An econometric analysis of the impact of economic freedom on economic growth in the SADC
- Authors: Gorlach, Vsevolod Igorevich
- Date: 2011
- Subjects: Economic development -- South Africa , Economic development
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:8983 , http://hdl.handle.net/10948/1539 , Economic development -- South Africa , Economic development
- Description: The conventional approach to increasing economic growth - increasing inputs, such as labour and capital, is not always possible. The wider, fundamental sources of economic growth need to be considered too. Foreign aid is a temporary lifeline and does not spur economic growth. Conversely, financial assistance negatively affects growth and can hamper development prospects. Economic freedom and economically freer countries have been associated with higher growth rates, higher per capita incomes, greater volumes of trade, prosperity and overall wellbeing. By improving their economic freedom, deregulating the economy and allowing economic freedom to prosper, countries can experience sustained GDP growth. Previous studies have shown that economic freedom and economic growth are exponentially related - and that by initially becoming freer, countires can increase their growth rates at higher rates. The main objective of the SADC is to achieve development and economic growth, to alleviate poverty and enhance the standard and quality of life for the peoples of Southern Africa. The SADC is attempting to achieve economic integration through macroeconomic convergence. A number of macroeconomic variables have been set to act as primary indicators. These include inflation, fiscal balance, public debt and the current account balance. By introducing the concept that economic freedom can lead to higher growth rates and being able to identify economic freedom, it makes it possible to investigate how the SADC can achieve its set goals by becoming freer. By investigating individual components that constitute the overall freedom index, it becomes possible to establish the relationship that exists between this viriable and economic growth. This will illustrate where deregulation and freedom are most effective and where policy decisions need to be highlighted. The 2008 economic crisis revealed that countries that decreased their economic freedom have fared worse than countries allowing freedom to prosper. Government fiscal stimulus has had no positive impact on growth rates; the negative effects of reducing economic freedom will onlky be fully seen in future years. However, the majority of the SADC countries showed a relatively strong fiscal stance during the recession. This study established whether that a positive relationship between economic freedom and economic growth in the SADC. Secondly, the direction of causality that economic freedom leads to economic growth. The findings reveal that economic freedom fosters economic growth in general, and for the SADC in particular. Empirical evidence has been found for the SADC; and the implications of becoming freer are more fully explained.
- Full Text:
- Date Issued: 2011
- Authors: Gorlach, Vsevolod Igorevich
- Date: 2011
- Subjects: Economic development -- South Africa , Economic development
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:8983 , http://hdl.handle.net/10948/1539 , Economic development -- South Africa , Economic development
- Description: The conventional approach to increasing economic growth - increasing inputs, such as labour and capital, is not always possible. The wider, fundamental sources of economic growth need to be considered too. Foreign aid is a temporary lifeline and does not spur economic growth. Conversely, financial assistance negatively affects growth and can hamper development prospects. Economic freedom and economically freer countries have been associated with higher growth rates, higher per capita incomes, greater volumes of trade, prosperity and overall wellbeing. By improving their economic freedom, deregulating the economy and allowing economic freedom to prosper, countries can experience sustained GDP growth. Previous studies have shown that economic freedom and economic growth are exponentially related - and that by initially becoming freer, countires can increase their growth rates at higher rates. The main objective of the SADC is to achieve development and economic growth, to alleviate poverty and enhance the standard and quality of life for the peoples of Southern Africa. The SADC is attempting to achieve economic integration through macroeconomic convergence. A number of macroeconomic variables have been set to act as primary indicators. These include inflation, fiscal balance, public debt and the current account balance. By introducing the concept that economic freedom can lead to higher growth rates and being able to identify economic freedom, it makes it possible to investigate how the SADC can achieve its set goals by becoming freer. By investigating individual components that constitute the overall freedom index, it becomes possible to establish the relationship that exists between this viriable and economic growth. This will illustrate where deregulation and freedom are most effective and where policy decisions need to be highlighted. The 2008 economic crisis revealed that countries that decreased their economic freedom have fared worse than countries allowing freedom to prosper. Government fiscal stimulus has had no positive impact on growth rates; the negative effects of reducing economic freedom will onlky be fully seen in future years. However, the majority of the SADC countries showed a relatively strong fiscal stance during the recession. This study established whether that a positive relationship between economic freedom and economic growth in the SADC. Secondly, the direction of causality that economic freedom leads to economic growth. The findings reveal that economic freedom fosters economic growth in general, and for the SADC in particular. Empirical evidence has been found for the SADC; and the implications of becoming freer are more fully explained.
- Full Text:
- Date Issued: 2011
An investigation into public participation in the formulation of the local economic development (LED) strategy for Emahlahleni Local Municipality
- Authors: Mente, Mtutuzeli
- Date: 2011
- Subjects: Political participation -- South Africa -- Eastern Cape , Economic development
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:9112 , http://hdl.handle.net/10948/d1015023
- Description: This research study examined public participation activities in Lady Frere during the LED strategy formulation process. Lady Frere is one of the three small towns constituting Emalahleni Local Municipality (ELM).A review of existing literature and legal frameworks suggest that authentic participation by the public occurs when the dimensions of representativeness, interactiveness, use of stakeholder/public inputs and the quality of public inputs are satisfied. The current study sought to identify conditions that would serve as a measurement to be satisfied before we can say authenticity was factored into the public participation effort during the Local Economic Development (LED) strategy formulation process in Lady Frere. A three-tier model was adopted to assess the performance of the ELM public involvement initiatives during the LED process. Key indicators of the four dimensions of authenticity were formulated and used to determine authenticity of these initiatives (programs).The data for this study came from analysing the LED strategy (2010-2015) document and the qualitative interviews held with purposively selected respondents. Nineteen respondents representing different institutions in Lady Frere agreed to be interviewed for the study. Organisations represented included public service institutions in operation in Lady Frere, private formal businesses in operation in the area and some civil society structures present in the town. The results of this study suggest that the municipality fell short of implementing public participation programs that achieved authenticity during the LED strategy formulation process. A careful and well-intentioned use of various public participation tools that embrace increased interaction between municipal employees and the public can assist in achieving better levels of authenticity in their public involvement initiatives. The willingness of municipal staff to adopt new ideas and innovations learned during public engagements is key to achieving higher levels of authenticity in their programs. Municipal participation programs would greatly benefit from training that increases individual acceptance of public participation as a valid service delivery mechanism. The researcher took opportunity to suggest the following recommendations for the ELM to work towards: Increased opportunities for occurrence of authentic public participation; Creation of individual ownership of authenticity in public participation; Creation of community partnerships to foster authenticity in public participation.
- Full Text:
- Date Issued: 2011
- Authors: Mente, Mtutuzeli
- Date: 2011
- Subjects: Political participation -- South Africa -- Eastern Cape , Economic development
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:9112 , http://hdl.handle.net/10948/d1015023
- Description: This research study examined public participation activities in Lady Frere during the LED strategy formulation process. Lady Frere is one of the three small towns constituting Emalahleni Local Municipality (ELM).A review of existing literature and legal frameworks suggest that authentic participation by the public occurs when the dimensions of representativeness, interactiveness, use of stakeholder/public inputs and the quality of public inputs are satisfied. The current study sought to identify conditions that would serve as a measurement to be satisfied before we can say authenticity was factored into the public participation effort during the Local Economic Development (LED) strategy formulation process in Lady Frere. A three-tier model was adopted to assess the performance of the ELM public involvement initiatives during the LED process. Key indicators of the four dimensions of authenticity were formulated and used to determine authenticity of these initiatives (programs).The data for this study came from analysing the LED strategy (2010-2015) document and the qualitative interviews held with purposively selected respondents. Nineteen respondents representing different institutions in Lady Frere agreed to be interviewed for the study. Organisations represented included public service institutions in operation in Lady Frere, private formal businesses in operation in the area and some civil society structures present in the town. The results of this study suggest that the municipality fell short of implementing public participation programs that achieved authenticity during the LED strategy formulation process. A careful and well-intentioned use of various public participation tools that embrace increased interaction between municipal employees and the public can assist in achieving better levels of authenticity in their public involvement initiatives. The willingness of municipal staff to adopt new ideas and innovations learned during public engagements is key to achieving higher levels of authenticity in their programs. Municipal participation programs would greatly benefit from training that increases individual acceptance of public participation as a valid service delivery mechanism. The researcher took opportunity to suggest the following recommendations for the ELM to work towards: Increased opportunities for occurrence of authentic public participation; Creation of individual ownership of authenticity in public participation; Creation of community partnerships to foster authenticity in public participation.
