Globalization or Marginalization? The Place of Tanzania in the ‘Global Village’

1. Globalization or Marginalization?The Place of Tanzania in the ‘Global Village’ Chambi Chachage

2. What is Globalization to Me – And You? • As an ideology or dogma, globalization seems to be a new process. It is conventionally/dogmatically presented as the modern/contemporary way(s) in which the world is becoming a ‘Global Village' as people become more and more integrated and/or interconnected culturally, socially, politically, economically, technologically and so forth. However, as a historical process, globalization is not that new (Cf. Prof. Paul T. Zeleza’s 2003 Book on ‘Rethinking Africa’s Globalization’). Historically, Africa in general, and Tanzania in particular, have been part and parcel of  many of the processes associated with globalization for centuries. What we are witnessing now is the intensification of these processes. In this lecture we will look at the changes & continuities in these processes as they apply to the case of Tanzania. By the end of the lecture we would thus be equipped to critically address the following questions: 1. When and how was Tanzania inserted into the global economy? 2. Why is Tanzania integrated yet marginalized in the global economy? 3. What does globalization really mean to Tanzania/Tanzanians today?

3. What is Globalization – According to Whom? • Who defines globalization – for whom and why? • What is globalization – an ideology or a process? • Why study globalization – to critique and/or use it? “Even as we prepare ourselves, as we must prepare ourselves for a competitive life in the Global Village, we must not forget that our corner in that Global Village is in Tanzania: and for most Tanzanians that corner is going to be in rural Tanzania or the informal sector of urban Tanzania” – Mwalimu Julius K. Nyerere’s 1998 Speech on ‘Education for Service and Not Selfishness’

4. ‘What is Globalization’ Continued… • Globalization as a Political Ideology: Politically, it is used as an ideology of legitimizing a global order that integrates yet marginalize the majority of the people in the world, that is, FrantzFanon’s ‘The Wretched of the Earth’. *The Ideology of Globalization or Globalism is associated with these Acronyms among others and what they stand for ‘behind the veil’: TINA – There Is No Alternative LIMP – Liberalize, Marketize and Privatize SAPs – Structural Adjustments Programs IMF – International Monetary Fund WB – World Bank/International Bank for Reconstruction and Development WTO – World Trade Organization “Globalization has become one of the most politically charged issues, even in periphery countries, such as Tanzania” – Prof. Nguyuru Haruna Ibrahim Lipumba’s 2005 Analysis of ‘Globalization and Social Stress in Tanzania’

5. ‘What is Globalization’ Continued… Globalization as a Historical Process: Historically, it is a long process that interconnects or integrate people of the world economically, technologically, politically, socially and culturally, that is, over Fernand Braudel’s ‘Longue Durée.’ * The process of globalization is associated with the following phenomena among others and their 'enduring’ consequences: -Commercialism/Capitalism -Imperialism/Expansionism -Racism/Racialism -Colonialism/Neo-Colonialism -Nationalism/Transnationalism -Developmentalism/Neoliberalism -Multiculturalism/Postmodernism “[T]he larger part of ancient Africa was connected to the global economic system of its time” – Prof. Felix A. Chami’s 2006 Book on ‘The Unity of African Ancient History: 3000 BC to AD 500’

6. Who ‘are’ the Proponents of Globalization in Tanzania – And What ‘do’ they Say? Ambassador Juma V. Mwapachu (Author of 2005’s ‘Confronting New Realities: Reflections on Tanzania’s Radical Transformation’ ): • “At root, globalisation is about revolutionary change, change that is both discontinuous and dynamic” - Ibid • “Today, globalisation constitutes the fundamental contemporary change. The choice for Africa is not between accepting and not accepting globalisation. There can be no trying to make believe that change is non-existence or irrelevant. However, in determining the choice between being changed by globalisation or taking charge and mastering it, it is imperative to examine the attitude to adopt” - Ibid • “Yet globalisation is a reality. It is a reality in the sense of breakthroughs in information and communications technologies; 24 hour capital flows and depth of trade through transnational and multinational enterprises. Thus globalisation could not be simply wished away or halted” - Ibid

7. ‘Proponents of Globalization’ Continued… Former President Benjamin W. Mkapa (Co-Author of 2004’s ILO report on ‘A Fair Globalisation: Creating Opportunities for All’ ): • “One thing is clear. Globalisation is driven by the pursuit of profit, by being competitive, and by the interplay of power relations - power to determine the framework and rules of the game; power of technology to cut costs and increase the speed of production and delivery; political and military power to pursue national goals unilaterally if necessary; and power to influence others. The way I see it, the game is very well underway, and we have been dealt a card. It is a bad card, to be sure. Yet, we must play. How smartly we play the card we have, and how effectively we demand a fair game, is what will determine whether we remain relevant to, and benefit from, the unprecedented integrative forces that shape our world, or whether we will entrench our irrelevance and impoverishment” – The then President Mkapa’s ‘Statement at the Launching of the National Dialogue on the Social Dimension of Globalisation, 19 August 2002’ • “There are those who speak as if globalisation is an option. Do we have any choices? As a nation we surely have choices. An utterly drastic one is to shut ourselves in a cocoon. It is an alternative. But no country has ever advanced by isolating itself from the regional or international community. We need the outside world. It can do without us; but we can’t do without it” - Ibid

