The impact of disinvestment and the debt crisis on the South African economy

The paper considers the economic implications of disinvestment and the debt crisis for the South African economy with the aid of some historical analysis of foreign capital inflows and growth. It considers the changes that have occurred in the structure of foreign liabilities over the last twenty years and it examines the quantitative and qualitative roles of private investment and non‐direct investment over this period. The debt issue is examined within the framework of disinvestment, and the conclusion reached is that the economic problems consequent to a withdrawal of foreign loans pose a far greater threat to the South African economy than the loss of foreign direct investment. We assume that disinvestment is not accompanied by any official trade embargo, and the controversy surrounding the relationship between economic growth and social and political change in South Africa is ignored.     

Sustainability and comovement of government debt in EMU Countries: A panel data analysis

We investigate the sustainability of fiscal policy in a set of 19 European Monetary Union (EMU) countries over the period 1970–2016. Panel unit root tests in the presence of cross-section dependence show that the government debt series is stationary, indicating that the solvency condition would be satisfied for these countries. This confirms the effectiveness of the austerity measures implemented by these member states. Moreover, an unobserved common factor drives the comovement of government debt in the Eurozone.     

The macroeconomic impacts of government debt: An empirical analysis of the 1980s and 1990s

This study examines the macroeconomic impacts of government debt. Unlike previous studies, the current study restricts the estimation period to the 1980s and 1990s. The analysis is conducted using variance decompositions and impulse response functions derived from a vector autoregressive model. The results presented here support an extreme form of the Ricardian equivalence hypothesis. In this view, wealth falls as government debt rises. Because wealth falls as government debt rises, an increase in government debt leads to decreases in interest rates, output, and the price level.This work was supported by a grant from the Faculty Research and Creative Activities Support Fund of Western Michigan University. The author wishes to thank Nancy S. Barrett, James S. Fackler, W. Douglas McMillin, Susan Pozo, and Paul D. Thistle for comments and suggestions.     

The mini farmer approach: A case study of the South African tea industry

This article analyses the concept of mini farming on tea estates in South Africa from the point of view of the farmer and the estate. Although mint farmers who participate in these schemes are subjected to strict controls, they enjoy more freedom than labourers. The article shows the relative merit of the mini farming concept in the tea industry, and thereby contributes to the current debate on agricultural restructuring in South Africa.     

An integration of the livelihoods and asset-based community development approaches: A South African case study

This study provides an integrated framework and practice model of the sustainable livelihoods (SL) and the asset-based community development (ABCD) approaches. A household survey of a rural village in South Africa is used as a basis of analysis to demonstrate the application of the integrated approach. The results elucidate the vulnerability of the people and a range of inter-locking and multi-dimensional factors contributing to poverty in the community. The results also show people's assets, capabilities and activities which enable them to cope and survive despite constraints and shortcomings. It was found that the integrated SL/ABCD framework is a useful framework to understand the strengths of a vulnerable community in order to plan and implement sustainable community development strategies.     

Managing the costs of HIV/AIDS: A case study of a South African contract cleaning company

This paper, based on a case study of a South African contract cleaning company in Durban, KwaZulu-Natal, adds to the recent literature on the management of the financial impact of the HIV/AIDS pandemic. After situating the research alongside recent contributions that have examined large enterprises, and small, medium and micro enterprises, the paper provides a profile of the company and its predominantly female workforce. The company's management of costs incurred due to HIV/AIDS is critically assessed from the perspective of financial sustainability, using an AIDS Projection Model developed by Matthews (2007 Matthews, A. 2007. Computational modelling of the impact of AIDS on business. AIDS, 21(Supplement 3): S91–7. [Crossref] , [Google Scholar]). It was found that while continued employment of this workforce is economically sustainable, both from the perspective of the business and the associated provident fund, the costs to employees are far from equitable. The paper therefore recommends the implementation of a holistic HIV/AIDS management programme, including treatment and prevention activities.     

