An investigation of the informal market value chain for prickly pear (Opuntia ficus-indica) in Nelson Mandela Bay, Eastern Cape
- Authors: Ntsonge, Sinazo
- Date: 2018
- Subjects: Opuntia ficus-indica -- South Africa -- Nelson Mandela Bay Municipality , Alien plants -- Economic aspects -- South Africa -- Nelson Mandela Bay Municipality , Women heads of households -- South Africa -- Nelson Mandela Bay Municipality , Poor -- South Africa -- Nelson Mandela Bay Municipality , Informal sector (Economics) -- South Africa -- Nelson Mandela Bay Municipality , Sustainable Livelihoods Framework
- Language: English
- Type: text , Thesis , Masters , MSc
- Identifier: http://hdl.handle.net/10962/62894 , vital:28308
- Description: The use of alien plant species as part of the livelihood resources of poor people raises conflicts with national legislation, which views these plants as threats to native plant biodiversity. However, there is also increasing body of literature on the contribution that some of these plants make to the livelihoods of poor people. The level of significance of some alien plant species to livelihoods is mostly highlighted in the case of female market participants who are in a position of household headship. Since most African cultures dictate the role of females as solely being that of homemaker while males are assigned the role household headship and breadwinner, women often find themselves having to shoulder the household responsibilities when the household head is no longer there. This was the case in the Nelson Mandela Bay informal prickly pear market that this study sought to investigate. Even though there were also male participants in the prickly pear market, the majority of participants in the market were female who also mentioned they were the sole breadwinner for their households. This study investigated the economic contribution that the prickly pear (Opuntia ficus-indica) informal market makes to the livelihoods of people living in the Nelson Mandela Bay. The significance of the market’s contribution to their livelihoods was examined through using the Sustainable Livelihoods Framework. The study revealed that although the prickly pear income was largely supplementary due to it being available for only three months of the year, the income was a safety net resource for the market participants who had limited access to other sources of income. The results also highlighted the reasons people were engaging in the informal prickly pear market. The main reason that was mentioned was unemployment. Through a livelihoods analysis using the Sustainable Livelihoods Framework, it was revealed that the other factors that were contributing to their unemployment were low levels of education, low levels of marketable skills, and old age. The study revealed through calculations of the estimated economic value of each market activity the potential of the prickly pear to be used as a poverty fighting tool. Although the results of this study only highlight the economic value of the prickly pear to people in a small area compared to the rest of the province and the country, the informal market’s significance still presents a strong case for the establishment of an agroprocessing industry, which would support the production of value-added products. Since the largest populations of the prickly pear in Uitenhage are currently under effective control by the cochineal species, promotion of its economic value instead of eradicating it without considering its value to the livelihoods of the people in the market could also ensure that its populations are kept under control. Job creation in the agroprocessing industry would not only improve the livelihoods of those involved in the market, but would also feed into the national economy instead of taking from it via the costs incurred during clearing.
- Full Text:
- Date Issued: 2018
- Authors: Ntsonge, Sinazo
- Date: 2018
- Subjects: Opuntia ficus-indica -- South Africa -- Nelson Mandela Bay Municipality , Alien plants -- Economic aspects -- South Africa -- Nelson Mandela Bay Municipality , Women heads of households -- South Africa -- Nelson Mandela Bay Municipality , Poor -- South Africa -- Nelson Mandela Bay Municipality , Informal sector (Economics) -- South Africa -- Nelson Mandela Bay Municipality , Sustainable Livelihoods Framework
- Language: English
- Type: text , Thesis , Masters , MSc
- Identifier: http://hdl.handle.net/10962/62894 , vital:28308
- Description: The use of alien plant species as part of the livelihood resources of poor people raises conflicts with national legislation, which views these plants as threats to native plant biodiversity. However, there is also increasing body of literature on the contribution that some of these plants make to the livelihoods of poor people. The level of significance of some alien plant species to livelihoods is mostly highlighted in the case of female market participants who are in a position of household headship. Since most African cultures dictate the role of females as solely being that of homemaker while males are assigned the role household headship and breadwinner, women often find themselves having to shoulder the household responsibilities when the household head is no longer there. This was the case in the Nelson Mandela Bay informal prickly pear market that this study sought to investigate. Even though there were also male participants in the prickly pear market, the majority of participants in the market were female who also mentioned they were the sole breadwinner for their households. This study investigated the economic contribution that the prickly pear (Opuntia ficus-indica) informal market makes to the livelihoods of people living in the Nelson Mandela Bay. The significance of the market’s contribution to their livelihoods was examined through using the Sustainable Livelihoods Framework. The study revealed that although the prickly pear income was largely supplementary due to it being available for only three months of the year, the income was a safety net resource for the market participants who had limited access to other sources of income. The results also highlighted the reasons people were engaging in the informal prickly pear market. The main reason that was mentioned was unemployment. Through a livelihoods analysis using the Sustainable Livelihoods Framework, it was revealed that the other factors that were contributing to their unemployment were low levels of education, low levels of marketable skills, and old age. The study revealed through calculations of the estimated economic value of each market activity the potential of the prickly pear to be used as a poverty fighting tool. Although the results of this study only highlight the economic value of the prickly pear to people in a small area compared to the rest of the province and the country, the informal market’s significance still presents a strong case for the establishment of an agroprocessing industry, which would support the production of value-added products. Since the largest populations of the prickly pear in Uitenhage are currently under effective control by the cochineal species, promotion of its economic value instead of eradicating it without considering its value to the livelihoods of the people in the market could also ensure that its populations are kept under control. Job creation in the agroprocessing industry would not only improve the livelihoods of those involved in the market, but would also feed into the national economy instead of taking from it via the costs incurred during clearing.
