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:
- 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:
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:
- 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:
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:
- 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:
Measuring the elasticity of electricity demand in South Africa: implications for future demand and supply
- Authors: Kosiorek, Sebastian
- Date: 2018
- Subjects: Electric power consumption -- South Africa , Electric power distribution -- South Africa , Electric power production -- South Africa , Electric power failures -- South Africa , Electric utilities -- Law and legislation -- South Africa , Autoregression (Statistics) , Renewable energy sources -- South Africa , Energy policy -- South Africa , Integrated Resource Plan
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/62472 , vital:28196
- Description: A key economic issue for government is the ability to effectively match electricity supply to electricity demand, because of the substantial economic losses in the case of where there is too little supply, or the waste of scarce resources where there is too much supply. In the case of South Africa, this issue, the importance of which was highlighted by the power shortages and associated “rolling blackouts” experience in 2008, has led to the creation of the Integrated Resource Plan (IRP) as a means to decide how energy policy will be developed. Recently, however, the IRP 2010 and its subsequent 2013 and 2016 (draft) updates have been criticised as being too optimistic in regards to their projections of economic growth and electricity demand, making the recommendations in these documents to be flawed. Using monthly data from January 1990 to May 2017, together with Autoregressive Distributed Lag (ARDL) bounds testing for cointegration, this paper measures changes in the elasticity of electricity demand as a result of the massive price hikes over the past decade. Thereafter, the implications of changed electricity as well as possibly lower Gross Domestic Product (GDP) growth in the future for forecasts of possible future demand for electricity are examined. From these revised forecasts, it is possible to make appropriate recommendations in regards to electricity supply policy for South Africa including what possible energy mix is needed as well as the requirements for creating new supply to meet possible future demand. It is concluded that future electricity demand is likely to be much lower than forecast in the IRP 2010 and IRP 2013 documents. The degree of uncertainty in electricity demand growth suggests that large-scale increases in supply capacity taking years to construct, such as coal or nuclear, should be avoided. Small, incremental increases in supply that are able to come on stream swiftly, such as gas, solar and wind power, are likely to be more appropriate for meeting South Africa’s future needs.
- Full Text:
- Authors: Kosiorek, Sebastian
- Date: 2018
- Subjects: Electric power consumption -- South Africa , Electric power distribution -- South Africa , Electric power production -- South Africa , Electric power failures -- South Africa , Electric utilities -- Law and legislation -- South Africa , Autoregression (Statistics) , Renewable energy sources -- South Africa , Energy policy -- South Africa , Integrated Resource Plan
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/62472 , vital:28196
- Description: A key economic issue for government is the ability to effectively match electricity supply to electricity demand, because of the substantial economic losses in the case of where there is too little supply, or the waste of scarce resources where there is too much supply. In the case of South Africa, this issue, the importance of which was highlighted by the power shortages and associated “rolling blackouts” experience in 2008, has led to the creation of the Integrated Resource Plan (IRP) as a means to decide how energy policy will be developed. Recently, however, the IRP 2010 and its subsequent 2013 and 2016 (draft) updates have been criticised as being too optimistic in regards to their projections of economic growth and electricity demand, making the recommendations in these documents to be flawed. Using monthly data from January 1990 to May 2017, together with Autoregressive Distributed Lag (ARDL) bounds testing for cointegration, this paper measures changes in the elasticity of electricity demand as a result of the massive price hikes over the past decade. Thereafter, the implications of changed electricity as well as possibly lower Gross Domestic Product (GDP) growth in the future for forecasts of possible future demand for electricity are examined. From these revised forecasts, it is possible to make appropriate recommendations in regards to electricity supply policy for South Africa including what possible energy mix is needed as well as the requirements for creating new supply to meet possible future demand. It is concluded that future electricity demand is likely to be much lower than forecast in the IRP 2010 and IRP 2013 documents. The degree of uncertainty in electricity demand growth suggests that large-scale increases in supply capacity taking years to construct, such as coal or nuclear, should be avoided. Small, incremental increases in supply that are able to come on stream swiftly, such as gas, solar and wind power, are likely to be more appropriate for meeting South Africa’s future needs.
- Full Text:
Regional value chains and development integration in the SADC Region: the case of the pharmaceutical industry
- Authors: Faydherbe, Sean
- Date: 2018
- Subjects: Pharmaceutical industry -- Africa, Southern , Southern African Development Community , Africa, Southern -- Economic integration , Regional value chains (RVCs) , Global value chains (GVCs)
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/62906 , vital:28309
- Description: This thesis investigates how regional value chains (RVCs) can be used to further development integration in the Southern African Development Community (SADC) region with a focus on the pharmaceutical manufacturing industry. The study is motivated by the apparent lack of attention given to the development of the pharmaceutical manufacturing industry in Southern Africa, the region’s high disease burden and the identification of the industry as economically and socially important by the SADC (2015) Industrialisation Strategy and Roadmap and the Department of Trade and Industry (DTI) (2017a) Industrial Policy Action Plan (IPAP). At the same time, South Africa and other countries in the region are exploring alternative approaches to regional integration, given the failure or stagnation of numerous formal integration arrangements throughout Africa, which have often lead to polarised rather than balanced development. This thesis argues that the development of RVCs within SADC may be an effective tool for development integration in the region, particularly in sectors such as pharmaceuticals. The study employs a value chain framework for the analysis and discusses development integration options, drawing on the East Asian experience with RVCs and on case studies involving India in the case of the pharmaceutical industry. It provides a sector profile of the industry in South Africa, due to its dominant status in the region, and also of Zimbabwe, due to that country’s potential to become a pharmaceutical industry leader in the region once again. The thesis first explores the important theoretical aspects underlying value chain analysis, namely governance and upgrading, while also outlining the rise of global value chains (GVCs). It analyses the complex relationships between RVCs and GVCs, and RVCs and regional integration. From this it concludes that RVCs are a stepping stone to participation in GVCs and that RVCs should be promoted within a development integration framework through strong regional cooperation. Value chain analysis is applied to the entire pharmaceutical manufacturing industry with a focus on SADC. The thesis examines how the sector is evolving with manufacturing multinational corporations (MNCs) outsourcing production and setting up centres of excellence in regional production hubs. The study argues that with the application of recommended policies, RVCs in sectors such as pharmaceutical manufacturing may provide a tool for achieving balanced development in the region. However, the study also finds that the pharmaceutical industry in SADC lags a long way behind the rest of the world and that many countries and firms will need to begin at the bottom of the value chain, with formulation, in order to contribute to the development of RVCs. The thesis concludes with recommendations on what policies are needed to foster the growth and development of pharmaceutical RVCs in the SADC region. These include strengthening public procurement, providing incentives for investment into the industry, incremental production and incremental export volumes, as well as certainty and predictability around the regulatory and business environment. Further, policy should aim to construct synergies and linkages on the ground between health systems and industrial developments; regulate service links important to pharmaceutical manufacturing; develop a coherent regional policy agenda; remove unnecessary non-tariff barriers to trade in the region and, in line with development integration, implement trade policy along with trade infrastructure that is efficient and includes airports, rail, roads and ports, as well as effective access to the internet.
- Full Text:
- Authors: Faydherbe, Sean
- Date: 2018
- Subjects: Pharmaceutical industry -- Africa, Southern , Southern African Development Community , Africa, Southern -- Economic integration , Regional value chains (RVCs) , Global value chains (GVCs)
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/62906 , vital:28309
- Description: This thesis investigates how regional value chains (RVCs) can be used to further development integration in the Southern African Development Community (SADC) region with a focus on the pharmaceutical manufacturing industry. The study is motivated by the apparent lack of attention given to the development of the pharmaceutical manufacturing industry in Southern Africa, the region’s high disease burden and the identification of the industry as economically and socially important by the SADC (2015) Industrialisation Strategy and Roadmap and the Department of Trade and Industry (DTI) (2017a) Industrial Policy Action Plan (IPAP). At the same time, South Africa and other countries in the region are exploring alternative approaches to regional integration, given the failure or stagnation of numerous formal integration arrangements throughout Africa, which have often lead to polarised rather than balanced development. This thesis argues that the development of RVCs within SADC may be an effective tool for development integration in the region, particularly in sectors such as pharmaceuticals. The study employs a value chain framework for the analysis and discusses development integration options, drawing on the East Asian experience with RVCs and on case studies involving India in the case of the pharmaceutical industry. It provides a sector profile of the industry in South Africa, due to its dominant status in the region, and also of Zimbabwe, due to that country’s potential to become a pharmaceutical industry leader in the region once again. The thesis first explores the important theoretical aspects underlying value chain analysis, namely governance and upgrading, while also outlining the rise of global value chains (GVCs). It analyses the complex relationships between RVCs and GVCs, and RVCs and regional integration. From this it concludes that RVCs are a stepping stone to participation in GVCs and that RVCs should be promoted within a development integration framework through strong regional cooperation. Value chain analysis is applied to the entire pharmaceutical manufacturing industry with a focus on SADC. The thesis examines how the sector is evolving with manufacturing multinational corporations (MNCs) outsourcing production and setting up centres of excellence in regional production hubs. The study argues that with the application of recommended policies, RVCs in sectors such as pharmaceutical manufacturing may provide a tool for achieving balanced development in the region. However, the study also finds that the pharmaceutical industry in SADC lags a long way behind the rest of the world and that many countries and firms will need to begin at the bottom of the value chain, with formulation, in order to contribute to the development of RVCs. The thesis concludes with recommendations on what policies are needed to foster the growth and development of pharmaceutical RVCs in the SADC region. These include strengthening public procurement, providing incentives for investment into the industry, incremental production and incremental export volumes, as well as certainty and predictability around the regulatory and business environment. Further, policy should aim to construct synergies and linkages on the ground between health systems and industrial developments; regulate service links important to pharmaceutical manufacturing; develop a coherent regional policy agenda; remove unnecessary non-tariff barriers to trade in the region and, in line with development integration, implement trade policy along with trade infrastructure that is efficient and includes airports, rail, roads and ports, as well as effective access to the internet.
