Making the means justify the ends?: the theory and practice of the RDP
- Authors: Rapoo, Thabo
- Date: [1996]
- Subjects: South Africa -- Economic policy , Reconstruction and Development Programme (South Africa)
- Language: English
- Type: text , book
- Identifier: http://hdl.handle.net/10962/74783 , vital:30338 , 0958407983
- Description: So much has been said and written about the Reconstruction and Development Programme by a bewildering array of development specialists, politicians, bureaucrats and commentators that it seems inconceivable that anyone familiar with policy debates would still lack an understanding of it. But amid the speeches, publications, policy documents and newspaper articles, the RDP has lost its meaning and coherence. It has come to mean anything anyone wants it to mean; with a little ingenuity, anything can be made to fit in with the goals of the RDP. It has thus become too broad and imprecise to refer only to what was originally intended. This paper offers an analysis of the RDP’s approach at national and provincial levels, and provides a conceptual framework within which the RDP’s Basic Needs approach to development is assessed. It forms part of a continuing project which seeks to examine the RDP and its implementation by the provinces, and was based on interviews with provincial and national RDP officials, development planners in the provinces, and a thorough content analysis of official policy documents, memoranda and minutes. The institutionalisation of the RDP will be examined by analysing problems faced in the course of implementing it in the provinces. Gauteng, Mpumalanga and North West were chosen as case studies; w'hile they were selected randomly, the goal was to examine three provinces with different socio-economic profiles, allowing significant lessons to be extrapolated from their short experience of implementing the RDP. Their priorities and strategic approaches will be assessed, and problems examined, to suggest lessons for policy and planning that might throw light on similar issues in other provinces. Finally, the paper will analyse indications that the government is making subtle strategic changes towards rearticulating the RDP within a new time frame, and moving towards a tightly co-ordinated set of institutional structures and intergovernmental planning systems. , Social policy series
- Full Text:
- Date Issued: [1996]
- Authors: Rapoo, Thabo
- Date: [1996]
- Subjects: South Africa -- Economic policy , Reconstruction and Development Programme (South Africa)
- Language: English
- Type: text , book
- Identifier: http://hdl.handle.net/10962/74783 , vital:30338 , 0958407983
- Description: So much has been said and written about the Reconstruction and Development Programme by a bewildering array of development specialists, politicians, bureaucrats and commentators that it seems inconceivable that anyone familiar with policy debates would still lack an understanding of it. But amid the speeches, publications, policy documents and newspaper articles, the RDP has lost its meaning and coherence. It has come to mean anything anyone wants it to mean; with a little ingenuity, anything can be made to fit in with the goals of the RDP. It has thus become too broad and imprecise to refer only to what was originally intended. This paper offers an analysis of the RDP’s approach at national and provincial levels, and provides a conceptual framework within which the RDP’s Basic Needs approach to development is assessed. It forms part of a continuing project which seeks to examine the RDP and its implementation by the provinces, and was based on interviews with provincial and national RDP officials, development planners in the provinces, and a thorough content analysis of official policy documents, memoranda and minutes. The institutionalisation of the RDP will be examined by analysing problems faced in the course of implementing it in the provinces. Gauteng, Mpumalanga and North West were chosen as case studies; w'hile they were selected randomly, the goal was to examine three provinces with different socio-economic profiles, allowing significant lessons to be extrapolated from their short experience of implementing the RDP. Their priorities and strategic approaches will be assessed, and problems examined, to suggest lessons for policy and planning that might throw light on similar issues in other provinces. Finally, the paper will analyse indications that the government is making subtle strategic changes towards rearticulating the RDP within a new time frame, and moving towards a tightly co-ordinated set of institutional structures and intergovernmental planning systems. , Social policy series
- Full Text:
- Date Issued: [1996]
The second transition : an analysis of the political rhetoric of the ANC and ANCYL
- Authors: Maseko, Thulani Norman
- Date: 2013
- Subjects: African National Congress , African National Congress -- Youth League , Rhetoric -- Political aspects , South Africa -- Economic policy , South Africa -- Politics and government -- 1994-
- Language: English
- Type: Thesis , Masters , MPhil
- Identifier: vital:8343 , http://hdl.handle.net/10948/d1020760
- Description: South Africa achieved its formal democracy through a negotiated settlement in 1994. Formal democracy focuses on liberty, rights and basic freedom such as freedom of speech, and the right to vote, amongst others, while substantive democracy focuses on equality, social justice, and the area of economic rights with a focus on reduction of poverty, unemployment and increased equality. It is within the substantive democratisation theoretical framework, that South Africa’s democratic achievement has not necessarily been as great as its political achievements in constructing a constitutional democracy. This is evident in the continued patterns of racialised inequality and poverty, as well as the increase in service delivery protest action, which can destabilise the democratic success achieved in 1994. The objective of economic development is to create an environment where people can enjoy economic stability, job security and health, and lead productive lives, on one hand. On the other hand, political development seeks to create an environment where people can enjoy peace, rule of law and freedom. Politics and economics therefore go hand in hand to attain wealth benefits for people and create a sufficient level of political stability within a transitioning context. South Africa has made some strides towards getting political stability and a democratic state, but much still needs to be done to reduce poverty, unemployment and inequality. Hence an argument stressing the need for a Second Transition or Economic CODESA has recently entered the sphere of political public debate. This project seeks to deconstruct and explain the discourse of the Second Transition and Economic CODESA. The studies found that centre to this debate are key redistributive issues. Poverty, inequality and unemployment are key substantive challenges that have the potential to undermine political stability if they are not effectively dealt with.
- Full Text:
- Date Issued: 2013
- Authors: Maseko, Thulani Norman
- Date: 2013
- Subjects: African National Congress , African National Congress -- Youth League , Rhetoric -- Political aspects , South Africa -- Economic policy , South Africa -- Politics and government -- 1994-
- Language: English
- Type: Thesis , Masters , MPhil
- Identifier: vital:8343 , http://hdl.handle.net/10948/d1020760
- Description: South Africa achieved its formal democracy through a negotiated settlement in 1994. Formal democracy focuses on liberty, rights and basic freedom such as freedom of speech, and the right to vote, amongst others, while substantive democracy focuses on equality, social justice, and the area of economic rights with a focus on reduction of poverty, unemployment and increased equality. It is within the substantive democratisation theoretical framework, that South Africa’s democratic achievement has not necessarily been as great as its political achievements in constructing a constitutional democracy. This is evident in the continued patterns of racialised inequality and poverty, as well as the increase in service delivery protest action, which can destabilise the democratic success achieved in 1994. The objective of economic development is to create an environment where people can enjoy economic stability, job security and health, and lead productive lives, on one hand. On the other hand, political development seeks to create an environment where people can enjoy peace, rule of law and freedom. Politics and economics therefore go hand in hand to attain wealth benefits for people and create a sufficient level of political stability within a transitioning context. South Africa has made some strides towards getting political stability and a democratic state, but much still needs to be done to reduce poverty, unemployment and inequality. Hence an argument stressing the need for a Second Transition or Economic CODESA has recently entered the sphere of political public debate. This project seeks to deconstruct and explain the discourse of the Second Transition and Economic CODESA. The studies found that centre to this debate are key redistributive issues. Poverty, inequality and unemployment are key substantive challenges that have the potential to undermine political stability if they are not effectively dealt with.
