An appraisal and critique of land redistribution approaches in South Africa
- Authors: Phiri, M C S
- Date: 2020
- Subjects: University of the Western Cape. Institute for Poverty, Land and Agrarian Studies , Land reform -- South Africa , Land reform -- Law and legislation -- South Africa , Agriculture and state -- South Africa , Reconstruction and Development Programme (South Africa) , Land reform beneficiaries -- South Africa , South Africa -- Economic conditions -- 1991- , South Africa -- Social conditions -- 1994- , South Africa -- Economic policy , Land tenure -- Law and legislation -- South Africa , Black people -- South Africa -- Economic conditions , Black people -- South Africa -- Social conditions
- Language: English
- Type: Thesis , Masters , MA
- Identifier: http://hdl.handle.net/10962/149161 , vital:38810
- Description: This paper is in response to the PLAAS Land Conference held in February 2019 which aimed at discovering an alternative to how to solve the land question. The conference came at a time where land and agrarian reform re-emerged in South African socio-policy discussion. After twenty-five years of democracy the three land reform programmes have failed to restructure apartheid’s economic segregation, exclusionary land ownership patterns and to restore dignity to poor black South Africans. This study offers a detailed examination of the discourse of South African land reform, specifically the redistribution component with a focus on the land redistribution approaches presented at the PLAAS conference. Ultimately, the study puts forward a synthesized land redistribution approach as a hybrid solution to the land and agrarian crisis.
- Full Text:
- Date Issued: 2020
- Authors: Phiri, M C S
- Date: 2020
- Subjects: University of the Western Cape. Institute for Poverty, Land and Agrarian Studies , Land reform -- South Africa , Land reform -- Law and legislation -- South Africa , Agriculture and state -- South Africa , Reconstruction and Development Programme (South Africa) , Land reform beneficiaries -- South Africa , South Africa -- Economic conditions -- 1991- , South Africa -- Social conditions -- 1994- , South Africa -- Economic policy , Land tenure -- Law and legislation -- South Africa , Black people -- South Africa -- Economic conditions , Black people -- South Africa -- Social conditions
- Language: English
- Type: Thesis , Masters , MA
- Identifier: http://hdl.handle.net/10962/149161 , vital:38810
- Description: This paper is in response to the PLAAS Land Conference held in February 2019 which aimed at discovering an alternative to how to solve the land question. The conference came at a time where land and agrarian reform re-emerged in South African socio-policy discussion. After twenty-five years of democracy the three land reform programmes have failed to restructure apartheid’s economic segregation, exclusionary land ownership patterns and to restore dignity to poor black South Africans. This study offers a detailed examination of the discourse of South African land reform, specifically the redistribution component with a focus on the land redistribution approaches presented at the PLAAS conference. Ultimately, the study puts forward a synthesized land redistribution approach as a hybrid solution to the land and agrarian crisis.
- Full Text:
- Date Issued: 2020
Analysing the role of enterprise and supplier development within Mercedes Benz South Africa in improving their B-BBEE scorecard
- Authors: Silinga, Zukiswa
- Date: 2018
- Subjects: Affirmative action programs -- South Africa , Business enterprises, Black -- South Africa , Blacks -- South Africa -- Economic conditions , Employee empowerment -- South Africa , South Africa -- Economic policy
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10948/23208 , vital:30455
- Description: This research is born out of the realisation of the unique challenges that the Broad-Based Black Economic Empowerment (B-BBEE) policy required from the private sector in South Africa, with Enterprise and Supplier Development (ESD) being one of the components of the B-BBEE’s economic empowerment strategy. Over the years, the B-BBEE’s role has been one of ensuring that economic empowerment of historically disadvantaged individuals was addressed. The role of the B-BBEE policy is described as the framework that targets the reform of the economy, reduction of poverty and inequality and empowerment of those individuals that were historically disadvantaged (Patel & Graham, 2012, p. 194). The automotive industry is South Africa’s most important and largest sector, making a great contribution to the country’s GDP. It is responsible for the employment of many people in the country, including employment in the component manufacturers and tyre industry. With these linkages throughout the economy, the government has identified the automotive industry as a vital growth sector. Government is certain that this sector will address one of the major challenges for economic growth in South Africa, which is unemployment. In the year 2015, the B-BBEE Act was amended with new compliance requirements and this changed the B-BBEE rating of Mercedes Benz South Africa (MBSA), resulting in a reduction of the company’s rating. The changes to the standard, particularly the ownership component, resulted in challenges for multinational companies such as MBSA, and an opportunity to improve the rating was identified in the ESD component sector. If these new compliance requirements were not addressed by MBSA, a predictable reduction in B-BBEE status would occur, resulting in a loss of business with government and provision of government incentives. The objective of this research study was to analyse the role that ESD plays within MBSA in improving their B-BBEE scorecard, as part of its overall B-BBEE strategy. This study was sculpted on the concept that the role of ESD at MBSA is related to (a) preferential procurement, (b) skills transfer, and (c) mentoring and a detailed literature review was conducted for these variables as well as for ESD. In testing the above research objective, the researcher utilised statistical analysis methods to reach a conclusion with regard to the relationship of ESD to these variables. A positivistic research paradigm (quantitative) was selected in order to test the objective by using hypothesis testing. An empirical study was undertaken by means of a survey with a questionnaire utilised as a data collecting tool and distributed using the supplier database of MBSA. The aim of the questionnaire was to validate the outcomes obtained from the theoretical overview. Out of a sample of 116 respondents employed at the suppliers, only 92 responses were received, thus representing a 79% response rate, which is considered acceptable. The key findings of the study indicated that preferential procurement, skills development and mentoring play a significant role in the promotion of ESD. Preferential procurement indicated a stronger association than the other variables, and thus it was recommended that MBSA place importance on this variable. Based on these findings, recommendations were made to the management of MBSA in an effort to improve the ESD component of the B-BBEE score of the company. As a way of addressing some of the challenges automotive manufacturers face, suggestions for future research were made.
- Full Text:
- Date Issued: 2018
- Authors: Silinga, Zukiswa
- Date: 2018
- Subjects: Affirmative action programs -- South Africa , Business enterprises, Black -- South Africa , Blacks -- South Africa -- Economic conditions , Employee empowerment -- South Africa , South Africa -- Economic policy
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10948/23208 , vital:30455
- Description: This research is born out of the realisation of the unique challenges that the Broad-Based Black Economic Empowerment (B-BBEE) policy required from the private sector in South Africa, with Enterprise and Supplier Development (ESD) being one of the components of the B-BBEE’s economic empowerment strategy. Over the years, the B-BBEE’s role has been one of ensuring that economic empowerment of historically disadvantaged individuals was addressed. The role of the B-BBEE policy is described as the framework that targets the reform of the economy, reduction of poverty and inequality and empowerment of those individuals that were historically disadvantaged (Patel & Graham, 2012, p. 194). The automotive industry is South Africa’s most important and largest sector, making a great contribution to the country’s GDP. It is responsible for the employment of many people in the country, including employment in the component manufacturers and tyre industry. With these linkages throughout the economy, the government has identified the automotive industry as a vital growth sector. Government is certain that this sector will address one of the major challenges for economic growth in South Africa, which is unemployment. In the year 2015, the B-BBEE Act was amended with new compliance requirements and this changed the B-BBEE rating of Mercedes Benz South Africa (MBSA), resulting in a reduction of the company’s rating. The changes to the standard, particularly the ownership component, resulted in challenges for multinational companies such as MBSA, and an opportunity to improve the rating was identified in the ESD component sector. If these new compliance requirements were not addressed by MBSA, a predictable reduction in B-BBEE status would occur, resulting in a loss of business with government and provision of government incentives. The objective of this research study was to analyse the role that ESD plays within MBSA in improving their B-BBEE scorecard, as part of its overall B-BBEE strategy. This study was sculpted on the concept that the role of ESD at MBSA is related to (a) preferential procurement, (b) skills transfer, and (c) mentoring and a detailed literature review was conducted for these variables as well as for ESD. In testing the above research objective, the researcher utilised statistical analysis methods to reach a conclusion with regard to the relationship of ESD to these variables. A positivistic research paradigm (quantitative) was selected in order to test the objective by using hypothesis testing. An empirical study was undertaken by means of a survey with a questionnaire utilised as a data collecting tool and distributed using the supplier database of MBSA. The aim of the questionnaire was to validate the outcomes obtained from the theoretical overview. Out of a sample of 116 respondents employed at the suppliers, only 92 responses were received, thus representing a 79% response rate, which is considered acceptable. The key findings of the study indicated that preferential procurement, skills development and mentoring play a significant role in the promotion of ESD. Preferential procurement indicated a stronger association than the other variables, and thus it was recommended that MBSA place importance on this variable. Based on these findings, recommendations were made to the management of MBSA in an effort to improve the ESD component of the B-BBEE score of the company. As a way of addressing some of the challenges automotive manufacturers face, suggestions for future research were made.
- Full Text:
- Date Issued: 2018
Business, state and society in the Western Cape from 1960 to 1990
- Authors: Wood, Robert Jameson
- Date: 2014
- Subjects: Industrial policy -- South Africa. , Apartheid -- South Africa -- 1960-1990 , South Africa -- Economic conditions -- 1960-1990 , South Africa -- Economic policy
- Language: English
- Type: Thesis , Doctoral , DPhil
- Identifier: vital:9125 , http://hdl.handle.net/10948/d1018502
- Description: This research examines the relationship between business, the state and society in South Africa -- particularly the Western Cape -- over the period from 1960 to 1990, viewed against the background of economic conditions in this region, South Africa and the world. Utilising a development history approach, it is based on an extensive study of primary and secondary documentation, supplemented by a panel of in-depth interviews and observation. This study finds that the relationship between business and apartheid incorporated both functional and dysfunctional elements, although over time the benefits diminished and the costs multiplied. The latter, Regulation Theory suggests, is true for any institutional order, but it could be argued that, under apartheid, the particularly fragile and contradictory nature of the institutional arrangement made inevitable crises more rapid and more pronounced. On the one hand, apartheid restricted the economic development of the country, as a result of a range of factors from skills shortages to the visible waste of resources on grand ideological projects and security; as suggested by Resource Curse Theory, minerals windfalls tend to encourage irresponsible behaviour by governments. On the other hand, certain businesses prospered, notably the Afrikaner business sector. All business benefited from the overall growth of the 1950s and 1960s, whilst niche players often did quite well even during the 1980s. Further, the South African businessmen, both English- and Afrikaans-speaking, were skilful in adapting to the difficult conditions brought about by apartheid, and in many cases they prospered. As highlighted by Business Systems Theory, embedded social ties and informal relations may help either support or compensate for formal regulatory pressures. Many of these general trends were particularly accentuated in the Western Cape. The fact that business protests against government policies were often more motivated by concerns as to future property rights and of social disorder, rather than human rights, does indeed raise serious moral issues. However, in helping encourage political reform, they may have made a positive contribution. This study is founded on three related strands of thinking within the political economy tradition, Resource Curse Theory, Regulation Theory and Business Systems Theory, with the emerging common ground between these three bodies of thought being highlighted. As suggested by Resource Curse Theory, non-mineral producing regions tend to be particularly adversely affected in mineral rich countries, and there is little doubt that the region bore all the costs of the collapse of the gold price in the 1980s, and lacked the deeper capital base of the now Gauteng region to cushion the shock. Whilst apartheid may, as we have seen, have served conservative sectors of agriculture and mining quite well for many years, it also involved large costs incurred through social engineering experiments and the increasing demands of the security establishment. Resource Curse Theory suggests that national economies become dangerously dependent on the vagaries of commodities markets, and that the process of institutional design and evolution is hampered by assumptions of easy money which may temporary resolve the negative consequences of any institutional shortcomings. The poor price of gold in much of the 1980s brought about a crisis in the system, and, there is little doubt that this contributed to the demise of the order. As suggested by Resource Curse Theory, the experience of the Western Cape, a region of the country poor in minerals, was often one of inefficient and wasteful state intervention, coupled with increasingly poor performance of non-mineral related industries. Indeed, the effects of the recession of the 1980s were most pronounced in non-mineral producing areas of the country, particularly in the Western Cape. Regulation Theory highlights that no set of institutions and practices is ever totally coherent and functional, but at specific times may work to promote both certain types of economic activity and overall growth. It is wrong to suggest that because an order only works for some players at specific times it is simply dysfunctional or does not work properly at all. However, over time, internal contradictions mount and the benefits diminish. A particular feature of the apartheid order was that some of its core benefits at its height were particularly concentrated on some players (segments of Afrikaner commerce and industry, mining and agriculture), whilst the costs were shared across a wider range of players, with a disproportionate burden being borne by the black majority. A further feature was that the costs were often indirect and spread over many years if the benefits were sometimes immediate: this would include the persistent dysfunctionality of much of the South African education system and the criminal ecosystem that was nurtured through sanctions busting. Internal contradictions and spreading dysfunctionality rarely leads to a conscious and coherent period of institutional redesign, but rather an incoherent, experimental and contested process, such as characterized late apartheid reforms, and, indeed, the post February-1990 negotiation process. Finally, again at a theoretical level, as Business Systems Theory highlights, it is important to take account of the formal and informal ties interlinking firms in different sectors in the region, and firms and government, and the extent to which regions within a particular country may follow very distinct developmental trajectories. The benefits and the costs of the system diffused unevenly in the region, giving many players both a stake in the existing order, and an interest in some or other type of reform.
