The primacy of illicit financial flows (IFFs) in developing countries: a comparative study analysis of South Africa and China
- Authors: Mahlaba, Asande Cikizwa
- Date: 2020
- Subjects: Money -- Developing countries , Transfer pricing -- South Africa , Developing countries -- Economic conditions , Tax evasion -- China , Tax evasion -- South Africa
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/147435 , vital:38636
- Description: The main objective of this study was to question and investigate the primacy of illicit financial flows (IFFs) in developing countries, specifically focused on two countries namely China and South Africa. Africa is estimated to have lost approximately $1 trillion to IFFs over the last 50 years, which exceeds the financial assistance that these nations needed over the same period. For years. Africa has been the feeding ground for exploitation and resource plunder, and the narrative has always been Africa is underdeveloped because of this crime. Although this statement holds true in most African countries, what this paper seeks to do is to question whether capital flight, IFFs and more specifically tax evasion and tax haven activity are the reason for the deterioration of African economies or are IFFs perpetuated by economies with unsustainable growth paths. IFFs are an important factor when it comes to obstacles of economic growth. But are they the cause or effect? A very strong case can be made that they are the latter however, it is beyond the scope of this article to resolve this question. Its purpose is merely to assert that the question is a valid one and that presuming the answer could divert attention from the real question of economic development. This study contextualized the way in which IFFs are currently viewed in the world economic system according to the two approaches to development finance, and discussed modern monetary theory as an extension off these theories. Due to the nature of the study, the methodology employed is a case study approach between China and South Africa by means of extensive numerical and document analysis. Upon conducting this analysis on the primacy of illicit financial flows in developing countries there was difficulty in measuring IFFs. The reason for this is because IFFs have a range of estimates so it was very difficult to produce precise and accurate results. The key findings of this paper were that there seems to be some kind of parallel between developing countries with large volumes of illicit financial outflows, and a dependency these countries have on external debt. This means it seems that weak economies, that are highly dependent on external debt and have large amounts of this debt, seem to have the largest volumes of illicit financial outflows. Weak regulation, high levels of debt and liberalised trade markets seem to be contributing factors to the degree to which companies evade taxes and partake in tax haven activity in these regions. Another key finding was that in 2012, despite China being ranked number one in the the countries which have the largest amounts of outflows on average, it still managed to achieve large amounts growth in the last 20 years. Indicating that there is some form of indication that IFFs could be viewed as symptomatic of weak financial systems and weak economies, instead of IFFs being the core of the problem.
- Full Text:
- Date Issued: 2020
- Authors: Mahlaba, Asande Cikizwa
- Date: 2020
- Subjects: Money -- Developing countries , Transfer pricing -- South Africa , Developing countries -- Economic conditions , Tax evasion -- China , Tax evasion -- South Africa
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/147435 , vital:38636
- Description: The main objective of this study was to question and investigate the primacy of illicit financial flows (IFFs) in developing countries, specifically focused on two countries namely China and South Africa. Africa is estimated to have lost approximately $1 trillion to IFFs over the last 50 years, which exceeds the financial assistance that these nations needed over the same period. For years. Africa has been the feeding ground for exploitation and resource plunder, and the narrative has always been Africa is underdeveloped because of this crime. Although this statement holds true in most African countries, what this paper seeks to do is to question whether capital flight, IFFs and more specifically tax evasion and tax haven activity are the reason for the deterioration of African economies or are IFFs perpetuated by economies with unsustainable growth paths. IFFs are an important factor when it comes to obstacles of economic growth. But are they the cause or effect? A very strong case can be made that they are the latter however, it is beyond the scope of this article to resolve this question. Its purpose is merely to assert that the question is a valid one and that presuming the answer could divert attention from the real question of economic development. This study contextualized the way in which IFFs are currently viewed in the world economic system according to the two approaches to development finance, and discussed modern monetary theory as an extension off these theories. Due to the nature of the study, the methodology employed is a case study approach between China and South Africa by means of extensive numerical and document analysis. Upon conducting this analysis on the primacy of illicit financial flows in developing countries there was difficulty in measuring IFFs. The reason for this is because IFFs have a range of estimates so it was very difficult to produce precise and accurate results. The key findings of this paper were that there seems to be some kind of parallel between developing countries with large volumes of illicit financial outflows, and a dependency these countries have on external debt. This means it seems that weak economies, that are highly dependent on external debt and have large amounts of this debt, seem to have the largest volumes of illicit financial outflows. Weak regulation, high levels of debt and liberalised trade markets seem to be contributing factors to the degree to which companies evade taxes and partake in tax haven activity in these regions. Another key finding was that in 2012, despite China being ranked number one in the the countries which have the largest amounts of outflows on average, it still managed to achieve large amounts growth in the last 20 years. Indicating that there is some form of indication that IFFs could be viewed as symptomatic of weak financial systems and weak economies, instead of IFFs being the core of the problem.
- Full Text:
- Date Issued: 2020
The value of economic capital as an indicator to protect prospective and existing ordinary shareholders
- Authors: Chonzi, Tendai Day
- Date: 2020
- Subjects: Banks and banking -- Risk management -- South Africa , Financial services industry -- Risk management -- South Africa , ABSA Bank , FirstRand Limited , Nedbank , Standard Bank Limited , Capitec Bank (South Africa)
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/145807 , vital:38468
- Description: South Africans banking sector is one of the most dominating banking sectors in Africa. The banking sector is privately owned and involves a lot of different stakeholders, who risk losing their investments. One of the stakeholders who are the bottom of the repayment chain are existing ordinary shareholders because they risk losing all their investment in the result of bankruptcy, liquidity crises or the inability of the bank to repay their shareholders. Regulators in the banking sector only protect the depositor and the stability of the banking sector but not ordinary shareholders. An internal supervisory measure called economic capital has recently received more attention because of its aim to protect ordinary shareholders and thus, existing and prospective shareholders can use its value as a protective indicator. Economic theory assumes that the higher the value of economic capital (the lower the economic capital shortfall), the lower the return on investment for existing ordinary shareholders. The aforementioned shows a trade-off between protection (economic capital) and returns. Literature by Larsson (2009) further suggests that banks are always reluctant with implementing internal measures to protect themselves because of the good regulatory regime in the sector, some banks think that they are “too big to fail” and the fact that the reserve banks are always on the standby as a bailout. The purpose of this research is to examine which of the top five commercial banks in South African actively protect their existing ordinary shareholders using the value of economic capital and possibly attract prospective ordinary shareholders, locally and internationally. The banks under study are Absa, Capitec, FirstRand, Nedbank and Standard Bank over ten years, starting from June 2009 to May 2019 and in monthly frequency. The observations totalled 120 and two models that are under the Return Series Method were in used, namely; Historical Simulation Model and Variance Covariance Model. Both models, although they were small deviations in the value of economic capital, concluded that Standard Bank protects its existing ordinary shareholders the most, followed by FirstRand, then Absa and last is Nedbank. Capitec was the only bank, after one financial shock that could not protect its existing ordinary shareholders. Moreover, evidence in the study shows a trade-off between economic capital and return on investment in the case of Capitec and Standard Bank. Standard Bank had the highest value of economic capital and second-lowest return on investment, while Capitec had the highest return on investment and lowest value of economic capital. The significant policy implication of the research is that financial institution needs to strike a balance between protection and profits; thus, a way of protecting various stakeholders. Financial shocks have proven that regulatory measures are weak and they are is need for internal measures (economic capital) which indicate how financial institution can sustain in such cases.
- Full Text:
- Date Issued: 2020
- Authors: Chonzi, Tendai Day
- Date: 2020
- Subjects: Banks and banking -- Risk management -- South Africa , Financial services industry -- Risk management -- South Africa , ABSA Bank , FirstRand Limited , Nedbank , Standard Bank Limited , Capitec Bank (South Africa)
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/145807 , vital:38468
- Description: South Africans banking sector is one of the most dominating banking sectors in Africa. The banking sector is privately owned and involves a lot of different stakeholders, who risk losing their investments. One of the stakeholders who are the bottom of the repayment chain are existing ordinary shareholders because they risk losing all their investment in the result of bankruptcy, liquidity crises or the inability of the bank to repay their shareholders. Regulators in the banking sector only protect the depositor and the stability of the banking sector but not ordinary shareholders. An internal supervisory measure called economic capital has recently received more attention because of its aim to protect ordinary shareholders and thus, existing and prospective shareholders can use its value as a protective indicator. Economic theory assumes that the higher the value of economic capital (the lower the economic capital shortfall), the lower the return on investment for existing ordinary shareholders. The aforementioned shows a trade-off between protection (economic capital) and returns. Literature by Larsson (2009) further suggests that banks are always reluctant with implementing internal measures to protect themselves because of the good regulatory regime in the sector, some banks think that they are “too big to fail” and the fact that the reserve banks are always on the standby as a bailout. The purpose of this research is to examine which of the top five commercial banks in South African actively protect their existing ordinary shareholders using the value of economic capital and possibly attract prospective ordinary shareholders, locally and internationally. The banks under study are Absa, Capitec, FirstRand, Nedbank and Standard Bank over ten years, starting from June 2009 to May 2019 and in monthly frequency. The observations totalled 120 and two models that are under the Return Series Method were in used, namely; Historical Simulation Model and Variance Covariance Model. Both models, although they were small deviations in the value of economic capital, concluded that Standard Bank protects its existing ordinary shareholders the most, followed by FirstRand, then Absa and last is Nedbank. Capitec was the only bank, after one financial shock that could not protect its existing ordinary shareholders. Moreover, evidence in the study shows a trade-off between economic capital and return on investment in the case of Capitec and Standard Bank. Standard Bank had the highest value of economic capital and second-lowest return on investment, while Capitec had the highest return on investment and lowest value of economic capital. The significant policy implication of the research is that financial institution needs to strike a balance between protection and profits; thus, a way of protecting various stakeholders. Financial shocks have proven that regulatory measures are weak and they are is need for internal measures (economic capital) which indicate how financial institution can sustain in such cases.
- Full Text:
- Date Issued: 2020
Volatility spillovers and determinants of contagion: a case of BRICS equity and foreign exchange markets
- Authors: Nyopa, Tšepiso
- Date: 2020
- Subjects: Uncatalogued
- Language: English
- Type: thesis , text , Masters , MCOM
- Identifier: http://hdl.handle.net/10962/164590 , vital:41146
- Description: Thesis (MSc)--Rhodes University, Faculty of Commerce, Economics and Economic History, 2020
- Full Text:
- Date Issued: 2020
- Authors: Nyopa, Tšepiso
- Date: 2020
- Subjects: Uncatalogued
- Language: English
- Type: thesis , text , Masters , MCOM
- Identifier: http://hdl.handle.net/10962/164590 , vital:41146
- Description: Thesis (MSc)--Rhodes University, Faculty of Commerce, Economics and Economic History, 2020
- Full Text:
- Date Issued: 2020
Water footprint and economic water productivity of citrus production: a comparison across three river valleys in the Eastern Cape Milands
- Authors: Danckwerts, Lindsay
- Date: 2020
- Subjects: Water in agriculture -- South Africa -- Eastern Cape , Water consumption -- South Africa -- Economic aspects , Water supply, Agricultural -- South Africa -- Eastern Cape , Citrus fruit industry -- South Africa -- Eastern Cape
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/141064 , vital:37941
- Description: South Africa is a semi-arid, water scarce country. The nation has suffered a spate of severe droughts in several regions in recent years, which have significantly impacted the country’s economy. Global warming, population growth, and rising demand for water intensive products are only expected to intensify water supply problems in the future. The agricultural industry is the largest consumer of water in South Africa, accounting for the majority of total surface water withdrawals. As such, the agricultural sector is faced with complex and difficult management decisions in the face of a potential water supply crisis. The water footprint (WF) and economic water productivity (EWP) of citrus production across three river catchments located in the Eastern Cape Midlands (situated in the vicinity of the settlements of Adelaide, Cookhouse and Fort Beaufort respectively) were calculated and compared. In the long-term average (LTA), blue WF weighted across all three regions accounted for the greatest proportion of total WF (53%), followed in turn by green and grey WF (30% and 17% respectively). LTA blue and grey WF was lowest in the Adelaide region, while green WF was smallest in the Fort Beaufort region. Blue, green and grey WF were found to be greatest in the Cookhouse region. LTA EWP was greatest in the Fort Beaufort region and smallest in the Adelaide region. Of all variety groups assessed, lemons were found to have the lowest LTA crop water use and blue, green and grey WF when considering citrus production averaged across all three study regions. Satsumas has the second smallest LTA blue, green and grey WF, followed by navels, mid-season mandarins, and finally, late mandarins. Lemons had the greatest LTA EWP of all varieties, followed in turn by satsumas, late mandarins, mid-season mandarins and navels. Blue crop water use was consistently lowest in the designated wet year and highest in the dry year. However, this same trend was not necessarily true for WF findings. WF and EWP are useful indicators of water use which can be used to help guide complex water management decisions. However, these indicators are single-factor productivity measures applied in a multi-factor environment. It is therefore important that factors outside of water use are considered when making water management decisions. Moreover, it is important to examine the impact that the various components making up WF and EWP have on the resultant figures, rather than merely considering the superficial results themselves. Factors such as CWU, orchard maturity, crop choice, potential yield, climate, irrigation system, economic return, water allocation and water availability should all be taken into account.
