Macroeconomic convergence within SADC : implications for the formation of a regional monetary union
- Authors: Johns, Michael Ryan
- Date: 2009
- Subjects: Southern African Development Community , Economic and Monetary Union , Common Monetary Area (Organization) , Economic policy -- Africa, Southern , Monetary policy -- Africa, Southern , Monetary unions , Macroeconomics
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1023 , http://hdl.handle.net/10962/d1002758 , Southern African Development Community , Economic and Monetary Union , Common Monetary Area (Organization) , Economic policy -- Africa, Southern , Monetary policy -- Africa, Southern , Monetary unions , Macroeconomics
- Description: Given the growing effect that globalisation and integration has had upon economies and regions, the process of monetary union has become an increasingly topical issue in economic policy debates. This has been driven in part by the experience and successes of the European Monetary Union (EMU), which is widely perceived as beneficial to member countries. The Southern African Development Community (SADC) is an example of a group of countries that has realised that there are benefits that may arise from economic integration. This paper makes use of an interest-rate pass through model to investigate whether the pass-through of monetary policy transmission in ten SADC countries has become more similar between January 1990 and December 2007 using monthly interest rate data. This is done to determine the extent of macroeconomic convergence that prevails within SADC, and consequently establish whether the formation of a regional monetary union is feasible. The results of the empirical pass-through model were robust and show that there are certain countries that have a more efficient and similar monetary transmission process than others. In particular, the countries that form the Common Monetary Area (CMA) and the Southern African Customs Union (SACU) tend to show evidence of convergence in monetary policy transmission, especially since 2000. In addition, from analysis of the long-run pass-through, the results reveal that there is evidence that Malawi and Zambia have shown signs of convergence toward the countries that form the CMA and SACU, in terms of monetary policy transmission. The study concludes that a SADC wide monetary union is currently not feasible based on the evidence provided from the results of the pass-through analysis. Despite this, it can be tentatively suggested that the CMA may be expanded to include Botswana, Malawi and Zambia.
- Full Text:
- Authors: Johns, Michael Ryan
- Date: 2009
- Subjects: Southern African Development Community , Economic and Monetary Union , Common Monetary Area (Organization) , Economic policy -- Africa, Southern , Monetary policy -- Africa, Southern , Monetary unions , Macroeconomics
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1023 , http://hdl.handle.net/10962/d1002758 , Southern African Development Community , Economic and Monetary Union , Common Monetary Area (Organization) , Economic policy -- Africa, Southern , Monetary policy -- Africa, Southern , Monetary unions , Macroeconomics
- Description: Given the growing effect that globalisation and integration has had upon economies and regions, the process of monetary union has become an increasingly topical issue in economic policy debates. This has been driven in part by the experience and successes of the European Monetary Union (EMU), which is widely perceived as beneficial to member countries. The Southern African Development Community (SADC) is an example of a group of countries that has realised that there are benefits that may arise from economic integration. This paper makes use of an interest-rate pass through model to investigate whether the pass-through of monetary policy transmission in ten SADC countries has become more similar between January 1990 and December 2007 using monthly interest rate data. This is done to determine the extent of macroeconomic convergence that prevails within SADC, and consequently establish whether the formation of a regional monetary union is feasible. The results of the empirical pass-through model were robust and show that there are certain countries that have a more efficient and similar monetary transmission process than others. In particular, the countries that form the Common Monetary Area (CMA) and the Southern African Customs Union (SACU) tend to show evidence of convergence in monetary policy transmission, especially since 2000. In addition, from analysis of the long-run pass-through, the results reveal that there is evidence that Malawi and Zambia have shown signs of convergence toward the countries that form the CMA and SACU, in terms of monetary policy transmission. The study concludes that a SADC wide monetary union is currently not feasible based on the evidence provided from the results of the pass-through analysis. Despite this, it can be tentatively suggested that the CMA may be expanded to include Botswana, Malawi and Zambia.