- Full Text:
- Date Issued: 2014
- Authors: Wood, Robert Jameson
- Date: 2014
- Subjects: Industrial policy -- South Africa. , Apartheid -- South Africa -- 1960-1990 , South Africa -- Economic conditions -- 1960-1990 , South Africa -- Economic policy
- Language: English
- Type: Thesis , Doctoral , DPhil
- Identifier: vital:9125 , http://hdl.handle.net/10948/d1018502
- Description: This research examines the relationship between business, the state and society in South Africa -- particularly the Western Cape -- over the period from 1960 to 1990, viewed against the background of economic conditions in this region, South Africa and the world. Utilising a development history approach, it is based on an extensive study of primary and secondary documentation, supplemented by a panel of in-depth interviews and observation. This study finds that the relationship between business and apartheid incorporated both functional and dysfunctional elements, although over time the benefits diminished and the costs multiplied. The latter, Regulation Theory suggests, is true for any institutional order, but it could be argued that, under apartheid, the particularly fragile and contradictory nature of the institutional arrangement made inevitable crises more rapid and more pronounced. On the one hand, apartheid restricted the economic development of the country, as a result of a range of factors from skills shortages to the visible waste of resources on grand ideological projects and security; as suggested by Resource Curse Theory, minerals windfalls tend to encourage irresponsible behaviour by governments. On the other hand, certain businesses prospered, notably the Afrikaner business sector. All business benefited from the overall growth of the 1950s and 1960s, whilst niche players often did quite well even during the 1980s. Further, the South African businessmen, both English- and Afrikaans-speaking, were skilful in adapting to the difficult conditions brought about by apartheid, and in many cases they prospered. As highlighted by Business Systems Theory, embedded social ties and informal relations may help either support or compensate for formal regulatory pressures. Many of these general trends were particularly accentuated in the Western Cape. The fact that business protests against government policies were often more motivated by concerns as to future property rights and of social disorder, rather than human rights, does indeed raise serious moral issues. However, in helping encourage political reform, they may have made a positive contribution. This study is founded on three related strands of thinking within the political economy tradition, Resource Curse Theory, Regulation Theory and Business Systems Theory, with the emerging common ground between these three bodies of thought being highlighted. As suggested by Resource Curse Theory, non-mineral producing regions tend to be particularly adversely affected in mineral rich countries, and there is little doubt that the region bore all the costs of the collapse of the gold price in the 1980s, and lacked the deeper capital base of the now Gauteng region to cushion the shock. Whilst apartheid may, as we have seen, have served conservative sectors of agriculture and mining quite well for many years, it also involved large costs incurred through social engineering experiments and the increasing demands of the security establishment. Resource Curse Theory suggests that national economies become dangerously dependent on the vagaries of commodities markets, and that the process of institutional design and evolution is hampered by assumptions of easy money which may temporary resolve the negative consequences of any institutional shortcomings. The poor price of gold in much of the 1980s brought about a crisis in the system, and, there is little doubt that this contributed to the demise of the order. As suggested by Resource Curse Theory, the experience of the Western Cape, a region of the country poor in minerals, was often one of inefficient and wasteful state intervention, coupled with increasingly poor performance of non-mineral related industries. Indeed, the effects of the recession of the 1980s were most pronounced in non-mineral producing areas of the country, particularly in the Western Cape. Regulation Theory highlights that no set of institutions and practices is ever totally coherent and functional, but at specific times may work to promote both certain types of economic activity and overall growth. It is wrong to suggest that because an order only works for some players at specific times it is simply dysfunctional or does not work properly at all. However, over time, internal contradictions mount and the benefits diminish. A particular feature of the apartheid order was that some of its core benefits at its height were particularly concentrated on some players (segments of Afrikaner commerce and industry, mining and agriculture), whilst the costs were shared across a wider range of players, with a disproportionate burden being borne by the black majority. A further feature was that the costs were often indirect and spread over many years if the benefits were sometimes immediate: this would include the persistent dysfunctionality of much of the South African education system and the criminal ecosystem that was nurtured through sanctions busting. Internal contradictions and spreading dysfunctionality rarely leads to a conscious and coherent period of institutional redesign, but rather an incoherent, experimental and contested process, such as characterized late apartheid reforms, and, indeed, the post February-1990 negotiation process. Finally, again at a theoretical level, as Business Systems Theory highlights, it is important to take account of the formal and informal ties interlinking firms in different sectors in the region, and firms and government, and the extent to which regions within a particular country may follow very distinct developmental trajectories. The benefits and the costs of the system diffused unevenly in the region, giving many players both a stake in the existing order, and an interest in some or other type of reform.
- Full Text:
- Date Issued: 2014
The functioning of the interbank market and its significance in the transmission of monetary policy
- Authors: De Angelis, Catherine
- Date: 2013-06-11
- Subjects: South African Reserve Bank , Monetary policy -- South Africa , Foreign exchange rates -- South Africa , Money market -- South Africa , Banks and banking -- South Africa , Repurchase agreements -- South Africa , South Africa -- Economic policy , South Africa -- Economic conditions
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1075 , http://hdl.handle.net/10962/d1008054 , South African Reserve Bank , Monetary policy -- South Africa , Foreign exchange rates -- South Africa , Money market -- South Africa , Banks and banking -- South Africa , Repurchase agreements -- South Africa , South Africa -- Economic policy , South Africa -- Economic conditions
- Description: Monetary policy in South African is the primary means by which the authorities can influence activity in the overall economy. The South African Reserve Bank accommodates banks through repo transactions for which they charge the repo rate. The most important market in the transmission of the repo rate to the rest of the economy is the interbank market. As such, a detailed discussion of this market is given. In September 200 I the monetary authorities made certain adjustments to the repo system of accommodation, which included changing the repo rate from a floating rate to a fixed rate that would be administratively determined by the MPC. This was done to address certain weaknesses in the floating rate system. This thesis examines and compares the period before and after the adjustments to the repo system, with the aim of determining whether or not the monetary authorities achieved the goals intended from making this change. The repo rate, prime interbank rate, 3-month NCO rate and the prime lending rate are analysed using the Engle-Granger two variable approach and an ECM model to test for causality. It was found that the monetary authorities did not achieve their intended goals as the relationship between the repo rate and the interbank rate was more significant in the first period. Furthermore, the direction of causality the authorities hoped to achieve by implementing the changes were in fact already in place. As such the adjustments to the system changed the transmission mechanism from the one desired by the authorities to one that was not intended. The conclusions reached by this study show that, in terms of the objectives of the monetary authorities, the previous repo system functioned better. , KMBT_363 , Adobe Acrobat 9.54 Paper Capture Plug-in
- Full Text:
- Authors: De Angelis, Catherine
- Date: 2013-06-11
- Subjects: South African Reserve Bank , Monetary policy -- South Africa , Foreign exchange rates -- South Africa , Money market -- South Africa , Banks and banking -- South Africa , Repurchase agreements -- South Africa , South Africa -- Economic policy , South Africa -- Economic conditions
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1075 , http://hdl.handle.net/10962/d1008054 , South African Reserve Bank , Monetary policy -- South Africa , Foreign exchange rates -- South Africa , Money market -- South Africa , Banks and banking -- South Africa , Repurchase agreements -- South Africa , South Africa -- Economic policy , South Africa -- Economic conditions
- Description: Monetary policy in South African is the primary means by which the authorities can influence activity in the overall economy. The South African Reserve Bank accommodates banks through repo transactions for which they charge the repo rate. The most important market in the transmission of the repo rate to the rest of the economy is the interbank market. As such, a detailed discussion of this market is given. In September 200 I the monetary authorities made certain adjustments to the repo system of accommodation, which included changing the repo rate from a floating rate to a fixed rate that would be administratively determined by the MPC. This was done to address certain weaknesses in the floating rate system. This thesis examines and compares the period before and after the adjustments to the repo system, with the aim of determining whether or not the monetary authorities achieved the goals intended from making this change. The repo rate, prime interbank rate, 3-month NCO rate and the prime lending rate are analysed using the Engle-Granger two variable approach and an ECM model to test for causality. It was found that the monetary authorities did not achieve their intended goals as the relationship between the repo rate and the interbank rate was more significant in the first period. Furthermore, the direction of causality the authorities hoped to achieve by implementing the changes were in fact already in place. As such the adjustments to the system changed the transmission mechanism from the one desired by the authorities to one that was not intended. The conclusions reached by this study show that, in terms of the objectives of the monetary authorities, the previous repo system functioned better. , KMBT_363 , Adobe Acrobat 9.54 Paper Capture Plug-in
- Full Text:
Assessing financial viability of selected urban and rural municipalities in the Eastern Cape
- Authors: Maclean, Sindisile
- Date: 2013
- Subjects: Finance, Public -- South Africa -- Eastern Cape , Municipal government -- South Africa -- Eastern Cape , Sustainable development -- South Africa -- Eastern Cape , Human services -- South Africa -- Eastern Cape , Municipal services -- South Africa -- Eastern Cape , South Africa -- Economic policy , South Africa -- Economic conditions
- Language: English
- Type: Thesis , Doctoral , PhD (in Public Administration)
- Identifier: vital:11661 , http://hdl.handle.net/10353/d1007093 , Finance, Public -- South Africa -- Eastern Cape , Municipal government -- South Africa -- Eastern Cape , Sustainable development -- South Africa -- Eastern Cape , Human services -- South Africa -- Eastern Cape , Municipal services -- South Africa -- Eastern Cape , South Africa -- Economic policy , South Africa -- Economic conditions
- Description: The purpose of the research is to assess the financial viability of selected urban and rural municipalities in the Eastern Cape. Municipalities that are not financially viable and sustainable will always struggle to deliver basic services to communities. Without sound financial management systems, municipalities will be forced to discontinue their operations. Municipalities, particularly small and rural ones, are not self-sufficient and often rely on grants and transfers to satisfy their immediate short-term goal of providing basic services to satisfy the needs of their communities. Therefore, finance is regarded as an overriding and decisive factor for determining the viability of municipalities. The study seeks to investigate the financial viability of selected urban and rural municipalities in the Eastern Cape. Its key research questions are: Are municipalities able to provide sufficient funds to provide a range of services at an acceptable service level? To what extent do municipalities rely on external funding? Do municipalities have revenue collection capacity and revenue policies? The study asserts that most municipalities lack the required financial resources. They depend mainly on transfers from Provincial Government and equitable share and conditional grants from National Government. Section 152 (1) of the Constitution of the Republic of South Africa, Act 8 of 1996, states, amongst other things, that Local Government should ensure the provision of services to communities in a sustainable manner. The constitution further states that a municipality must strive, within its financial and administrative capacity, to achieve its objectives. The Municipal Finance Management Act, Act 56 of 2003, creates a framework for municipalities to borrow money and determine the conditions for short- and long-term borrowing. The Act assigns clear roles and responsibilities to the various role players involved in local government financial management. According to the Act, an annual budget for a municipality may only be funded from realistically anticipated revenues to be collected. As revenue projections in the budget must be realistic, the Municipal Property Rates Act, Act 6 of 2004, facilitates the collection of revenue in municipalities and establishes a uniform property rating system across South Africa. Property tax is the biggest element of local government tax revenue and is central to municipal finance. The Municipal Systems Act, Act 32 of 2000, amongst its objectives, provides for the manner in which municipal powers and functions are exercised as well as establishes a simple framework for the core processes of planning, performance management and resource mobilisation. The Act also provides a framework for public administration and human resource development. Finally, it also empowers the poor and ensures that municipalities put in place service tariffs and credit control policies that take their needs into account. The research contends that, whilst there is legislation and structures to assist and direct municipalities, it has been established that municipalities do not properly collect rates and taxes due to them to augment their revenue. The study has shown nevertheless that metropolitan municipalities have the capacity to collect revenue for municipal services. This is confirmed by their collection rate which ranges between 94 % and 97 %. There is also the culture of non-payment by communities for services rendered by the municipalities. Rural municipalities are exempted from property tax, while other rural municipalities who have an urban component, have to collect. There is also the question of unemployment and poverty. Consequently, municipalities are not self-sufficient and rely on grants and equitable share to survive. As a result of this lack of self-sufficiency, it is difficult to implement service delivery and also difficult to attract skilled personnel. The study has investigated why some municipalities fail to collect revenue and depend on national grants. The study employed both qualitative and quantitative methods. The findings of the quantitative paradigm have been presented in the form of graphs and charts. The major findings include: All municipalities have limited borrowing capacity; have not exceeded their budgets in terms of their spending; small municipalities have households as their main contributor of revenue collected; metropolitan municipalities get the big slice of their revenue from business; small and rural municipalities rely on grants and transfers and are therefore not financially viable; metropolitan municipalities are, to a great extent, financially viable but lack skills and capacity to utilize their resources for effective service delivery; and all municipalities under-spend their budgets. The study, after elaborating on the findings, makes recommendations on how municipalities should become financially viable.
