The functioning of the interbank market and its significance in the transmission of monetary policy
- Authors: De Angelis, Catherine
- Date: 2013-06-11
- Subjects: South African Reserve Bank , Monetary policy -- South Africa , Foreign exchange rates -- South Africa , Money market -- South Africa , Banks and banking -- South Africa , Repurchase agreements -- South Africa , South Africa -- Economic policy , South Africa -- Economic conditions
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1075 , http://hdl.handle.net/10962/d1008054 , South African Reserve Bank , Monetary policy -- South Africa , Foreign exchange rates -- South Africa , Money market -- South Africa , Banks and banking -- South Africa , Repurchase agreements -- South Africa , South Africa -- Economic policy , South Africa -- Economic conditions
- Description: Monetary policy in South African is the primary means by which the authorities can influence activity in the overall economy. The South African Reserve Bank accommodates banks through repo transactions for which they charge the repo rate. The most important market in the transmission of the repo rate to the rest of the economy is the interbank market. As such, a detailed discussion of this market is given. In September 200 I the monetary authorities made certain adjustments to the repo system of accommodation, which included changing the repo rate from a floating rate to a fixed rate that would be administratively determined by the MPC. This was done to address certain weaknesses in the floating rate system. This thesis examines and compares the period before and after the adjustments to the repo system, with the aim of determining whether or not the monetary authorities achieved the goals intended from making this change. The repo rate, prime interbank rate, 3-month NCO rate and the prime lending rate are analysed using the Engle-Granger two variable approach and an ECM model to test for causality. It was found that the monetary authorities did not achieve their intended goals as the relationship between the repo rate and the interbank rate was more significant in the first period. Furthermore, the direction of causality the authorities hoped to achieve by implementing the changes were in fact already in place. As such the adjustments to the system changed the transmission mechanism from the one desired by the authorities to one that was not intended. The conclusions reached by this study show that, in terms of the objectives of the monetary authorities, the previous repo system functioned better. , KMBT_363 , Adobe Acrobat 9.54 Paper Capture Plug-in
- Full Text:
- Authors: De Angelis, Catherine
- Date: 2013-06-11
- Subjects: South African Reserve Bank , Monetary policy -- South Africa , Foreign exchange rates -- South Africa , Money market -- South Africa , Banks and banking -- South Africa , Repurchase agreements -- South Africa , South Africa -- Economic policy , South Africa -- Economic conditions
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1075 , http://hdl.handle.net/10962/d1008054 , South African Reserve Bank , Monetary policy -- South Africa , Foreign exchange rates -- South Africa , Money market -- South Africa , Banks and banking -- South Africa , Repurchase agreements -- South Africa , South Africa -- Economic policy , South Africa -- Economic conditions
- Description: Monetary policy in South African is the primary means by which the authorities can influence activity in the overall economy. The South African Reserve Bank accommodates banks through repo transactions for which they charge the repo rate. The most important market in the transmission of the repo rate to the rest of the economy is the interbank market. As such, a detailed discussion of this market is given. In September 200 I the monetary authorities made certain adjustments to the repo system of accommodation, which included changing the repo rate from a floating rate to a fixed rate that would be administratively determined by the MPC. This was done to address certain weaknesses in the floating rate system. This thesis examines and compares the period before and after the adjustments to the repo system, with the aim of determining whether or not the monetary authorities achieved the goals intended from making this change. The repo rate, prime interbank rate, 3-month NCO rate and the prime lending rate are analysed using the Engle-Granger two variable approach and an ECM model to test for causality. It was found that the monetary authorities did not achieve their intended goals as the relationship between the repo rate and the interbank rate was more significant in the first period. Furthermore, the direction of causality the authorities hoped to achieve by implementing the changes were in fact already in place. As such the adjustments to the system changed the transmission mechanism from the one desired by the authorities to one that was not intended. The conclusions reached by this study show that, in terms of the objectives of the monetary authorities, the previous repo system functioned better. , KMBT_363 , Adobe Acrobat 9.54 Paper Capture Plug-in
- Full Text:
Assessing financial viability of selected urban and rural municipalities in the Eastern Cape
- Authors: Maclean, Sindisile
- Date: 2013
- Subjects: Finance, Public -- South Africa -- Eastern Cape , Municipal government -- South Africa -- Eastern Cape , Sustainable development -- South Africa -- Eastern Cape , Human services -- South Africa -- Eastern Cape , Municipal services -- South Africa -- Eastern Cape , South Africa -- Economic policy , South Africa -- Economic conditions