- Full Text:
Suicide and the South African business cycle: a time series approach, 2006-2015
- Authors: Pitot, Amaury
- Date: 2018
- Subjects: Suicide -- South Africa , Business cycles -- South Africa , Autoregression (Statistics) , Divorce -- South Africa , AutoRegressive Distributed Lagged model (ARDL)
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/62286 , vital:28150
- Description: Suicide is a major public health issue and imposes substantial economic cost on society every year. For example, the World Health Organisation has estimated that there are over one million completed suicides every year, of which about 75% occur in middle and low income countries. In South Africa, suicide is one of the leading causes of non-natural death, but remains under-researched from an economic point of view due to limited data availability. Using monthly data for the period 2006-2015, this study explores whether there is a relationship between suicide and the South African business cycle. This is further broken down to examine how, if at all, this relationship with the business cycle differs across age-, gender-, and racial groups. The primary source of data for suicide and demographic groups were obtained from Statistics South Africa’s Mortality and Causes of Death Data from Death Notification released since 2006. The coincident indicator was used as a proxy for the business cycle as it represents the business cycle in real time. Using an autoregressive distributed lagged model (ARDL), a long run relationship was established with suicide being a function of the coincident indicator, divorce and fertility rate. The findings of this paper show that the overall suicide rate moves with the South African business cycle (i.e. pro-cyclical relationship) in the long run. This relationship holds for males, the black population group and the 15-29 and 30-44 age categories. In addition, the divorce rate had a positive and significant relationship with the overall suicide rate, as well as suicide among the black population group and for the 30-44 age category, whereas fertility rates had no significant relationship with suicide.
- Full Text:
- Authors: Pitot, Amaury
- Date: 2018
- Subjects: Suicide -- South Africa , Business cycles -- South Africa , Autoregression (Statistics) , Divorce -- South Africa , AutoRegressive Distributed Lagged model (ARDL)
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/62286 , vital:28150
- Description: Suicide is a major public health issue and imposes substantial economic cost on society every year. For example, the World Health Organisation has estimated that there are over one million completed suicides every year, of which about 75% occur in middle and low income countries. In South Africa, suicide is one of the leading causes of non-natural death, but remains under-researched from an economic point of view due to limited data availability. Using monthly data for the period 2006-2015, this study explores whether there is a relationship between suicide and the South African business cycle. This is further broken down to examine how, if at all, this relationship with the business cycle differs across age-, gender-, and racial groups. The primary source of data for suicide and demographic groups were obtained from Statistics South Africa’s Mortality and Causes of Death Data from Death Notification released since 2006. The coincident indicator was used as a proxy for the business cycle as it represents the business cycle in real time. Using an autoregressive distributed lagged model (ARDL), a long run relationship was established with suicide being a function of the coincident indicator, divorce and fertility rate. The findings of this paper show that the overall suicide rate moves with the South African business cycle (i.e. pro-cyclical relationship) in the long run. This relationship holds for males, the black population group and the 15-29 and 30-44 age categories. In addition, the divorce rate had a positive and significant relationship with the overall suicide rate, as well as suicide among the black population group and for the 30-44 age category, whereas fertility rates had no significant relationship with suicide.
- Full Text:
The fourth industrial revolution and human capital development
- Authors: Goldschmidt, Kyle
- Date: 2018
- Subjects: Technological innovations -- Economic aspects , Human capital , Intellectual capital , Economic development , Economic development -- Effect of education on , Fourth industrial revolution
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/62483 , vital:28197
- Description: The focus of the Fourth Industrial Revolution has been on its implications on Human Capital and its need to develop “21st-Century Skills" through education to ensure future labour and capital complementarity. Human Capital combined with 21st-Century Skills, it is claimed, can together generate economic growth, jobs and propel an economy into the next Industrial Revolution. However, Schwab’s (2016) concept of the Fourth Industrial Revolution, make no distinction between the Average Worker and the Knowledge Elite and their relationship to each other and successful economic growth. The different nature of these skills is absent in the literature to date. A critical analysis of literature will be used to examine Schwab’s (2016) claim of a Fourth Industrial Revolution and assess how the Average Worker and the Knowledge Elite relate to the Fourth Industrial Revolution and 21st-Century Skills. The evidence is provided on how both the Average Worker and the Knowledge Elite are key contributors to economic growth and will be important in the Fourth Industrial Revolution.
- Full Text:
- Authors: Goldschmidt, Kyle
- Date: 2018
- Subjects: Technological innovations -- Economic aspects , Human capital , Intellectual capital , Economic development , Economic development -- Effect of education on , Fourth industrial revolution
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/62483 , vital:28197
- Description: The focus of the Fourth Industrial Revolution has been on its implications on Human Capital and its need to develop “21st-Century Skills" through education to ensure future labour and capital complementarity. Human Capital combined with 21st-Century Skills, it is claimed, can together generate economic growth, jobs and propel an economy into the next Industrial Revolution. However, Schwab’s (2016) concept of the Fourth Industrial Revolution, make no distinction between the Average Worker and the Knowledge Elite and their relationship to each other and successful economic growth. The different nature of these skills is absent in the literature to date. A critical analysis of literature will be used to examine Schwab’s (2016) claim of a Fourth Industrial Revolution and assess how the Average Worker and the Knowledge Elite relate to the Fourth Industrial Revolution and 21st-Century Skills. The evidence is provided on how both the Average Worker and the Knowledge Elite are key contributors to economic growth and will be important in the Fourth Industrial Revolution.
- Full Text:
The impact of the cultural and creative industries on the economic growth and development of small cities and towns - guidelines for creating a regional cultural policy
- Authors: Ndhlovu, Raymond
- Date: 2018
- Subjects: Cultural industries -- South Africa , Cultural industries -- Economic aspects -- South Africa , Cultural policy , South Africa -- Economic conditions , Economic development -- South Africa -- Eastern Cape , South Africa. Department of Arts and Culture , Standard Bank National Arts Festival
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/61524 , vital:28032
- Description: The arts and cultural sector has come under even more financial strain than it previously was, as it has to compete with other sectors of the economy for the very limited public funding that is available. It is in this context that the economic impact, and the role, of the arts and cultural sector towards advancing economic growth and development, needs be examined. This thesis investigates the potential for the positive impact of the cultural and creative industries (CCIs) on growth and development of small cities and towns. Furthermore, it also provides guidelines for the development of regional cultural policy in small cities and towns. The CCIs have also been touted as a catalyst for economic growth and economic development, hence the global rise in their interest. For example, the CCIs have been used to redevelop and revive urban areas that have been rundown. CCIs, however, tend to develop in clusters, and additionally, they cluster around large cities. However, the lack of reliance of some CCIs on long supply chains or high-technology inputs may make them suitable candidates for investment in small cities and towns. Additionally, the link that small cities and towns have with rural and isolated areas makes them potential engines for driving growth, development, as well as employment creation for these areas, given their decline as a result of the transition from the traditional agricultural economy, to the knowledge economy. As CCIs have the propensity to drive government’s macroeconomic objectives such as efficiency, equity, economic growth and job creation, it is necessary to develop cultural policy that regards this. The tendency of CCIs to cluster and develop around large cities inevitably means that very little research into cultural policy directed towards regions without large cities and towns has been done. By the same token, very little research has also been conducted on how to craft cultural policy for such areas. In order then, for cultural policy for regions without large cities and towns to be developed, it is necessary to investigate, and provide, guidelines on, how to develop cultural policy for such regions. As a case study, the Sarah Baartman District Municipality (SBDM) in the Eastern Cape was chosen. The SBDM has no large cities and towns, but the District Municipality has identified the CCIs as a potential growth sector, and is in the process of developing a regional cultural policy. The area also includes Grahamstown, which not only hosts the National Arts Festival, which is the largest arts event of its type in Africa, but is also piloting the “Creative City” project in South Africa. An audit and mapping study was conducted on the CCIs in the SBDM; this was based on a national mapping study commissioned by the Department of Arts and Culture. Further internet searches, as well as consultations with the provincial and regional Department of Arts of Culture, coupled with snowball sampling, also aided in the identification of CCIs, and consequently, the “creative hotspots” within the SBDM. Two random samples of stakeholders were chosen; the CCI owners and practitioners, as well as key stakeholders such as government officials, and interviews conducted with both groups, in order to get a first-hand perspective on the operations, activities, challenges, and opportunities that are faced by the CCIs. The study found that there were at least 441 CCIs in the SBDM, with two local municipalities (Dr. Beyers Naude and Makana) hosting the largest share of these (145 and 113 CCIs in each local municipality respectively), which indicates some support for the ‘clustering’ theory. It was also found that the local municipalities that had the largest number of CCIs also experienced better socio-economic welfare. Furthermore, based on the UNESCO Framework for Cultural Statistics (FCS) domains, the Visual Arts and Crafts; Information, Books and Press; and, Cultural Heritage domains were the largest domains represented in the SBDM. It was concluded that cultural policy that is developed, ought to take advantage of, and build on, these existing clusters, as well as the domains that are most prevalent in the region. To demonstrate the impact of cultural festivals on growth and development, a socio-economic impact study was undertaken at the 2016 National Arts Festival (NAF) in Grahamstown. Face to interviews, as well as self-completion questionnaires were used, with respondents at different venues, attending a variety of shows, and across a range of demographics, being interviewed, in order to get a representative sample of Festival attendees. It was found that the economic impact of the 2016 NAF on the city of Grahamstown was R94.4 million. Over and above the economic value of the NAF, it was also found that there were nonmarket benefits (social and intrinsic values) of the NAF, that included audience development, education of the arts and culture, social cohesion, and community development. The inability to directly track and measure social and intrinsic values proved to be a challenge. The study concluded that in order for successful cultural policy to be developed in regions without large cities and towns, it is first necessary to carry out a study to identify what resources are present, and where they are. Locating resources enables cluster identification - as clusters encourage comparative and competitive advantage, it is worthwhile to invest in areas where there are clusters. Therefore, in the allocation of scarce public funds, cultural policy needs to guide investment in to areas where established clusters indicate existing comparative advantage. In terms of equity and transformation, it is also necessary to evaluate labour markets and ownership patterns when developing cultural policy. Beyond the analysis of physical and human resources, the study also found that a crucial step towards developing successful cultural policy is identification of opportunities and challenges faced by the practitioners themselves; the policy ought to capitalise on the opportunities, whilst attempting to correct the challenges faced. Also of importance is aligning the proposed policy and its objectives with regional, provincial and national aims and objectives. Finally, it is important to include a monitoring and evaluation tool that will evaluate the performance of the policy against its stated aims and objectives.
