An evaluative analysis of industrial development zones and export processing zones with reference to the Coega Industrial Development Zone

Brand, Daleen (2002-12)

Thesis ((MS en S)--Stellenbosch University, 2002.

Thesis

ENGLISH ABSTRACT: South Africa is experiencing similar problems as those occurring in other developing countries. Such problems include: large scale poverty; unequal regional development; inefficient policies; fragmented transport systems. The list goes on. This is largely due to apartheid policiesthat were implemented. After 1994 a series of new policies and programmes was implemented. Their aim was to eradicate apartheid planning; to provide equal and fair development for everyone and to stimulate and boost the economy. The Reconstruction and Development Programme (RDP) was the first policy of its kind, followed by the Growth, Employment and Redistribution programme (GEAR). The aim of these two policies was to stimulate the economy, especially in areas where there is a need for an economic boost. This ultimately led to programmes such as the Spatial Development Initiative (SDI); Local Economic Development and Export Processing Zones or as they are better known in South Africa, Industrial Development Zones. Programmes or initiative such as these were aimed at boosting the economy, providing employment and utilising resources in a region. This is the shift that has taken place in development planning, from traditional regional policies towards incentive driven policiesthat try to attract investment into under-developed regions. Programmessuch as Industrial Development Zones however have a long history, not all of it positive. These zones have been known as sweatshops and that they use child labour. The largest problem of these zones is that labour legislation is almost non-existent. In 2001 South Africa declared Coega the first Industrial Development Zone in the country. The zone will link to the Spatial Development Initiative programme that was implemented in 1996. An uproar followed when labour organisations such as COSATUlearned that the government is going to use Industrial Development Zones, which are similar to Export ProcessingZones, to stimulate the economy and to solve the problem of unemployment in specific areas of the country. However the labour legislation of South Africa will be applied in the Industrial Development Zones. That just leaves the problem of efficiency and effectiveness. Will these zones really address and solve the employment problems in South Africa? Zones such as those in Mauritius have been a success, but there are cases where the zones did not create employment and more money was spend on putting in the infrastructure and services in the zones, than was made in the zone. Time will be the judge in the case of Coega Industrial Development Zone.

AFRIKAANSE OPSOMMING: Suid-Afrika ondervind basies dieselfde probleme as wat ander onderontwikkelde lande ondervind. Die probleme sluit in: grootskaalse armoede; ongelyke streekontwikkeling; ondoeltreffende beleide. Die probleem spruit grootliks uit die apartheidsbeleide. Na 1994 is daar egter 'n reeks van nuwe beleide en programme geïmplementeer. Die beleide moes apartheidsbeplanning uitwis; moes gelyke ontwikkeling aan almal voorsien en die ekonomie stimuleer. Die Heropbou- en Ontwikkelingsprogram was een van die eerste beleide, en is gevolg deur die "Growth, Employment and Redistribution" program. Die twee beleide se doel was om die ekonomie te stimuleer, veral in gebiede waar daar 'n behoefte aan ekonomiese groei is. Dit het dan ook gelei tot programme soos "Spatial Development Initiatives", "Local Economic Development" and "Export Processing Zones" of soos wat dit in Suid-Afrika bekend staan "Industrial Development Zones". Programme of inisiatiewe soos die se doel is om die ekonomie van 'n streek te versterk, om werksgeleenthede te skep en om gebruik te maak van die hulpbronne in die spesifieke streek. Die programme het 'n groot verandering in ontwikkelingsbeplanning meegebring, vanaf tradisionele streekbeleide tot inisiatief-gedrewe beleide wat poog om beleggings in onderontwikkelde streke te versterk. Programme soos "Industrial Development Zones" het 'n lang geskiedenis, en nie almal is posititief nie. Hierdie sones het 'n algemene naam van "sweatshops" gekry waar kinderarbeid gebruik word. Die grootste probleem van hierdie sones is dat arbeidwetgewing gewoonlik nie toegepas word binne die sones nie. In 2001 is Coega as die eerste "Industrial Development Zone" verklaar in Suid Afrika. Die sone is verbind tot die "Spatial Development Initiative" programme wat geïmplementeerd is in 1996. Dit is egter sterk deur die arbeidsorganisasie COSATU veroordeel, toe hulle hoor dat die regering nou "Industrial Development Zones", wat basies dieselfde is as "Export Processing Zones", gaan gebruik om die ekonomie te stimuleer en die hoë werkloosheid in die land te verminder. Maar, in hierdie sones sal arbeid wetgewing toegepas word. Dit los net die probleem van effektiwiteit en doeltreffendheid. Gaan hierdie sones die werkloosheids probleem van Suid Afrika oplos? Sones soos in Mauritius was suksesvol, maar daar is egter talle ander wat nie werkgeleenthed geskep het nie en die uitgawes wat gemaak is om infrastruktuur en dienste in die sones te voorsien is veel hoër as die profyt wat gemaak is op die einde. Tyd sal leer in die Coega "Industrial Development Zone'.

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