Aspects of the new repurchase system of monetary control in South Africa
- Springfield, Samantha Claire
- 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
- 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
Clustering as a strategy for manufacturing performance in the Eastern Cape Automotive industry
- Makuwaza, Gwynneth Chandakaita
- Authors: Makuwaza, Gwynneth Chandakaita
- Date: 2001
- Subjects: Automobile industry and trade , Automobile industry and trade -- South Africa -- Eastern Cape , Automobile industry and trade -- South Africa -- Eastern Cape -- Performance
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:937 , http://hdl.handle.net/10962/d1002670 , Automobile industry and trade , Automobile industry and trade -- South Africa -- Eastern Cape , Automobile industry and trade -- South Africa -- Eastern Cape -- Performance
- Description: South Africa's current industrial policy focuses on the economy at two levels: a sectoral and spatial level. The former relates to the manner in which industrial policy is concentrating on particular sectors i.e. industrial clusters. This shift in industrial policy from targeting individual industries to an emphasis on industrial clusters, has complemented the change in focus to export promotion under trade policy. Furthermore, there has been increasing recognition of the need to improve industry performance and competitiveness in order to successfully implement export growth. Industry clusters are considered as having the potential to increase manufacturing performance and can provide the basis for sustainable competitive advantage for nations. Consequently the concept of industry clusters was introduced in South Africa in 1997. Because industry clusters are relatively new in South Africa, most of the cluster initiatives in various sectors of the economy are in their early stages of development. Nevertheless, some are already showing signs of potential success in increasing competitiveness in particular sectors. This thesis uses Porter's "diamond" framework apprdach to investigate whether clustering has improved the manufacturing performance of the motor industry in the Eastern Cape. International experience from both developed and developing countries will illustrate the potential of clustering as a powerful strategy in increasing manufacturing performance and consequently competitiveness. Ultimately this should lead to long-term economic development, especially if government adopts clusterbased economic development policies. Information from a survey conducted on both the motor vehicle assemblers and component suppliers is used in this study. The findings reveal that it is mainly the motor vehicle assemblers who have experienced some improvements in manufacturing performance. The components sector on the other hand has not experienced any such improvements. This thesis concludes with the recommendation that it is important to develop cluster policy as a broader and dynamic view of competition. The main emphasis under such policy would be a move from targeting particular industries and providing subsidies towards focusing attention to all clusters in the economy. To effectively apply such a policy requires the repositioning of national, local and provincial government in order to become more involved in regional development issues. Moreover, the various levels of government need to incorporate cluster policy into their competitive strategies.
- Full Text:
- Date Issued: 2001
- Authors: Makuwaza, Gwynneth Chandakaita
- Date: 2001
- Subjects: Automobile industry and trade , Automobile industry and trade -- South Africa -- Eastern Cape , Automobile industry and trade -- South Africa -- Eastern Cape -- Performance
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:937 , http://hdl.handle.net/10962/d1002670 , Automobile industry and trade , Automobile industry and trade -- South Africa -- Eastern Cape , Automobile industry and trade -- South Africa -- Eastern Cape -- Performance
- Description: South Africa's current industrial policy focuses on the economy at two levels: a sectoral and spatial level. The former relates to the manner in which industrial policy is concentrating on particular sectors i.e. industrial clusters. This shift in industrial policy from targeting individual industries to an emphasis on industrial clusters, has complemented the change in focus to export promotion under trade policy. Furthermore, there has been increasing recognition of the need to improve industry performance and competitiveness in order to successfully implement export growth. Industry clusters are considered as having the potential to increase manufacturing performance and can provide the basis for sustainable competitive advantage for nations. Consequently the concept of industry clusters was introduced in South Africa in 1997. Because industry clusters are relatively new in South Africa, most of the cluster initiatives in various sectors of the economy are in their early stages of development. Nevertheless, some are already showing signs of potential success in increasing competitiveness in particular sectors. This thesis uses Porter's "diamond" framework apprdach to investigate whether clustering has improved the manufacturing performance of the motor industry in the Eastern Cape. International experience from both developed and developing countries will illustrate the potential of clustering as a powerful strategy in increasing manufacturing performance and consequently competitiveness. Ultimately this should lead to long-term economic development, especially if government adopts clusterbased economic development policies. Information from a survey conducted on both the motor vehicle assemblers and component suppliers is used in this study. The findings reveal that it is mainly the motor vehicle assemblers who have experienced some improvements in manufacturing performance. The components sector on the other hand has not experienced any such improvements. This thesis concludes with the recommendation that it is important to develop cluster policy as a broader and dynamic view of competition. The main emphasis under such policy would be a move from targeting particular industries and providing subsidies towards focusing attention to all clusters in the economy. To effectively apply such a policy requires the repositioning of national, local and provincial government in order to become more involved in regional development issues. Moreover, the various levels of government need to incorporate cluster policy into their competitive strategies.