- Full Text:
- Authors: Ndhlovu, Raymond
- Date: 2018
- Subjects: Cultural industries -- South Africa , Cultural industries -- Economic aspects -- South Africa , Cultural policy , South Africa -- Economic conditions , Economic development -- South Africa -- Eastern Cape , South Africa. Department of Arts and Culture , Standard Bank National Arts Festival
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/61524 , vital:28032
- Description: The arts and cultural sector has come under even more financial strain than it previously was, as it has to compete with other sectors of the economy for the very limited public funding that is available. It is in this context that the economic impact, and the role, of the arts and cultural sector towards advancing economic growth and development, needs be examined. This thesis investigates the potential for the positive impact of the cultural and creative industries (CCIs) on growth and development of small cities and towns. Furthermore, it also provides guidelines for the development of regional cultural policy in small cities and towns. The CCIs have also been touted as a catalyst for economic growth and economic development, hence the global rise in their interest. For example, the CCIs have been used to redevelop and revive urban areas that have been rundown. CCIs, however, tend to develop in clusters, and additionally, they cluster around large cities. However, the lack of reliance of some CCIs on long supply chains or high-technology inputs may make them suitable candidates for investment in small cities and towns. Additionally, the link that small cities and towns have with rural and isolated areas makes them potential engines for driving growth, development, as well as employment creation for these areas, given their decline as a result of the transition from the traditional agricultural economy, to the knowledge economy. As CCIs have the propensity to drive government’s macroeconomic objectives such as efficiency, equity, economic growth and job creation, it is necessary to develop cultural policy that regards this. The tendency of CCIs to cluster and develop around large cities inevitably means that very little research into cultural policy directed towards regions without large cities and towns has been done. By the same token, very little research has also been conducted on how to craft cultural policy for such areas. In order then, for cultural policy for regions without large cities and towns to be developed, it is necessary to investigate, and provide, guidelines on, how to develop cultural policy for such regions. As a case study, the Sarah Baartman District Municipality (SBDM) in the Eastern Cape was chosen. The SBDM has no large cities and towns, but the District Municipality has identified the CCIs as a potential growth sector, and is in the process of developing a regional cultural policy. The area also includes Grahamstown, which not only hosts the National Arts Festival, which is the largest arts event of its type in Africa, but is also piloting the “Creative City” project in South Africa. An audit and mapping study was conducted on the CCIs in the SBDM; this was based on a national mapping study commissioned by the Department of Arts and Culture. Further internet searches, as well as consultations with the provincial and regional Department of Arts of Culture, coupled with snowball sampling, also aided in the identification of CCIs, and consequently, the “creative hotspots” within the SBDM. Two random samples of stakeholders were chosen; the CCI owners and practitioners, as well as key stakeholders such as government officials, and interviews conducted with both groups, in order to get a first-hand perspective on the operations, activities, challenges, and opportunities that are faced by the CCIs. The study found that there were at least 441 CCIs in the SBDM, with two local municipalities (Dr. Beyers Naude and Makana) hosting the largest share of these (145 and 113 CCIs in each local municipality respectively), which indicates some support for the ‘clustering’ theory. It was also found that the local municipalities that had the largest number of CCIs also experienced better socio-economic welfare. Furthermore, based on the UNESCO Framework for Cultural Statistics (FCS) domains, the Visual Arts and Crafts; Information, Books and Press; and, Cultural Heritage domains were the largest domains represented in the SBDM. It was concluded that cultural policy that is developed, ought to take advantage of, and build on, these existing clusters, as well as the domains that are most prevalent in the region. To demonstrate the impact of cultural festivals on growth and development, a socio-economic impact study was undertaken at the 2016 National Arts Festival (NAF) in Grahamstown. Face to interviews, as well as self-completion questionnaires were used, with respondents at different venues, attending a variety of shows, and across a range of demographics, being interviewed, in order to get a representative sample of Festival attendees. It was found that the economic impact of the 2016 NAF on the city of Grahamstown was R94.4 million. Over and above the economic value of the NAF, it was also found that there were nonmarket benefits (social and intrinsic values) of the NAF, that included audience development, education of the arts and culture, social cohesion, and community development. The inability to directly track and measure social and intrinsic values proved to be a challenge. The study concluded that in order for successful cultural policy to be developed in regions without large cities and towns, it is first necessary to carry out a study to identify what resources are present, and where they are. Locating resources enables cluster identification - as clusters encourage comparative and competitive advantage, it is worthwhile to invest in areas where there are clusters. Therefore, in the allocation of scarce public funds, cultural policy needs to guide investment in to areas where established clusters indicate existing comparative advantage. In terms of equity and transformation, it is also necessary to evaluate labour markets and ownership patterns when developing cultural policy. Beyond the analysis of physical and human resources, the study also found that a crucial step towards developing successful cultural policy is identification of opportunities and challenges faced by the practitioners themselves; the policy ought to capitalise on the opportunities, whilst attempting to correct the challenges faced. Also of importance is aligning the proposed policy and its objectives with regional, provincial and national aims and objectives. Finally, it is important to include a monitoring and evaluation tool that will evaluate the performance of the policy against its stated aims and objectives.
- Full Text:
A water footprint assessment of dryland pasture based dairy enterprise in the Eastern Cape: a case study
- Authors: Jenje, Paige
- Date: 2017
- Subjects: Water supply, Agricultural -- South Africa , Water supply, Agricultural -- Government policy -- South Africa , Water consumption -- Measurement -- South Africa , Water demand management -- South Africa , Water-supply -- Accounting -- South Africa , Cattle -- Water requirements -- South Africa -- Cast studies
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/5362 , vital:20917
- Description: Water scarcity continues to pose a threat to South Africa, with severe water scarcity predicted within the next fifty years. As a result, national interest has been sparked over the development of market based water resource allocation strategies to alleviate pressures on South Africa's freshwater resources, and ensure compliance with the National Water Act. Agriculture is the largest water user internationally and within South Africa, highlighting the importance of improving the water use efficiency within the industry. This study performed a full water footprint assessment (WFA) of a dryland pasture based dairy enterprise in the Eastern Cape. Following the guidelines of the WFA, this study calculated the blue, green and grey water footprints of dryland pasture based dairy production from crop- to-farm gate by assessing the water footprints of pasture production, bought in feed and concentrates, drinking water and servicing water processes over a period of five years. Following the accounting the of the water footprint, economic and environmental sustainability indicators were used along with the incorporation of the Water Risk Filter tool. This revealed that the case study farm was operating efficiently with the enterprise's highest water related risk being governmental regulation. Water footprint accounting results highlighted that green water was largest contributor to the overall water footprint of over 80%, and grey water contributed the least to the water footprint of dryland pasture based dairy production. Economic productivity results indicated that milk production is highly correlated with annual rainfall due to the breeding strategy undertaken by the farm. Results also indicated little correlation between the monthly water footprint and milk production, with the majority of the enterprise's milk production occurring in the last quarter regardless of the water footprint. The study demonstrated the relationship between the water footprint and economic land and water productivity, along with the value of milk to costs ratio which indicated that approximately R1.00 worth of costs generates between R1.80 and R2.06 value of milk. The sustainability indicators suggested that the farm's management of its effluent dam requires attention to meet the Department of Water and Sanitations effluent waste quality guidelines. The overall analysis of the water footprint suggested that the highest water related risk to dryland dairy production was regulatory risk. This risk suggests that the government cannot be relied upon for the management of freshwater resources within the study area, leaving the onus on the individual dairy farmers. As such, farmers should utilise the water footprint to formulate water stewardship programmes which have the potential to influence the regulation and protection of freshwater resources.