- Full Text:
Security community building? : an assessment of Southern African regional integration in the post-apartheid era
- Authors: Lekhooa, Tumo
- Date: 2006
- Subjects: South Africa -- Politics and government -- 1994- , Africa, Southern -- Economic integration , National security -- Africa, Southern , Political stability -- Africa, Southern , Southern African Development Community
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:2844 , http://hdl.handle.net/10962/d1005958 , South Africa -- Politics and government -- 1994- , Africa, Southern -- Economic integration , National security -- Africa, Southern , Political stability -- Africa, Southern , Southern African Development Community
- Description: The thesis traces Southern African security dimensions from the Cold War and the period of apartheid in South Africa to the post-apartheid era. It makes an attempt to investigate the prospects of Southern Africa becoming a security community and the processes and practices underlying these efforts. Using the constructivist theory approach to international relations, the thesis argues that the preoccupation with principles of sovereignty and non-interference, a lack of political will and the absence of common values that could help SADC institute binding rules and decision-making are the main blocks that prevent the region from asserting itself as a security community. All these militate against the idea of mutual accountability among SADC member states and have a negative impact on the institutional and functional capacity of SADC. This also prevents SADC from dealing with the emerging non-military human security threats in the region. In consideration of this, the thesis argues that the idea of security community building in Southern Africa remains not only a regional issue, but also requires the involvement of extra-regional actors.
- Full Text:
- Authors: Lekhooa, Tumo
- Date: 2006
- Subjects: South Africa -- Politics and government -- 1994- , Africa, Southern -- Economic integration , National security -- Africa, Southern , Political stability -- Africa, Southern , Southern African Development Community
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:2844 , http://hdl.handle.net/10962/d1005958 , South Africa -- Politics and government -- 1994- , Africa, Southern -- Economic integration , National security -- Africa, Southern , Political stability -- Africa, Southern , Southern African Development Community
- Description: The thesis traces Southern African security dimensions from the Cold War and the period of apartheid in South Africa to the post-apartheid era. It makes an attempt to investigate the prospects of Southern Africa becoming a security community and the processes and practices underlying these efforts. Using the constructivist theory approach to international relations, the thesis argues that the preoccupation with principles of sovereignty and non-interference, a lack of political will and the absence of common values that could help SADC institute binding rules and decision-making are the main blocks that prevent the region from asserting itself as a security community. All these militate against the idea of mutual accountability among SADC member states and have a negative impact on the institutional and functional capacity of SADC. This also prevents SADC from dealing with the emerging non-military human security threats in the region. In consideration of this, the thesis argues that the idea of security community building in Southern Africa remains not only a regional issue, but also requires the involvement of extra-regional actors.
- Full Text:
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:
- 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:
The nature of economic integration and co-operation within the South African region and a survey of economic benefits to member states
- Authors: Mutambara, Tsitsi Effie
- Date: 2001
- Subjects: Africa, Southern -- Economic integration , Southern African Development Community
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:938 , http://hdl.handle.net/10962/d1002671 , Africa, Southern -- Economic integration , Southern African Development Community
- Description: The transformation of SADCC into the Southern African Development Community (SADC) has paved the way towards closer regional economic integration in southern Africa. The regional grouping no longer only focuses on sectoral cooperation, but is steadily moving towards increased cooperation in trade development and promotion, industrial development and the diversification of national economies, with the aim of increasing regional economic integration. A free trade area ranks second lowest in the steps towards the highest levels of economic integration. Thus, the signing of the SADC Trade Protocol, which serves to pave way for a SADC Free Trade Area, has initiated steps to facilitate and promote the formal economic integration of all countries in the southern African region. It has been noted that at various periods, the region has adopted a variety of approaches to integration. As such, the present study reviews the different approaches to integration, namely the market integration model, the neo-functional integration model, the development integration model and the theory of common markets. Since the essential question with