This thesis attempts to evaluate the role of the World Bank in Sub-Saharan Africa's development. It argues that the World Bank has stepped beyond the boundaries of a typical lending institution by linking its aid to political reform. The study argues that in this capacity the Bank has contributed to the halting democratization process currently underway in Africa. The economic effects of the World Bank's Structural Adjustment Programmes have been less successful. As yet, the programmes have not produced the expected results and there is no evidence of long-term, sustainable economic recovery in Sub-Saharan Africa. These programmes are, however, long-term strategies and it may therefore be too premature to reach a final conclusion. They may also have been affected negatively by unfavourable political environments. This study, noting the negative effects of the international terms of trade and prices for African exports, concludes that although economic recovery in Sub-Saharan Africa will be facilitated by domestic political and economic policy reform, there is also a need for reform of the international economic order. The World Bank has correctly identified the need for domestic improvement, but it has a tendency to disregard the negative consequences of the existing structure of the international economy.

Thesis (MDF)--Stellenbosch University, 2014. / ENGLISH ABSTRACT: Immigrant remittances have received increasing attention over the last couple of decades, due to the substantial financial inflows into developing countries, as their size and impact on the economies have experienced significant growth over a period of time. This study has investigated the relationship between financial development, specifically for the banking sector, and remittances for eight Sub-Saharan African (SSA) countries by utilising panel estimation techniques from 1993-2011. In this particular study, the investigation was focused on the association between remittances and the aggregate level of bank deposits (M2) and domestic credit to the private sector that represented financial development. For M2, the results showed that remittances are negatively correlated with money supply and it was not statistically significant for this equation. However, in terms of domestic credit to the private sector, a positive and significant determinant was found for remittances and financial development in these eight Sub-Saharan countries. It is recommended that policymakers should develop and implement sustainable policies to facilitate uninterrupted flow of remittances, strengthen financial institutions and sound macro-economic policies in order to attract more remittances through the banking sector.

The capability approach’s primary point of departure from mainstream economics may be stated simply: it perceives incomes and commodities value predominantly as instruments or means to other ends. In contrast to mainstream economics, the approach places individual freedom at the centre of its attention. Therefore, income is merely one of numerous variables that influence deprivation. The dissertation aligns itself with the capability approach to development in its conclusion that developments’ primary target ought to go beyond a study of the level of per capita incomes as it has more significant moral implication of diminished lives, agonised existences and a large percentage of premature preventable deaths. Therefore, the dissertation advocates a fundamental shift in the measures that economists utilise in their measurement of poverty. Accordingly, the dissertation suggests that the manner in which economists intellectualise the relationship between poverty and the lives that people lead requires alteration. The dissertation provides evidence, using regression analysis, that the democratic frameworks that are in place in Sub-Saharan Africa are failing to provide the negative freedoms that serve as the environment in which individual’s pursue their own conception of well-being. However, the dissertation acknowledges the constitutive and instrumental importance of democracy in the process of development. Therefore, the dissertation argues that it is the shape of democracy that has led to these results in Sub-Saharan Africa. As a repercussion, democracy remains an important ingredient in the development process. Instead of embracing the view that political freedom and, in particular, democracies failure to assist in human development is evidence of a flaw in the capability approach. The dissertation perceives the failure as an opportunity to re-evaluate the nature of democracies in Sub-Saharan Africa. Therefore, there is scope for policy makers to conceptualise and implement policies that will be able to harness the inherent strengths of democracy.

