...Is there a resource curse in South Africa? Introduction Collier (2007) introduced the concept of the natural resource trap, a situation in which countries have access to natural resources that should enable a country to benefit and develop economically, but has the opposite effect by enslaving the country in poverty. In my analyses of Collier’s (2007) argument on why countries are subject to a resource trap, I focus on the concept of Dutch Disease within the South African primary sector and the aggravating factors caused by economic shocks. I analyse the degree to which the South African has indeed become reliant on the primary sector for sustaining its economy, with emphasis on the mining and agricultural components of the primary sector. However, I also extend on Collier’s (2007) argument by incorporating the views of other authors. An important view and one also central to my argument is that of Grimsley and Hay’s (2004), who refers to a “balanced economy” (p. 97) in the context of the “equity and mutual benefit” (p. 98) for the society as a whole. Translating the Collier (2007) argument to the South African context Collier (2007) indicates that Dutch disease, in combination with volatile commodity prices, is a significant contributor towards the natural resource trap. Barder (2006) describes the original concept of Dutch Disease in which the Dutch experienced large foreign exchange earnings due to the export of the gas. This led to a shift in the Dutch currency exchange...
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...Guyana is a South American country which lies North of Brazil. It’s filled with palm trees, exotic wildlife, and waterfalls. It is an adventure at anytime of the year. Guyana has three countries that border it such as: Venezuela, Suriname, and Brazil. It lies on the northeastern coast of South America. “ Much of the land is difficult to reach, and some areas have never been explored” (“ “). This country includes unique physical features, mild climate, a republican form of government, out of this world culture, an okay economy, and very different but cool facts. The psychical geography of guyana consists of many different land and water features. The size of guyana is about 83,000 square miles, that is about 214,969...
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...South Africa A Development and Economic Overview Introduction I chose South Africa as the topic for this research paper. I have always wanted to visit South Africa but have never had the opportunity to travel there. My involvement in international development has given me an interest in this country, as it has many ties to the developing world and the history of developing countries through colonialism. South Africa is influenced by all levels of economic activity including the primary, secondary, tertiary, quaternary and quinary sectors which determine if South Africa’s commercial economy. These economic levels, along with the indicators of development, show whether or not South Africa is a developed nation and if so, how developed they are. This paper will present an overview of the economic activities in South Africa and analyze its state of development. Major Economic Activity in South Africa South Africa has a lot of influence throughout multiple levels of economic activity; from primary production to quinary services. Regarding the primary level of economic activity, they have a agriculture sector that covers both subsistence farms and commercial farms. Subsistence farms by definition consume what they produce in order to survive, whereas commercial farms produce a good in excess in order to sell it in a market for the purpose of gaining a profit (Doberstein, 2011). Through the influence of modern innovation and technology, South African farms are able...
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...currently being debated in the media, State capitalism and liberal capitalism. This essay also investigates whether the South Africa is really state capitalism or are they using Major Private Sectors to socially develop the South African economy, being Neoliberal capitalism? State Capitalism VS Liberal Capitalism State capitalism is when the government takes control over the commercial economic environment. The government may own shares in a public company listed in the stock exchange, acting as a large shareholder. Another type of economic system where State capitalism would be involved is when production is owned by private companies and the state controls the credit and investment allocation. Liberal capitalism is also known as free market capitalism; it gives companies and individuals the freedom to run their own market and set their own price systems. Individuals or companies would benefit with their gains and face detriment with their errors. The government may intervene to control free trade and open competition by eliminating private Monopoly. Neoliberal Capitalism is where private sectors seek to maximise the political and economic priorities of the state. South African Government Interventions Referring to the State of Nation Address by President Jacob Zuma, there are many interventions the Government desires to implement to improve the South African socio-economic structure. The various areas are unemployment, transportation, health, education, fight against crime...
