A behaviour of South Africa’s economy towards inflows of foreign direct investment (FDI) from BRICs economies
- Authors: Dingela, Siyasanga
- Date: 2021-04
- Subjects: Investments, Foreign -- South Africa , Investments, Foreign -- Developing countries , South Africa -- Economic conditions , BRIC countries -- Foreign economic relations
- Language: English
- Type: Doctoral theses , text
- Identifier: http://hdl.handle.net/10948/51141 , vital:43212
- Description: This study investigated a behaviour of South Africa’s economy towards inflows of foreign direct investment (FDI) from Brazil, Russia, India and China (BRICs) economies, during the period 1997 to 2016. The BRICs bloc was coined in 2001 by then chairperson of Goldman Sachs Asset Management, Jim O’Neil. According to Goldman Sach (2001), the BRICs group was collectively expected to overtake the major economic powers over the span of a few decades. Their growth is expected to shape a new economic order and replace the currently dominant advanced economies. South Africa joined the BRICs bloc in 2010 as the jeweler of the world and as a gateway to Africa. It joined the BRICs group at the time when economic growth was at a sluggish rate, and the savings and investment were at the lowest rate. The country had a high unemployment rate, high levels of poverty and income inequality. On the other hand, the BRICs economies had limited intra-BRICs flows amongst themselves. It is against this background that this study investigated the long run impact of BRICs FDI inflows on South Africa’s economic growth, and the causality relationship between South Africa’s economic growth and BRICs FDI inflows. This study contributes to the body of knowledge of economics in South Africa and the literature on foreign direct investment and economic growth in South Africa. The study employed two cointegration methods to investigate the behaviour of South Africa’s economy towards inflows of foreign direct investment from BRICs economies. These are fully modified ordinary least squares (FMOLS) and dynamic ordinary least squares (DOLS). For granger causality, the study employed Stacked and Dumistrescu Hurlin tests. All the models used time series annual data from 1997 to 2016. The Unit root test results confirmed that the variables were stationary at first difference using panel Im, Pesaran, Shin (IPS) and Levin, Lin, Chu (LLC). The research employs four regressions, first, Economic growth and foreign direct investment (i.e. private sector, banking sector and both sectors), human capital, physical capital, household consumption, government expenditure, exports, and arable land; Second, Employment and foreign direct investment, human capital, physical capital, household consumption, government expenditure, exports, and arable land; third, Economic complexity and foreign direct investment, human capital, physical capital, household consumption, government expenditure, exports, and arable land; finally, Unemployment and foreign direct investment, human capital, physical capital, household consumption, government expenditure, exports, and arable land. The cointegration results for private FDI and economic growth, employment, economic complexity, and unemployment. The results show only economic complexity has significant effect on foreign direct investment and other variables show insignificant results. However, this effect is smaller compared to other growth determinants which are included in the regressions. The cointegration results for bank FDI. These results show more similarities with private FDI results and few differences. However, this effect is smaller compared to other growth determinants included in the regressions. These growth determinants, however, show a positive effect of human capital and household consumption on economic growth which is expected. Other interesting results are exports being positively related with economic growth and unemployment but negative with employment and insignificant with economic complexity. Another one is government spending negatively influence economic growth, employment and positively influence unemployment. But insignificant for economic complexity. Total FDI results and other variables. These results are also similar to private and bank FDI results discussed above. Economic complexity shows significant effect with foreign direct investment, yet other variables are insignificant. . Further results show human capital positively related with economic growth, which is expected. However, physical capital and household consumption negatively affects growth. Another one exports show positive influence on economic growth but negatively related with employment. Yet, insignificant with economic complexity and unemployment. Other results government spending shows negative influence with employment but insignificant with economic growth, economic complexity and unemployment. The results for nonlinearity between the variables under review. The results that employment and economic complexity are nonlinear with foreign direct investment and no nonlinearity between unemployment, economic growth and foreign direct investment. For employment, low levels of foreign direct investment (LFDI_private) adversely affects employment but at higher levels (FDI_private_SQ) is insignificant. For economic complexity, low levels of foreign direct investment are insignificant for economic complexity but at higher levels there is a positive effect of squared foreign direct investment on economic complexity. Further results show that economic growth and employment are nonlinear with human capital, physical capital, household consumption and exports. Physical capital and household consumption adversely affect economic growth, yet positively affects employment. Human capital positively affects economic growth, employment, and unemployment. Exports positively affect economic growth, but negatively affect employment. Further results show nonlinearity between employment and government expenditure. Government expenditure adversely affects employment. Also, economic growth and unemployment show nonlinearity with arable land. Arable land adversely affects economic growth but positively affects unemployment. Nonlinear results for economic growth and economic complexity with foreign direct investment but no nonlinearity in other remaining variables. For economic growth, low levels of foreign direct investment there is a positive effect of foreign direct investment on economic growth, however, at higher levels foreign direct investment are insignificant. For economic complexity, low levels of foreign direct investment are insignificant, yet, higher levels of foreign direct investment there is a positive influence of foreign direct investment on economic complexity. Further results show economic growth and employment that are nonlinear with human capital, physical capital, and household consumption. Human capital positively affects both economic growth and employment. Physical capital and household consumption are adversely affecting economic growth, yet positively affects employment. Further results show nonlinearity between economic growth and government expenditure. Government expenditure adversely affects employment. More results, employment, and unemployment show nonlinearity results with exports. Exports adversely affect employment but positively affects unemployment. Results show economic growth and unemployment that are nonlinear with arable land. Arable land adversely affects economic growth, but positively affect unemployment. Nonlinear results for economic complexity only and other variables show no nonlinearity in the regressions. For economic complexity, low levels of foreign direct investment are insignificant, but at higher levels of foreign direct investment there is positive effect of foreign direct investment on economic complexity. More results show economic growth and employment that are nonlinear with human capital, physical capital, household consumption and exports. Human capital and exports positively affect economic growth, employment, and unemployment. Whereas, physical capital and household consumption adversely affects economic growth and unemployment, yet positively affects employment. Further results show nonlinearity between employment and government expenditure. Government spending adversely affects employment. Further results show nonlinearity between economic growth and unemployment with arable land. Arable land positively affects unemployment, yet adversely affects economic growth. The following section discusses granger causality results. This study also employed granger causality tests. The causality results between economic growth, employment, economic complexity, unemployment, and private foreign direct investment. The causality results show that there is granger causality between economic growth and economic complexity with private foreign direct investment. Whereas, between bank foreign direct investment and other variables there is no granger causality. However, between total foreign direct investment and economic growth and employment there is granger causality. There are a number of policy recommendations that can be drawn from the study. The study results in overall revealed that BRICs (private and bank) FDI inflows had a positive impact on South Africa’s economic growth between 1997 and 2016. The study results suggest that the policy makers should focus the attention on lobbying foreign direct investment from BRICs economies, since this study shows positive impact and relationship between South Africa’s economic growth and BRICs FDI inflows. The BRICs economies should focus on enhancing investment partnership, preventing protectionism, and promoting intra-BRICS flows. In addition, South Africa should eliminate barriers affecting business with BRICs countries. Policy makers should promote the building of new companies (for example Greenfield Investment) so that the economy of South Africa could grow and create employment. , Thesis (MA) -- Faculty of Business and Economic Sciences, Economics, 2021
- Full Text:
- Date Issued: 2021-04
- Authors: Dingela, Siyasanga
- Date: 2021-04
- Subjects: Investments, Foreign -- South Africa , Investments, Foreign -- Developing countries , South Africa -- Economic conditions , BRIC countries -- Foreign economic relations
- Language: English
- Type: Doctoral theses , text
- Identifier: http://hdl.handle.net/10948/51141 , vital:43212
- Description: This study investigated a behaviour of South Africa’s economy towards inflows of foreign direct investment (FDI) from Brazil, Russia, India and China (BRICs) economies, during the period 1997 to 2016. The BRICs bloc was coined in 2001 by then chairperson of Goldman Sachs Asset Management, Jim O’Neil. According to Goldman Sach (2001), the BRICs group was collectively expected to overtake the major economic powers over the span of a few decades. Their growth is expected to shape a new economic order and replace the currently dominant advanced economies. South Africa joined the BRICs bloc in 2010 as the jeweler of the world and as a gateway to Africa. It joined the BRICs group at the time when economic growth was at a sluggish rate, and the savings and investment were at the lowest rate. The country had a high unemployment rate, high levels of poverty and income inequality. On the other hand, the BRICs economies had limited intra-BRICs flows amongst themselves. It is against this background that this study investigated the long run impact of BRICs FDI inflows on South Africa’s economic growth, and the causality relationship between South Africa’s economic growth and BRICs FDI inflows. This study contributes to the body of knowledge of economics in South Africa and the literature on foreign direct investment and economic growth in South Africa. The study employed two cointegration methods to investigate the behaviour of South Africa’s economy towards inflows of foreign direct investment from BRICs economies. These are fully modified ordinary least squares (FMOLS) and dynamic ordinary least squares (DOLS). For granger causality, the study employed Stacked and Dumistrescu Hurlin tests. All the models used time series annual data from 1997 to 2016. The Unit root test results confirmed that the variables were stationary at first difference using panel Im, Pesaran, Shin (IPS) and Levin, Lin, Chu (LLC). The research employs four regressions, first, Economic growth and foreign direct investment (i.e. private sector, banking sector and both sectors), human capital, physical capital, household consumption, government expenditure, exports, and arable land; Second, Employment and foreign direct investment, human capital, physical capital, household consumption, government expenditure, exports, and arable land; third, Economic complexity and foreign direct investment, human capital, physical capital, household consumption, government expenditure, exports, and arable land; finally, Unemployment and foreign direct investment, human capital, physical capital, household consumption, government expenditure, exports, and arable land. The cointegration results for private FDI and economic growth, employment, economic complexity, and unemployment. The results show only economic complexity has significant effect on foreign direct investment and other variables show insignificant results. However, this effect is smaller compared to other growth determinants which are included in the regressions. The cointegration results for bank FDI. These results show more similarities with private FDI results and few differences. However, this effect is smaller compared to other growth determinants included in the regressions. These growth determinants, however, show a positive effect of human capital and household consumption on economic growth which is expected. Other interesting results are exports being positively related with economic growth and unemployment but negative with employment and insignificant with economic complexity. Another one is government spending negatively influence economic growth, employment and positively influence unemployment. But insignificant for economic complexity. Total FDI results and other variables. These results are also similar to private and bank FDI results discussed above. Economic complexity shows significant effect with foreign direct investment, yet other variables are insignificant. . Further results show human capital positively related with economic growth, which is expected. However, physical capital and household consumption negatively affects growth. Another one exports show positive influence on economic growth but negatively related with employment. Yet, insignificant with economic complexity and unemployment. Other results government spending shows negative influence with employment but insignificant with economic growth, economic complexity and unemployment. The results for nonlinearity between the variables under review. The results that employment and economic complexity are nonlinear with foreign direct investment and no nonlinearity between unemployment, economic growth and foreign direct investment. For employment, low levels of foreign direct investment (LFDI_private) adversely affects employment but at higher levels (FDI_private_SQ) is insignificant. For economic complexity, low levels of foreign direct investment are insignificant for economic complexity but at higher levels there is a positive effect of squared foreign direct investment on economic complexity. Further results show that economic growth and employment are nonlinear with human capital, physical capital, household consumption and exports. Physical capital and household consumption adversely affect economic growth, yet positively affects employment. Human capital positively affects economic growth, employment, and unemployment. Exports positively affect economic growth, but negatively affect employment. Further results show nonlinearity between employment and government expenditure. Government expenditure adversely affects employment. Also, economic growth and unemployment show nonlinearity with arable land. Arable land adversely affects economic growth but positively affects unemployment. Nonlinear results for economic growth and economic complexity with foreign direct investment but no nonlinearity in other remaining variables. For economic growth, low levels of foreign direct investment there is a positive effect of foreign direct investment on economic growth, however, at higher levels foreign direct investment are insignificant. For economic complexity, low levels of foreign direct investment are insignificant, yet, higher levels of foreign direct investment there is a positive influence of foreign direct investment on economic complexity. Further results show economic growth and employment that are nonlinear with human capital, physical capital, and household consumption. Human capital positively affects both economic growth and employment. Physical capital and household