Key issues in regional growth and integration in Southern Africa

ABSTRACT

The decade to 2015 saw rapid growth in trade between Southern African Development Community (SADC) countries. Much of this growth reflected South African exports to its neighbours of diversified manufactured goods to meet growing urban consumption and to supply inputs to mining and infrastructure. While most SADC countries, aside from South Africa, grew quite rapidly over this period, their exports remained oriented to a narrow range of minerals and agricultural commodities destined to go outside the region. Drawing from a series of sectoral studies, we assess key regional issues including the investment and production decisions of firms whose operations stretch across borders, and consider the implications for a bottom-up integration agenda that could build productive capabilities across countries. Our evaluation highlights the importance of the spread of supermarkets, the need to address transport and logistics, and value chains whose competitive advantages are inherently regional, as in the cases of poultry and mining.     

Population Problems of the Countries of Asia

Abstract

This study seeks to explain the variation in U.S. foreign direct investment (FDI) in Latin America and Asia. The analysis focuses on 19 Latin American and Asian countries for the period of 1979–1999. The results show that the variation in the U.S. FDI can largely be attributed to the differences in fundamental economic and social factors such as market size, gross domestic product (GDP) growth, macro-economic stability, the degree of trade openness, and both school enrollment and infrastructure availability. Separating the data into two time periods reveals interesting results about the location decisions for U.S. investors. In addition, the results from the comparison between the two regions show that Latin American countries clearly attract U.S. FDI for different reasons than Asian countries.     

Analysing legal mobilisation’s potential to secure equal access to socioeconomic justice in South Africa

ABSTRACT

From the moment South Africa became a liberal democracy, the Government promised to deliver on social security for the poor. However, South African NGOs have reported that several barriers prevent poor South Africans, and black women in particular, from accessing the country’s social assistance system. Government inaction has compelled NGOs to approach the Courts. As reflected in a series of court judgements, many problems faced by the system relate to the administration of payments by South African and multinational corporations. But is this the complete story?

Applying a critical, analytical lens of legal mobilisation to explain the potential of legal mobilisation to secure progressive structural change, this article will assess the extent to which civic-based, legal advocacy aimed at securing access to social grants, and challenging the manner in which these grants have been administered, has the potential to more strategically advance socioeconomic justice and inequality for South Africa’s poor.     

Some Methodological Issues on Estimating Foreign Exchange Exposure of US Multinational Firms: Evidence from the Asian Crisis

Abstract

This article asks whether sample specification of firm, period, and exchange rate matters in estimating foreign exchange exposure of US multinational firms. By sampling US firms that had Asian sales and assets from 1996 to 1998, we find that the firms’ returns are more likely to be significantly exposed to the Asian-oriented exchange rate changes for the Asian crisis, when the exchange rate changes were unexpectedly sizable. Also, by examining firms’ exposure in the share of Asian sales and assets, we find that the firms are more exposed as their operations are more involved in the Asian region.     

Globalisation,poverty and corruption: Retarding progress in South Africa

ABSTRACT

Poverty and corruption can both immiserate a nation. Globalisation through open trade can potentially increase economic growth, providing employment and increased incomes to the poor. Corruption can dampen or even reduce these positive developments. Although globalisation is considered instrumental in development strategies, theoretically, the impact of globalisation on poverty reduction is ambiguous, an ambiguity that is also reflected in the empirical literature. The corruption-poverty literature clearly reveals that empirical findings on such association are at best heterogeneous. This article examines the effects of globalisation and corruption on poverty using time series data for South Africa for the period 1991–2016. Three indicators of poverty and recently developed measures of globalisation and corruption were employed in the logistic regression model used for estimation. The results confirm that globalisation reduces poverty while corruption intensifies it. The globalisation findings are robust across the different measures of poverty while unidirectional results show corruption increases poverty.     

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.     

The role of secondary cities in managing urbanisation in South Africa

Following on from earlier work dealing with the role of metropolitan municipalities in managing urbanisation, this article assesses the role played by secondary cities in this regard. Although secondary cities have largely provided adequate infrastructure in line with the demands of population growth, three differences between metropolitan municipalities and secondary cities should be noted. First, on most indicators, secondary cities have more outliers than do metropolitan municipalities. Second, household incomes in secondary cities remain lower than those in metropolitan municipalities. Third, the ability of secondary cities to provide basic infrastructure does not differ much from that of metropolitan municipalities. In fact, there is evidence to suggest that, in terms of certain indicators, secondary cities have managed to deliver these faster than their metropolitan counterparts. We argue that the progress made in secondary cities during the period under consideration cannot be separated from the fact that the economic growth in more than 50% of secondary cities has been linked either to mining or to another dominant economic driver.     

