Water,energy and sustainable economic development in South Africa

The interaction between macroeconomics and sustainable development is important to all countries. This relationship is of particular concern to developing countries where the economic and natural resource bases are often more closely intertwined than in industrialised nations. A research programme for investigating these issues in South Africa was initiated by the Macroeconomics Programme Office of the World Wide Fund for Nature (Washington, DC, USA), funded with a grant from GTZ (Deutsche Gesellschaft für Technische Zusammenarbeit). It was carried out by a number of local research teams under the guidance of a broad steering committee and under the management of the Development Bank of Southern Africa. For the purposes of a manageable research project, two areas were selected where the South African economy and environment strongly interact - water and energy - together with a number of important economic sectors that use water and energy as key inputs in their production processes. The research examined macroeconomic and environmental interactions in these complexes of sectors, with particular emphasis on the effects of changing pricing and regulatory regimes for water and energy. This article presents and discusses first the analytical framework, followed by the results in each sector, and closes with some general policy conclusions with regard to the macroeconomy and the environment.     

Spatial economic development in South Africa: an overview and evaluation of the platinum spatial development initiative

The Platinum Spatial Development Initiative (Platinum SDI), located in the North West province of South Africa, is examined in this article. The article commences with a historical synopsis of industrial policy and regional industrial development policy in South Africa. Thereafter the trade and industrial policies of the North West Provincial Government are discussed in the contexts of its economic development strategies ‘North West 2001’ from 1997, and the ‘North West Economic Development and Industrialisation Strategy’ from 2002. Various arguments for and against the viability of the Platinum SDI are put forward.     

Defence expenditure and development in South Africa

This article explores the channels through which defence can either promote or compromise economic development. It reviews the roles of the military as an agent for modernisation in developing societies and as an absorber of scarce resources. The article then examines how the military affected development in South Africa in the past and how it could do so in the future, given the decline in defence expenditure.     

Supporting Local Economic Development in Post-Apartheid South Africa

South Africa's apartheid era has left a bitter legacy of retarded economic development. Local Economic Development has been identified by the South African government as a key strategy through which issues of development and, more importantly, poverty alleviation can be addressed by local governments. This paper reviews current Local Economic Development policy in South Africa, before proceeding to an examination and analysis of the impact of the primary government support mechanism designed to promote such development initiatives, namely the Local Economic Development Fund. Whilst such support is of vital importance, far greater levels of intervention will be needed to fully address the massive scale of current local development needs.     

Income distribution,economic structure and employment in South Africa

This paper discusses the impact of a redistribution of current income from the White to the Black population on the distribution of sectoral output, and total employment by means of a semi‐closed input‐output model.

The results show that a redistribution of current income towards Black households — which no doubt will have positive social and political repercussions — has a non‐negative effect on GDP and a definite positive effect on the performance of sectors with a high private consumption expenditure component, as well as on total employment.