consumption are adversely affecting economic growth, yet positively affects employment. Further results show nonlinearity between economic growth and government expenditure. Government expenditure adversely affects employment. More results, employment, and unemployment show nonlinearity results with exports. Exports adversely affect employment but positively affects unemployment. Results show economic growth and unemployment that are nonlinear with arable land. Arable land adversely affects economic growth, but positively affect unemployment. Nonlinear results for economic complexity only and other variables show no nonlinearity in the regressions. For economic complexity, low levels of foreign direct investment are insignificant, but at higher levels of foreign direct investment there is positive effect of foreign direct investment on economic complexity. More results show economic growth and employment that are nonlinear with human capital, physical capital, household consumption and exports. Human capital and exports positively affect economic growth, employment, and unemployment. Whereas, physical capital and household consumption adversely affects economic growth and unemployment, yet positively affects employment. Further results show nonlinearity between employment and government expenditure. Government spending adversely affects employment. Further results show nonlinearity between economic growth and unemployment with arable land. Arable land positively affects unemployment, yet adversely affects economic growth. The following section discusses granger causality results. This study also employed granger causality tests. The causality results between economic growth, employment, economic complexity, unemployment, and private foreign direct investment. The causality results show that there is granger causality between economic growth and economic complexity with private foreign direct investment. Whereas, between bank foreign direct investment and other variables there is no granger causality. However, between total foreign direct investment and economic growth and employment there is granger causality. There are a number of policy recommendations that can be drawn from the study. The study results in overall revealed that BRICs (private and bank) FDI inflows had a positive impact on South Africa’s economic growth between 1997 and 2016. The study results suggest that the policy makers should focus the attention on lobbying foreign direct investment from BRICs economies, since this study shows positive impact and relationship between South Africa’s economic growth and BRICs FDI inflows. The BRICs economies should focus on enhancing investment partnership, preventing protectionism, and promoting intra-BRICS flows. In addition, South Africa should eliminate barriers affecting business with BRICs countries. Policy makers should promote the building of new companies (for example Greenfield Investment) so that the economy of South Africa could grow and create employment. , Thesis (MA) -- Faculty of Business and Economic Sciences, Economics, 2021
- Full Text:
- Date Issued: 2021-04
A public-private partnership model for the improvemnet of local economic development in South African metropolitan government
- Binza, Mzikayise Shakespeare
- Authors: Binza, Mzikayise Shakespeare
- Date: 2009
- Subjects: Economic development -- South Africa , Public-private sector cooperation -- South Africa , South Africa -- Economic conditions
- Language: English
- Type: Thesis , Doctoral , DPhil
- Identifier: vital:8159 , http://hdl.handle.net/10948/923 , Economic development -- South Africa , Public-private sector cooperation -- South Africa , South Africa -- Economic conditions
- Description: The post-apartheid developmental state of South Africa had a challenge of turning around an economy that was on deficit which it inherited in 1994, to a positive growth that will be sustainable and shared. The process followed in creating a sustainable economic development was first establishing a constitutional democratic government which was constituted in terms of the provisions of the Constitution of the Republic of South Africa, 1996, as three equal spheres of government, viz: the national, provincial and local spheres of government. Initiatives on innovative economic development become a reconstruction programme not only of the national and provincial spheres of government, but also of the local sphere of government which is closest to the people it governs and deliver municipal goods and services to. For an example, section 152 (1) (c) of the Constitution of the Republic of South Africa, 1996, provides that the local sphere of government which is constituted by 283 wall-to-wall municipalities must “improve social and economic development” of the people. Out of the 283 municipalities, 6 are metropolitan municipalities, and are the: City of Cape Town, City of Johannesburg, City of Tshwane, Ekurhuleni, Ethekwini, and Nelson Mandela Bay Municipality. This research project is limited to the City of Cape Town (CCT) and the Nelson Mandela Bay Municipalities (NMBM). In the second process, a number of legislations and policies providing for external mechanisms to be used to improve local economic development (LED) in an inclusive, shared and equitable manner were introduced. Policies that were introduced by the democratic government and serve as policy directive for economic development are: the Reconstruction and Development Programme (RDP) of 1994; the Growth, Employment and Redistribution (GEAR) of 1996; and the Accelerated and Shared Growth Initiative of South Africa (ASGISA) of 2006. The relevant legislations to the local sphere of government which were introduced and provided for the appropriate mechanism for enabling sustainable growth of local economies by developmental local government in partnerships with other stakeholders such as private sector and civil society movements are: the Local Government: Municipal Systems Act, 2000 (Act 32 of 2000); Municipal Service Policy of 2000; Guidelines on Municipal Service Partnerships of 2006-2010; and the National Framework for Local Economic Development in South Africa (NFLED) of 2006-2010. The above xviii legislations provide the following external mechanisms to improve local economic development in municipal areas, viz: public-private partnerships; public-public partnerships, and public-community partnerships. This research project is about the first external mechanism which is the public-private partnerships (PPPs) to enable municipalities to improve local economies that provide for job creations and employment for the local inhabitants. According to the National Treasury Regulation 16 (2004:1), PPP means a “commercial transaction between an institution, for example a metropolitan government, and a private party in terms of which: 1. The private party either performs an institutional function on behalf of the institution [in this regard a metropolitan government] for a specified or indefinite period or acquires the use of a state property for its own commercial purposes for a specified or indefinite period. 2. The private party receives a benefit for performing the function or by utilising state property, either by way of compensation from a revenue fund, or by charges or fees collected by the private party from users or customers of a service provided for them; or a combination of such compensation and such fees”. The first goal of this research project is to develop the most appropriate public-private partnership model for South African metropolitan government with special reference to the City of Cape Town (CCT) and the Nelson Mandela Bay Municipality (NMBM) in enabling and guiding them to improve and sustain local economic development (LED) in their respective areas of jurisdiction. The application of public-private partnerships (PPPs) as a policy strategy to achieve local economic development (LED) in CCT and NMBM was investigated, in order to determine whether these activities can be improved. Followed is the development of a conceptual framework for optimal PPP implementation in order to improve local economic development in the CCT and NMBM and other metropolitan and municipal areas in South Africa. A more appropriate PPP model called the Participatory Development Systems Model (PDSM) has been constructed for this purpose from a number of sources and proven good practices both locally in South Africa and internationally. The PDSM model uses the strategic prioritisation and management by a municipality of the integrated development of physical, economic, human and social capital in its region in a more participatory way, as a point of departure for PPPs. The PDSM model for PPPs also emphasises consistent systematic assessment of these strategies against the strategic LED goals of the municipality concerned in order to ensure that lessons are learnt from these experiences and used to refine or revise future LED and PPP strategies accordingly. This thesis makes an original contribution to the existing body of knowledge about the promotion of LED through PPPs in metropolitan municipalities in South Africa and elsewhere, by conceptualising PPPs in a clear and coherent way as an integrated dimension of strategic management processes in municipalities that need to be implemented in a more participatory way in order to achieve the overall strategic goal of sustainable LED.
- Full Text:
- Date Issued: 2009
- Authors: Binza, Mzikayise Shakespeare
- Date: 2009
- Subjects: Economic development -- South Africa , Public-private sector cooperation -- South Africa , South Africa -- Economic conditions
- Language: English
- Type: Thesis , Doctoral , DPhil
- Identifier: vital:8159 , http://hdl.handle.net/10948/923 , Economic development -- South Africa , Public-private sector cooperation -- South Africa , South Africa -- Economic conditions
- Description: The post-apartheid developmental state of South Africa had a challenge of turning around an economy that was on deficit which it inherited in 1994, to a positive growth that will be sustainable and shared. The process followed in creating a sustainable economic development was first establishing a constitutional democratic government which was constituted in terms of the provisions of the Constitution of the Republic of South Africa, 1996, as three equal spheres of government, viz: the national, provincial and local spheres of government. Initiatives on innovative economic development become a reconstruction programme not only of the national and provincial spheres of government, but also of the local sphere of government which is closest to the people it governs and deliver municipal goods and services to. For an example, section 152 (1) (c) of the Constitution of the Republic of South Africa, 1996, provides that the local sphere of government which is constituted by 283 wall-to-wall municipalities must “improve social and economic development” of the people. Out of the 283 municipalities, 6 are metropolitan municipalities, and are the: City of Cape Town, City of Johannesburg, City of Tshwane, Ekurhuleni, Ethekwini, and Nelson Mandela Bay Municipality. This research project is limited to the City of Cape Town (CCT) and the Nelson Mandela Bay Municipalities (NMBM). In the second process, a number of legislations and policies providing for external mechanisms to be used to improve local economic development (LED) in an inclusive, shared and equitable manner were introduced. Policies that were introduced by the democratic government and serve as policy directive for economic development are: the Reconstruction and Development Programme (RDP) of 1994; the Growth, Employment and Redistribution (GEAR) of 1996; and the Accelerated and Shared Growth Initiative of South Africa (ASGISA) of 2006. The relevant legislations to the local sphere of government which were introduced and provided for the appropriate mechanism for enabling sustainable growth of local economies by developmental local government in partnerships with other stakeholders such as private sector and civil society movements are: the Local Government: Municipal Systems Act, 2000 (Act 32 of 2000); Municipal Service Policy of 2000; Guidelines on Municipal Service Partnerships of 2006-2010; and the National Framework for Local Economic Development in South Africa (NFLED) of 2006-2010. The above xviii legislations provide the following external mechanisms to improve local economic development in municipal areas, viz: public-private partnerships; public-public partnerships, and public-community partnerships. This research project is about the first external mechanism which is the public-private partnerships (PPPs) to enable municipalities to improve local economies that provide for job creations and employment for the local inhabitants. According to the National Treasury Regulation 16 (2004:1), PPP means a “commercial transaction between an institution, for example a metropolitan government, and a private party in terms of which: 1. The private party either performs an institutional function on behalf of the institution [in this regard a metropolitan government] for a specified or indefinite period or acquires the use of a state property for its own commercial purposes for a specified or indefinite period. 2. The private party receives a benefit for performing the function or by utilising state property, either by way of compensation from a revenue fund, or by charges or fees collected by the private party from users or customers of a service provided for them; or a combination of such compensation and such fees”. The first goal of this research project is to develop the most appropriate public-private partnership model for South African metropolitan government with special reference to the City of Cape Town (CCT) and the Nelson Mandela Bay Municipality (NMBM) in enabling and guiding them to improve and sustain local economic development (LED) in their respective areas of jurisdiction. The application of public-private partnerships (PPPs) as a policy strategy to achieve local economic development (LED) in CCT and NMBM was investigated, in order to determine whether these activities can be improved. Followed is the development of a conceptual framework for optimal PPP implementation in order to improve local economic development in the CCT and NMBM and other metropolitan and municipal areas in South Africa. A more appropriate PPP model called the Participatory Development Systems Model (PDSM) has been constructed for this purpose from a number of sources and proven good practices both locally in South Africa and internationally. The PDSM model uses the strategic prioritisation and management by a municipality of the integrated development of physical, economic, human and social capital in its region in a more participatory way, as a point of departure for PPPs. The PDSM model for PPPs also emphasises consistent systematic assessment of these strategies against the strategic LED goals of the municipality concerned in order to ensure that lessons are learnt from these experiences and used to refine or revise future LED and PPP strategies accordingly. This thesis makes an original contribution to the existing body of knowledge about the promotion of LED through PPPs in metropolitan municipalities in South Africa and elsewhere, by conceptualising PPPs in a clear and coherent way as an integrated dimension of strategic management processes in municipalities that need to be implemented in a more participatory way in order to achieve the overall strategic goal of sustainable LED.
- Full Text:
- Date Issued: 2009
A study of some aspects of the poor white problem in South Africa
- Authors: Lewis, Robert Alexander
- Date: 1979
- Subjects: Poor white problem , Afrikaners -- Economic conditions , Poor -- South Africa , South Africa -- Economic conditions , South Africa -- Social conditions
- Language: English
- Type: text , Thesis , Masters , MA
- Identifier: vital:2524 , http://hdl.handle.net/10962/d1001853
- Description: The first instance of the poor white problem being dramatically brought to the attention of white South Africa was in 1893 when Rev. Andrew Murray issued an open letter on the subject which resulted in the convening of the first of many Dutch Reformed Church conferences on the problem (Introduction, p. 1).
- Full Text:
- Date Issued: 1979
- Authors: Lewis, Robert Alexander
- Date: 1979
- Subjects: Poor white problem , Afrikaners -- Economic conditions , Poor -- South Africa , South Africa -- Economic conditions , South Africa -- Social conditions
- Language: English
- Type: text , Thesis , Masters , MA
- Identifier: vital:2524 , http://hdl.handle.net/10962/d1001853
- Description: The first instance of the poor white problem being dramatically brought to the attention of white South Africa was in 1893 when Rev. Andrew Murray issued an open letter on the subject which resulted in the convening of the first of many Dutch Reformed Church conferences on the problem (Introduction, p. 1).