- Language: English
- Type: Thesis , Doctoral , PhD (in Public Administration)
- Identifier: vital:11661 , http://hdl.handle.net/10353/d1007093 , Finance, Public -- South Africa -- Eastern Cape , Municipal government -- South Africa -- Eastern Cape , Sustainable development -- South Africa -- Eastern Cape , Human services -- South Africa -- Eastern Cape , Municipal services -- South Africa -- Eastern Cape , South Africa -- Economic policy , South Africa -- Economic conditions
- Description: The purpose of the research is to assess the financial viability of selected urban and rural municipalities in the Eastern Cape. Municipalities that are not financially viable and sustainable will always struggle to deliver basic services to communities. Without sound financial management systems, municipalities will be forced to discontinue their operations. Municipalities, particularly small and rural ones, are not self-sufficient and often rely on grants and transfers to satisfy their immediate short-term goal of providing basic services to satisfy the needs of their communities. Therefore, finance is regarded as an overriding and decisive factor for determining the viability of municipalities. The study seeks to investigate the financial viability of selected urban and rural municipalities in the Eastern Cape. Its key research questions are: Are municipalities able to provide sufficient funds to provide a range of services at an acceptable service level? To what extent do municipalities rely on external funding? Do municipalities have revenue collection capacity and revenue policies? The study asserts that most municipalities lack the required financial resources. They depend mainly on transfers from Provincial Government and equitable share and conditional grants from National Government. Section 152 (1) of the Constitution of the Republic of South Africa, Act 8 of 1996, states, amongst other things, that Local Government should ensure the provision of services to communities in a sustainable manner. The constitution further states that a municipality must strive, within its financial and administrative capacity, to achieve its objectives. The Municipal Finance Management Act, Act 56 of 2003, creates a framework for municipalities to borrow money and determine the conditions for short- and long-term borrowing. The Act assigns clear roles and responsibilities to the various role players involved in local government financial management. According to the Act, an annual budget for a municipality may only be funded from realistically anticipated revenues to be collected. As revenue projections in the budget must be realistic, the Municipal Property Rates Act, Act 6 of 2004, facilitates the collection of revenue in municipalities and establishes a uniform property rating system across South Africa. Property tax is the biggest element of local government tax revenue and is central to municipal finance. The Municipal Systems Act, Act 32 of 2000, amongst its objectives, provides for the manner in which municipal powers and functions are exercised as well as establishes a simple framework for the core processes of planning, performance management and resource mobilisation. The Act also provides a framework for public administration and human resource development. Finally, it also empowers the poor and ensures that municipalities put in place service tariffs and credit control policies that take their needs into account. The research contends that, whilst there is legislation and structures to assist and direct municipalities, it has been established that municipalities do not properly collect rates and taxes due to them to augment their revenue. The study has shown nevertheless that metropolitan municipalities have the capacity to collect revenue for municipal services. This is confirmed by their collection rate which ranges between 94 % and 97 %. There is also the culture of non-payment by communities for services rendered by the municipalities. Rural municipalities are exempted from property tax, while other rural municipalities who have an urban component, have to collect. There is also the question of unemployment and poverty. Consequently, municipalities are not self-sufficient and rely on grants and equitable share to survive. As a result of this lack of self-sufficiency, it is difficult to implement service delivery and also difficult to attract skilled personnel. The study has investigated why some municipalities fail to collect revenue and depend on national grants. The study employed both qualitative and quantitative methods. The findings of the quantitative paradigm have been presented in the form of graphs and charts. The major findings include: All municipalities have limited borrowing capacity; have not exceeded their budgets in terms of their spending; small municipalities have households as their main contributor of revenue collected; metropolitan municipalities get the big slice of their revenue from business; small and rural municipalities rely on grants and transfers and are therefore not financially viable; metropolitan municipalities are, to a great extent, financially viable but lack skills and capacity to utilize their resources for effective service delivery; and all municipalities under-spend their budgets. The study, after elaborating on the findings, makes recommendations on how municipalities should become financially viable.