- Full Text:
- Date Issued: 2020
- Authors: Danckwerts, Lindsay
- Date: 2020
- Subjects: Water in agriculture -- South Africa -- Eastern Cape , Water consumption -- South Africa -- Economic aspects , Water supply, Agricultural -- South Africa -- Eastern Cape , Citrus fruit industry -- South Africa -- Eastern Cape
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/141064 , vital:37941
- Description: South Africa is a semi-arid, water scarce country. The nation has suffered a spate of severe droughts in several regions in recent years, which have significantly impacted the country’s economy. Global warming, population growth, and rising demand for water intensive products are only expected to intensify water supply problems in the future. The agricultural industry is the largest consumer of water in South Africa, accounting for the majority of total surface water withdrawals. As such, the agricultural sector is faced with complex and difficult management decisions in the face of a potential water supply crisis. The water footprint (WF) and economic water productivity (EWP) of citrus production across three river catchments located in the Eastern Cape Midlands (situated in the vicinity of the settlements of Adelaide, Cookhouse and Fort Beaufort respectively) were calculated and compared. In the long-term average (LTA), blue WF weighted across all three regions accounted for the greatest proportion of total WF (53%), followed in turn by green and grey WF (30% and 17% respectively). LTA blue and grey WF was lowest in the Adelaide region, while green WF was smallest in the Fort Beaufort region. Blue, green and grey WF were found to be greatest in the Cookhouse region. LTA EWP was greatest in the Fort Beaufort region and smallest in the Adelaide region. Of all variety groups assessed, lemons were found to have the lowest LTA crop water use and blue, green and grey WF when considering citrus production averaged across all three study regions. Satsumas has the second smallest LTA blue, green and grey WF, followed by navels, mid-season mandarins, and finally, late mandarins. Lemons had the greatest LTA EWP of all varieties, followed in turn by satsumas, late mandarins, mid-season mandarins and navels. Blue crop water use was consistently lowest in the designated wet year and highest in the dry year. However, this same trend was not necessarily true for WF findings. WF and EWP are useful indicators of water use which can be used to help guide complex water management decisions. However, these indicators are single-factor productivity measures applied in a multi-factor environment. It is therefore important that factors outside of water use are considered when making water management decisions. Moreover, it is important to examine the impact that the various components making up WF and EWP have on the resultant figures, rather than merely considering the superficial results themselves. Factors such as CWU, orchard maturity, crop choice, potential yield, climate, irrigation system, economic return, water allocation and water availability should all be taken into account.
- Full Text:
- Date Issued: 2020
Active vs passive portfolio management: an empirical analysis of selected South African equity funds
- Mphahlele, Phaswane Moatlegi
- Authors: Mphahlele, Phaswane Moatlegi
- Date: 2019
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/97846 , vital:31493
- Description: Expected release date-April 2020
- Full Text: false
- Date Issued: 2019
Active vs passive portfolio management: an empirical analysis of selected South African equity funds
- Authors: Mphahlele, Phaswane Moatlegi
- Date: 2019
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/97846 , vital:31493
- Description: Expected release date-April 2020
- Full Text: false
- Date Issued: 2019
Analyzing the Anthropogenic Allee Effect in cycad (Encephalartos species) populations in South Africa: an evaluation of illegal trade and conservation policy
- Authors: Earle, Sasha
- Date: 2019
- Subjects: Allee effect , Cycads -- Conservation -- South Africa , Botany, Economic -- South Africa , Rare plants -- South Africa , Endangered plants -- South Africa , Wild plant trade -- Law and legislation -- South Africa
- Language: English
- Type: text , Thesis , Masters , Mcom
- Identifier: http://hdl.handle.net/10962/95565 , vital:31171
- Description: South Africa is a country known for rich biodiversity and ecosystems across the land and seascape. South Africa is one of the global hotspots for cycad diversity. Cycads are known to be the world’s most threatened plant species; declining in South Africa at a rapid pace, with threat of extinction in the wild. The main factor being harvesting from the wild for private collections. Rare cycad species’ are especially sought after by collectors. Economic theory assumes that the exploitation of a species is unlikely to result in extinction due to the increasing costs of finding the last few individuals of a species. However, the theory of the Anthropogenic Allee Effect (AAE) suggests that if consumers place a disproportionate value on a rare species’, a cycle may result whereby increased exploitation decreases population size, increasing the value of the species and, consequently, leading to its extinction in the wild. This hypothesis was tested for 37 Encephalartos species using data collected on wild populations, auction prices and the IUCN Red List status for the year 2010. It was hypothesised that an AAE was present within Encephalartos species, as three species have already gone extinct in the wild. The price per centimetre was positively correlated to the rarity of the species and the price per centimetre was negatively correlated to the wild population size. The results suggest a trend of an AAE for the year 2010. Adequate conservation policies are needed to reduce the effects of demand on illegal harvesting and prevent extinction in the wild. The effect of rarity needs to be taken into account to ensure successfulness of such policies. The most recent conservation policy implemented to protect cycads in South Africa is the Strategy and Action for the Management of Cycads in South Africa, which was introduced in 2016. The successfulness of this policy cannot, however, be analysed due to a lack of census data following its implementation.
- Full Text:
- Date Issued: 2019
- Authors: Earle, Sasha
- Date: 2019
- Subjects: Allee effect , Cycads -- Conservation -- South Africa , Botany, Economic -- South Africa , Rare plants -- South Africa , Endangered plants -- South Africa , Wild plant trade -- Law and legislation -- South Africa
- Language: English
- Type: text , Thesis , Masters , Mcom
- Identifier: http://hdl.handle.net/10962/95565 , vital:31171
- Description: South Africa is a country known for rich biodiversity and ecosystems across the land and seascape. South Africa is one of the global hotspots for cycad diversity. Cycads are known to be the world’s most threatened plant species; declining in South Africa at a rapid pace, with threat of extinction in the wild. The main factor being harvesting from the wild for private collections. Rare cycad species’ are especially sought after by collectors. Economic theory assumes that the exploitation of a species is unlikely to result in extinction due to the increasing costs of finding the last few individuals of a species. However, the theory of the Anthropogenic Allee Effect (AAE) suggests that if consumers place a disproportionate value on a rare species’, a cycle may result whereby increased exploitation decreases population size, increasing the value of the species and, consequently, leading to its extinction in the wild. This hypothesis was tested for 37 Encephalartos species using data collected on wild populations, auction prices and the IUCN Red List status for the year 2010. It was hypothesised that an AAE was present within Encephalartos species, as three species have already gone extinct in the wild. The price per centimetre was positively correlated to the rarity of the species and the price per centimetre was negatively correlated to the wild population size. The results suggest a trend of an AAE for the year 2010. Adequate conservation policies are needed to reduce the effects of demand on illegal harvesting and prevent extinction in the wild. The effect of rarity needs to be taken into account to ensure successfulness of such policies. The most recent conservation policy implemented to protect cycads in South Africa is the Strategy and Action for the Management of Cycads in South Africa, which was introduced in 2016. The successfulness of this policy cannot, however, be analysed due to a lack of census data following its implementation.
- Full Text:
- Date Issued: 2019
Cultural clusters as a local economic development strategy in rural, small town areas: the Sarah Baartman District in the Eastern Cape of South Africa
- Authors: Drummond, Fiona Jane
- Date: 2019
- Subjects: Cultural industries -- South Africa -- Eastern Cape , Creative ability -- Economic aspects -- South Africa -- Eastern Cape , Arts -- Economic aspects -- South Africa -- Eastern Cape , Culture -- Economic aspects -- South Africa -- Eastern Cape , Economic development -- South Africa -- Eastern Cape , Economic development projects -- South Africa -- Eastern Cape
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/71568 , vital:29879
- Description: It is increasingly recognized that the cultural and creative industries (CCIs) can play an important role in economic growth and development. Governments around the world, including South Africa, are implementing culture‐led economic growth and development strategies on national and regional scales. CCIs tend to cluster around large cities because of existing hard and soft infrastructure such as networking advantages and access to skilled labour, however, much less is known about the potential of the CCIs to drive rural development. This thesis thus investigates the potential of the CCIs to cluster in small towns and rural areas. Moreover, it examines the relationship between the CCIs and socio‐economic development. The CCIs have been touted as a catalyst for economic growth and development and so have often been used in urban regeneration schemes. The Sarah Baartman District (SBD) of South Africa’s Eastern Cape has identified culture as a potential new economic driver. Establishing a new development path is necessary as the former economic mainstay, agriculture, has declined in the region, creating poverty and unemployment problems. However, the SBD has only small towns which, according to the literature, are not suited to CCI clustering. Despite this, there is evidence of cultural clustering in some of the SBD’s small towns like Nieu Bethesda and Bathurst. This research therefore conducted an audit of the CCIs in the district and used geographic information systems (GIS) to map their locations by UNESCO Framework of Cultural Statistics (FCS) domains in order to determine the extent to which clustering has occurred in a small town setting. The audit identified 1 048 CCIs operating in the district and determined that clustering is possible within some small towns, depending on their demographic, economic, social, geographic and historic characteristics. For small towns where clusters exist or the potential for cluster formation is present, the domains in which the town holds a comparative advantage, based on domain proportions and location quotients, should be pursued for local economic development (LED). In this case, Visual Arts and Crafts and Cultural Heritage were prominent throughout the district while Design and Creative Services and Performance and Celebration had small regional concentrations. Theory suggests that the presence of CCIs is linked to higher levels of economic development as the creative class is more likely to be attracted to more highly developed areas, usually large cities. Furthermore, spillover effects from cultural activity promotes further development under the virtuous cycle. To investigate the relationship between CCI clusters and socio‐economic development, the locational data of municipal level CCI numbers is overlaid with a regional development indicator, a socio‐economic status index, which is based on census data and includes economic and social components. Results show that there is a general positive trend of CCIs locating in larger numbers (clustering) in areas with higher socio‐economic development performances.