which this thesis is concerned is whether, and to what extent, the benefits expected from SADC and SACU in terms of their aims and objectives have accrued to member states, an insight into the expected benefits arising from the application of each theoretical framework can help to facilitate an evaluation of the benefits which the countries have enjoyed from these two regional groupings. The thesis highlights that throughout the ten years during which the original SADCC was in place, it based its approach to regional integration on the neo-functional and development integration models, although the former tended to be more dominant. With the regional grouping transforming into SADC, the market integration model was adopted, even though the grouping still had features of the aforementioned approaches. The relevance of the three approaches can be seen in: (i) the continued importance of SADC's sectoral projects, particularly in the field of transport and communication: (ii) continued attempts to put in place a suitable regional) industrial development strategy and implement policies to attract foreign investment; and (iii) the signing of the SADCC Trade Protocol to facilitate the implementation of a free trade area. The thesis argues that member states have enjoyed considerable economic benefits from the SADC sectoral projects. However, in some cases, members have lost out on potential benefits as a result of projects failing to be implemented or completed, mainly due to inadequate funding. Further, delays and inefficiencies at some border posts constitute significant non-tariff barriers which could be a hindrance to intra-regional trade. Progress towards diversification of exports has been limited as the region still relies mostly on the export of the traditional agricultural and mineral raw materials. While all countries have made efforts to diversify their industrial bases, attempts at implementing a meaningful regional industrial development strategy have met with limited success. Intra-regional trade has been increasing over the years. Since the SADC Trade Protocol only came into effect in September 2000, the increased levels of trade integration in the region appear to have been a result of the bilateral trade agreements between countries, and the customs union between South Africa and Botswana, Lesotho, Namibia and Swaziland (BLNS), as well as the structural adjustment programmes and the significant growth experienced in some countries. Outstanding intra-regional trade volumes have been experienced within SACU. In trade terms, benefits have varied between member states, with the more powerful countries like South Africa, Zimbabwe and Mauritius experiencing substantial trade surpluses vis-a.-vis their trade, partners. Countries with bilateral preferential trade agreements have also benefited more due to increased access into each other's markets compared to those without or with bilateral trade agreements of an MFN nature. However, it is important to note that, despite the increase in trade integration in the region, southern Africa is still heavily dependent on the rest of the world for its export markets and as its source of imports. The study finds that intra-industry trade (IIT) exists within the region and, in a number of sectors, high IIT indices are recorded;--although some such sectors do not display significant trade - voIumes. The opening of the region through the implementation of the SADC FTA could promote the expansion of IIT .as-the free trade area )'Till create an enlarged regional market. As such, SADC could benefit from dynamic effects such as scale economies in production and marketing, with member states working on having complementary production structures so as to facilitate specialisation. The thesis argues that the potential for intra-regional trade expansion in the SADC FT A also exists bearing in mind trade complementarity between countries as well as revealed comparative advantages in different sectors. One of the benefits which have accrued to the region as a result of facilitating and promoting greater cooperation and deepening the integration process has been an expansion in cross border investment. The study finds that the 1990s witnessed a gradual increase in cross border investment to take advantage of investment opportunities in member states. South Africa has become the primary source of foreign direct investment flows to a number of SADC countries, with mergers and acquisitions being the dominant mode of its foreign direct investment. Cross border investment helps in supplementing low domestic savings, thus providing substantial parts of the shortfall in capital needed to finance economic growth and development. It can thus promote development in the industrial sector, transfer of capital, skills and technology, and development of infrastructure. Many SADC countries are unable to compete effectively due to lack of export supply capacity. The thesis suggests that capitalising on investment by South African firms could enhance local supply capabilities and raise export competitiveness. The study concludes that for market integration to succeed in the SADC region, the neofunctional and development integration approaches need to be actively pursued simultaneously, particularly with respect to infrastructural and industrial development.
