The thesis looks at the macroeconomic impact of foreign aid. It is specially concerned with aid's impact on the public sector of less developed countries < LDCs> . Since the overwhelming majority of aid is directed to the public sector of LDCs, one can only understand the broader macroeconomic impact of aid if one first understands its impact on this sector. To this end, the thesis econometrically estimates " fiscal response" models of aid. These models, in essence, attempt to shed light on public sector fiscal behaviour in the presence of aid inflows, being specially concerned with the way aid is used to finance various categories of expenditures. The underlaying concern is to extent to which aid is " fungible" -that is, whether it finances consumption expenditure and reductions in taxation revenue in LDCs. A number of alternative models are derived from a utility maximisation framework. These alternatives reflect different assumptions regarding the behaviour of LDC public sectors and relate to the endogeniety <as opposed to exogeniety> of aid, whether or not recurrent expenditure is financed from domestic borrowing and the determination of domestic borrowing. The original frameworks of earlier studies are extended in a number of ways, including the use of a public sector utility function which is fully consistent with expected maximising behaviour. Estimates of these models' parameters are obtained using both time-series and cross-section data, dating from the 1960s, for Bangladesh, India, Pakistan and the Philippines. Both structural and reduced-form equations are estimated. Results suggest that foreign aid <defined as all foreign inflows to the official sector> is indeed fungible, albeit at different levels. Moreover, the overall impact of aid <both loans and grants> on public sector investment, consumption, domestic borrowing and taxation varies between countries. Generally speaking, aid leads to increases in investment and consumption expenditure, but reduces taxation and domestic borrowing. Comparative analysis does, however, show that these results are highly sensitive to alternative behavioural assumptions and, therefore, model specification.

Very few empirical studies have attempted to study the impact of foreign direct investment and its interaction with human capital on poverty alleviation in developing countries. This paper attempts to fill this gap and contribute to the literature on FDI, human capital and poverty by not only disentangling the effects of FDI on poverty but also examining this effect in the presence of human capital.

The thesis focuses on theoretical and empirical analysis of economic growth and its implications for economic and social development of the Least Developed Countries (LDCs). The thesis proceeds from the assumption that economic growth is the necessary (but not sufficient) condition for economic, social and human development of societies and nations. In context of the LDCs, this assumption can be modified: it is assumed that it has been the low average rate of growth in the long-run that is associated with the complex social and economic issues of LDCs. The primary objective of the thesis is to verify this association within the LDCs, then to investigate factors that have been the major determinants for economic growth in (African) LDCs. From the perspective of theory the thesis is grounded in theories and models of economic growth that are crucial for researching factors of growth and its implications for development. The thesis focuses also on in-depth analysis of the LDCs both from the classification and statistical perspectives. The latter one is based on comparisons with selected groups of states within the World economy.

