Can South and Southern Africa become Globally Competitive Economies?

296 Pages·1996·25.355 MB·English

by  Gavin Maasdorp (eds.)

CAN SOUTH AND SOUTHERN AFRICA BECOME
GLOBALLY COMPETITIVE ECONOMIES?
Also by Gavin Maasdorp
FROM SHANTYTOWN TO TOWNSHIP (editor with A. S. B.
Humphreys)
SOUTH AFRICA AND ITS NEIGHBOURS (with R. I. Rotberg, H. S.
Bienen and R. Legvold)
TOWARDS A POST-APARTHEID FUTURE (editor with A. W
Whiteside)
Can South and
Southern Africa become
Globally Competitive
Economies?
Edited by
Gavin Maasdorp
Director and Research Professor
Economic Research Unit
University ofN atal
Durban
First published in Great Britain 1996 by
MACMILLAN PRESS LTD
Houndmills, Basingstoke, Hampshire RG21 6XS
and London
Companies and representatives
throughout the world
A catalogue record for this book is available
from the British Library.
ISBN 978-0-333-65388-3 ISBN 978-1-349-24972-5 (eBook)
DOI 10.1007/978-1-349-24972-5
First published in the United States of America 1996 by
ST. MARTIN'S PRESS, INC.,
Scholarly and Reference Division,
175 Fifth Avenue,
New York, N.Y. 10010
ISBN 978-0-312-16239-9
Library of Congress Cataloging-in-Publication Data
Can South and Southern Africa become globally competitive economies? I
edited by Gavin Maasdorp.
p. em.
Includes bibliographical references and index.
ISBN 978-0-312-16239-9
I. South Africa-Economic policy. 2. Economic forecasting-South
Africa. 3. Africa, Southern-Economic policy. 4. Economic
forecasting-Africa, Southern. 5. Competition, International.
I. Maasdorp, G. G. (Gavin Grant)
HC905.C36 1996
338.968--dc20 96-13147
CIP
Editorial matter, Overview © Gavin Maasdorp, 1996
Text © Macmillan Press Ltd, 1996
All rights reserved. No reproduction, copy or transmission of
this publication may be made without written permission.
No paragraph of this publication may be reproduced, copied or
transmitted save with written permission or in accordance with
the provisions of the Copyright, Designs and Patents Act 1988,
or under the terms of any licence permitting limited copying
issued by the Copyright Licensing Agency, 90 Tottenham Court
Road, London WI P 9HE.
Any person who does any unauthorised act in relation to this
publication may be liable to criminal prosecution and civil
claims for damages.
10 9 8 7 6 5 4 3 2 I
OS 04 03 02 01 00 99 98 97 96
To the staff of the Economic Research Unit
1944-94
Contents
Notes on the Contributors
X
Preface and Acknowledgements xiv
List of Abbreviations xvii
Overview: Avoiding Marginalisation Gavin Maasdorp
PART 1 MARGINALISATION IN THE GLOBAL ECONOMY
1. Why is Africa Marginal in the World Economy?
William Easterly 19
PART 2 REGIONAL AND NATIONAL MARGINALISATION
2. The Changing International Economic System
Peter Robson 33
3. Can Regional Integration Help Southern Africa?
Gavin Maasdorp 45
4. Small Countries within Regional Integration
Michael Matsebula and Vakashile Simelane 53
5. Migration and the Brain Drain
Oliver Saasa 61
PART 3 MARGINALISATION WITHIN COUNTRIES
6. Income Inequality and Poverty in South Africa
Mike McGrath 69
7. Public Expenditure and Poverty in Namibia
Irene Tlhase with Tjiuai Kangueehi 79
8. Provincial Marginalisation: KwaZulu-Natal
Nick Wilkins 85
vii
viii Contents
PART 4 CHOOSING WINNING POLICIES
9. Asian Lessons in Sustainable Development
Seiji Naya 95
10. The Real Exchange Rate and Reserve Management:
Latin America in the 1990s
Felipe Larra{n 107
11. Currency Convertibility and External Reserves
Laurence Clarke 123
12. Internationalisation of Capital Markets
S. Ghon Rhee 137
13. Macroeconomic Policy Lessons from Africa
Anselm London 148
14. Macroeconomics and Marginalisation: the Triumph
of Hope over Experience
Tony Hawkins 159
15. Effective Investment and Competitiveness
Michael Unger 172
16. Improving the Business Environment
Paul Holden 182
17. A voiding Corporate Marginalisation
Millard W. Arnold 196
18. Technology and Unmarginalising
Roger Riddell 204
PART 5 SOME SOUTHERN AFRICAN ISSUES
19. South Africa's Economic Reforms
Merle Holden 221
20. The South African Labour Market
Julian Hofmeyr 231
Contents ix
21. Labour Legislation and the Zimbabwean Economy
Joe Foroma 245
22. Helping Small and Medium Business
Marlene Hesketh 251
23. Health, Education and Productivity
Alan Whiteside 258
Select Bibliography and References 267
Index 276
Notes on the Contributors
Millard W. Arnold is Minister-Counsellor for Commercial Affairs for
the Southern Africa region, US Department of Commerce. He pre
viously served in Botswana and Mozambique as policy adviser to govern
ment and business on private sector development. A graduate of Howard
University, Washington and the University of Notre Dame, Indiana he
has also studied in London.
Laurence Clarke was Deputy Governor of the Bank of Botswana from
1990 to 1995 before becoming Director of the Caribbean Centre for
Monetary Studies at the University of the West Indies, Trinidad. He
held various positions in the World Bank and International Finance
Corporation after graduating from the Universities of Guyana and
Windsor, and obtaining a doctorate at the University of the West Indies.
William Easterly is Principal Economist, Policy Research Department,
World Bank and an Adjunct Professor at the School of Advanced In
ternational Studies, Johns Hopkins University. He obtained a doctorate
from the Massachusetts Institute of Technology, and has served on
missions to various developing countries in Latin America, Africa and
Asia as well as Eastern Europe since joining the World Bank in 1985.
Joe Foroma is Chief Economist, Confederation of Zimbabwe Indus
tries. His previous experience was with the Ministry of Finance and
Zimbank. He holds an honours degree from the University of Zimbabwe.
Tony Hawkins is Professor of Business Studies and Director of the
MBA Programme, University of Zimbabwe. He graduated at the Uni
versity of Zimbabwe and Oxford where he was a Rhodes Scholar. He
was a Fulbright Fellow at Harvard, writes on African business and
economic affairs for the Financial Times (London) and The Economist
Group, and is a Director of the Zimbabwe Investment Centre.
Marlene Hesketh is Senior Manager, Public Sector Finance, Rand
Merchant Bank, Johannesburg. She has also been a lecturer in the
Department of Accounting and Finance, University of Natal, Durban
and visiting lecturer in the Graduate School of Business, University of
X