Tourism,business linkages and small enterprise development in South Africa

Although considerable attention is given to the prospects for developing small, medium and micro-enterprises (SMMEs) in South Africa's tourism economy, very little relevant research has been undertaken in this regard. In this article, the findings are presented from over 60 detailed interviews conducted with key enterprises and entrepreneurs involved in tourism, outsourcing and small enterprise development in South Africa. The aim is to examine opportunities for outsourcing and business linkage development in South Africa's tourism economy, and to investigate the difficulties that confront the tourism SMME economy through examining the status of business linkages between large tourism enterprises and SMMEs in South Africa. The South African research is located within the context of existing works on tourism and small enterprise development in developing countries.     

SOUTH AFRICA AND THE NEW PARTNERSHIP FOR AFRICA'S DEVELOPMENT: ECONOMIC SPIN-OFFS AND LINKAGES

The New Partnership for Africa's Development (NEPAD) is a concerted effort by Africa's political leaders to develop a comprehensive and integrated strategic policy framework to raise current levels of socio‐economic development and reduce high levels of poverty across the African continent. The NEPAD framework recognises the need for African countries to pool their resources together in order to enhance regional development and economic integration. To this end, NEPAD emphasises capacity building and also seeks to solicit and disburse funds towards infrastructural development programmes and poverty alleviation projects, among others. South Africa's involvement with the rest of Africa has increased significantly since 1994. Trade exports, foreign direct investment (both market and resource‐seeking in nature) and public‐private partnerships have mushroomed in many parts of the continent. Many South African firms are providing the financial impetus for the infrastructural development and rehabilitation of African economies. This paper discusses salient economic linkages between South Africa and the rest of Africa within the framework of NEPAD. South Africa is the economic hub of sub‐Saharan Africa (and indeed of the African continent), with significant agricultural, manufacturing and services capacity. South African firms have invested in the development of a number of sectors in the rest of Africa, taking advantage of the new investment incentives offered by the NEPAD framework. The target sectors range from mining, the hospitality industry, engineering and construction, finance to telecommunications. These investments and economic involvements are crucial to the development of African countries and the relevant sectors that are important for the realisation of some of the objectives of NEPAD.     

Producer cooperative resettlement projects in Zimbabwe: Lessons from a failed agricultural development strategy

Zimbabwe epitomizes the contradictions driving the failure of state-directed agricultural development policies. In its second decade of independence, the government takes the credit for the country's agricultural and rural development success. Zimbabwe's “Green Revolution” record in Africa is enviable. Yet, this peasantry-led success story is problematic. It hides serious policy flaws in development strategy, namely, lack of performance and waste characterizing the Model B producer cooperative resettlement projects. Individually and collectively, the cooperatives, the government's preferred mode of production, are a complete failure. Lessons for development programs elsewhere, and in emergent South Africa, in particular are clear. The political economy of government assistance is not sufficient to produce agricultural surpluses and sustainable development. The social economy of cooperation in production organization by Africa's traditional farmers also does not, necessarily, translate into modern cooperatives, as Zimbabwe's policy makers assumed. Producer cooperatives are unproductive because of the prevailing organizational culture which enables leading members to seek individual self-interest and private gain, making it hard for the rank and file to cooperate and work for the common good.     

环南海国家邮轮产业利益相关者均衡机制——基于协同博弈模型的探讨

环南海国家一直在积极推动邮轮产业合作,它们互为域内主要邮轮旅游目的地和客源国。与此同时,作为新兴产业,邮轮产业协同发展及区域合作还存在一定的短板。基于协同博弈的观点对环南海国家邮轮产业协同发展和环南海国家邮轮产业利益相关者均衡机制的构建进行探讨,以期为推动环南海国家邮轮产业、海洋旅游、区域经济的发展建言献策。     

The extent of anti-export bias in the South African economy during the 1990s

An analysis of trade incentives in the South African economy during the 1990s reveals two major findings. Firstly, the extent of the anti-export bias in South Africa's trade policy during the 1990s is less than is claimed in the empirical literature. The sectors subjected to an anti-export bias accounted for around 7 per cent of total output in 1990 and 21 per cent in 1999. Secondly, sectoral output growth did not strongly correlate with the prevailing trade incentives of the 1990s. Export production continued despite the prevalence of import substituting incentives in many sectors. Although further research is needed, this suggests that attention should also be given to other factors related to domestic competitiveness (e.g. skills development, productivity enhancement, competition policy, etc.) and market access if South African export production is to be significantly increased.     

The growth challenges of small and medium enterprises (SMEs) in South Africa's food processing complex

This article focuses on the growth challenges and opportunities of small and medium enterprises (SMEs) in South Africa's food processing complex and argues that the growth challenges of these enterprises must be seen in the context of restructuring in South Africa's agrifood system. Based on a 30-company sample of SME food processors, the article argues that supermarket sourcing practices represent the most significant obstacle to the growth of these companies. Paradoxically, the complexity of South Africa's food retail system also offers opportunities for growth. The article ends by considering policy options for assisting SMEs, given this growth opportunity.     