- Full Text:
- Authors: Jenje, Paige
- Date: 2017
- Subjects: Water supply, Agricultural -- South Africa , Water supply, Agricultural -- Government policy -- South Africa , Water consumption -- Measurement -- South Africa , Water demand management -- South Africa , Water-supply -- Accounting -- South Africa , Cattle -- Water requirements -- South Africa -- Cast studies
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/5362 , vital:20917
- Description: Water scarcity continues to pose a threat to South Africa, with severe water scarcity predicted within the next fifty years. As a result, national interest has been sparked over the development of market based water resource allocation strategies to alleviate pressures on South Africa's freshwater resources, and ensure compliance with the National Water Act. Agriculture is the largest water user internationally and within South Africa, highlighting the importance of improving the water use efficiency within the industry. This study performed a full water footprint assessment (WFA) of a dryland pasture based dairy enterprise in the Eastern Cape. Following the guidelines of the WFA, this study calculated the blue, green and grey water footprints of dryland pasture based dairy production from crop- to-farm gate by assessing the water footprints of pasture production, bought in feed and concentrates, drinking water and servicing water processes over a period of five years. Following the accounting the of the water footprint, economic and environmental sustainability indicators were used along with the incorporation of the Water Risk Filter tool. This revealed that the case study farm was operating efficiently with the enterprise's highest water related risk being governmental regulation. Water footprint accounting results highlighted that green water was largest contributor to the overall water footprint of over 80%, and grey water contributed the least to the water footprint of dryland pasture based dairy production. Economic productivity results indicated that milk production is highly correlated with annual rainfall due to the breeding strategy undertaken by the farm. Results also indicated little correlation between the monthly water footprint and milk production, with the majority of the enterprise's milk production occurring in the last quarter regardless of the water footprint. The study demonstrated the relationship between the water footprint and economic land and water productivity, along with the value of milk to costs ratio which indicated that approximately R1.00 worth of costs generates between R1.80 and R2.06 value of milk. The sustainability indicators suggested that the farm's management of its effluent dam requires attention to meet the Department of Water and Sanitations effluent waste quality guidelines. The overall analysis of the water footprint suggested that the highest water related risk to dryland dairy production was regulatory risk. This risk suggests that the government cannot be relied upon for the management of freshwater resources within the study area, leaving the onus on the individual dairy farmers. As such, farmers should utilise the water footprint to formulate water stewardship programmes which have the potential to influence the regulation and protection of freshwater resources.
- Full Text:
Agricultural-based commodity chains and development: the case of the tobacco sector in Zimbabwe
- Authors: Thring, Stephen Richard
- Date: 2017
- Language: English
- Type: Thesis , Masters , MSocSc
- Identifier: http://hdl.handle.net/10962/5337 , vital:20814
- Description: This thesis examines the nature of governance in the Zimbabwean tobacco value chain and what upgrading implications this has for participants at the lower end of the value chain, with a particular focus on smallholder tobacco growers. The nature of governance and upgrading opportunities will provide further implications for broader economic development in Zimbabwe. Value chain analysis was the over-arching method, adopting a mixed methods approach of both quantitative and qualitative data analysis. Data attained from the Tobacco and Industry Marketing Board (TIMB) was used to construct a Zimbabwean tobacco profile. This information was used to construct a simple Global Value Chain (GVC) framework in order to obtain an understanding of the Zimbabwean tobacco value chain. Information was gathered at the top end of the value chain via documents and data from British American Tobacco (BAT) and information was gathered at the middle and lower end of the value chain through interviews. It was found that the Zimbabwean tobacco value chain is characterised by two types of governance: modular and hierarchy. Modular governance existed where the value chain was disjointed by the leaf merchant and hierarchy governance existed where cigarette manufacturers have vertically integrated themselves backwards into the tobacco growing segment. It was found that contract lines offer smallholder tobacco growers’ financial and technical support that would otherwise be difficult to attain. This increased the likelihood for smallholder tobacco growers to produce a high quality crop that met Good Agricultural Practices (GAP) and other compliancy requirements; therefore achieving product and process upgrading. However, the environmental impact of tobacco growing through deforestation and the possibility of lead cigarette manufacturers relocating their operations to a different geographical location (as is the nature of GVCs) threatens the sustainability of Zimbabwe’s tobacco industry. Despite these issues it was argued that the tobacco value chain could assist Zimbabwe’s economy in diversifying away from simple tobacco production towards valueadding tobacco sectors, such as processing, by-product processing and cigarette manufacturing.
- Full Text:
- Authors: Thring, Stephen Richard
- Date: 2017
- Language: English
- Type: Thesis , Masters , MSocSc
- Identifier: http://hdl.handle.net/10962/5337 , vital:20814
- Description: This thesis examines the nature of governance in the Zimbabwean tobacco value chain and what upgrading implications this has for participants at the lower end of the value chain, with a particular focus on smallholder tobacco growers. The nature of governance and upgrading opportunities will provide further implications for broader economic development in Zimbabwe. Value chain analysis was the over-arching method, adopting a mixed methods approach of both quantitative and qualitative data analysis. Data attained from the Tobacco and Industry Marketing Board (TIMB) was used to construct a Zimbabwean tobacco profile. This information was used to construct a simple Global Value Chain (GVC) framework in order to obtain an understanding of the Zimbabwean tobacco value chain. Information was gathered at the top end of the value chain via documents and data from British American Tobacco (BAT) and information was gathered at the middle and lower end of the value chain through interviews. It was found that the Zimbabwean tobacco value chain is characterised by two types of governance: modular and hierarchy. Modular governance existed where the value chain was disjointed by the leaf merchant and hierarchy governance existed where cigarette manufacturers have vertically integrated themselves backwards into the tobacco growing segment. It was found that contract lines offer smallholder tobacco growers’ financial and technical support that would otherwise be difficult to attain. This increased the likelihood for smallholder tobacco growers to produce a high quality crop that met Good Agricultural Practices (GAP) and other compliancy requirements; therefore achieving product and process upgrading. However, the environmental impact of tobacco growing through deforestation and the possibility of lead cigarette manufacturers relocating their operations to a different geographical location (as is the nature of GVCs) threatens the sustainability of Zimbabwe’s tobacco industry. Despite these issues it was argued that the tobacco value chain could assist Zimbabwe’s economy in diversifying away from simple tobacco production towards valueadding tobacco sectors, such as processing, by-product processing and cigarette manufacturing.
- Full Text:
An analysis of the impact of financialization on commodity markets
- Authors: Ndawona, Takudzwa Maitaishe
- Date: 2017
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/7113 , vital:21218
- Description: An unprecedented increase in real commodity prices from 2002-2011 fuelled an intense debate as to the causes of the steep rise in prices and its possible implications for producers and consumers. On the one hand, the prolonged and dramatic rise in almost all commodity prices is attributed to growing demand from emerging market economies, supply shocks such as adverse weather conditions, export bans as well as other macroeconomic factors. Collectively these are known as the fundamental (demand and supply) factors. On the other hand, there is a growing body of evidence that suggests these fundamental factors alone are not sufficient enough to explain recent commodity price developments. It is noted that alongside changes in the fundamental factors, there was a major shift in trading activities on commodity derivative markets related to the increasing presence of financial investors, institutional investors and hedge funds. This had important effects, it is argued, on the microstructure of these markets and on price dynamics in a process termed “fmancialization”. Most of the empirical literature covers the period of rising commodity prices from 20022011. This study seeks to add to the existing literature by examining, in addition, the impact of financialization when commodity prices were falling from 2011-2015. Whereas the literature focuses mainly on the rise of agricultural commodity prices, the focus of this study is on metals, oil and bulk commodities (coal and iron ore). Two techniques are employed, namely the calculation of rolling correlations for futures and spot returns. Granger causality tests are then performed to examine the relationships between futures and spot prices. Rolling return correlations are calculated for i) different exchange- traded commodities and ii) exchange-traded commodities and bulk commodities not traded on exchanges. This is done to establish whether the increased correlations between different commodities found in the literature still hold now that commodity prices across all categories are falling. Granger causality tests are used in order to establish the link between the futures prices and spot prices both during the upswing period (2002-2011) and downswing period (2011-2015). It is found that rapidly growing indexed-based investment in commodity markets (financialization) during the upswing period is concurrent with increasingly correlated returns on the prices of unrelated commodities in both the futures and spot markets. These correlations decline during the period of falling commodity prices (2011-2015). This was a period in which the total amount of commodity assets under management fell sharply. This supports the a priori expectation that if the increased correlations of previously seemingly correlated and unrelated commodities during the upswing had been driven by financialization, the correlation would decline in the downturn. Granger causality results reveal statistically significant evidence of futures prices (returns) driving spot prices (returns) during the financialization period. However, post-financialization there is a shift to more bidirectional relationships. The study therefore concludes that, in addition to changing fundamental and macroeconomic factors, the financialization of commodity markets further drove the excessive and volatile price levels in commodity markets from 2002 to 2011.