- Full Text:
- Date Issued: 2013
- Authors: Maclean, Sindisile
- Date: 2013
- Subjects: Finance, Public -- South Africa -- Eastern Cape , Municipal government -- South Africa -- Eastern Cape , Sustainable development -- South Africa -- Eastern Cape , Human services -- South Africa -- Eastern Cape , Municipal services -- South Africa -- Eastern Cape , South Africa -- Economic policy , South Africa -- Economic conditions
- Language: English
- Type: Thesis , Doctoral , PhD (in Public Administration)
- Identifier: vital:11661 , http://hdl.handle.net/10353/d1007093 , Finance, Public -- South Africa -- Eastern Cape , Municipal government -- South Africa -- Eastern Cape , Sustainable development -- South Africa -- Eastern Cape , Human services -- South Africa -- Eastern Cape , Municipal services -- South Africa -- Eastern Cape , South Africa -- Economic policy , South Africa -- Economic conditions
- Description: The purpose of the research is to assess the financial viability of selected urban and rural municipalities in the Eastern Cape. Municipalities that are not financially viable and sustainable will always struggle to deliver basic services to communities. Without sound financial management systems, municipalities will be forced to discontinue their operations. Municipalities, particularly small and rural ones, are not self-sufficient and often rely on grants and transfers to satisfy their immediate short-term goal of providing basic services to satisfy the needs of their communities. Therefore, finance is regarded as an overriding and decisive factor for determining the viability of municipalities. The study seeks to investigate the financial viability of selected urban and rural municipalities in the Eastern Cape. Its key research questions are: Are municipalities able to provide sufficient funds to provide a range of services at an acceptable service level? To what extent do municipalities rely on external funding? Do municipalities have revenue collection capacity and revenue policies? The study asserts that most municipalities lack the required financial resources. They depend mainly on transfers from Provincial Government and equitable share and conditional grants from National Government. Section 152 (1) of the Constitution of the Republic of South Africa, Act 8 of 1996, states, amongst other things, that Local Government should ensure the provision of services to communities in a sustainable manner. The constitution further states that a municipality must strive, within its financial and administrative capacity, to achieve its objectives. The Municipal Finance Management Act, Act 56 of 2003, creates a framework for municipalities to borrow money and determine the conditions for short- and long-term borrowing. The Act assigns clear roles and responsibilities to the various role players involved in local government financial management. According to the Act, an annual budget for a municipality may only be funded from realistically anticipated revenues to be collected. As revenue projections in the budget must be realistic, the Municipal Property Rates Act, Act 6 of 2004, facilitates the collection of revenue in municipalities and establishes a uniform property rating system across South Africa. Property tax is the biggest element of local government tax revenue and is central to municipal finance. The Municipal Systems Act, Act 32 of 2000, amongst its objectives, provides for the manner in which municipal powers and functions are exercised as well as establishes a simple framework for the core processes of planning, performance management and resource mobilisation. The Act also provides a framework for public administration and human resource development. Finally, it also empowers the poor and ensures that municipalities put in place service tariffs and credit control policies that take their needs into account. The research contends that, whilst there is legislation and structures to assist and direct municipalities, it has been established that municipalities do not properly collect rates and taxes due to them to augment their revenue. The study has shown nevertheless that metropolitan municipalities have the capacity to collect revenue for municipal services. This is confirmed by their collection rate which ranges between 94 % and 97 %. There is also the culture of non-payment by communities for services rendered by the municipalities. Rural municipalities are exempted from property tax, while other rural municipalities who have an urban component, have to collect. There is also the question of unemployment and poverty. Consequently, municipalities are not self-sufficient and rely on grants and equitable share to survive. As a result of this lack of self-sufficiency, it is difficult to implement service delivery and also difficult to attract skilled personnel. The study has investigated why some municipalities fail to collect revenue and depend on national grants. The study employed both qualitative and quantitative methods. The findings of the quantitative paradigm have been presented in the form of graphs and charts. The major findings include: All municipalities have limited borrowing capacity; have not exceeded their budgets in terms of their spending; small municipalities have households as their main contributor of revenue collected; metropolitan municipalities get the big slice of their revenue from business; small and rural municipalities rely on grants and transfers and are therefore not financially viable; metropolitan municipalities are, to a great extent, financially viable but lack skills and capacity to utilize their resources for effective service delivery; and all municipalities under-spend their budgets. The study, after elaborating on the findings, makes recommendations on how municipalities should become financially viable.