- 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
Redistribution and taxation in South Africa : inaugural lecture delivered at Rhodes University
- Authors: Gavin, Wesley J
- Date: 1996
- Subjects: Taxation -- South Africa , Wealth -- Moral and ethical aspects , South Africa -- Economic policy
- Language: English
- Type: Text
- Identifier: vital:627 , http://hdl.handle.net/10962/d1020696 , ISBN 0868103292
- Description: Inaugural lecture delivered at Rhodes University , Rhodes University Libraries (Digitisation)
- Full Text:
- Date Issued: 1996
- Authors: Gavin, Wesley J
- Date: 1996
- Subjects: Taxation -- South Africa , Wealth -- Moral and ethical aspects , South Africa -- Economic policy
- Language: English
- Type: Text
- Identifier: vital:627 , http://hdl.handle.net/10962/d1020696 , ISBN 0868103292
- Description: Inaugural lecture delivered at Rhodes University , Rhodes University Libraries (Digitisation)
- Full Text:
- Date Issued: 1996
Discussion document : nationalisation
- African National Congress, Department of Economic Policy
- Authors: African National Congress, Department of Economic Policy
- Date: 1991?
- Subjects: Government ownership -- South Africa , Industrial policy -- South Africa , Socialism -- South Africa , South Africa -- Economic policy
- Language: English
- Type: text , book
- Identifier: http://hdl.handle.net/10962/66044 , vital:28887
- Description: Nationalisation involves putting any section of the economy under the control and ownership of a government. Nationalisation is not new to South Africa. The governments of the past and especially the Nationalist Party have nationalised a number of industries in the South African economy. Today almost 54% of the productive assets in the country are in the hands of the government. Transport, electricity, post office, are a few examples. Nationalisation in the past has been used to benefit only the whites, by providing them with jobs and services.
- Full Text:
- Date Issued: 1991?
- Authors: African National Congress, Department of Economic Policy
- Date: 1991?
- Subjects: Government ownership -- South Africa , Industrial policy -- South Africa , Socialism -- South Africa , South Africa -- Economic policy
- Language: English
- Type: text , book
- Identifier: http://hdl.handle.net/10962/66044 , vital:28887
- Description: Nationalisation involves putting any section of the economy under the control and ownership of a government. Nationalisation is not new to South Africa. The governments of the past and especially the Nationalist Party have nationalised a number of industries in the South African economy. Today almost 54% of the productive assets in the country are in the hands of the government. Transport, electricity, post office, are a few examples. Nationalisation in the past has been used to benefit only the whites, by providing them with jobs and services.
- Full Text:
- Date Issued: 1991?
An analysis of exchange rate pass-through to prices in South Africa
- Authors: Karoro, Tapiwa Daniel
- Date: 2008
- Subjects: Foreign exchange rates -- South Africa , Monetary policy -- South Africa , Inflation (Finance) -- South Africa , Prices -- South Africa , Banks and banking -- South Africa , South Africa -- Economic policy
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:953 , http://hdl.handle.net/10962/d1002687 , Foreign exchange rates -- South Africa , Monetary policy -- South Africa , Inflation (Finance) -- South Africa , Prices -- South Africa , Banks and banking -- South Africa , South Africa -- Economic policy
- Description: The fact that South Africa has a floating exchange rate policy as well as an open trade policy leaves the country’s import, producer and consumer prices susceptible to the effects of exchange rate movements. Given the central role that inflation targeting occupies in South Africa’s monetary policy, it becomes necessary to determine the nature of influence of exchange rate changes on domestic prices. To this end, this thesis examines the magnitude and speed of exchange rate pass-through (ERPT) to import, producer and consumer prices in South Africa. Furthermore, it explores whether the direction and size of changes in the exchange rate have different pass-through effects on import prices, that is, whether the exchange rate pass-through is symmetric or asymmetric. The paper uses monthly data covering the period January 1980 to December 2005. In investigating ERPT, two main stages are identified. The initial stage is the transmission of fluctuations in the exchange rate to import prices, while the second-stage entails the pass-through of changes in import prices to producer and consumer prices. The first stage is estimated using the Johansen (1991) and (1995) cointegration techniques and a vector error correction model (VECM). The second stage pass-through is determined by estimating impulse response and variance decomposition functions, as well as conducting block exogeneity Wald tests. The study follows Wickremasinghe and Silvapulle’s (2004) approach in estimating pass-through asymmetry with respect to appreciations and depreciations. In addition, the thesis adapts the analytical framework of Wickremasinghe and Silvapulle (2004) to investigate the pass-through of large and small changes in the exchange rate to import prices. The results suggest that ERPT in South Africa is incomplete but relatively high. Furthermore, ERPT is found to be higher in periods of rand depreciation than appreciation which supports the binding quantity constraint theory. There is also some evidence that pass-through is higher in periods of small changes than large changes in the exchange rate, which supports the menu cost theory when invoices are denominated in the exporters’ currency.
