Thesis submitted in partial fulfilment of the requirements for the degree of Masters in Arts in (Political Studies) University of the Witwatersrand February, 2015 / The ANC ascended to government against the backdrop of a rapidly changing global political economic order after the end of the Cold War. This effectively marked the collapse of communism as a global political force and the concomitant dominance of neoliberalism. In 1996, the African National Congress government adopted the Growth Employment and Redistribution strategy (GEAR) as its new economic blue print, through which it would pursue its transformation agenda. In so doing, the ANC circumvented economic policy consultation processes with its political alliance partners and declared GEAR ‘non-negotiable’. This research argues that the shift to GEAR was essentially an economic policy alignment with the dominant post -Cold War neoliberal discourse and practice. It was fashioned deliberately by key ANC policy makers who had bought into the neoliberal assumption that development would occur after economic growth had been attained. The GEAR strategy privileged market led reforms which subordinated the transformation agenda to orthodox macroeconomic considerations. The pro-market bias which began with the adoption of the GEAR strategy has continued to shape South Africa’s post-apartheid economic policy environment to a significant extent.

A Research Report submitted in partial fulfilment of the Degree of Master of Economic Science in the School of Economic and Business Sciences, University of the Witwatersrand / The objective of the study is to analyse the effect former homeland status on poverty in South Africa. The study uses 2011 Census community profiles data from Statistics South Africa and cartographic data. Two methodologies are used in order to identify the effect of former homeland status on poverty, i.e., Ordinary Least Squares (OLS) and Regression Discontinuity Design (RDD). Notably, the RDD model is the main model as it formally identifies the treatment effect by comparing former and non-former homelands within a quasi-experimental framework. The results indicate that former homeland areas experience higher poverty levels relative to non-former homeland areas. The analysis shows that a large portion of the “raw” poverty differential is explained by differences in observed characteristics between former and non-former homeland areas. The remaining difference is attributable to former homeland status. The ‘scarring effect’ is small but statistically significant. Thus, the results call for government intervention aimed at reducing differences in observed characteristics of former and non-former homeland areas. The study notes that such mechanisms will narrow the difference in poverty rates but might not close it entirely since part of the difference is structural and depends on the rate at which the ‘scarring effect’ fades overtime. / NG (2020)

Research presented for the degree of Master of Management in the field of Public and Development Management to the Faculty of Commerce, Law and Management of the University of Witwatersrand. March 2016 / As an economic hub of Africa, South Africa has been experiencing an influx of economic and political migrants leading to the ethnic diversification of its population. This trend has incited a xenophobic atmosphere due to frustrations from locals, and has led to violent attacks towards foreign nationals. In particular, the Somali population has endured a high number of attacks as this group has successfully penetrated the informal business market in the townships of South Africa. Government has responded to these xenophobic attacks by proposing, amongst others, a Licensing of Businesses Bill in 2013. The bill has been criticised by the public as it is considered a hostile policy that aims to enforce regulations that restrict foreign nationals from operating businesses in the informal sector. This political dilemma has also led to questions as to how this policy response may have an effect on social cohesion in unequal societies where violence against Somalis is prevailing. The Klipspruit community was selected as it forms part of the City of Johannesburg that has a significant amount of Somali informal traders. The purpose of the study was to examine the root causes of violence against Somalis and the potential of the governments’ policy response to mitigate this phenomenon. In particular, the study also investigated the effect of the proposed Licensing of Businesses Bill on social cohesion development between Somalis and South Africans in Klipspruit. The qualitative research findings indicate that violence against Somalis was due to the economic situation, lack of regulation, competition and business miscommunication. The responses were generally driven by the perception that the government of South Africa introduced a bill that is fostered by nationalistic interests to the detriment of foreign nationals such as Somalis. It is therefore recommended that the government develops a way to enhance power sharing in decision-making processes, monitoring and correcting inequalities amongst culturally distinct groups, promoting cultural diversity and integration through education and lastly ensuring that the government acts in a constitutional manner. / GR2018

Thesis (MTech (Human Resource Management))--Cape Peninsula University of Technology, 2018. / Broad-Based Black Economic Empowerment (B-BBEE) has been the epitome of policy reform pervading South Africa (SA) since 1994, the end of apartheid. Often making media headlines, it inherently arrogates itself to all stakeholders engaged in commerce with/within SA. The impetus for the study ensued owing to recent (2013) changes to the B-BBEE legislative landscape. More specifically, the focus of the study was on one segment: Qualifying Small Enterprises (QSEs), operating within the same realm as Small Medium and Micro Enterprises (SMMEs). The rationale for such a focus stemmed from this market segment’s seemingly rigid response to such change, deemed to support this study’s results. The literature review embarked upon in Chapters 2 to 4, that is, collecting secondary data, provided for a solid foundation relative to a subject matter embedded with technical jargon and often driven by highly emotive/subjective inputs from stakeholders. The literature primarily drew from untested assumptions: these were mainly due to the high degree of contentiousness surrounding B-BBEE as subject matter, the lack of research (statistical results) relative to B-BBEE legislative change and more specifically, the lack of the latter relative to this study’s scope. The above introduction initiates the notion of there being inherent demarcations to this study, dictating the most relevant research design and methodology suited thereto. A pragmatic research philosophy was adopted, owing to its qualitative, exploratory enquiry. Furthermore, the unit of analysis, consisting of 16 samples, was conveniently selected. Although convenience sampling was regarded the most suitable approach to collecting data, it gave rise to the study’s biggest limitation: its inability to generalise findings. On that note, its findings were in line with the researcher’s precedential assumption upon its initiation: legislative change to Broad-Based Black Economic Empowerment (B-BBEE) for Qualifying Small Enterprises (QSEs) lead(s) to non-compliance and impeded transformation goals. The results give rise to a plethora of valuable insights into the dynamics of the industry, not only for strategic direction to be set for/by stakeholders on both a micro and macro level, but also providing a solid foundation relative to further research to be embarked upon – a notion highly advocated in supporting the integration of sustainable transformation in modern South Africa (SA).

This Working Paper contains the results of a pilot investigation undertaken in 1986/87 in selected areas of the Keiskammahoek District of Ciskei. The pilot study was undertaken in order to compile a comprehensive plan for a long-term study of the Keiskammahoek District as a whole. Such a study would be designed to analyse socio-economic and political changes which have taken place in the District, measured against the results of a major multidisciplinary research project (The Keiskammahoek Rural Survey) which was undertaken in the area between 1948 and 1950. The existence of the Keiskammahoek Rural Survey affords a unique opportunity for comparative social science research, particularly because it is well known that substantial changes have taken place in the District. However, the precise nature and scale of the changes were unknown; hence, the decision to conduct a pilot survey first. The results of the pilot survey, published here, have turned out to be extremely valuable in formulating proposals for a subsequent on-going research undertaking; and have fully justified the time and money devoted to the exploratory investigation which constituted the basis of the pilot project. / Digitised by Rhodes University Library on behalf of the Institute of Social and Economic Research (ISER)

The purpose of this treatise is to ascertain the impact of economic downturn on Black Economic Empowerment (BEE) and Banks. This has been sparked by the huge speculations in the market as to what will happen to BEE and how will the banks cope in general with the impact of this scourge. It is imperative to understand the influence of the 2008+ economic downturn on socio-economic reconstruction and development in South Africa and the black economic empowerment and its funding mechanisms. The treatise has two phases the, namely the theoretical phase and a bit of narrative phase. In the theoretical phase the research study interrogates what the literature review reveals about the economic downturn, BEE as well as performances of different banks across the world. This shows the economic impact that the banks have had to endure during the economic downturn. This resulted in stock markets losing their value. The dividend earners were significantly affected including a sizeable number of BEE companies. The BEE companies are perceived to be too reliant on debt on to finance their deals and this treatise will look at various options of financing a BEE deal and what is deem to the most suited financing structure. The narrative phase involves semi-structured interviews that were conducted in order to ascertain the real impact that South African were faced with and how they have managed to steer clear of the turbulent waters. This also looked at how the BEE consultant views the current occurrences in the market.

