Liberalising communication services in South Africa

There is a broad consensus that for the communications industry to flourish in a country, it must be opened to private competition. However, countries have adopted varied approaches to liberalisation, some more cautious than others. This paper critically assesses South Africa's approach to liberalising its communications industry. It argues that although there have been some gains from the current phased approach, these fall short of the potential gains that could have been achieved had more competition been introduced sooner. It also argues that, with hindsight, some of the fears that gave rise to the approach adopted in the country may have been misplaced. It concludes that there is still considerable scope within the current regulatory arrangements to bring about some of those additional gains now.     

Poverty,livelihood and class in rural South Africa

Using data from a national living standards survey undertaken in late 1993, this paper disaggregates and explores the economics of livelihood generation and class in rural South Africa in an effort to contribute to the ongoing and vociferous debate in South Africa about poverty and its alleviation. Pursuant to the suggestion of participants in a recent participatory poverty assessment, this paper analyzes what might be termed the class structure of poverty. After exploring the range of claiming systems and livelihood tactics available in rural South Africa, the paper offers a first look at who the poor are by disaggregating the rural population into discrete livelihood strategy classes. Non-parametric regression methods are used to then estimate and graphically explore the nature of the livelihood mapping between endowments and real incomes. In addition to identifying those endowment combinations that map to consumption levels below the poverty line (the asset basis of poverty), the topography of the estimated livelihood mapping helps identify the constraints that limit household's ability to effectively utilize their assets and endowments. These results suggest that poverty is a matter of not only having few assets, but also of constraints which limit the effectiveness with which those assets are used, and poverty and livelihood policy needs to be designed accordingly.     

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.     

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.     

Energy,environment and the rural poor in South Africa

The lack of adequate energy services imposes heavy social and environmental costs on poor rural households. The rural energy‐environment interface, however, is prone to oversimplistic analyses, especially in the case of the ‘fuelwood problem’, and to a lack of research. International experience suggests that deforestation is not necessarily an ‘energy problem’ resulting from the cutting of trees for fuelwood ‐ and therefore that it may not have an energy solution, like planting more trees for firewood. Instead, wood scarcity must be understood under multiple use of wood resources, and policies need to be multifaceted if they are to succeed. South African studies show that wood is becoming increasingly scarce in many areas; here fuelwood collection may contribute to deforestation more than suggested by international experience. In addition to the environmental effects of increasing wood scarcity and its social costs, borne largely by women, another serious problem arises from indoor air pollution caused by wood fires with social and health costs largely unaccounted for to date.     

Remittances and development: the impact of migration to South Africa on rural livelihoods in southern Zimbabwe

The development potential of remittances has not received much policy attention in the migrants' countries of origin. The Homelink facility established by the Reserve Bank of Zimbabwe in May 2004 excludes undocumented migrants, who are unlikely to use formal channels to send their remittances back home, and studies on international migration from Zimbabwe to South Africa have neglected the role of remittances, especially from undocumented migrants. However, some countries have realised this potential and developed strategies to encourage the flow and investment of remittances, which can contribute significantly to poverty reduction and development. Without such regulations and policies, which require the collaboration of government, migrant groups, the local community, non-governmental organisations and other international organisations, migrant remittances will continue to be used mainly for consumption, with a very small proportion being invested in sustainable investment.     

A preliminary evaluation of the new RIDP and its impact on regional development in South Africa

The debate on regional political autonomy makes regional economic development a subject of central importance. Current policy is embodied in the Regional Industrial Development Programme (RIDP), as revised in May 1991. Regional industrial policy in South Africa originated in 1956 with the Border Industry Programme, whose objective was to create economically independent sovereign states, Subsequent shifts of emphasis from socio‐political objectives towards a predominantly economic orientation in the 1991 RIDP were expected to concentrate the allocation of resources to industry at locations with greater natural potential for industrial development.

An evaluation of the preliminary results of the 1991 RIDP confirms these expectations in that, as far as capital investment is concerned, a certain degree of concentration is already discernible especially in metropolitan areas and secondary cities. However, it seems there are a number of factors present in the market‐place that are still inhibiting the full realisation of the objective of concentrated industrial development at locations with a natural potential for industrial development. The existing institutional development framework, the availability of relatively cheap excess infrastructure in certain locations and the spatial application of the new RIDP are some of the factors that could possibly have influenced locational decision making during the last 20 months.

Therefore, although the new RIDP is more market orientated than its predecessor and certainly much more economically sustainable, a number of issues still need attention, and further adjustments to the programme should be made if the various regions are to be developed optimally and scarce economic resources utilised effectively.     

