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Periodical article Periodical article Leiden University catalogue Leiden University catalogue WorldCat catalogue WorldCat
Title:Value Chains and Institutional Imperatives in Regional Industrial Development: The Implementation and Impact of Defence Offsets in the Western Cape
Authors:Haines, RichardISNI
Wellman, Gwendolyn
Year:2005
Periodical:Africanus
Volume:35
Issue:1
Pages:25-43
Language:English
Geographic term:South Africa
Subjects:industrial policy
industrial development
regional disparity
defence industry
Military, Defense and Arms
Development and Technology
Economics and Trade
Abstract:This article explores select experiences within the Western Cape Province regarding the implementation and impact of the defence offsets associated with South Africa's ZAR57bn arms acquisition package, the Strategic Defence Programme. The Programme includes both defence-related counter-trade investment, namely the defence industrial participation scheme, and non-defence-related invesment, namely the national industrial participation scheme. The nature and spatial deployment of the national industrial participation and defence industrial participation offsets is found to confirm existing spatial patterns and inequalities in the South African economy. The employment creation possibilities offered by the offset projects seem limited. There was a relative lack of contact between the obligors and their agents, the Department of Trade and Industry and Armscor, on the one hand, and organized business and local and provincial government on the other. While certain of the national industrial participation projects conform to the sectoral priorities in the DTI's push for the creation/expansion of value chains within and without the national space economy, the current crop of projects is disappointing in their size and ambition, and in the short term at least will have few tangible benefits for the Western Cape economy. While the defence industrial participation scheme in the Western Cape seems more focussed, there is little attempt to investigate and consolidate linkages between the defence industrial participation and national industrial participation projects. Bibliogr., notes, ref., sum. [ASC Leiden abstract]
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