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.

Doctoral thesis submitted in fulfilment of the requirements for the award of Doctor of Philosophy The Graduate School of Business Administration, Wits Business School University of the Witwatersrand June, 2017 / Financial sector development has been projected to play a very significant role in economic growth through the provision of improved quality and quantity of financial services. While financial development–growth nexus has received much attention in the literature, important research gaps still remain largely in areas such as financial–real sector interaction in growth trajectory, threshold effects, finance–volatility–shocks linkages; and legal system–information asymmetry nexus. Knowledge of these relationships is extremely crucial in regulating the financial sector and conducting prudent macroeconomic policy more generally. Using sub–Saharan Africa (SSA) as a case, this thesis consists of four self–contained empirical essays each investigating a critical gap relying on several advanced econometric techniques. In the first essay, we examine the effect on economic growth when financial sector growth outstrips the solvency needs of the real sector. In this context, we find that more than two–thirds of our sampled countries in SSA have experienced at least one episode of excessive credit growth relative to real sector needs. While financial development supports economic growth, the extent to which finance helps growth depends crucially on the simultaneous growth of real and financial sectors. The elasticity of growth to changes in either size of the real sector or financial sector is higher under balanced sectoral growth. We also show that rapid and unbridled credit growth comes at a huge cost to economic growth with consequences stemming from financing of risky and unsustainable investments coupled with superfluous consumption fuelling inflation. However, the pass–through excess finance–economic growth effect via the investment channel is stronger. A good understanding of the optimal level of credit consistent with long run economic growth is needed as existence of an undisturbed equilibrated growth of real and financial sectors is a necessary condition for a smooth economic growth. By introducing a previously missing link, our findings resolve the seemingly conflicting and highly contested results in the finance–growth literature. The second essay investigates whether the impact of finance on growth is conditioned on the initial levels of countries‟ income per capita, human capital and financial development. While financial development is positively and significantly associated with economic growth, our evidence suggests that, in almost all the threshold variables, below a certain estimated threshold, financial sector development is positively and insignificantly related to growth. In other words, below the threshold level of per capita income, human capital and the level of finance, economic growth is largely insensitive to financial development while significantly influencing economic activity for countries above the thresholds. The main conclusion drawn is that higher level of finance drives long run growth and so is the overall level of income and human capital. In the third essay, we disaggregate volatility into its various components in examining the effect of financial development on volatility as well as channels through which finance affects these volatility components. What emerged is that while financial development affects business cycle volatility in a non–linear fashion, its impact on long run fluctuation is imaginary. More specifically, well–developed financial sectors dampen volatility. The findings also revealed that while monetary shocks have large magnifying effect on volatility, their effect in the short run is minuscule. The reverse, however, holds for real shocks. The channels of manifestation shows that financial development dampens (magnifies) the effect of real shocks (monetary shocks) on the components of volatility with the dampening effects consistently larger only in the short run. A key implication emanating from this essay is that, strengthening financial sector supervision and cross–border oversight may be very crucial in examining the right levels of finance and price stability necessary to falter economic fluctuations. In the final essay, the study re–interrogates the role of law in financial development in the light of evolving legal systems in SSA as well as how legal origin explain cross–country differences in economic volatility through its effect on information asymmetry. Our evidence suggests that legal origin significantly explains cross–country differences in financial development and economic volatility. More importantly, relative to civil law, English common law countries and those in Southern Africa have higher financial sector development both in terms of financial activity and banking efficiency on the back of lower volatility. While private credit bureau positively (negatively) affects financial development (economic volatility) with economically large impact for English legal legacy countries, the latter effect is contingent on the form of legal origin suggesting that, the establishment of information sharing offices per se may be insufficient in taming growth vagaries. The effectiveness of law is exceedingly relevant. At the policy front, maintaining more agile and effective legal systems that are responsive to changing financial landscape while forcing economic agents to improve information infrastructure is healthy for both financial sector development and macroeconomic stability. / MT2017

