As a developing country South Africa is faced with mammoth tasks of both creating employment/jobs that require less skill to be able to absorb millions of job-seekers who are less skilled, as well as putting its economy in proper footing, through investment in continuous labor skills and technological upgrading, so as to compete in the global market characterized by trade liberalization. Unfortunately the 20th century trade liberalization drive caught domestic industry off-guard. Domestic industry was found wanting and job losses tide was triggered. The labor-intensive clothing and textile industry was severely affected. The most vulnerable sections of the society (unskilled/semi-skilled and women laborers) were dealt a terrible blow. The government developed an industrial policy that contained sector-specific intervention measures to rescue the sector. Initially, the clothing and textile sector benefited from export promotion drive expedited through General Export Incentive Scheme and Duty Credit Certificate Scheme. Later on, the government introduced the Clothing and Textile Competitiveness Improvement Program which intended to build domestic production capacity of the sector and make the sector globally competitive. This research intended to conduct a critical analysis of the South African government industrial policy and its impact on the domestic clothing and textile sector from the period 1993 to 2010. On the one hand evidence on the ground indicates that General Export Incentive Scheme and Duty Credit Certificate Scheme failed to salvage the sector through building its competitiveness and strengthen its employment creation potential. On the other hand, while the Clothing and Textile Competitiveness Improvement Program’s positive contribution towards addressing crucial challenges facing the clothing and textile sector is acknowledged, the evidence on the ground also demonstrated that some crucial pitfalls need to be addressed to enable the sector to become globally competitive and to realize its employment potential. / Thesis (M.Dev.Studies)-University of KwaZulu-Natal, Durban, 2012.

This research examines the relationship between business, the state and society in South Africa -- particularly the Western Cape -- over the period from 1960 to 1990, viewed against the background of economic conditions in this region, South Africa and the world. Utilising a development history approach, it is based on an extensive study of primary and secondary documentation, supplemented by a panel of in-depth interviews and observation. This study finds that the relationship between business and apartheid incorporated both functional and dysfunctional elements, although over time the benefits diminished and the costs multiplied. The latter, Regulation Theory suggests, is true for any institutional order, but it could be argued that, under apartheid, the particularly fragile and contradictory nature of the institutional arrangement made inevitable crises more rapid and more pronounced. On the one hand, apartheid restricted the economic development of the country, as a result of a range of factors from skills shortages to the visible waste of resources on grand ideological projects and security; as suggested by Resource Curse Theory, minerals windfalls tend to encourage irresponsible behaviour by governments. On the other hand, certain businesses prospered, notably the Afrikaner business sector. All business benefited from the overall growth of the 1950s and 1960s, whilst niche players often did quite well even during the 1980s. Further, the South African businessmen, both English- and Afrikaans-speaking, were skilful in adapting to the difficult conditions brought about by apartheid, and in many cases they prospered. As highlighted by Business Systems Theory, embedded social ties and informal relations may help either support or compensate for formal regulatory pressures. Many of these general trends were particularly accentuated in the Western Cape. The fact that business protests against government policies were often more motivated by concerns as to future property rights and of social disorder, rather than human rights, does indeed raise serious moral issues. However, in helping encourage political reform, they may have made a positive contribution. This study is founded on three related strands of thinking within the political economy tradition, Resource Curse Theory, Regulation Theory and Business Systems Theory, with the emerging common ground between these three bodies of thought being highlighted. As suggested by Resource Curse Theory, non-mineral producing regions tend to be particularly adversely affected in mineral rich countries, and there is little doubt that the region bore all the costs of the collapse of the gold price in the 1980s, and lacked the deeper capital base of the now Gauteng region to cushion the shock. Whilst apartheid may, as we have seen, have served conservative sectors of agriculture and mining quite well for many years, it also involved large costs incurred through social engineering experiments and the increasing demands of the security establishment. Resource Curse Theory suggests that national economies become dangerously dependent on the vagaries of commodities markets, and that the process of institutional design and evolution is hampered by assumptions of easy money which may temporary resolve the negative consequences of any institutional shortcomings. The poor price of gold in much of the 1980s brought about a crisis in the system, and, there is little doubt that this contributed to