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Begin New Search Topic Development Political Geography South Africa Content Type Working Paper

1. South Africa: When Strong Institutions and Massive Inequalities Collide

Author:
Brian Levy, Alan Hirsch, Vinothan Naidoo, and Musa Nxele
Publication Date:
03-2021
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
South Africa's economic and social imbalances can no longer be swept under the rug. The country has three choices: muddle through, endure another surge of ethnopopulism, or pursue inclusive development. South Africa was one of the 1990s iconic cases of democratization. Yet starting in the mid-2000s, the country began to experience a disruptive collision between its strong political institutions and massive economic inequality. The collision intensified across the 2010s, resulting in economic stagnation and increasing threats to institutional integrity. Understanding why this collision occurred and worsened over time is relevant not just for other middle-income countries but also many higher-income democracies wrestling with similar tensions between a declining tolerance for high or rising inequality and institutions that seemed strong in the past but find their legitimacy increasingly being questioned. Ideally, ideas, institutions, and growth all reinforce one another in a virtuous developmental spiral. Ideas offer hope by encouraging cooperation and the pursuit of opportunities for win-win gains. Institutions assure that the bargains underpinning cooperation will be monitored and enforced. Together, ideas and institutions provide credible commitment, which fuels economic growth. However, such a benign scenario does not reckon with the ways in which persistent high inequality, accompanied by unresolved tensions between the distribution of economic and political power, can both put pressure on institutions and quickly change hope into anger. The result can be a cascading set of pressures and an accelerating downward spiral. For the first fifteen years of democracy, South Africa enjoyed the advantages of both effective institutions and a shared willingness of stakeholders believed in the power of cooperation. This enabled the country to move beyond counterproductive conflict and pursue win-win outcomes. Growth began to accelerate, which created new opportunities for expanding the middle class. Increased fiscal space made it possible to broaden access to public services and to social grants, which reduced absolute poverty. There were, however, some stark limitations in what was achieved. Gains for the poorest did little to alter their difficult economic and social realities. Less than a quarter of the total population, including essentially all white South Africans, enjoyed a standard of living that was middle class or better. There was ample reason for the majority of South Africans to feel that, notwithstanding the promises of mutual benefit, the deck remained stacked against them. This increased the vulnerability of South Africa’s political settlement.
Topic:
Development, Inequality, and Institutions
Political Geography:
South Africa and Africa

2. Crime, inequality and subsidized housing: evidence from South Africa

Author:
Roxana Elena Manea, Patrizio Piraino, and Martina Viarengo
Publication Date:
05-2021
Content Type:
Working Paper
Institution:
Centre for Trade and Economic Integration, The Graduate Institute (IHEID)
Abstract:
We study the relationship between housing inequality and crime in South Africa. We create a novel panel dataset combining information on crimes at the police station level with census data. We find that housing inequality explains a significant share of the variation in both property and violent crimes, net of spillover effects, time and district fixed effects. An increase of one standard deviation in housing inequality explains between 9 and 13 percent of crime increases. Additionally, we suggest that a prominent post-apartheid housing program for low-income South Africans helped to reduce inequality and violent crimes. Together, these findings suggest the important role that equality in housing conditions can play in the reduction of crime in an emerging economy context.
Topic:
Crime, Development, Inequality, and Housing
Political Geography:
Africa and South Africa

3. Social Innovation and Higher Education in the BRICS (1): a background overview

Author:
Paula R. Cruz, Victor Rebourseau, and Alyssa Luisi
Publication Date:
04-2018
Content Type:
Working Paper
Institution:
BRICS Policy Center
Abstract:
This working paper results from the first phase of the research project on “Social Innovation and Higher Education in the BRICS” conducted by the Research Group on Innovation Systems and Development Governance at the BRICS Policy Center. This research aims to contribute to both the advancement of the scholarly debate on the engagement of HEIs in social innovation initiatives, and the promotion of more inclusive and sustainable development policies in the Global South, particularly in the BRICS.
Topic:
Development, Education, Governance, Innovation, and Higher Education
Political Geography:
Russia, China, India, South Africa, and Brazil

4. Social Innovation and Higher Education in the BRICS (2): a multiscalar governance approach with evidence from DESIS Labs

