African Union Financial Strategies

Africa, my dream. (Photo credit: MadalenaPestana)

The New Partnership for Africa’s Development (NEPAD), founded in 2001 to ensure economic cooperation among African countries, has the potential to succeed if existing financial strategies are put into effective use and observed by all member states. In its initial conception, NEPAD was founded to overcome the poor economic conditions that was visible in Africa and also achieve the overall 7% annual target growth rate expected for attaining the Millennium Development Goals (MDG) by 2015 (de Waal, ). There is skepticism among economists as to whether every country in Africa can meet the MDG expectations. However, few countries in the continent have been able to push their economies forward and meet MDG anticipation.

NEPAD has a better chance of experiencing successful growth by partnering with G8 nations and the OECD states. The African continent has plenty of unexploited resources that include petroleum reserves and immeasurable mineral wealth. The continent’s vast tropical coastlines can be used to boost the idle tourism industries of many African states. In some African states, maintaining security is crucial before undertaking any viable socioeconomic projects. Increased human integration, financial responsibility, and effective communication are opening various corridors and bringing many isolated parts of Africa into the global limelight. Overseas-based Multinational Corporations (MNCs) may be credited for the promotion of human development and the creation of jobs in stable African democracies.

According to O’Neill (2004), there are many linkages in economic integration and it includes geographical regions. In the last few centuries, African states have been experiencing inter-regional commerce, international trade and investment. Since Africans are now getting better educated and that many professionals have connections with the outside world, there is hope for the continent to experience increased growth and investment. Some limitations to the financial strength of NEPAD include retarded technology, protracted insecurity, poor governance, lack of enhanced communication, and corruption. However, the continent is experiencing improvements in internet technology, marketing products to international level, and partaking in the global market business.

References

De Waal, A. (2002). What’s new in the ‘New Partnership for Africa’s Development’? International affairs 78, 3 (2002) 463-75.

O'Neill, T. (2004). Globalization: Fads, fictions and facts. Business Economics, 39(1), 16–27

Global Financial Synchronization

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In the last few decades, with the ushering in of globalization, the world woke up to the marvelous transformation of its financial administration and effectuation of information and informatics. At the end of the World War II, nations observed restrictions on cross-border trade (Stulz, 2005). Easing financial restrictions and opening trade barriers led to what we know today as ‘financial globalization’. In almost every continent, organizations became accustomed to a unique system of financial synchronization that eased how business is conducted. On the other hand, new organizations that took pleasure at helping other organizations ease their financial problems sprouted in financial stable nations of North America and Europe consequently leading to the opening branches in far away lands. Building of institutions, enhanced market discipline and deepening financial sector hastened human interconnectedness, business trust, and business risk taking. It has now become an acceptable standard procedure in academia and polity circles that financial globalization can be applied globally to benefit any country.

In some parts of the world, especially in economically advanced nations, instances of ‘globalization backlash’ may be experienced as a result of inequitable distribution of wealth as was seen during the WTO meeting in Seattle in 1999. Sbordone (2007), argues that trade integration, bolstered by policy incentives, is what triggers competition. Corporate governance, defined as the legal, institutional, and cultural mechanisms that help owners and stakeholders have control over the activities of insiders and management has been, according to Oxelheim and Trond (2001), beneficial since the rise of globalization. Despite the efficiency and change in global business trends, risk factors will be there to stay. In modern times, firms can either opt for the Anglo-American system, the Japanese system, the German system, or the Latin system to enhance corporate governance (Oxelheim and Trond, 2001).

References

Stulz, R. (2005). Presidential address: The limits of financial globalization. The journal of finance, Vol. LX, No. 4.

Sbordone, A.M. (2007). Globalization and inflation dynamics: The impact of increased competition. National Bureau of economic research. Working paper 13556.

Oxelheim, L. and Trond, R. (2001).The impact of foreign board membership on firm value. IUI, the Research Institute of Industrial Economics. Working Paper No. 567.

Corporate Responsibility

Image by NekaPearl via Flickr

Leadership of the yesteryears is quite different from today’s modern leadership styles that are mainly driven by the volumes of advanced literary writings that are widely available in electronic and in print form and the technological innovation we see sweeping across the globe. Modern academia has played a great role in shaping the various leadership styles currently in use in the running of organizations driven by massive globalization. As the nature of leadership changes by day, one trend that needs to be addressed thoroughly is the great imbalance between majority and minority groups in the running of government institutions, corporations, and international organizations.

For a long time, minority groups have suffered the effects of stratification and marginalization imposed on them by majority groups wielding considerable power and influence in government and in the private sector. There is a tendency for plurality groups to feel threatened when they are excluded from power yet they don’t allow minority groups a share of power (Fearon, Kasara & Laitin, 2006).

Organizations have a responsibility to the societies that make their existence possible. Corporate social responsibility has been accelerated by changing trends in global business and the arrival of globalization. While society plays a great role in the proliferation of corporations worldwide, likewise, corporations have a responsibility to elevate the living conditions of society through the provision of education, healthcare services, environmental protection, infrastructure development, and delivery of clean water and other humanitarian services.

References

Fearon, J., Kasara, K., & Laitin, D. (2006). Ethnic minority rule and civil war onset. Stanford University. Retrieved from www.stanford.edu/~jfearon/papers/fearonkasaralaitin3.doc

Hopkins, M. (2004). Policy integration department world commission on the social dimension of globalization. International Labor Office, Geneva. Retrieved from http://www.ilo.org/legacy/english/integration/download/publicat/4_3_285_wcsdg-wp-27.pdf

The Impact of Globalization on Leadership

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Globalization may be lauded for the tremendous role it has played in spreading leadership and management and in reforming organizational conduct in almost every corner of the world especially in countries that have democracy as their systems of governance. According to Baylis, Smith, and Owens (2008), globalization has been translated to mean various things with some scholars defining it to mean “international interconnectedness i.e. linkages between countries (p. 17)”. The radical spread of communication to all corners of the globe especially air and sea travel and the meticulous broadband internet connection are some of the driving factors that have made globalization almost universal in context. Lehman (2008) believes that the role of corporations in global commitment is one geared towards economic enlightened self-interest. To have business success in foreign environments, organizations time and again feel compelled to change the way they deal with other cultures. For example, GM may have to change its organizational structure when it opens a new base in Hanoi, Delhi or in Bamako. This is done mainly to accommodate the diverse and unique socio-cultural environments encountered by the overseas-based organization.

