Foreign Direct Investment in SADC: Role of Soft and Hard Infrastructure
- Authors: Manamike, Taonga
- Date: 2022-04
- Subjects: Investments, Foreign , Southern African Development Community
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10948/57831 , vital:58275
- Description: The study analyses the role that hard and soft infrastructure plays in attracting FDI inflows in the SADC region. As proxy for soft infrastructure, Internet users and governance indicators were used. Panel data was used for the analysis, for sixteen SADC member states, covering the period 2000 to 2018. Data was analysed using the multiple linear regression technique, applying the Random Effects Model. The results show that for soft infrastructure, government effectiveness (positive) and rule of law (negative) plays a vital and significant role in attracting FDI inflows into the SADC region. For hard infrastructure, telephone density and gross capital formation have a positive relationship with FDI. Soft infrastructure was found to be of more significance in attracting FDI inflows compared to hard infrastructure. Other variables, such as population growth rate, market size and trade openness were also found to have a significant relationship with FDI inflows in the SADC region. The study concludes that, although soft infrastructure plays a more significant role the two forms of infrastructure play a complimentary role in the attraction of FDI. To improve FDI inflows in SADC, the study recommended that SADC member states must dwell more on improving soft infrastructure, but also working on hard infrastructure development and making policies that attract FDI in the region. SADC countries should consider consolidating their policies towards both soft and hard infrastructures to obtain some form of convergence on infrastructural levels within the region. , Thesis (MA) -- Faculty of Business and Economic science, 2022
- Full Text:
- Date Issued: 2022-04
- Authors: Manamike, Taonga
- Date: 2022-04
- Subjects: Investments, Foreign , Southern African Development Community
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10948/57831 , vital:58275
- Description: The study analyses the role that hard and soft infrastructure plays in attracting FDI inflows in the SADC region. As proxy for soft infrastructure, Internet users and governance indicators were used. Panel data was used for the analysis, for sixteen SADC member states, covering the period 2000 to 2018. Data was analysed using the multiple linear regression technique, applying the Random Effects Model. The results show that for soft infrastructure, government effectiveness (positive) and rule of law (negative) plays a vital and significant role in attracting FDI inflows into the SADC region. For hard infrastructure, telephone density and gross capital formation have a positive relationship with FDI. Soft infrastructure was found to be of more significance in attracting FDI inflows compared to hard infrastructure. Other variables, such as population growth rate, market size and trade openness were also found to have a significant relationship with FDI inflows in the SADC region. The study concludes that, although soft infrastructure plays a more significant role the two forms of infrastructure play a complimentary role in the attraction of FDI. To improve FDI inflows in SADC, the study recommended that SADC member states must dwell more on improving soft infrastructure, but also working on hard infrastructure development and making policies that attract FDI in the region. SADC countries should consider consolidating their policies towards both soft and hard infrastructures to obtain some form of convergence on infrastructural levels within the region. , Thesis (MA) -- Faculty of Business and Economic science, 2022
- Full Text:
- Date Issued: 2022-04
The contribution of international financial institutions to economic development in SADC countries
- Authors: Galaga, Unathi
- Date: 2022-04
- Subjects: Economic development , Financial institutions, International , Southern African Development Community
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10948/57665 , vital:58193
- Description: Although African governments have a significant role to perform in developing the continent, International financial institutions (IFIs) also perform a dominant role in economic development but their role in African development is often viewed as controversial and contradictory. In the 20th century, the World Bank and the IMF were vital IFIs that characterised global policies that regulated global economies, subjecting weaker economies to SAP. This necessitated African states to borrow money to ensure stabilisation, liberalisation, deregulation and the privatisation of most sectors. This study econometrically examined the impact of foreign aid on economic development in SADC countries. Panel regression techniques were employed to analyse the contribution of international financial institutions to economic development in SADC countries. The results indicated that there is an insignificant relationship between foreign aid and economic development, which implies that foreign aid does not contribute to economic development in SADC countries. Based on this finding, the study recommends that Southern African Governments find ways of financing development that guarantee economic growth. , Thesis (MA) -- Faculty of Business and Economic science , 2022
- Full Text:
- Date Issued: 2022-04
- Authors: Galaga, Unathi
- Date: 2022-04
- Subjects: Economic development , Financial institutions, International , Southern African Development Community
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10948/57665 , vital:58193
- Description: Although African governments have a significant role to perform in developing the continent, International financial institutions (IFIs) also perform a dominant role in economic development but their role in African development is often viewed as controversial and contradictory. In the 20th century, the World Bank and the IMF were vital IFIs that characterised global policies that regulated global economies, subjecting weaker economies to SAP. This necessitated African states to borrow money to ensure stabilisation, liberalisation, deregulation and the privatisation of most sectors. This study econometrically examined the impact of foreign aid on economic development in SADC countries. Panel regression techniques were employed to analyse the contribution of international financial institutions to economic development in SADC countries. The results indicated that there is an insignificant relationship between foreign aid and economic development, which implies that foreign aid does not contribute to economic development in SADC countries. Based on this finding, the study recommends that Southern African Governments find ways of financing development that guarantee economic growth. , Thesis (MA) -- Faculty of Business and Economic science , 2022
- Full Text:
- Date Issued: 2022-04
A quantitative analysis of the relationship between the 12 components of the Index of Economic Freedom (IEF) and the Human Development Index (HDI) scores within the 16 Southern African Development Community (SADC) nations
- Authors: Peel, Brendon Robert
- Date: 2021-10-29
- Subjects: Southern African Development Community , Quantitative research , Economic development Developing countries , Economic development Africa, Sub-Saharan , Economic development projects Africa, Sub-Saharan , Heritage Foundation (South Africa) , United Nations Development Programme , Index of Economic Freedom (IEF) , Human Development Index (HDI) , Resource Based Theory (RBT)
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10962/191841 , vital:45171
- Description: Nations in Sub-Saharan Africa tend to experience some of the worst levels of human development and economic freedom in the world. Previous research has shown that there is a positive and significant correlation between these two macroeconomic facets. Further research has shown that if nations' policy-makers can manage their resources and capabilities appropriately, then this could improve their economic freedom and human development levels. This study aims to analyse the relationship between the scores of the 12 different components of the Index of Economic Freedom (IEF) and the overall Human Development Index (HDI) scores of Sub-Saharan African nations. The specific selection of nations utilised in the study are the 16 countries that make up the Southern African Development Community (SADC). Based on a review of the literature on human development, economic freedom, and the Resource Based Theory (RBT) on a macro-level, a correlational study was conducted to determine the relationship between the relevant variables. The information was collected from the Heritage Foundation and the United Nations Development Program (UNDP), respectively. The data and scores collected and used in the study are from the years 2015 to 2019. The correlational results demonstrated that nine of the 12 components of the IEF has a positive and significant correlation with HDI within the selected African nations. The strongest correlation being between 'Property Rights' and HDI. Therefore, it is likely that if the property rights within a nation are upheld, said nation would have higher levels of human development. The three components that proved to have an insignificant result with HDI were; 'Tax Burden', 'Government Spending', and 'Fiscal Health'. The results indicate that all components that fall under the category of 'Government Size' share no significant correlational relationship with human development. It is recommended that governments and policy-makers take this into consideration when managing their resources and capabilities to improve the nation's human development. Further research is required to identify the specifics on how this management and allocation of resources can be utilised effectively to improve the human development and economic freedom in Sub-Saharan Africa. , Thesis (MBA) -- Faculty of Commerce, Rhodes Business School, 2021
- Full Text:
- Date Issued: 2021-10-29
- Authors: Peel, Brendon Robert
- Date: 2021-10-29
- Subjects: Southern African Development Community , Quantitative research , Economic development Developing countries , Economic development Africa, Sub-Saharan , Economic development projects Africa, Sub-Saharan , Heritage Foundation (South Africa) , United Nations Development Programme , Index of Economic Freedom (IEF) , Human Development Index (HDI) , Resource Based Theory (RBT)
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10962/191841 , vital:45171
- Description: Nations in Sub-Saharan Africa tend to experience some of the worst levels of human development and economic freedom in the world. Previous research has shown that there is a positive and significant correlation between these two macroeconomic facets. Further research has shown that if nations' policy-makers can manage their resources and capabilities appropriately, then this could improve their economic freedom and human development levels. This study aims to analyse the relationship between the scores of the 12 different components of the Index of Economic Freedom (IEF) and the overall Human Development Index (HDI) scores of Sub-Saharan African nations. The specific selection of nations utilised in the study are the 16 countries that make up the Southern African Development Community (SADC). Based on a review of the literature on human development, economic freedom, and the Resource Based Theory (RBT) on a macro-level, a correlational study was conducted to determine the relationship between the relevant variables. The information was collected from the Heritage Foundation and the United Nations Development Program (UNDP), respectively. The data and scores collected and used in the study are from the years 2015 to 2019. The correlational results demonstrated that nine of the 12 components of the IEF has a positive and significant correlation with HDI within the selected African nations. The strongest correlation being between 'Property Rights' and HDI. Therefore, it is likely that if the property rights within a nation are upheld, said nation would have higher levels of human development. The three components that proved to have an insignificant result with HDI were; 'Tax Burden', 'Government Spending', and 'Fiscal Health'. The results indicate that all components that fall under the category of 'Government Size' share no significant correlational relationship with human development. It is recommended that governments and policy-makers take this into consideration when managing their resources and capabilities to improve the nation's human development. Further research is required to identify the specifics on how this management and allocation of resources can be utilised effectively to improve the human development and economic freedom in Sub-Saharan Africa. , Thesis (MBA) -- Faculty of Commerce, Rhodes Business School, 2021
- Full Text:
- Date Issued: 2021-10-29
Effects of different levels of education and government spending on economic growth
- Authors: Malangeni, Luxolo Mihle
- Date: 2021-04
- Subjects: Southern African Development Community , Economic development -- Africa , Economics -- Africa
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10948/51842 , vital:43377