Author:
Paula R. Cruz, Alyssa Luisi, and Victor Rebourseau
Publication Date:
04-2018
Content Type:
Working Paper
Institution:
BRICS Policy Center
Abstract:
This is the second working paper resulting from the first phase of the research project on “Social Innovation and Higher Education in the BRICS” conducted by the Research Group on Innovation Systems and Development Governance at the BRICS Policy Center. It aims to provide evidence on the ways in which social innovation labs in HEIs in the BRICS countries may operate within a complex, multiscalar governance mode, which a number of local-, national-, and international or transnational level stakeholders participate in.
Topic:
Development, Education, Governance, and Higher Education
Political Geography:
Russia, China, India, South Africa, and Brazil

5. Beyond Elitism: The Possibilities of Labour-Centred Development

Author:
Benjamin Selwyn
Publication Date:
04-2016
Content Type:
Working Paper
Institution:
Centre for Global Political Economy, University of Sussex
Abstract:
This article outlines the theory and practice of Labour Centred Development (LCD). Much development thinking is elitist, positing states and corporations as primary agents in the development process. This article argues, by contrast, that collective actions by labouring classes can generate tangible developmental gains, and therefore, that under certain circumstances they can be considered primary development actors. Examples of LCD discussed here include shack-dweller’s movements in South Africa, the landless labourer’s movement in Brazil, unemployed worker’s movements in Argentina and large-scale collective actions by formal sector workers across East Asia. The article also considers future prospects for LCD.
Topic:
Development, Economics, International Political Economy, Labor Issues, and International Development
Political Geography:
East Asia, South Africa, Brazil, and Argentina

6. Rising Democracies and the Arab Awakening: Implications for Global Democracy and Human Rights

Author:
Ted Piccone and Emily Alinikoff
Publication Date:
01-2012
Content Type:
Working Paper
Institution:
Center on International Cooperation
Abstract:
As the emerging global order takes shape, debate is growing more intense around the trajectory of the rising powers and what their ascendency to positions of regional and international influence means for the United States, its traditional allies, and global governance more broadly. Commentary about these rising powers— often referred to in a generic way as the BRICS (Brazil, Russia, India, China, South Africa) but actually encompassing a dozen or so countries largely represented in the G-20—ranges from alarmist to sanguine. Pessimists argue that China, with its impressive economic growth and increasingly global reach, is well-positioned to challenge the United States' role of global superpower and to weaken the commitment of other rising powers, and various international organizations, to liberal values. More optimistic analysts insist that the rise of middle powers, most of which are democracies of varying stripes, bodes well for the world: millions are being lifted out of poverty, rule of law is taking hold and the international system is bound to be a more inclusive, representative one.
Topic:
Democratization, Development, Economics, Globalization, Human Rights, International Trade and Finance, Markets, Poverty, and Governance
Political Geography:
Russia, United States, China, India, South Africa, Brazil, and Arabia

7. The New Global Health Agenda: Universal Health Coverage

Author:
Laurie Garrett, Yanzhong Huang, Oren Ahoobim, Daniel Altman, and Vicky Hausman
Publication Date:
04-2012
Content Type:
Working Paper
Institution:
Council on Foreign Relations
Abstract:
It might seem hard to believe, but just as the world is recovering from the most serious financial shock since World War II, governments around the world are engaging in serious discussions about how to expand health coverage.
Topic:
Development, Emerging Markets, Health, Human Welfare, and Law
Political Geography:
South Africa

8. New Approaches to Global Health Cooperation: Perspectives from Brazil

Author:
Katherine E. Bliss, Paulo Buss, and Felix Rosenberg
Publication Date:
09-2012
Content Type:
Working Paper
Institution:
Center for Strategic and International Studies
Abstract:
On November 7, 2011, the Global Health Policy Center of the Center for Strategic and International Studies (CSIS) in Washington, D.C., in partnership with the Fiocruz Center for Global Health (CRIS) in Rio de Janeiro, Brazil, hosted a seminar entitled “New Approaches to Global Health Cooperation.” The event, which took place in Rio de Janeiro, assembled health policy researchers and practitioners from Brazil, Europe, the United States, and sub - Saharan Africa to examine emerging practices in global health co operation. Issues considered included the factors driving greater international engagement on public health challenges, the growing trend of trilateral cooperation, and the role of the BRICS (Brazil, Russia, India, China, and South Africa) and South - South activities in expanding international cooperation on global health. Over the course of the day - long meeting, speakers and audience members examined the reasons for the overall expansion of funding and programming for overseas global health activities durin g the past decade; considered the factors that underpin Brazil's increasing focus on global health as an area of bilateral and multilateral outreach; reviewed the characteristics of successful trilateral cooperation efforts; and debated the future of multi country engagement on health.
Topic:
Development, Emerging Markets, Health, and Health Care Policy
Political Geography:
Africa, Russia, United States, China, Europe, Washington, India, South Africa, Brazil, and Latin America