Many Western multinational corporations, international and political organizations have spread their business operations far and wide by having branches in many parts of the world. The demand for the products made by these corporations and the expertise they provide are some factors that necessitated cross-cultural corporation. According to Pease (2008), “Multinational corporations (MNCs) are private, for-profit organizations that have commercial operations and subsidiaries in two or more countries”. On the other hand, there are transnational corporations (TNCs) that have their headquarters in one country and branches in several countries (WHO, 2011). Monsanto and Sony are examples of TNCs whose businesses are based on resource extraction and manufacturing. To ensure the required working standards are met, these international conglomerations have taken initiatives to train local employees to international levels. Corporations or organizations that have branches in many parts of the world include banking institutions, accounting firms, auto-industries, household goods manufacturers, aerospace engineering firms, beverage manufacturers, educational and health institutions, cigarettes makers, and petroleum and industrial products manufacturers.

Specific international corporations or organizations that have made great strides in diplomacy, trade and industry include Toyota, GM, BMW, AUDI, VOLVO, Coca Cola, Siemens, Price Waterhouse, the United Nations, and government consulates and embassies. These organizations or corporations put great emphasis in training leaders who are responsible for the smooth running of their operations worldwide. Corporations or organizations are at the forefront of expanding their empires by setting foot in unchartered territories while hosting nations aspire to emulate them by benefitting from their leadership potentials and the array of missing products at their disposal.

To create a culture of excellence, it is of paramount importance that leaders understand the impact of globalization regardless of region or locality (Tierney, 2007). However, understanding only the impact globalization has on organizations is not enough to navigate an organization. Leaders are required to effect changes to the new environment and get ready to immerse themselves in a new playing field. According to Burke (2002), for modern organizations to survive, they will have to confront the demands of adaptation and change. In the words of Welch (2001, p. 169), “Change has no constituency—and a perceived revolution has even less”. Kerno’s essay (2008), Leadership and Organizational Change: Implementation amidst the Potential Constraints of Institutionalized Formal Structure and Institutional Isomorphism, is educational and inspiring in that it touches on significant aspects of globalization and organizational change. According to Kerno (2008), organizational change in this modern era of globalization requires change of attitudes, culture, and the introduction of modern technology that replaces old or obsolete equipments to enhance production and rejuvenate workforce spirit.
Having an understanding of an organization’s deep culture-which is the main embodiment of one’s organization-help alleviate misinterpretation of organizational goals and expectations. Organizations may face restrictions in their overseas operations due to measures imposed by the host government and it is here leaders have to feel compelled to abide by the rules and introduce organizational revolutionary change. In this type of scenario, an organization cannot rely on the same play book that has been rendered inappropriate or unnecessary. At times it will be prudent to change institutionalized social structures that fail to work (Kerno, 2008).
Undoubtedly, articles and publications used in this research have been useful in explaining the implications of organizational change-revolutionary or evolutionary. Definitely, depending on the nature of environment organizations do change to suit the demands of employees, stakeholders, and customers alike. An organization in the US behaves differently when it sets a branch in a foreign country; organizations do suffer deregulation, and likewise they do meet with resistance from constituencies that do not agree with their nature of operations.

References

Baylis, J., Smith, S. & Owens, P. (2008). The globalization of world politics: An introduction to international relations. New York, Oxford University Press, Inc.

Burke, W.W. (2002). Organizational change. Thousand Oaks, CA: Sage

Kerno, S.J. (2008). Leadership and Organizational Change: Implementation amidst the Potential Constraints of Institutionalized Formal Structure and Institutional Isomorphism. St. Ambrose University

Lehman, Jean-Pierre (2008). Globalization, corporate leadership and inclusive growth: An Indian agenda for global knowledge & local implementation. The Indian Institute for Corporate Affairs (IICA), the confederation of Indian industry (CII) & IMD – The Evian Group.

Pease, S. (2008). International Organizations: Perspectives on Governance in the twenty-first century. Upper Saddle River, NJ. Pierson/Prentice Hall.

Tierney, W.G. (2007). Academic leadership and globalization. The Department Chair, Vol. 17 No. 4. Retrieved from http://media.wiley.com/assets/1308/42/DepartmentChairSample051507.pdf

Welch, J. F., Jr. (2001). Jack: Straight from the gut. New York: Warner Books

WHO (2011). Trade, foreign policy, diplomacy and health: International Corporations.
Retrieved from http://www.who.int/trade/glossary/story057/en/index.html

Globalization, Leadership, and Organizational Change

Image by Esthr via Flickr

Globalization may be lauded for the tremendous role it has played in spreading leadership and management and in reforming organizational conduct in almost every corner of the world especially in countries that have democracy as their systems of governance. According to Baylis, Smith, and Owens (2008), globalization has been translated to mean various things with some scholars defining it to mean “international interconnectedness i.e. linkages between countries (p. 17)”. The radical spread of communication to all corners of the globe especially air and sea travel and the meticulous broadband internet connection are some of the driving factors that have made globalization almost universal in context. Lehman (2008) believes that the role of corporations in global commitment is one geared towards economic enlightened self-interest. To have business success in foreign environments, organizations time and again feel compelled to change the way they deal with other cultures. For example, GM may have to change its organizational structure when it opens a new base in Hanoi, Delhi or in Bamako. This is done mainly to accommodate the diverse and unique socio-cultural environments encountered by the overseas-based organization.