- Full Text:
- Date Issued: 2019
- Authors: Drummond, Fiona Jane
- Date: 2019
- Subjects: Cultural industries -- South Africa -- Eastern Cape , Creative ability -- Economic aspects -- South Africa -- Eastern Cape , Arts -- Economic aspects -- South Africa -- Eastern Cape , Culture -- Economic aspects -- South Africa -- Eastern Cape , Economic development -- South Africa -- Eastern Cape , Economic development projects -- South Africa -- Eastern Cape
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/71568 , vital:29879
- Description: It is increasingly recognized that the cultural and creative industries (CCIs) can play an important role in economic growth and development. Governments around the world, including South Africa, are implementing culture‐led economic growth and development strategies on national and regional scales. CCIs tend to cluster around large cities because of existing hard and soft infrastructure such as networking advantages and access to skilled labour, however, much less is known about the potential of the CCIs to drive rural development. This thesis thus investigates the potential of the CCIs to cluster in small towns and rural areas. Moreover, it examines the relationship between the CCIs and socio‐economic development. The CCIs have been touted as a catalyst for economic growth and development and so have often been used in urban regeneration schemes. The Sarah Baartman District (SBD) of South Africa’s Eastern Cape has identified culture as a potential new economic driver. Establishing a new development path is necessary as the former economic mainstay, agriculture, has declined in the region, creating poverty and unemployment problems. However, the SBD has only small towns which, according to the literature, are not suited to CCI clustering. Despite this, there is evidence of cultural clustering in some of the SBD’s small towns like Nieu Bethesda and Bathurst. This research therefore conducted an audit of the CCIs in the district and used geographic information systems (GIS) to map their locations by UNESCO Framework of Cultural Statistics (FCS) domains in order to determine the extent to which clustering has occurred in a small town setting. The audit identified 1 048 CCIs operating in the district and determined that clustering is possible within some small towns, depending on their demographic, economic, social, geographic and historic characteristics. For small towns where clusters exist or the potential for cluster formation is present, the domains in which the town holds a comparative advantage, based on domain proportions and location quotients, should be pursued for local economic development (LED). In this case, Visual Arts and Crafts and Cultural Heritage were prominent throughout the district while Design and Creative Services and Performance and Celebration had small regional concentrations. Theory suggests that the presence of CCIs is linked to higher levels of economic development as the creative class is more likely to be attracted to more highly developed areas, usually large cities. Furthermore, spillover effects from cultural activity promotes further development under the virtuous cycle. To investigate the relationship between CCI clusters and socio‐economic development, the locational data of municipal level CCI numbers is overlaid with a regional development indicator, a socio‐economic status index, which is based on census data and includes economic and social components. Results show that there is a general positive trend of CCIs locating in larger numbers (clustering) in areas with higher socio‐economic development performances.
- Full Text:
- Date Issued: 2019
Incentive effects: assessing effort and heterogeneity in professional tennis
- Authors: Chadwick, Byron James Rhett
- Date: 2019
- Subjects: Professional sports -- Economic aspects , Tennis players -- Wages , Tennis -- Tournaments , Achievement motivation , Incentive awards
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/69467 , vital:29541
- Description: This study explores the impact incentive effects have on the level of effort exerted by professional men and women tennis players. Understanding what impact incentives have on tennis players can allow for greater understanding of the impact incentives have in the workplace and how employees react to different incentive schemes. The study makes use of data from both the ATP and WTA tour of every tournament played during the 2016 season. This includes player statistics, tournament statistics and in-game statistics from the quarter-finals, semi-finals and finals of each tournament in an attempt to account for initial seeding effects. This provides a total of 440 ATP matches and 389 WTA matches for an overall sample size of 829 professional tennis matches. The findings from this study illustrate in the last three rounds of all the tournaments played, for both male and females, money is not considered to be a key motivator for players. The ATP and WTA results suggest that competitors do not alter their effort levels depending on the level of the tournament. This illustrates that players exert similar effort levels regardless of the amount of money or ranking points available. The outcome of the findings supports that of the capability effect of heterogeneity on players’ performance. This means that the outcome of a match is linked more to the abilities of the competitors involved as opposed to the incentives available. Thus, players will adjust their effort levels according to their opponent and not because there are more money or ranking points available. This suggests that both the ATP and WTA should aim to reduce the differences in abilities amongst the players in an attempt to raise the attractiveness of the sport. Overall, the findings from this study illustrate that the capability effect outweighs that of the incentive effect.
- Full Text:
- Date Issued: 2019
- Authors: Chadwick, Byron James Rhett
- Date: 2019
- Subjects: Professional sports -- Economic aspects , Tennis players -- Wages , Tennis -- Tournaments , Achievement motivation , Incentive awards
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/69467 , vital:29541
- Description: This study explores the impact incentive effects have on the level of effort exerted by professional men and women tennis players. Understanding what impact incentives have on tennis players can allow for greater understanding of the impact incentives have in the workplace and how employees react to different incentive schemes. The study makes use of data from both the ATP and WTA tour of every tournament played during the 2016 season. This includes player statistics, tournament statistics and in-game statistics from the quarter-finals, semi-finals and finals of each tournament in an attempt to account for initial seeding effects. This provides a total of 440 ATP matches and 389 WTA matches for an overall sample size of 829 professional tennis matches. The findings from this study illustrate in the last three rounds of all the tournaments played, for both male and females, money is not considered to be a key motivator for players. The ATP and WTA results suggest that competitors do not alter their effort levels depending on the level of the tournament. This illustrates that players exert similar effort levels regardless of the amount of money or ranking points available. The outcome of the findings supports that of the capability effect of heterogeneity on players’ performance. This means that the outcome of a match is linked more to the abilities of the competitors involved as opposed to the incentives available. Thus, players will adjust their effort levels according to their opponent and not because there are more money or ranking points available. This suggests that both the ATP and WTA should aim to reduce the differences in abilities amongst the players in an attempt to raise the attractiveness of the sport. Overall, the findings from this study illustrate that the capability effect outweighs that of the incentive effect.
- Full Text:
- Date Issued: 2019
Inflation hedging with South African common stocks: a JSE sectoral analysis
- Authors: Kawawa, Dennis
- Date: 2019
- Subjects: Johannesburg Stock Exchange , Inflation (Finance) -- South Africa , Hedging (Finance)-- South Africa
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/71526 , vital:29861
- Description: Inflation risk erodes purchasing power, redistributes wealth from lenders to borrowers and threatens investor’s long-term objectives, which are often specified in real terms; financial market volatility presents an additional risk for investors and portfolio managers concerned with not only real returns but also absolute returns. Understanding key investment risks, of which inflation is one, is crucial for investment managers in order to design effective hedging strategies to preserve wealth over the long run. Empirical tests of the Fisher hypothesis in South Africa have shown that common stocks are a good hedge against inflation. However, empirical evidence from developed countries has also shown that the relationship between common stocks and inflation is heterogeneous across the sectors and industries. This paper analysed the sectoral differences in the hedging ability of South African common stocks to test for this heterogeneity. The paper presents disaggregated sector models to test heterogeneity across the eight sectors of the JSE securities exchange. Understanding which of these sectors offers the best hedge against inflation is important to investors, allowing them to place money where the value will be best preserved during times of higher inflation. The disaggregated sectors tested included the Basic Materials price index, Industrials price index, Consumer Goods price index, Health Care price index, Consumer Services price index, Telecommunications price index, Financials price index, and Technology price index. Johansen Cointegration techniques were employed to empirically test the Fisher hypothesis for the South African market. For the Fisher hypothesis to hold, this paper was required to find evidence of cointegration between the share indices and CPI, as well as a positive slope coefficient for the cointegrating regression. The results of the cointegration test showed that the All Share index and each of disaggregated sector indices were cointegrated with CPI. This implied that a long run relationship exists between common stocks and inflation. Two techniques were used to estimate the cointegrating regressions for each model, a standard long-run cointegrating regression normalizing on the share index and a Vector error correction model (VECM). For all the models both techniques reveal a positive relationship between common stock and CPI with the coefficients for the long run cointegrating regression derived from the various models ranging between 1.41 – 3.62 while the coefficients from the VECM ranged from 1.42 - 4.85. The varying coefficients provide evidence of the heterogeneity of the hedging ability of common stocks. Overall the evidence from the long run cointegration regression suggests that in times of high inflation investors are most compensated for changes in inflation in common stocks relating to the Consumer Services and Health Care sectors, but that in general all sectors of the JSE provide some hedge for inflation. The results suggest that investors are compensated for changes in inflation if they invest in specific industries rather than in the All Share index, thus diversifying portfolios could provide a better hedge for inflation. Although positive coefficients were found the weak exogeneity test revealed only technology Index was caused by changes in CPI. The Paper concluded that in the long run all sectors provided protection against inflation during the period of study, but the evidence only fully supports the Fisher hypothesis for the Technology index, due to the results of the weak exogeneity test that revealed that CPI is weakly exogenous only in the equation of the Technology index.
- Full Text:
- Date Issued: 2019
- Authors: Kawawa, Dennis
- Date: 2019
- Subjects: Johannesburg Stock Exchange , Inflation (Finance) -- South Africa , Hedging (Finance)-- South Africa
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/71526 , vital:29861
- Description: Inflation risk erodes purchasing power, redistributes wealth from lenders to borrowers and threatens investor’s long-term objectives, which are often specified in real terms; financial market volatility presents an additional risk for investors and portfolio managers concerned with not only real returns but also absolute returns. Understanding key investment risks, of which inflation is one, is crucial for investment managers in order to design effective hedging strategies to preserve wealth over the long run. Empirical tests of the Fisher hypothesis in South Africa have shown that common stocks are a good hedge against inflation. However, empirical evidence from developed countries has also shown that the relationship between common stocks and inflation is heterogeneous across the sectors and industries. This paper analysed the sectoral differences in the hedging ability of South African common stocks to test for this heterogeneity. The paper presents disaggregated sector models to test heterogeneity across the eight sectors of the JSE securities exchange. Understanding which of these sectors offers the best hedge against inflation is important to investors, allowing them to place money where the value will be best preserved during times of higher inflation. The disaggregated sectors tested included the Basic Materials price index, Industrials price index, Consumer Goods price index, Health Care price index, Consumer Services price index, Telecommunications price index, Financials price index, and Technology price index. Johansen Cointegration techniques were employed to empirically test the Fisher hypothesis for the South African market. For the Fisher hypothesis to hold, this paper was required to find evidence of cointegration between the share indices and CPI, as well as a positive slope coefficient for the cointegrating regression. The results of the cointegration test showed that the All Share index and each of disaggregated sector indices were cointegrated with CPI. This implied that a long run relationship exists between common stocks and inflation. Two techniques were used to estimate the cointegrating regressions for each model, a standard long-run cointegrating regression normalizing on the share index and a Vector error correction model (VECM). For all the models both techniques reveal a positive relationship between common stock and CPI with the coefficients for the long run cointegrating regression derived from the various models ranging between 1.41 – 3.62 while the coefficients from the VECM ranged from 1.42 - 4.85. The varying coefficients provide evidence of the heterogeneity of the hedging ability of common stocks. Overall the evidence from the long run cointegration regression suggests that in times of high inflation investors are most compensated for changes in inflation in common stocks relating to the Consumer Services and Health Care sectors, but that in general all sectors of the JSE provide some hedge for inflation. The results suggest that investors are compensated for changes in inflation if they invest in specific industries rather than in the All Share index, thus diversifying portfolios could provide a better hedge for inflation. Although positive coefficients were found the weak exogeneity test revealed only technology Index was caused by changes in CPI. The Paper concluded that in the long run all sectors provided protection against inflation during the period of study, but the evidence only fully supports the Fisher hypothesis for the Technology index, due to the results of the weak exogeneity test that revealed that CPI is weakly exogenous only in the equation of the Technology index.
- Full Text:
- Date Issued: 2019
Investment-grade or “junk” status: do sovereign credit ratings really matter?
- Authors: Slabbert, Adriaan
- Date: 2019
- Subjects: Credit ratings , Rating agencies (Finance) , Developing countries -- Economic conditions , Developing countries -- Foreign economic relations
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/97067 , vital:31393
- Description: Credit ratings play a well-established part in modern financial markets, reducing asymmetric information between investors and borrowers. In particular, sovereign credit ratings allow the world’s lesser-known economies to access a wider pool of international capital, while simultaneously allowing international investors to access a more diverse set of investment opportunities. The importance of sovereign credit ratings in terms of the cost of government debt in developing nations was observed. The relationship between sovereign credit ratings and average bond spreads over the time period spanning 2006 – 2017 was examined in 25 emerging economies. Regression analysis in the form of fixed-effects and random-effects models was used to determine the impact of changes in sovereign credit ratings on the cost of sovereign debt, controlling for certain macroeconomic factors. It was concluded that sovereign credit ratings are relevant in helping to determine the cost of sovereign debt for developing economies, but that they are not the only factor considered by global markets. The thesis therefore recommended further research into the factors affecting the cost of sovereign debt as well as further refinements to the methodologies that ratings agencies use to assign ratings.