- Full Text:
- Date Issued: 2013
- Authors: Maclean, Sindisile
- Date: 2013
- Subjects: Finance, Public -- South Africa -- Eastern Cape , Municipal government -- South Africa -- Eastern Cape , Sustainable development -- South Africa -- Eastern Cape , Human services -- South Africa -- Eastern Cape , Municipal services -- South Africa -- Eastern Cape , South Africa -- Economic policy , South Africa -- Economic conditions
- Language: English
- Type: Thesis , Doctoral , PhD (in Public Administration)
- Identifier: vital:11661 , http://hdl.handle.net/10353/d1007093 , Finance, Public -- South Africa -- Eastern Cape , Municipal government -- South Africa -- Eastern Cape , Sustainable development -- South Africa -- Eastern Cape , Human services -- South Africa -- Eastern Cape , Municipal services -- South Africa -- Eastern Cape , South Africa -- Economic policy , South Africa -- Economic conditions
- Description: The purpose of the research is to assess the financial viability of selected urban and rural municipalities in the Eastern Cape. Municipalities that are not financially viable and sustainable will always struggle to deliver basic services to communities. Without sound financial management systems, municipalities will be forced to discontinue their operations. Municipalities, particularly small and rural ones, are not self-sufficient and often rely on grants and transfers to satisfy their immediate short-term goal of providing basic services to satisfy the needs of their communities. Therefore, finance is regarded as an overriding and decisive factor for determining the viability of municipalities. The study seeks to investigate the financial viability of selected urban and rural municipalities in the Eastern Cape. Its key research questions are: Are municipalities able to provide sufficient funds to provide a range of services at an acceptable service level? To what extent do municipalities rely on external funding? Do municipalities have revenue collection capacity and revenue policies? The study asserts that most municipalities lack the required financial resources. They depend mainly on transfers from Provincial Government and equitable share and conditional grants from National Government. Section 152 (1) of the Constitution of the Republic of South Africa, Act 8 of 1996, states, amongst other things, that Local Government should ensure the provision of services to communities in a sustainable manner. The constitution further states that a municipality must strive, within its financial and administrative capacity, to achieve its objectives. The Municipal Finance Management Act, Act 56 of 2003, creates a framework for municipalities to borrow money and determine the conditions for short- and long-term borrowing. The Act assigns clear roles and responsibilities to the various role players involved in local government financial management. According to the Act, an annual budget for a municipality may only be funded from realistically anticipated revenues to be collected. As revenue projections in the budget must be realistic, the Municipal Property Rates Act, Act 6 of 2004, facilitates the collection of revenue in municipalities and establishes a uniform property rating system across South Africa. Property tax is the biggest element of local government tax revenue and is central to municipal finance. The Municipal Systems Act, Act 32 of 2000, amongst its objectives, provides for the manner in which municipal powers and functions are exercised as well as establishes a simple framework for the core processes of planning, performance management and resource mobilisation. The Act also provides a framework for public administration and human resource development. Finally, it also empowers the poor and ensures that municipalities put in place service tariffs and credit control policies that take their needs into account. The research contends that, whilst there is legislation and structures to assist and direct municipalities, it has been established that municipalities do not properly collect rates and taxes due to them to augment their revenue. The study has shown nevertheless that metropolitan municipalities have the capacity to collect revenue for municipal services. This is confirmed by their collection rate which ranges between 94 % and 97 %. There is also the culture of non-payment by communities for services rendered by the municipalities. Rural municipalities are exempted from property tax, while other rural municipalities who have an urban component, have to collect. There is also the question of unemployment and poverty. Consequently, municipalities are not self-sufficient and rely on grants and equitable share to survive. As a result of this lack of self-sufficiency, it is difficult to implement service delivery and also difficult to attract skilled personnel. The study has investigated why some municipalities fail to collect revenue and depend on national grants. The study employed both qualitative and quantitative methods. The findings of the quantitative paradigm have been presented in the form of graphs and charts. The major findings include: All municipalities have limited borrowing capacity; have not exceeded their budgets in terms of their spending; small municipalities have households as their main contributor of revenue collected; metropolitan municipalities get the big slice of their revenue from business; small and rural municipalities rely on grants and transfers and are therefore not financially viable; metropolitan municipalities are, to a great extent, financially viable but lack skills and capacity to utilize their resources for effective service delivery; and all municipalities under-spend their budgets. The study, after elaborating on the findings, makes recommendations on how municipalities should become financially viable.
- Full Text:
- Date Issued: 2013
Effects of exchange rate volatility on the stock market: a case study of South Africa
- Authors: Mlambo, Courage
- Date: 2013
- Subjects: Foreign exchange rates -- South Africa , Currency question -- South Africa , Free trade -- South Africa , Capital movements -- South Africa , Cointegration -- South Africa , Investments, Foreign , International trade , Stock exchanges -- South Africa , South Africa -- Economic policy
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11468 , http://hdl.handle.net/10353/d1007125 , Foreign exchange rates -- South Africa , Currency question -- South Africa , Free trade -- South Africa , Capital movements -- South Africa , Cointegration -- South Africa , Investments, Foreign , International trade , Stock exchanges -- South Africa , South Africa -- Economic policy
- Description: This study assessed the effects of currency volatility on the Johannesburg Stock Exchange. An evaluation of literature on exchange rate volatility and stock markets was conducted resulting into specification of an empirical model.The Generalised Autoregressive Conditional Heteroskedascity (1.1) (GARCH) model was used in establishing the relationship between exchange rate volatility and stock market performance. The study employed monthly South African data for the period 2000 – 2010. The data frequency selected ensured an adequate number of observations. A very weak relationship between currency volatility and the stock market was confirmed. The research finding is supported by previous studies. Prime overdraft rate and total mining production were found to have a negative impact on Market capitalisation. Surprisingly, US interest rates were found to have a positive impact on Market capitalisation. This study recommended that, since the South African stock market is not really exposed to the negative effects of currency volatility, government can use exchange rate as a policy tool to attract foreign portfolio investment. The weak relationship between currency volatility and the stock market suggests that the JSE can be marketed as a safe market for foreign investors. However, investors, bankers and portfolio managers still need to be vigilant in regard to the spillovers from the foreign exchange rate into the stock market. Although there is a weak relationship between rand volatility and the stock market in South Africa, this does not necessarily mean that investors and portfolio managers need not monitor the developments between these two variables.
- Full Text:
- Date Issued: 2013
- Authors: Mlambo, Courage
- Date: 2013
- Subjects: Foreign exchange rates -- South Africa , Currency question -- South Africa , Free trade -- South Africa , Capital movements -- South Africa , Cointegration -- South Africa , Investments, Foreign , International trade , Stock exchanges -- South Africa , South Africa -- Economic policy
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11468 , http://hdl.handle.net/10353/d1007125 , Foreign exchange rates -- South Africa , Currency question -- South Africa , Free trade -- South Africa , Capital movements -- South Africa , Cointegration -- South Africa , Investments, Foreign , International trade , Stock exchanges -- South Africa , South Africa -- Economic policy
- Description: This study assessed the effects of currency volatility on the Johannesburg Stock Exchange. An evaluation of literature on exchange rate volatility and stock markets was conducted resulting into specification of an empirical model.The Generalised Autoregressive Conditional Heteroskedascity (1.1) (GARCH) model was used in establishing the relationship between exchange rate volatility and stock market performance. The study employed monthly South African data for the period 2000 – 2010. The data frequency selected ensured an adequate number of observations. A very weak relationship between currency volatility and the stock market was confirmed. The research finding is supported by previous studies. Prime overdraft rate and total mining production were found to have a negative impact on Market capitalisation. Surprisingly, US interest rates were found to have a positive impact on Market capitalisation. This study recommended that, since the South African stock market is not really exposed to the negative effects of currency volatility, government can use exchange rate as a policy tool to attract foreign portfolio investment. The weak relationship between currency volatility and the stock market suggests that the JSE can be marketed as a safe market for foreign investors. However, investors, bankers and portfolio managers still need to be vigilant in regard to the spillovers from the foreign exchange rate into the stock market. Although there is a weak relationship between rand volatility and the stock market in South Africa, this does not necessarily mean that investors and portfolio managers need not monitor the developments between these two variables.
- Full Text:
- Date Issued: 2013
Enhancing financial accountability in the acquisition of goods and services : the case of the Eastern Cape Provincial Department of Safety and Liaison
- Authors: Ndaleni, Phumla
- Date: 2013
- Subjects: Finance, Public -- South Africa -- Eastern Cape , Government spending policy -- South Africa , Finance, Public , South Africa -- Economic policy
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:8342 , http://hdl.handle.net/10948/d1020657
- Description: Supply Chain Management is an aspect of the procurement process which focuses on addressing the needs of both the service provider and the end user. It has a constitutional status which enables it to contribute towards addressing past discriminatory practices. It assists in correcting the imbalances of the past in the procurement of goods and services for government. Section 217(1) of the Constitution of the Republic of South Africa (Act 108 of 1996) specifies that procurement must be fair, equitable, transparent, competitive and cost effective. Accountability is the most critical element in improving financial management in the public sector. The objective of the study was to highlight the need for accountability in Public Finance Management. Additionally, it was intended to assess the respective roles of the various processes involved in the acquisition of goods and services with the goal of enhancing accountability in the Eastern Cape Department of Safety and Liaison in Bhisho. The study was conducted at the Head Office of the Supply Chain Management Section and the district offices with officials who are responsible for the procurement of goods and services. In order to achieve the objectives of the research, a survey was conducted using the qualitative method to ensure greater understanding and reliability. Convenience sampling was applied as it allowed the researcher to select the sample that was convenient. Moreover, it made it easier to reach the available participants. Data was gathered by means of face-to-face interviews for the Head Office respondents and telephonic interviews for the respondents of the district offices. The study concluded with recommendations emanating from the research findings that are meant to assist in improving accountability in Supply Chain Management within the Eastern Cape Department of Safety and Liaison.
- Full Text:
- Date Issued: 2013
- Authors: Ndaleni, Phumla
- Date: 2013
- Subjects: Finance, Public -- South Africa -- Eastern Cape , Government spending policy -- South Africa , Finance, Public , South Africa -- Economic policy
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:8342 , http://hdl.handle.net/10948/d1020657
- Description: Supply Chain Management is an aspect of the procurement process which focuses on addressing the needs of both the service provider and the end user. It has a constitutional status which enables it to contribute towards addressing past discriminatory practices. It assists in correcting the imbalances of the past in the procurement of goods and services for government. Section 217(1) of the Constitution of the Republic of South Africa (Act 108 of 1996) specifies that procurement must be fair, equitable, transparent, competitive and cost effective. Accountability is the most critical element in improving financial management in the public sector. The objective of the study was to highlight the need for accountability in Public Finance Management. Additionally, it was intended to assess the respective roles of the various processes involved in the acquisition of goods and services with the goal of enhancing accountability in the Eastern Cape Department of Safety and Liaison in Bhisho. The study was conducted at the Head Office of the Supply Chain Management Section and the district offices with officials who are responsible for the procurement of goods and services. In order to achieve the objectives of the research, a survey was conducted using the qualitative method to ensure greater understanding and reliability. Convenience sampling was applied as it allowed the researcher to select the sample that was convenient. Moreover, it made it easier to reach the available participants. Data was gathered by means of face-to-face interviews for the Head Office respondents and telephonic interviews for the respondents of the district offices. The study concluded with recommendations emanating from the research findings that are meant to assist in improving accountability in Supply Chain Management within the Eastern Cape Department of Safety and Liaison.
