Globalisation In South Africa Case Study
The globalisation process has had significant impact on the overall economic performance of the nation. This is when South Africa re-joined the scene of international economies in the 1990’s during which time globalisation had begun to gain prominence. Its move from a socialist socialist movement to a democratic system in 1994 has been a major key towards its gain in economic performance during the globalisation period. This is as the first democratically elected president, Nelson Mandela moved away from the previous Apartheid governments acts towards South Africa’s economy. Mandela used the gains for the globalisation process in trade and investment flows into the economy, which showed major advances in the nations economic performance. …show more content…
This therefore resulted in a higher overall unemployment rate. However, within the past few years the unemployment rate has started to rise again, Unemployment in South Africa is now higher than it was at the end of apartheid. Labor-force participation rates have also remained low with the effect of globalisation. After initially rising post-1994 and peaking at near to 60% in 2000, labor-force participation rates dropped to an average of 57.4% in the pre-crisis years between 2000 and 2008. The global financial crisis resulted in the labor-force participation rate dropping to 55% between 2009 and 2011, but it then recovered to the 57% mark in recent …show more content…
Then less industrialied and rural Areas such as the Eastern Cape Province contains 40% of the nations population however only consists of 7% of household income.
South Africa GINI index has also shown the signicicant signs that globalisation has split the gap even further between the rich and the poor, and the high and low skilled labour force. The GINI index in the 2008-2009 stage was sitting at 0.7 and was deemed by the OECD as the most unequal society.
Since the introduction of the the democratic system and with the strong influence of globalisation, South Africa’s inflations rates have dropped since the Apartheid government. South Africa’s Inflation rate was at an all time low in 2004 at 0.20 however more recent governments have been unable to keep the rate that low and also with the aid of more recent globalisation the inflation rates have been gradually