9. Resources, risk and resilience: scarcity and climate change in Ethiopia

Author:
Alex Evans
Publication Date:
08-2012
Content Type:
Working Paper
Institution:
Center on International Cooperation
Abstract:
Ethiopia's resource scarcity context presents a daunting challenge, but also a significant opportunity. The country's current scarcity context includes: Low agricultural yields and farm sizes: Even if farm productivity were to increase by a factor of three, the average farm would still not produce enough food for a family of five. With 83% of Ethiopia's people directly dependent on agriculture for their livelihoods, the country has a major food security challenge; 7.5 million people depend on food safety nets. Major exposure to drought: Ethiopia has erratic rainfall, and acutely limited water storage capacity: the country has only 43m3 of reservoir storage per person, compared to 750m3 in South Africa and 6,150m3 in North America. Levels of irrigation are also low: the World Bank estimates that only 5% of irrigable land in Ethiopia is actually irrigated. Limited access to energy: Ethiopia's total primary energy supply is less than 60% of the African average, and only just over a fifth of the global average. The country depends on waste and biomass for 90 of its energy needs – leading to consequences including deforestation, and soil degradation as a result of biomass not being returned to the soil. High dependence on imported oil and food: Ethiopia currently imports all of its liquid fuels and a significant proportion of its food. This creates major exposure to global commodity price volatility, with the attendant risk of balance of payments problems, inflation and outright supply interruptions.
Topic:
Agriculture, Climate Change, Development, Economics, Poverty, Natural Resources, and Food
Political Geography:
Africa, South Africa, North America, and Ethiopia

10. SACU Revenue Sharing Formula: Towards a Development Agreement

Author:
Masedi Motswapong and Roman Grynberg
Publication Date:
07-2012
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
The South African Customs Union (SACU) Revenue Sharing Formula (RSF) has been revised substantively twice; once in 1969 and in 1994-2002 since the creation of the customs union in 1910 and each time the changes in the treaty were a reflection of the historic changes occurring in Southern Africa. The apartheid regime created a RSF that served to increase the share of revenue of Botswana, Lesotho and Swaziland (BLS), leaving the South African share as a residual of revenues. As this made South Africa a residual claimant it was unsustainable and required reform in the post-apartheid era. The 2002 formula increased the share to the Botswana, Lesotho, Namibia and Swaziland (BNLS) and removed South Africa as a residual claimant but did not change the fundamental economic relationship between members. While the International Monetary Fund (IMF) supports orthodox fiscal adjustment imbalances this paper argues that the order of magnitude makes those adjustment implausible and a new political arrangement is needed between South Africa and Lesotho and Swaziland to create a viable way forward for Southern African Development Community (SADC). It is argued that even in the case of Botswana and Namibia a new developmental formula, based on investing SACU revenues for regional and national development projects is needed to relieve those countries that have suffered the effects of polarization.
Topic:
Development, Regional Cooperation, Regional Integration, Economic Development, Integration, and Economic Cooperation
Political Geography:
Africa, South Africa, and Botswana

11. The Post-Washington Consensus: Development after the Crisis

Author:
Francis Fukuyama and Nancy Birdsall
Publication Date:
03-2011
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
A clear shift in the development agenda is underway. Traditionally, an agenda generated in the developed world was implemented in—and, indeed, often imposed on—the developing world. The United States, Europe, and Japan will continue to be significant sources of economic resources and ideas, but the emerging markets will become significant players. Countries such as Brazil, China, India, and South Africa will be both donors and recipients of resources for development and of best practices for how to use them. In fact, development has never been something that the rich bestowed on the poor but rather something the poor achieved for themselves. It appears that the Western powers are finally waking up to this truth in light of a financial crisis that, for them, is by no means over.
Topic:
Development, Economics, Emerging Markets, Poverty, and Foreign Aid
Political Geography:
United States, Japan, China, Europe, India, South Africa, and Brazil

