Bringing Pankaj Ghemawat to Africa: Measuring African economic integration

A wealth of literature dealing with trade liberalisation, capital market liberalisation, labour mobility and related issues concerning globalisation asserts that economies that are more integrated with the global economy and, more specifically with their neighbours, tend to enjoy higher sustained levels of growth. Empirical evidence with solid quantitative findings recently conducted by Pankaj Ghemawat has confirmed that more ‘open and connected’ economies display higher rates of economic growth, higher per capita income levels and greater levels of human welfare. Against this backdrop, it is notable that the available evidence – whilst incomplete – suggests that African economies are amongst the least integrated in the world. Given that integration and connectedness matter, and that there are material gaps in the evaluation of integration for African economies, it is important to develop better measures of African economies’ connectedness with their neighbours and with the world, how this connectedness is evolving and establish more comprehensive and robust means of economic integration compared to those historically available. Using Ghemawat’s framework, which measures flows of trade, capital, information and people (TCIP) to determine connectedness, we develop the Visa Africa integration index to provide a more comprehensive and detailed gauge of economic integration for 11 African countries in three clusters: East Africa, West Africa and Southern Africa. The index results suggest that African economies are emerging off a modest base, with some economies demonstrating progressive structural improvements toward higher levels of integration with their respective regions and the world. East Africa, in particular, shows signs of rising connectedness over the survey period. The index also illustrates that some countries are more integrated globally than regionally and vice versa, which is important information for policy makers toward improving deeper and broader integration in their respective regions. The index builds on previous research in the broad area of integration and helps us better understand the challenges and opportunities presented by Africa’s economic changes and some of the implications for economic growth.http://www.sajems.orgam2016Gordon Institute of Business Science (GIBS

Assessing investment rationale : the case of Anglo American Corporation in Latin America

Includes abstract.Includes bibliographical references (p. 148-160).This thesis assesses the investment decisions and investment behaviour of the Anglo American Corporation in Latin America and Africa. It focuses on the question of ‘why’ Anglo chose to invest in Latin America and how it went about choosing one country over another. It is an historical, ideographic study that explores the role of personalities, institutional, political and corporate culture and wider national and regional political criteria in Anglo’s investment decision process

Ensuring that Africa keeps rising : the economic integration imperative

Cyclical factors and the commodities boom have played a big part in Africa’s impressive growth record since 2000. Yet the ‘Africa rising’ narrative is increasingly supported by significant macroeconomic reforms and structural changes that bode well for sustained levels of growth and development. A critical determinant of whether this positive growth trend continues will be the extent of Africa’s economic integration with the rest of the world and within the continent. The TCIP framework – tracking the flow of trade, capital, information and people – developed by Pankaj Ghemawat demonstrates how economic openness and integration facilitate economic growth and socio-economic advancement. However, poor levels of integration, a lack of understanding and the data deficit that measure these flows have left Africa out of these empirical studies. In this article, data from traditional sources together with the TCIP framework provide insights into the state, nature and contribution of these flows in Africa. In addition, a look at proprietary data from Visa further elucidates the changes and opportunities presented by Africa’s economic integration.http://www.tandfonline.com/loi/rsaj202016-10-31hb2016Gordon Institute of Business Science (GIBS

Social challenges and progress in IBSA

The India Brazil South Africa (IBSA) Dialogue Forum was launched in June 2003 to push for these countries’ bids for a place on the United Nation’ Security Council, but IBSA’s attention has shifted over time towards development and economic reform. This article discusses the progress in addressing social development challenges within the member countries of IBSA. It examines the social achievements of IBSA members, in the context of their economic performance and the Millennium Development Goals. It also assesses the forces which propel these societies’ social policies, especially the influence of civil society, and whether there has been benefit in this regard in their collaboration within the IBSA forum. Their experiences show the critical importance of civil society in design and execution of programmes directed towards the poor, an important factor to be kept in mind by multilateral and bilateral agencies involved in poverty alleviation projects in developing countries. The three nations could cooperate to share ideas for effective social welfare programmes, and join together in multilateral forums to form a powerful voice for change.http://www.tandfonline.com/loi/rsaj20hb2016Gordon Institute of Business Science (GIBS

Understanding Brazil's new drive for Africa

Following a period of some distancing through the 1980s and 1990s, Brazil has made a concerted effort to engage with Africa. Today, under the leadership of President Lula, Africa is clearly a priority, especially as Brazil emerges as a global economic power and leader of the developing South. Yet, relatively little is written of Brazil's engagement with Africa and the rationale behind the political and economic drive toward the continent. What is clear is that Brazil's engagement with Africa, viewed in the historical context, maintains its underlying foreign policy principles of economic development on the one hand and the preservation of autonomy in an asymmetric world on the other. Brazil's engagement with Africa has taken on a three-pronged approach of political diplomacy, commercial engagement and development co-operation. This is indicative of a new era of Brazilian foreign policy and Brazil's process of internationalisation in general. This is a complex and inter-related process that Brazil seems to have managed well through a high degree of diplomatic sophistication and open cooperation between the political, commercial and various development entities. Africa displays one of the best contextual examples of Brazil's delicate balancing act between commercial and strategic interests and external development assistance. The way Brazil manages this and builds on its positive image in Africa is indicative of its role and approach as a new and emerging power on the international stage