基于应对极端降雨事件的绿色规划策略分析

极端降雨事件威胁着城市的正常运转。基于城市应对极端降雨事件角度,对城市的绿色规划策略从理念和实施两个层面进行分析。从理念层面分析韧性城市的概念,并提出绿色基础设施的韧性内涵,总结分析当前国内外的绿色规划理念;从实施层面总结国内外绿色规划理念在实施过程中遇到的诸多挑战,并归纳出国内外应对挑战的诸多措施。通过研究,为我国应对极端降雨事件的城市建设策略提供理论参考和依据。     

Economic impacts of developing a biofuel industry in Mozambique

ABSTRACT

Mozambique is one of the most promising African countries for producing biofuels and the national biofuel policy of 2009 identifies measures to incentivize biofuel production. Demand for biofuels in the Southern African Development Community is expected to increase over the next few years as 7 of its 15 member states have implemented or proposed the implementation of blending mandates by 2020. South Africa is one of these countries. Using a dynamic recursive computable general equilibrium (CGE) model, we estimate the impacts of expanding biofuel production in Mozambique under both commercial and smallholder-type farming models, including and excluding bagasse cogeneration.     

Environmental efficiency and its distribution dynamics in Chinese cities

ABSTRACT

This paper investigates environmental efficiency and its distribution dynamics in Chinese cities. The analyses are applied the meta-frontier data envelopment analysis and the continuous dynamic distribution approach together with panel data of 286 Chinese cities at the prefecture and above-prefecture levels. The results show that during the period of 2002–2011, the average environmental efficiency in Chinese cities is well below the production frontier. The coastal cities show better performance than the central and western cities; large and extra-large cities are more efficient than small and medium cities; and the environmental efficiency for the ‘key’ cities is slightly better than that for the ‘non-key’ cities. The spatial dynamic distribution analyses indicate that the environmental efficiency of Chinese cities tends to converge. To improve environmental efficiency in the future, the government should pay more attention to the central cities, medium and large size cities in western China, and the non-key cities.

Abbreviations: CPI- Consumer price index; DEA- Date envelopment analysis; DMU- Decision making unit; GDP- Gross domestic product; GMI -Group- frontier managerial inefficiency; IPCC- Intergovernmental Panel on Climate Change; MTR- Meta- technology gap ratio; NTP- Net transition probability; PAA- Prefecture and above-prefecture levels; PIM Perpetual inventory method; SFA Stochastic frontier analysis; TGI Technology gap inefficiency     

Assessment of the effects of infrastructure investment under the belt and road initiative

Based on the estimated effect of infrastructure investment on total factor productivity (TFP) enhancing and trade costs reducing, this paper uses the data from Asian Development Bank to numerically assess the effects of Asian nations' infrastructure investment under the Belt and Road Initiative within the Global Trade Analysis Project (GTAP) model, and the results show that most countries or regions' economic growth, welfare, foreign trade, and trade terms are promoted in varying degrees. However, some countries (regions) have suffered. Additionally, the existing division of labor and trade patterns between developed economies and developing countries somehow consolidated because of changes in trade. In addition, China's industrial transformation and upgrading will benefit from the infrastructure investment under the Belt and Road Initiative, namely, the traditional industries slowdown or decline and high-tech manufacturing and service industries speed up, along with the optimization of factor allocation among industries.     

Analysing job creation effects of scaling up infrastructure spending in South Africa

In a first for South Africa, this article draws on literature on infrastructure productivity to model dynamic economy-wide employment impacts of infrastructure investment funded with different fiscal tools. Using a dynamic computable general equilibrium model, the South African investment plan is modelled, given the infrastructure externality. Alternative fiscal scenarios to finance the policy are modelled in the article. In the long run, unemployment decreases for all types of workers under one of the scenarios. In the short run, only elementary occupation workers benefit from a decrease in unemployment; for the rest, unemployment rises.     

Food consumption in the pre-industrial Nordic societies

Abstract

The article reviews different measures as to when the change from a survival society to a consumer society took place in the Nordic countries, and summarizes the results of earlier research. Among the measures used are foodstuff consumption, real wage levels, demographic development, and changes in human stature. The consumer revolution most likely started in Denmark before 1800 and in Norway and Sweden at the beginning of the nineteenth century, whereas in Finland and Iceland such change did not take place until after 1850.     

