Is there an inverse-u relationship between financialisation and investment?: South Africa’s stock market capitalisation in comparative perspective
- Authors: Owen, Michael Robert
- Date: 2021-10
- Subjects: Monetary policy South Africa , Globalization , Economics South Africa , Capital movements South Africa , Stock exchanges South Africa , Investments South Africa , Economic development South Africa , South Africa Economic conditions 1991-
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10962/191084 , vital:45058
- Description: In recent decades, the growth and fluctuations in the financial sector have become increasingly disjointed from events in the real economy. There has been a dramatic increase in global market integration and globalisation since the 2008 financial crisis. The argument presented in the thesis shows perspective from the two general debates in Economics. The Orthodox view, which suggests there is an efficient flow of resources between people and institutions over time, supports the argument that there is a positive relationship between financialisation and economic growth. Alternatively, the Heterodox view argues that financial liberalisation fails to anticipate market effects and requires intervention in order to limit negative consequences. More recent studies have proposed an inverse-U theory between financialisation and investment, which suggests that there is a threshold, above which further financial development and financial globalisation has detrimental effects on the real economy. With South Africa being a developing country that is highly reliant on capital inflows to finance the economy, there is space for more acute research to investigate whether South Africa has surpassed this threshold. This study focusses on one aspect of this relationship, namely the relationship between Stock Market Capitalisation and Investment. It uses panel data analysis and other methods to explore whether such an inverse-U relationship exists internationally, and whether South Africa is suffering from the effects of financialisation. , Thesis (MCom) -- Faculty of Commerce, Economics and Economic History, 2021
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- Authors: Owen, Michael Robert
- Date: 2021-10
- Subjects: Monetary policy South Africa , Globalization , Economics South Africa , Capital movements South Africa , Stock exchanges South Africa , Investments South Africa , Economic development South Africa , South Africa Economic conditions 1991-
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10962/191084 , vital:45058
- Description: In recent decades, the growth and fluctuations in the financial sector have become increasingly disjointed from events in the real economy. There has been a dramatic increase in global market integration and globalisation since the 2008 financial crisis. The argument presented in the thesis shows perspective from the two general debates in Economics. The Orthodox view, which suggests there is an efficient flow of resources between people and institutions over time, supports the argument that there is a positive relationship between financialisation and economic growth. Alternatively, the Heterodox view argues that financial liberalisation fails to anticipate market effects and requires intervention in order to limit negative consequences. More recent studies have proposed an inverse-U theory between financialisation and investment, which suggests that there is a threshold, above which further financial development and financial globalisation has detrimental effects on the real economy. With South Africa being a developing country that is highly reliant on capital inflows to finance the economy, there is space for more acute research to investigate whether South Africa has surpassed this threshold. This study focusses on one aspect of this relationship, namely the relationship between Stock Market Capitalisation and Investment. It uses panel data analysis and other methods to explore whether such an inverse-U relationship exists internationally, and whether South Africa is suffering from the effects of financialisation. , Thesis (MCom) -- Faculty of Commerce, Economics and Economic History, 2021
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The political ecological economics of coal mining and water resources: a participatory economic valuation approach in Carolina, Mpumalanga
- Authors: Nzimande, Nqobile
- Date: 2020
- Subjects: Natural resources -- Management , Natural resources -- Management -- South Africa -- Carolina , Natural resources -- Valuation , Natural resources -- Valuation -- South Africa -- Carolina , Coal mines and mining -- Environmental aspects -- South Africa -- Carolina , Water-supply -- South Africa -- Carolina , Water-supply -- Government policy -- South Africa -- Carolina , Water conservation -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/167274 , vital:41463
- Description: Globally, resource economic valuation has traditionally focused on monetary and market-based methods. However, there has been a recent move towards more transdiciplinary methods that encourage civil participation in resource economic valuation studies with the aim of generating more site-specific and appropriate values which can potentially improve natural resource management decisions. With a focus on Carolina, this thesis investigated whether citizen based participatory approaches can result in more appropriate resource economic values that reflect the social environmental values in Carolina. A qualitative research approach was adopted for this research which incorporated questionnaires and semi-structured interviews. The research also adopted an inductive thematic analysis. The findings of the research showed that local scale stakeholders have different perceived values of natural resources. The research further showed that national scale resource governance institutions deal with issues of natural resource economic conflicts related to environmental policy and decision making. The study will contribute to deepening an understanding of the contribution that a natural resource economics assessment, or analysis can have on equitable, sustainable and efficient water resource management in the face of water-use contestation
- Full Text:
- Authors: Nzimande, Nqobile
- Date: 2020
- Subjects: Natural resources -- Management , Natural resources -- Management -- South Africa -- Carolina , Natural resources -- Valuation , Natural resources -- Valuation -- South Africa -- Carolina , Coal mines and mining -- Environmental aspects -- South Africa -- Carolina , Water-supply -- South Africa -- Carolina , Water-supply -- Government policy -- South Africa -- Carolina , Water conservation -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/167274 , vital:41463
- Description: Globally, resource economic valuation has traditionally focused on monetary and market-based methods. However, there has been a recent move towards more transdiciplinary methods that encourage civil participation in resource economic valuation studies with the aim of generating more site-specific and appropriate values which can potentially improve natural resource management decisions. With a focus on Carolina, this thesis investigated whether citizen based participatory approaches can result in more appropriate resource economic values that reflect the social environmental values in Carolina. A qualitative research approach was adopted for this research which incorporated questionnaires and semi-structured interviews. The research also adopted an inductive thematic analysis. The findings of the research showed that local scale stakeholders have different perceived values of natural resources. The research further showed that national scale resource governance institutions deal with issues of natural resource economic conflicts related to environmental policy and decision making. The study will contribute to deepening an understanding of the contribution that a natural resource economics assessment, or analysis can have on equitable, sustainable and efficient water resource management in the face of water-use contestation
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The primacy of illicit financial flows (IFFs) in developing countries: a comparative study analysis of South Africa and China
- Authors: Mahlaba, Asande Cikizwa
- Date: 2020
- Subjects: Money -- Developing countries , Transfer pricing -- South Africa , Developing countries -- Economic conditions , Tax evasion -- China , Tax evasion -- South Africa
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/147435 , vital:38636
- Description: The main objective of this study was to question and investigate the primacy of illicit financial flows (IFFs) in developing countries, specifically focused on two countries namely China and South Africa. Africa is estimated to have lost approximately $1 trillion to IFFs over the last 50 years, which exceeds the financial assistance that these nations needed over the same period. For years. Africa has been the feeding ground for exploitation and resource plunder, and the narrative has always been Africa is underdeveloped because of this crime. Although this statement holds true in most African countries, what this paper seeks to do is to question whether capital flight, IFFs and more specifically tax evasion and tax haven activity are the reason for the deterioration of African economies or are IFFs perpetuated by economies with unsustainable growth paths. IFFs are an important factor when it comes to obstacles of economic growth. But are they the cause or effect? A very strong case can be made that they are the latter however, it is beyond the scope of this article to resolve this question. Its purpose is merely to assert that the question is a valid one and that presuming the answer could divert attention from the real question of economic development. This study contextualized the way in which IFFs are currently viewed in the world economic system according to the two approaches to development finance, and discussed modern monetary theory as an extension off these theories. Due to the nature of the study, the methodology employed is a case study approach between China and South Africa by means of extensive numerical and document analysis. Upon conducting this analysis on the primacy of illicit financial flows in developing countries there was difficulty in measuring IFFs. The reason for this is because IFFs have a range of estimates so it was very difficult to produce precise and accurate results. The key findings of this paper were that there seems to be some kind of parallel between developing countries with large volumes of illicit financial outflows, and a dependency these countries have on external debt. This means it seems that weak economies, that are highly dependent on external debt and have large amounts of this debt, seem to have the largest volumes of illicit financial outflows. Weak regulation, high levels of debt and liberalised trade markets seem to be contributing factors to the degree to which companies evade taxes and partake in tax haven activity in these regions. Another key finding was that in 2012, despite China being ranked number one in the the countries which have the largest amounts of outflows on average, it still managed to achieve large amounts growth in the last 20 years. Indicating that there is some form of indication that IFFs could be viewed as symptomatic of weak financial systems and weak economies, instead of IFFs being the core of the problem.