At face value, foreign aid is generally extended either to contain crises situations or promote development. In Africa, it appears that foreign aid has failed on both counts. One crucial question being asked by experts is, why has there been so little development in sub-Saharan Africa despite so much aid? Indeed, even the World Bank has admitted grudgingly that assistance programs have been either ineffectual or had very small development impact on recipient countries. This study seeks to examine foreign aid effectiveness and management. Focusing on the nature of the relationships between donors and recipients, the study argues that to foster economic development in Africa, a need exists for a transformation in aid relations away from fragmented donor-driven projects and programs to a predictable long-term support to African owned programs. The work addresses these challenges by reviewing current debates and analysis of new forms, instruments, promises, and direction of development cooperation. Donor discourses, which are on ownership, partnership, less conditionalities, and more empowerment, are not always followed in practice. In fact, the objective reality is that foreign aid donors usually target an assortment of aid instruments at diverse objectives. That notwithstanding, foreign aid (generally) can only be effective in achieving the objectives set by donors when it is planned, structured, and implemented in partnership with aid recipients. Clearly, the nature of the relationships between donors and recipients has a critical influence on the effectiveness of development aid. So far, the current aid experience is that the relationship between African governments and their aid donors is characterized by a vast inequality. As such, this study takes the position that there is no viable alternative to Africans taking effective charge of their destiny and deliberately creating conditions that are essential for effecting desirable change in the region's fortunes. It also takes the position that Africa's development partners such as the international financial institutions should actively seek to create and nurture the space needed by Africans for the realization of their developmental goals / Thesis (M.A.)-University of Natal, Pietermaritzburg, 2003.

At face value, foreign aid is generally extended either to contain crises situations or promote development. In Africa, it appears that foreign aid has failed on both counts. One crucial question being asked by experts is, why has there been so little development in sub-Saharan Africa despite so much aid? Indeed, even the World Bank has admitted grudgingly that assistance programs have been either ineffectual or had very small development impact on recipient countries. This study seeks to examine foreign aid effectiveness and management. Focusing on the nature of the relationships between donors and recipients, the study argues that to foster economic development in Africa, a need exists for a transformation in aid relations away from fragmented donor-driven projects and programs to a predictable long-term support to African owned programs. The work addresses these challenges by reviewing current debates and analysis of new forms, instruments, promises, and direction of development cooperation. Donor discourses, which are on ownership, partnership, less conditionalities, and more empowerment, are not always followed in practice. In fact, the objective reality is that foreign aid donors usually target an assortment of aid instruments at diverse objectives. That notwithstanding, foreign aid (generally) can only be effective in achieving the objectives set by donors when it is planned, structured, and implemented in partnership with aid recipients. Clearly, the nature of the relationships between donors and recipients has a critical influence on the effectiveness of development aid. So far, the current aid experience is that the relationship between African governments and their aid donors is characterized by a vast inequality. As such, this study takes the position that there is no viable alternative to Africans taking effective charge of their destiny and deliberately creating conditions that are essential for effecting desirable change in the region's fortunes. It also takes the position that Africa's development partners such as the international financial institutions should actively seek to create and nurture the space needed by Africans for the realization of their developmental goals. / Thesis (M.A.)-University of Natal, Pietermaritzburg, 2003.

Utilising the Grounded Theory Research Method, this study identified a range of open, axial and selective codes, through a literature review, which resulted in the formulation of a proposed theory of how war economies are formed and maintained. Based on the theoretical proposition of the proposed theory, a policy framework for dismantling such war economies was also developed and presented. The proposed theory of war economies essentially argues that war economies are formed in post-colonial sub-Saharan Africa because of the existence of an artificial state. The existence of an artificial state is ascribed to the emerging legacies of colonial state formation processes, which created failed state entities which are unable to produce public goods for all its citizens because of its inability to maintain a monopoly of violence whilst maintain full administrative control over its territory. This inability results in an increase in the vulnerability of state and non-state actors. In response to these vulnerabilities, both state and non-state actors established a range of parallel political, economic and military structures. These structures in turn made use of both network and resource capacities to create an environment where politics are economised and conflict is commercialised, in order to mitigate the impacts of state failure and the inability to produce public goods. The result of the creation of an environment where politics are economised and conflict is commercialised, is the creation of incentives, structures and processes to ensure that conflict and associated conditions of instability are sustained in order to ensure primitive accumulation of wealth and resources. Based on the core theoretical proposition of the proposed theory, the study also presents a broad policy framework for dismantling war economies. In broad terms the framework proposes an integrated state-building process, based on a range of policy mechanisms aimed at maintaining a monopoly over violence, increasing administrative control, dismantling conflict networks and ensuring effective and efficient resource management.

