The disparities in the level of development between the richer and poorer regions of Yugoslavia are among the worst in Europe. The level of output per head of the population in 1964 in the poorest of the eight regions was less than one-fifth of its level in the richest, while in the group of the four least developed regions, comprising 40 percent of the country's land area and one-third of its population, it was only one-half of its level in the more developed group. The period 1953-and4 spans twelve years during which the promotion of the development of the backward regions has been a constitutional obligation of the Yugoslav government, and its active regional policy implemented through the uniquely Yugoslav system of decentralised planning. Following the repudiation, in the years 1950-52, of centralised directive planning on the Soviet model, the Yugoslav authorities instituted a system of economic management based on the decentralisation to the enterprise of responsibility for the organisation of current production, combined with the retention by the state organs of control over the "basic proportions of development", specifically, the level and sectoral distribution of investment and foreign trade. The control of investment was made effective through the strong centralisation in the accumulation of investment funds, from taxes on the enterprise, and their allocation in accordance with plan priorities. The authorities were thus able directly to channel a substantial volume of investment funds to the underdeveloped regions. Extensive government intervention in price formation, in addition to tax concessions and the payment of subsidies to enterprises in financial difficulties severely limited the application of profit and loss criteria to the operations of the enterprise. The system of decentralised planning thus provided a very favourable institutional framework for promoting investment and the expansion of output in the underdeveloped regions. Development policy for the backward regions, as for the country as a whole, passed through two main phases during these years. Industrialisation was consistently regarded as the centrepiece of development strategy, with the improvement of agriculture and the expansion of tertiary activities playing, for the most part, only a subsidiary role. Between 1953 and 1956 efforts were concentrated on the build-up of the "basic industries", notably the power industries and heavy metallurgy, a continuation of the policy begun under the First Five-Year Plan in the Stalinist years. From 1957, however, a new strategy was adopted, of "development on a broader front", giving much greater prominence to the expansion of manufacturing and consumer goods' industries. This reorientation gave rise to considerable dispersion in the development efforts in the backward regions, both among industrial sectors and into newly designated centres, in contrast to the narrow range of industries developed in the earlier phase and their concentration in the vicinity of the necessary raw materials. Within this broad pattern, however, the individual underdeveloped regions varied their own development strategies in accordance with their natural resources and other characteristics. In Bosnia- Hercegovenia, which contained a substantial part of Yugoslavia's reserves of coal, iron-ore and water-power, development proceeded rapidly in the earlier years with the expansion of the national priority sectors of coal, steel and electricity, but latterly the transition to a more diversified pattern of industrial development was effected only slowly. The concentration of these resource-based industries into the central parts of the region has left Bosnia-Hercegovenia itself, in spite of substantial local population migration, faced with the internal problem of disparities between its more and less developed areas. Montenegro, the smallest and most remote of the regions, separated from the rest of Yugoslavia by mountain barriers, had initially to devote major efforts and a large volume of investment to the provision of transport facilities before the expansion of production could be begun, and even in 1964 the facilities remained seriously deficient. Because of the region's small size (less than half a million inhabitants) its development strategy comprised only a few individual projects, although the level of investment there was much the highest in Yugoslavia. Macedonia, the most agricultural of the underdeveloped regions, adopted a policy of integrated agricultural and industrial development, the improvement of agriculture being complemented by the establishment of textile, leather and food-processing industries to process agricultural products for the national market. This pattern of development encouraged a high degree of urbanisation in the region, with the concentration of its industries into a number of relatively large centres, each serving its particular agricultural hinterland. For political reasons development efforts for Kosmet, much the poorest of the Yugoslav regions did not begin, on any scale, until after 1957, with the result that development there was scarcely begun. A two-pronged approach, comprising both heavy and light industry, was however being either adopted or planned. Coal, electricity and, eventually, chemical industries were being based on the region's extensive lignite deposits, while non-ferrous metallurgy and related chemicals were being expanded, to exploit local deposits of lead and zinc; complementary to these, the labour-intensive industries of textiles, footwear and food products were being promoted in order to create new industrial employment and thus begin to relieve the acute pressure of agricultural overpopulation. But, in spite of very high levels of investment in the underdeveloped regions, the disparities between the regional groups in the level of output per head tended to