The effect of sectoral foreign direct investment on sectoral growth and sectoral employment in South Africa
- Authors: Paul, Bernice Nicole
- Date: 2021-04
- Subjects: Investments, Foreign -- South Africa , South Africa -- Economic conditions -- 1991- , South Africa -- Economic policy , Gross domestic product -- South Africa , UNCTAD-ICTSD Project on IPRs and Sustainable Development , Unemployment -- South Africa
- Language: English
- Type: thesis , text , Master , MCom
- Identifier: http://hdl.handle.net/10962/177964 , vital:42894
- Description: Over several decades past, developing countries have received increased amounts of Foreign Direct Investment (FDI). This form of investment has been welcomed because of the perceived benefits attached to it. FDI is seen as an important driver of economic development for many nations. For South Africa specifically, GDP growth rates have remained less than required, unemployment rates have reached staggering levels, poverty and inequality levels are increasing and the list goes on. Considering the perceived benefits of FDI, one may argue that FDI can play a crucial role in reducing the mentioned challenges facing the nation, however, only if directed to initiatives contributing to growth and employment. The 2015 Investment Policy Framework for Sustainable Development includes an action menu promoting investment in sectors relating to the achievement of the Sustainable Development Goals (SDGs). Therefore, this study is aimed at investigating the relationship between sector FDI and sector growth in addition to investigating the effect of sector FDI on sector employment over the period 2000Q1 to 2016Q4 for six of South Africa’s economic sectors. The reason for such a study is based on the premise that developing nations such as South Africa lack sound trade and industrial policies favorable to foreign investors. This then leads to the nation failing to attract higher volumes of FDI which could be used to address structural challenges facing the country. It is therefore important to identify sectors in which FDI has resulted in growth and employment so that when policies are considered, the right FDI is targeted. A comprehensive review of existing theoretical and empirical literature showed that FDI does result in economic growth for developed and developing countries, although FDI crowds out domestic investment in the short run. Literature on the effect of FDI on employment showed diverse effects. Some studies found FDI to increase employment overall, other studies found FDI to increase employment only during periods of restructuring and some studies found FDI to result in job losses. For South African sectors, the present study finds that the financial services sector receives the highest volume of South African FDI, followed by the mining and quarrying sector and the manufacturing, however, FDI in all six sectors under study is associated with increased growth and employment. This finding suggests that the financial services sector has received increased volumes of FDI as a result of financialization of the South African economy. It is this increased FDI in the financial services sector that is directed to income redistribution from the real sector to the finance sector. This study employed econometric techniques and methods of analysis to investigate the relationship between sector FDI and sector growth, and the effect of sector FDI on sector employment. Panel cointegration tests were conducted for all six sectors included in the study to establish if long run equilibrium relationships exist among integrated variables. The Johansen-Fisher panel cointegration test revealed that there is evidence of cointegration in four of the six sectors. Since cointegration was established, the study proceeded to perform the Dumitrescu-Hurlin panel causality analysis and estimate a Panel Vector Error Correction Model (VECM). Results from the causality analysis found a unidirectional causality relationship between FDI and GDP growth, while the panel VECM found FDI to have a significant effect on growth in all sectors. The Seemingly Unrelated Regression (SUR) model employed to investigate the effect of FDI on employment found FDI to have an insignificant effect on employment in all sectors included, although the signs of the coefficients suggest that FDI is associated with increased employment and rising wages is associated with increased productivity growth. Since this study finds that FDI is associated with increased GDP growth in all six sectors under study, policy makers should devise strategies to attract FDI in sectors such as the transportation, storage and communication sector and the electricity, gas and water sector as FDI in these sectors are associated with increased growth however, they receive very low levels of FDI. There are a number of reasons for this, therefore, government institutions and policy makers should investigate the reasons for these low levels of FDI inflows into these sectors so that they can devise further strategies to address these reasons and perhaps attract higher levels of FDI into these sectors. Spillover benefits play a major role in host nations participating in FDI therefore, prior to entering into bilateral treaty agreements, policy makers should ensure that foreign investors are compelled to create jobs, offer training and qualifications etc. through their investments so that some of the SDGs can be achieved. Additionally, this study finds a positive, statistically insignificant relationship between FDI and employment. FDI may not have a significant relationship on employment due to jobless growth and capital-intensive growth rather than labor-intensive growth. Such a situation calls for government intervention. Skills shortage is a rising problem in South Africa; therefore, investors choose to employ advanced technologies rather than people. Under such circumstances, governments are encouraged to invest resources into skills development so that human capital are not completely replaced by technology. , Thesis (MCom) -- Faculty of Commerce, Economics and Economic History, 2021
- Full Text:
- Authors: Paul, Bernice Nicole