- Full Text:
- Date Issued: 2011
Assessing internal contestations within the ANC: the post-Polokwane political landscape: the case-study of the Nelson Mandela Bay Municipality
- Authors: Ralo, Mpumezo Welcome
- Date: 2012
- Subjects: African National Congress , Politics, Practical -- South Africa , Political campaigns -- South Africa , Elections -- South Africa -- Eastern Cape , Economic development , South Africa -- Economic Conditions -- 2007 , South Africa -- Politics and government
- Language: English
- Type: Thesis , Masters , MPhil
- Identifier: vital:8302 , http://hdl.handle.net/10948/d1019783
- Description: The Elective Conference of the African National Congress (ANC) of 2007 that took place in Polokwane remains an important event since 1994 (Fikeni 2009). The economic policy of the ANC and candidature of Mbeki and Zuma for the presidency contributed to the growing of factionalism in the ruling party that culminated in the 2007 conference. The study investigates and analyses the development of factions and ideological contestations that seemed to punctuate the ANC towards its 2007 National Congress that took place in Polokwane. It examines the roots and causes of factionalism in the ANC with a specific focus on the Nelson Mandela Bay Municipality (NMBM). It also investigates the extent to which the conservative policies such as Growth, Employment and Redistribution (GEAR) contributed in the divisions and factionalism prior the 2007 polokwane conference. The study departs from the premise that history of the ANC is riddled with factionalism and ideological contestations that have been well documented. Furthermore, the political infighting within the ANC impacts on governance structures and the local government level. The study seeks to demonstrate the effects of the 2007 power contestations between Zuma and Mbeki on the NMBM. To this effect, the study demonstrates how the leadership contestations in the ruling party impacted on the service delivery in the city. For the purposes of analyzing and making sense of the nature of power plays within the ANC it draws from the theories of factionalism to illustrate that the link between the growing of factionalism and the one party dominant system.
- Full Text:
- Date Issued: 2012
- Authors: Ralo, Mpumezo Welcome
- Date: 2012
- Subjects: African National Congress , Politics, Practical -- South Africa , Political campaigns -- South Africa , Elections -- South Africa -- Eastern Cape , Economic development , South Africa -- Economic Conditions -- 2007 , South Africa -- Politics and government
- Language: English
- Type: Thesis , Masters , MPhil
- Identifier: vital:8302 , http://hdl.handle.net/10948/d1019783
- Description: The Elective Conference of the African National Congress (ANC) of 2007 that took place in Polokwane remains an important event since 1994 (Fikeni 2009). The economic policy of the ANC and candidature of Mbeki and Zuma for the presidency contributed to the growing of factionalism in the ruling party that culminated in the 2007 conference. The study investigates and analyses the development of factions and ideological contestations that seemed to punctuate the ANC towards its 2007 National Congress that took place in Polokwane. It examines the roots and causes of factionalism in the ANC with a specific focus on the Nelson Mandela Bay Municipality (NMBM). It also investigates the extent to which the conservative policies such as Growth, Employment and Redistribution (GEAR) contributed in the divisions and factionalism prior the 2007 polokwane conference. The study departs from the premise that history of the ANC is riddled with factionalism and ideological contestations that have been well documented. Furthermore, the political infighting within the ANC impacts on governance structures and the local government level. The study seeks to demonstrate the effects of the 2007 power contestations between Zuma and Mbeki on the NMBM. To this effect, the study demonstrates how the leadership contestations in the ruling party impacted on the service delivery in the city. For the purposes of analyzing and making sense of the nature of power plays within the ANC it draws from the theories of factionalism to illustrate that the link between the growing of factionalism and the one party dominant system.
- Full Text:
- Date Issued: 2012
Exchange rates and economic growth in emerging economies: the case of South Africa
- Authors: Sibanda, Bornapart
- Date: 2012
- Subjects: Economic development , Currency convertibility -- South Africa , Foreign exchange -- South Africa , Foreign exchange rates -- South Africa , Foreign exchange administration -- South Africa , South Africa -- Economic conditions
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11464 , http://hdl.handle.net/10353/d1007045 , Economic development , Currency convertibility -- South Africa , Foreign exchange -- South Africa , Foreign exchange rates -- South Africa , Foreign exchange administration -- South Africa , South Africa -- Economic conditions
- Description: This study examines the impact of exchange rate volatility and misalignment on economic growth in South Africa. It applies the Johansen co integration test and the vector error correction model on quarterly data for the period 1990:01-2010:04. Exchange rate volatility is measured as the standard deviation of both the nominal and nominal effective exchange rate. The study constructs three measures of exchange rate misalignment, with two of the measures constructed using the Producer Price Index and Consumer Price index based Purchasing Power Parity. The third measure was based on the difference between the nominal and effective exchange rate. Contrary to pre-dominant findings in the exchange rate literature, the study finds a positive and significant relationship between exchange rate volatility and economic growth and attributes it to composition of the country’s exports that are largely made up of commodities that act as essential inputs in many production processes. As a result, the variability of prices caused by exchange rate volatility is not expected to deter demand for these commodities. A negative and significant relationship between exchange rate misalignment and economic growth was found. The findings of the study show that it is important for monetary authorities to ensure that the exchange rate is always at an appropriate level in order to avoid the negative implications of exchange rate misalignment on economic growth.
- Full Text:
- Date Issued: 2012
- Authors: Sibanda, Bornapart
- Date: 2012
- Subjects: Economic development , Currency convertibility -- South Africa , Foreign exchange -- South Africa , Foreign exchange rates -- South Africa , Foreign exchange administration -- South Africa , South Africa -- Economic conditions
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11464 , http://hdl.handle.net/10353/d1007045 , Economic development , Currency convertibility -- South Africa , Foreign exchange -- South Africa , Foreign exchange rates -- South Africa , Foreign exchange administration -- South Africa , South Africa -- Economic conditions
- Description: This study examines the impact of exchange rate volatility and misalignment on economic growth in South Africa. It applies the Johansen co integration test and the vector error correction model on quarterly data for the period 1990:01-2010:04. Exchange rate volatility is measured as the standard deviation of both the nominal and nominal effective exchange rate. The study constructs three measures of exchange rate misalignment, with two of the measures constructed using the Producer Price Index and Consumer Price index based Purchasing Power Parity. The third measure was based on the difference between the nominal and effective exchange rate. Contrary to pre-dominant findings in the exchange rate literature, the study finds a positive and significant relationship between exchange rate volatility and economic growth and attributes it to composition of the country’s exports that are largely made up of commodities that act as essential inputs in many production processes. As a result, the variability of prices caused by exchange rate volatility is not expected to deter demand for these commodities. A negative and significant relationship between exchange rate misalignment and economic growth was found. The findings of the study show that it is important for monetary authorities to ensure that the exchange rate is always at an appropriate level in order to avoid the negative implications of exchange rate misalignment on economic growth.
- Full Text:
- Date Issued: 2012
Factors affecting the impact of BEE strategies in enhancing previously disadvantaged beneficiaries in Manquma Local Municipality
- Authors: Bota, Patrick Mziwoxolo
- Date: 2013
- Subjects: Affirmative action programs -- South Africa , Blacks -- South Africa -- Economic conditions , Municipal government -- South Africa , Economic development
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:9174 , http://hdl.handle.net/10948/d1020115
- Description: This research project is about the “Factors Affecting the impact of Black Economic Empowerment strategies in enhancing previously disadvantaged beneficiaries in Mnquma Local Municipality.” The purpose is to examine the challenges faced by previously disadvantaged beneficiaries so as to emerge with new innovative BEE mechanisms that can be implemented to improve the situation faced by beneficiaries for the better. To achieve this objective, it was necessary to study the iterature of “Black Economic Empowerment” which is part of the Local Economic Development initiatives. In order to attain the main objective of the study and also to address the research problem face to face interviews were conducted with previously disadvantaged beneficiaries, Local Economic Development officials and councillors from five different wards of Mnquma Local Municipality. The literature review and the interviews helped one to come up with the recommendations to be adopted in order to remedy the situation of the beneficiaries. These recommendations will, hopefully, be of assistance to Mnquma Local Municipality. Findings of this study indicate that challenges faced by previously disadvantaged beneficiaries include: fronting, lack of finance, skills shortage like technical, management, budgeting and saving skills, absence of training workshops, and lack of support on SMMEs development as well as poor implementation of BEE policy by Local Economic Development Unit. The aforesaid challenges have negative effects on the implementation of BEE strategies which adversely affect the beneficiaries. Here are some of the recommendations made in this regard: support and assistance for previously disadvantaged beneficiaries like financial assistance, Khula financial schemes, bank loans, training and workshops, establishment of agricultural projects as well as assistance on coordination of co-operatives initiatives. Other recommendations provide possible solutions to these problems: corruption, nepotism and cadreship deployment. In order to act against these transgressions the following suggestions have been made in the study: containment of fronting, development of heritage and historical sites for tourists’ purposes, recommendation on BEE management strategies and also recommendation on business registration and licensing. The study concludes that if the Mnquma Local Municipality can execute all the proposed recommendations, all the factors raised as the stumbling block towards the success and beneficiary of the previously disadvantaged beneficiaries would be resolved.