Thesis (MA)--Stellenbosch University, 2012. / ENGLISH ABSTRACT: This thesis is a contribution to the “China in Africa” debate. Chinese development assistance includes Foreign Direct Investment (FDI), and recent literature argues a significant proportion of FDI goes to the manufacturing sector in African countries. FDI allocated to industry have the potential to create employment and reduce poverty. This paper takes Zambia as a case, and looks at the textile and clothing industry as a sub- sector of the manufacturing sector. The textile and clothing industry is seen as especially appropriate for Zambia, as it; (i) adds value to natural resources; (ii) creates links to other sectors of the economy; (iii) require only basic skills; and (iv) is labour intensive. Based on primary and secondary data, this paper seeks to understand how Chinese FDI in the Zambian textile and clothing industry impact economic development, measured by; (i) formal employment creation; (ii) technology and skill transfer; (iii) state revenue; and lastly (iv) market creation of the products. Through looking at Zambian national plans and institutions, the cotton-textile-garment value chain and the organisation of Chinese companies in Zambia, this paper found currently no textile and clothing manufacturing under Chinese investors. Although, cotton quality in Zambia has improved, the majority is exported out of the continent. There are currently few textile mills left and the clothing manufacturers largely use imported inputs. Second hand clothes and cheap imports from Asian countries, have taken over large parts of the domestic market for textile and clothing in Zambia. The largest integrated textile mill was the Zambia China Mulungushi Textiles (ZCMT) operating under Chinese investors between 1997 and 2007. Findings show that the Chinese management casualised the workforce, leading to more informal employment. In addition, there were few records of skill transfer to Zambian workers, although there were investments in improving technology. This paper explores the different reasons for the TC mill to close and argue that it was not viable under a liberal market. The Zambian workers were unhappy with the labour system, wage levels and terms of employment, which caused violent riots and strikes up until closure in 2007. The Chinese management was unable to restructure the work force enough to be cost effective and to stay in business. The Lusaka East Multi Facility Economic Zone (MFEZ) is under construction, and will focus on textiles and the supportive links in the industry. It is yet to be seen, how it impacts local economic development. Based on the assumptions of economic development, this paper shows limited impact of Chinese FDI in the Zambian textile and clothing industry. / AFRIKAANSE OPSOMMING: Hierdie tesis is 'n bydrae tot die "China in Afrika” debat. Die Chinese ontwikkelings hulp sluit buitelandse direkte investering (FDI) in, en die onlangse literatuur beweer dat 'n belangrike deel van FDI na die vervaardigingsektor in Afrika-lande gaan. FDI toegeken aan die industrie het die potensiaal om werk te skep en armoede to verminder. Hierdie verhandeling neem Zambië as 'n geval, en kyk na die tekstiel-en klere-industrie as 'n subsektor van die vervaardigingsektor. Die tekstiel en klere bedryf is veral geskik vir Zambië, daar dit; (i) waarde toevoeg tot natuurlike hulpbronne; (ii) skakels skep na ander sektore van die ekonomie; (iii) slegs basiese vaardighede word vereis; (iv) arbeidsintensief is. Deur middel van primêre en sekondêre data, word in hierdie verhandeling gepoog om die impak van die Chinese FDI in die Zambiese tekstiel-en klere-industrie, op die ekonomiese ontwikkeling vas te stel, soos gemeet aan; (i) formele werkskepping; (ii) tegnologie en vaardigheids oordrag; (iii) die staat se inkomste; en laastens ( iv) die skepping van ‘n mark vir die produkte. Deur te kyk na die Zambiese nasionale planne en instellings, die katoen-tekstiel-kleed waardeketting, en die organisasie van die Chinese maatskappye in Zambië, het hierdie verhandeling bevind dat daar tans geen tekstiel-en klere vervaardiging onder Chinese beleggers is nie. Hoewel die gehalte van die katoen in Zambië verbeter het, is die meeste buite die vasteland uitgevoer. Daar is tans min tekstielfabrieke oor, en die klerevervaardigers gebruik grootliks ingevoerde insette. Tweedehandse klere en goedkoop invoere uit Asiatiese lande, het grootliks die binnelandse mark vir tekstiel en klere in Zambië oorgeneem. Die grootste geïntegreerde tekstiel fabriek was die Zambië China Mulungushi Textiles (ZCMT) wat tussen 1997 en 2007 onder Chinese beleggers was. Bevindinge toon dat die Chinese bestuur niepermanente aanstellings gemaak het, wat gelei het tot meer informele indiensneming. Verder, is daar min rekord van vaardigheids-oordrag na die Zambiese werkers, maar daar was beleggings in die verbetering van tegnologie gedoen. Hierdie verhandeling ondersoek die verskillende redes vir die TC meul/fabriek se sluiting, en bevind dat dit nie lewensvatbaar in 'n vrye mark was nie. Die Zambiese werkers was ontevrede met die arbeidstelsel, loonvlakke en terme van indiensneming, wat gewelddadige onluste en stakings veroorsaak het tot die sluiting in 2007. Die Chinese bestuur was nie in staat om die arbeidsmag te herstruktureer om koste-effektief genoeg te wees nie. Die Lusaka-Ooste Multi Fasiliteit Ekonomiese Sone (MFEZ) is onder konstruksie en sal fokus op die tekstiel en die ondersteunende skakels in die bedryf. Dit moet nog gesien word hoe dit die plaaslike ekonomiese ontwikkeling beïinvloed. Op grond van die aannames van ekonomiese ontwikkeling, toon hierdie ondersoek ‘n beperkte impak van die Chinese FDI in die Zambiese tekstiel en klere bedryf aan.

This case study, executed in school network driven by a private foundation for underprivileged children in Cambodia, provides a perspective from a unique situation of technology enablement in an environment with a predominantly instructivist teaching tradition.   The said environment is strongly influenced by private sector donors with strong constructivist traditions and expectations. The environment is thus unique in the sense that a relatively asset rich environment, with expectations of 21st century pedagogical skills, is transported into an asset poor environment that was/is strongly rooted in instructivism. The case study thus give a perspective on if technology itself is a possible solution for better teacher education/educational delivery, or if the underlying pedagogy first needs to be evolved to allow web-based platforms and tools to be fully leveraged.     In the specific environment being studies, teacher in-service training plays a larger role than formal teacher qualifications, and peer-to-peer, in-person, learning is the cornerstone of development (offline connectivism). Rather than changing the way the teachers learn, there should be opportunity in further strengthening the current practices of communities. Connectivist MOOCs (Massive Open Online Courses) do provide the community engagement and together with technology mediated professional learning platforms there should be opportunity to provide enhanced support for teachers’ education.   The two main hurdles to overcome, beyond functioning technology assets and web access, are teachers own comfort levels with technology platforms, as well as provision of platforms that support local language options. The comfort level with technology is important to address as, assuming technology and web access works, the openness and lack of control in a web environment is in direct contradiction to instructivist teaching. Unlocking the potential of the web requires that teachers are comfortable with the web itself and also truly support inquiry based learning over didactic teaching, and that they have the skills to help children navigate the openness of the web.   As economies shift towards becoming knowledge societies, collaborative problem-solving and navigation to knowledge are skills of increasing in importance, relative static knowledge recall that was previously viewed as value adding. This case study contributes to pedagogical theory and in particularly gives one more perspective on the shift from instructivist to constructivist teaching as a pre-requisite for capturing the power of the internet, and the shift to leveraging networks in a connectivist pedagogical approach. This case study also calls out the need for evolved frameworks to better describe technology mediated learning in least developing country environments. The case study also provides contribution to practice to technology mediated teacher education as it specifically addresses some of the opportunities in strengthening the support to teacher education in least developed countries.