Thesis (MBA)--Stellenbosch University, 2006. / ENGLISH ABSTRACT: The lack of development and growth are characteristics of the Sub-Sahara Africa (SSA) region . Globally there are huge concerns about this and there are various initiatives to address the under development and poverty in this region. The most important of these initiatives, is the United Nations' Millennium Goals. In focusing on SSA, various challenges can be highlighted that impact negatively on the business (especially the banking) environment. These challenges are spread across the whole spectrum of spheres of influences, namely from the political to the economical environment on the one side to the social and technological environment on the other side. The region is in desperate need of help with regard to their development. These challenges are unfortunately huge obstacles for prospective investors. Many of the multi national (including South African) banks have identified the region as an area where they can reap high returns on their investments, whilst maintaining and even increasing their presence. In most cases the South African banks are focusing on expanding their involvement in the region but they must realise that they will not only have to compete with the local banks but also with the bigger role players in global banking. Unfortunately the existing multi-national banks have already captured the corporate market. New entrance and expansions will have to target the SMME and large retail markets that carry more risk and will be more challenging to service due to the lack of infrastructure in especially the rural areas. Many opportunities exist for South African banks in the SSA region. The dominant features of these opportunities are the leveraging off their South African operations and building on their experience in handling change and re-engineering of the banking sector. Existing product- and service offerings can be adjusted and rolled out to the region. Creativity will play an important role in assisting in the development of the region. Partnerships with local businesses and the community can assist to mobilize the lower end of the market and capture huge un-banked population. This will generate huge transaction volumes that will spread the cost and contributes to acceptable returns on investments. The involvement of the South African banks will have implications for all the stakeholders in the region. The most important aspect is finding a balance between the needs of the different stakeholders. The benefits stemming from this will contribute towards the region's escape from the deadlock of poverty. Although there are many challenges, the opportunities of extending into the undeveloped market must be seen as outweighing it. The key to success lies in the approach of the banks toward the SSA region and their ability to be seen as partners in developing the region. / AFRIKAANSE OPSOMMING: Die gebrek aan ontwikkeling en groei is kenmerke van die Sub-Sahara Afrika (SSA) streek. Wereldwyd is daar groot besorgdheid hieroor en verskeie inisiatiewe is geloods om die onderontwikkeling en armoede aan te spreek. Die heel belangrikste hiervan is die Verenigte Nasies se Millennium Doelwitte. Die fokus op die SSA streek lig heelwat negatiewe uitdagings vir die besighede (veral die bankwese) omgewing uit. Die uitdagings strek oor die volle spektrum van die ekonomiese aktiwiteite, naamlik vanaf die politieke tot die ekonomiese omgewing aan die een kant tot by die sosiale en tegnologiese gebiede aan die ander kant. Die streek smeek vir hulp en ondersteuning in die ontwikkeling daarvan. Die voorgenoemde uitdagings is groot hindernisse vir voornemende beleggers. Baie van die multi-nasionale (insluitende die Suid Afrikaanse) banke het die streek geidentifiseer as 'n gebied waar hulle hoe opbrengste kan verdien op hul investering en waar hul teenwoordigheid behou en selfs vergroot kan word. Die meeste Suid- Afikaanse banke wil hul teenwoordigheid vergroot, maar hulle moet besef dat hulle nie net teen die plaaslike banke moet kompeteer nie, maar ook met die bekende internasionale banke. Die internasionale banke is ongelukkig reeds goed ingegrawe in die korporatiewe mark. Nuwe toetredes en uitbreidings sal op die kleinsake ondernemings en groot klein handel mark moet fokus. Die mark segmente het hoer risiko profiele en is ook uitdagend om te diens as gevolg van die gebrek aan infrastruktuur in veral die plattelandse streke. Baie geleenthede vir die Suid Afrikaanse banke bestaan in die streek. Die belangrikste hiervan is die geleentheid om te steun op hul Suid Afrikaanse aktiwiteite, asook om te steun op hul ervaring ten opsigte van hantering van verandering en die herontwerp van die prosesse in bankwese. Bestaande produkte en dienste kan aangepas en uitgerol word in die streek. Kreatiwiteit sal egter 'n groot rol speel in die ontwikkeling van die streek. Vennootskappe met plaaslike besighede en gemeenskappe sal help om die onderste deel van die mark te mobiliseer en die groot getalle kliente wat nog nie van bankdienste gebruik maak nie te bereik. Dit sal bydra tot groot transaksie volumes wat die koste per transaksie sal verminder en aanvaarbare opbrengs op belegging sal gee. Die betrokkenheid van die Suid-Alrikaanse banke sal 'n invloed he op alle belange groepe in die streek. Die belangrikste sleutel tot sukses is om 'n balans te vind tussen die behoeftes van die verskillende belange groepe. Die voordele wat hieruit spruit sal die streek help om van die wurggreep van armoede te ontsnap. Alhoewel die onderontwikkelde markte baie uitdagings het, word dit oortref deur die geleenthede wat dit bied. Die sleutel tot sukses is die aanslag van die banke en hul vermoe om gesien te word as vennote in die ontwikkeling van die streek.

