Aspects of the new repurchase system of monetary control in South Africa
- Authors: Springfield, Samantha Claire
- Date: 2001
- Subjects: Monetary policy -- South Africa Credit control -- South Africa
- Language: English
- Type: Thesis , Masters , MEcon
- Identifier: vital:940 , http://hdl.handle.net/10962/d1002673
- Description: The main objective of monetary policy is to protect the value of the currency, and in so doing, achieve the objectives of maximum economic growth, development, and the creation of employment opportunities. As from 1985, under the advice of the De Kock Commission, the South African Reserve Bank (SARB), implemented the classical cash reserve system of monetary control. Under this system, the SARB was willing to refinance the money market shortage fully, automatically, and on certain predetermined terms, conditions and costs. However, since the new political dispensation in 1994, South Africa’s financial markets have become more globalized, liberalised, and integrated. Thus, the classical cash reserve system had lost its usefulness, and was no longer effective. As from March 1998, the SARB implemented the new repurchase system of monetary control. In implementing the repurchase system of monetary control, South Africa was adopting a more eclectic approach. This system is aimed at making monetary policy more effective and more flexible in a financial environment filled with complexities. This study finds that the repurchase system has thus far been successful in meeting its objectives. Interest rates are more flexible and sensitive to developments in the domestic and external environment, the signalling mechanism of the SARB has proved to be successful, accommodation and interest rates are closely related and the interbank market has become more developed. Therefore, the repurchase system appears to be more efficient than the previous system of monetary control in South Africa.
- Full Text:
- Date Issued: 2001
The new economic geography of SADC free trade area
- Authors: Hess, Simon Peter
- Date: 2004
- Subjects: Southern African Development Community Free trade -- Africa, Southern Economic geography Industries -- Africa, Southern
- Language: English
- Type: Thesis , Masters , MEcon
- Identifier: vital:932 , http://hdl.handle.net/10962/d1001648
- Description: The current implementation of a free trade area in SADC has given rise to concerns that the present location of industry in the region will be adversely affected. Specifically, many of the smaller and less-developed countries fear that this change will result in a loss of their industry towards the more developed members, and particularly towards South Africa. This study uses the framework of the new economic geography to address these concerns. The new economic geography is a body of theory that has arisen in the last decade and allows for a dynamic analysis of the process of regional integration. Studies of such dynamic effects in the developing country context are exceedingly scarce, and particularly so in southern Africa. Another area of little research is in the comparison of the evolving industrial structure of different regional blocs. Thus, in response to this gap in the literature and in order to address the concerns of polarisation of industry within the SADC region, a two-pronged empirical approach is taken. The study first conducts a review of the spatial distribution of industry within SADC from 1970 to 1999. This is achieved through the calculation and examination of industrial locational Gini coefficients, measuring the relative degree of concentration of 28 ISIC (rev 2) industries for the years 1970, 1980, 1985, 1990, 1995 and 1999. Secondly, an empirical comparison is conducted with other blocs that are in the process of deepening regional integration, namely the European Union and Mercosur. Again, this is done through the calculation of locational Gini coefficients for individual industries for all three blocs at five year intervals from 1980 to 1995, and then for 1999. The average level of concentration within SADC is found to increase steadily from 1970 to 1990. Between 1990 and 1995, the level of concentration increases further, but at a lower rate, and, by 1999 industry begins to disperse. The Gini coefficient is a relative measure, and thus does not measure the absolute level of concentration. Thus, much of the increase in concentration seen is towards peripheral countries. To further interpret the Gini, the changes in concentration are compared to the absolute changes in manufacturing employment in South Africa. From this analysis, eight of the 28 industries analysed show particular tendencies to concentrate in the periphery. These are beverages, textiles, wearing apparel, paper and products, rubber products, other non-metallic mineral products, transport equipment, and professional and scientific equipment. Likewise, another six industries become more concentrated in South Africa over this time, namely food products, printing and publishing, industrial chemicals, petroleum refineries, miscellaneous petroleum and coal products, and electrical machinery. According to the Gini coefficient, the tobacco industry is by far the most concentrated, while the wood products industry is the most dispersed. It is also found that scale-intensive industries tend to be among the most concentrated. In the cross-bloc comparison, Mercosur has the lowest level of aggregate concentration with an average Gini of 0.08 in 1999. This compares with Ginis of 0.28 for the EU, and 0.22 for SADC. The EU has the largest increase in concentration over the period, while the concentration in Mercosur falls during the 1980s, increases in the mid 1990s and then falls again by 1999. A common theme, however, between all three blocs is a trend towards dispersion in the late 1990s. This is particularly apparent in SADC and Mercosur where the Gini decreases in value, while in the EU, the Gini only increases marginally in this period. Other studies of the EU have indicated that industry was starting to disperse at this time. This finding would be more apparent at a greater level of industrial disaggregation. The following industries are found to be agglomerated above the average level in all three blocs: tobacco, miscellaneous petroleum and coal products, and pottery china and earthenware. Conversely, transport equipment, paper and products, machinery except electrical, plastic products, rubber products, and fabricated metal products tend to be more dispersed across all three. Perhaps more interesting is that there appears to be some commonality between industries that become more agglomerated across all three blocs, while industries that dispersed tend to be region specific. The industries that show universal agglomeration tendencies are the highly sensitive wearing apparel and textiles industries, in addition to industrial chemicals, printing and publishing, iron and steel, and plastic products. In relation to SADC, the first two of these industries show an increased concentration in the periphery, as in the EU, while the remaining industries show tendencies to concentrate in the core. The new economic geography predicts that, as the presently high levels of transport costs begin to fall in SADC, industry will tend to concentrate in the core. However, the results of this study indicate that the effect on manufacturing is, to a large extent, sector specific, with some manufacturing industries concentrating in the core and others in the periphery. The study therefore concludes that the mass polarization of industry from the smaller countries in SADC towards South Africa is unlikely to occur with the further reduction in trade costs. Although certain industries may be attracted towards the core, the high degree of wage disparity in the region and present trade concessions from developed markets overseas towards the peripheral countries, will make these countries an attractive location, particularly for export orientated firms. Two main policy recommendations result from the study. Firstly, individual countries in SADC need to promote those industries that show concentration tendencies in their country. Secondly, in order for the periphery to maximize their gain from the free trade area, transport costs within the region need to be reduced rapidly and effectively.
