The Impact of Globalisation on Namibia

1
The Impact of Globalisation on Namibia

• A presentation by Robin Sherbourne of the
  Institute for Public Policy Research to VSO
• 23 May 2003

2
3 Key Questions Plus

• What is globalisation?
• Why is it important?
• How does it impact on Namibia?
• What we can and cant influence
• The Big Debates

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What Is Globalisation?

• Increasing (economic) interaction between
  countries including
• Trade
• Investment
• Labour
• (Culture)
• (Values)
• (Diseases)
• (Terrorism)

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Why Is It Important?

• How do poor countries become richer?
• Economic theory
• Economic evidence

5
Economic Theory

• The Catch Up Effect poorer countries have
  potential to grow faster
• Theory of Comparative Advantage specialise in
  what you are good at and trade the rest

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Economic Evidence

• Fastest growing economies have started poorer
• Rich economies have not grown fast
• Poor economies in EU converge
• High growth economies have been more highly
  integrated
• Recessions exacerbated by trade protection
• Rapid growth in small countries needs world
  economy

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Impact on Namibia?

• Meat and livestock (3)
• Diamonds and minerals (13)
• Fish products (6)
• Beer (1)
• Tourism (2)
• Imagine these industries without international
  trade, investment and labour mobility

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Positive Impact on Namibia?

• Imagine North Korean style economic policies
• Imagine a large city in Europe
• Plus no big inefficient industries grown under
  protection

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Negative Impact on Namibia?

• National sovereignty
• Economic autarky vs integration
• Regional integration vs global integration
• Brain drain
• Exploitation of resources
• Labour standards
• Race to the bottom
• Inequality

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What Cant We Influence?

• Monetary policy (interest rates and exchanges
  rate) determined by CMA
• Trade policy (tariffs and non-tariff barriers)
  determined by SACU and WTO

11
What Can We Influence?

• Domestic taxes
• Fiscal policy
• Education and training
• Health
• Labour laws
• Social security
• Business regulations

12
The Big Debates

• Too much globalisation or too little?
• Freeing up international labour market would
  bring much greater benefits
• Environmental impact of wealthier planet
• Political consequences of wealthier planet
• Industrial development and infant industry
• Rich country agricultural protection
• Intellectual property rights

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Final Thought

• Is Namibia helping to lead the international
  debate on globalisation?