Internet-enabled supply chain integration: Prospects and challenges for the South African automotive industry

The impetus for supply chain integration (SCI) in the global automotive industry is being driven by the Internet. The article critically explores the potential of the Internet to optimise and streamline the complex supply chains found in the South African automotive industry. The Internet's potential to create seamless, collaborative supply networks could provide the local automotive industry with a distinctive competitive advantage in its pursuit of an 'outward orientation' and 'global connectedness' after a lengthy period of trade isolation and government protection. The findings, however, reveal that domestic automotive firms are generally not using the Internet for substantive interbusiness trade and advanced SCI. By not making the transition to Internet-enabled SCI, South African automotive firms may be placing themselves at risk of becoming less competitive in the globally interconnected market, which will impact on both their current market positions and long-term viability.     

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.     

Challenges for the floriculture industry in a developing country: a South African perspective

The increasing numbers of global floriculture producers, and changes in the basis of competition in this international industry, make it important to evaluate the South African floriculture industry's competitive position. The industry employs more than 17 500 people and provides opportunities for rural employment. This article assesses the challenges facing the South African floriculture industry in the competitive global market, using a framework based on global value chain (GVC) and global commodity chain (GCC) analyses. An empirical study showed that the industry is insufficiently competitive and does not participate to its full potential in the global market. It is recommended that floriculture producers shift their focus from the domestic to the international market, as the domestic market is becoming saturated and its turnover is small. However, as enhancing the industry's competitiveness is a complex endeavour, the industry first needs to address the weaknesses identified.     

Contributing to the African Renaissance vision: The role of South African higher education institutions

President Mbeki is emphasising the vision of an African Renaissance in many of his public addresses. Many multifaceted inputs are required to realise this vision, and human resources development is one of the cornerstones of this ideal. South African higher education institutions could play a major role in this quest by sharing their expertise to upgrade the scientific, economic and educational competencies of all people in Africa. Data analysis shows considerable potential for attracting students from Africa, especially from the Southern African Development Community, to study at South African institutions. Current initiatives for facilitating intellectual mobility across the country's borders lack vision, however. Academic exchange programmes in other countries could serve as models to kick-start the contributions of higher education institutions in South Africa in realising Mr Mbeki's vision for an African Renaissance.     

Thinking regionally: Aviation and development implications in the Karoo region,South Africa

This study focuses on regional economic development in South Africa, across provincial political jurisdictions. The article argues that remote hinterlands can be more usefully understood as forming an integrated whole, rather than functioning as the poor rural cousins of their provincial metropoles. This article considers three propositions: that key transport projects (such as airports) may unlock regional development; that this may stimulate regional spatial integration; and that this may spur the South African government to address its weak regional planning system. All three propositions are speculative, drawn from the international literature, but they contribute to an argument for greater spatial coherence in South African planning in rural regions. The argument is illustrated with reference to the Karoo region of South Africa, and the potential of a new airport to impact on regional economic dynamics. Furthermore, the article argues that such impacts will require new regional planning systems, which are currently absent from the South African political system.     

International perspectives on tourism‐led development: some lessons for the SDIs

The concept of tourism‐led socio‐economic development is neither new nor peculiar to South Africa. This study draws on the international experience of the Malindi‐Mombasa coastal development corridor in Kenya, the Goa Coast of India, the Kulu Valley and Bhutan in the Himalayas, the Gambia, Dominica, Belize and the Maldives. It assesses the results achieved in these tourism programmes against the strategic objectives of those South African SDIs that place a heavy emphasis on the country's tourism potential. The SDIs, as described elsewhere in this collection, represent a new paradigm adopted by the South African government, aimed at moving away from a protected and isolated approach to economic development, towards one in which international competitiveness, regional cooperation and a more diversified ownership base are paramount. The key objectives of the tourism‐led development corridors, including the Wild Coast and Lubombo SDIs, are to generate sustainable economic growth and development; generate sustainable long‐term employment creation; maximise the extent to which private sector investment and lending can be mobilised into the process; change the ownership base of the industry so that people previously excluded from the mainstream of the economy by discriminatory practices can play a meaningful role as workers, managers and owners of new tourism enterprises; and to exploit the opportunities that arise from new tourism and ecotourism developments for the creation of upstream and downstream business opportunities, especially small businesses owned by previously marginalised groups.     

