Wednesday, May 16, 2007
Africa 'sees 6% economic growth'
An appetite for oil has driven interest in AfricaAfrican economic growth is set to reach nearly 6% in 2007, the highest in 20 years, according to the African Development Bank (AfDB).
Overseas demand from China and other rapidly-growing nations for natural resources, including oil, has been a cause for growth, the bank said.
The data was issued at the bank's annual meeting, being hosted by China.
The region's economy grew by 5.5% in 2006, with South Africa, Nigeria and Algeria among the strongest nations. Oil-rich Nigeria saw its GDP grow by 5.3% last year and is set to expand 7% this year.
In contrast, Zimbabwe, which has been beset with soaring inflation and slowing agricultural output, shrank by some 5% during the same period. Mauritius and Madagascar, meanwhile, have suffered in the wake of Asian textile producers.
Even as growth is set to increase, the bank's chief economist, Louis Kasekende, warned that the projected figures would not be adequate for Africa to hit its goal of halving the number of people living in extreme poverty within eight years. To attain that goal, economic growth would have to be some 7-8% annually. Asian growth
The AfDB event - taking place in Shanghai - comes as China has shown increasing interest in investing in Africa. The Asian nation's appetite for raw materials has boomed as part of its breakneck economic growth. China's Premier Wen Jiabao is expected to address the event, which is set to run to 17 May and includes 53 African states. Topics to be discussed include education, telecommunications and infrastructure schemes.Article taken from BBC News, http://news.bbc.co.uk/2/hi/business/6653939.stm______________________________________________
Globalization helps in economic growth of individual countries. As we can see from the article, Africa is able to achieve a 6% economic growth is due to overseas demand from China and other rapidly-growing nations for their natural resources. If globalization has never happened, in a way that global connectivity is never achieved, countries will not be able to trade and buy goods from one another and boost each other's economy status. This view can be supported with another example. In a recent article on the internet, it is proven that globalization has helped Europe's economy. Europe's Commissioner, Joaquín Almunia, outlined his thoughts on globalization as both a challenge and an opportunity for the Europe, stressing his belief that it mostly offers an opportunity for economic growth. A more unified EU, a common currency in the euro, macro-economic discipline, a dynamic single market and open trade were all highlighted as points of note for European growth. Going through these examples and outlining the status of each and the role they play in a larger plan for economic reform, the Commissioner noted different levels of progress in each. He also pointed out that along with this opportunity for growth, comes a great amount of responsibility. Stating that if globalization is to be successful it must be fair, he asserted his view that it is the job of all those involved to make sure that the benefits of globalization are spread to all of the world's citizens.
As proven, benefits of globalization should be used to compliment and help the poorer countries to improve on their economic status. Such countries include Africa.
Tuesday, May 15, 2007
Before we start analyzing the comic above, let us look at the definiton of free trade:
Free trade is a market model in which trade in goods and services between or within countries flows unhindered by government-imposed restrictions. (Restrictions to trade include taxes and other legislation, such as tariff and non-tariff trade barriers.)
As we can see from the comic, it shows a man (who is bigger in size compared to the other two petite men sitting at each of his sides) exclaiming his joy for the arrival of free trade. We can easily tell that he is from the Corporate America as it is clearly marked on his suit. At his left side sat a man who is a foreign worker working in the US. He carries a solemn expression, with his foot tied to a metal ball which says "Slave wages, no worker rights". While at the right side of the man from Corporate America, sat a US worker who alse has his foot tied to a metal ball which says "Massive layoffs, vanishing worker rights". The obvious size differences that is being observed from the comic displays the authority of the Corporate America has over US workers and the foreign workers working in the US. Also, judging from the whip and metal chain in the hands of the man from Corporate America, we can conclude that he has control over the US and foreign workers working in US. He is able to torture them and make them do to his favour.
With globalization, it brings free trade into the economy system. As much as the convenience of free trade rules the economy, it cancels out worker rights and lowers down wages by a double. Also, there comes massive layoffs. Free trade indeed brings priviledges and benefits to the government, but in general it does not benefit individual workers. With massive layoffs and lowering of wages, workers will have to work harder or find other alternatives to support themselves and their families. If this continues, the country's economic status might get affected with the decrease in employment. The economy flow will not be even out as the rich will get richer and the poor will get poorer. In my opinion, free trade is not one of the best way to organise an economy.
About
Jennifer Liu Zhe
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A ECONOMIC expert ;)
She knows about Globalization too!