Economic complexity, FDI, and industrial policies in Mozambique

Timbe, G., Pinheiro, F. L., Bam, W., Hartmann, D., & De Bruyne, K. (2024). Is natural resource abundance a curse or an opportunity? Economic complexity, FDI, and industrial policies in Mozambique. Resources Policy, 98, 1-14. Article 105326. https://doi.org/10.2139/ssrn.4793284, https://doi.org/10.1016/j.resourpol.2024.105326 --- FLP acknowledges the financial support provided by FCT Portugal under the project UIDB/04152/2020 -- Centro de Investigação em Gestão de Informação (MagIC)/NOVAIMS (https://doi.org/10.54499/UIDB/04152/2020). DH would like to express his gratitude for the financial support of CNPq (406943/2021-4 and 315441/2021-6). The authors are thankful to Diogo Ferraz and the Necode group for the insightful feedback.Recent research has shown that a lack of structural transformation predicates the onset of the resource curse, that is, the notion that resource-rich countries paradoxically have lower growth prospects in the long run. Such structural transformations can be mapped through economic complexity indicators, which have been shown to predict the long-term economic underperformance of countries before it is manifested in lower economic growth rates. Economic complexity thus provides countries with an early warning before the onset of the resource curse. FDI and effective industrial policy have been proposed as potential tools to facilitate diversification and counter the resource curse. Emerging insights from economic complexity can further unpack how FDI and industrial policy impact the resource curse. To illustrate this, we critically evaluate the role that FDI and industrial policy have played in the case of Mozambique. We investigate whether these tools have contributed to circumventing or accelerating the onset of the resource curse in the country. Our empirical results cover a period between 1996 and 2019, showing that FDI mainly focussed on natural resource products in the periphery of the product space with a low to average product complexity index. Moreover, industrial policies have also promoted diversification into some related mining goods and relatively simple activities, such as textiles and agriculture, that would only slightly improve the country's overall complexity but not lead to structural realignment. Neither FDI nor industrial policies have exploited the most promising new industrial opportunities associated with mining activities, which can help master new technological and productive knowledge. Where industrial policy has targeted more complex goods, these have often been unrelated to existing capabilities and consequently been unsuccessful. Hence, despite the economic growth that Mozambique has experienced, it has not been able to improve its industrial structure, which points towards the eventual onset of the resource curse. Based on these observations, we make recommendations on how FDI and industrial policies could be refocused in a smart diversification direction to improve Mozambique's industrial structure in a promising and achievable direction.publishersversionepub_ahead_of_prin

Towards a healthcare performance assessment framework : a review

CITATION: Joubert, B. & Bam, W. 2018. Towards a healthcare performance assessment framework : a review. In SAIIE29 Proceedings, 24-26 October 2018, Spier, Stellenbosch, South Africa.The original publication is available at https://conferences.sun.ac.za/index.php/saiie29/saiie29/schedConf/presentationsImproving health is the fundamental goal of all health systems, and with an evident gap between the potential of the public health system and its performance, bettering the services that provide care is critical to achieving this goal. This gap creates a need to identify and understand what drives performance so as to be able to assess how the potential can be reached. Thus, this research investigates the key inputs into a performance assessment framework and develops a core set of performance dimensions that is inclusive of all the factors that affect performance.https://conferences.sun.ac.za/index.php/saiie29/saiie29/paper/view/3596Publisher's versio

Investigating the sustainability and feasibility of different disposable cups : a coffee shop perspective

CITATION: Vermeulen, C. & Bam, W. G. 2018. Investigating the sustainability and feasibility of different disposable cups : a coffee shop perspective. In SAIIE29 Proceedings, 24-26 October 2018, Spier, Stellenbosch, South Africa.The original publication is available at https://conferences.sun.ac.za/index.php/saiie29/saiie29/schedConf/presentationsENGLISH ABSTRACT: With convenience being a sought-after factor in today's society, disposable coffee cups play a significant role in many people's daily routines. There still, however, appears to be a general confusion in many coffee shop environments regarding optimal waste treatment of disposable coffee cups to minimise their environmental impact. This study thus compares the different disposable coffee cup options that are available to South African coffee shops to determine which options (in terms of different materials) are more environmentally friendly under different conditions, whilst also satisfactorily meeting the requirements of coffee shops and customers.https://conferences.sun.ac.za/index.php/saiie29/saiie29/paper/view/3631Publisher's versio

