Policy Reforms and Evolution of Market Structure in an Emerging Economy: The Case of India

Policy reforms have facilitated entry of quite a few transnational corporations (TNC) into Indian industries. This has important implications for the evolution of competitive industrial structure. This article focuses on the issue of the response mechanism of local firms to competition from new entrant TNCs and the possible strategies of TNCs in penetrating the Indian market. It develops a conceptual framework by incorporating elements of intangible assets theory and new institutional economics into a simple sequential entry oligopoly model. This yields interesting insights into qualitative behaviour of firms in the post-reforms period. A few hypotheses drawn from the conceptual framework are empirically tested on the basis of firm level panel data drawn from a set of Indian industries.     

The Stability of M3 Money Demand and Monetary Growth Targets: The Case of South Africa

The main purpose of this article is to determine whether money should continue to play an important role in the formulation of monetary policy in South Africa, even though the monetary policy framework has recently changed to an inflation targeting strategy. Money can continue to play an important role in the formulation of an efficient monetary policy strategy as long as there is a stable money demand function and money contains useful information about future price changes. The paper presents empirical evidence of a constant and structurally stable M3 money demand function for South Africa over the period 1968-97. The analysis further shows that the non-constancies experienced during 1998-99 may only be temporary. Despite evidence of a stable M3 money demand function, the results indicate that M3 money provides little information about future price changes in South Africa and may therefore have lost its usefulness as a reliable indicator for monetary policy. The money stock is endogenous, with prices determining money through the stable M3 money demand function.     

A Dream Deferred: The Microfoundations of Direct Political Action in Pre- and Post-democratisation South Africa

The stability of young democracies may be threatened by persistent protest as the economic legacies of the old autocratic regimes tend to outlive the defunct political structures. This paper seeks to explore the micro-level predictors of protest potential in South Africa before and after the end of apartheid. The results of the cohort analysis reveal that the political consciousness of the anti-apartheid struggle has a lasting effect. The gap between actual income and expected returns to education explains protest potential better than comparison of one's income with that of a reference group. The effect of race on protest potential has diminished over time.     

Private Financing of the Military: A Local Political Economy Approach

In developing countries that are democratizing after military rule, and undergoing liberalizing economic reforms that encourage a shrinking of the state, what missions are the armed forces performing, who funds those missions, who benefits from military services, and why? This article analyzes security provision by the armed forces for paying clients—especially private companies in extractive industries—in accordance with negotiations between clients and commanders of the local military units that directly provide the security. The analysis identifies two paths toward local military–client relations. First, weak state capacity may mean that government control of military finances brought by democratization and economic reform remains limited to the national level, promoting local military–client exchanges. Second, amid minimal government control of military finances, even in the capital city, demand from companies in the powerful extractive industries and from recently endowed subnational governments can encourage local military–client contracting.     

外国党旗党徽纵览——南非

南非非洲人国民大会南非非洲人国民大会(简称“非国大”)成立于1912年1月8日,是南非执政党和第一大党,现任党主席为西里尔·拉马福萨。党旗非国大党旗为黑、绿、金三色长方形旗面,党旗中央印有党徽图案。黑色代表世世代代为自由而战的南非土著民。绿色代表哺育着南非土著民,但曾长期被殖民者和种族隔离政府霸占的土地。金色代表属于所有南非人民的矿产及其他自然资源。     

Improving Industrial Policy Intervention: The Case of Steel in South Africa

We contribute to the lack of tools to support efficient industrial policy-making, especially in the mineral beneficiation policy literature. To address this vacuum, we adapt the product space analysis approach to incorporate an input-output value chain lens. This framework is applied to the case of steel in South Africa to derive novel insights regarding the (in)efficiency of implementing a downstream linkage-based beneficiation policy. Our dynamic analysis approach allows for interactions with the rest of the product space. We find that a ‘leap-frogging’ approach to development within the value chain may be more optimal than a strict beneficiation based industrial policy.     

The Political Economy of Familial Relations: The Japanese State and Families in a Changing Political Economy

This article explores the ongoing negotiation over the boundaries between the world of political economy and families by analysing the reactions and responses of the Japanese government and feminists to changes in the political economy as well as popular patterns of family forming since the 1990s. This negotiation has occurred through the transition in the political economy brought about by globalisation and neo-liberal political reforms, and the re-calibration of family and gender roles has emerged as its primary ground. As a result, Japanese women are being required to make a hasty leap from the Fordist model of family life to a more self-steering idea of the individual. This ineluctably re-calibrates the bio-political arrangement into a more advanced mechanism, while discussion of the ‘ethics of care’ has been left relatively absent. Taking up these issues, this article discusses the implications of a changing political economy on Japanese families.     

The new diplomacy of the South: South Africa,Brazil, India and trilateralism

In the aftermath of 9/11 surely of great significance is the reassertion of the South – North divide as a defining axis of the international system. In this context the emergence of a coterie of Southern countries actively challenging the position and assumptions of the leading states of the North is an especially significant event. The activism on the part of three middle-income developing countries in particular—South Africa, Brazil and India—has resulted in the creation of a ‘trilateralist’ diplomatic partnership, itself a reflection of broader transformations across the developing world in the wake of globalisation. This article will examine the rise of the co-operative strategy known as ‘trilateralism’ by regional leaders within the South. Specifically it will look at the relationship between emerging regional powers in the context of multilateralism, as well as at the formulation and implementation of trilateralism. As with previous co-operative efforts in the developing world, the prospects of success are rooted in overlapping domestic, regional and international influences on South African, Brazilian and Indian foreign policies. The article will conclude with an assessment of these influences over the trilateral agenda.     

Empowering Leadership and Municipal Service Delivery: A Case Study of a Metropolitan Municipality in South Africa

Since municipal service delivery is a challenge facing many municipalities in South Africa, this paper reports on a study conducted among a convenience sample of managers and employees from the Revenue and Customer Relations Management department of a major metropolitan municipality in South Africa, to address the aforementioned problem. The findings reveal that empowering leadership is strongly correlated with employee work effort, performance and improved service delivery. On the practitioners’ side, the important mediating role of employee work effort and employee performance in the “empowering leadership–improved service delivery” relationship in South Africa’s public sector is also highlighted.     

New Institutional Arrangements for Rural Development: The Case of Local Woolgrowers' Associations in the Transkei Area,South Africa

Until recently, smallholder farmers in the Transkei area had very limited access to a profitable market outlet for their wool. In response, the South African wool industry built shearing sheds, managed by a local association that sells directly to the brokers. This article investigates the effect of joint wool marketing through the shearing shed on the farmers' revenue from wool. A three-step regression model of the revenue from wool indicates that the farmers selling through the shearing shed obtain better financial results as compared to those who use alternative channels. This analysis shows how new institutional arrangements may contribute to economic development.     

The Return of Political Risk: Foreign-Owned Banks in Emerging Europe

Political risk—risk that investments are damaged by policy action of authorities—increased during the financial crisis due to controversies about the distribution of accumulated losses among stakeholders. Authorities interconnected by cross-border banks considered unilateral policies that minimised losses for domestic stakeholders at the expense of their foreign counterparts. This is at odds both with the assumption behind financial integration which presumes multilateral responses to cross-border shocks and with the typical definition of political risks that ignores the fact that not only host-country, but also home-country authorities can create such risks. This paper recasts the definition of political risk and reviews instances when political risk materialised within the EU banking market between 2007 and 2011. The analysis reveals that the EU regulatory framework needs to be enhanced to contain resurgent political risks systematically rather than through ad hoc interventions of the EU and international bodies.     

Aid Absorption and Spending in Africa: A Panel Cointegration Approach

This article focuses on the macroeconomic management of large inflows of foreign aid. It investigates the extent to which African countries have coordinated fiscal and macroeconomic responses to aid surges. In practice, we construct a panel dataset to assess the level of aid ‘absorption’ and ‘spending’. This article departs from the recent empirical literature by utilising better measures for aid inflows and by employing cointegration analysis. The empirical short-run results indicate that, on average, Africa's low-income countries have absorbed two-thirds of (grant) aid receipts. This suggests that most of the foreign exchange provided by the aid inflows has been used to finance imports. The other third has been used to build up international reserves, perhaps to protect economies from future external shocks. In the long run, absorption increases but remains below its maximum. Moreover, we also show that aid resources have been fully spent, especially in support of public investment. There is only weak evidence that a share of aid flows have been ‘saved’. Overall, these findings suggest that the macroeconomic management of aid inflows in Africa has been significantly better than often portrayed in comparable exercises. The implication is that African countries will be able to efficiently manage a gradual scaling up in aid resources.     

Emerging Powers and Africa:A Comparison of Modes of Engagement Pursued by China,India and Brazil

The world has seen a relative power shift from the North to the South.The leading emerging states like China have taken up an increasingly commanding role in global economic affairs in response to the trauma experienced by Western industrialized states.Over the last decade and a half emerging powers have made significant inroads into previously the"bastion"of Western political and economic dominance,resulting in a diversifying external actors involved in African economy with much of this interaction bein...     

The Political Economy of Aid and Governance in Cambodia

The impact of massive aid on development and governance has been studied for a decade with mixed results. Using the results of an elite survey on aid and quality of governance based on Kaufmann et al.'s six dimensions (voice and accountability, political stability, government effectiveness, regulatory quality, rule of law, and control of corruption), this article offers a case-study of Cambodia. The country's challenges in light of high aid dependence and ‘Dutch disease’ in the aid sector are elaborated, and disappointing human development outcomes are examined. Despite more than five billion dollars in aid, infant and child mortality and inequality have worsened. Key informants are overwhelmingly in agreement that, save for political stability, aid has not had a positive impact on governance in Cambodia. The failure on control of corruption shows how hard it is for donors to be tough on a country with extreme poverty. On the basis of what has been accomplished to date, however, aid seems unlikely to be able to deliver large improvements in governance and in many ways may even contribute to its further deterioration.