- Full Text:
- Date Issued: 1979
Agricultural entrepreneurship development as strategy for economic empowerment: The case of small-scale farmers in Eastern Cape Province of South Africa
- Authors: Akinwale, Olusola Mokayode
- Date: 2020-11
- Subjects: Sustainable development -- South Africa -- Eastern Cape , South Africa -- Economic conditions
- Language: English
- Type: Doctoral theses , text
- Identifier: http://hdl.handle.net/10353/20241 , vital:45637
- Description: This study emanated from the struggle for economic empowerment among small-scale farmers in South African. The study advocates for the establishment of a viable environment where agricultural entrepreneurship can thrive. While the South African Nation Development Plan (NDP) proposed to create one million jobs through agricultural sector by 2030, the majority of small-scale farmers in South Africa are struggling to grow beyond the level of subsistence farming, and the youths appear not to be interested in the farming. It is therefore become necessary to conduct this current study that is exploratory in nature; it explored several factors and barriers to agricultural entrepreneurship development, as well as factors that can contribute to the development of prosperous and sustainable agricultural entrepreneurship among small-scale farmers in South African. The study was conducted in two district municipalities of Eastern Cape Province of South Africa – OR Tambo and Chris Hani. Both quantitative and qualitative research methods were used to make findings. Findings from the study shows that economic empowerment can be achieved through agricultural entrepreneurship development by giving adequate attention to specific factors like individuals’ attitude, production skills, access to market and marketing skills, management skills. Empirically, basic components like personal interests, adequate training and background, efficient extension service, famers’ network and communication, specific goal-oriented, understanding market, farmers’ collaboration, and access to sufficient funding are few of the factors that will make the small-scale farmers grow to the level of commercial farming. The study concluded that prerequisite to developing a sustainable agricultural entrepreneurship climate among small-scale farmers in South African is the combination of basic components aforementioned. Suggestions were made for strong collaboration between government and private sectors to provide development assistance for small-scale farmers as they struggles to develop their small-scale farming to sustainable entrepreneurship level. , Thesis (DPhil) -- Faculty of Management and Commerce, 2020
- Full Text:
- Date Issued: 2020-11
- Authors: Akinwale, Olusola Mokayode
- Date: 2020-11
- Subjects: Sustainable development -- South Africa -- Eastern Cape , South Africa -- Economic conditions
- Language: English
- Type: Doctoral theses , text
- Identifier: http://hdl.handle.net/10353/20241 , vital:45637
- Description: This study emanated from the struggle for economic empowerment among small-scale farmers in South African. The study advocates for the establishment of a viable environment where agricultural entrepreneurship can thrive. While the South African Nation Development Plan (NDP) proposed to create one million jobs through agricultural sector by 2030, the majority of small-scale farmers in South Africa are struggling to grow beyond the level of subsistence farming, and the youths appear not to be interested in the farming. It is therefore become necessary to conduct this current study that is exploratory in nature; it explored several factors and barriers to agricultural entrepreneurship development, as well as factors that can contribute to the development of prosperous and sustainable agricultural entrepreneurship among small-scale farmers in South African. The study was conducted in two district municipalities of Eastern Cape Province of South Africa – OR Tambo and Chris Hani. Both quantitative and qualitative research methods were used to make findings. Findings from the study shows that economic empowerment can be achieved through agricultural entrepreneurship development by giving adequate attention to specific factors like individuals’ attitude, production skills, access to market and marketing skills, management skills. Empirically, basic components like personal interests, adequate training and background, efficient extension service, famers’ network and communication, specific goal-oriented, understanding market, farmers’ collaboration, and access to sufficient funding are few of the factors that will make the small-scale farmers grow to the level of commercial farming. The study concluded that prerequisite to developing a sustainable agricultural entrepreneurship climate among small-scale farmers in South African is the combination of basic components aforementioned. Suggestions were made for strong collaboration between government and private sectors to provide development assistance for small-scale farmers as they struggles to develop their small-scale farming to sustainable entrepreneurship level. , Thesis (DPhil) -- Faculty of Management and Commerce, 2020
- Full Text:
- Date Issued: 2020-11
An analysis of the long run comovements between financial system development and mining production in South Africa
- Authors: Ajagbe, Stephen Mayowa
- Date: 2011
- Subjects: Economic development -- South Africa , Econometric models , Mineral industries -- Economic aspects -- South Africa , South Africa -- Economic conditions , South Africa -- Economic policy , Principal components analysis , Cointegration , Stock exchanges -- South Africa , Banks and banking -- South Africa , Foreign exchange rates
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:955 , http://hdl.handle.net/10962/d1002689 , Economic development -- South Africa , Econometric models , Mineral industries -- Economic aspects -- South Africa , South Africa -- Economic conditions , South Africa -- Economic policy , Principal components analysis , Cointegration , Stock exchanges -- South Africa , Banks and banking -- South Africa , Foreign exchange rates
- Description: This study examines the nature of the relationship which exists between mining sector production and development of the financial systems in South Africa. This is particularly important in that the mining sector is considered to be one of the major contributors to the country’s overall economic growth. South Africa is also considered to have a very well developed financial system, to the point where the dominance of one over the other is difficult to identify. Therefore offering insight into the nature of this relationship will assist policy makers in identifying the most effective policies in order to ensure that the developments within the financial systems impact appropriately on the mining sector, and ultimately on the economy. In addition to using the conventional proxies of financial system development, this study utilises the principal component analysis (PCA) to construct an index for the entire financial system. The multivariate cointegration approach as proposed by Johansen (1988) and Johansen and Juselius (1990) was then used to estimate the relationship between the development of the financial systems and the mining sector production for the period 1988-2008. The study reveals mixed results for different measures of financial system development. Those involving the banking system show that a negative relationship exists between total mining production and total credit extended to the private sector, while liquid liabilities has a positive relationship. Similarly, with the stock market system, mixed results are also obtained which reveal a negative relationship between total mining production and stock market capitalisation, while a positive relationship is found with secondary market turnover. Of all the financial system variables, only that of stock market capitalisation was found to be significant. The result with the financial development index reveals that a significant negative relationship exists between financial system development and total mining sector production. Results on the other variables controlled in the estimation show that positive and significant relationships exist between total mining production and both nominal exchange rate and political stability respectively. Increased mining production therefore takes place in periods of appreciating exchange rates, and similarly in the post-apartheid era. On the other hand, negative relationships were found for both trade openness and inflation control variables. The impulse response and variance decomposition analyses showed that total mining production explains the largest amount of shocks within itself. Overall, the study reveals that the mining sector might not have benefited much from the development in the South African financial system.
- Full Text:
- Date Issued: 2011
- Authors: Ajagbe, Stephen Mayowa
- Date: 2011
- Subjects: Economic development -- South Africa , Econometric models , Mineral industries -- Economic aspects -- South Africa , South Africa -- Economic conditions , South Africa -- Economic policy , Principal components analysis , Cointegration , Stock exchanges -- South Africa , Banks and banking -- South Africa , Foreign exchange rates
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:955 , http://hdl.handle.net/10962/d1002689 , Economic development -- South Africa , Econometric models , Mineral industries -- Economic aspects -- South Africa , South Africa -- Economic conditions , South Africa -- Economic policy , Principal components analysis , Cointegration , Stock exchanges -- South Africa , Banks and banking -- South Africa , Foreign exchange rates
- Description: This study examines the nature of the relationship which exists between mining sector production and development of the financial systems in South Africa. This is particularly important in that the mining sector is considered to be one of the major contributors to the country’s overall economic growth. South Africa is also considered to have a very well developed financial system, to the point where the dominance of one over the other is difficult to identify. Therefore offering insight into the nature of this relationship will assist policy makers in identifying the most effective policies in order to ensure that the developments within the financial systems impact appropriately on the mining sector, and ultimately on the economy. In addition to using the conventional proxies of financial system development, this study utilises the principal component analysis (PCA) to construct an index for the entire financial system. The multivariate cointegration approach as proposed by Johansen (1988) and Johansen and Juselius (1990) was then used to estimate the relationship between the development of the financial systems and the mining sector production for the period 1988-2008. The study reveals mixed results for different measures of financial system development. Those involving the banking system show that a negative relationship exists between total mining production and total credit extended to the private sector, while liquid liabilities has a positive relationship. Similarly, with the stock market system, mixed results are also obtained which reveal a negative relationship between total mining production and stock market capitalisation, while a positive relationship is found with secondary market turnover. Of all the financial system variables, only that of stock market capitalisation was found to be significant. The result with the financial development index reveals that a significant negative relationship exists between financial system development and total mining sector production. Results on the other variables controlled in the estimation show that positive and significant relationships exist between total mining production and both nominal exchange rate and political stability respectively. Increased mining production therefore takes place in periods of appreciating exchange rates, and similarly in the post-apartheid era. On the other hand, negative relationships were found for both trade openness and inflation control variables. The impulse response and variance decomposition analyses showed that total mining production explains the largest amount of shocks within itself. Overall, the study reveals that the mining sector might not have benefited much from the development in the South African financial system.
- Full Text:
- Date Issued: 2011
An appraisal of the East London Industrial Development Zone’s role in local innovation, entrepreneurship, and industrial development
- Authors: Masiwa, George Bonginkosi
- Date: 2021-02
- Subjects: Industrialization , Economic development , South Africa -- Economic conditions
- Language: English
- Type: Doctoral theses , text
- Identifier: http://hdl.handle.net/10353/21213 , vital:47406
- Description: This study focuses on the East London Industrial Development Zone (ELIDZ) in South Africa. The ELIDZ strategy came as a response to the need for a robust catalyst for sustainable regional economic development, industrial diversification and to create meaningful employment opportunities in the country. It was supposed to provide customised solutions for various industries including automotive, agro-processing and aqua-culture. However, an Industrial Development Zone should promote innovati on and entrepreneurship to stimulate economic growth and global competitiveness. Economic stagnation, joblessness and inequality continue to be a reality for the previously marginalised groups after 16 years of the ELIDZ despite significant investments in the automotive sector, the growth of companies that supply Mercedes Benz with parts and the establishment and growth of innovative start-up companies at the ELIDZ Science and Technology Park (STP). Massive joblessness, poverty and economic stagnation had followed the collapse of the old industrial parks. The ELIDZ strategy of industrial development came as a response to the demise of the old parks and was meant to become the main vehicle for job creation, local innovation and global competitiveness. This study therefore investigated the extent to which innovation and entrepreneurship have fared in driving sustainable local economic development and how they have impacted jobs at the ELIDZ and within the East London community. The study was qualitative in nature and employed the non-probability sampling technique. In-depth semi-structured interviews were conducted with key informants that included Industrialists, Business Executives that were tenants at the ELIDZ, the Buffalo City Municipal Metro and community members with knowledge of and association with the ELIDZ. This was augmented by desktop and observational data. It was found that innovation and entrepreneurship was still a fairly new phenomenon at the ELIDZ and their flagships had the vision but were not yet driving sustainable local economic development to a large extent. The model lacks adequate diversification as most of the innovation projects are in the renewable energy and information communication spaces. Very few have made it to mass production with downstream industry employment creation for plumbers, artisans and marketers involved in the supply, distribution, instalment and maintenance of the Hotspot and Thin-film solar panels. New industrialists like YEKANI Technologies and Manufacturing and KGI Holdings, already employ some people and have the vision to employ thousands more of young people. The main innovation and entrepreneurship projects of the ELIDZ have had some impact at the grassroots level even though it is still limited. Too few jobs have been created compared to the old industrial parks model. The ELIDZ is therefore playing an important (albeit limited) role as a local employment creator, even though it has not revitalised the Eastern Cape manufacturing landscape. Due to its highly technology driven and specialised skills nature, the ELIDZ model is benefiting the few and therefore has not yet been an effective instrument to resolve the disturbing levels of inequality, poverty and unemployment, that underlie racial, class and gender dynamics in East London. The study concluded that innovation and entrepreneurship projects at the ELIDZ were contributing towards driving sustainable local economic development to some degree. However, due to its narrow industrial focus and highly technical and specialised skills driven business model, it excludes most historically disadvantaged communities and the local academic institutions need to do more to produce the skills relevant to support local innovation and local industrial development in a time when economies rely more on intellectual capabilities rather than natural resources. , Thesis (PhD) -- Faculty of Social Sciences and Humanities, 2021
- Full Text:
- Date Issued: 2021-02
- Authors: Masiwa, George Bonginkosi
- Date: 2021-02
- Subjects: Industrialization , Economic development , South Africa -- Economic conditions
- Language: English
- Type: Doctoral theses , text
- Identifier: http://hdl.handle.net/10353/21213 , vital:47406
- Description: This study focuses on the East London Industrial Development Zone (ELIDZ) in South Africa. The ELIDZ strategy came as a response to the need for a robust catalyst for sustainable regional economic development, industrial diversification and to create meaningful employment opportunities in the country. It was supposed to provide customised solutions for various industries including automotive, agro-processing and aqua-culture. However, an Industrial Development Zone should promote innovati on and entrepreneurship to stimulate economic growth and global competitiveness. Economic stagnation, joblessness and inequality continue to be a reality for the previously marginalised groups after 16 years of the ELIDZ despite significant investments in the automotive sector, the growth of companies that supply Mercedes Benz with parts and the establishment and growth of innovative start-up companies at the ELIDZ Science and Technology Park (STP). Massive joblessness, poverty and economic stagnation had followed the collapse of the old industrial parks. The ELIDZ strategy of industrial development came as a response to the demise of the old parks and was meant to become the main vehicle for job creation, local innovation and global competitiveness. This study therefore investigated the extent to which innovation and entrepreneurship have fared in driving sustainable local economic development and how they have impacted jobs at the ELIDZ and within the East London community. The study was qualitative in nature and employed the non-probability sampling technique. In-depth semi-structured interviews were conducted with key informants that included Industrialists, Business Executives that were tenants at the ELIDZ, the Buffalo City Municipal Metro and community members with knowledge of and association with the ELIDZ. This was augmented by desktop and observational data. It was found that innovation and entrepreneurship was still a fairly new phenomenon at the ELIDZ and their flagships had the vision but were not yet driving sustainable local economic development to a large extent. The model lacks adequate diversification as most of the innovation projects are in the renewable energy and information communication spaces. Very few have made it to mass production with downstream industry employment creation for plumbers, artisans and marketers involved in the supply, distribution, instalment and maintenance of the Hotspot and Thin-film solar panels. New industrialists like YEKANI Technologies and Manufacturing and KGI Holdings, already employ some people and have the vision to employ thousands more of young people. The main innovation and entrepreneurship projects of the ELIDZ have had some impact at the grassroots level even though it is still limited. Too few jobs have been created compared to the old industrial parks model. The ELIDZ is therefore playing an important (albeit limited) role as a local employment creator, even though it has not revitalised the Eastern Cape manufacturing landscape. Due to its highly technology driven and specialised skills nature, the ELIDZ model is benefiting the few and therefore has not yet been an effective instrument to resolve the disturbing levels of inequality, poverty and unemployment, that underlie racial, class and gender dynamics in East London. The study concluded that innovation and entrepreneurship projects at the ELIDZ were contributing towards driving sustainable local economic development to some degree. However, due to its narrow industrial focus and highly technical and specialised skills driven business model, it excludes most historically disadvantaged communities and the local academic institutions need to do more to produce the skills relevant to support local innovation and local industrial development in a time when economies rely more on intellectual capabilities rather than natural resources. , Thesis (PhD) -- Faculty of Social Sciences and Humanities, 2021
- Full Text:
- Date Issued: 2021-02
An empirical analysis of the Austrian business cycle theory with respect to South Africa
- Authors: Nyika, Farai
- Date: 2012
- Subjects: Business cycles , Business cycles -- Austria -- Econometric models , South Africa -- Economic conditions
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9031 , http://hdl.handle.net/10948/d1020867
- Description: In 2008, the global economy went into recession. Millions of jobs were lost, confidence in the financial markets fell and billions of dollars were lost by investors. Prior to the onset of the recession, the major economies of the world (USA, and Western Europe) had experienced a period of economic boom and expansion. Austrian Business Cycle Theory proposes that the roots of the current financial crisis and recessions in general, are found the actions of central banks through credit expansion and manipulation of interest rates. Central banks manipulate interest rates causing them to fall below the natural level, leading to credit expansion and malinvestments. Austrian Business Cycle Theory is based in capital theory. Capital theory incorporates the elements of time and money and allows the setting of a microeconomic foundation. The theory recognises that investment is not an aggregate (as do Keynesians and Monetarists). Opposition to empirical testing by Austrian economists has meant that few statistical analyses of Austrian Business Cycle Theory have been carried out. The apprehension toward empirical testing of Austrian Business Cycle Theory stems from some Austrian economists who argue that human behaviour cannot be captured in statistical terms. Recently, some Austrian economists have begun to do empirical research Austrian Business Cycle Theory and the thesis adds to that growing field. The thesis tests empirically for ABCT in South Africa by using Vector Error Correction Model and Granger causality techniques and the results are as follows: The Vector Error Correction Model shows that any disequilibrium adjustment in the structural equations influences correction mostly through changes in Manufacturing. The disequilibrium adjustment process for Investment is also found to have statistical significance. The results propose that Investment in South Africa is not inert. The Granger causality tests show that credit expansion causes interest rates to be artificially lowered leading to mal-investments. The main policy recommendation is that business cycles can be prevented by not manipulating interest rates and by not increasing credit availability.