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- Authors: Mahlaba, Asande Cikizwa
- Date: 2020
- Subjects: Money -- Developing countries , Transfer pricing -- South Africa , Developing countries -- Economic conditions , Tax evasion -- China , Tax evasion -- South Africa
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/147435 , vital:38636
- Description: The main objective of this study was to question and investigate the primacy of illicit financial flows (IFFs) in developing countries, specifically focused on two countries namely China and South Africa. Africa is estimated to have lost approximately $1 trillion to IFFs over the last 50 years, which exceeds the financial assistance that these nations needed over the same period. For years. Africa has been the feeding ground for exploitation and resource plunder, and the narrative has always been Africa is underdeveloped because of this crime. Although this statement holds true in most African countries, what this paper seeks to do is to question whether capital flight, IFFs and more specifically tax evasion and tax haven activity are the reason for the deterioration of African economies or are IFFs perpetuated by economies with unsustainable growth paths. IFFs are an important factor when it comes to obstacles of economic growth. But are they the cause or effect? A very strong case can be made that they are the latter however, it is beyond the scope of this article to resolve this question. Its purpose is merely to assert that the question is a valid one and that presuming the answer could divert attention from the real question of economic development. This study contextualized the way in which IFFs are currently viewed in the world economic system according to the two approaches to development finance, and discussed modern monetary theory as an extension off these theories. Due to the nature of the study, the methodology employed is a case study approach between China and South Africa by means of extensive numerical and document analysis. Upon conducting this analysis on the primacy of illicit financial flows in developing countries there was difficulty in measuring IFFs. The reason for this is because IFFs have a range of estimates so it was very difficult to produce precise and accurate results. The key findings of this paper were that there seems to be some kind of parallel between developing countries with large volumes of illicit financial outflows, and a dependency these countries have on external debt. This means it seems that weak economies, that are highly dependent on external debt and have large amounts of this debt, seem to have the largest volumes of illicit financial outflows. Weak regulation, high levels of debt and liberalised trade markets seem to be contributing factors to the degree to which companies evade taxes and partake in tax haven activity in these regions. Another key finding was that in 2012, despite China being ranked number one in the the countries which have the largest amounts of outflows on average, it still managed to achieve large amounts growth in the last 20 years. Indicating that there is some form of indication that IFFs could be viewed as symptomatic of weak financial systems and weak economies, instead of IFFs being the core of the problem.
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Careerism and capitalism as women’s emancipation: a critical analysis of Rand Merchant Bank’s ‘Athena Programme', South Africa
- Authors: Mosesi, Poloko Prudence
- Date: 2019
- Subjects: Rand Merchant Bank (South Africa) , Women in economic development -- South Africa , Women in finance -- South Africa , Neoliberalism -- South Africa
- Language: English
- Type: text , Thesis , Masters , MSocSc
- Identifier: http://hdl.handle.net/10962/140344 , vital:37881
- Description: Against the backdrop of debates on feminism and neo– liberalism, this thesis presents a critical analysis of Rand Merchant Bank’s (RMB) Athena programme in South Africa – an award– winning programme run by women, which aims to develop women as senior managers – and of the type of feminism it represents, using a Marxist feminist theoretical framework. Rand Merchant Bank’s is one of the largest investment banks in Africa, part of the giant First Rand Group (FRG) alongside First National Bank (FNB) group. The thesis, based on a detailed case study using qualitative methods, argues that Athena is a very much product of its time: it advances the argument that if more women were in position of power, women in general would be free, and it views the problem of women’s oppression with an individualist lens, which focuses on attitudes and confidence. Athena, like many initiatives of the neo– liberal era, such as Sandberg’s Lean– In philosophy and the Nike Foundation’s ‘Girl Effect’ promote individual understanding and emancipation of women, which sees emancipation in terms of creating a neo– liberal subject that operates more effectively within a capitalist framework, sees capitalism as the solution – rather than the cause – of women’s unequal circumstance and ignores structural issues like class. In effect, Athena argues that the free market and big corporations are neutral tools that can answer the question of women equality, if only women had the correct attitudes, and so long as corporate hierarchies and profits are accepted as fair, and women are seen as an untapped resource that can be used in a ‘smart economics.’ What all these initiatives have in common is shifting the burden and responsibility to women without proper interrogation of the systems that perpetuate inequalities, and a trickle– down theory, according to which more women capitalists and more women in the ruling class will empower the women in the working class.
- Full Text:
- Authors: Mosesi, Poloko Prudence
- Date: 2019
- Subjects: Rand Merchant Bank (South Africa) , Women in economic development -- South Africa , Women in finance -- South Africa , Neoliberalism -- South Africa
- Language: English
- Type: text , Thesis , Masters , MSocSc
- Identifier: http://hdl.handle.net/10962/140344 , vital:37881
- Description: Against the backdrop of debates on feminism and neo– liberalism, this thesis presents a critical analysis of Rand Merchant Bank’s (RMB) Athena programme in South Africa – an award– winning programme run by women, which aims to develop women as senior managers – and of the type of feminism it represents, using a Marxist feminist theoretical framework. Rand Merchant Bank’s is one of the largest investment banks in Africa, part of the giant First Rand Group (FRG) alongside First National Bank (FNB) group. The thesis, based on a detailed case study using qualitative methods, argues that Athena is a very much product of its time: it advances the argument that if more women were in position of power, women in general would be free, and it views the problem of women’s oppression with an individualist lens, which focuses on attitudes and confidence. Athena, like many initiatives of the neo– liberal era, such as Sandberg’s Lean– In philosophy and the Nike Foundation’s ‘Girl Effect’ promote individual understanding and emancipation of women, which sees emancipation in terms of creating a neo– liberal subject that operates more effectively within a capitalist framework, sees capitalism as the solution – rather than the cause – of women’s unequal circumstance and ignores structural issues like class. In effect, Athena argues that the free market and big corporations are neutral tools that can answer the question of women equality, if only women had the correct attitudes, and so long as corporate hierarchies and profits are accepted as fair, and women are seen as an untapped resource that can be used in a ‘smart economics.’ What all these initiatives have in common is shifting the burden and responsibility to women without proper interrogation of the systems that perpetuate inequalities, and a trickle– down theory, according to which more women capitalists and more women in the ruling class will empower the women in the working class.