12. Looking for Help: Will Rising Democracies Become International Democracy Supporters?

Author:
Thomas Carothers and Richard Youngs
Publication Date:
06-2011
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
The emergence of a multipolar world gives Western democracy advocates cause for both optimism and anxiety. China's success sparks fears of the spread of an autocratic development model. Yet democratic states such as Brazil, Indonesia, India, South Africa, and Turkey are also gaining ground. These countries serve as powerful examples of the universal appeal of democracy and possess unique experiences with democratization. The United States and Europe understandably hope that rising democracies will use their growing prominence to defend democratic values abroad, potentially revitalizing international democracy support.
Topic:
Democratization, Development, Human Rights, and International Trade and Finance
Political Geography:
United States, China, Indonesia, Turkey, India, South Africa, and Brazil

13. Criss-Crossing Globalization: Uphill Flows of Skill-Intensive Goods and Foreign Direct Investment

Author:
Arvind Subramanian and Aaditya Mattoo
Publication Date:
08-2009
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
This paper documents an unusual and possibly significant phenomenon: the export of skills, embodied in goods, services or capital from poorer to richer countries. We first present a set of stylized facts. Using a measure which combines the sophistication of a country's exports with the average income level of destination countries, we show that the performance of a number of developing countries, notably China, Mexico and South Africa, matches that of much more advanced countries, such as Japan, Spain and USA. Creating a new combined dataset on FDI (covering greenfield investment as well as mergers and acquisitions) we show that flows of FDI to OECD countries from developing countries like Brazil, India, Malaysia and South Africa as a share of their GDP, are as large as flows from countries like Japan, Korea and the US. Then, taking the work of Hausmann et al (2007) as a point of departure, we suggest that it is not just the composition of exports but their destination that matters. In both cross-sectional and panel regressions, with a range of controls, we find that a measure of uphill flows of sophisticated goods is significantly associated with better growth performance. These results suggest the need for a deeper analysis of whether development benefits might derive not from deifying comparative advantage but from defying it.
Topic:
Development, Economics, International Trade and Finance, and Foreign Direct Investment
Political Geography:
United States, Japan, Malaysia, India, South Africa, Brazil, Spain, and Korea

14. Climate Change, Development and Energy Problems in South Africa: Another World is Possible

Publication Date:
02-2009
Content Type:
Working Paper
Institution:
Oxfam Publishing
Abstract:
In climate terms, South Africa is already living on the edge. Much of it is arid or semi-arid and the whole country is subject to droughts and floods. Even small variations in rainfall or temperatures would exacerbate this already stressed environment. Most South African crops are grown in areas that are only just climatically suitable and with limited water supplies.
Topic:
Climate Change, Development, and Energy Policy
Political Geography:
Africa and South Africa

15. Measuring the Vulnerability of Subnational Regions

Author:
Mark McGillivray, Wim Naudé, and Stephanié Rossouw
Publication Date:
05-2008
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
A small but growing literature has been concerned about the economic (and environmental) vulnerability on the level of countries. Less attention is paid to the economic vulnerability of different regions within countries. By focusing on the vulnerability of subnational regions, our paper contributes to the small literature on the 'vulnerability of place'. We see the vulnerability of place as being due to vulnerability in various domains, such as economic vulnerability, vulnerability of environment, and governance, demographic and health fragilities. We use a subnational dataset on 354 magisterial districts from South Africa, recognize the potential relevance of measuring vulnerability on a subnational level, and construct a local vulnerability index (LVI) for the various districts. We condition this index on district per capita income and term this a vulnerability intervention index (VII) interpreting this as an indicator of where higher income per capita, often seen in the literature as a measure of resilience, will in itself be unlikely to reduce vulnerability.
Topic:
Security, Demographics, Development, and Economics
Political Geography:
Africa and South Africa

16. Southern Africa: Threats and Capabilities

Author:
Gavin Cawthra
Publication Date:
11-2008
Content Type:
Working Paper
Institution:
International Peace Institute
Abstract:
The southern African region is now generally defined in political terms as those countries that are members of the Southern African Development Community (SADC) (the geographic definition is usually somewhat more limited). Currently there are fifteen member states of the SADC: Angola, Botswana, the Democratic Republic of the Congo (DRC), Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, the Seychelles, South Africa, Swaziland, Tanzania, Zambia, and Zimbabwe.
Topic:
Development, Peace Studies, and Poverty
Political Geography:
Africa, South Africa, Mozambique, Tanzania, Zambia, and Swaziland