The threat of global warming is bringing a new pro-environmental paradigm all over the world under the Kyoto Protocol. Addressing climate change is beneficial to all countries because environment is global public good. However, because global warming is also closely related to each country’s specific condition such as industrial development and political situation, prudent approaches considering different situations of each country are required in order prevent unintended negative consequences. This study focuses on the weakness of the current CDM (Clean Development Mechanism) in terms of impeding sustainable development in LDCs (Least Development Countries). As a case study, the Grameen Shakti Program in Bangladesh demonstrates the potential scenario of sustainable development in LDCs through CDM markets and a new financial model of CERs (Certified Emissions Reductions) is suggested to support and replicate the Grameen Shakti Program other LDCs. / text

As foreign direct investment (FDI) grows rapidly in this highly integrated world, numerous new challenges confront the existing global trading system. Both developed countries and their developing counterparts have been trying to reach harmonious bilateral or multilateral agreements. However, disputes between multinational enterprises (MNEs) and host countries continue to increase as FOI rises. Trade Related Investment Measures (TRIMs) were proposed by the United States in the 1994 Uruguay Round as a way to create a better investment environment in both developed and developing countries. Since many theoretical and empirical analyses of TRIMs agreement are ambiguous or incomplete, this three-essay dissertation will examine theoretical and empirical trade-related investment policies with a focus on the strategic regulation of TRIMs policies in developing countries. The first essay provides background information about TRIMs agreement that are currently employed around the world. It also includes definitions, controversial debates and applications, a description of the theoretical framework for analysis of the TRIMs agreement and the historical development of the TRIMs agreement from the Uruguay Round to the Doha meeting in 2001. The objective of this essay is to emphasize the importance of the TRIMs agreement in the structure of the global economy and their significant economic impacts on host countries. The second essay considers the impacts of the TRIMs policies on developing countries by employing a theoretical model. A dynamic general equilibrium model is used to examine two types of TRIMs policy instruments, local content requirements (LCRs) and government investment incentives (GIIs), such as subsidies given to MNEs operating in host countries. The model shows that increasing LCRs will benefit the economy of developing countries through increases in R&D and technology transfer in the short run. However, in the long run, increased LCRs will hinder their economic development because production of less competitive goods of higher cost will reduce domestic demand. GIIs use in developing countries will result in increase in available resource inputs for relative wages for R&D or technology adapting sector, while decreasing these inputs and relative wages for manufacturing sectors. Finally, the third essay studies TRIMs policies in a CGE (Computable General Equilibrium) model of a small open economy, and quantifies the economic impacts of the strengthening of TRIMs policies under a post Uruguay Round scenario in Tunisia. The employed model is based on the model of Konan and Maskus (2000), which concentrates on trade liberalization in Tunisia. In our model, the policy instruments are government subsidies and taxes. Strengthening of these TRIMs policies was examined for 35 sectors. In order to analyze TRIMs policies, another important feature, FDI, was integrated into this CGE model. It was found that TRIMs policies tend to have a significant impact on service and other capital-intensive sectors, but have only a minor impact on mining, utilities, agriculture and other highly protected and labor intensive sectors. Government taxes on MNEs would cause a loss in the GDP of a host country and lower its relative wages, while investment incentives would increase both the GDP of the host country and its relative wages.

Magister Legum - LLM / South Africa

Magister Legum - LLM

Access to modern energy services derived from renewable sources is a prerequisite, not only for economic growth, rural development and sustainable development, but also for energy security and climate change mitigation. The least developed countries (LDCs) primarily use traditional biomass and have little access to commercial energy sources. They are more vulnerable to problems relating to energy security, air pollution, and the need for hard-cash currency to import fossil fuels. This thesis evaluates sugarcane-molasses bioethanol, a renewable energy source with the potential to be used as a transport fuel in Nepal. Sustainability aspects of molasses-based ethanol have been analyzed. Two important indicators for sustainability, viz. net energy and greenhouse gas (GHG) balances have been used to assess the appropriateness of bioethanol in the life cycle assessment (LCA) framework. This thesis has found that the production of bioethanol is energy-efficient in terms of the fossil fuel inputs required to produce it. Life cycle greenhouse gas (GHG) emissions from production and combustion are also lower than those of gasoline. The impacts of important physical and market parameters, such as sugar cane productivity, the use of fertilizers, energy consumption in different processes, and price have been observed in evaluating the sustainability aspects of bioethanol production. The production potential of bioethanol has been assessed. Concerns relating to the fuel vs. food debate, energy security, and air pollution have also been discussed. The thesis concludes that the major sustainability indicators for molasses ethanol in Nepal are in line with the goals of sustainable development. Thus, Nepal could be a good example for other LDCs when favorable governmental policy, institutional set-ups, and developmental cooperation from donor partners are in place to strengthen the development of renewable energy technologies. / QC 20101029