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Social movements and economic development in post apartheid South Africa: lessons from Latin America
- Authors: Makoni, Tinotenda Charity
- Date: 2019
- Subjects: South Africa -- Economic conditions -- 1991- , South Africa -- Politics and government -- 1994- , Social movements -- South Africa , Social movements -- Latin America , Economic development -- South Africa
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/76420 , vital:30561
- Description: The aim of this research is to bring the literature on political agency and economics together in an analysis of whether social movements can play an important role in economic development in post-apartheid South Africa. The entrenched discourse of sluggish growth and high inequality in post-apartheid South Africa can largely be attributed to the political decision to implement a neoliberal economic development orthodoxy. On the one hand, there is an urgent need to shift the economic development model to an alternate developmentalist model. However, no clearly articulated alternative developmental model has emerged. As a result, economically, South Africa is seemingly stuck. On the other hand, the selection of an economic development model and change in macroeconomic policies requires a political shift. Politically, formal politics has assumed the form of neoliberal democracy, characterised by a largely centralised state and the usurpation of the state and institutions by a national bourgeoisie. Social movements have emerged in response to the failure of neoliberalism to fulfil the promises of early post independent periods. They have been largely successful at highlighting the injustices and the inequalities in the country. However their ability to influence structural economic development has come into question. Firstly, social movements and their “politically destabilising distributive demands” have faced repression from the state as the state and institutions are aligned behind the interests of capital under a neoliberal democracy. Secondly, social movements in South Africa have been largely ideologically under-developed. They have been largely fragmented and tended to contest specific single issues rather than aiming to shift the deeper underlying systemic drivers behind the symptomatic immediate discomforts. The economic dimensions of such a shift are particularly unclear. This fragmentation and apparent lack of economic pragmatism make management or suppression of disruptive movements by the state relatively easy. The research uses a contrast between the Latin American social movements against a South African background in order to see what lessons South Africa can draw from social movements in Latin America. The Latin American case is cautiously more positive and provides comparably more sanguine lessons. In this way, this research seeks to construct a more comprehensive framework for the further study of social movements in South Africa and their potential impact on economic development in South Africa.
- Full Text:
Social movements and economic development in post apartheid South Africa: lessons from Latin America
- Authors: Makoni, Tinotenda Charity
- Date: 2019
- Subjects: South Africa -- Economic conditions -- 1991- , South Africa -- Politics and government -- 1994- , Social movements -- South Africa , Social movements -- Latin America , Economic development -- South Africa
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/76420 , vital:30561
- Description: The aim of this research is to bring the literature on political agency and economics together in an analysis of whether social movements can play an important role in economic development in post-apartheid South Africa. The entrenched discourse of sluggish growth and high inequality in post-apartheid South Africa can largely be attributed to the political decision to implement a neoliberal economic development orthodoxy. On the one hand, there is an urgent need to shift the economic development model to an alternate developmentalist model. However, no clearly articulated alternative developmental model has emerged. As a result, economically, South Africa is seemingly stuck. On the other hand, the selection of an economic development model and change in macroeconomic policies requires a political shift. Politically, formal politics has assumed the form of neoliberal democracy, characterised by a largely centralised state and the usurpation of the state and institutions by a national bourgeoisie. Social movements have emerged in response to the failure of neoliberalism to fulfil the promises of early post independent periods. They have been largely successful at highlighting the injustices and the inequalities in the country. However their ability to influence structural economic development has come into question. Firstly, social movements and their “politically destabilising distributive demands” have faced repression from the state as the state and institutions are aligned behind the interests of capital under a neoliberal democracy. Secondly, social movements in South Africa have been largely ideologically under-developed. They have been largely fragmented and tended to contest specific single issues rather than aiming to shift the deeper underlying systemic drivers behind the symptomatic immediate discomforts. The economic dimensions of such a shift are particularly unclear. This fragmentation and apparent lack of economic pragmatism make management or suppression of disruptive movements by the state relatively easy. The research uses a contrast between the Latin American social movements against a South African background in order to see what lessons South Africa can draw from social movements in Latin America. The Latin American case is cautiously more positive and provides comparably more sanguine lessons. In this way, this research seeks to construct a more comprehensive framework for the further study of social movements in South Africa and their potential impact on economic development in South Africa.
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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.
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- 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.
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Transitions into informal employment: an analysis of South African panel data: 2008-2012
- Authors: Muttze, Takudzwa
- Date: 2016
- Language: English
- Type: Thesis , Masters , MEcon
- Identifier: http://hdl.handle.net/10962/4498 , vital:20682
- Description: South Africa’s labour market is characterised by high unemployment but relatively low levels of informal employment, making it distinct from other developing countries. The existing literature appears to show evidence of high mobility rates of labour across labour market states. The coexistence of high labour mobility rates, yet high unemployment and weak informal employment in South Africa’s labour market is therefore puzzling. Considerable research has been done to explain this phenomenon and has suggested that barriers to informal entrepreneurship form the key reason why informal employment is relatively low in South Africa compared to other developing countries. Worker transitions have however not been a focal question in the literature. Using data from the National Tncome Dynamics Study (NTDS 2008-2012), this study sought to examine the characteristics of workers who move into informal employment, attaching importance to those who become self-employed. Transition matrices are constructed showing the proportion of workers who stayed or moved into different labour market states between 2008 and 2012, and linking the movements to 2008 personal characteristics. Churning between labour market states was found to be relatively high, albeit formal wage employment exhibiting immobility. Transitions out of informal employment were high, reflecting its survivalist nature. Conversely, those from unemployment into informal employment, particularly self-employment were low. Using the probit regression model, transitions to informal employment were found to be more associated with workers who are generally marginalised from formal employment opportunities. The results suggest that the South African labour market is to a larger extent not reflective of the Dualist narrative of ease of movement of workers from unemployment into informal employment and barriers into informal entrepreneurship are high. To date, policies which have sought to encourage informal entrepreneurship have not been a success. A central challenge to policymakers is to create an enabling environment for the unemployed to start their own informal businesses. This has the potential of reducing unemployment and poverty rates in the country.
- Full Text:
- Authors: Muttze, Takudzwa
- Date: 2016
- Language: English
- Type: Thesis , Masters , MEcon
- Identifier: http://hdl.handle.net/10962/4498 , vital:20682
- Description: South Africa’s labour market is characterised by high unemployment but relatively low levels of informal employment, making it distinct from other developing countries. The existing literature appears to show evidence of high mobility rates of labour across labour market states. The coexistence of high labour mobility rates, yet high unemployment and weak informal employment in South Africa’s labour market is therefore puzzling. Considerable research has been done to explain this phenomenon and has suggested that barriers to informal entrepreneurship form the key reason why informal employment is relatively low in South Africa compared to other developing countries. Worker transitions have however not been a focal question in the literature. Using data from the National Tncome Dynamics Study (NTDS 2008-2012), this study sought to examine the characteristics of workers who move into informal employment, attaching importance to those who become self-employed. Transition matrices are constructed showing the proportion of workers who stayed or moved into different labour market states between 2008 and 2012, and linking the movements to 2008 personal characteristics. Churning between labour market states was found to be relatively high, albeit formal wage employment exhibiting immobility. Transitions out of informal employment were high, reflecting its survivalist nature. Conversely, those from unemployment into informal employment, particularly self-employment were low. Using the probit regression model, transitions to informal employment were found to be more associated with workers who are generally marginalised from formal employment opportunities. The results suggest that the South African labour market is to a larger extent not reflective of the Dualist narrative of ease of movement of workers from unemployment into informal employment and barriers into informal entrepreneurship are high. To date, policies which have sought to encourage informal entrepreneurship have not been a success. A central challenge to policymakers is to create an enabling environment for the unemployed to start their own informal businesses. This has the potential of reducing unemployment and poverty rates in the country.