Industrial policy-making in mineral-rich developing countries

Thesis (PhD)--Stellenbosch University, 2019.ENGLISH ABSTRACT:This dissertation investigates policy-making in mineral-rich developing countries with a focus on policies that seek to promote the value add to mineral products before export (also known as beneficiation policy). Firstly, it explores how mineral value chains may be conceptualised to frame the debate around beneficiation policy and enable a holistic contextualisation of such policy. Secondly, it presents two novel/adapted analytical frameworks that support the appraisal of the potential strategic value of different downstream processing activities. The first framework uses corporate sustainability disclosures to assess the potential triple-bottom line impact of hosting a focal activity within a particular jurisdiction. This framework is applied to the case of platinum in South Africa in order to illustrate how it may be applied. The second framework provides a input-output lens with which to leverage the product space analysis method to determine how difficult it would likely be to target an industry and what the potential capability development and economic growth effects of this industry could be. This framework is applied to the case of steel in South Africa. The case is used to reflect on the optimality of following a downstream linkage-based (beneficiation) industrial policy logic. It is found that a so-called ‘leap-frogging’ approach to policy development may be more optimal. Finally, this dissertation presents a framework to enable the appraisal of the factors driving the location of a particular activity to understand how such an activity could be targeted. This supports the attainment of a first approximation of the cost and feasibility of the required interventions to attain this activity in a mineral-rich developing country. This dissertation therefore contributes towards consolidating and extending the academic literature that has a bearing on improved industrial policy-making in mineral value chains of mineral-rich developing countries. Furthermore, it aims to provide practical tools for policy-makers in order to support improved developmental outcomes. It is also envisioned that the tools and approaches developed in this dissertation could be leveraged far beyond just the mineral related industries which were the focus of this study.AFRIKAANSE OPSOMMING: Hierdie proefskrif ondersoek beleidmaking in mineraal-ryk ontwikkelende lande, met die klem op beleid wat die waarde toevoeging tot minerale produkte voor uitvoer bevorder (ook bekend as veredelingsbeleid). Eerstens word ondersoek hoe minerale waardekettings gekonseptualiseer kan word om die debat rondom veredelingsbeleid te raam en ’n holistiese kontekstualisering van sodanige beleid moontlik te maak. Tweedens, word twee nuwe/aangepaste analitiese raamwerke voorgelê wat die evaluering van die potensiële strategiese waarde van verskillende stroomafverwerkingsaktiwiteite ondersteun. Die eerste raamwerk gebruik korporatiewe volhoubaarheids-openbaarmakings om die potensiële driehoek-impak van ’n fokale aktiwiteit binne ’n bepaalde jurisdiksie te assesseer. Hierdie raamwerk word toegepas op die geval van platinum in Suid-Afrika ten einde te illustreer hoe dit aangewend kan word. Die tweede raamwerk bied ’n inset-uitsetlens vir die aanwending van die produkruimteanalise metode wat dit moontlik maak om te bepaal hoe moeilik dit waarskynlik sal wees om ’n bedryf te teiken en wat die potensiële vermoë ontwikkeling en ekonomiese groei-effekte van hierdie bedryf kan wees. Hierdie raamwerk word toegepas op staal in Suid-Afrika. Die gevallestudie word gebruik om te besin oor die optimaliteit van die volg van ’n stroomafverbindingsgebaseerde, oftewel veredelingsgebaseerde, industriële beleidslogika. Daar word bevind dat ’n sogenaamde ‘padda-sprong’-benadering tot beleidsontwikkeling meer optimaal kan wees. Ten slotte word daar in hierdie proefskrif ’n raamwerk voorgestel vir die evaluering van die faktore wat die ligging van ’n bepaalde aktiwiteit beïnvloed, om sodoende te bepaal hoe so ’n aktiwiteit geteiken kan word. Dit ondersteun die bereiking van ’n eerste benadering van die koste en haalbaarheid van die nodige ingrypings om hierdie aktiwiteit in ’n mineraal-ryk ontwikkelende land te ontwikkel. Hierdie proefskrif dra dus by tot die konsolidering en uitbreiding van die akademiese literatuur wat betrekking het op verbeterde nywerheidsbeleidmaking in minerale waardekettings van mineraal-ryk ontwikkelende lande. Verder is dit daarop gemik om praktiese instrumente vir beleidmakers te verskaf ten einde verbeterde ontwikkelingsuitkomste te ondersteun. Daar word ook beoog dat die gereedskap en benaderings wat in hierdie proefskrif ontwikkel word, ook buite die mineraalverwante bedrywe, wat die fokus van hierdie studie was, aangewend kan word.Doctora

