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This paper highlights ten key features of the Developmental State (DS) growth model by contrasting trends in economic indicators and institutions between China (and East Asia more generally) and South Africa. In light of the recent (and perhaps politically opportunistic) adoption of DS language into the South African policy discourse,…

This paper argues that perspectives characterizing the trajectory of China's economic reforms as “reversing course” are misleading by not recognizing the current stage of Chinese industrial development and the policy initiatives adopted to steer the country towards widely-stated national objectives. As such, the paper aims to contribute to the growing…

Information on the impact of immigration on a host country's trade with particular reference to the African continent and the SADC region remains scant, if indeed it is ever available. This study seeks to fill this gap with an analysis of data. More specifically, the main objective of this study is…

Trade patterns change as a result of the international specialisation of production and the increased integration of world markets. This is especially evident in small open economies such as the countries that make up the SADC region. In 2000, the share of SADC industrial production that was exported stood at 12%;…

The heads of states of the Common Markets for East and Southern Africa (COMESA), the East Africa Community (EAC) and the Southern African Development Community (SADC) met in Uganda in October 2008 to discuss broader objectives of the three regional trading blocs. This was later referred to as the Tripartite…

Most economics curricula deal with macroeconomic tools for studying the economy as a whole and microeconomic tools for studying the behaviour of individual agents or markets. However, practical public and private sector economic analysts often need an economy-wide focus that combines the macroeconomics of the economy as a whole with…

This paper deals with informality and its transition to modernity. The transit to formalization will enable those working in the informal economy to improve their chances of being included, become less vulnerable, and ensure a better performance of their activities. But this also requires recognition of the fact that formality…

Engineering News

Climate change is increasingly recognised as one of the defining issues of the 21st century, drawing all elements of society towards the promotion of a prosperous, low carbon future. Even in times of economic recession, climate change has not fallen off the radar, with many major economies rather viewing 'green' led investment as an engine for economic recovery.

South Africa has become increasingly involved in addressing climate change issues, from our involvement in international climate negotiations, the modelling of potential mitigation scenarios under the Long Term Mitigation Scenarios (LTMS) process, and the current development of a national Climate Change White Paper. A significant amount of work has also been done to consider the direct impacts of climate change on the South African environment, including physical impacts related to higher temperatures, sea level rise, increased risk of wild fire and concerns over future water availability.

Despite these efforts, less emphasis has been placed on the indirect impacts of climate change, including how industry could be affected by shifts in consumer preferences, how the evolving carbon regulation environment in South Africa might affect industry, and how business and the economy as a whole should respond to these challenges.

To address this gap, research is currently underway that considers the indirect effects that climate change could have on South Africa's economy, ranging from impacts on the tourism sector, aviation and food exports, through to commercial opportunities in low carbon technologies and the promotion of alternative carbon markets. The project is being led by Camco, an international consulting firm specialising in climate change solutions, in partnership with Trade and Industrial Policy and Strategies (TIPS) and the ComMark Trust, with support provided by the British High Commission.

As part of the project, a stakeholder workshop including representatives from the private sector, national and local government, non-governmental organisations and the donor community is to take place in Sandton in mid-August, in order to discuss and debate the economic risks and opportunities posed by climate change for South Africa. Key questions to be discussed at the multi-stakeholder workshop include:

• What commercial risks and opportunities do companies face from climate change?
• How can we address these issues?
• How will 'air miles' and the demand for low carbon goods impact South African manufacturing and exports?
• Is the tourism sector adequately prepared for pressures to promote 'local tourism' within industrialised nations?
• What opportunities are presented for trade in environmental services by climate change, including through land use improvements and carbon sequestration?
• How can industry respond to a carbon tax regime in South Africa, and are there alternatives?
• How can we fast-track activities that combat climate change and promote poverty alleviation and socio-economic development?

The research underway is premised on the understanding that climate change is not just an environmental issue, but could have significant implications for trade, investment and industry competitiveness. South Africa is a carbon intensive economy, and is therefore exposed to a number of potential climate change related liabilities. Nevertheless, risk is often the precursor of opportunity, and considerable scope exists for the South African economy to shift these potential liabilities into market enablers, as the LTMS and other studies have begun to explore.

The research will help to take the climate debate in South Africa forward, identifying economic opportunities presented by climate change and exploring synergies with national priorities relating to job creation, enterprise development and poverty alleviation. The notion of 'green jobs' has come increasingly to the fore in recent years, and highlights that a number of national efforts to address climate change could promote economic growth as well as support environmental protection.
Across the globe, companies are exploring opportunities in low carbon development in a bid to differentiate themselves and maintain market share. Effectively positioned, the South African economy could weather any severe 'climatic' storms, whilst maximising on commercial opportunities and new markets.

For media enquiries please contact:

Alex McNamara Camco South Africa
Tel: (0)11 253 3400 Cell: (0)79 699 3284 Email: alex.mcnamara@camcoglobal.com
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Kate Philip is a development strategist. She has extensive experience in the development sector as a practitioner and in policy development, focused on issues of economic marginalisation, inequality, employment and enterprise development. From within TIPS, this has included providing support to GTAC in National Treasury on regional economic development strategies, to the Economies of Regions Learning Network, and to the Integrated Wild Coast Development Programme. She has provided advisory support to the South African Presidency on issues of economic marginalisation, and played a central role in the design and development of South Africa’s Community Work Programme. Through the International Labour…

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This paper involved the determination and analysis of trade potential for the South African pulp and paper industry using a gravity model approach. The pulp and paper sector was identified by the Department of Trade and Industry amongst four other lead sectors to enhance economic growth through the Accelerated and Shared Growth…

Professor Medhi Shafaeddin Experience of South-South Regionalism: The Case of East and South East Asia   About Professor Medhi Shafaeddin Professor Mehdi Shafaeddin is a development economist and holds a D.Phil. from Oxford University. He is currently an international consultant affiliated to the Institute of Economic Research, University of Neuchâtel,…