- Description: This study investigates the impact of the level of education and education spending on economic growth in the Southern African development community (SADC) using annual panel data from 1995 to 2017 using the FMOSLS and DOLS cointegration estimators. Three levels of education are identified in study (primary, secondary and tertiary). Moreover, we create an index of government spending on education corresponding to these three levels of education. The empirical results suggest that there is a positive long-term relationship between secondary education and economic growth but not for other levels of education. Moreover, it is found that only government spending at primary and secondary education contribute to economic growth. The causality analysis for confirm that only secondary education affects economic growth and is affected by government spending on education. Policy implications of the study are discussed. Government should be careful in managing the public spending on education in a way to increase the skilled labor. Education Policies must be drive based on principle. Professional schools must be first priority in education policies in the region. Government should direct the public expenditures on education towards productive sectors that will contribute in improving the standard of living contributing so on economic growth. , Thesis (MCom) -- Faculty of Business and Economic Sciences, Economics, 2021
- Full Text:
- Date Issued: 2021-04
- Authors: Malangeni, Luxolo Mihle
- Date: 2021-04
- Subjects: Southern African Development Community , Economic development -- Africa , Economics -- Africa
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10948/51842 , vital:43377
- Description: This study investigates the impact of the level of education and education spending on economic growth in the Southern African development community (SADC) using annual panel data from 1995 to 2017 using the FMOSLS and DOLS cointegration estimators. Three levels of education are identified in study (primary, secondary and tertiary). Moreover, we create an index of government spending on education corresponding to these three levels of education. The empirical results suggest that there is a positive long-term relationship between secondary education and economic growth but not for other levels of education. Moreover, it is found that only government spending at primary and secondary education contribute to economic growth. The causality analysis for confirm that only secondary education affects economic growth and is affected by government spending on education. Policy implications of the study are discussed. Government should be careful in managing the public spending on education in a way to increase the skilled labor. Education Policies must be drive based on principle. Professional schools must be first priority in education policies in the region. Government should direct the public expenditures on education towards productive sectors that will contribute in improving the standard of living contributing so on economic growth. , Thesis (MCom) -- Faculty of Business and Economic Sciences, Economics, 2021
- Full Text:
- Date Issued: 2021-04
Interest rate liberalisation and economic growth in SADC countries
- Authors: Moyo, Clement Zibusiso
- Date: 2018
- Subjects: Southern African Development Community , Economic development -- Africa, Southern Developing countries -- Economic conditions
- Language: English
- Type: Thesis , Doctoral , DPhil
- Identifier: http://hdl.handle.net/10948/22791 , vital:30087
- Description: The pioneers of financial liberalisation, McKinnon (1973) and Shaw (1973) argue that inter-est rates determined by market forces have a positive effect on economic growth rates. Inter-est rates that are kept at low levels through the intervention of a central bank discourage sav-ings and capital accumulation, and distort the allocation of resources. Interest rate liberalisa-tion results in higher real interest rates which could have a positive effect on savings, invest-ments and economic growth (Ang & McKibbin 2007). Interest rate liberalisation also reduces capital flight and encourages capital inflows by increasing return for investors which supple-ments domestic investments. Shaw (1973) argued that interest rate liberalisation promotes financial development by encouraging savings and increasing the availability of funds for lending purposes. The study provides an empirical analysis of the channels through which interest rate liberalisation impacts on economic growth in SADC countries for the period 1990 to 2015. The study is motivated by the concerns on the impact of interest rate liberalisation on eco-nomic growth in the period after the 2008-’09 global financial crisis as well as concerns that interest rate liberalisation increases the likelihood of financial crises. Higher interest rates resulting from interest rate liberalisation may increase the likelihood of financial crises by encouraging risk-taking on the part of banks in an attempt to take advantage of higher returns. Authorities in most countries have reduced interest rates in an attempt to boost aggregate demand, which is expected to speed up the recovery from the crisis. However, the lowering of interest rates may result in a decrease in savings and investments, which are the main drivers of long-term economic growth. Real interest rates below equilibrium may encourage banks to take more risks in their lending practices in order to earn higher returns which may result in an increase in non-performing loans. The influence of interest rates on financial crises has thus received considerable attention since the onset of the 2008-’09 global financial crisis and this thesis contributes to the literature by determining how interest rates impact on economic growth in SADC countries and whether interest rate liberalisation increases the likelihood of financial crises. The study examines the relationship between interest rate liberalisation and economic growth through different channels. These include savings and investments, capital flows and finan-cial development. The study uses the Pooled Mean Group (PMG) estimator proposed by Pesaran et al (1999) to estimate the effect of interest rate liberalisation on economic growth through the abovementioned channels. The study also examines whether interest rate liberalisation increases the likelihood of financial crises. This is estimated using the logit model, due to the binary nature of the dependent variable. The results provide limited support for the McKinnon and Shaw hypothesis. Interest rate liberalisation has a positive effect on economic growth through higher savings and investments. Interest rate liberalisation has a positive outcome on capital inflows, which indicates that the prospect of earning higher returns encourages foreign investors to invest in the domestic economy. However, capital inflows do not enhance economic growth. This could be due to the low levels of human capital in SADC countries. Interest rate liberalisation boosts financial development through higher savings and invest-ments. However, financial development has a negative effect on economic growth because of the link between financial development and financial crises. The results show that interest rate liberalisation decreases the likelihood of financial crises directly, however, it increases the probability of financial crises indirectly through financial development. This suggests that the major cause of financial crises in the region is the low levels of institutional quality and lack of adequate supervisory frameworks to monitor the functioning of the financial system. Therefore, the results imply that the negative impact of interest rate liberalisation may outweigh the positive effect of higher savings and investments in SADC countries. A number of policy recommendations can be drawn from the study. Liberalisation of interest rates has a positive effect on economic growth through savings and investments. However improving the levels of institutional quality is vital for preventing financial crises. Interest rate liberalisation may not have a direct influence on financial crises, but higher levels of fi-nancial development emanating from higher interest rates increase the likelihood of financial crises. Therefore, a sound monitoring framework is necessary for the benefits of financial liberalisation to be realised. Also, investment in education, training and research and development is a necessity so as to increase levels of human capital, which in turn may allow the region to reap the benefits of capital inflows.
- Full Text:
- Date Issued: 2018
- Authors: Moyo, Clement Zibusiso
- Date: 2018
- Subjects: Southern African Development Community , Economic development -- Africa, Southern Developing countries -- Economic conditions
- Language: English
- Type: Thesis , Doctoral , DPhil
- Identifier: http://hdl.handle.net/10948/22791 , vital:30087
- Description: The pioneers of financial liberalisation, McKinnon (1973) and Shaw (1973) argue that inter-est rates determined by market forces have a positive effect on economic growth rates. Inter-est rates that are kept at low levels through the intervention of a central bank discourage sav-ings and capital accumulation, and distort the allocation of resources. Interest rate liberalisa-tion results in higher real interest rates which could have a positive effect on savings, invest-ments and economic growth (Ang & McKibbin 2007). Interest rate liberalisation also reduces capital flight and encourages capital inflows by increasing return for investors which supple-ments domestic investments. Shaw (1973) argued that interest rate liberalisation promotes financial development by encouraging savings and increasing the availability of funds for lending purposes. The study provides an empirical analysis of the channels through which interest rate liberalisation impacts on economic growth in SADC countries for the period 1990 to 2015. The study is motivated by the concerns on the impact of interest rate liberalisation on eco-nomic growth in the period after the 2008-’09 global financial crisis as well as concerns that interest rate liberalisation increases the likelihood of financial crises. Higher interest rates resulting from interest rate liberalisation may increase the likelihood of financial crises by encouraging risk-taking on the part of banks in an attempt to take advantage of higher returns. Authorities in most countries have reduced interest rates in an attempt to boost aggregate demand, which is expected to speed up the recovery from the crisis. However, the lowering of interest rates may result in a decrease in savings and investments, which are the main drivers of long-term economic growth. Real interest rates below equilibrium may encourage banks to take more risks in their lending practices in order to earn higher returns which may result in an increase in non-performing loans. The influence of interest rates on financial crises has thus received considerable attention since the onset of the 2008-’09 global financial crisis and this thesis contributes to the literature by determining how interest rates impact on economic growth in SADC countries and whether interest rate liberalisation increases the likelihood of financial crises. The study examines the relationship between interest rate liberalisation and economic growth through different channels. These include savings and investments, capital flows and finan-cial development. The study uses the Pooled Mean Group (PMG) estimator proposed by Pesaran et al (1999) to estimate the effect of interest rate liberalisation on economic growth through the abovementioned channels. The study also examines whether interest rate liberalisation increases the likelihood of financial crises. This is estimated using the logit model, due to the binary nature of the dependent variable. The results provide limited support for the McKinnon and Shaw hypothesis. Interest rate liberalisation has a positive effect on economic growth through higher savings and investments. Interest rate liberalisation has a positive outcome on capital inflows, which indicates that the prospect of earning higher returns encourages foreign investors to invest in the domestic economy. However, capital inflows do not enhance economic growth. This could be due to the low levels of human capital in SADC countries. Interest rate liberalisation boosts financial development through higher savings and invest-ments. However, financial development has a negative effect on economic growth because of the link between financial development and financial crises. The results show that interest rate liberalisation decreases the likelihood of financial crises directly, however, it increases the probability of financial crises indirectly through financial development. This suggests that the major cause of financial crises in the region is the low levels of institutional quality and lack of adequate supervisory frameworks to monitor the functioning of the financial system. Therefore, the results imply that the negative impact of interest rate liberalisation may outweigh the positive effect of higher savings and investments in SADC countries. A number of policy recommendations can be drawn from the study. Liberalisation of interest rates has a positive effect on economic growth through savings and investments. However improving the levels of institutional quality is vital for preventing financial crises. Interest rate liberalisation may not have a direct influence on financial crises, but higher levels of fi-nancial development emanating from higher interest rates increase the likelihood of financial crises. Therefore, a sound monitoring framework is necessary for the benefits of financial liberalisation to be realised. Also, investment in education, training and research and development is a necessity so as to increase levels of human capital, which in turn may allow the region to reap the benefits of capital inflows.