Many Western multinational corporations, international and political organizations have spread their business operations far and wide by having branches in many parts of the world. The demand for the products made by these corporations and the expertise they provide are some factors that necessitated cross-cultural corporation. According to Pease (2008), “Multinational corporations (MNCs) are private, for-profit organizations that have commercial operations and subsidiaries in two or more countries”. On the other hand, there are transnational corporations (TNCs) that have their headquarters in one country and branches in several countries (WHO, 2011). Monsanto and Sony are examples of TNCs whose businesses are based on resource extraction and manufacturing. To ensure the required working standards are met, these international conglomerations have taken initiatives to train local employees to international levels. Corporations or organizations that have branches in many parts of the world include banking institutions, accounting firms, auto-industries, household goods manufacturers, aerospace engineering firms, beverage manufacturers, educational and health institutions, cigarettes makers, and petroleum and industrial products manufacturers.

Specific international corporations or organizations that have made great strides in diplomacy, trade and industry include Toyota, GM, BMW, AUDI, VOLVO, Coca Cola, Siemens, Price Waterhouse, the United Nations, and government consulates and embassies. These organizations or corporations put great emphasis in training leaders who are responsible for the smooth running of their operations worldwide. Corporations or organizations are at the forefront of expanding their empires by setting foot in unchartered territories while hosting nations aspire to emulate them by benefitting from their leadership potentials and the array of missing products at their disposal.

To create a culture of excellence, it is of paramount importance that leaders understand the impact of globalization regardless of region or locality (Tierney, 2007). However, understanding only the impact globalization has on organizations is not enough to navigate an organization. Leaders are required to effect changes to the new environment and get ready to immerse themselves in a new playing field. According to Burke (2002), for modern organizations to survive, they will have to confront the demands of adaptation and change. In the words of Welch (2001, p. 169), “Change has no constituency—and a perceived revolution has even less”. Kerno’s essay (2008), Leadership and Organizational Change: Implementation amidst the Potential Constraints of Institutionalized Formal Structure and Institutional Isomorphism, is educational and inspiring in that it touches on significant aspects of globalization and organizational change. According to Kerno (2008), organizational change in this modern era of globalization requires change of attitudes, culture, and the introduction of modern technology that replaces old or obsolete equipments to enhance production and rejuvenate workforce spirit.

Having an understanding of an organization’s deep culture-which is the main embodiment of one’s organization-help alleviate misinterpretation of organizational goals and expectations. Organizations may face restrictions in their overseas operations due to measures imposed by the host government and it is here leaders have to feel compelled to abide by the rules and introduce organizational revolutionary change. In this type of scenario, an organization cannot rely on the same play book that has been rendered inappropriate or unnecessary. At times it will be prudent to change institutionalized social structures that fail to work (Kerno, 2008).

The articles and publications used in this research have been useful in explaining the implications of organizational change-revolutionary or evolutionary. I have come to realize that organizations do change to suit the demands of the employee, stakeholders, and customers depending on the nature of environment. An organization in the US behaves differently when it sets a branch in a foreign country; organizations do suffer deregulation, and likewise they do meet with resistance from constituencies that do not agree with their nature of operations.

References

Baylis, J., Smith, S. & Owens, P. (2008). The globalization of world politics: An introduction to international relations. New York, Oxford University Press, Inc.

Burke, W.W. (2002). Organizational change. Thousand Oaks, CA: Sage

Kerno, S.J. (2008). Leadership and Organizational Change: Implementation amidst the Potential Constraints of Institutionalized Formal Structure and Institutional Isomorphism. St. Ambrose University

Lehman, Jean-Pierre (2008). Globalization, corporate leadership and inclusive growth: An Indian agenda for global knowledge & local implementation. The Indian Institute for Corporate Affairs (IICA), the confederation of Indian industry (CII) & IMD – The Evian Group.

Pease, S. (2008). International Organizations: Perspectives on Governance in the twenty-first century. Upper Saddle River, NJ. Pierson/Prentice Hall.

Tierney, W.G. (2007). Academic leadership and globalization. The Department Chair, Vol. 17 No. 4. Retrieved from http://media.wiley.com/assets/1308/42/DepartmentChairSample051507.pdf

Welch, J. F., Jr. (2001). Jack: Straight from the gut. New York: Warner Books

WHO (2011). Trade, foreign policy, diplomacy and health: International Corporations.
Retrieved from http://www.who.int/trade/glossary/story057/en/index.html

The Impact of Globalization on Liberia’s Ecosystem

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Introduction

Contrary to global socio-economic expectations, the West African state of Liberia has been slowly capitalizing on the growing and unique human interaction and interconnectedness sweeping the world in the name of globalization. Decades of recurring civil wars, coup d’états, endemic corruption, environmental pollution, and protracted insecurity has made Liberia a laughing stork in a world experiencing tremendous economic globalization. Despite Liberia’s proximity to the United States in terms of culture, politics, and history and despite Liberia containing abundant exploited and unexploited natural resources, the country has not achieved much in terms of economic globalization. The purpose of this paper is to shed light on how globalization has impacted the ecosystem of the said beleaguered, impoverished, and war-ravaged nation and how Multinational Corporations (MNCs) have been in the forefront of depleting, polluting, and imposing immeasurable strain on Liberia’s ecology in the absence of corporate social responsibility.

Liberia: International Membership

Liberia is party to the following International Agreements: Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Desertification, Endangered Species, Hazardous Wastes, Ozone Layer Protection, Ship Pollution, Tropical Timber 83, Tropical Timber 94, and Wetlands. It has signed but not ratified the following agreements: Environmental Modification, Law of the Sea, and Marine Life Conservation.[1] The unemployment rate of Liberia is 85%; population below poverty line is 80%; as of December 2008, commercial bank prime lending rate stood at 14.4%; inflation rate (consumer prices) stood at 11.2% (2007); as of 2006 Liberia’s estimated exports was $1.197 billion while estimated imports was $7.143 billion for the same year. [2]