increase over the twelve years, as total output in the underdeveloped regions grew rather less rapidly, and population more rapidly, than in the more developed group. This occurred in spite of considerable emigration, most notably from Macedonia. Only in Montenegro, much the smallest of the regions, was a movement towards convergence with the more developed group achieved. The policy of industrialisation was itself successful, in that each of the underdeveloped regions recorded a rate of industrial expansion higher, sometimes substantially higher, than in the more developed group; but their tendency towards lower growth rates in the other economic sectors, combined with the handicap of an output structure in which industry occupied a lesser place more than offset (except in Montenegro) the successful growth of industrial production. The focussing of development efforts on industrial expansion, while in itself successful, was thus concentrated on too narrow a front to achieve a convergent movement in the growth of total output. The cost of the policy of development in the backward regions is difficult to appraise, with the artificial prices for certain items of capital equipment and the payment of subsidies in order to maintain production in unprofitable enterprises.

This thesis investigates the relationship between gender and institutions within the context of Nepal’s labor migration. Labor migration is an important issue for Nepal’s economy as nearly 10% of the population works abroad (Sijapati, 2012). However, only 10% of these migrants are women, creating a gender imbalance. One reason for the large disparity between the number of female migrants and male migrants is explained by legal restraints and institutional factors. A potentially more potent reason for the lack of female migrants working abroad can be credited to gender roles and cultural values in Nepali society (Thieme, 2005). This thesis analyzes institutions’ role in labor migration and the relationship between institutions and female migrants.

M.Com. (Economics) / This study attempts to critically evaluate some of the aspects of policy recommendations presently being made for economic development as a contribution to the debate on an optimal approach for the reconstruction and development of the South African economy. The new and, for South Africa, unknown democratic era, in which widely differing ideological approaches towards economic development converge, offers an unique opportunity for reconciliation within the democratic structures. With this in mind, the ideological framework in terms of economic theory provides an explanation as to the divergent views on economic development and the relief of poverty. The White Paper, on Reconstruction and Development, to some extent seem to reconcile the ideological differences found within the Government of National Unity. There do, nevertheless, remain differences that need to be highlighted, especially when considering the evolution of the ideological base of the African National Congress Alliance as the main partner in the Government of National Unity. The impact of changing circumstances since the Freedom Charter, the ANC's first major economic policy statement, seem to explain the shift in the Alliance's socialistic and labour related affinity in subsequent publications as well as the White Paper on Reconstruction and Development. With the ANC evolving into a government in waiting and with external V11l influences, especially the lessons from the international development experience and the policy fundamentals inherent to the Normative Economic Model, becoming stark realities, the shift towards a more pragmatic and market acknowledging approach, as expressed in the White Paper on Reconstruction and development, became more pronounced. When considering the White Paper as a management program for the development of the South African economy, a wide array of sometimes contradictory goals are found which further highlights the ideological base in favour of labour. This may be the result of a program that tends to be populist and attempting to satisfy needs over the full spectrum of society. However, the lessons from the international development experience were fully taken into account and the White Paper on Reconstruction and Development cannot be faulted for not incorporating all the ingredients of present day state-of-the-art development policy. Resources for, and management ofthe program poses the more serious problems. According to the Reconstruction and Development Program ofthe African National Congress, the government submits to a people driven development approach. Following the evaluation of the goals set to meet basic needs, two major problems arise, namely that the stated goals will probably be insufficient to satisfy the social backlog and will probably be unrealistic to achieve over as short a period as five years. The populist democracy that flows from the people driven process propagated by the Reconstruction and Development Program places certain constraints on the effective management of the reform process and as such may result in South Africa not achieving its potential rate of development. The inclusion of local an provincial government structures, civic organisations and others in the decision making process will enhance the credibility of policies but is slow in the development of policies and their implementation. The uncertainty surrounding the jurisdiction and competency of these new and democratised structures leads to the questioning of this process as far as the effective management of the development program is concerned. International experience has shown that a decisive and coherent economic team, visionary economic leadership and a strong political and judicial base to drive policy implementation are necessary ingredients for a development and reform program to succeed.