- Full Text:
- Date Issued: 2008
- Authors: Karoro, Tapiwa Daniel
- Date: 2008
- Subjects: Foreign exchange rates -- South Africa , Monetary policy -- South Africa , Inflation (Finance) -- South Africa , Prices -- South Africa , Banks and banking -- South Africa , South Africa -- Economic policy
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:953 , http://hdl.handle.net/10962/d1002687 , Foreign exchange rates -- South Africa , Monetary policy -- South Africa , Inflation (Finance) -- South Africa , Prices -- South Africa , Banks and banking -- South Africa , South Africa -- Economic policy
- Description: The fact that South Africa has a floating exchange rate policy as well as an open trade policy leaves the country’s import, producer and consumer prices susceptible to the effects of exchange rate movements. Given the central role that inflation targeting occupies in South Africa’s monetary policy, it becomes necessary to determine the nature of influence of exchange rate changes on domestic prices. To this end, this thesis examines the magnitude and speed of exchange rate pass-through (ERPT) to import, producer and consumer prices in South Africa. Furthermore, it explores whether the direction and size of changes in the exchange rate have different pass-through effects on import prices, that is, whether the exchange rate pass-through is symmetric or asymmetric. The paper uses monthly data covering the period January 1980 to December 2005. In investigating ERPT, two main stages are identified. The initial stage is the transmission of fluctuations in the exchange rate to import prices, while the second-stage entails the pass-through of changes in import prices to producer and consumer prices. The first stage is estimated using the Johansen (1991) and (1995) cointegration techniques and a vector error correction model (VECM). The second stage pass-through is determined by estimating impulse response and variance decomposition functions, as well as conducting block exogeneity Wald tests. The study follows Wickremasinghe and Silvapulle’s (2004) approach in estimating pass-through asymmetry with respect to appreciations and depreciations. In addition, the thesis adapts the analytical framework of Wickremasinghe and Silvapulle (2004) to investigate the pass-through of large and small changes in the exchange rate to import prices. The results suggest that ERPT in South Africa is incomplete but relatively high. Furthermore, ERPT is found to be higher in periods of rand depreciation than appreciation which supports the binding quantity constraint theory. There is also some evidence that pass-through is higher in periods of small changes than large changes in the exchange rate, which supports the menu cost theory when invoices are denominated in the exporters’ currency.
- Full Text:
- Date Issued: 2008
An appraisal and critique of land redistribution approaches in South Africa
- Authors: Phiri, M C S
- Date: 2020
- Subjects: University of the Western Cape. Institute for Poverty, Land and Agrarian Studies , Land reform -- South Africa , Land reform -- Law and legislation -- South Africa , Agriculture and state -- South Africa , Reconstruction and Development Programme (South Africa) , Land reform beneficiaries -- South Africa , South Africa -- Economic conditions -- 1991- , South Africa -- Social conditions -- 1994- , South Africa -- Economic policy , Land tenure -- Law and legislation -- South Africa , Black people -- South Africa -- Economic conditions , Black people -- South Africa -- Social conditions
- Language: English
- Type: Thesis , Masters , MA
- Identifier: http://hdl.handle.net/10962/149161 , vital:38810
- Description: This paper is in response to the PLAAS Land Conference held in February 2019 which aimed at discovering an alternative to how to solve the land question. The conference came at a time where land and agrarian reform re-emerged in South African socio-policy discussion. After twenty-five years of democracy the three land reform programmes have failed to restructure apartheid’s economic segregation, exclusionary land ownership patterns and to restore dignity to poor black South Africans. This study offers a detailed examination of the discourse of South African land reform, specifically the redistribution component with a focus on the land redistribution approaches presented at the PLAAS conference. Ultimately, the study puts forward a synthesized land redistribution approach as a hybrid solution to the land and agrarian crisis.
- Full Text:
- Date Issued: 2020
- Authors: Phiri, M C S
- Date: 2020
- Subjects: University of the Western Cape. Institute for Poverty, Land and Agrarian Studies , Land reform -- South Africa , Land reform -- Law and legislation -- South Africa , Agriculture and state -- South Africa , Reconstruction and Development Programme (South Africa) , Land reform beneficiaries -- South Africa , South Africa -- Economic conditions -- 1991- , South Africa -- Social conditions -- 1994- , South Africa -- Economic policy , Land tenure -- Law and legislation -- South Africa , Black people -- South Africa -- Economic conditions , Black people -- South Africa -- Social conditions
- Language: English
- Type: Thesis , Masters , MA
- Identifier: http://hdl.handle.net/10962/149161 , vital:38810
- Description: This paper is in response to the PLAAS Land Conference held in February 2019 which aimed at discovering an alternative to how to solve the land question. The conference came at a time where land and agrarian reform re-emerged in South African socio-policy discussion. After twenty-five years of democracy the three land reform programmes have failed to restructure apartheid’s economic segregation, exclusionary land ownership patterns and to restore dignity to poor black South Africans. This study offers a detailed examination of the discourse of South African land reform, specifically the redistribution component with a focus on the land redistribution approaches presented at the PLAAS conference. Ultimately, the study puts forward a synthesized land redistribution approach as a hybrid solution to the land and agrarian crisis.
- Full Text:
- Date Issued: 2020
The impact of real exchange rates on economic growth: a case study of South Africa
- Authors: Sibanda, Kin
- Date: 2012
- Subjects: Economic development -- South Africa , Foreign exchange -- South Africa , Interest rates -- South Africa , Money supply -- South Africa , Free trade -- South Africa , Saving and investment -- South Africa , Devaluation of currency -- South Africa , Currency question -- South Africa , South Africa -- Economic policy
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11469 , http://hdl.handle.net/10353/d1007129 , Economic development -- South Africa , Foreign exchange -- South Africa , Interest rates -- South Africa , Money supply -- South Africa , Free trade -- South Africa , Saving and investment -- South Africa , Devaluation of currency -- South Africa , Currency question -- South Africa , South Africa -- Economic policy
- Description: This study examined the impact of real exchange rates on economic growth in South Africa. The study used quarterly time series data for the period of 1994 to 2010. The Johansen cointegration and vector error correction model was used to determine the impact of real exchange on economic growth in South Africa. The explanatory variables in this study were real exchange rates, real interest rates, money supply, trade openness and gross fixed capital formation. Results from this study revealed that real exchange rates, gross fixed capital formation and real interest rates have a positive long run impact on economic growth, while money supply and trade openness have a negative long run impact on economic growth in South Africa. From the regression results, it was noted that undervaluation of the currency significantly hampers growth in the long run, whilst it significantly enhances economic growth in the short run. As such, the policy of depreciating the exchange rates to achieve higher growth rates is only effective in the short run and is not sustainable in the long run. Based on the findings of this study, the researcher recommended that misalignment (overvaluation and undervaluation) of the currency should be avoided at all costs. In addition, the results of the study showed that interest rates also have a significant impact on growth and since interest rates have a bearing on the exchange rate, it was recommended that the current monetary policy in South Africa should be maintained.