- Full Text:
- Authors: Ndawona, Takudzwa Maitaishe
- Date: 2017
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/7113 , vital:21218
- Description: An unprecedented increase in real commodity prices from 2002-2011 fuelled an intense debate as to the causes of the steep rise in prices and its possible implications for producers and consumers. On the one hand, the prolonged and dramatic rise in almost all commodity prices is attributed to growing demand from emerging market economies, supply shocks such as adverse weather conditions, export bans as well as other macroeconomic factors. Collectively these are known as the fundamental (demand and supply) factors. On the other hand, there is a growing body of evidence that suggests these fundamental factors alone are not sufficient enough to explain recent commodity price developments. It is noted that alongside changes in the fundamental factors, there was a major shift in trading activities on commodity derivative markets related to the increasing presence of financial investors, institutional investors and hedge funds. This had important effects, it is argued, on the microstructure of these markets and on price dynamics in a process termed “fmancialization”. Most of the empirical literature covers the period of rising commodity prices from 20022011. This study seeks to add to the existing literature by examining, in addition, the impact of financialization when commodity prices were falling from 2011-2015. Whereas the literature focuses mainly on the rise of agricultural commodity prices, the focus of this study is on metals, oil and bulk commodities (coal and iron ore). Two techniques are employed, namely the calculation of rolling correlations for futures and spot returns. Granger causality tests are then performed to examine the relationships between futures and spot prices. Rolling return correlations are calculated for i) different exchange- traded commodities and ii) exchange-traded commodities and bulk commodities not traded on exchanges. This is done to establish whether the increased correlations between different commodities found in the literature still hold now that commodity prices across all categories are falling. Granger causality tests are used in order to establish the link between the futures prices and spot prices both during the upswing period (2002-2011) and downswing period (2011-2015). It is found that rapidly growing indexed-based investment in commodity markets (financialization) during the upswing period is concurrent with increasingly correlated returns on the prices of unrelated commodities in both the futures and spot markets. These correlations decline during the period of falling commodity prices (2011-2015). This was a period in which the total amount of commodity assets under management fell sharply. This supports the a priori expectation that if the increased correlations of previously seemingly correlated and unrelated commodities during the upswing had been driven by financialization, the correlation would decline in the downturn. Granger causality results reveal statistically significant evidence of futures prices (returns) driving spot prices (returns) during the financialization period. However, post-financialization there is a shift to more bidirectional relationships. The study therefore concludes that, in addition to changing fundamental and macroeconomic factors, the financialization of commodity markets further drove the excessive and volatile price levels in commodity markets from 2002 to 2011.
- Full Text:
Carbon credit restoration projects in the Eastern Cape province of South Africa: considerations for sustainable local economic development
- Authors: Polak, James Samuel
- Date: 2017
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/8069 , vital:21349
- Description: Although global climate change has been identified as a serious global economic, social, and environmental threat to society, national governments have been slow to respond on a global scale. Environmental economic theory offers market-based solutions to address climate change efficiently through carbon control regimes, such as carbon taxation and cap-and-trade policy. A major political milestone was reached when an international agreement entered into force in 2008, known the Kyoto Protocol, which incorporated a market-based solution to address climate change on a global scale. This allowed a global market for emissions to form through the Clean Development Mechanism. Although the Kyoto Protocol aimed to address a global issue on a global scale through a single global market for emissions, fragmented sovereign cap-and-trade schemes have since emerged in the form of national and regional emission markets, commonly referred to as carbon markets. The Clean Development Mechanism offered the opportunity to generate carbon credits through carbon offset projects, such as carbon restoration projects. Although the Kyoto Protocol did not achieve the objective of forming an internationally accepted global carbon control regime, it seems to have set a trend of including offset programs in newly emerging carbon control regimes, such as South Africa’s proposed carbon tax. This study set out to assess the extent to which carbon control regimes are enabling sustainable local economic development, based on carbon restoration projects in the Eastern Cape province of South Africa using Portulacaria afra, commonly known as spekboom. As a starting point, this study assessed the current state of the international carbon markets using significant international cap-and-trade based markets as examples. Based on Newell et al.’s (2013) selection of significant carbon markets and data availability, the United States’ Regional Greenhouse Gas Initiative and the European Union’s Emission Trading Scheme were selected. Historical, current and forecasted supply and demand data were gathered from Thomson Reuters’ Point Carbon research division. Further, historical futures and spot market price and volume data were gathered from the markets to compare how prices have fared over time. The Clean Development Mechanism’s market for Certified Emission Reduction credits was used for comparative purposes. The markets were found to be systemically oversupplied, leading to systemically low prices. The systemic oversupply in credits provides a limited incentive to initiate carbon offset projects, however, South Africa’s proposed carbon tax may be able to stimulate demand for domestic offset projects. Key success factors established through a comparative literature review on local economic development theory were incorporated into key informant interviews. The results were then analysed through the lens of Connelly’s (2007) model for sustainable development to provide recommendations for sustainable local economic development, regarding carbon restoration projects in the Eastern Cape using P. afra. The following opportunities were identified: the planting of P. afra on degraded land has the potential to mitigate climate change, offer water benefits to the surrounding communities, and promote biodiversity regeneration. There is potential for economic growth through job creation and the economic multiplier effect. Government funding is available and voluntary offset agreements do exist, eliminating a large portion of the cumbersome accreditation requirements. These projects also offer potential for social justice through the government funding requirements which stipulate that youth and women should be given preference for employment, potentially helping to alleviate inequality. The funding further stipulates that employees should be trained in transferable skills, offering potential for capacity building and social capital accumulation through education. These transferable skills include skills geared towards encouraging entrepreneurialism. Corresponding challenges were also found: excessive overgrazing through pastoralism has rendered some land degraded beyond restoration. Opportunists may resort to planting P. afra outside of the subtropical Albany Thicket biome to which it is endemic, leading to potential biodiversity loss rather than gains. Sufficient buy-in is required from private landowners for these projects to be sustainable, however, the projects entail a large opportunity cost to farmers as returns take at least 5 to 6 years. This may render these projects undesirable to most landowners and provides scope for free-riding, should pastoralists not have to bear the full costs of the project and property rights not be enforced through land user agreements. The projects require an exorbitant amount of upfront funding. Cash flow received from the projects does not extend in perpetuity. Requirements for social justice pertain only to government funded projects. A working model, generating and selling carbon credits through land restoration using P. afra, has not yet been established. As it stands, these carbon restoration projects are still highly speculative and carry a significant amount of investment risk, given the high mortality and low growth rates associated with the current planting method. The current systemic oversupply of carbon. credits in the international markets signal that returns from carbon credits are set to be low, at least until the oversupply issues are resolved. Should these challenges be overcome, carbon restoration projects using P. afra may have the potential to bolster sustainable local economic development in the impoverished regions of province as well as provide a locally-driven adaptation and mitigation strategy to address global climate change.
- Full Text:
- Authors: Polak, James Samuel
- Date: 2017
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/8069 , vital:21349
- Description: Although global climate change has been identified as a serious global economic, social, and environmental threat to society, national governments have been slow to respond on a global scale. Environmental economic theory offers market-based solutions to address climate change efficiently through carbon control regimes, such as carbon taxation and cap-and-trade policy. A major political milestone was reached when an international agreement entered into force in 2008, known the Kyoto Protocol, which incorporated a market-based solution to address climate change on a global scale. This allowed a global market for emissions to form through the Clean Development Mechanism. Although the Kyoto Protocol aimed to address a global issue on a global scale through a single global market for emissions, fragmented sovereign cap-and-trade schemes have since emerged in the form of national and regional emission markets, commonly referred to as carbon markets. The Clean Development Mechanism offered the opportunity to generate carbon credits through carbon offset projects, such as carbon restoration projects. Although the Kyoto Protocol did not achieve the objective of forming an internationally accepted global carbon control regime, it seems to have set a trend of including offset programs in newly emerging carbon control regimes, such as South Africa’s proposed carbon tax. This study set out to assess the extent to which carbon control regimes are enabling sustainable local economic development, based on carbon restoration projects in the Eastern Cape province of South Africa using Portulacaria afra, commonly known as spekboom. As a starting point, this study assessed the current state of the international carbon markets using significant international cap-and-trade based markets as examples. Based on Newell et al.’s (2013) selection of significant carbon markets and data availability, the United States’ Regional Greenhouse Gas Initiative and the European Union’s Emission Trading Scheme were selected. Historical, current and forecasted supply and demand data were gathered from Thomson Reuters’ Point Carbon research division. Further, historical futures and spot market price and volume data were gathered from the markets to compare how prices have fared over time. The Clean Development Mechanism’s market for Certified Emission Reduction credits was used for comparative purposes. The markets were found to be systemically oversupplied, leading to systemically low prices. The systemic oversupply in credits provides a limited incentive to initiate carbon offset projects, however, South Africa’s proposed carbon tax may be able to stimulate demand for domestic offset projects. Key success factors established through a comparative literature review on local economic development theory were incorporated into key informant interviews. The results were then analysed through the lens of Connelly’s (2007) model for sustainable development to provide recommendations for sustainable local economic development, regarding carbon restoration projects in the Eastern Cape using P. afra. The following opportunities were identified: the planting of P. afra on degraded land has the potential to mitigate climate change, offer water benefits to the surrounding communities, and promote biodiversity regeneration. There is potential for economic growth through job creation and the economic multiplier effect. Government funding is available and voluntary offset agreements do exist, eliminating a large portion of the cumbersome accreditation requirements. These projects also offer potential for social justice through the government funding requirements which stipulate that youth and women should be given preference for employment, potentially helping to alleviate inequality. The funding further stipulates that employees should be trained in transferable skills, offering potential for capacity building and social capital accumulation through education. These transferable skills include skills geared towards encouraging entrepreneurialism. Corresponding challenges were also found: excessive overgrazing through pastoralism has rendered some land degraded beyond restoration. Opportunists may resort to planting P. afra outside of the subtropical Albany Thicket biome to which it is endemic, leading to potential biodiversity loss rather than gains. Sufficient buy-in is required from private landowners for these projects to be sustainable, however, the projects entail a large opportunity cost to farmers as returns take at least 5 to 6 years. This may render these projects undesirable to most landowners and provides scope for free-riding, should pastoralists not have to bear the full costs of the project and property rights not be enforced through land user agreements. The projects require an exorbitant amount of upfront funding. Cash flow received from the projects does not extend in perpetuity. Requirements for social justice pertain only to government funded projects. A working model, generating and selling carbon credits through land restoration using P. afra, has not yet been established. As it stands, these carbon restoration projects are still highly speculative and carry a significant amount of investment risk, given the high mortality and low growth rates associated with the current planting method. The current systemic oversupply of carbon. credits in the international markets signal that returns from carbon credits are set to be low, at least until the oversupply issues are resolved. Should these challenges be overcome, carbon restoration projects using P. afra may have the potential to bolster sustainable local economic development in the impoverished regions of province as well as provide a locally-driven adaptation and mitigation strategy to address global climate change.
