Is the business environment a matter of political economy and convergence?

In this article, the central question addressed is: does the business environment entail a complex nexus of political economy and other factors (government, business, ideology, and leadership) that may or may not manifest convergence? Also, the role of metrics and data is appropriately discussed. Current theories fail to impart an understanding of what the nature of the business environment is, or of the multifaceted nexus and convergence (or divergence) that it may entail. The strength of convergence involved is directly related to the integrity of the business environment and also reflects the overall dynamics in the country of focus. Each of the three country cases examined is fundamentally different, but offers important lessons. The overarching conclusion is that political economy and convergence often play a critical role in the business environment—though certainly not always, as in South Africa, where there is divergence, and in the case of metrics and data on the business environment, which, by design, do not focus on convergence

Inequality: concepts, data, perspectives and solutions

A comprehensive treatise on inequality from economic, social, business and metrics/data perspectives is lacking in the literature and this treatise fills that void. We posit that: (a) neoclassical economics has failed to address inequality within nations; (b) the social theories on inequality are of ancillary importance; (c) businesses have contributed to inequality in several ways but have also made a positive contribution towards a fairer, more equitable society; (d) data on inequality is not up to date. Taxation and social programs offer an inadequate approach to tackling inequality without a proper framework and supporting approaches. In addition, complementarity between neoclassical economics and behavioural economics would be a positive factor in addressing inequality and should be pursued. Issues of inequality metrics and data reliability have moved to the forefront of discussions as the data currently available is the basis of much dissent. Robust metrics and reliable and up to date inequality data (as well as related statistics) are indispensable for designing, implementing, monitoring, and evaluating inequality interventions and policies

Monetary policy for small emerging market economies: the way forward

Discretionary monetary policy for small emerging market economies, especially in Sub-Saharan Africa, can benefit from closer scrutiny and strengthening through appropriate and incmacfemntal policies. Field research and related analysis challenge the conventional wisdom on the relationship between interest rates and inflation. Lessons learned suggest that monetary policy needs to be tempered to prevailing social, cultural, and socio-economic factors. In addition, access to credit through financial inclusion policies and programmes needs to be addressed, and the overarching role of good governance cannot be overlooked. Given the broad scope of weaknesses inherent in monetary policy-making (and the systems that support it) in small emerging market economies such as Botswana's, two options are available to tackle the problems: either monetary union should be adopted or incmacfemntal new directions to the status quo are required.monetary policy, small emerging market economies, Sub-Saharan Africa, monetary union, social and cultural factors,

Governance and Development

Governance matters are arguably at the core of international development. What role do theory, policy and practice play in shaping matters of governance with respect to development? This review paper, which is organised in three parts, focuses on this subject since the demise of communism in 1991. In the first part, the theories on the governance and development nexus are outlined. In the second, governance policy is discussed with reference to: the early strategic policy shift; the concepts, principles and framework for enhanced governance; selected reviews by scholars and practitioners; and numerous key current issues. Governance in practice is examined in the third part with the same or similar questions, reviews and current issues. In addition, lessons are drawn from a case study. The conclusion of this paper is threefold: first, it is a fallacy that there is a pre-eminent system of governance that is universally applicable; second, the relevant theories on the subject have a remarkably limited role to play in sculpting policy and practice; and, third, perhaps the single most important problem in policies and practices on governance for development is the failure to temper interventions to the contextual dynamics found in each developing country setting.

Monetary Policy, Governance and Economic Development

Botswana is at a crossroads, as economic growth has slowed significantly in recent years while social problems remain largely unresolved. Exacerbating this situation is a monetary policy in crisis as over a decade of generally high interest rates have failed to address inflationary pressures. Thus, the Botswana experience challenges generally accepted wisdom on the relationship between interest rates and inflation. The main lessons learned highlight the need for (i) enhancing the knowledge and information base; (ii) tempering monetary policy to prevailing mores; and (iii) ensuring the provision of good governance at the central bank. Policy and programme recommendations that are offered are relevant not only to Botswana but also to other developing countries that face similar challenges.

The Economic Crisis and the Commonwealth

This paper reviews the nature of the economic crisis and discusses its impact on the Commonwealth. Further, it offers an analysis and suggestions on how Commonwealth nations can move forward to both tackle the impact of the crisis and prepare for the post-crisis period, through five key policy principles that can serve as a guide in the formulation and implementation of appropriate policies, strategies and programmes.

The Failures of Economics and the Emerging New Economics

The current economic and financial crisis has exposed several weaknesses in economics that emanate from oversimplification of reality, the role of ideology, and the failure to consider culture and governance matters. In addition, tackling poverty and inequality in economics is highly problematic and it has arguably also been a failure. Other areas, including fundamental assumptions regarding rational decision-making and the lack of a robust linkage between the micro and the macro, leave much to be desired as well. And these ‘fault lines’ have had an impact on the depth and quality of economics. This paper draws from field research and other primary sources, and engages in a critical review and analysis of the background and certain aspects of the status quo of economics, with special reference to macroeconomics, development economics, and other areas. Fresh ideas and alternative paradigms suggest an emerging new economics to address the fault lines and to grow the discipline.