- Full Text:
- Date Issued: 2012
- Authors: Sibanda, Kin
- Date: 2012
- Subjects: Economic development -- South Africa , Foreign exchange -- South Africa , Interest rates -- South Africa , Money supply -- South Africa , Free trade -- South Africa , Saving and investment -- South Africa , Devaluation of currency -- South Africa , Currency question -- South Africa , South Africa -- Economic policy
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11469 , http://hdl.handle.net/10353/d1007129 , Economic development -- South Africa , Foreign exchange -- South Africa , Interest rates -- South Africa , Money supply -- South Africa , Free trade -- South Africa , Saving and investment -- South Africa , Devaluation of currency -- South Africa , Currency question -- South Africa , South Africa -- Economic policy
- Description: This study examined the impact of real exchange rates on economic growth in South Africa. The study used quarterly time series data for the period of 1994 to 2010. The Johansen cointegration and vector error correction model was used to determine the impact of real exchange on economic growth in South Africa. The explanatory variables in this study were real exchange rates, real interest rates, money supply, trade openness and gross fixed capital formation. Results from this study revealed that real exchange rates, gross fixed capital formation and real interest rates have a positive long run impact on economic growth, while money supply and trade openness have a negative long run impact on economic growth in South Africa. From the regression results, it was noted that undervaluation of the currency significantly hampers growth in the long run, whilst it significantly enhances economic growth in the short run. As such, the policy of depreciating the exchange rates to achieve higher growth rates is only effective in the short run and is not sustainable in the long run. Based on the findings of this study, the researcher recommended that misalignment (overvaluation and undervaluation) of the currency should be avoided at all costs. In addition, the results of the study showed that interest rates also have a significant impact on growth and since interest rates have a bearing on the exchange rate, it was recommended that the current monetary policy in South Africa should be maintained.
- Full Text:
- Date Issued: 2012
South Africa within SADC : hegemon or partner?
- Authors: Molefi, Tebogo Shadrack
- Date: 2003
- Subjects: Southern African Development Community , Political stability -- Africa, Southern , South Africa -- Economic conditions , South Africa -- Foreign relations -- Africa , South Africa -- Economic policy
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:2866 , http://hdl.handle.net/10962/d1007674 , Southern African Development Community , Political stability -- Africa, Southern , South Africa -- Economic conditions , South Africa -- Foreign relations -- Africa , South Africa -- Economic policy
- Description: This study attempts to make a contribution to the debate on the role of South Africa within Southern African Development Community. An attempt is made to analyse this role within the context of regional integration debate. This role has been conceptualised within the dichotomies of hegemon versus partner. The study argues that South Africa is a hegemon in the region of SADC, and that given its overarching economic dominance and it has the potential of establishing its hegemony in the region. It maintains that there are several factors, which could facilitate South Africa's hegemonic dominance such as in military, technology and manufacturing sector. It concludes by arguing that given the changing geopolitical factors both within the region and the globe impedes South Africa from firmly expressing this hegemonic dominance. Furthermore, South Africa's pioneering role in the struggle to change the status quo globally in favour of the Southern states is another crucial factor, which imposes limitations on its hegemonic intentions regionally.
- Full Text:
- Date Issued: 2003
- Authors: Molefi, Tebogo Shadrack
- Date: 2003
- Subjects: Southern African Development Community , Political stability -- Africa, Southern , South Africa -- Economic conditions , South Africa -- Foreign relations -- Africa , South Africa -- Economic policy
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:2866 , http://hdl.handle.net/10962/d1007674 , Southern African Development Community , Political stability -- Africa, Southern , South Africa -- Economic conditions , South Africa -- Foreign relations -- Africa , South Africa -- Economic policy
- Description: This study attempts to make a contribution to the debate on the role of South Africa within Southern African Development Community. An attempt is made to analyse this role within the context of regional integration debate. This role has been conceptualised within the dichotomies of hegemon versus partner. The study argues that South Africa is a hegemon in the region of SADC, and that given its overarching economic dominance and it has the potential of establishing its hegemony in the region. It maintains that there are several factors, which could facilitate South Africa's hegemonic dominance such as in military, technology and manufacturing sector. It concludes by arguing that given the changing geopolitical factors both within the region and the globe impedes South Africa from firmly expressing this hegemonic dominance. Furthermore, South Africa's pioneering role in the struggle to change the status quo globally in favour of the Southern states is another crucial factor, which imposes limitations on its hegemonic intentions regionally.
- Full Text:
- Date Issued: 2003
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
The functioning of the interbank market and its significance in the transmission of monetary policy
- Authors: De Angelis, Catherine
- Date: 2013-06-11
- Subjects: South African Reserve Bank , Monetary policy -- South Africa , Foreign exchange rates -- South Africa , Money market -- South Africa , Banks and banking -- South Africa , Repurchase agreements -- South Africa , South Africa -- Economic policy , South Africa -- Economic conditions
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1075 , http://hdl.handle.net/10962/d1008054 , South African Reserve Bank , Monetary policy -- South Africa , Foreign exchange rates -- South Africa , Money market -- South Africa , Banks and banking -- South Africa , Repurchase agreements -- South Africa , South Africa -- Economic policy , South Africa -- Economic conditions
- Description: Monetary policy in South African is the primary means by which the authorities can influence activity in the overall economy. The South African Reserve Bank accommodates banks through repo transactions for which they charge the repo rate. The most important market in the transmission of the repo rate to the rest of the economy is the interbank market. As such, a detailed discussion of this market is given. In September 200 I the monetary authorities made certain adjustments to the repo system of accommodation, which included changing the repo rate from a floating rate to a fixed rate that would be administratively determined by the MPC. This was done to address certain weaknesses in the floating rate system. This thesis examines and compares the period before and after the adjustments to the repo system, with the aim of determining whether or not the monetary authorities achieved the goals intended from making this change. The repo rate, prime interbank rate, 3-month NCO rate and the prime lending rate are analysed using the Engle-Granger two variable approach and an ECM model to test for causality. It was found that the monetary authorities did not achieve their intended goals as the relationship between the repo rate and the interbank rate was more significant in the first period. Furthermore, the direction of causality the authorities hoped to achieve by implementing the changes were in fact already in place. As such the adjustments to the system changed the transmission mechanism from the one desired by the authorities to one that was not intended. The conclusions reached by this study show that, in terms of the objectives of the monetary authorities, the previous repo system functioned better. , KMBT_363 , Adobe Acrobat 9.54 Paper Capture Plug-in
- Full Text:
- Authors: De Angelis, Catherine
- Date: 2013-06-11
