The impact of globalization on the Kenyan economy
Over the past few decades, Kenya has been integrating with the global economy. There have been both negative and positive effects of this integration on the Kenyan economy. Agriculture is the backbone of this country’s economy, and it is the most crucial sector. Furthermore, most of the country’s population draws its earnings from agriculture. We, therefore, give you an analysis of the impact of globalization on the Kenyan economy.
Globalization is the process by which world countries interact on an international scale. It involves continuous connectivity as well as interdependence globally. Increasing technology has accelerated globalization in the past two decades because it provides a platform where countries can interact with other countries from all parts of the world.
Few African countries have been able to keep up with the pace of globalization. This leaves most African economies behind because they are highly corrupt and poorly governed.
Kenya participates in the global international trade where they import and export goods. Kenya is a developing country, lacks adequate resources to participate in international trade effectively. The economy has been facing challenges of corruption and misappropriation of funds, just like in most African countries. As a result, Kenya has not fully benefited from globalization like other countries.
Positive impacts of globalization on the Kenyan economy
1. Globalization has created job opportunities in Kenya
Globalization has dramatically influenced the growth of employment opportunities in the country. This is because many companies like Toyota currently operate internationally. Toyota has its offices in Kenya, and this has been an excellent opportunity for many jobless Kenyans.
2. Globalization has improved education in Kenya
Education opportunities have been available in Kenya through globalization. Many Kenyan citizens have managed to move to other countries through scholarships to acquire quality education. Some Kenyan students have managed to earn scholarships for degrees and master’s programs in the USA. The acquisition of quality education has also led to cultural integration.
3. Globalization has led to an increase in awareness through fast information flow
The rapid flow of information has benefited Kenya in different ways. First, it has made the transportation of goods and services more accessible. Most importantly, a faster flow of information increases awareness since information can be transmitted in seconds. This makes it easier for businesses that operate internationally to conduct their activities.
Negative impacts of globalization on the Kenyan economy
1. Unfavorable working conditions for employed Kenyans
Kenya is a developing country, and it has been exploited continuously in terms of labor. Many Kenyans provide cheap labor for developed countries. This has led to people working under unfavorable conditions with high exposure to health hazards.
2. Reduction in food security
It has been a substantial economic burden in the country over the past few years. Trading with countries like china has brought negative impacts on food security because they are not adequately inspected once imported.
Many Kenyans have to suffer as a result of this tragic. There have been numerous reports on food impurities in the goods imported into the country. This has placed the lives of many Kenyans at stake.
This is a significant problem in Kenya and other developing countries. Many cases of terrorism have been reported ever since Kenya joined international trade. Lots of terrorists find their ways in the country with intentions of staging a terrorist attack. This creates tension and instills fear in citizens as they live together without even trusting one another.
You may also read: Food Insecurity
It is with no doubt globalization has affected the growth of the Kenyan economy both positively and negatively. There is a need to improve governance at the local and international levels. This is because poor governance and corruption are the main reasons why Kenya has not fully benefited from globalization.