- Full Text:
- Date Issued: 2018
Energy use patterns and trends: the impact of energy policy in South African low-income households
- Israel-Akinbo, Sylvia Olawumi
- Authors: Israel-Akinbo, Sylvia Olawumi
- Date: 2018
- Subjects: Energy policy -- Social aspects -- South Africa , Energy security -- South Africa , Households -- Economic aspects -- South Africa , Poor -- Energy assistance -- South Africa , Poor -- South Africa , University of Cape Town. National Income Dynamics Study , Free Basic Electricity Policy (South Africa) , Income and Expenditure Survey (South Africa)
- Language: English
- Type: text , Thesis , Doctoral , PhD
- Identifier: http://hdl.handle.net/10962/62264 , vital:28148
- Description: Energy poverty is a growing concern especially amongst low-income populations in developing countries. The transition to modern energy carriers is associated with welfare improvement and it is considered as an important developmental goal to achieve, in order to eradicate energy poverty. As such, the South African government has made energy poverty an issue of policy focus. Literature abounds with different measures of energy poverty; energy programmes and policies are also aimed at improving the welfare of the low-income households in terms of basic services such as electricity. As a point of entry into this study, this thesis explored energy use patterns and trends in low-income South African households. The research objectives addressed in the study included investigating the extent of energy poverty through a multidimensional energy poverty index, examining the extent to which the 'energy ladder' and 'energy stacking' models explains energy transition patterns and to examining whether the Free Basic Electricity Policy has impacted on energy choices and energy poverty. In order to contribute to energy poverty and energy policy discussion in South Africa, this study has investigated the dimensions of energy poverty amongst low-income South African households from these three different perspectives (objectives). A positivist approach, by using a quantitative method was used to underpin the study. The study utilised secondary data, which were from the National Income Dynamics Survey and Income and Expenditure Survey. The former was used for the analysis of the multidimensional energy poverty index and energy transition patterns whilst the latter was used for the analysis of the impact of the Free Basic Electricity Policy. The four waves of the National Income Dynamics Survey, with 2008 as the base year and the 2010/2011 version of the Income and Expenditure Survey were used whilst the data were processed through the quantitative software package, STATA version 12. The data were then analysed using the multidimensional energy poverty framework by Nussbaumer et al. (2011) and econometric models, which best fit the objectives. The result of the panel analysis, which assesses the multidimensional energy poverty for low-income households in South Africa showed that low-income households in both urban and rural areas are in a moderate state of energy poverty but different levels. However, the cross-sectional analysis revealed that the percentage of low-income households that are energy poor is reducing for the rural households but increasing for their urban counterparts from 2008 to 2014. The panel and cross-sectional results of the contribution of the energy dimensions in multidimensional energy poverty shows that the low-income households are especially energy poor in terms of heating fuel. The findings from the econometric estimates partly confirmed an energy ladder behaviour for the energy choice for cooking. An energy stacking behaviour was confirmed for the low- income households for these energy services - heating and lighting. Moreover, it was found that with respect to cooking and heating, low-income households living in a modern dwelling, having a small household size and residing in an urban area are less likely to use transitional or traditional energy carriers but most likely to use modern energy carriers. In addition, low-income households are more likely to use modern energy carriers for their cooking and heating in 2010, 2012 and 2014 than in 2008. For lighting energy service, low- income households living in a modern dwelling in an urban settlement are most likely to use modern energy carriers for lighting and less likely to use transitional energy carriers or candles. Only in 2014 were low-income households more likely to use modern energy carriers for lighting than in 2008. The results further showed that modern energy carriers have the highest probability of being preferred for lighting followed by cooking and lastly heating. Also emerging from the findings are that more urban low-income households are receiving the Free Basic Electricity (FBE) grant than their counterparts in the rural areas. The probability of low-income households owning entertainment/education appliance and food preserving appliance is positively influenced by access to Free Basic Electricity. The low- income households living in an urban settlement and in a modern type of dwelling supported this result. However, household size does not seems to support this result should it grow larger.