- Full Text:
- Date Issued: 2013
- Authors: Bota, Patrick Mziwoxolo
- Date: 2013
- Subjects: Affirmative action programs -- South Africa , Blacks -- South Africa -- Economic conditions , Municipal government -- South Africa , Economic development
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:9174 , http://hdl.handle.net/10948/d1020115
- Description: This research project is about the “Factors Affecting the impact of Black Economic Empowerment strategies in enhancing previously disadvantaged beneficiaries in Mnquma Local Municipality.” The purpose is to examine the challenges faced by previously disadvantaged beneficiaries so as to emerge with new innovative BEE mechanisms that can be implemented to improve the situation faced by beneficiaries for the better. To achieve this objective, it was necessary to study the iterature of “Black Economic Empowerment” which is part of the Local Economic Development initiatives. In order to attain the main objective of the study and also to address the research problem face to face interviews were conducted with previously disadvantaged beneficiaries, Local Economic Development officials and councillors from five different wards of Mnquma Local Municipality. The literature review and the interviews helped one to come up with the recommendations to be adopted in order to remedy the situation of the beneficiaries. These recommendations will, hopefully, be of assistance to Mnquma Local Municipality. Findings of this study indicate that challenges faced by previously disadvantaged beneficiaries include: fronting, lack of finance, skills shortage like technical, management, budgeting and saving skills, absence of training workshops, and lack of support on SMMEs development as well as poor implementation of BEE policy by Local Economic Development Unit. The aforesaid challenges have negative effects on the implementation of BEE strategies which adversely affect the beneficiaries. Here are some of the recommendations made in this regard: support and assistance for previously disadvantaged beneficiaries like financial assistance, Khula financial schemes, bank loans, training and workshops, establishment of agricultural projects as well as assistance on coordination of co-operatives initiatives. Other recommendations provide possible solutions to these problems: corruption, nepotism and cadreship deployment. In order to act against these transgressions the following suggestions have been made in the study: containment of fronting, development of heritage and historical sites for tourists’ purposes, recommendation on BEE management strategies and also recommendation on business registration and licensing. The study concludes that if the Mnquma Local Municipality can execute all the proposed recommendations, all the factors raised as the stumbling block towards the success and beneficiary of the previously disadvantaged beneficiaries would be resolved.
- Full Text:
- Date Issued: 2013
Impact of economic freedom on CEMAC countries
- Authors: Ossono NII, Edith Gloria
- Date: 2012
- Subjects: Free enterprise , Economic development , Monetary policy -- Africa, Central , Africa, Central -- Economic integration , Africa, Central -- Economic policy
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9020 , http://hdl.handle.net/10948/d1019713
- Description: The study aimed to evaluate the impact of economic freedom on economic growth and investments in the Economic and Monetary Community of Central Africa (CEMAC). The region was created in 1994 by the six states of Cameroon, Chad, the Central African Republic, the Republic of Congo, Gabon and Equatorial Guinea. CEMAC countries comprise low and middle-income countries that share the same currency - the CFA Franc. The CEMAC countries were observed between 1995 and 2008 and panel regression methodologies were employed. A positive impact of economic freedom on economic growth was established using fixed effects method and the generalised method of moments. The impact of a unit increase in the economic freedom index on GDP per capita ranged between 72.65 and 124.51 units (dollars) increase on GDP per capita, ceteris paribus. Economic freedom was also found to Granger-cause economic growth. The results underline a significantly positive relationship between economic freedom and economic growth which is consistent with existing literature. The impact of economic freedom on domestic investment and foreign directs investment was then examined. With regard to domestic investment, economic freedom was found to be statistically significant and positive in all specifications of the model, thereby implying that a unit increase in the economic freedom index increases domestic investment by values of between 0.50 and 0.69 dollars in the CEMAC. The results obtained were consistent with most findings on the relationship between economic freedom and investments. With regard to the relationship between economic freedom and foreign direct investment inflows, economic freedom was unexpectedly statistically insignificant in most specifications of the model. The latter implies that economic freedom does not have a significant impact on foreign direct investment in the CEMAC. However, the study revealed that economic freedom Granger-causes foreign direct investment but foreign direct investment does not Granger-cause economic freedom. This means that economic freedom precedes foreign direct investments, and foreign direct investments do not precede economic freedom. The study strongly recommends an improvement of institutions in the CEMAC in order to enjoy greater levels of economic freedom and therefore foster economic growth and domestic investment in the region.
- Full Text:
- Date Issued: 2012
- Authors: Ossono NII, Edith Gloria
- Date: 2012
- Subjects: Free enterprise , Economic development , Monetary policy -- Africa, Central , Africa, Central -- Economic integration , Africa, Central -- Economic policy
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9020 , http://hdl.handle.net/10948/d1019713
- Description: The study aimed to evaluate the impact of economic freedom on economic growth and investments in the Economic and Monetary Community of Central Africa (CEMAC). The region was created in 1994 by the six states of Cameroon, Chad, the Central African Republic, the Republic of Congo, Gabon and Equatorial Guinea. CEMAC countries comprise low and middle-income countries that share the same currency - the CFA Franc. The CEMAC countries were observed between 1995 and 2008 and panel regression methodologies were employed. A positive impact of economic freedom on economic growth was established using fixed effects method and the generalised method of moments. The impact of a unit increase in the economic freedom index on GDP per capita ranged between 72.65 and 124.51 units (dollars) increase on GDP per capita, ceteris paribus. Economic freedom was also found to Granger-cause economic growth. The results underline a significantly positive relationship between economic freedom and economic growth which is consistent with existing literature. The impact of economic freedom on domestic investment and foreign directs investment was then examined. With regard to domestic investment, economic freedom was found to be statistically significant and positive in all specifications of the model, thereby implying that a unit increase in the economic freedom index increases domestic investment by values of between 0.50 and 0.69 dollars in the CEMAC. The results obtained were consistent with most findings on the relationship between economic freedom and investments. With regard to the relationship between economic freedom and foreign direct investment inflows, economic freedom was unexpectedly statistically insignificant in most specifications of the model. The latter implies that economic freedom does not have a significant impact on foreign direct investment in the CEMAC. However, the study revealed that economic freedom Granger-causes foreign direct investment but foreign direct investment does not Granger-cause economic freedom. This means that economic freedom precedes foreign direct investments, and foreign direct investments do not precede economic freedom. The study strongly recommends an improvement of institutions in the CEMAC in order to enjoy greater levels of economic freedom and therefore foster economic growth and domestic investment in the region.
- Full Text:
- Date Issued: 2012
Reviewing the definition of the natural resource curse and analysing its occurence post-1990
- Authors: Mwansa, Mumamba Chitumwa
- Date: 2014
- Subjects: Resource curse , Natural resources -- Management , Economic development , National income
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1100 , http://hdl.handle.net/10962/d1013243
- Description: That countries with high natural resource abundance should experience slower economic growth than those with low resource abundance seems contrary to what would be expected, considering the developmental head-start such resources afford. Yet Sachs and Warner (1997) found that economies with a high share of natural resource exports in national income in 1970 tended to experience slower economic growth in the two decades that followed. This finding, that natural resources are a “curse” rather than a blessing, has become generally accepted. This thesis sought to test whether the conclusion drawn from their data – that higher natural resource abundance leads to slower economic growth – is still correct. It sought to test their findings first by correcting for their use of resource intensity (natural resources share of exports) as a proxy for abundance. Using measures of resource abundance for 1995 as a proxy for abundance in previous decades, it was found that higher resource abundance was not associated with lower economic growth in the 1970s and 1980s. This finding is contrary to that of Sachs and Warner (1997, 2001). Secondly, this thesis tested whether the natural resource curse effect was still present for the period 1995–2010. This was done by observing the effect of both resource abundance and resource intensity on economic growth during 1995–2010. In both cases no resource curse effect was found, for this more recent period. The resource curse had disappeared regardless of whether one uses Sachs and Warner’s (1997, 2001) measure of resource intensity or a measure of resource abundance. Natural resources should therefore no longer be considered a “curse”. In explaining the difference for the impact of resource intensity between the 1970-90 period measured by Sachs and Warner (1997, 2001) and the more recent period 1995-2010 it was found that the Dutch Disease effect has decreased significantly since the 1970s and 1980s. This could partly explain why the resource curse has disappeared when measured in terms of resource intensity. Thus it was concluded that the natural resource curse existed in the period 1970-90 only when measured in terms of resource intensity but not when measured relative to resource abundance. The negative effects of natural resources on economic growth have disappeared in terms of both resource intensity and resource abundance in the more recent time period.