- Full Text:
- Date Issued: 2012
- Authors: Nyika, Farai
- Date: 2012
- Subjects: Business cycles , Business cycles -- Austria -- Econometric models , South Africa -- Economic conditions
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9031 , http://hdl.handle.net/10948/d1020867
- Description: In 2008, the global economy went into recession. Millions of jobs were lost, confidence in the financial markets fell and billions of dollars were lost by investors. Prior to the onset of the recession, the major economies of the world (USA, and Western Europe) had experienced a period of economic boom and expansion. Austrian Business Cycle Theory proposes that the roots of the current financial crisis and recessions in general, are found the actions of central banks through credit expansion and manipulation of interest rates. Central banks manipulate interest rates causing them to fall below the natural level, leading to credit expansion and malinvestments. Austrian Business Cycle Theory is based in capital theory. Capital theory incorporates the elements of time and money and allows the setting of a microeconomic foundation. The theory recognises that investment is not an aggregate (as do Keynesians and Monetarists). Opposition to empirical testing by Austrian economists has meant that few statistical analyses of Austrian Business Cycle Theory have been carried out. The apprehension toward empirical testing of Austrian Business Cycle Theory stems from some Austrian economists who argue that human behaviour cannot be captured in statistical terms. Recently, some Austrian economists have begun to do empirical research Austrian Business Cycle Theory and the thesis adds to that growing field. The thesis tests empirically for ABCT in South Africa by using Vector Error Correction Model and Granger causality techniques and the results are as follows: The Vector Error Correction Model shows that any disequilibrium adjustment in the structural equations influences correction mostly through changes in Manufacturing. The disequilibrium adjustment process for Investment is also found to have statistical significance. The results propose that Investment in South Africa is not inert. The Granger causality tests show that credit expansion causes interest rates to be artificially lowered leading to mal-investments. The main policy recommendation is that business cycles can be prevented by not manipulating interest rates and by not increasing credit availability.
- Full Text:
- Date Issued: 2012
An investigation into the introduction of a new wealth tax in South Africa
- Authors: Arendse, Jacqueline A
- Date: 2018
- Subjects: Wealth tax -- Law and legislation -- South Africa , Taxation -- Law and legislation -- South Africa , Income tax -- South Africa , Fiscal policy -- South Africa , South Africa -- Economic conditions , Income distribution -- South Africa
- Language: English
- Type: text , Thesis , Doctoral , PhD
- Identifier: http://hdl.handle.net/10962/61379 , vital:28020
- Description: In a world of economic uncertainty and manifold social problems, South Africa has its own unique challenges of low economic growth, persistent budget deficits that produce increasing government debt and the highest level of economic inequality in the world. The history of injustice and economic marginalisation and the failure of the economy to provide inclusive growth drives an urgent need to address economic inequality through tax policy, placing ever more focus on wealth taxes as a possible solution. There is a hope is that taxing the wealthy may provide the opportunity to redistribute desperately-needed resources to those denied the opportunity to build wealth and who are trapped in the cycle of poverty. Yet, as appealing as a new wealth tax may seem, the introduction of such a tax carries with it a range of risks, not all of which are known. Of great concern is the possible effect on the economy, which, in its vulnerable state, cannot afford any loss of capital and investment. Very little research has been done on wealth tax in the South African context and there is a dearth of literature focusing on the views and perceptions of the wealthy individuals themselves. This qualitative study investigates the merits and disadvantages of a new wealth tax and seeks to identify any unintended consequences that could result from the implementation of a new wealth tax in South Africa, drawing from historical and international experience and primary data obtained from interviews with individuals likely to be affected by such a tax. Having explored the literature and international experiences with wealth tax and having probed the thinking of wealthy individuals who would be the payers of a wealth tax, the study finds that a new wealth tax may contribute towards the progressivity of the tax system, but it is doubtful whether such a tax would provide a sustainable revenue stream that would be sufficient to address economic inequality and there is a risk of causing harm to the economy. Recognising that the motivation for wealth taxes is often driven more by political argument and public perception than by rational quantitative analysis, the study also anticipates the introduction of a new wealth tax and suggests guidelines for the design of such a tax within the framework for evaluating a good tax system. This study informs the debate on wealth taxes in South Africa and contributes to the design of such a tax, should it be implemented.
- Full Text:
- Date Issued: 2018
- Authors: Arendse, Jacqueline A
- Date: 2018
- Subjects: Wealth tax -- Law and legislation -- South Africa , Taxation -- Law and legislation -- South Africa , Income tax -- South Africa , Fiscal policy -- South Africa , South Africa -- Economic conditions , Income distribution -- South Africa
- Language: English
- Type: text , Thesis , Doctoral , PhD
- Identifier: http://hdl.handle.net/10962/61379 , vital:28020
- Description: In a world of economic uncertainty and manifold social problems, South Africa has its own unique challenges of low economic growth, persistent budget deficits that produce increasing government debt and the highest level of economic inequality in the world. The history of injustice and economic marginalisation and the failure of the economy to provide inclusive growth drives an urgent need to address economic inequality through tax policy, placing ever more focus on wealth taxes as a possible solution. There is a hope is that taxing the wealthy may provide the opportunity to redistribute desperately-needed resources to those denied the opportunity to build wealth and who are trapped in the cycle of poverty. Yet, as appealing as a new wealth tax may seem, the introduction of such a tax carries with it a range of risks, not all of which are known. Of great concern is the possible effect on the economy, which, in its vulnerable state, cannot afford any loss of capital and investment. Very little research has been done on wealth tax in the South African context and there is a dearth of literature focusing on the views and perceptions of the wealthy individuals themselves. This qualitative study investigates the merits and disadvantages of a new wealth tax and seeks to identify any unintended consequences that could result from the implementation of a new wealth tax in South Africa, drawing from historical and international experience and primary data obtained from interviews with individuals likely to be affected by such a tax. Having explored the literature and international experiences with wealth tax and having probed the thinking of wealthy individuals who would be the payers of a wealth tax, the study finds that a new wealth tax may contribute towards the progressivity of the tax system, but it is doubtful whether such a tax would provide a sustainable revenue stream that would be sufficient to address economic inequality and there is a risk of causing harm to the economy. Recognising that the motivation for wealth taxes is often driven more by political argument and public perception than by rational quantitative analysis, the study also anticipates the introduction of a new wealth tax and suggests guidelines for the design of such a tax within the framework for evaluating a good tax system. This study informs the debate on wealth taxes in South Africa and contributes to the design of such a tax, should it be implemented.
- Full Text:
- Date Issued: 2018
Assessing financial viability of selected urban and rural municipalities in the Eastern Cape
- Authors: Maclean, Sindisile
- Date: 2013
- Subjects: Finance, Public -- South Africa -- Eastern Cape , Municipal government -- South Africa -- Eastern Cape , Sustainable development -- South Africa -- Eastern Cape , Human services -- South Africa -- Eastern Cape , Municipal services -- South Africa -- Eastern Cape , South Africa -- Economic policy , South Africa -- Economic conditions
- Language: English
- Type: Thesis , Doctoral , PhD (in Public Administration)
- Identifier: vital:11661 , http://hdl.handle.net/10353/d1007093 , Finance, Public -- South Africa -- Eastern Cape , Municipal government -- South Africa -- Eastern Cape , Sustainable development -- South Africa -- Eastern Cape , Human services -- South Africa -- Eastern Cape , Municipal services -- South Africa -- Eastern Cape , South Africa -- Economic policy , South Africa -- Economic conditions
- Description: The purpose of the research is to assess the financial viability of selected urban and rural municipalities in the Eastern Cape. Municipalities that are not financially viable and sustainable will always struggle to deliver basic services to communities. Without sound financial management systems, municipalities will be forced to discontinue their operations. Municipalities, particularly small and rural ones, are not self-sufficient and often rely on grants and transfers to satisfy their immediate short-term goal of providing basic services to satisfy the needs of their communities. Therefore, finance is regarded as an overriding and decisive factor for determining the viability of municipalities. The study seeks to investigate the financial viability of selected urban and rural municipalities in the Eastern Cape. Its key research questions are: Are municipalities able to provide sufficient funds to provide a range of services at an acceptable service level? To what extent do municipalities rely on external funding? Do municipalities have revenue collection capacity and revenue policies? The study asserts that most municipalities lack the required financial resources. They depend mainly on transfers from Provincial Government and equitable share and conditional grants from National Government. Section 152 (1) of the Constitution of the Republic of South Africa, Act 8 of 1996, states, amongst other things, that Local Government should ensure the provision of services to communities in a sustainable manner. The constitution further states that a municipality must strive, within its financial and administrative capacity, to achieve its objectives. The Municipal Finance Management Act, Act 56 of 2003, creates a framework for municipalities to borrow money and determine the conditions for short- and long-term borrowing. The Act assigns clear roles and responsibilities to the various role players involved in local government financial management. According to the Act, an annual budget for a municipality may only be funded from realistically anticipated revenues to be collected. As revenue projections in the budget must be realistic, the Municipal Property Rates Act, Act 6 of 2004, facilitates the collection of revenue in municipalities and establishes a uniform property rating system across South Africa. Property tax is the biggest element of local government tax revenue and is central to municipal finance. The Municipal Systems Act, Act 32 of 2000, amongst its objectives, provides for the manner in which municipal powers and functions are exercised as well as establishes a simple framework for the core processes of planning, performance management and resource mobilisation. The Act also provides a framework for public administration and human resource development. Finally, it also empowers the poor and ensures that municipalities put in place service tariffs and credit control policies that take their needs into account. The research contends that, whilst there is legislation and structures to assist and direct municipalities, it has been established that municipalities do not properly collect rates and taxes due to them to augment their revenue. The study has shown nevertheless that metropolitan municipalities have the capacity to collect revenue for municipal services. This is confirmed by their collection rate which ranges between 94 % and 97 %. There is also the culture of non-payment by communities for services rendered by the municipalities. Rural municipalities are exempted from property tax, while other rural municipalities who have an urban component, have to collect. There is also the question of unemployment and poverty. Consequently, municipalities are not self-sufficient and rely on grants and equitable share to survive. As a result of this lack of self-sufficiency, it is difficult to implement service delivery and also difficult to attract skilled personnel. The study has investigated why some municipalities fail to collect revenue and depend on national grants. The study employed both qualitative and quantitative methods. The findings of the quantitative paradigm have been presented in the form of graphs and charts. The major findings include: All municipalities have limited borrowing capacity; have not exceeded their budgets in terms of their spending; small municipalities have households as their main contributor of revenue collected; metropolitan municipalities get the big slice of their revenue from business; small and rural municipalities rely on grants and transfers and are therefore not financially viable; metropolitan municipalities are, to a great extent, financially viable but lack skills and capacity to utilize their resources for effective service delivery; and all municipalities under-spend their budgets. The study, after elaborating on the findings, makes recommendations on how municipalities should become financially viable.