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Is economic growth without human development sustainable? : Sub-Saharan Africa’s recent growth acceleration in context
- Authors: Hadisi Basingene, Serge
- Date: 2014
- Subjects: Sustainable development -- Africa, Sub-Saharan , Economic development -- Africa, Sub-Saharan , Poverty -- Africa, Sub-Saharan , Africa, Sub-Saharan -- Social conditions , Africa, Sub-Saharan -- Economic conditions , Africa, Sub-Saharan -- Economic policy
- Language: English
- Type: Thesis , Masters , MEcon
- Identifier: vital:1098 , http://hdl.handle.net/10962/d1013137
- Description: The purpose of the study has been to assess the question of sustainability of economic growth and human development, particularly using sub-Saharan Africa in context. Sub-Saharan Africa is an interesting case study because, on the one hand, it has been mired in poverty and remains the least developed region in the world, and on the other, it has experienced a revival in economic growth since the mid-1990s. Economists tend to use the term economic development and economic growth interchangeably. However, questions have been raised about whether Africa’s latest growth episode is indeed ‘development’. Although there are many issues at stake, the key question, and the focus of this thesis, is whether sub-Saharan Africa’s revival is sustainable. The paper sets out the debate between the ‘World Bank view’ and the ‘alternative view’. The main debate lies around how genuine development should be achieved. Firstly, the ‘World Bank view’ claims that economic growth is necessary and sufficient condition to achieve development. Economic growth will be generated by ‘orthodox’ policies and this growth will automatically trickle-down and stimulate development. Secondly, the ‘alternative view’ argues that economic growth is necessary but it is not sufficient to stimulate sustainable development. Economic growth without ‘qualitative’ change is not ‘sustainable’. Indeed, human development shortfalls (as well as other, social, political and structural problems), if not addressed through appropriate policy interventions, can undermine economic growth. The ‘alternative view’ appears to be strongly supported by evidence from other developing regions such as Latin America and East Asia. The empirical study conducted in this thesis reinforces doubts about ‘sustainability’. Even though there are signs of convergence in some indicators; this is not the case for all indicators. More importantly the gap between sub-Saharan Africa and other developing regions remains very wide. Sub-Saharan Africa’s development path remains uncertain. The intention in this study is not to be conclusive that sub-Saharan Africa cannot achieve sustainable development. Rather the study attempts to identify potential hindrances to sub-Saharan Africa’s development and to provide a solid foundation for further research in the same direction.
- Full Text:
- Authors: Hadisi Basingene, Serge
- Date: 2014
- Subjects: Sustainable development -- Africa, Sub-Saharan , Economic development -- Africa, Sub-Saharan , Poverty -- Africa, Sub-Saharan , Africa, Sub-Saharan -- Social conditions , Africa, Sub-Saharan -- Economic conditions , Africa, Sub-Saharan -- Economic policy
- Language: English
- Type: Thesis , Masters , MEcon
- Identifier: vital:1098 , http://hdl.handle.net/10962/d1013137
- Description: The purpose of the study has been to assess the question of sustainability of economic growth and human development, particularly using sub-Saharan Africa in context. Sub-Saharan Africa is an interesting case study because, on the one hand, it has been mired in poverty and remains the least developed region in the world, and on the other, it has experienced a revival in economic growth since the mid-1990s. Economists tend to use the term economic development and economic growth interchangeably. However, questions have been raised about whether Africa’s latest growth episode is indeed ‘development’. Although there are many issues at stake, the key question, and the focus of this thesis, is whether sub-Saharan Africa’s revival is sustainable. The paper sets out the debate between the ‘World Bank view’ and the ‘alternative view’. The main debate lies around how genuine development should be achieved. Firstly, the ‘World Bank view’ claims that economic growth is necessary and sufficient condition to achieve development. Economic growth will be generated by ‘orthodox’ policies and this growth will automatically trickle-down and stimulate development. Secondly, the ‘alternative view’ argues that economic growth is necessary but it is not sufficient to stimulate sustainable development. Economic growth without ‘qualitative’ change is not ‘sustainable’. Indeed, human development shortfalls (as well as other, social, political and structural problems), if not addressed through appropriate policy interventions, can undermine economic growth. The ‘alternative view’ appears to be strongly supported by evidence from other developing regions such as Latin America and East Asia. The empirical study conducted in this thesis reinforces doubts about ‘sustainability’. Even though there are signs of convergence in some indicators; this is not the case for all indicators. More importantly the gap between sub-Saharan Africa and other developing regions remains very wide. Sub-Saharan Africa’s development path remains uncertain. The intention in this study is not to be conclusive that sub-Saharan Africa cannot achieve sustainable development. Rather the study attempts to identify potential hindrances to sub-Saharan Africa’s development and to provide a solid foundation for further research in the same direction.
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The developmental state, social policy and social compacts: a comparative policy analysis of the South African case
- Authors: Gwaindepi, Abel
- Date: 2014
- Subjects: Economic development -- Political aspects -- South Africa , Income distribution -- South Africa , Democracy -- South Africa , Industrial policy -- Developing countries , South Africa -- Economic conditions , South Africa -- Social conditions
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1101 , http://hdl.handle.net/10962/d1013278
- Description: The history of economic thought is ‘flooded’ with neo-classical accounts despite the fact that neoclassical economics did not occupy history alone. This has caused the discourses on ‘lost alternatives’ to be relegated as the deterministic ‘straight line’ neo-classical historical discourses are elevated. Globally hegemonic neo-classical discourse aided this phenomenon as it served to subordinate any counterhegemonic local discursive processes towards alternatives. This study is premised on the theme of non-neoclassical ‘lost alternatives’ using the post-apartheid South Africa as a case study. Emerging from the apartheid regime, the impetus towards non-neoclassical redistributive policies was strong in South Africa but this did not gain traction as the ANC’s ‘growth through redistribution’ was replaced by globally hegemonic discourse which favoured ‘redistribution through growth’. This thesis postulates the idea of two waves of ‘internal’ discursive formations; capturing the transition to democracy up to 1996 as the first wave and the period from 2005 to about 2009 as the second wave. The developmental state paradigm (DSP) emerged as the central heterodox paradigm with ideas such as industrial policy, welfare, and social dialogue/compacts being main elements. The DSP was expressly chosen in the early 1990s, the first period of strong internal discursive formation, but faded as neo-classical policies, epitomised through GEAR, dominated the policy space. The DSP discourse gained vitality in the second wave of internal discursive formation (2005-2009) and it was associated with the subsequent Zuma’s administration. The study illustrates that the DSP has failed to be fully developed into a practical framework but remained only at rhetorical level with the phrase ‘developmental state’ inserted into government policy documents and documents of ANC as a ruling party. The thesis further illustrates that the DSP fared well ideologically because of its inclination to the ideology of ‘developmentalism’ tended to trump any socialist inclined policies such as a generous welfare regime. The thesis rebuts the notion of the DSP in South Africa which has only been amorphously developed with the phrase ‘developmental state’ becoming a mere buzzword. The thesis argues that the DSP in the 21st century is much more complex and the growing ‘tertiarisation’ of the economy makes the Social Democratic Paradigm SDP’s capability centric approach much more relevant for South Africa. The study goes further to argue that a (SDP) is much more suitable alternative for addressing South African colonial/apartheid legacies and consolidation of democracy.