- Full Text:
Credit extension in South Africa: an analysis of the impact of interest rates and income levels on the level of household debt
- Widdop, James Stuart Hailstones
- Authors: Widdop, James Stuart Hailstones
- Date: 2017
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/4988 , vital:20750
- Description: The recent growth in the unsecured lending market and the bankruptcy of African Bank Investments Limited have brought to light concerns regarding credit extension and the level of household indebtedness in South Africa. This study seeks to investigate the relevant aspects of credit extension in both the secured and unsecured lending markets by firstly analysing contemporary literature and then conducting a more formal empirical analysis. A VAR model is estimated to examine the effects household disposable income and interest rates have on the level of household debt in South Africa for the period 1995Q1-2015Q3. The empirical results indicate that there is no significant deterministic relationship between household disposable income and household debt. However, the results show that such a relationship does exist between interest rate and household debt. Finally, impulse response functions obtained from the VAR estimation are examined which indicate that both shocks too household disposable income and interest rates effect the level of household debt, but that this effect returns to equilibrium within six periods.
- Full Text:
- Authors: Widdop, James Stuart Hailstones
- Date: 2017
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/4988 , vital:20750
- Description: The recent growth in the unsecured lending market and the bankruptcy of African Bank Investments Limited have brought to light concerns regarding credit extension and the level of household indebtedness in South Africa. This study seeks to investigate the relevant aspects of credit extension in both the secured and unsecured lending markets by firstly analysing contemporary literature and then conducting a more formal empirical analysis. A VAR model is estimated to examine the effects household disposable income and interest rates have on the level of household debt in South Africa for the period 1995Q1-2015Q3. The empirical results indicate that there is no significant deterministic relationship between household disposable income and household debt. However, the results show that such a relationship does exist between interest rate and household debt. Finally, impulse response functions obtained from the VAR estimation are examined which indicate that both shocks too household disposable income and interest rates effect the level of household debt, but that this effect returns to equilibrium within six periods.
- Full Text:
Exploring the suitability of causal loop diagrams to assess the value chains of aquatic ecosystem services: a case study of the Baviaanskloof, South Africa
- Authors: Rawlins, Jonathan Mark
- Date: 2017
- Language: English
- Type: Thesis , Masters , MSc
- Identifier: http://hdl.handle.net/10962/4909 , vital:20742
- Description: Healthy, functioning aquatic ecosystems are fundamental to the survival and development of any nation, particularly so for water-stressed countries like South Africa. Aquatic ecosystem services (AESs) are becoming increasingly recognised for their importance to society with regards to the ecological goods and services they provide in terms of health, social, cultural and economic benefits. The development of markets for AESs begins with a clear understanding of the nature and extent of the goods and services provided by aquatic ecosystems. However, an inclusive understanding of AESs and their associated values is currently lacking in South Africa. Although flows of ecosystem services provide a nearly limitless set of valuable properties, a large proportion of their services remain unpriced or inaccurately priced through traditional neo-classical markets. This often results in market failure, as these markets do not reflect the full social costs and/or benefits of ecosystem services. This provides incentive to identify and develop a tool to bridge the gap between ecosystem service valuation and practical, sustainable management recommendations for improving the provision of ecosystem services and their associated markets. This study explores the suitability of causal loop diagrams (CLDs) to assess the value chains of AESs in South Africa within the context of a case study. AESs do not usually have finite market values nor are they traded in formal markets, thus, a traditional approach to value chain analysis is unsuitable. A professional workshop environment was utilised to facilitate a transdisciplinary approach towards identifying relevant AESs and their complex inputs, interactions and trade-offs. Numerous CLDs were developed in an effort to map the complex relationships between these AESs and their associated inputs, which formed the basis to attempt subsequent scenario analyses and 'alternative' value chain analyses. The findings of this study show that CLDs have the potential to qualitatively identify challenges and opportunities within the value chains of AESs. Thus, the use of such 'alternative' value chain analyses can directly contribute towards the development of recommendations for improving sustainable management of aquatic ecosystems.
- Full Text:
- Authors: Rawlins, Jonathan Mark
- Date: 2017
- Language: English
- Type: Thesis , Masters , MSc
- Identifier: http://hdl.handle.net/10962/4909 , vital:20742
- Description: Healthy, functioning aquatic ecosystems are fundamental to the survival and development of any nation, particularly so for water-stressed countries like South Africa. Aquatic ecosystem services (AESs) are becoming increasingly recognised for their importance to society with regards to the ecological goods and services they provide in terms of health, social, cultural and economic benefits. The development of markets for AESs begins with a clear understanding of the nature and extent of the goods and services provided by aquatic ecosystems. However, an inclusive understanding of AESs and their associated values is currently lacking in South Africa. Although flows of ecosystem services provide a nearly limitless set of valuable properties, a large proportion of their services remain unpriced or inaccurately priced through traditional neo-classical markets. This often results in market failure, as these markets do not reflect the full social costs and/or benefits of ecosystem services. This provides incentive to identify and develop a tool to bridge the gap between ecosystem service valuation and practical, sustainable management recommendations for improving the provision of ecosystem services and their associated markets. This study explores the suitability of causal loop diagrams (CLDs) to assess the value chains of AESs in South Africa within the context of a case study. AESs do not usually have finite market values nor are they traded in formal markets, thus, a traditional approach to value chain analysis is unsuitable. A professional workshop environment was utilised to facilitate a transdisciplinary approach towards identifying relevant AESs and their complex inputs, interactions and trade-offs. Numerous CLDs were developed in an effort to map the complex relationships between these AESs and their associated inputs, which formed the basis to attempt subsequent scenario analyses and 'alternative' value chain analyses. The findings of this study show that CLDs have the potential to qualitatively identify challenges and opportunities within the value chains of AESs. Thus, the use of such 'alternative' value chain analyses can directly contribute towards the development of recommendations for improving sustainable management of aquatic ecosystems.
- Full Text:
Invasive alien plants and rural livelihoods: a case of Gwanda District, Zimbabwe
- Authors: Dube, Nqobizitha
- Date: 2017
- Subjects: Cylindropuntia fulgida , Invasive plants -- Economic aspects , Invasive plants -- Control , Invasive plants -- Economic aspects -- Zimbabwe , Ecosystem services -- Zimbabwe , Environmental policy -- Zimbabwe , Ecosystem management -- Zimbabwe , Cactus -- Economic aspects -- Zimbabwe
- Language: English
- Type: Thesis , Doctoral , PhD
- Identifier: http://hdl.handle.net/10962/4368 , vital:20653
- Description: Biodiversity is the cornerstone of ecosystem functioning and the realisation that most rural African community livelihoods are directly dependent on ecosystem goods and services warrants its conservation. Invasive alien plants threaten biodiversity and compromise the ecosystem's ability to provide goods and services for rural communities, thereby negatively affecting livelihood strategies. Information on IAPs is lacking in most African countries, thus, the livelihood effects of Invasive Alien Plants (IAPs) are not clearly understood. In Zimbabwe, Cylindropuntia fulgida var. fulgida (Cff) has invaded Gwanda district in the Matabeleland south province compromising local household capital assets that contribute to livelihood strategies and altering the ecosystem. This study exposed the rural worldview of the environment, the effect that Cff has on local livelihood strategies and the effectiveness environmental management institutions in rural Gwanda district. The study followed a post positivist paradigm. The impacts of IAPs on rural communities in Zimbabwe were analysed by looking at the livelihood stresses that arise because of Cff. The research used multi-stage sampling to select a representative sample of respondents. Primary data was collected using semi-structured questionnaires, group discussion and key informant guides. Furthermore, document analysis was conducted to collect secondary data. The data analysis process used Computer packages Microsoft Excel, SPSS and NVIVO. Results showed that livelihood benefits that species in the natural environment provide strongly influence environmental perceptions of rural African communities. Additionally, the study showed that Cff compromises the local ecosystem and reduces its ability to support the dominant livelihoods in the study area. The long-term result of such a situation in the absence of control is increased poverty and the failure to realise sustainable development. However, results indicated that IAPs could also improve the poverty situation of a community before they have reached the threshold points. It is therefore imperative to know the threshold points of an invasive plant in order to ascertain the efficient point to intervene. The study also showed that benefits of invasive plants accrue to different members of a society at different times (private/public). This knowledge allows the adoption of efficient and effective control strategies.