- Subjects: South African Reserve Bank , Monetary policy -- South Africa , Foreign exchange rates -- South Africa , Money market -- South Africa , Banks and banking -- South Africa , Repurchase agreements -- South Africa , South Africa -- Economic policy , South Africa -- Economic conditions
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1075 , http://hdl.handle.net/10962/d1008054 , South African Reserve Bank , Monetary policy -- South Africa , Foreign exchange rates -- South Africa , Money market -- South Africa , Banks and banking -- South Africa , Repurchase agreements -- South Africa , South Africa -- Economic policy , South Africa -- Economic conditions
- Description: Monetary policy in South African is the primary means by which the authorities can influence activity in the overall economy. The South African Reserve Bank accommodates banks through repo transactions for which they charge the repo rate. The most important market in the transmission of the repo rate to the rest of the economy is the interbank market. As such, a detailed discussion of this market is given. In September 200 I the monetary authorities made certain adjustments to the repo system of accommodation, which included changing the repo rate from a floating rate to a fixed rate that would be administratively determined by the MPC. This was done to address certain weaknesses in the floating rate system. This thesis examines and compares the period before and after the adjustments to the repo system, with the aim of determining whether or not the monetary authorities achieved the goals intended from making this change. The repo rate, prime interbank rate, 3-month NCO rate and the prime lending rate are analysed using the Engle-Granger two variable approach and an ECM model to test for causality. It was found that the monetary authorities did not achieve their intended goals as the relationship between the repo rate and the interbank rate was more significant in the first period. Furthermore, the direction of causality the authorities hoped to achieve by implementing the changes were in fact already in place. As such the adjustments to the system changed the transmission mechanism from the one desired by the authorities to one that was not intended. The conclusions reached by this study show that, in terms of the objectives of the monetary authorities, the previous repo system functioned better. , KMBT_363 , Adobe Acrobat 9.54 Paper Capture Plug-in
- Full Text:
Business, state and society in the Western Cape from 1960 to 1990
- Authors: Wood, Robert Jameson
- Date: 2014
- Subjects: Industrial policy -- South Africa. , Apartheid -- South Africa -- 1960-1990 , South Africa -- Economic conditions -- 1960-1990 , South Africa -- Economic policy
- Language: English
- Type: Thesis , Doctoral , DPhil
- Identifier: vital:9125 , http://hdl.handle.net/10948/d1018502
- Description: This research examines the relationship between business, the state and society in South Africa -- particularly the Western Cape -- over the period from 1960 to 1990, viewed against the background of economic conditions in this region, South Africa and the world. Utilising a development history approach, it is based on an extensive study of primary and secondary documentation, supplemented by a panel of in-depth interviews and observation. This study finds that the relationship between business and apartheid incorporated both functional and dysfunctional elements, although over time the benefits diminished and the costs multiplied. The latter, Regulation Theory suggests, is true for any institutional order, but it could be argued that, under apartheid, the particularly fragile and contradictory nature of the institutional arrangement made inevitable crises more rapid and more pronounced. On the one hand, apartheid restricted the economic development of the country, as a result of a range of factors from skills shortages to the visible waste of resources on grand ideological projects and security; as suggested by Resource Curse Theory, minerals windfalls tend to encourage irresponsible behaviour by governments. On the other hand, certain businesses prospered, notably the Afrikaner business sector. All business benefited from the overall growth of the 1950s and 1960s, whilst niche players often did quite well even during the 1980s. Further, the South African businessmen, both English- and Afrikaans-speaking, were skilful in adapting to the difficult conditions brought about by apartheid, and in many cases they prospered. As highlighted by Business Systems Theory, embedded social ties and informal relations may help either support or compensate for formal regulatory pressures. Many of these general trends were particularly accentuated in the Western Cape. The fact that business protests against government policies were often more motivated by concerns as to future property rights and of social disorder, rather than human rights, does indeed raise serious moral issues. However, in helping encourage political reform, they may have made a positive contribution. This study is founded on three related strands of thinking within the political economy tradition, Resource Curse Theory, Regulation Theory and Business Systems Theory, with the emerging common ground between these three bodies of thought being highlighted. As suggested by Resource Curse Theory, non-mineral producing regions tend to be particularly adversely affected in mineral rich countries, and there is little doubt that the region bore all the costs of the collapse of the gold price in the 1980s, and lacked the deeper capital base of the now Gauteng region to cushion the shock. Whilst apartheid may, as we have seen, have served conservative sectors of agriculture and mining quite well for many years, it also involved large costs incurred through social engineering experiments and the increasing demands of the security establishment. Resource Curse Theory suggests that national economies become dangerously dependent on the vagaries of commodities markets, and that the process of institutional design and evolution is hampered by assumptions of easy money which may temporary resolve the negative consequences of any institutional shortcomings. The poor price of gold in much of the 1980s brought about a crisis in the system, and, there is little doubt that this contributed to the demise of the order. As suggested by Resource Curse Theory, the experience of the Western Cape, a region of the country poor in minerals, was often one of inefficient and wasteful state intervention, coupled with increasingly poor performance of non-mineral related industries. Indeed, the effects of the recession of the 1980s were most pronounced in non-mineral producing areas of the country, particularly in the Western Cape. Regulation Theory highlights that no set of institutions and practices is ever totally coherent and functional, but at specific times may work to promote both certain types of economic activity and overall growth. It is wrong to suggest that because an order only works for some players at specific times it is simply dysfunctional or does not work properly at all. However, over time, internal contradictions mount and the benefits diminish. A particular feature of the apartheid order was that some of its core benefits at its height were particularly concentrated on some players (segments of Afrikaner commerce and industry, mining and agriculture), whilst the costs were shared across a wider range of players, with a disproportionate burden being borne by the black majority. A further feature was that the costs were often indirect and spread over many years if the benefits were sometimes immediate: this would include the persistent dysfunctionality of much of the South African education system and the criminal ecosystem that was nurtured through sanctions busting. Internal contradictions and spreading dysfunctionality rarely leads to a conscious and coherent period of institutional redesign, but rather an incoherent, experimental and contested process, such as characterized late apartheid reforms, and, indeed, the post February-1990 negotiation process. Finally, again at a theoretical level, as Business Systems Theory highlights, it is important to take account of the formal and informal ties interlinking firms in different sectors in the region, and firms and government, and the extent to which regions within a particular country may follow very distinct developmental trajectories. The benefits and the costs of the system diffused unevenly in the region, giving many players both a stake in the existing order, and an interest in some or other type of reform.
