than ever, Goods and services produced in one part of the world are increasingly available in all parts of the world, International travel is more frequent and International communication is common.

 According to International Monetary Fund, (1997) Globalization refers to the growing economic interdependence of countries worldwide through the increasing volume and variety of cross-border transactions in goods and services, international capital flows  through the more rapid, and widespread diffusion of technology.

Herman.  (1999) Globalization refers to global economic integration of many formerly national economies into one global economy, mainly by free trade and free capital mobility, but also by easy or uncontrolled migration.

Generally, globalization is the process of interconnectedness and interdependence in political, cultural, social, as well as political aspects or globalization is the process of integration and interaction among people, companies and governments worldwide.

Before globalization Tanzania was a socialist nation, it was a country which was providing social services like health service, water supply, education to her people freely. But from 1980's the system collapsed following with the decline of socialism in Russia in the next decade that led to economic hardship in Tanzania. Hence from 1990's Tanzania welcomed Structural Adjustment Programs (SAPs) in order to recover her economy. In the same decade started implementing the conditions of SAPs.  In such actions led Tanzania to enter the Global world as follows;.

          Public-Private Partnership of state-owned enterprises (SOEs). Tanzania has been an essential part of the economic reform process that started in the 1980s. The rationale for privatization or public Private Partnership emanated from the experience that was in many countries, SOEs had not lived up to their development expectations. Due to many inherent problems, scarce resources were being less efficiently used, and their fiscal implications were growing. In response to these problems, the government gradually recognized the need to get out of economic activities that competitive markets do best than government interventions. This recognition got further drive in the year 2000 when the government reduced its involvement further by pursuing partnership with the private sector in providing infrastructure, social services, and in protecting the environment. This approach greatly contributed to the process of re-balancing the respective roles of the government and the private sector in the country (International Monetary fund, 1997).

        Free market economy, SAPs is supposed to allow the economies of Tanzania to become more market oriented. This then forced them to concentrate more on trade and production so it can boost her economy. Through conditions, SAPs generally implement "free market" programmes and policies. These programs include internal changes (notably privatization and deregulation) as well as external ones, especially the reduction of trade barriers. Countries that fail to enact these programmes may be subjected to severe fiscal discipline. Critics argue that the financial threats to poor countries amount to blackmail, and that poor nations have no choice but to comply.

Since the late 1990s, some proponents of structural adjustments (also called structural reform), such as the World Bank, have spoken of "poverty reduction" as a goal. SAPs were often criticized for implementing generic free-market policy and for their lack of involvement from the borrowing country. To increase the borrowing country's involvement, Tanzania is now encouraged to draw up Poverty Reduction Strategy Papers (PRSPs), which essentially take the place of SAPs (Nyoni, 1997).

        Foreign direct investment refers to direct investment equity flows in an economy. It is the sum of equity capital, reinvestment of earnings, and other capital. Direct investment is a category of cross-border investment associated with a resident in one economy having control or a significant degree of influence on the management of an enterprise that is resident in another economy. Ownership of 10 percent or more of the ordinary shares of voting stock is the criterion for determining the existence of a direct investment relationship. This series shows net outflows of investment from the reporting economy to the rest of the world, and is divided by GDP. Example foreign direct investment, net outflows (% of GDP) in Tanzania was 0.000 as of 2017. Its highest value over the past 8 years was 0.000 in 2017, while its lowest value was 0.000 in 2009 (Kimambo, 1969).

         Democracy, from independence in 1961 until the mid-1980s, Tanzania was a one-party state, with a socialist model of economic development. Beginning in the mid-1980s, under the administration of President Ali Hassan Mwinyi, Tanzania undertook a number of political and economic reforms. In January and February 1992, the government decided to adopt multiparty democracy. Legal and constitutional changes led to the registration of 11 political parties. Two parliamentary by-elections in early 1994, both won by Chama Cha Mapinduzi (CCM), were the first-ever multiparty elections in Tanzanian history. This was done as the condition of Structure Adjustments Programs (SAPs).

        Foreign Aids, Tanzania has in the recent past been one of the largest recipients of aid in Sub-Saharan Africa. In the financial year 2010-11, approximately 33% of Government spending was financed by foreign aid. There are three aid modalities in Tanzania. General Budget Support as the most preferred mode since it is consistent with the government’s legal framework and processes, Basket Funds, and Direct project funds. Despite GBS being the preferred aid modality for the Government of Tanzania, a large proportion of development assistance to Tanzania continues to be delivered through the project modality which in many instances remain off-budget and outside the government system. As a result more efforts are being taken to encourage more DPs to shift away from the individual programmes and area based projects towards programmed-based interventions. The value of donor financing (external grants and concessional loans) relative to total government expenditure has declined dramatically over the past decade, sinking from 44 percent in 2004/05 to 19 percent in 2013/14. It is estimated that it has dropped further to 14 percent in 2014/15. In contrast, external non-concessional loans have started taking a substantial share in financing the budget. Yet even as Tanzania has become less dependent on aid, it still faces large fiscal challenges meeting its development objectives. External aid, including concessional loans, still provides more than 10 percent of the Government budget and a disproportionate share of the financing for development and investment. The largest aid contributor to Tanzania is The World Bank, USA, the AFDB, and UK (Nyoni, 1997).