- Full Text:
- Date Issued: 2014
- Authors: Mwansa, Mumamba Chitumwa
- Date: 2014
- Subjects: Resource curse , Natural resources -- Management , Economic development , National income
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1100 , http://hdl.handle.net/10962/d1013243
- Description: That countries with high natural resource abundance should experience slower economic growth than those with low resource abundance seems contrary to what would be expected, considering the developmental head-start such resources afford. Yet Sachs and Warner (1997) found that economies with a high share of natural resource exports in national income in 1970 tended to experience slower economic growth in the two decades that followed. This finding, that natural resources are a “curse” rather than a blessing, has become generally accepted. This thesis sought to test whether the conclusion drawn from their data – that higher natural resource abundance leads to slower economic growth – is still correct. It sought to test their findings first by correcting for their use of resource intensity (natural resources share of exports) as a proxy for abundance. Using measures of resource abundance for 1995 as a proxy for abundance in previous decades, it was found that higher resource abundance was not associated with lower economic growth in the 1970s and 1980s. This finding is contrary to that of Sachs and Warner (1997, 2001). Secondly, this thesis tested whether the natural resource curse effect was still present for the period 1995–2010. This was done by observing the effect of both resource abundance and resource intensity on economic growth during 1995–2010. In both cases no resource curse effect was found, for this more recent period. The resource curse had disappeared regardless of whether one uses Sachs and Warner’s (1997, 2001) measure of resource intensity or a measure of resource abundance. Natural resources should therefore no longer be considered a “curse”. In explaining the difference for the impact of resource intensity between the 1970-90 period measured by Sachs and Warner (1997, 2001) and the more recent period 1995-2010 it was found that the Dutch Disease effect has decreased significantly since the 1970s and 1980s. This could partly explain why the resource curse has disappeared when measured in terms of resource intensity. Thus it was concluded that the natural resource curse existed in the period 1970-90 only when measured in terms of resource intensity but not when measured relative to resource abundance. The negative effects of natural resources on economic growth have disappeared in terms of both resource intensity and resource abundance in the more recent time period.
- Full Text:
- Date Issued: 2014
The effects of liberalisation and regulation of cellphone companies from 2007 - 2018: a study of Buffalo city municipality
- Malobola, Nomvuyo Ursula Vuyokazi
- Authors: Malobola, Nomvuyo Ursula Vuyokazi
- Date: 2020
- Subjects: Economic development
- Language: English
- Type: Thesis , Masters , MSoc (Communications)
- Identifier: http://hdl.handle.net/10353/18153 , vital:42237
- Description: This study focuses on the effects of liberalisation and regulation of the telecommunications sector in South Africa. A qualitative research method was adopted and the researcher conducted focus group interviews with participants that were purposely selected to collect data from different suburbs around the Buffalo City Metropolitan area in the Eastern Cape Province, South Africa. The areas were Mdantsane, Selborne and Southernwood, which have large populations and obviously enjoy high cell phone usage. In addition, an in-depth interview was conducted with an official of the Independent Communications Authority of South Africa (ICASA), which is the monitoring body for telecommunications in South Africa. The findings of this study have shown that despite the airtime and data being expensive, the telecoms sector is critical to the people of South Africa, and the failure by the government to regulate and liberalise the telecoms sector has led to expensive cell phone charges on the public. As such, it can be noted that the majority of the urban poor, especially in the Buffalo City Metropolitan, endure expensive charges. More so, the study found that there has been frustrating slow progress of transformation of the telecommunications industry and associated key national policy objectives. In addition, the study also recognises that as a member of WTO South Africa had to adopt policies of globalisation or risk isolation should it operate outside it. In addition, this study revealed that in spite of the challenges that are related to regulation and liberalisation, progress can still be made in reducing price hikes, especially when strategic investments are made in the telecommunication sector in South Africa.
- Full Text:
- Date Issued: 2020
- Authors: Malobola, Nomvuyo Ursula Vuyokazi
- Date: 2020
- Subjects: Economic development
- Language: English
- Type: Thesis , Masters , MSoc (Communications)
- Identifier: http://hdl.handle.net/10353/18153 , vital:42237
- Description: This study focuses on the effects of liberalisation and regulation of the telecommunications sector in South Africa. A qualitative research method was adopted and the researcher conducted focus group interviews with participants that were purposely selected to collect data from different suburbs around the Buffalo City Metropolitan area in the Eastern Cape Province, South Africa. The areas were Mdantsane, Selborne and Southernwood, which have large populations and obviously enjoy high cell phone usage. In addition, an in-depth interview was conducted with an official of the Independent Communications Authority of South Africa (ICASA), which is the monitoring body for telecommunications in South Africa. The findings of this study have shown that despite the airtime and data being expensive, the telecoms sector is critical to the people of South Africa, and the failure by the government to regulate and liberalise the telecoms sector has led to expensive cell phone charges on the public. As such, it can be noted that the majority of the urban poor, especially in the Buffalo City Metropolitan, endure expensive charges. More so, the study found that there has been frustrating slow progress of transformation of the telecommunications industry and associated key national policy objectives. In addition, the study also recognises that as a member of WTO South Africa had to adopt policies of globalisation or risk isolation should it operate outside it. In addition, this study revealed that in spite of the challenges that are related to regulation and liberalisation, progress can still be made in reducing price hikes, especially when strategic investments are made in the telecommunication sector in South Africa.
- Full Text:
- Date Issued: 2020
The effects of real exchange rate misalignment on economic growth: a case study of Kenya
- Authors: Ndavi, Theresa Watwii
- Date: 2012
- Subjects: Foreign exchange rate , Foreign exchange market , Economic development
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:8985 , http://hdl.handle.net/10948/d1008109 , Foreign exchange rate , Foreign exchange market , Economic development
- Description: This paper investigates the effects of real exchange rate misalignment (REM) on economic growth in Kenya over the period 1964-2009. The real exchange rate misalignment is defined as the difference between the equilibrium exchange rate and the actual real exchange rate (RER). The equilibrium real exchange rate was obtained by using the purchasing power parity (PPP) approach. To this effect, the study examined the existence or absence of the cointegration between the REM and economic growth, using the autoregressive distributed lag (ARDL) bounds testing approach. The ARDL approach is employed to determine both the long-run and short-run dynamics of the model. The results suggest that no long-run relationship exists between economic growth and the REM in Kenya. The short-run model is then estimated, using the OLS (ordinary least squares) method. From this model, it is determined that trade openness has a positive impact on economic growth, while foreign aid has a negative impact on economic growth; and both are considered empirically significant. The inflation rate and REM both negatively impact economic growth, but are empirically insignificant. All variables corroborate the a priori expectations.
- Full Text:
- Date Issued: 2012
- Authors: Ndavi, Theresa Watwii
- Date: 2012
- Subjects: Foreign exchange rate , Foreign exchange market , Economic development
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:8985 , http://hdl.handle.net/10948/d1008109 , Foreign exchange rate , Foreign exchange market , Economic development
- Description: This paper investigates the effects of real exchange rate misalignment (REM) on economic growth in Kenya over the period 1964-2009. The real exchange rate misalignment is defined as the difference between the equilibrium exchange rate and the actual real exchange rate (RER). The equilibrium real exchange rate was obtained by using the purchasing power parity (PPP) approach. To this effect, the study examined the existence or absence of the cointegration between the REM and economic growth, using the autoregressive distributed lag (ARDL) bounds testing approach. The ARDL approach is employed to determine both the long-run and short-run dynamics of the model. The results suggest that no long-run relationship exists between economic growth and the REM in Kenya. The short-run model is then estimated, using the OLS (ordinary least squares) method. From this model, it is determined that trade openness has a positive impact on economic growth, while foreign aid has a negative impact on economic growth; and both are considered empirically significant. The inflation rate and REM both negatively impact economic growth, but are empirically insignificant. All variables corroborate the a priori expectations.
- Full Text:
- Date Issued: 2012
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 local economic development on economic sustainability of Buffalo City Metro Municipality
- Authors: Mahlanza, Zanele
- Date: 2013
- Subjects: Economic development , Local government -- South Africa -- East London , Sustainable development -- South Africa -- East London
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:9172 , http://hdl.handle.net/10948/d1020110
- Description: The national framework of local economic development (LED) in South Africa (2006 – 2011) has the goal to support the growth of sustainable local economies through integrated government action. Municipalities as custodians of integrated development programs and local economic development strategies work with different stakeholders such as private industry, other government departments, non-government organizations and relevant community sectors in attaining envisioned developmental goals; thus are avoiding wasteful duplication of effort and resources. LED in the context of this study is defined as development of infrastructure within the BCMM for sustainability of small medium and micro enterprises in alleviating poverty in the area. This report presents an evaluation of the impact of local economic development in terms of basic infrastructure availability on the sustainability of small medium and micro enterprise development in the Buffalo City Metro Municipality (BCMM). This refers to amongst others accessibility of electricity and telecommunication in the operations of a business. The overall approach followed by the researcher throughout this research is the mixed methods or pragmatic approach. The research method followed is that one of a descriptive approach. The results of this study indicate that local economic development is still a new notion which is still unclear. There is evidence that there is a lack of basic services in some areas in the Buffalo City Metropolitan Municipal, this including access to electricity. The respondents also saw the local municipality as not doing much in support of new and small business and creating job opportunities for them. The study recommends that factors such as skills development, accessibility to basic service, development and promotion of SMMEs, are also major contributors to the effective impact of LED in BCMM.