the demise of the order. As suggested by Resource Curse Theory, the experience of the Western Cape, a region of the country poor in minerals, was often one of inefficient and wasteful state intervention, coupled with increasingly poor performance of non-mineral related industries. Indeed, the effects of the recession of the 1980s were most pronounced in non-mineral producing areas of the country, particularly in the Western Cape. Regulation Theory highlights that no set of institutions and practices is ever totally coherent and functional, but at specific times may work to promote both certain types of economic activity and overall growth. It is wrong to suggest that because an order only works for some players at specific times it is simply dysfunctional or does not work properly at all. However, over time, internal contradictions mount and the benefits diminish. A particular feature of the apartheid order was that some of its core benefits at its height were particularly concentrated on some players (segments of Afrikaner commerce and industry, mining and agriculture), whilst the costs were shared across a wider range of players, with a disproportionate burden being borne by the black majority. A further feature was that the costs were often indirect and spread over many years if the benefits were sometimes immediate: this would include the persistent dysfunctionality of much of the South African education system and the criminal ecosystem that was nurtured through sanctions busting. Internal contradictions and spreading dysfunctionality rarely leads to a conscious and coherent period of institutional redesign, but rather an incoherent, experimental and contested process, such as characterized late apartheid reforms, and, indeed, the post February-1990 negotiation process. Finally, again at a theoretical level, as Business Systems Theory highlights, it is important to take account of the formal and informal ties interlinking firms in different sectors in the region, and firms and government, and the extent to which regions within a particular country may follow very distinct developmental trajectories. The benefits and the costs of the system diffused unevenly in the region, giving many players both a stake in the existing order, and an interest in some or other type of reform.

The recent surge in foreign capital inflows into developing countries has generated interest among researchers wanting to analyse the major determinants of Foreign Direct Investments in the motor industry (FDIsm). This dissertation investigates the determinants of FDI in the motor industry in South Africa. The underpinning theoretical literature in this study is the Micro-level theory of FDI and the Eclectic theory as well as empirical literature from several authors. The study used quarterly time series data, which covers the period 1994q1- 2008q4. FDIs are modeled as the function of economic growth, interest rates, exchange rate, education and the openness of the country. The variables in the model are tested for stationarity. Cointegration analysis was also used to test for long run relationships between the variables. The trace and the maximum eigenvalue tests suggest that there are at least two cointegration relationships, an error correction modelling technique is used to establish the determinants of foreign direct investment. The error correction model was estimated which provided both long run and short run parameter estimates. The results show that economic growth, education and the openness of the country are positively related to foreign direct investment in the motor industry. Interest rates and exchange rates negatively affect foreign direct investment in the motor industry in South Africa. The results of this study are also supported by the impulse response and variance decomposition tests. The policy recommendation that emanate from this study is that efforts should be made to boost the level of economic growth in order to enhance and attract more foreign investors. It is therefore important for the government to purse policies that will encourage economic growth.

Thesis (MPhil)--Stellenbosch University, 2003. / ENGLISH ABSTRACT: This case study examines the implications of globalisation for business-government relations in South Africa since 1990. The study proposes that business, bolstered by globalisation, is increasingly gaining influence in the policy process of South Africa. The unfolding era of neo-liberalism has ushered in an enormous surge in the power of capital and a decline in the organization and influence of labour. This surge in relative power has allowed the South African business community, to impose its own discipline on government and to narrow the sphere of public decisions. Fear ofloss of competitiveness, in attracting capital, both domestic and international, has forced government to make their policies increasingly capital-friendly rather than responding to popular will or broad social interest. The study establishes the features of globalisation and South Africa's position within this process through an analysis of the relationship between the ANC and business that developed in South Africa between 1990 and 1994, and later facilitated the ANC's acceptance of a neo-liberal macroeconomic strategy in 1996. By analysing; firstly, the influence of business within the policy-making process since 1996, and secondly, the influence of business in the outcomes of government's black economic empowerment strategy, the study shows that business has attempted to optimise its position vis-a-vis the currents of