- Full Text:
- Date Issued: 2018
Regional value chains and development integration in the SADC Region: the case of the pharmaceutical industry
- Authors: Faydherbe, Sean
- Date: 2018
- Subjects: Pharmaceutical industry -- Africa, Southern , Southern African Development Community , Africa, Southern -- Economic integration , Regional value chains (RVCs) , Global value chains (GVCs)
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/62906 , vital:28309
- Description: This thesis investigates how regional value chains (RVCs) can be used to further development integration in the Southern African Development Community (SADC) region with a focus on the pharmaceutical manufacturing industry. The study is motivated by the apparent lack of attention given to the development of the pharmaceutical manufacturing industry in Southern Africa, the region’s high disease burden and the identification of the industry as economically and socially important by the SADC (2015) Industrialisation Strategy and Roadmap and the Department of Trade and Industry (DTI) (2017a) Industrial Policy Action Plan (IPAP). At the same time, South Africa and other countries in the region are exploring alternative approaches to regional integration, given the failure or stagnation of numerous formal integration arrangements throughout Africa, which have often lead to polarised rather than balanced development. This thesis argues that the development of RVCs within SADC may be an effective tool for development integration in the region, particularly in sectors such as pharmaceuticals. The study employs a value chain framework for the analysis and discusses development integration options, drawing on the East Asian experience with RVCs and on case studies involving India in the case of the pharmaceutical industry. It provides a sector profile of the industry in South Africa, due to its dominant status in the region, and also of Zimbabwe, due to that country’s potential to become a pharmaceutical industry leader in the region once again. The thesis first explores the important theoretical aspects underlying value chain analysis, namely governance and upgrading, while also outlining the rise of global value chains (GVCs). It analyses the complex relationships between RVCs and GVCs, and RVCs and regional integration. From this it concludes that RVCs are a stepping stone to participation in GVCs and that RVCs should be promoted within a development integration framework through strong regional cooperation. Value chain analysis is applied to the entire pharmaceutical manufacturing industry with a focus on SADC. The thesis examines how the sector is evolving with manufacturing multinational corporations (MNCs) outsourcing production and setting up centres of excellence in regional production hubs. The study argues that with the application of recommended policies, RVCs in sectors such as pharmaceutical manufacturing may provide a tool for achieving balanced development in the region. However, the study also finds that the pharmaceutical industry in SADC lags a long way behind the rest of the world and that many countries and firms will need to begin at the bottom of the value chain, with formulation, in order to contribute to the development of RVCs. The thesis concludes with recommendations on what policies are needed to foster the growth and development of pharmaceutical RVCs in the SADC region. These include strengthening public procurement, providing incentives for investment into the industry, incremental production and incremental export volumes, as well as certainty and predictability around the regulatory and business environment. Further, policy should aim to construct synergies and linkages on the ground between health systems and industrial developments; regulate service links important to pharmaceutical manufacturing; develop a coherent regional policy agenda; remove unnecessary non-tariff barriers to trade in the region and, in line with development integration, implement trade policy along with trade infrastructure that is efficient and includes airports, rail, roads and ports, as well as effective access to the internet.
- Full Text:
- Date Issued: 2018
- Authors: Faydherbe, Sean
- Date: 2018
- Subjects: Pharmaceutical industry -- Africa, Southern , Southern African Development Community , Africa, Southern -- Economic integration , Regional value chains (RVCs) , Global value chains (GVCs)
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/62906 , vital:28309
- Description: This thesis investigates how regional value chains (RVCs) can be used to further development integration in the Southern African Development Community (SADC) region with a focus on the pharmaceutical manufacturing industry. The study is motivated by the apparent lack of attention given to the development of the pharmaceutical manufacturing industry in Southern Africa, the region’s high disease burden and the identification of the industry as economically and socially important by the SADC (2015) Industrialisation Strategy and Roadmap and the Department of Trade and Industry (DTI) (2017a) Industrial Policy Action Plan (IPAP). At the same time, South Africa and other countries in the region are exploring alternative approaches to regional integration, given the failure or stagnation of numerous formal integration arrangements throughout Africa, which have often lead to polarised rather than balanced development. This thesis argues that the development of RVCs within SADC may be an effective tool for development integration in the region, particularly in sectors such as pharmaceuticals. The study employs a value chain framework for the analysis and discusses development integration options, drawing on the East Asian experience with RVCs and on case studies involving India in the case of the pharmaceutical industry. It provides a sector profile of the industry in South Africa, due to its dominant status in the region, and also of Zimbabwe, due to that country’s potential to become a pharmaceutical industry leader in the region once again. The thesis first explores the important theoretical aspects underlying value chain analysis, namely governance and upgrading, while also outlining the rise of global value chains (GVCs). It analyses the complex relationships between RVCs and GVCs, and RVCs and regional integration. From this it concludes that RVCs are a stepping stone to participation in GVCs and that RVCs should be promoted within a development integration framework through strong regional cooperation. Value chain analysis is applied to the entire pharmaceutical manufacturing industry with a focus on SADC. The thesis examines how the sector is evolving with manufacturing multinational corporations (MNCs) outsourcing production and setting up centres of excellence in regional production hubs. The study argues that with the application of recommended policies, RVCs in sectors such as pharmaceutical manufacturing may provide a tool for achieving balanced development in the region. However, the study also finds that the pharmaceutical industry in SADC lags a long way behind the rest of the world and that many countries and firms will need to begin at the bottom of the value chain, with formulation, in order to contribute to the development of RVCs. The thesis concludes with recommendations on what policies are needed to foster the growth and development of pharmaceutical RVCs in the SADC region. These include strengthening public procurement, providing incentives for investment into the industry, incremental production and incremental export volumes, as well as certainty and predictability around the regulatory and business environment. Further, policy should aim to construct synergies and linkages on the ground between health systems and industrial developments; regulate service links important to pharmaceutical manufacturing; develop a coherent regional policy agenda; remove unnecessary non-tariff barriers to trade in the region and, in line with development integration, implement trade policy along with trade infrastructure that is efficient and includes airports, rail, roads and ports, as well as effective access to the internet.
- Full Text:
- Date Issued: 2018
The regulation of subsidies and regional trade among developing countries in the multilateral trading system: the case of export processing zones in Malawi
- Authors: Chirwa, Watson Pajanji
- Date: 2018
- Subjects: Trade regulation -- Malawi , Subsidies -- Law and legislation -- Malawi , Southern African Development Community , Common Market for Eastern and Southern Africa , Foreign trade regulation -- Malawi , Export processing zones -- Law and legislation -- Malawi
- Language: English
- Type: text , Thesis , Masters , LLM
- Identifier: http://hdl.handle.net/10962/62428 , vital:28175
- Description: The paradigm shift engaged by countries in SADC and COMESA, such as Malawi, from the use of import substitution policies which were aimed at protecting their infant industries, to export led growth strategies, necessitated these developing countries to liberalise their economies. The liberalisation of these economies meant that, for them to attain development, they needed to trade more on the international market. However, with underdeveloped industries and a lack of local entrepreneurs who could provide export supplies to fill the void created by the liberalisation policies, developing countries had to look beyond their borders for investors. In pursuit of this objective, governments have been devising ways of attracting foreign direct investment which can stimulate export growth. One of the methods employed is the granting of investment incentives to would-be investors. Unlike developed countries who provide investment incentives in the form of financial incentives, developing countries grant fiscal incentives. These are incentives that reduce tax burdens of enterprises to induce them to invest in particular projects or sectors. One of the mediums of providing the incentives adopted by the developing countries is the use of EPZ schemes. EPZs provide incentives such as exemptions of direct and indirect taxes to companies that operate in the zones. However, being Members of the WTO and SADC and/or COMESA, these countries are bound by obligations regulating trade and investment as found in these Agreements. The expectation is that the fiscal incentives employed in the EPZs do not grant subsidies that are prohibited under the SCM Agreement and rules regulating subsidies in SADC and COMESA. In addition, even though the use of EPZs is not expressly proscribed under the SADC Protocol on Trade, it may be against the objectives of the Protocol - one of which is the pursuance of the inter-jurisdictional goal of cooperation in attainment of free trade among its members. Therefore, this study assesses whether the use of EPZs by some countries in the two RTAs (particularly Malawi) is in tandem with the subsidies regulation as found in the multilateral trading system and at regional level. It also assesses whether, if there is a breach of the same, it might be justified as part of the special and differential treatment accorded to developing countries by developed countries under the WTO. The study further assesses whether the use of EPZs might be against the spirit and objects of FTAs such as SADC.
- Full Text:
- Date Issued: 2018
- Authors: Chirwa, Watson Pajanji
- Date: 2018
- Subjects: Trade regulation -- Malawi , Subsidies -- Law and legislation -- Malawi , Southern African Development Community , Common Market for Eastern and Southern Africa , Foreign trade regulation -- Malawi , Export processing zones -- Law and legislation -- Malawi
- Language: English
- Type: text , Thesis , Masters , LLM
- Identifier: http://hdl.handle.net/10962/62428 , vital:28175
- Description: The paradigm shift engaged by countries in SADC and COMESA, such as Malawi, from the use of import substitution policies which were aimed at protecting their infant industries, to export led growth strategies, necessitated these developing countries to liberalise their economies. The liberalisation of these economies meant that, for them to attain development, they needed to trade more on the international market. However, with underdeveloped industries and a lack of local entrepreneurs who could provide export supplies to fill the void created by the liberalisation policies, developing countries had to look beyond their borders for investors. In pursuit of this objective, governments have been devising ways of attracting foreign direct investment which can stimulate export growth. One of the methods employed is the granting of investment incentives to would-be investors. Unlike developed countries who provide investment incentives in the form of financial incentives, developing countries grant fiscal incentives. These are incentives that reduce tax burdens of enterprises to induce them to invest in particular projects or sectors. One of the mediums of providing the incentives adopted by the developing countries is the use of EPZ schemes. EPZs provide incentives such as exemptions of direct and indirect taxes to companies that operate in the zones. However, being Members of the WTO and SADC and/or COMESA, these countries are bound by obligations regulating trade and investment as found in these Agreements. The expectation is that the fiscal incentives employed in the EPZs do not grant subsidies that are prohibited under the SCM Agreement and rules regulating subsidies in SADC and COMESA. In addition, even though the use of EPZs is not expressly proscribed under the SADC Protocol on Trade, it may be against the objectives of the Protocol - one of which is the pursuance of the inter-jurisdictional goal of cooperation in attainment of free trade among its members. Therefore, this study assesses whether the use of EPZs by some countries in the two RTAs (particularly Malawi) is in tandem with the subsidies regulation as found in the multilateral trading system and at regional level. It also assesses whether, if there is a breach of the same, it might be justified as part of the special and differential treatment accorded to developing countries by developed countries under the WTO. The study further assesses whether the use of EPZs might be against the spirit and objects of FTAs such as SADC.
- Full Text:
- Date Issued: 2018
Trading with selected SADC countries and economic growth in South Africa
- Authors: Malimba, Nwabisa
- Date: 2018
- Subjects: Southern African Development Community , Economic development -- South Africa South Africa -- Economic conditions -- 1991 Economic development -- Africa, Southern
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/31962 , vital:31867
- Description: This study empirically evaluates the impact of trading with SADC countries on the economic growth of South Africa (2010 -2016). The study used Fixed Effects Model to determine the relationship between economic growth of South Africa and the selected explanatory variables. The study made use of annual panel data from World Bank, Focus Economics and Trading economics. The relationship between South Africa’s economic growth and its determinants was examined using the procedure suggested in the literature by William (2017). Various tests were conducted to ensure that the relevant model is used and to produce reliable results. The results of a fixed effects model revealed that exports, imports and trade openness are statistically significant for South African economic growth. However, the p-values indicated that trade openness is the most statistically significant variable in explaining the variation in South African economic growth better than other explanatory variables confirm. Other variables that explained the fitness of the model for the data indicated that the model was a good fit. The implication of the results obtained from Fixed Effects model is that there was little trade between South Africa and selected SADC countries during the period under review. Trading with SADC countries has a negative effect on South African economy mainly because there was a decrease in exports to SADC over the past six years and that SADC countries still need to be more open to trade. Less intensive trading between SADC countries could be attributed to shortage of capital, infrastructure and skilled labour among SADC countries. The main trading partners of South Africa are countries that are characterised by being capital intensive and have highly skilled labour. In the light of the challenges that negatively affects trade in the SADC region, the study suggests that SADC should spell out the criteria that countries need to meet before they can become members of the union. These should be non-negotiable and ensure that member states harmonise their policies with those of SADC. The study also suggests that SADC countries should be more open to trade as it has been empirically proven that trade openness has a positive relationship with economic growth. Empirical evidence presents that countries with open, large and more developed neighbouring economies grow faster than those with closed, smaller, and less developed neighbouring economies. Trade should be intensified because there are potential gains to trading with SADC. It is further suggested that more focus should be given on work related training to improve the skills of our labour force. These suggestions are based on the belief that African countries have the ability to rescue themselves out of the vicious cycle of poverty.
