The type of foreign direct investment (FDI) South Africa has received since 1995 has not been of the kind that would stimulate economic development. Rather, South Africa's FDI flows appear to be more likely either to have no impact on employment or to lead to short term job losses. Meanwhile, both trade and technology have served to reinforce a trend of increasing demand for highly skilled labour, generally at the expense of those with few skills. “So far, the ability of trade and new technologies to create employment for the lower skilled and very poor seems exceptionally limited. Thus, unskilled workers and those in poor households undoubtedly bear the brunt of any adjustment costs associated with greater openness.” These are some of the findings from a paper by Gapresearch.org that attempts to gauge the responses, specifically the labour market responses, to economic globalisation and secondly to consider the impact of globalisation, trade and technology on poverty.
May 13, 2004
