- Full Text:
- Date Issued: 2013
Foreign direct investment and socio-economic development : the South African example
- Authors: Mukosera, Precious Sipho
- Date: 2013
- Subjects: Investments, Foreign -- South Africa , Investments, Foreign -- Government policy -- South Africa , South Africa -- Economic policy , South Africa -- Economic conditions
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:9142 , http://hdl.handle.net/10948/d1018760
- Description: It is widely accepted by governments of many developing countries that Foreign Direct Investment (FDI) is crucial to the socio-economic development of their nations and have developed various policies in an effort to attract FDI, as a result. FDI is a crucial source of technology, capital and skills for developing countries for economic growth that may ultimately lead to poverty reduction, employment creation and modernisation. However, results from many studies have been inconclusive and have failed to find a direct link between the increase of FDI and the associated socio-economic development of recipient nations. South Africa is no exception to this debate as it seeks to turn its back on decades long apartheid, which has entrenched poverty in the majority of its population and exacerbated social tensions. The main socio-economic challenges that South Africa faces include high unemployment, skills shortages, poverty and high inequality, and the 2008/2009 global financial and economic crisis has exacerbated the crisis. Despite these challenges South Africa‘s macro-economic strategies have had a good reputation since 2000. The monetary policy has turned out to be more transparent and predictable, and a sound fiscal policy has sustained its framework. The study analyses the role that FDI plays in the socio-economic development of South Africa since 1995 by focusing on selected case studies: ABSA Bank, General Motors South Africa (GMSA) and the Mining Sector of South Africa. The research concludes that although ABSA Bank has implemented several corporate social responsibility (CSR), and various employee development programmes, there is hardly any evidence to suggest that Barclays Bank‘s takeover of ABSA Bank has positively impacted on these programmes. General Motors South Africa (GMSA), which came into South Africa many decades ago through a Greenfield Investment, has played a positive role in the economy of the Eastern Cape Province as well as that of South Africa, having created jobs directly and indirectly. The company has also designed and implemented various educational, housing as well as health and awareness programmes for its employees and for the communities. Mining companies that operate in South Africa formed partnerships in the communities in which they operate in an effort to improve the lives of people. While these various projects have been a source of employment, they have had a limited impact on the core causes of social problems surrounding the mines. Many of these root causes relate to core business practices of the mining companies, especially employee recruitment, wages and housing. These root causes where witnessed in the Lonmin tragedy and in other strikes that spread throughout the sector in 2012. The study concludes that although FDI does play a role in the socio-economic development of South Africa, especially Greenfield investment, the same argument could not be made on Mergers and acquisitions (M&As). Finally, the South African government needs to play a proactive role in ensuring that foreign companies that invest in the country need to be well aware of the socio-economic needs of South Africa, and be willing to play a positive role in that regard.
- Full Text:
- Date Issued: 2013
- Authors: Mukosera, Precious Sipho
- Date: 2013
- Subjects: Investments, Foreign -- South Africa , Investments, Foreign -- Government policy -- South Africa , South Africa -- Economic policy , South Africa -- Economic conditions
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:9142 , http://hdl.handle.net/10948/d1018760
- Description: It is widely accepted by governments of many developing countries that Foreign Direct Investment (FDI) is crucial to the socio-economic development of their nations and have developed various policies in an effort to attract FDI, as a result. FDI is a crucial source of technology, capital and skills for developing countries for economic growth that may ultimately lead to poverty reduction, employment creation and modernisation. However, results from many studies have been inconclusive and have failed to find a direct link between the increase of FDI and the associated socio-economic development of recipient nations. South Africa is no exception to this debate as it seeks to turn its back on decades long apartheid, which has entrenched poverty in the majority of its population and exacerbated social tensions. The main socio-economic challenges that South Africa faces include high unemployment, skills shortages, poverty and high inequality, and the 2008/2009 global financial and economic crisis has exacerbated the crisis. Despite these challenges South Africa‘s macro-economic strategies have had a good reputation since 2000. The monetary policy has turned out to be more transparent and predictable, and a sound fiscal policy has sustained its framework. The study analyses the role that FDI plays in the socio-economic development of South Africa since 1995 by focusing on selected case studies: ABSA Bank, General Motors South Africa (GMSA) and the Mining Sector of South Africa. The research concludes that although ABSA Bank has implemented several corporate social responsibility (CSR), and various employee development programmes, there is hardly any evidence to suggest that Barclays Bank‘s takeover of ABSA Bank has positively impacted on these programmes. General Motors South Africa (GMSA), which came into South Africa many decades ago through a Greenfield Investment, has played a positive role in the economy of the Eastern Cape Province as well as that of South Africa, having created jobs directly and indirectly. The company has also designed and implemented various educational, housing as well as health and awareness programmes for its employees and for the communities. Mining companies that operate in South Africa formed partnerships in the communities in which they operate in an effort to improve the lives of people. While these various projects have been a source of employment, they have had a limited impact on the core causes of social problems surrounding the mines. Many of these root causes relate to core business practices of the mining companies, especially employee recruitment, wages and housing. These root causes where witnessed in the Lonmin tragedy and in other strikes that spread throughout the sector in 2012. The study concludes that although FDI does play a role in the socio-economic development of South Africa, especially Greenfield investment, the same argument could not be made on Mergers and acquisitions (M&As). Finally, the South African government needs to play a proactive role in ensuring that foreign companies that invest in the country need to be well aware of the socio-economic needs of South Africa, and be willing to play a positive role in that regard.
- Full Text:
- Date Issued: 2013
The second transition : an analysis of the political rhetoric of the ANC and ANCYL
- Authors: Maseko, Thulani Norman
- Date: 2013
- Subjects: African National Congress , African National Congress -- Youth League , Rhetoric -- Political aspects , South Africa -- Economic policy , South Africa -- Politics and government -- 1994-
- Language: English
- Type: Thesis , Masters , MPhil
- Identifier: vital:8343 , http://hdl.handle.net/10948/d1020760
- Description: South Africa achieved its formal democracy through a negotiated settlement in 1994. Formal democracy focuses on liberty, rights and basic freedom such as freedom of speech, and the right to vote, amongst others, while substantive democracy focuses on equality, social justice, and the area of economic rights with a focus on reduction of poverty, unemployment and increased equality. It is within the substantive democratisation theoretical framework, that South Africa’s democratic achievement has not necessarily been as great as its political achievements in constructing a constitutional democracy. This is evident in the continued patterns of racialised inequality and poverty, as well as the increase in service delivery protest action, which can destabilise the democratic success achieved in 1994. The objective of economic development is to create an environment where people can enjoy economic stability, job security and health, and lead productive lives, on one hand. On the other hand, political development seeks to create an environment where people can enjoy peace, rule of law and freedom. Politics and economics therefore go hand in hand to attain wealth benefits for people and create a sufficient level of political stability within a transitioning context. South Africa has made some strides towards getting political stability and a democratic state, but much still needs to be done to reduce poverty, unemployment and inequality. Hence an argument stressing the need for a Second Transition or Economic CODESA has recently entered the sphere of political public debate. This project seeks to deconstruct and explain the discourse of the Second Transition and Economic CODESA. The studies found that centre to this debate are key redistributive issues. Poverty, inequality and unemployment are key substantive challenges that have the potential to undermine political stability if they are not effectively dealt with.
- Full Text:
- Date Issued: 2013
- Authors: Maseko, Thulani Norman
- Date: 2013
- Subjects: African National Congress , African National Congress -- Youth League , Rhetoric -- Political aspects , South Africa -- Economic policy , South Africa -- Politics and government -- 1994-
- Language: English
- Type: Thesis , Masters , MPhil
- Identifier: vital:8343 , http://hdl.handle.net/10948/d1020760
- Description: South Africa achieved its formal democracy through a negotiated settlement in 1994. Formal democracy focuses on liberty, rights and basic freedom such as freedom of speech, and the right to vote, amongst others, while substantive democracy focuses on equality, social justice, and the area of economic rights with a focus on reduction of poverty, unemployment and increased equality. It is within the substantive democratisation theoretical framework, that South Africa’s democratic achievement has not necessarily been as great as its political achievements in constructing a constitutional democracy. This is evident in the continued patterns of racialised inequality and poverty, as well as the increase in service delivery protest action, which can destabilise the democratic success achieved in 1994. The objective of economic development is to create an environment where people can enjoy economic stability, job security and health, and lead productive lives, on one hand. On the other hand, political development seeks to create an environment where people can enjoy peace, rule of law and freedom. Politics and economics therefore go hand in hand to attain wealth benefits for people and create a sufficient level of political stability within a transitioning context. South Africa has made some strides towards getting political stability and a democratic state, but much still needs to be done to reduce poverty, unemployment and inequality. Hence an argument stressing the need for a Second Transition or Economic CODESA has recently entered the sphere of political public debate. This project seeks to deconstruct and explain the discourse of the Second Transition and Economic CODESA. The studies found that centre to this debate are key redistributive issues. Poverty, inequality and unemployment are key substantive challenges that have the potential to undermine political stability if they are not effectively dealt with.
- Full Text:
- Date Issued: 2013
Perceptions of scarce skills in the department of Infrastructure and Engineering : Nelson Mandela Bay Municipality
- Oshoniyi, Oluwaseun Abodunrin
- Authors: Oshoniyi, Oluwaseun Abodunrin
- Date: 2012
- Subjects: Labor supply -- South Africa , Professional employees -- South Africa. , Professional employees -- Supply and demand -- South Africa , Occupational training -- South Africa , South Africa -- Economic policy
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:8488 , http://hdl.handle.net/10948/d1019843
- Description: The scarcity of skills is a global phenomenon, affecting the capacity building, economic growth and development components of all nations. The African continent has been affected by skills shortages, emanating from certain socio-economic factors. This resulted in the ‘brain drain’, emigration and absorption of skilled talent to developed countries, in search of a better standard of living and employment opportunities. The issue of scarce skills in South Africa was identified by the Government in 2006, due to an identified shortage of expertise and proficiencies, required to fill numerous vacant positions within the local government to meet service delivery needs. The identification of skills shortages led to the formulation of macro-economic policies to address the issue of scarce skills and the identification of the most affected professions, which included, inter alia, engineers; technicians; project managers; and architects. Despite the implementation of these policies, underlying factors compound the issue, complicating and limiting remedial efforts. The South African Government is faced with the challenge of providing quality basic services for the public, especially at the local level. The country has since 2010 experienced multiple incidents of service delivery protests, predominantly in the under-developed communities. The Eastern Cape is no exception, as the Nelson Mandela Bay area has experienced protests, concerning poor service delivery, primarily in Walmer Township. The provision of basic services, are of dire necessity to the communities, as the Eastern Cape is one of the poorest provinces in South Africa. The educational system at primary and secondary levels is faced with challenges in the Eastern Cape province. These challenges are the shortage of teachers; poor infrastructure; and teacher absenteeism. This compounds the issue of scarce skills acquisition and development; the volume of skilled, expert and proficient talent available to the municipality, to fill in vacancies, gaps and areas with shortfalls and deficits within the entity, is reduced and minimal, underscoring the depth of the entrenchment of this scarcity of skills issue. The primary focus of the study is to expose the factors contributing to skills shortages and the implications, apropos service delivery, from the municipal workers’ perceptions. The study highlights and describes the factors affecting scarce skills acquisition and development in South Africa, along with providing a background of the Eastern Cape and demonstrating that the shortage of skills, within the Infrastructure and Engineering Department of the Nelson Mandela Bay Municipality, has an impact on the production, efficacy and efficiency of services for communities. The study also emphasises the essentiality of quality leadership and management within the organisation, a pivotal aspect in ensuring the municipality performs at optimal level, meeting organisational goals. This is a critical issue, as the study revealed that sound management and leadership is lacking within the municipality, affecting quality of the service delivery output. The findings of this study further revealed that adequate training and development is lacking in the municipality. This is hampering skills development, outstandingly with regard to technical skills talents, as their training needs are not met.