Managing the Monetary Consequences of Reserve Accumulation in Emerging Asia

Abstract

The huge increase in international reserve holdings by Asian countries since the 1997 crisis has been one of the most important recent developments on the international financial scene. These buildups have contributed substantially to concerns about the creation of excessive global liquidity. How justified these concerns are depends heavily on the extent to which the reserve accumulating countries have been able to sterilize the effects on their domestic monetary aggregates. We use a unified theoretical framework to undertake dynamic estimations of the magnitude of sterilization and offset coefficients (which measure the degree of capital mobility) for a large set of Asian economies. We find that despite substantial capital mobility there has been a high degree of effective sterilization to date.     

An integrated planning model for investment in urban infrastructure and pricing municipal services

This viewpoint proposes an iterative, cyclical and incremental model for preparing and pricing a capital investment programme and budget for municipal infrastructure services. South African towns and cities are used as case‐studies. The model links capital investment, operation and maintenance (supply) to the prices offered or paid by the beneficiaries (demand). Ignoring the conventional framework for the development of an area, this viewpoint concentrates on how capital investment for municipal infrastructure services could be planned and programmed and prices or tariffs determined. Given that socio‐economic trends in most municipalities in South Africa are unpredictable, short‐ to medium‐term capital investment planning is emphasised.     

Japan's Policy Stance on East Asian Neo-Regionalism: From Being a “Reluctant”, to Becoming a “Proactive” State

Abstract

This article is a theoretically grounded empirical contribution aimed at shedding light on Japan's policy stance on East Asian neo-regionalism. It aims to examine the recent region-building process in East Asia. The dynamics in East Asia suggest that regional institutionalization, brought about by norm diffusion based on the idea of neo-regionalism, is likely to follow a progressive and evolutionary trajectory through the institutionalization of the Association of Southeast Asian Nation (ASEAN)?+?3 (South Korea, Japan and China). It provides a wide spectrum of regional-integrationist perspectives in order to offer as full a picture as possible of Japan's role in promoting regional integration in East Asia. The key finding of this article is that Japan has changed from a being “reluctant”, to becoming a “proactive” state in the context of regional collaboration in East Asia.     

Milk in the city: profiles and development paths for urban dairy holders in Ethiopia

ABSTRACT

Demand for dairy products is growing fast in urban areas. Due to poorly developed rural infrastructure, urban dairy farms are pivotal in making milk available and affordable in towns and cities. Yet current supply fails to meet the increasing demand. In order to formulate fit interventions that can expand urban dairy production, a detailed understanding of urban dairy systems is needed. Using a cluster analysis approach, we profile 304 urban dairy farms in Mekelle, Northern Ethiopia, along three dimensions: input efficiency, market integration, and resilience towards demand seasonality. Our results suggest five distinctive farm types: surviving farms, processing female farms, young male entrepreneurs, established output-efficient farms, and established output-input-efficient farms. We observe large discrepancies in terms of dairy enterprise’s productivity, profitability, and suitability in future urban policy planning. For each of the identified dairy systems, we sketch potential intervention approaches that can feed into more tailored dairy development programmes.     

Family Capitalism within Big Business

Abstract

The article addresses central questions in the research of family business, corporate governance and the transformation of Swedish industry. The analysis is drawn from the example of the Wallenberg family in Sweden, an industrial dynasty of five generations. Ideas of ownership and overriding values are discussed in relation to pressures of change in international industries. In detail, the article deals with 1) the concepts of corporate governance, long-term active ownership and networking capacity and the chronology of successful family capitalism, 2) the pressures for change experienced in early post-World War II Swedish industry in general and in the three multinational companies in particular, 3) how the owners and top management of the three companies responded strategically to these pressures and 4) the extent to which the provision of capital was accompanied by industrial competence or if simple patience on the part of capital was sufficient.     

Resistance to coal inequalities and the possibilities of a just transition in South Africa*

ABSTRACT

Coal mining and burning are among the most destructive activities on the planet, and a major driver of environmental inequality in South Africa. This article suggests that, despite heavy constraints, initiatives involving resistance to coal are building a ‘counter-power’ which challenges inequality, generates solidarity, and is potentially infused by imaginative visions of another world beyond coal. Following the ‘social power’ approach this vision could, with deeper connections between three sites of resistance to coal – organised labour, mining affected communities and environmental justice organisations – cohere into a vision of a ‘just transition’. This could embed the anti-coal struggle in a social movement for an alternative development path to challenge deepening poverty and inequality.     

Price formation in the Danish stock market in the 1890s

Abstract

Trading¹ in stocks has a fairly long history in Denmark. It dates back to the end of the 17th century at least, as evidenced by M?glemes Articler from 1684, where one can find information about brokerage fees for sales and purchases of shares of the East Asian, West Asian and other chartered trading companies. In the beginning of the 18th century, newspapers started carrying information about transactions in stocks. Stock exchange price quotes were listed in the newspapers fairly regularly from around 1760.