Introduction

2019 ◽  
pp. 1-18
Author(s):  
Nicoli Nattrass ◽  
Jeremy Seekings

In this introduction to our book, Inclusive Dualism, we revisit W. Arthur Lewis’s famous model of development with surplus labour. Lewis emphasized the benefits of dualism, by which he meant economic differentiation and the coexistence of sectors (and of firms within sectors) characterized by different levels of productivity and wages. He proposed an expansion of relatively low-wage, labour-intensive jobs that would raise productivity by drawing ‘surplus’ labour out of subsistence activities. When such surplus labour dried up, wages would rise. In contrast to Lewis, post-2000 advocates of decent work fundamentalism promote wage increases as an instrument to increase labour productivity irrespective of labour market conditions. In the presence of surplus labour, this can have dystopic consequences, as the South African case shows. In South Africa, with its very high unemployment rates, strategies to promote relatively high-wage, high-productivity jobs came at the cost of labour-intensive development and even job destruction, thereby exacerbating poverty and inequality.

Author(s):  
Nicoli Nattrass ◽  
Jeremy Seekings

W. Arthur Lewis, the founding father of development economics, saw developing economies as dualist, that is, characterised by differences in earnings and productivity between and within economic sectors. His famous model of development, in which ‘surplus’ (unemployed and underemployed) labour was drawn out of subsistence activities and into manufacturing, was reflected in the subsequent East Asian development trajectory in which labour was drawn into low-wage, labour-intensive manufacturing, including in clothing production, before shifting into higher-wage work once the supply of surplus labour had dried up. This development strategy has become unfashionable, the concern being that in a globalized world, labour-intensive industry promises little more than an impoverishing ‘race to the bottom’. A strong strand in contemporary development discourse favours the promotion of decent work irrespective of whether surplus labour exists or not. We argue that ‘better work’ policies to ensure health and safety, minimum wages and worker representation are important. Decent work fundamentalism—that is, the promotion of higher wages and labour productivity at the cost of lower-wage job destruction—is a utopian vision with dystopic consequences for countries with high open unemployment, including most of Southern Africa. We show, using the South African clothing industry as a case study, that decent work fundamentalism ignores the benefits of dualism (the co-existence of high- and low-wage firms), resulting in the unnecessary destruction of labour-intensive jobs and the bifurcation of society into highly-paid, high-productivity insiders and unemployed outsiders. The South African case has broader relevance because of the growth in surplus labour—including in its extreme form, open unemployment—across a growing number of African countries. Inclusive dualism, as a development strategy, takes the trade-off between wages and employment seriously, prioritizes labour-intensive job creation and facilitates increased productivity where appropriate, so that jobs are created, not destroyed.


2019 ◽  
pp. 38-53
Author(s):  
Nicoli Nattrass ◽  
Jeremy Seekings

Chapter 3 argues that the ILO’s decent work agenda is insensitive to the needs of countries with high unemployment. We identify thirteen developing countries whose unemployment rate in 2016 was over twice the mean for low- and middle-income countries. Most are war-torn, post-communist, and unfree. However, for a set of Southern African countries, high unemployment is the consequence of domestic policy within a regional context of relatively limited opportunities for smallholder agriculture and dominated by the strength of the South African economy. Contemporary development policy advice, especially from the ILO, prioritizes labour productivity growth without confronting the need to foster relatively low-productivity employment to provide jobs for large numbers of relatively unskilled people in these countries. Rising labour productivity in the surplus labour countries during the 2000s came at the cost of stagnant, and even falling, employment rates. Given inadequate welfare support for the unemployed, such growth paths undermined inclusive development in these countries.


Russian vine ◽  
2020 ◽  
Vol 14 ◽  
pp. 85-89
Author(s):  
N.A Tikhomirova ◽  
◽  
M.R. Beibulatov ◽  
N.A. Urdenko ◽  
R.A. Buival ◽  
...  

The economic efficiency of the cultivation of grapes as a branch of agriculture depends on the adaptation of grape varieties to the soil and climatic conditions of the place of growth. When developing new agricultural practices and technological solutions for the cultivation of grapes, it is necessary to assess the econom-ic efficiency of the proposed innovative ap-proaches. The cultivation of such grape varie-ties is becoming important and relevant, which, with high productivity and the use of differen-tiated care technology, require minimal costs when servicing the bushes and harvesting. In-creasing labor productivity in the viticulture industry is the most important condition for the intensive development of production. One of these conditions today is the formation of a bush according to the technology element, the shape of a bush AZOS-1, which allows to re-duce the cost of care and harvesting of grapes. The conducted research on the technology of cultivation of table grape varieties in connec-tion with the use of a new form of bush made it possible to economically substantiate the economic efficiency of growing grapes.