- Date: 2021-04
- Subjects: Investments, Foreign -- South Africa , South Africa -- Economic conditions -- 1991- , South Africa -- Economic policy , Gross domestic product -- South Africa , UNCTAD-ICTSD Project on IPRs and Sustainable Development , Unemployment -- South Africa
- Language: English
- Type: thesis , text , Master , MCom
- Identifier: http://hdl.handle.net/10962/177964 , vital:42894
- Description: Over several decades past, developing countries have received increased amounts of Foreign Direct Investment (FDI). This form of investment has been welcomed because of the perceived benefits attached to it. FDI is seen as an important driver of economic development for many nations. For South Africa specifically, GDP growth rates have remained less than required, unemployment rates have reached staggering levels, poverty and inequality levels are increasing and the list goes on. Considering the perceived benefits of FDI, one may argue that FDI can play a crucial role in reducing the mentioned challenges facing the nation, however, only if directed to initiatives contributing to growth and employment. The 2015 Investment Policy Framework for Sustainable Development includes an action menu promoting investment in sectors relating to the achievement of the Sustainable Development Goals (SDGs). Therefore, this study is aimed at investigating the relationship between sector FDI and sector growth in addition to investigating the effect of sector FDI on sector employment over the period 2000Q1 to 2016Q4 for six of South Africa’s economic sectors. The reason for such a study is based on the premise that developing nations such as South Africa lack sound trade and industrial policies favorable to foreign investors. This then leads to the nation failing to attract higher volumes of FDI which could be used to address structural challenges facing the country. It is therefore important to identify sectors in which FDI has resulted in growth and employment so that when policies are considered, the right FDI is targeted. A comprehensive review of existing theoretical and empirical literature showed that FDI does result in economic growth for developed and developing countries, although FDI crowds out domestic investment in the short run. Literature on the effect of FDI on employment showed diverse effects. Some studies found FDI to increase employment overall, other studies found FDI to increase employment only during periods of restructuring and some studies found FDI to result in job losses. For South African sectors, the present study finds that the financial services sector receives the highest volume of South African FDI, followed by the mining and quarrying sector and the manufacturing, however, FDI in all six sectors under study is associated with increased growth and employment. This finding suggests that the financial services sector has received increased volumes of FDI as a result of financialization of the South African economy. It is this increased FDI in the financial services sector that is directed to income redistribution from the real sector to the finance sector. This study employed econometric techniques and methods of analysis to investigate the relationship between sector FDI and sector growth, and the effect of sector FDI on sector employment. Panel cointegration tests were conducted for all six sectors included in the study to establish if long run equilibrium relationships exist among integrated variables. The Johansen-Fisher panel cointegration test revealed that there is evidence of cointegration in four of the six sectors. Since cointegration was established, the study proceeded to perform the Dumitrescu-Hurlin panel causality analysis and estimate a Panel Vector Error Correction Model (VECM). Results from the causality analysis found a unidirectional causality relationship between FDI and GDP growth, while the panel VECM found FDI to have a significant effect on growth in all sectors. The Seemingly Unrelated Regression (SUR) model employed to investigate the effect of FDI on employment found FDI to have an insignificant effect on employment in all sectors included, although the signs of the coefficients suggest that FDI is associated with increased employment and rising wages is associated with increased productivity growth. Since this study finds that FDI is associated with increased GDP growth in all six sectors under study, policy makers should devise strategies to attract FDI in sectors such as the transportation, storage and communication sector and the electricity, gas and water sector as FDI in these sectors are associated with increased growth however, they receive very low levels of FDI. There are a number of reasons for this, therefore, government institutions and policy makers should investigate the reasons for these low levels of FDI inflows into these sectors so that they can devise further strategies to address these reasons and perhaps attract higher levels of FDI into these sectors. Spillover benefits play a major role in host nations participating in FDI therefore, prior to entering into bilateral treaty agreements, policy makers should ensure that foreign investors are compelled to create jobs, offer training and qualifications etc. through their investments so that some of the SDGs can be achieved. Additionally, this study finds a positive, statistically insignificant relationship between FDI and employment. FDI may not have a significant relationship on employment due to jobless growth and capital-intensive growth rather than labor-intensive growth. Such a situation calls for government intervention. Skills shortage is a rising problem in South Africa; therefore, investors choose to employ advanced technologies rather than people. Under such circumstances, governments are encouraged to invest resources into skills development so that human capital are not completely replaced by technology. , Thesis (MCom) -- Faculty of Commerce, Economics and Economic History, 2021
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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:
- 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.