Foreign direct investment is a topic that currently ranks highly on the agenda of most countries, forming the basis of policy design and development on both a microeconomic and macroeconomic level. From a microeconomic perspective, business strategies are undergoing radical shifts in order to compete in an ever-competitive global climate. Businesses therefore need to diversify their operations across borders as this is essential for ensuring survival. Yet, the motivation and desire of business are not necessarily beneficial to the country, region or market that a particular business plans to enter. Some types of foreign direct investment are positive, enabling a useful and efficient flow of technology, ideas and capital and this, as highlighted in conventional literature, is the key determinant of underlining macroeconomic policy regarding foreign direct investment. Governments attempt to capture such flows. They design efficient policy tools to attract foreign investors into their regions, so that their countries may benefit from these flows in the form of job creation and receiving capital inflows from the induced investments and exports, which aid to offset balance of payment deficits. Countries may enjoy the positive spill-over of such investment that may help local business become more competitive within the international arena. Certain business interests may have strong negative effects such as abusing supplies of natural resources and the abundance of low-skilled labour that exists within developing countries, as few policies are in place to protect these often weaker economies. This may cause conflict between business and government, challenging policy makers to implement protective measures such as trade restrictions, capital market regulation and the development of organised labour policies which may seem only to encourage the flow of negative investment. The gains of such investment become ambiguous, cheering the antiglobalisation movements and discouraging the flows of foreign direct investment that may actually induce positive developments within the economies concerned. The battlefields of such fixed investment movements often establish themselves on emerging market territory, where economies are prone to both helpful and hostile attacks of foreign direct investment. The emerging economies are ever increasing in global importance on the international trade arenas. These countries, many with sound macroeconomic policy, often display rapid economic growth, developed markets and an abundant supply of cheap skilled and unskilled labour, consequently absorbing an ever-increasing share of foreign direct investment. However, the direction of foreign direct investment is difficult to determine, especially when using common constraints, such as economic, political, social and geographic factors. The focus of attention needs to be shifted to those people who are responsible for the decisions to invest. These decision-makers are not to be grouped into a singular globular mass of uniformity; neither should they be treated as a single variable in the equation attempting to explain fixed investment. They make decisions regarding foreign direct investment and are extremely complex beings, cognitively weighting certain factors that determine the decision to invest over other factors. This is an ever-changing process, and seldom will any two investors act in exactly the same way. Consequently, there is a need to explain the decision-making process of foreign direct investors in a model that is fluid, not static and that allows for the flexibility required for the survival of businesses within an ever-changing emerging market economy. This can only be explored by analysing the psychological and cognitive structure of the decisionmaking process that is not totally dependent on the macroeconomic or microeconomic forces present in policy design or company structure respectively. By understanding the process underlying decision-making, it is possible to construct a decision-making model applicable to the unique cognitive workings of the foreign investor.Clear-cut factors need to be identified which map decision-making prior to the act of investment. Therefore, the decision-making model should be constructed using an intentional bias. By using an intentional bias, the decision to act may not yet be consciously considered, but a need to act exists. If the decision-maker is presented by an opportunity, the intent may become the action. By highlighting decision-makers with a positive attitude towards an action, i.e. investment, it is possible to map the factors relevant in the decision-making process. This allows for the construction of a model mapping the intention to act, thereby creating a decision-making model. For the purpose of this thesis a survey was designed and presented to the key decisionmakers within established companies. They included senior business executives, company CEOs, managing directors, owners of businesses and others that play an executive decisionmaking role within their businesses. From these responses key factors were identified from which a behavioural model was constructed by using suitable statistical tools and constraints. This behavioural model is independent, yet influenced by factors such as economic freedom, political instability and corruption, labour market regulation and the existence of development zones within host countries. The identified factors that become relevant to the behavioural model of decision-making are attitude, level and extent of other related or competitive companies within the host country, risk type and ability to overcome such risk, the vision of the company and the social fulfilment experienced by the decision-makers. The necessity for a decision-making model regarding foreign direct investment in the emerging economies is one that cannot be underestimated. This model is designed to contribute towards the current literature on foreign direct investment, with the aim and intent of improving this body of knowledge and assisting towards streamlining policy formation.

