INDIGENISATION Meaning and
Definition
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Indigenisation refers to the process of establishing or promoting the growth and development of indigenous industries, businesses, or enterprises within a country or region. It involves enhancing the participation and control of local populations in economic activities, thereby reducing dependency on foreign capital, technology, or expertise.
This concept typically arises in developing countries that have historically relied on foreign investments, dominated by multinational corporations. Indigenisation seeks to address the imbalances and inequalities arising from such external influences by empowering local communities and ensuring they benefit from their own resources. It is often accompanied by policies such as local ownership requirements, preferential procurement for domestic businesses, and the transfer of technology and knowledge to indigenous populations.
Indigenisation can have multiple objectives. Firstly, it aims to create economic opportunities, employment, and income for local communities, thereby reducing poverty and promoting inclusive growth. Secondly, it seeks to strengthen national sovereignty and control over resources, preventing exploitation by external entities. Thirdly, it promotes the diversification and development of local industries, facilitating economic self-sufficiency and resilience.
However, indigenisation policies are often debated for their potential drawbacks, including the risk of creating monopolies or inefficient industries, deterring foreign investment, or fostering corruption and nepotism. The effectiveness of indigenisation depends on careful implementation, monitoring, and evaluation, ensuring a balance between local empowerment and global integration.
Etymology of INDIGENISATION
The word "indigenisation" derives from the combination of two roots: "indigenous" and the suffix "-ation".
1. "Indigenous" comes from the Latin word "indigena", which refers to a person born in a particular place or originating from a specific region. It is a compound of "in", meaning "within", and "genus", meaning "birth" or "origin". In English, "indigenous" is used to describe something or someone that is native, original, or inherent to a particular region or environment.
2. The suffix "-ation" is derived from the Latin suffix "-atio", which denotes the act or process of. It is commonly used to create nouns from verbs or to indicate a state or condition resulting from an action.