The rationale for an employment guarantee in South Africa

This article considers what would happen if unemployed people in South Africa had a right to a minimum level of regular work on decent terms. It looks at the example of India, where a law was passed in 2005 guaranteeing rural households up to 100 days of work a year at minimum wage rates. More than 55 million households now participate in this programme – a rare example of a policy innovation bringing about significant change in a society. India's employment guarantee has important implications for social and economic policy and gives new meaning to the concept of ‘a right to work’. The article explores how structural inequality limits South Africa's development options, and considers early lessons from South Africa's Community Work Programme to make the case for an employment guarantee in South Africa.     

Hawkers in South Africa's small urban centres: Planning and policy

The development of strategies for the ‘appropriate management’ of urban growth applies with equal force to small and to large urban centres. In this paper one key aspect in the evolution of appropriate management strategies in South Africa's smaller urban centres is addressed, namely the policy attitudes and practices towards hawkers. Against a background review of the international experience of changing attitudes towards street traders, empirical material is presented on local policies and planning regarding hawkers in a cross‐section of South Africa's smaller urban centres. Although the overall picture is dominated by the reluctance of urban authorities to innovate accommoda‐tionist planning, some interesting exceptions are noted.     

Urban agriculture in South Africa: Policy issues from the international experience

Recently, an increase has been observed in the practices of urban food gardening and the cultivation of vacant land on the peripheries of South Africa's metropolitan areas. In this paper it is argued that urban agriculture represents an issue of considerable importance for South African policy makers. A review is undertaken of research on informal agriculture in Asian and African cities. On the basis of this International review certain suggestions are offered for policy debates and research in South Africa.     

Mobile entrepreneurship: Informal sector cross-border trade and street trade in South Africa

This article presents the results of a study on the participation of non-South Africans in the handicraft/curio sector of street trade in South Africa in informal sector cross-border trade. The findings provide an introduction to the largely unexplored phenomenon of informal sector cross-border trade between South Africa and neighbouring states and challenge some of the common myths about non-South African street traders which pervade public discourses around migration. The Southern African Development Community (SADC) is presently involved in prolonged and contentious negotiations to establish a free trade area for the region based on the SADC protocol on trade and development. At the same time, against a backdrop of anti-immigrant rhetoric, the South African government is developing a new migration policy. The article argues that informal cross-border entrepreneurs should not be disadvantaged by the renegotiation of regional trade agreements and the reformulation of South Africa's new migration policy.     

The implications of South Africa's skills migration policy for country competitiveness

South Africa suffers from a shortage of skills, while at the same time having an excess of unskilled labour. The brain drain and the impact of HIV/Aids are threats to the current skills level in the labour force. Skilled workers generally create jobs for unskilled workers, and the level of skills in the labour force is an attraction for foreign investment. The new international migration policy imposes financial penalties and other restrictions on employers of foreigners with skills. The policy is detrimental to South Africa's competitiveness in the global economy and will deter investors and those needing to utilise skills not available in the South African labour market. A general immigration policy would be more appropriate to attract skilled foreigners to South Africa, where their skills can be absorbed into the labour force by supply and demand forces.     

Would a single regional visa encourage tourist arrivals in southern Africa?

Although many studies have been done of factors impeding Africa's development as a tourism destination, few have focused on southern Africa, and to date none have questioned whether the current visa requirements affect the region's tourism industry. This paper investigates the potential impact of the so-called Univisa, a single visa for the Southern African Development Community (SADC) region proposed by SADC and the Regional Tourism Organisation of Southern Africa. It examines the possible effect of visa requirements on a destination's accessibility and visitor numbers. Two surveys revealed that inbound and outbound tour operators were relatively positive about the benefits the proposed Univisa would bring, but were concerned about other factors hindering tourism development in the region. The study revealed the complexities of a regional visa and found that even though a regional visa might alleviate some problems, it cannot be seen as an answer to the slow development of tourism in this region.     

COMMUNITY‐BASED PROVISION OF DEVELOPMENT SERVICES IN RURAL SOUTH AFRICA1

It is often contended that rural development works most effectively when beneficiary communities are active project participants, and not the passive recipients of assistance. This paper analyses participatory development through the lens of public goods theory. South Africa's Community Water Supply & Sanitation Programme is discussed as a case study. Conclusions from our game‐theoretic analysis are used to make suggestions for South African development policy.     

WHAT PRICE‐LEVEL DATA CAN TELL US ABOUT PRICING CONDUCT IN SOUTH AFRICA

This article reports the findings of a study of two unique microdata sets, which are the unit level basis of South Africa's measured Consumer Price Index and Producer Price Index, over the period December 2001‐December 2007. In particular, based on techniques that have been used in comparable international studies, findings are reported on the frequency and magnitude of price changes, the duration of prices, and heterogeneity in pricing. The results for South Africa are compared with the stylised facts for pricing conduct, which have been presented in recent international studies. The article offers an illustration of how microdata‐based findings on pricing conduct may impact on the modelling of monetary policy by introducing micro‐founded results into an open economy dynamic stochastic general equilibrium model for the South African economy. The article concludes by identifying areas for further research, where it has not as yet been determined how South African pricing conduct compares with certain stylised pricing facts identified in the international literature.     