- Full Text:
- Date Issued: 2013
- Authors: Mahlanza, Zanele
- Date: 2013
- Subjects: Economic development , Local government -- South Africa -- East London , Sustainable development -- South Africa -- East London
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:9172 , http://hdl.handle.net/10948/d1020110
- Description: The national framework of local economic development (LED) in South Africa (2006 – 2011) has the goal to support the growth of sustainable local economies through integrated government action. Municipalities as custodians of integrated development programs and local economic development strategies work with different stakeholders such as private industry, other government departments, non-government organizations and relevant community sectors in attaining envisioned developmental goals; thus are avoiding wasteful duplication of effort and resources. LED in the context of this study is defined as development of infrastructure within the BCMM for sustainability of small medium and micro enterprises in alleviating poverty in the area. This report presents an evaluation of the impact of local economic development in terms of basic infrastructure availability on the sustainability of small medium and micro enterprise development in the Buffalo City Metro Municipality (BCMM). This refers to amongst others accessibility of electricity and telecommunication in the operations of a business. The overall approach followed by the researcher throughout this research is the mixed methods or pragmatic approach. The research method followed is that one of a descriptive approach. The results of this study indicate that local economic development is still a new notion which is still unclear. There is evidence that there is a lack of basic services in some areas in the Buffalo City Metropolitan Municipal, this including access to electricity. The respondents also saw the local municipality as not doing much in support of new and small business and creating job opportunities for them. The study recommends that factors such as skills development, accessibility to basic service, development and promotion of SMMEs, are also major contributors to the effective impact of LED in BCMM.
- Full Text:
- Date Issued: 2013
The impact of regional integration in Africa: the case of South Africa and Botswana
- Authors: Letsatsi, Paseka C
- Date: 2012
- Subjects: Regional economics , Economic development , Trade blocs
- Language: English
- Type: Thesis , Masters , MPhil
- Identifier: vital:8235 , http://hdl.handle.net/10948/d1010176 , Regional economics , Economic development , Trade blocs
- Description: Regional integration can refer to the trade unification between different states by partial or full abolition of customs tariffs on trade taking place within the borders of each state. This is meant in turn to lead to lower prices for distributors and consumers (as no customs duties are paid within the integrated area) and the goal is to increase trade. (Economic integration,1950, p66) According to Mattli (1999, p.42), the analysis of the first problem takes the decision to adopt an integration treaty as a given, and is primarily concerned with identifying the condition under which the process of integration is likely to succeed or to fail. Implementation of an agreement by heads of states to tie the economies of their countries closer together entails a lengthy process of establishing common roles, regulations, and policies that are either based on specific treaty provisions or derived from general principles and objectives written into the integration agreement. Regional integration can be applied for varying forms of economic co-ordination or co-operation amongst different neighbouring states, there will however always be different political agendas in the process. If there is a treaty amongst member states, this treaty has to be enforced or it may result in the development of differences. “In order to address national priorities through regional action most member states had been allocated the responsibility of co-ordinating one or more sectors. This involved proposing sector policies, strategies and priorities, and processing projects for inclusion in the sectoral programme, monitoring progress and reporting to the council of Ministers”. (Department of International Relations & Co-operation, Republic of South Africa). Richard Baldwin, Daniel Cohen, Andre Sapir and Anthony Venables argue that, using the same basic model as Bond and Sypropoulos (1996a), they consider trigger strategies such that initially there is inter-bloc free trade supported by the threat of perpetual trade war if any party breaks the agreement. Regional integration can be understood as the process of providing common rules, regulation, and policies for a region. Regional integration is defined as a process that allows member states to have access to each other’s markets on a voluntary basis and at various degrees. Economic, political, social and cultural benefits are realised from this interaction. (Lee MC, 1999, p30) Regional integration can be seen as co-operation in a broader context but can also be an important framework, through programmes within each regional bloc. According to (Keet ,2005,p22) since the birth of democratic South Africa, regional co-operation is also seen – in addition to the broader African aims-to be an important framework, through programmes within the Southern African Development Community (SADC), within which to address the gross imbalances created both within and between the economies of the region. Regional integration has become a way of assisting the emerging economies to be able to use their proximity to align their economies with the core for economic development. According to (Hamdok, 1998, p34) the effective implementation of regional integration is founded on an enabling environment that promotes accountability, transparency and respect for the rule of law. Also a strong institutional framework at the regional and national levels is fundamental to streamline regional agreements into national policies. In addition, the establishment of effective transnational implementation tools provide opportunities to push reforms conducive to good governance at the regional level. A clear demonstration of this can be observed in effective? legal systems and the need for a regional framework and related judicial institutions to provide an improved regional environment for private development. Integration always provides space for member states to assist in the development of other member states and which have a common economic approach to development. This is done in order to ensure that there are incentives for all member states as compared to those who are outside the bloc. As evidenced in the case of Europe, economic integration helps create a homogenous space and, to some extent, equalises living conditions and if all other regional blocs follow this process the benefit becomes greater. These appear to be prerequisites for a dialogue on the harmonisation of political stands. Indeed, an economic space that is physically integrated; where goods and services move speedily and smoothly; where, besides, the mobility of factors (manpower, capital, energy and inputs) are not subjected to hindrances; where, finally, microeconomic policies are harmonised, is likely to offer equal opportunities to all. Such a high degree of economic integration is not sustainable without a policy dialogue on issues that, at first, may not fall squarely under the rubrics of economic field; peace and security, defense, diplomacy etc. (Blayo N, 1998, P.5) The process of regional co-operation within the Southern African Development Community (SADC) started in in 1980 through the formation of the Co-ordinating Conference which was later changed to SADC IN 1992. Even though it is clear that the South African government played a dominant role because of its apartheid policies, the basic condition was to start the process of integration and open the process of economic co-operation within the region. The Governments of the Republic of South Africa, the Republic of Botswana, the Kingdom of Lesotho and the Kingdom of Swaziland- being desirous of maintaining the free interchange of goods between their countries and of applying the same tariffs and trade regulations to goods imported from outside the common customs area as hereinafter defined; “Recognising that the Customs Agreement on 29 June 1910 as amended from time to time , requires modification to provide for the continuance of the customs union arrangements in the changed circumstances on a basis designed to ensure the continued economic development of the customs union area as a whole, and to ensure in particular that these arrangements encourage the development of the less advanced members of the customs union and the diversification of their economies, and afford to all parties equitable benefits arising from trade among themselves and other countries”.(Government Notice, R 3914,p1). Even though there’s an acknowledgement that under the difficult conditions during apartheid, there was a need for the region to develop a common approach towards development and sustainable growth in the Southern African region. All countries in the region had to co-operate for long term sustainable economic growth, peace and security. “In 1980, the Southern African Development Co-ordination Conference (SADCC) was established with the major objectives of decreasing economic dependence on the apartheid regime and fostering regional development. The strategy adopted for meeting these objectives was regional development and co-operation. In 1992 SADCC was reborn, as the Southern African Development Community (SADC). The member states decided the time had come to move the region towards the creation of one regional market”. (Lee MC, 1999, p1) “Through the establishment of the Southern African Customs Union (SACU) the Southern African region has managed under difficult conditions of economic inequalities to standardise the trade links amongst member states, although there is still more to be done in the region to achieve shared goals of development. The Southern African Customs Union (SACU) links the trade, regimes of Botswana, Lesotho, Namibia, South Africa and Swaziland.