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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
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- 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
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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:
- 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.
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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:
- 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.
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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.
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- 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:
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:
- 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:
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:
- 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:
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:
- 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:
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:
- 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:
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:
- 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:
South Africa within SADC : hegemon or partner?
- Authors: Molefi, Tebogo Shadrack
- Date: 2003
- Subjects: Southern African Development Community , Political stability -- Africa, Southern , South Africa -- Economic conditions , South Africa -- Foreign relations -- Africa , South Africa -- Economic policy
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:2866 , http://hdl.handle.net/10962/d1007674 , Southern African Development Community , Political stability -- Africa, Southern , South Africa -- Economic conditions , South Africa -- Foreign relations -- Africa , South Africa -- Economic policy
- Description: This study attempts to make a contribution to the debate on the role of South Africa within Southern African Development Community. An attempt is made to analyse this role within the context of regional integration debate. This role has been conceptualised within the dichotomies of hegemon versus partner. The study argues that South Africa is a hegemon in the region of SADC, and that given its overarching economic dominance and it has the potential of establishing its hegemony in the region. It maintains that there are several factors, which could facilitate South Africa's hegemonic dominance such as in military, technology and manufacturing sector. It concludes by arguing that given the changing geopolitical factors both within the region and the globe impedes South Africa from firmly expressing this hegemonic dominance. Furthermore, South Africa's pioneering role in the struggle to change the status quo globally in favour of the Southern states is another crucial factor, which imposes limitations on its hegemonic intentions regionally.
- Full Text:
- Authors: Molefi, Tebogo Shadrack
- Date: 2003
- Subjects: Southern African Development Community , Political stability -- Africa, Southern , South Africa -- Economic conditions , South Africa -- Foreign relations -- Africa , South Africa -- Economic policy
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:2866 , http://hdl.handle.net/10962/d1007674 , Southern African Development Community , Political stability -- Africa, Southern , South Africa -- Economic conditions , South Africa -- Foreign relations -- Africa , South Africa -- Economic policy
- Description: This study attempts to make a contribution to the debate on the role of South Africa within Southern African Development Community. An attempt is made to analyse this role within the context of regional integration debate. This role has been conceptualised within the dichotomies of hegemon versus partner. The study argues that South Africa is a hegemon in the region of SADC, and that given its overarching economic dominance and it has the potential of establishing its hegemony in the region. It maintains that there are several factors, which could facilitate South Africa's hegemonic dominance such as in military, technology and manufacturing sector. It concludes by arguing that given the changing geopolitical factors both within the region and the globe impedes South Africa from firmly expressing this hegemonic dominance. Furthermore, South Africa's pioneering role in the struggle to change the status quo globally in favour of the Southern states is another crucial factor, which imposes limitations on its hegemonic intentions regionally.