Dissertation (PhD)--University of Stellenbosch, 2007. / ENGLISH ABSTRACT: Commodity issues have assumed renewed importance in debates about the attainment of the United Nation’s Millennium Development Goals for Sub-Saharan Africa and objectives of the New Partnership for Africa’s Development. For instance thirty-four countries in Africa depend on up to three commodities for more than half of their foreign exchange earnings. Despite the importance of commodity markets to economic development on the continent commodity-related research has not attracted the needed attention. The study considered eighteen primary commodities exported by most countries in Sub-Saharan Africa. The commodities were drawn from metals, agricultural raw materials, food and energy sub-groups. This dissertation presents results of research work underlying six stand-alone essays focusing on the relationship between commodities and various aspects of economic performance in Sub-Saharan Africa. Whilst three of the six essays dwelt on issues affecting commodities of interest to most African countries the others considered particular commodity markets in a selected number of countries. First the relationship between commodity markets and economic growth is studied. The second essay examined trends and volatility in Sub-Saharan Africa’s key commodity prices over the past four decades. Role of commodity prices in macroeconomic policy in South Africa is also investigated using a new research approach. The fourth essay estimated the supply response of a number of tradable and non-tradable agricultural commodities in Ghana. In the fifth essay a range of volatility forecasting models were evaluated using eighteen commodity spot prices. The last essay examined the interaction between changes in commodity prices, money supply, inflation and the real exchange rate in Ghana, Nigeria and South Africa. The findings of the study indicate that a negative relationship exist between extent of primary commodity dependence and economic growth. The study also revealed that volatility levels have not changed for nine out of the eighteen commodities studied however, changes were observed in the other nine. Another key finding of the study was that there is merit in using gold and metal prices as variables in forming monetary policy in South Africa. It was also observed that random walk and autoregressive models consistently outperform more complex models in forecasting volatility in commodity spot prices. Results of the supply response study suggest that even though producers usually respond to price incentives, structural features of domestic agricultural commodity markets in Ghana may have hindered the conversion of improved incentives to higher agricultural growth. Results of the last paper indicate that in Ghana commodity price increases impact money supply growth and inflation whilst in Nigeria the effects of crude oil price increases produces higher inflation and appreciation of the real exchange. In the case of South Africa effects of gold export booms were transmitted through changes in money supply, inflation and real appreciation of the domestic currency. The results of the study have implications for both decision makers in business and government. / AFRIKAANSE OPSOMMING: Kommoditeits-aangeleenthede het vernuwe belangrikheid in die debat rakende die vervulling van die Verenigde