- Full Text:
- Authors: Dube, Nqobizitha
- Date: 2017
- Subjects: Cylindropuntia fulgida , Invasive plants -- Economic aspects , Invasive plants -- Control , Invasive plants -- Economic aspects -- Zimbabwe , Ecosystem services -- Zimbabwe , Environmental policy -- Zimbabwe , Ecosystem management -- Zimbabwe , Cactus -- Economic aspects -- Zimbabwe
- Language: English
- Type: Thesis , Doctoral , PhD
- Identifier: http://hdl.handle.net/10962/4368 , vital:20653
- Description: Biodiversity is the cornerstone of ecosystem functioning and the realisation that most rural African community livelihoods are directly dependent on ecosystem goods and services warrants its conservation. Invasive alien plants threaten biodiversity and compromise the ecosystem's ability to provide goods and services for rural communities, thereby negatively affecting livelihood strategies. Information on IAPs is lacking in most African countries, thus, the livelihood effects of Invasive Alien Plants (IAPs) are not clearly understood. In Zimbabwe, Cylindropuntia fulgida var. fulgida (Cff) has invaded Gwanda district in the Matabeleland south province compromising local household capital assets that contribute to livelihood strategies and altering the ecosystem. This study exposed the rural worldview of the environment, the effect that Cff has on local livelihood strategies and the effectiveness environmental management institutions in rural Gwanda district. The study followed a post positivist paradigm. The impacts of IAPs on rural communities in Zimbabwe were analysed by looking at the livelihood stresses that arise because of Cff. The research used multi-stage sampling to select a representative sample of respondents. Primary data was collected using semi-structured questionnaires, group discussion and key informant guides. Furthermore, document analysis was conducted to collect secondary data. The data analysis process used Computer packages Microsoft Excel, SPSS and NVIVO. Results showed that livelihood benefits that species in the natural environment provide strongly influence environmental perceptions of rural African communities. Additionally, the study showed that Cff compromises the local ecosystem and reduces its ability to support the dominant livelihoods in the study area. The long-term result of such a situation in the absence of control is increased poverty and the failure to realise sustainable development. However, results indicated that IAPs could also improve the poverty situation of a community before they have reached the threshold points. It is therefore imperative to know the threshold points of an invasive plant in order to ascertain the efficient point to intervene. The study also showed that benefits of invasive plants accrue to different members of a society at different times (private/public). This knowledge allows the adoption of efficient and effective control strategies.
- Full Text:
Malawi’s trilemma: monetary policy independence, exchange rate stability and financial integration
- Authors: Kamamkhudza, Charity
- Date: 2017
- Subjects: Malawi -- Economic conditions , Economic policy -- Malawi , Monetary policy -- Malawi , Foreign exchange rates -- Malawi
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/41634 , vital:25112
- Description: Malawi has, in the last few decades, undergone several reforms relating to monetary, exchange rate and financial integration policies in a bid to achieve sustainable economic growth. Despite these reforms, however, the country has barely attained desirable macroeconomic performance. This study sets out to establish if the need for these policy reforms is due to the fact that the country is constrained from the simultaneous achievement of optimal levels of monetary policy independence, exchange rate stability and financial integration, as postulated by the ‘trilemma’. The trilemma is evaluated using an approach introduced by Aizenman et al. (2008), in which the Ordinary Least Squares (OLS) method is applied to a model in which a constant is regressed on indices constructed for the policy intermediate goals; the results indicate that the trilemma is a binding constraint in Malawi and that the largest trade-off is between exchange rate stability and financial integration. Given these constraints, the study also considers the combination of the trilemma intermediate policy goals that has been dominant in the country in the last three decades, using predicted values from the model and a graphical analysis to explore this objective. The analysis reveals that Malawi has, on average, prioritised exchange rate stability and monetary policy independence at the expense of financial integration. The study also assesses how the trilemma intermediate policy goals affect macroeconomic performance, specifically regarding output growth rate and inflation. The results reveal that exchange rate stability is associated with faster output growth, financial integration is associated with higher inflation, and that monetary policy independence is not a significant factor. The results emphasise the importance of consistent stability of the exchange rate if Malawi is to achieve faster and sustainable economic growth. Given this, policy makers must be cautious, as the current floating exchange rate regime, combined with financial integration, could lead to slow growth and high inflation.
- Full Text:
- Authors: Kamamkhudza, Charity
- Date: 2017
- Subjects: Malawi -- Economic conditions , Economic policy -- Malawi , Monetary policy -- Malawi , Foreign exchange rates -- Malawi
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/41634 , vital:25112
- Description: Malawi has, in the last few decades, undergone several reforms relating to monetary, exchange rate and financial integration policies in a bid to achieve sustainable economic growth. Despite these reforms, however, the country has barely attained desirable macroeconomic performance. This study sets out to establish if the need for these policy reforms is due to the fact that the country is constrained from the simultaneous achievement of optimal levels of monetary policy independence, exchange rate stability and financial integration, as postulated by the ‘trilemma’. The trilemma is evaluated using an approach introduced by Aizenman et al. (2008), in which the Ordinary Least Squares (OLS) method is applied to a model in which a constant is regressed on indices constructed for the policy intermediate goals; the results indicate that the trilemma is a binding constraint in Malawi and that the largest trade-off is between exchange rate stability and financial integration. Given these constraints, the study also considers the combination of the trilemma intermediate policy goals that has been dominant in the country in the last three decades, using predicted values from the model and a graphical analysis to explore this objective. The analysis reveals that Malawi has, on average, prioritised exchange rate stability and monetary policy independence at the expense of financial integration. The study also assesses how the trilemma intermediate policy goals affect macroeconomic performance, specifically regarding output growth rate and inflation. The results reveal that exchange rate stability is associated with faster output growth, financial integration is associated with higher inflation, and that monetary policy independence is not a significant factor. The results emphasise the importance of consistent stability of the exchange rate if Malawi is to achieve faster and sustainable economic growth. Given this, policy makers must be cautious, as the current floating exchange rate regime, combined with financial integration, could lead to slow growth and high inflation.
- Full Text:
Modelling the causality between FDI and Zimbabwe’s economic growth
- Authors: Mashamhanda, Tendai
- Date: 2017
- Subjects: Investments, Foreign -- Zimbabwe , Zimbabwe -- Economic conditions -- 1965-1980 , Zimbabwe -- Economic conditions -- 1980-
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/50260 , vital:25970
- Description: The study investigates the causal nexus between economic growth and FDI in Zimbabwe for the period spanning 1976 to 2011. The bounds testing approach to cointegration and Granger causality methodology was applied and results suggest a bi-directional causal relationship between FDI and economic growth in the long run. However, the causal effect from economic growth to FDI was weak. Domestic investment, human capital and trade openness were also found to be crucial determinants of economic growth in Zimbabwe. Implementing policies that promote inflow of FDI into Zimbabwe are recommended.
- Full Text:
- Authors: Mashamhanda, Tendai
- Date: 2017
- Subjects: Investments, Foreign -- Zimbabwe , Zimbabwe -- Economic conditions -- 1965-1980 , Zimbabwe -- Economic conditions -- 1980-
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/50260 , vital:25970
- Description: The study investigates the causal nexus between economic growth and FDI in Zimbabwe for the period spanning 1976 to 2011. The bounds testing approach to cointegration and Granger causality methodology was applied and results suggest a bi-directional causal relationship between FDI and economic growth in the long run. However, the causal effect from economic growth to FDI was weak. Domestic investment, human capital and trade openness were also found to be crucial determinants of economic growth in Zimbabwe. Implementing policies that promote inflow of FDI into Zimbabwe are recommended.