The development of medical consumerism in South Africa

Private medical practice is increasingly perceived as an entrepreneurial activity by private patients. Accordingly, enlightened and assertive medical consumers can be expected to demand satisfaction in exchange for their health‐care purchases. Vociferous patients, reacting to dissatisfaction and inequities, may launch an association as a countervailing force to the powerful doctors’ associations. Structural imbalances and the sophisticated yet critical nature of medical care have hitherto precluded the existence of medical consumerism. However, in an environment of individual and community sovereignty, such a force is imminent where adversarial doctor‐patient relationships develop, or where patients’ rights are infringed. Once this force has been established, its influence will spread to public health care, especially when patients believe their basic rights are being infringed. This article, therefore, enlightens practitioners and National Health Service providers on the possible areas of conflict.     

Public utility pricing and regional development in South Africa

The paper considers the effects of public utility pricing in respect of (i) the rail transport of goods, (ii) electricity supply and (iii) irrigation water in the pursuit of economic efficiency and regional development, both of which represent objectives of economic policy in South Africa. It appears that public utility prices deviate significantly from the resource costs of the respective services supplied and generally tend to have greater impact on economic efficiency than on regional development. Moreover, it may well be the case that the South African economy has not yet reached an unequivocal trade‐off state between economic efficiency and regional equity. It is therefore suggested that public utility pricing be directed at achieving a more efficient pattern of resource allocation, while regional development be promoted by measures to stimulate internal and external economies of scale.     

Urban–rural inequalities in health care delivery in South Africa

Urban–rural inequalities in access to health care services continue to persist in South Africa, and in almost all cases discriminate against the poor. In certain cases disparities are even worse in urban areas, although levels of service delivery admittedly are consistently worse in rural areas. People in rural areas are generally more dependent on public and other health care services than on private services, compared with people living in urban areas. There is limited evidence of substantial intra-urban disparities, with inequality being worse in smaller urban settlements (i.e. towns) as opposed to larger ones (i.e. small cities and metropolitan areas). The article emphasises the important role the envisaged future decentralisation of selected health services to local government is likely to play in addressing these inequalities and the lack of service delivery at this level.     

Economic development and rural industry in South Korea and Taiwan

This paper attempts to provide insights into the dynamics of rural industry by examining its historical performance in South Korea and Taiwan. The evidence suggests that with economic development, (i) industrial activity has shifted from the rural to the urban areas, but the shift has been much more dramatic in Korea than in Taiwan, and (ii) rural industry in the forms of secondary activity and non-factory production has declined while medium- and large-sized rural factories have become more important. The paper then explores the reasons for these changes and for the differences in rural industrial growth in the two countries.     

Whither the study of development in South Africa?

In South Africa we have, since 1990, experienced an upsurge of interest in the study and teaching of development. In this article it is argued that two brands of development research and teaching have emerged in South Africa: one brand has a distinct public administration/management focus, while the other has a more pan-disciplinary, development studies focus. Despite these different focuses, a peculiar convergence has taken place in that the themes of study of the two ‘schools’ often overlap. This convergence demands further exploration of a number of themes, such as the research methodologies appropriate to the South African development context; approaches to administration and management relevant to South African development; balancing the role of state and civil society in South Africa; and clarity on what we mean by the concept ‘empowerment’ in our deliberations on development in South Africa.     

Participation,planning and linkages: International lessons for agricultural extension in South Africa

This article considers the experience with agricultural extension in less developed countries (LDCs) and the international shift to participatory techniques and practices. It examines the causes and effects of the poor impact of extension, the poor institutional and personal linkages in the field, and the poor planning in LDCs. All the role‐players in government, agricultural extension and research in South Africa will need to act with energy and commitment if the country is to benefit from the international lessons.     

Identifying employment-creating sectors in South Africa: the role of services industries

This paper explores scenarios for employment creation, with an emphasis on services. It considers whether the government's current policies for the formal services sector will achieve its 2014 target of halving unemployment. New employment has mainly been found in the formal and non-formal services, and future employment will probably come from such sectors as business services, trade, finance and tourism. As at 2004, about 480 000 new jobs were needed annually to halve unemployment from 26.2 per cent to 13 per cent by 2014. This would require at least twice the average annual job creation since 1994. Two scenarios are considered: the first under current conditions with similar rates of growth; the second with substantial improvements in policy, especially the promotion of trade in services. The first scenario leaves the economy with the same rate of unemployment in 2014. The second sees a reduction in unemployment of 20 per cent.     

Human resource development and growth: improving access to and equity in the provision of education and health services in South Africa

This paper demonstrates the importance of improving access to and equity in the provision of essential services such as education and health for enhancing human development. A major constraint to accelerating and sustaining economic growth in South Africa is the shortage of skilled human resources. Human capital formation (through appropriate education, training and health) is vital for growth. However, for sustained growth to reduce poverty and unemployment, human capital of a ‘higher order’ than the system is currently producing, in both quantitative and qualitative terms, must be generated. The paper reviews progress in the education and health sectors and identifies the challenges. It stresses the need for policy makers to recognise the link between education and health outcomes and the provision of clean water, adequate sanitation, cheap and accessible transport and effective nutrition programmes. Addressing only the education and health services is unlikely to lead to optimal outcomes in these sectors.     

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.