- Full Text:
- Date Issued: 2012
- Authors: Letsatsi, Paseka C
- Date: 2012
- Subjects: Regional economics , Economic development , Trade blocs
- Language: English
- Type: Thesis , Masters , MPhil
- Identifier: vital:8235 , http://hdl.handle.net/10948/d1010176 , Regional economics , Economic development , Trade blocs
- Description: Regional integration can refer to the trade unification between different states by partial or full abolition of customs tariffs on trade taking place within the borders of each state. This is meant in turn to lead to lower prices for distributors and consumers (as no customs duties are paid within the integrated area) and the goal is to increase trade. (Economic integration,1950, p66) According to Mattli (1999, p.42), the analysis of the first problem takes the decision to adopt an integration treaty as a given, and is primarily concerned with identifying the condition under which the process of integration is likely to succeed or to fail. Implementation of an agreement by heads of states to tie the economies of their countries closer together entails a lengthy process of establishing common roles, regulations, and policies that are either based on specific treaty provisions or derived from general principles and objectives written into the integration agreement. Regional integration can be applied for varying forms of economic co-ordination or co-operation amongst different neighbouring states, there will however always be different political agendas in the process. If there is a treaty amongst member states, this treaty has to be enforced or it may result in the development of differences. “In order to address national priorities through regional action most member states had been allocated the responsibility of co-ordinating one or more sectors. This involved proposing sector policies, strategies and priorities, and processing projects for inclusion in the sectoral programme, monitoring progress and reporting to the council of Ministers”. (Department of International Relations & Co-operation, Republic of South Africa). Richard Baldwin, Daniel Cohen, Andre Sapir and Anthony Venables argue that, using the same basic model as Bond and Sypropoulos (1996a), they consider trigger strategies such that initially there is inter-bloc free trade supported by the threat of perpetual trade war if any party breaks the agreement. Regional integration can be understood as the process of providing common rules, regulation, and policies for a region. Regional integration is defined as a process that allows member states to have access to each other’s markets on a voluntary basis and at various degrees. Economic, political, social and cultural benefits are realised from this interaction. (Lee MC, 1999, p30) Regional integration can be seen as co-operation in a broader context but can also be an important framework, through programmes within each regional bloc. According to (Keet ,2005,p22) since the birth of democratic South Africa, regional co-operation is also seen – in addition to the broader African aims-to be an important framework, through programmes within the Southern African Development Community (SADC), within which to address the gross imbalances created both within and between the economies of the region. Regional integration has become a way of assisting the emerging economies to be able to use their proximity to align their economies with the core for economic development. According to (Hamdok, 1998, p34) the effective implementation of regional integration is founded on an enabling environment that promotes accountability, transparency and respect for the rule of law. Also a strong institutional framework at the regional and national levels is fundamental to streamline regional agreements into national policies. In addition, the establishment of effective transnational implementation tools provide opportunities to push reforms conducive to good governance at the regional level. A clear demonstration of this can be observed in effective? legal systems and the need for a regional framework and related judicial institutions to provide an improved regional environment for private development. Integration always provides space for member states to assist in the development of other member states and which have a common economic approach to development. This is done in order to ensure that there are incentives for all member states as compared to those who are outside the bloc. As evidenced in the case of Europe, economic integration helps create a homogenous space and, to some extent, equalises living conditions and if all other regional blocs follow this process the benefit becomes greater. These appear to be prerequisites for a dialogue on the harmonisation of political stands. Indeed, an economic space that is physically integrated; where goods and services move speedily and smoothly; where, besides, the mobility of factors (manpower, capital, energy and inputs) are not subjected to hindrances; where, finally, microeconomic policies are harmonised, is likely to offer equal opportunities to all. Such a high degree of economic integration is not sustainable without a policy dialogue on issues that, at first, may not fall squarely under the rubrics of economic field; peace and security, defense, diplomacy etc. (Blayo N, 1998, P.5) The process of regional co-operation within the Southern African Development Community (SADC) started in in 1980 through the formation of the Co-ordinating Conference which was later changed to SADC IN 1992. Even though it is clear that the South African government played a dominant role because of its apartheid policies, the basic condition was to start the process of integration and open the process of economic co-operation within the region. The Governments of the Republic of South Africa, the Republic of Botswana, the Kingdom of Lesotho and the Kingdom of Swaziland- being desirous of maintaining the free interchange of goods between their countries and of applying the same tariffs and trade regulations to goods imported from outside the common customs area as hereinafter defined; “Recognising that the Customs Agreement on 29 June 1910 as amended from time to time , requires modification to provide for the continuance of the customs union arrangements in the changed circumstances on a basis designed to ensure the continued economic development of the customs union area as a whole, and to ensure in particular that these arrangements encourage the development of the less advanced members of the customs union and the diversification of their economies, and afford to all parties equitable benefits arising from trade among themselves and other countries”.(Government Notice, R 3914,p1). Even though there’s an acknowledgement that under the difficult conditions during apartheid, there was a need for the region to develop a common approach towards development and sustainable growth in the Southern African region. All countries in the region had to co-operate for long term sustainable economic growth, peace and security. “In 1980, the Southern African Development Co-ordination Conference (SADCC) was established with the major objectives of decreasing economic dependence on the apartheid regime and fostering regional development. The strategy adopted for meeting these objectives was regional development and co-operation. In 1992 SADCC was reborn, as the Southern African Development Community (SADC). The member states decided the time had come to move the region towards the creation of one regional market”. (Lee MC, 1999, p1) “Through the establishment of the Southern African Customs Union (SACU) the Southern African region has managed under difficult conditions of economic inequalities to standardise the trade links amongst member states, although there is still more to be done in the region to achieve shared goals of development. The Southern African Customs Union (SACU) links the trade, regimes of Botswana, Lesotho, Namibia, South Africa and Swaziland.
- Full Text:
- Date Issued: 2012
The impact of social grants on poverty reduction
- Authors: Magawana, Xolisa Tania
- Date: 2013
- Subjects: Poverty -- Economic aspects , Economic development , Social problems
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:9170 , http://hdl.handle.net/10948/d1020106
- Description: The South African government implements numerous strategies with the aim of reducing poverty. The social grant system is one of these. Social grants are aimed at reducing poverty as well as income inequality. Considering the growing number of social grant beneficiaries, people often question whether these grants reduce poverty and, if they do, whether they are effective.This treatise investigates the impact of social grants in poverty reduction. In order to investigate this, the researcher used the Tshwane Metropolitan Municipality, Gauteng Province, as a study area. This study examines the different views of social grants beneficiaries, and the importance of prioritisation when using this unearned money. It alsoinvestigates the role played by the heads of household and shows how beneficiaries’ locations can influence the use of unearned income. Social grants dispense little money, but the researcher discovered that the responsibility of spending and allocating the money lies with the head of household. The descriptive statists show that social grants have created dependency and that families require exit strategies to stop depending entirely on these grants. Findings from the correlation matrix show both positive and negative correlations. Finally, the study has identified the need for an integrated strategy that will not only provide income, but that will also improve the lives of South Africans.
- Full Text:
- Date Issued: 2013
- Authors: Magawana, Xolisa Tania
- Date: 2013
- Subjects: Poverty -- Economic aspects , Economic development , Social problems
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:9170 , http://hdl.handle.net/10948/d1020106
- Description: The South African government implements numerous strategies with the aim of reducing poverty. The social grant system is one of these. Social grants are aimed at reducing poverty as well as income inequality. Considering the growing number of social grant beneficiaries, people often question whether these grants reduce poverty and, if they do, whether they are effective.This treatise investigates the impact of social grants in poverty reduction. In order to investigate this, the researcher used the Tshwane Metropolitan Municipality, Gauteng Province, as a study area. This study examines the different views of social grants beneficiaries, and the importance of prioritisation when using this unearned money. It alsoinvestigates the role played by the heads of household and shows how beneficiaries’ locations can influence the use of unearned income. Social grants dispense little money, but the researcher discovered that the responsibility of spending and allocating the money lies with the head of household. The descriptive statists show that social grants have created dependency and that families require exit strategies to stop depending entirely on these grants. Findings from the correlation matrix show both positive and negative correlations. Finally, the study has identified the need for an integrated strategy that will not only provide income, but that will also improve the lives of South Africans.
- Full Text:
- Date Issued: 2013
The role of agriculture in the Ncora area
- Authors: Mkwela, Gcobani
- Date: 2013
- Subjects: Agriculture -- Economic aspects -- South Africa -- Ncora , Agricultural development projects -- South Africa -- Ncora , Economic development
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:9240 , http://hdl.handle.net/10948/d1021107
- Description: Despite 19 years of democracy and public action by civil society, policy makers continue to neglect the role of agriculture in improving the quality of life in rural areas such as Ncora in the Eastern Cape. The communities in the Ncora area still experience poverty despite the fact people receive state grants. Agriculture is declining in this area without basic infrastructure. The study argues that communities in the Ncora area need assistance from government in order to increase agricultural activities. These activities are an important route through which these communities can reduce poverty. The primary objective of this study was to obtain a better understanding of the role of agriculture in reducing poverty in the Ncora rural areas. The conditions necessary to sustain agriculture in the rural areas were identified. This was mainly done to help alleviate the plight of rural areas in the Ncora area and to improve the quality of life of the rural population. The study was based on three research objectives. The first objective was to investigate the constraints to agricultural production in Ncora. The second objective was to ascertain what has been done by the Eastern Cape government in increasing agricultural activities. The third objective was to investigate the contribution of agriculture in reducing poverty in Ncora. The main finding in terms of the first research objective is that constraints to agricultural production in Ncora are structural constraints. These include inadequate infrastructure such as poor roads, lack of transport and equipment, lack of farming skills, poor quality seed, no access to markets, inadequate and unaffordable services. In terms of the second research objective, the main finding is that the government has encouraged investment in infrastructure using labour-intensive methods will eliminate service backlogs in underserviced areas such as Ncora. Secondly, it has encouraged the revival of irrigation schemes such as the Ncora irrigation scheme and is investing in human capital through the empowerment of people in order to improve the quality of life of the Ncora community. Empowerment involves skills and training, education and access to basic services, expertise regarding credit, land and the growing of vegetables. The development of human capital is an important determinant of the pace of economic development. Human, social, natural, financial and physical capital are essential elements of reducing poverty. In fact, the Ncora community has lobbied Intsika Yethu Municipality for community development Community development through education and community participation in development programmes. Efforts have to be made to increase the skills that will enable them to complete development projects. These include technical skills in areas such as vegetable and crop production during the year. A key component of the success of development projects is to involve communities in the planning and decision-making processes. Community development is linked to empowerment, in other words, empowered people are able to contribute to the development of their community because they have knowledge of the economic, social and political goals of development. Therefore, empowerment enables people to participate in and have an influence on the decisions that affect their lives. The main finding in terms of the third research objective is that people in the Ncora community are using their own labour to improve food production to reduce poverty. The Ncora community has been shown when and how to make, grow and plant seeds, and look after the vegetables of their choice. The community of Ncora has learnt about cropping practices that are appropriate to their situation. The intention is to sell vegetables and crops to local communities and markets in order to generate income. The community has to do it for themselves or else they will wait forever.
