Philippe Hugon's analysis of the changes wrought by globalization on the African economies

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Philippe Hugon's analysis of the changes wrought by globalization on the African economies

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Abstract

Despite the effect of globalization on some economies, particularly those of East Asia, Africa has remained untouched by this phenomenon. Among the 49 Least Developed Countries (LDCs), 34 are now on the Dark Continent.

Although the continent accounts for 11% of world globalization, it only carries out 1% of the PIBM and 2% of international trade. The analysis of main components of globalization (trade, financial globalization, R & D, IDE etc.) projects the image of a continent that finds itself in a position of relative marginalization or exclusion.

According to Philippe Hugon in 'Globalization: Words and Things' (1999), the term globalization reflects an interdependence between five processes: -Financial globalization, the global organization of production, the free movement of goods, migrations and shifts in population and the immediacy of information.

This globalization, at the heart of concerns, appears to be particularly beneficial for some countries, as successfully illustrated by the emergence of certain zones in ESA. Nevertheless, it has caused frustration and marginalization of the peripheral areas (in the Braudellian sense) in "poverty traps", particularly in Africa

Tags: Philippe Hugon, African globalization, African economy

Introduction
External analysis
1. Industry Definition
2. Analysis of economic forces affecting the industry (PESTEL)
3. Industry Analysis: Porter's 5 Forces
4. Industry segmentation
Internal Analysis
1. Defining the Enterprise
2. Resource Analysis
3. Skills Analysis
4. Analysis Balance ScoreCard
5. Analysis of corporate governance
Final Diagnosis
1. Reflecting on the situation of the company
2. The possible development paths

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[...] It has the originality to focus on the private sector based on the five major regions of the African Union. It favors the African ownership of development processes and aims at a new partnership based on shared responsibility and mutual interest. These are the African countries themselves who will be responsible for identifying, assessing and financing the joint investment projects. To fit positively into globalization, Africa must move from the logic of commodity exports used to satisfy the debt of up market products through diversification of the productive private and public investment. [...]

[...] The analysis of main components of globalization (trade, financial globalization, R & IDE . ) gives the image of a continent that in the majority is in a position of relative marginalization or exclusion. According to Philippe Hugon in globalization: the Order of Things (1999), the term globalization reflects interdependence between five processes: - Financial globalization - The world organization of production - The free movement of goods - Migration and population movements - The immediacy of information. This globalization, now at the heart of concerns, proves to be particularly beneficial for some countries, success illustrated by the emergence of certain areas (ASE = 2.3 billion people). [...]

[...] In the context of liberalization and privatization, we can see a diversification of investors. The weakness of FDI is explained by: - The limited size of economies - Institutional failures and infrastructure - A loose economic and social fabric - The low human capital - Uncertainties in terms of: o Political instability o Volatility of economic policies o International instability D. ICT and the scientific divide. Over 90% of African Internet users are concentrated in South Africa. In 1999, less than of the population had Internet access in Sahelian Africa. [...]

[...] Thus, the weighted average tariffs were increased in West Africa by 30% in 1980 to 18% in 1995. b. The impact on the Cotonou Agreement (2000) This agreement extends the trend of erosion of preferences. The EPAs are free trade at country or regional groupings. The 'Everything but Arms which came into force in 2001, provides progressive access to the duty free EU market and quota for all products originating from LDCs, except arms and ammunition. C.Completion of decommissioning and geopolitical strategies of major powers. [...]

[...] I - The impact of globalization on African economies. Globalization of trade and commercial marginalization. World trade, carried out for about 2/3 by the Multinational Companies (MNCs), is performed increasingly by High Added Value Products (HVA) and services, today included in the WTO agreements. The dynamic comparative advantages are related to technological innovation, capital mobility and diffusion of new products. But Africa has been able to achieve an increase in range of these products. It exports mainly primary products; the income elasticity-demand (ratio between relative change in demand and relative change in income) is low and unstable prices. [...]

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