The following are the Advantages of Globalization in Tanzania:,

               Ability to tap into a wider talent pool, when fully taking advantage of globalization, you are no longer restrained by talent that is available in your city. Today your remote workforce could work from anywhere in the world with an internet connection opening you up to the brightest and best candidates the entire world has to offer.

             Cultural diversity, businesses are experiencing increasingly diverse workforces as a result of a globalised economy. This includes teams working across different locations, people traveling and moving countries for work, having a range of different work ethics and practices and even religious differences. All of these can be challenges, but overwhelmingly are a positive thing in the workplace as it brings together different ideas and insights and perspectives.

            Coaching and training, with more diversity comes a need for more coaching and training of employees, particularly around cultural competency to help workers from different backgrounds connect with and understand one another. With this level of coaching and training, your business is more likely to be successful.

          Improved information between different countries, globalization helps to break down more than just trade barriers, it helps countries communicate and collaborate and share knowledge.

          Larger markets, openness to trade brings bigger and better opportunities to the economy including larger markets and increased opportunities to specialize. This includes global economic growth, job creation, more competitive companies and lower prices for consumers.

       Higher standards, for less developed countries, globalization can be a blessing as it increases standards of living such as health and welfare and safety conditions in the workplace. Companies from more developed nations tend to have to comply with regulatory requirements in their home countries and transfer these expectations when they operate in other parts of the world.

     

        

Apart from advantages there are disadvantages of globalization as follows;.

             Hollowing out of work, globalization has been blamed for the loss of millions of jobs around the world – in particular middle-wage, middle skilled jobs like managers, assembly line workers or secretaries. These jobs are often outsourced to regions that have lower wages, or are being replaced entirely by rapid advances in technology, making them obsolete. The jobs that remain are the higher paid and lower paid jobs, meaning the middle has been “hollowed out”.

           Earnings changes, with more and more companies accessing overseas outsourcing opportunities, wages have decreased for many workers in the original countries. Companies in the developing world are able to offer their services at a much reduced rate from those who live in countries with greater living standards. This means that workers in larger countries are affected.

           Social injustice, many multinational corporations have been accused of exploitation when working in poorer, developing countries and delivering unfair work conditions such as slave labor, poor standards of living and unsafe working practices. They are also often accused of damaging the environment and depleting it of natural resources and causing problems with ecological systems. Many opponents of globalization say that it has worsened inequality internationally with the richest 20 per cent of the world population consuming 86 per cent of the world’s resources and the poorest 80 per cent of the world’s population consume just 14 per cent of the world’s resources.

          Multinationals with political influence, some multinational corporations no longer just limit themselves to corporate activities and become part of politics and actively attempt to influence political decisions in some parts of the world (Rodney, 1972).

         Potential for IP theft, when products are built overseas in factories on behalf of a company based in another country, there is potential that intellectual property and designs could be copied and stolen and replicated and sold for cheaper elsewhere.

          Internal communication challenges, when you work across time zones, cultures and countries and have a workforce that is not always even online at the same time, let alone in the same room at the same time, reaching everyone and communicating effectively can be a challenge unless remote communications are managed strategically. For example, investing in Desk Alerts to send pop-up notifications straight to employees’ desktop screens, no matter where they are located in the world, scheduled to reach them at the appropriate time in their time zone, written in their language.

In a nutshell therefore globalization has a lot of controversies with regard to the rise of global culture in which America and western norms and practices are gradually being transported across the global as acceptable ways of behavior, the rich and dynamic Tanzanian culture is being diluted. It can be said that Tanzania’s interaction into the global system has played a significant in what Tanzania is today

REFERENCES

International Monetary Fund. (1997). World economic outlook .Washington DC: The fund press.

Herman, E, D. (1999). Ecological Economics, New York: The GNU General publishers.

Kimambo, N, I. (1967). A history of Tanzania, Nairobi: East African publishing House.

Rodney, W. (1972). How Europe underdeveloped Africa, United Kingdom: L’Ouverture Publications.

Nyoni, S, T. (1997). Foreign aid and economic performance in Tanzania, Nairobi: The African Economic Research Consortium.