The economic potential of small towns in the Eastern Cape Midlands
- Authors: Reynolds, Kian Andrew
- Date: 2009 , 2013-07-15
- Subjects: Small cities -- South Africa -- Eastern Cape Economic geography -- South Africa -- Eastern Cape Economic development -- South Africa -- Eastern Cape Rural development -- South Africa -- Eastern Cape Local government -- South Africa -- Eastern Cape Agriculture -- Economic aspects -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:1057 , http://hdl.handle.net/10962/d1007492
- Description: Small town economic decline has been experienced in many countries across the globe and can be explained through Geographical Economics, particularly the New Economic Geography, which suggests that agglomeration occurs as a natural outcome of high transportation and transactional costs. Yet despite the economic rationale behind their decline it is not an economic inevitability and there is evidence of towns in the United States, New Zealand and Canada that have reversed their economic fortunes. [n South Africa approximately 5 million people live in the 500 small towns and many more live in their rural hinterlands where povelty levels are extremely high within a national context. Within this context the thesis examines the current economic status and potential growth prospects of small towns in the Eastern Cape Midlands in South Africa in order to identify critical growth dri vers within small town economies. Five small towns were selected for the study via means of a purposive sample and were subjected to two regional modelling techniques, namely Shift-Share Analysis and Economic Base Theory to determine their current economic trends and past growth patterns, while a Social Accounting Matrix was utilised to identify important sectoral linkages, potential avenues for growth and evident leakages within small town economies. The sampled towns experienced negative economic growth trends between 1996 and 200 I, the primary loss in employment being accounted for by regional economic changes as opposed to national or industrial trends. The decline was more severely felt in primary/industrial sectors of the economy; evidence was found that manufacturing activities declined in all of the centres, despite the industry growing nationally. The Social Accounting Matrix highlighted strong links between the agricultural and services sectors within the national economy. Thus, considering that agriculture was identified as the primary economic driver within the region and the services sector the largest employer in all of the towns it is evident that the economic potential of the towns is to a certain extent linked to the success of agriculture in their hinterlands. Seven growth drivers, namely size, local economic development, existing markets, existing industries, infrastructure, municipal leadership and local entrepreneurs and were linked via means of a scoring framework to the sampled towns' economic potential. Whilst the results of actually determining a towns economic potential are not definitive the study does provide useful insights about the impact and potential role played by these drivers. Linked to this scoring framework and to Cook's (1971) hierarchy of places in the Eastern Cape Midlands four categories of towns were identified in the commercial falming areas and recommendations were made about appropriate developmental interventions at a municipal level, such as the need to retain local entrepreneurs and to invest in social amenities. Considering the evident need for development in rural areas the study provides critical insights into how to prioritise development strategies within small rural towns in commercial farming areas. In addition it would enable municipalities to critically reflect on their municipal Local Economic Development strategies and the relevance within the context of small towns. , KMBT_363 , Adobe Acrobat 9.54 Paper Capture Plug-in
- Full Text:
- Date Issued: 2009
- Authors: Reynolds, Kian Andrew
- Date: 2009 , 2013-07-15
- Subjects: Small cities -- South Africa -- Eastern Cape Economic geography -- South Africa -- Eastern Cape Economic development -- South Africa -- Eastern Cape Rural development -- South Africa -- Eastern Cape Local government -- South Africa -- Eastern Cape Agriculture -- Economic aspects -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:1057 , http://hdl.handle.net/10962/d1007492
- Description: Small town economic decline has been experienced in many countries across the globe and can be explained through Geographical Economics, particularly the New Economic Geography, which suggests that agglomeration occurs as a natural outcome of high transportation and transactional costs. Yet despite the economic rationale behind their decline it is not an economic inevitability and there is evidence of towns in the United States, New Zealand and Canada that have reversed their economic fortunes. [n South Africa approximately 5 million people live in the 500 small towns and many more live in their rural hinterlands where povelty levels are extremely high within a national context. Within this context the thesis examines the current economic status and potential growth prospects of small towns in the Eastern Cape Midlands in South Africa in order to identify critical growth dri vers within small town economies. Five small towns were selected for the study via means of a purposive sample and were subjected to two regional modelling techniques, namely Shift-Share Analysis and Economic Base Theory to determine their current economic trends and past growth patterns, while a Social Accounting Matrix was utilised to identify important sectoral linkages, potential avenues for growth and evident leakages within small town economies. The sampled towns experienced negative economic growth trends between 1996 and 200 I, the primary loss in employment being accounted for by regional economic changes as opposed to national or industrial trends. The decline was more severely felt in primary/industrial sectors of the economy; evidence was found that manufacturing activities declined in all of the centres, despite the industry growing nationally. The Social Accounting Matrix highlighted strong links between the agricultural and services sectors within the national economy. Thus, considering that agriculture was identified as the primary economic driver within the region and