- Full Text:
- Date Issued: 2013
Effects of exchange rate volatility on the stock market: a case study of South Africa
- Authors: Mlambo, Courage
- Date: 2013
- Subjects: Foreign exchange rates -- South Africa , Currency question -- South Africa , Free trade -- South Africa , Capital movements -- South Africa , Cointegration -- South Africa , Investments, Foreign , International trade , Stock exchanges -- South Africa , South Africa -- Economic policy
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11468 , http://hdl.handle.net/10353/d1007125 , Foreign exchange rates -- South Africa , Currency question -- South Africa , Free trade -- South Africa , Capital movements -- South Africa , Cointegration -- South Africa , Investments, Foreign , International trade , Stock exchanges -- South Africa , South Africa -- Economic policy
- Description: This study assessed the effects of currency volatility on the Johannesburg Stock Exchange. An evaluation of literature on exchange rate volatility and stock markets was conducted resulting into specification of an empirical model.The Generalised Autoregressive Conditional Heteroskedascity (1.1) (GARCH) model was used in establishing the relationship between exchange rate volatility and stock market performance. The study employed monthly South African data for the period 2000 – 2010. The data frequency selected ensured an adequate number of observations. A very weak relationship between currency volatility and the stock market was confirmed. The research finding is supported by previous studies. Prime overdraft rate and total mining production were found to have a negative impact on Market capitalisation. Surprisingly, US interest rates were found to have a positive impact on Market capitalisation. This study recommended that, since the South African stock market is not really exposed to the negative effects of currency volatility, government can use exchange rate as a policy tool to attract foreign portfolio investment. The weak relationship between currency volatility and the stock market suggests that the JSE can be marketed as a safe market for foreign investors. However, investors, bankers and portfolio managers still need to be vigilant in regard to the spillovers from the foreign exchange rate into the stock market. Although there is a weak relationship between rand volatility and the stock market in South Africa, this does not necessarily mean that investors and portfolio managers need not monitor the developments between these two variables.
- Full Text:
- Date Issued: 2013
- Authors: Mlambo, Courage
- Date: 2013
- Subjects: Foreign exchange rates -- South Africa , Currency question -- South Africa , Free trade -- South Africa , Capital movements -- South Africa , Cointegration -- South Africa , Investments, Foreign , International trade , Stock exchanges -- South Africa , South Africa -- Economic policy
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11468 , http://hdl.handle.net/10353/d1007125 , Foreign exchange rates -- South Africa , Currency question -- South Africa , Free trade -- South Africa , Capital movements -- South Africa , Cointegration -- South Africa , Investments, Foreign , International trade , Stock exchanges -- South Africa , South Africa -- Economic policy
- Description: This study assessed the effects of currency volatility on the Johannesburg Stock Exchange. An evaluation of literature on exchange rate volatility and stock markets was conducted resulting into specification of an empirical model.The Generalised Autoregressive Conditional Heteroskedascity (1.1) (GARCH) model was used in establishing the relationship between exchange rate volatility and stock market performance. The study employed monthly South African data for the period 2000 – 2010. The data frequency selected ensured an adequate number of observations. A very weak relationship between currency volatility and the stock market was confirmed. The research finding is supported by previous studies. Prime overdraft rate and total mining production were found to have a negative impact on Market capitalisation. Surprisingly, US interest rates were found to have a positive impact on Market capitalisation. This study recommended that, since the South African stock market is not really exposed to the negative effects of currency volatility, government can use exchange rate as a policy tool to attract foreign portfolio investment. The weak relationship between currency volatility and the stock market suggests that the JSE can be marketed as a safe market for foreign investors. However, investors, bankers and portfolio managers still need to be vigilant in regard to the spillovers from the foreign exchange rate into the stock market. Although there is a weak relationship between rand volatility and the stock market in South Africa, this does not necessarily mean that investors and portfolio managers need not monitor the developments between these two variables.
