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- Volume 4, Issue 3, 2001
South African Journal of Economic and Management Sciences - Volume 4, Issue 3, 2001
Volumes & issues
Volume 4, Issue 3, 2001
Author F.J. ScholtzSource: South African Journal of Economic and Management Sciences 4 (2001)More Less
A general perspective of the dimensions of globalisation is provided. These dimensions include a general background, the demographical and political dynamics of globalisation, a few trade and financial-flow perspectives, some regional aspects and, finally, the domestic considerations to be taken into account.
Author M.Peter Van der HoekSource: South African Journal of Economic and Management Sciences 4, pp 412 –425 (2001)More Less
In this paper, I will focus on the current situation with regard to globalisation from a historical perspective, while I will also look at possible future developments. The term globalisation appeared in a dictionary for the first time in 1961, but the concept of globalisation is not always clear. According to Levitt (1993) a global corporation ""operates ( ... ) as if the entire world (or major regions of it) were a single entity; it sells the same things in the same way everywhere"". This describes a problem of some of US companies operating in foreign markets rather than to define globalisation meaningfully. Globalisation is sometimes viewed as synonymous to internationalisation, increasing international interdependence, or as a development towards relations acquiring relatively distanceless and borderless qualities. I interpret globalisation as economic integration of countries in the world economy on the basis of open markets and free movement of goods, services, workers and capital.
Author J.L SadieSource: South African Journal of Economic and Management Sciences 4, pp 426 –444 (2001)More Less
Demographic globalisation, as the counterpart of economic globalisation, is interpreted as the movement towards a state depicted as the ""global village"" where there are no official impediments to the cross-border movement of people. Such movement is posited as the outcome of inter-country disequilibria which determine the levels of the propensity to migrate. Relevant problems are addressed such as whether the international trade in goods and services can serve as substitute for migration of labour (accompanied or unaccompanied by dependents); demographic complementarities between more and less developed countries; the type of labour demanded by countries of immigration; demographically perverse migratory flows; the socio-economic problems ensuing from the formation of numerically strong ethnic minorities in host countries; and what the outlook is for the realisation, in demographic terms, of a global village mode.
Author R.A. SchrireSource: South African Journal of Economic and Management Sciences 4, pp 445 –457 (2001)More Less
Globalisation is a multidimensional phenomenon and should be conceptualized as a process rather than an outcome. Economic, political, cultural and societal elements are involved in the complex set of interactions we can-define as globalisation. However, a key factor, which is frequently ignored is the importance of politics in shaping and guiding this process. For example economic liberalization and deregulation, the form which economic globalisation has thus far taken, did not emerge from impersonal market and technological forces. Governments, especially those of the United States and Great Britain, followed explicit policies of currency controls relaxation, the reduction in trade barriers, and the retreat in the role of the state in the economy generally. Despite the power of the economic forces thus released, politics remains a key potential player and giobalisation is not necessarily irreversible. Given the indeterminacy of the outcomes of globalisation, four alternative theories of the future are presented and analysed.
Author S.M. BrinkSource: South African Journal of Economic and Management Sciences 4, pp 458 –475 (2001)More Less
Much has been written about globalisation. Something truly insightful rarely comes to light. This article is no such attempt, it merely attempts to reconcile disparate views and tie some loose strands on the subject of increasing international integration. More specifically, the features and implications of current trade and investment patterns are awarded attention. The prominence of technological innovation is emphasised, as is the role of FDI in the diffusion of technical progress. Globalisation has implications both for developing and developed economies; for instance, its effect on growth, the consequences for macroeconomic stability and the effect on income inequality - particularly for low-skilled workers. Trade invites arbitrage in social values; social tension and populist demands for protectionism arise from this. Also, globalisations heightens economic risk and while the pressure on governments to mitigate this rises, their ability to respond effectively is dwindling, eroding the social consensus required to maintain open markets.
Author S.K.B. AsanteSource: South African Journal of Economic and Management Sciences 4, pp 476 –492 (2001)More Less
As we enter the brave new world of the 21st century, a critical analysis of Africa's position in the globalising world economy with a view to grasping fully the policy challenges that lie ahead has become increasingly necessary. To this end, the paper addresses not only the challenges which globalisation poses to Africa; it also draws attention to the general denunciation, in Africa, of the phenomenon of globalisation. It is argued that while Africa cannot resist globalisation, it can at least make adjustments in economic policies that will enable the African countries to achieve gains while conceding losses. Hence an agenda for action has been provided to highlight a number of key areas on which policy should focus attention.
Source: South African Journal of Economic and Management Sciences 4, pp 493 –504 (2001)More Less
Proposals and schemes for regional integration have abounded in post independence Africa, often with disappointing results. Recently there has been a revival of interest in African economic integration. Unlike in the past, regional integration is now motivated as a way to open up African economies. This paper assesses whether regional integration amongst African states is the best way to achieve open economies. The conclusion is that regional integration between African states may be of limited value, apart from possibly contributing to better co-ordination of sound macro-economic policies. Instead, integration between African countries and higher-income regions, such as Euroland, may be a preferred strategy.
Author G. MaasdorpSource: South African Journal of Economic and Management Sciences 4, pp 505 –523 (2001)More Less
Economic dualism in South Africa has mutated from the original modem vs. traditional sector conception to one of poverty vs. non-poverty. Globalisation provides opportunities to reduce poverty, but government policies determine the outcome. The South African government's sound macroeconomic policies have not been matched on the micro side. The labour market has not been liberalised, employers are loath to increase staff numbers, and foreign investment in labour intensive industries is not being attracted. The policy choice is one of lower real wages and more jobs or higher real wages and fewer jobs. The unemployed and those in absolute poverty would opt for the former, unionised labour for the latter. Policy reforms will be politically difficult, but without them the dual economy will persist.
Author R.M. GidlowSource: South African Journal of Economic and Management Sciences 4, pp 524 –541 (2001)More Less
There is no ""silver bullet"" for reducing the external imbalances facing South Africa, and for coping with the ebb and flow of foreign capital movements. Nevertheless, various policy measures can be identified which would most probably reduce the incidence of external shocks which can plague South Africa's capital account of the balance of payments. Sound macro-economic policies, and in particular the creation of an environment incorporating greater monetary stability are perceived to be crucially important. The position on the capital account needs to be altered such that greater inflows of foreign direct equity capital take place, and in this respect it is concluded that a reduction in the corporate tax rate offers one of the few options open to the authorities at this stage. This offers greater potential than a system of special tax incentives, the effectiveness of the latter in attracting greater foreign investments being open to question.
Author E. HeathSource: South African Journal of Economic and Management Sciences 4, pp 542 –569 (2001)More Less
The pressure of globalisation is having a major impact on tourism destinations throughout the world. The implications for destination marketers are profound and the response will require a new strategic focus and approach. This paper focuses on the changing global tourism environment, with particular emphasis on the key trends and developments that are likely to occur in the early part of the twenty first century. The paper concludes with an outline of the key factors that need to be addressed to ensure competitive success for developing tourism destinations such as South Africa.