- Full Text:
- Date Issued: 2013
- Authors: Maclean, Sindisile
- Date: 2013
- Subjects: Finance, Public -- South Africa -- Eastern Cape , Municipal government -- South Africa -- Eastern Cape , Sustainable development -- South Africa -- Eastern Cape , Human services -- South Africa -- Eastern Cape , Municipal services -- South Africa -- Eastern Cape , South Africa -- Economic policy , South Africa -- Economic conditions
- Language: English
- Type: Thesis , Doctoral , PhD (in Public Administration)
- Identifier: vital:11661 , http://hdl.handle.net/10353/d1007093 , Finance, Public -- South Africa -- Eastern Cape , Municipal government -- South Africa -- Eastern Cape , Sustainable development -- South Africa -- Eastern Cape , Human services -- South Africa -- Eastern Cape , Municipal services -- South Africa -- Eastern Cape , South Africa -- Economic policy , South Africa -- Economic conditions
- Description: The purpose of the research is to assess the financial viability of selected urban and rural municipalities in the Eastern Cape. Municipalities that are not financially viable and sustainable will always struggle to deliver basic services to communities. Without sound financial management systems, municipalities will be forced to discontinue their operations. Municipalities, particularly small and rural ones, are not self-sufficient and often rely on grants and transfers to satisfy their immediate short-term goal of providing basic services to satisfy the needs of their communities. Therefore, finance is regarded as an overriding and decisive factor for determining the viability of municipalities. The study seeks to investigate the financial viability of selected urban and rural municipalities in the Eastern Cape. Its key research questions are: Are municipalities able to provide sufficient funds to provide a range of services at an acceptable service level? To what extent do municipalities rely on external funding? Do municipalities have revenue collection capacity and revenue policies? The study asserts that most municipalities lack the required financial resources. They depend mainly on transfers from Provincial Government and equitable share and conditional grants from National Government. Section 152 (1) of the Constitution of the Republic of South Africa, Act 8 of 1996, states, amongst other things, that Local Government should ensure the provision of services to communities in a sustainable manner. The constitution further states that a municipality must strive, within its financial and administrative capacity, to achieve its objectives. The Municipal Finance Management Act, Act 56 of 2003, creates a framework for municipalities to borrow money and determine the conditions for short- and long-term borrowing. The Act assigns clear roles and responsibilities to the various role players involved in local government financial management. According to the Act, an annual budget for a municipality may only be funded from realistically anticipated revenues to be collected. As revenue projections in the budget must be realistic, the Municipal Property Rates Act, Act 6 of 2004, facilitates the collection of revenue in municipalities and establishes a uniform property rating system across South Africa. Property tax is the biggest element of local government tax revenue and is central to municipal finance. The Municipal Systems Act, Act 32 of 2000, amongst its objectives, provides for the manner in which municipal powers and functions are exercised as well as establishes a simple framework for the core processes of planning, performance management and resource mobilisation. The Act also provides a framework for public administration and human resource development. Finally, it also empowers the poor and ensures that municipalities put in place service tariffs and credit control policies that take their needs into account. The research contends that, whilst there is legislation and structures to assist and direct municipalities, it has been established that municipalities do not properly collect rates and taxes due to them to augment their revenue. The study has shown nevertheless that metropolitan municipalities have the capacity to collect revenue for municipal services. This is confirmed by their collection rate which ranges between 94 % and 97 %. There is also the culture of non-payment by communities for services rendered by the municipalities. Rural municipalities are exempted from property tax, while other rural municipalities who have an urban component, have to collect. There is also the question of unemployment and poverty. Consequently, municipalities are not self-sufficient and rely on grants and equitable share to survive. As a result of this lack of self-sufficiency, it is difficult to implement service delivery and also difficult to attract skilled personnel. The study has investigated why some municipalities fail to collect revenue and depend on national grants. The study employed both qualitative and quantitative methods. The findings of the quantitative paradigm have been presented in the form of graphs and charts. The major findings include: All municipalities have limited borrowing capacity; have not exceeded their budgets in terms of their spending; small municipalities have households as their main contributor of revenue collected; metropolitan municipalities get the big slice of their revenue from business; small and rural municipalities rely on grants and transfers and are therefore not financially viable; metropolitan municipalities are, to a great extent, financially viable but lack skills and capacity to utilize their resources for effective service delivery; and all municipalities under-spend their budgets. The study, after elaborating on the findings, makes recommendations on how municipalities should become financially viable.
- Full Text:
- Date Issued: 2013
Central Bank policy and the exchange rate under an inflation targeting regime: a case dtudy of South Africa
- Authors: Gonzo, Prosper
- Date: 2013
- Subjects: Foreign exchange rates -- Government policy -- South Africa , Inflation (Finance) -- South Africa , Monetary policy -- South Africa , Banks and banking, Central -- South Africa , South Africa -- Economic conditions , Banking industry -- Finance -- South Africa
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11476 , http://hdl.handle.net/10353/d1015043 , Foreign exchange rates -- Government policy -- South Africa , Inflation (Finance) -- South Africa , Monetary policy -- South Africa , Banks and banking, Central -- South Africa , South Africa -- Economic conditions , Banking industry -- Finance -- South Africa
- Description: This work examined the optimality of the inclusion of the exchange rate in the reaction function of the Central Bank in an inflation targeting framework. The study attempts to answer the question whether the exchange rate should have an independent role in an open economy Taylor-type rule. To this end, a Taylor-type rule is incorporating the exchange rate is estimated by the cointegration and vector error correction modeling (VECM) using quarterly data for the period of 1995 to 2009. The empirical studies point out the importance of the exchange rates in explaining and forecasting the behaviour of the South African Reserve Bank monetary policy control variable.
- Full Text:
- Date Issued: 2013
- Authors: Gonzo, Prosper
- Date: 2013
- Subjects: Foreign exchange rates -- Government policy -- South Africa , Inflation (Finance) -- South Africa , Monetary policy -- South Africa , Banks and banking, Central -- South Africa , South Africa -- Economic conditions , Banking industry -- Finance -- South Africa
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11476 , http://hdl.handle.net/10353/d1015043 , Foreign exchange rates -- Government policy -- South Africa , Inflation (Finance) -- South Africa , Monetary policy -- South Africa , Banks and banking, Central -- South Africa , South Africa -- Economic conditions , Banking industry -- Finance -- South Africa
- Description: This work examined the optimality of the inclusion of the exchange rate in the reaction function of the Central Bank in an inflation targeting framework. The study attempts to answer the question whether the exchange rate should have an independent role in an open economy Taylor-type rule. To this end, a Taylor-type rule is incorporating the exchange rate is estimated by the cointegration and vector error correction modeling (VECM) using quarterly data for the period of 1995 to 2009. The empirical studies point out the importance of the exchange rates in explaining and forecasting the behaviour of the South African Reserve Bank monetary policy control variable.
- Full Text:
- Date Issued: 2013
Development of the South African monetary banking sector and money market
- Authors: Patel, Aadil Suleman
- Date: 2005
- Subjects: South African Reserve Bank , Banks and banking -- South Africa , Money market -- South Africa , Economic development -- South Africa , Monetary policy -- South Africa , South Africa -- Economic conditions , Financial institutions -- South Africa , Money -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:997 , http://hdl.handle.net/10962/d1002732 , South African Reserve Bank , Banks and banking -- South Africa , Money market -- South Africa , Economic development -- South Africa , Monetary policy -- South Africa , South Africa -- Economic conditions , Financial institutions -- South Africa , Money -- South Africa
- Description: This thesis presents a theoretical analysis of developments in the South African monetary banking sector and money market. In the first section, evolution of the political, social and economic environments over the past few decades are discussed to provide the reader with an idea of some factors responsible for the underdeveloped nature of this market. It has been argued that the domestic political and economic landscape is relatively stable. Nevertheless, factors such as Zimbabwe’s political and ensuing economic turmoil, coupled with numerous financial crises in other developing nations have had negative consequences on domestic financial market development and economic growth. The current state of monetary policy is also analysed, within the economic environment, and various policy considerations have been put forth concerning the inflation targeting policy. The thesis then goes on to scrutinise the statutory and institutional environments within which the monetary banking institutions operate. Recent changes in the regulations governing the operations of these institutions are identified, together with the consequences of such laws on banking institutions and possible amendments have been suggested. In particular, a system of Asset Based Reserve Requirements (ABRR) has been recommended, in place of the current cash reserve requirement, to ensure regulators create a level playing field in the financial sector. The system can also provide authorities with the necessary control required to direct funds to the most desirable sectors of the economy. Development of the interbank market and the effect of reduced banking competition on the efficacy of the South African Reserve Bank’s refinancing operations and inflation targeting policy are also considered. Finally, the thesis analyses some effects of financial development on the South African economy, and whether it is in the best interests of the country to pursue financial reforms with such vigour. While financial development may bring South Africa closer to international standards of best practice, the timing and extent of the reforms will be critical to guarantee success.
- Full Text:
- Date Issued: 2005
- Authors: Patel, Aadil Suleman
- Date: 2005
- Subjects: South African Reserve Bank , Banks and banking -- South Africa , Money market -- South Africa , Economic development -- South Africa , Monetary policy -- South Africa , South Africa -- Economic conditions , Financial institutions -- South Africa , Money -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:997 , http://hdl.handle.net/10962/d1002732 , South African Reserve Bank , Banks and banking -- South Africa , Money market -- South Africa , Economic development -- South Africa , Monetary policy -- South Africa , South Africa -- Economic conditions , Financial institutions -- South Africa , Money -- South Africa
- Description: This thesis presents a theoretical analysis of developments in the South African monetary banking sector and money market. In the first section, evolution of the political, social and economic environments over the past few decades are discussed to provide the reader with an idea of some factors responsible for the underdeveloped nature of this market. It has been argued that the domestic political and economic landscape is relatively stable. Nevertheless, factors such as Zimbabwe’s political and ensuing economic turmoil, coupled with numerous financial crises in other developing nations have had negative consequences on domestic financial market development and economic growth. The current state of monetary policy is also analysed, within the economic environment, and various policy considerations have been put forth concerning the inflation targeting policy. The thesis then goes on to scrutinise the statutory and institutional environments within which the monetary banking institutions operate. Recent changes in the regulations governing the operations of these institutions are identified, together with the consequences of such laws on banking institutions and possible amendments have been suggested. In particular, a system of Asset Based Reserve Requirements (ABRR) has been recommended, in place of the current cash reserve requirement, to ensure regulators create a level playing field in the financial sector. The system can also provide authorities with the necessary control required to direct funds to the most desirable sectors of the economy. Development of the interbank market and the effect of reduced banking competition on the efficacy of the South African Reserve Bank’s refinancing operations and inflation targeting policy are also considered. Finally, the thesis analyses some effects of financial development on the South African economy, and whether it is in the best interests of the country to pursue financial reforms with such vigour. While financial development may bring South Africa closer to international standards of best practice, the timing and extent of the reforms will be critical to guarantee success.
- Full Text:
- Date Issued: 2005
Discussion document on economic policy
- Department of Economic Policy
- Authors: Department of Economic Policy
- Date: 1990-09-20-23
- Subjects: South Africa -- Economic policy , South Africa -- Economic conditions , Apartheid -- Economic aspects -- South Africa
- Language: English
- Type: text , book
- Identifier: http://hdl.handle.net/10962/66691 , vital:28982
- Description: This document has been prepared for debate within the ranks of the ANC. It does not represent an agreed policy, but rather seeks to contribute to a democratic process of formulating our movement's economic policy. The movement believes that economic policy should address itself to the demands and needs of the majority of the people, and active discussion and debate is essential if they are to have a more prominent place. The ANC has long recognised the necessity for political liberation and constitutional changes to be accompanied by socioeconomic transformation. The Freedom Charter proclaimed the necessity for the people to share in the countries wealth, for the land to be distributed to those who work it, for there to housing, security and comfort for all, and for the doors of learning and culture to opened. The constitutional guidelines also recognised the need for economic restructuring to be part of the process of constitutional change. , "This document has been prepared for debate within the ranks of the ANC". -- Introduction , "DEP workshop, Harare, 20-23 September 1990."
