The primacy of illicit financial flows (IFFs) in developing countries: a comparative study analysis of South Africa and China
- Authors: Mahlaba, Asande Cikizwa
- Date: 2020
- Subjects: Money -- Developing countries , Transfer pricing -- South Africa , Developing countries -- Economic conditions , Tax evasion -- China , Tax evasion -- South Africa
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/147435 , vital:38636
- Description: The main objective of this study was to question and investigate the primacy of illicit financial flows (IFFs) in developing countries, specifically focused on two countries namely China and South Africa. Africa is estimated to have lost approximately $1 trillion to IFFs over the last 50 years, which exceeds the financial assistance that these nations needed over the same period. For years. Africa has been the feeding ground for exploitation and resource plunder, and the narrative has always been Africa is underdeveloped because of this crime. Although this statement holds true in most African countries, what this paper seeks to do is to question whether capital flight, IFFs and more specifically tax evasion and tax haven activity are the reason for the deterioration of African economies or are IFFs perpetuated by economies with unsustainable growth paths. IFFs are an important factor when it comes to obstacles of economic growth. But are they the cause or effect? A very strong case can be made that they are the latter however, it is beyond the scope of this article to resolve this question. Its purpose is merely to assert that the question is a valid one and that presuming the answer could divert attention from the real question of economic development. This study contextualized the way in which IFFs are currently viewed in the world economic system according to the two approaches to development finance, and discussed modern monetary theory as an extension off these theories. Due to the nature of the study, the methodology employed is a case study approach between China and South Africa by means of extensive numerical and document analysis. Upon conducting this analysis on the primacy of illicit financial flows in developing countries there was difficulty in measuring IFFs. The reason for this is because IFFs have a range of estimates so it was very difficult to produce precise and accurate results. The key findings of this paper were that there seems to be some kind of parallel between developing countries with large volumes of illicit financial outflows, and a dependency these countries have on external debt. This means it seems that weak economies, that are highly dependent on external debt and have large amounts of this debt, seem to have the largest volumes of illicit financial outflows. Weak regulation, high levels of debt and liberalised trade markets seem to be contributing factors to the degree to which companies evade taxes and partake in tax haven activity in these regions. Another key finding was that in 2012, despite China being ranked number one in the the countries which have the largest amounts of outflows on average, it still managed to achieve large amounts growth in the last 20 years. Indicating that there is some form of indication that IFFs could be viewed as symptomatic of weak financial systems and weak economies, instead of IFFs being the core of the problem.
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Investment-grade or “junk” status: do sovereign credit ratings really matter?
- Authors: Slabbert, Adriaan
- Date: 2019
- Subjects: Credit ratings , Rating agencies (Finance) , Developing countries -- Economic conditions , Developing countries -- Foreign economic relations
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/97067 , vital:31393
- Description: Credit ratings play a well-established part in modern financial markets, reducing asymmetric information between investors and borrowers. In particular, sovereign credit ratings allow the world’s lesser-known economies to access a wider pool of international capital, while simultaneously allowing international investors to access a more diverse set of investment opportunities. The importance of sovereign credit ratings in terms of the cost of government debt in developing nations was observed. The relationship between sovereign credit ratings and average bond spreads over the time period spanning 2006 – 2017 was examined in 25 emerging economies. Regression analysis in the form of fixed-effects and random-effects models was used to determine the impact of changes in sovereign credit ratings on the cost of sovereign debt, controlling for certain macroeconomic factors. It was concluded that sovereign credit ratings are relevant in helping to determine the cost of sovereign debt for developing economies, but that they are not the only factor considered by global markets. The thesis therefore recommended further research into the factors affecting the cost of sovereign debt as well as further refinements to the methodologies that ratings agencies use to assign ratings.
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Ties that bind: a critical discourse analysis of the coverage of the Millennium Development Goals in the Mail and Guardian
- Authors: Marquis, Danika Ewen
- Date: 2009
- Subjects: Mail & Guardian , South African newspapers -- History -- 21st century , Journalism -- South Africa -- 21st century , Press -- South Africa -- 21st century , Developing countries -- Social conditions , Developing countries -- Economic conditions
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:3536 , http://hdl.handle.net/10962/d1015462
- Description: This study analysed the representation of the Millennium Development Goals (MDGs) in the Mail and Guardian from 2000 to 2007. It drew on perspectives from cultural studies, the constructionist approach to representation and the sociology of news production. Through the use of the quantitative and qualitative research methods, content analysis and critical discourse analysis, this study established first, that few significant changes have occurred within the newspaper's coverage of the MDGs during this period, and second, that the people most affected by the MDGs and affiliated programmes are seriously under-represented and that the manner of representation marginalises and subordinates them.
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The theory of economic underdevelopment and its applicability to the Rhodesian economy
- Authors: Clarke, Duncan G, 1948-
- Date: 1969
- Subjects: Zimbabwe -- Economic conditions , Economic development -- Zimbabwe , Developing countries -- Economic conditions
- Language: English
- Type: Thesis , Honours , BCom
- Identifier: vital:1114 , http://hdl.handle.net/10962/d1014691
- Description: According to the canons of conventional economic philosophy the process of economic interpretation should be value neutral and strictly fall within the bounds of normative science. This approach is concerned not with goal setting but only with the technical possibilities of alternative means of successful tactics in a given overall strategy. It is the author's thesis that such premises patently ignore the fundamental truths of development problems, and that there exists a genuine need to bridge the gap that demarcates theory from practicality and truth from illusion. To seek "development" implies a challenge to the "status quo" of menial existence and perpetual servitude to the inhospitable forces of ones own environment. This attitude is in itself a value judgement, and in underdeveloped societies it is more than a mere academic quibble. Accordingly, this paper not only implicitly assumes "development" to be a desirable goal but also that it is necessary, and the objective of this study of an underdeveloped community shall be to examine the theoretical relevance, or otherwise, of general and partial theories of underdevelopment against the quantitative and qualitative evidence of the course of events that have in the past, and are likely in the future, to influence the development of the "Rhodesian economy".
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