Definition of Globalization

John Baylis, in his book The Globalization of World Politics, defines globalization as: “a historical process involving a fundamental shift or transformation in the spatial scale of human social organization that links distant communities and expands the reach of power relations across regions and continents.” [3] Said other way, globalization is the collective integration of political, economical, and cultural efforts across the globe. It emphasizes and incorporates trade and technology, health and culture, environment and migration, investment, banking and money issues, development and gender issues, international law and organizations, energy, human rights, global education, and global media. While globalization has been applauded in different regions as a strong allocator of resources, distrust and indecision to grasp its benefits has left many Third World nations including Liberia lagging behind in the field of economic globalization. There are very few Multinational Corporations (MNCs) in Liberia. One such notable MNC is the Firestone Corporation. “Multinational Corporations are private, for-profit organizations that have commercial operations and subsidiaries in two or more countries.” [4] MNCs may be headquartered in one country but have subsidiaries in secondary countries. MNCs retain ownership of and managerial control over subsidiaries while producing goods and services for the world markets at the least possible cost. [5]

Rubber Introduction and Production

Rubber was introduced to Liberia from South America in 1900s with Bridgestone, a Japanese company-the parent company of Firestone-owning the largest rubber plantation. The first large-scale rubber plantation was started in 1906, when American industrialist, Harvey Firestone started 118,000 acre (48,000 ha.) concession some 50 kilometers east of the Liberian capital Monrovia. Despite being owned by Bridgestone, Firestone has it’s headquarter in Nashville, Tennessee. In total, there are seven major rubber tapping companies in Liberia, namely: Firestone, Liberia Agricultural Company (LAC), Guthrie, Liberia Company (LIBCO), Salala Rubber Corporation, Cavalla and Sinoe Rubber Corporation (SRC). According to a 2002 IMF report, Liberian rubber exports were estimated at 54.7 million USD with rubber production accounting for 99,569 tons for the same period. [6] Even though rubber is a source of immense wealth for Liberia, persistent corruption undermines the equitable distribution of resources. A comprehensive report produced by a joint publication of Partnership Africa Canada (PAC) and the Association of Environmental Lawyers of Liberia (Green Advocates) states: “Firestone, after all, has been extracting rubber from Liberia for over 70 years, and has so far not manufactured so much as a single rubber band in the country.” [7] There have been widespread manipulations of the economy of Liberia by the rubber producing sector. This is stipulated in a comprehensive produced by UNMIL. “In May 2006, the UNMIL Human Rights and Protection Section (HRPS) studied Liberia’s rubber sector and published a series of key findings and recommendations pertaining to the sector. 66 Issues that it examined included human rights concerns pertaining to the industry; post-conflict business practices and corruption; the status of and role of commercial rubber concession and management agreements; worker, child, and community rights; implications of plantation agriculture and sectoral industrial practices for the environment; and the rule of law within the rubber sector, including issues relating to ex-combatant occupation of plantations.” [8] According to UNMIL reports, labor disputes with rubber conglomerations remain a security concern for the government of Liberia (GOL).

Negative Implication of Globalization

The interaction of plants, animals, and other organisms with the environment is defined as an ecosystem and may include deserts, grasslands, tundra, deciduous forests, and tropical rain forests. Any form of alteration in the ecosystem like logging, slash-and-burn, soil erosion, insect infestations, desertification, and desertization usually results in environmental depletion and ecological degradations. Scientifically, pollution is defined as “an undesirable change in the physical, chemical or biological characteristics of air, water, soil, or food that can adversely affect the health, survival, or activities of humans or other living organisms.” [9] The refusal by some developed countries to ratify the Kyoto Protocol has raised wild condemnations. Environmental scientists have come up with what they refer to as “Pollution Haven Hypothesis” which will allow China and India to be exempt from emission caps because of the United States’ refusal to ratify the Kyoto Protocol. On the other hand, because of this exemption, domestic industries will head to China and India. “A common criticism is that advanced economies have often moved their more dirty industries to other parts of the world where there are less stringent environmental and social standards. As a result, other countries may be polluting on their behalf…” [10]

Current environmental issues for Liberia include tropical rain forest deforestation; soil erosion; loss of biodiversity; pollution of coastal waters from oil residue and raw sewage. Often, MNCs have been accused of practicing varying forms of exploitations: manipulation of child labor and environmental degradations in regions governed by corrupt regimes where laws are lax and ineffective. [11] Reports abound of workers suffering untold health hazards while perilously toiling extended hours in poor conditions. Liberia’s European-owned timber industries have been implicated in illegal arms trafficking. According to a 2003 report, arms shipments destined for Charles Taylor arrived at ports controlled by the timber industry. The report further affirms that arms shipments arrived from Eastern Europe every two to three weeks via Nigeria and Libya before being dispatched to their right destinations to wreck havoc on peaceful civilian populations. “The government’s timber policy ignored international logging restrictions by permitting timber companies to clear-cut large expanses of protected West African rain forest."[ 12] The departure of Charles has left Liberia in a state where the current central government under Ellen Johnson Sirleaf still remains confounded by traces of corruption and environmental pilfering. Usually, it takes many years for any nation to recover from such gross human miscalculations.

In Liberia, employers are not mandated by law to provide their employees with certain benefits such as medical, paid vacation, sick leave, and unemployment benefits that are enforced in the west. Working in concert with successive regimes that were unsympathetic to defenseless civilians, Firestone and like corporations meticulously depleted the Liberian ecosystem through pollution, destruction of fauna and flora, and the practice of negative externalities. Employees of Firestone have consistently complained about Firestone’s indiscriminate dumping of toxic wastes into the riverways adjacent to the plantations owned by Firestone without considering the consequences these chemicals may have on the workers’ health. Workers complained of exposure to pesticides, formaldehyde, and toxic fumes from ammonium nitrate during rubber processing. With a meager wage of USD 3.19 a day, workers, oftentimes, with the help of their children, have to work 21 exhausting hours a day, to tap 1,000 trees.[13]

In the past, Bridgestone/Firestone sponsored the Super Bowl with the goal of showcasing its brands to 1 billion viewers around the world. Ironically, NFL Commissioner Roger Goodell, who in the past closed his eyes to the actions of Bridgestone/Firestone by allowing it to be a sponsor of the NFL, is a board member of Action for Healthy Kids. An organization whose goal is to fight the causes of obesity and undernourishment in children, the vision of Action for Healthy Kids is to ensure “all kids develop the lifelong habits necessary to promote health and learning.