- Full Text:
- Authors: Mutambara, Tsitsi Effie
- Date: 2001
- Subjects: Africa, Southern -- Economic integration , Southern African Development Community
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:938 , http://hdl.handle.net/10962/d1002671 , Africa, Southern -- Economic integration , Southern African Development Community
- Description: The transformation of SADCC into the Southern African Development Community (SADC) has paved the way towards closer regional economic integration in southern Africa. The regional grouping no longer only focuses on sectoral cooperation, but is steadily moving towards increased cooperation in trade development and promotion, industrial development and the diversification of national economies, with the aim of increasing regional economic integration. A free trade area ranks second lowest in the steps towards the highest levels of economic integration. Thus, the signing of the SADC Trade Protocol, which serves to pave way for a SADC Free Trade Area, has initiated steps to facilitate and promote the formal economic integration of all countries in the southern African region. It has been noted that at various periods, the region has adopted a variety of approaches to integration. As such, the present study reviews the different approaches to integration, namely the market integration model, the neo-functional integration model, the development integration model and the theory of common markets. Since the essential question with which this thesis is concerned is whether, and to what extent, the benefits expected from SADC and SACU in terms of their aims and objectives have accrued to member states, an insight into the expected benefits arising from the application of each theoretical framework can help to facilitate an evaluation of the benefits which the countries have enjoyed from these two regional groupings. The thesis highlights that throughout the ten years during which the original SADCC was in place, it based its approach to regional integration on the neo-functional and development integration models, although the former tended to be more dominant. With the regional grouping transforming into SADC, the market integration model was adopted, even though the grouping still had features of the aforementioned approaches. The relevance of the three approaches can be seen in: (i) the continued importance of SADC's sectoral projects, particularly in the field of transport and communication: (ii) continued attempts to put in place a suitable regional) industrial development strategy and implement policies to attract foreign investment; and (iii) the signing of the SADCC Trade Protocol to facilitate the implementation of a free trade area. The thesis argues that member states have enjoyed considerable economic benefits from the SADC sectoral projects. However, in some cases, members have lost out on potential benefits as a result of projects failing to be implemented or completed, mainly due to inadequate funding. Further, delays and inefficiencies at some border posts constitute significant non-tariff barriers which could be a hindrance to intra-regional trade. Progress towards diversification of exports has been limited as the region still relies mostly on the export of the traditional agricultural and mineral raw materials. While all countries have made efforts to diversify their industrial bases, attempts at implementing a meaningful regional industrial development strategy have met with limited success. Intra-regional trade has been increasing over the years. Since the SADC Trade Protocol only came into effect in September 2000, the increased levels of trade integration in the region appear to have been a result of the bilateral trade agreements between countries, and the customs union between South Africa and Botswana, Lesotho, Namibia and Swaziland (BLNS), as well as the structural adjustment programmes and the significant growth experienced in some countries. Outstanding intra-regional trade volumes have been experienced within SACU. In trade terms, benefits have varied between member states, with the more powerful countries like South Africa, Zimbabwe and Mauritius experiencing substantial trade surpluses vis-a.-vis their trade, partners. Countries with bilateral preferential trade agreements have also benefited more due to increased access into each other's markets compared to those without or with bilateral trade agreements of an MFN nature. However, it is important to note that, despite the increase in trade integration in the region, southern Africa is still heavily dependent on the rest of the world for its export markets and as its source of imports. The study finds that intra-industry trade (IIT) exists within the region and, in a number of sectors, high IIT indices are recorded;--although some such sectors do not display significant trade - voIumes. The opening of the region through the implementation of the SADC FTA could promote the expansion of IIT .as-the free trade area )'Till create an enlarged regional market. As such, SADC could benefit from dynamic effects such as scale economies in production and marketing, with member states working on having complementary production structures so as to facilitate specialisation. The thesis argues that the potential for intra-regional trade expansion in the SADC FT A also exists bearing in mind trade complementarity between countries as well as revealed comparative advantages in different sectors. One of the benefits which have accrued to the region as a result of facilitating and promoting greater cooperation and deepening the integration process has been an expansion in cross border investment. The study finds that the 1990s witnessed a gradual increase in cross border investment to take advantage of investment opportunities in member states. South Africa has become the primary source of foreign direct investment flows to a number of SADC countries, with mergers and acquisitions being the dominant mode of its foreign direct investment. Cross border investment helps in supplementing low domestic savings, thus providing substantial parts of the shortfall in capital needed to finance economic growth and development. It can thus promote development in the industrial sector, transfer of capital, skills and technology, and development of infrastructure. Many SADC countries are unable to compete effectively due to lack of export supply capacity. The thesis suggests that capitalising on investment by South African firms could enhance local supply capabilities and raise export competitiveness. The study concludes that for market integration to succeed in the SADC region, the neofunctional and development integration approaches need to be actively pursued simultaneously, particularly with respect to infrastructural and industrial development.