the services sector the largest employer in all of the towns it is evident that the economic potential of the towns is to a certain extent linked to the success of agriculture in their hinterlands. Seven growth drivers, namely size, local economic development, existing markets, existing industries, infrastructure, municipal leadership and local entrepreneurs and were linked via means of a scoring framework to the sampled towns' economic potential. Whilst the results of actually determining a towns economic potential are not definitive the study does provide useful insights about the impact and potential role played by these drivers. Linked to this scoring framework and to Cook's (1971) hierarchy of places in the Eastern Cape Midlands four categories of towns were identified in the commercial falming areas and recommendations were made about appropriate developmental interventions at a municipal level, such as the need to retain local entrepreneurs and to invest in social amenities. Considering the evident need for development in rural areas the study provides critical insights into how to prioritise development strategies within small rural towns in commercial farming areas. In addition it would enable municipalities to critically reflect on their municipal Local Economic Development strategies and the relevance within the context of small towns. , KMBT_363 , Adobe Acrobat 9.54 Paper Capture Plug-in
- Full Text:
- Date Issued: 2009
A case for institutional investigations in economic research methods with reference to South Africa's agricultural sector
- Authors: Mbatha, Cyril
- Date: 2008
- Subjects: Economic development -- South Africa Economic development -- Research -- Methodology Agriculture -- South Africa Agriculture -- Economic aspects -- South Africa Agricultural productivity -- South Africa Agriculture -- Research -- South Africa South Africa -- Economic conditions
- Language: English
- Type: Thesis , Doctoral , PhD
- Identifier: vital:972 , http://hdl.handle.net/10962/d1002706
- Description: Economic development remains elusive for many world economies, but especially those of African countries. The current global inequalities in terms of GNP per capita and human living standards between developed and developing nations have ensured that the challenges of food insecurities are only some of the many negative experiences of underdevelopment in the African continent. Hence, delivery pressures are increasing on policy makers and researchers to provide tangible and timely economic solutions to the resilient state of underdevelopment. In the policy fights against the challenges posed by a lack of development in South Africa, the agricultural sector has in the past and continues in the present to play a central role. Such is the case because the majority of citizens rely on agricultural production activities for their livelihoods. For instance, even though the sector only contributed four percent towards the national Gross Domestic Product in 2006, in the Eastern Cape Province, more than seventy percent of the total population resided in rural areas. Moreover, in 2004 more than sixty percent of the national formal and informal employment levels were found in the sector. These economic indicators do not only reinforce the assertions that high levels of geographical and sectoral inequalities exist in the country’s economy, but they also illustrate the importance of the agricultural sector in public policy attempts, which are aimed at achieving food security alongside long-term developmental objectives. Some economists, especially the proponents of institutionalism, have argued that most of the recommendations to public policy interventions from mainstream economic research endeavours are not adequately helpful. The recommendations generally lack well considered and socially effective ideas, mainly because there remains some level of ignorance about the impacts that institutions have on economic and social systems. Some argue that this ignorance is reflected in (flawed) hedonistic and rationalist assumptions made about economic actors and in the methodological thinking of many research designs and economic analyses. The misuse of formal tools and statistical methods, for example, are some of the important factors, which have led to failures of the discipline of economics to provide effective policy solutions to problems of underdevelopment and poverty, especially in poor country environments. The thesis, having taken account of the majority of criticisms levelled against the classical and new-classical economic schools of thought, argues that the discipline as a whole lacks a paradigmatic integration of institutional and new-classical economic perspectives to offer appropriate guidelines for a methodology aimed at achieving socially responsive research outputs. The lack of this integration has resulted in a skewed selection of methods by economists, which are employed in research without a supportive and in-depth understanding of institutional and social factors. To support the thesis, a more effective and integrated framework for economic research is developed and presented with case study illustrations in a cumulative manner. The 20th century history of agricultural policies in South Africa, the agricultural and institutional case studies from the Eastern Cape Province alongside reviews of other agricultural studies are all used in presenting a case for rigorous institutional investigations in general economic research. These are also used in developing the proposed integrated framework, which aims to give guidance in developing research methods, which are more socially responsive. Having shown the usefulness of the proposed research framework, the thesis recommends that public policy interventions (at national and local levels) should aim to eliminate all types of institutions which have high associated transactional costs. The interventions should also encourage the emergence and growth of the types of institutions, which present the lowest costs to initiatives of economic development. In the primary case studies from the Eastern Cape Province, the insecurity of land tenure and the various local initiatives of business ventures are highlighted as two examples of the types of institutions, which respectively present high and low transactional costs to local initiatives of agricultural and economic development.