- Full Text:
- Date Issued: 2012
- Authors: Oshoniyi, Oluwaseun Abodunrin
- Date: 2012
- Subjects: Labor supply -- South Africa , Professional employees -- South Africa. , Professional employees -- Supply and demand -- South Africa , Occupational training -- South Africa , South Africa -- Economic policy
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:8488 , http://hdl.handle.net/10948/d1019843
- Description: The scarcity of skills is a global phenomenon, affecting the capacity building, economic growth and development components of all nations. The African continent has been affected by skills shortages, emanating from certain socio-economic factors. This resulted in the ‘brain drain’, emigration and absorption of skilled talent to developed countries, in search of a better standard of living and employment opportunities. The issue of scarce skills in South Africa was identified by the Government in 2006, due to an identified shortage of expertise and proficiencies, required to fill numerous vacant positions within the local government to meet service delivery needs. The identification of skills shortages led to the formulation of macro-economic policies to address the issue of scarce skills and the identification of the most affected professions, which included, inter alia, engineers; technicians; project managers; and architects. Despite the implementation of these policies, underlying factors compound the issue, complicating and limiting remedial efforts. The South African Government is faced with the challenge of providing quality basic services for the public, especially at the local level. The country has since 2010 experienced multiple incidents of service delivery protests, predominantly in the under-developed communities. The Eastern Cape is no exception, as the Nelson Mandela Bay area has experienced protests, concerning poor service delivery, primarily in Walmer Township. The provision of basic services, are of dire necessity to the communities, as the Eastern Cape is one of the poorest provinces in South Africa. The educational system at primary and secondary levels is faced with challenges in the Eastern Cape province. These challenges are the shortage of teachers; poor infrastructure; and teacher absenteeism. This compounds the issue of scarce skills acquisition and development; the volume of skilled, expert and proficient talent available to the municipality, to fill in vacancies, gaps and areas with shortfalls and deficits within the entity, is reduced and minimal, underscoring the depth of the entrenchment of this scarcity of skills issue. The primary focus of the study is to expose the factors contributing to skills shortages and the implications, apropos service delivery, from the municipal workers’ perceptions. The study highlights and describes the factors affecting scarce skills acquisition and development in South Africa, along with providing a background of the Eastern Cape and demonstrating that the shortage of skills, within the Infrastructure and Engineering Department of the Nelson Mandela Bay Municipality, has an impact on the production, efficacy and efficiency of services for communities. The study also emphasises the essentiality of quality leadership and management within the organisation, a pivotal aspect in ensuring the municipality performs at optimal level, meeting organisational goals. This is a critical issue, as the study revealed that sound management and leadership is lacking within the municipality, affecting quality of the service delivery output. The findings of this study further revealed that adequate training and development is lacking in the municipality. This is hampering skills development, outstandingly with regard to technical skills talents, as their training needs are not met.
- Full Text:
- Date Issued: 2012
Savings behaviour in selected poor townships of the Kouga municipal district
- Authors: Baxter, Chad
- Date: 2012
- Subjects: Saving and investment -- South Africa , South Africa -- Economic policy
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9009 , http://hdl.handle.net/10948/d1014540
- Description: This study considers the nature of savings behaviour amongst low income earners residing in the township areas of Kouga Municipal District. It reflects on the popularity and persistence of informal savings and credit associations, also known as stokvels, in these communities in the face of an increase in the availability of formal savings products. This study argues that despite financial deepening taking place within the South African economy, the popularity and widespread usage of stokvels can largely be attributed to the lack of appropraite formal products available for low income earners. This study does not conclude that the usage of informal savings products results in increased savings behaviours amongst this group, but it does conclude that they provide a suitable mechanism in which savings can take place.
- Full Text:
- Date Issued: 2012
- Authors: Baxter, Chad
- Date: 2012
- Subjects: Saving and investment -- South Africa , South Africa -- Economic policy
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9009 , http://hdl.handle.net/10948/d1014540
- Description: This study considers the nature of savings behaviour amongst low income earners residing in the township areas of Kouga Municipal District. It reflects on the popularity and persistence of informal savings and credit associations, also known as stokvels, in these communities in the face of an increase in the availability of formal savings products. This study argues that despite financial deepening taking place within the South African economy, the popularity and widespread usage of stokvels can largely be attributed to the lack of appropraite formal products available for low income earners. This study does not conclude that the usage of informal savings products results in increased savings behaviours amongst this group, but it does conclude that they provide a suitable mechanism in which savings can take place.
- Full Text:
- Date Issued: 2012
The impact of real exchange rates on economic growth: a case study of South Africa
- Authors: Sibanda, Kin
- Date: 2012
- Subjects: Economic development -- South Africa , Foreign exchange -- South Africa , Interest rates -- South Africa , Money supply -- South Africa , Free trade -- South Africa , Saving and investment -- South Africa , Devaluation of currency -- South Africa , Currency question -- South Africa , South Africa -- Economic policy
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11469 , http://hdl.handle.net/10353/d1007129 , Economic development -- South Africa , Foreign exchange -- South Africa , Interest rates -- South Africa , Money supply -- South Africa , Free trade -- South Africa , Saving and investment -- South Africa , Devaluation of currency -- South Africa , Currency question -- South Africa , South Africa -- Economic policy
- Description: This study examined the impact of real exchange rates on economic growth in South Africa. The study used quarterly time series data for the period of 1994 to 2010. The Johansen cointegration and vector error correction model was used to determine the impact of real exchange on economic growth in South Africa. The explanatory variables in this study were real exchange rates, real interest rates, money supply, trade openness and gross fixed capital formation. Results from this study revealed that real exchange rates, gross fixed capital formation and real interest rates have a positive long run impact on economic growth, while money supply and trade openness have a negative long run impact on economic growth in South Africa. From the regression results, it was noted that undervaluation of the currency significantly hampers growth in the long run, whilst it significantly enhances economic growth in the short run. As such, the policy of depreciating the exchange rates to achieve higher growth rates is only effective in the short run and is not sustainable in the long run. Based on the findings of this study, the researcher recommended that misalignment (overvaluation and undervaluation) of the currency should be avoided at all costs. In addition, the results of the study showed that interest rates also have a significant impact on growth and since interest rates have a bearing on the exchange rate, it was recommended that the current monetary policy in South Africa should be maintained.
- Full Text:
- Date Issued: 2012
- Authors: Sibanda, Kin
- Date: 2012
- Subjects: Economic development -- South Africa , Foreign exchange -- South Africa , Interest rates -- South Africa , Money supply -- South Africa , Free trade -- South Africa , Saving and investment -- South Africa , Devaluation of currency -- South Africa , Currency question -- South Africa , South Africa -- Economic policy
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11469 , http://hdl.handle.net/10353/d1007129 , Economic development -- South Africa , Foreign exchange -- South Africa , Interest rates -- South Africa , Money supply -- South Africa , Free trade -- South Africa , Saving and investment -- South Africa , Devaluation of currency -- South Africa , Currency question -- South Africa , South Africa -- Economic policy
- Description: This study examined the impact of real exchange rates on economic growth in South Africa. The study used quarterly time series data for the period of 1994 to 2010. The Johansen cointegration and vector error correction model was used to determine the impact of real exchange on economic growth in South Africa. The explanatory variables in this study were real exchange rates, real interest rates, money supply, trade openness and gross fixed capital formation. Results from this study revealed that real exchange rates, gross fixed capital formation and real interest rates have a positive long run impact on economic growth, while money supply and trade openness have a negative long run impact on economic growth in South Africa. From the regression results, it was noted that undervaluation of the currency significantly hampers growth in the long run, whilst it significantly enhances economic growth in the short run. As such, the policy of depreciating the exchange rates to achieve higher growth rates is only effective in the short run and is not sustainable in the long run. Based on the findings of this study, the researcher recommended that misalignment (overvaluation and undervaluation) of the currency should be avoided at all costs. In addition, the results of the study showed that interest rates also have a significant impact on growth and since interest rates have a bearing on the exchange rate, it was recommended that the current monetary policy in South Africa should be maintained.
- Full Text:
- Date Issued: 2012
An analysis of the long run comovements between financial system development and mining production in South Africa
- Authors: Ajagbe, Stephen Mayowa
- Date: 2011
- Subjects: Economic development -- South Africa , Econometric models , Mineral industries -- Economic aspects -- South Africa , South Africa -- Economic conditions , South Africa -- Economic policy , Principal components analysis , Cointegration , Stock exchanges -- South Africa , Banks and banking -- South Africa , Foreign exchange rates
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:955 , http://hdl.handle.net/10962/d1002689 , Economic development -- South Africa , Econometric models , Mineral industries -- Economic aspects -- South Africa , South Africa -- Economic conditions , South Africa -- Economic policy , Principal components analysis , Cointegration , Stock exchanges -- South Africa , Banks and banking -- South Africa , Foreign exchange rates
- Description: This study examines the nature of the relationship which exists between mining sector production and development of the financial systems in South Africa. This is particularly important in that the mining sector is considered to be one of the major contributors to the country’s overall economic growth. South Africa is also considered to have a very well developed financial system, to the point where the dominance of one over the other is difficult to identify. Therefore offering insight into the nature of this relationship will assist policy makers in identifying the most effective policies in order to ensure that the developments within the financial systems impact appropriately on the mining sector, and ultimately on the economy. In addition to using the conventional proxies of financial system development, this study utilises the principal component analysis (PCA) to construct an index for the entire financial system. The multivariate cointegration approach as proposed by Johansen (1988) and Johansen and Juselius (1990) was then used to estimate the relationship between the development of the financial systems and the mining sector production for the period 1988-2008. The study reveals mixed results for different measures of financial system development. Those involving the banking system show that a negative relationship exists between total mining production and total credit extended to the private sector, while liquid liabilities has a positive relationship. Similarly, with the stock market system, mixed results are also obtained which reveal a negative relationship between total mining production and stock market capitalisation, while a positive relationship is found with secondary market turnover. Of all the financial system variables, only that of stock market capitalisation was found to be significant. The result with the financial development index reveals that a significant negative relationship exists between financial system development and total mining sector production. Results on the other variables controlled in the estimation show that positive and significant relationships exist between total mining production and both nominal exchange rate and political stability respectively. Increased mining production therefore takes place in periods of appreciating exchange rates, and similarly in the post-apartheid era. On the other hand, negative relationships were found for both trade openness and inflation control variables. The impulse response and variance decomposition analyses showed that total mining production explains the largest amount of shocks within itself. Overall, the study reveals that the mining sector might not have benefited much from the development in the South African financial system.
- Full Text:
- Date Issued: 2011
- Authors: Ajagbe, Stephen Mayowa
- Date: 2011
- Subjects: Economic development -- South Africa , Econometric models , Mineral industries -- Economic aspects -- South Africa , South Africa -- Economic conditions , South Africa -- Economic policy , Principal components analysis , Cointegration , Stock exchanges -- South Africa , Banks and banking -- South Africa , Foreign exchange rates
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:955 , http://hdl.handle.net/10962/d1002689 , Economic development -- South Africa , Econometric models , Mineral industries -- Economic aspects -- South Africa , South Africa -- Economic conditions , South Africa -- Economic policy , Principal components analysis , Cointegration , Stock exchanges -- South Africa , Banks and banking -- South Africa , Foreign exchange rates
- Description: This study examines the nature of the relationship which exists between mining sector production and development of the financial systems in South Africa. This is particularly important in that the mining sector is considered to be one of the major contributors to the country’s overall economic growth. South Africa is also considered to have a very well developed financial system, to the point where the dominance of one over the other is difficult to identify. Therefore offering insight into the nature of this relationship will assist policy makers in identifying the most effective policies in order to ensure that the developments within the financial systems impact appropriately on the mining sector, and ultimately on the economy. In addition to using the conventional proxies of financial system development, this study utilises the principal component analysis (PCA) to construct an index for the entire financial system. The multivariate cointegration approach as proposed by Johansen (1988) and Johansen and Juselius (1990) was then used to estimate the relationship between the development of the financial systems and the mining sector production for the period 1988-2008. The study reveals mixed results for different measures of financial system development. Those involving the banking system show that a negative relationship exists between total mining production and total credit extended to the private sector, while liquid liabilities has a positive relationship. Similarly, with the stock market system, mixed results are also obtained which reveal a negative relationship between total mining production and stock market capitalisation, while a positive relationship is found with secondary market turnover. Of all the financial system variables, only that of stock market capitalisation was found to be significant. The result with the financial development index reveals that a significant negative relationship exists between financial system development and total mining sector production. Results on the other variables controlled in the estimation show that positive and significant relationships exist between total mining production and both nominal exchange rate and political stability respectively. Increased mining production therefore takes place in periods of appreciating exchange rates, and similarly in the post-apartheid era. On the other hand, negative relationships were found for both trade openness and inflation control variables. The impulse response and variance decomposition analyses showed that total mining production explains the largest amount of shocks within itself. Overall, the study reveals that the mining sector might not have benefited much from the development in the South African financial system.
