...The New Growth Path: 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...
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...target credited to municipalities and other sectors and therefore municipalities and other sectors...
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...Introduction South Africa is a country which has had a difficult past and even though it has moved forward from the apartheid era into a democracy, the scars from the past still effect the growth of this country. In order to move forward so that South Africa may prosper a number of programmes have been implemented through the years in the hopes of creating social equality, improving the standard of living for all South Africans and growing our economy so that it can be strong enough to be a part of the global market but more importantly, to support all South Africans. These programmes have the expectation of helping those that were previously disadvantaged as well as ensuring that South Africa improves both economically and socially. RDP (The Reconstruction and development programme) The RDP is a socio-economic policy framework that strives to overcome the effects of the apartheid era and bring about a better future for all South Africans. The document was created by the government in 1994. It aims to bring South Africa forward into a society that embraces its democracy and all the benefits that come with being a democratic state. Due to the negative effects of South Africa’s past, it has led to a great deal of inequality where finances were racially distorted and poverty and degradation were prominent in areas without any wealth in South Africa (Anon., 1994). The segregation that was imposed caused inequality and economic inefficiency as only the wealthy was able to benefit...
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...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 growth of North Africa and Sub-Saharan Africa averaging at 4.5% and 5.6% respectively...
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...Commission (PICC) in April 2012. However, 76% (R58.5 billion) of new infrastructure developments in 2011 came from the private sector (Munshi, 2012). An analysis of the importance of investment and investment rates for economic growth and employment, the relevance of South Africa’s capacity utilisation level and its relationship to businesses’ cash stockpiles, and the government’s New Growth Plan will give an overview of South Africa’s current and future investment level, and its implications for economic prosperity. Public and private investment and increased investment rates are vital for current and future economic growth. An increase in government spending on goods and services and/or a fall in the interest rate causes the aggregate demand curve to shift to the right, which leads to an increase in Real Gross Domestic Product (GDP) (Parkin et al, 2010): Figure 1 (Parkin et al, 2010: pg 615) 615) Workers are hired by firms to enable expanded production, and the unemployment levels decrease. However, there is no guarantee as to the extent of this causal effect, as the relationship between economic growth and job creation has weakened over the past few decades, due to labour regulations and growth in high-skilled areas (Neethling, 2012): Figure 2 (Neethling, 2012) Investment in human capital and physical capital stock can lead to economic growth, with the latter also able to increase the marginal productivity of capital – and often, labour – in the future and prevent...
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...programs. Her experience is not limited to Morocco but extends throughout the Middle East, Europe, the United Kingdom and Canada. Dr. Abou-Zeid talked about some facts about Africa saying that: In 2005-08 Africa’s growth average 6%, Growth of 4.8% in 2010 up from 3% back in 2009. Opportunities are diversified and represents the interest greater than any other developped continent; namely , fast reforms, commodities, agriculture, growing markets & middle class. The ADB strategy sectorial emphasis : Infrastructure, Governance, Private sector development, higher education. ADB is also the first development partner is Morocco. Africa’s recent economic performance states that Africa register interesting growth in the past years due to seriousness after its economic and fiscal crises in the 70’s and 80’s. The implications of financial crisis on Africa had little direct impact of the world financial crisis on African Financial System. However, Africa was more affected by recession. Dr. Abou-Zeid also stated that there was an emerging middle class and that Urbanization is taking place and that 50% of Africans will be living in cities by 2030. There is also an increasing consumer market making people willing to spend money on product they like or need. Africa’s consumer’s spending will reach 14 trillion dollars in 2020. Concerning the labour force, there will be 11...
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...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 arena as well as the...