The impact of the recent global financial crisis on the global economy has highlighted the level of integration of economies and the potential spillover effects as a result thereof. The implications are that the negative effects of the crisis can quickly spread to other economies through numerous transmission mechanisms. The response of developing or emerging economies to these unpredictable exogenous shocks becomes a topical issue. The concepts of economic vulnerability to and resilience against adverse exogenous shocks for emerging economies have since taken centre stage in many economic forums. Policy makers for emerging economies have come to the realisation that the increased economic vulnerability and a lack of economic resilience in their economies can erode the hard-fought-for gains in economic growth over the past decade and potentially harm their prospects as attractive destinations for foreign direct investment (FDI). This research analysed the resilience and vulnerability of emerging economies against adverse shocks using the sub-Saharan African (SSA) region as a case. The research used previous literature on emerging economies’ vulnerability and resilience to formulate four hypotheses around the major overarching themes of vulnerability and resilience. Two hypotheses looked at two functions of vulnerability, i.e. trade openness and financial integration, and two functions of resilience, i.e. international reserves accumulation and economic concentration. The findings of this research study were that SSA economies were vulnerable and not resilient against adverse exogenous shocks, and that few economies in the SSA region were prepared to successfully manoeuvre in an economic crisis. The structure of these economies inherently rendered these economies vulnerable. However, these economic structures also allowed the SSA region to achieve the high economic growth experienced during the past decade. The output of the methodology utilised in this research study resulted in a model that can be used to reduce the likelihood of an SSA economy being severely affected by an adverse economic shock. / Dissertation (MBA)--University of Pretoria, 2013. / ccgibs2014 / Gordon Institute of Business Science (GIBS) / MBA / Unrestricted

Since 1929, the world economy has not encountered any financial crisis as severe as the case of the Great Depression, until 2007 when the fall of stock markets and the collapse of large financial institutions in the United States resulted in a worldwide recession. According to an IMF report, and as a result of the direct impact of the crisis, advanced economies such as those of the United States and Europe are suffering from a systemic banking crisis with economic output expected to contract by over 1 ¾ % in 2009. (Bourdin 2009:2) Although the crisis erupted in the United States, the effects quickly spread to countries worldwide. However, its effects are said to be more devastating for the poorest regions in the world including Sub-Saharan Africa. During the last few years, prior to the crisis, many Sub-Saharan African countries had enjoyed a growth rate of over 5%. This was partly as a result of sound economic policies and increased external support in the form of debt relief and higher inflows from economically powerful countries in the West. However, with the current financial crisis, wealthy nations have been forced to concentrate on sustaining their own economy. As a result, amongst changes like tighter immigration policies, skyrocketing oil prices and food prices, foreign aid is being withdrawn. (ibid 2009:3) According to foreign media reports, donor governments and the G8 are no longer as committed to aid as before the crisis. This research paper examines the evolution of aid to Africa in view of various contexts through a broad historical economic and political economy overview, and finally corroborates these observations with a discourse analysis of a sample of BBC online articles. The research project thus investigates in this last section, the BBC’s representation of poverty and aid in Sub-Saharan Africa before and during the current global economic crisis.

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This study focuses on economic development and political turmoil in post-independence Sub-Saharan Africa. There has been a resurgence of interest in the region following the end of the Cold War. In 1997 U.S. president Bill Clinton took a 12-day tour of the region. In 1999 the U.S. Congress (106th Congress) passed the Growth and Opportunity Act and the Hope for Africa Act, designed to encourage political stability and economic development in the region. Although most Sub-Saharan African countries attained independence from colonial rule in the 1960s, more than 30 years of self-government have brought little economic development and political stability to the region. This study attempts to analyze, theoretically and empirically, the relationship among economic development, social dislocation and political turmoil. Social dislocation, as defined in this study, means "urbanization," and it is used as an exogenous variable to model and test the hypothesized causal relationship between economic development and political turmoil. This study employs pooled cross-sectional time-series and seemingly unrelated regression analyses, as well as Granger-causality, to examine the hypothesized relationships and causality in 24 Sub-Saharan African countries from 1971 to 1995. The results confirm the classical economic development theory's argument that an increase in economic development leads to a decrease in political turmoil. The result of the pooled analysis is confirmed by a SUR analysis on the strength of the relationship at the individual country level in 21 of the 24 countries. However, an indirect positive relationship exist between economic development and political turmoil through social dislocation. At lag periods 1 and 2, I found a causal ordering leading from economic development to political turmoil, indicating a causal relationship from economic development to social dislocation and from social dislocation to political turmoil.