- Full Text:
- Date Issued: 2008
- Authors: Mbatha, Cyril
- Date: 2008
- Subjects: Economic development -- South Africa Economic development -- Research -- Methodology Agriculture -- South Africa Agriculture -- Economic aspects -- South Africa Agricultural productivity -- South Africa Agriculture -- Research -- South Africa South Africa -- Economic conditions
- Language: English
- Type: Thesis , Doctoral , PhD
- Identifier: vital:972 , http://hdl.handle.net/10962/d1002706
- Description: Economic development remains elusive for many world economies, but especially those of African countries. The current global inequalities in terms of GNP per capita and human living standards between developed and developing nations have ensured that the challenges of food insecurities are only some of the many negative experiences of underdevelopment in the African continent. Hence, delivery pressures are increasing on policy makers and researchers to provide tangible and timely economic solutions to the resilient state of underdevelopment. In the policy fights against the challenges posed by a lack of development in South Africa, the agricultural sector has in the past and continues in the present to play a central role. Such is the case because the majority of citizens rely on agricultural production activities for their livelihoods. For instance, even though the sector only contributed four percent towards the national Gross Domestic Product in 2006, in the Eastern Cape Province, more than seventy percent of the total population resided in rural areas. Moreover, in 2004 more than sixty percent of the national formal and informal employment levels were found in the sector. These economic indicators do not only reinforce the assertions that high levels of geographical and sectoral inequalities exist in the country’s economy, but they also illustrate the importance of the agricultural sector in public policy attempts, which are aimed at achieving food security alongside long-term developmental objectives. Some economists, especially the proponents of institutionalism, have argued that most of the recommendations to public policy interventions from mainstream economic research endeavours are not adequately helpful. The recommendations generally lack well considered and socially effective ideas, mainly because there remains some level of ignorance about the impacts that institutions have on economic and social systems. Some argue that this ignorance is reflected in (flawed) hedonistic and rationalist assumptions made about economic actors and in the methodological thinking of many research designs and economic analyses. The misuse of formal tools and statistical methods, for example, are some of the important factors, which have led to failures of the discipline of economics to provide effective policy solutions to problems of underdevelopment and poverty, especially in poor country environments. The thesis, having taken account of the majority of criticisms levelled against the classical and new-classical economic schools of thought, argues that the discipline as a whole lacks a paradigmatic integration of institutional and new-classical economic perspectives to offer appropriate guidelines for a methodology aimed at achieving socially responsive research outputs. The lack of this integration has resulted in a skewed selection of methods by economists, which are employed in research without a supportive and in-depth understanding of institutional and social factors. To support the thesis, a more effective and integrated framework for economic research is developed and presented with case study illustrations in a cumulative manner. The 20th century history of agricultural policies in South Africa, the agricultural and institutional case studies from the Eastern Cape Province alongside reviews of other agricultural studies are all used in presenting a case for rigorous institutional investigations in general economic research. These are also used in developing the proposed integrated framework, which aims to give guidance in developing research methods, which are more socially responsive. Having shown the usefulness of the proposed research framework, the thesis recommends that public policy interventions (at national and local levels) should aim to eliminate all types of institutions which have high associated transactional costs. The interventions should also encourage the emergence and growth of the types of institutions, which present the lowest costs to initiatives of economic development. In the primary case studies from the Eastern Cape Province, the insecurity of land tenure and the various local initiatives of business ventures are highlighted as two examples of the types of institutions, which respectively present high and low transactional costs to local initiatives of agricultural and economic development.
- Full Text:
- Date Issued: 2008
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