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...find at least three problems to answer the first question. 3. Give your opinion for solving each of the problems mentioned in second answer. | | Contents Africa is experiencing extraordinary growth 2 Challenges 2 Challenge #1 Education 2 Challenge #2 Unemployment 3 Challenge #3 South Africa's growth path is highly resource intensive and hence unsustainable 4 Solutions 4 Solution # 1 - Improve education form the bottom up 4 Solution # 2 – Address unemployment from a new angle and become More attractive to Global business and entrepreneurship 6 Solution # 3 - Reduce the need for commodities and Invest in technology and entrepreneurship 8 Conclusion 8 Africa is experiencing extraordinary growth, In fact this decade has seen more growth for Africa than any other time in history making it six in the world’s 10 rising economy’s. Life expectancy is improving and HIV rates are down almost 30%. Malaria is also down and despite SA having the highest concentration of HIV in the world, African children born today are increasing their life expectancy one year for every three years over the last a decade. Education rates are increasing 25%, and more young educated man are entering the South African workforce. Yet despite these growth factors South Africa, and the continent of Africa as a whole, is still viewed as an unstable and corrupt environment. While it’s true there is still corruption, poverty and rampant disease throughout the continent...
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...ECONOMICS EXAMINATION GUIDELINES GRADE 12 2014 These guidelines consist of 25 pages. Copyright reserved Please turn over Economics 2 Examination Guidelines DBE/2014 INDEX PAGE 3 1. INTRODUCTION 2. ASSESSMENT IN GRADE 12 2.1 Format of the question papers 2.2 Detail of question papers 4 4 4 3. CONTENT 6 4. CONCLUSION Copyright reserved 25 Please turn over Economics 1. 3 Examination Guidelines DBE/2014 INTRODUCTION The Curriculum and Assessment Policy Statement (CAPS) for Economics outlines the nature and purpose of the subject Economics. This guides the philosophy underlying the teaching and assessment of the subject in Grade 12. The purpose of these Examination Guidelines is to: • • Provide clarity on the depth and scope of the content to be assessed in the Grade 12 National Senior Certificate (NSC) Examination in Economics. Assist teachers to adequately prepare learners for the examinations. This document deals with the final Grade 12 external examinations. It does not deal in any depth with the School-Based Assessment (SBA). This guideline should be read in conjunction with: • • • The National Curriculum Statement (NCS) Curriculum and Assessment Policy Statement (CAPS): Economics The National Protocol of Assessment: An addendum to the policy document, the National Senior Certificate: A qualification at Level 4 on the National Qualifications Framework (NQF), regarding the National Protocol for Assessment (Grades R–12) The national policy pertaining...
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...to the Global Economy 3 Exit Strategy from Policy Stimulus 4 Repair and reform of the financial sector 4 Fiscal Crises and underinvestment in Infrastructure 4 Socio and Political Implications of Unemployment and Private Demand 5 Asset Price Collapse and the risk appetite of investors 5 Return to Previous Growth Path or Not 5 Will the current crises be “DÉJÀ VU ‘” for the world wide economy? 6 Fundamental Changes in Origins & Nature of Economic Activity 6 Global warming / Climate Change: 7 Population Growth: 7 Power shift to the east: 7 Innovation: 7 Economic Activity: 7 Impact of Global Crisis on South Africa’s Growth Outlook 8 Conclusion 8 BIBLIOGRAPHY: 10 STRENGTH OF THE RECOVERY All of the world’s high-income countries returned to positive real GDP growth during the fourth quarter of 2009 and the Economist Intelligence Unit’s forecasts for 2010 indicate a return to marginally below the growth trajectory that was achieved prior to the recession. Developed Countries: UNITED STATES Economic recovery in the US has been remarkably strong, with fourth quarter real GDP growth of almost 6% suggesting the presence of a “V”-shaped trend. Further, news emanating from recently published official data includes a recovery of private sector investment in capital formation, particularly on information technology software and machinery & equipment. A recovery of growth in labour markets has also been reported, with the Federal Reserve latest economic overview describing...
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...Introduction 1. regional economic integration and human development 1.1. conceptual linkages 1.1.1 Income 1.1.2 Access to services 1.1.3 Empowerment 1.1.4 Sustainability 1.2. contextual factors 2. the context for African regional integration 2.1. Geographical fragmentation 2.2. capacities, institutions and domestic policies 2.3. climate, nutrition and health 2.5. the environment and common resources 2.6. Should Africa look outward, inward, or both? 3. Estimating the impact of regional integration in Africa 3.1 Estimating the scope and benefits of integration 3.2 the modeling of integration 3.2.1 the regional, continental and global integration paths i) regional and continental integration paths ii) Global integration paths 3.2.2 the impact on human development i) the impact on poverty ii) the impact on employment iii) the impact on the sector composition of production iv) the impact on factors of production v) the impact on GHG emissions 4. the experience of developing countries with regional integration and human development 4.1 An exploration of ASEAn, cAn and...
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...energy. There are many paths to take in reaching this goal, but I believe South Africa should adopt a similar program as Germany’s Community Wind Power program in order to meet some of its renewable energy goals and needs and solve some of its infrastructure and economic issues. Background of South African Energy Eskom is South Africa’s national power utility, which generates about 95 percent of the electricity in South Africa (U.S. Commercial Service, 2012). Of the total electricity generated in South Africa, 88 percent comes from coal fired power, 6.5 percent comes from a nuclear station, and 2.3 percent comes from hydroelectric and pumped storage schemes (U.S. Commercial Service, 2012). Also, South Africa is crucial to the rest of Africa’s infrastructure, supplying two thirds of Africa’s electricity. In addition to being so crucial to Africa’s infrastructure, South Africa is one of the cheapest electricity producers in the world. The 2009 world economic crisis reduced South Africa’s power supply constraints, but this reduction didn’t last long. In 2010, the electricity demand in the country began to rise again with no sign of slowing down or declining. As a result, the South African government produced The Policy-Adjusted Integrated Resource Plan (IRP2010). The IRP2010 lays out the proposed electricity generation mix for 2010 to 2030 (U.S. Commercial Service, 2012). The plan expects that 70 percent will be done through Eskom and the public sector and that 30 percent will...
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...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 and knowledge level of local labor market and a general cost benefit analysis of establishing a subsidiary in South Africa will be presented in the final part of this report. Introduction South Africa is a developing country at the southern tip of the continent of Africa. The population of this country is around 53 million(Cia.gov, 2016), the most important industries is mining,...
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...University, Zimbabwe. E-mail: matunhuj@msu.ac.zw. Accepted 6 April, 2011 The way states and development specialists rationalize how to commit economic resources to development is influenced, to a greater extent by their level of persuasion towards specific development theories. The discourse assesses the influence of modernization and dependency theories on Africa’s development. The conclusion is that both theories have failed to help develop Africa. The discourse pins hope on the African Renaissance theory of development. Key words: Modernization, dependency, rural underdevelopment, African renaissance. INTRODUCTION Africa houses plentiful economic resources. Paradoxically, the continent languishes in poverty as evidenced by high prevalence of famine, disease and ignorance (Buthelezi, 2007). This presentation attributes the poverty to theories of development because the way society deals with underdevelopment is influenced by development theories. The presentation assesses the effect of modernity and dependency theories on Africa’s development and concludes by recommending the adoption of the African Renaissance theory to Africa’s development. In this presentation, development is viewed as a gradual transition of society to a strong socioeconomic status. In a sense, development entails an improvement in quality of human life. Some of the indicators of a good quality of life are low infant mortality rate and a longer life expectancy. THE MODERNISATION THEORY OF DEVELOPMENT The modernization...
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...economy, through both trade and financial channels, resulted in the country becoming vulnerable to the impact of the global recession, with the economy contracting by 4.7% in 2009. That being said, the economy has now recovered to pre-crisis levels with growth reaching 7% in 2010, shown to be a larger growth than almost all European counterparts. Despite the economic and political expansion in the last 10 years, Turkey’s battle with corruption, unemployment, income inequalities, and the Kurdish problem have been risk factors for any business that considers investing. According to corruption rankings, Turkey was ranked below South Africa, and tied for a spot with Cuba (Transparency International, 2010). Sociopolitical Structure Turkey is a parliamentary democracy with a free market economy. Since legal reforms instituted in 1926, Turkey's judicial system has been based on the Swiss Civil Code, the Italian Penal Code, and the Neuchâtel (Swiss) Code of Civil Procedure. The 1982 Constitution guarantees judicial independence, and prohibits any government agency or individual from interfering with the operations of the courts and judges (Country Studies, 2010). The presence and the systematic implementation of these laws create an open path for Foreign Direct Investments; the intellectual property rights are also in favor of the proprietor. Despite a volatile past that...
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