- Full Text:
- Date Issued: 2018
- Authors: Malimba, Nwabisa
- Date: 2018
- Subjects: Southern African Development Community , Economic development -- South Africa South Africa -- Economic conditions -- 1991 Economic development -- Africa, Southern
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/31962 , vital:31867
- Description: This study empirically evaluates the impact of trading with SADC countries on the economic growth of South Africa (2010 -2016). The study used Fixed Effects Model to determine the relationship between economic growth of South Africa and the selected explanatory variables. The study made use of annual panel data from World Bank, Focus Economics and Trading economics. The relationship between South Africa’s economic growth and its determinants was examined using the procedure suggested in the literature by William (2017). Various tests were conducted to ensure that the relevant model is used and to produce reliable results. The results of a fixed effects model revealed that exports, imports and trade openness are statistically significant for South African economic growth. However, the p-values indicated that trade openness is the most statistically significant variable in explaining the variation in South African economic growth better than other explanatory variables confirm. Other variables that explained the fitness of the model for the data indicated that the model was a good fit. The implication of the results obtained from Fixed Effects model is that there was little trade between South Africa and selected SADC countries during the period under review. Trading with SADC countries has a negative effect on South African economy mainly because there was a decrease in exports to SADC over the past six years and that SADC countries still need to be more open to trade. Less intensive trading between SADC countries could be attributed to shortage of capital, infrastructure and skilled labour among SADC countries. The main trading partners of South Africa are countries that are characterised by being capital intensive and have highly skilled labour. In the light of the challenges that negatively affects trade in the SADC region, the study suggests that SADC should spell out the criteria that countries need to meet before they can become members of the union. These should be non-negotiable and ensure that member states harmonise their policies with those of SADC. The study also suggests that SADC countries should be more open to trade as it has been empirically proven that trade openness has a positive relationship with economic growth. Empirical evidence presents that countries with open, large and more developed neighbouring economies grow faster than those with closed, smaller, and less developed neighbouring economies. Trade should be intensified because there are potential gains to trading with SADC. It is further suggested that more focus should be given on work related training to improve the skills of our labour force. These suggestions are based on the belief that African countries have the ability to rescue themselves out of the vicious cycle of poverty.
- Full Text:
- Date Issued: 2018
The development of a green energy sector model for the Southern African Development Community (SADC)
- Ramagoma, Mbavhalelo Justice
- Authors: Ramagoma, Mbavhalelo Justice
- Date: 2016
- Subjects: Southern African Development Community , Clean energy industries , Climatic changes , Greenhouse gases
- Language: English
- Type: Thesis , Doctoral , DBA
- Identifier: http://hdl.handle.net/10948/5422 , vital:20839
- Description: The Southern African Development Community (SADC) region, like most parts of the African continent, faces significant modern energy services access challenges. It is estimated that less than 45% of the SADC region’s populace have access to reliable modern energy forms and the situation is worse in rural areas where access is approximately 30%. Poor energy security is exacerbated by electricity power cuts and load shedding in almost all of the member states in the region. With the advent of battery storage, all forms of green energy have the potential to contribute to the shortfall in the supply of peaking power required to meet the daily (morning and evenings) and seasonal (winter) peaks when most power is required on the grid network. The region is endowed with vast green (renewables/low carbon or clean) energy resources. The purpose of this study is to expand the empirical body of research and knowledge on factors that contribute to widespread access success to green energy in the SADC region. Investments into green energy resources require an understanding of the unique characteristics of the energy sector in the region. In order to achieve this, a conceptual theoretical model was developed and tested empirically. Factors that influence green energy access success were identified through literature reviews and discussions with energy practitioners. All identified factors were then operationalised by carefully defining them in the context of the study. In order to test the proposed theoretical model and the hypothesised relationships, a structured questionnaire was developed and sent to energy practitioners from various sections of the energy sector in the region. STATISTICA 12 was employed to analyse relationships between variables and responses between identified groups. Pearson Product Moment Correlation (Pearson r) was employed to determine correlations between variables. Conclusions about hypotheses six (6) to fifteen (15) were made based on correlations between variables. T-tests were employed to make inferences about the views of various categories of respondents with regard to the twelve (12) identified variables. Multivariate analysis of variance (MANOVA) and Analysis of variance (ANOVA) examined associations between the dependent and independent variables with the identified categories of respondents and conclusions about hypotheses one (1) to five (5) and sixteen (16) were also made. The study finds that policy and the regulatory environment are still the main driving force behind energy access in the region. Power generation is managed by authorities’ power utility companies. Unbundling of power utilities supported by new energy business and operating models to accommodate mini and off grid power plants is found to be a key to green energy access in the region. The energy market is transforming in favour of independent power producers (IPPs) and consumers will significantly influence energy access decisions in the future. Green energy power storage to overcome intermittency will feature prominently in the success of green energy access in the region. Widespread access success to green energy will be attained when green energy access is reliable, affordable, efficient, and socially acceptable, meet the demand and reduces environmental pollution. The study recommends that strategic green energy planning must incorporate green energy infrastructure development, projects finance and human capacity development as priorities amongst SADC region’s member countries. Regional energy access enabling institutions must be strengthened; energy policies implemented with vigour and private sector participation enhanced in an integrated energy market.
- Full Text:
- Date Issued: 2016
The development of a green energy sector model for the Southern African Development Community (SADC)
- Authors: Ramagoma, Mbavhalelo Justice
- Date: 2016
- Subjects: Southern African Development Community , Clean energy industries , Climatic changes , Greenhouse gases
- Language: English
- Type: Thesis , Doctoral , DBA
- Identifier: http://hdl.handle.net/10948/5422 , vital:20839
- Description: The Southern African Development Community (SADC) region, like most parts of the African continent, faces significant modern energy services access challenges. It is estimated that less than 45% of the SADC region’s populace have access to reliable modern energy forms and the situation is worse in rural areas where access is approximately 30%. Poor energy security is exacerbated by electricity power cuts and load shedding in almost all of the member states in the region. With the advent of battery storage, all forms of green energy have the potential to contribute to the shortfall in the supply of peaking power required to meet the daily (morning and evenings) and seasonal (winter) peaks when most power is required on the grid network. The region is endowed with vast green (renewables/low carbon or clean) energy resources. The purpose of this study is to expand the empirical body of research and knowledge on factors that contribute to widespread access success to green energy in the SADC region. Investments into green energy resources require an understanding of the unique characteristics of the energy sector in the region. In order to achieve this, a conceptual theoretical model was developed and tested empirically. Factors that influence green energy access success were identified through literature reviews and discussions with energy practitioners. All identified factors were then operationalised by carefully defining them in the context of the study. In order to test the proposed theoretical model and the hypothesised relationships, a structured questionnaire was developed and sent to energy practitioners from various sections of the energy sector in the region. STATISTICA 12 was employed to analyse relationships between variables and responses between identified groups. Pearson Product Moment Correlation (Pearson r) was employed to determine correlations between variables. Conclusions about hypotheses six (6) to fifteen (15) were made based on correlations between variables. T-tests were employed to make inferences about the views of various categories of respondents with regard to the twelve (12) identified variables. Multivariate analysis of variance (MANOVA) and Analysis of variance (ANOVA) examined associations between the dependent and independent variables with the identified categories of respondents and conclusions about hypotheses one (1) to five (5) and sixteen (16) were also made. The study finds that policy and the regulatory environment are still the main driving force behind energy access in the region. Power generation is managed by authorities’ power utility companies. Unbundling of power utilities supported by new energy business and operating models to accommodate mini and off grid power plants is found to be a key to green energy access in the region. The energy market is transforming in favour of independent power producers (IPPs) and consumers will significantly influence energy access decisions in the future. Green energy power storage to overcome intermittency will feature prominently in the success of green energy access in the region. Widespread access success to green energy will be attained when green energy access is reliable, affordable, efficient, and socially acceptable, meet the demand and reduces environmental pollution. The study recommends that strategic green energy planning must incorporate green energy infrastructure development, projects finance and human capacity development as priorities amongst SADC region’s member countries. Regional energy access enabling institutions must be strengthened; energy policies implemented with vigour and private sector participation enhanced in an integrated energy market.
- Full Text:
- Date Issued: 2016
Financial liberalisation and economic growth in SADC countries
- Authors: Moyo, Clement Zibusiso
- Date: 2015
- Subjects: Southern African Development Community , Economic development -- Africa, Southern
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/5748 , vital:20995
- Description: Attaining high levels of economic growth and development has been one the goals of the Southern African Development Community (SADC). This paper investigates the relationship between financial liberalisation and economic growth in SADC countries. Annual data for the 15 SADC countries for the period 1985-2011 was used to develop a fixed effect model, generalised method of moments (GMM) as well as the fully-modified OLS (FMOLS) cointegration test. The results revealed that there is a positive relationship between financial liberalisation and economic growth in SADC but there is no long-run relationship between the two variables. It is recommended that the SADC adopt measures to increase the level of financial openness in the region in order to increase economic growth but this policy should be supplemented by other growth enhancing policies in order to increase economic growth over the long-term. However, prior to the increase in the level of financial openness, well-defined property rights and a sound regulatory framework should be in place to monitor the financial liberalisation process in order to avoid financial crises.
- Full Text:
- Date Issued: 2015
- Authors: Moyo, Clement Zibusiso
- Date: 2015
- Subjects: Southern African Development Community , Economic development -- Africa, Southern
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/5748 , vital:20995
- Description: Attaining high levels of economic growth and development has been one the goals of the Southern African Development Community (SADC). This paper investigates the relationship between financial liberalisation and economic growth in SADC countries. Annual data for the 15 SADC countries for the period 1985-2011 was used to develop a fixed effect model, generalised method of moments (GMM) as well as the fully-modified OLS (FMOLS) cointegration test. The results revealed that there is a positive relationship between financial liberalisation and economic growth in SADC but there is no long-run relationship between the two variables. It is recommended that the SADC adopt measures to increase the level of financial openness in the region in order to increase economic growth but this policy should be supplemented by other growth enhancing policies in order to increase economic growth over the long-term. However, prior to the increase in the level of financial openness, well-defined property rights and a sound regulatory framework should be in place to monitor the financial liberalisation process in order to avoid financial crises.