Evaluating participation in African monetary unions: A statistical analysis of the CFA Zones

Thirteen African nations are engaged in two monetary unions with France, often referred to as the CFA Zone. Despite the acknowledged benefits of Zone membership — a convertible currency, pooled resources and greater monetary and fiscal “discipline” — several observers have questioned whether particular aspects of the Zone such as the lack of autonomy of the two Central Banks and the surrender of the exchange rate as a policy instrument have impeded its members' growth. This paper addresses that question by testing whether CFA Zone countries had different GNP growth rates from selected “comparator” countries during 1960–1982. Results show that CFA countries grew significantly faster than comparator Sub-Saharan African countries but usually slower, and often significantly so, than the whole sample of developing countries. When the comparison is made by subperiod (before and after 1973), CFA countries' performance vis-à-vis that of their comparators improved during the 1973–1982 period, casting further doubt on the claim that the monetary union is not functioning adequately.     

Financial impact of wheat quality standards on South African wheat producers: A dynamic linear programming (DLP) approach

The South African wheat industry has been under pressure in recent years from global economic instability and a fast-changing domestic policy environment. This has manifested itself in declining wheat production and profitability at the farm level. Wheat quality plays a key role in wheat buying decisions, with quality improvements correlating negatively with yield and, ultimately, productivity. Yet any new wheat cultivar released for commercial production must still meet the standards of the country’s wheat classification system, which has led to wheat sometimes being imported in the face of a domestic shortfall. This situation has inevitably led to tension within the industry and affected both performance and pricing. Using various data sources and a dynamic linear programming (DLP) approach, this paper takes an in-depth look at the link between wheat quality and yield, with a view to determining the impact of wheat quality standards (ceteris paribus) on the profitability of South African wheat producers. Results indicated that were these classification discrepancies removed, the country-wide effect on net farm income is estimated to range between ZAR606 million and ZAR920 million per annum.     

A Comparative analysis of the determinants of nontraditional exports for Brazil,Israel, and South Korea

Zusammenfassung Eine komparative Analyse der Bestimmungsgründe der nichttraditionellen Exporte Brasiliens, Israels und Süd-Koreas. — Der Aufsatz untersucht und vergleicht die wichtigsten Bestimmungsgründe der nichttraditionellen Exporte Brasiliens, Israels und Süd-Koreas in einem konsistenten analytischen Rahmen und mit Daten, die m?glichst einer einheitlichen Quelle entnommen sind. Das Schwergewicht wird darauf gelegt, ein Muster für die Reaktionen der nichttraditionellen Exporte auf ?nderungen in der Wirtschaftspolitik dieser L?nder zu ermitteln. Die Ergebnisse dieser Untersuchung best?tigen frühere Studien, nach denen nichttraditionelle Exporte positiv auf Ver?nderungen der relativen Preise reagieren und das Wachstum in Brasilien, Israel und Süd-Korea vom Export getragen wird. Die Ergebnisse zeigen auch, daΒ der Effekt des Kapazit?tsdrucks auf das Exportangebot eher durch das Niveau der Kapazit?tsauslastung als durch dessen Ver?nderungsrate bestimmt wird. AuΒerdem ergibt sich, daΒ ein Preiseffekt mit verteilter Verz?gerung wohl für Brasilien und Süd-Korea, aber nicht für Israel wichtig und bedeutsam ist. SchlieΒlich dürften sich die von Land zu Land verschiedenen Reaktionen der nichttraditionellen Exporte durch die Unterschiede des Preisverhaltens und der allgemeinen politischen Bedingungen in diesen Entwicklungsl?ndern erkl?ren lassen.

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Résumé Une analyse comparative des déterminants des exportations nontraditionelles pour le Brésil, l’Isra?l et la Corée du Sud. — Cet article analyse et compare les déterminants principaux des exportations non-traditionelles pour le Brésil, l’Isra?l et la Corée du Sud dans un cadre analytique consistant et au moyen des données d’une source commune, si possible. Le but majeur est d’examiner les structures de réaction des exportations non-traditionelles aux changements de politique dans ces pays développants. Les résultats supportent les résultats des études précédentes que les exportations non-traditionelles répondent favorablement aux changements des prix relatifs et que la croissance en Brésil, Isra?l et Corée du Sud était biaisée envers des exportations. Les résultats démontrent aussi que l’effet de pression de capacité sur l’offre exportatrice est reflété par le niveau des taux d’utilisation de capacité et moins par son taux de changement. De plus, un effet de retardement distribué de prix est trouvé d’être important et substantiel pour le Brésil aussi bien que pour la Corée du Sud, mais pas pour l’Isra?l. Finalement, les différences inter-pays regardant la réponse des exportations non-traditionelles semblent être expliquées en termes des différences du mouvement des prix relatifs et de la politique générale dans ces pays développants.