- Full Text:
- Date Issued: 2018
- Authors: Israel-Akinbo, Sylvia Olawumi
- Date: 2018
- Subjects: Energy policy -- Social aspects -- South Africa , Energy security -- South Africa , Households -- Economic aspects -- South Africa , Poor -- Energy assistance -- South Africa , Poor -- South Africa , University of Cape Town. National Income Dynamics Study , Free Basic Electricity Policy (South Africa) , Income and Expenditure Survey (South Africa)
- Language: English
- Type: text , Thesis , Doctoral , PhD
- Identifier: http://hdl.handle.net/10962/62264 , vital:28148
- Description: Energy poverty is a growing concern especially amongst low-income populations in developing countries. The transition to modern energy carriers is associated with welfare improvement and it is considered as an important developmental goal to achieve, in order to eradicate energy poverty. As such, the South African government has made energy poverty an issue of policy focus. Literature abounds with different measures of energy poverty; energy programmes and policies are also aimed at improving the welfare of the low-income households in terms of basic services such as electricity. As a point of entry into this study, this thesis explored energy use patterns and trends in low-income South African households. The research objectives addressed in the study included investigating the extent of energy poverty through a multidimensional energy poverty index, examining the extent to which the 'energy ladder' and 'energy stacking' models explains energy transition patterns and to examining whether the Free Basic Electricity Policy has impacted on energy choices and energy poverty. In order to contribute to energy poverty and energy policy discussion in South Africa, this study has investigated the dimensions of energy poverty amongst low-income South African households from these three different perspectives (objectives). A positivist approach, by using a quantitative method was used to underpin the study. The study utilised secondary data, which were from the National Income Dynamics Survey and Income and Expenditure Survey. The former was used for the analysis of the multidimensional energy poverty index and energy transition patterns whilst the latter was used for the analysis of the impact of the Free Basic Electricity Policy. The four waves of the National Income Dynamics Survey, with 2008 as the base year and the 2010/2011 version of the Income and Expenditure Survey were used whilst the data were processed through the quantitative software package, STATA version 12. The data were then analysed using the multidimensional energy poverty framework by Nussbaumer et al. (2011) and econometric models, which best fit the objectives. The result of the panel analysis, which assesses the multidimensional energy poverty for low-income households in South Africa showed that low-income households in both urban and rural areas are in a moderate state of energy poverty but different levels. However, the cross-sectional analysis revealed that the percentage of low-income households that are energy poor is reducing for the rural households but increasing for their urban counterparts from 2008 to 2014. The panel and cross-sectional results of the contribution of the energy dimensions in multidimensional energy poverty shows that the low-income households are especially energy poor in terms of heating fuel. The findings from the econometric estimates partly confirmed an energy ladder behaviour for the energy choice for cooking. An energy stacking behaviour was confirmed for the low- income households for these energy services - heating and lighting. Moreover, it was found that with respect to cooking and heating, low-income households living in a modern dwelling, having a small household size and residing in an urban area are less likely to use transitional or traditional energy carriers but most likely to use modern energy carriers. In addition, low-income households are more likely to use modern energy carriers for their cooking and heating in 2010, 2012 and 2014 than in 2008. For lighting energy service, low- income households living in a modern dwelling in an urban settlement are most likely to use modern energy carriers for lighting and less likely to use transitional energy carriers or candles. Only in 2014 were low-income households more likely to use modern energy carriers for lighting than in 2008. The results further showed that modern energy carriers have the highest probability of being preferred for lighting followed by cooking and lastly heating. Also emerging from the findings are that more urban low-income households are receiving the Free Basic Electricity (FBE) grant than their counterparts in the rural areas. The probability of low-income households owning entertainment/education appliance and food preserving appliance is positively influenced by access to Free Basic Electricity. The low- income households living in an urban settlement and in a modern type of dwelling supported this result. However, household size does not seems to support this result should it grow larger.
- Full Text:
- Date Issued: 2018
Integration of small-scale mohair farmers into the commercial agricultural economy in Lesotho: a new institutional economics approach
- Authors: Rantlo, Montoeli Ashby
- Date: 2018
- Subjects: Farms, Small Lesotho , Mohair Lesotho , Institutional economics , Transaction costs , Informal sector (Economics)
- Language: English
- Type: text , Thesis , Doctoral , PhD
- Identifier: http://hdl.handle.net/10962/62275 , vital:28149
- Description: Agriculture continues to be a strategic sector in the development of most low-income countries like Lesotho where small-scale farming is the dominant livelihood activity that provides income and employment to the people. Smallholder farmers' integration into the commercial agricultural markets is a crucial element for economic development and has become a part of development strategies for developing countries and the objectives of international development institutions. The integration of the smallholders into these markets is dependent upon a number of factors including formal and informal institutions. Factors like population growth and demographic changes, technological change and introduction of new commodities, development of infrastructure and market institutions, development of the nonfarm sector and broader economy, rising labour opportunity costs, and macroeconomic, trade and sectoral policies affecting prices and other driving forces determine market participation. In addition, development of input and output markets, institutions like property rights and land tenure, market regulations, cultural and social factors affecting consumption preferences, production and market opportunities and constraints, agro-climatic conditions, and production and market related risks are other factors that affect the commercialisation process. On the other hand, factors like smallholder resource endowments including land and other natural capital, labour, physical capital, and human capital among others are household specific and considered internal determinants of market participation. Nevertheless, the decision to participate in agricultural markets lies with the individual farming household. Under the New Institutional Economics (NIE), this decision is influenced by institutional factors such as risk and preferences, factors which affect household production