- Full Text:
- Date Issued: 2013
- Authors: Mkwela, Gcobani
- Date: 2013
- Subjects: Agriculture -- Economic aspects -- South Africa -- Ncora , Agricultural development projects -- South Africa -- Ncora , Economic development
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:9240 , http://hdl.handle.net/10948/d1021107
- Description: Despite 19 years of democracy and public action by civil society, policy makers continue to neglect the role of agriculture in improving the quality of life in rural areas such as Ncora in the Eastern Cape. The communities in the Ncora area still experience poverty despite the fact people receive state grants. Agriculture is declining in this area without basic infrastructure. The study argues that communities in the Ncora area need assistance from government in order to increase agricultural activities. These activities are an important route through which these communities can reduce poverty. The primary objective of this study was to obtain a better understanding of the role of agriculture in reducing poverty in the Ncora rural areas. The conditions necessary to sustain agriculture in the rural areas were identified. This was mainly done to help alleviate the plight of rural areas in the Ncora area and to improve the quality of life of the rural population. The study was based on three research objectives. The first objective was to investigate the constraints to agricultural production in Ncora. The second objective was to ascertain what has been done by the Eastern Cape government in increasing agricultural activities. The third objective was to investigate the contribution of agriculture in reducing poverty in Ncora. The main finding in terms of the first research objective is that constraints to agricultural production in Ncora are structural constraints. These include inadequate infrastructure such as poor roads, lack of transport and equipment, lack of farming skills, poor quality seed, no access to markets, inadequate and unaffordable services. In terms of the second research objective, the main finding is that the government has encouraged investment in infrastructure using labour-intensive methods will eliminate service backlogs in underserviced areas such as Ncora. Secondly, it has encouraged the revival of irrigation schemes such as the Ncora irrigation scheme and is investing in human capital through the empowerment of people in order to improve the quality of life of the Ncora community. Empowerment involves skills and training, education and access to basic services, expertise regarding credit, land and the growing of vegetables. The development of human capital is an important determinant of the pace of economic development. Human, social, natural, financial and physical capital are essential elements of reducing poverty. In fact, the Ncora community has lobbied Intsika Yethu Municipality for community development Community development through education and community participation in development programmes. Efforts have to be made to increase the skills that will enable them to complete development projects. These include technical skills in areas such as vegetable and crop production during the year. A key component of the success of development projects is to involve communities in the planning and decision-making processes. Community development is linked to empowerment, in other words, empowered people are able to contribute to the development of their community because they have knowledge of the economic, social and political goals of development. Therefore, empowerment enables people to participate in and have an influence on the decisions that affect their lives. The main finding in terms of the third research objective is that people in the Ncora community are using their own labour to improve food production to reduce poverty. The Ncora community has been shown when and how to make, grow and plant seeds, and look after the vegetables of their choice. The community of Ncora has learnt about cropping practices that are appropriate to their situation. The intention is to sell vegetables and crops to local communities and markets in order to generate income. The community has to do it for themselves or else they will wait forever.
- Full Text:
- Date Issued: 2013
The role of cooperatives in local economic development and job creation
- Authors: Ramncwana, Zukiswa
- Date: 2015
- Subjects: Cooperative societies , Economic development , Job creation
- Language: English
- Type: Thesis , Masters , MA
- Identifier: http://hdl.handle.net/10948/5919 , vital:21013
- Description: This study concentrates on the role of cooperatives in Local Economic Development (LED) and the creation of sustainable jobs. In ascertaining this role, it was imperative that the study also examine the participant’s perceptions and attitudes as the drivers in attaining the sustainable livelihoods; where their desire, their beliefs and their perceived social norms are examined. In line with the examination of the participant’s perceptions and attitudes as the drivers in attaining the sustainable livelihoods, we have also identified the drivers or catalyst to really changing the behaviour and/or performance and really taking action. Motivation of this study is that the participants and LED officials will learn from the lessons that are identified. Lessons can be learned from our history in South Africa that through dedication and sustained motivation goals can be realised. Motivation and commitment are therefore important in strengthening the foundations of cooperative development towards job creation; where social capital is the driver of commitment and motivation and should be promoted as such. Through the cooperation that is inherent in cooperatives people pull together towards realising their dreams. The sustainable jobs are however not attainable at this stage of cooperative development but strong foundations are however being built to realise these goals in the near future. Unemployment is a big problem that policy makers are looking for solutions to, and hence the development of policy measures like the Cooperative Policy to address poverty through creation of cooperatives. These cooperatives collectively benefit the members and create a platform for mutual cooperation. Self-motivation and ‘Ubuntu’ need to be ingrained more in our culture and find a ‘new meaning’. There is a role for social capital and the unity that is within ‘Ubuntu’ to really be used as the undoubted asset that it is. Social capital can be seen as the driver of commitment and motivation. This can also be seen in the Mutual Incentives Theory’ (MIT) of motivations to participate developed by Birchall and Simmons, as meaningful participation can be motivated by three variables. These variables are shared goals, shared values and sense of community. These three variables are all integrated in social capital; where social capital could be seen as the common denominator. Such conclusions about the importance of social capital in driving meaningful participation in cooperatives should be widely acknowledged. The promotion of social capital in all its forms should be wide spread and it should form part of the basis for solutions to cooperative development.
- Full Text:
- Date Issued: 2015
- Authors: Ramncwana, Zukiswa
- Date: 2015
- Subjects: Cooperative societies , Economic development , Job creation
- Language: English
- Type: Thesis , Masters , MA
- Identifier: http://hdl.handle.net/10948/5919 , vital:21013
- Description: This study concentrates on the role of cooperatives in Local Economic Development (LED) and the creation of sustainable jobs. In ascertaining this role, it was imperative that the study also examine the participant’s perceptions and attitudes as the drivers in attaining the sustainable livelihoods; where their desire, their beliefs and their perceived social norms are examined. In line with the examination of the participant’s perceptions and attitudes as the drivers in attaining the sustainable livelihoods, we have also identified the drivers or catalyst to really changing the behaviour and/or performance and really taking action. Motivation of this study is that the participants and LED officials will learn from the lessons that are identified. Lessons can be learned from our history in South Africa that through dedication and sustained motivation goals can be realised. Motivation and commitment are therefore important in strengthening the foundations of cooperative development towards job creation; where social capital is the driver of commitment and motivation and should be promoted as such. Through the cooperation that is inherent in cooperatives people pull together towards realising their dreams. The sustainable jobs are however not attainable at this stage of cooperative development but strong foundations are however being built to realise these goals in the near future. Unemployment is a big problem that policy makers are looking for solutions to, and hence the development of policy measures like the Cooperative Policy to address poverty through creation of cooperatives. These cooperatives collectively benefit the members and create a platform for mutual cooperation. Self-motivation and ‘Ubuntu’ need to be ingrained more in our culture and find a ‘new meaning’. There is a role for social capital and the unity that is within ‘Ubuntu’ to really be used as the undoubted asset that it is. Social capital can be seen as the driver of commitment and motivation. This can also be seen in the Mutual Incentives Theory’ (MIT) of motivations to participate developed by Birchall and Simmons, as meaningful participation can be motivated by three variables. These variables are shared goals, shared values and sense of community. These three variables are all integrated in social capital; where social capital could be seen as the common denominator. Such conclusions about the importance of social capital in driving meaningful participation in cooperatives should be widely acknowledged. The promotion of social capital in all its forms should be wide spread and it should form part of the basis for solutions to cooperative development.
- Full Text:
- Date Issued: 2015
The role of foreign aid in poverty alleviation and economic development in Malawi
- Authors: Amanda, Amerley Armah
- Date: 2019
- Subjects: Economic development
- Language: English
- Type: Thesis , Masters , Degree
- Identifier: http://hdl.handle.net/10948/40220 , vital:35988
- Description: For over fifty years, the majority of the Western nations have provided foreign aid to underdeveloped countries, particularly on the African continent, claiming they wanted to bring about development and alleviate the so-called poverty trap. However, the effect of such financial transfer has not been significant in most of these countries, as many recipient countries still suffer from extreme poverty and underdevelopment. Malawi is a landlocked country found in south-eastern Africa. This small country, despite being a major recipient of foreign aid since the 1960s until the present day, continues to experience extreme poverty. Malawi is one of the world’s poorest countries, ranking 174 out of 187 as at 2013, with over 50.7% of its population living below the poverty line. Thus, this study sought to assess the role of foreign aid in poverty alleviation in Malawi over the years and particularly in the 2000-2015 period. Literature related to this study on foreign aid was reviewed to gain insight into the views of other writers on the topic under study. The study used secondary sources of data to examine the effect of foreign aid on poverty alleviation in Malawi. The study found out that, even though foreign aid to Malawi might have been provided to address poverty and economic challenges to some extent, these objectives have not been met because of donor conditionalities, poor coordination, corruption and mismanagement of donor funding. The study equally found that donors to Malawi over the years have laid much emphasis on good governance rather than poverty alleviation, hence no significant contribution of foreign aid assistance in poverty alleviation, particularly among the rural population which makes up the majority of the poor. This study recommends that to enhance aid effectiveness in poverty alleviation, there is a need for donors to revise their conditions based on the recipient country’s needs and not on donor motives. Secondly, the government of Malawi should consider establishing a legal and legislative framework that guides the use of donor funding and donor activities to ensure accountability and sustainability.