- Full Text:
An evaluation of IMF structural adjustment programmes : lessons for South Africa
- Authors: Berolsky, Nuno Goncalo
- Date: 2000
- Subjects: International Monetary Fund , International Monetary Fund -- Developing countries , Structural adjustment (Economic policy) -- Developing countries , South Africa -- Economic policy
- Language: English
- Type: Thesis , Masters , MSocSc
- Identifier: vital:935 , http://hdl.handle.net/10962/d1002668 , International Monetary Fund , International Monetary Fund -- Developing countries , Structural adjustment (Economic policy) -- Developing countries , South Africa -- Economic policy
- Description: The mixed results of International Monetary Fund structural adjustment programmes in less developed countries are a major motivation for this research. Explanations must be advanced as to what may inhibit the success of such programmes. South Africa has often found itself in a precarious position- with a deteriorating balance of payments, a position similar to other countries that have accepted IMF loans. Furthermore, South Africa undertook an IMF loan in 1993. Financial support from the IMF incorporates structural adjustment programmes. These may include measures such as tighter monetary policy, reduction in the budget deficit, exchange rate devaluation and ceilings on domestic credit with increased interest rates (Ferguson, 1988). These policies illustrate the principle of ‘conditionality,’ whereby access to further loans is conditional on certain criteria being met, such as reduced budget deficits and inflation rates. The principle of conditionality has met with a great deal of criticism. Bacha (1987) and Dell (1982) argue that these aggregate demand-reducing conditions more often than not stagnate domestic economies, worsening the balance of payment and result in programme breakdowns. Essentially, they refer to the IMF conditions as ‘unrealistic.’ The IMF denies this, arguing that shortfalls are mainly due to a lack of political commitment to carry out its conditions (Winters, 1994). This issue of conditionality will be examined in detail, using three specific case studies. The aim of this study is to examine the characteristics of Brazil, Mexico and Zambia to see whether or not the IMF programmes were successful. Guidelines will be established for South African policy from these case studies. South Africa is trying to adjust to the competitiveness of the international economy. At the same time, the need for reconstruction and development exerts increasing pressures on the balance of payments. Guidelines are established for a successful economic adjustment for South Africa. The research concludes that South Africa is certainly in line for a successful transformation. The rigidities are not as extensive as has been the case in Brazil and Zambia. Institutionally, South Africa is sound. However there are still challenges in this area, such as export diversification and economic stability to attract foreign investment.
- Full Text:
- Authors: Berolsky, Nuno Goncalo
- Date: 2000
- Subjects: International Monetary Fund , International Monetary Fund -- Developing countries , Structural adjustment (Economic policy) -- Developing countries , South Africa -- Economic policy
- Language: English
- Type: Thesis , Masters , MSocSc
- Identifier: vital:935 , http://hdl.handle.net/10962/d1002668 , International Monetary Fund , International Monetary Fund -- Developing countries , Structural adjustment (Economic policy) -- Developing countries , South Africa -- Economic policy
- Description: The mixed results of International Monetary Fund structural adjustment programmes in less developed countries are a major motivation for this research. Explanations must be advanced as to what may inhibit the success of such programmes. South Africa has often found itself in a precarious position- with a deteriorating balance of payments, a position similar to other countries that have accepted IMF loans. Furthermore, South Africa undertook an IMF loan in 1993. Financial support from the IMF incorporates structural adjustment programmes. These may include measures such as tighter monetary policy, reduction in the budget deficit, exchange rate devaluation and ceilings on domestic credit with increased interest rates (Ferguson, 1988). These policies illustrate the principle of ‘conditionality,’ whereby access to further loans is conditional on certain criteria being met, such as reduced budget deficits and inflation rates. The principle of conditionality has met with a great deal of criticism. Bacha (1987) and Dell (1982) argue that these aggregate demand-reducing conditions more often than not stagnate domestic economies, worsening the balance of payment and result in programme breakdowns. Essentially, they refer to the IMF conditions as ‘unrealistic.’ The IMF denies this, arguing that shortfalls are mainly due to a lack of political commitment to carry out its conditions (Winters, 1994). This issue of conditionality will be examined in detail, using three specific case studies. The aim of this study is to examine the characteristics of Brazil, Mexico and Zambia to see whether or not the IMF programmes were successful. Guidelines will be established for South African policy from these case studies. South Africa is trying to adjust to the competitiveness of the international economy. At the same time, the need for reconstruction and development exerts increasing pressures on the balance of payments. Guidelines are established for a successful economic adjustment for South Africa. The research concludes that South Africa is certainly in line for a successful transformation. The rigidities are not as extensive as has been the case in Brazil and Zambia. Institutionally, South Africa is sound. However there are still challenges in this area, such as export diversification and economic stability to attract foreign investment.
- Full Text:
South Africa's growth, employment and redistribution strategy in the context of structural adjustment programmes in the South
- Authors: Lehloesa, Thembinkosi L
- Date: 2000
- Subjects: Growth, Employment And Redistribution Programme (South Africa) , South Africa -- Economic policy , South Africa -- Politics and government -- 1989-1994
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:2794 , http://hdl.handle.net/10962/d1003004 , Growth, Employment And Redistribution Programme (South Africa) , South Africa -- Economic policy , South Africa -- Politics and government -- 1989-1994
- Description: This study is a contribution to the ongoing debate concerning the future of South Africa’s macro-economic policy known as the Growth, Employment and Redistribution (GEAR) strategy. The study attempts to draw parallels between the GEAR macro-economic policy framework and structural adjustment programmes in the South. By making use of this comparison, the study argues that the outcome of the GEAR will be no different from structural adjustment programmes in that it will fail to reduce poverty and cause government to meet the basic needs of the people. These conclusions are drawn from the fact that the GEAR policy is premised on the faith that the market is capable of redistributing income and wealth, and providing people with their basic needs.