- Full Text:
- Date Issued: 2015
New Economic Partnership for Africa's Development (NEPAD) and Africa's quest for regional economic integration: the case of Southern African Development Community (SADC)
- Authors: Chigombe, Courage
- Date: 2014
- Subjects: New Partnership for Africa's Development , Southern African Development Community , Sustainable development -- Africa, Southern , Africa, Southern -- Economic conditions , Africa -- Economic policy
- Language: English
- Type: Thesis , Masters , MA
- Identifier: http://hdl.handle.net/10353/2072 , vital:27604
- Description: Despite according high priority to regional economic integration and being clustered by regional economic schemes, Africa’s regional economic integration record is not inspiring. With the transformation of the OAU to the African Union (AU), the New Partnership for Africa`s Development (NEPAD) was adopted as the development program of the continent to drive the impetus of economic integration through trade. At the time NEPAD was adopted, regional integration schemes in Africa were facing problems of low intra-regional trade levels despite trade being identified as the engine of activity and economic growth for regional economic integration. The study was centered on Southern Africa with precise attention on SADC. Even though trade is accepted as a vital engine of economic growth and development, this is not the case with SADC. The study was looking at the contribution of NEPAD in intra-regional trade in Africa with special focus on SADC. This was prompted by the fact that regional integration is business as usual within the sub region while problems that have been confronting regional schemes are continuing unabated after the adoption of NEPAD. The study used the historical approach because it provides the study with an advantage of accessing existing literature with regards to what is really stalling intra-regional trade in SADC. The study findings noted that NEPAD has not fully addressed the problems of intra-regional trade within SADC and the continent at large. The study lastly concludes by giving a way forward for NEPAD to respond to the specific needs of SADC for the promotion of intra-regional and equitable trade.
- Full Text:
- Date Issued: 2014
- Authors: Chigombe, Courage
- Date: 2014
- Subjects: New Partnership for Africa's Development , Southern African Development Community , Sustainable development -- Africa, Southern , Africa, Southern -- Economic conditions , Africa -- Economic policy
- Language: English
- Type: Thesis , Masters , MA
- Identifier: http://hdl.handle.net/10353/2072 , vital:27604
- Description: Despite according high priority to regional economic integration and being clustered by regional economic schemes, Africa’s regional economic integration record is not inspiring. With the transformation of the OAU to the African Union (AU), the New Partnership for Africa`s Development (NEPAD) was adopted as the development program of the continent to drive the impetus of economic integration through trade. At the time NEPAD was adopted, regional integration schemes in Africa were facing problems of low intra-regional trade levels despite trade being identified as the engine of activity and economic growth for regional economic integration. The study was centered on Southern Africa with precise attention on SADC. Even though trade is accepted as a vital engine of economic growth and development, this is not the case with SADC. The study was looking at the contribution of NEPAD in intra-regional trade in Africa with special focus on SADC. This was prompted by the fact that regional integration is business as usual within the sub region while problems that have been confronting regional schemes are continuing unabated after the adoption of NEPAD. The study used the historical approach because it provides the study with an advantage of accessing existing literature with regards to what is really stalling intra-regional trade in SADC. The study findings noted that NEPAD has not fully addressed the problems of intra-regional trade within SADC and the continent at large. The study lastly concludes by giving a way forward for NEPAD to respond to the specific needs of SADC for the promotion of intra-regional and equitable trade.
- Full Text:
- Date Issued: 2014
An analysis of the Southern African Development Community (SADC) preventive diplomacy in the kingdom of Lesotho: a case study
- Authors: Bukae, Nkosi Makhonya
- Date: 2012
- Subjects: Southern African Development Community , Diplomatic negotiations in international disputes , Diplomacy , Conflict management -- Lesotho , Africa, Southern -- Politics and government , Lesotho -- Politics and government
- Language: English
- Type: Thesis , Doctoral , DPhil
- Identifier: vital:8196 , http://hdl.handle.net/10948/d1008296 , Southern African Development Community , Diplomatic negotiations in international disputes , Diplomacy , Conflict management -- Lesotho , Africa, Southern -- Politics and government , Lesotho -- Politics and government
- Description: The focus of this study is the Southern African Development Community (SADC) preventive diplomacy interventions in Lesotho in 1994, 1998 and 2007. The core aim of the study was to evaluate the efficacy of the SADC security mechanism (the Organ on Politics, Defence and Security (OPDS) in conflict prevention, management and resolution on the basis of the Lesotho experience. Data for this qualitative case study was collected through interviews and document analysis. The twenty four participants for the study were drawn from the SADC OPDS unit, Lesotho political parties, Civil Society Organisations (CSOs), Academics from the University of Botswana (UB) and the National University of Lesotho (NUL), retired Botswana Defence officers who participated in the Lesotho missions and office of the post-2007election dispute dialogue facilitator in Lesotho. Documents on the SADC Treaties, Protocols, Communiqués and interventions in other set ups were used to highlight its operational policies, mandate, structures, successes and challenges. Lesotho was chosen as a case study because SADC employed both non-coercive (SADC Troika and Eminent Person mediation, 1994 and 2007 respectively) and coercive measures (the 1998 military intervention). The findings of the study revealed that SADC as a regional body had its own successes and challenges. Different perceptions on the SADC interventions in Lesotho emerged mainly between the participants from the ruling party and the opposition parties. While the former commended SADC for successfully mitigating the calamitous effects of 1994, 1998 and 2007 post-electoral violence, the opposition parties viewed the regional organisations as engaged in illegal interference in the domestic affairs of the country to defend the incumbent governing party. It also emerged from the study that the SADC security mechanism has numerous structural and operational flaws. There were several unanswered questions revolving around the legality and mandate of some of the missions. For instance, no concrete evidence emerged as to whether the 1998 military intervention was authorised by the SADC. The study also revealed that SADC has learnt valuable lessons from the Lesotho missions. Some of the reforms which the SADC has introduced in the OPDS such as the establishment of the SADC Stand by Force, Early Warning structures, the Mediation Unit, and a panel of expert mediators emanated mainly from the Lesotho experiences. The study recommends that SADC needs to harmonise the efforts of its OPDS structures such as the Mediation Unit; the Troika; the Inter-State Defence and Security Committee (ISDSC); the Inter-State Politics and Diplomacy Committee (ISPDC) and the Summit of Heads of States and Governments for rapid, coherent and well coordinated interventions in future regional preventive missions. It is also recommended that SADC should focus on identifying and mitigating underlying causal factors such as underdevelopment; poverty; deprivation of freedoms, marginalisation and other forms of social stratifications and oppression in its preventive diplomacy missions if durable peace is to be achieved in Lesotho and any other future cases.
- Full Text:
- Date Issued: 2012
- Authors: Bukae, Nkosi Makhonya
- Date: 2012
- Subjects: Southern African Development Community , Diplomatic negotiations in international disputes , Diplomacy , Conflict management -- Lesotho , Africa, Southern -- Politics and government , Lesotho -- Politics and government
- Language: English
- Type: Thesis , Doctoral , DPhil
- Identifier: vital:8196 , http://hdl.handle.net/10948/d1008296 , Southern African Development Community , Diplomatic negotiations in international disputes , Diplomacy , Conflict management -- Lesotho , Africa, Southern -- Politics and government , Lesotho -- Politics and government
- Description: The focus of this study is the Southern African Development Community (SADC) preventive diplomacy interventions in Lesotho in 1994, 1998 and 2007. The core aim of the study was to evaluate the efficacy of the SADC security mechanism (the Organ on Politics, Defence and Security (OPDS) in conflict prevention, management and resolution on the basis of the Lesotho experience. Data for this qualitative case study was collected through interviews and document analysis. The twenty four participants for the study were drawn from the SADC OPDS unit, Lesotho political parties, Civil Society Organisations (CSOs), Academics from the University of Botswana (UB) and the National University of Lesotho (NUL), retired Botswana Defence officers who participated in the Lesotho missions and office of the post-2007election dispute dialogue facilitator in Lesotho. Documents on the SADC Treaties, Protocols, Communiqués and interventions in other set ups were used to highlight its operational policies, mandate, structures, successes and challenges. Lesotho was chosen as a case study because SADC employed both non-coercive (SADC Troika and Eminent Person mediation, 1994 and 2007 respectively) and coercive measures (the 1998 military intervention). The findings of the study revealed that SADC as a regional body had its own successes and challenges. Different perceptions on the SADC interventions in Lesotho emerged mainly between the participants from the ruling party and the opposition parties. While the former commended SADC for successfully mitigating the calamitous effects of 1994, 1998 and 2007 post-electoral violence, the opposition parties viewed the regional organisations as engaged in illegal interference in the domestic affairs of the country to defend the incumbent governing party. It also emerged from the study that the SADC security mechanism has numerous structural and operational flaws. There were several unanswered questions revolving around the legality and mandate of some of the missions. For instance, no concrete evidence emerged as to whether the 1998 military intervention was authorised by the SADC. The study also revealed that SADC has learnt valuable lessons from the Lesotho missions. Some of the reforms which the SADC has introduced in the OPDS such as the establishment of the SADC Stand by Force, Early Warning structures, the Mediation Unit, and a panel of expert mediators emanated mainly from the Lesotho experiences. The study recommends that SADC needs to harmonise the efforts of its OPDS structures such as the Mediation Unit; the Troika; the Inter-State Defence and Security Committee (ISDSC); the Inter-State Politics and Diplomacy Committee (ISPDC) and the Summit of Heads of States and Governments for rapid, coherent and well coordinated interventions in future regional preventive missions. It is also recommended that SADC should focus on identifying and mitigating underlying causal factors such as underdevelopment; poverty; deprivation of freedoms, marginalisation and other forms of social stratifications and oppression in its preventive diplomacy missions if durable peace is to be achieved in Lesotho and any other future cases.