Author(s):  
Norhanishah Mohamad Yunus ◽  
Noraida Abdul Wahob

A plethora of studies have revealed the importance of new knowledge transfer from foreign multinational corporations (MNCs) in encouraging higher labour productivity and sustainable competitive advantages. However, less attention is given to low labour productivity issue despite the presence of FDI, especially in the developing country context. Most of the studies only heavily emphasised on 'technology' effects rather than 'knowledge' effects on the host country as a result of the presence of foreign technology. As Malaysia is one of the major FDI recipients in Southeast Asia, the specific spillover effects of each FDI investor country in Malaysia, need to be studied. With an abundance of MNCs, international technology transfer is considered as an imported mode for technology acquisition in a developing country like Malaysia. However, the benefits of FDI spillovers on labour productivity function in Malaysia remain ambiguous, even when classified according to specific investor countries. Globalisation and liberalisation have seen trade and investment activities booming, thus increasing multilateral relations between Malaysia and other countries regardless of their level of development. Thus, this study may help the Malaysian government to justify the cost that should be invested to attract more FDI inflows towards the manufacturing industries in the short run. Keywords: spillover effects, Foreign Direct Investment, labour productivity, technology spillovers, knowledge spillovers


2013 ◽  
pp. 532-538 ◽  
Author(s):  
Muhammad Kadwa ◽  
Carel N Bezuidenhout

The Eston Sugar Mill is the newest in the South African KwaZulu-Natal sugar belt. Like most other mills, it can be argued that there are inefficiencies in the supply chain due to systematic issues, which reduce optimum performance. It was alleged that mill processes are slowed, or stopped, on Sundays, Mondays, as well as some Tuesdays and Wednesdays, due to pay-weekends, because of the associated cutter absenteeism. This increases the length of the milling season (LOMS), increases milling costs and reduces the average cane quality for the season. Data on cane deliveries to the Eston Mill, over a period of five seasons, were analysed to study the magnitude of the problem. It was statistically verified that cane shortages occur immediately after payweekends and it was conservatively estimated that cutter absenteeism occurs between 25–29 days per season, which increases the LOMS by six to ten days. The associated cost of this problem equated to an average of US$159,500 (approximately EUR120,000) per milling season. In this paper, an alternative harvesting system scenario is suggested, assuming that mechanical harvesters be used after a pay-weekend, to mitigate the impacts of cutter shortages. However, the solution is calculated to be risky. When the cost of new equipment was considered, only two of the five seasons were able to justify the associated costs.


2020 ◽  
Vol 79 (Suppl 1) ◽  
pp. 514.2-514
Author(s):  
M. Merino ◽  
O. Braçe ◽  
A. González ◽  
Á. Hidalgo-Vega ◽  
M. Garrido-Cumbrera ◽  
...  

Background:Ankylosing Spondylitis (AS) is a disease associated with a high number of comorbidities, chronic pain, functional disability, and resource consumption.Objectives:This study aimed to estimate the burden of disease for patients diagnosed with AS in Spain.Methods:Data from 578 unselected patients with AS were collected in 2016 for the Spanish Atlas of Axial Spondyloarthritis via an online survey. The estimated costs were: Direct Health Care Costs (borne by the National Health System, NHS) and Direct Non-Health Care Costs (borne by patients) were estimated with the bottom-up method, multiplying the resource consumption by the unit price of each resource. Indirect Costs (labour productivity losses) were estimated using the human capital method. Costs were compared between levels of disease activity using the Bath Ankylosing Spondylitis Disease Activity Index (BASDAI) score (<4 or low inflammation versus ≥4 or high inflammation) and risk of mental distress using the 12-item General Health Questionnaire (GHQ-12) score (<3 or low risk versus ≥3 or high risk).Results:The average annual cost per patient with AS in 2015 amounted to €11,462.3 (± 13,745.5) per patient. Direct Health Care Cost meant an annual average of €6,999.8 (± 9,216.8) per patient, to which an annual average of €611.3 (± 1,276.5) per patient associated with Direct Non-Health Care Cost borne by patients must be added. Pharmacological treatment accounted for the largest percentage of the costs borne by the NHS (64.6%), while for patients most of the cost was attributed to rehabilitative therapies and/or physical activity (91%). The average annual Indirect Costs derived from labour productivity losses were €3,851.2 (± 8,484.0) per patient, mainly associated to absenteeism. All categories showed statistically significant differences (p<0.05) between BASDAI groups (<4 vs ≥4) except for the Direct Non-Healthcare Cost, showing a progressive rise in cost from low to high inflammation. Regarding the 12-item General Health Questionnaire (GHQ-12), all categories showed statistically significant differences between GHQ-12 (<3 vs ≥3), with higher costs associated with higher risk of poor mental health (Table 1).Table 1.Average annual costs per patient according to BASDAI and GHQ-12 groups (in Euros, 2015)NDirect Health CostsDirect Non-Health CostsIndirect CostsTotal CostBASDAI<4917,592.0*557.32,426.5*10,575.8*≥43769,706.9*768.05,104.8*15,579.7*Psychological distress (GHQ-12)<31468,146.8*493.6*3,927.2*12,567.6*≥32609,772.9*807.2*4,512.3*15,092.5*Total5786,999.8611.33,851.211,462.3* p <0.05Conclusion:Direct Health Care Costs, and those attributed to pharmacological treatment in particular, accounted for the largest component of the cost associated with AS. However, a significant proportion of the overall costs can be further attributed to labour productivity losses.Acknowledgments:Funded by Novartis Farmacéutica S.A.Disclosure of Interests:María Merino: None declared, Olta Braçe: None declared, Almudena González: None declared, Álvaro Hidalgo-Vega: None declared, Marco Garrido-Cumbrera: None declared, Jordi Gratacos-Masmitja Grant/research support from: a grant from Pfizzer to study implementation of multidisciplinary units to manage PSA in SPAIN, Consultant of: Pfizzer, MSD, ABBVIE, Janssen, Amgen, BMS, Novartis, Lilly, Speakers bureau: Pfizzer, MSD, ABBVIE, Janssen, Amgen, BMS, Novartis, Lilly


