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- Volume 7, Issue 4, 2004
South African Journal of Economic and Management Sciences - Volume 7, Issue 4, 2004
Volumes & issues
Volume 7, Issue 4, 2004
Author John F.E. OhiorhenuanSource: South African Journal of Economic and Management Sciences 7, pp 571 –580 (2004)More Less
Extracted from text ... Not by Bread Alone: Official Development Assistance in South Africa ________________________________________________________________ John F E Ohiorhenuan United Nations Development Programme Resident Representative and United Nations Resident Co-coordinator ________________________________________________________________ Valedictory Lecture University of Pretoria 23 September 2004 JEL O19 1 INTRODUCTION1 1.1 Tribute to the University of Pretoria Ladies and Gentlemen: Three years ago, I was the proud recipient of a letter from this University appointing me Honorary Professor in the Department of Economics. Being, in my earlier life, Professor at the University of Ibadan in my own country (and those who know Nigeria call Ibadan ..
Source: South African Journal of Economic and Management Sciences 7, pp 581 –588 (2004)More Less
This research sought to determine the level and nature of awareness of owners/managers of small enterprises in the fast moving consumer goods (FMCG) trade in the rural areas of the Limpopo Province, regarding the threat of HIV / AIDS to their businesses. The results indicated that information campaigns that target these businesses need to be intensified and that owners and managers of businesses should be trained to educate their employees and in developing and implementing business strategies to cope with the threat of HIV / AIDS. The government also needs to play a greater role in combating HIV / AIDS. The two major recommendations are that an appropriate information campaign specifically focused on the needs of this business sector be developed, as well as a model that could be used to manage HIV / AIDS.
Source: South African Journal of Economic and Management Sciences 7, pp 589 –600 (2004)More Less
The purpose of the empirical study is to make intelligible how entrepreneurs use networks, as well as describe the characteristics of these networks. A survey of 325 entrepreneurs from the KwaZulu-Natal province of South Africa was conducted. Results indicate that although South African entrepreneurs have more contacts in their networks, they spend less time in developing and maintaining contacts when compared to their international counterparts. Results show that South Africans have established their network ties for a long time, although most of the contacts were met through the entrepreneur's own effort rather than through referrals. Results also show that most of the network members are either friends or family members, which is different to international findings where most network members are business associates.
Source: South African Journal of Economic and Management Sciences 7, pp 601 –615 (2004)More Less
The competitiveness of the South African fresh apple export value chain can be improved if local farmers grow and market more new apple cultivars. An <I>ex ante</I> version of the Dixit-Pindyck investment model is used to assess how uncertainty and irreversibility associated with adopting the new Pink Lady cultivar rather than a traditional Golden Delicious cultivar will raise the hurdle rate required to trigger investment. Modified real hurdle rates reflecting the value of the option to delay investment estimated for both cultivars, are about double the real rate of five per cent that is often used in orthodox investment analyses. The Pink Lady investment seems to be relatively more profitable under the assumed conditions, but it also has a relatively greater variance in expected real annual net returns.
Author W. Duncan ReekieSource: South African Journal of Economic and Management Sciences 7, pp 616 –628 (2004)More Less
This paper draws on transactions cost analysis, price and auction theory, and competition authority findings in order to answer some questions on the structure and trading patterns of the South African forestry industry. Does a forestry firm linked contractually to supply an adjacent sawmill customer, form part of a bilateral monopoly? For competition policy what are the relevant markets each party sells into or buys from? Can either firm opportunistically hold-up the other in price revisions? Or, where contracts have no effective terminal date, can one party hold out against offers of contract buyout? If one party is a state agency are there rights of eminent domain? If the state agency is due to be privatised can the method of sale, for example a simultaneous ascending auction, resolve some of the dilemmas?
Source: South African Journal of Economic and Management Sciences 7, pp 629 –641 (2004)More Less
The phenomenon of events can hardly be described as a new one. The aim of this paper is to determine the economic benefits of three major cultural events in South Africa to the host community. Measuring the economic impact normally entails some estimation of the cash injection into a region by visitors and applying the relevant multiplier to arrive at a monetary estimate of the economic impact. But few regions or municipal areas have detailed economic data to construct a type of input-output model and derive a multiplier. The purpose of the methods used in this research were firstly to determine the estimated cash injection, secondly to estimate the size of leakages in the local economy and thirdly to derive an appropriate multiplier to estimate the economic impact of the event.
