Globalization: Prospect and Chalenges in Tanzania
LITERATURE REVIEW
Globalization as the International Poverty Trap
As I explained earlier in a problem statement on previously chapter, I would like to elaborate more on fundamental issues described on problem statement by considering not only Tanzania but also the all least developed countries (LDC).
There is an international poverty trap but this does not necessarily mean that globalization is causing chronic poverty. Globalization, in putting chronic poverty into a global context it also becomes necessary to understand how the current form of globalization is affecting these international relationships.
This is quite a complex issue. But there are good reasons to believe that, although international economic relationships can play a key role in helping Tanzania and other LDCs to break out of economic stagnation and generalized poverty within which they are caught, the current form of globalization is actually tightening rather than loosening the international poverty trap. The reason is that most LDCs are being bypassed by potentially beneficial aspects of globalization of production systems, finance and markets, at the same time as being exposed to certain negative aspects.
In terms of access to foreign markets, it is difficult for LDCs to benefit from the opening of other markets as production and supply capabilities are weak. Whilst many of the LDCs are not benefiting from these potential positive effects of globalization, they are experiencing some negative effects. In this regard, two points are worth highlighting.
Firstly, recent changes in the structure of global commodity markets are reinforcing the cycle of economic stagnation and pervasive poverty. This is because they are leading to higher marketing margins between producers and consumers and greater commodity price instability. They are also increasing the probability of LDC commodity producers being excluded from global markets. The latter process occurs as buyers within commodity
Globalization as the International Poverty Trap
As I explained earlier in a problem statement on previously chapter, I would like to elaborate more on fundamental issues described on problem statement by considering not only Tanzania but also the all least developed countries (LDC).
There is an international poverty trap but this does not necessarily mean that globalization is causing chronic poverty. Globalization, in putting chronic poverty into a global context it also becomes necessary to understand how the current form of globalization is affecting these international relationships.
This is quite a complex issue. But there are good reasons to believe that, although international economic relationships can play a key role in helping Tanzania and other LDCs to break out of economic stagnation and generalized poverty within which they are caught, the current form of globalization is actually tightening rather than loosening the international poverty trap. The reason is that most LDCs are being bypassed by potentially beneficial aspects of globalization of production systems, finance and markets, at the same time as being exposed to certain negative aspects.
In terms of access to foreign markets, it is difficult for LDCs to benefit from the opening of other markets as production and supply capabilities are weak. Whilst many of the LDCs are not benefiting from these potential positive effects of globalization, they are experiencing some negative effects. In this regard, two points are worth highlighting.
Firstly, recent changes in the structure of global commodity markets are reinforcing the cycle of economic stagnation and pervasive poverty. This is because they are leading to higher marketing margins between producers and consumers and greater commodity price instability. They are also increasing the probability of LDC commodity producers being excluded from global markets. The latter process occurs as buyers within commodity