“南太行”区域旅游资源整合研究

旅游资源的整合是在市场新形势下旅游资源开发的一种新模式,它是塑造区域旅游新形象、提高区域旅游知名度、提升区域旅游品牌形象的重要途径。本文通过对"南太行"旅游区旅游资源开发现状的评价分析,提出旅游资源整合模式,从而促进南太行旅游区的全面发展。     

Sudden Stops and Current Account Reversals: Potential Macroeconomic Consequences for South Africa

South Africa is one of the emerging market countries that have received a relatively large amount of foreign capital since the mid‐2000s. In South Africa's case, these inflows were partly used to build the country's foreign exchange reserves, but more particularly to finance continued large current account deficits. During the course of the past two years, however, adverse domestic political developments, combined with the potential negative impacts of the unwinding of quantitative easing policies and the normalising of monetary policy in the United States on emerging markets in general, has raised the spectre of a sharp slowdown in foreign capital flows to South Africa and an associated reversal of the current deficit. This paper explores the potential impact of such a development on macroeconomic conditions in South Africa. The analysis consists of macroeconometric model‐based alternative scenarios backed up by both the international evidence on the impact of such events and South Africa's own history.     

Tourism impact,distribution and development: The spatial structure of tourism in the Western Cape province of South Africa

The structural dimensions of a country's tourism sector, and in particular the spatial structure of tourism production and consumption, relate closely to the nature and extent of the impact that tourism can have. This article examines the spatial characteristics of tourism in the Western Cape province, one of South Africa's foremost international tourist regions, and where its government seeks to use tourism as an instrument of development and socio-economic transformation. To understand how this could be effected it is necessary to understand the spatial distributional effects of tourism, and the underlying reasons for it. To this end the article examines the spatial structure of the provincial accommodation sector as evidenced in patterns of accommodation supply and tourist usage (demand); and trends in the nature, direction and distribution of public and private-sector tourism investments. The central argument is that tourism is geographically focused, with tourist activities concentrated in a few locales and sub-regions. This follows the general demographic and economic contours of the province. Yet trends in capital investments tend to reinforce the spatial concentration of tourism. Attempts by the government to spread tourism's benefits have not been too successful due to institutional and capacity deficiencies. Greater emphasis should be placed on developing domestic tourism.     

THE RELATIONSHIP BETWEEN TOURISM AND TRADE IN SOUTH AFRICA

This article explores the relationship between tourist arrivals and trade in South Africa. Two analyses were conducted – a panel data analysis, which included tourism and trade data of 40 countries with South Africa, and a time‐series analysis that involved South Africa's main tourism and trade partners. Cointegration tests, Granger causality and Block exogeneity tests were used to investigate the nature of the relationship. The results of the panel data analysis show that for South Africa as a whole, there is indeed a long‐term relationship between tourist arrivals and trade, and that bidirectional causality exists. The results for the country case studies are mixed, although the evidence is stronger for the hypothesis that tourism causes trade.     

SOUTH AFRICA'S INTERGOVERNMENTAL FISCAL RELATIONS: AN EVOLVING SYSTEM

Across Africa, Latin America, Asia and the transition economies of Eastern Europe, the need to enhance the capability and capacity of sub‐national governments (SNGs) in providing public goods and services has become a main theme of development programmes. Central to this theme is the need to design an intergovernmental fiscal relations (IGFR) system that enhances the effectiveness of sub‐national governments in mobilizing revenues and implementing expenditure programmes. For South Africa, the post‐1994 dispensation has involved significant reforms to the structure and administrative capacity of the three spheres of government. Critical to these reforms is the need to formulate an IGFR framework that takes cognisance of South Africa's past, and serves as an effective policy tool in ensuring that public sector service delivery is well structured and managed. This paper provides an analysis of South Africa's evolving IGFR system. It outlines the historical evolution of the current IGFR system, identifies current challenges, and discusses implications that these challenges have for the functioning of the IGFR system. The general conclusion emerging from this study is that in the South African context, the key elements necessary for an effective IGFR system are in place. Ongoing reforms have improved the capacity of provincial and municipal authorities in carrying out their revenue and expenditure responsibilities. However, the evolving nature of South Africa's IGFR system requires that significant attention be devoted towards enhancing coordination between delivery departments and improving the capacity of many SNGs. These should not only aid the effective functioning of the IGFR system but also ensure that the gains of decentralisation are sustainable.     

Measuring our competitiveness - a critical examination of the IMD and WEF competitiveness indicators for South Africa

This article examines the competitiveness indicators that are produced by the highly influential World Economic Forum (WEF) and the International Institute for Management Development (IMD), specifically in respect of South Africa. Neither provides a clear and persuasive guide as to South Africa's overall competitiveness ranking, nor how this has altered over time. The problem resides principally in the assessment of technological capacities and the contribution that technology makes to overall competitiveness. The IMD and the WEF approaches to technology diverge significantly, but both are inadequate. As a consequence, there is a substantial discrepancy between the two as regards South Africa's current overall competitive ness ranking. Neither individually, nor collectively, are these competitiveness indicators - as they are currently constituted - useful as a guide to policy.