- Full Text:
Southern African Development Community foreign policy behaviour: the case of trade with external actors
- Authors: Tebu, Perminus Waithaka
- Date: 2000
- Subjects: Southern African Development Community , International trade , Africa, Southern -- Foreign relations
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:2834 , http://hdl.handle.net/10962/d1003044 , Southern African Development Community , International trade , Africa, Southern -- Foreign relations
- Description: This thesis is structured around two main and interwoven assumptions operating at two levels. On the one level the external dimension of security threat in Southern Africa is assumed to be the most critical factor for regional renewal and stability. It hinges on pertinent regional issues such as negative trade balances, economic dependence, poverty, unemployment, poor economic growth rates and so forth. The corollary of this assumption is that within the operative framework of SADC, Southern African states are assumed capable of effectively integrating their economies through trade and related arrangements with dominant external actors in the highly competitive global economy. The European Union (EU) and the United States (US) are used as the focal points for illumination. A structured interaction between SADC and the EU within a revised North-South framework of interaction is hypothesized and critically examined. On the other hand, SADC-US interactions are assessed within the context of the new US Africa policy. At another level, the assumption is also made that the post-apartheid democratic state possesses both the political will and the wherewithal to provide regiol].al Leadership. This latter assumption is put to test within the framework of South Africa's regional foreign policy. Adopting an explicit regional unit of analysis, the study utilizes international regime theory as the theoretical and conceptual point of departure. The realist conception of the international system and the underlying assumptions usually considered as obstacles to international cooperation are critically examined in the context of the post-Cold War expanded security agenda. Regime theory is used to provide insight on the motivations that lead states to cooperate in situations of mutual dilemma by institutionalizing patterns of interaction at the regional and international systemic levels. Interstate economic relations at these levels are explained as state actions that are influenced by certain norms and that such norm-governed behaviour is wholly consistent with the pursuit of national interest. Application of the theory explains why such foreign policy behaviour of states is particularly relevant in the post-Cold War era. The thesis has argued that SADC states are capable of conducting a coordinated trade foreign policy in which regional positions are elaborated and adopted. It is argued further that a regional capacity to institute trade and economic policies that reflect local circumstances (necessary for effective integration with the world economy) calls for strong regional developmental democracies in the tradition of social market economy. Regional leadership by South Africa is considered indispensable where Sbuth Africa must find a sustainable balance between its national and regional interests.
- Full Text:
- Authors: Tebu, Perminus Waithaka
- Date: 2000
- Subjects: Southern African Development Community , International trade , Africa, Southern -- Foreign relations
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:2834 , http://hdl.handle.net/10962/d1003044 , Southern African Development Community , International trade , Africa, Southern -- Foreign relations
- Description: This thesis is structured around two main and interwoven assumptions operating at two levels. On the one level the external dimension of security threat in Southern Africa is assumed to be the most critical factor for regional renewal and stability. It hinges on pertinent regional issues such as negative trade balances, economic dependence, poverty, unemployment, poor economic growth rates and so forth. The corollary of this assumption is that within the operative framework of SADC, Southern African states are assumed capable of effectively integrating their economies through trade and related arrangements with dominant external actors in the highly competitive global economy. The European Union (EU) and the United States (US) are used as the focal points for illumination. A structured interaction between SADC and the EU within a revised North-South framework of interaction is hypothesized and critically examined. On the other hand, SADC-US interactions are assessed within the context of the new US Africa policy. At another level, the assumption is also made that the post-apartheid democratic state possesses both the political will and the wherewithal to provide regiol].al Leadership. This latter assumption is put to test within the framework of South Africa's regional foreign policy. Adopting an explicit regional unit of analysis, the study utilizes international regime theory as the theoretical and conceptual point of departure. The realist conception of the international system and the underlying assumptions usually considered as obstacles to international cooperation are critically examined in the context of the post-Cold War expanded security agenda. Regime theory is used to provide insight on the motivations that lead states to cooperate in situations of mutual dilemma by institutionalizing patterns of interaction at the regional and international systemic levels. Interstate economic relations at these levels are explained as state actions that are influenced by certain norms and that such norm-governed behaviour is wholly consistent with the pursuit of national interest. Application of the theory explains why such foreign policy behaviour of states is particularly relevant in the post-Cold War era. The thesis has argued that SADC states are capable of conducting a coordinated trade foreign policy in which regional positions are elaborated and adopted. It is argued further that a regional capacity to institute trade and economic policies that reflect local circumstances (necessary for effective integration with the world economy) calls for strong regional developmental democracies in the tradition of social market economy. Regional leadership by South Africa is considered indispensable where Sbuth Africa must find a sustainable balance between its national and regional interests.