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...Economy of South Africa - Throughout this article, the unqualified term "dollar" and the $ symbol refer to the US dollar. The economy of South Africa has a two tiered economy; one rivaling other developed countries and the other with only the most basic infrastructure. It is therefore a productive and industrialised economy that exhibits many characteristics associated with developing countries, including a division of labour between formal and informal sectors and an uneven distribution of wealth and income. The primary sector, based on manufacturing, services, mining, and agriculture, is well developed. South Africa's transportation infrastructure is among the best in Africa, supporting both domestic and regional needs. OR Tambo International Airport serves as a hub for flights to other Southern African and International countries. South Africa also has several major ports that make it the central point for most trade in the Southern African region. Economy of South Africa Cape Town CBD Rank Currency Fiscal year Trade organizations Statistics GDP $277.4 billion (2009) (nominal; 32nd) $488.6 billion (2009) (PPP; 25th) 32nd Rand (ZAR) Calendar year WTO, G-20, SACU and others Contents 1 History 2 Sectors 2.1 Telecommunications 2.2 Agriculture 3 Trade and investment 4 Complicating factors 4.1 Human capital flight 4.2 The electrical crisis 5 Economic policy 5.1 GEAR 5.2 Inflation targeting and GDP growth 5.3 Financial policy 6 Environment 7 Social services GDP growth...
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...LEASING CASE EXPLORING LEASING MARKET OPPORTUNITIES IN BOTSWANA by TOOCHUKWU AGWUNCHA ( copyright Fortvivit Resources Limited 2008) This case has been inspired and motivated by further developments in the Leasing industry in Botswana, but does not describe the actual situations in the country. Botswana, lies directly above South Africa and has one of the highest Gross Domestic Product per Capita in Africa (at USD 6140 - 2006). Its proximity to Africa’s economic powerhouse gives it the investment confidence of corporate organisations in South Africa. Its 2006 population is 1.75 million (growing at just over 1.5% p.a.) with a Gross Domestic Product (GDP) of about USD10.75 billion, a booming solid mineral industry (especially Diamond mining) and a focused government whose liberal policies have encouraged Foreign Direct Investments (FDI’s) mostly sourced from and generated through the influence of the strong and resilient South African economy. Three years ago, Botswana started operating a leasing law in the country. The regulator in the industry is the Leasing Commission of Botswana (LECOBOT), which is empowered to supervise the Leasing operations in the country. Some of its terms of reference and charge of responsibility include but are not limited to the following: 1. Promote the business of equipment leasing through its regulation of the market and according to the provisions of the leasing law. 2. Enable and encourage leasing companies to practice the business...
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...Federal State Educational Institution Of Higher Education "Saint-Petersburg State University of Engineering and Economics" Department of International Management Coursework on discipline "International Management" The study of marketing environment on the example of South Africa Fulfilled: Kulikov Evgeny Group 2/5591 3rd year Faculty VSHEM Leader: Ph. D. in Economics, docent Grishchenko T. Saint-Petersburg 2012 Contents Contents 2 Economic inspection in South Africa 3 The New Growth Path and Industrial Policy Action Plan 8 Investment promotion and facilitation 12 South Africa’s investment landscape 16 Government management of incentives program 19 Catalogue of incentives 20 About PEST and SWOT 22 PEST analysis 23 SWOT Analysis: 26 Соnclusion 28 Sources 30 Economic inspection in South Africa Trade and investment policies are critical for addressing the development challenges of Africa and achieving sustainable economic growth for the region. EDIP's work is broadly divided into three streams: (1) Research on global economic governance in order to understand the broader impact on the region and identifying options for Africa in its participation in the international financial system. (2) Issues analysis to unpack key multilateral (World Trade Organisation), regional and bilateral trade negotiations. It also considers unilateral trade policy issues lying outside of the reciprocal trade negotiations...
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...replacing many western states as the top trading and investment partner in many African states, and for decades it has been one of Africa’s best friends, helping in the decolonization process and building key infrastructure projects on the continent. China has been providing many African governments with cheap loans in exchange for securing their means of accumulating natural resources based on the principle of non-intervention and respect for sovereignty, which gives no strings attached. For more than a decade, diplomatic relations between China and South Africa have been marked a great growing relationship between both states. From a period of no official ties to limited interaction between the South African and Chinese Governments, the relationship has subsequently developed to become one of the closest between African and Asian states. Growing economic engagement, which underpins the warm ties between the two states, has put South Africa amongst China’s top three trading partners on the continent. Moreover, China is an emerging market economy; with a fast track of being the next economic rising superpower in the world and its current relations between it and Africa continue to grow fast with foreign direct investment increasing thirty-fold between 2003 and 2011, from US$491m to US$14.7 billion. In 2012, China pledged US$20 billion of loans to Africa over three years for infrastructure, agriculture and manufacturing. If the funds are stay the way they are and do not decline,...