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Resumen Un análisis comparativo de las déterminantes de las exportaciones no tradicionales de Brasil, Israel y Corea del Sur. — En este articulo se analizan y comparan las déterminantes más importantes de las exportaciones no tradicionales de Brasil, Israel y Corea del Sur dentro de un marco analítico consistente y con datos tornados de una fuente común donde fué posible. El objectivo principal es examinar el patron de reacci?n de las exportaciones no tradicionales frente a cambios de polltica en estos paises. Los resultados de este estudio reafirman los decubrimientos anteriores, que las exportaciones no tradicionales responden favorablemente a cambios en los precios relativos y que el crecimiento de Brasil, Israel y Corea del Sur estaba sesgado hacia las exportaciones. Los resultados también muestran, que el efecto de presi?n de capacidad sobre la oferta de exportaci?n es captado por medio del nivel de las tasas de utilizaci?n de la capacidad, más que por su tasa de cambio. Adicionalmente, un efecto precio de retardos distribuidos résulta ser importante y sustancial para Brasil y Corea del Sur, pero no para Israel. Finalmente, las diferencias entre palses de la respuesta de las exportaciones no tradicionales resultan ser explicadas en términos de las différencias en el comportamiento de los precios relativos y el entorno de polfticas générales en estos países en desarrollo.

     

A project management approach to the implementation of development programmes within the local government sphere: An empirical analysis

Local government constitutes that part of the public sector that is closest to the inhabitants and is therefore indispensable in its role of promoting their general welfare through, inter alia, undertaking various development initiatives. Furthermore, legislation imposes upon local authorities the obligation to promote the social and economic development of local communities and to participate in implementing national and provincial development programmes. The efficiency and effectiveness with which local government fulfils its developmental role will largely depend on the ability of local authorities to manage development projects. The purpose of this article is to investigate the application of a project management approach as a tool for implementing development programmes in the local government sphere. This is done by means of a comprehensive study of the relevant literature and empirical research based on a research questionnaire that was distributed among selected municipal officials in leadership posts throughout South Africa. The findings of the empirical study are utilised to make specific recommendations with respect to the application of a project management approach to service delivery and local government development initiatives.     

The challenge of growth,employment and poverty in the South African economy since democracy: an exploratory review of selected issues

The welfare challenges in post‐apartheid South Africa are best represented by the triumvirate of poverty, income inequality and unemployment. In turn, the one generally accepted mechanism for overcoming these challenges is for an economy to realise sustained levels of high economic growth. Herein lie the essential coordinates of this article. We attempt first to describe the post‐apartheid experience with economic growth and its determinants. Secondly, we describe the nature of the welfare challenges that the society faces in terms of poverty, income inequality and unemployment. Finally, and perhaps most critically, we explore the various constraints on economic growth that may be hindering the realisation of higher standards of living amongst the population.     

Market-based incentives in South Africa and Zambia: A comparative analysis of the clean development mechanism

The clean development mechanism (CDM) is intended to serve as a market-based incentive that is both efficient and cost-effective for eligible developing countries. The analysis contained in this article explores why, in theory, such an attractive incentive opportunity has been so under-utilised in sub-Saharan Africa. The paper compares the experience of the CDM in South Africa and Zambia. These two Southern African countries were selected because of their varying levels of statehood, South Africa being an emerging, middle-income economy while Zambia is classified as a least developed country. General challenges affecting the CDM were identified in the literature to be awareness, capacity, eligibility and access to finance. The paper then compares how these overarching issues specifically impact the CDM experience in South Africa and Zambia. The paper finds that common complexities relating to the CDM have varying implications for eligible host countries at different levels of statehood.