- Full Text:
- Date Issued: 2013
Enhancing financial accountability in the acquisition of goods and services : the case of the Eastern Cape Provincial Department of Safety and Liaison
- Authors: Ndaleni, Phumla
- Date: 2013
- Subjects: Finance, Public -- South Africa -- Eastern Cape , Government spending policy -- South Africa , Finance, Public , South Africa -- Economic policy
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:8342 , http://hdl.handle.net/10948/d1020657
- Description: Supply Chain Management is an aspect of the procurement process which focuses on addressing the needs of both the service provider and the end user. It has a constitutional status which enables it to contribute towards addressing past discriminatory practices. It assists in correcting the imbalances of the past in the procurement of goods and services for government. Section 217(1) of the Constitution of the Republic of South Africa (Act 108 of 1996) specifies that procurement must be fair, equitable, transparent, competitive and cost effective. Accountability is the most critical element in improving financial management in the public sector. The objective of the study was to highlight the need for accountability in Public Finance Management. Additionally, it was intended to assess the respective roles of the various processes involved in the acquisition of goods and services with the goal of enhancing accountability in the Eastern Cape Department of Safety and Liaison in Bhisho. The study was conducted at the Head Office of the Supply Chain Management Section and the district offices with officials who are responsible for the procurement of goods and services. In order to achieve the objectives of the research, a survey was conducted using the qualitative method to ensure greater understanding and reliability. Convenience sampling was applied as it allowed the researcher to select the sample that was convenient. Moreover, it made it easier to reach the available participants. Data was gathered by means of face-to-face interviews for the Head Office respondents and telephonic interviews for the respondents of the district offices. The study concluded with recommendations emanating from the research findings that are meant to assist in improving accountability in Supply Chain Management within the Eastern Cape Department of Safety and Liaison.
- Full Text:
- Date Issued: 2013
- Authors: Ndaleni, Phumla
- Date: 2013
- Subjects: Finance, Public -- South Africa -- Eastern Cape , Government spending policy -- South Africa , Finance, Public , South Africa -- Economic policy
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:8342 , http://hdl.handle.net/10948/d1020657
- Description: Supply Chain Management is an aspect of the procurement process which focuses on addressing the needs of both the service provider and the end user. It has a constitutional status which enables it to contribute towards addressing past discriminatory practices. It assists in correcting the imbalances of the past in the procurement of goods and services for government. Section 217(1) of the Constitution of the Republic of South Africa (Act 108 of 1996) specifies that procurement must be fair, equitable, transparent, competitive and cost effective. Accountability is the most critical element in improving financial management in the public sector. The objective of the study was to highlight the need for accountability in Public Finance Management. Additionally, it was intended to assess the respective roles of the various processes involved in the acquisition of goods and services with the goal of enhancing accountability in the Eastern Cape Department of Safety and Liaison in Bhisho. The study was conducted at the Head Office of the Supply Chain Management Section and the district offices with officials who are responsible for the procurement of goods and services. In order to achieve the objectives of the research, a survey was conducted using the qualitative method to ensure greater understanding and reliability. Convenience sampling was applied as it allowed the researcher to select the sample that was convenient. Moreover, it made it easier to reach the available participants. Data was gathered by means of face-to-face interviews for the Head Office respondents and telephonic interviews for the respondents of the district offices. The study concluded with recommendations emanating from the research findings that are meant to assist in improving accountability in Supply Chain Management within the Eastern Cape Department of Safety and Liaison.