- Full Text:
- Date Issued: 2014
- Authors: Wood, Robert Jameson
- Date: 2014
- Subjects: Industrial policy -- South Africa. , Apartheid -- South Africa -- 1960-1990 , South Africa -- Economic conditions -- 1960-1990 , South Africa -- Economic policy
- Language: English
- Type: Thesis , Doctoral , DPhil
- Identifier: vital:9125 , http://hdl.handle.net/10948/d1018502
- Description: This research examines the relationship between business, the state and society in South Africa -- particularly the Western Cape -- over the period from 1960 to 1990, viewed against the background of economic conditions in this region, South Africa and the world. Utilising a development history approach, it is based on an extensive study of primary and secondary documentation, supplemented by a panel of in-depth interviews and observation. This study finds that the relationship between business and apartheid incorporated both functional and dysfunctional elements, although over time the benefits diminished and the costs multiplied. The latter, Regulation Theory suggests, is true for any institutional order, but it could be argued that, under apartheid, the particularly fragile and contradictory nature of the institutional arrangement made inevitable crises more rapid and more pronounced. On the one hand, apartheid restricted the economic development of the country, as a result of a range of factors from skills shortages to the visible waste of resources on grand ideological projects and security; as suggested by Resource Curse Theory, minerals windfalls tend to encourage irresponsible behaviour by governments. On the other hand, certain businesses prospered, notably the Afrikaner business sector. All business benefited from the overall growth of the 1950s and 1960s, whilst niche players often did quite well even during the 1980s. Further, the South African businessmen, both English- and Afrikaans-speaking, were skilful in adapting to the difficult conditions brought about by apartheid, and in many cases they prospered. As highlighted by Business Systems Theory, embedded social ties and informal relations may help either support or compensate for formal regulatory pressures. Many of these general trends were particularly accentuated in the Western Cape. The fact that business protests against government policies were often more motivated by concerns as to future property rights and of social disorder, rather than human rights, does indeed raise serious moral issues. However, in helping encourage political reform, they may have made a positive contribution. This study is founded on three related strands of thinking within the political economy tradition, Resource Curse Theory, Regulation Theory and Business Systems Theory, with the emerging common ground between these three bodies of thought being highlighted. As suggested by Resource Curse Theory, non-mineral producing regions tend to be particularly adversely affected in mineral rich countries, and there is little doubt that the region bore all the costs of the collapse of the gold price in the 1980s, and lacked the deeper capital base of the now Gauteng region to cushion the shock. Whilst apartheid may, as we have seen, have served conservative sectors of agriculture and mining quite well for many years, it also involved large costs incurred through social engineering experiments and the increasing demands of the security establishment. Resource Curse Theory suggests that national economies become dangerously dependent on the vagaries of commodities markets, and that the process of institutional design and evolution is hampered by assumptions of easy money which may temporary resolve the negative consequences of any institutional shortcomings. The poor price of gold in much of the 1980s brought about a crisis in the system, and, there is little doubt that this contributed to the demise of the order. As suggested by Resource Curse Theory, the experience of the Western Cape, a region of the country poor in minerals, was often one of inefficient and wasteful state intervention, coupled with increasingly poor performance of non-mineral related industries. Indeed, the effects of the recession of the 1980s were most pronounced in non-mineral producing areas of the country, particularly in the Western Cape. Regulation Theory highlights that no set of institutions and practices is ever totally coherent and functional, but at specific times may work to promote both certain types of economic activity and overall growth. It is wrong to suggest that because an order only works for some players at specific times it is simply dysfunctional or does not work properly at all. However, over time, internal contradictions mount and the benefits diminish. A particular feature of the apartheid order was that some of its core benefits at its height were particularly concentrated on some players (segments of Afrikaner commerce and industry, mining and agriculture), whilst the costs were shared across a wider range of players, with a disproportionate burden being borne by the black majority. A further feature was that the costs were often indirect and spread over many years if the benefits were sometimes immediate: this would include the persistent dysfunctionality of much of the South African education system and the criminal ecosystem that was nurtured through sanctions busting. Internal contradictions and spreading dysfunctionality rarely leads to a conscious and coherent period of institutional redesign, but rather an incoherent, experimental and contested process, such as characterized late apartheid reforms, and, indeed, the post February-1990 negotiation process. Finally, again at a theoretical level, as Business Systems Theory highlights, it is important to take account of the formal and informal ties interlinking firms in different sectors in the region, and firms and government, and the extent to which regions within a particular country may follow very distinct developmental trajectories. The benefits and the costs of the system diffused unevenly in the region, giving many players both a stake in the existing order, and an interest in some or other type of reform.
- Full Text:
- Date Issued: 2014
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
The effect of sectoral foreign direct investment on sectoral growth and sectoral employment in South Africa
- Authors: Paul, Bernice Nicole
- Date: 2021-04
- Subjects: Investments, Foreign -- South Africa , South Africa -- Economic conditions -- 1991- , South Africa -- Economic policy , Gross domestic product -- South Africa , UNCTAD-ICTSD Project on IPRs and Sustainable Development , Unemployment -- South Africa
- Language: English
- Type: thesis , text , Master , MCom
- Identifier: http://hdl.handle.net/10962/177964 , vital:42894
- Description: Over several decades past, developing countries have received increased amounts of Foreign Direct Investment (FDI). This form of investment has been welcomed because of the perceived benefits attached to it. FDI is seen as an important driver of economic development for many nations. For South Africa specifically, GDP growth rates have remained less than required, unemployment rates have reached staggering levels, poverty and inequality levels are increasing and the list goes on. Considering the perceived benefits of FDI, one may argue that FDI can play a crucial role in reducing the mentioned challenges facing the nation, however, only if directed to initiatives contributing to growth and employment. The 2015 Investment Policy Framework for Sustainable Development includes an action menu promoting investment in sectors relating to the achievement of the Sustainable Development Goals (SDGs). Therefore, this study is aimed at investigating the relationship between sector FDI and sector growth in addition to investigating the effect of sector FDI on sector employment over the period 2000Q1 to 2016Q4 for six of South Africa’s economic sectors. The reason for such a study is based on the premise that developing nations such as South Africa lack sound trade and industrial policies favorable to foreign investors. This then leads to the nation failing to attract higher volumes of FDI which could be used to address structural challenges facing the country. It is therefore important to identify sectors in which FDI has resulted in growth and employment so that when policies are considered, the right FDI is targeted. A comprehensive review of existing theoretical and empirical literature showed that FDI does result in economic growth for developed and developing countries, although FDI crowds out domestic investment in the short run. Literature on the effect of FDI on employment showed diverse effects. Some studies found FDI to increase employment overall, other studies found FDI to increase employment only during