- Full Text:
- Date Issued: 2019
- Authors: Amanda, Amerley Armah
- Date: 2019
- Subjects: Economic development
- Language: English
- Type: Thesis , Masters , Degree
- Identifier: http://hdl.handle.net/10948/40220 , vital:35988
- Description: For over fifty years, the majority of the Western nations have provided foreign aid to underdeveloped countries, particularly on the African continent, claiming they wanted to bring about development and alleviate the so-called poverty trap. However, the effect of such financial transfer has not been significant in most of these countries, as many recipient countries still suffer from extreme poverty and underdevelopment. Malawi is a landlocked country found in south-eastern Africa. This small country, despite being a major recipient of foreign aid since the 1960s until the present day, continues to experience extreme poverty. Malawi is one of the world’s poorest countries, ranking 174 out of 187 as at 2013, with over 50.7% of its population living below the poverty line. Thus, this study sought to assess the role of foreign aid in poverty alleviation in Malawi over the years and particularly in the 2000-2015 period. Literature related to this study on foreign aid was reviewed to gain insight into the views of other writers on the topic under study. The study used secondary sources of data to examine the effect of foreign aid on poverty alleviation in Malawi. The study found out that, even though foreign aid to Malawi might have been provided to address poverty and economic challenges to some extent, these objectives have not been met because of donor conditionalities, poor coordination, corruption and mismanagement of donor funding. The study equally found that donors to Malawi over the years have laid much emphasis on good governance rather than poverty alleviation, hence no significant contribution of foreign aid assistance in poverty alleviation, particularly among the rural population which makes up the majority of the poor. This study recommends that to enhance aid effectiveness in poverty alleviation, there is a need for donors to revise their conditions based on the recipient country’s needs and not on donor motives. Secondly, the government of Malawi should consider establishing a legal and legislative framework that guides the use of donor funding and donor activities to ensure accountability and sustainability.
- Full Text:
- Date Issued: 2019
Toward universal sustainability: strategies and guidelines
- Authors: Robertson, Struan Ross
- Date: 2019
- Subjects: Sustainability , Sustainable development , Economic development , Social planning
- Language: English
- Type: text , Thesis , Masters , MEcon
- Identifier: http://hdl.handle.net/10962/71591 , vital:29922
- Description: This research considers the notion of universal sustainability, which involves the three well-known pillars of sustainable development, namely, economic development, social development, and environmental sustainability. Critical to achieving this unity of purpose in the aligning of economic and social aspirations with the limits of the natural environment is the enhancing of human capability and the development of political institutions capable of representing the interests of all people by leveraging resources responsibly. Universal sustainability differs from the concept of sustainable development in that the emphasis is cast not on merely achieving economic development despite the challenges presented by social and environmental concerns, but on seeking to understand what a better society might look like that integrates outcomes in-line with these three factors. Universal sustainability is about re-thinking the purpose of material progress to realign this with the need for social cohesion and to reposition human values and expectations safely within ecological boundaries. In other words, strategies and guidelines that promote the realisation of universal sustainability would recommend a society that values economic and technological progress with equal measure to social development and environmental sustainability, as well as all the other factors that promote human wellbeing. Consequently, this research also considers the inter-linkages that are found between economic development (i.e. technological advancement) and social (i.e. normative progress) and societal (i.e. long-term institutional differentiation) development with respect to labour markets, the formation of skills, the scope of welfare regimes and hence, the trajectory of the social reproduction of society. The prospects of environmental sustainability, like that of societal development, are found to be influenced by the values that a society holds and the ability of economic and social factors to adapt in response to the environmental challenges that face societies in socially workable ways. This research concerns the great quest for meaning and purpose that humans have undertaken throughout history, and asks how human wellbeing – in its best, most expansive sense, can be improved and how societies can advance and prosper going forward while keeping the avenue of individual self-actualisation open as a possibility in the everyday lives of citizens? In achieving this end, this research looks at what economic development strategies suggest as tenable against these aspirations. Furthermore, this research looks at the experience of advanced democratic societies to better conceive of how material progress, social cohesion via education and welfare, and environmental sustainability can be attained. The selection of these countries ensures understanding for the kind of political arrangements that safeguard human wellbeing and give voice to freedom, material opportunities, and civic responsibilities. Critical to both these assessments is defining the mechanics that underlie the processes that achieve material and moral progress in human societies. The main goal of this research is to recommend strategies and guidelines for developing countries like South Africa that wish to develop and thrive. Therefore, this research presents an assessment framework for understanding both universal sustainability and how to achieve it. This research concludes that mindfulness about the natural environment and the services it supplies, as well as mindfulness about what drives economic development and what supports the conditions for human flourishing, are necessary for universal sustainability strategies and guidelines to work. Indeed, the ideologies that societies subscribe to and the values they hold are important 84 to creating the right conditions for economic tools to work to advance economic development, material improvement, socio-environmental justice, and ultimately for achieving universal sustainability. But central to both economic and environmental futures is an understanding that at the heart of the matter is a concern for apprehending what drives human behaviour and aspiration, and what creates social cohesion.
- Full Text:
- Date Issued: 2019
- Authors: Robertson, Struan Ross
- Date: 2019
- Subjects: Sustainability , Sustainable development , Economic development , Social planning
- Language: English
- Type: text , Thesis , Masters , MEcon
- Identifier: http://hdl.handle.net/10962/71591 , vital:29922
- Description: This research considers the notion of universal sustainability, which involves the three well-known pillars of sustainable development, namely, economic development, social development, and environmental sustainability. Critical to achieving this unity of purpose in the aligning of economic and social aspirations with the limits of the natural environment is the enhancing of human capability and the development of political institutions capable of representing the interests of all people by leveraging resources responsibly. Universal sustainability differs from the concept of sustainable development in that the emphasis is cast not on merely achieving economic development despite the challenges presented by social and environmental concerns, but on seeking to understand what a better society might look like that integrates outcomes in-line with these three factors. Universal sustainability is about re-thinking the purpose of material progress to realign this with the need for social cohesion and to reposition human values and expectations safely within ecological boundaries. In other words, strategies and guidelines that promote the realisation of universal sustainability would recommend a society that values economic and technological progress with equal measure to social development and environmental sustainability, as well as all the other factors that promote human wellbeing. Consequently, this research also considers the inter-linkages that are found between economic development (i.e. technological advancement) and social (i.e. normative progress) and societal (i.e. long-term institutional differentiation) development with respect to labour markets, the formation of skills, the scope of welfare regimes and hence, the trajectory of the social reproduction of society. The prospects of environmental sustainability, like that of societal development, are found to be influenced by the values that a society holds and the ability of economic and social factors to adapt in response to the environmental challenges that face societies in socially workable ways. This research concerns the great quest for meaning and purpose that humans have undertaken throughout history, and asks how human wellbeing – in its best, most expansive sense, can be improved and how societies can advance and prosper going forward while keeping the avenue of individual self-actualisation open as a possibility in the everyday lives of citizens? In achieving this end, this research looks at what economic development strategies suggest as tenable against these aspirations. Furthermore, this research looks at the experience of advanced democratic societies to better conceive of how material progress, social cohesion via education and welfare, and environmental sustainability can be attained. The selection of these countries ensures understanding for the kind of political arrangements that safeguard human wellbeing and give voice to freedom, material opportunities, and civic responsibilities. Critical to both these assessments is defining the mechanics that underlie the processes that achieve material and moral progress in human societies. The main goal of this research is to recommend strategies and guidelines for developing countries like South Africa that wish to develop and thrive. Therefore, this research presents an assessment framework for understanding both universal sustainability and how to achieve it. This research concludes that mindfulness about the natural environment and the services it supplies, as well as mindfulness about what drives economic development and what supports the conditions for human flourishing, are necessary for universal sustainability strategies and guidelines to work. Indeed, the ideologies that societies subscribe to and the values they hold are important 84 to creating the right conditions for economic tools to work to advance economic development, material improvement, socio-environmental justice, and ultimately for achieving universal sustainability. But central to both economic and environmental futures is an understanding that at the heart of the matter is a concern for apprehending what drives human behaviour and aspiration, and what creates social cohesion.
- Full Text:
- Date Issued: 2019
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