The role of “black capital” in revitalising land reform in Limpopo, South Africa

In this article Aliber and Maluleke grapple with similar questions of social differentiation in their exploratory study of emergent black farmers who lease land on floundering land reform projects. Examining the partnerships between these commercially-oriented lessees and project beneficiaries through a number of case studies, the article discerns how small-sale black investors are well suited to involvement in these particularly sites. The authors not only draw attention to the complex social, institutional and commercial dynamics surrounding attempts to sustain commercial agriculture in the context of land reform projects, but warn of the limitations of attempting to revive failed projects by simply injecting additional infrastructure

Should subsistence agriculture be supported as a strategy to address rural food insecurity?

At first glance South Africa’s black farming sector appears to contribute rather minimally to overall agricultural output in South Africa. However, despite the complexity involved in this sector and the often marginal conditions in which agriculture is practised it appears to be important to a large number of black households. Furthermore, the significance they attach to subsistence agriculture as means of supplementing household food supplies seems to heavily outweigh other reasons for engaging in agriculture. Some South African researchers have indicated the contribution subsistence production makes to household food security, despite the prevalent complexities and the low input nature of this production. Statistics South Africa’s Labour Force Survey data from 2001 to 2007 and a case study of subsistence farming in Limpopo Province are used to support the argument that, despite the complexity of this sector, the more than 4 million subsistence farmers, need and merit greater support

Internalisation Theory and outward direct investment by emerging market multinationals

The rise of multinational enterprises from emerging countries (EMNEs) poses an important test for theories of the multinational enterprise such as internalisation theory. It has been contended that new phenomena need new theory. This paper proposes that internalisation theory is appropriate to analyse EMNEs. This paper examines four approaches to EMNEs—international investment strategies, domestic market imperfections, international corporate networks and domestic institutions—and three case studies—Chinese outward FDI, Indian foreign acquisitions and investment in tax havens—to show the enduring relevance and predictive power of internalisation theory. This analysis encompasses many other approaches as special cases of internalisation theory. The use of internalisation theory to analyse EMNEs is to be commended, not only because of its theoretical inclusivity, but also because it has the ability to connect and to explain seemingly desperate phenomena

Contemporary South African Urbanization Dynamics

Abstract The paper provides an overview of urbanization patterns and trends in the current era in South Africa, focusing in particular on the key dynamics and driving forces underlying migration and urbanization. It considers overall demographic trends with regard to migration and urbanization, and points to some of the difficulties with data, and with the analysis of trends and patterns. The paper explores the changing rural context and dynamics, and some of the significant processes in this context: large-scale displacement of black people off farms, the impact of land reform, and conditions in the former homeland areas. Circular migration continues to be an important way in which households in rural areas survive, but some are unable to move, and are falling out of these networks. International migration—the consequence of both conditions in the home country and the draw of the South African economy— is another significant process fuelling mainly urban growth. The paper demonstrates the importance of cities in terms of economic growth and employment, and thus their attractiveness to migrants. Continuing migration to cities is of course a challenge fo

Unpacking the ‘Emergent Farmer’ Concept in Agrarian Reform:Evidence from Livestock Farmers in South Africa

South Africa has historically perpetuated a dual system of freehold commercial and communal subsistence farming. To bridge these extremes, agrarian reform policies have encouraged the creation of a class of ‘emergent’, commercially oriented farmers. However, these policies consider ‘emergent’ farmers as a homogeneous group of land reform beneficiaries, with limited appreciation of the class differences between them, and do little to support the rise of a ‘middle’ group of producers able to bridge that gap. This article uses a case study of livestock farmers in Eastern Cape Province to critique the ‘emergent farmer’ concept. The authors identify three broad categories of farmers within the emergent livestock sector: a large group who, despite having accessed private farms, remain effectively subsistence farmers; a smaller group of small/medium-scale commercial producers who have communal farming origins and most closely approximate to ‘emergent’ farmers; and an elite group of large-scale, fully commercialized farmers, whose emergence has been facilitated primarily by access to capital and a desire to invest in alternative business ventures. On this basis the authors suggest that current agrarian reform policies need considerable refocusing if they are to effectively facilitate the emergence of a ‘middle’ group of smallholder commercial farmers from communal systems

Risk-On/Risk-Off, Capital Flows, Leverage, and Safe Assets

This paper describes the international flow of funds associated with calm and volatile global equity markets. During calm periods, portfolio investment by real money and leveraged investors in advanced countries flows into emerging markets. When central banks in the receiving countries resist exchange rate appreciation and buy dollars against domestic currency, they end up investing in medium-term bonds in reserve currencies. In the process they fund themselves (or "sterilize" the expansion of local bank reserves) by issuing safe assets in domestic currency to domestic investors. Thus, calm periods, marked by leveraged investing in emerging markets, lead to an asymmetric asset swap (risky emerging market assets against safe reserve currency assets) and leveraging up by emerging market central banks. In declining and volatile global equity markets, these flows reverse, and, contrary to some claims, emerging market central banks draw down reserves substantially. In effect emerging market central banks then release safe assets from their reserves, supplying safe havens to global investors

Must Land Reform Benefit the Victims of Colonialism?

Appealing to African values associated with ubuntu such as communion and reconciliation, elsewhere I have argued that they require compensating those who have been wronged in ways that are likely to improve their lives. In the context of land reform, I further contended that this principle probably entails not transferring unjustly acquired land en masse and immediately to dispossessed populations since doing so would foreseeably lead to such things as capital flight and food shortages, which would harm them and the broader society. Oritsegbubemi Anthony Oyowe has recently argued against my claim that land reform should be enacted in a way expected to benefit victims of colonialism while not greatly burdening innocent third parties, instead supporting the return of land to its rightful owners regardless of how the manner in which it were done would affect people’s quality of life. Here I expound Oyowe’s argumentation and respond to it in defence of my initial position, appealing to examples from southern Africa to illustrate

Exporting contradictions: the expansion of South African agrarian capital within Africa

Agrarian change in South Africa over the past two decades has seen consolidation of the hegemony of large-scale commercial farming and corporate agribusiness within agro-food systems. Constrained domestic demand and growth opportunities elsewhere have driven both farming and agribusiness capitals to move into other African countries, attempting to reproduce agro-food systems similarly centred on the dominance of large capital. This is evident in five areas: first, the financialization of agriculture and ‘farmland funds’; second, multinational and South African input supply industries; third, large-scale land deals to expand industrial farming systems; fourth, the export of South African companies’ food processing, manufacture, logistics and distribution operations; and fifth, the expanding reach of South African supermarkets and fast food chains. Regional expansion involves South African agrarian capital encountering substantial obstacles to entry, and challenges mounted by competitors in destination markets. Success as a regional hegemon in Africa’s agro-food system is thus far from assured, and even where it does appear to succeed, generates contradictions, and rising social tensions of the kinds experienced in South Africa itself

China's Capital Controls Through the Prism of Covered Interest Differentials

We study the renminbi (RMB) covered interest differential - an indicator of the effectiveness of capital controls. It is found that the differential is not shrinking over time and, in fact, appears larger after the global financial crisis than before. That is, capital controls in China are still substantial and effective. In addition to exchange rate changes and volatilities, the RMB covered interest differential is affected by credit market tightness indicators. The marginal explanatory power of these macroeconomic factors, however, is small relative to the autoregressive component and the dummy variables that capture changes in China's policy