Abstract
Ph.D. (Finance)
This research sets out to elucidate the constraints to discretionary savings and investments in
South Africa. The research identifies and explores three key themes, their underlying core
variables and in turn the core variable category variables, driving the current undesirably low
household discretionary saving in South Africa. These being i) physical aspects of constraints
variables; ii) the behavioural approach to the constraints variables; and iii) the policy
mechanisms constraints variables. The key question of this research is: What are the
constraints to discretionary saving and investment in South Africa?
This research deals with the key concern behaviour over time being the overall undesirably
low actual level and decline over time, of specifically South Africa’s household savings as a
key contributor to the National Savings Rate (NSR). This has been the smallest contributor to
the NSR for more than a decade and currently does not contribute at all to the NSR. The NSR
is important for the following reasons: i) it is a very good indicator of the general financial
health of the public and private sector; and ii) it is a very good indicator of potential future
economic growth capacity as domestic savings is converted into investments.
Household discretionary saving and investment is important for the following two economic
and social reasons: i) investment-led behaviour lies at the heart of renewed economic growth
and prosperity for the South Africa and ensures a more sustainable economically resilient
future than a consumption-driven economy; and ii) an investment- led economy is the
foundation of the individual’s social democratic constitutional right to equal opportunity
through participation in the returns from investments into the economy.
The situation, in which South Africa finds itself, with regard to the NSR could be classified
as a wicked problem requiring a strong normative management approach. The qualitative
research methodology of this study follows a structured grounded theory method underpinned
by the philosophy of critical realism. This rigorous qualitative research methodology is
complemented by the inclusion of the Delphi method, facilitated by means of technology, and
various systems thinking tools and disciplines. For its theory building process the research
draws on traditional economic theory and behavioural economics. The parent discipline for...