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The contribution of international competitiveness to the economic development of South Africa

Theses (MBA)--Stellenbosch University, 2002. / ENGLISH ABSTRACT:
The concept of international competitiveness has become increasingly important due
to globalisation and increased integration between nations and has been referred to
as a "new type of warfare" in modern economies. With the advent of globalisation,
countries have become more integrated not only through trade but also in financial
markets. Consequently, the question of attaining sustainable development through
international competitiveness has become very significant.
As globalisation proceeds, it would appear that a combination of factors are raising
the demand for skilled labour and lowering the demand for unskilled and semi-skilled
labour. In South Africa, at least over the short term, the predictions are for declining
demand for unskilled and semi-skilled labour and rising demand for skilled and
professional occupations.
South African manufacturing firms are generally characterised by low spending on
innovation. Today there is a shift in the pattern of world trade away from commodity
production and raw material intensive simple manufactured goods and towards
increasingly knowledge-intensive goods and services. As the more traditional bases
of securing a competitive advantage decline for South African manufacturing firms,
the ability to compete will increasingly turn on their capacities to master information
technology. Technological infrastructure is becoming a key asset for the future
competitiveness of a nation. Technology also impacts on education. Therefore, the
priority of a competitive nation is to develop the people who will operate the new
technological infrastructure and strive to be on the leading edge of future
developments. This is one of the reasons why South Africa has to improve on its
technology in order to be attractive to foreign investment.
It is clear ,that South Africa's current education and training system is not adequate to
address the future challenges of the country. An integrated, restructured education
and training system that is geared to supplying the necessary manpower to ensure
high productivity and international competitiveness is needed if South Africa is to
become globally competitive. Therefore the importance of education and training to upgrade people to enable them to earn more cannot be overemphasised. Much
more emphasis must be put on technical training in South Africa.
After some difficult years of isolation, South Africa has increased its rating on
international competitiveness by three positions from 42nd in 2001 to 39th in 2002. It
is hoped that South Africa's economic growth rate improves as a result of its pursuit
of privatisation; reform of the state sector; and liberalisation of trade and tariffs. The
social inequalities inherited from the past, high unemployment and a relatively high
inflation rate may constrain the government's economic policy. The development
priorities of developing countries such as South Africa include achieving sustained
income growth for their economies by raising investment rates, strengthening
technological capacities and skills and improving the competitiveness of their exports
in world markets, distributing the benefits of growth equitably by creating more and
better employment opportunities and protecting and conserving the physical
environment for future generations.
The new and more competitive context of liberalising and globalising the world
economy in which economic activity take place imposes considerable pressures on
developing countries to upgrade their resources and capabilities if they are to
achieve these objectives.
This study seeks to investigate the extent to which international competitiveness
contributes to the economic development of South Africa, by studying the theory of
comparative advantage and its implications to the modern theory of trade. The study
explores and identifies key factors of international competitiveness and globalisation
and the success of the application of international competitiveness into practice. The
study concludes with possible areas of further research. / AFRIKAANSE OPSOMMING:
Die konsep van internasionale mededingendheid word toenemend belangrik weens
globalisering en groter integrasie tussen nasies en daar word in hedendaagse
ekonomieë daarna verwys as 'n "nuwe soort oorlog". Met die koms van globalisering