and the level of costs associated with market transactions. These market transactions are commonly referred to as transaction costs. The study focused on investigating the institutions that limit the integration of small-scale mohair farmers into the commercial agricultural economy in Lesotho. The documentation and evaluation of the institutional structure of the mohair industry is performed whereby the institutional factors influencing participation of small-scale mohair farmers in formal, informal and illegal markets in Lesotho and factors contributing to transaction costs associated with the integration of small-scale farmers into the commercial mohair sector are investigated. Therefore, the investigation will help to address the institutional problems hindering the development of an effective marketing structure for the commercialisation of small-scale mohair producers in Lesotho. The results of the study show that the small-scale mohair farmers that use the formal markets are integrated into the commercial agricultural economy and these farmers' integration into the mainstream economy is influenced by access to government support in the form of shearing sheds, transport subsidies and advisory services. They also have access to market information, marketing infrastructure, knowledge of grades and standards and secure property rights. Other factors that helped their integration into the commercial economy is their contractual agreements with mohair buyers, path dependent based decision making as well as the collective approach to mohair farming. The small-scale mohair farmers using the informal markets do not receive the advantages received by the famers in the formal markets. These small-scale mohair farmers are not integrated into the commercial markets and their only option is the informal markets and their participation in these markets is enhanced by their marketing arrangements with the informal traders, culture influenced decisions, social capital and prompt payments. Despite integration into the commercial agricultural economy, small-scale farmers that use formal markets face the challenges of power imbalances, mistrust and conflicts which may affect this integration into the commercial markets if left unchecked. The study concludes that in the face of institutional challenges, the small-scale mohair farmers using the formal markets are integrated into the commercial agricultural economy and there is potential for improvement of their integration as well as the integration of the small-scale mohair farmers that use the informal markets if institutional challenges are addressed.
- Full Text:
- Date Issued: 2018
- Authors: Rantlo, Montoeli Ashby
- Date: 2018
- Subjects: Farms, Small Lesotho , Mohair Lesotho , Institutional economics , Transaction costs , Informal sector (Economics)
- Language: English
- Type: text , Thesis , Doctoral , PhD
- Identifier: http://hdl.handle.net/10962/62275 , vital:28149
- Description: Agriculture continues to be a strategic sector in the development of most low-income countries like Lesotho where small-scale farming is the dominant livelihood activity that provides income and employment to the people. Smallholder farmers' integration into the commercial agricultural markets is a crucial element for economic development and has become a part of development strategies for developing countries and the objectives of international development institutions. The integration of the smallholders into these markets is dependent upon a number of factors including formal and informal institutions. Factors like population growth and demographic changes, technological change and introduction of new commodities, development of infrastructure and market institutions, development of the nonfarm sector and broader economy, rising labour opportunity costs, and macroeconomic, trade and sectoral policies affecting prices and other driving forces determine market participation. In addition, development of input and output markets, institutions like property rights and land tenure, market regulations, cultural and social factors affecting consumption preferences, production and market opportunities and constraints, agro-climatic conditions, and production and market related risks are other factors that affect the commercialisation process. On the other hand, factors like smallholder resource endowments including land and other natural capital, labour, physical capital, and human capital among others are household specific and considered internal determinants of market participation. Nevertheless, the decision to participate in agricultural markets lies with the individual farming household. Under the New Institutional Economics (NIE), this decision is influenced by institutional factors such as risk and preferences, factors which affect household production and the level of costs associated with market transactions. These market transactions are commonly referred to as transaction costs. The study focused on investigating the institutions that limit the integration of small-scale mohair farmers into the commercial agricultural economy in Lesotho. The documentation and evaluation of the institutional structure of the mohair industry is performed whereby the institutional factors influencing participation of small-scale mohair farmers in formal, informal and illegal markets in Lesotho and factors contributing to transaction costs associated with the integration of small-scale farmers into the commercial mohair sector are investigated. Therefore, the investigation will help to address the institutional problems hindering the development of an effective marketing structure for the commercialisation of small-scale mohair producers in Lesotho. The results of the study show that the small-scale mohair farmers that use the formal markets are integrated into the commercial agricultural economy and these farmers' integration into the mainstream economy is influenced by access to government support in the form of shearing sheds, transport subsidies and advisory services. They also have access to market information, marketing infrastructure, knowledge of grades and standards and secure property rights. Other factors that helped their integration into the commercial economy is their contractual agreements with mohair buyers, path dependent based decision making as well as the collective approach to mohair farming. The small-scale mohair farmers using the informal markets do not receive the advantages received by the famers in the formal markets. These small-scale mohair farmers are not integrated into the commercial markets and their only option is the informal markets and their participation in these markets is enhanced by their marketing arrangements with the informal traders, culture influenced decisions, social capital and prompt payments. Despite integration into the commercial agricultural economy, small-scale farmers that use formal markets face the challenges of power imbalances, mistrust and conflicts which may affect this integration into the commercial markets if left unchecked. The study concludes that in the face of institutional challenges, the small-scale mohair farmers using the formal markets are integrated into the commercial agricultural economy and there is potential for improvement of their integration as well as the integration of the small-scale mohair farmers that use the informal markets if institutional challenges are addressed.