Positive Implication of Globalization

Despite globalization integrating capital, technology, and information across national borders, tensions exist between the globalization system and ancient forces of culture, geography, tradition, and community. Before the outbreak of the civil in 1989, Liberia was the leading producer of Iron ore in Africa with sizable deposits found in the Bomi Hills, the Bong Range, the Mano Hills, and Mount Nimba, where the largest deposits occur. Other minerals include diamonds, gold, lead, manganese, graphite, cyanite (a silicate of aluminum, with thin bladelike crystals), and barite. With increased hardwood timber production, Coffee and Cacao cultivation, Liberia has seen substantial increase in the number of foreign corporations settling in the country. Just like its neighbor Sierra Leone, the abundance of uncut diamonds necessitated the spread of “blood” or ‘conflict” diamonds, consequently prompting the UN to impose a ban in 2001. Under the auspices of the Kimberley Process Certification Scheme, an international program that ensures that the rough diamonds trade does not finance armed conflict, diamond mining resumed in 2007 with the blessings of the UN.

The registration of foreign merchant ships under the Liberian “flag of convenience” has made Liberia one of the world's leading countries in registered shipping tonnage second after Panama. The announcement by President George W. Bush on May 31, 2003 of the Proliferation Security Initiative (PSI) saw Liberia sign sea boarding agreement on February 11, 2004 which gives either one of parties to this agreement the right to board, search, and if possible detain any ship found to be harboring suspicious cargo. Such initiatives have given Liberia, Panama and other nations that are party to the PSI the obligation to bring about greater self-assurance in their flag registry. With ongoing deepwater oil exploration along the Atlantic coast, the prospect of tapping into black gold has so far not diminished. The presence of the United Nations Mission in Liberia (UNMIL) preceded by contingents from the Economic Cooperation of West African States (ECOWAS), the implosion of shipping lanes, the interaction of Liberians with the United States and the European Union (EU) through commerce, migration, and education and their mutual relationship with Asian countries like China, South Korea, and Japan through trade imports, and the elimination of policy barriers to trade and investment, have intensified economic globalization.

Income Inequalities

Attributing globalization to the demise of the poor is a misguided notion. With the exception of a few global leaders with futile beliefs towards globalization, many nations-especially developed ones-remain convinced that globalization does more good than harm to the poor. Those leaders opposed to globalization have the penchant to hold back the four components that are a forerunner for growth and development: economic integration, technology, political engagement, and personal contacts. Trade, Foreign Direct Investments, capital inflows and outflows, and net factor income are the determining factors in economic integration. Critics of globalization are of the opinion that globalization has brought rising inequality and poverty. Another downbeat argument by some writers or scholars is that MNCs significantly change the infrastructure of host countries and at the same time alters the culture and tradition of the locals they encounter.

Conclusion

Even though the cultural and environmental quandaries created by foreign-based transnational corporations like Firestone may seem disastrously discombobulating at first glance for any concerned environmentalist, the strengthening of the global environmental agency UNEP and the reinforcement of Liberia’s EPA could place a cap on further destruction of Liberia’s cultures, traditions, and the environment not only for the present but for posterity. As long as Firestone-Liberia and other multinational or transnational corporations operating in Liberia abide by the internationally recognized environmental standards management set forth by ISO 14000, there shouldn’t be any problem for it operating from far a field in any developing country including Liberia.

Endnotes
[1] Liberia: African Development Bank-World Bank Joint Assistance Strategy, 2008-2011 and Eligibility to the Fragile States Facility http://www.afdb.org/fileadmin/uploads/afdb/Documents/Project-and-Operations/Liberia_%20JAS%20BAD-WB%202008-2011%20Eligibility%20to%20the%20Fragile%20States%20Facility.pdf
(Accessed July 16, 2010)

[2] Liberia Economy 2010, CIA World Factbook,
http://www.theodora.com/wfbcurrent/liberia/liberia_economy.html
(Accessed July 16, 2010)

[3] John Baylis et al., The Globalization of World Politics: An Introduction to International Relations (4e), Oxford University Press, Great Clarendon Street, Oxford ox2 6DP (P19)

[4] Kelly-Kate S. Pease, International Organizations, Perspectives on Governance in the Twenty-First Century (3rd. ed.), Pearson Education, Inc., Upper Saddle River, New Jersey 07458

[5] Gilpin, Robert, The Political Economy of International Relations, Princeton University Press, Princeton, NJ, 1987

[6] United Nations Mission in Liberia (UNMIL), Human Rights in Liberia’s Rubber Plantations: Tapping into the Future (May 2006)
http://www.laborrights.org/files/UN%20Liberia%20Rubber%20Report-%20%20May%202006.pdf
(Accessed July 16, 2010)

[7] Land Grabbing and Land Reform: Diamonds, Rubber and Forests in the New Liberia
http://www.pacweb.org/Documents/diamonds_KP/17_Liberia-Land-Grabbing-Reform_Jul2007.pdf
(Accessed July 16, 2010)

[8] Liberia's Post-War Development: Key Issues and U.S. Assistance by Nicolas Cook Specialist in African Affairs, May 19, 2010
http://www.fas.org/sgp/crs/row/RL33185.pdf
(Accessed July 25, 2010)

[9] G. Tyler Miller, Jr., Sustaining the Earth: An Integrated Approach, Thomson Higher Education, 10 Davis Drive, Belmont, CA 94002-3098

[10] Corporate Social Responsibility by Anup Shah, July 07, 2007
http://www.globalissues.org/article/723/corporate-socialresponsibility#Rankingcountriesontheircommitmentstocorporatesocialresponsibility
(Accessed July 16, 2010)

[11] Firestone in Liberia ‘pollution’-BBC News, Oct 29, 2009
http://www.stopfirestone.org/2009/10/firestone-in-liberia-pollution-bbc-news/
(Accessed December 3, 2010)