- Full Text:
- Date Issued: 1990-09-20-23
- Authors: Department of Economic Policy
- Date: 1990-09-20-23
- Subjects: South Africa -- Economic policy , South Africa -- Economic conditions , Apartheid -- Economic aspects -- South Africa
- Language: English
- Type: text , book
- Identifier: http://hdl.handle.net/10962/66691 , vital:28982
- Description: This document has been prepared for debate within the ranks of the ANC. It does not represent an agreed policy, but rather seeks to contribute to a democratic process of formulating our movement's economic policy. The movement believes that economic policy should address itself to the demands and needs of the majority of the people, and active discussion and debate is essential if they are to have a more prominent place. The ANC has long recognised the necessity for political liberation and constitutional changes to be accompanied by socioeconomic transformation. The Freedom Charter proclaimed the necessity for the people to share in the countries wealth, for the land to be distributed to those who work it, for there to housing, security and comfort for all, and for the doors of learning and culture to opened. The constitutional guidelines also recognised the need for economic restructuring to be part of the process of constitutional change. , "This document has been prepared for debate within the ranks of the ANC". -- Introduction , "DEP workshop, Harare, 20-23 September 1990."
- Full Text:
- Date Issued: 1990-09-20-23
Exchange rates and economic growth in emerging economies: the case of South Africa
- Authors: Sibanda, Bornapart
- Date: 2012
- Subjects: Economic development , Currency convertibility -- South Africa , Foreign exchange -- South Africa , Foreign exchange rates -- South Africa , Foreign exchange administration -- South Africa , South Africa -- Economic conditions
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11464 , http://hdl.handle.net/10353/d1007045 , Economic development , Currency convertibility -- South Africa , Foreign exchange -- South Africa , Foreign exchange rates -- South Africa , Foreign exchange administration -- South Africa , South Africa -- Economic conditions
- Description: This study examines the impact of exchange rate volatility and misalignment on economic growth in South Africa. It applies the Johansen co integration test and the vector error correction model on quarterly data for the period 1990:01-2010:04. Exchange rate volatility is measured as the standard deviation of both the nominal and nominal effective exchange rate. The study constructs three measures of exchange rate misalignment, with two of the measures constructed using the Producer Price Index and Consumer Price index based Purchasing Power Parity. The third measure was based on the difference between the nominal and effective exchange rate. Contrary to pre-dominant findings in the exchange rate literature, the study finds a positive and significant relationship between exchange rate volatility and economic growth and attributes it to composition of the country’s exports that are largely made up of commodities that act as essential inputs in many production processes. As a result, the variability of prices caused by exchange rate volatility is not expected to deter demand for these commodities. A negative and significant relationship between exchange rate misalignment and economic growth was found. The findings of the study show that it is important for monetary authorities to ensure that the exchange rate is always at an appropriate level in order to avoid the negative implications of exchange rate misalignment on economic growth.
- Full Text:
- Date Issued: 2012
- Authors: Sibanda, Bornapart
- Date: 2012
- Subjects: Economic development , Currency convertibility -- South Africa , Foreign exchange -- South Africa , Foreign exchange rates -- South Africa , Foreign exchange administration -- South Africa , South Africa -- Economic conditions
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11464 , http://hdl.handle.net/10353/d1007045 , Economic development , Currency convertibility -- South Africa , Foreign exchange -- South Africa , Foreign exchange rates -- South Africa , Foreign exchange administration -- South Africa , South Africa -- Economic conditions
- Description: This study examines the impact of exchange rate volatility and misalignment on economic growth in South Africa. It applies the Johansen co integration test and the vector error correction model on quarterly data for the period 1990:01-2010:04. Exchange rate volatility is measured as the standard deviation of both the nominal and nominal effective exchange rate. The study constructs three measures of exchange rate misalignment, with two of the measures constructed using the Producer Price Index and Consumer Price index based Purchasing Power Parity. The third measure was based on the difference between the nominal and effective exchange rate. Contrary to pre-dominant findings in the exchange rate literature, the study finds a positive and significant relationship between exchange rate volatility and economic growth and attributes it to composition of the country’s exports that are largely made up of commodities that act as essential inputs in many production processes. As a result, the variability of prices caused by exchange rate volatility is not expected to deter demand for these commodities. A negative and significant relationship between exchange rate misalignment and economic growth was found. The findings of the study show that it is important for monetary authorities to ensure that the exchange rate is always at an appropriate level in order to avoid the negative implications of exchange rate misalignment on economic growth.
- Full Text:
- Date Issued: 2012
Forecasting volatility on the rand foreign exchange market
- Authors: Klaas, Sinoxolo
- Date: 2015
- Subjects: Foreign exchange rates -- South Africa , Foreign exchange administration , South Africa -- Economic conditions
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/7892 , vital:24319
- Description: Exchange rates are one of the most essential determinants of a country's economic performance in terms of level of trade. Since the exchange rate is one of the best indicators of competitiveness, this study sought to examine the behaviour of the rand against other emerging countries in the South African exchange market. The study explored the trends and estimated the forecasting accuracy of six currency markets using ARCH-family and Random walk models over the period 1994 to 2013.The six currency markets examined were the Rand/Dollar, Rand/Pound, Rand/Euro, Rand/Yen and Rand/Pula. The Rand exchange rates did exhibit the characteristics of volatility clustering and asymmetric effects suggesting volatility of the Rand. Exchange rates tend to rise when there is more bad news in the financial market than good news and positive shocks imply a higher next period conditional variance than negative shocks of the same sign.
- Full Text:
- Date Issued: 2015
- Authors: Klaas, Sinoxolo
- Date: 2015
- Subjects: Foreign exchange rates -- South Africa , Foreign exchange administration , South Africa -- Economic conditions
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/7892 , vital:24319
- Description: Exchange rates are one of the most essential determinants of a country's economic performance in terms of level of trade. Since the exchange rate is one of the best indicators of competitiveness, this study sought to examine the behaviour of the rand against other emerging countries in the South African exchange market. The study explored the trends and estimated the forecasting accuracy of six currency markets using ARCH-family and Random walk models over the period 1994 to 2013.The six currency markets examined were the Rand/Dollar, Rand/Pound, Rand/Euro, Rand/Yen and Rand/Pula. The Rand exchange rates did exhibit the characteristics of volatility clustering and asymmetric effects suggesting volatility of the Rand. Exchange rates tend to rise when there is more bad news in the financial market than good news and positive shocks imply a higher next period conditional variance than negative shocks of the same sign.
- Full Text:
- Date Issued: 2015
Foreign direct investment and socio-economic development : the South African example
- Authors: Mukosera, Precious Sipho
- Date: 2013
- Subjects: Investments, Foreign -- South Africa , Investments, Foreign -- Government policy -- South Africa , South Africa -- Economic policy , South Africa -- Economic conditions
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:9142 , http://hdl.handle.net/10948/d1018760
- Description: It is widely accepted by governments of many developing countries that Foreign Direct Investment (FDI) is crucial to the socio-economic development of their nations and have developed various policies in an effort to attract FDI, as a result. FDI is a crucial source of technology, capital and skills for developing countries for economic growth that may ultimately lead to poverty reduction, employment creation and modernisation. However, results from many studies have been inconclusive and have failed to find a direct link between the increase of FDI and the associated socio-economic development of recipient nations. South Africa is no exception to this debate as it seeks to turn its back on decades long apartheid, which has entrenched poverty in the majority of its population and exacerbated social tensions. The main socio-economic challenges that South Africa faces include high unemployment, skills shortages, poverty and high inequality, and the 2008/2009 global financial and economic crisis has exacerbated the crisis. Despite these challenges South Africa‘s macro-economic strategies have had a good reputation since 2000. The monetary policy has turned out to be more transparent and predictable, and a sound fiscal policy has sustained its framework. The study analyses the role that FDI plays in the socio-economic development of South Africa since 1995 by focusing on selected case studies: ABSA Bank, General Motors South Africa (GMSA) and the Mining Sector of South Africa. The research concludes that although ABSA Bank has implemented several corporate social responsibility (CSR), and various employee development programmes, there is hardly any evidence to suggest that Barclays Bank‘s takeover of ABSA Bank has positively impacted on these programmes. General Motors South Africa (GMSA), which came into South Africa many decades ago through a Greenfield Investment, has played a positive role in the economy of the Eastern Cape Province as well as that of South Africa, having created jobs directly and indirectly. The company has also designed and implemented various educational, housing as well as health and awareness programmes for its employees and for the communities. Mining companies that operate in South Africa formed partnerships in the communities in which they operate in an effort to improve the lives of people. While these various projects have been a source of employment, they have had a limited impact on the core causes of social problems surrounding the mines. Many of these root causes relate to core business practices of the mining companies, especially employee recruitment, wages and housing. These root causes where witnessed in the Lonmin tragedy and in other strikes that spread throughout the sector in 2012. The study concludes that although FDI does play a role in the socio-economic development of South Africa, especially Greenfield investment, the same argument could not be made on Mergers and acquisitions (M&As). Finally, the South African government needs to play a proactive role in ensuring that foreign companies that invest in the country need to be well aware of the socio-economic needs of South Africa, and be willing to play a positive role in that regard.
- Full Text:
- Date Issued: 2013
- Authors: Mukosera, Precious Sipho
- Date: 2013
- Subjects: Investments, Foreign -- South Africa , Investments, Foreign -- Government policy -- South Africa , South Africa -- Economic policy , South Africa -- Economic conditions
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:9142 , http://hdl.handle.net/10948/d1018760
- Description: It is widely accepted by governments of many developing countries that Foreign Direct Investment (FDI) is crucial to the socio-economic development of their nations and have developed various policies in an effort to attract FDI, as a result. FDI is a crucial source of technology, capital and skills for developing countries for economic growth that may ultimately lead to poverty reduction, employment creation and modernisation. However, results from many studies have been inconclusive and have failed to find a direct link between the increase of FDI and the associated socio-economic development of recipient nations. South Africa is no exception to this debate as it seeks to turn its back on decades long apartheid, which has entrenched poverty in the majority of its population and exacerbated social tensions. The main socio-economic challenges that South Africa faces include high unemployment, skills shortages, poverty and high inequality, and the 2008/2009 global financial and economic crisis has exacerbated the crisis. Despite these challenges South Africa‘s macro-economic strategies have had a good reputation since 2000. The monetary policy has turned out to be more transparent and predictable, and a sound fiscal policy has sustained its framework. The study analyses the role that FDI plays in the socio-economic development of South Africa since 1995 by focusing on selected case studies: ABSA Bank, General Motors South Africa (GMSA) and the Mining Sector of South Africa. The research concludes that although ABSA Bank has implemented several corporate social responsibility (CSR), and various employee development programmes, there is hardly any evidence to suggest that Barclays Bank‘s takeover of ABSA Bank has positively impacted on these programmes. General Motors South Africa (GMSA), which came into South Africa many decades ago through a Greenfield Investment, has played a positive role in the economy of the Eastern Cape Province as well as that of South Africa, having created jobs directly and indirectly. The company has also designed and implemented various educational, housing as well as health and awareness programmes for its employees and for the communities. Mining companies that operate in South Africa formed partnerships in the communities in which they operate in an effort to improve the lives of people. While these various projects have been a source of employment, they have had a limited impact on the core causes of social problems surrounding the mines. Many of these root causes relate to core business practices of the mining companies, especially employee recruitment, wages and housing. These root causes where witnessed in the Lonmin tragedy and in other strikes that spread throughout the sector in 2012. The study concludes that although FDI does play a role in the socio-economic development of South Africa, especially Greenfield investment, the same argument could not be made on Mergers and acquisitions (M&As). Finally, the South African government needs to play a proactive role in ensuring that foreign companies that invest in the country need to be well aware of the socio-economic needs of South Africa, and be willing to play a positive role in that regard.