- Full Text:
- Date Issued: 2012
Macroeconomic convergence within SADC : implications for the formation of a regional monetary union
- Authors: Johns, Michael Ryan
- Date: 2009
- Subjects: Southern African Development Community , Economic and Monetary Union , Common Monetary Area (Organization) , Economic policy -- Africa, Southern , Monetary policy -- Africa, Southern , Monetary unions , Macroeconomics
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1023 , http://hdl.handle.net/10962/d1002758 , Southern African Development Community , Economic and Monetary Union , Common Monetary Area (Organization) , Economic policy -- Africa, Southern , Monetary policy -- Africa, Southern , Monetary unions , Macroeconomics
- Description: Given the growing effect that globalisation and integration has had upon economies and regions, the process of monetary union has become an increasingly topical issue in economic policy debates. This has been driven in part by the experience and successes of the European Monetary Union (EMU), which is widely perceived as beneficial to member countries. The Southern African Development Community (SADC) is an example of a group of countries that has realised that there are benefits that may arise from economic integration. This paper makes use of an interest-rate pass through model to investigate whether the pass-through of monetary policy transmission in ten SADC countries has become more similar between January 1990 and December 2007 using monthly interest rate data. This is done to determine the extent of macroeconomic convergence that prevails within SADC, and consequently establish whether the formation of a regional monetary union is feasible. The results of the empirical pass-through model were robust and show that there are certain countries that have a more efficient and similar monetary transmission process than others. In particular, the countries that form the Common Monetary Area (CMA) and the Southern African Customs Union (SACU) tend to show evidence of convergence in monetary policy transmission, especially since 2000. In addition, from analysis of the long-run pass-through, the results reveal that there is evidence that Malawi and Zambia have shown signs of convergence toward the countries that form the CMA and SACU, in terms of monetary policy transmission. The study concludes that a SADC wide monetary union is currently not feasible based on the evidence provided from the results of the pass-through analysis. Despite this, it can be tentatively suggested that the CMA may be expanded to include Botswana, Malawi and Zambia.
- Full Text:
- Date Issued: 2009
- Authors: Johns, Michael Ryan
- Date: 2009
- Subjects: Southern African Development Community , Economic and Monetary Union , Common Monetary Area (Organization) , Economic policy -- Africa, Southern , Monetary policy -- Africa, Southern , Monetary unions , Macroeconomics
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1023 , http://hdl.handle.net/10962/d1002758 , Southern African Development Community , Economic and Monetary Union , Common Monetary Area (Organization) , Economic policy -- Africa, Southern , Monetary policy -- Africa, Southern , Monetary unions , Macroeconomics
- Description: Given the growing effect that globalisation and integration has had upon economies and regions, the process of monetary union has become an increasingly topical issue in economic policy debates. This has been driven in part by the experience and successes of the European Monetary Union (EMU), which is widely perceived as beneficial to member countries. The Southern African Development Community (SADC) is an example of a group of countries that has realised that there are benefits that may arise from economic integration. This paper makes use of an interest-rate pass through model to investigate whether the pass-through of monetary policy transmission in ten SADC countries has become more similar between January 1990 and December 2007 using monthly interest rate data. This is done to determine the extent of macroeconomic convergence that prevails within SADC, and consequently establish whether the formation of a regional monetary union is feasible. The results of the empirical pass-through model were robust and show that there are certain countries that have a more efficient and similar monetary transmission process than others. In particular, the countries that form the Common Monetary Area (CMA) and the Southern African Customs Union (SACU) tend to show evidence of convergence in monetary policy transmission, especially since 2000. In addition, from analysis of the long-run pass-through, the results reveal that there is evidence that Malawi and Zambia have shown signs of convergence toward the countries that form the CMA and SACU, in terms of monetary policy transmission. The study concludes that a SADC wide monetary union is currently not feasible based on the evidence provided from the results of the pass-through analysis. Despite this, it can be tentatively suggested that the CMA may be expanded to include Botswana, Malawi and Zambia.
- Full Text:
- Date Issued: 2009
The Southern African Development Community's attraction to foreign direct investment
- Authors: Botha, Richard Kruger
- Date: 2008
- Subjects: Southern African Development Community , Africa, Southern -- Foreign economic relations , Africa, Southern -- Economic integration , Africa, Southern -- Economic conditions
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:8716 , http://hdl.handle.net/10948/926 , Southern African Development Community , Africa, Southern -- Foreign economic relations , Africa, Southern -- Economic integration , Africa, Southern -- Economic conditions
- Description: In order to assess the question as to whether the Southern African Development Community in principle attracts foreign direct investment, literature and data have been cited that compared the economic profiles and relative privatisation programs of member states of the Southern African Development Community with relative high inflows of foreign direct investment with the economic profiles and relative privatisation programs of member states with relative low inflows of foreign direct investment. Qualitative research has been conducted, and the author is of opinion that generally the member states with relative high foreign direct investment inflows had economic profiles and relative privatisation programs that encouraged foreign direct investment, and member states with relative low foreign direct investment inflows had economic profiles and relative privatisation programs that deterred foreign direct investment inflows. From the above the author has inferred that the Southern African Development Community in principle attracted foreign direct investment, but not to its full potential. The reason may be that although the member states’ economic profiles are favourable for foreign direct investment, their economic growths tend to fluctuate, and the future economic profiles are therefore unpredictable. With the above in mind this mini-treatise aims to address the question as to what steps the governments of the Southern African Development Community’s member states could follow in order to attract foreign direct investment. iii The author is of opinion that the member states should endeavour to maintain an annual average economic growth rate, and that the governments continue to engage into privatisation programs in order to encourage foreign direct investment.
- Full Text:
- Date Issued: 2008
- Authors: Botha, Richard Kruger
- Date: 2008
- Subjects: Southern African Development Community , Africa, Southern -- Foreign economic relations , Africa, Southern -- Economic integration , Africa, Southern -- Economic conditions
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:8716 , http://hdl.handle.net/10948/926 , Southern African Development Community , Africa, Southern -- Foreign economic relations , Africa, Southern -- Economic integration , Africa, Southern -- Economic conditions
- Description: In order to assess the question as to whether the Southern African Development Community in principle attracts foreign direct investment, literature and data have been cited that compared the economic profiles and relative privatisation programs of member states of the Southern African Development Community with relative high inflows of foreign direct investment with the economic profiles and relative privatisation programs of member states with relative low inflows of foreign direct investment. Qualitative research has been conducted, and the author is of opinion that generally the member states with relative high foreign direct investment inflows had economic profiles and relative privatisation programs that encouraged foreign direct investment, and member states with relative low foreign direct investment inflows had economic profiles and relative privatisation programs that deterred foreign direct investment inflows. From the above the author has inferred that the Southern African Development Community in principle attracted foreign direct investment, but not to its full potential. The reason may be that although the member states’ economic profiles are favourable for foreign direct investment, their economic growths tend to fluctuate, and the future economic profiles are therefore unpredictable. With the above in mind this mini-treatise aims to address the question as to what steps the governments of the Southern African Development Community’s member states could follow in order to attract foreign direct investment. iii The author is of opinion that the member states should endeavour to maintain an annual average economic growth rate, and that the governments continue to engage into privatisation programs in order to encourage foreign direct investment.
- Full Text:
- Date Issued: 2008
Security community building? : an assessment of Southern African regional integration in the post-apartheid era
- Authors: Lekhooa, Tumo
- Date: 2006
- Subjects: South Africa -- Politics and government -- 1994- , Africa, Southern -- Economic integration , National security -- Africa, Southern , Political stability -- Africa, Southern , Southern African Development Community
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:2844 , http://hdl.handle.net/10962/d1005958 , South Africa -- Politics and government -- 1994- , Africa, Southern -- Economic integration , National security -- Africa, Southern , Political stability -- Africa, Southern , Southern African Development Community
- Description: The thesis traces Southern African security dimensions from the Cold War and the period of apartheid in South Africa to the post-apartheid era. It makes an attempt to investigate the prospects of Southern Africa becoming a security community and the processes and practices underlying these efforts. Using the constructivist theory approach to international relations, the thesis argues that the preoccupation with principles of sovereignty and non-interference, a lack of political will and the absence of common values that could help SADC institute binding rules and decision-making are the main blocks that prevent the region from asserting itself as a security community. All these militate against the idea of mutual accountability among SADC member states and have a negative impact on the institutional and functional capacity of SADC. This also prevents SADC from dealing with the emerging non-military human security threats in the region. In consideration of this, the thesis argues that the idea of security community building in Southern Africa remains not only a regional issue, but also requires the involvement of extra-regional actors.
- Full Text:
- Date Issued: 2006
- Authors: Lekhooa, Tumo
- Date: 2006
- Subjects: South Africa -- Politics and government -- 1994- , Africa, Southern -- Economic integration , National security -- Africa, Southern , Political stability -- Africa, Southern , Southern African Development Community
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:2844 , http://hdl.handle.net/10962/d1005958 , South Africa -- Politics and government -- 1994- , Africa, Southern -- Economic integration , National security -- Africa, Southern , Political stability -- Africa, Southern , Southern African Development Community
- Description: The thesis traces Southern African security dimensions from the Cold War and the period of apartheid in South Africa to the post-apartheid era. It makes an attempt to investigate the prospects of Southern Africa becoming a security community and the processes and practices underlying these efforts. Using the constructivist theory approach to international relations, the thesis argues that the preoccupation with principles of sovereignty and non-interference, a lack of political will and the absence of common values that could help SADC institute binding rules and decision-making are the main blocks that prevent the region from asserting itself as a security community. All these militate against the idea of mutual accountability among SADC member states and have a negative impact on the institutional and functional capacity of SADC. This also prevents SADC from dealing with the emerging non-military human security threats in the region. In consideration of this, the thesis argues that the idea of security community building in Southern Africa remains not only a regional issue, but also requires the involvement of extra-regional actors.
- Full Text:
- Date Issued: 2006
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:
- Date Issued: 2003
- 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:
- Date Issued: 2003
The evolution of a security community through a process of integration: problems and prospects for the SADC region
- Authors: Šebek, Vita
- Date: 2002
- Subjects: Political stability -- Africa, Southern , Southern African Development Community , National security -- Africa, Southern , Africa, Southern -- Economic integration
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:2831 , http://hdl.handle.net/10962/d1003041
- Description: This thesis examines the security problematic of African states and focuses more particularly on the SADC region. It links the security problematic with the transactionalist approach to (supra)national integration and the concept of a security community, introduced into internatIonal relations theory by Karl Deutsch and his colleagues. In relation to the (in)security of SADC member states, the thesis attempts to demonstrate that national integration of these states (i.e. the establishment of an amalgamated security community) has at least to accompany if not precede the establishment of a security community at the regional level (i.e. a pluralistic security community). Since threats to the security of SADC member states are mainly nonmilitary in nature, the 'realist' concept of security is broadened to include political, economic, societal and environmental aspects of security at different levels. Furthermore, Deutsch's concept of a security community is redefined in line with the 'new security thinking' and adapted to the situation in African states. Moreover, this thesis attempts to demonstrate that it is essential for SADC member states to become strong and socio-economically cohesive in order to improve their competitiveness in relation to developed states, especially in their ability to deal with internal and ransnational/regional threats to their security, which are (in)directly caused and perpetuated by the lack of national integration, inefficient state-making and underdevelopment - the sources of their weakness.