17. Olimpiadas y Copa Mundial de Fútbol: ¿Competencias deportivas o instrumentos políticos?

Author:
Karina Garcia
Publication Date:
10-2007
Content Type:
Working Paper
Institution:
CONfines de Relaciones Internacionales y Ciencia Política
Abstract:
This paper analyzes the setting of the Olympic Games and the FIFA World Cup employing a geopolitical approach. To identify in which way these international sports events are geopolitical instruments of the International System, I present a revision of different elements involved in the selection of China and South Africa as respective hosts of the Olympic Games of 2008 and the World Cup of 2010, such as the motives, goals and possible benefits of these two countries. In this way, I sustain the thesis that the Olympic Games and the World Cup are political instruments used by the States to pursue their geopolitical interests.
Topic:
International Relations, Development, and Politics
Political Geography:
China, Asia, and South Africa

18. Small Arms and Light Weapons: Towards Global Public Policy

Author:
Keith Krause
Publication Date:
03-2007
Content Type:
Working Paper
Institution:
International Peace Institute
Abstract:
Small arms and light weapons kill at least 300,000 people a year, in both conflict and non-conflict situations, and injure or disable thousands more. Small arms are the weapons of choice of warring parties— government armies, paramilitaries, rebel forces, or even terrorists—and in recent wars they account for between 60 and 90 percent of direct conflict deaths, depending on the nature and intensity of the fighting. In non-war settings small arms represent one of the leading causes of preventable death, and a major cause of mortality for young men—through, for example, armed violence, suicides, murders, and accidents. 1 In Rio de Janeiro the gun violence death rate is comparable to that of some war zones. El Salvador has a firearm death rate of thirty per 100,000, and Colombia suffers a rate of fifty-five per 100,000 people killed by gun violence. 2 The life expectancy of males born in Colombia in 2002 is reduced by more than three years as a result of the risk of armed violence. And in South Africa, homicides are the leading cause of death for males between fifteen and twenty-one years of age. Overall, the global burden of violence and violent conflict is one of the most important external causes of death and injury.
Topic:
International Relations, Arms Control and Proliferation, Development, and Peace Studies
Political Geography:
South Africa and Colombia

19. Credit Elasticities in Less-Developed Economies: Implications for Microcredit

Author:
Dean Karlan and Jonathan Zinman
Publication Date:
01-2007
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
Policymakers often prescribe that microfinance institutions increase interest rates to eliminate reliance on subsidies. This strategy makes sense if the poor are rate insensitive: then microlenders increase profitability (or achieve sustainability) without reducing the poor's access to credit. We test the assumption of price inelastic demand using randomized trials conducted by a consumer lender in South Africa. The demand curves are downward-sloping, and steep for price increases relative to the lender's standard rates. We also find that loan size is far more responsive to changes in loan maturity than to changes in interest rates, which is consistent with binding liquidity constraints.
Topic:
Development, Economics, and Markets
Political Geography:
Africa and South Africa

20. Observing Unobservables: Identifying Information Asymmetries with a Consumer Credit Field Experiment

Author:
Dean Karlan and Jonathan Zinman
Publication Date:
01-2007
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
Information asymmetries are important in theory but difficult to identify in practice. We estimate the presence and importance of adverse selection and moral hazard in a consumer credit market using a new field experiment methodology. We randomized 58,000 direct mail offers issued by a major South African lender along three dimensions: 1) an initial "offer interest rate" featured on a direct mail solicitation; 2) a "contract interest rate" that was revealed only after a borrower agreed to the initial offer rate; and 3) a dynamic repayment incentive that extended preferential pricing on future loans to borrowers who remained in good standing. These three randomizations, combined with complete knowledge of the Lender's information set, permit identification of specific types of private information problems. Our setup distinguishes adverse selection from moral hazard effects on repayment, and thereby generates unique evidence on the existence and magnitudes of specific credit market frictions. We find evidence of moral hazard and weaker evidence for adverse selection. A rough calibration suggests that perhaps 7% to 16% of default is due to asymmetric information problems. Asymmetric information may help explain the prevalence of credit constraints even in a market that specializes in financing high-risk borrowers at very high rates.
Topic:
Civil Society, Development, Markets, and Poverty
Political Geography:
South Africa

