Session 7: Mining Communities and Migrancy
Session 7: Mining Communities and Migrancy
Aquaculture is the fastest growing food producing sector in the world, and although abalone contributes a relatively small proportion to aquaculture, it is one of the most highly prized seafood delicacies and most sought-after invertebrate. With high returns, farmed, fished or ranched abalone is able to generate foreign currency earnings for the aquaculture industry. In addition, farming uplifts communities along the coastal lines through generating higher levels of employment relative to other aquaculture activities. This is particularly so, in areas where fishing has diminished or has been totally discontinued. This policy brief looks at some of the factors for the industry to remain sustainable and economically viable.
Session 1A: Financial Development and Economic Growth
Session 1B: The Financial Crisis: Global and Regional Impacts
Session 2B: Inflation Dynamics
Session 3B: Measuring Social and Education Progress
Session 4B: the Global Crisis and Poverty Outcomes
Session 5A: Poverty and Household Welfare
Session 6A: Subjective Measures of Welfare
Session 6A: Subjective Measures of Welfare
Significant reforms of the services sector have been conducted in Uganda since 1987, motivated, in part, by the common notion that efficiency in the provision of services can deliver productivity growth in all sectors of the economy, which in turn stimulates overall economic growth and development. Given that the demand for services is often highly income elastic, as incomes grow, the demand for services also tends to expand accordingly. In another respect, services are widely used as intermediate inputs in various production activities, while the proportion of labor utilization in services production has tended to grow larger than that of capital. This paper applies a cross sectional panel estimation approach to discern the effects of services liberalization on downstream manufacturing productivity in Uganda. The results show that the average coefficient (average returns to scale of 0.6251 is less than constant while the respective coefficients of capital and labour are 0.1420 and 0.4831, respectively. The relative coefficient on the composite services reform index is positive, suggesting that services liberalization have had a marked positive impact on manufacturing and its productivity. When individual sector reform indices are accounted for in the regression, the results also confirm that when prudent reform measures were undertaken in different services sub sectors, they imparted strong and significant improvements in the productivity of firms across the board.
The South Africa that emerged from the 1994 democratic elections was one characterised by widespread poverty and inequality with an economy that was suffering the effects of macro-economic mismanagement. The root causes of these problems were seen to have originated from within the distorted policies of a highly centralised apartheid state. Under these circumstances, combined with the recognition that the new post-apartheid provincial and local spheres of government were still finding their feet, nascent national economic policy frameworks did little to diagnose spatially differentiated elements that might have added some geographic sensitivity to their programmes. This was true for how policies responded to spatial differentiation with areas of significant economic activity, as well as in relation to zones of exploited underdevelopment that had been at the core of the Bantustan system. However, the launch of the DTI's Spatial Development Initiatives (SDI) in 1997 heralded something of a shift in thinking towards some measure of recognition of the benefit of more spatially differentiated national policies and programmes. This brief paper seeks to explore the manner in which subsequent policies and programmes – emerging primarily from the Department of Trade and Industry – responded to matters of spatial differentiation. The paper finds a lack of any serious engagement in such policy frameworks and programmes and makes some suggestions as to why this might be problematic and how possible responses could be conceived of.
Colonialism and the deleterious impact of Structural Adjustment Programmes (SAPs) and now globalisation. Some parts of postcolonial Africa have attempted to set up ministries of economic development. Others have concentrated on attracting on Foreign Direct Investment (FDI) whilst some others have early on realised that the state and private capital should work hand in hand for development. But these different approaches have not always necessarily had the results that are necessary for development. To make matters more complicated, the continent have to struggle in a context where trade remains inequitable and finding a niche for themselves remains a difficult task. The main reason behind this failure is that development has been seen and interpreted within the narrow confines of economic growth. So rethinking economic growth at the continent level has become imperative and different stakeholders have an important role to play in the process.
In South Africa, during many decades, black people experienced a segregationist politics of a white minority. In 1994, the African National Congress (ANC) promised to create a better South Africa for all. Various ANC governments since then have adopted many economic programmes with the aim to halve by 2014 poverty and unemployment especially among the Historically Disadvantaged Individuals (PDI). However, recent studies in South Africa showed that inequality is widening despite the acceptable levels of economic growth. Reports showed that an overwhelming share of the change in the economy over time explained by high economic growth will continue to be without any improvement of the lives of marginalized ones unless there are changes in wealth distribution within the different layers of the South African population. Therefore, propoor economic growth must be developed in order to achieve the expected results of achieving the Millennium Development Goals (MDGs) in the South African context.
The paper seeks to develop some variables (investment in physical and human capital for example) needed to be included in the structure of South African development theories, which will assist development practitioners to determine the sources of growth and inequality, and ultimately develop strategies aiming at halving inequalities in the country.
South Africa's energy system has been, and still is, one of the key contributing factors to the social and economic development of the nation. By international standards, the South African economy is very energy-intensive, meaning that the country uses a large amount of energy for every rand of economic output. Historically world economic and political factors have had a profound effect on international oil prices which in turn have impacted heavily on individual nation's energy policies.
The focus of this research centres on issues concerning industrial energy use. The theoretical background to this research is well grounded in traditional trade theory, with trade patterns and the international competitiveness of countries explained as a function of both supply and demand side factors. The empirical work undertaken seeks to verify such explanations by determining the extent to which changes in the energy intensity of the South African manufacturing sector are due to changes in the types of goods produced domestically versus changes in the types of goods internationally traded.
The future direction of South African industrial policy is the subject of vigorous and healthy debate. The outcome is important for the country's economic development. This study is an attempt to contribute to these discussions through an overview of and some questions about the economic impacts of South Africa's post apartheid trade and industrial policy. It comprises two main parts. These parts can be read independently.