This study estimates the size of the informal economy in South Africa, evaluates the macroeconomic implications of this, and then concludes with possible effects that all of this might have on policy. The research is conducted as a South African case study, and uses time-series analysis for the period 1966-2002. Recently there has been a revival of interest in the informal economies of a number of countries. The revival has been driven largely by an increase in the size of informal economies, in both absolute and relative terms. South Africa is no exception to this trend: more and more people are entering the informal economy. The rapid urbanization of the black population, the slow pace of economic growth, the decrease in the incidence of formal employment, the promotion of small-, medium- and microenterprises (SMMEs), as well, finally, as the so-called ‘informalization’ of formal businesses are all factors contributing to the recent growth in the South African informal economy. There is not much literature on the South African informal economy, and what there is tends to be narrow, specializing in particular aspects of the informal economy. Moreover, the subject is controversial: there seems to be little agreement on the definition and use of informal economy estimates in both economic analysis and policy-making. In response to this situation, therefore, the present study examines the problem of defining the informal economy and considers the reasons why people might prefer to operate in the informal economy rather than in the formal economy. By III examining the various definitions of the South African informal economy and by looking at the reasons why people are operating in it, it is possible to gain an understanding of the various approaches used in international literature on the subject to measure the economic contribution of informal economies. A critique of the different approaches suggests that the currency demand approach is an appropriate method for measuring the informal economy in a developing country such as South Africa. The results of the analysis indicate that while the size of the informal economy stood at an average of 9.5% of GDP for the period 1966-2002, the size of the informal economy during the period 1966-1993 decreased. After 1993, the size of the informal economy remained relatively constant. These estimates of size are then used to test the nature of the relationships between the informal and formal economies. It was found that the informal economy has effects in, and on, the formal economy. This finding suggests, ultimately, that an increase in the size of the informal economy will ultimately contribute to an increase in the growth of the economy as a whole. These findings are used in the present thesis in the formulation of policy recommendations regarding the regulatory and macroeconomic policies currently in place in South Africa. The recommendations cover many areas: variable bias, monetary policy, fiscal policy and taxation, capital markets, and employment policy. Areas for further research are also indicated. The study concludes that macroeconomic policy which largely ignores or neglects the informal economy in its modelling IV and planning increases the likelihood that such policy may be overly contractionary, or that it may have unintended consequences. As a consequence, the South African informal economy should be included in all macroeconomic models – whether monetary, fiscal, or development models. The due consideration of the informal economy takes on even further significance in the South African context: it consists largely of the formerly disadvantaged and vulnerable groups of society – the very people who have been given priority in the government’s broad medium-term macroeconomic policy (i.e. GEAR). The estimates presented in this study should therefore make a contribution to macroeconomic modelling and planning. / Prof. Elsabe Loots

A research report submitted to the Graduate School of Public and Development Management, University of the Witwatersrand, Johannesburg, in partial fulfillment of the requirements for the degree of Master of Management (in the field of Public and Development Management). / The purpose of this study was to assess the effect of international capital flows on economic growth and employment in Mozambique, a country that is heavily dependent on foreign assistance. The aggregate expenditure sector was employed to develop a model that is consistent with specific features of the Mozambican economy. Annual aggregate time series data from 1980 to 1996 period was primarily used to estimate of single equations which are components of the model, employing modem time series techniques. The sample size is rather small to generate anything other than tentative conclusions. Nevertheless, foreign capital flows appear to have had a far-reaching effect in fuelling economic growth in Mozambique for the period studied. The effects were largely dependent upon the magnitude of international capital flows. However, there was a significant lag between economic growth and employment generation. Due to high level of aggregation applied in the analysis, the impact of foreign resources at a sectoral impact was not captured. In particular a more desegregated analysis is required to discern the effect of intemational capital flaws on economic growth and employment. / Andrew Chakane 2018

