Globalization is defined as the increasing process of interdependence and inter connectedness between different political, social and economic components of the world. It is the way in which the world in seen as the global village. Globalization becomes a worldwide system as it integrates people across national boarders, making the world operate as a village and therefore enabling free movement of goods, capital and information. Globalization as a economic, political and social phenomena is associated with the following major aspects:
(a) Information and Communication Technology. Globalization is characterized by the advancement of information and communication technology. This sector expanded drastically within the last few years, specifically the last quarter of the twentieth century. This period witnessed the global distribution of media images through computers, screens, radio, newspapers, televisions and mobile phones. Development of information and technology goes hand-in-hand with the rise of information companies such as Microsoft, Intel, Compaq and Cisco. The rise of these companies indicates the quick advancement of technology.
(b) Movement of People. There has been an increase in the movement of people from one country to another. These may be tourists, migrants, refugees, business travelers and diplomats. Most migrations occur between developing countries and developed countries. There is also a flow of migrants to developed economies from developing countries, making the world more interconnected.
(c) Spread of Ideas and Ideology. Spread of knowledge, ideas, information and ideologies has been an integral aspect of globalization. This may be different physical capital, technical skills and production methods, managerial skills, marketing skills and global economic policies. The concept of multiparty and green peace are examples of political ideologies that have acquired international dominance.
(d) Finance. There is a global flow of money often driven by the interconnected currency market stock exchange, as well as commodity markets. The flow of money is also facilitated by international financial institutions such as the IMF and World Bank, assisted by multilateral Banks which have branches in almost every part of the world. Thus, this flow allows for smooth money transaction all over the world.
(e) The Rise of Intellectual Property.This refers to items including patents, copyrighted movies, compacts discs, advertisements and financial services.
(f) Free Market Economy. Globalization has brought about the integration of an international political economy through inter-financial institution policies and international trade. Free market (Neo liberalism) has become a dominant economic ideology inthe world. The price is determined by the market.
(g) The Structural Adjustment Program (SAP).SAP refers to the list of budgetary and policy changes required by the International Monetary Fund (IMF) and World Bank (WB) for developing countries to qualify and apply for a loan. This conditions typically include reducing barriers to trade and capital flows, tax increases and cuts in government expenditure. All sub – Saharan African countries south of the Sahara including those in east, central and southern Africa – excluding the Republic of South African – were obliged to adopt the policy to solve the international problems and reduce the heavy debt burden that seemed to increase rapidly between 1970s and 1980s.