[12] Nations Hospitable to Organized Crime and Terrorism, Library of Congress-Federal Research Division, October 2003
(Accessed July 24, 2010)
http://www.fas.org/irp/cia/product/frd1003.pdf

[13] Emira Woods, Modern-Day Slavery and the Big Game February 3, 2008,
http://www.alternet.org/economy/75824/
(Accessed July 16, 2010)

Bibliography
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Liberia: African Development Bank-World Bank Joint Assistance Strategy, 2008-2011 and Eligibility to the Fragile States Facility ,
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Liberia Economy 2010, CIA World Factbook,
Retrieved July 16, 2010 from
http://www.theodora.com/wfbcurrent/liberia/liberia_economy.html

John Baylis et al., The Globalization of World Politics: An Introduction to International Relations (4e), Oxford University Press, Great Clarendon Street, Oxford ox2 6DP (P19)

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The Impact of Globalization on Somali Culture

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Abstract
Somalia, considered to be one of the world’s most homogenous nations, has not been exempt from the rapid wind of change currently engulfing the globe in the name of globalization. Since its inception in 1960 when it gained independence from Britain and Italy respectively after the merger of former British Somaliland and Italian Somaliland into what came to be known as the republic of Somalia, the impact of globalization on Somali culture has evidently been beneficial and detrimental in many aspects. The idea that a nation cannot progress economically without a strong central government does not coincide with the current upsurge in globalization where its impact is being felt in every corner of the world including the “stateless” nation of Somalia whose economy spiraled even with the absence of an effective central government.The immediate objective of this research is to uncover the negative and positive trends globalization has had on the Somali culture.

A Brief introduction of Somalia
Situated in the Horn of Africa, the Republic of Somalia has a land area of 637,540 square kilometers which makes it slightly smaller than the U.S. state of Texas. On a physical map Somalia resembles the figure seven or a rhino horn. Its terrain mostly consists of plateaus, plains, and highlands. Measuring 3,025km, Somalia has the longest coastline in the African continent followed by South Africa (2,798km). It is bordered by the tiny nation of Djibouti (inhabited by Somali-speaking people) to the northwest, the Gulf of Aden and Yemen to the north, Kenya to the southwest, the Indian Ocean to the East, and Ethiopia to the West. The population of Somalia was estimated by the United Nations in 2003 at 9,890,000 and is placed at number 80 in population terms among the 193 nations of the world.[1]

Somalia is endowed with unexploited mineral resources and vast maritime resources that have been a been source of contention since the collapse of the central government in 1991. The absence of a strong and effective government has left Somalia’s coastline prone to illegal fishing and dumping of toxic waste by foreign trawlers and the dreaded Mafia-an issue even voiced with deep concern by Mauritanian-born Ahmedou Ould-Abdallah, the UN envoy for Somalia.[2] Somalia’s eastern coastline overlooking the Gulf of Aden has become a hotbed for piracy that brings in millions of dollars consequently rejuvenating the economy.[3] Even though Somalia is not in the list of oil producing countries, oil explorations carried out by Conoco, Amoco, Chevron, and Philips before the military junta fell strongly indicate it could possess significant exploitable reserves.[4] In modern times Somalia remains a strategically, economically, politically, culturally and religiously sensitive region.

Defining Globalization
The term globalization resonates with a novel and emerging global topic whose definition in the myriads of available international relations textbooks and dictionaries conjure up varieties of rudimentary connotations. Charles W. Kegley, Jr. and Shannon N. Blanton, in their book, World Politics: Trend and Transformation, describe globalization as the integration of states, through increasing contact, communication, and trade, to create a common global culture for all humanity.[5] The creation of a common global culture could sound a worrisome anecdote for those whose strength of character rest on the preservation of local heritage and dynamic cultures.

Globalization and Somalia
Globalization has been around the world for a long time beginning with the interaction and integration of different societies through international trade and investment. Somalia’s proximity to the Middle East and North Africa made it a center for commerce in historical antiquity with Somali sailors and merchants trading in myrrh, frankincense, ivory, and spices with ancient Egyptians, Phoenicians, Mycenaean, and Babylonians. Even though there could be similarities between Somalia’s previous era of globalization and the current one, today’s experience with globalization is to some degree more intense for Somalia and her trading partners.

Somalia’s trial with capitalism got off the ground immediately it gained independence when the nation’s leaders adopted democracy as the preferred form of governance for the country. That dream was shuttered by the arrival of a military government that changed the nation’s governing style to Leninist-Marxist ideology.

Somalia’s current political instability excludes it from exporting finished and unfinished products and goods to many countries because of trade barriers. However, Somalia is currently the United State’s 172nd trading partner with $65 million in total (two way) goods trade during 2008. It is also ineligible for trade benefits under the African Growth and Opportunity Act (AGOA). However, U.S. exports to Somali totaled $64 million in 2008 with exports mainly consisting of resins, nuts, and fruits.[6]

The excesses committed against Somalia’s educated elite who would have been the torchbearers of globalization by the military government that ruled Somalia between the years 1969 and 1991 imperiled the political, social, and economic welfare of the entire nation.

Crafted by an African economist, the phrase “African Disease” implies what is known in the west as “brain-drain” where multitudes of educated professionals migrate to the Americas and Europe in search of greener pastures. Somalia has never been an exception as it suffered the same fate as other African nations when the most educated and experienced left the country enmasse.

Colonial environment and Somali culture: Despite centuries of warfare with colonial encroachment, the Somali culture remained relatively free from external contamination unlike other African cultures that disappeared as a result of European colonial superiority. The Somali peripatetic way of life accelerated cultural cosmopolitanism, economic interdependence, mental modernization, and regional dominance making Somalis to inhabit the most expansive land that stretch from the Somali-inhabited region in Ethiopia to as far south as Kenya’s eastern and Northern provinces while in between traversing Djibouti and Somalia.