- Full Text:
- Authors: Lehloesa, Thembinkosi L
- Date: 2000
- Subjects: Growth, Employment And Redistribution Programme (South Africa) , South Africa -- Economic policy , South Africa -- Politics and government -- 1989-1994
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:2794 , http://hdl.handle.net/10962/d1003004 , Growth, Employment And Redistribution Programme (South Africa) , South Africa -- Economic policy , South Africa -- Politics and government -- 1989-1994
- Description: This study is a contribution to the ongoing debate concerning the future of South Africa’s macro-economic policy known as the Growth, Employment and Redistribution (GEAR) strategy. The study attempts to draw parallels between the GEAR macro-economic policy framework and structural adjustment programmes in the South. By making use of this comparison, the study argues that the outcome of the GEAR will be no different from structural adjustment programmes in that it will fail to reduce poverty and cause government to meet the basic needs of the people. These conclusions are drawn from the fact that the GEAR policy is premised on the faith that the market is capable of redistributing income and wealth, and providing people with their basic needs.
- Full Text:
Department of Economic Affairs and RDP
- Department of Economic Affairs
- Authors: Department of Economic Affairs
- Date: 1997-01
- Subjects: Reconstruction and Development Programme (South Africa) , Western Cape (South Africa) -- Economic conditions , South Africa -- Economic policy
- Language: English
- Type: text , book
- Identifier: http://hdl.handle.net/10962/72490 , vital:30072
- Description: Local Economic Development (LED) is one of the primary building blocks in terms of the economic growth and development equation for the Province. The primary challenges LED has the potential to address include the following: Job creation, the building of an enabling environment that will encourage economic engagement by a larger number of local entrepreneurs, drawing together a number of critical partners and mobilising their energies and resources towards local economic growth and development, facilitating access to finance, markets, capacity building and business support services, creating the environment which will effect economic viability of local communities and their Local Authorities, linking local product development to provincial, national and international markets. There are many other fundamental challenges. The key issue though is whether people in their communities, especially rural and peripheral environments, are benefiting in real terms regarding the quality of their lives. The LED programme will also give effect to the “Growth, Employment and Redistribution: A Macro Economic Strategy” framework that outlines the strategy for rebuilding and restructuring the South African economy. The document confirms Government’s commitment: “It is Government’s conviction that we have to mobilise all our energy in a new burst of economic activity. This will need to break current constraints and catapult the economy to higher levels of growth, development and employment needed to provide a better life for all South Africans.” (1996:2)
- Full Text:
- Authors: Department of Economic Affairs
- Date: 1997-01
- Subjects: Reconstruction and Development Programme (South Africa) , Western Cape (South Africa) -- Economic conditions , South Africa -- Economic policy
- Language: English
- Type: text , book
- Identifier: http://hdl.handle.net/10962/72490 , vital:30072
- Description: Local Economic Development (LED) is one of the primary building blocks in terms of the economic growth and development equation for the Province. The primary challenges LED has the potential to address include the following: Job creation, the building of an enabling environment that will encourage economic engagement by a larger number of local entrepreneurs, drawing together a number of critical partners and mobilising their energies and resources towards local economic growth and development, facilitating access to finance, markets, capacity building and business support services, creating the environment which will effect economic viability of local communities and their Local Authorities, linking local product development to provincial, national and international markets. There are many other fundamental challenges. The key issue though is whether people in their communities, especially rural and peripheral environments, are benefiting in real terms regarding the quality of their lives. The LED programme will also give effect to the “Growth, Employment and Redistribution: A Macro Economic Strategy” framework that outlines the strategy for rebuilding and restructuring the South African economy. The document confirms Government’s commitment: “It is Government’s conviction that we have to mobilise all our energy in a new burst of economic activity. This will need to break current constraints and catapult the economy to higher levels of growth, development and employment needed to provide a better life for all South Africans.” (1996:2)
- Full Text:
Making the means justify the ends?: the theory and practice of the RDP
- Authors: Rapoo, Thabo
- Date: [1996]
- Subjects: South Africa -- Economic policy , Reconstruction and Development Programme (South Africa)