21. Expanding Credit Access: Using Randomized Supply Decisions to Estimate the Impacts

Author:
Dean Karlan and Jonathan Zinman
Publication Date:
01-2007
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
Expanding credit access is a key ingredient of development strategies worldwide. Microfinance practitioners, policymakers, and donors have ambitious goals for expanding access, and seek efficient methods for implementing and evaluating expansion. There is less consensus on the role of consumer credit in expansion initiatives. Some microfinance institutions are moving beyond entrepreneurial credit and offering consumer loans. But many practitioners and policymakers are skeptical about “unproductive” lending. These concerns are fueled by academic work highlighting behavioral biases that may induce consumers to overborrow. We estimate the impacts of a consumer credit supply expansion using a field experiment and follow-up data collection. A South African lender relaxed its risk assessment criteria by encouraging its loan officers to approve randomly selected marginal rejected applications. We estimate the resulting impacts using new survey data on borrower behavior and well-being, and administrative data on loan repayment. We find that the marginal loans increased credit access and produced measurable benefits in the form of increased employment, reduced hunger, and reduced poverty. The marginal loans also appear to have been profitable for the lender. The results must be interpreted with caution but suggest that consumer credit expansions can be welfare-improving.
Topic:
Development, Markets, and Poverty
Political Geography:
Africa and South Africa

22. Economic Size Trumps All Else? Lessons from BRICSAM

Author:
Timothy Shaw, Andrew F. Cooper, and Agata Antkiewicz
Publication Date:
12-2006
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation
Abstract:
Continuing CIGI's BRICSAM research, this paper questions whether size (economic or population) of emerging economies alone is enough to warrant accommodation in the rules and structures of the international system. The global realignment of states following the resulting power vacuum brought on by the end of the Cold War is finally materializing, as a new triangular formation has taken shape: the 'first world' club of the OECD; the 'second world' of emerging economies; and, a heterogeneous 'third world' of the rest. The interplay between and mobility among these groups of states deserves in-depth analysis. The core of this paper observes the economic and social trends of countries in the second tier, and their upwards aspirations towards the top-tier of the global architecture. Traced through a variety of indices, the growth of the BRICSAM group of countries (Brazil, Russia, India, China, South Africa, ASEAN-4 and Mexico) is demonstrated to be a powerful force in international economics and political economy. For the inclusion of these states, a change in the key aspects of global economic governance, the international architecture and geopolitics seems inevitable, and with it, new challenges arise for decision-makers and scholars alike.
Topic:
Cold War, Development, Economics, and Globalization
Political Geography:
Russia, China, India, South Africa, Brazil, and Mexico

23. Stadium Architecture and regional economic development: International experience and the plans of Durban

Author:
Wolfgang Maennig
Publication Date:
01-2006
Content Type:
Working Paper
Institution:
Chair for Economic Policy, University of Hamburg
Abstract:
For the FIFA World Cup 2010, South Africa plans to invest heavily. The positive economic effects that the country is hoping for stand in contrast to almost all statistical ex-post studies. This contribution emphasises that these results, usually from research under-taken in the USA, can only be generalised to a limited degree. The density of sports venues in developed countries is so high, that the marginal effects of new stadia are necessarily limited. We also emphasise that stadium design around the world was not hitherto adequately targeted towards positive economic effects. The example of Durban and its plans for a new “iconic” stadium is used to illustrate fundamental principles of stadium design and their embedding in a re-urbanisation process that have to be undertaken in order to consciously achieve positive regional economic effects.
Topic:
Development, Economics, Sports, Architecture, World Cup, Regional Economy, and Soccer
Political Geography:
Africa, South Africa, and Global Focus

24. Understanding South Africa's Economic Puzzles

Author:
Dani Rodrik
Publication Date:
09-2006
Content Type:
Working Paper
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
South Africa has undergone a remarkable transformation since its democratic transition in 1994, but economic growth and employment generation have been disappointing. Most worryingly, unemployment is currently among the highest in the world. While the proximate cause of high unemployment is that prevailing wages levels are too high, the deeper cause lies elsewhere, and is intimately connected to the inability of the South African to generate much growth momentum in the past decade. High unemployment and low growth are both ultimately the result of the shrinkage of the non-mineral tradable sector since the early 1990s. The weakness in particular of export-oriented manufacturing has deprived South Africa from growth opportunities as well as from job creation at the relatively low end of the skill distribution. Econometric analysis identifies the decline in the relative profitability of manufacturing in the 1990s as the most important contributor to the lack of vitality in that sector.
Topic:
International Relations, Development, and International Trade and Finance
Political Geography:
Africa and South Africa