This research examines the collective action and financial dimensions of rural waterpoint sustainability in sub-Saharan Africa. Four interlinking papers empirically evaluate the nature and drivers of financial risks, and how they in turn impact the operational performance of community water supplies. The research is grounded in conceptual and theoretical frameworks pertaining to collective action and common-pool resource management, in particular Ostrom's social-ecological systems framework (Ostrom, 2007), Musgrave & Musgrave's economic good framework (Musgrave & Musgrave, 1973), and Marwell & Oliver's critical mass theory (Marwell & Oliver, 1993). The first paper analyses data extracted from national waterpoint inventories in Liberia, Sierra Leone, and Uganda. The remaining three papers draw on primary data from rural Kenya comprising 229 years' worth of water committee financial records, a census of 571 waterpoints, and a survey of 3,361 households. These data were collected during extensive field work campaigns in Kwale, Kenya. Quantitative analyses were carried out by way of advanced statistical techniques, including logistic regression, linear mixed (repeated measure) models, and generalised estimating equations. Results suggest collection of user fees is a significant determinant of waterpoint sustainability, alongside other institutional, technical, geographical and environmental variables. However, monthly payment arrangements are beset by non-payment and late payment, particularly if rainfall levels are high, group size is large, households are far away, and water is aggressive and unpalatable. Although monthly contribution levels remain relatively stable above a collective payment rate of 60%, there is little evidence of self-sustaining growth beyond this point, and revenue collection is prone to collapse below this collective payment threshold. In comparison, pay-as-you-fetch fees are associated with increased revenue and improved operational performance, but result in a higher proportion of households opting for an unimproved water source. If the Sustainable Development Goal of universal access to safe water supplies is to be achieved in rural sub-Saharan Africa, strategies are needed to strengthen revenue collection systems and bolster payment incentives. External support and professionalised service delivery models present potential pathways to advance these goals. Policymakers may also need to introduce carefully designed subsidies, or promote self-supply approaches that realign lifecycle costs with users' willingness-to-pay.

The purpose of the study has been to assess the question of sustainability of economic growth and human development, particularly using sub-Saharan Africa in context. Sub-Saharan Africa is an interesting case study because, on the one hand, it has been mired in poverty and remains the least developed region in the world, and on the other, it has experienced a revival in economic growth since the mid-1990s. Economists tend to use the term economic development and economic growth interchangeably. However, questions have been raised about whether Africa’s latest growth episode is indeed ‘development’. Although there are many issues at stake, the key question, and the focus of this thesis, is whether sub-Saharan Africa’s revival is sustainable. The paper sets out the debate between the ‘World Bank view’ and the ‘alternative view’. The main debate lies around how genuine development should be achieved. Firstly, the ‘World Bank view’ claims that economic growth is necessary and sufficient condition to achieve development. Economic growth will be generated by ‘orthodox’ policies and this growth will automatically trickle-down and stimulate development. Secondly, the ‘alternative view’ argues that economic growth is necessary but it is not sufficient to stimulate sustainable development. Economic growth without ‘qualitative’ change is not ‘sustainable’. Indeed, human development shortfalls (as well as other, social, political and structural problems), if not addressed through appropriate policy interventions, can undermine economic growth. The ‘alternative view’ appears to be strongly supported by evidence from other developing regions such as Latin America and East Asia. The empirical study conducted in this thesis reinforces doubts about ‘sustainability’. Even though there are signs of convergence in some indicators; this is not the case for all indicators. More importantly the gap between sub-Saharan Africa and other developing regions remains very wide. Sub-Saharan Africa’s development path remains uncertain. The intention in this study is not to be conclusive that sub-Saharan Africa cannot achieve sustainable development. Rather the study attempts to identify potential hindrances to sub-Saharan Africa’s development and to provide a solid foundation for further research in the same direction.