- Full Text:
The theoretical and empirical analysis of trade integration among unequal partners : implications for the Southern African Development Community
- Authors: Cattaneo, Nicolette Sylvie
- Date: 1998
- Subjects: Southern African Development Community , Customs unions , Africa, Southern -- Foreign economic relations , Africa, Southern -- Economic integration
- Language: English
- Type: Thesis , Masters , MSc
- Identifier: vital:1008 , http://hdl.handle.net/10962/d1002743 , Southern African Development Community , Customs unions , Africa, Southern -- Foreign economic relations , Africa, Southern -- Economic integration
- Description: The re-acceptance of South Africa into the international community has cleared the path for the closer integration of South Africa with its neighbours in a broader southern African regional union. In particular, the countries of the Southern African Development Community {SADC), which South Africa joined in August 1994, have committed themselves to the formation of a free trade area (FTA) over an eight-year period. The most likely impediment to this process is the perception of a highly unequal distribution of the economic gains and losses of such an arrangement. This reflects the particular context of SADC: one of a comparatively undeveloped region, dominated by a relatively large, more industrially advanced country, which is itself small by international standards. The essential question with which this study is concerned, therefore, is whether, despite the existing inequalities in the region, a FTA among SADC members could be mutually beneficial to South Africa and its partners. The thesis applies orthodox and new trade theory to the analysis of economic integration among unequal partners. Using the theoretical analysis, and with reference to empirical studies of such experience elsewhere in the world, it attempts to provide an assessment of the existing body of literature on the possible effects of a SADC FTA. In the light of this discussion, and from its own preliminary empirical analysis of the possible pattern of inter-sectoral versus intra-sectoral specialisation which may result on union, the study suggests ways in which a fuller evaluation of the welfare implications of a southern African FTA may be achieved. The thesis argues that the orthodox theory based on perfect competition provides an insufficient framework for the analysis of the likely effects of a SADC FT A. It finds that, firstly, in an alternative analytical framework which retains the assumption of perfect competition, there may be other criteria for judging the success of a regional union that are neglected by orthodoxy, particularly in the case of developing countries. Secondly, the new trade theory based on imperfect competition and product differentiation provides useful insights into the possible effects of a regional union among countries at unequal levels of development. The formal extension of this body of literature to the theory of economic integration is clearly called for. It is found, however, that neither orthodox customs union theory, nor its suggested alternatives and extensions, enable one to conclude, a priori, that the formation of a FTA in the southern African region could not be beneficial to both South Africa and its smaller partners. Further, the present empirical studies on SADC do not take account of the full range of factors necessary for a complete welfare assessment of the possible effects. Since the outcome of integration depends on the empirical circumstances of the particular case, and since the information necessary for a comprehensive welfare evaluation is not currently available, the study concludes that the countries of the region have committed themselves to a FTA without any definite knowledge of its likely effects.