25. South Africa's Export Predicament

Author:
Bailey Klinger and Ricardo Hausmann
Publication Date:
09-2006
Content Type:
Working Paper
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
This paper explores export performance in South Africa over the past 50 years, and concludes that a lagging process of structural transformation is part of the explanation for stagnant exports per capita. Slow structural transformation in South Africa is found to be a consequence of the peripheral nature of South Africa's productive capabilities. We apply new tools to evaluate South Africa's future prospects for structural transformation, as well as to explore the sector al priorities of the DTI's draft industrial strategy. We then discuss policy conclusions, advocating an 'open-architecture' industrial policy where the methods applied herein are but one tool to screen private sector requests for sector-specific coordination and public goods.
Topic:
International Relations, Development, and International Trade and Finance
Political Geography:
Africa and South Africa

26. Estimating the Balance Sheet of the Personal Sector in an Emerging Market Country: South Africa 1975-2003

Author:
Johan Prinsloo, John Muellbauer, and Janine Aron
Publication Date:
09-2006
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Official balance sheet estimates for the household sector are not currently available in South Africa, yet, with the country's well developed financial sector and deep capital markets, asset market channels are likely to be important determinants of aggregate consumer spending and saving, consumer demand for credit and their broad money holdings. The current paper aims to produce comprehensive estimates of household balance sheets for South Africa. The paper draws, where feasible, on best practice from the Office of National Statistics of the UK and assesses the quality of the data sources and suggests areas where additional surveys or improvements in data collection procedures would be helpful to further improve the quality of the balance sheet estimates. Furthermore, quarterly balance sheet measures to 2003 are provided, and linked to quarterly measures. The main balance sheet categories are liquid assets, household debt and various categories of illiquid financial and tangible assets, including pension wealth, directly held shares and bonds, and housing. Revised debt estimates and new estimates of tangible assets for households and unincorporated businesses are provided. The paper describes the trends of the estimates of the household sector's balance sheets and of total net wealth. The paucity of data for developing and emerging market countries is illustrated by means of a survey, and lessons are drawn from the South African research for the compilation of household sector balance sheets.
Topic:
Development, Emerging Markets, and Third World
Political Geography:
Africa, United Kingdom, and South Africa

27. BRICSAM and the Non-WTO

Author:
Agata Antkiewicz and John Whalley
Publication Date:
10-2005
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation
Abstract:
We discuss recent regional trade and economic partnership agreements involving the large population, rapidly growing economies (BRICSAM: Brazil, Russia, China, India, South Africa, ASEAN, and Mexico). Perhaps 50 out of 300 agreements that exist worldwide involve BRICSAM countries; most are recently concluded and will be implemented over the next few years. Along with extensive bilateral investment treaties, mutual recognition agreements, and other country to country (or region) arrangements they are part of what we term the non-WTO. This paper aims to document and characterize the agreements and analyze their possible impacts. Agreements differ in specificity, coverage and content. In some treaties there are detailed and specific commitments, but these also co-exist with seemingly vague commitments and (at times) opaque dispute settlement and enforcement mechanisms. Whether these represent a partial replacement of the World Trade Organization (WTO) process for newly negotiated reciprocity based on global trade liberalization or largely represent diplomatic protocol alongside significant WTO disciplines is the subject of this paper.
Topic:
Development, Economics, and International Trade and Finance
Political Geography:
Russia, China, India, Asia, South Africa, Brazil, and Mexico

28. Does South Africa Suffer from the Fear of Float' Syndrome?An Analysis of the Efficacy and Challenges of a Managed Floating Exchange Rate Regime with Financial Integration'

Author:
Olano Makhubela
Publication Date:
07-2004
Content Type:
Working Paper
Institution:
School of Oriental and African Studies - University of London
Abstract:
The paper examines whether South Africa suffers from a 'fear of float' syndrome. The analysis also covers the efficacy and challenges of a managed floating exchange rate regime. I use time series data, volatility equations and ARCH models to test the volatility of South Africa's exchange rate, interest rate and foreign exchange reserves. Evidence shows that South Africa has volatile interest and exchange rates, but not foreign exchange reserves. Yet, South Africa does not seem to suffer from an extreme and chronic form of 'fear of floating'. South Africa requires financial integration to finance its current account deficits and to complement its low savings rate. Yet, evidence indicates that both capital account openness and foreign exchange control liberalization have no robust impact on growth. The authorities' intervention in the 2001 currency crisis did not help. Hence, I recommend that South Africa should use interest rates early to target both inflation and foreign exchange rates. Challenges remain in the form of relatively high interest rates, volatile capital flows, perceptions, destabilizing speculation, and loopholes in foreign exchange controls.
Topic:
International Relations, Development, Economics, and International Political Economy
Political Geography:
South Africa