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...for developing countries, growth and development follows developed countries by forcing the technology mechanism and changing the structure of production towards activities with higher levels of productivity. The evidence show that during 1970s and 1980s there were of structural changes in economic activities where developing countries enters the global markets. In his preface, Giplin (2001; xi) point out that “…important step toward the creation of a truly global economy, since the mid-1980s the world has also witnessed the extraordinary growth of economic regionalism as a countermovement to economic globalization.” Similarly, Magdoff (1992; 50) state that “In fact, capital exports have helped shape the evolving global economy ever since the end of the Second World War”. Moreover, Glyn and Sutcliffe (1992; 79) point out that “…left the world economy leaderless in the 1970s and 1980s with increasingly open economies disciplined by market forces, but without a unique center of gravity.” This implies that global economies forces t To provide a well-structured discussion, this essay will begin by briefly introducing into how neo-liberalism in the mainstream of development thinking greatly achieve its victory of defence mechanism for a new wave of market orientation intervention, before discussing the structural changes. It will then provide explanation on how these structural changes resulted to globalisation. It will also examine the economic policy making implication of the state...
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...Macroeconomics - The US Dollar Appreciating Versus Other Currencies Economic statistics link trade deficits to investment prospects and fiscal growth. A rise in the budget deficit of the U.S. government causes a rise in actual interest rates. Capital inflows affect such trade balances for example, if the U.S. economy offers better investment opportunities than other nations, the country’s capital flow will increase significantly. With flexible exchange system, the capital inflow tends to increase the value of the U.S dollar in correlation to other currencies. This rise in value of the dollar consequently makes U.S. exports rather less appealing to foreigners and U.S. imports become relatively less expensive; thus, net exports go down. Since 2008, the global economy has gone through significant changes influencing crosscutting growth in all the regions. However, Africa has been resilient in the face adverse challenges such as domestic conflict, worldwide headwinds, and internal supply shocks. Thus, Africa has experienced robust economical growth over the past decade. Africa’s fiscal growth has drastically increased over the past decade. This robust economic growth has seen the continent become a hub of new commercial vibrancy. Figure 1.0 below illustrates Africa’s GDP trends between the years 2001 and 2012, with projections for 2013-2014. The figure illustrates an average growth of Africa’s economic performance since the year 2001, averaging above 5%. It also approximates the...
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...Miracle or Mirage? pg. 1 The New Growth Path: Miracle or Mirage? The South African government has embarked on a series of economic programmes to achieve job growth and redistribution goals. The New Growth Path is the latest: it sets an ambitious target of creating five million jobs by 2020. The Path contains some good dimensions, but remains largely a set of slogans: “green economy;” “knowledge based economy.” It raises some scepticism as far as its workability unless some targeted policies are identified, prioritized and followed through including coordinated monetary and fiscal policies, skilled workforce development, and targeted sector development. Precisely how important the various elements are is not detailed. South Africa: the Unemployment, Inequality and Poverty Challenge South Africa’s unemployment rate is one of the highest in the world: according to the International Labour Organization, which adopts a narrow definition of unemployment being “decent work”, in 2006 South Africa’s unemployment rate was over 25%, close to double the highest unemployment rate of middle income economies which is Poland (13.8%) and much higher than many of its Latin American comparators such as Chile, Mexico and Argentina (ILO, 2008). Also noteworthy is that these unemployment rates differ greatly by age: the unemployment rate of African youth (15-34 years) stood at 52.7% in 2010 (Dimant et al., 2010). South Africa also registered an increase of income inequality as the Gini coefficient...