- Full Text:
- Authors: Gwaindepi, Abel
- Date: 2014
- Subjects: Economic development -- Political aspects -- South Africa , Income distribution -- South Africa , Democracy -- South Africa , Industrial policy -- Developing countries , South Africa -- Economic conditions , South Africa -- Social conditions
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1101 , http://hdl.handle.net/10962/d1013278
- Description: The history of economic thought is ‘flooded’ with neo-classical accounts despite the fact that neoclassical economics did not occupy history alone. This has caused the discourses on ‘lost alternatives’ to be relegated as the deterministic ‘straight line’ neo-classical historical discourses are elevated. Globally hegemonic neo-classical discourse aided this phenomenon as it served to subordinate any counterhegemonic local discursive processes towards alternatives. This study is premised on the theme of non-neoclassical ‘lost alternatives’ using the post-apartheid South Africa as a case study. Emerging from the apartheid regime, the impetus towards non-neoclassical redistributive policies was strong in South Africa but this did not gain traction as the ANC’s ‘growth through redistribution’ was replaced by globally hegemonic discourse which favoured ‘redistribution through growth’. This thesis postulates the idea of two waves of ‘internal’ discursive formations; capturing the transition to democracy up to 1996 as the first wave and the period from 2005 to about 2009 as the second wave. The developmental state paradigm (DSP) emerged as the central heterodox paradigm with ideas such as industrial policy, welfare, and social dialogue/compacts being main elements. The DSP was expressly chosen in the early 1990s, the first period of strong internal discursive formation, but faded as neo-classical policies, epitomised through GEAR, dominated the policy space. The DSP discourse gained vitality in the second wave of internal discursive formation (2005-2009) and it was associated with the subsequent Zuma’s administration. The study illustrates that the DSP has failed to be fully developed into a practical framework but remained only at rhetorical level with the phrase ‘developmental state’ inserted into government policy documents and documents of ANC as a ruling party. The thesis further illustrates that the DSP fared well ideologically because of its inclination to the ideology of ‘developmentalism’ tended to trump any socialist inclined policies such as a generous welfare regime. The thesis rebuts the notion of the DSP in South Africa which has only been amorphously developed with the phrase ‘developmental state’ becoming a mere buzzword. The thesis argues that the DSP in the 21st century is much more complex and the growing ‘tertiarisation’ of the economy makes the Social Democratic Paradigm SDP’s capability centric approach much more relevant for South Africa. The study goes further to argue that a (SDP) is much more suitable alternative for addressing South African colonial/apartheid legacies and consolidation of democracy.
- Full Text:
Optimistic science: the effectiveness of economic methodology in achieving objectivity
- Authors: Holl, Ryan
- Date: 2012
- Subjects: Economics -- Methodology , Social epistemology , Knowledge, Theory of -- Science , Objectivity -- Science , Science -- Methodology , Optimism
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1105 , http://hdl.handle.net/10962/d1013393
- Description: This thesis examines the extent to which optimism has a bearing on objectivity in scientific inquiry. It is not, however, a psychological level examination into objectivity. Rather, the discussion focuses on collective attitudes, whether in the form of science or a more general public opinion. In essence, sources of optimism at the fundamental level of scientific inquiry are articulated with a careful attempt to differentiate between attitudes about the subject (methodology) and the object of study. The antithetical thread of optimism versus pessimism is teased out with the use of a joint case study of liberalism and Stalinism. The idea of antithesis, however, is contrasted by the fact that, although mirror image ideologies, these collective attitudes share a common faith in progress (albeit through different social mechanisms). This faith in progress provides the basis for the crux of the thesis as it moves to discuss scientific methodology. There is general agreement on what good science should look like and the possibility of progressive science can be articulated. However, it is also possible to highlight the conditions for degenerative science and to further link this to a degenerative social totality in which democracy and social progress are undermined. Economics is used as a case study and it is argued that dogmatic notions on progress have proved to be a major stumbling block to objectivity in the discipline. Furthermore, the implications on the real world are serious.
- Full Text:
- Authors: Holl, Ryan
- Date: 2012
- Subjects: Economics -- Methodology , Social epistemology , Knowledge, Theory of -- Science , Objectivity -- Science , Science -- Methodology , Optimism
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1105 , http://hdl.handle.net/10962/d1013393
- Description: This thesis examines the extent to which optimism has a bearing on objectivity in scientific inquiry. It is not, however, a psychological level examination into objectivity. Rather, the discussion focuses on collective attitudes, whether in the form of science or a more general public opinion. In essence, sources of optimism at the fundamental level of scientific inquiry are articulated with a careful attempt to differentiate between attitudes about the subject (methodology) and the object of study. The antithetical thread of optimism versus pessimism is teased out with the use of a joint case study of liberalism and Stalinism. The idea of antithesis, however, is contrasted by the fact that, although mirror image ideologies, these collective attitudes share a common faith in progress (albeit through different social mechanisms). This faith in progress provides the basis for the crux of the thesis as it moves to discuss scientific methodology. There is general agreement on what good science should look like and the possibility of progressive science can be articulated. However, it is also possible to highlight the conditions for degenerative science and to further link this to a degenerative social totality in which democracy and social progress are undermined. Economics is used as a case study and it is argued that dogmatic notions on progress have proved to be a major stumbling block to objectivity in the discipline. Furthermore, the implications on the real world are serious.
- Full Text:
A regulationist approach to South Africa and a critique of inflation targeting
- Authors: Bax, Ryan Michael Jonathan
- Date: 2011
- Subjects: Inflation (Finance) -- South Africa International finance Economic development -- South Africa Sustainable development -- South Africa Inflation targeting -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1036 , http://hdl.handle.net/10962/d1004533
- Description: Since the 1970s, the international economic system has become prone to the volatility and undue effects associated with booms and busts. This forty year period spanning the present has exhibited restrained growth and repressive economic development. Critical changes to the system are presented by the transition from "Fordism" to the post 1970s neoliberal regime and the globalization of world markets. Underpinning this transformation is an ideological shift towards free market capitalism and the adoption of "reduced form" market models. These "reduced form" models appear to hinder economic sustainability as their grounding in economics fails to account for real economic activity. This thesis aims to provide a more holistic perception of sustainability, one that provides a sound basis on which to develop sustainable economic policy. The Regulationist Approach presents the requisite understanding of economic sustainability required within this research. The inclusion of economic, historical and socio-political fields of research proposes a wider understanding of the political economy and sustainability. The application of the Regulation Approach to the South African economy illustrates many problem areas that require attention. The examination found that firstly, aggregate demand in the South African economy was unsustainable due to the debt driven nature of demand under the asset price bubble of the mid to late 2000s. Secondly, aggregate supply also proved unsustainable as government is failing to provide any substantive growth within important sectors of the economy such as education and the provision of general services. Furthermore, the adoption of inflation targeting in South Africa poses a barrier to sustained economic growth as it focuses singularly on price inflation. The "reduced form" model of inflation targeting fails to account for market failures and a number of vital indicators of sustainability most notably, debt levels and asset prices. The inclusion of these indicators, and financial stability more generally, are found to provide a more holistic and sustainable approach to macroeconomic policymaking.