- Full Text:
- Date Issued: 2011
Monetary policy transmission in South Africa: a comparative analysis of credit and exchange rate channels
- Authors: Sebitso, Nathaniel Maemu
- Date: 2011
- Subjects: Monetary policy -- South Africa , Foreign exchange market -- South Africa , Financial crises -- South Africa , South Africa -- Economic conditions , South Africa -- Economic policy , Banks and banking -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1129 , http://hdl.handle.net/10962/d1020851
- Description: This thesis focuses on monetary policy transmission and particularly seeks to examine the impact of credit and exchange rate channels of monetary policy transmission in the South African economy. South Africa's monetary policy has gone through several changes over the past thirty years. In this respect, there is a need for robust empirical evidence on the effects of these channels on inflation and output. The thesis employs a structural vector autoregressive (SVAR) model to identify monetary transmission in South Africa for the period 1994:q4 - 2008:q2. The form of the SVAR used in this thesis is based on the fact that South Africa is a small open economy, which means that external shocks are an important driver of domestic activity. The impulse responses and variance decomposition results show that the repo rate, credit and exchange rate play a role in terms of their impact on inflation and output. The dynamic responses to the identified monetary policy shock are consistent with standard theory and highlight the importance of the interest rate channel. A shock to the interest rate, increasing it by one standard deviation, results in a persistent fall in credit. The response of output is immediate as it falls and bottoms out within the second year. Inflation shows a lagged response, it is positive within the first year as the exchange rate depreciates but in subsequent quarters inflation responds negatively as expected. Inflation falls and reaches a minimum by approximately eight quarters then moves towards baseline. The exchange rate shows delayed appreciation. The shock to the repo interest rate leads to an immediate depreciation of the exchange rate in the first two quarters as output declines, followed by an appreciation in the third and sixth quarter. Due to larger error bounds the impact of the repo rate on the exchange rate could be less effective within the first two years. The impulse responses suggest that monetary policy plays an effective role in stabilising the economy in response to a credit shock, notwithstanding large standard error bounds. Hence, the monetary authority reacts by increasing the repo rate as a result of inflation. The impact of credit on output is positive but is offset to some extent by the rising repo rate. In response to the rand appreciation, the monetary authority reduces the repo rate significantly during the first year with the maximum impact in the second year and then returns to baseline thereafter. Therefore the monetary authority reduces the repo rate, probably to stabilise falling inflation. The result shows that inflation falls as a result of the rand appreciation. A shock to the exchange rate causes a rise in output, though small in magnitude, which is persistent but reaches baseline at the end of the period. This result could reflect the effects of the resultant fall in the repo rate and a persistent rise in credit over the whole period, which tends to increase output. The exchange rate shows an obvious and stronger immediate impact on inflation compared to credit impact on inflation. However, the credit shock has an obvious and stronger impact on output compared to an exchange rate impact on output. However, the large standard error bounds may imply that credit and exchange rate channels are not as effective in the short run. It is important to note that the results are based on the SVAR model estimated with percentage growth rate of the variables. The variance decomposition result is in line with the impulse responses and shows that the exchange rate and credit channels could be important transmission channels in South Africa over the chosen sample period. The exchange rate and credit shocks show a stronger effect on inflation than on output, looking at both the impulse responses and variance decomposition results. The reaction of the repo interest rate to the credit and exchange rate shocks comes out as expected. The repo rate increases as a result of an increase in the credit and falls as a result of the currency appreciation.
- Full Text:
- Date Issued: 2011
- Authors: Sebitso, Nathaniel Maemu
- Date: 2011
- Subjects: Monetary policy -- South Africa , Foreign exchange market -- South Africa , Financial crises -- South Africa , South Africa -- Economic conditions , South Africa -- Economic policy , Banks and banking -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1129 , http://hdl.handle.net/10962/d1020851
- Description: This thesis focuses on monetary policy transmission and particularly seeks to examine the impact of credit and exchange rate channels of monetary policy transmission in the South African economy. South Africa's monetary policy has gone through several changes over the past thirty years. In this respect, there is a need for robust empirical evidence on the effects of these channels on inflation and output. The thesis employs a structural vector autoregressive (SVAR) model to identify monetary transmission in South Africa for the period 1994:q4 - 2008:q2. The form of the SVAR used in this thesis is based on the fact that South Africa is a small open economy, which means that external shocks are an important driver of domestic activity. The impulse responses and variance decomposition results show that the repo rate, credit and exchange rate play a role in terms of their impact on inflation and output. The dynamic responses to the identified monetary policy shock are consistent with standard theory and highlight the importance of the interest rate channel. A shock to the interest rate, increasing it by one standard deviation, results in a persistent fall in credit. The response of output is immediate as it falls and bottoms out within the second year. Inflation shows a lagged response, it is positive within the first year as the exchange rate depreciates but in subsequent quarters inflation responds negatively as expected. Inflation falls and reaches a minimum by approximately eight quarters then moves towards baseline. The exchange rate shows delayed appreciation. The shock to the repo interest rate leads to an immediate depreciation of the exchange rate in the first two quarters as output declines, followed by an appreciation in the third and sixth quarter. Due to larger error bounds the impact of the repo rate on the exchange rate could be less effective within the first two years. The impulse responses suggest that monetary policy plays an effective role in stabilising the economy in response to a credit shock, notwithstanding large standard error bounds. Hence, the monetary authority reacts by increasing the repo rate as a result of inflation. The impact of credit on output is positive but is offset to some extent by the rising repo rate. In response to the rand appreciation, the monetary authority reduces the repo rate significantly during the first year with the maximum impact in the second year and then returns to baseline thereafter. Therefore the monetary authority reduces the repo rate, probably to stabilise falling inflation. The result shows that inflation falls as a result of the rand appreciation. A shock to the exchange rate causes a rise in output, though small in magnitude, which is persistent but reaches baseline at the end of the period. This result could reflect the effects of the resultant fall in the repo rate and a persistent rise in credit over the whole period, which tends to increase output. The exchange rate shows an obvious and stronger immediate impact on inflation compared to credit impact on inflation. However, the credit shock has an obvious and stronger impact on output compared to an exchange rate impact on output. However, the large standard error bounds may imply that credit and exchange rate channels are not as effective in the short run. It is important to note that the results are based on the SVAR model estimated with percentage growth rate of the variables. The variance decomposition result is in line with the impulse responses and shows that the exchange rate and credit channels could be important transmission channels in South Africa over the chosen sample period. The exchange rate and credit shocks show a stronger effect on inflation than on output, looking at both the impulse responses and variance decomposition results. The reaction of the repo interest rate to the credit and exchange rate shocks comes out as expected. The repo rate increases as a result of an increase in the credit and falls as a result of the currency appreciation.
- Full Text:
- Date Issued: 2011
An analysis of exchange rate pass-through to prices in South Africa
- Authors: Karoro, Tapiwa Daniel
- Date: 2008
- Subjects: Foreign exchange rates -- South Africa , Monetary policy -- South Africa , Inflation (Finance) -- South Africa , Prices -- South Africa , Banks and banking -- South Africa , South Africa -- Economic policy
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:953 , http://hdl.handle.net/10962/d1002687 , Foreign exchange rates -- South Africa , Monetary policy -- South Africa , Inflation (Finance) -- South Africa , Prices -- South Africa , Banks and banking -- South Africa , South Africa -- Economic policy
- Description: The fact that South Africa has a floating exchange rate policy as well as an open trade policy leaves the country’s import, producer and consumer prices susceptible to the effects of exchange rate movements. Given the central role that inflation targeting occupies in South Africa’s monetary policy, it becomes necessary to determine the nature of influence of exchange rate changes on domestic prices. To this end, this thesis examines the magnitude and speed of exchange rate pass-through (ERPT) to import, producer and consumer prices in South Africa. Furthermore, it explores whether the direction and size of changes in the exchange rate have different pass-through effects on import prices, that is, whether the exchange rate pass-through is symmetric or asymmetric. The paper uses monthly data covering the period January 1980 to December 2005. In investigating ERPT, two main stages are identified. The initial stage is the transmission of fluctuations in the exchange rate to import prices, while the second-stage entails the pass-through of changes in import prices to producer and consumer prices. The first stage is estimated using the Johansen (1991) and (1995) cointegration techniques and a vector error correction model (VECM). The second stage pass-through is determined by estimating impulse response and variance decomposition functions, as well as conducting block exogeneity Wald tests. The study follows Wickremasinghe and Silvapulle’s (2004) approach in estimating pass-through asymmetry with respect to appreciations and depreciations. In addition, the thesis adapts the analytical framework of Wickremasinghe and Silvapulle (2004) to investigate the pass-through of large and small changes in the exchange rate to import prices. The results suggest that ERPT in South Africa is incomplete but relatively high. Furthermore, ERPT is found to be higher in periods of rand depreciation than appreciation which supports the binding quantity constraint theory. There is also some evidence that pass-through is higher in periods of small changes than large changes in the exchange rate, which supports the menu cost theory when invoices are denominated in the exporters’ currency.
- Full Text:
- Date Issued: 2008
- Authors: Karoro, Tapiwa Daniel
- Date: 2008
- Subjects: Foreign exchange rates -- South Africa , Monetary policy -- South Africa , Inflation (Finance) -- South Africa , Prices -- South Africa , Banks and banking -- South Africa , South Africa -- Economic policy
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:953 , http://hdl.handle.net/10962/d1002687 , Foreign exchange rates -- South Africa , Monetary policy -- South Africa , Inflation (Finance) -- South Africa , Prices -- South Africa , Banks and banking -- South Africa , South Africa -- Economic policy
- Description: The fact that South Africa has a floating exchange rate policy as well as an open trade policy leaves the country’s import, producer and consumer prices susceptible to the effects of exchange rate movements. Given the central role that inflation targeting occupies in South Africa’s monetary policy, it becomes necessary to determine the nature of influence of exchange rate changes on domestic prices. To this end, this thesis examines the magnitude and speed of exchange rate pass-through (ERPT) to import, producer and consumer prices in South Africa. Furthermore, it explores whether the direction and size of changes in the exchange rate have different pass-through effects on import prices, that is, whether the exchange rate pass-through is symmetric or asymmetric. The paper uses monthly data covering the period January 1980 to December 2005. In investigating ERPT, two main stages are identified. The initial stage is the transmission of fluctuations in the exchange rate to import prices, while the second-stage entails the pass-through of changes in import prices to producer and consumer prices. The first stage is estimated using the Johansen (1991) and (1995) cointegration techniques and a vector error correction model (VECM). The second stage pass-through is determined by estimating impulse response and variance decomposition functions, as well as conducting block exogeneity Wald tests. The study follows Wickremasinghe and Silvapulle’s (2004) approach in estimating pass-through asymmetry with respect to appreciations and depreciations. In addition, the thesis adapts the analytical framework of Wickremasinghe and Silvapulle (2004) to investigate the pass-through of large and small changes in the exchange rate to import prices. The results suggest that ERPT in South Africa is incomplete but relatively high. Furthermore, ERPT is found to be higher in periods of rand depreciation than appreciation which supports the binding quantity constraint theory. There is also some evidence that pass-through is higher in periods of small changes than large changes in the exchange rate, which supports the menu cost theory when invoices are denominated in the exporters’ currency.