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...The country of South Africa, of the Republic of South Africa officially, is appropriately the southern most country on the African continent. South Africa prominently shares borders with Namibia, Botswana, Zimbabwe, Mozambique and Swaziland. The country also is unique in the fact that is completely surrounds the landlocked Lesotho kingdom. South Africa also has the advantage of having almost thirteen hundred miles of coastline on the Atlantic and Indian oceans. While just over half the size of Africa’s largest country, Algeria, South Africa is the 25th largest country in the world by land area, which equates to just under what would be two of Texas. The country also has a large population of approximately 55 million, which ranks them at...
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...right and Liberia from southeast as well as the Atlantic Ocean. Formerly, the colony was control by the Sierra Leone Company in 1792, until it became a British colony in 1808. Independence came in April 1961, when Sierra Leone opted for a parliamentary system within the British Commonwealth. Sierra Leone Peoples Party led by Sir Milton's of the led helped the country gain independence and the first general election under universal adult franchise in May 1962. In present day, The total area of Sierra Leone covers 71,740 km, with an estimated population of 5.4 to 6.4 million, growing at rate of about 2.6 percent per annum. Over two-thirds of the population lives in absolute poverty. Rural life, with the exception of the diamond and gold mining areas, is generally at a subsistence level. The average Life expectancy is very low, estimated at 42 years; and infant mortality is among the highest in the world, also primary school enrollment is among the lowest in Africa. Although Sierra Leone is blessed with abundant rainfall, substantial mineral resources, some fertile soils, and extensive marine fisheries, Sierra Leone is classified as one of the poorest and least developed countries in the world. Sierra Leone has good relations with the West, including the United States and has maintained historical ties with the United Kingdom and other former British colonies through membership of the Commonwealth of Nations. The United Kingdom has played a major role in providing aid to the former...
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...forecasts a growth of 6.6% in 2010.This forecast is based on improving outputs of the mining, agriculture and tourism sectors. The article highlights that the previous forecast of 5.8% in June was as a result of sluggish global recovery. Furthermore previous forecasts of 7% were dismissed as a result of overall budget deficits resulting from increased spending on infrastructure and the social sector. Lastly the Finance minister reiterates that inflation rate forecasts still remain at 8% for 2010 and also explains that the strong kwacha (currency of Zambia) will help contain inflation. Zambia is a land locked English speaking Eastern African country which has Lusaka as its capital and shares borders with Malawi, D.R Congo Mozambique, Zimbabwe and Angola just to name a few. Zambia has a population of approximately 12.9 million spending the kwacha and enjoys a GDP per capita of $1144.3. Most citizens engage in agriculture for a livelihood. These agricultural products include maize, sunflower seeds; coffee, livestock and sorghum just to mention a few. Nevertheless, agriculture does not form a major percentage of Zambia’s exports. Zambia’s main exports include copper, tobacco, maize and cotton. Zambia also imports copper ores, petroleum oils, machinery and vehicles to enhance production and transport of goods and services. Zambia’s leading trade partners include China, Switzerland, South Africa and Democratic Republic of Congo. Some prominent and revenue generating tourist...
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...Consultancy Report—South Africa Executive Summary Crates-for-car is a manufacturing company which is producing wooden boxes for cars, this company is located in north of UK and 150 employees working for the head office. Currently, the company has five manufacturing branch located in South of England, around 75 workers employed in each branch. Recently, the company decided to increase its operations in other country, which would in the same size of plants this company already possess currently, South Africa is involved in the company’s extending plan. The responsibility of the HR Office is producing a consultancy report. This consultancy report will evaluate the situation in South Africa from various aspects to help this plan. This report is made up of six parts. Firstly, this report will introduce the general information of South Africa include economy, population; Then, this report focusing on the current political situation in South Africa and analyze the specific political environment which could related to establishing a operation in this country; Thirdly, in order to gain the correct information of local labor market, this report will elaborate the informal sector work in South Africa from the aspects of legal recognition, wages and protection; In the fourth part of this report, the employment legislation in South Africa and the government policy linked to the disability discrimination will be covered in this part; The subsequent paragraph will analyze the skill...
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