Author Glenn PedersonSource: South African Journal of Economic and Management Sciences 7, pp 643 –651 (2004)More Less
We identify three types of obstacles (missing institutions) that limit the process of financial deepening in rural financial markets. Each of these obstacles contributes to a continuing and common dilemma in developing countries - the lack of long-term finance. In Africa, as in most developing regions, there is need to develop a more consistent strategy for improving access to term finance in agriculture and rural areas. Although some examples of term financing can be found in African agriculture, the general lack of term financing in rural areas can be linked to the lack of general policy measures to enhance the environment for long-term financing, weak effective demand for rural and agricultural investment financing, and inadequate capacity of lenders to provide long-term finance to those clientele.
Source: South African Journal of Economic and Management Sciences 7, pp 652 –663 (2004)More Less
This paper examines the reform of water and irrigation management in Africa and compares it with similar reforms in Asia. Several things are evident from the review. First, Sub-Saharan Africa (SSA) is at an earlier stage of irrigation development and reform than Asia. Second, the articulated need for reform is much stronger in Asia than it is in SSA. Third, the productivity of small-scale irrigated farms is significantly lower in SSA compared to Asia. Thus any irrigation investment strategy in SSA should be different from Asia and focus on increasing small-farm productivity as well as small-scale irrigation projects. Finally, all direct government irrigation investments should be done jointly with decisions regarding the type of project management.
Author Terry RoeSource: South African Journal of Economic and Management Sciences 7, pp 664 –672 (2004)More Less
This paper focuses on the interdependence between international trade and institutional reform and suggests that the trade barriers erected by advanced countries on the agricultural exports of poor countries, in particular sub-Saharan agriculture serve as an impediment to economic growth and development. Drawing upon recent literature, the suggestion is that trade barriers inhibit institutional reform that is a major factor affecting economic growth. An empirical analysis of trade reform and economic growth shows that sub-Saharan economies can reciprocate potential gains from increased trade, which are larger when an integration with world markets induces institutional reform.
Author Jan A. GroenewaldSource: South African Journal of Economic and Management Sciences 7, pp 673 –682 (2004)More Less
Land reform has traditionally had two objectives: equity and productivity. Food insecurity and the need for agriculture to contribute to development emphasise the need to maintain and improve productivity while improving equitability. Land must foster production and agriculture must attract good human material. The following areas need to be considered in policy formulation and delivery: an effective institutional framework involving all the relevant public and private bodies; efficient fiscal planning is essential; potentially successful farmers must be selected and given special support, including extension and adult education; complementary services and infrastructure are needed; prioritisation of functions and land tenure reform is often necessary. In addition, international agricultural markets are very important for Africa. Wealthy nations should cease trade-distorting protection of their own farmers.
Author Rodney B.W. SmithSource: South African Journal of Economic and Management Sciences 7, pp 683 –692 (2004)More Less
Morbidity and mortality effects are introduced into a three sector, Ramsey-type model of economic growth. The model is calibrated to South African national accounts data and used to examine the potential impact of HIV / AIDS on economic growth. Simulation results suggest a 10 per cent decrease in the size of the effective labour force would lead to a 10 per cent decrease in long-run (steady state) GDP levels. Similarly, a 10 per cent decrease in the number of labourers would lead to an 11 per cent drop in long-run GDP.
Management of water extremes : a South African perspective on guidelines for policy and strategy developmentSource: South African Journal of Economic and Management Sciences 7, pp 693 –700 (2004)More Less
This presentation endeavours to present some guidelines for policy and strategy development with regard to the effective management of floods and droughts. Insights are gained from a literature study about the social, economic and political impacts of irrigation droughts, research done on the impacts and management of floods and water restrictions in South Africa as well as analysing the disaster management policy process in South Africa since 1994. The South African experience in terms of the management of water extremes, serves as basis for policy and strategy development and should benefit all involved - including other regions.