- Full Text:
- Authors: Cattaneo, Nicolette Sylvie
- Date: 1998
- Subjects: Southern African Development Community , Customs unions , Africa, Southern -- Foreign economic relations , Africa, Southern -- Economic integration
- Language: English
- Type: Thesis , Masters , MSc
- Identifier: vital:1008 , http://hdl.handle.net/10962/d1002743 , Southern African Development Community , Customs unions , Africa, Southern -- Foreign economic relations , Africa, Southern -- Economic integration
- Description: The re-acceptance of South Africa into the international community has cleared the path for the closer integration of South Africa with its neighbours in a broader southern African regional union. In particular, the countries of the Southern African Development Community {SADC), which South Africa joined in August 1994, have committed themselves to the formation of a free trade area (FTA) over an eight-year period. The most likely impediment to this process is the perception of a highly unequal distribution of the economic gains and losses of such an arrangement. This reflects the particular context of SADC: one of a comparatively undeveloped region, dominated by a relatively large, more industrially advanced country, which is itself small by international standards. The essential question with which this study is concerned, therefore, is whether, despite the existing inequalities in the region, a FTA among SADC members could be mutually beneficial to South Africa and its partners. The thesis applies orthodox and new trade theory to the analysis of economic integration among unequal partners. Using the theoretical analysis, and with reference to empirical studies of such experience elsewhere in the world, it attempts to provide an assessment of the existing body of literature on the possible effects of a SADC FTA. In the light of this discussion, and from its own preliminary empirical analysis of the possible pattern of inter-sectoral versus intra-sectoral specialisation which may result on union, the study suggests ways in which a fuller evaluation of the welfare implications of a southern African FTA may be achieved. The thesis argues that the orthodox theory based on perfect competition provides an insufficient framework for the analysis of the likely effects of a SADC FT A. It finds that, firstly, in an alternative analytical framework which retains the assumption of perfect competition, there may be other criteria for judging the success of a regional union that are neglected by orthodoxy, particularly in the case of developing countries. Secondly, the new trade theory based on imperfect competition and product differentiation provides useful insights into the possible effects of a regional union among countries at unequal levels of development. The formal extension of this body of literature to the theory of economic integration is clearly called for. It is found, however, that neither orthodox customs union theory, nor its suggested alternatives and extensions, enable one to conclude, a priori, that the formation of a FTA in the southern African region could not be beneficial to both South Africa and its smaller partners. Further, the present empirical studies on SADC do not take account of the full range of factors necessary for a complete welfare assessment of the possible effects. Since the outcome of integration depends on the empirical circumstances of the particular case, and since the information necessary for a comprehensive welfare evaluation is not currently available, the study concludes that the countries of the region have committed themselves to a FTA without any definite knowledge of its likely effects.
- Full Text:
Towards a developed regional order: which way forward southern Africa?
- Authors: Blaauw, Abraham Lesley
- Date: 1997
- Subjects: Common Market for Eastern and Southern Africa , Regional planning -- Africa, Southern , Regional planning -- South Africa , Southern African Customs Union , Southern African Development Community , Africa, Southern -- Economic conditions , Africa, Southern -- Politics and government -- 1975-1994
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:2760 , http://hdl.handle.net/10962/d1002970 , Common Market for Eastern and Southern Africa , Regional planning -- Africa, Southern , Regional planning -- South Africa , Southern African Customs Union , Southern African Development Community , Africa, Southern -- Economic conditions , Africa, Southern -- Politics and government -- 1975-1994
- Description: The regionalisation of politics on a global scale, Call be seen as one of the defining features of contemporary international relations. Given this phenomenon, the tasks which confronted this thesis, was to consider the conditions and requirements necessary within the Southern African region to build an all-embracing developed regional order. The urgency with which the latter task should be undertaken, is premised on an increased realisation that the region, and indeed the continent as a whole, are becoming of lesser significance in international affairs. However, a number of impediments will have to be overcome, before the goal of a developed regional order can be achieved, which will contribute to lasting security in the region. Foremost amongst many issues, is how to employ the approaches to integration, in attempting to explain how the goal of a developed order should be achieved. A second problem which this thesis was confronted with, relates to which organisation shoulO be' considered the best vehicle, to drive the integration process forward- COMESA, SACU or SADC. The decision take SADC as the organisation to drive the integration process forward, is premised on a number of factors. Amongst many, it qualifies in geographical terms as a region, the historical linkages of the countries of the region (based on their fight against apartheid, division of labour, etc.), serves as a basis for building a sense of community. Thirdly its institutions can be developed to achieve the goal of an all-embracing regional order. Lastly and most importantly, SADC realises that regional integration will remain unattainable without the involvement of the peoples of Southern Africa. The identification of the organisation to drive the integration process forward, serves to bolster moves towards a maximalist order. However, significant changes in the structure and institutions of SADC is necessary, before it can be considered an all-embracing and developed regional order. Not suprisingly, therefore, we have witness a number of institutional changes to the SADC structures. Amongst many, the establishment of the Organ on Politics, Defence and Security , the signing of the SADC Trade Facilitation Protocol, and the commitment to democracy and a human rights culture, are most significant and will, it is hoped, provide the building-blocks for deeper integration in Southern Africa. Apart from the above, which occur between and among the states of the region, steps are underway between and among the agents of civil society to work closely with each other, to establish a regional civil society. Most notably, the establishment of a media society for Southern Africa, the calls by COSATU for a Social Charter with a regional flavour, the establishment of environmental and human rights networks, and the support for the Gay and Lesbian Movement of Zimbabwe (GALZ), represent landmarks, in the search for a developed regional order. However, the reluctance of the governments of the Southern African countries, to consult with the NGOs, before the adoption of the Organ Politics, clearly bears testimony to their present inability to take the necessary steps needed to move from a minimalist to a maximalist conception of regional organisation. The suggestion of this thesis is that the move-away from minimalism to maximalism can be facilitated by the development of a political centre-around which both governments and NGO activities can be articulated, since both are primarily concerned with the security and welfare of the Southern African region.