- Full Text:
- Authors: Bax, Ryan Michael Jonathan
- Date: 2011
- Subjects: Inflation (Finance) -- South Africa International finance Economic development -- South Africa Sustainable development -- South Africa Inflation targeting -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1036 , http://hdl.handle.net/10962/d1004533
- Description: Since the 1970s, the international economic system has become prone to the volatility and undue effects associated with booms and busts. This forty year period spanning the present has exhibited restrained growth and repressive economic development. Critical changes to the system are presented by the transition from "Fordism" to the post 1970s neoliberal regime and the globalization of world markets. Underpinning this transformation is an ideological shift towards free market capitalism and the adoption of "reduced form" market models. These "reduced form" models appear to hinder economic sustainability as their grounding in economics fails to account for real economic activity. This thesis aims to provide a more holistic perception of sustainability, one that provides a sound basis on which to develop sustainable economic policy. The Regulationist Approach presents the requisite understanding of economic sustainability required within this research. The inclusion of economic, historical and socio-political fields of research proposes a wider understanding of the political economy and sustainability. The application of the Regulation Approach to the South African economy illustrates many problem areas that require attention. The examination found that firstly, aggregate demand in the South African economy was unsustainable due to the debt driven nature of demand under the asset price bubble of the mid to late 2000s. Secondly, aggregate supply also proved unsustainable as government is failing to provide any substantive growth within important sectors of the economy such as education and the provision of general services. Furthermore, the adoption of inflation targeting in South Africa poses a barrier to sustained economic growth as it focuses singularly on price inflation. The "reduced form" model of inflation targeting fails to account for market failures and a number of vital indicators of sustainability most notably, debt levels and asset prices. The inclusion of these indicators, and financial stability more generally, are found to provide a more holistic and sustainable approach to macroeconomic policymaking.
- Full Text:
Exploring job search and the causes of endogenous unemployment: evidence from Duncan Village, South Africa
- Authors: Duff, Patrick Alexander
- Date: 2009
- Subjects: Unemployment , Unemployment -- Social aspects -- South Africa -- East London -- Duncan Village , Job hunting -- South Africa -- East London -- Duncan Village , Labor market -- South Africa
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: vital:1026
- Description: Despite high rates of unemployment in South Africa, there is little consensus about its origins and solutions to the problem. Job search (how and when people search for work)is one aspect of the unemployment problem. Job search is shown to be a complex process strongly linked to the endogenous structure of the labour market. The flaws in traditional methods (theoretical and measurement) highlight this. Using data from a tailor-made survey in Duncan Village (a peri-urban area in Buffalo City, South Africa) the research examines factors that influence the effectiveness of job search. The results show that mode of search (how people look for work) is used as a signal by employers. Degrees of success are stratified amongst searchers using either ‘word of mouth’, place-to-place or formal modes of search. The thesis provides a method-test to reveal a complex body of evidence that has yet to be fully explored by practitioners in this field.
- Full Text:
- Authors: Duff, Patrick Alexander
- Date: 2009
- Subjects: Unemployment , Unemployment -- Social aspects -- South Africa -- East London -- Duncan Village , Job hunting -- South Africa -- East London -- Duncan Village , Labor market -- South Africa
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: vital:1026
- Description: Despite high rates of unemployment in South Africa, there is little consensus about its origins and solutions to the problem. Job search (how and when people search for work)is one aspect of the unemployment problem. Job search is shown to be a complex process strongly linked to the endogenous structure of the labour market. The flaws in traditional methods (theoretical and measurement) highlight this. Using data from a tailor-made survey in Duncan Village (a peri-urban area in Buffalo City, South Africa) the research examines factors that influence the effectiveness of job search. The results show that mode of search (how people look for work) is used as a signal by employers. Degrees of success are stratified amongst searchers using either ‘word of mouth’, place-to-place or formal modes of search. The thesis provides a method-test to reveal a complex body of evidence that has yet to be fully explored by practitioners in this field.
- Full Text:
An appraisal of basic infrastructural service delivery and community participation at the local level a case study of three municipalities in the Eastern Cape
- Authors: Mamba, Bonginkosi
- Date: 2008
- Subjects: Municipal services -- South Africa -- Eastern Cape Case studies , Housing policy -- South Africa -- Eastern Cape Case studies , Housing -- South Africa -- Eastern Cape Case studies , Local government -- South Africa -- Eastern Cape Case studies
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:958 , http://hdl.handle.net/10962/d1002692 , Municipal services -- South Africa -- Eastern Cape Case studies , Housing policy -- South Africa -- Eastern Cape Case studies , Housing -- South Africa -- Eastern Cape Case studies , Local government -- South Africa -- Eastern Cape Case studies
- Description: Housing provision plays a vital role in meeting basic needs. Dwellings provide the security required for basic functioning and are thus essential for both human development and the alleviation of poverty. This study examines the levels and quality of basic infrastructural service delivery (electricity, water and sanitation) at local government level, focusing on housing. The local government areas studied include Grahamstown Fort Beaufort and Duncan Village. This was done for the purposes of analyzing the effectiveness of the existing housing policy with regard to the adequacy of scale, its developmental logic, implementation and coordination. Justification for basic infrastructural service delivery is based on the Basic Needs Approach [BNA] which forms the cornerstone of the World Bank’s delivery framework. The paper makes use of two methods: firstly, secondary sources are used to provide an impression of the broad policy framework focusing around basic service delivery with housing as the centrepiece. Specific attention is thus given to Integrated Development Plans (IDPs) as this is the level of policy-making responsible for the delivery of these services to communities. Secondly, previously un-analysed data drawn from a household social exclusion survey (2005-2006) conducted in three Eastern Cape municipalities (Buffalo City, Makana and Nkonkobe – representing respectively urban, small town, and rural areas) are evaluated. The data are analysed two ways – graphically and through a regression analysis – to test four hypotheses regarding basic service delivery. Graphical analysis demonstrates that services differ according to housing type and location. It was found that brick houses seem more likely to have better basic services than either shacks or mud dwellings. The results also show that there are inequalities in the provision of certain basic services such as water and sanitation between Duncan Village and Grahamstown. Overall, the results of this study show that government is still faced with major challenges in addressing housing backlogs.
- Full Text:
- Authors: Mamba, Bonginkosi
- Date: 2008
- Subjects: Municipal services -- South Africa -- Eastern Cape Case studies , Housing policy -- South Africa -- Eastern Cape Case studies , Housing -- South Africa -- Eastern Cape Case studies , Local government -- South Africa -- Eastern Cape Case studies
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:958 , http://hdl.handle.net/10962/d1002692 , Municipal services -- South Africa -- Eastern Cape Case studies , Housing policy -- South Africa -- Eastern Cape Case studies , Housing -- South Africa -- Eastern Cape Case studies , Local government -- South Africa -- Eastern Cape Case studies
- Description: Housing provision plays a vital role in meeting basic needs. Dwellings provide the security required for basic functioning and are thus essential for both human development and the alleviation of poverty. This study examines the levels and quality of basic infrastructural service delivery (electricity, water and sanitation) at local government level, focusing on housing. The local government areas studied include Grahamstown Fort Beaufort and Duncan Village. This was done for the purposes of analyzing the effectiveness of the existing housing policy with regard to the adequacy of scale, its developmental logic, implementation and coordination. Justification for basic infrastructural service delivery is based on the Basic Needs Approach [BNA] which forms the cornerstone of the World Bank’s delivery framework. The paper makes use of two methods: firstly, secondary sources are used to provide an impression of the broad policy framework focusing around basic service delivery with housing as the centrepiece. Specific attention is thus given to Integrated Development Plans (IDPs) as this is the level of policy-making responsible for the delivery of these services to communities. Secondly, previously un-analysed data drawn from a household social exclusion survey (2005-2006) conducted in three Eastern Cape municipalities (Buffalo City, Makana and Nkonkobe – representing respectively urban, small town, and rural areas) are evaluated. The data are analysed two ways – graphically and through a regression analysis – to test four hypotheses regarding basic service delivery. Graphical analysis demonstrates that services differ according to housing type and location. It was found that brick houses seem more likely to have better basic services than either shacks or mud dwellings. The results also show that there are inequalities in the provision of certain basic services such as water and sanitation between Duncan Village and Grahamstown. Overall, the results of this study show that government is still faced with major challenges in addressing housing backlogs.