October 2015 A research report submitted to the Faculty of Management, University of the Witwatersrand, in 25% fulfilment of the requirements for the degree of Masters in Management (in the field of Public and Development Management) / Over the last forty to fifty years the industry that supports international development cooperation, has become more complex in its pursuit of multifaceted development objectives. Studies suggest that history, politics and a power differential between aid recipients and the foreign aid workforce undermine the development policy process locally. This study explores local engagement on development policy in Malawi, between public officials/aid recipients and donor-agency practitioners/foreign aid workforce; and the role of the 2008 Paris Declaration (PD) on Aid Effectiveness in this engagement. The two significant findings are that, while there are some adverse effects of history, politics and power in engagement on development policy, there is also evidence of replicable outcomes that can bolster the policy process. Secondly, the democracy model in practice in Malawi is struggling to deliver development policy dividends. The study concludes that both the state and donor agencies working in Malawi should mutually leverage global commitments, domestically, and use them to negotiate an increase in development aid committed to improving the development processes, for greater national ownership. The study specifically recommends the adoption of deliberative democratic development processes. This nuanced approach may improve Malawi’s ability to yield development policy dividends

Research presented for the degree of Masters of Management in Public Policy to the Faculty of Commerce, Law and Management of the University of the Witwatersrand, School of Public and Development Management. March 2016 / The purpose of this study is to analyse the changing nature of South Africa’s Macroeconomic policy in the post-apartheid era for the period 1994-2010. The key focus of the study is to uncover the factors that are a direct cause or have contributed to the paradigm shifts in policy during the specified period; supplementary to this, the study will look at how the changing paradigms have contributed in ridding the South African economy of its apartheid legacy, characterised by the triple challenges of poverty, unemployment and inequality. This study has a strong qualitative approach, comprising a comprehensive document review process, as well as 8 in-depth interviews with relevant experts in the field. This is further complemented by a supplementary quantitative analysis of key socio-economic data and statistics. The findings are that the observed paradigm shifts in macroeconomic policy during the period under review are a result of a number of key factors, namely: the changing domestic political discourse; the global and domestic economic climate; and the influence of domestic institutional arrangements, all of which have a direct impact on the policy discourse. Despite these paradigm shifts, South Africa continues to be faced with the triple challenge of poverty, unemployment and inequality; macroeconomic policy in the democratic dispensation has failed to deliver the core aims of South Africa’s economic development strategy. With the failures of orthodox neo-liberal macroeconomic policy, and the apparent shortcomings of Keynesian influenced redistributive macroeconomic policy, the key question facing policy makers is what direction South Africa’s Macroeconomic paradigm should follow. The idea of the developmental state, and its success in building emerging economies in South East Asia, is considered a viable option for South Africa to achieve an inclusive growth path. / MT 2018

A dissertation submitted to the Faculty of Commerce, Law and Management, University of the Witwatersrand, Johannesburg, in fulfilment of the Requirements for the Degree of Doctor of Philosophy 19 August 2015 / This thesis focusses on the impact of Foreign Direct Investment (FDI) on economic performance in selected African countries over the period 1980-2012. The thesis is divided into five chapters and three of them are empirical. Chapter 1 is the introduction. Chapters 2, 3 and 4 are empirical chapters examining the impact of FDI on various indicators of economic performance. Chapter 5 concludes by giving policy recommendations. In chapter 1 we provide a background, motivation, objectives, hypothesis to be tested, gaps in the literature, contributions of the study and the main findings. Chapter 2 examines the link between FDI and domestic investment and the role of host country factors namely financial development, institutional development and trade openness. We