Practicing in a fish bowl

Intent on recovering "overpayments" to doctors, private insurers are turning to on-site practice audits. Here's a survival guide for these quasi-legal skirmishes.     

Characteristics of agricultural input package users in communal clubs serviced by Acat in KwaZulu: A note

Characteristics of communal club members who use input packages are studied using a survey of communal clubs serviced by Africa Co‐operative Action Trust (Acat) in KwaZulu during 1989. Discriminant analysis shows that full input package adopters tend to belong to older clubs, have less formal savings and receive more visits each year from KwaZulu Department of Agriculture (KDA) extension officers. They also have a greater proportion of land under sugar‐cane, larger farm sizes and a higher rand monetary value of livestock.

Members of older clubs benefit from greater club experience in ordering inputs and liquidity for securing discounts on bulk orders. Clubs also enable scarce KDA extension manpower resources to be used more effectively by focusing extension efforts on groups rather than individual farmers. Sugar‐cane production probably indicates member willingness to innovate and the availability of funds to buy complete input packages for other crops. Increased access to land promotes input package adoption which can raise agricultural productivity. Development of institutional arrangements for a land rental market in KwaZulu should be considered. Higher monetary values of livestock reflect Increased ability to bear risk associated with technology adoption and that adopters have the means to purchase input packages     

Banks and the stability of the international financial system

Summary Does today's banking scene pose a potential threat to the stability of the international financial system? The article discusses three possible sources of vulnerability of the international banking system: a major bank failure causing a general banking crisis via the extensive interbank linkages; the systemic risks allegedly inherent in certain new (as well as traditional) financial products; and the impact of external events such as debt crises, violent swings in exchange or interest rates, deregulation and recession. The author's conclusion is twofold: systemic risks clearly exist, but the probability of a major banking crisis tends to be greatly exaggerated. Banks not only survived the various crises of the seventies and eighties; they also learned in the process. Capital and reserves have been strengthened, provisions for country risk and for general contingencies have increased, supervision has been tightened and it is exercised on a comprehensive as well as a world-wide consolidated basis (i.e. including all contingent and off-balance liabilities, and all offshore activities). Assuming reasonably intelligent policies on the part of the monetary authorities and adequate international coordination, a general banking crisis can be avoided. Official rescue operations do, however, raise difficult questions of an ethical, political and economic nature.     

Socio‐economic factors determining the success achieved among cotton‐adopting households in two magisterial districts of KwaZulu

The aim of the paper is to investigate certain aspects of the post‐adoption behaviour of dryland cotton farmers in the Ubombo and Hlabisa magisterial districts of KwaZulu. Particular attention is paid to the socio‐economic determinants of the success (returns per hectare) of the household cotton enterprise.

Multi‐stage sampling methods were used to draw a random sample of fifty cotton‐farming households from each of the two study districts. The data were collected by interview survey and analysed using principal components and regression techniques.

Results suggest that the success of the household enterprise in both areas is largely determined by the socio‐economic environment under which the producer operates. The most important success‐determining factors are those relating to the human capital endowments and economic status of the household.