- Full Text:
- Date Issued: 2018
Measuring the elasticity of electricity demand in South Africa: implications for future demand and supply
- Authors: Kosiorek, Sebastian
- Date: 2018
- Subjects: Electric power consumption -- South Africa , Electric power distribution -- South Africa , Electric power production -- South Africa , Electric power failures -- South Africa , Electric utilities -- Law and legislation -- South Africa , Autoregression (Statistics) , Renewable energy sources -- South Africa , Energy policy -- South Africa , Integrated Resource Plan
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/62472 , vital:28196
- Description: A key economic issue for government is the ability to effectively match electricity supply to electricity demand, because of the substantial economic losses in the case of where there is too little supply, or the waste of scarce resources where there is too much supply. In the case of South Africa, this issue, the importance of which was highlighted by the power shortages and associated “rolling blackouts” experience in 2008, has led to the creation of the Integrated Resource Plan (IRP) as a means to decide how energy policy will be developed. Recently, however, the IRP 2010 and its subsequent 2013 and 2016 (draft) updates have been criticised as being too optimistic in regards to their projections of economic growth and electricity demand, making the recommendations in these documents to be flawed. Using monthly data from January 1990 to May 2017, together with Autoregressive Distributed Lag (ARDL) bounds testing for cointegration, this paper measures changes in the elasticity of electricity demand as a result of the massive price hikes over the past decade. Thereafter, the implications of changed electricity as well as possibly lower Gross Domestic Product (GDP) growth in the future for forecasts of possible future demand for electricity are examined. From these revised forecasts, it is possible to make appropriate recommendations in regards to electricity supply policy for South Africa including what possible energy mix is needed as well as the requirements for creating new supply to meet possible future demand. It is concluded that future electricity demand is likely to be much lower than forecast in the IRP 2010 and IRP 2013 documents. The degree of uncertainty in electricity demand growth suggests that large-scale increases in supply capacity taking years to construct, such as coal or nuclear, should be avoided. Small, incremental increases in supply that are able to come on stream swiftly, such as gas, solar and wind power, are likely to be more appropriate for meeting South Africa’s future needs.
- Full Text:
- Date Issued: 2018
- Authors: Kosiorek, Sebastian
- Date: 2018
- Subjects: Electric power consumption -- South Africa , Electric power distribution -- South Africa , Electric power production -- South Africa , Electric power failures -- South Africa , Electric utilities -- Law and legislation -- South Africa , Autoregression (Statistics) , Renewable energy sources -- South Africa , Energy policy -- South Africa , Integrated Resource Plan
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/62472 , vital:28196
- Description: A key economic issue for government is the ability to effectively match electricity supply to electricity demand, because of the substantial economic losses in the case of where there is too little supply, or the waste of scarce resources where there is too much supply. In the case of South Africa, this issue, the importance of which was highlighted by the power shortages and associated “rolling blackouts” experience in 2008, has led to the creation of the Integrated Resource Plan (IRP) as a means to decide how energy policy will be developed. Recently, however, the IRP 2010 and its subsequent 2013 and 2016 (draft) updates have been criticised as being too optimistic in regards to their projections of economic growth and electricity demand, making the recommendations in these documents to be flawed. Using monthly data from January 1990 to May 2017, together with Autoregressive Distributed Lag (ARDL) bounds testing for cointegration, this paper measures changes in the elasticity of electricity demand as a result of the massive price hikes over the past decade. Thereafter, the implications of changed electricity as well as possibly lower Gross Domestic Product (GDP) growth in the future for forecasts of possible future demand for electricity are examined. From these revised forecasts, it is possible to make appropriate recommendations in regards to electricity supply policy for South Africa including what possible energy mix is needed as well as the requirements for creating new supply to meet possible future demand. It is concluded that future electricity demand is likely to be much lower than forecast in the IRP 2010 and IRP 2013 documents. The degree of uncertainty in electricity demand growth suggests that large-scale increases in supply capacity taking years to construct, such as coal or nuclear, should be avoided. Small, incremental increases in supply that are able to come on stream swiftly, such as gas, solar and wind power, are likely to be more appropriate for meeting South Africa’s future needs.
- 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
Suicide and the South African business cycle: a time series approach, 2006-2015
- Authors: Pitot, Amaury
- Date: 2018
- Subjects: Suicide -- South Africa , Business cycles -- South Africa , Autoregression (Statistics) , Divorce -- South Africa , AutoRegressive Distributed Lagged model (ARDL)
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/62286 , vital:28150
- Description: Suicide is a major public health issue and imposes substantial economic cost on society every year. For example, the World Health Organisation has estimated that there are over one million completed suicides every year, of which about 75% occur in middle and low income countries. In South Africa, suicide is one of the leading causes of non-natural death, but remains under-researched from an economic point of view due to limited data availability. Using monthly data for the period 2006-2015, this study explores whether there is a relationship between suicide and the South African business cycle. This is further broken down to examine how, if at all, this relationship with the business cycle differs across age-, gender-, and racial groups. The primary source of data for suicide and demographic groups were obtained from Statistics South Africa’s Mortality and Causes of Death Data from Death Notification released since 2006. The coincident indicator was used as a proxy for the business cycle as it represents the business cycle in real time. Using an autoregressive distributed lagged model (ARDL), a long run relationship was established with suicide being a function of the coincident indicator, divorce and fertility rate. The findings of this paper show that the overall suicide rate moves with the South African business cycle (i.e. pro-cyclical relationship) in the long run. This relationship holds for males, the black population group and the 15-29 and 30-44 age categories. In addition, the divorce rate had a positive and significant relationship with the overall suicide rate, as well as suicide among the black population group and for the 30-44 age category, whereas fertility rates had no significant relationship with suicide.