- Full Text:
The determinants of credit default swap spreads in emerging market economies
- Authors: Matakane, Lwazi
- Date: 2017
- Subjects: Bank loans -- BRIC countries , Risk management -- BRIC countries , Swaps (Finance) -- BRIC countries , BRIC countries -- Economic conditions , Rating agencies (Finance)
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/7142 , vital:21221
- Description: Emerging markets have become a destination for international portfolio flows as a result of global financial integration. This has allowed exogenous factors like sentiment and developed country monetary policy to affect developing countries capital markets and macroeconomic fundamentals. This study analyses the impact of investor sentiment alongside US monetary policy, country specific risks, inflation and domestic stock returns on the BRICS credit default spreads. To investigate this relationship, the study uses panel data and a fixed effects model. The results of the panel regressions suggest that all variables had an impact on the variation of BRICS credit default spreads however the crisis may have distorted the relationship among the variables. Sovereign ratings had an inverse relationship depicting a rise in ratings decreasing the credit default premium. This was in line with a priori expectations. Domestic company earnings also had an inverse relationship with BRCIS credit default premia, the magnitude of which is dependent on the value of the index. This is to say the higher the index, the more significant the effect on the BRICS default premium. US monetary policy was significant and in line with expectations of a linear relationship between emerging market credit default spreads when controlling for the crisis. In the crisis period however, results depicted an inverse relationship going against a priori expectations. The inflation variable was found to have a greater impact on CDS spreads during the crisis period, while the VIX index had a linear relationship with the default premia albeit the impact was not highly significant. The study concludes that the financial crisis was an important event that affected the relationship of these variables with BRICS country default spreads and had read through to market participant’s behaviour at the time.
- Full Text:
- Authors: Matakane, Lwazi
- Date: 2017
- Subjects: Bank loans -- BRIC countries , Risk management -- BRIC countries , Swaps (Finance) -- BRIC countries , BRIC countries -- Economic conditions , Rating agencies (Finance)
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/7142 , vital:21221
- Description: Emerging markets have become a destination for international portfolio flows as a result of global financial integration. This has allowed exogenous factors like sentiment and developed country monetary policy to affect developing countries capital markets and macroeconomic fundamentals. This study analyses the impact of investor sentiment alongside US monetary policy, country specific risks, inflation and domestic stock returns on the BRICS credit default spreads. To investigate this relationship, the study uses panel data and a fixed effects model. The results of the panel regressions suggest that all variables had an impact on the variation of BRICS credit default spreads however the crisis may have distorted the relationship among the variables. Sovereign ratings had an inverse relationship depicting a rise in ratings decreasing the credit default premium. This was in line with a priori expectations. Domestic company earnings also had an inverse relationship with BRCIS credit default premia, the magnitude of which is dependent on the value of the index. This is to say the higher the index, the more significant the effect on the BRICS default premium. US monetary policy was significant and in line with expectations of a linear relationship between emerging market credit default spreads when controlling for the crisis. In the crisis period however, results depicted an inverse relationship going against a priori expectations. The inflation variable was found to have a greater impact on CDS spreads during the crisis period, while the VIX index had a linear relationship with the default premia albeit the impact was not highly significant. The study concludes that the financial crisis was an important event that affected the relationship of these variables with BRICS country default spreads and had read through to market participant’s behaviour at the time.
- Full Text:
The effects of changing western worldviews on morals and ethics in economics: a protestant perspective
- Authors: Appalraju, Nerusha
- Date: 2017
- Subjects: Economics -- Moral and ethical aspects , Neoclassical school of economics , Capitalism -- Religious aspects -- Protestant churches , Feminist economics , Economics -- Religious aspects , Environmental economics -- Moral and ethical aspects , Smith, Adam, 1723-1790 , Weber, Max, 1864-1920
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/32480 , vital:24050
- Description: The World Economics Association held an online conference in 2012 where they published many papers on ethics in economics. The topic of ethics in economics became more serious and popular following the 2008 financial crisis. However the case for a professional code of ethics in economics is difficult to introduce and implement due to the multidisciplinary approach of the discipline. Therefore authors such as Dow (2012), De Martino (2012), Freeman (2012) and Earl (2012) urged economists to start thinking about ethics in economics from a pluralistic view. This thesis studied the effects of changing Western worldviews on morals and ethics in economics from a Protestant perspective. Numerous authoritative sources were considered and used to create a discussion and analysis of how diverse Western worldviews impact on the type of economics which is prescribed and practiced. It was found that different Western worldviews create various standards of understanding and evaluation, which result in varying opinions on what constitutes as morally or ethically acceptable within the discipline of economics.
- Full Text:
- Authors: Appalraju, Nerusha
- Date: 2017
- Subjects: Economics -- Moral and ethical aspects , Neoclassical school of economics , Capitalism -- Religious aspects -- Protestant churches , Feminist economics , Economics -- Religious aspects , Environmental economics -- Moral and ethical aspects , Smith, Adam, 1723-1790 , Weber, Max, 1864-1920
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/32480 , vital:24050
- Description: The World Economics Association held an online conference in 2012 where they published many papers on ethics in economics. The topic of ethics in economics became more serious and popular following the 2008 financial crisis. However the case for a professional code of ethics in economics is difficult to introduce and implement due to the multidisciplinary approach of the discipline. Therefore authors such as Dow (2012), De Martino (2012), Freeman (2012) and Earl (2012) urged economists to start thinking about ethics in economics from a pluralistic view. This thesis studied the effects of changing Western worldviews on morals and ethics in economics from a Protestant perspective. Numerous authoritative sources were considered and used to create a discussion and analysis of how diverse Western worldviews impact on the type of economics which is prescribed and practiced. It was found that different Western worldviews create various standards of understanding and evaluation, which result in varying opinions on what constitutes as morally or ethically acceptable within the discipline of economics.
- Full Text:
The impact of good news and bad news on South Africa’s sectoral stock return volatility: an asymmetric GARCH analysis
- Authors: Muzinda, Edmond Toreva
- Date: 2017
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/6425 , vital:21108
- Description: This study explores the impact of good news and bad news on South Africa’s sectoral stock return volatility using an asymmetric GARCH analysis. Understanding the different impact of news on stock return volatility in different economic sectors has important implications for investors’ risk management practices, portfolio allocation strategies and asset pricing. The study employs data of daily closing prices for nine sectors and three benchmark indices for the period 2nd January 1997 - 17th August 2016. The data was split into sub-samples of pre-, during and post-global financial crisis, as well as the overall sample period. The incorporation of sub-samples was to help explain the outcomes of the overall sample period. To capture the different impact of good news and bad news on stock return volatility for each sector, asymmetric GARCH models namely, TGARCH and EGARCH were employed. The findings from this study revealed that volatility asymmetry was present in all sectors and benchmark indices of South African equity market. Bad news had more impact on stock return volatility for all sectors except the Oil and Gas sector, than good news of the same magnitude. In the Oil and Gas sector, good news was found to have an amplified effect on return volatility compared with bad news of the same magnitude. High volatility persistence was also found to be present in the Consumer goods, Financials, Industrials, All-share index and Mid-cap index. High differential impact of good and bad news were found in the Industrials, Financials, Basic materials, Consumer goods and the All-share index. Since the main objective of this study was to provide explanations of volatility asymmetry found in the South African sectors, the following were proposed as possible explanations of the findings. Within sectors, volatility asymmetry was explained by financial leverage, the role of the media, loss-averse investors and the behaviour of traders (overconfidence and extrapolation bias). Volatility asymmetry across sectors was explained by information flow, the uneven distribution of information by the media, investor sentiments, investor expectations and trading volumes. Overall, the results indicate that the stock return volatility of individual sectors of the South African equity market is driven mainly by bad news (except for Oil and Gas) and that leverage effects exist in all the sectors and in the benchmark indices.
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- Authors: Muzinda, Edmond Toreva
- Date: 2017
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/6425 , vital:21108
- Description: This study explores the impact of good news and bad news on South Africa’s sectoral stock return volatility using an asymmetric GARCH analysis. Understanding the different impact of news on stock return volatility in different economic sectors has important implications for investors’ risk management practices, portfolio allocation strategies and asset pricing. The study employs data of daily closing prices for nine sectors and three benchmark indices for the period 2nd January 1997 - 17th August 2016. The data was split into sub-samples of pre-, during and post-global financial crisis, as well as the overall sample period. The incorporation of sub-samples was to help explain the outcomes of the overall sample period. To capture the different impact of good news and bad news on stock return volatility for each sector, asymmetric GARCH models namely, TGARCH and EGARCH were employed. The findings from this study revealed that volatility asymmetry was present in all sectors and benchmark indices of South African equity market. Bad news had more impact on stock return volatility for all sectors except the Oil and Gas sector, than good news of the same magnitude. In the Oil and Gas sector, good news was found to have an amplified effect on return volatility compared with bad news of the same magnitude. High volatility persistence was also found to be present in the Consumer goods, Financials, Industrials, All-share index and Mid-cap index. High differential impact of good and bad news were found in the Industrials, Financials, Basic materials, Consumer goods and the All-share index. Since the main objective of this study was to provide explanations of volatility asymmetry found in the South African sectors, the following were proposed as possible explanations of the findings. Within sectors, volatility asymmetry was explained by financial leverage, the role of the media, loss-averse investors and the behaviour of traders (overconfidence and extrapolation bias). Volatility asymmetry across sectors was explained by information flow, the uneven distribution of information by the media, investor sentiments, investor expectations and trading volumes. Overall, the results indicate that the stock return volatility of individual sectors of the South African equity market is driven mainly by bad news (except for Oil and Gas) and that leverage effects exist in all the sectors and in the benchmark indices.
- Full Text: