THE WORLD HAS CHANGED!

1. “GLOBALISATION AND TANZANIA”FACING THE CHALLENGES AND EXPLOITING THE OPPORTUNITIES.REMARKSBYAMI R. MPUNGWECEO-ROUNDTABLE MONTHLY DINNERHYATT HOTEL, DAR ES SALAAM, 9th OCTOBER 2012

2. THE WORLD HAS CHANGED! • END OF COLD WAR AND SIGNIFICANT DEVELOPMENTS IN SCIENCE AND TECHNOLOGY(ICT) HAS CHANGED THE WORLD THAT WE KNEW, NOT TOO LONG AGO, BEYOND RECOGNITION! • THIS CHANGE IS HAPPENING AT AN ALARMING SPEED! • EVEN THE NATURE AND CHARACTER OF CHANGE ITSELF HAS ALSO CHANGED! • IT IS TRANSFORMING EVERYTHING THAT DISTINGUISHES HUMAN FROM THE REST OF THE ANIMAL KINGDOM!

3. KEY DRIVERS OF GLOBALISATION. • HUMANISATION: POST-COLD WAR EVOLUTION OF THE SO-CALLED UNIVERSAL PRINCIPLES AND VALUES OF DEMOCRACY, HUMAN RIGHTS, RULE OF LAW AND GOOD GOVERNANCE • GLOBALISATION: COORDINATION AND INTEGRATION OF GLOBAL PRODUCTION, DISTRIBUTION AND EXCHANGE PROCESSES, BASED ON ECONOMIES OF SCALE AND SCOPE • LIBERALISATION: OPENING UP OF DOMESTIC, REGIONAL AND GLOBAL MARKETS AND TRANSFORMING NATIONAL BOUNDARIES INTO MARKETS THAT ARE OPEN TO GLOBAL COMPETITION (CANCUN, DOHA, HONG KONG etc). • DIGITALISATION LARGELY THROUGH, FALLING COSTS OF TELECOMMUNICATIONS AND GROWING EFFICIENCIES IN ICT, THAT RENDERS TIME, DISTANCE AND SPACE COMPLETELY IRRELEVANT IN THE HIGHLY COMPETITIVE NEW GLOBAL BUSINESS ENVIRONMENT. • ENVIROMENTALISATION: RENEWED CONCERN AND CARE FOR THE ENVIRONMENT IN THE QUEST FOR SUSTAINABLE DEVELOPMENT(DEMAND FOR RESOURCES).

4. FURTHER UNPACKING OF DRIVERS A DEEPER LOOK INTO EACH OF THE DRIVERS WOULD REVEAL MORE WORRYING GLOBAL ENVIRONMENT FOR BOTH POLITICAL AND BUSINESS GOVERNANCE.

5. THE TYRNY OF ICT AS A CASE STUDY • AS INDICATED EARLIER, ICT DRIVES THE 21ST CENTURY GLOBALISATION PROCESS, LARGELY DUE TO GROWING EFFICIENCIES IN IT AND PLUNGING COSTS OF TELECOMMUNICATIONS. • ICT IS ALREADY TRANSFORMING THE WAY WE RELATE, WORK, COMPETE AND EVEN PLAY. • TRANSFORMING THE NATURE OF PRODUCTS, PROCESSES, COMPANIES, INDUSTRIES, AND EVEN COMPETITION ITSELF! • DISPLACES ELEMENTS OF OLD INDUSTRIES AND PROFESSIONS AND CREATES NEW ONES!

6. ICT CHALLENGES GET MORE COMPLEX • More micro-processors outside than inside computers! • Developments in infrared technology, telecommunications infrastructure, radio frequencies, magnetic fields etc will expand the existence and use of these “smart systems” sooner than later • Developments in bio-technology are gaining momentum • Since break-through in the understanding of human genome in June 2000, developments in genetic engineering or geno-technology or genomics has attained faster growth. Fast expansion of “smart systems” due to increased communication and interaction between the human race, computer chips and other microprocessors located elsewhere e.g. in phones, door knobs, cars, etc

7. THE NEW WAVE • STAN DAVIS (Lessons from the Future) asserts that in the next two decades: • “such interactions between smart systems (organic and inorganic chips) would further deepen the future structure of the global economy wherebyelements of ICT, biotechnology and geno-technology in optical, quantum, molecular or DNA computing, in inorganic silicon microprocessors as well as organic biochips will all be code based and they will all work from bottom up!” Venture capitalists are already focussing into these opportunities and there is a noticeable movement from technology to business and from R&D to customised ICT solutions, products and services.

8. THE DYNAMIC INTERPLAY BETWEEN AND AMONG THESE KEY DRIVERS IS EVOLVING A BRAND NEW WORLD THAT IS CHARACTERISED BY: • EXTREME DISCONTINUITIES; • PROFOUND UNCERTAINTIES; • WIDESPREAD UNPREDICTABILITIES; • LARGE-SCALE INSTABILITIES, AND; • MOST INTENSIVE COMPETITION FOR RESOURCES AND MARKETS EVER WITNESSED. • AFRICA HAS ALREADY BECOME THE NEW AND PERHARPS THE LAST FRONTIER OF THESE RESOURCE AND MARKETS SCRAMBLES!

9. NEW STRUCTURES AND RULES OF GLOBAL ENGAGEMENT • WORLDWIDE, OLD POWER STRUCTURES ARE COLLAPSING/ NEW ONES TAKING SHAPE. • POWER INCREASINGLY EVOLVES FROM BELOW! • NEW RULES OF GLOBAL ENGAGEMENT ARE EVOLVING AND ARE INDEPENDENT OF BOTH BIG GOVERNMENTS AND BIG BUSINESS ! • GOVERNMENTS OR BUSINESSES THAT ABIDE BY NEW RULES ARE HANDSOMELY REWARDED AND THOSE WHO IGNORE ARE SEVERELY PUNISHED! WE ARE LIVING IN EXTRAORDINARILY UNFORGIVING TIMES AND THERE IS NOWHERE TO HIDE.

10. GLOBAL AWARENESS, GLOBAL CITIZENSHIP AS A RUSLT OF EXTENSIVE, NEWS AND SOCIAL NETWORKS: • CITIZENS AND VOTERS THROUGHOUT THE WORLD ARE INCREASINGLY BECOMING MUCH MORE AWARE OF THEIR RIGHTS AND CHOICES THAT THEY HAVE TO MAKE ( ETC). • CUSTOMERS AND SUPPLIERS THROUGHOUT THE WORLD ARE INCREASINGLY AWARE OF THE RANGE OF PRODUCTS AND SERVICES AVAILABLE IN THE MARKET AND AT WHAT DELIVERY TERMS, CONDITIONS, PRICES ETC • THE DEMOGRAPHIC SHIFT HAS CREATED NEW GLOBAL CITIZENSHIP THAT IS BASED ON TWEETER AND FACEBOOK WITH DIFFERENT PERSPECTIVES ON SYSTEMS OF GOVERNANCE

11. FORCES OF CUSTOMER ECONOMY ACCELERATING: OPPORTUNITIES • GLOBAL DRIVERS ARE AT FULL SPEED. • COMPETITION INCREASES (GROWING EFFICIENCY/PRODUCTIVITY AND COMPETITIVENESS). • OVERCAPACITY E.G MANUFACTURING, MOBILE TELECOM, BANKING ETC MORE WEALTH! • HIGHER PRODUCTIVITY; LOWERED COSTS; BETTER QUALITY AND IMPROVED SERVICE, HIGHER COMPETITIVENESS (China/India). • INCREASING COMMODITISATION OF PRODUCTS INCLUDING KNOWLEDGE PRODUCTS (e.g. COMPUTERS,HOUSEHOLD “CUSTOMER POWER INCREASES”.

12. CUSTOMER ECONOMY MOVES ON • CUSTOMERS CONTINUE TO BECOME MORE SOPHISTICATED AND INFORMED BUYERS. • STAYING WITH OLD/TRADITIONAL PROVIDERS OF GOODS AND SERVICES HAS BECOME A LUXURY THAT MANY CAN NOT AFFORD. • PRODUCT LIFE CYCLES SHORTENED (DOG YEARS): NEW PRODUCTS KEEP ON FLOWING. • AS A RESULT: A LOT OF SIMILAR OFFERINGS THAT MAKE DIFFERENTIATION DIFFICULT.

13. NEW SURVIVAL KIT HAS EVOLVED, LARGELY BASED ON: • PROFICIENCY IN EDUCATION; • PROFICIENCY IN ENGLISH LANGUAGE; AND, • BEING CONNECTED OR “WIRED” THROUGH ICT.

14. WHY RAISE THESE OBVIOUS ISSUES • LARGELY FOR DEVELOPING COMMON UNDERSTANDING AND PESPECTIVES ON THE NATURE AND CHARACTER OF THE EVOLVING NEW WORLD ORDER. “YOU DONT SEE SOMETHING UNTIL YOU HAVE THE RIGHT METAPHOR TO LET YOU PERCEIVE IT” THOMAS KUHN ON PARADIGM SHIFTS • BUT ALSO DEVELOP THE MOST APPROPRIATE STRATEGIC AND OPERATIONAL MEASURES IN OUR ESPECTIVE BUSINESSES AND STAKEHOLDER ENGAGEMENT.

15. WHOW DOES TANZANIA FIT IN THIS EVOLVING NEW WORLD ORDER? • LARGELY BASED ON STANDARD AFRICAN RESPONSE, LARGELY DRIVEN DOMESTIC SOCIO-ECONOMIC FAILURES AND EXTERNAL DONOR PRESSURE RATHER THAN CONVICTION AS SEEN IN ASIAN CHANGE PROCESSES. • TANZANIA STILL NEEDS TO DO A LOT IN STRENGTHENING THE INSTITUTIONS OF, DEMOCRACY, HUMAN RIGHTS, RULE OF LAW AND GOOD GOVERNANCE. • NEED TO EVOLVE APPROPRIATE POLICIES AND GROWTH STRATEGIES THAT WOULD ENHANCE PRIVATE SECTOR INVESTMENTS, PRODUCTIVITY, COMPETITIVENESS. • TANZANIA’S APPROACH TO MARKET DEVELOPMENT AND REGIONAL INTEGRATION NEEDS NEW VIGOUR AND PERSPECTIVES. • ENVIRONMENTAL CONSERVATION ISSUES REQUIRE MORE EFFECTIVE GOVERNANCE APPROACHES, FOR SUSTAINABLE GROWTH AND DEVELOPMENT.

16. GLOBALISATION AND ROLE OF BUSINESS OIN TANZANIA • SUSTAINABLE GROWTH AND DEVELOPMENT IN TANZANIA WOULD VERY MUCH DEPEND ON THE EXISTENCE OF MODERN, ORGANISED AND DYNAMIC PRIVATE SECTOR WHICH IS SUFFICIENTLY INDIGINOUS . • DONOR DEPENDENCY IS A MAJOR DRAW BACK. • PRIVATE SECTOR IN TANZANIA NEEDS TO BE BETTER ORGANISED. • IT NEEDS TO BE MORE ACTIVELY ENGAGED ON MATTERS RELATED TO APPROPRIATE RESPONSES TO THE CHALLENGES AND OPPORTUNITIES THAT ARE LOCATED IN THE NEW WORLD OF GLOBALISATION (Constitutional debate)

17. CONCLUSION • PRIVATE BUSINESS IN TANZANIA HAS STRATEGIC ROLE TO PLAY IN ENABLING TANZANIA TO EFFECTIVELY MEET THE DIFFICULT CHALLENGES AND EXPLOIT THE VAST OPPORTUNITIES THAT COME WITH GLOBALISATION • BIGGEST CHALLENGE REMAINS: TO PREPARE FOR A FUTURE THAT YOU CAN NOT PREDICT. • YET, YOU NEED TO EMBRACE AND INSTITUTIONALISE A CAPACITY FOR CHANGE. • IN THAT REGARD, IT REMAINS TRUE, AS CHARLES HANDY PUTS IT, THAT: “THE GREAT EXCITEMENT ABOUT THE FUTURE IS THAT WE CAN SHAPE IT” I AM QUITE CONFIDENT, WITH PROPER ORGANISATION AND APPROPRIATE GOVERNMENT SUPPORT, THE PRIVATE SECTOR IN TANZANIA CAN INDEED, SHAPE A BETTER FURTURE FOR OUR COUNTRY THANK YOU FOR YOUR KIND ATTENTION