- Full Text:
- Date Issued: 2018
- Authors: Pitot, Amaury
- Date: 2018
- Subjects: Suicide -- South Africa , Business cycles -- South Africa , Autoregression (Statistics) , Divorce -- South Africa , AutoRegressive Distributed Lagged model (ARDL)
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/62286 , vital:28150
- Description: Suicide is a major public health issue and imposes substantial economic cost on society every year. For example, the World Health Organisation has estimated that there are over one million completed suicides every year, of which about 75% occur in middle and low income countries. In South Africa, suicide is one of the leading causes of non-natural death, but remains under-researched from an economic point of view due to limited data availability. Using monthly data for the period 2006-2015, this study explores whether there is a relationship between suicide and the South African business cycle. This is further broken down to examine how, if at all, this relationship with the business cycle differs across age-, gender-, and racial groups. The primary source of data for suicide and demographic groups were obtained from Statistics South Africa’s Mortality and Causes of Death Data from Death Notification released since 2006. The coincident indicator was used as a proxy for the business cycle as it represents the business cycle in real time. Using an autoregressive distributed lagged model (ARDL), a long run relationship was established with suicide being a function of the coincident indicator, divorce and fertility rate. The findings of this paper show that the overall suicide rate moves with the South African business cycle (i.e. pro-cyclical relationship) in the long run. This relationship holds for males, the black population group and the 15-29 and 30-44 age categories. In addition, the divorce rate had a positive and significant relationship with the overall suicide rate, as well as suicide among the black population group and for the 30-44 age category, whereas fertility rates had no significant relationship with suicide.
- Full Text:
- Date Issued: 2018
The fourth industrial revolution and human capital development
- Authors: Goldschmidt, Kyle
- Date: 2018
- Subjects: Technological innovations -- Economic aspects , Human capital , Intellectual capital , Economic development , Economic development -- Effect of education on , Fourth industrial revolution
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/62483 , vital:28197
- Description: The focus of the Fourth Industrial Revolution has been on its implications on Human Capital and its need to develop “21st-Century Skills" through education to ensure future labour and capital complementarity. Human Capital combined with 21st-Century Skills, it is claimed, can together generate economic growth, jobs and propel an economy into the next Industrial Revolution. However, Schwab’s (2016) concept of the Fourth Industrial Revolution, make no distinction between the Average Worker and the Knowledge Elite and their relationship to each other and successful economic growth. The different nature of these skills is absent in the literature to date. A critical analysis of literature will be used to examine Schwab’s (2016) claim of a Fourth Industrial Revolution and assess how the Average Worker and the Knowledge Elite relate to the Fourth Industrial Revolution and 21st-Century Skills. The evidence is provided on how both the Average Worker and the Knowledge Elite are key contributors to economic growth and will be important in the Fourth Industrial Revolution.
- Full Text:
- Date Issued: 2018
- Authors: Goldschmidt, Kyle
- Date: 2018
- Subjects: Technological innovations -- Economic aspects , Human capital , Intellectual capital , Economic development , Economic development -- Effect of education on , Fourth industrial revolution
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/62483 , vital:28197
- Description: The focus of the Fourth Industrial Revolution has been on its implications on Human Capital and its need to develop “21st-Century Skills" through education to ensure future labour and capital complementarity. Human Capital combined with 21st-Century Skills, it is claimed, can together generate economic growth, jobs and propel an economy into the next Industrial Revolution. However, Schwab’s (2016) concept of the Fourth Industrial Revolution, make no distinction between the Average Worker and the Knowledge Elite and their relationship to each other and successful economic growth. The different nature of these skills is absent in the literature to date. A critical analysis of literature will be used to examine Schwab’s (2016) claim of a Fourth Industrial Revolution and assess how the Average Worker and the Knowledge Elite relate to the Fourth Industrial Revolution and 21st-Century Skills. The evidence is provided on how both the Average Worker and the Knowledge Elite are key contributors to economic growth and will be important in the Fourth Industrial Revolution.