Public-private supply chain integration as a possible means to improve public health supply chains

CITATION: Botes, J., Bam, W. & De Kock, I. 2018. Public-private supply chain integration as a possible means to improve public health supply chains. In SAIIE29 Proceedings, 24-26 October 2018, Spier, Stellenbosch, South Africa.The original publication is available at https://conferences.sun.ac.za/index.php/saiie29/saiie29/schedConf/presentationsStruggling health supply chains and poor health outcomes in developing countries, have highlighted the need to improve these supply chains. A number of different methods have been used to improve health supply chains. However, it has been argued that the results are not sufficient and sustainable, neither do they aim to resolve impending challenges. In this paper, we put forward that public-private supply chain integration may be an important tool towards improving public health supply chains. However, further research is required to establish tools that support the determination to improve the supply chains and it. Moreover, research is required to determine whether improvements can be accomplished, as well as what the impact would be on the health supply chains in specific circumstances.https://conferences.sun.ac.za/index.php/saiie29/saiie29/paper/view/3538Publisher's versio

Development of a health system framework to guide the analysis of innovation adoption in low and middle income countries

CITATION: Leonard, E., De Kock, I. & Bam, W. 2018. Development of a health system framework to guide the analysis of innovation adoption in low and middle income countries. In SAIIE29 Proceedings, 24-26 October 2018, Spier, Stellenbosch, South Africa.The original publication is available at https://conferences.sun.ac.za/index.php/saiie29/saiie29/schedConf/presentationsHealthcare systems face numerous challenges that put strain on the system. This is despite the countless resources that are expended on creating innovative healthcare solutions (ranging from innovative healthcare technologies, organisational innovations to pharmaceutical innovations). The literature on innovation and healthcare has shown that the adoption of innovations in practice within the healthcare system is hindered and limited. There is a need to explore and evaluate the role of the innovation system in South Africa insofar as it impacts the adoption of innovations into the national healthcare system. As a starting point, for assessing innovation adoption into health systems, it is necessary to be able to thoroughly describe a health system. In this paper a consolidated health system framework is developed. The purpose of this framework is to be utilised when developing a healthcare innovation adoption framework, i.e. as an input to the healthcare innovation adoption framework. The methodology used to develop the consolidated health systems framework are the eight phases of Jabareen’s conceptual framework. Jabareen’s framework is a qualitative technique for developing conceptual frameworks. The advantages of using this conceptual framework methodology include its capability to be modified, its flexibility and the focus being placed on understanding, rather than on predictions. The results of this research paper are a consolidated health systems framework which was created by considering existing health system frameworks. The consolidated health systems framework thoroughly describes all aspects of a health system by combining elements from six existing health system frameworks. The elements of the existing frameworks were categorised, integrated and synthesised, as per Jabareen’s methodology, to create a complete view of a health system; which includes health processes, building blocks, intermediate objectives and goals. This paper contributes to the field of health systems engineering by providing an extensive list of existing health system frameworks and by providing a framework that combines the major aspects of a health system to thoroughly and completely describe health systems.https://conferences.sun.ac.za/index.php/saiie29/saiie29/paper/view/3550Publisher's versio

Comparing the sustainable development potential of industries : a role for sustainability disclosures?