29. An Inquiry into Cities and Their Role in Subnational Economic Growth in South Africa

Author:
W.F. Krugell and W.A. Naudé
Publication Date:
01-2004
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
South Africa is characterized by significant inequality in spatial economic activity. Whether future growth and development on a subnational level in South Africa will be such as to reduce this inequality may depend on the economic growth and development of South Africa's largest cities. Our local economic growth empirics show some indications of conditional convergence in output between poorer towns as well as overall between all cities and towns. Between 1990 and 2000 some limited sigma convergence was found but this was driven by declines in the standard deviation of per capita income amongst the poorest quintile of towns. An estimate of conditional beta convergence of 1.2 percent over the period 1990-2000 confirms that overall convergence has been taking place. From an estimation of the determinants of economic growth on a local level, using a dataset on 353 local areas in South Africa between 1990-2000 we found the most significant determinants to be stocks of human capital and distance from harbours and markets. The effect of human capital on economic growth was strongly associated with the presence of large cities, as one would predict from endogenous growth theory.
Topic:
Demographics, Development, and Economics
Political Geography:
Africa and South Africa

30. CERI: Municipalities in South Africa: A Shifting-Pole Autonomisation

Author:
Ivan Crouzel
Publication Date:
04-2003
Content Type:
Working Paper
Institution:
Centre d'Etudes et de Recherches Internationales
Abstract:
In South Africa, the transition negotiated in order to build a post-apartheid political order has brought about a deep-seated transformation of the state. A central issue of this radical reform had to do with the territorial arrangement of the new state. Constitutional negotiations resulted in a hybrid federal type of system that distinctly reinforced the power of local government, particularly to counterbalance that of the nine provinces. At the same time, a smoother form of intergovernmental relations was introduced with the concept of "cooperative government." In contrast to the centralized system that held sway under apartheid, local government has been strengthened by a new constitutional status, which in particular guarantees an "equitable share" of the national revenue. It also ensures that municipalities are represented nationally through intergovernmental structures involving the participation of local governments.
Topic:
Development, Government, and Treaties and Agreements
Political Geography:
Africa and South Africa

31. Producing an Improved Geographic Profile of Poverty: Methodology and Evidence from Three Developing Countries

Author:
Chris Elbers, Peter Lanjouw, Johan Mistiaen, Gabriel Demombynes, Jenny Lanjouw, and Berk Özler
Publication Date:
03-2002
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper implements a methodology for estimating poverty in Ecuador, Madagascar and South Africa, at levels of disaggregation that to date have not generally been available. The methodology is based on a statistical procedure to combine household survey data with population census data, imputing into the latter a measure of per capita consumption from the former. The countries are very unlike each other—with different geographies, stages of development, quality and types of data, and so on. Yet the paper demonstrates that in all three countries the poverty estimates produced from census data are both plausible (in that they match well stratum-level estimates calculated directly from the household surveys) and satisfactorily precise (at a level of disaggregation far below that allowed by household surveys).
Topic:
Development, Economics, Government, and International Trade and Finance
Political Geography:
South Africa

32. The Coming Apathy: Africa Policy Under a Bush Administration

Author:
Salih Booker
Publication Date:
12-2000
Content Type:
Working Paper
Institution:
Africa Policy Information Center
Abstract:
"There's got to be priorities," George W. Bush responded when asked about Africa in the second presidential campaign debate. Africa did not make his short list: the Middle East, Europe, the Far East, and the Americas. A Bush presidency portends a return to the blatantly anti-African policies of the Reagan-Bush years, characterized by a general disregard for black people and a perception of Africa as a social welfare case. Vice President Dick Cheney is widely expected to steer the younger Bush on most policy matters especially foreign affairs. Cheney's perspective on Africa in the 1980s was epitomized by his 1986 vote in favor of keeping Nelson Mandela in prison and his consistent opposition to sanctions against apartheid South Africa.
Topic:
Foreign Policy, Development, and Human Welfare
Political Geography:
Africa, United States, and South Africa