The first part reviews some key themes in international policy discussions and draws lessons from the recent experiences of other developing countries. The second and largest part of the report reviews South Africa's industrial policy over the past decade. While not comprehensive, the range of policies examined is sufficient to dismiss the claim made by some that South Africa has not had an industrial policy. In fact, whether by intention or not, South Africa has experimented with a very wide range of policies that have had a direct impact on the path and success of its industrial development.
This review raises some serious questions about the economic impacts of South Africa's industrial policies and of some future alternatives that are now under discussion. Despite the intensity of and broad interest in the debate, there appears to have been very little serious economic analysis of past policies or of future plans. Basic assumptions about the effectiveness of sector-specific interventions, for instance, appear to be poorly founded. Many policies have impacts that are at variance with stated intentions. International experience is drawn upon with great selectivity to support particular views about preferred policy directions.
The real questions facing South Africa are not whether South Africa does or should have an industrial policy. They are not about whether there should be more or less government intervention. The most important questions are pragmatic and not ideological they are about what works and does not work in South Africa and why.
The ASGISA document identifies several binding constraints preventing South Africa from achieving elevated levels of economic growth (Republic of South Africa, 2006). This paper takes an evolutionary perspective to consider whether the proposed policy interventions will address what is, arguably, a fundamental growth constraint: the current inability of the economic system to generate and support sufficient innovation. A substantial body of literature has accumulated in mainstream and evolutionary economics that indicate the salience of new combinations and ideas in fuelling the 'creative destruction' driving growth in market economies. However, several economists and policymakers still, incorrectly, understand innovation as referring only to high-technology research and development (Lundvall, 2007). Instead, innovation should be broadly conceptualised as referring to a process of identifying new combinations of production factors, product characteristics and functions and service features and also new forms of organising human activity. This implies that innovation is not an aspect of economic activity limited to 'high tech activities in laboratories. Rather, it is the very driving force of economic activity in all sectors and locations, from agriculture to engineering, from Gauteng to the Eastern Cape.
Based on this broader perspective of innovation, the paper employs the analytical concept of the 'national innovation system to analyse the identity of and relationships between various actors and institutions contributing to innovation. Based on this systemic analysis, the paper will identify problem areas inhibiting innovation in the South African economy. Thereafter, the paper considers whether the ASGISA policy proposals adequately address these 'binding constraints on innovation. One general finding in the paper concerns the importance of understanding innovation as a multi-scalar process, involving both the micro-activities and decisions of individual firms and larger institutional structures (Afuah, 2003). Such a complex system requires a coherent policy framework, where policymakers carefully consider the links between various policies. However, the paper shows that policymaking generally do not appear to follow such a systemic approach, with policies all too often developed in 'silos, resulting in frequently contradicting aims. While South Africa has adopted a policy framework for the national innovation system, other government policies are not consistent with the goal of that framework. By highlighting the problem of policy coherence, the paper contributes to further discussion on how to foster an effective national system of innovation that will make a significant contribution towards accelerated economic growth.
There are fundamental links between academic treatments of 'economic development' and of the popular policy discourse of 'competitiveness'. Productivity-focused analyses of competitiveness are inherently related to market-centric analyses of development that have economic growth as their objective. However, a consensus is emerging on the need for broader conceptions of economic progress, built in particular on recognition of: (i) the inconsistency of short-term, unconditional growth with environmental sustainability; and (ii) the complexity of relationships between income, other socio-economic factors and actual well-being. This paper argues that moving 'beyond income' has implications for competitiveness discourse. Understanding the drivers of productivity will remain a key concern, as income will remain a core component of economic development. However, there is a danger that the dominance of a narrow, marketfocused competitiveness discourse will continue to skew policy. The paper argues that the very popularity of the competitiveness concept among policy-makers in fact presents an opportunity: broader conceptualisations may facilitate the integration into policy of wider socio-economic concerns. Analysis of the contested competitiveness concept is combined with reflection on recent advances in the measurement of economic progress in proposing the necessary reconceptualisation of competitiveness for today's economic development challenges.
This paper considers the role of provincial governments in supporting small enterprise development. It is based on research conducted by the University of Cape Town's (UCT's) Centre of Innovation and Entrepreneurship (CIE). It was sponsored by TIPS (Trade and Industrial Policy Strategies), an independent non-profit research institution that is committed to assist government and civil society make informed policy choices, specifically in the areas of trade and industrial policy. In addition to drawing on ongoing research conducted by the CIE, including the Global Entrepreneurship Monitor (GEM) study, the paper summarises the results of discussions with small enterprise development policy-makers and stakeholders in three provinces ? Gauteng, KZN(KZN) and the Western Cape.
The paper begins by summarising key findings from the GEM study. GEM is an annual survey of entrepreneurial activity in over 30 countries worldwide. SA (SA) has participated in the study since 2001 and it now appears that the GEM measure of entrepreneurial activity provides a reasonably accurate measure of entrepreneurial activity, which does not vary significantly from year to year. Furthermore, SA's ranking relative to other countries is stable. One of the key findings from the GEM study in SA has been that the rate of entrepreneurial activity in SA is significantly lower than in other developing countries included in the study.
There are reasonably stable international and national patterns of entrepreneurial activity. An important predictor of whether or not an individual will be involved in starting or running an enterprise is whether or not they believe they have the skills to start a business. An important finding in SA is that we have a very low number of people who believe they are capable of starting a business. This appears to be related to problems in the education system in SA. A major theme in the GEM study in SA has therefore been education.
NOTE: This is an extract from the recent report of the Department of Economic Development, Western Cape Province. The first chapter sets the scene by outlining some of the challenges faced. Chapter 5 sets out the heart of the approach employed in identifying priority sectors and the broad policy approach followed. The report itself provides the details on the recommendations - but these are not explored here.