The division of Somalia into five regions depleted Somali cultural unanimity. The emperors who ruled the Ogaden region of Ethiopia exploited local Somali culture with the dominant Amharic national language infusing alien wordings into the Somali language. Likewise, Somalis in Kenya found their cultural and linguistic expansion interrupted by the elevation and imposition of Kiswahili as the nation’s lingua franca. In Djibouti, 114 years of French colonial rule retarded the Somali language. It was only in 1972 when the Somali language came into the glare of publicity after the official writing script developed by Shire Jama Ahmed became the unanimously accepted version in favor of the Latin and Osmaniya scripts-orthography invented in the early twentieth century by the Majeerteen poet and ruler, Osman Yusuf Kenadid.[7]

The Dynamism of Somali Culture
Somalia is a homogenous nation with a mix of rich culture. Somalis speak the same language which is Somali; they have one religion which is Islam, and they enjoy similar customs. It is the clan that determines one’s place in society. A small minority group, the Somali Bantu, considered the most vulnerable communities in Somalia, has been targeted for blanket resettlement in the US after suffering chronic discrimination and predatory attacks by ethnic Somalis.[8]

In the past two decades, Somali exposure to foreign ways of life greatly impacted previously existing inter-tribal relations among various groups. In some instances, improved intercommunication due to amalgamation of communal groups may be attributed to the alleviation of major barriers pertaining to intermarriage.

Clans that exclusively observed endogamous marriages due to customary restrictions have eased imposing constraints by allowing partners to partake in the formulation of exogamy thus leading to the creation of a wholly new concept of marital relationships never before seen in Somali culture.

Perhaps, the first European to venture into Somali territory who meticulously described the culture and language of the Somali people was Sir Richard Burton. About the people and their language, he wrote: “The country teems with “poets, poetasters, poetitos, and poetaccios:”

Every man has his recognized position in literature as accurately defined as though he had been reviewed in a century of magazines-the fine ear of this people causing them to take the greatest pleasure in harmonious sounds and poetical expressions, whereas a false quantity or a prosaic phrase excite their violent indignation.[9]

Somalia has been described as a “nation of poets”. The most famous Somali poet was Seyyid Mohamed Abdille Hassan who was dubbed “mad mullah” by the British colonial administration in the late 1900s. Poetry and prose play great roles in Somali daily life even in this era of globalization where it is used as a means of communication.

Several major universities across the globe have taken the responsibility of either teaching or collecting materials related to the advancement of the Somali language. One such example is the University of Indiana in Bloomington which boosts a large collection on Somali literature deposited by the Somali Studies International Association. These materials were acquired by the university with support from the US Department of Education Title VI grant.[10] The University of Ohio has included the teaching of Somali into its African studies program. Steve Howard, who is director of the program, was recently honored with the president’s award by Sheikh Sharif Sheikh Ahmed, the current president of the Transitional Federal Government of Somalia. He was also presented with a statuette reading, "Thank you for being a friend of the Somali community."[11] Several European countries teach the Somali language to Somali children. Higher institutions of learning such as the School of Oriental and African Studies (SOAS) which is part of the University of London, the Swedish Academy in Uppsala, and Rome University have specialized study programs preserved for the Somali language.[12]

Improved Telecommunications
Somalia has seen dramatic improvement in communications. According to a study carried out in sub-Saharan Africa by Benjamin Powell who is an Assistant Professor of economics at Suffolk University and a senior economist with the Beacon Hill Institute, Somalia moved from the 29th place to the eighth in terms of telephone landlines use per 1,000 of population since it became stateless in 1991. It ranks 16th in phone mobile use, 11th in internet users, and it ranks 27th in households with televisions.

It takes three days for a telephone line to be installed; the bill for a monthly landline costs $10 with unlimited local calls and international calls cost 50 cents a minute.

Due to the explosion of internet cafes, web access costs 50 cents per minute. According to the economist, using a mobile phone in Somalia is “generally cheaper and clearer than a call from anywhere else in Africa”.[13] The nation’s three biggest mobile phone companies, Hormuud Telecom, Nationlink, and Telecom Somalia enjoy 1.8 million customers who enjoy some of the cheapest rates in the world.[14]

Positive Implications of Globalization on Somali Diaspora Culture
The thousands of Somalis who settled outside of Somalia’s borders tremendously altered the political, social, and economic landscape of the Somali nation by injecting millions of dollars in the form of remittances into a beleaguered, impoverished, and war-ravaged nation ultimately resulting in the opening of the gates of globalization. In its March 2009 report, the United Nations Development Program (UNDP) office for Somalia, estimated that Somali Diaspora remittances to the Horn of Africa nation amounted to over $2 billion in remittance flows.[15] According to the authors of the UNDP report, Somali Diaspora organizations may be credited for supporting or establishing service delivery facilities by providing regular funding flows meant for the payment of salaries in schools or hospitals. The significance of globalization and international political economy necessitate the transfer of goods and services. Thus, improved social interaction, enhanced communication, abundance and accessibility of maritime routes within Somalia’s coastline allows Somali businessmen to balance supply and demand in almost every region of the country regardless of daily hostilities.

Depending on the size or intricacy of developmental assistance, various Diaspora groups fund multifarious schemes not only in the health and education sectors but in construction, feeding centers, orphanage homes, digging of water wells, farming, banking, manufacturing, fishing, and the transportation sector.

When the military junta was in power, Somalia had only one national university. Thanks to the generous contributions of the Somali Diaspora and international organizations currently Somalia has over a dozen universities with Mogadishu University ranked 40 among 100 African universities, according to an international evaluation of world universities.
Professions that were once frowned upon by Somalia’s previously closed society have now turned out to be popular especially among aspiring youth residing in North America, Europe, and Eurasia. Massive resettlement initiated by Western nations and other self-propelled emigrational movements or undertakings enabled the heralding of a plethora of talented writers, internationally-acclaimed supermodels, and reputable artists. Modest education, easy contact with agents and publishing houses, access to computers, the internet, and general media have elevated the bulk of books, documentaries, and films consequently broadening the number of fans and readers. In the unrecognized breakaway republic of Somaliland and in the eastern autonomous region of Puntland, the semblance of peace has triggered a progression of various competing air travel companies, foreign-funded educational institutions, maritime trade and investment.