- Full Text:
- Date Issued: 2002
- Authors: Šebek, Vita
- Date: 2002
- Subjects: Political stability -- Africa, Southern , Southern African Development Community , National security -- Africa, Southern , Africa, Southern -- Economic integration
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:2831 , http://hdl.handle.net/10962/d1003041
- Description: This thesis examines the security problematic of African states and focuses more particularly on the SADC region. It links the security problematic with the transactionalist approach to (supra)national integration and the concept of a security community, introduced into internatIonal relations theory by Karl Deutsch and his colleagues. In relation to the (in)security of SADC member states, the thesis attempts to demonstrate that national integration of these states (i.e. the establishment of an amalgamated security community) has at least to accompany if not precede the establishment of a security community at the regional level (i.e. a pluralistic security community). Since threats to the security of SADC member states are mainly nonmilitary in nature, the 'realist' concept of security is broadened to include political, economic, societal and environmental aspects of security at different levels. Furthermore, Deutsch's concept of a security community is redefined in line with the 'new security thinking' and adapted to the situation in African states. Moreover, this thesis attempts to demonstrate that it is essential for SADC member states to become strong and socio-economically cohesive in order to improve their competitiveness in relation to developed states, especially in their ability to deal with internal and ransnational/regional threats to their security, which are (in)directly caused and perpetuated by the lack of national integration, inefficient state-making and underdevelopment - the sources of their weakness.
- Full Text:
- Date Issued: 2002
The nature of economic integration and co-operation within the South African region and a survey of economic benefits to member states
- Authors: Mutambara, Tsitsi Effie
- Date: 2001
- Subjects: Africa, Southern -- Economic integration , Southern African Development Community
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:938 , http://hdl.handle.net/10962/d1002671 , Africa, Southern -- Economic integration , Southern African Development Community
- Description: The transformation of SADCC into the Southern African Development Community (SADC) has paved the way towards closer regional economic integration in southern Africa. The regional grouping no longer only focuses on sectoral cooperation, but is steadily moving towards increased cooperation in trade development and promotion, industrial development and the diversification of national economies, with the aim of increasing regional economic integration. A free trade area ranks second lowest in the steps towards the highest levels of economic integration. Thus, the signing of the SADC Trade Protocol, which serves to pave way for a SADC Free Trade Area, has initiated steps to facilitate and promote the formal economic integration of all countries in the southern African region. It has been noted that at various periods, the region has adopted a variety of approaches to integration. As such, the present study reviews the different approaches to integration, namely the market integration model, the neo-functional integration model, the development integration model and the theory of common markets. Since the essential question with which this thesis is concerned is whether, and to what extent, the benefits expected from SADC and SACU in terms of their aims and objectives have accrued to member states, an insight into the expected benefits arising from the application of each theoretical framework can help to facilitate an evaluation of the benefits which the countries have enjoyed from these two regional groupings. The thesis highlights that throughout the ten years during which the original SADCC was in place, it based its approach to regional integration on the neo-functional and development integration models, although the former tended to be more dominant. With the regional grouping transforming into SADC, the market integration model was adopted, even though the grouping still had features of the aforementioned approaches. The relevance of the three approaches can be seen in: (i) the continued importance of SADC's sectoral projects, particularly in the field of transport and communication: (ii) continued attempts to put in place a suitable regional) industrial development strategy and implement policies to attract foreign investment; and (iii) the signing of the SADCC Trade Protocol to facilitate the implementation of a free trade area. The thesis argues that member states have enjoyed considerable economic benefits from the SADC sectoral projects. However, in some cases, members have lost out on potential benefits as a result of projects failing to be implemented or completed, mainly due to inadequate funding. Further, delays and inefficiencies at some border posts constitute significant non-tariff barriers which could be a hindrance to intra-regional trade. Progress towards diversification of exports has been limited as the region still relies mostly on the export of the traditional agricultural and mineral raw materials. While all countries have made efforts to diversify their industrial bases, attempts at implementing a meaningful regional industrial development strategy have met with limited success. Intra-regional trade has been increasing over the years. Since the SADC Trade Protocol only came into effect in September 2000, the increased levels of trade integration in the region appear to have been a result of the bilateral trade agreements between countries, and the customs union between South Africa and Botswana, Lesotho, Namibia and Swaziland (BLNS), as well as the structural adjustment programmes and the significant growth experienced in some countries. Outstanding intra-regional trade volumes have been experienced within SACU. In trade terms, benefits have varied between member states, with the more powerful countries like South Africa, Zimbabwe and Mauritius experiencing substantial trade surpluses vis-a.-vis their trade, partners. Countries with bilateral preferential trade agreements have also benefited more due to increased access into each other's markets compared to those without or with bilateral trade agreements of an MFN nature. However, it is important to note that, despite the increase in trade integration in the region, southern Africa is still heavily dependent on the rest of the world for its export markets and as its source of imports. The study finds that intra-industry trade (IIT) exists within the region and, in a number of sectors, high IIT indices are recorded;--although some such sectors do not display significant trade - voIumes. The opening of the region through the implementation of the SADC FTA could promote the expansion of IIT .as-the free trade area )'Till create an enlarged regional market. As such, SADC could benefit from dynamic effects such as scale economies in production and marketing, with member states working on having complementary production structures so as to facilitate specialisation. The thesis argues that the potential for intra-regional trade expansion in the SADC FT A also exists bearing in mind trade complementarity between countries as well as revealed comparative advantages in different sectors. One of the benefits which have accrued to the region as a result of facilitating and promoting greater cooperation and deepening the integration process has been an expansion in cross border investment. The study finds that the 1990s witnessed a gradual increase in cross border investment to take advantage of investment opportunities in member states. South Africa has become the primary source of foreign direct investment flows to a number of SADC countries, with mergers and acquisitions being the dominant mode of its foreign direct investment. Cross border investment helps in supplementing low domestic savings, thus providing substantial parts of the shortfall in capital needed to finance economic growth and development. It can thus promote development in the industrial sector, transfer of capital, skills and technology, and development of infrastructure. Many SADC countries are unable to compete effectively due to lack of export supply capacity. The thesis suggests that capitalising on investment by South African firms could enhance local supply capabilities and raise export competitiveness. The study concludes that for market integration to succeed in the SADC region, the neofunctional and development integration approaches need to be actively pursued simultaneously, particularly with respect to infrastructural and industrial development.
- Full Text:
- Date Issued: 2001
- Authors: Mutambara, Tsitsi Effie
- Date: 2001
- Subjects: Africa, Southern -- Economic integration , Southern African Development Community
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:938 , http://hdl.handle.net/10962/d1002671 , Africa, Southern -- Economic integration , Southern African Development Community
- Description: The transformation of SADCC into the Southern African Development Community (SADC) has paved the way towards closer regional economic integration in southern Africa. The regional grouping no longer only focuses on sectoral cooperation, but is steadily moving towards increased cooperation in trade development and promotion, industrial development and the diversification of national economies, with the aim of increasing regional economic integration. A free trade area ranks second lowest in the steps towards the highest levels of economic integration. Thus, the signing of the SADC Trade Protocol, which serves to pave way for a SADC Free Trade Area, has initiated steps to facilitate and promote the formal economic integration of all countries in the southern African region. It has been noted that at various periods, the region has adopted a variety of approaches to integration. As such, the present study reviews the different approaches to integration, namely the market integration model, the neo-functional integration model, the development integration model and the theory of common markets. Since the essential question with which this thesis is concerned is whether, and to what extent, the benefits expected from SADC and SACU in terms of their aims and objectives have accrued to member states, an insight into the expected benefits arising from the application of each theoretical framework can help to facilitate an evaluation of the benefits which the countries have enjoyed from these two regional groupings. The thesis highlights that throughout the ten years during which the original SADCC was in place, it based its approach to regional integration on the neo-functional and development integration models, although the former tended to be more dominant. With the regional grouping transforming into SADC, the market integration model was adopted, even though the grouping still had features of the aforementioned approaches. The relevance of the three approaches can be seen in: (i) the continued importance of SADC's sectoral projects, particularly in the field of transport and communication: (ii) continued attempts to put in place a suitable regional) industrial development strategy and implement policies to attract foreign investment; and (iii) the signing of the SADCC Trade Protocol to facilitate the implementation of a free trade area. The thesis argues that member states have enjoyed considerable economic benefits from the SADC sectoral projects. However, in some cases, members have lost out on potential benefits as a result of projects failing to be implemented or completed, mainly due to inadequate funding. Further, delays and inefficiencies at some border posts constitute significant non-tariff barriers which could be a hindrance to intra-regional trade. Progress towards diversification of exports has been limited as the region still relies mostly on the export of the traditional agricultural and mineral raw materials. While all countries have made efforts to diversify their industrial bases, attempts at implementing a meaningful regional industrial development strategy have met with limited success. Intra-regional trade has been increasing over the years. Since the SADC Trade Protocol only came into effect in September 2000, the increased levels of trade integration in the region appear to have been a result of the bilateral trade agreements between countries, and the customs union between South Africa and Botswana, Lesotho, Namibia and Swaziland (BLNS), as well as the structural adjustment programmes and the significant growth experienced in some countries. Outstanding intra-regional trade volumes have been experienced within SACU. In trade terms, benefits have varied between member states, with the more powerful countries like South Africa, Zimbabwe and Mauritius experiencing substantial trade surpluses vis-a.-vis their trade, partners. Countries with bilateral preferential trade agreements have also benefited more due to increased access into each other's markets compared to those without or with bilateral trade agreements of an MFN nature. However, it is important to note that, despite the increase in trade integration in the region, southern Africa is still heavily dependent on the rest of the world for its export markets and as its source of imports. The study finds that intra-industry trade (IIT) exists within the region and, in a number of sectors, high IIT indices are recorded;--although some such sectors do not display significant trade - voIumes. The opening of the region through the implementation of the SADC FTA could promote the expansion of IIT .as-the free trade area )'Till create an enlarged regional market. As such, SADC could benefit from dynamic effects such as scale economies in production and marketing, with member states working on having complementary production structures so as to facilitate specialisation. The thesis argues that the potential for intra-regional trade expansion in the SADC FT A also exists bearing in mind trade complementarity between countries as well as revealed comparative advantages in different sectors. One of the benefits which have accrued to the region as a result of facilitating and promoting greater cooperation and deepening the integration process has been an expansion in cross border investment. The study finds that the 1990s witnessed a gradual increase in cross border investment to take advantage of investment opportunities in member states. South Africa has become the primary source of foreign direct investment flows to a number of SADC countries, with mergers and acquisitions being the dominant mode of its foreign direct investment. Cross border investment helps in supplementing low domestic savings, thus providing substantial parts of the shortfall in capital needed to finance economic growth and development. It can thus promote development in the industrial sector, transfer of capital, skills and technology, and development of infrastructure. Many SADC countries are unable to compete effectively due to lack of export supply capacity. The thesis suggests that capitalising on investment by South African firms could enhance local supply capabilities and raise export competitiveness. The study concludes that for market integration to succeed in the SADC region, the neofunctional and development integration approaches need to be actively pursued simultaneously, particularly with respect to infrastructural and industrial development.