- Language: English
- Type: text , book
- Identifier: http://hdl.handle.net/10962/74783 , vital:30338 , 0958407983
- Description: So much has been said and written about the Reconstruction and Development Programme by a bewildering array of development specialists, politicians, bureaucrats and commentators that it seems inconceivable that anyone familiar with policy debates would still lack an understanding of it. But amid the speeches, publications, policy documents and newspaper articles, the RDP has lost its meaning and coherence. It has come to mean anything anyone wants it to mean; with a little ingenuity, anything can be made to fit in with the goals of the RDP. It has thus become too broad and imprecise to refer only to what was originally intended. This paper offers an analysis of the RDP’s approach at national and provincial levels, and provides a conceptual framework within which the RDP’s Basic Needs approach to development is assessed. It forms part of a continuing project which seeks to examine the RDP and its implementation by the provinces, and was based on interviews with provincial and national RDP officials, development planners in the provinces, and a thorough content analysis of official policy documents, memoranda and minutes. The institutionalisation of the RDP will be examined by analysing problems faced in the course of implementing it in the provinces. Gauteng, Mpumalanga and North West were chosen as case studies; w'hile they were selected randomly, the goal was to examine three provinces with different socio-economic profiles, allowing significant lessons to be extrapolated from their short experience of implementing the RDP. Their priorities and strategic approaches will be assessed, and problems examined, to suggest lessons for policy and planning that might throw light on similar issues in other provinces. Finally, the paper will analyse indications that the government is making subtle strategic changes towards rearticulating the RDP within a new time frame, and moving towards a tightly co-ordinated set of institutional structures and intergovernmental planning systems. , Social policy series
- Full Text:
- Authors: Rapoo, Thabo
- Date: [1996]
- Subjects: South Africa -- Economic policy , Reconstruction and Development Programme (South Africa)
- Language: English
- Type: text , book
- Identifier: http://hdl.handle.net/10962/74783 , vital:30338 , 0958407983
- Description: So much has been said and written about the Reconstruction and Development Programme by a bewildering array of development specialists, politicians, bureaucrats and commentators that it seems inconceivable that anyone familiar with policy debates would still lack an understanding of it. But amid the speeches, publications, policy documents and newspaper articles, the RDP has lost its meaning and coherence. It has come to mean anything anyone wants it to mean; with a little ingenuity, anything can be made to fit in with the goals of the RDP. It has thus become too broad and imprecise to refer only to what was originally intended. This paper offers an analysis of the RDP’s approach at national and provincial levels, and provides a conceptual framework within which the RDP’s Basic Needs approach to development is assessed. It forms part of a continuing project which seeks to examine the RDP and its implementation by the provinces, and was based on interviews with provincial and national RDP officials, development planners in the provinces, and a thorough content analysis of official policy documents, memoranda and minutes. The institutionalisation of the RDP will be examined by analysing problems faced in the course of implementing it in the provinces. Gauteng, Mpumalanga and North West were chosen as case studies; w'hile they were selected randomly, the goal was to examine three provinces with different socio-economic profiles, allowing significant lessons to be extrapolated from their short experience of implementing the RDP. Their priorities and strategic approaches will be assessed, and problems examined, to suggest lessons for policy and planning that might throw light on similar issues in other provinces. Finally, the paper will analyse indications that the government is making subtle strategic changes towards rearticulating the RDP within a new time frame, and moving towards a tightly co-ordinated set of institutional structures and intergovernmental planning systems. , Social policy series
- Full Text:
Redistribution and taxation in South Africa : inaugural lecture delivered at Rhodes University
- Authors: Gavin, Wesley J
- Date: 1996
- Subjects: Taxation -- South Africa , Wealth -- Moral and ethical aspects , South Africa -- Economic policy
- Language: English
- Type: Text
- Identifier: vital:627 , http://hdl.handle.net/10962/d1020696 , ISBN 0868103292
- Description: Inaugural lecture delivered at Rhodes University , Rhodes University Libraries (Digitisation)
- Full Text:
- Authors: Gavin, Wesley J
- Date: 1996
- Subjects: Taxation -- South Africa , Wealth -- Moral and ethical aspects , South Africa -- Economic policy
- Language: English
- Type: Text
- Identifier: vital:627 , http://hdl.handle.net/10962/d1020696 , ISBN 0868103292
- Description: Inaugural lecture delivered at Rhodes University , Rhodes University Libraries (Digitisation)
