Negative Impact of Globalization
THE EFFECTS OF GLOBALISATION ON TRADE – A SPECIAL FOCUS ON RURAL FARMERS IN UGANDA by Edward Mubiru, World Vision International, East Africa Regional Office
Report revised November 2003
Introduction Interest in globalisation is world wide, although globalisation is often viewed only in the context of economics. In its broadest sense globalisation affects crosscutting lifetime choices of people everywhere. It includes democracy, human rights, and international commitments to reduce poverty and induce economic progress in many developing countries of the world. Just as there are large numbers of proponents of globalisation, there are hundreds of thousands of critics of as well across the globe. Globalisation is indeed a force to reckon with. This conclusion was clearly stated at the Communiqué of the Lyon Summit of the G7 in June 1996: “ In an increasingly interdependent world, we must all recognize that we have an interest in spreading the benefits of economic growth as widely as possible and in diminishing the risk either of excluding individuals or groups in our own economies or excluding countries or regions from the benefits of globalisation.” This paper outlines the major historical developments of globalisation and specifically describes the effects of globalisation on coffee, the most important item in Uganda’s international trade. In particular, this report attempts to analyse the impact of liberalization on the production, marketing (supply), demand as well as prices and revenues from coffee in Uganda. Central to this report is the impact of globalisation on the lives of needy rural farmers whose main source of income is coffee. This paper also points to some elements of the biblical basis for needed action. Key definitions. Globalisation has been defined in various ways, but there is no standard definition. It may be best to describe globalisation by its characteristics such as those found in the UN Secretary General’s report on globalisation1:
Report revised November 2003
Introduction Interest in globalisation is world wide, although globalisation is often viewed only in the context of economics. In its broadest sense globalisation affects crosscutting lifetime choices of people everywhere. It includes democracy, human rights, and international commitments to reduce poverty and induce economic progress in many developing countries of the world. Just as there are large numbers of proponents of globalisation, there are hundreds of thousands of critics of as well across the globe. Globalisation is indeed a force to reckon with. This conclusion was clearly stated at the Communiqué of the Lyon Summit of the G7 in June 1996: “ In an increasingly interdependent world, we must all recognize that we have an interest in spreading the benefits of economic growth as widely as possible and in diminishing the risk either of excluding individuals or groups in our own economies or excluding countries or regions from the benefits of globalisation.” This paper outlines the major historical developments of globalisation and specifically describes the effects of globalisation on coffee, the most important item in Uganda’s international trade. In particular, this report attempts to analyse the impact of liberalization on the production, marketing (supply), demand as well as prices and revenues from coffee in Uganda. Central to this report is the impact of globalisation on the lives of needy rural farmers whose main source of income is coffee. This paper also points to some elements of the biblical basis for needed action. Key definitions. Globalisation has been defined in various ways, but there is no standard definition. It may be best to describe globalisation by its characteristics such as those found in the UN Secretary General’s report on globalisation1: