Competition policy is playing an increasingly significant role in the trade and investment environment in South Africa. According to a 2010 IMF report, there is a high degree of product market restrictiveness in South Africa that is partly exacerbated by anti-competitive behaviour in the markets. This is regarded as being highly trade restrictive.
Also, the recent Wal-Mart/Massmart case brought under closer scrutiny the link between investment, competition and trade policy. It highlighted the potential use of competition policy as a vehicle for industrial policy and other domestic economic objectives. Can governments use competition policy to stimulate the growth and development of certain sectors, including through investment, and would this be compatible with the rules of the international trading system?  In addition to creating a conducive policy environment, there are other direct measures used by the government to attract investment from both domestic and international sources.  As is the case with many other developing countries, SA seeks to boost investment through a variety of incentive schemes that operate at the local, provincial and national level.   These incentives have been put in place to support the various economic development objectives of SA.  What type of incentives are being offered?  How effective are they?
 
SAIIA, TIPS and Tralac have come together to create a platform for the discussion of these issues. Trudi Hartzenberg, from Tralac, will present on the interlink between competition, investment and trade policy in South Africa.  Lesley Wentworth, an independent consultant for SAIIA will scope out the range of investment incentives currently being offered in  South Africa. 

TIPS has the pleasure to invite you to a preliminary project workshop to discuss the impact of China on South Africa.  This project, sponsored by the UK Economic and Social Research Council, is headed by Rhys Jenkins from the University of East Anglia. 
 
While the objective of the workshop is to engage in a discussion of the effect of China on South Africa to identify key research questions of relevance to government departments, Professor Jenkins will also provide a brief feedback on the main findings of his previous projects on China and Brazil.

About the Project Leader:

Professor Rhys Jenkins is Professor of Development Studies at the University of East Anglia. Rhys is an economist interested in international development issues, but particularly those related to trade, foreign investment, and industrialization.

Rhys has worked closely with UNCTAD, UNIDO and with the United Nations Research Institute for Social Development (UNRISD) as well as for the Department of International Development. Rhys' current research focuses on the impact of the growth of China on other developing countries, especially Latin America.

Rhys has published extensively. Some of his published books include Transnational Corporations and Uneven Development (Methuen), Environmental Regulation in the New Global Economy (Edward Elgar), Industry and Environment in Latin America (Routledge) and Corporate Responsibility and Labour Rights (Earthscan).

Amongst his long list of journal article publications is a recent piece for Revista CEPAL on “'The Chinese Effect' on the Price of Basic Goods and on the Value of Exports from Latin America” (2011), “Measuring the Competitive Threat from China for other Southern Exporters” in World Economy (2008), "The Impact of China on Latin America and the Caribbean" (with others) for World Development (2008).

Countries in Southern Africa have only recently begun considering the possibility of jointly developing comprehensive industrial policies under the auspices of regional integration bodies such as the Southern African Customs Union (SACU). Regional co-operation in industrial policy design and implementation has the potential to both identify and capitalise on the productive synergies that exist between states, and to enhance the integrated performance of industrial sectors across borders.

Author: William S. Mbuta

William Mbuta was the Science and Technology Development Officer at the National Science and Technology Council of Zambia before becoming assistant general manager in the area of policy research at a Chamber of Mines; he them worked at the SADC Secretariat where he was Programme Officer – Industrial Policy at the between 2007 and 2010. William is now an independent consultant based in Lusaka.
Willam has prepared a working paper for TIPS on the theme which he will discuss at the seminar. William's working paper can be found on web-site home page (www.tips.org.za)

Trudi Hartzenberg is the Executive Director of the Trade Law Centre for Southern Africa (tralac). She is an economist specialised in trade, industrial and competition policy, regional integration and industrial organisation. She has taught at a number of Universities in South Africa as well as abroad, in Denmark. She has worked on assignment for a number of international institutions including the IMF, African Development Bank and the Commonwealth Secretariat.

Paul Kruger is a tralac researcher with special interests in trade negotiations, behind the border trade issues, industry competitiveness and sustainable development. He is a qualified lawyer and has been involved in a wide range of regional and international trade and trade related projects.

Tralac's research report and related policy brief on which the presentation will be based can also be found on our web-site home page (www.tips.org.za).

Sugar cane remains a major contributor to the Mauritian economy. In 2003 it was cultivated on 85% of the arable land by 28 000 planters, with most planters being smallholders. One in three rural families is directly or indirectly involved in the sugar industry. Annual sugar production averages 575 000 tonnes of which 507 000 tonnes are exported to the EU under the African Caribbean and Pacific (ACP) - European Union (EU) Sugar Protocol, the Special Preferential Sugar Agreement, which provides a guaranteed price well above the world market price. The share of the sugar industry in the Mauritian economy has dwindled from 25% of Gross Domestic Product (GDP) in the 1970s to about 3.5% in 2003, but still represents about 19% of foreign exchange earnings.

Having a vibrant production base is the foundation of economic prosperity. The more goods a country produces the more jobs are created. The specialisation resulting from the production of goods tends to result in newer technologies and higher levels of income, which leads to even higher growth.

There is little doubt that the services sector is an important driver of this economic growth and development. A vibrant services sector, nationally and globally, mainly emanates from the product market.

Globally, a rapid increase of mobile tertiary education seekers has been observed. In 2005, more than 2.7 million tertiary education students were studying in a country other than their own, representing an increase of about 61% since 1999.  Trade in education services is increasingly becoming important worldwide. Saner and  Fasel (2003)* observe that the value of annual trade in higher education services was estimated at US$30 billion, which was 50% of trade in financial services.

A number of factors have propelled the rapid demand for foreign higher education services. These include the need for internationally recognised qualifications, the demand for highly skilled labour in both developed and developing countries, and the inclination by several countries towards promoting foreign collaborations to improve the quality of domestic higher education.

Maize is the most important staple cereal consumed in the Southern African region. Global warming and accompanying increased volatility in rainfall, rising populations and the shift to maize-fed biofuels pose risks of substantial price increases in the future that may affect food security.

The general view is that a combination of factors was responsible for the 2006-2008 food and oil crises, including increased demand for food and oil, rising prices, currency fluctuations, climatic conditions in producer countries, export restrictions, speculation in commodities markets and lack of productivity growth in key sectors.

In their quest to achieve higher economic growth and development African governments have experimented with different growth and industrialisation models. Prominent among these is the import substitution industrialisation (ISI) model adopted after gaining independence in the 1960s and 1770s. It is widely believed that the ISI model failed, and after this came the idea of supporting growth through regional economic integration, specifically through the institutions of regional economic communities.