- Full Text:
The RDP: April 27, 1995, the first year reviewed
- Ministry in the Office of the President
- Authors: Ministry in the Office of the President
- Date: 1995-04
- Subjects: Reconstruction and development programme (South Africa) , South Africa -- Politics and government -- 1994- , South Africa -- Economic policy , Social change -- South Africa
- Language: English
- Type: text , book
- Identifier: http://hdl.handle.net/10962/75885 , vital:30479
- Description: The inauguration of the Government of National Unity created the necessary conditions for us to start the challenging task of changing South African society for the better. This is what we had set ourselves to do during the years of struggle to rid our country of apartheid. Now South Africans can, under conditions of freedom, work together to make our country the land of our dreams. This means further enhancing the freedoms we now enjoy; improving the security of citizens at home, in the streets and at work; and raising the quality of life of all the people. Reconstruction and development means all these things: to change all aspects of our lives for the better. Among the urgent tasks the government has set itself is to work together with all citizens to improve the provision of education, health services, housing, water supply, land, electricity, refuse removal, roads and so on. This demands of government that we change the manner in which public funds have all along been used. Everything should be done to create conditions in which the economy can improve and provide more jobs. To realise all these objectives requires co-operation among us as hard-working and responsible citizens. Immediately the Government of National Unity was installed, we started the planning required to meet these goals. At the same time, we also launched Presidential Lead Projects aimed at improving the lives of especially the poor, women and children. But this was just the beginning. For, in the end, we should change the allocation of all public funds towards the new priorities. Government should involve the people more actively at all stages of reconstruction and development. We should operate in an open manner guided by the wisdom of the people themselves. From the projects started last year, many of these ideals have started to take shape. But we continue to learn many lessons. This booklet outlines the concrete steps that have been taken thus far, in the long journey towards a better life for all. As this account shows, this task is not an easy one. But, working together, in the spirit of Masakhane, South Africans are more than capable of realising the good things that our beautiful country can offer.
- Full Text:
- Authors: Ministry in the Office of the President
- Date: 1995-04
- Subjects: Reconstruction and development programme (South Africa) , South Africa -- Politics and government -- 1994- , South Africa -- Economic policy , Social change -- South Africa
- Language: English
- Type: text , book
- Identifier: http://hdl.handle.net/10962/75885 , vital:30479
- Description: The inauguration of the Government of National Unity created the necessary conditions for us to start the challenging task of changing South African society for the better. This is what we had set ourselves to do during the years of struggle to rid our country of apartheid. Now South Africans can, under conditions of freedom, work together to make our country the land of our dreams. This means further enhancing the freedoms we now enjoy; improving the security of citizens at home, in the streets and at work; and raising the quality of life of all the people. Reconstruction and development means all these things: to change all aspects of our lives for the better. Among the urgent tasks the government has set itself is to work together with all citizens to improve the provision of education, health services, housing, water supply, land, electricity, refuse removal, roads and so on. This demands of government that we change the manner in which public funds have all along been used. Everything should be done to create conditions in which the economy can improve and provide more jobs. To realise all these objectives requires co-operation among us as hard-working and responsible citizens. Immediately the Government of National Unity was installed, we started the planning required to meet these goals. At the same time, we also launched Presidential Lead Projects aimed at improving the lives of especially the poor, women and children. But this was just the beginning. For, in the end, we should change the allocation of all public funds towards the new priorities. Government should involve the people more actively at all stages of reconstruction and development. We should operate in an open manner guided by the wisdom of the people themselves. From the projects started last year, many of these ideals have started to take shape. But we continue to learn many lessons. This booklet outlines the concrete steps that have been taken thus far, in the long journey towards a better life for all. As this account shows, this task is not an easy one. But, working together, in the spirit of Masakhane, South Africans are more than capable of realising the good things that our beautiful country can offer.
