Globalization and changes in the structure of the Agrarian Sector in Namibia

Bc. Michael Uerikua

Master's thesis

Abstract:

The interconnectedness and integration of communities and countries referred to as "globalization" causes changes in political, environmental, social and cultural systems. Globalization is a phenomenon that presents benefits to industries like agriculture, whereby through integration of a country's agricultural sector into the global economy enable producers of agricultural products to expand their markets and get access to new technological innovations while consumers are made better off by increases in product variety. Namibia's agrarian sector is characterized by livestock production rather than crop production as it is in many countries, which is caused by the country's aridity and the occurrence of natural disasters such as droughts and floods. As a developing country Namibia is heavily depended on agriculture and it forms around 10% of the country's GDP annually, while employing around 27% of the total employed people. The aim of the study was to examine the economic changes in the agricultural sector as a result of Globalization in 13 years from year 2000 to 2012. Such an examination is determined by two criteria known as Level of International Trade (LIT) index and the Integration of International Trade (IIT) index. Important data was collected in Namibia from the meat board of Namibia, which is the main body responsible for the trade of livestock and livestock products. The indices uses import, export and the industry's production to determine how globalized the sector is. In the early years like 2000 to 2003 the sector was fully integrated into international trade with high percentages of both exports and imports which was indicated by the IIT index results. The sector was more categorized as a transitional multi-domestic industry in the period from 2004 to 2009 where the ratio of import to export halved (50%). With the increase in export quantities in the following years the sector was moving towards a simple global industry as indicated by the IIT index, while the LIT index proved international trade to be an important aspect in the agricultural sector of Namibia in the same period (2009) with a trade to production comparison of 50%. The results of the study can be used in strengthening agricultural research, while agricultural planners and decision makers can use the results to make decisions with regard to trade and its benefits.

Abstract:

The interconnectedness and integration of communities and countries referred to as "globalization" causes changes in political, environmental, social and cultural systems. Globalization is a phenomenon that presents benefits to industries like agriculture, whereby through integration of a country's agricultural sector into the global economy enable producers of agricultural products to expand their markets and get access to new technological innovations while consumers are made better off by increases in product variety. Namibia's agrarian sector is characterized by livestock production rather than crop production as it is in many countries, which is caused by the country's aridity and the occurrence of natural disasters such as droughts and floods. As a developing country Namibia is heavily depended on agriculture and it forms around 10% of the country's GDP annually, while employing around 27% of the total employed people. The aim of the study was to examine the economic changes in the agricultural sector as a result of Globalization in 13 years from year 2000 to 2012. Such an examination is determined by two criteria known as Level of International Trade (LIT) index and the Integration of International Trade (IIT) index. Important data was collected in Namibia from the meat board of Namibia, which is the main body responsible for the trade of livestock and livestock products. The indices uses import, export and the industry's production to determine how globalized the sector is. In the early years like 2000 to 2003 the sector was fully integrated into international trade with high percentages of both exports and imports which was indicated by the IIT index results. The sector was more categorized as a transitional multi-domestic industry in the period from 2004 to 2009 where the ratio of import to export halved (50%). With the increase in export quantities in the following years the sector was moving towards a simple global industry as indicated by the IIT index, while the LIT index proved international trade to be an important aspect in the agricultural sector of Namibia in the same period (2009) with a trade to production comparison of 50%. The results of the study can be used in strengthening agricultural research, while agricultural planners and decision makers can use the results to make decisions with regard to trade and its benefits.

Keywords

agricultural sector, globalization, integration, livestock, Namibia, trade

Keywords

agricultural sector, globalization, integration, livestock, Namibia, trade

Language used: English

Date on which the thesis was submitted / produced: 29. 4. 2015

Thesis defence

• Supervisor: Ing. Alexander Kandakov, Ph.D.

Czech University of Life Sciences Prague

Faculty of Tropical AgriSciences

Master programme / field:
Tropical Agriculture / International Development and Agricultural Economics