het lande nie net deur handel nie maar ook in finansiële markte meer geïntegreerd
geraak. Die kwessie van die bewerkstelliging van volgehoue ontwikkeling deur
internasionale mededingendheid het gevolglik baie belangrik geword.
Namate globalisering voortgaan wil dit voorkom asof 'n kombinasie van faktore die
vraag na geskoolde arbeid verhoog en die vraag na ongeskoolde en halfgeskoolde
arbeid laat daal. In Suid-Afrika word 'n kleiner vraag na ongeskoolde en
halfgeskoolde arbeid en 'n groter vraag na geskoolde en professionele beroepe oor
ten minste die kort termyn voorspel.
Suid-Afrikaanse vervaardigingsmaatskappye word oor die algemeen deur lae
besteding aan innovasie gekenmerk. Daar is tans 'n verskuiwing in die patroon van
wêreldhandel weg van kommoditeitsproduksie en grondstof-intensiewe eenvoudige
vervaardigde goedere na toenemend kennis-intensiewe goedere en dienste.
Namate die meer tradisionele grondslae waarop Suid-Afrikaanse
vervaardigingsmaatskappye 'n mededingende voordeel verkry het, verdwyn, sal die
vermoë om mee te ding toenemend afhang van hul vermoë om inligtingstegnologie
te bemeester. Tegnologiese infrastruktuur word 'n baie belangrike bate vir die
toekomstige mededingendheid van 'n land. Tegnologie het ook 'n impak op
onderwys. Die prioriteit van 'n mededingende land is dus die ontwikkeling van die
mense wat die nuwe tegnologiese infrastruktuur sal bestuur en wat daarna strewe
om aan die spits van toekomstige ontwikkelings te wees. Dit is een van die redes
waarom Suid-Afrika sy tegnologie moet verbeter ten einde aantreklik te wees vir
buiteland,sebelegging.
Dit is duidelik dat Suid-Afrika se huidige onderwys- en opleidingstelsel nie voldoende
is om die toekomstige uitdagings vir die land die hoof te bied nie. 'n Geïntegreerde
herstruktureerde onderwys- en opleidingstelsel wat daarop gemik is om die nodiqe
mannekrag te voorsien om hoë produktiwiteit en internasionale mededingendheid te verseker, word vereis indien Suid-Afrika mededingend wil wees in die internasionale
arena. Die belangrikheid van onderwys en opleiding om mense op te gradeer ten
einde hulle in staat te stel om meer te verdien, kan nie oorbeklemtoon word nie.
Groter klem moet op tegniese opleiding in Suid-Afrika gelê word.
Na moeilike jare van isolasie het Suid-Afrika sy gradering ten opsigte van
internasionale mededingendheid met drie posisies verbeter vanaf 42ste in 2001 tot
39ste in 2002. Suid-Afrika se ekonomiese groeikoers sal hopelik verbeter as gevolg
van sy strewe na privatisering, hervorming van die staatsektor, en liberalisering van
handel en tariewe. Die maatskaplike ongelykhede van die verlede, hoë werkloosheid
en 'n betreklik hoë inflasiekoers kan moontlik die regering se ekonomiese beleid aan
bande lê. Die ontwikkelingsprioriteite van ontwikkelende lande soos Suid-Afrika sluit
die volgende in: volgehou inkomstegroei vir hul ekonomieë deur
beleggingskoersverhogings, verbetering van tegnologiese kapasiteite en
vaardighede, die verbetering van die mededingendheid van hul uitvoere in
wêreldmarkte, die billiker verdeling van die voordele van groei deur meer en beter
werkgeleenthede te skep, en die beskerming en bewaring van die fisiese omgewing
vir toekomstige geslagte.
Die nuwe en meer mededingende konteks van die liberalisering en globalisering van
die wêreldekonomie waarin ekonomiese aktiwiteit plaasvind, plaas- groot druk op
ontwikkelende lande om hul hulpbronne en kapasiteite te opgradeer indien hulle
hierdie doelwitte wil bereik.
Hierdie studie poog om die mate waarin internasionale mededingendheid tot die
ekonomiese ontwikkeling van Suid-Afrika bydra, te ondersoek deur die teorie van
mededingende voordeel en die implikasies daarvan vir die moderne handelsteorie te
bestudeer. Die studie ondersoek en identifiseer die hooffaktore van internasionale
mededingendheid en globalisering en die sukses van die toepassing van
internasionale mededingendheid in die praktyk. Die studie word afgesluit met
voorstelle vir moontlike verdere navorsing.

Identiferoai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/53093
Date12 1900
CreatorsPhafane, Matsuna P.
ContributorsRoux, A., Stellenbosch University. Faculty of Economic & Management Sciences. Graduate School of Business.
PublisherStellenbosch : Stellenbosch University
Source SetsSouth African National ETD Portal
Languageen_ZA
Detected LanguageUnknown
TypeThesis
Format80 p.
RightsStellenbosch University

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