The integration of the formal and informal urban sectors in South Africa

Although the centre down and grass roots approaches in many respects may represent a developmental antithesis, a good case may be made for the combination of the two approaches under dualistic economic circumstances. An attempt is made in this paper to demonstrate how these diverse development policies may be successfully reconciled in urban Southern Africa. A review is given of the theoretical foundation of the two development approaches with a view to indicating how some aspects of these approaches may be combined to integrate the formal and informal sectors in urban areas in Southern Africa.     

United States concessions in the Kennedy Round and short-run labor adjustment costs

This paper reports on an econometric analysis of the exemptions awarded to United States industries from the across-the-board 50 percent tariff cut imposed in the Kennedy Round. It is shown that as much as 50 percent of the inter-industry variation in reductions in nominal tariff and non-tariff rates may be accounted for by variables that proxy labor adjustment costs. In particular, certain industrial characteristics are significantly related to the Kennedy Round reductions: declining industries, and industries with a high proportion of unskilled or old workers, are associated with low reductions.     

Mortgage Refinancing,Adverse Selection,and FHA's Streamline Program

When interest rates decline, borrowers whose houses have appreciated significantly refinance out of FHA, while those whose houses have not do not. We provide evidence of the negative impact of regular (nonstreamline) refinancing in the mid-1980s on the average quality of FHA's surviving business. We demonstrate this adverse selection both informally and econometrically. We also argue that the sharp reduction in the cost of streamline refinancing (limited documentation, no required appraisal, and so on) in FHA's streamline refinance program in 1992 likely reduced the level of adverse selection in the FHA portfolio during the 1993 to 1994 refinancing boom, and we provide quantitative estimates of the resultant reduction in claim rates. While this reduction in cost almost certainly increased the financial viability of FHA during the middle 1990s, it may not in the long run.     

Technical information,technical assistance,and technology transfer—the need for a synthesis*

In the literature and often in practice, technical assistance, technical information, and technology transfer are treated as three separate activities. This paper discusses the relationship between them. Illustrations are given of the inability of overspecialized systems to effectively serve a broad range of needs. Some suggestions are made for research that is needed in this area. to help improve the design of systems and institutions and the training of people to carry out these functions. Some experimental ideas are presented which can help to resolve some of the policy and design problems in this area.