globalisation. The study concludes that the working partnership between business and government, established in terms of the BEE strategy is based on the mutual need of each other, as both government and business face the brutal capriciousness of foreign investment, the major challenge posed by globalisation. The South African business community is however in a unique position with respect to South Africa's ongoing transformation. Within the post-apartheid context, and South Africa's reconfigured power equation between government and business, globalisation would appear to give corporate South Africa added leverage over its rival social partners in the tug-of-war over the terms of development. / AFRIKAANSE OPSOMMING: Hierdie gevalle-studie bestudeer die implikasies van globalisasie vir besigheidregering verhoudings in Suid-Afrika vanaf 1990. Die studie stel voor dat besigheid, aangehelp deur globalisasie, toenemend invloed verkry in die beleidsproses in Suid- Afrika. Die nuwe era van neo-liberalisme het 'n groot toevloei in die mag van kapitaal binne gesien en 'n afname in die organisasie en invloed van arbeid. Die beweging van relatiewe mag het die Suid-Afrikaanse besigheids-gemeenskap toegelaat om sy eie dissipline op die regering op te lê, en om die sfeer van openbare besluite te vernou. Die vrees van verlies van mededinging in die aantrekking van kapitaal, beide plaaslik en internasionaal, het die regering gedwing om hul beleide toenemend kapitaalvriendelik te maak, eerder as om te reageer op populêre wilskrag of breë sosiale belang. Die studie bevestig die kenmerke van globalisasie sowel as Suid-Afrika se posisie in hierdie proses. Dit word bepaal deur 'n analise van die verhouding tussen die ANC en ondernemings wat tussen 1990 en 1994 in Suid-Afrika ontwikkel het en later deur die ANC se aanvaarding van 'n neo-liberale makro-ekonomies strategie in 1996, gefasiliteer is. Deur eerste die invloed van besigheid binne die beleidmakings-proses vanaf 1996 te analiseer en tweedens te kyk na die invloed van besigheid in die uitkoms van die regering se swart ekonomiese bemagtings strategie (BEE) wys die studie dat besigheid probeer het om sy posisie deur die vloei van globalisasie te optimiseer. Die studie sluit af met die erkende vennootskap tussen besighede en die regering. Hierdie vernootskap is gevestig op die terme van die BEE strategie, wat gebasseer is op wedersydse belang, want beide die regering en besighede staar die brutale wispelturigheid van buitelandse belegging in die gesig. Hierdie groot uitdaging word deur globalisasie voortgebring. Die Suid-Afrikaanse besigheidsgemeentskap is in 'n unieke posisie, in die sin van Suid-Afrika se voortgaande transformasie. Binne die post-apartheid konteks en Suid-Afrika se hergestruktueerde mags verhouding tussen die regering en besighede, wil dit voorkom asof globalisasie die besigheids-sfeer van Suid-Afrika 'n toename van mag oor sy mededingende sosiale vennote te gee, in die konflik oor die terme van ontwikkeling.

Thesis (MPhil (School of Public Management and Planning))--Stellenbosch University, 2008. / This dissertation considers the coherence of the prescriptions contained within three recently released government frameworks: the National Framework for Sustainable Development, National Industrial Policy Framework and National Framework for Local Economic Development. A central assumption in this regard is that a level of coherence in policy prescriptions is necessary for effective and complementary implementation. Each of these frameworks has been developed in the context of renewed commitment from the South African state to halve unemployment and poverty by 2014. It is likely therefore that the frameworks will affect resource allocation with outcomes which will have impacts on South African society at large. Thus coherence is an important consideration. The analysis is undertaken against the background of: - a limited literature review on policy-making (within the broader policy studies field), - a discussion of the political economy of South Africa, and - a consideration of certain key debates within the global ‘development’ discourse. This includes particular reference to the concepts of ‘sustainable development’, ‘industrial development’ and ‘local economic development’ within that discourse. In addition, in order to gain some insight into the policy-making processes that were followed in the production of each of the frameworks, a limited number of key informant interviews was conducted. These interviews highlight certain elements and factors that impacted on the final policy products and the compromises that were reached around policy content. The body of the analysis - a comparative content analysis of the frameworks - is undertaken through a discussion of the manner in which the frameworks deal with four cross-cutting themes. These four cross-cutting themes are: eco-system considerations, social considerations, economic considerations and institutional/ governance considerations. This comparative reading of the frameworks exposes certain divergent policy prescriptions and confirms that disagreement exists within government itself on the country’s desired development path. The conclusion then discusses what is required to put in place a coherent policy making system in South Africa. It is proposed that the accommodation of policy coherence should not come at the expense of diversity and the expression of ‘profanity’ (contestation). The value of deliberative democracy, pluralism and complexity are highlighted in this regard. A number of recommendations are made.