- Full Text:
- Date Issued: 2001
Southern African Development Community foreign policy behaviour: the case of trade with external actors
- Authors: Tebu, Perminus Waithaka
- Date: 2000
- Subjects: Southern African Development Community , International trade , Africa, Southern -- Foreign relations
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:2834 , http://hdl.handle.net/10962/d1003044 , Southern African Development Community , International trade , Africa, Southern -- Foreign relations
- Description: This thesis is structured around two main and interwoven assumptions operating at two levels. On the one level the external dimension of security threat in Southern Africa is assumed to be the most critical factor for regional renewal and stability. It hinges on pertinent regional issues such as negative trade balances, economic dependence, poverty, unemployment, poor economic growth rates and so forth. The corollary of this assumption is that within the operative framework of SADC, Southern African states are assumed capable of effectively integrating their economies through trade and related arrangements with dominant external actors in the highly competitive global economy. The European Union (EU) and the United States (US) are used as the focal points for illumination. A structured interaction between SADC and the EU within a revised North-South framework of interaction is hypothesized and critically examined. On the other hand, SADC-US interactions are assessed within the context of the new US Africa policy. At another level, the assumption is also made that the post-apartheid democratic state possesses both the political will and the wherewithal to provide regiol].al Leadership. This latter assumption is put to test within the framework of South Africa's regional foreign policy. Adopting an explicit regional unit of analysis, the study utilizes international regime theory as the theoretical and conceptual point of departure. The realist conception of the international system and the underlying assumptions usually considered as obstacles to international cooperation are critically examined in the context of the post-Cold War expanded security agenda. Regime theory is used to provide insight on the motivations that lead states to cooperate in situations of mutual dilemma by institutionalizing patterns of interaction at the regional and international systemic levels. Interstate economic relations at these levels are explained as state actions that are influenced by certain norms and that such norm-governed behaviour is wholly consistent with the pursuit of national interest. Application of the theory explains why such foreign policy behaviour of states is particularly relevant in the post-Cold War era. The thesis has argued that SADC states are capable of conducting a coordinated trade foreign policy in which regional positions are elaborated and adopted. It is argued further that a regional capacity to institute trade and economic policies that reflect local circumstances (necessary for effective integration with the world economy) calls for strong regional developmental democracies in the tradition of social market economy. Regional leadership by South Africa is considered indispensable where Sbuth Africa must find a sustainable balance between its national and regional interests.
- Full Text:
- Date Issued: 2000
- Authors: Tebu, Perminus Waithaka
- Date: 2000
- Subjects: Southern African Development Community , International trade , Africa, Southern -- Foreign relations
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:2834 , http://hdl.handle.net/10962/d1003044 , Southern African Development Community , International trade , Africa, Southern -- Foreign relations
- Description: This thesis is structured around two main and interwoven assumptions operating at two levels. On the one level the external dimension of security threat in Southern Africa is assumed to be the most critical factor for regional renewal and stability. It hinges on pertinent regional issues such as negative trade balances, economic dependence, poverty, unemployment, poor economic growth rates and so forth. The corollary of this assumption is that within the operative framework of SADC, Southern African states are assumed capable of effectively integrating their economies through trade and related arrangements with dominant external actors in the highly competitive global economy. The European Union (EU) and the United States (US) are used as the focal points for illumination. A structured interaction between SADC and the EU within a revised North-South framework of interaction is hypothesized and critically examined. On the other hand, SADC-US interactions are assessed within the context of the new US Africa policy. At another level, the assumption is also made that the post-apartheid democratic state possesses both the political will and the wherewithal to provide regiol].al Leadership. This latter assumption is put to test within the framework of South Africa's regional foreign policy. Adopting an explicit regional unit of analysis, the study utilizes international regime theory as the theoretical and conceptual point of departure. The realist conception of the international system and the underlying assumptions usually considered as obstacles to international cooperation are critically examined in the context of the post-Cold War expanded security agenda. Regime theory is used to provide insight on the motivations that lead states to cooperate in situations of mutual dilemma by institutionalizing patterns of interaction at the regional and international systemic levels. Interstate economic relations at these levels are explained as state actions that are influenced by certain norms and that such norm-governed behaviour is wholly consistent with the pursuit of national interest. Application of the theory explains why such foreign policy behaviour of states is particularly relevant in the post-Cold War era. The thesis has argued that SADC states are capable of conducting a coordinated trade foreign policy in which regional positions are elaborated and adopted. It is argued further that a regional capacity to institute trade and economic policies that reflect local circumstances (necessary for effective integration with the world economy) calls for strong regional developmental democracies in the tradition of social market economy. Regional leadership by South Africa is considered indispensable where Sbuth Africa must find a sustainable balance between its national and regional interests.
- Full Text:
- Date Issued: 2000
The theoretical and empirical analysis of trade integration among unequal partners : implications for the Southern African Development Community
- Authors: Cattaneo, Nicolette Sylvie
- Date: 1998
- Subjects: Southern African Development Community , Customs unions , Africa, Southern -- Foreign economic relations , Africa, Southern -- Economic integration
- Language: English
- Type: Thesis , Masters , MSc
- Identifier: vital:1008 , http://hdl.handle.net/10962/d1002743 , Southern African Development Community , Customs unions , Africa, Southern -- Foreign economic relations , Africa, Southern -- Economic integration
- Description: The re-acceptance of South Africa into the international community has cleared the path for the closer integration of South Africa with its neighbours in a broader southern African regional union. In particular, the countries of the Southern African Development Community {SADC), which South Africa joined in August 1994, have committed themselves to the formation of a free trade area (FTA) over an eight-year period. The most likely impediment to this process is the perception of a highly unequal distribution of the economic gains and losses of such an arrangement. This reflects the particular context of SADC: one of a comparatively undeveloped region, dominated by a relatively large, more industrially advanced country, which is itself small by international standards. The essential question with which this study is concerned, therefore, is whether, despite the existing inequalities in the region, a FTA among SADC members could be mutually beneficial to South Africa and its partners. The thesis applies orthodox and new trade theory to the analysis of economic integration among unequal partners. Using the theoretical analysis, and with reference to empirical studies of such experience elsewhere in the world, it attempts to provide an assessment of the existing body of literature on the possible effects of a SADC FTA. In the light of this discussion, and from its own preliminary empirical analysis of the possible pattern of inter-sectoral versus intra-sectoral specialisation which may result on union, the study suggests ways in which a fuller evaluation of the welfare implications of a southern African FTA may be achieved. The thesis argues that the orthodox theory based on perfect competition provides an insufficient framework for the analysis of the likely effects of a SADC FT A. It finds that, firstly, in an alternative analytical framework which retains the assumption of perfect competition, there may be other criteria for judging the success of a regional union that are neglected by orthodoxy, particularly in the case of developing countries. Secondly, the new trade theory based on imperfect competition and product differentiation provides useful insights into the possible effects of a regional union among countries at unequal levels of development. The formal extension of this body of literature to the theory of economic integration is clearly called for. It is found, however, that neither orthodox customs union theory, nor its suggested alternatives and extensions, enable one to conclude, a priori, that the formation of a FTA in the southern African region could not be beneficial to both South Africa and its smaller partners. Further, the present empirical studies on SADC do not take account of the full range of factors necessary for a complete welfare assessment of the possible effects. Since the outcome of integration depends on the empirical circumstances of the particular case, and since the information necessary for a comprehensive welfare evaluation is not currently available, the study concludes that the countries of the region have committed themselves to a FTA without any definite knowledge of its likely effects.
- Full Text:
- Date Issued: 1998
- Authors: Cattaneo, Nicolette Sylvie
- Date: 1998
- Subjects: Southern African Development Community , Customs unions , Africa, Southern -- Foreign economic relations , Africa, Southern -- Economic integration
- Language: English
- Type: Thesis , Masters , MSc
- Identifier: vital:1008 , http://hdl.handle.net/10962/d1002743 , Southern African Development Community , Customs unions , Africa, Southern -- Foreign economic relations , Africa, Southern -- Economic integration
- Description: The re-acceptance of South Africa into the international community has cleared the path for the closer integration of South Africa with its neighbours in a broader southern African regional union. In particular, the countries of the Southern African Development Community {SADC), which South Africa joined in August 1994, have committed themselves to the formation of a free trade area (FTA) over an eight-year period. The most likely impediment to this process is the perception of a highly unequal distribution of the economic gains and losses of such an arrangement. This reflects the particular context of SADC: one of a comparatively undeveloped region, dominated by a relatively large, more industrially advanced country, which is itself small by international standards. The essential question with which this study is concerned, therefore, is whether, despite the existing inequalities in the region, a FTA among SADC members could be mutually beneficial to South Africa and its partners. The thesis applies orthodox and new trade theory to the analysis of economic integration among unequal partners. Using the theoretical analysis, and with reference to empirical studies of such experience elsewhere in the world, it attempts to provide an assessment of the existing body of literature on the possible effects of a SADC FTA. In the light of this discussion, and from its own preliminary empirical analysis of the possible pattern of inter-sectoral versus intra-sectoral specialisation which may result on union, the study suggests ways in which a fuller evaluation of the welfare implications of a southern African FTA may be achieved. The thesis argues that the orthodox theory based on perfect competition provides an insufficient framework for the analysis of the likely effects of a SADC FT A. It finds that, firstly, in an alternative analytical framework which retains the assumption of perfect competition, there may be other criteria for judging the success of a regional union that are neglected by orthodoxy, particularly in the case of developing countries. Secondly, the new trade theory based on imperfect competition and product differentiation provides useful insights into the possible effects of a regional union among countries at unequal levels of development. The formal extension of this body of literature to the theory of economic integration is clearly called for. It is found, however, that neither orthodox customs union theory, nor its suggested alternatives and extensions, enable one to conclude, a priori, that the formation of a FTA in the southern African region could not be beneficial to both South Africa and its smaller partners. Further, the present empirical studies on SADC do not take account of the full range of factors necessary for a complete welfare assessment of the possible effects. Since the outcome of integration depends on the empirical circumstances of the particular case, and since the information necessary for a comprehensive welfare evaluation is not currently available, the study concludes that the countries of the region have committed themselves to a FTA without any definite knowledge of its likely effects.
- Full Text:
- Date Issued: 1998