- Full Text:
- Authors: Blaauw, Abraham Lesley
- Date: 1997
- Subjects: Common Market for Eastern and Southern Africa , Regional planning -- Africa, Southern , Regional planning -- South Africa , Southern African Customs Union , Southern African Development Community , Africa, Southern -- Economic conditions , Africa, Southern -- Politics and government -- 1975-1994
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:2760 , http://hdl.handle.net/10962/d1002970 , Common Market for Eastern and Southern Africa , Regional planning -- Africa, Southern , Regional planning -- South Africa , Southern African Customs Union , Southern African Development Community , Africa, Southern -- Economic conditions , Africa, Southern -- Politics and government -- 1975-1994
- Description: The regionalisation of politics on a global scale, Call be seen as one of the defining features of contemporary international relations. Given this phenomenon, the tasks which confronted this thesis, was to consider the conditions and requirements necessary within the Southern African region to build an all-embracing developed regional order. The urgency with which the latter task should be undertaken, is premised on an increased realisation that the region, and indeed the continent as a whole, are becoming of lesser significance in international affairs. However, a number of impediments will have to be overcome, before the goal of a developed regional order can be achieved, which will contribute to lasting security in the region. Foremost amongst many issues, is how to employ the approaches to integration, in attempting to explain how the goal of a developed order should be achieved. A second problem which this thesis was confronted with, relates to which organisation shoulO be' considered the best vehicle, to drive the integration process forward- COMESA, SACU or SADC. The decision take SADC as the organisation to drive the integration process forward, is premised on a number of factors. Amongst many, it qualifies in geographical terms as a region, the historical linkages of the countries of the region (based on their fight against apartheid, division of labour, etc.), serves as a basis for building a sense of community. Thirdly its institutions can be developed to achieve the goal of an all-embracing regional order. Lastly and most importantly, SADC realises that regional integration will remain unattainable without the involvement of the peoples of Southern Africa. The identification of the organisation to drive the integration process forward, serves to bolster moves towards a maximalist order. However, significant changes in the structure and institutions of SADC is necessary, before it can be considered an all-embracing and developed regional order. Not suprisingly, therefore, we have witness a number of institutional changes to the SADC structures. Amongst many, the establishment of the Organ on Politics, Defence and Security , the signing of the SADC Trade Facilitation Protocol, and the commitment to democracy and a human rights culture, are most significant and will, it is hoped, provide the building-blocks for deeper integration in Southern Africa. Apart from the above, which occur between and among the states of the region, steps are underway between and among the agents of civil society to work closely with each other, to establish a regional civil society. Most notably, the establishment of a media society for Southern Africa, the calls by COSATU for a Social Charter with a regional flavour, the establishment of environmental and human rights networks, and the support for the Gay and Lesbian Movement of Zimbabwe (GALZ), represent landmarks, in the search for a developed regional order. However, the reluctance of the governments of the Southern African countries, to consult with the NGOs, before the adoption of the Organ Politics, clearly bears testimony to their present inability to take the necessary steps needed to move from a minimalist to a maximalist conception of regional organisation. The suggestion of this thesis is that the move-away from minimalism to maximalism can be facilitated by the development of a political centre-around which both governments and NGO activities can be articulated, since both are primarily concerned with the security and welfare of the Southern African region.
- Full Text:
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