Abstract
D.Com. (Economics)
The South African economy has deteriorated over the past two decades
which has resulted In, amongst others, a lower economic growth rate with
Increased unemployment. To Increase the general standard Of living,
growth and development have become of the utmost Importance.
To speed up this process, South Africa needs a new approach to growth
and development. The approach suggested In this study, combines the
"orthodox approach", which concentrates on maximum growth, with the
"basic needs approach", which concentrates on the elimination of poverty.
The "combined approach" thus concentrates on (a) the dynamic sectors In
the economy which are considered as growth sectors, (b) those sectors
which contribute to the elimination of poverty and general soclo-economic
requirements and, finally, (c) Implement a structural adjustment programme
which will create a suitable climate in which sectors In (a) and (b) can
flourish.
The manufacturing sector is responsible for approximately 24% of the
added value of the South African economy. Given the "combined approach"
to development, this sector has the potential to make an even more
important contribution to South Africa's economic growth and development.
To optlmlse this contribution, one needs to know the potential contribution
of each manufacturing sector In relationto certain aspectsof development.
There is not much specific specific data available on the manufacturing
sectors in South Africa. In order to analyse the various manufacturing
sectors, the research partially required the compilation of the data series
used In the evaluation process. The data provided by this study has
never before been available to this extent in SouthAfrica.
The potentia_I contribution of the sectors was evaluated according to
specific aspects of development, namely: import replacement; export
promotion; inward industrialisation; the effective use of resources;
productivity; relative viability; job creation; and, finally, the redistribution
of growth between race groups and between regions. The sectors were,
according to each aspect of development, graded as leading, average and
lagging sectors. Through a compilation of the various modules, the
general position of the manufacturing sectors In terms of growth and
development can be determined as leading, average or lagging. The
grouping does, however, only serve as an indication and does not provide
the final answer.