Mining companies' role in sustainable development: The 'why' and 'how' of corporate social responsibility from a business perspective

This article - the first in a pair of articles on corporate social responsibility (CSR) - provides an overview of mining companies' role in sustainable development, from a business perspective and in the South African context. It argues that companies' social and environmental responsibilities are increasing, due to global changes in the way the role of business is perceived, South African policy developments, as well as a strong 'business case' for companies to actively support sustainable development - beyond philanthropy and impact mitigation. Partnerships between companies, the government and civil society are introduced as a potentially effective and efficient strategy for CSR. They are no panacea, however, and require a commitment to local communities' rights to informed prior consent and authentic participation. CSR hence presents mining companies with significant challenges. Given committed leadership and the right approach, it can entail important opportunities as well. Particular attention will need to be given to potential tensions between the international debate surrounding CSR, on the one hand, and local South African development challenges and companies' responses to them, on the other.     

韩国航天科技发展动因、现状与未来走向

运用层次分析法从国际、地区、国家3方面分析韩国加速航天科技发展的原因。根据相关机构数据,分析当前韩国航天科技的发展现状,认为韩国已建成相对完备的航天设施,具有自主研发、本土发射的基本条件。但与先发展起来的航天大国相比,其航天科技还有一定差距。研究认为韩国将继续加速推进航天事业发展,开发多样化、实用型的航天项目,加强自主研发的同时重视国际合作,积极发挥民营企业作用,推动战略性航天产业发展。     

The impact of globalisation on local government in South Africa

Globalisation has been defined as a continuous evolutionary process whereby functions and influences cross boundaries from one state to another. The question is often raised as to whether a country such as South Africa can ignore global influences after years of isolation and integrate positively with the international community as a global player. The South African government has initiated the debate on the possible benefits of globalisation, especially in the local government sphere. Globalisation could, it is believed, facilitate economic and social upliftment in the communities served by local government. Whether it has the expertise and capacity needed to actualise these benefits is, however, debatable. The larger local authorities, or Category A municipalities, have supported the idea of globalisation and have begun formulating policies on international relations. The purpose of this article is, first, to determine the implications of globalisation for South African local authorities. Secondly, based on these findings, an attempt has been made to identify the criteria for integrating successfully into the international local government system. On the basis of these responses, a qualitative evaluation of the identified criteria was undertaken in order to determine the extent to which they have been met in South African local government.     

Supply‐leading versus Demand‐following Hypothesis: Empirical Evidence from Three SSA Countries

Abstract: This study investigates empirically the direction of causality between financial development and economic growth in three sub‐Saharan African countries — Kenya, South Africa and Tanzania. The study seeks to answer one critical question: Does financial development in sub‐Saharan African countries exhibit a supply‐leading or demand‐following response? Using three proxies of financial development against real GDP per capita (a proxy for economic growth), the study finds that the direction of causality between financial development and economic growth is sensitive to the choice of measurement for financial development. In addition, the strength and clarity of the causality evidence is found to vary from country to country and over time. On balance, a demand‐following response is found to be stronger in Kenya and South Africa, whilst in Tanzania a supply‐leading response is found to be dominant. The study therefore recommends that for Kenya and South Africa the real sector of the economy should be developed further in order to sustain the development of the financial sector. However, for Tanzania, there is need for further development of the financial sector in order to make the economy more monetized.     

Renewable energy and local development: Seven lessons from the mining industry

Having long depended on fossil fuels for energy generation, South Africa is now investing in renewable energy. Like its mining operations, its renewable energy plants will have local implications. Renewable energy companies are therefore required by government to engage with communities to contribute to socio-economic development. We present seven lessons we believe the renewable energy sector can learn from the mining industry. We argue that the new industry must: manage social disruption, understand community complexities, create responsive institutions and the capacity to support industry practice, employ trained community practitioners, be clear about the aims of local development, encourage economic diversification in remote areas and, importantly, in view of problems caused by downscaling in the mining industry, plan for the possible closure of projects. Renewable energy projects could then serve and shape local development.     

Rethinking township tourism: Towards responsible tourism development in South African townships

Township tourism in South Africa has grown in popularity since 1994 and is considered by some to be an appropriate mechanism for stimulating local economic development. This paper suggests, however, that it is not necessarily a viable or responsible development option, since it does not automatically ensure pro-poor benefits or enhance community development. Primary research conducted in Soweto to understand visitor demand and tourism stakeholder perspectives suggests there is a demand for responsible tourism in townships. The paper contributes to South African debates about the developmental role of tourism, township tourism and local economic development, responsible tourism, and the related policy implications. It calls for responsible township tourism development in which local authorities play a vital role and recommends the development of township tourism attractions, with a focus on culture and heritage, to create unique visitor experiences.     

A new industry in an older industrial region: Skills, technology and linkages

It has been suggested that recent organisational change centred on functional integration, outsourcing and upskilling has raised prospects of economic development in peripheral regions. This paper examines the character of a new industry in an older industrial region for signs of such upgrading and increased local embeddedness. The paper discusses recent organisational change in the South Wales automotive component industry. Despite some organisational innovation, the main elements of the branch plant syndrome remain apparent in the South Wales automotive components industry.     