- Full Text:
- Date Issued: 2019
- Authors: Slabbert, Adriaan
- Date: 2019
- Subjects: Credit ratings , Rating agencies (Finance) , Developing countries -- Economic conditions , Developing countries -- Foreign economic relations
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/97067 , vital:31393
- Description: Credit ratings play a well-established part in modern financial markets, reducing asymmetric information between investors and borrowers. In particular, sovereign credit ratings allow the world’s lesser-known economies to access a wider pool of international capital, while simultaneously allowing international investors to access a more diverse set of investment opportunities. The importance of sovereign credit ratings in terms of the cost of government debt in developing nations was observed. The relationship between sovereign credit ratings and average bond spreads over the time period spanning 2006 – 2017 was examined in 25 emerging economies. Regression analysis in the form of fixed-effects and random-effects models was used to determine the impact of changes in sovereign credit ratings on the cost of sovereign debt, controlling for certain macroeconomic factors. It was concluded that sovereign credit ratings are relevant in helping to determine the cost of sovereign debt for developing economies, but that they are not the only factor considered by global markets. The thesis therefore recommended further research into the factors affecting the cost of sovereign debt as well as further refinements to the methodologies that ratings agencies use to assign ratings.
- Full Text:
- Date Issued: 2019
Job creation and income generation in the cultural and creative industries: a case study of the shweshwe sewing industry
- Authors: Mapuma, Aviwe Simbonge
- Date: 2019
- Subjects: Textile industry -- South Africa -- Eastern Cape , Clothing trade -- South Africa -- Eastern Cape , Sewing -- South Africa -- Eastern Cape , Job creation -- South Africa -- Eastern Cape , Textile manufacturers -- South Africa -- Eastern Cape , Textile fabrics , Income -- South Africa -- Eastern Cape
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/122948 , vital:35378
- Description: Worldwide, there has been a growing realisation of the importance of Cultural and Creative Industries as a driving force for employment creation, income generation and economic growth. Therefore, there is a need in South Africa to study and understand these industries setting, and business environment. Shweshwe is a unique local fabric produced by Da Gama Textiles in the Eastern Cape province of South Africa. This fabric is used by many micro-enterprises as an input to make clothes and other items for traditional cultural celebrations and ceremonies. This study is about the micro-enterprises who use South Africa made textiles (i.e. shweshwe textile) as business input. More specifically, it looks at employment creation and income generation opportunities of the micro-enterprises that use shweshwe textile as an input. These micro-enterprises and shweshwe production are being threatened by the rising influx of cheaper ready-made imported clothes that mimic the shweshwe designs and colours, in some cases, the logo as well. This study also plans to estimate the size and discover the attributes of the micro-enterprises that use shweshwe as an input in their businesses in South Africa, in order to estimate the impact of the counterfeit shweshwe imports on those micro-enterprises. This study adopted a mixed-methods approach-using a combination of both qualitative and quantitative data collection methods. Face-to-face interviews with questionnaires, were done with a total sample of 62 owners of the micro-enterprises that use shweshwe as input, in the Western Cape (Cape Town) and Eastern Cape (i.e. Makhanda and East London), South Africa. Self-administered questionnaires were emailed to 20 Jackson’s Stores managers across the country. Lastly, face-to-face interviews were done with the key stakeholder-the representative of Cowie trading (the main shweshwe distributor) and Da Gama Textiles (the factory of shweshwe), during a field visit. The Qualitative data was analysed using thematic analysis, whereas the quantitative data was analysed using inferential and descriptive statistics. The results show, that the micro-enterprises that use shweshwe as input are a significant contributor in terms of employment creation and income generation in South Africa. They also reveal that there is a big number of micro-enterprises that use shweshwe as an input in SA. The findings showed an estimate of between 5077 and 6000 small businesses that are using shweshwe an input, which are associated with 10 900 to 12 900 jobs. It was also found out that there is a transformation in this industry, and that this sector is B-BEE compliant. There are also high levels of human capital in this industry. This is an important finding revealing that there is potential for future growth in this sector. Results also found that the majority micro-enterprise owners (80%) have no other source of income, meaning that they are highly reliant on their shweshwe sewing business income. Additionally, 85% of those business, shweshwe garments makes up half or more of their sewing business proceeds. This reveals that a decline in income caused by the import of ready-made clothes in “fake” shweshwe will have a negative impact on the micro-enterprises’ ability to contribute to economic growth and job creation in this industry. To show the impact of the import of ready-made clothes in “fake” shweshwe on the micro-enterprises’ ability to contribute to economic growth and job creation in this industry. In the questionnaires that were used to conduct face-to-face interviews with the micro-enterprises, respondents were asked to indicate whether they had other sources of income other than the income they generate from the shweshwe sewing business. They were further asked as follow up question to choose from a given list of possible options containing a range of percentages of their business income that comes from the work sewn with shweshwe. This question was asked in order to be able to see, if there were to be a decline in income caused by the import of ready-made clothes in “fake” shweshwe what impact it would have on the micro-enterprises that use shweshwe as an input. The theory of industrial organisation has adopted the view of that businesses operating in the formal sector are more efficient and productive than those in the informal sector (Lobato, 2010). The study found that the micro-enterprises that operate in the formal sector generate more turnover than the ones that operate in the informal sector. However, the theory was further tested by running OLS regression, the results showed that operating in the informal sector does not affect turnover when other variables are controlled for, however, that it does affect job creation. In closing, this thesis provides suggestions on how to support, and protect the micro-enterprises that use shweshwe as an input, in order to enhance this industry’s potential also to ensure its continuous contribution in terms of employment creation and income generation in South Africa.
- Full Text:
- Date Issued: 2019
- Authors: Mapuma, Aviwe Simbonge
- Date: 2019
- Subjects: Textile industry -- South Africa -- Eastern Cape , Clothing trade -- South Africa -- Eastern Cape , Sewing -- South Africa -- Eastern Cape , Job creation -- South Africa -- Eastern Cape , Textile manufacturers -- South Africa -- Eastern Cape , Textile fabrics , Income -- South Africa -- Eastern Cape
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/122948 , vital:35378
- Description: Worldwide, there has been a growing realisation of the importance of Cultural and Creative Industries as a driving force for employment creation, income generation and economic growth. Therefore, there is a need in South Africa to study and understand these industries setting, and business environment. Shweshwe is a unique local fabric produced by Da Gama Textiles in the Eastern Cape province of South Africa. This fabric is used by many micro-enterprises as an input to make clothes and other items for traditional cultural celebrations and ceremonies. This study is about the micro-enterprises who use South Africa made textiles (i.e. shweshwe textile) as business input. More specifically, it looks at employment creation and income generation opportunities of the micro-enterprises that use shweshwe textile as an input. These micro-enterprises and shweshwe production are being threatened by the rising influx of cheaper ready-made imported clothes that mimic the shweshwe designs and colours, in some cases, the logo as well. This study also plans to estimate the size and discover the attributes of the micro-enterprises that use shweshwe as an input in their businesses in South Africa, in order to estimate the impact of the counterfeit shweshwe imports on those micro-enterprises. This study adopted a mixed-methods approach-using a combination of both qualitative and quantitative data collection methods. Face-to-face interviews with questionnaires, were done with a total sample of 62 owners of the micro-enterprises that use shweshwe as input, in the Western Cape (Cape Town) and Eastern Cape (i.e. Makhanda and East London), South Africa. Self-administered questionnaires were emailed to 20 Jackson’s Stores managers across the country. Lastly, face-to-face interviews were done with the key stakeholder-the representative of Cowie trading (the main shweshwe distributor) and Da Gama Textiles (the factory of shweshwe), during a field visit. The Qualitative data was analysed using thematic analysis, whereas the quantitative data was analysed using inferential and descriptive statistics. The results show, that the micro-enterprises that use shweshwe as input are a significant contributor in terms of employment creation and income generation in South Africa. They also reveal that there is a big number of micro-enterprises that use shweshwe as an input in SA. The findings showed an estimate of between 5077 and 6000 small businesses that are using shweshwe an input, which are associated with 10 900 to 12 900 jobs. It was also found out that there is a transformation in this industry, and that this sector is B-BEE compliant. There are also high levels of human capital in this industry. This is an important finding revealing that there is potential for future growth in this sector. Results also found that the majority micro-enterprise owners (80%) have no other source of income, meaning that they are highly reliant on their shweshwe sewing business income. Additionally, 85% of those business, shweshwe garments makes up half or more of their sewing business proceeds. This reveals that a decline in income caused by the import of ready-made clothes in “fake” shweshwe will have a negative impact on the micro-enterprises’ ability to contribute to economic growth and job creation in this industry. To show the impact of the import of ready-made clothes in “fake” shweshwe on the micro-enterprises’ ability to contribute to economic growth and job creation in this industry. In the questionnaires that were used to conduct face-to-face interviews with the micro-enterprises, respondents were asked to indicate whether they had other sources of income other than the income they generate from the shweshwe sewing business. They were further asked as follow up question to choose from a given list of possible options containing a range of percentages of their business income that comes from the work sewn with shweshwe. This question was asked in order to be able to see, if there were to be a decline in income caused by the import of ready-made clothes in “fake” shweshwe what impact it would have on the micro-enterprises that use shweshwe as an input. The theory of industrial organisation has adopted the view of that businesses operating in the formal sector are more efficient and productive than those in the informal sector (Lobato, 2010). The study found that the micro-enterprises that operate in the formal sector generate more turnover than the ones that operate in the informal sector. However, the theory was further tested by running OLS regression, the results showed that operating in the informal sector does not affect turnover when other variables are controlled for, however, that it does affect job creation. In closing, this thesis provides suggestions on how to support, and protect the micro-enterprises that use shweshwe as an input, in order to enhance this industry’s potential also to ensure its continuous contribution in terms of employment creation and income generation in South Africa.
- Full Text:
- Date Issued: 2019
National debt and sovereign credit ratings
- Authors: Orsmond, Daniel
- Date: 2019
- Subjects: Debts, Public -- South Africa , Credit ratings -- South Africa , Gross domestic product -- Africa , Inflation (Finance) -- Africa , Economic development -- South Africa , Economic history , Macroeconomics , Moody's Investors Service , Standard and Poor's Ratings Services , Fitch Ratings (Firm)
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/115160 , vital:34083
- Description: In recent years South Africa’s foreign and local denominated debt has been downgraded by the three major global credit agencies, Moody’s, Standard and Poor’s (S&P) and Fitch. The foreign debt has been downgraded to speculative grade or ‘junk’ status by all three agencies. Local debt has been downgraded to ‘junk’ by S& P and Fitch, but Moody’s currently maintains local debt at the lowest level of investment grade. Many economists believe that South Africa’s rapidly rising debt levels are the major contributor to the decisions to downgrade South Africa’s debt. Yet many countries with higher levels of debt continue to be rated investment grade. Clearly, factors other than the actual level of debt are important in determining the credit rating agencies’ rating decisions. The literature suggests several variables are important in determining a country’s sovereign credit rating. These variables include not just the ratio of government debt to gross domestic product, but also a country’s real growth rate, inflation, gross domestic product per capita, external balance to gross domestic product, default history and the level of economic development. In examining the proposition that it is not a country’s debt level per se that matters, but rather the dynamics surrounding that debt, this research also includes three additional variables that are not usually mentioned in the literature. These, based on van der Merwe (1993), are the real GDP growth rate less the real interest rate, the ratio of the fiscal balance to GDP, and the ratio of government interest payments to government expenditure. The purpose of this addition is to examine whether rather than a country’s debt level (debt to GDP variable), it is the sustainability of a country’s ability to service debt, as indicated by the three additional ‘debt dynamic’ variables, that is most important when determining sovereign credit ratings. Panel data analysis for a sample of 12 countries over the period 1996Q1 to 2017Q4 indicates that of the broad macroeconomic variables mentioned in the literature, government debt to GDP, the real growth rate, inflation (cpi), and default history are all statistically significant, with the coefficients having the correct signs in all specification of the model, with the exception of the real growth rate in Models 2 and 3. With regards to the debt dynamic variables, the real growth rate less the real interest rate, as well as the interest payments to government expenditure variables are found to be significant determinants of sovereign credit ratings. Thus, the findings of the research suggest that the level of debt alone is an inadequate determinant of sovereign credit ratings. The dynamics of debt along with other macroeconomic variables are also important determinants of a country’s credit rating. Concerning policy recommendations, it is evident that debt sustainability is important for sovereign credit ratings. Evidence of the direct importance of economic growth in determining credit ratings is mixed, but growth is a key driver of debt dynamics variables and therefore of ratings. This suggests that policy should focus on stimulating growth to reduce the gap between real growth and real interest rates as well as increasing the denominator of the debt to GDP ratio and increase the size of the tax base, which would improve government’s ability to service the interest payments on its debt.