8. ‘Proponents of Globalization’ Continued… Governor of Central Bank of Tanzania, Prof. Benno J. Ndulu (Co-Author of 2007’s World Bank Report on ‘Challenges of African Growth): • “In the current era of globalizing production systems, people move and jobs move. Globalization therefore has raised the potential for relocating skilled jobs to Africa through foreign direct investment and outsourcing, which has been a significant factor behind East Asia’s phenomenal growth experience.” – Ibid • “… Although there have been suggestions for the creation of new multilateral agencies, it might be more effective to reform existing ones…A reformed International Monetary Fund (IMF) must display symmetry of treatment to all economies - whether big or small. The proposed global standard to regulate the international finance system will be an effective tool in preventing future crises only if sanctions are well spelt out and enforced…” – Prof. Benno J. Ndulu, Sunday Citizen, 29 March 2009

9. Who ‘are’ the Dissidents of Globalization in Tanzania – And What ‘do’ they Say? Mwalimu Julius Nyerere Professorial Chair of Pan-African Studies, Prof. Issa G. Shivji (Author of 2006’s ‘Let the People Speak: Tanzania Down the Road to Neoliberalism’ ): • “As imperialism, in the even more vicious form of globalisation, engulfs us we need to return to the roots of our independence, the great post-war nationalist movements which resulted in the independence of more than fifty African countries” - Ibid • “Globalisation expresses itself in Africa as neo-liberalism. These are set of policies around stabilization of monetary and fiscal fundamentals on the one hand, and marketisation, liberalisation, and privatisation of the economy, on the other” – Issa G. Shivji’s 2009 ‘Accumulation in An African Periphery: A Theoretical Framework’ • “The institutional home of this discourse is the triad made up of the World Bank, International Monetary Fund (IMF) and the WTO…In Africa, the manifestation of the discourse is much more programmatic and prescriptive than theoretical” – Issa G. Shivji’s 2009 ‘Where is Uhuru?’

10. ‘Dissidents of Globalization’ Continued… Prof. Marjorie Mbilinyi (Co-Editor of 2003’s ‘Against Neoliberalism: Gender, Democracy and Development’ ): • “Transformative feminism struggles against all forms of male domination/supremacy (often referred to as ‘patriarchy’); class exploitation on the basis of capitalism, the dominant economic structure today; imperial domination and growing supremacy of the G7 [Now G20?] countries (often referred to as corporate globalization); oppression on the basis of race/ethnic differences; and fundamentalism and traditionalism” – Marjorie Mbilinyi & Demere Kitunga’s 2006 ‘Notes on Transformative Feminism in Tanzania’ • “How can we challenge the politics of imperial globalisation which continue to impose neo-liberal free market policies on African countries, when developed countries are strengthening regulatory state mechanisms and support for their own national economies?” – Marjorie Mbilinyi’s Gender Festival 2009 Plenary Paper on ‘Economic Justice and Livelihoods of Marginalized Women in the context of the Global Economic Crisis and the Scramble for African Resources’

11. ‘Dissidents of Globalization’ Continued… Prof. Chachage Seithy L. Chachage (Co-Editor of 2004’s ‘Globalization and Social Policy in Africa’ ): • “…globalization in one way or another has been responsible for the erosion of people’s welfare, job destruction and mass unemployment” – Ibid • “In sum what marks this period, unlike the previous stages of capitalism, is the fact that what exists is what has been characterized as ‘disorganized capitalism’, of a ‘consumer society and mass production’. Above all, production is now no longer the determining aspect, but markets and stock exchanges. It is the period when consumer dominance is the new focus of society and not real needs, and individuals are integrated into this consumer society through seduction or repression” – Ibid • ‘Utandawazi = Utandawizi’ - Chachage on globalization as ‘theft’

12. Who are the ‘Chiefs and Commoners in the Global Village’? • Tanzania is highly integrated yet marginalized in the global system: 1. The country is Africa’s third largest producer of gold but though “ US$2.5 billion in gold has been exported during the past five years, primarily through two major multinationals, Canada’s Barrick Gold, and the South African-based Anglo-Gold Ashanti (AGA), the government has accrued just US$21–US$22 million per annum on average” – Khadija Sharife’s 1 October 2009 Pambazuka News Article on ‘Tanzania’s Pot of Gold’ “Mining has been the most dynamic sector with several new gold mines starting production. The sector has expanded rapidly, averaging growth of around 15% over the period 2000-2006. However, the sector contribution to GDP is about 3.7% and, therefore, overall economic growth remains small. Moreover, there is no indication that the expansion in mining has triggered significant growth in local economies or influenced poverty reduction, since mining operations have been almost entirely detached from local supply chains which creates employment opportunities” – United Republic of Tanzania’s ‘Poverty and Human Development Report (PHDR) 2007’.