- Full Text:
- Date Issued: 2013
Foreign direct investment and socio-economic development : the South African example
- Authors: Mukosera, Precious Sipho
- Date: 2013
- Subjects: Investments, Foreign -- South Africa , Investments, Foreign -- Government policy -- South Africa , South Africa -- Economic policy , South Africa -- Economic conditions
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:9142 , http://hdl.handle.net/10948/d1018760
- Description: It is widely accepted by governments of many developing countries that Foreign Direct Investment (FDI) is crucial to the socio-economic development of their nations and have developed various policies in an effort to attract FDI, as a result. FDI is a crucial source of technology, capital and skills for developing countries for economic growth that may ultimately lead to poverty reduction, employment creation and modernisation. However, results from many studies have been inconclusive and have failed to find a direct link between the increase of FDI and the associated socio-economic development of recipient nations. South Africa is no exception to this debate as it seeks to turn its back on decades long apartheid, which has entrenched poverty in the majority of its population and exacerbated social tensions. The main socio-economic challenges that South Africa faces include high unemployment, skills shortages, poverty and high inequality, and the 2008/2009 global financial and economic crisis has exacerbated the crisis. Despite these challenges South Africa‘s macro-economic strategies have had a good reputation since 2000. The monetary policy has turned out to be more transparent and predictable, and a sound fiscal policy has sustained its framework. The study analyses the role that FDI plays in the socio-economic development of South Africa since 1995 by focusing on selected case studies: ABSA Bank, General Motors South Africa (GMSA) and the Mining Sector of South Africa. The research concludes that although ABSA Bank has implemented several corporate social responsibility (CSR), and various employee development programmes, there is hardly any evidence to suggest that Barclays Bank‘s takeover of ABSA Bank has positively impacted on these programmes. General Motors South Africa (GMSA), which came into South Africa many decades ago through a Greenfield Investment, has played a positive role in the economy of the Eastern Cape Province as well as that of South Africa, having created jobs directly and indirectly. The company has also designed and implemented various educational, housing as well as health and awareness programmes for its employees and for the communities. Mining companies that operate in South Africa formed partnerships in the communities in which they operate in an effort to improve the lives of people. While these various projects have been a source of employment, they have had a limited impact on the core causes of social problems surrounding the mines. Many of these root causes relate to core business practices of the mining companies, especially employee recruitment, wages and housing. These root causes where witnessed in the Lonmin tragedy and in other strikes that spread throughout the sector in 2012. The study concludes that although FDI does play a role in the socio-economic development of South Africa, especially Greenfield investment, the same argument could not be made on Mergers and acquisitions (M&As). Finally, the South African government needs to play a proactive role in ensuring that foreign companies that invest in the country need to be well aware of the socio-economic needs of South Africa, and be willing to play a positive role in that regard.
- Full Text:
- Date Issued: 2013
- Authors: Mukosera, Precious Sipho
- Date: 2013
- Subjects: Investments, Foreign -- South Africa , Investments, Foreign -- Government policy -- South Africa , South Africa -- Economic policy , South Africa -- Economic conditions
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:9142 , http://hdl.handle.net/10948/d1018760
- Description: It is widely accepted by governments of many developing countries that Foreign Direct Investment (FDI) is crucial to the socio-economic development of their nations and have developed various policies in an effort to attract FDI, as a result. FDI is a crucial source of technology, capital and skills for developing countries for economic growth that may ultimately lead to poverty reduction, employment creation and modernisation. However, results from many studies have been inconclusive and have failed to find a direct link between the increase of FDI and the associated socio-economic development of recipient nations. South Africa is no exception to this debate as it seeks to turn its back on decades long apartheid, which has entrenched poverty in the majority of its population and exacerbated social tensions. The main socio-economic challenges that South Africa faces include high unemployment, skills shortages, poverty and high inequality, and the 2008/2009 global financial and economic crisis has exacerbated the crisis. Despite these challenges South Africa‘s macro-economic strategies have had a good reputation since 2000. The monetary policy has turned out to be more transparent and predictable, and a sound fiscal policy has sustained its framework. The study analyses the role that FDI plays in the socio-economic development of South Africa since 1995 by focusing on selected case studies: ABSA Bank, General Motors South Africa (GMSA) and the Mining Sector of South Africa. The research concludes that although ABSA Bank has implemented several corporate social responsibility (CSR), and various employee development programmes, there is hardly any evidence to suggest that Barclays Bank‘s takeover of ABSA Bank has positively impacted on these programmes. General Motors South Africa (GMSA), which came into South Africa many decades ago through a Greenfield Investment, has played a positive role in the economy of the Eastern Cape Province as well as that of South Africa, having created jobs directly and indirectly. The company has also designed and implemented various educational, housing as well as health and awareness programmes for its employees and for the communities. Mining companies that operate in South Africa formed partnerships in the communities in which they operate in an effort to improve the lives of people. While these various projects have been a source of employment, they have had a limited impact on the core causes of social problems surrounding the mines. Many of these root causes relate to core business practices of the mining companies, especially employee recruitment, wages and housing. These root causes where witnessed in the Lonmin tragedy and in other strikes that spread throughout the sector in 2012. The study concludes that although FDI does play a role in the socio-economic development of South Africa, especially Greenfield investment, the same argument could not be made on Mergers and acquisitions (M&As). Finally, the South African government needs to play a proactive role in ensuring that foreign companies that invest in the country need to be well aware of the socio-economic needs of South Africa, and be willing to play a positive role in that regard.