Nasises se Millennium Onwikkelings Doelwitte vir Sub-Sahara Afrika en die doelwitte van die Nuwe Vennootskap vir Afrika se Ontwikkeling aangeneem. By voorbeeld, vier-en-dertig Afrika lande is afhanklik van tussen een en drie kommoditeite vir meer as die helte van hul buitelandse valuta inkomste. Ten spyte van die belangrikheid van kommoditeits-markte vir ekonomiese ontwikkeling op die kontinent het kommoditeits-verwante navorsing nog nie die nodige aandag gekry nie. Die studie het agtien primêre uitvoer-kommoditeite wat deur die meeste Sub-Sahara Afrika lande uitgevoer word oorweeg. Die kommoditeite is afkomstig van metale, onverwerkte landbou produkte, voedsel en energie sub-groepe. Hierdie tesis bied die resultate van navorsing wat gedoen is op ses afsonderlike opstelle wat fokus op die verhouding tussen kommoditeite en verskeie aspekte wat die ekonomiese vertoning in Sub-Sahara Afrika beïnvloed. Drie van die ses opstelle fokus op faktore wat kommoditeite van belang vir meeste Afrika lande affekteer, terwyl die ander geselekteerde lande se unieke kommoditeits-markte oorweeg word. Die eerste opstel bestudeer die verhouding tussen kommoditeits-markte en ekonomiese groei. Die tweede opstel oorweeg tendense en volitaliteit in Sub-Sahara Afrika se belangrikste kommoditeits-pryse oor die afgelope vier dekades. Die rol van kommoditeits-pryse in Suid-Afrika se makro-ekonomiese beleid word ook ondersoek met behulp van 'n nuwe navorsings benadering. Die vierde opstel maak 'n skatting van Ghana se aanbod van verskeie verhandelbare en nie-verhandelbare landbou kommoditeite. In die vyfde opstel word 'n reeks volitaliteitsvoorspellings-modelle ge-evalueer deur agtien lokopryse te gebruik. Die laaste opstel bestudeer die interaksie tussen veranderinge in kommoditeits-pryse, geld aanbod, inflasie en die reële wisselkoers in Ghana, Nigerië en Suid-Afrika. Bevindinge van die studie dui daarop dat 'n negatiewe verhouding tussen die graad van primêre kommoditeits-afhanklikheid en ekonomiese groei voorkom. Die studie het ook bevind dat volitaliteits–vlakke vir nege van die agtien kommoditeite wat bestudeer is nie verander het nie, terwyl veranderinge in die ander nege waargeneem is. 'n Kritiese bevinding was dat daar meriete steek in die gebruik van goud en ander metal pryse as veranderlikes in die formulering van die monetêre beleid in Suid-Afrika. Dit is ook waargeneem dat “random walk” en autoregressiewe modelle deurlopend beter vaar in die voorspelling volitaliteit in kommoditeits lokopryse as komplekse modelle. Resultate van die aanbod respons studie dui daarop dat alhoewel produseerders gewoontlik reageer op prys insentiewe, struktule eienskappe van die binnelandse landbou kommoditeits-mark in Ghana moontlik die effek van verbeterde insentiewe op landbou groei kon beperk het. Resultate van die laaste opstel dui daarop dat kommoditeits-prys verhogings in Ghana die geld-aanbod groei en inflasie beinvloed, terwyl in Nigerië die effekte van ru-olie prys verhogings lei tot hoër inflasie en appresiasie van die reële wisselkoers. In die geval van Suid-Afrika word die effekte van die skielike groot toenames in goud-uitvoere die duidelikste waargeneem deur veranderinge in die geld-aanbod, inflasie en die reële appresiasie van die binnelandse geld-eenheid. Die resultate van die studie het implikasies vir beide besluitnemers in besigheide en die regering.