- Full Text:
- Date Issued: 2001
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
Towards more accurate measurement of the value of the arts to society: economic impact and willingness to pay studies at the Standard Bank National Arts Festival
- Authors: Snowball, Jeanette Dalziel
- Date: 2001
- Subjects: Standard Bank National Arts Festival , Standard Bank National Arts Festival -- Economic aspects , Art -- Economic aspects , Money in art , Art -- Marketing , Performing arts festivals -- Economic aspects -- South Africa -- Grahamstown
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:939 , http://hdl.handle.net/10962/d1002672
- Description: The accurate measurement of the value of the arts to society is becoming increasingly important in developing countries, like South Africa, where the arts must compete with housing, health, education and the like for public funds. Motivation for the public funding of arts events, like the Standard Bank National Arts Festival in Grahamstown, is usually based on the economic impact, that is, the financial benefits to the region, of such events. The argument is problematic, however, because the primary recipients of such economic benefits are often middle to upper income groups who also attend more arts performances. Furthermore, the studies have not taken into account the positive externalities which, it is argued, are generated by the arts and are enjoyed by attenders and non attenders alike. This thesis argues that it is the social benefits which the arts provide, those external to the market, which should be the basis of public funding. In order to quantify these positive externalities, a willingness to pay (WTP) study was conducted in the Grahamstown region. It is generally, but erroneously, believed that the Festival does not benefit the poorer, largely black, Grahamstown East residents. The study found that, in addition to the economic value (R23 - 25 million a year), the non-market benefits which the festival provides are worth between R2.3 and R3 million a year and form a very important part of its value, particularly to low income groups. The study also found that there are methodological adjustments which can be made to WTP studies to successfully control for the many forms of bias it is prone to. By using a combination of closed and open ended and liable and non-liable questions, the motivation of respondents' answers to WTP questions was determined, making it possible to adjust for bias caused by, for example, "free rider" and "warm glow" responses. It is argued that by identifying and excluding such responses from WTP surveys, it is possible to reduce bias to an acceptable level.
- Full Text:
- Date Issued: 2001
- Authors: Snowball, Jeanette Dalziel
- Date: 2001
- Subjects: Standard Bank National Arts Festival , Standard Bank National Arts Festival -- Economic aspects , Art -- Economic aspects , Money in art , Art -- Marketing , Performing arts festivals -- Economic aspects -- South Africa -- Grahamstown
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:939 , http://hdl.handle.net/10962/d1002672
- Description: The accurate measurement of the value of the arts to society is becoming increasingly important in developing countries, like South Africa, where the arts must compete with housing, health, education and the like for public funds. Motivation for the public funding of arts events, like the Standard Bank National Arts Festival in Grahamstown, is usually based on the economic impact, that is, the financial benefits to the region, of such events. The argument is problematic, however, because the primary recipients of such economic benefits are often middle to upper income groups who also attend more arts performances. Furthermore, the studies have not taken into account the positive externalities which, it is argued, are generated by the arts and are enjoyed by attenders and non attenders alike. This thesis argues that it is the social benefits which the arts provide, those external to the market, which should be the basis of public funding. In order to quantify these positive externalities, a willingness to pay (WTP) study was conducted in the Grahamstown region. It is generally, but erroneously, believed that the Festival does not benefit the poorer, largely black, Grahamstown East residents. The study found that, in addition to the economic value (R23 - 25 million a year), the non-market benefits which the festival provides are worth between R2.3 and R3 million a year and form a very important part of its value, particularly to low income groups. The study also found that there are methodological adjustments which can be made to WTP studies to successfully control for the many forms of bias it is prone to. By using a combination of closed and open ended and liable and non-liable questions, the motivation of respondents' answers to WTP questions was determined, making it possible to adjust for bias caused by, for example, "free rider" and "warm glow" responses. It is argued that by identifying and excluding such responses from WTP surveys, it is possible to reduce bias to an acceptable level.
- Full Text:
- Date Issued: 2001
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