- Full Text:
- Date Issued: 2008
A review of the actuaries' capitalisation rate from an economic perspective
- Authors: Turner, Jason
- Date: 2006
- Subjects: Macroeconomics , Keynesian economics , Insurance -- Mathematics , South Africa -- Economic conditions -- 1961-1991 , South Africa -- Economic policy
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:992 , http://hdl.handle.net/10962/d1002727 , Macroeconomics , Keynesian economics , Insurance -- Mathematics , South Africa -- Economic conditions -- 1961-1991 , South Africa -- Economic policy
- Description: The purpose of this paper was to evaluate if the macroeconomic change that has occurred in the South African economy since the 1980s has been significant enough to justify a re-examination of the actuaries’ capitalisation rate, due to its formulation processes dependence on the macroeconomic situation. The need for the reexamination arises from the use of the capitalisation in the calculation of lump sum awards where even a small change in the rate can have a significant impact on the value of the final award. In order to address the issue an examination of how Keynesian expectations are formulated and an examination of the Government’s macroeconomic policy was conducted to provide the foundation. On this foundation, a trend analysis of the major groups of financial instruments, as well as the current outlooks for the South African economy, was conducted to determine if there was any indication of a significant change in the macroeconomic conditions. The results of the analysis provided a compelling case for the urgent need for the actuaries’ capitalisation rate to be recalculated to account for the changed economic situation.
- Full Text:
- Date Issued: 2006
- Authors: Turner, Jason
- Date: 2006
- Subjects: Macroeconomics , Keynesian economics , Insurance -- Mathematics , South Africa -- Economic conditions -- 1961-1991 , South Africa -- Economic policy
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:992 , http://hdl.handle.net/10962/d1002727 , Macroeconomics , Keynesian economics , Insurance -- Mathematics , South Africa -- Economic conditions -- 1961-1991 , South Africa -- Economic policy
- Description: The purpose of this paper was to evaluate if the macroeconomic change that has occurred in the South African economy since the 1980s has been significant enough to justify a re-examination of the actuaries’ capitalisation rate, due to its formulation processes dependence on the macroeconomic situation. The need for the reexamination arises from the use of the capitalisation in the calculation of lump sum awards where even a small change in the rate can have a significant impact on the value of the final award. In order to address the issue an examination of how Keynesian expectations are formulated and an examination of the Government’s macroeconomic policy was conducted to provide the foundation. On this foundation, a trend analysis of the major groups of financial instruments, as well as the current outlooks for the South African economy, was conducted to determine if there was any indication of a significant change in the macroeconomic conditions. The results of the analysis provided a compelling case for the urgent need for the actuaries’ capitalisation rate to be recalculated to account for the changed economic situation.
- Full Text:
- Date Issued: 2006
Asset prices and inflation-targeting : implications for South Africa
- Authors: Cosser, Leigh Emma
- Date: 2005
- Subjects: South African Reserve Bank , Monetary policy -- South Africa , Inflation (Finance) -- South Africa , South Africa -- Economic policy , Banks and banking, Central -- South Africa , Anti-inflationary policies , Monetary policy -- Japan , Monetary policy -- United States
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1127 , http://hdl.handle.net/10962/d1020849
- Description: An analysis of the current monetary policy framework in South Africa, which followed the exampie of a number of developed countries by implementing an inflation-targeting regime in 2000, is presented. The primary goal of the framework is to establish price stability, with financial stability a secondary objective. However, as has been evident in other countries, price stability does not guarantee financial stability. Movements in asset prices and the development of asset price bubbles have resulted in a number of episodes of financial instability, which negatively impacted on the growth and development of the countries involved. In addition, the majority of these episodes have occurred in periods of low and stable inflation. The dissertation analyses whether monetary policy would be more efficient if asset price movements were incorporated within the inflation-targeting regime. International experience indicates that early intervention of monetary policy can dampen the negative effects that result when an asset price bubble "bursts". However, if the monetary authorities act too early the effects on the economy can be just as disruptive. The literature is scrutinized to establish what the most effective form of monetary policy should be. The results are then transposed within the South African context to establish how the South African Reserve Bank can best ensure both price and financial stability.
- Full Text:
- Date Issued: 2005
- Authors: Cosser, Leigh Emma
- Date: 2005
- Subjects: South African Reserve Bank , Monetary policy -- South Africa , Inflation (Finance) -- South Africa , South Africa -- Economic policy , Banks and banking, Central -- South Africa , Anti-inflationary policies , Monetary policy -- Japan , Monetary policy -- United States
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1127 , http://hdl.handle.net/10962/d1020849
- Description: An analysis of the current monetary policy framework in South Africa, which followed the exampie of a number of developed countries by implementing an inflation-targeting regime in 2000, is presented. The primary goal of the framework is to establish price stability, with financial stability a secondary objective. However, as has been evident in other countries, price stability does not guarantee financial stability. Movements in asset prices and the development of asset price bubbles have resulted in a number of episodes of financial instability, which negatively impacted on the growth and development of the countries involved. In addition, the majority of these episodes have occurred in periods of low and stable inflation. The dissertation analyses whether monetary policy would be more efficient if asset price movements were incorporated within the inflation-targeting regime. International experience indicates that early intervention of monetary policy can dampen the negative effects that result when an asset price bubble "bursts". However, if the monetary authorities act too early the effects on the economy can be just as disruptive. The literature is scrutinized to establish what the most effective form of monetary policy should be. The results are then transposed within the South African context to establish how the South African Reserve Bank can best ensure both price and financial stability.
- Full Text:
- Date Issued: 2005
Interest rate behaviour in a more transparent South African monetary policy environment
- Authors: Ballim, Goolam Hoosen
- Date: 2005
- Subjects: South African Reserve Bank , Monetary policy -- South Africa , Banks and banking -- South Africa , Interest rates -- South Africa , South Africa -- Economic policy , South Africa -- Economic conditions
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1034 , http://hdl.handle.net/10962/d1004462 , South African Reserve Bank , Monetary policy -- South Africa , Banks and banking -- South Africa , Interest rates -- South Africa , South Africa -- Economic policy , South Africa -- Economic conditions
- Description: South Africa introduced inflation targeting as a monetary policy framework in 2000. This marked a sizable shift in monetary policy management from the previous "eclectic" approach and the explicit focus on M3 money supply before that. The study appraises the effectiveness of monetary policy under this new dispensation. However, the analysis does not centre on inflation outcomes, which can be a measure of effectiveness because they are the overriding objective of the South African Reserve Bank in effect, it is possible to have a target-friendly inflation rate for a length of time despite monetary policy that is ambiguous and encourages unpredictability in market interest rates. However, persistent policy opaqueness can, over time, damage a favourable inflation scenario. For instance, if the public is unsure about the Reserve Bank's desired inflation target, price setting in the wage and goods markets may eventually produce an inflation outcome that is higher than the Bank may have intended. Rather, this study adjudicates the effectiveness of monetary policy within the context of policy transparency, which is an intrinsic part of the inflation targeting framework. The study looks at the extent to which monetary policy transparency has enhanced both the anticipatory nature of the market's response to policy actions and the force that policy has on all interest rates in the financial system, particularly long-term rates. These concepts are important because through the transmission mechanism of monetary policy, the more deft market participants are at anticipating future Reserve Bank policy the greater the Bank's ability to steady the economy before the actual policy event. With the aid of regression models to estimate the response of market rates to policy changes, the results show that there is significant movement in market rates in anticipation of policy action, rather than on the day of the event or the day after. Indeed, the estimates for market rates movement on the day of and even the day after the policy action are generally minute. For instance, the R157 long-term government bond yield changes by a significant 41 basis points in response to a one percentage point change in the Reserve Bank's benchmark repo rate in the period between the last policy action and the day preceding the current action. In contrast, the R157 bond yield changes by an insignificant 2 basis points on the day of the current repo rate change and about 1 basis point the day after the current change. The results point to a robust relationship between policy transparency and the market's ability to foresee rate action. If this were not the case, it is likely that there would be persistent market surprise and, hence, noticeable movement in interest rates on the day of the rate action and perhaps even the day after. Another important observation is that monetary policy impacts significantly on both short- and long-term market rates. Again, certifying the robustness of monetary policy under the inflation targeting regime
- Full Text:
- Date Issued: 2005
- Authors: Ballim, Goolam Hoosen
- Date: 2005
- Subjects: South African Reserve Bank , Monetary policy -- South Africa , Banks and banking -- South Africa , Interest rates -- South Africa , South Africa -- Economic policy , South Africa -- Economic conditions
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1034 , http://hdl.handle.net/10962/d1004462 , South African Reserve Bank , Monetary policy -- South Africa , Banks and banking -- South Africa , Interest rates -- South Africa , South Africa -- Economic policy , South Africa -- Economic conditions
- Description: South Africa introduced inflation targeting as a monetary policy framework in 2000. This marked a sizable shift in monetary policy management from the previous "eclectic" approach and the explicit focus on M3 money supply before that. The study appraises the effectiveness of monetary policy under this new dispensation. However, the analysis does not centre on inflation outcomes, which can be a measure of effectiveness because they are the overriding objective of the South African Reserve Bank in effect, it is possible to have a target-friendly inflation rate for a length of time despite monetary policy that is ambiguous and encourages unpredictability in market interest rates. However, persistent policy opaqueness can, over time, damage a favourable inflation scenario. For instance, if the public is unsure about the Reserve Bank's desired inflation target, price setting in the wage and goods markets may eventually produce an inflation outcome that is higher than the Bank may have intended. Rather, this study adjudicates the effectiveness of monetary policy within the context of policy transparency, which is an intrinsic part of the inflation targeting framework. The study looks at the extent to which monetary policy transparency has enhanced both the anticipatory nature of the market's response to policy actions and the force that policy has on all interest rates in the financial system, particularly long-term rates. These concepts are important because through the transmission mechanism of monetary policy, the more deft market participants are at anticipating future Reserve Bank policy the greater the Bank's ability to steady the economy before the actual policy event. With the aid of regression models to estimate the response of market rates to policy changes, the results show that there is significant movement in market rates in anticipation of policy action, rather than on the day of the event or the day after. Indeed, the estimates for market rates movement on the day of and even the day after the policy action are generally minute. For instance, the R157 long-term government bond yield changes by a significant 41 basis points in response to a one percentage point change in the Reserve Bank's benchmark repo rate in the period between the last policy action and the day preceding the current action. In contrast, the R157 bond yield changes by an insignificant 2 basis points on the day of the current repo rate change and about 1 basis point the day after the current change. The results point to a robust relationship between policy transparency and the market's ability to foresee rate action. If this were not the case, it is likely that there would be persistent market surprise and, hence, noticeable movement in interest rates on the day of the rate action and perhaps even the day after. Another important observation is that monetary policy impacts significantly on both short- and long-term market rates. Again, certifying the robustness of monetary policy under the inflation targeting regime
- Full Text:
- Date Issued: 2005
A critical evaluation of local level responses to mine closure in the Northwestern KwaZulu-Natal coal belt region, South Africa
- Buthelezi, Mbekezeli Simphiwe
- Authors: Buthelezi, Mbekezeli Simphiwe
- Date: 2004
- Subjects: Reconstruction and Development Programme (South Africa) , Deindustrialization -- Economic aspects--South Africa -- KwaZulu-Natal , Coal mines and mining -- South Africa -- KwaZulu-Natal , Economic development -- South Africa -- KwaZulu-Natal , Community development -- South Africa -- KwaZulu-Natal , Rural industries -- South Africa -- KwaZulu-Natal , Rural development -- South Africa , Local government -- South Africa -- KwaZulu-Natal , Labor supply -- South Africa -- KwaZulu-Natal , Rural development projects -- South Africa -- KwaZulu-Natal -- Citizen participation , KwaZulu-Natal (South Africa) -- Social conditions , KwaZulu-Natal (South Africa) -- Economic conditions , KwaZulu-Natal (South Africa) -- Economic policy , South Africa -- Economic policy
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:4822 , http://hdl.handle.net/10962/d1005497 , Reconstruction and Development Programme (South Africa) , Deindustrialization -- Economic aspects--South Africa -- KwaZulu-Natal , Coal mines and mining -- South Africa -- KwaZulu-Natal , Economic development -- South Africa -- KwaZulu-Natal , Community development -- South Africa -- KwaZulu-Natal , Rural industries -- South Africa -- KwaZulu-Natal , Rural development -- South Africa , Local government -- South Africa -- KwaZulu-Natal , Labor supply -- South Africa -- KwaZulu-Natal , Rural development projects -- South Africa -- KwaZulu-Natal -- Citizen participation , KwaZulu-Natal (South Africa) -- Social conditions , KwaZulu-Natal (South Africa) -- Economic conditions , KwaZulu-Natal (South Africa) -- Economic policy , South Africa -- Economic policy
- Description: The de-industrialisation process that was a common feature of North America and Western Europe in the 1970s, through into the 1980s has become an observable feature in African countries and South Africa in particular in the last two decades. Globally, hard hit areas include those associated with the early Industrial Revolution characterised by mass production and the agglomeration of iron and steel, coal and textile industries. General changes in the global market, especially the falling demand for extractive heavy minerals like coal and gold have also affected many countries region and localities. In the case of South Mrica, the previous high economic dependence on mined minerals like coal and gold has resulted in many once prosperous mining regions of the country being reduced to a shadow of their former selves. The worst affected areas in South Africa are those of the Klerksdorp Goldfields in the North West Province and Free State Goldfields, with the latter alone losing 100,000 jobs during the 1990s. This trend has also been acute in the coal-mining industry of the KwaZulu-Natal province since the late 1970s. The firms that had grown in the shadow of the major mining company supplyipg machinery, or who processed the semi-manufactured product are also severely affected by the closing down and restructuring in the mining and iron industries. These industries have often been forced to close down because of a break in the vital connections they developed with these mining industries. Such localised economic crisis has encouraged the universal trend towards the devolution of developmental responsibilities to the local governments and other local stakeholders to - empower them to respond to these changes. This study investigated the local economic initiatives which have been undertaken in the three municipalities of north-western KwaZulu Natal i.e. Utrecht, Dundee and Dannhauser to respond to the closures which have taken place in the mining industry of this region, which used to be among the most prosperous coal mining regions of South Africa. Using their new developmental mandate the local governments, in partnership with the communities and other external interveners have tried to respond to these localised economic crisis and also indirectly to the general poverty and underdevelopment, which characterises this region of KwaZulu-Natal. The effects of apartheid policies, and previous discriminatory rural development policies in, particular, and the Regional Industrial Development policy, which was intensively applied in the 1980s by the pre-1994 government regime, have further compounded the magnitude of the challenge. The lack of capacity in some municipalities has constrained successful implementation of Local Economic Development has led to some communities acting alone to face their situation with or without external intervention.