2014 ◽  
Vol 652 (1) ◽  
pp. 206-221
Author(s):  
Anton Harber

Two decades of contestation over the nature and extent of transformation in the South African news media have left a sector different in substantive ways from the apartheid inheritance but still patchy in its capacity to fill the democratic ideal. Change came fast to a newly open broadcasting sector, but has faltered in recent years, particularly in a public broadcaster troubled by political interference and poor management. The potential of online media to provide much greater media access has been hindered by the cost of bandwidth. Community media has grown but struggled to survive financially. Print media has been aggressive in investigative exposé, but financial cutbacks have damaged routine daily coverage. In the face of this, the government has turned its attention to the print sector, demanding greater—but vaguely defined—transformation and threatened legislation. This has met strong resistance.


2011 ◽  
Vol 8 (3) ◽  
pp. 196-208 ◽  
Author(s):  
Nirmala Dorasamy ◽  
Soma Pillay

This purpose of this article is to explore impediments to effective whistleblowing as a strategy for promoting anti-corruption practices within the South African public sector. Corruption, which violates the public service code of conduct; deters foreign investment, increases the cost of public service delivery, undermines the fight against poverty and unnecessarily burdens the criminal justice system. The article addresses the question on whether legislation on whistleblowing is adequate to encourage whistleblowing in the public sector. A review of literature determines that the effective implementation of whistleblowing legislation is largely dependent on addressing the challenges identified in the article. The quantitative research method was employed in the study to ascertain the views of employees in the public sector on whistleblowing. Empirical findings confirm the hypothesis that the protection of whistleblowers through legislation is inadequate to encourage whistleblowing. The article provides a conceptual framework for the effective achievement of the intended outcomes of whistleblowing in the public sector.


2019 ◽  
Vol 23 (2) ◽  
pp. 150 ◽  
Author(s):  
Saptawartono Saptawartono ◽  
Kumpiady Widen ◽  
Hendrik Segah ◽  
Yanarita Yanarita

The Bukit Tangkiling Conservation Area has great potential for natural resources, including clean water, honey bees, recreation services, and religious services. There is also potential for split stone, which had been mined by the people from the rock hills in the area. The potential utilization of these natural resources trigger conflicts between interests to maintain the function and existence of conservation areas with the interests of using split stone for the community in order to meet the development needs of the city of Palangka Raya and its surrounding regions, at the cost of damaging the existing area. As an input in managing the conservation area Bukit Tangkiling is well implemented, research is needed on the social and economic conditions of the community’s surrounding the area. The research used survey methods and respondents are determined by purposive sampling and simple random sampling, and data analysis was both qualitative and quantitative. The communities around the Bukit Tangkiling conservation area are dominated by productive age (18-56 years), Banturung Village 59.00% and Tangkiling Village 54.97%. The level of education is relatively low, Banturung Village 72.96% and Tangkiling Village 73.29%. Having low education, most of the people have difficulty in finding decent work. Aside from that, most people do not understand the function of the forest or the function of the conservation area and tend to be apathetic about the existence of the Bukit Tangkiling conservation area that must be preserved. For some of these poorly educated people, the work of mining rocks is the best alternative to meeting the economic needs of the household. Income obtained from mining rock ranges from 2-4 million IRD per month.


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