13. ‘Chiefs and Commoners’ Continued… 2.According to UNCTAD’s World Investment Report 2009, the country’s Foreign Direct Investment (FDI) stood at US$744 million but according to UNDP ‘s Human Development Report 2008, the Human Poverty Index (HPI) value of “32.9 % for Tanzania (United Republic of), ranks 98th among 135 developing countries for which the index has been calculated” whereby 45% of the people have no access to an improved water source, the probability of not surviving past age 40 is 36.2%, the percentage of children underweight for age 0- 5 is 22, and the adult illiteracy rate for adult aged 15 and over is 28%. ‘The Drawbacks of FDIs in Tanzania’ – Adapted from Dr. Honest Prosper Ngowi’s 2001 Paper on ‘Attracting New Foreign Direct Investments in Tanzania’: 1. ‘Community Conflicts’ – e.g. 17 years conflict between Ortello Business Corporation & Maasai Communities in Loliondo: Eviction, Plunder & Rape (Cf. FemAct’sStatements) 2. ‘Discriminatory Practices’ – e.g. Racist & Gendered Exclusion in Hotels (Cf. Ngowi) 3. ‘Unethical Practices’ – e.g. Tax evasion and shady contracts (cf. BomaniReport) 4. ‘Profit Repatriations’ – e.g. Mining companies (Cf. Tundu Lissu & Mark Curtis’Report) 5. Environmental Degradation – e.g. Barrick Gold’s pollution in River Tigithe (Cf. FemAct) 6. Land Grabbing – e.g. Sun Biofuel Acquisition of 9,000 hectares (Cf. HakiArdhiReports) 7. Dubious Operations – e.g. City Water, Net Group Solution & Rites (Cf. MediaReports) *What about ‘Globalisation as Militarisation?’ (Re: Oil, Uranium, Africom & War on Terror)

14. ‘Chiefs and Commoners’ Continued… 3. According to the Chairperson of the ‘leading opposition party’ in the country, Prof. Ibrahim Lipumba, in his 2005 Analysis of ‘Globalisation and Social Stress in Tanzania’, the “marginalization of Tanzania can be observed in the decreasing share of world trade” yet at “the [then?] moment Tanzania exports very little to Sweden. For instance, in 2005 Tanzania’s exports to Sweden were valued at 686,680 US dollars.  In 2006 they were worth 515,370 US dollars. On the other hand, Sweden’s exports to Tanzania in 2005 were 73.2 million US dollars.  In 2006 they were valued at 52.3 million US Dollars. When you look at these figures it is clear that there is a serious trade imbalance between the two countries. But that is besides the point. What is important is for us to do more to increase bilateral trade” – President Jakaya Mrisho Kikwete’s ‘Speech at the Swedish Trade Council Breakfast Meeting, Stockholm, 20 February 2007 “Compared to other regions, Africa has not managed to restructure exports away from primary commodities” – Prof. Samuel M. Wangwe(2000) on ‘Globalisation and Marginalisation: Africa’s Economic Challenges in the 21st Century’

15. Beyond Globalization in Tanzania? Conclusion 1; My Adopted Position(s) on Globalization as a Political Ideology: • “Another World is Possible” - World Social Forum • “There Are Thousand Alternatives - TATA” - Susan George • “No to IMF Meddling” – Mwalimu Julius K. Nyerere • “Think Globally, Act Locally” – Theodore Levitt or René Dubos? Conclusion 2: My Adopted Position(s) on Globalization as a Historical Process: • “Understood as a historical process, the world has been globalizing for a long time, although the process accelerated rapidly during the course of the twentieth century. Africa has been an integral part of the processes, central to the construction of the modern world in all its ramifications – economic, political, cultural, and discursive – over the last half millennium. This is not to argue, however, that Africa’s engagements with and contributions to globalization have necessarily been beneficial to its people. On the contrary, Africans have paid a high price over the last half millennium in the construction of a more integrated world” – Paul Tiyambe Zeleza • “As for the developing countries, their perception is that they did not participate equitably in the process of internationalization of the world economy” – Justinian F. Rweyemamu on ‘Global Interdependence’ in ‘Third World Options’

16. A Non-Marginalized Tanzania is Possible “It can be done, play your part” – Mwalimu Julius K. Nyerere