- Full Text:
Does primary resource-based industrialisation offer an escape from underdevelopment?
- Authors: Ali, Fatimah
- Date: 2006
- Subjects: Comparative advantage (International trade) , Exports -- Africa, West , Exports -- Mauritius , Exports -- South Africa , Foreign trade promotion -- Mauritius , International trade , Primary commodities -- Africa , Human capital -- Economic aspects -- Africa , Natural resources -- Africa , Africa -- Commerce
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1018 , http://hdl.handle.net/10962/d1002753 , Comparative advantage (International trade) , Exports -- Africa, West , Exports -- Mauritius , Exports -- South Africa , Foreign trade promotion -- Mauritius , International trade , Primary commodities -- Africa , Human capital -- Economic aspects -- Africa , Natural resources -- Africa , Africa -- Commerce
- Description: It is commonly believed about sub-Saharan Africa (SSA) that the region has a comparative advantage in primary resources as reflected by its high share of primary exports to total exports. In acknowledging the region's comparative advantage, the study tries to put the determinants from the Wood and Mayer (1998, (999) (W-M) Heckscher-Ohlin based model in the context of two relatively diversified countries (South Africa and Mauritius) and two commodity-export-dependent countries of sub-Saharan Africa (Nigeria and Cô̌̌te d'Ivoire). The study finds that the skill and land resource measures used in the W -M (1998, 1999) thesis do not explain why Nigeria, having a similar level of skill per worker ratio to South Africa, has not diversified. Further, Mauritius having relatively the highest skill per land ratio specialises in low-skill textiles and clothing, while South Africa specialises in the more human capital-intensive "other manufactures" group. The other measure, a low land per worker ratio that explains Mauritius' relatively higher share of manufacturing exports, also fails to apply to Nigeria. The thesis thus concludes that the W-M land and skill measures could only be rough proxies in determining comparative advantage in manufacturing exports. However, employing the Dutch disease hypothesis recognises the potential of land abundance as a natural resource, namely minerals in South Africa, oil in Nigeria, and cocoa in Cǒ̌te d'Ivoire. The Dutch disease is a dynamic process of structural economic and political development that will permit an understanding of why natural resource abundant countries do not have a comparative advantage in manufacturing, at least in the short to medium term. The study therefore investigates commodity dependence and the Dutch disease effects to examine whether primary resource- based industrialisation offers an escape from underdevelopment. It establishes that South Africa, a mineral resource rich country, diversified based on a broad mineral-energy-complex (MEC) reinforcing the notion that land abundant countries will first invest in capital- intensive primary resource processing. However, the thesis concludes that in Nigeria and Cǒ̌te d'Ivoire where external shocks are more predominant probably because of single commodity export reliance, the manufacturing sector lags behind more due to resource and spending effects that a natural resource boom generates in these economies.
- Full Text:
- Authors: Ali, Fatimah
- Date: 2006
- Subjects: Comparative advantage (International trade) , Exports -- Africa, West , Exports -- Mauritius , Exports -- South Africa , Foreign trade promotion -- Mauritius , International trade , Primary commodities -- Africa , Human capital -- Economic aspects -- Africa , Natural resources -- Africa , Africa -- Commerce
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1018 , http://hdl.handle.net/10962/d1002753 , Comparative advantage (International trade) , Exports -- Africa, West , Exports -- Mauritius , Exports -- South Africa , Foreign trade promotion -- Mauritius , International trade , Primary commodities -- Africa , Human capital -- Economic aspects -- Africa , Natural resources -- Africa , Africa -- Commerce
- Description: It is commonly believed about sub-Saharan Africa (SSA) that the region has a comparative advantage in primary resources as reflected by its high share of primary exports to total exports. In acknowledging the region's comparative advantage, the study tries to put the determinants from the Wood and Mayer (1998, (999) (W-M) Heckscher-Ohlin based model in the context of two relatively diversified countries (South Africa and Mauritius) and two commodity-export-dependent countries of sub-Saharan Africa (Nigeria and Cô̌̌te d'Ivoire). The study finds that the skill and land resource measures used in the W -M (1998, 1999) thesis do not explain why Nigeria, having a similar level of skill per worker ratio to South Africa, has not diversified. Further, Mauritius having relatively the highest skill per land ratio specialises in low-skill textiles and clothing, while South Africa specialises in the more human capital-intensive "other manufactures" group. The other measure, a low land per worker ratio that explains Mauritius' relatively higher share of manufacturing exports, also fails to apply to Nigeria. The thesis thus concludes that the W-M land and skill measures could only be rough proxies in determining comparative advantage in manufacturing exports. However, employing the Dutch disease hypothesis recognises the potential of land abundance as a natural resource, namely minerals in South Africa, oil in Nigeria, and cocoa in Cǒ̌te d'Ivoire. The Dutch disease is a dynamic process of structural economic and political development that will permit an understanding of why natural resource abundant countries do not have a comparative advantage in manufacturing, at least in the short to medium term. The study therefore investigates commodity dependence and the Dutch disease effects to examine whether primary resource- based industrialisation offers an escape from underdevelopment. It establishes that South Africa, a mineral resource rich country, diversified based on a broad mineral-energy-complex (MEC) reinforcing the notion that land abundant countries will first invest in capital- intensive primary resource processing. However, the thesis concludes that in Nigeria and Cǒ̌te d'Ivoire where external shocks are more predominant probably because of single commodity export reliance, the manufacturing sector lags behind more due to resource and spending effects that a natural resource boom generates in these economies.
