Assessing industrialisation in South Africa with special reference to textile and clothing trends during the 1990s

Qobo, Simon Z. T. (2002-03)

Thesis (MA)--Stellenbosch University, 2002.

Thesis

ENGLISH ABSTRACT: As the wave of globalisation sweeps across the countries of the world, the economies of these countries are increasingly opening. The industrial and trade strategy approach is shifting to greater openness due to the pressures of international competitiveness. This means that domestic economic activity alone cannot sustain the national economy. One of the features of this openness is trade liberalisation. Trade between various countries is becoming more important as a way of earning foreign currency to address balance of payment problems and as well as to boost the domestic economy. This has great potential, in the long run, to generate employment opportunities. Immediately after South Africa ushered in a democratic dispensation in 1994 it had to contend with global pressure to liberalise its trade and put in place economic fundamentals that synchronize with the global economic order. The political economy of global trade structure is characterized by bargaining power inequalities amongst the developed countries (North) and the developing countries (South). Trade relations between the developed and developing countries has ~ element of power-play that advantage developed countries and the terms of trade are still skewed in favour of developed countries due to the power that developed countries wield in the global economic system. This study uses the structuralist development theoretical perspective (dependency theory) and the combination of qualitative and quantitative paradigms in understanding the trade relations between the developed countries. The study, through this theoretical paradigm, seeks to examine the degree of success or failure of the Uruguay Round of trade negotiations in particular with regard to tariff reduction commitments, and opportunities or constraints created thereof. A case study oftextile and clothing industry will be used, and this will highlight some of the negative implications of the Uruguay Round commitments.

AFRIKAANSE OPSOMMING: Namate die globaliseringsgolf oor die lande van die wereld spoel, word die ekonomiee van die lande meer toeganklik vir ander state. Die industriele en handelsstrategie benadering het, as gevolg van intemasionale mededinging, 'n klemverskuiwing na meer openheid meegebring. Dit het tot gevolg dat huishoudelike ekonomiese aktiwiteit nie alleen 'n ekonomie kan onderhou nie. Een van die kenmerke van hierdie openheid is die liberalisering van handel. Handel tussen state word toenemend belangrik vir die verdien van buitelandse valuta om betalingsbalans probleme aan te spreek, asook om plaaslike ekonomiee te stimuleer. Oor die lang termyn hou dit groot potensiaal in om werksgeleenthede te skep. Onmiddelik na demokratisering in 1994 was Suid-Afrika geforseer om sy handel te liberaliseer en sy ekonomiese grondslag te sinchroniseer met die globale ekonomiese orde, Die struktuur van die politieke ekonomie van intemasionale handel word gekenmerk deur ongelykhede tussen die ontwikkelde Noorde en die ontwikkelende lande van die Suide. Handelsbetrekkinge tussen ontwikkelde- en ontwikkelende lande bevat 'n element van magspel waarin eersgenoemde bevoordeel word. Hierdie studie maak gebruik van die strukturalistiese ontwikkelingsperspektief en 'n kombinasie van kwalitatiewe en kwantitatiewe paradigmas, ten einde 'n beter begrip te verkry van handel tussen ontwikkelde lande. Deur middel van die teoretiese paradigma, probeer die studie om die werkbaarheid van die Uruguay Ronde, spesifiek · met betrekking tot tarief verlagings en die geleenthede of beperkings wat daardeur geskep word, aan te toon. 'n Gevallestudie van die tekstiel en klerebedryf sal gebruik word om die negatiewe implikasies van die Uruguay Ronde te belig.

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