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- Journal of Development Perspectives
- OA African Journal Archive
- Volume 3, Issue 1, 2007
Journal of Development Perspectives - Volume 3, Issue 1, 2007
Volume 3, Issue 1, 2007
Policy and industry structure in the South African Automotive sector: from import substitution to 'extreme' export orientationAuthor Anthony BlackSource: Journal of Development Perspectives 3, pp 1 –30 (2007)More Less
The South African automotive industry developed under high levels of protection which led to an inefficient and high cost production structure. Since the early 1990s, the industry has been through a rapid process of adjustment with the implementation of policies which reduced tariffs and allowed exporters to rebate import duties. This paper examines the effect of these policy changes on the structure of the industry. A mixed picture emerges. In some respects the industry is more efficient. Export growth has led to an improvement in economies of scale and higher productivity. On the other hand some export sectors appear vulnerable to declining support. Imports are rising rapidly and the industry still lacks sufficient scale to encourage high levels of domestic content on an economic basis. Future policy needs to ensure an appropriate balance between production for export and for the domestic market.
Textile industry structure and government conduct: assessing the impact of the duty credit certificate scheme on industry performanceAuthor Martin BreitenbachSource: Journal of Development Perspectives 3, pp 31 –53 (2007)More Less
The clothing and textile sector in South Africa has forever been a contentious sector insofar as its historic labour augmenting capabilities are concerned. The industry has developed a certain structure, in large part as a result of years of government intervention (conduct). The performance of the sector, given the conduct by government is the primary object of investigation in the paper. Finding that production and employment (as indicators of industry performance), have been on a long run declining path, the secondary and main object of investigation then turns to a behind-the-scenes look at the workings of the government's Duty Credit Certificate Scheme (DCCS). The paper illustrates how the DCCS explains for much of the distortions that altered industry conduct and resulted in a dwindling production performance.
Asymmetric tariff reduction within the SADC protocol on trade and its implications for industrial development within member statesAuthor Tsitsi Effie MutambaraSource: Journal of Development Perspectives 3, pp 54 –73 (2007)More Less
The Southern African Development Community (SADC) aims to facilitate and attain deeper economic integration and industrial development among its members. To achieve these objectives, the grouping developed the SADC Protocol on Trade whose implementation began in 2000. While this Protocol is mainly a trade instrument, this article seeks to explore how it could be used to facilitate industrial development instead of using it solely for trade integration. In analysing this Protocol it has been observed that it has specific provisions that address issues on industrial development within the grouping. These provisions are Part Two Article 3 and Part Four Article 21. As the region progresses in implementing the Protocol, the aforementioned Articles could be utilised to facilitate industrial development. Theoretical debates upon which these Articles could be used to facilitate industrial development rest on the infant industry argument, the static and dynamic effects of economic integration. Limitations of the theoretical frameworks will be explored and how this could impact on industrial development initiatives by the grouping.
The economic rationale for agricultural regeneration and rural infrastructure investment in South AfricaSource: Journal of Development Perspectives 3, pp 74 –105 (2007)More Less
This paper quantifies the role of agriculture in the South African economy. This is done within the context of, inter alia, food security, agriculture's contribution to gross domestic product (GDP), economic linkages and multipliers with respect to the agricultural sector, agriculture's employment creation capacity and its external stabilization capacity. The rationale for rural infrastructure investment is then investigated. The quantification of the agricultural sector in relation to the total economy and that of agricultural and rural infrastructure investment, are investigated against the backdrop of declining government support, increasing production risks due to a variety of exogenous events, like climate change, and increasing dynamic trade impacts. In this paper, the authors offer both supporting arguments in terms of current economic policy and recommendations for more decisive policy measures for agricultural regeneration and rural infrastructure investment.
Source: Journal of Development Perspectives 3, pp 106 –115 (2007)More Less
The encouragement of Home Community-Based Care by non-profit organisations is a major policy response to the HIV and AIDS pandemic in South Africa. The purpose of this article is to present a model with six performance indicators for quality and two for costs and to test these against actual performance using data collected from 12 rural and urban organisations in 2004 and 2005. Each rural caregiver had many more beneficiaries than their urban counterparts but made fewer total visits. As a result, urban beneficiaries received, on average, 3.5 times more visits than their rural counterparts. Travelling time was the major determinant of these differences. The results suggest the need for different performance indicators and expectations for rural and urban NPOs.
Source: Journal of Development Perspectives 3, pp 116 –135 (2007)More Less
The paper explores the relationships between economic freedom on the one side and development aid and IMF credit as approximation for conditional aid on the other side. After a short review of current literature, the paper develops a simple panel regression model to evaluate the relationships. In contrast to previous research, our results allow the rejection of the hypothesis that IMF credit increases economic freedom and that development aid is not contributing to economic freedom. It could not be shown that countries can be pushed towards economic freedom by aid conditions. The paper discusses explanations of the empirical findings.