periods of restructuring and some studies found FDI to result in job losses. For South African sectors, the present study finds that the financial services sector receives the highest volume of South African FDI, followed by the mining and quarrying sector and the manufacturing, however, FDI in all six sectors under study is associated with increased growth and employment. This finding suggests that the financial services sector has received increased volumes of FDI as a result of financialization of the South African economy. It is this increased FDI in the financial services sector that is directed to income redistribution from the real sector to the finance sector. This study employed econometric techniques and methods of analysis to investigate the relationship between sector FDI and sector growth, and the effect of sector FDI on sector employment. Panel cointegration tests were conducted for all six sectors included in the study to establish if long run equilibrium relationships exist among integrated variables. The Johansen-Fisher panel cointegration test revealed that there is evidence of cointegration in four of the six sectors. Since cointegration was established, the study proceeded to perform the Dumitrescu-Hurlin panel causality analysis and estimate a Panel Vector Error Correction Model (VECM). Results from the causality analysis found a unidirectional causality relationship between FDI and GDP growth, while the panel VECM found FDI to have a significant effect on growth in all sectors. The Seemingly Unrelated Regression (SUR) model employed to investigate the effect of FDI on employment found FDI to have an insignificant effect on employment in all sectors included, although the signs of the coefficients suggest that FDI is associated with increased employment and rising wages is associated with increased productivity growth. Since this study finds that FDI is associated with increased GDP growth in all six sectors under study, policy makers should devise strategies to attract FDI in sectors such as the transportation, storage and communication sector and the electricity, gas and water sector as FDI in these sectors are associated with increased growth however, they receive very low levels of FDI. There are a number of reasons for this, therefore, government institutions and policy makers should investigate the reasons for these low levels of FDI inflows into these sectors so that they can devise further strategies to address these reasons and perhaps attract higher levels of FDI into these sectors. Spillover benefits play a major role in host nations participating in FDI therefore, prior to entering into bilateral treaty agreements, policy makers should ensure that foreign investors are compelled to create jobs, offer training and qualifications etc. through their investments so that some of the SDGs can be achieved. Additionally, this study finds a positive, statistically insignificant relationship between FDI and employment. FDI may not have a significant relationship on employment due to jobless growth and capital-intensive growth rather than labor-intensive growth. Such a situation calls for government intervention. Skills shortage is a rising problem in South Africa; therefore, investors choose to employ advanced technologies rather than people. Under such circumstances, governments are encouraged to invest resources into skills development so that human capital are not completely replaced by technology. , Thesis (MCom) -- Faculty of Commerce, Economics and Economic History, 2021
- Full Text:
- Date Issued: 2021-04
- Authors: Paul, Bernice Nicole
- Date: 2021-04
- Subjects: Investments, Foreign -- South Africa , South Africa -- Economic conditions -- 1991- , South Africa -- Economic policy , Gross domestic product -- South Africa , UNCTAD-ICTSD Project on IPRs and Sustainable Development , Unemployment -- South Africa
- Language: English
- Type: thesis , text , Master , MCom
- Identifier: http://hdl.handle.net/10962/177964 , vital:42894
- Description: Over several decades past, developing countries have received increased amounts of Foreign Direct Investment (FDI). This form of investment has been welcomed because of the perceived benefits attached to it. FDI is seen as an important driver of economic development for many nations. For South Africa specifically, GDP growth rates have remained less than required, unemployment rates have reached staggering levels, poverty and inequality levels are increasing and the list goes on. Considering the perceived benefits of FDI, one may argue that FDI can play a crucial role in reducing the mentioned challenges facing the nation, however, only if directed to initiatives contributing to growth and employment. The 2015 Investment Policy Framework for Sustainable Development includes an action menu promoting investment in sectors relating to the achievement of the Sustainable Development Goals (SDGs). Therefore, this study is aimed at investigating the relationship between sector FDI and sector growth in addition to investigating the effect of sector FDI on sector employment over the period 2000Q1 to 2016Q4 for six of South Africa’s economic sectors. The reason for such a study is based on the premise that developing nations such as South Africa lack sound trade and industrial policies favorable to foreign investors. This then leads to the nation failing to attract higher volumes of FDI which could be used to address structural challenges facing the country. It is therefore important to identify sectors in which FDI has resulted in growth and employment so that when policies are considered, the right FDI is targeted. A comprehensive review of existing theoretical and empirical literature showed that FDI does result in economic growth for developed and developing countries, although FDI crowds out domestic investment in the short run. Literature on the effect of FDI on employment showed diverse effects. Some studies found FDI to increase employment overall, other studies found FDI to increase employment only during periods of restructuring and some studies found FDI to result in job losses. For South African sectors, the present study finds that the financial services sector receives the highest volume of South African FDI, followed by the mining and quarrying sector and the manufacturing, however, FDI in all six sectors under study is associated with increased growth and employment. This finding suggests that the financial services sector has received increased volumes of FDI as a result of financialization of the South African economy. It is this increased FDI in the financial services sector that is directed to income redistribution from the real sector to the finance sector. This study employed econometric techniques and methods of analysis to investigate the relationship between sector FDI and sector growth, and the effect of sector FDI on sector employment. Panel cointegration tests were conducted for all six sectors included in the study to establish if long run equilibrium relationships exist among integrated variables. The Johansen-Fisher panel cointegration test revealed that there is evidence of cointegration in four of the six sectors. Since cointegration was established, the study proceeded to perform the Dumitrescu-Hurlin panel causality analysis and estimate a Panel Vector Error Correction Model (VECM). Results from the causality analysis found a unidirectional causality relationship between FDI and GDP growth, while the panel VECM found FDI to have a significant effect on growth in all sectors. The Seemingly Unrelated Regression (SUR) model employed to investigate the effect of FDI on employment found FDI to have an insignificant effect on employment in all sectors included, although the signs of the coefficients suggest that FDI is associated with increased employment and rising wages is associated with increased productivity growth. Since this study finds that FDI is associated with increased GDP growth in all six sectors under study, policy makers should devise strategies to attract FDI in sectors such as the transportation, storage and communication sector and the electricity, gas and water sector as FDI in these sectors are associated with increased growth however, they receive very low levels of FDI. There are a number of reasons for this, therefore, government institutions and policy makers should investigate the reasons for these low levels of FDI inflows into these sectors so that they can devise further strategies to address these reasons and perhaps attract higher levels of FDI into these sectors. Spillover benefits play a major role in host nations participating in FDI therefore, prior to entering into bilateral treaty agreements, policy makers should ensure that foreign investors are compelled to create jobs, offer training and qualifications etc. through their investments so that some of the SDGs can be achieved. Additionally, this study finds a positive, statistically insignificant relationship between FDI and employment. FDI may not have a significant relationship on employment due to jobless growth and capital-intensive growth rather than labor-intensive growth. Such a situation calls for government intervention. Skills shortage is a rising problem in South Africa; therefore, investors choose to employ advanced technologies rather than people. Under such circumstances, governments are encouraged to invest resources into skills development so that human capital are not completely replaced by technology. , Thesis (MCom) -- Faculty of Commerce, Economics and Economic History, 2021