Negative Effects of Globalization on Somali Culture
General anarchy in southern Somalia and the rise of religious militancy coupled with foreign interference in Somali sovereignty have set bad precedents and adversely impacted the lives of ordinary Somalis. The proliferation of small arms and unsecured borders has forced many young Somalis to take sides in every major or minor conflict. Children as young as ten years make the bulk of child soldiers. Islamists who have laid claim to a bigger part of southern and central Somalia have imposed stringent measures on schools funded by the Diaspora by placing a ban on the teaching of English and the Sciences. They have also slapped a ban on western-style haircuts, western fashion, and western manners; in their efforts to fight vice, all cinema halls and video dens remain closed indefinitely; all men are required to have their trousers above the ankle otherwise they risk flogging or imprisonment or both; owners of television and radio stations have been told to refrain from playing music or else risk arrest and to make matters worse, the local VOA and BBC transmissions have been taken off the air and their equipments transferred to other radio stations owned by the Islamists.

The rise of Islamic militancy has not only affected Somalia but has also become a major political force in the Arab-Muslim world thus fostering chaos in “failed” states such as Sudan, Afghanistan, and now Iraq.[16] The globalization of al-Qaida and the drastic rise of radicalism after September 11, 2001 inspired the spread of proxy wars in the Horn of Africa with Somalia becoming the major breeding ground for extremists from Afghanistan, Pakistan, Yemen, US, Canada, Europe, and elsewhere.

As a result of acculturation, many Somali children born overseas have lost in touch with reality. Many of these kids have lost their parents’ cultural heritage and no wonder prison houses in Minneapolis, Ohio, California, Quebec, and Ontario hold sizable population of Somali convicts-mainly among the youth who could not find role models to emulate since majority of parents remain illiterate. Majority of offenders who are high school dropouts eventually resort to drug abuse and addiction, rape, murder, violence, and other horrendous criminal acts. The rate of unwanted pregnancies continues to skyrocket among girls; the numbers of dysfunctional homes raise alarming figures; the break-up of families and the percentile of ‘single mothers’ remains disturbing. Sizable figures of Somali Diaspora kids have become victims of stress, depression, panic, mental disorders, and anxiety.[17]
Somalis have settled in many parts of the world including Europe, North America, the Middle East, East Africa, South Africa, and North Africa. Approximately 2.5 million immigrants have secured resettlement in these regions.

Despite the hardships the dysfunctional country has been through for almost two decades, one thing is for certain: globalization is taking root at a greater pace almost everywher in in lawless Somalia. Since Somalis are naturally business-driven people, one would be out of touch to associate Somalia's economical boom with the monies generated from illegal pirating activities. Past economic strangulation, sweeping monopolization, and austerity measures imposed by the fallen regime had been the major causes of Somalia's underdevelopment witnessed from 1969 to 1991. The exit of the military regime ushered in the much-needed freedom from government involvement.


References

[1]Encyclopedia of the Nations: http://www.nationsencyclopedia.com/Africa/Somalia-POPULATION.html
[2]‘Toxic Waste’ Behind Somali Piracy by Najad Abdullahi, Aljazeera (October 11, 2008). http://english.aljazeera.net/news/africa/2008/10/2008109174223218644.html
[3]Helen Kennedy, Piracy big boon to Somalia economy; hotels, restaurants sprout in port of Eyl in pirates' presence, nydailynews, (April 9, 2009). http://www.nydailynews.com/news/national/2009/04/10/2009-04-10_piracy_boon_to_somalia_economy.html
[4]Natural Resources (Somalia), Natural Resources: http://www.janes.com/articles/Janes-Sentinel-Security-Assessment-North-Africa/Natural-resources-Somalia.html
[5]Charles W. Kegley, Jr. and Shannon L. Blanton, World Politics: Trend and Transformation (12ed), Wadsworth, 20 Channel Center Street, Boston, MA 02210
[6]Office of the United States Trade Representative: Executive Office of the President: U.S-Somalia Trade Facts. (May 26, 2010): http://www.ustr.gov/countries-regions/africa/east-africa/somalia.
[7]Shire Jama Ahmed: http://en.wikipedia.org/wiki/Shire_Jama_Ahmed
[8]Rachel Swarns, “Africa’s Lost Tribe Discovers American Way,” New York Times (10 march, 2003).
[9]Sir Richard Burton, First Footsteps in East Africa, Tylston and Edwards, The Meccan Press, 3 Soho Square, London, WMDCCCXC1V.
[10]History of Indiana University’s Somali Collection: http://www.indiana.edu/~libsalc/african/Digital_Somali_Library/history.html
[11]Youtube.com, www.ohio.edu/outlook/09-10/October/79a.cfm
[12]The Institute of Practical Research and Training: The Role of Somali language in Education by Mohamed H. Rabi. http://www.iprt.org/role_of_somali_language_in_educa.htm
[13]Benjamin Powell, Somalia: Failed State, Economic Success?, Freeman: Ideas on Liberty, (April 2009) • Volume: 59 • Issue: 3 http://www.thefreemanonline.org/featured/somalia-failed-state-economic-success/
[14]Somali mobile phone firms thrive despite chaos by Abdi Sheikh and Ibrahim Mohamed, Reuters (Nov 3, 2009) http://af.reuters.com/article/investingNews/idAFJOE5A20DB20091103
[15]The Missing Million: The Role of the Diaspora in Somali Development, a report for the UNDP by Hassan Sheikh and Sally Healy, (March 2009). http://www.so.undp.org/index.php/Somalia-Stories/Forging-Partnerships-with-the-Somali-Diaspora.html
[16]Laurent Cohen-Tanugi. The Shape of the World to Come: Charting the Geopolitics of a New Century. Trans. George Holoch, Columbia University Press (2008): pp.9
[17]The Inglorious Absentee Father in Contemporary Somali Politics by A. Duale Sii'arag. (Feb. 27, 2010). http://wardheernews.com/Articles_2010/February/Sii%27arag/27_The_inglorious_absentee_father.html