- Full Text:
- Date Issued: 2018
The impact of the cultural and creative industries on the economic growth and development of small cities and towns - guidelines for creating a regional cultural policy
- Authors: Ndhlovu, Raymond
- Date: 2018
- Subjects: Cultural industries -- South Africa , Cultural industries -- Economic aspects -- South Africa , Cultural policy , South Africa -- Economic conditions , Economic development -- South Africa -- Eastern Cape , South Africa. Department of Arts and Culture , Standard Bank National Arts Festival
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/61524 , vital:28032
- Description: The arts and cultural sector has come under even more financial strain than it previously was, as it has to compete with other sectors of the economy for the very limited public funding that is available. It is in this context that the economic impact, and the role, of the arts and cultural sector towards advancing economic growth and development, needs be examined. This thesis investigates the potential for the positive impact of the cultural and creative industries (CCIs) on growth and development of small cities and towns. Furthermore, it also provides guidelines for the development of regional cultural policy in small cities and towns. The CCIs have also been touted as a catalyst for economic growth and economic development, hence the global rise in their interest. For example, the CCIs have been used to redevelop and revive urban areas that have been rundown. CCIs, however, tend to develop in clusters, and additionally, they cluster around large cities. However, the lack of reliance of some CCIs on long supply chains or high-technology inputs may make them suitable candidates for investment in small cities and towns. Additionally, the link that small cities and towns have with rural and isolated areas makes them potential engines for driving growth, development, as well as employment creation for these areas, given their decline as a result of the transition from the traditional agricultural economy, to the knowledge economy. As CCIs have the propensity to drive government’s macroeconomic objectives such as efficiency, equity, economic growth and job creation, it is necessary to develop cultural policy that regards this. The tendency of CCIs to cluster and develop around large cities inevitably means that very little research into cultural policy directed towards regions without large cities and towns has been done. By the same token, very little research has also been conducted on how to craft cultural policy for such areas. In order then, for cultural policy for regions without large cities and towns to be developed, it is necessary to investigate, and provide, guidelines on, how to develop cultural policy for such regions. As a case study, the Sarah Baartman District Municipality (SBDM) in the Eastern Cape was chosen. The SBDM has no large cities and towns, but the District Municipality has identified the CCIs as a potential growth sector, and is in the process of developing a regional cultural policy. The area also includes Grahamstown, which not only hosts the National Arts Festival, which is the largest arts event of its type in Africa, but is also piloting the “Creative City” project in South Africa. An audit and mapping study was conducted on the CCIs in the SBDM; this was based on a national mapping study commissioned by the Department of Arts and Culture. Further internet searches, as well as consultations with the provincial and regional Department of Arts of Culture, coupled with snowball sampling, also aided in the identification of CCIs, and consequently, the “creative hotspots” within the SBDM. Two random samples of stakeholders were chosen; the CCI owners and practitioners, as well as key stakeholders such as government officials, and interviews conducted with both groups, in order to get a first-hand perspective on the operations, activities, challenges, and opportunities that are faced by the CCIs. The study found that there were at least 441 CCIs in the SBDM, with two local municipalities (Dr. Beyers Naude and Makana) hosting the largest share of these (145 and 113 CCIs in each local municipality respectively), which indicates some support for the ‘clustering’ theory. It was also found that the local municipalities that had the largest number of CCIs also experienced better socio-economic welfare. Furthermore, based on the UNESCO Framework for Cultural Statistics (FCS) domains, the Visual Arts and Crafts; Information, Books and Press; and, Cultural Heritage domains were the largest domains represented in the SBDM. It was concluded that cultural policy that is developed, ought to take advantage of, and build on, these existing clusters, as well as the domains that are most prevalent in the region. To demonstrate the impact of cultural festivals on growth and development, a socio-economic impact study was undertaken at the 2016 National Arts Festival (NAF) in Grahamstown. Face to interviews, as well as self-completion questionnaires were used, with respondents at different venues, attending a variety of shows, and across a range of demographics, being interviewed, in order to get a representative sample of Festival attendees. It was found that the economic impact of the 2016 NAF on the city of Grahamstown was R94.4 million. Over and above the economic value of the NAF, it was also found that there were nonmarket benefits (social and intrinsic values) of the NAF, that included audience development, education of the arts and culture, social cohesion, and community development. The inability to directly track and measure social and intrinsic values proved to be a challenge. The study concluded that in order for successful cultural policy to be developed in regions without large cities and towns, it is first necessary to carry out a study to identify what resources are present, and where they are. Locating resources enables cluster identification - as clusters encourage comparative and competitive advantage, it is worthwhile to invest in areas where there are clusters. Therefore, in the allocation of scarce public funds, cultural policy needs to guide investment in to areas where established clusters indicate existing comparative advantage. In terms of equity and transformation, it is also necessary to evaluate labour markets and ownership patterns when developing cultural policy. Beyond the analysis of physical and human resources, the study also found that a crucial step towards developing successful cultural policy is identification of opportunities and challenges faced by the practitioners themselves; the policy ought to capitalise on the opportunities, whilst attempting to correct the challenges faced. Also of importance is aligning the proposed policy and its objectives with regional, provincial and national aims and objectives. Finally, it is important to include a monitoring and evaluation tool that will evaluate the performance of the policy against its stated aims and objectives.