- Full Text:
Economic impact of international labour migration on Lesotho's development, 1986-1998: towards an international labour migration policy for the Southern African region
- Authors: Maro, Mkasafari Grace
- Date: 2002
- Subjects: Migrant labor -- South Africa , Migrant labor -- Lesotho , Foreign workers -- South Africa , Miners -- South Africa , Miners -- Labor unions -- South Africa
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:1058 , http://hdl.handle.net/10962/d1007496 , Migrant labor -- South Africa , Migrant labor -- Lesotho , Foreign workers -- South Africa , Miners -- South Africa , Miners -- Labor unions -- South Africa
- Description: The aim of the thesis is to identify the pressures that contributed to the rise in international labour migration in Lesotho, and to investigate how these pressures are impacting upon the modernization process in the country, particularly at a time when employment opportunities are scarce in the southern African region. International labour migration has been used as a development tool throughout history, but especially in the 20th century by developing countries with dual labour markets. Newly independent developing countries with dual labour markets adapted the strategy of import substitution industrialization (lSI), with an emphasis on protecting infant industries and promoting pro-labour policies. In the post-colonial period the international demand for lowskilled workers rose, particularly in the North (developed countries), and in mineral rich countries including the oil exporters and South Africa, and the newly industrialising countries in East Asia. International labour migration to these countries was adapted as an integral development tool by the governments of the lSI countries. Most migrants were low-skilled and temporary workers in the destination countries. Although no multilateral institutional framework existed, usually both the sending and receiving countries adapted unilateral and bilateral migration policies to guarantee the gains from migration. Workers were thus "protected" to varying degrees under such agreements. From the 1970s, the North experienced a slowdown in the growth in demand for unskilled workers. In the 1980s, many lSI countries experienced devastating economic crises that forced them to abandon the lSI policy and adapt the export-led industrialisation (EOI) policy with an emphasis on trade liberalization. The switch from lSI to EOI in developing countries with dual labour markets led to the downsizing of public sector employment, the removal of marketing boards formally used by small-scale agricultural farmers, and the expansion of export processing zones (EPZs). These outcomes resulted in a rise in push internal migration, and international migration from these countries especially to other developing countries. At the same time, since the late 1980s, capital has acquired greatly enhanced mobility at the global level. The adaptation of EOI and the full mobility of capital at the global level altered the institutional structure within which labour migration was governed both nationally, and internationally. At the national level stricter unilateral policies were reinforced by receiving countries for low-skilled labour, while less strict policies applied for skilled labour. These remain in operation in conjunction with the earlier bilateral agreements. At the international level, there remains a lack of policy to regulate international labour migration. Under the current enhanced mobility of capital, international migrants are thus left vulnerable. Lesotho fits this pattern. Faced with a dual economy and an abundance of semi-skilled labour, Lesotho has been a principal supplier of labour to the South Africa's mining industry since its independence. Lesotho's industrial diversification thus mirrors South Africa's industrial diversification. In the lSI phase (1968 - 1987), international labour migration became the most important tool of economic welfare generation in Lesotho. Bilateral agreements were signed in the early 1970s between Lesotho and South Africa to guarantee the gains from migration. Since the late I980s, the mining industry in South Africa began to downsize production and employment. Fewer novice miners from Lesotho were recruited to work in South Africa. The adaptation of the EOI policy in Lesotho in 1987 introduced EPZ industrialization and trade liberalization. Nevertheless, the retrenchment of mine workers from South Africa is occurring at a time when Lesotho is experiencing an employment crisis. The political independence of South Africa in 1994 was accompanied by stricter international migration policies by the new democratic government of South Africa. Most migrant workers in South Africa are thus now faced with a two-door policy (of the earlier bilateral agreements and the amendments to the Aliens Control Act). This system has left migrant workers vulnerable to exploitation by both employers and the law (police) in South Africa. Nevertheless, international migration from Lesotho to South Africa continues to expand, particularly of the new type of migration - semiskilled female workers in the services sector. At the same time, South Africa is also experiencing an employment crisis. The most important policy implications are, firstly, that migration is subject to the same "casualisation" as other work, with the effects made worse by the "statelessness" of migrants, who are most vulnerable to exploitation. Secondly, multilateralism is needed (e.g., SADC) and holistic, multilateral policies are required. It is clear that under the new global division of labour ad hoc policy towards international labour migration is ineffective.
- Full Text:
- Authors: Maro, Mkasafari Grace
- Date: 2002
- Subjects: Migrant labor -- South Africa , Migrant labor -- Lesotho , Foreign workers -- South Africa , Miners -- South Africa , Miners -- Labor unions -- South Africa
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:1058 , http://hdl.handle.net/10962/d1007496 , Migrant labor -- South Africa , Migrant labor -- Lesotho , Foreign workers -- South Africa , Miners -- South Africa , Miners -- Labor unions -- South Africa
- Description: The aim of the thesis is to identify the pressures that contributed to the rise in international labour migration in Lesotho, and to investigate how these pressures are impacting upon the modernization process in the country, particularly at a time when employment opportunities are scarce in the southern African region. International labour migration has been used as a development tool throughout history, but especially in the 20th century by developing countries with dual labour markets. Newly independent developing countries with dual labour markets adapted the strategy of import substitution industrialization (lSI), with an emphasis on protecting infant industries and promoting pro-labour policies. In the post-colonial period the international demand for lowskilled workers rose, particularly in the North (developed countries), and in mineral rich countries including the oil exporters and South Africa, and the newly industrialising countries in East Asia. International labour migration to these countries was adapted as an integral development tool by the governments of the lSI countries. Most migrants were low-skilled and temporary workers in the destination countries. Although no multilateral institutional framework existed, usually both the sending and receiving countries adapted unilateral and bilateral migration policies to guarantee the gains from migration. Workers were thus "protected" to varying degrees under such agreements. From the 1970s, the North experienced a slowdown in the growth in demand for unskilled workers. In the 1980s, many lSI countries experienced devastating economic crises that forced them to abandon the lSI policy and adapt the export-led industrialisation (EOI) policy with an emphasis on trade liberalization. The switch from lSI to EOI in developing countries with dual labour markets led to the downsizing of public sector employment, the removal of marketing boards formally used by small-scale agricultural farmers, and the expansion of export processing zones (EPZs). These outcomes resulted in a rise in push internal migration, and international migration from these countries especially to other developing countries. At the same time, since the late 1980s, capital has acquired greatly enhanced mobility at the global level. The adaptation of EOI and the full mobility of capital at the global level altered the institutional structure within which labour migration was governed both nationally, and internationally. At the national level stricter unilateral policies were reinforced by receiving countries for low-skilled labour, while less strict policies applied for skilled labour. These remain in operation in conjunction with the earlier bilateral agreements. At the international level, there remains a lack of policy to regulate international labour migration. Under the current enhanced mobility of capital, international migrants are thus left vulnerable. Lesotho fits this pattern. Faced with a dual economy and an abundance of semi-skilled labour, Lesotho has been a principal supplier of labour to the South Africa's mining industry since its independence. Lesotho's industrial diversification thus mirrors South Africa's industrial diversification. In the lSI phase (1968 - 1987), international labour migration became the most important tool of economic welfare generation in Lesotho. Bilateral agreements were signed in the early 1970s between Lesotho and South Africa to guarantee the gains from migration. Since the late I980s, the mining industry in South Africa began to downsize production and employment. Fewer novice miners from Lesotho were recruited to work in South Africa. The adaptation of the EOI policy in Lesotho in 1987 introduced EPZ industrialization and trade liberalization. Nevertheless, the retrenchment of mine workers from South Africa is occurring at a time when Lesotho is experiencing an employment crisis. The political independence of South Africa in 1994 was accompanied by stricter international migration policies by the new democratic government of South Africa. Most migrant workers in South Africa are thus now faced with a two-door policy (of the earlier bilateral agreements and the amendments to the Aliens Control Act). This system has left migrant workers vulnerable to exploitation by both employers and the law (police) in South Africa. Nevertheless, international migration from Lesotho to South Africa continues to expand, particularly of the new type of migration - semiskilled female workers in the services sector. At the same time, South Africa is also experiencing an employment crisis. The most important policy implications are, firstly, that migration is subject to the same "casualisation" as other work, with the effects made worse by the "statelessness" of migrants, who are most vulnerable to exploitation. Secondly, multilateralism is needed (e.g., SADC) and holistic, multilateral policies are required. It is clear that under the new global division of labour ad hoc policy towards international labour migration is ineffective.
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