Impact of Globalization on Agriculture in Uganda
Globalization: is a process by which regional economies, societies, and cultures have become integrated through a global network of communication, transportation, and trade. Globalization according to Webster’s Dictionary, means: “to make worldwide in scope or application”. Globalization can be viewed as the integration of inputs and outputs into global markets, sharing of information and knowledge, and promulgation of rules governing such integration The term is sometimes used to refer specifically to economic globalization: the integration of national economies into the international economy through trade, foreign direct investment, capital flows, migration, and the spread of technology.
Overview of the effects of globalization on world trade
From an economic perspective, the primary engine that is driving the complex effects of globalization on trade is liberalization. Globalization emphasizes that trading among member countries that they should open up their markets and that trade in goods and services should be “borderless.” In Uganda, globalization is illustrated in part by the kind of policy framework that Uganda has pursued over decades. In line with the commitments that Uganda made towards the World Trade Organization (WTO) protocols, Uganda’s broad policy objectives have continued to focus on: (i) The need to stabilize the economy, partly through restoring Agriculture discipline; (ii) The liberalization of consumer and producer prices in order to align prices in favor of export-oriented production and import substitution; (iii) Progressive movement towards a realistic, market-determined exchange rate within a system of restrictions;
(iv) The strengthening of the balance of payments and the normalization of relations with creditors;
(v) The removal of trade restrictions;
(vi) The privatization and rationalization of state enterprises.
Benefits of globalization of agriculture in Uganda.
In Uganda, the liberalization of agricultural commodity prices and the abolition of various marketing boards have had the short-term effect:
Increasing revenues to farmers.
Lowering marketing costs.
Raising the profitability of agricultural production, coffee included.
Under the liberalized trading arrangements, coffee buyers pay readily. In that sense the liberalized framework is more beneficial to the farmer.
Impact of Price reductions: during the pre-liberalization period Ugandan farmers were earning approximately 30% of the international coffee price. Under the liberalized coffee trade period, farmers today earn approximately 50% of the world coffee price.
An important assumption under globalization is the existence of a good information system. In Uganda Coffee Development Authority has made attempts to link with a private telecommunication firm, MTN, the globalization of agriculture in Uganda which prices are communicated to farmers. Besides the information that is accessible through MTN, the Central Bank (Bank of Uganda) publishes monthly price trends for different coffee types.
Under globalization, new research systems of developing countries include diverse organization that is to say: National Agricultural Research System (NARS). This includes all organization that conducts agriculture research and extension. There are various research organizations in Uganda, such as: NARO, Kabanyolo under Makerere University Agriculture Institute, Namulonge Agriculture Research Center and Kawanda Research Center. Wich have helped us in getting new varieties of crops.
Technology: In Uganda agriculture has improved technologically, for instance: irrigation schemes are being transformed, farmers are using fertilizers is increasingly.
Thank to democratization with is under globalization policies is providing rural populations political information which vital for developing small farm agriculture. This is...
Bibliography: Report: by Edward Mubiru, World Vision International, East Africa Regional Office
Report revised November 2003
Ministry of Finance, 2003/04 National Budget, June 2003, Kampala, Uganda
Please join StudyMode to read the full document