- Full Text:
- Date Issued: 2019
- Authors: Orsmond, Daniel
- Date: 2019
- Subjects: Debts, Public -- South Africa , Credit ratings -- South Africa , Gross domestic product -- Africa , Inflation (Finance) -- Africa , Economic development -- South Africa , Economic history , Macroeconomics , Moody's Investors Service , Standard and Poor's Ratings Services , Fitch Ratings (Firm)
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/115160 , vital:34083
- Description: In recent years South Africa’s foreign and local denominated debt has been downgraded by the three major global credit agencies, Moody’s, Standard and Poor’s (S&P) and Fitch. The foreign debt has been downgraded to speculative grade or ‘junk’ status by all three agencies. Local debt has been downgraded to ‘junk’ by S& P and Fitch, but Moody’s currently maintains local debt at the lowest level of investment grade. Many economists believe that South Africa’s rapidly rising debt levels are the major contributor to the decisions to downgrade South Africa’s debt. Yet many countries with higher levels of debt continue to be rated investment grade. Clearly, factors other than the actual level of debt are important in determining the credit rating agencies’ rating decisions. The literature suggests several variables are important in determining a country’s sovereign credit rating. These variables include not just the ratio of government debt to gross domestic product, but also a country’s real growth rate, inflation, gross domestic product per capita, external balance to gross domestic product, default history and the level of economic development. In examining the proposition that it is not a country’s debt level per se that matters, but rather the dynamics surrounding that debt, this research also includes three additional variables that are not usually mentioned in the literature. These, based on van der Merwe (1993), are the real GDP growth rate less the real interest rate, the ratio of the fiscal balance to GDP, and the ratio of government interest payments to government expenditure. The purpose of this addition is to examine whether rather than a country’s debt level (debt to GDP variable), it is the sustainability of a country’s ability to service debt, as indicated by the three additional ‘debt dynamic’ variables, that is most important when determining sovereign credit ratings. Panel data analysis for a sample of 12 countries over the period 1996Q1 to 2017Q4 indicates that of the broad macroeconomic variables mentioned in the literature, government debt to GDP, the real growth rate, inflation (cpi), and default history are all statistically significant, with the coefficients having the correct signs in all specification of the model, with the exception of the real growth rate in Models 2 and 3. With regards to the debt dynamic variables, the real growth rate less the real interest rate, as well as the interest payments to government expenditure variables are found to be significant determinants of sovereign credit ratings. Thus, the findings of the research suggest that the level of debt alone is an inadequate determinant of sovereign credit ratings. The dynamics of debt along with other macroeconomic variables are also important determinants of a country’s credit rating. Concerning policy recommendations, it is evident that debt sustainability is important for sovereign credit ratings. Evidence of the direct importance of economic growth in determining credit ratings is mixed, but growth is a key driver of debt dynamics variables and therefore of ratings. This suggests that policy should focus on stimulating growth to reduce the gap between real growth and real interest rates as well as increasing the denominator of the debt to GDP ratio and increase the size of the tax base, which would improve government’s ability to service the interest payments on its debt.
- Full Text:
- Date Issued: 2019
Social movements and economic development in post apartheid South Africa: lessons from Latin America
- Authors: Makoni, Tinotenda Charity
- Date: 2019
- Subjects: South Africa -- Economic conditions -- 1991- , South Africa -- Politics and government -- 1994- , Social movements -- South Africa , Social movements -- Latin America , Economic development -- South Africa
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/76420 , vital:30561
- Description: The aim of this research is to bring the literature on political agency and economics together in an analysis of whether social movements can play an important role in economic development in post-apartheid South Africa. The entrenched discourse of sluggish growth and high inequality in post-apartheid South Africa can largely be attributed to the political decision to implement a neoliberal economic development orthodoxy. On the one hand, there is an urgent need to shift the economic development model to an alternate developmentalist model. However, no clearly articulated alternative developmental model has emerged. As a result, economically, South Africa is seemingly stuck. On the other hand, the selection of an economic development model and change in macroeconomic policies requires a political shift. Politically, formal politics has assumed the form of neoliberal democracy, characterised by a largely centralised state and the usurpation of the state and institutions by a national bourgeoisie. Social movements have emerged in response to the failure of neoliberalism to fulfil the promises of early post independent periods. They have been largely successful at highlighting the injustices and the inequalities in the country. However their ability to influence structural economic development has come into question. Firstly, social movements and their “politically destabilising distributive demands” have faced repression from the state as the state and institutions are aligned behind the interests of capital under a neoliberal democracy. Secondly, social movements in South Africa have been largely ideologically under-developed. They have been largely fragmented and tended to contest specific single issues rather than aiming to shift the deeper underlying systemic drivers behind the symptomatic immediate discomforts. The economic dimensions of such a shift are particularly unclear. This fragmentation and apparent lack of economic pragmatism make management or suppression of disruptive movements by the state relatively easy. The research uses a contrast between the Latin American social movements against a South African background in order to see what lessons South Africa can draw from social movements in Latin America. The Latin American case is cautiously more positive and provides comparably more sanguine lessons. In this way, this research seeks to construct a more comprehensive framework for the further study of social movements in South Africa and their potential impact on economic development in South Africa.
- Full Text:
- Date Issued: 2019
Social movements and economic development in post apartheid South Africa: lessons from Latin America
- Authors: Makoni, Tinotenda Charity
- Date: 2019
- Subjects: South Africa -- Economic conditions -- 1991- , South Africa -- Politics and government -- 1994- , Social movements -- South Africa , Social movements -- Latin America , Economic development -- South Africa
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/76420 , vital:30561
- Description: The aim of this research is to bring the literature on political agency and economics together in an analysis of whether social movements can play an important role in economic development in post-apartheid South Africa. The entrenched discourse of sluggish growth and high inequality in post-apartheid South Africa can largely be attributed to the political decision to implement a neoliberal economic development orthodoxy. On the one hand, there is an urgent need to shift the economic development model to an alternate developmentalist model. However, no clearly articulated alternative developmental model has emerged. As a result, economically, South Africa is seemingly stuck. On the other hand, the selection of an economic development model and change in macroeconomic policies requires a political shift. Politically, formal politics has assumed the form of neoliberal democracy, characterised by a largely centralised state and the usurpation of the state and institutions by a national bourgeoisie. Social movements have emerged in response to the failure of neoliberalism to fulfil the promises of early post independent periods. They have been largely successful at highlighting the injustices and the inequalities in the country. However their ability to influence structural economic development has come into question. Firstly, social movements and their “politically destabilising distributive demands” have faced repression from the state as the state and institutions are aligned behind the interests of capital under a neoliberal democracy. Secondly, social movements in South Africa have been largely ideologically under-developed. They have been largely fragmented and tended to contest specific single issues rather than aiming to shift the deeper underlying systemic drivers behind the symptomatic immediate discomforts. The economic dimensions of such a shift are particularly unclear. This fragmentation and apparent lack of economic pragmatism make management or suppression of disruptive movements by the state relatively easy. The research uses a contrast between the Latin American social movements against a South African background in order to see what lessons South Africa can draw from social movements in Latin America. The Latin American case is cautiously more positive and provides comparably more sanguine lessons. In this way, this research seeks to construct a more comprehensive framework for the further study of social movements in South Africa and their potential impact on economic development in South Africa.
- Full Text:
- Date Issued: 2019
The impact of unanticipated news announcements by the US Federal Reserve On South African stock returns
- Authors: Sibanda, Lorna
- Date: 2019
- Subjects: Monetary policy -- United States , International finance , South Africa -- Foreign economic relations -- United States , United States -- Foreign economic relations -- South Africa , Banks of issue -- United States , Investments -- South Africa , Stocks -- Prices -- South Africa , Stocks -- Rate of return , Rate of return -- South Africa
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/94703 , vital:31070
- Description: This thesis analyses whether monetary policy announcement shocks are transmitted across countries, with special emphasis on the impact of US Federal Reserve announcements on the South African stock market. Monetary policy is an important source of economic news and affects the risk perceptions of market participants. This study will improve the understanding of stock price determinants and possibly influence SA monetary policy in guarding against possible shocks originating from abroad. Using Federal Reserve Open Market Committee (FOMC) announcements over the period 2008 – 2014, the research studied changes in volatility of the South African FTSE/JSE All Share Index returns over this period. An event study and GARCH model approach was adopted to reach the goals of the analysis. The findings were a statistically insignificant connection between SA stock returns and both anticipated and unanticipated US Federal Reserve announcements. Over the sample period, each shock to SA stock returns persisted for approximately 4-5 months. Although SA stock return volatility demonstrated clustering behaviour (indicating sensitivity to economic shocks), the research could not find an obvious relationship between these spikes in volatility and US Federal Reserve announcements. It is concluded that South African stock returns do not change in response to unexpected US monetary policy announcements.
- Full Text:
- Date Issued: 2019
- Authors: Sibanda, Lorna
- Date: 2019
- Subjects: Monetary policy -- United States , International finance , South Africa -- Foreign economic relations -- United States , United States -- Foreign economic relations -- South Africa , Banks of issue -- United States , Investments -- South Africa , Stocks -- Prices -- South Africa , Stocks -- Rate of return , Rate of return -- South Africa
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/94703 , vital:31070
- Description: This thesis analyses whether monetary policy announcement shocks are transmitted across countries, with special emphasis on the impact of US Federal Reserve announcements on the South African stock market. Monetary policy is an important source of economic news and affects the risk perceptions of market participants. This study will improve the understanding of stock price determinants and possibly influence SA monetary policy in guarding against possible shocks originating from abroad. Using Federal Reserve Open Market Committee (FOMC) announcements over the period 2008 – 2014, the research studied changes in volatility of the South African FTSE/JSE All Share Index returns over this period. An event study and GARCH model approach was adopted to reach the goals of the analysis. The findings were a statistically insignificant connection between SA stock returns and both anticipated and unanticipated US Federal Reserve announcements. Over the sample period, each shock to SA stock returns persisted for approximately 4-5 months. Although SA stock return volatility demonstrated clustering behaviour (indicating sensitivity to economic shocks), the research could not find an obvious relationship between these spikes in volatility and US Federal Reserve announcements. It is concluded that South African stock returns do not change in response to unexpected US monetary policy announcements.
- Full Text:
- Date Issued: 2019
The relationship between stock market development and economic growth in Africa
- Authors: Mkhize, Siyanda
- Date: 2019
- Subjects: Stock exchanges -- Africa , Africa -- Economic conditions -- 21st century , Economic development -- Africa -- 21st century , Capital market -- Africa , Finance -- Africa -- 21st century , Developing countries -- Economic conditions -- 21st century
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/115149 , vital:34082
- Description: Over the years there has been a substantial increase in the number of African stock markets. This has generated much interest from local and foreign investors, as these stock markets have had high returns. These conditions have created an interesting scenario for investigating the relationship between stock market development and economic growth. However, this opportunity has largely been neglected as the research on African stock market development is limited in developing economies relative to research conducted in developed countries. Furthermore, the research that has been conducted on the relationship between stock market development and economic growth in Africa, has generated inconclusive and conflicting results, in addition to this, the institutional quality of African countries is disregarded in most studies when the stock market development and economic growth nexus is analysed. Therefore, this study aims to explore the relationship between stock market development and economic growth, incorporating institution variables to account for the institutional quality of African countries to provide clarity in this context. To achieve this, two sets of research hypotheses were created the first set aims to determine whether stock development has an influence on economic growth. The second set is to determine if there is any causal relationship between stock market development and economic growth. The study utilizes System Generalized Method of Moments models to examine the effect of stock market development on economic growth, in 18 African countries for the period 2003- 2016. The results indicate that market capitalization has a positive influence on economic growth whilst, contrastingly liquidity in the form of value traded has a negative effect on economic growth. The study further analyses the causal relationship between stock market development and economic growth, by employing the recently developed PVAR-Granger causality test. However, before this is done several Pedroni cointegration tests were first conducted to establish whether a long-term relationship exists between stock market development and economic growth, which revealed that no strong evidence of cointegration exists necessitating the use of a PVAR-Granger causality test. The PVAR-Granger causality test reveals that stock market development granger causes economic growth, irrespective of the stock market development measure used and there is no feedback effect from economic growth. The unilateral causality established in this study flowing from stock market development to economic growth supports the supply-leading hypothesis. The overall results of this study demonstrate that there is ambiguity on the impact of stock market development on economic growth, as the measures of stock market development have contrasting impacts on economic growth. The size component of stock market development in the form of market capitalization has positive influence whilst, liquidity in form of total value traded has a negative effect. However, the causal relationship is clearly shown to be unilaterally flowing from stock market development to economic growth.
