This dissertation focuses on the local defence-related industry as a beneficiary under the Department of Defence’s defence industrial participation (DIP) programme, managed by Armscor. Attention is given to the main construct of the development theory and how the DIP process in South Africa compares with the international reciprocal trade phenomena commonly referred to as ‘countertrade’. The author does an in-depth analysis of the Government’s policy regarding the defence-related industry (DRI) that forms part of the local defence industrial base (DIB), as well as the DIP policy, procedures and practices and their subsequent bearing on the local defence industry. The study is further substantiated with a comprehensive review of the consequences and outcomes resulting from the largest defence package deal (SDP), signed in December 1999, between the Department of Defence and several major foreign original equipment manufacturers (OEMs) and subsequently benchmarked against academic discourse on the subjects of international countertrade and development theories.

Thesis (MPhil)--Stellenbosch University, 2003. / ENGLISH ABSTRACT: The defence industry was established for the purpose of providing the then South African Defence Force (SADF) with armaments before. The SADF was there to serve the government of the day. Since then, the South African National Defence Force (SANDF) has been established to fulfil the same as the SADF, but is much more credible and representative. Thus there has been both continuity and renewal. The idea of public policy presupposes that there is a sphere that is not private or purely individual, but is held in common. The public comprises that dimension of human activity that is regarded as requiring government or social regulation or intervention or at least common action. This related to the defence-related industries too, which require government intervention in ensuring that small and medium enterprises (SMEs) get involved in the defence industry in general. Public policy is really about defining what counts as public,who provides, who pays, and whom to pay. The modem meaning of 'policy' is that of a course of action or plan, a set of political purposes - as opposed to 'administration'. Policy is seen as rational, a manifestation of considered judgement. A policy is an attempt to define and structure a rational basis for action or inaction. Policy involves deliberate behaviour to pursue certain objectives. The distinction between action and inaction properly emphasises that policies can initiate change or resist change. Policy is intended to affect all or selected points of the external and internal environment of the political system. Policy consists of a series of actions and decisions. The policy needed by the defence-related industry in one that will allow the inflow of entrepreneurs with education to help them learn from the experienced engineers within the industry. The individual drive and interest will be the driving force for success as defined and understood by the free market economy without unnecessary government interference. The development of SMEs in the defence-related industry is part of the renewal of the defence industry. The manufacturing can be left to small firms requiring less capital and sophisticated machines and processes. / AFRIKAANSE OPSOMMING: Die verdedigingsnywerheid is tot stand gebring om die destydse Suid-AfrikaanseWeermag (SAW) van krygstuig te voorsien. Die SAWwas daar om die regering van die dag te dien. Sedert die demokratiese verkiesing in 1994 is dit nou die Suid-Afrikaanse Nasionale Weermag (SANW), wat, alhoewel dit dieselfde funksie as die SAW vervul, meer geloofwaardig en meer verteenwoordigend is. Daar was dus kontinuïteit sowel as vernuwing. Die konsep van openbare beleid veronderstel 'n sfeer of terrein van lewe wat nie privaat of alleenlik individueel is nie, maar eerder gemeenskaplik Die openbare terrein is daardie dimensie van menslike aktiwiteit waarvoor staats- of sosiale regulering of intervensie nodig IS, of ten minste gemeenskaplike aksie. Dit het ook betrekking op die verdedigingsnywerheid, waar staatsintervensienodig is om te verseker dat klein en medium ondernemings by die verdedigingsnywerheidin die algemeen betrokke raak. Die doel met openbare beleid is eintlik om te bepaal wat openbaar is, wie verskaf, wie betaal, en wie betaal moet word. Die konsep van ''beleidbepaling'' is om bewustelik 'n keuse te maak tussen twee hoofalternatiewe vir loodsgemeenskappe. Die moderne betekenis van die begrip ''beleid'' behels 'n rigting of aksie of plan, 'n stel politiese oogmerke - in teenstelling met "administrasie". Beleid word gesien as rasioneel, 'n manifestasie van weloorwoë oordeel. Dit is byvoorbeeld ondenkbaar dat politici sou toegee dat hulle nie 'n beleid insake X het nie. Beleid is 'n poging om 'n rasionele grondslag vir aksie te bepaal en te struktureer. Namate 'n staat sy wetgewingsprosedures verander, so behels die funksies van ''beleid'' die skep van 'n aanneemlike storie, wat die skrywer se doel verseker en waarin beleid 'n rolspeler is. Die betekenis het betekenis. Die term ''beleid'' word gebruik om aan te toon dat daar 'n behoefte is om uit te klaar watter sosiale doelstellings gedien word deur die toedien (ook self-toedien) van wetenskaplike energie. Met ander woorde, die klem val spesifiek op die beleidwetenskap van demokrasie, waar realisering van menswaardigheid, in teorie en in praktyk, die uiteindelike doelwit is.