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Abstract - Money Growth and Inflation: An Empirical Investigation of the Monetary Unions in West Africa
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Abstract: We analyzed money growth and inflation between 1967 and 2015 for 6 and 8 member countries of West African Monetary Zone and the West African Economic Monetary Union respectively, using Panel data techniques. In our main specification, the regression result shows that a positively significant relationship exists between money growth and the rate of inflation in the West African Monetary Zone. There is an indication that 1% change in broad money growth produces a 28% increase in inflation rate. In the case of WEAMU, a negative and significant relationship was found between broad money growth and inflation showing that a 1% change in broad money supply produces about 9% decline in inflation rate. While WAMZ takes to monetarism, UEMOA takes to Keynesianism. Our findings provide strong supports for more of central control and extensive use of fiscal policy in WAEMU and more active role of monetary variables in directing and influencing economic decisions in the WAMZ for economic sustainability. Keywords: Inflation, Money Growth, WAEMU, WAMZ, Panel Data, Fixed Effect, Random Effect. |
Abstract - Republics and Monarchies: A Differential Analysis of Economic Growth Link
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Abstract: This paper examined whether a significant difference in economic growth exists between constitutional monarchies and republics. A review of political economy philosophies does indicate that government is the foundation of economic development. However the type of government that best nurtures economic growth remains contentious. The paper inclines on political economy philosophies of John Locke and Thomas Hobbes and blends with the capital growth theory of Milton Friedman. The paper applied a theoretical review and a brief empirical analysis approach. This paper contributes by providing empirical support to anecdotal assertions that economic growth may not only depend on government type (constitutional monarchy or republic), but on the efficacy of government. In addition, whilst previous researchers have largely used time series data, this paper brings a nuance by using cross sectional data, which is devoid of fluctuations. Data from forty eight countries of the world were used to compare democracy and monarchy regimes with their levels of economic growth measured by GDP per capita. Applying both Chi-square, t-test of difference and graphical analysis, results show a P-value of more than 0.05 in both the Chi-square and t-test statistics, which provides an empirical support of lack of significant relationship between governance type (constitutional monarchy or republic) and economic growth. Albeit lack of significance, the ‘mean GDP’ is slightly higher for monarchy countries than in republic countries. Similarly, the variance statistic (a measure of instability) is lower for constitutional monarchies and higher for republics, indicating that constitutional monarchies appear more economically stable than republic countries. Based on the findings, the paper provides a framework for further research. It also recommends future research agenda to explore this phenomenon by including absolute monarchies and autocratic regimes in an empirical setting and to use a current cross sectional data devoid of fluctuations. The paper provides practical recommendation that being a republic is not a sufficient panacea for economic growth if the excesses that retard growth are left unbridled, these includes inter alia undue interference that obscures economic certainty for investors. Keywords: Democracy, economic growth; economic stability, monarchy and Republic. |
Abstract - The Complexities of Neo-Liberalism in Post-Apartheid South Africa
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Abstract: This article examines the contradictions and complexities of the model of development pursuit by the African National Congress (ANC) government in post-apartheid- South Africa. The article intends to shed some light on the current economic trajectory of South Africa by arguing that although there are some elements of neo-liberalism in government policies, namely: privatisation of services, inflation targeting and Public-Private Partnerships. However, the expansion of the size and the role of the South African state, are anti-neo-liberal. This is a qualitative literature assessment article; because it is based on desktop research. This article is located within the Marxism and Leninism tradition as a standpoint theory. This ontological approach is chosen owing to its meticulousness in teasing out the complexities of the capitalist mode of production. The aim of this article is to lay bare the different aspects of the mixed-bag approach of development employed by the South African government by asserting that is not simply neo-liberal in nature though to some extent it is inspired by market-friendly policies. This also indicates the gaps in the discourse with regard to the implementation of neo-liberalism in South Africa. This article contributes to the South African political economy debate by arguing that neo-liberalism has contradictions and complexities; it is not simplistic and straightforward. Keywords: Neo-liberalism, privatisation of services, market-friendly policies. |
Abstract - Critical Analysis of the Responsibilities of Audit Committees as Contained in King IV Report
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Abstract: The Institute of Directors of Southern Africa (IoDSA) issued King IV Report on Corporate Governance for South Africa on the 1st November 2016. As it was in the predecessor’s King Reports, it became evident that the roles of Audit Committees (ACs) are still considered to be one of the most useful and necessary governing bodies in any organisation. A plethora of literature suggest that, there are little differences, between King IV and King III reports on corporate governance, as different committees continue to function as they were functioning before. This paper is conceptual in nature and seeks to make a critical analysis on the requirements of the King IV in assisting ACs in terms of awareness, their duties and responsibilities through the use of literature review. The paper further seeks to point out the qualifications in terms of who is supposed to serve in the ACs and the responsibilities thereof. The paper uses State-Owned Enterprises (SOE's) in South Africa as units of analysis to interrogate the role their ACs ought to, particularly in the context of changes affecting organisations and their operations. The role of ACs is no different from how they operate in SOE's. The extent to which the AC should confirm satisfaction with external auditors, concerning their tenure, rotation of audit firms, rotation of partners, policies and controls concerning non-assurance services is to be dealt with. The recent failures in corporate governance in SOEs in South Africa, have left suspicion on the role played by the ACs, as they are regarded as the primary monitor of the organisational financial performance. Keywords: King IV report, King III report, Audit Committee, Governance, External Auditors. |
Abstract - Blue Economy, Brics and the Challenges of Food Security in the Western Indian Ocean
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Abstract: Food security is one of the major problems that BRICS is contending with in this age of accelerated climate change and varnishing territories. Cooperation among member states of BRICS is pivotal to addressing the problems of food security. Natural resources and economic, strategic and political imperatives that some members of BRICS are sharing directly or indirectly through the Western Indian Ocean (WIO,) therefore, need academic interrogation. Before the formation of BRICS, Russia, India, China and South Africa are very active participants in the politics and strategic arrangements of the third-largest ocean (Indian Ocean) in the global system. The activities of these participants have implications for the IO’s blue economy and for food security. Employing interdependence theory of liberal school, this paper concludes that international regimes like BRICS need to articulate and implement new guidelines for sustainable exploitation of the WIO resources. In doing so, BRICS would save the ocean from overfishing perpetuated by the technologically advanced states like China as well as checkmate the ongoing plastic dumping in the ocean, which is threatening the livelihood of littoral communities. Keywords: BRICS, WIO, Food security, Blue economy, Climate change, Plastic dumping. |