- Full Text:
- Date Issued: 2021-04
Analysing the role of enterprise and supplier development within Mercedes Benz South Africa in improving their B-BBEE scorecard
- Authors: Silinga, Zukiswa
- Date: 2018
- Subjects: Affirmative action programs -- South Africa , Business enterprises, Black -- South Africa , Blacks -- South Africa -- Economic conditions , Employee empowerment -- South Africa , South Africa -- Economic policy
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10948/23208 , vital:30455
- Description: This research is born out of the realisation of the unique challenges that the Broad-Based Black Economic Empowerment (B-BBEE) policy required from the private sector in South Africa, with Enterprise and Supplier Development (ESD) being one of the components of the B-BBEE’s economic empowerment strategy. Over the years, the B-BBEE’s role has been one of ensuring that economic empowerment of historically disadvantaged individuals was addressed. The role of the B-BBEE policy is described as the framework that targets the reform of the economy, reduction of poverty and inequality and empowerment of those individuals that were historically disadvantaged (Patel & Graham, 2012, p. 194). The automotive industry is South Africa’s most important and largest sector, making a great contribution to the country’s GDP. It is responsible for the employment of many people in the country, including employment in the component manufacturers and tyre industry. With these linkages throughout the economy, the government has identified the automotive industry as a vital growth sector. Government is certain that this sector will address one of the major challenges for economic growth in South Africa, which is unemployment. In the year 2015, the B-BBEE Act was amended with new compliance requirements and this changed the B-BBEE rating of Mercedes Benz South Africa (MBSA), resulting in a reduction of the company’s rating. The changes to the standard, particularly the ownership component, resulted in challenges for multinational companies such as MBSA, and an opportunity to improve the rating was identified in the ESD component sector. If these new compliance requirements were not addressed by MBSA, a predictable reduction in B-BBEE status would occur, resulting in a loss of business with government and provision of government incentives. The objective of this research study was to analyse the role that ESD plays within MBSA in improving their B-BBEE scorecard, as part of its overall B-BBEE strategy. This study was sculpted on the concept that the role of ESD at MBSA is related to (a) preferential procurement, (b) skills transfer, and (c) mentoring and a detailed literature review was conducted for these variables as well as for ESD. In testing the above research objective, the researcher utilised statistical analysis methods to reach a conclusion with regard to the relationship of ESD to these variables. A positivistic research paradigm (quantitative) was selected in order to test the objective by using hypothesis testing. An empirical study was undertaken by means of a survey with a questionnaire utilised as a data collecting tool and distributed using the supplier database of MBSA. The aim of the questionnaire was to validate the outcomes obtained from the theoretical overview. Out of a sample of 116 respondents employed at the suppliers, only 92 responses were received, thus representing a 79% response rate, which is considered acceptable. The key findings of the study indicated that preferential procurement, skills development and mentoring play a significant role in the promotion of ESD. Preferential procurement indicated a stronger association than the other variables, and thus it was recommended that MBSA place importance on this variable. Based on these findings, recommendations were made to the management of MBSA in an effort to improve the ESD component of the B-BBEE score of the company. As a way of addressing some of the challenges automotive manufacturers face, suggestions for future research were made.
- Full Text:
- Date Issued: 2018
- Authors: Silinga, Zukiswa
- Date: 2018
- Subjects: Affirmative action programs -- South Africa , Business enterprises, Black -- South Africa , Blacks -- South Africa -- Economic conditions , Employee empowerment -- South Africa , South Africa -- Economic policy
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10948/23208 , vital:30455
- Description: This research is born out of the realisation of the unique challenges that the Broad-Based Black Economic Empowerment (B-BBEE) policy required from the private sector in South Africa, with Enterprise and Supplier Development (ESD) being one of the components of the B-BBEE’s economic empowerment strategy. Over the years, the B-BBEE’s role has been one of ensuring that economic empowerment of historically disadvantaged individuals was addressed. The role of the B-BBEE policy is described as the framework that targets the reform of the economy, reduction of poverty and inequality and empowerment of those individuals that were historically disadvantaged (Patel & Graham, 2012, p. 194). The automotive industry is South Africa’s most important and largest sector, making a great contribution to the country’s GDP. It is responsible for the employment of many people in the country, including employment in the component manufacturers and tyre industry. With these linkages throughout the economy, the government has identified the automotive industry as a vital growth sector. Government is certain that this sector will address one of the major challenges for economic growth in South Africa, which is unemployment. In the year 2015, the B-BBEE Act was amended with new compliance requirements and this changed the B-BBEE rating of Mercedes Benz South Africa (MBSA), resulting in a reduction of the company’s rating. The changes to the standard, particularly the ownership component, resulted in challenges for multinational companies such as MBSA, and an opportunity to improve the rating was identified in the ESD component sector. If these new compliance requirements were not addressed by MBSA, a predictable reduction in B-BBEE status would occur, resulting in a loss of business with government and provision of government incentives. The objective of this research study was to analyse the role that ESD plays within MBSA in improving their B-BBEE scorecard, as part of its overall B-BBEE strategy. This study was sculpted on the concept that the role of ESD at MBSA is related to (a) preferential procurement, (b) skills transfer, and (c) mentoring and a detailed literature review was conducted for these variables as well as for ESD. In testing the above research objective, the researcher utilised statistical analysis methods to reach a conclusion with regard to the relationship of ESD to these variables. A positivistic research paradigm (quantitative) was selected in order to test the objective by using hypothesis testing. An empirical study was undertaken by means of a survey with a questionnaire utilised as a data collecting tool and distributed using the supplier database of MBSA. The aim of the questionnaire was to validate the outcomes obtained from the theoretical overview. Out of a sample of 116 respondents employed at the suppliers, only 92 responses were received, thus representing a 79% response rate, which is considered acceptable. The key findings of the study indicated that preferential procurement, skills development and mentoring play a significant role in the promotion of ESD. Preferential procurement indicated a stronger association than the other variables, and thus it was recommended that MBSA place importance on this variable. Based on these findings, recommendations were made to the management of MBSA in an effort to improve the ESD component of the B-BBEE score of the company. As a way of addressing some of the challenges automotive manufacturers face, suggestions for future research were made.
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- Date Issued: 2018