- Full Text:
- Date Issued: 2013
Impact of human dimensions on smallholder farming in the Eastern Cape Province of South Africa
- Authors: Kibirige, Douglas
- Date: 2013
- Subjects: Farms, Small -- South Africa -- Eastern Cape , Agriculture -- Economic aspects -- South Africa , Rural development -- South Africa -- Eastern Cape , Community development -- South Africa -- Eastern Cape , Entrepreneurship -- South Africa -- Eastern Cape , South Africa -- Social conditions , South Africa -- Economic conditions , DEA approach , Stochastic production frontier , Production efficiency , Human dimensions , Irrigation
- Language: English
- Type: Thesis , Doctoral , PhD (Agricultural Economics)
- Identifier: vital:11201 , http://hdl.handle.net/10353/d1007532 , Farms, Small -- South Africa -- Eastern Cape , Agriculture -- Economic aspects -- South Africa , Rural development -- South Africa -- Eastern Cape , Community development -- South Africa -- Eastern Cape , Entrepreneurship -- South Africa -- Eastern Cape , South Africa -- Social conditions , South Africa -- Economic conditions , DEA approach , Stochastic production frontier , Production efficiency , Human dimensions , Irrigation
- Description: Considering the backward and forward linkages, the agro-industrial sector contributes about 12 percent of South Africa‘s GDP, and employs approximately 8.5 million people. In the Eastern Cape Province, the sector contributes about 1.9 percent of the Provincial GDP, and over 3 million people derive their livelihoods from subsistence smallholder farming. Despite its importance, agricultural productivity has stagnated for several years across the Eastern Cape rural communities. There have been several attempts by the government to improve the agricultural productivity on smallholder farms since the end of apartheid, especially through the establishment of small-scale irrigation schemes, subsidization of farm inputs, and provision of credit facilities and enacting a number of land reform policies. In spite of the government support, most rural communities like Qamata and Tyefu are still faced with high levels of poverty affecting 76 percent and 91 percent of the population, respectively. This research evaluated the current smallholders‘ production efficiency, and the link between smallholder farmers‘ human dimensions (entrepreneurial spirit and positive psychological capital, goals and social capital, and other efficiency related variables) with production efficiency and household commercialisation index/level. The study used participatory approaches for site selection, sample selection and data collection. The analysis was based on both information from informal interviews and formal primary data collection. The Data Envelopment Analysis and Stochastic Production Frontier techniques were used to determine the relative efficiencies of individual farmers and to identify the major factors that influence the efficiency of production. Overall, 158 farmers were interviewed both at Qamata and Tyefu irrigation schemes. Descriptive statistics of this study indicated that most of the farmers were men with an average age of 61 years, and mean household size of 4 persons with the household head having at least obtained some primary school education. Farming is the major source of livelihood for smallholders with an average income of R4527.49 per crop season. Smallholders use improved seeds, fertilizers and tractor for ploughing with less use of pesticides and herbicides. Although smallholder irrigators generate more gross margins from maize and cabbage enterprises, generally both categories of farmers exhibited a low average household commercialization index for maize and cabbage at 0.41 and 0.22, respectively. Both Data Envelopment Analysis and Stochastic Production Frontier results indicate that farmers are about 98 percent technically efficient in maize and cabbage enterprises, respectively. However, farmers were allocatively inefficient as they were under-utilizing seed and pesticides while over-utilizing inorganic fertilizers. Factors that are positively associated with technical efficiency in maize production included household size, farming experience, off-farm income, use of agro-chemical; gross margins and commercialisation level of maize output. Determinants of technical efficiency in cabbage enterprise included farming experience, amount of land owned, use of agro-chemicals, group membership and gross margins accrued to cabbage sales. Farmers‘ human dimensions that could be more positively and significantly associated with production, efficiency and household commercialisation level included risk taking (hope), innovativeness (confidence) and optimism for entrepreneurial/positive psychological capital. Farmers‘ goals included self-esteem and independence, and only external social capital which were identified to be more positively and significantly associated with farmers‘ production efficiency and commercialization level. The transition from homestead subsistence to commercial oriented small-scale irrigation farming is inevitable since smallholder irrigators earn more incomes from maize and cabbage and are relatively food secure. However, the key policy options that must be considered to address inefficiencies and improved commercialization level to aid the transition include: agricultural policies geared toward attracting youth in farming, improved quality of extension services, speeding up the land reform process, and formation of cooperatives and participatory policy formulation that takes full cognizance of the farmers‘ human dimensions. Since farmers‘ human dimensions as defined in the literature and this study are not things that are amenable to direct policy intervention, they can only be modified indirectly through policy actions that affect their determinants. This means that a number of the demographic and socio-economic characteristics such as age, sex and education level of household head, farming experience, size of land owned, crop incomes, source of water for irrigation and location of the irrigation scheme that govern the way people perceive reality and respond to them must be the focus of concerted policy actions over the medium to long term.
- Full Text:
- Date Issued: 2013
- Authors: Kibirige, Douglas
- Date: 2013
- Subjects: Farms, Small -- South Africa -- Eastern Cape , Agriculture -- Economic aspects -- South Africa , Rural development -- South Africa -- Eastern Cape , Community development -- South Africa -- Eastern Cape , Entrepreneurship -- South Africa -- Eastern Cape , South Africa -- Social conditions , South Africa -- Economic conditions , DEA approach , Stochastic production frontier , Production efficiency , Human dimensions , Irrigation
- Language: English
- Type: Thesis , Doctoral , PhD (Agricultural Economics)
- Identifier: vital:11201 , http://hdl.handle.net/10353/d1007532 , Farms, Small -- South Africa -- Eastern Cape , Agriculture -- Economic aspects -- South Africa , Rural development -- South Africa -- Eastern Cape , Community development -- South Africa -- Eastern Cape , Entrepreneurship -- South Africa -- Eastern Cape , South Africa -- Social conditions , South Africa -- Economic conditions , DEA approach , Stochastic production frontier , Production efficiency , Human dimensions , Irrigation
- Description: Considering the backward and forward linkages, the agro-industrial sector contributes about 12 percent of South Africa‘s GDP, and employs approximately 8.5 million people. In the Eastern Cape Province, the sector contributes about 1.9 percent of the Provincial GDP, and over 3 million people derive their livelihoods from subsistence smallholder farming. Despite its importance, agricultural productivity has stagnated for several years across the Eastern Cape rural communities. There have been several attempts by the government to improve the agricultural productivity on smallholder farms since the end of apartheid, especially through the establishment of small-scale irrigation schemes, subsidization of farm inputs, and provision of credit facilities and enacting a number of land reform policies. In spite of the government support, most rural communities like Qamata and Tyefu are still faced with high levels of poverty affecting 76 percent and 91 percent of the population, respectively. This research evaluated the current smallholders‘ production efficiency, and the link between smallholder farmers‘ human dimensions (entrepreneurial spirit and positive psychological capital, goals and social capital, and other efficiency related variables) with production efficiency and household commercialisation index/level. The study used participatory approaches for site selection, sample selection and data collection. The analysis was based on both information from informal interviews and formal primary data collection. The Data Envelopment Analysis and Stochastic Production Frontier techniques were used to determine the relative efficiencies of individual farmers and to identify the major factors that influence the efficiency of production. Overall, 158 farmers were interviewed both at Qamata and Tyefu irrigation schemes. Descriptive statistics of this study indicated that most of the farmers were men with an average age of 61 years, and mean household size of 4 persons with the household head having at least obtained some primary school education. Farming is the major source of livelihood for smallholders with an average income of R4527.49 per crop season. Smallholders use improved seeds, fertilizers and tractor for ploughing with less use of pesticides and herbicides. Although smallholder irrigators generate more gross margins from maize and cabbage enterprises, generally both categories of farmers exhibited a low average household commercialization index for maize and cabbage at 0.41 and 0.22, respectively. Both Data Envelopment Analysis and Stochastic Production Frontier results indicate that farmers are about 98 percent technically efficient in maize and cabbage enterprises, respectively. However, farmers were allocatively inefficient as they were under-utilizing seed and pesticides while over-utilizing inorganic fertilizers. Factors that are positively associated with technical efficiency in maize production included household size, farming experience, off-farm income, use of agro-chemical; gross margins and commercialisation level of maize output. Determinants of technical efficiency in cabbage enterprise included farming experience, amount of land owned, use of agro-chemicals, group membership and gross margins accrued to cabbage sales. Farmers‘ human dimensions that could be more positively and significantly associated with production, efficiency and household commercialisation level included risk taking (hope), innovativeness (confidence) and optimism for entrepreneurial/positive psychological capital. Farmers‘ goals included self-esteem and independence, and only external social capital which were identified to be more positively and significantly associated with farmers‘ production efficiency and commercialization level. The transition from homestead subsistence to commercial oriented small-scale irrigation farming is inevitable since smallholder irrigators earn more incomes from maize and cabbage and are relatively food secure. However, the key policy options that must be considered to address inefficiencies and improved commercialization level to aid the transition include: agricultural policies geared toward attracting youth in farming, improved quality of extension services, speeding up the land reform process, and formation of cooperatives and participatory policy formulation that takes full cognizance of the farmers‘ human dimensions. Since farmers‘ human dimensions as defined in the literature and this study are not things that are amenable to direct policy intervention, they can only be modified indirectly through policy actions that affect their determinants. This means that a number of the demographic and socio-economic characteristics such as age, sex and education level of household head, farming experience, size of land owned, crop incomes, source of water for irrigation and location of the irrigation scheme that govern the way people perceive reality and respond to them must be the focus of concerted policy actions over the medium to long term.
- Full Text:
- Date Issued: 2013
Interest rate behaviour in a more transparent South African monetary policy environment
- Authors: Ballim, Goolam Hoosen
- Date: 2005
- Subjects: South African Reserve Bank , Monetary policy -- South Africa , Banks and banking -- South Africa , Interest rates -- South Africa , South Africa -- Economic policy , South Africa -- Economic conditions
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1034 , http://hdl.handle.net/10962/d1004462 , South African Reserve Bank , Monetary policy -- South Africa , Banks and banking -- South Africa , Interest rates -- South Africa , South Africa -- Economic policy , South Africa -- Economic conditions
- Description: South Africa introduced inflation targeting as a monetary policy framework in 2000. This marked a sizable shift in monetary policy management from the previous "eclectic" approach and the explicit focus on M3 money supply before that. The study appraises the effectiveness of monetary policy under this new dispensation. However, the analysis does not centre on inflation outcomes, which can be a measure of effectiveness because they are the overriding objective of the South African Reserve Bank in effect, it is possible to have a target-friendly inflation rate for a length of time despite monetary policy that is ambiguous and encourages unpredictability in market interest rates. However, persistent policy opaqueness can, over time, damage a favourable inflation scenario. For instance, if the public is unsure about the Reserve Bank's desired inflation target, price setting in the wage and goods markets may eventually produce an inflation outcome that is higher than the Bank may have intended. Rather, this study adjudicates the effectiveness of monetary policy within the context of policy transparency, which is an intrinsic part of the inflation targeting framework. The study looks at the extent to which monetary policy transparency has enhanced both the anticipatory nature of the market's response to policy actions and the force that policy has on all interest rates in the financial system, particularly long-term rates. These concepts are important because through the transmission mechanism of monetary policy, the more deft market participants are at anticipating future Reserve Bank policy the greater the Bank's ability to steady the economy before the actual policy event. With the aid of regression models to estimate the response of market rates to policy changes, the results show that there is significant movement in market rates in anticipation of policy action, rather than on the day of the event or the day after. Indeed, the estimates for market rates movement on the day of and even the day after the policy action are generally minute. For instance, the R157 long-term government bond yield changes by a significant 41 basis points in response to a one percentage point change in the Reserve Bank's benchmark repo rate in the period between the last policy action and the day preceding the current action. In contrast, the R157 bond yield changes by an insignificant 2 basis points on the day of the current repo rate change and about 1 basis point the day after the current change. The results point to a robust relationship between policy transparency and the market's ability to foresee rate action. If this were not the case, it is likely that there would be persistent market surprise and, hence, noticeable movement in interest rates on the day of the rate action and perhaps even the day after. Another important observation is that monetary policy impacts significantly on both short- and long-term market rates. Again, certifying the robustness of monetary policy under the inflation targeting regime
- Full Text:
- Date Issued: 2005
- Authors: Ballim, Goolam Hoosen
- Date: 2005
- Subjects: South African Reserve Bank , Monetary policy -- South Africa , Banks and banking -- South Africa , Interest rates -- South Africa , South Africa -- Economic policy , South Africa -- Economic conditions
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1034 , http://hdl.handle.net/10962/d1004462 , South African Reserve Bank , Monetary policy -- South Africa , Banks and banking -- South Africa , Interest rates -- South Africa , South Africa -- Economic policy , South Africa -- Economic conditions
- Description: South Africa introduced inflation targeting as a monetary policy framework in 2000. This marked a sizable shift in monetary policy management from the previous "eclectic" approach and the explicit focus on M3 money supply before that. The study appraises the effectiveness of monetary policy under this new dispensation. However, the analysis does not centre on inflation outcomes, which can be a measure of effectiveness because they are the overriding objective of the South African Reserve Bank in effect, it is possible to have a target-friendly inflation rate for a length of time despite monetary policy that is ambiguous and encourages unpredictability in market interest rates. However, persistent policy opaqueness can, over time, damage a favourable inflation scenario. For instance, if the public is unsure about the Reserve Bank's desired inflation target, price setting in the wage and goods markets may eventually produce an inflation outcome that is higher than the Bank may have intended. Rather, this study adjudicates the effectiveness of monetary policy within the context of policy transparency, which is an intrinsic part of the inflation targeting framework. The study looks at the extent to which monetary policy transparency has enhanced both the anticipatory nature of the market's response to policy actions and the force that policy has on all interest rates in the financial system, particularly long-term rates. These concepts are important because through the transmission mechanism of monetary policy, the more deft market participants are at anticipating future Reserve Bank policy the greater the Bank's ability to steady the economy before the actual policy event. With the aid of regression models to estimate the response of market rates to policy changes, the results show that there is significant movement in market rates in anticipation of policy action, rather than on the day of the event or the day after. Indeed, the estimates for market rates movement on the day of and even the day after the policy action are generally minute. For instance, the R157 long-term government bond yield changes by a significant 41 basis points in response to a one percentage point change in the Reserve Bank's benchmark repo rate in the period between the last policy action and the day preceding the current action. In contrast, the R157 bond yield changes by an insignificant 2 basis points on the day of the current repo rate change and about 1 basis point the day after the current change. The results point to a robust relationship between policy transparency and the market's ability to foresee rate action. If this were not the case, it is likely that there would be persistent market surprise and, hence, noticeable movement in interest rates on the day of the rate action and perhaps even the day after. Another important observation is that monetary policy impacts significantly on both short- and long-term market rates. Again, certifying the robustness of monetary policy under the inflation targeting regime
- Full Text:
- Date Issued: 2005
Monetary policy transmission in South Africa: a comparative analysis of credit and exchange rate channels
- Authors: Sebitso, Nathaniel Maemu
- Date: 2011
- Subjects: Monetary policy -- South Africa , Foreign exchange market -- South Africa , Financial crises -- South Africa , South Africa -- Economic conditions , South Africa -- Economic policy , Banks and banking -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1129 , http://hdl.handle.net/10962/d1020851
- Description: This thesis focuses on monetary policy transmission and particularly seeks to examine the impact of credit and exchange rate channels of monetary policy transmission in the South African economy. South Africa's monetary policy has gone through several changes over the past thirty years. In this respect, there is a need for robust empirical evidence on the effects of these channels on inflation and output. The thesis employs a structural vector autoregressive (SVAR) model to identify monetary transmission in South Africa for the period 1994:q4 - 2008:q2. The form of the SVAR used in this thesis is based on the fact that South Africa is a small open economy, which means that external shocks are an important driver of domestic activity. The impulse responses and variance decomposition results show that the repo rate, credit and exchange rate play a role in terms of their impact on inflation and output. The dynamic responses to the identified monetary policy shock are consistent with standard theory and highlight the importance of the interest rate channel. A shock to the interest rate, increasing it by one standard deviation, results in a persistent fall in credit. The response of output is immediate as it falls and bottoms out within the second year. Inflation shows a lagged response, it is positive within the first year as the exchange rate depreciates but in subsequent quarters inflation responds negatively as expected. Inflation falls and reaches a minimum by approximately eight quarters then moves towards baseline. The exchange rate shows delayed appreciation. The shock to the repo interest rate leads to an immediate depreciation of the exchange rate in the first two quarters as output declines, followed by an appreciation in the third and sixth quarter. Due to larger error bounds the impact of the repo rate on the exchange rate could be less effective within the first two years. The impulse responses suggest that monetary policy plays an effective role in stabilising the economy in response to a credit shock, notwithstanding large standard error bounds. Hence, the monetary authority reacts by increasing the repo rate as a result of inflation. The impact of credit on output is positive but is offset to some extent by the rising repo rate. In response to the rand appreciation, the monetary authority reduces the repo rate significantly during the first year with the maximum impact in the second year and then returns to baseline thereafter. Therefore the monetary authority reduces the repo rate, probably to stabilise falling inflation. The result shows that inflation falls as a result of the rand appreciation. A shock to the exchange rate causes a rise in output, though small in magnitude, which is persistent but reaches baseline at the end of the period. This result could reflect the effects of the resultant fall in the repo rate and a persistent rise in credit over the whole period, which tends to increase output. The exchange rate shows an obvious and stronger immediate impact on inflation compared to credit impact on inflation. However, the credit shock has an obvious and stronger impact on output compared to an exchange rate impact on output. However, the large standard error bounds may imply that credit and exchange rate channels are not as effective in the short run. It is important to note that the results are based on the SVAR model estimated with percentage growth rate of the variables. The variance decomposition result is in line with the impulse responses and shows that the exchange rate and credit channels could be important transmission channels in South Africa over the chosen sample period. The exchange rate and credit shocks show a stronger effect on inflation than on output, looking at both the impulse responses and variance decomposition results. The reaction of the repo interest rate to the credit and exchange rate shocks comes out as expected. The repo rate increases as a result of an increase in the credit and falls as a result of the currency appreciation.