- Full Text:
Formulating the African National Congress' foreign investment policy in the transition to a post-apartheid South Africa: problems, pressures and constraints
- Authors: Carim, Xavier
- Date: 1995
- Subjects: Investments, Foreign -- South Africa , Political stability -- South Africa , African National Congress -- Foreign economic relations , South Africa -- Foreign economic relations , South Africa -- Economic policy , South Africa -- Economic conditions -- 1991-
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:2764 , http://hdl.handle.net/10962/d1002974 , Investments, Foreign -- South Africa , Political stability -- South Africa , African National Congress -- Foreign economic relations , South Africa -- Foreign economic relations , South Africa -- Economic policy , South Africa -- Economic conditions -- 1991-
- Description: This study examines the wide-ranging and critical factors which have impacted on the African National Congress' (ANC) emerging foreign investment policy. It identifies and analyses the matrix of political and socio-economic factors which have combined at global and national levels to shape ANC policy perspectives towards foreign direct investment (FDI). In so doing, the study adopts an eclectic theoretical and methodological approach. It draws on various theoretical traditions to propose a framework that is heuristic and contingent, rather than axiomatic. With regard to foreign investment, in particular, it recommends a theoretical pluralism emphasising 'engagement' through praxis and sound political (state) action. The study argues that the ANC has reconsidered many of its basic assumptions on the nature of the post-apartheid economy and discusses the reasons for those shifts. The reasons include, in particular, global political and economic trends and the balance of forces in South Africa. These have combined to ensure the ANC's broad acceptance of an 'open-door policy' towards FDI so long as it occurs on terms not inconsistent with national objectives. The emerging policy sees the state playing an active role in encouraging and guiding FDI to specific areas and sectors supportive of broad-based development. Foreign investors will be encouraged to form joint ventures with emerging black businesses and agree to foster training, skills development and affirmative action. Harnessing the benefits of FDI will be important for the success of wider strategies designed to place the economy on a firmer, more sustainable growth path.
- Full Text:
- Authors: Carim, Xavier
- Date: 1995
- Subjects: Investments, Foreign -- South Africa , Political stability -- South Africa , African National Congress -- Foreign economic relations , South Africa -- Foreign economic relations , South Africa -- Economic policy , South Africa -- Economic conditions -- 1991-
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:2764 , http://hdl.handle.net/10962/d1002974 , Investments, Foreign -- South Africa , Political stability -- South Africa , African National Congress -- Foreign economic relations , South Africa -- Foreign economic relations , South Africa -- Economic policy , South Africa -- Economic conditions -- 1991-
- Description: This study examines the wide-ranging and critical factors which have impacted on the African National Congress' (ANC) emerging foreign investment policy. It identifies and analyses the matrix of political and socio-economic factors which have combined at global and national levels to shape ANC policy perspectives towards foreign direct investment (FDI). In so doing, the study adopts an eclectic theoretical and methodological approach. It draws on various theoretical traditions to propose a framework that is heuristic and contingent, rather than axiomatic. With regard to foreign investment, in particular, it recommends a theoretical pluralism emphasising 'engagement' through praxis and sound political (state) action. The study argues that the ANC has reconsidered many of its basic assumptions on the nature of the post-apartheid economy and discusses the reasons for those shifts. The reasons include, in particular, global political and economic trends and the balance of forces in South Africa. These have combined to ensure the ANC's broad acceptance of an 'open-door policy' towards FDI so long as it occurs on terms not inconsistent with national objectives. The emerging policy sees the state playing an active role in encouraging and guiding FDI to specific areas and sectors supportive of broad-based development. Foreign investors will be encouraged to form joint ventures with emerging black businesses and agree to foster training, skills development and affirmative action. Harnessing the benefits of FDI will be important for the success of wider strategies designed to place the economy on a firmer, more sustainable growth path.
- Full Text:
National Economic Development and Labour Council
- NEDLAC
- Authors: NEDLAC
- Date: 1995?
- Subjects: Nedlac , South Africa -- Economic policy , Economic development -- South Africa , Labour policy -- South Africa
- Language: eng
- Type: text , book
- Identifier: http://hdl.handle.net/10962/77038 , vital:30658
- Full Text:
- Authors: NEDLAC
- Date: 1995?
- Subjects: Nedlac , South Africa -- Economic policy , Economic development -- South Africa , Labour policy -- South Africa
- Language: eng
- Type: text , book
- Identifier: http://hdl.handle.net/10962/77038 , vital:30658
- Full Text: