Blog
Afreekonomics
Pages
Categories
Have changes to transfer duty rates impacted on home ownership?
Posted: April 06, 2018
Linton Reddy and Sarah TruenHome ownership is a goal that most citizens strive for. However, the currently constrained economic environment means that most South Africans will have to wait to own a home. The government can play a role in facilitating this endeavor through a range of fiscal and monetary policy tools. For example, recent amendments to the rate of transfer duties on residential properties may impact on the ability to purchase/finance a home. The evidence, to date, is not particularly promising.
Read ArticleWho is brewing my tea – tea brokers and dominant tea processors?
Posted: April 05, 2018
Mmamoletji Oniccah ThosagoThe Kenyan and South African tea cases show that although competition adjudications are made to protect and promote fair competition among companies, competition authorities also protect and promote fair price setting for the benefit of consumers. Consumers should be protected from paying excessive prices for inferior goods, and should be given the freedom to choose from multiple, high quality and innovative products.
Read ArticleMeasuring Green Growth in South Africa
Posted: February 21, 2018
Samantha MunroDespite South Africa’s efforts in transitioning to a green economy, measuring the success of the transition is hampered by lack of available indicators. While measuring the progress of green growth is not only an issue faced by South Africa, but globally, it is a critically important to enable an assessment of the impact of green policies. The transition towards a green economy is likely to provide growth opportunities, however, there may be trade-offs in terms of realising socio-economic priorities. Clear definitions, robust performance metrics, and adequate data to enable performance measurement are crucial for providing evidence of whether policies have been successful. This is particularly important for South Africa which continues to try and combat unemployment, poverty and equality while simultaneously trying to strive towards environmental sustainability. Read Article
Technological Innovation and the Developmental State: China’s Transition to an Entrepreneurial State?
Posted: January 24, 2018
Stephanie CraigTechnological innovation. The 'source of energy within the economic system which would of itself disrupt any equilibrium that might be obtained' (Friedberg, 2013). Not a new concept by any means, innovation-based growth has traditionally been the objective of the developed, advanced countries of the world. However, in an evolving global landscape marked by the emergence of expansive 'bottom-of-the-pyramid' consumer markets, complex global value chains and the increasing importance of knowledge-based productive sectors - technological innovation has become a vital source of growth for developing countries. Read Article
The Global Push for Pluralism in University Economic Curriculums
Posted: January 24, 2018
Stephanie CraigIn October 2017, I was fortunate enough to travel to Edinburgh, Scotland, to attend the inaugural Festival for New Economic Thinking – a gathering of "organizations and individuals seeking to improve the way economics is taught, studied, and practiced.” Funded by the Institute for New Economic Thinking (INET) and put together by a host of organisations - including the Young Scholars Initiative, The Minskys and Rethinking Economics – this was an economics ‘nerd-fest’ unlike anything I had ever experienced before. Running over two jam-packed days, this gathering really did have an exciting festival atmosphere and offered too many panel debates, presentations, video discussions and key note speakers than one could ever process in such a short space of time.
The Developmental State: What does it mean for South Africa?
Posted: June 13, 2017
Stephanie CraigWithin the realm of governance and growth studies, there are various theories regarding the role of the state in promoting economic growth and supporting development. One particular theory, which is increasingly popular in South Africa, is the so-called ‘developmental state.’ Originating from a description of the South East Asian growth experience, this term generally refers to a country that is committed to using state institutions to drive economic development or bolster the social welfare of their citizens.
Read ArticleElectricity efficiency in South Africa and the dangers of nominal data
Posted: May 29, 2017
Brent CloeteAs a follow-up to an earlier blog that considered the energy efficiency performance of the South African economy from 2000 to 2012, this blog looks at the electricity intensity of the economy from 1995 to 2015. The data not only tells an interesting story, but also highlights the dangers when using nominal data to consider the relationship between variables. Read Article
Taxes and democracy
Posted: May 29, 2017
Sarah TruenWhile the annual admin of filing tax returns is deadly dull, the theory of taxation itself has some interesting side avenues. Its worth exploring these, given the current policy debate around radical economic transformation, and the appealing simplicity of the arguments that we should tax the rich more to transfer wealth to the poor. International and local experience suggests that it is unlikely to be that simple.
When inclusive bank lending becomes harmful to consumers…
Posted: May 29, 2017
Ronald RateiwaWell-functioning financial systems support the functioning of all components of the economy, by facilitating transactions and the flow of resources between deficit and surplus economic units (Mishkin, 2007). A key asset of the South African economy is its well-developed financial systems. However, the regulation of such systems is a complex task, and regulatory failures in financial systems pose large risks for the wider economy. Given these concerns, it is interesting to examine some of the characteristics of the South African financial system, especially as regards consumer indebtedness.
Read ArticleWhat is fair SACU customs compensation to the BLNS?
Posted: May 15, 2017
Yash RamkolowanThere has been slow progress in SACU negotiations, with possible changes to the revenue sharing formula a sticking point. In this context, the "fairness” of the current formula used to distribute SACU’s customs collections is examined. The brief, high level, analysis suggests that the compensation the BLNS receive for loss of tariff policy independence is much larger than what could be considered "fair”. Acceding to this argument may be in the BLNS’ best interest if they wish to have greater influence in SACU’s trade and industrial policy in future.
Read Article
