Gaining from Trade in Southern Africa

by Jenkins, Carolyn; Leape, Jonathan; Thomas, Lynne

• ISBN13: 9780312236083
• ISBN10: 0312236085
• Format: Hardcover
• Copyright: 2000-10-01
• Publisher: Palgrave Macmillan

Summary

Policy-makers in Southern Africa are increasingly convinced that regional trade liberalization can improve growth performance and stimulate development throughout the region. To succeed where previous attempts have failed, however, governments must address two key issues. The first of these is policy coordination -- the broad range of domestic policies must be made compatible with the proposed trade reforms. The second is institution building -- concerted attention must be devoted to strengthening weak institutions and infrastructure. The contributors are among the leading authorities on regional integration in Africa.

Table of Contents

Foreword	ix
Acknowledgements	xi
List of Abbreviations	xii
Notes on Contributors	xiv
Gaining from Trade in Southern Africa	1	(23)
Carolyn Jenkins
Jonathan Leape
Lynne Thomas
Introduction	1	(3)
The Southern African Development Community and Trade integration	4	(3)
The relationship between openness to trade and economic growth in Africa	7	(2)
Regional integration, economic convergence and growth	9	(2)
Policies to underpin the FTA: an overview	11	(9)
Concluding comments: beyond the FTA	20	(4)
The Macroeconomic Policy Framework	24	(34)
Carolyn Jenkins
Lynne Thomas
Policy credibility	25	(2)
Analysisi of country profiles and the identification of potential conflicts with regional trade liberalisation	27	(14)
Cross-Country comparisons	41	(4)
Fiscal policy	45	(2)
Monetary policy	47	(1)
Exchange rate policy	48	(6)
Conclusions and recommendations	54	(4)
Taxation and Fiscal Adjustment	58	(31)
Jonathan Leape
Introduction	58	(3)
The need for fiscal adjustment	61	(4)
Fiscal adjustment measures: tax rate increases	65	(6)
Fiscal adjustment measures: broadening the tax base	71	(9)
Fiscal adjustment measures: enhancing control of expenditure	80	(3)
The need for tax coordination	83	(6)
Constraints on Foreign Direct Investment	89	(13)
Richard Hess
Introduction	89	(2)
Significant constraints	91	(6)
Other constraints	97	(5)
Microeconomic Policies	102	(26)
Gavin Maasdorp
Sensitive industries and employment effects	102	(8)
Mitigating the effects of job losses	110	(5)
Human resource development	115	(2)
Transport and communications	117	(7)
Development corridors	124	(4)
Export Promotion Arrangements	128	(12)
Nora Hill
Introduction	128	(2)
WTO agreement on subsidies and countervailing duties	130	(2)
Current incentives in SADC	132	(2)
Overcoming negative perceptions	134	(2)
Conclusions	136	(4)
Compensatory Mechanisms	140	(18)
Carolyn Jenkins
Introduction	140	(1)
The case for compensation	140	(3)
International experience	143	(3)
Review and assessment of the SACU revenue-sharing mechanism	146	(4)
Alternatives to fiscal compensation	150	(7)
Concluding comments	157	(1)
Refrences	158	(102)
Appendices
A1 Review of Taxation Policies and Government Revenue	163	(47)
Richard Hess
A2 Constraints on Foreign Direct Investment by Country	210	(27)
Richard Hess
A3 Export and Investment Incentives by Country	237	(23)
Nora Hill
Index	260