use the ordinary least squares, random effects, fixed effects and the system GMM methodologies on a panel of 48 African countries over the period 1980 to 2012. The results show that FDI has a crowding out effect on domestic investment and that improved institutions and trade openness do mitigate the substitutionary effect of FDI on domestic investment. This implies a need to come up with policies to improve local conditions by strengthening institutional quality and enhancing trade openness. Chapter 3 investigates the impact of FDI on productivity growth and the role of relative backwardness (the technology gap) on a panel of 45 African countries over the period 1980-2012. We use two measures of relative backwardness namely: the distance from technological frontier and the income gap. We apply the fixed effects, random effects and system GMM method to account for the issues of endogeneity. The results show a general insignificant effect of FDI on TFP growth. This suggests that FDI has a limited effect on productivity growth. The analysis of the advantage of relative backwardness does not support the convergence theory of Findlay (1978) and Wang and Blomstrom (1992). The large technology gaps in African countries hinder their ability to absorb foreign technologies from advanced countries. Chapter 4 analyses the long run dynamic relationship between FDI, exports, imports and profit outflows in 47 African countries over the period 1980-2012 by means of panel cointegration techniques. The results from the panel cointegration tests show that a long run relationship exists between the variables. Our findings provide evidence on the adverse long run effects of FDI on the current account in African economies. In particular, the results show that, FDI inflows lead to a decrease in exports and an increase in both imports and profit remittances. These findings confirm that indeed profit outflows by multinational companies are one of the main factors driving current account deficits in African countries. Chapter 5 is the conclusion. We provide a key summary of the key issues covered, the main findings, the key contributions of the study and the policy recommendations. We also suggest areas for further research in the future. / MT2017

A research report submitted in partial fulfilment of the requirements for the Master’s Degree in Development Theory and Policy, March 2017 / It has been the objective of the Zimbabwean government since 2009 to arrest deindustrialisation, embody reindustrialisation as the essence for development and structural transformation from production of primary goods to manufacturing of value added goods for the domestic and export market. The President of Zimbabwe traversed that “industrialization is the essence of development, industrial production creates job opportunities at higher skill levels, facilitates more useful links across the agricultural, mining and service sectors, between rural and urban economies, and across consumer, intermediate and capital goods industries” (Ministry of Industry and Commerce, 2012: v). As such one of the economic components, through which re-industrialisation is envisioned is the value-addition of cotton through supporting downstream industries in textiles and clothing. This objective has been seen gradually through all of its policies post crisis or since dollarization. This is illustrated for example in the in the Short Term Emergency Recovery Programme (STERP) of 2009 were textiles and ginning are identified under strategically targeted industries. In the Industrial Development Policy of 2012 -2016, it is also stated that “whilst in Zimbabwe it might appear that the industrial value chain is complete; in sectors such as cotton, iron and steel and sugar, the level of transformation beyond primary processing still needs to be enhanced” [and so] “the Government has identified four (4) priority sectors as the pillars and engine for this IDP 2012–2016, namely Agri-business (Food and beverages, Clothing and Textiles, Leather & Footwear and Wood and Furniture)….”, (Ministry of Industry and Commerce, 2012: 11,17). With this background in mind, the broader problem this research is trying to solve is how the government through its objectives has sort to address de-industrialisation and re-industrialize through support of value addition and upgrading processes. Therefore, my research will focus on the evolution of cotton to textiles value chain and investigate how much value-addition has been employed to cotton products locally and for exports but only up to the point of textiles; what market conditions, forces and industry initiatives/strategies influenced the attempts to increase value added, and how successful or not these have been ; what policies both broader industrial and macroeconomic and sector-specific policies are in place or have been implemented to support the growth of cotton to textiles value added or shifting into higher value added production and what the impact of the cotton to textile industry has been towards industrial development. / XL2018