- Full Text:
- Date Issued: 2019
- Authors: Mkhize, Siyanda
- Date: 2019
- Subjects: Stock exchanges -- Africa , Africa -- Economic conditions -- 21st century , Economic development -- Africa -- 21st century , Capital market -- Africa , Finance -- Africa -- 21st century , Developing countries -- Economic conditions -- 21st century
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/115149 , vital:34082
- Description: Over the years there has been a substantial increase in the number of African stock markets. This has generated much interest from local and foreign investors, as these stock markets have had high returns. These conditions have created an interesting scenario for investigating the relationship between stock market development and economic growth. However, this opportunity has largely been neglected as the research on African stock market development is limited in developing economies relative to research conducted in developed countries. Furthermore, the research that has been conducted on the relationship between stock market development and economic growth in Africa, has generated inconclusive and conflicting results, in addition to this, the institutional quality of African countries is disregarded in most studies when the stock market development and economic growth nexus is analysed. Therefore, this study aims to explore the relationship between stock market development and economic growth, incorporating institution variables to account for the institutional quality of African countries to provide clarity in this context. To achieve this, two sets of research hypotheses were created the first set aims to determine whether stock development has an influence on economic growth. The second set is to determine if there is any causal relationship between stock market development and economic growth. The study utilizes System Generalized Method of Moments models to examine the effect of stock market development on economic growth, in 18 African countries for the period 2003- 2016. The results indicate that market capitalization has a positive influence on economic growth whilst, contrastingly liquidity in the form of value traded has a negative effect on economic growth. The study further analyses the causal relationship between stock market development and economic growth, by employing the recently developed PVAR-Granger causality test. However, before this is done several Pedroni cointegration tests were first conducted to establish whether a long-term relationship exists between stock market development and economic growth, which revealed that no strong evidence of cointegration exists necessitating the use of a PVAR-Granger causality test. The PVAR-Granger causality test reveals that stock market development granger causes economic growth, irrespective of the stock market development measure used and there is no feedback effect from economic growth. The unilateral causality established in this study flowing from stock market development to economic growth supports the supply-leading hypothesis. The overall results of this study demonstrate that there is ambiguity on the impact of stock market development on economic growth, as the measures of stock market development have contrasting impacts on economic growth. The size component of stock market development in the form of market capitalization has positive influence whilst, liquidity in form of total value traded has a negative effect. However, the causal relationship is clearly shown to be unilaterally flowing from stock market development to economic growth.
- Full Text:
- Date Issued: 2019
The role of agricultural support programmes on the livelihoods of smallholder maize farmers in Lesotho: asset utilisation, productivity and perceptions
- Authors: Mohlahatsa, Taole
- Date: 2019
- Subjects: Agriculture and state -- Lesotho , Agriculture -- Economic aspects -- Lesotho , Farms, Small -- Government policy -- Lesotho , Farms, Small -- Lesotho , Agricultural assistance -- Lesotho , Rural development -- Lesotho
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/71580 , vital:29914
- Description: The agricultural sector is widely considered an important contributor to economic development in least developed countries. It plays an important role in Lesotho and has been the backbone of rural activities and the prime employer of Basotho citizens. Smallholder farming is recognised by the government of Lesotho as a vehicle for addressing food security and poverty reduction. Maize is the principal staple crop produced by about 90 percent of farmers in Lesotho and it constitutes about 80 percent of the Basotho diet. Maize production is highly affected by climate change and is characterised by fluctuating yields because of erratic rainfall. In addition to unfavorable climate change, smallholder farmers in Lesotho experience challenges such as lack of farming inputs, limited access to markets and limited financial capital. These constraints confine them to a life of subsistence farming with low production and increased incidences of poverty. The government of Lesotho has intervened in the smallholder agricultural sector to stimulate production and productivity by introducing some agricultural programmes such as (i) the National Fertiliser and Input subsidy, (ii) the Smallholder Agricultural Development Programme, (iii) the National Block Farming, and (iv) the Integrated Watershed Management Programme. However, despite such government interventions, production in the smallholder agricultural sector continues to face recurring constraints. Studies on the National Block Farming Programme have showed that the programme has had limited impact on the livelihoods of smallholder farmers. Furthermore, farmers believe the Integrated Watershed Management Programme has a biased selection criteria as selection of areas is influenced by politicians who favour areas where they have a large political following and marginilise other areas. These concerns have also led to low participation rates in such programmes as wealthier, large scale farmers capture most of the benefits of government programmes. Disproportionate benefits of agricultural programmes to smallholder farmers imply that they continue to face the same constraints in production and have to find alternative ways of maintaining production and selling excess produce to sustain their livelihoods. The main goal of this research is therefore to study the livelihoods of smallholder maize farmers in Lesotho and how agricultural support programmes influence their production of maize. The study adopted a pragmatic mixed methods approach with a qualitative dominant sequential design. Accordingly, both quantitative and qualitative data was used to address the research goal. Quantitative data collected from the Lesotho Bureau of Statistics and the World Bank was used for trend analysis on maize productivity, temperature and rainfall over the period 1980-2016. Qualitative primary data was collected by conducting focus group discussions with smallholder maize farmers and key stakeholder interviews using the sustainable livelihood framework as a conceptual guide. The study comprised of a total of 85 research participants consisting of 75 smallholder maize farmers and 10 key stakeholders. Farmers were selected from 10 key maize producing areas in Leribe and Mafeteng districts in Leribe. Results revealed fluctuating maize productivity and productivity growth rates where such fluctuations are caused by government intervention and natural calamities in the form of erratic rains and dry spells. Droughts and late arrival of subsidised inputs are the chief constraints to maize production. In relation to livelihood assets, human and social assets are the more available assets relative to other assets (financial, natural and physical) of the sustainable livelihood framework. Furthermore, the National Fertiliser and Input subsidy Programme and the Smallholder Agricultural Development Programme are the most beneficial programmes to farmers livelihoods as they increase the accessibility of limited livelihood assets and therefore allowing farmers to achieve their livelihood goals. In contrast, the National Block Farming and the Integrated Watershed Management Programme are the least beneficial programmes to farmers’ livelihoods and are biased in their geographical targeting criteria. The study recommends that the government revises all selected support programmes in this study in areas warranting improvements so as to fairly and efficiently allocate resources that meet the needs of farmers. The study also recommends that farmers put more effort in adopting new technologies and strategies to improve production of maize in areas where government intervention has failed.
- Full Text:
- Date Issued: 2019
- Authors: Mohlahatsa, Taole
- Date: 2019
- Subjects: Agriculture and state -- Lesotho , Agriculture -- Economic aspects -- Lesotho , Farms, Small -- Government policy -- Lesotho , Farms, Small -- Lesotho , Agricultural assistance -- Lesotho , Rural development -- Lesotho
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/71580 , vital:29914
- Description: The agricultural sector is widely considered an important contributor to economic development in least developed countries. It plays an important role in Lesotho and has been the backbone of rural activities and the prime employer of Basotho citizens. Smallholder farming is recognised by the government of Lesotho as a vehicle for addressing food security and poverty reduction. Maize is the principal staple crop produced by about 90 percent of farmers in Lesotho and it constitutes about 80 percent of the Basotho diet. Maize production is highly affected by climate change and is characterised by fluctuating yields because of erratic rainfall. In addition to unfavorable climate change, smallholder farmers in Lesotho experience challenges such as lack of farming inputs, limited access to markets and limited financial capital. These constraints confine them to a life of subsistence farming with low production and increased incidences of poverty. The government of Lesotho has intervened in the smallholder agricultural sector to stimulate production and productivity by introducing some agricultural programmes such as (i) the National Fertiliser and Input subsidy, (ii) the Smallholder Agricultural Development Programme, (iii) the National Block Farming, and (iv) the Integrated Watershed Management Programme. However, despite such government interventions, production in the smallholder agricultural sector continues to face recurring constraints. Studies on the National Block Farming Programme have showed that the programme has had limited impact on the livelihoods of smallholder farmers. Furthermore, farmers believe the Integrated Watershed Management Programme has a biased selection criteria as selection of areas is influenced by politicians who favour areas where they have a large political following and marginilise other areas. These concerns have also led to low participation rates in such programmes as wealthier, large scale farmers capture most of the benefits of government programmes. Disproportionate benefits of agricultural programmes to smallholder farmers imply that they continue to face the same constraints in production and have to find alternative ways of maintaining production and selling excess produce to sustain their livelihoods. The main goal of this research is therefore to study the livelihoods of smallholder maize farmers in Lesotho and how agricultural support programmes influence their production of maize. The study adopted a pragmatic mixed methods approach with a qualitative dominant sequential design. Accordingly, both quantitative and qualitative data was used to address the research goal. Quantitative data collected from the Lesotho Bureau of Statistics and the World Bank was used for trend analysis on maize productivity, temperature and rainfall over the period 1980-2016. Qualitative primary data was collected by conducting focus group discussions with smallholder maize farmers and key stakeholder interviews using the sustainable livelihood framework as a conceptual guide. The study comprised of a total of 85 research participants consisting of 75 smallholder maize farmers and 10 key stakeholders. Farmers were selected from 10 key maize producing areas in Leribe and Mafeteng districts in Leribe. Results revealed fluctuating maize productivity and productivity growth rates where such fluctuations are caused by government intervention and natural calamities in the form of erratic rains and dry spells. Droughts and late arrival of subsidised inputs are the chief constraints to maize production. In relation to livelihood assets, human and social assets are the more available assets relative to other assets (financial, natural and physical) of the sustainable livelihood framework. Furthermore, the National Fertiliser and Input subsidy Programme and the Smallholder Agricultural Development Programme are the most beneficial programmes to farmers livelihoods as they increase the accessibility of limited livelihood assets and therefore allowing farmers to achieve their livelihood goals. In contrast, the National Block Farming and the Integrated Watershed Management Programme are the least beneficial programmes to farmers’ livelihoods and are biased in their geographical targeting criteria. The study recommends that the government revises all selected support programmes in this study in areas warranting improvements so as to fairly and efficiently allocate resources that meet the needs of farmers. The study also recommends that farmers put more effort in adopting new technologies and strategies to improve production of maize in areas where government intervention has failed.
- Full Text:
- Date Issued: 2019
Toward universal sustainability: strategies and guidelines
- Authors: Robertson, Struan Ross
- Date: 2019
- Subjects: Sustainability , Sustainable development , Economic development , Social planning
- Language: English
- Type: text , Thesis , Masters , MEcon
- Identifier: http://hdl.handle.net/10962/71591 , vital:29922
- Description: This research considers the notion of universal sustainability, which involves the three well-known pillars of sustainable development, namely, economic development, social development, and environmental sustainability. Critical to achieving this unity of purpose in the aligning of economic and social aspirations with the limits of the natural environment is the enhancing of human capability and the development of political institutions capable of representing the interests of all people by leveraging resources responsibly. Universal sustainability differs from the concept of sustainable development in that the emphasis is cast not on merely achieving economic development despite the challenges presented by social and environmental concerns, but on seeking to understand what a better society might look like that integrates outcomes in-line with these three factors. Universal sustainability is about re-thinking the purpose of material progress to realign this with the need for social cohesion and to reposition human values and expectations safely within ecological boundaries. In other words, strategies and guidelines that promote the realisation of universal sustainability would recommend a society that values economic and technological progress with equal measure to social development and environmental sustainability, as well as all the other factors that promote human wellbeing. Consequently, this research also considers the inter-linkages that are found between economic development (i.e. technological advancement) and social (i.e. normative progress) and societal (i.e. long-term institutional differentiation) development with respect to labour markets, the formation of skills, the scope of welfare regimes and hence, the trajectory of the social reproduction of society. The prospects of environmental sustainability, like that of societal development, are found to be influenced by the values that a society holds and the ability of economic and social factors to adapt in response to the environmental challenges that face societies in socially workable ways. This research concerns the great quest for meaning and purpose that humans have undertaken throughout history, and asks how human wellbeing – in its best, most expansive sense, can be improved and how societies can advance and prosper going forward while keeping the avenue of individual self-actualisation open as a possibility in the everyday lives of citizens? In achieving this end, this research looks at what economic development strategies suggest as tenable against these aspirations. Furthermore, this research looks at the experience of advanced democratic societies to better conceive of how material progress, social cohesion via education and welfare, and environmental sustainability can be attained. The selection of these countries ensures understanding for the kind of political arrangements that safeguard human wellbeing and give voice to freedom, material opportunities, and civic responsibilities. Critical to both these assessments is defining the mechanics that underlie the processes that achieve material and moral progress in human societies. The main goal of this research is to recommend strategies and guidelines for developing countries like South Africa that wish to develop and thrive. Therefore, this research presents an assessment framework for understanding both universal sustainability and how to achieve it. This research concludes that mindfulness about the natural environment and the services it supplies, as well as mindfulness about what drives economic development and what supports the conditions for human flourishing, are necessary for universal sustainability strategies and guidelines to work. Indeed, the ideologies that societies subscribe to and the values they hold are important 84 to creating the right conditions for economic tools to work to advance economic development, material improvement, socio-environmental justice, and ultimately for achieving universal sustainability. But central to both economic and environmental futures is an understanding that at the heart of the matter is a concern for apprehending what drives human behaviour and aspiration, and what creates social cohesion.