- Full Text:
- Date Issued: 2011
- Authors: Sebitso, Nathaniel Maemu
- Date: 2011
- Subjects: Monetary policy -- South Africa , Foreign exchange market -- South Africa , Financial crises -- South Africa , South Africa -- Economic conditions , South Africa -- Economic policy , Banks and banking -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1129 , http://hdl.handle.net/10962/d1020851
- Description: This thesis focuses on monetary policy transmission and particularly seeks to examine the impact of credit and exchange rate channels of monetary policy transmission in the South African economy. South Africa's monetary policy has gone through several changes over the past thirty years. In this respect, there is a need for robust empirical evidence on the effects of these channels on inflation and output. The thesis employs a structural vector autoregressive (SVAR) model to identify monetary transmission in South Africa for the period 1994:q4 - 2008:q2. The form of the SVAR used in this thesis is based on the fact that South Africa is a small open economy, which means that external shocks are an important driver of domestic activity. The impulse responses and variance decomposition results show that the repo rate, credit and exchange rate play a role in terms of their impact on inflation and output. The dynamic responses to the identified monetary policy shock are consistent with standard theory and highlight the importance of the interest rate channel. A shock to the interest rate, increasing it by one standard deviation, results in a persistent fall in credit. The response of output is immediate as it falls and bottoms out within the second year. Inflation shows a lagged response, it is positive within the first year as the exchange rate depreciates but in subsequent quarters inflation responds negatively as expected. Inflation falls and reaches a minimum by approximately eight quarters then moves towards baseline. The exchange rate shows delayed appreciation. The shock to the repo interest rate leads to an immediate depreciation of the exchange rate in the first two quarters as output declines, followed by an appreciation in the third and sixth quarter. Due to larger error bounds the impact of the repo rate on the exchange rate could be less effective within the first two years. The impulse responses suggest that monetary policy plays an effective role in stabilising the economy in response to a credit shock, notwithstanding large standard error bounds. Hence, the monetary authority reacts by increasing the repo rate as a result of inflation. The impact of credit on output is positive but is offset to some extent by the rising repo rate. In response to the rand appreciation, the monetary authority reduces the repo rate significantly during the first year with the maximum impact in the second year and then returns to baseline thereafter. Therefore the monetary authority reduces the repo rate, probably to stabilise falling inflation. The result shows that inflation falls as a result of the rand appreciation. A shock to the exchange rate causes a rise in output, though small in magnitude, which is persistent but reaches baseline at the end of the period. This result could reflect the effects of the resultant fall in the repo rate and a persistent rise in credit over the whole period, which tends to increase output. The exchange rate shows an obvious and stronger immediate impact on inflation compared to credit impact on inflation. However, the credit shock has an obvious and stronger impact on output compared to an exchange rate impact on output. However, the large standard error bounds may imply that credit and exchange rate channels are not as effective in the short run. It is important to note that the results are based on the SVAR model estimated with percentage growth rate of the variables. The variance decomposition result is in line with the impulse responses and shows that the exchange rate and credit channels could be important transmission channels in South Africa over the chosen sample period. The exchange rate and credit shocks show a stronger effect on inflation than on output, looking at both the impulse responses and variance decomposition results. The reaction of the repo interest rate to the credit and exchange rate shocks comes out as expected. The repo rate increases as a result of an increase in the credit and falls as a result of the currency appreciation.
- Full Text:
- Date Issued: 2011
RDP white paper: discussion document
- Authors: South African Government
- Date: 1994-09
- Subjects: Reconstruction and Development Programme (South Africa) , South Africa -- Politics and government -- 1994 , South Africa -- Economic policy , South Africa -- Economic conditions
- Language: English
- Type: text , book
- Identifier: http://hdl.handle.net/10962/69419 , vital:29520
- Description: My Government’s commitment to create a people-centred society of liberty binds us to the pursuit of the goals of freedom from want, freedom from hunger, freedom from deprivation, freedom from ignorance, freedom from suppression and freedom from fear. These freedoms are fundamental to the guarantee of human dignity. They will therefore constitute part of the centrepiece of what this Government will seek to achieve, the focal point on which our attention will be continuously focused. The things we have said constitute the true meaning, the justification and the purpose of the Reconstruction and Development Programme, without which it would lose all legitimacy.
- Full Text:
- Date Issued: 1994-09
- Authors: South African Government
- Date: 1994-09
- Subjects: Reconstruction and Development Programme (South Africa) , South Africa -- Politics and government -- 1994 , South Africa -- Economic policy , South Africa -- Economic conditions
- Language: English
- Type: text , book
- Identifier: http://hdl.handle.net/10962/69419 , vital:29520
- Description: My Government’s commitment to create a people-centred society of liberty binds us to the pursuit of the goals of freedom from want, freedom from hunger, freedom from deprivation, freedom from ignorance, freedom from suppression and freedom from fear. These freedoms are fundamental to the guarantee of human dignity. They will therefore constitute part of the centrepiece of what this Government will seek to achieve, the focal point on which our attention will be continuously focused. The things we have said constitute the true meaning, the justification and the purpose of the Reconstruction and Development Programme, without which it would lose all legitimacy.
- Full Text:
- Date Issued: 1994-09
Social policy and the state in South Africa: pathways for human capability development
- Authors: Monyai, Priscilla B
- Date: 2011
- Subjects: Human capital -- South Africa , Apartheid -- South Africa , Equality -- South Africa , Poverty -- South Africa , Political participation -- South Africa , South Africa -- Economic conditions , South Africa -- Social conditions
- Language: English
- Type: Thesis , Doctoral , PhD (Social Science Dev)
- Identifier: vital:11439 , http://hdl.handle.net/10353/d1007230 , Human capital -- South Africa , Apartheid -- South Africa , Equality -- South Africa , Poverty -- South Africa , Political participation -- South Africa , South Africa -- Economic conditions , South Africa -- Social conditions
- Description: The main focus of this thesis is the challenges that are facing social policy development and implementation in South Africa in relation to the enhancement of human capability. The study adopted a historical approach to assess the model of social policy in South Africa and identified that social relations of domination inherited from the apartheid era continuing to produce inequalities in opportunities. Social policy under the democratic government has not managed to address social inequalities and the main drivers of poverty in the form of income poverty, asset poverty and capability poverty which are the underlying factors reproducing deprivation and destitution of the majority of the population Although South Africa prides itself of a stable democracy, social inequalities continue to undermine the benefits of social citizenship because political participation in the midst of unequal access to economic and social resources undermine the value of citizenship. Also, inequalities in the distribution of income and wealth, and in the control of economic production undermine political equality which is an ethic upon which social rights are predicated. As a result, state interventions are lacking inherent potential to build human capability for people to live the life that they have reason to value. The paradox of social policy in South Africa is that the majority of those who are marginalised are those who were excluded by the apartheid regime even though state intervention is claimed to be targeting them. This points to the failure of incremental equalisation of opportunities within a context of stark social inequities. It is also an indication that the economic growth path delivered by the political transition is working to reinforce the inherited legacy of deprivation and it is avoiding questions related to the structural nature of poverty and inequalities. Therefore, a transformative social policy is an imperative for South Africa. Such a framework of social policy should be premised upon a notion of human security in order to built human capability. Human security focuses on the security of individuals and communities to strengthen human development. It emphasises on civil, political and socioeconomic rights for individual citizens to participate fully in the process of governance. Although this thesis is a case study of social policy in South Africa, it can be used to appreciate the role of social policy in other developing countries, particularly the impact of political decision making on social distribution. Poverty and social inequalities are growing problems in developing countries and so is the importance of putting these problems under the spotlight for political attention.
- Full Text:
- Date Issued: 2011
- Authors: Monyai, Priscilla B
- Date: 2011
- Subjects: Human capital -- South Africa , Apartheid -- South Africa , Equality -- South Africa , Poverty -- South Africa , Political participation -- South Africa , South Africa -- Economic conditions , South Africa -- Social conditions
- Language: English
- Type: Thesis , Doctoral , PhD (Social Science Dev)
- Identifier: vital:11439 , http://hdl.handle.net/10353/d1007230 , Human capital -- South Africa , Apartheid -- South Africa , Equality -- South Africa , Poverty -- South Africa , Political participation -- South Africa , South Africa -- Economic conditions , South Africa -- Social conditions
- Description: The main focus of this thesis is the challenges that are facing social policy development and implementation in South Africa in relation to the enhancement of human capability. The study adopted a historical approach to assess the model of social policy in South Africa and identified that social relations of domination inherited from the apartheid era continuing to produce inequalities in opportunities. Social policy under the democratic government has not managed to address social inequalities and the main drivers of poverty in the form of income poverty, asset poverty and capability poverty which are the underlying factors reproducing deprivation and destitution of the majority of the population Although South Africa prides itself of a stable democracy, social inequalities continue to undermine the benefits of social citizenship because political participation in the midst of unequal access to economic and social resources undermine the value of citizenship. Also, inequalities in the distribution of income and wealth, and in the control of economic production undermine political equality which is an ethic upon which social rights are predicated. As a result, state interventions are lacking inherent potential to build human capability for people to live the life that they have reason to value. The paradox of social policy in South Africa is that the majority of those who are marginalised are those who were excluded by the apartheid regime even though state intervention is claimed to be targeting them. This points to the failure of incremental equalisation of opportunities within a context of stark social inequities. It is also an indication that the economic growth path delivered by the political transition is working to reinforce the inherited legacy of deprivation and it is avoiding questions related to the structural nature of poverty and inequalities. Therefore, a transformative social policy is an imperative for South Africa. Such a framework of social policy should be premised upon a notion of human security in order to built human capability. Human security focuses on the security of individuals and communities to strengthen human development. It emphasises on civil, political and socioeconomic rights for individual citizens to participate fully in the process of governance. Although this thesis is a case study of social policy in South Africa, it can be used to appreciate the role of social policy in other developing countries, particularly the impact of political decision making on social distribution. Poverty and social inequalities are growing problems in developing countries and so is the importance of putting these problems under the spotlight for political attention.
- Full Text:
- Date Issued: 2011