Over the years, South Africa has embarked on significant strides towards trade liberalisation with a view to generate economic growth that enhances employment and reduces poverty. The purpose of this study is to determine whether trade liberalisation has enhanced economic growth in South Africa. The specific research objectives were to (i) provide an understanding of the country’s trade liberalisation policies (ii) empirically determine the short-run and long-run effects of trade liberalisation on economic growth between 1970 and 2017 and (iii) to provide policy recommendations based on the findings. To this end, utilising three different proxies of trade liberalisation, the study employed the Autoregressive Distributed Lag (ARDL) Model to determine the long-run and short-run impact of South Africa’s trade liberalisation on economic growth. The study found that trade liberalisation enhanced economic growth in South Africa and noted that the results hold only when using trade openness and real effective exchange rate as proxy for trade liberalisation. This suggest that trade liberalisation in South Africa has had a general positive effect on economic growth. Despite the positive effect on economic growth, there is still a need to ensure that within the trade policy, increased focus on sectors that have the potential for value added and job creation. / Economics / M. Com. (Economics)

The rate of unemployment in South Africa remains stubbornly high despite vastly improved macroeconomic fundamentals and relatively high rates of economic growth for most of the post-1994 democratic era. Employment growth was much weaker than might have been expected given the improved economic outlook. This thesis investigates how the sectoral employment intensity of output growth in the eight non-agricultural sectors of the South African economy has evolved from 2000 to 2012, with a view to identifying key growth sectors that are employment intensive. An econometric model of the demand for labour is used to estimate employment elasticities in the major Standard Industrial Classification (SIC) divisions of the economy. The results suggest that aggregate employment and economic growth diverged and that jobless growth occurred in South Africa during the period under review. South Africa has become less labour intensive and more capital intensive, reflecting a structural adjustment that has weakened the employment-growth relationship. At the sectoral level, the results suggest the presence of a long-run relationship between employment and growth in finance and business services, manufacturing, transport and the utilities sectors. In particular, the results suggest that the tertiary sector performed best in terms of the employment intensity of output growth. This reflects the changing structure of the economy and the nature of employment shifting away from the primary towards the tertiary sectors. Investment in the tertiary sector may help to foster new employment opportunities and assist in improving the overall employment intensity of output growth in South Africa. / Economics / D. Litt. et Phil. (Economics)

Thesis (MBA)--Stellenbosch University, 2012. / ENGLISH ABSTRACT: The aim of this study is to calculate and analyse GDP multipliers for the South African economy from input-output tables for seven data sets for the 1980-2010 period. The paper commences with a discussion of the nature, limitations, uses and underlying assumptions of input-output tables, followed by a presentation of the basic input-output model. The theory and methodology of the calculation of output multipliers is discussed. The basic open and closed model methods used in this study are developed and distinguished. All the steps of the basic calculation of the multipliers are explained within the context of the two mathematical models used. The four sets of multipliers generated by the model, namely simple GDP multipliers, simple type II GDP multipliers, total GDP multipliers, and total type II GDP multipliers are discussed and analysed for all seven data sets. The most significant trend identified is the steady decline in the value of the total GDP multiplier over the three decades reviewed. This is primarily attributed to the increasing openness of the South African economy following the end of the apartheid era. The composition of the total GDP multipliers, in terms of the relative and absolute proportions of the direct, indirect and induced impacts are presented and analysed. The decline in the value of the total GDP multiplier was primarily due to a reduction in the relative and absolute contribution of the induced effect over the period reviewed. This trend reflects the structural changes in the South African economy, the hallmark of which is the decline in the secondary industries, whose declining profitability was due to increased competitive discipline. This trend was compounded by overvalued and volatile real exchange rates, and resulted in low levels of investment and employment creation in this sector. An examination of the intra-sector multipliers for the same period also showed a marked and consistent declining trend in the multiplier effect over the period under review. This was especially pertinent in the case of the secondary industries, for which a very similar pattern emerged across industries, with the time paths of the mean multiplier effect showing a very similar movement for almost all manufacturing industries. It is suggested that policy makers should consider the significance and desirability of these structural changes. A combination of monetary and fiscal policy measures could do much to revitalise South Africa’s ailing manufacturing sector. The turnaround thereof could aid government’s objectives of employment creation and economic growth. / AFRIKAANSE OPSOMMING: Die doel van hierdie studie is om, op grond van inset-uitset tabelle, BBP vermenigvuldigers vir die Suid Afrikaanse ekonomie te bereken en te ontleed, vir die 1980-2010 periode. Die skripsie begin met ‘n bespreking van die aard, beperkings, gebruike en onderliggende aannames van inset-uitset tabelle, gevolg deur ‘n voorlegging van die basiese inset-uitset model. Die teorie en metodologie van die berekening van uitset vermenigvuldigers word bespreek. Die basiese oop en geslote model metodes wat in die studie gebruik word, word ontwikkel and onderskei. Al die stappe in die basiese berekening van die vermenigvuldigers word verduidelik binne die konteks van die wiskundige modelle wat hier gebruik word. Die vier stelle vermenigvuldigers wat deur die model gegenereer word, naamlik die eenvoudige BBP vermenigvuldigers, die eenvoudige tipe II BBP vermenigvuldigers, die totale BBP vermenigvuldigers en die totale tipe II BBP vermenigvuldigers, word bespreek en ontleed vir al sewe data stelle. Die volgehoue dalende tendens van die totale BBP vermenigvuldiger, is die betekenisvolste tendens wat hier waargeneem is. Dit word primêr toegeskryf aan die toenemende “oopheid” van die Suid-Afrikaanse ekonome na die einde van die apartheid era. Die samestelling van die totale BBP vermenigvuldigers, in terme van die relatiewe en absolute proporsies, van die direkte, indirekte en afgeleide impak word gewys en ontleed. Die daling in die waarde van die totale BBP vermenigvuldiger, kan grootliks toegeskryf word aan ‘n afname in die relatiewe en absolute bydrae van die afgeleide effek oor die relevante periode. Hierdie tendens wys op die strukturele veranderinge binne die Suid-Afrikaanse ekonomie, wat gekenmerk is deur die kwynende bydrae van die sekondêre industrieë, veral weens hul dalende winsgewendheid wat toegeskryf kan word aan ‘n toename in internasionale kompetisie. Hierdie tendens word versterk deur ‘n oorgewaardeerde en onstabiele reële wisselkoers wat aanleiding gee tot laer vlakke van belegging en werkskepping in hierdie sektor. ‘n Ontleding van die intra-industrie vermenigvuldigers wys verder op ‘n volgehoue en dalende tendens in die vermenigvuldiger effek oor die hele termyn. Dit is weereens veral pertinent in die geval van die sekondêre industrieë, waar ‘n baie soortgelyke patroon te voorskyn kom vir byna die hele sektor. Dit word voorgestel dat beleidmakers die belangrikheid en wenslikheid van hierdie strukturele veranderinge in oënskou sal neem. ‘n Kombinasie van monetêre en fiskale beleidsmaatreëls kan baie doen om die kwynende plaaslike vervaardigingsbedryf te ondersteun, en ‘n meer lewensvatbare bedryf kan die owerheid help om sy doelwitte van groei en werkskepping te bereik.

Thesis (MDF)--Stellenbosch University, 2015. / ENGLISH ABSTRACT: The traction of Foreign Direct Investment (FDI) has been viewed as a viable strategy for growing the economy and for solving such challenges as unemployment, the acquire skills and technology transfer. Many developing economies have implemented a number of macro-economic policies with the aim of boosting their economies. South Africa has, similarly, implemented a range of policies – including incentives aimed at attracting FDI. This study analyses the inward trends of FDI for South Africa and the key determinants of FDI. The study uses as variables annual key economic indicators such as gross domestic product (GDP), government size (GOVSIZ), export/import trade, the exchange rate, inflation and the interest rate, for the period 1970 to 2013. The study reviews global FDI trends and their geographic distribution as well as FDI trends in Africa and in key sectors, including FDI trends and FDI policy in South Africa. The literature review analyses the fundamental theories of international trade and foreign investment. A number of empirical researches indicate that factors such as skilled labour, infrastructure, financial development, political stability, market size, natural resources and better economic management (comparatively speaking) are key determinants for FDI. Following the theoretical review, the formulation of an empirical model to estimate the empirical determinants of South African FDI is discussed. The use of Johansen cointegration and the vector error correction model (VECM) framework is described. The discussion of cointegration analysis includes the use of impulse response and decomposition analysis to establish the long- and short-run determinants of FDI in South Africa. The results from the trend analysis showed that South Africa is still performing poorly in terms of receiving FDI when compared to other developing countries in regions such as Latin America and South Asia. The information and communications technology (ICT) and financial services sector are currently the major recipient of FDI, followed by manufacturing and mining. The USA, followed by the UK, are the primary sources of FDI in South Africa. The empirical results showed that FDI, GDP, GOVSIZ, trade, inflation, exchange and return on credit were long-run determinants. The VECM results revealed that GDP, GOVSIZ, trade openness and return on credit tend to have a positive impact on FDI, whereas the exchange rate and inflation have a negative impact on it.