- Full Text:
- Date Issued: 2019
- Authors: Robertson, Struan Ross
- Date: 2019
- Subjects: Sustainability , Sustainable development , Economic development , Social planning
- Language: English
- Type: text , Thesis , Masters , MEcon
- Identifier: http://hdl.handle.net/10962/71591 , vital:29922
- Description: This research considers the notion of universal sustainability, which involves the three well-known pillars of sustainable development, namely, economic development, social development, and environmental sustainability. Critical to achieving this unity of purpose in the aligning of economic and social aspirations with the limits of the natural environment is the enhancing of human capability and the development of political institutions capable of representing the interests of all people by leveraging resources responsibly. Universal sustainability differs from the concept of sustainable development in that the emphasis is cast not on merely achieving economic development despite the challenges presented by social and environmental concerns, but on seeking to understand what a better society might look like that integrates outcomes in-line with these three factors. Universal sustainability is about re-thinking the purpose of material progress to realign this with the need for social cohesion and to reposition human values and expectations safely within ecological boundaries. In other words, strategies and guidelines that promote the realisation of universal sustainability would recommend a society that values economic and technological progress with equal measure to social development and environmental sustainability, as well as all the other factors that promote human wellbeing. Consequently, this research also considers the inter-linkages that are found between economic development (i.e. technological advancement) and social (i.e. normative progress) and societal (i.e. long-term institutional differentiation) development with respect to labour markets, the formation of skills, the scope of welfare regimes and hence, the trajectory of the social reproduction of society. The prospects of environmental sustainability, like that of societal development, are found to be influenced by the values that a society holds and the ability of economic and social factors to adapt in response to the environmental challenges that face societies in socially workable ways. This research concerns the great quest for meaning and purpose that humans have undertaken throughout history, and asks how human wellbeing – in its best, most expansive sense, can be improved and how societies can advance and prosper going forward while keeping the avenue of individual self-actualisation open as a possibility in the everyday lives of citizens? In achieving this end, this research looks at what economic development strategies suggest as tenable against these aspirations. Furthermore, this research looks at the experience of advanced democratic societies to better conceive of how material progress, social cohesion via education and welfare, and environmental sustainability can be attained. The selection of these countries ensures understanding for the kind of political arrangements that safeguard human wellbeing and give voice to freedom, material opportunities, and civic responsibilities. Critical to both these assessments is defining the mechanics that underlie the processes that achieve material and moral progress in human societies. The main goal of this research is to recommend strategies and guidelines for developing countries like South Africa that wish to develop and thrive. Therefore, this research presents an assessment framework for understanding both universal sustainability and how to achieve it. This research concludes that mindfulness about the natural environment and the services it supplies, as well as mindfulness about what drives economic development and what supports the conditions for human flourishing, are necessary for universal sustainability strategies and guidelines to work. Indeed, the ideologies that societies subscribe to and the values they hold are important 84 to creating the right conditions for economic tools to work to advance economic development, material improvement, socio-environmental justice, and ultimately for achieving universal sustainability. But central to both economic and environmental futures is an understanding that at the heart of the matter is a concern for apprehending what drives human behaviour and aspiration, and what creates social cohesion.
- Full Text:
- Date Issued: 2019
An investigation of the informal market value chain for prickly pear (Opuntia ficus-indica) in Nelson Mandela Bay, Eastern Cape
- Authors: Ntsonge, Sinazo
- Date: 2018
- Subjects: Opuntia ficus-indica -- South Africa -- Nelson Mandela Bay Municipality , Alien plants -- Economic aspects -- South Africa -- Nelson Mandela Bay Municipality , Women heads of households -- South Africa -- Nelson Mandela Bay Municipality , Poor -- South Africa -- Nelson Mandela Bay Municipality , Informal sector (Economics) -- South Africa -- Nelson Mandela Bay Municipality , Sustainable Livelihoods Framework
- Language: English
- Type: text , Thesis , Masters , MSc
- Identifier: http://hdl.handle.net/10962/62894 , vital:28308
- Description: The use of alien plant species as part of the livelihood resources of poor people raises conflicts with national legislation, which views these plants as threats to native plant biodiversity. However, there is also increasing body of literature on the contribution that some of these plants make to the livelihoods of poor people. The level of significance of some alien plant species to livelihoods is mostly highlighted in the case of female market participants who are in a position of household headship. Since most African cultures dictate the role of females as solely being that of homemaker while males are assigned the role household headship and breadwinner, women often find themselves having to shoulder the household responsibilities when the household head is no longer there. This was the case in the Nelson Mandela Bay informal prickly pear market that this study sought to investigate. Even though there were also male participants in the prickly pear market, the majority of participants in the market were female who also mentioned they were the sole breadwinner for their households. This study investigated the economic contribution that the prickly pear (Opuntia ficus-indica) informal market makes to the livelihoods of people living in the Nelson Mandela Bay. The significance of the market’s contribution to their livelihoods was examined through using the Sustainable Livelihoods Framework. The study revealed that although the prickly pear income was largely supplementary due to it being available for only three months of the year, the income was a safety net resource for the market participants who had limited access to other sources of income. The results also highlighted the reasons people were engaging in the informal prickly pear market. The main reason that was mentioned was unemployment. Through a livelihoods analysis using the Sustainable Livelihoods Framework, it was revealed that the other factors that were contributing to their unemployment were low levels of education, low levels of marketable skills, and old age. The study revealed through calculations of the estimated economic value of each market activity the potential of the prickly pear to be used as a poverty fighting tool. Although the results of this study only highlight the economic value of the prickly pear to people in a small area compared to the rest of the province and the country, the informal market’s significance still presents a strong case for the establishment of an agroprocessing industry, which would support the production of value-added products. Since the largest populations of the prickly pear in Uitenhage are currently under effective control by the cochineal species, promotion of its economic value instead of eradicating it without considering its value to the livelihoods of the people in the market could also ensure that its populations are kept under control. Job creation in the agroprocessing industry would not only improve the livelihoods of those involved in the market, but would also feed into the national economy instead of taking from it via the costs incurred during clearing.
- Full Text:
- Date Issued: 2018
- Authors: Ntsonge, Sinazo
- Date: 2018
- Subjects: Opuntia ficus-indica -- South Africa -- Nelson Mandela Bay Municipality , Alien plants -- Economic aspects -- South Africa -- Nelson Mandela Bay Municipality , Women heads of households -- South Africa -- Nelson Mandela Bay Municipality , Poor -- South Africa -- Nelson Mandela Bay Municipality , Informal sector (Economics) -- South Africa -- Nelson Mandela Bay Municipality , Sustainable Livelihoods Framework
- Language: English
- Type: text , Thesis , Masters , MSc
- Identifier: http://hdl.handle.net/10962/62894 , vital:28308
- Description: The use of alien plant species as part of the livelihood resources of poor people raises conflicts with national legislation, which views these plants as threats to native plant biodiversity. However, there is also increasing body of literature on the contribution that some of these plants make to the livelihoods of poor people. The level of significance of some alien plant species to livelihoods is mostly highlighted in the case of female market participants who are in a position of household headship. Since most African cultures dictate the role of females as solely being that of homemaker while males are assigned the role household headship and breadwinner, women often find themselves having to shoulder the household responsibilities when the household head is no longer there. This was the case in the Nelson Mandela Bay informal prickly pear market that this study sought to investigate. Even though there were also male participants in the prickly pear market, the majority of participants in the market were female who also mentioned they were the sole breadwinner for their households. This study investigated the economic contribution that the prickly pear (Opuntia ficus-indica) informal market makes to the livelihoods of people living in the Nelson Mandela Bay. The significance of the market’s contribution to their livelihoods was examined through using the Sustainable Livelihoods Framework. The study revealed that although the prickly pear income was largely supplementary due to it being available for only three months of the year, the income was a safety net resource for the market participants who had limited access to other sources of income. The results also highlighted the reasons people were engaging in the informal prickly pear market. The main reason that was mentioned was unemployment. Through a livelihoods analysis using the Sustainable Livelihoods Framework, it was revealed that the other factors that were contributing to their unemployment were low levels of education, low levels of marketable skills, and old age. The study revealed through calculations of the estimated economic value of each market activity the potential of the prickly pear to be used as a poverty fighting tool. Although the results of this study only highlight the economic value of the prickly pear to people in a small area compared to the rest of the province and the country, the informal market’s significance still presents a strong case for the establishment of an agroprocessing industry, which would support the production of value-added products. Since the largest populations of the prickly pear in Uitenhage are currently under effective control by the cochineal species, promotion of its economic value instead of eradicating it without considering its value to the livelihoods of the people in the market could also ensure that its populations are kept under control. Job creation in the agroprocessing industry would not only improve the livelihoods of those involved in the market, but would also feed into the national economy instead of taking from it via the costs incurred during clearing.
- Full Text:
- Date Issued: 2018
Energy use patterns and trends: the impact of energy policy in South African low-income households
- Israel-Akinbo, Sylvia Olawumi
- Authors: Israel-Akinbo, Sylvia Olawumi
- Date: 2018
- Subjects: Energy policy -- Social aspects -- South Africa , Energy security -- South Africa , Households -- Economic aspects -- South Africa , Poor -- Energy assistance -- South Africa , Poor -- South Africa , University of Cape Town. National Income Dynamics Study , Free Basic Electricity Policy (South Africa) , Income and Expenditure Survey (South Africa)
- Language: English
- Type: text , Thesis , Doctoral , PhD
- Identifier: http://hdl.handle.net/10962/62264 , vital:28148
- Description: Energy poverty is a growing concern especially amongst low-income populations in developing countries. The transition to modern energy carriers is associated with welfare improvement and it is considered as an important developmental goal to achieve, in order to eradicate energy poverty. As such, the South African government has made energy poverty an issue of policy focus. Literature abounds with different measures of energy poverty; energy programmes and policies are also aimed at improving the welfare of the low-income households in terms of basic services such as electricity. As a point of entry into this study, this thesis explored energy use patterns and trends in low-income South African households. The research objectives addressed in the study included investigating the extent of energy poverty through a multidimensional energy poverty index, examining the extent to which the 'energy ladder' and 'energy stacking' models explains energy transition patterns and to examining whether the Free Basic Electricity Policy has impacted on energy choices and energy poverty. In order to contribute to energy poverty and energy policy discussion in South Africa, this study has investigated the dimensions of energy poverty amongst low-income South African households from these three different perspectives (objectives). A positivist approach, by using a quantitative method was used to underpin the study. The study utilised secondary data, which were from the National Income Dynamics Survey and Income and Expenditure Survey. The former was used for the analysis of the multidimensional energy poverty index and energy transition patterns whilst the latter was used for the analysis of the impact of the Free Basic Electricity Policy. The four waves of the National Income Dynamics Survey, with 2008 as the base year and the 2010/2011 version of the Income and Expenditure Survey were used whilst the data were processed through the quantitative software package, STATA version 12. The data were then analysed using the multidimensional energy poverty framework by Nussbaumer et al. (2011) and econometric models, which best fit the objectives. The result of the panel analysis, which assesses the multidimensional energy poverty for low-income households in South Africa showed that low-income households in both urban and rural areas are in a moderate state of energy poverty but different levels. However, the cross-sectional analysis revealed that the percentage of low-income households that are energy poor is reducing for the rural households but increasing for their urban counterparts from 2008 to 2014. The panel and cross-sectional results of the contribution of the energy dimensions in multidimensional energy poverty shows that the low-income households are especially energy poor in terms of heating fuel. The findings from the econometric estimates partly confirmed an energy ladder behaviour for the energy choice for cooking. An energy stacking behaviour was confirmed for the low- income households for these energy services - heating and lighting. Moreover, it was found that with respect to cooking and heating, low-income households living in a modern dwelling, having a small household size and residing in an urban area are less likely to use transitional or traditional energy carriers but most likely to use modern energy carriers. In addition, low-income households are more likely to use modern energy carriers for their cooking and heating in 2010, 2012 and 2014 than in 2008. For lighting energy service, low- income households living in a modern dwelling in an urban settlement are most likely to use modern energy carriers for lighting and less likely to use transitional energy carriers or candles. Only in 2014 were low-income households more likely to use modern energy carriers for lighting than in 2008. The results further showed that modern energy carriers have the highest probability of being preferred for lighting followed by cooking and lastly heating. Also emerging from the findings are that more urban low-income households are receiving the Free Basic Electricity (FBE) grant than their counterparts in the rural areas. The probability of low-income households owning entertainment/education appliance and food preserving appliance is positively influenced by access to Free Basic Electricity. The low- income households living in an urban settlement and in a modern type of dwelling supported this result. However, household size does not seems to support this result should it grow larger.