Publication of this article was funded by the Stellenbosch University Open Access Fund.CITATION: Du Plessis, J. & Bam, W. 2018. Comparing the Sustainable Development Potential of Industries: A Role for Sustainability Disclosures?, Sustainability, 10(3):878, doi:10.3390/su10030878.The original publication is available at http://www.mdpi.com/journal/sustainabilityGovernments often seek to facilitate sustainable growth through the targeted support of specific industries that are deemed to have considerable sustainable development potential. However, the selection of appropriate sectors generally relies on resource-intensive assessment processes. With the recent flood of sustainability information into the public domain, there appears to exist an opportunity to use this information to improve the efficiency of the initial stages of evaluating target industries. This work investigated the development of a framework that makes use of public sustainability disclosures to rapidly compare industries in terms of their sustainable development potential. The goal was to evaluate whether such a framework could usefully provide a way to prioritize the execution of more in-depth feasibility studies on industries showing superior sustainable development potential. The developed framework was based on the Global Reporting Initiative’s G4 Sustainability Reporting Guidelines and makes use of 18 indicators to compare industries in terms of various triple bottom line considerations. The framework was applied to a case study of the platinum industry in South Africa to establish its usefulness, potential and limitations. The framework facilitated a reasonably holistic, transparent and easily interpretable comparison of industries. However, its consideration of industry fit in the local economy, expected development trends and quantification of indirect economic impacts were found to be areas that could be improved. Some of these concerns might be overcome by the improved availability of public information in the future.Published versio

Development of a decision support system for assessing alternative agriculture land uses : a case study of the Stellenbosch wine region

CITATION: De Villiers, J. M., Bam, W. G. & Van Eeden, J. 2018. Development of a decision support system for assessing ualternative agriculture land uses : a case study of the Stellenbosch wine region. In SAIIE29 Proceedings, 24-26 October 2018, Spier, Stellenbosch, South Africa.The original publication is available at https://conferences.sun.ac.za/index.php/saiie29/saiie29/schedConf/presentationsENGLISH ABSTRACT: The wine industry is accountable for 1.2 percent of the South African GDP. Financial margins of Stellenbosch wine estates have begun to shrink due to factors such as high production costs and increased competition. To be economically sustainable wine estates need to rethink their current business strategy and consider adopting a diversification strategy. This article identifies a holistic set of considerations that decision-makers in this industry need to evaluate when considering pursuing land use alternatives. It also considers how these factors can be used to develop a decision support system (DSS) to guide farmers through the decision-making process.https://conferences.sun.ac.za/index.php/saiie29/saiie29/paper/view/3540Publisher's versio

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

© 2018, © 2018 Informa UK Limited, trading as Taylor & Francis Group. 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.status: publishe

Towards a framework to guide the evaluation of inclusive innovation systems

CITATION: Botha, L., Grobbelaar, S. & Bam, W. 2016. Towards a framework to guide the evaluation of inclusive innovation systems. South African Journal of Industrial Engineering, 27(3):64-78, doi:10.7166/27-3-1632.The original publication is available at http://sajie.journals.ac.zaENGLISH ABSTRACT: Innovation for inclusive development aims not only to produce products and services for ‘base of the pyramid’ (BoP) markets, but also to improve innovative capacity and empower those that form part of the BoP. Although a wide range of actors aim to support innovation for inclusive development, they lack proper methods to assess the impact that these projects have. This paper sets out to identify an appropriate method or approach for evaluating systems change brought about by innovation for inclusive development projects. Based on a systematic literature review, a process-level approach is proposed. This approach is focused on the components within a system and the changes that occur in the system functions.AFRIKAANSE OPSOMMING: Inklusiewe innovasie beoog nie net om produkte en dienste aan die basis van die piramide mark te verskaf nie, maar ook om hul te bemagtig en kapasiteit vir innovasie te verhoog. Innovasie rolspelers streef daarna om inklusiewe innovasie te bevorder, maar daar is ’n tekort aan voldoende metodes wat gebruik kan word om die impak van inklusiewe innovasie projekte te evalueer. Die doel van die studie is om ’n toepaslike metode vir die evaluasie van stelsel veranderinge, wat deur inklusiewe innovasie projekte meegebring is, te identifiseer. ’n Proses-vlak metode, wat fokus op die komponente in ’n stelsel en die veranderinge wat plaasvind in die stelsel se funksies, was voorgestel op grond van ’n sistematiese literatuurstudie.http://sajie.journals.ac.za/pub/article/view/1632Publisher's versio