Exploring South-South relations : the case of SADC and Mercosur

Thesis (MA)--Stellenbosch University, 2001.ENGLISH ABSTRACT: This study explores inter-regional relations between SADC and Mercosur. The central problem posed at the outset is "Why should relations between SADC and Mercosur be pursued?" In this problem there exists two separate questions, each one dealing with the regions at hand. The first question asks whether Mercosur is a viable partner in the global political economy and if so, "What possible options are made available through a partnership with Mercosur in the future?" The second question focuses on the Southern African region and addresses concerns surrounding SADC as Mercosur's option for a partner in Africa. These problems are analysed in the context of the global political economy from the perspective of regionalisation, considering the increased interest and attention this phenomenon is currently receiving in international relations. This study therefore addresses both bilateral and multilateral implications associated with SADC-Mercosur relations, with the importance of market liberalisation as well as the effects of regional integration on the process of globalisation kept in mind. A descriptive and analytical approach is employed throughout the study. This methodology provides a concise description of both regions. It also allows the study and research to take place on different levels of analysis, looking at the problem from a country-to-country, country-to-region and region-to-region perspective. These levels are extended to include bilateral and multilateral opportunities for the parties involved. In applying this descriptive methodology various characteristics and attributes of each region are looked at, identifying benefits a regional bloc like Mercosur holds in terms of market size and level of regional development. Various other areas are studied, which explores possible future opportunities for both SA DC and Mercosur through improved south-south co-operation. Statistical data is used to further illustrate certain arguments raised and findings made. The study clearly reveals a broad number of benefits available through enhanced SADCMercosur relations. Mercosur holds an immense amount of future potential that would be of great importance in maintaining a sustainable position for developing economies in the future. There are however a number of difficulties too. These emanate primarily from SADC and therefore cast a great deal of doubt on SADC's ability to enter into a partnership with Mercosur. Considering the current situation, a more viable option would be SACU. But this option should be pursued with the intention of bringing the rest of SADC on board in the not too distant future. SADC's shear size and status in Southern Africa is a drawing card in developing south-south co-operation. It would be ideal to develop relations between SADC and Mercosur in a truly inter-regional fashion and possibly even a transatlantic FTA further down the line. This is a vision that should always be on the agenda when pursuing relations with Mercosur.AFRIKAANSE OPSOMMING: Hierdie studie ondersoek die inter-streeksverhouding tussen SADC en Mercosur. Vanuit die staanspoor word die vraag, "Waarom behoort verhouding tussen SADC en Mercosur nagestreefte word?" gevra. Die studie spreek binne hierdie verband met twee sub-vrae. Die eerste vraag vra of Mercosur 'n lewensvatbare vennoot in the globale politieke ekonornie is en indien weI, "Watter opsies word vir die toekoms gegenereer deur 'n vennootskap met Mercosur." Die tweede vraag fokus op Suidelike Afrika en spreek kwessies rakende SADC as Mercosur se keuse vir 'n vennoot in Afrika aan. Binne die konteks van die globale politieke ekonomie word bogenoemde probleme vanuit 'n streeksperspektief geanaliseer, gegewe die toenemende aandag wat die regionalisasie verskynsel tans in internasionale betrekkinge geniet. Hierdie studie spreek gevolglik beide die bilaterale en multilaterale implikasies van SADC-Mercosur verhoudinge aan, terwyl die belangrikheid van markliberalisering asook die gevolg van streeksintegrasie vir die globaliseringsproses in gedagte gehou word. Die studie volg deurgaans 'n beskrywende en analitiese benadering. Daardeur word navorsing op verskiIIende vlakke van analise moontlik gemaak deur die probleem vanuit 'n land-tot-land, land-tot-streek en streek-tot-streek perspektiefte beskou. Deur die fokus op hierdie vlakke word die bilaterale en multilaterale geleenthede vir die betrokke partye geidentifiseer. Deur middel van 'n beskrywende metodologie word die eienskappe en potensiaal van beide streke uitgelig, veral met betrekking tot markgrootte en streeksontwikkeling. Teen die agtergrond van verbeterde suid-suid samewerking word ander areas ook bestudeer, met die oog op moontlike toekomstige geleenthede vir SADC en Mercosur. Statistiese data word deurgaans gebruik om sekere argumente en bevindings toe te lig. Die studie bevind dat uitgebreide SADC-Mercosur verhoudinge etlike voordele inhou. Mercosur hou groot belofte in vir ontwikkelende ekonorniee. Daar is egter ook probleme binne SADC en plaas dit 'n vraagteken oor SADC se vermoe om 'n vennootskap met Mercosur aan te gaan. 'n Meer realistiese opsie sal 'n vennootskap met SACU wees. Maar hierdie opsie behoort nagestreef te word met die oog op die spoedige insluiting van SADC. Die blote grootte en status van SADC is 'n belangrike faktor in die uitbreiding van suid-suid samewerking. Dit sou ideaal wees om verhoudinge tussen SADC en Mercosur tot op 'n ware interstreekse vlak te ontwikkel met die moontlikheid van 'n toekomstige transatlantiese vrye handelsooreenkoms. Hierdie visie behoort altyd in gedagte gehou te word in die nastreef van verhoudinge met Mercosur