- Full Text:
- Date Issued: 2004
- Authors: Buthelezi, Mbekezeli Simphiwe
- Date: 2004
- Subjects: Reconstruction and Development Programme (South Africa) , Deindustrialization -- Economic aspects--South Africa -- KwaZulu-Natal , Coal mines and mining -- South Africa -- KwaZulu-Natal , Economic development -- South Africa -- KwaZulu-Natal , Community development -- South Africa -- KwaZulu-Natal , Rural industries -- South Africa -- KwaZulu-Natal , Rural development -- South Africa , Local government -- South Africa -- KwaZulu-Natal , Labor supply -- South Africa -- KwaZulu-Natal , Rural development projects -- South Africa -- KwaZulu-Natal -- Citizen participation , KwaZulu-Natal (South Africa) -- Social conditions , KwaZulu-Natal (South Africa) -- Economic conditions , KwaZulu-Natal (South Africa) -- Economic policy , South Africa -- Economic policy
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:4822 , http://hdl.handle.net/10962/d1005497 , Reconstruction and Development Programme (South Africa) , Deindustrialization -- Economic aspects--South Africa -- KwaZulu-Natal , Coal mines and mining -- South Africa -- KwaZulu-Natal , Economic development -- South Africa -- KwaZulu-Natal , Community development -- South Africa -- KwaZulu-Natal , Rural industries -- South Africa -- KwaZulu-Natal , Rural development -- South Africa , Local government -- South Africa -- KwaZulu-Natal , Labor supply -- South Africa -- KwaZulu-Natal , Rural development projects -- South Africa -- KwaZulu-Natal -- Citizen participation , KwaZulu-Natal (South Africa) -- Social conditions , KwaZulu-Natal (South Africa) -- Economic conditions , KwaZulu-Natal (South Africa) -- Economic policy , South Africa -- Economic policy
- Description: The de-industrialisation process that was a common feature of North America and Western Europe in the 1970s, through into the 1980s has become an observable feature in African countries and South Africa in particular in the last two decades. Globally, hard hit areas include those associated with the early Industrial Revolution characterised by mass production and the agglomeration of iron and steel, coal and textile industries. General changes in the global market, especially the falling demand for extractive heavy minerals like coal and gold have also affected many countries region and localities. In the case of South Mrica, the previous high economic dependence on mined minerals like coal and gold has resulted in many once prosperous mining regions of the country being reduced to a shadow of their former selves. The worst affected areas in South Africa are those of the Klerksdorp Goldfields in the North West Province and Free State Goldfields, with the latter alone losing 100,000 jobs during the 1990s. This trend has also been acute in the coal-mining industry of the KwaZulu-Natal province since the late 1970s. The firms that had grown in the shadow of the major mining company supplyipg machinery, or who processed the semi-manufactured product are also severely affected by the closing down and restructuring in the mining and iron industries. These industries have often been forced to close down because of a break in the vital connections they developed with these mining industries. Such localised economic crisis has encouraged the universal trend towards the devolution of developmental responsibilities to the local governments and other local stakeholders to - empower them to respond to these changes. This study investigated the local economic initiatives which have been undertaken in the three municipalities of north-western KwaZulu Natal i.e. Utrecht, Dundee and Dannhauser to respond to the closures which have taken place in the mining industry of this region, which used to be among the most prosperous coal mining regions of South Africa. Using their new developmental mandate the local governments, in partnership with the communities and other external interveners have tried to respond to these localised economic crisis and also indirectly to the general poverty and underdevelopment, which characterises this region of KwaZulu-Natal. The effects of apartheid policies, and previous discriminatory rural development policies in, particular, and the Regional Industrial Development policy, which was intensively applied in the 1980s by the pre-1994 government regime, have further compounded the magnitude of the challenge. The lack of capacity in some municipalities has constrained successful implementation of Local Economic Development has led to some communities acting alone to face their situation with or without external intervention.
- Full Text:
- Date Issued: 2004
From labour reserve to investment opportunity: economic development planning in the Mbashe Local Municipal area in the Eastern Cape
- Authors: Reynolds, John Hunter
- Date: 2003
- Subjects: Economic development -- South Africa -- Eastern Cape , Community development -- South Africa -- Eastern Cape , South Africa -- Economic policy , Planning -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MSocSc
- Identifier: vital:3353 , http://hdl.handle.net/10962/d1007490 , Economic development -- South Africa -- Eastern Cape , Community development -- South Africa -- Eastern Cape , South Africa -- Economic policy , Planning -- South Africa -- Eastern Cape
- Description: Planning for economic development at the local level has become increasingly important in many countries of the world. South Africa is no exception and has had the local focus entrenched through constitutional provisions for developmental local government. This developmental approach has been intimately linked to, and influenced by, the broader legislative, policy and planning context within which the development challenges of post-Apartheid South Africa have been addressed. It has also been implemented in a context of far-reaching transformation of public institutions aimed, in the final analysis, at the effective functioning of three spheres of government. In this thesis, the Mbashe Local Municipal area is used as a case study for an examination of the linkages between economic development planning at the local, provincial and national levels. It is not a case study in the sense that an in-depth analysis of practice is undertaken; it is used rather as a lens through which the economic development planning activities of the three spheres of government are viewed. Its value as a lens lies in its location in the former Transkei, which is characterised by high levels of unemployment and poverty and low levels of service infrastructure, and in its status as one of the newly demarcated local municipalities in South Africa. Mbashe is a pilot site of the Promotion of Rural Livelihoods Programme, which has been linked to the Eastern Cape Province's Integrated Sustainable Rural Development Programme. It also includes one of the nodes of the Wild Coast Spatial Development Initiative, which has, since 1998, been promoted as a vehicle for economic development in the former Transkei. Research comprised extensive documentary research, individual interviews with key role players in the Mbashe Local Municipality, the Promotion of Rural Livelihoods Programme and the Wild Coast Spatial Development Initiative, and a group interview with members of the Local Economic Development Sub-Committee of the Mbashe Local Municipal Council. An attempt was made to understand the complex layers of policy and planning frameworks that guide planning at the national and provincial levels and within which local level economic development is situated, and to explore the responses that have been forged by agents within the Mbashe area. Key in this endeavour has been the initiatives developed under the guidance of the Mbashe Local Economic Development Sub-Committee. It is argued that the severe resource constraints faced within Mbashe, combined with limited knowledge of and participation in larger planning and resource mobilisation frameworks, lock Local Economic Development within the top-down and investmentled approaches, rather than the more integrated approach that is promoted in terms of legislation and that is required if poverty is to be addressed successfully. The limitations on state fiscal expenditure and the market-led approach to service provision and economic development, implemented in terms of South Africa's macroeconomic framework, combined with limited synchronisation of planning cycles in which integrated development planning at the local level is privileged, leave little scope for endogenous economic development at local level. There is scope for creative engagement with the interlocking local, provincial, national and continental economies by actively shifting resources in support of integrated, endogenous approaches. Such approaches could serve as counter-narratives to the dominance of neoliberalism and allow for the establishment of local economic development practice that addresses the needs of the poor and that builds integrated local economies under the control of democratic institutions. It is only with such a shifting of approach that economic development within Mbashe will shift the structural conditions that lock it into economic dependence and poverty.
- Full Text:
- Date Issued: 2003
- Authors: Reynolds, John Hunter
- Date: 2003
- Subjects: Economic development -- South Africa -- Eastern Cape , Community development -- South Africa -- Eastern Cape , South Africa -- Economic policy , Planning -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MSocSc
- Identifier: vital:3353 , http://hdl.handle.net/10962/d1007490 , Economic development -- South Africa -- Eastern Cape , Community development -- South Africa -- Eastern Cape , South Africa -- Economic policy , Planning -- South Africa -- Eastern Cape
- Description: Planning for economic development at the local level has become increasingly important in many countries of the world. South Africa is no exception and has had the local focus entrenched through constitutional provisions for developmental local government. This developmental approach has been intimately linked to, and influenced by, the broader legislative, policy and planning context within which the development challenges of post-Apartheid South Africa have been addressed. It has also been implemented in a context of far-reaching transformation of public institutions aimed, in the final analysis, at the effective functioning of three spheres of government. In this thesis, the Mbashe Local Municipal area is used as a case study for an examination of the linkages between economic development planning at the local, provincial and national levels. It is not a case study in the sense that an in-depth analysis of practice is undertaken; it is used rather as a lens through which the economic development planning activities of the three spheres of government are viewed. Its value as a lens lies in its location in the former Transkei, which is characterised by high levels of unemployment and poverty and low levels of service infrastructure, and in its status as one of the newly demarcated local municipalities in South Africa. Mbashe is a pilot site of the Promotion of Rural Livelihoods Programme, which has been linked to the Eastern Cape Province's Integrated Sustainable Rural Development Programme. It also includes one of the nodes of the Wild Coast Spatial Development Initiative, which has, since 1998, been promoted as a vehicle for economic development in the former Transkei. Research comprised extensive documentary research, individual interviews with key role players in the Mbashe Local Municipality, the Promotion of Rural Livelihoods Programme and the Wild Coast Spatial Development Initiative, and a group interview with members of the Local Economic Development Sub-Committee of the Mbashe Local Municipal Council. An attempt was made to understand the complex layers of policy and planning frameworks that guide planning at the national and provincial levels and within which local level economic development is situated, and to explore the responses that have been forged by agents within the Mbashe area. Key in this endeavour has been the initiatives developed under the guidance of the Mbashe Local Economic Development Sub-Committee. It is argued that the severe resource constraints faced within Mbashe, combined with limited knowledge of and participation in larger planning and resource mobilisation frameworks, lock Local Economic Development within the top-down and investmentled approaches, rather than the more integrated approach that is promoted in terms of legislation and that is required if poverty is to be addressed successfully. The limitations on state fiscal expenditure and the market-led approach to service provision and economic development, implemented in terms of South Africa's macroeconomic framework, combined with limited synchronisation of planning cycles in which integrated development planning at the local level is privileged, leave little scope for endogenous economic development at local level. There is scope for creative engagement with the interlocking local, provincial, national and continental economies by actively shifting resources in support of integrated, endogenous approaches. Such approaches could serve as counter-narratives to the dominance of neoliberalism and allow for the establishment of local economic development practice that addresses the needs of the poor and that builds integrated local economies under the control of democratic institutions. It is only with such a shifting of approach that economic development within Mbashe will shift the structural conditions that lock it into economic dependence and poverty.
- Full Text:
- Date Issued: 2003