Thesis (PhD)--Stellenbosch University, 2014. / ENGLISH ABSTRACT: This study analyses the implications of financial liberalisation programme for international remittance inflows with regard to the macroeconomic determinants and also the implications of remittances for economic growth and development in sub-Saharan Africa (SSA) between 1980 and 2009. The methodological approach to the analytical framework of this study is based on the hypothesis that financial liberalisation causes higher inflows of international migrant remittances through official channels to augment the scarce domestic financial resources, and to stimulate economic growth for sustainable development in capital-constrained SSA. Prior to the macroeconometric analyses, the study addressed definitional and measurement issues on international remittances and financial liberalisation, and provided an overview of the macroeconomic policy environment in post-independent SSA, as well as the magnitude and the trends in remittances received by SSA relative to other developing economies. First, the system Generalised Method of Moment (GMM) for dynamic panel-data estimation was used to determine the macroeconomic factors responsible for the changing trends in remittance inflows. Then an inquiry into the impact and causal effects of financial liberalisation on international remittance inflows in SSA following the static panel-data modelling and panel Granger non-causality estimation procedures was undertaken. Following this, the system GMM was further employed to examine the impact of remittances on long-run economic growth, and the effects of remittance inflows on economic development in SSA. Essentially, the economic development indicators considered in this study are poverty, income inequality, labour market outcomes, human capital development, and financial development. It is revealed in this study that the most appropriate measure of international migrant remittances is the sum of “workers‟ remittances” and “compensation of employees” excluding “migrant transfers”. Using remittances per capita, which the study found to be the best proxy for remittances per migrant rather than the commonly used remittances as a percentage of GDP, it is shown that SSA is the least recipient of official migrant remittances in the world, with no SSA country receiving remittances worth US$1 per day. This study further establishes that the macroeconomic factors that influence remittance inflows in SSA have varying rather than static impact in response to changing macroeconomic policy environment. Also, macroeconomic factors have different influences on attracting remittances from abroad in relation to migrant duration status – permanent or temporary. Although financial liberalisation Granger-causes international remittances, not sufficient evidence exists that a significant proportion of the official remittances received in SSA passes through the banking system. Besides, the extent to which financial liberalisation can Granger-cause and/or positively impact on international remittance inflows in SSA is directly and ultimately conditional to the macroeconomic fundamentals of the remittance-receiving SSA country. It was also found out that generally, international migrant remittances propel higher economic growth in SSA, with greater impact on SSA countries with relatively higher growth rates. International remittance inflows have significant positive developmental impact, with no sufficient evidence of moral hazard effects. Overall, international remittances contribute to reducing poverty and unemployment but not necessarily income inequality and, at worse, remittances have no significant impact on labour productivity and participation in SSA. Higher remittance inflows promote human welfare, educational attainment, life expectancy, and financial development in SSA. With the exception of educational attainment, the developmental effects of remittances vary across countries, depending upon the level of economic development.

Study project (MBA)--University of Stellenbosch, 2002. / ENGLISH ABSTRACT: The African Growth and Opportunity Act was signed into law in May 2000 to allow qualifying SSA countries to export eligible products duty free to the US. The act is a non-reciprocal "agreement" designed solely by the US, with the objective of promoting increased trade and investment between the US and SSA. The US insist that trade will lead to development on the African continent if SSA countries liberalise their markets and become integrated into the global economy. The theory behind trade liberalisation is that it promotes allocative efficiency by exploiting comparative advantage. I however argue that trade liberalisation can realise its potential only if the US start dismantling the protectionist barriers that have been described in this report. The AGOA does reduce tariff barriers for a number of African products. However new non-tariff barriers have been erected which are less transparent, but just as effective as tariff barriers. The report documents the significance of existing trade barriers that seek to protect the US industries from harm, and evaluates the problems that are created in spite of the intentions of the AGOA. A number of specific issues that will be significant for the future outcomes of the Act were also dealt with. These included: the anti-dumping steel duties, US Farm Bill, NEPAD and the textiles and apparel debate. The problems found with the AGOA included: • Protectionism that is sector specific, involving the cases of the antidumping steel duties and the Farm Bill. • The unfavourable terms of trade associated with the Act, caused by the non-negotiable, non-reciprocal and temporary nature of the AGOA. • The eligibility conditions of the Act, which serve to bind African countries to the rules of the World Trade Organisation and exclude some countries on the African continent from obtaining benefits. • Internal reform problems within the SSA countries involving government departments, infrastructure and the macroeconomic environment. The evidence over the short time since it was enacted reveals that the SSA countries will not gain much from the extended trade benefits of the AGOA, unless their capacity to produce and supply the US market is enhanced. Furthermore, most of the AGOA benefits have gone to oil exporting countries and SA, who is the only non-oil country benefiting from a number of sectors at present. The Act has failed to increase trade flows from eligible countries to the US, as most of the SSA countries are not at the economic development to take advantage of the preferences that have been provided under the AGOA. Furthermore the liberalisation of many of the African economies has not been reciprocated by the US. The actions of many interest groups in the US indicate that they are "yes" to free trade but "not" at the expense of jobs and profits. This is evident, as the AGOA provides no exceptions to any of the US retaliatory measures and the fact that interest groups in the US influence many of the product decisions when domestic market share is threatened. One of the positive outcomes of the AGOA is the joint US Africa Trade and Economic Co-operation Forum that will provide future avenues for beneficial US-Africa trade relations. / AFRIKAANSE OPSOMMING: geen opsomming

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.