- Full Text:
- Date Issued: 2004
The perceived visual impacts and attitudes of the Grahamstown community towards the Waainek Wind-Farm
- Authors: Cruickshank, Kyle Mark
- Date: 2014
- Subjects: Renewable energy sources -- South Africa -- Grahamstown Wind power plants -- South Africa -- Grahamstown -- Public opinion Wind power plants -- Social aspects -- South Africa -- Grahamstown Wind power plants -- Environmental aspects -- South Africa -- Grahamstown Wind power plants -- Economic aspects -- South Africa Wind turbines -- South Africa
- Language: English
- Type: Thesis , Masters , MEcon
- Identifier: vital:1085 , http://hdl.handle.net/10962/d1011768
- Description: Renewable energy has become an important feature of most modern economies with clean and non-exhaustible sources of power being given a greater significance. Wind energy is one of the favoured renewable, as it is (2013) generally the cheapest and most mature technology available for commercial use. The South African government, as outlined by the Department of Energy's Integrated Resource Plan (IRP), aims to install 5 GW (Gigawatts) of wind energy by 2020. However, South Africa has had little experience in the wind energy industry which is limited to two projects, Klipheuwel (2002) and Darling (2008). Much effort has been dedicated to calculating balance sheet costs, which carries uncertainty due to the high reliance on country specific and site specific variables. An aspect which deserves more attention, and is often ignored, is the public‟s attitudes towards local wind farm developments, which have been known to "make or break" a project during the planning stages. Public backlashes have mostly been concerned with the visual "intrusiveness" of wind farms in the landscape. Detrimental effects on scenery, while seemingly innocuous, are acknowledged as being the single largest barrier to successful wind farm development. Individuals within an area become sentimentally attached to their surroundings, where significant rapid changes in the landscape are viewed as "damage". Economics recognises such declines in scenic resources as market failures, where an externalised cost is passed on to the public and is often not accounted for by private parties responsible for the liability. The primary objective therefore was to measure the magnitude of the visual impact, caused by the Waainek Wind Farm, on the Grahamstown community. Conventional NIMBY¹ (not in my back yard) reasoning, which seeks to explain local wind farm resistance, has attracted criticism with regard to its simplistic approach to wind farm problem identification. Contemporary arguments propose that NIMBY is a poor explanation for the trouble experienced on the local level because it groups problems into one all-encompassing term, leaving much of the discontent unexplained. Instead, the NIMBY explanation is really a broad set of unattended problems, largely resulting from the unsound practices present in the public participation process. Insufficient community involvement and disparities in the negotiation power structures have become the recent focus in wind farm literature. Essentially, these disparities force opposition groups to select factors which may seem more serious to developers, leading to ineffective remedial measures because the core underlying problems are not being remedied. Thus these considerations formed an additional area of investigation. No NIMBY effect was found for the Grahamstown community, as support for both the local and general level was roughly 80%. The public participation process on the other hand revealed that while many found the practices of the developer to be unfair, attitudes towards the wind farm were not adversely affected, especially for the lower income Grahamstown East areas. While the public participation process in this instance did not have any effect on people’s attitudes, careful inspection of the circumstances need to be given. Wind farms are new to South Africa, where the novelty and benefits are the focus of enthusiasm. Job opportunities as well as clean energy are positive drivers for attitudes; however given time, once the anticipation for wind farms dulls, real problems may be revealed. Thus it is crucial to implement good practice procedures during the public participation process, especially when national adoption rates of wind energy are low. Early implementation of an effective public participation process system will ensure that when major problems do arise in future projects, experience and institutional processes would have had ample opportunity to evolve appropriately over a period of time. The double bounded Contingent Valuation Method was used to value the impact of the wind farm on the Waainek scenery through a hypothetical scenario based procedure which presented pictures of the landscape before and after the wind farm had been installed. Based on the perceived impact of the wind farm, respondents were asked their Willingness to Pay to relocate the development, based solely on visual impacts. Learning design Contingent Valuation (Bateman et al., 2008) is a novel technique employed to familiarize respondents with the hypothetical market institution as well as the scenic goods being valued. Average Willingness to Pay was found to be R67 per month, with a final total monthly negative visual impact of R104,000 to R121,000 per month for the entire Grahamstown community. Grahamstown Central (middle-high income) residents were more likely to pay than Grahamstown East (low-middle income) East residents because of socio-economic differences present in each area. A ranking exercise determined that while negative visual impacts are present, the overall benefits derived from the wind farm are potentially much higher. Additionally, positive scenic improvements were found, but were not measured due to time constraints, and would have worked to reduce the net visual impact of the Waainek Wind Farm. ¹Problem where individuals support the general concept of wind power, but when it comes to local implementation, opposition to the development arises within the same group.
- Full Text:
- Date Issued: 2014