- Full Text:
- Date Issued: 2013
The second transition : an analysis of the political rhetoric of the ANC and ANCYL
- Authors: Maseko, Thulani Norman
- Date: 2013
- Subjects: African National Congress , African National Congress -- Youth League , Rhetoric -- Political aspects , South Africa -- Economic policy , South Africa -- Politics and government -- 1994-
- Language: English
- Type: Thesis , Masters , MPhil
- Identifier: vital:8343 , http://hdl.handle.net/10948/d1020760
- Description: South Africa achieved its formal democracy through a negotiated settlement in 1994. Formal democracy focuses on liberty, rights and basic freedom such as freedom of speech, and the right to vote, amongst others, while substantive democracy focuses on equality, social justice, and the area of economic rights with a focus on reduction of poverty, unemployment and increased equality. It is within the substantive democratisation theoretical framework, that South Africa’s democratic achievement has not necessarily been as great as its political achievements in constructing a constitutional democracy. This is evident in the continued patterns of racialised inequality and poverty, as well as the increase in service delivery protest action, which can destabilise the democratic success achieved in 1994. The objective of economic development is to create an environment where people can enjoy economic stability, job security and health, and lead productive lives, on one hand. On the other hand, political development seeks to create an environment where people can enjoy peace, rule of law and freedom. Politics and economics therefore go hand in hand to attain wealth benefits for people and create a sufficient level of political stability within a transitioning context. South Africa has made some strides towards getting political stability and a democratic state, but much still needs to be done to reduce poverty, unemployment and inequality. Hence an argument stressing the need for a Second Transition or Economic CODESA has recently entered the sphere of political public debate. This project seeks to deconstruct and explain the discourse of the Second Transition and Economic CODESA. The studies found that centre to this debate are key redistributive issues. Poverty, inequality and unemployment are key substantive challenges that have the potential to undermine political stability if they are not effectively dealt with.
- Full Text:
- Date Issued: 2013
- Authors: Maseko, Thulani Norman
- Date: 2013
- Subjects: African National Congress , African National Congress -- Youth League , Rhetoric -- Political aspects , South Africa -- Economic policy , South Africa -- Politics and government -- 1994-
- Language: English
- Type: Thesis , Masters , MPhil
- Identifier: vital:8343 , http://hdl.handle.net/10948/d1020760
- Description: South Africa achieved its formal democracy through a negotiated settlement in 1994. Formal democracy focuses on liberty, rights and basic freedom such as freedom of speech, and the right to vote, amongst others, while substantive democracy focuses on equality, social justice, and the area of economic rights with a focus on reduction of poverty, unemployment and increased equality. It is within the substantive democratisation theoretical framework, that South Africa’s democratic achievement has not necessarily been as great as its political achievements in constructing a constitutional democracy. This is evident in the continued patterns of racialised inequality and poverty, as well as the increase in service delivery protest action, which can destabilise the democratic success achieved in 1994. The objective of economic development is to create an environment where people can enjoy economic stability, job security and health, and lead productive lives, on one hand. On the other hand, political development seeks to create an environment where people can enjoy peace, rule of law and freedom. Politics and economics therefore go hand in hand to attain wealth benefits for people and create a sufficient level of political stability within a transitioning context. South Africa has made some strides towards getting political stability and a democratic state, but much still needs to be done to reduce poverty, unemployment and inequality. Hence an argument stressing the need for a Second Transition or Economic CODESA has recently entered the sphere of political public debate. This project seeks to deconstruct and explain the discourse of the Second Transition and Economic CODESA. The studies found that centre to this debate are key redistributive issues. Poverty, inequality and unemployment are key substantive challenges that have the potential to undermine political stability if they are not effectively dealt with.
- Full Text:
- Date Issued: 2013
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