Estimating the future health care cost of population aging in South Africa

ABSTRACT

This paper analyses the relationship between health care expenditure and population aging in South Africa using yearly data from 1983 to 2015. Empirical evidence from an Autoregressive Distributed Lag approach to cointegration indicates that old dependency and life expectancy are major drivers of public health expenditure in South Africa besides the income. Particularly, when structural breaks are controlled for, income exhibits a long-term elasticity with respect to health spending greater than unity; suggesting that South African public health care has become a luxury good over time. Interestingly, South African public health spending is found to be responsive to demographic development only in the long run. This is consistent with the micro evidence that health expenditure increases with individual age with significant impacts in the long term. Finally, using economic and demographic projections statistics, we find that public health expenditure could roughly double in the next fifteen years ceteris paribus.     

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.     

Rhetoric or action: Are South African municipalities planning for climate change?

In 2008 the South African National Disaster Management Centre commissioned a study into measures taken by local municipalities to plan for climate change. Two areas were selected for their dissimilar climatic challenges: the //Khara Hais Municipality,1 ¹The // spelling represents the click consonant in the Kxoe language that the name comes from: http://en.wikipedia.org/wiki///Khara_Hais_Local_Municipality * Brendon Solik is now a Consultant at Environmental Resources Management (ERM), Johannesburg, South AfricaView all notes a semi-desert area in the Northern Cape Province plagued by droughts and severe weather events, and the George Municipality, an area in the Western Cape Province plagued by droughts, the rising sea level and flash floods. It was found that despite South African laws and regulations requiring local government to take action to reduce the risk of disasters, planning for climate change is still no more than sophisticated rhetoric in the two municipalities. This lack of urgency can be ascribed to local municipalities having other more pressing developmental priorities. It would, however, be short-sighted of municipalities not to plan for climate change, as major setbacks in hard-won economic and social development follow a disaster.     

An analysis of the impact of the first phase of South Africa's motor industry development programme (midp), 1995–2000

The South African motor vehicle industry is an important branch of the local manufacturing sector, contributing significantly to manufacturing value added and employment. Over the last decade, the local industry has undergone a series of policy reforms, and in recent years has increasingly been exposed to globalisation. This article reviews the role of government policy in shaping the industry, and examines the impact of the first phase of the Motor Industry Development Programme on the industry for the period 1995–2000 in respect of domestic production, automotive industry employment, export performance and the automotive trade balance. The article concludes that even though the industry registered strong export growth that contributed to improving the automotive trade deficit, it was deficient in sustaining domestic production and employment levels. The imminent challenge for the local industry's development is to maintain its export growth trajectory in the long term in the absence of costly government protective incentive mechanisms.     

Russian Projects and Energy Cooperation in South Africa

The article discusses the problems and prospects for the development of a Russian nuclear power plants in South Africa, as well as other innovative energy projects in this country. Acute energy shortages in South Africa give Russia a unique chance to enter the African market and create a technological link between African countries and Russian innovations. An analysis of the political and economic situation in South Africa, as well as an assessment of the prospects for Russian business participation in the development of the South African energy sector were carried out using research conducted by the authors in South Africa in 2016, and interviews with Russian and South African civil servants and businesmen.     

South Africa government's support of the automotive industry: prospects of the productive asset allowance

In 2000 the South African Government introduced an investment incentive for the automotive industry, the Productive Asset Allowance (PAA). This was intended to support the objectives of the Motor Industry Development Programme (MIDP). This paper presents an empirical assessment of the PAA's prospects for supporting the competitiveness of South Africa's automotive industry. It provides a historical overview of the MIDP and the introduction of the PAA and analyses industry performance data on investment and competitiveness from 1998 to 2004. The findings reveal that while the industry succeeded in increasing exports, the share of domestically produced vehicles in the local market decreased. Moreover, investment in R&D, as an indicator for future competitiveness, was insignificant. The offer of a generic investment incentive like the PAA seems to have a significant and positive effect on industry investment, but limited ability to support long-term industry competitiveness through R&D and innovation.     

基于创新效率视角的常州市科技服务业高质量发展研究

科技服务业是促进产业结构优化升级的重要推动力量。构建成熟的科技服务业体制与机制,是科技服务业稳定发展、促进企业创新活动有效展开、提高当地经济水平快速提升的重要手段。目前,中国经济增长处于增速下行、艰难转型的关键时期,分析科技服务业的创新发展效率及其发展路径,可以为区域经济结构调整、产业布局及相关政策制定提供决策参考。以常州市近10年的科技服务业投入产出要素为依据,运用数据包络分析(DEA)法分析研究常州市科技服务业近10年的创新效率情况,并从静态和动态的角度对比常州市科技服务业在苏南五市及江苏省平均发展中的水平定位。