- Full Text:
- Date Issued: 2018
- Authors: Ndhlovu, Raymond
- Date: 2018
- Subjects: Cultural industries -- South Africa , Cultural industries -- Economic aspects -- South Africa , Cultural policy , South Africa -- Economic conditions , Economic development -- South Africa -- Eastern Cape , South Africa. Department of Arts and Culture , Standard Bank National Arts Festival
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/61524 , vital:28032
- Description: The arts and cultural sector has come under even more financial strain than it previously was, as it has to compete with other sectors of the economy for the very limited public funding that is available. It is in this context that the economic impact, and the role, of the arts and cultural sector towards advancing economic growth and development, needs be examined. This thesis investigates the potential for the positive impact of the cultural and creative industries (CCIs) on growth and development of small cities and towns. Furthermore, it also provides guidelines for the development of regional cultural policy in small cities and towns. The CCIs have also been touted as a catalyst for economic growth and economic development, hence the global rise in their interest. For example, the CCIs have been used to redevelop and revive urban areas that have been rundown. CCIs, however, tend to develop in clusters, and additionally, they cluster around large cities. However, the lack of reliance of some CCIs on long supply chains or high-technology inputs may make them suitable candidates for investment in small cities and towns. Additionally, the link that small cities and towns have with rural and isolated areas makes them potential engines for driving growth, development, as well as employment creation for these areas, given their decline as a result of the transition from the traditional agricultural economy, to the knowledge economy. As CCIs have the propensity to drive government’s macroeconomic objectives such as efficiency, equity, economic growth and job creation, it is necessary to develop cultural policy that regards this. The tendency of CCIs to cluster and develop around large cities inevitably means that very little research into cultural policy directed towards regions without large cities and towns has been done. By the same token, very little research has also been conducted on how to craft cultural policy for such areas. In order then, for cultural policy for regions without large cities and towns to be developed, it is necessary to investigate, and provide, guidelines on, how to develop cultural policy for such regions. As a case study, the Sarah Baartman District Municipality (SBDM) in the Eastern Cape was chosen. The SBDM has no large cities and towns, but the District Municipality has identified the CCIs as a potential growth sector, and is in the process of developing a regional cultural policy. The area also includes Grahamstown, which not only hosts the National Arts Festival, which is the largest arts event of its type in Africa, but is also piloting the “Creative City” project in South Africa. An audit and mapping study was conducted on the CCIs in the SBDM; this was based on a national mapping study commissioned by the Department of Arts and Culture. Further internet searches, as well as consultations with the provincial and regional Department of Arts of Culture, coupled with snowball sampling, also aided in the identification of CCIs, and consequently, the “creative hotspots” within the SBDM. Two random samples of stakeholders were chosen; the CCI owners and practitioners, as well as key stakeholders such as government officials, and interviews conducted with both groups, in order to get a first-hand perspective on the operations, activities, challenges, and opportunities that are faced by the CCIs. The study found that there were at least 441 CCIs in the SBDM, with two local municipalities (Dr. Beyers Naude and Makana) hosting the largest share of these (145 and 113 CCIs in each local municipality respectively), which indicates some support for the ‘clustering’ theory. It was also found that the local municipalities that had the largest number of CCIs also experienced better socio-economic welfare. Furthermore, based on the UNESCO Framework for Cultural Statistics (FCS) domains, the Visual Arts and Crafts; Information, Books and Press; and, Cultural Heritage domains were the largest domains represented in the SBDM. It was concluded that cultural policy that is developed, ought to take advantage of, and build on, these existing clusters, as well as the domains that are most prevalent in the region. To demonstrate the impact of cultural festivals on growth and development, a socio-economic impact study was undertaken at the 2016 National Arts Festival (NAF) in Grahamstown. Face to interviews, as well as self-completion questionnaires were used, with respondents at different venues, attending a variety of shows, and across a range of demographics, being interviewed, in order to get a representative sample of Festival attendees. It was found that the economic impact of the 2016 NAF on the city of Grahamstown was R94.4 million. Over and above the economic value of the NAF, it was also found that there were nonmarket benefits (social and intrinsic values) of the NAF, that included audience development, education of the arts and culture, social cohesion, and community development. The inability to directly track and measure social and intrinsic values proved to be a challenge. The study concluded that in order for successful cultural policy to be developed in regions without large cities and towns, it is first necessary to carry out a study to identify what resources are present, and where they are. Locating resources enables cluster identification - as clusters encourage comparative and competitive advantage, it is worthwhile to invest in areas where there are clusters. Therefore, in the allocation of scarce public funds, cultural policy needs to guide investment in to areas where established clusters indicate existing comparative advantage. In terms of equity and transformation, it is also necessary to evaluate labour markets and ownership patterns when developing cultural policy. Beyond the analysis of physical and human resources, the study also found that a crucial step towards developing successful cultural policy is identification of opportunities and challenges faced by the practitioners themselves; the policy ought to capitalise on the opportunities, whilst attempting to correct the challenges faced. Also of importance is aligning the proposed policy and its objectives with regional, provincial and national aims and objectives. Finally, it is important to include a monitoring and evaluation tool that will evaluate the performance of the policy against its stated aims and objectives.
- Full Text:
- Date Issued: 2018
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