- Full Text:
- Date Issued: 2018
- Authors: Israel-Akinbo, Sylvia Olawumi
- Date: 2018
- Subjects: Energy policy -- Social aspects -- South Africa , Energy security -- South Africa , Households -- Economic aspects -- South Africa , Poor -- Energy assistance -- South Africa , Poor -- South Africa , University of Cape Town. National Income Dynamics Study , Free Basic Electricity Policy (South Africa) , Income and Expenditure Survey (South Africa)
- Language: English
- Type: text , Thesis , Doctoral , PhD
- Identifier: http://hdl.handle.net/10962/62264 , vital:28148
- Description: Energy poverty is a growing concern especially amongst low-income populations in developing countries. The transition to modern energy carriers is associated with welfare improvement and it is considered as an important developmental goal to achieve, in order to eradicate energy poverty. As such, the South African government has made energy poverty an issue of policy focus. Literature abounds with different measures of energy poverty; energy programmes and policies are also aimed at improving the welfare of the low-income households in terms of basic services such as electricity. As a point of entry into this study, this thesis explored energy use patterns and trends in low-income South African households. The research objectives addressed in the study included investigating the extent of energy poverty through a multidimensional energy poverty index, examining the extent to which the 'energy ladder' and 'energy stacking' models explains energy transition patterns and to examining whether the Free Basic Electricity Policy has impacted on energy choices and energy poverty. In order to contribute to energy poverty and energy policy discussion in South Africa, this study has investigated the dimensions of energy poverty amongst low-income South African households from these three different perspectives (objectives). A positivist approach, by using a quantitative method was used to underpin the study. The study utilised secondary data, which were from the National Income Dynamics Survey and Income and Expenditure Survey. The former was used for the analysis of the multidimensional energy poverty index and energy transition patterns whilst the latter was used for the analysis of the impact of the Free Basic Electricity Policy. The four waves of the National Income Dynamics Survey, with 2008 as the base year and the 2010/2011 version of the Income and Expenditure Survey were used whilst the data were processed through the quantitative software package, STATA version 12. The data were then analysed using the multidimensional energy poverty framework by Nussbaumer et al. (2011) and econometric models, which best fit the objectives. The result of the panel analysis, which assesses the multidimensional energy poverty for low-income households in South Africa showed that low-income households in both urban and rural areas are in a moderate state of energy poverty but different levels. However, the cross-sectional analysis revealed that the percentage of low-income households that are energy poor is reducing for the rural households but increasing for their urban counterparts from 2008 to 2014. The panel and cross-sectional results of the contribution of the energy dimensions in multidimensional energy poverty shows that the low-income households are especially energy poor in terms of heating fuel. The findings from the econometric estimates partly confirmed an energy ladder behaviour for the energy choice for cooking. An energy stacking behaviour was confirmed for the low- income households for these energy services - heating and lighting. Moreover, it was found that with respect to cooking and heating, low-income households living in a modern dwelling, having a small household size and residing in an urban area are less likely to use transitional or traditional energy carriers but most likely to use modern energy carriers. In addition, low-income households are more likely to use modern energy carriers for their cooking and heating in 2010, 2012 and 2014 than in 2008. For lighting energy service, low- income households living in a modern dwelling in an urban settlement are most likely to use modern energy carriers for lighting and less likely to use transitional energy carriers or candles. Only in 2014 were low-income households more likely to use modern energy carriers for lighting than in 2008. The results further showed that modern energy carriers have the highest probability of being preferred for lighting followed by cooking and lastly heating. Also emerging from the findings are that more urban low-income households are receiving the Free Basic Electricity (FBE) grant than their counterparts in the rural areas. The probability of low-income households owning entertainment/education appliance and food preserving appliance is positively influenced by access to Free Basic Electricity. The low- income households living in an urban settlement and in a modern type of dwelling supported this result. However, household size does not seems to support this result should it grow larger.
- Full Text:
- Date Issued: 2018
Integration of small-scale mohair farmers into the commercial agricultural economy in Lesotho: a new institutional economics approach
- Authors: Rantlo, Montoeli Ashby
- Date: 2018
- Subjects: Farms, Small Lesotho , Mohair Lesotho , Institutional economics , Transaction costs , Informal sector (Economics)
- Language: English
- Type: text , Thesis , Doctoral , PhD
- Identifier: http://hdl.handle.net/10962/62275 , vital:28149
- Description: Agriculture continues to be a strategic sector in the development of most low-income countries like Lesotho where small-scale farming is the dominant livelihood activity that provides income and employment to the people. Smallholder farmers' integration into the commercial agricultural markets is a crucial element for economic development and has become a part of development strategies for developing countries and the objectives of international development institutions. The integration of the smallholders into these markets is dependent upon a number of factors including formal and informal institutions. Factors like population growth and demographic changes, technological change and introduction of new commodities, development of infrastructure and market institutions, development of the nonfarm sector and broader economy, rising labour opportunity costs, and macroeconomic, trade and sectoral policies affecting prices and other driving forces determine market participation. In addition, development of input and output markets, institutions like property rights and land tenure, market regulations, cultural and social factors affecting consumption preferences, production and market opportunities and constraints, agro-climatic conditions, and production and market related risks are other factors that affect the commercialisation process. On the other hand, factors like smallholder resource endowments including land and other natural capital, labour, physical capital, and human capital among others are household specific and considered internal determinants of market participation. Nevertheless, the decision to participate in agricultural markets lies with the individual farming household. Under the New Institutional Economics (NIE), this decision is influenced by institutional factors such as risk and preferences, factors which affect household production and the level of costs associated with market transactions. These market transactions are commonly referred to as transaction costs. The study focused on investigating the institutions that limit the integration of small-scale mohair farmers into the commercial agricultural economy in Lesotho. The documentation and evaluation of the institutional structure of the mohair industry is performed whereby the institutional factors influencing participation of small-scale mohair farmers in formal, informal and illegal markets in Lesotho and factors contributing to transaction costs associated with the integration of small-scale farmers into the commercial mohair sector are investigated. Therefore, the investigation will help to address the institutional problems hindering the development of an effective marketing structure for the commercialisation of small-scale mohair producers in Lesotho. The results of the study show that the small-scale mohair farmers that use the formal markets are integrated into the commercial agricultural economy and these farmers' integration into the mainstream economy is influenced by access to government support in the form of shearing sheds, transport subsidies and advisory services. They also have access to market information, marketing infrastructure, knowledge of grades and standards and secure property rights. Other factors that helped their integration into the commercial economy is their contractual agreements with mohair buyers, path dependent based decision making as well as the collective approach to mohair farming. The small-scale mohair farmers using the informal markets do not receive the advantages received by the famers in the formal markets. These small-scale mohair farmers are not integrated into the commercial markets and their only option is the informal markets and their participation in these markets is enhanced by their marketing arrangements with the informal traders, culture influenced decisions, social capital and prompt payments. Despite integration into the commercial agricultural economy, small-scale farmers that use formal markets face the challenges of power imbalances, mistrust and conflicts which may affect this integration into the commercial markets if left unchecked. The study concludes that in the face of institutional challenges, the small-scale mohair farmers using the formal markets are integrated into the commercial agricultural economy and there is potential for improvement of their integration as well as the integration of the small-scale mohair farmers that use the informal markets if institutional challenges are addressed.
- Full Text:
- Date Issued: 2018
- Authors: Rantlo, Montoeli Ashby
- Date: 2018
- Subjects: Farms, Small Lesotho , Mohair Lesotho , Institutional economics , Transaction costs , Informal sector (Economics)
- Language: English
- Type: text , Thesis , Doctoral , PhD
- Identifier: http://hdl.handle.net/10962/62275 , vital:28149
- Description: Agriculture continues to be a strategic sector in the development of most low-income countries like Lesotho where small-scale farming is the dominant livelihood activity that provides income and employment to the people. Smallholder farmers' integration into the commercial agricultural markets is a crucial element for economic development and has become a part of development strategies for developing countries and the objectives of international development institutions. The integration of the smallholders into these markets is dependent upon a number of factors including formal and informal institutions. Factors like population growth and demographic changes, technological change and introduction of new commodities, development of infrastructure and market institutions, development of the nonfarm sector and broader economy, rising labour opportunity costs, and macroeconomic, trade and sectoral policies affecting prices and other driving forces determine market participation. In addition, development of input and output markets, institutions like property rights and land tenure, market regulations, cultural and social factors affecting consumption preferences, production and market opportunities and constraints, agro-climatic conditions, and production and market related risks are other factors that affect the commercialisation process. On the other hand, factors like smallholder resource endowments including land and other natural capital, labour, physical capital, and human capital among others are household specific and considered internal determinants of market participation. Nevertheless, the decision to participate in agricultural markets lies with the individual farming household. Under the New Institutional Economics (NIE), this decision is influenced by institutional factors such as risk and preferences, factors which affect household production and the level of costs associated with market transactions. These market transactions are commonly referred to as transaction costs. The study focused on investigating the institutions that limit the integration of small-scale mohair farmers into the commercial agricultural economy in Lesotho. The documentation and evaluation of the institutional structure of the mohair industry is performed whereby the institutional factors influencing participation of small-scale mohair farmers in formal, informal and illegal markets in Lesotho and factors contributing to transaction costs associated with the integration of small-scale farmers into the commercial mohair sector are investigated. Therefore, the investigation will help to address the institutional problems hindering the development of an effective marketing structure for the commercialisation of small-scale mohair producers in Lesotho. The results of the study show that the small-scale mohair farmers that use the formal markets are integrated into the commercial agricultural economy and these farmers' integration into the mainstream economy is influenced by access to government support in the form of shearing sheds, transport subsidies and advisory services. They also have access to market information, marketing infrastructure, knowledge of grades and standards and secure property rights. Other factors that helped their integration into the commercial economy is their contractual agreements with mohair buyers, path dependent based decision making as well as the collective approach to mohair farming. The small-scale mohair farmers using the informal markets do not receive the advantages received by the famers in the formal markets. These small-scale mohair farmers are not integrated into the commercial markets and their only option is the informal markets and their participation in these markets is enhanced by their marketing arrangements with the informal traders, culture influenced decisions, social capital and prompt payments. Despite integration into the commercial agricultural economy, small-scale farmers that use formal markets face the challenges of power imbalances, mistrust and conflicts which may affect this integration into the commercial markets if left unchecked. The study concludes that in the face of institutional challenges, the small-scale mohair farmers using the formal markets are integrated into the commercial agricultural economy and there is potential for improvement of their integration as well as the integration of the small-scale mohair farmers that use the informal markets if institutional challenges are addressed.
- Full Text:
- Date Issued: 2018