Van Wyk, Ch is J.
A icle
Economic ou look o he eigh ies, egional de elopmen
s a egy and indus ial decen aliza ion
Sou h A ican Jou nal o Business Managemen
P o ided in Coope a ion wi h:
Uni e si y o S ellenbosch Business School (USB), Bell ille, Sou h A ica
Sugges ed Ci a ion: Van Wyk, Ch is J. (1983) : Economic ou look o he eigh ies, egional
de elopmen s a egy and indus ial decen aliza ion, Sou h A ican Jou nal o Business
Managemen , ISSN 2078-5976, A ican Online Scien i ic In o ma ion Sys ems (AOSIS), Cape Town,
Vol. 14, Iss. 1, pp. 24-28,
h ps://doi.o g/10.4102/sajbm. 14i1.1142
This Ve sion is a ailable a :
h ps://hdl.handle.ne /10419/217822
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-----
·-·
24
In e aces
I
Koppel lakke
Economic
ou look
o
he
eigh ies,
egional
de elopmen
s a egy
and
indus ial
decen aliza ion
Ch is J.
an
Wyk
Join Managing Di ec o , The T us Bank
o
A ica L d.,
P.O.
Box 7694,
Johannesbu g 2000, Republic
o
Sou h A ica
Add ess o
The
Ins i u e o C edi Managemen in
Sou he n A ica a Eas London, Oc obe
13,
1982
The
p esen
economic
si ua ion
The economic upswing ha s a ed in ea ly
1978
p oduced
a bumpe g ow h a e
o
7
,80/o
in
1980,
and peaked in he
hi d qua e
o
1981.
The p esen downswing
is
he e o e
al eady some
12
mon hs old, compa ed wi h he p e ious
downswing ha las ed
40
mon hs and an a e age down u n
o
15
mon hs in he pos -wa pe iod.
This downwa d phase s ill has some way o go as a
numbe
o
obs acles o eco e y
will
con inue o p e ail o
some ime.
The in e na ional economic si ua ion
is
no ye con-
iden ly imp o ing. A e i al
o
he majo in e na ional
economies mus p ecede a meaning ul e i al
o
domes ic g ow h. Mo eo e , he Sou h A ican
economy usually akes some ime o espond
o
in e -
na ional ends.
The balance
o
paymen s
on
cu en accoun has s a ed
imp o ing, bu he di ici
is
s ill uncom o ably la ge.
This de ici
will
ha e o be educed subs an ially u -
he . In ac , no meaning ul eco e y can be expec ed
be o e a su plus
is
es o ed. S a ed di e en ly, na ional
spending i s has o be b ough wi hin ou coun y's
p oduc ion capabili ies be o e ano he expansion phase
can ma e ialize.
Long- e m in e es a es ha e eased ma e ially while
sho - e m a es ha e passed hei peaks, bu gene al-
ly
speaking in e es a es a e s ill high. The high in e es
a es can undamen ally be explained by insu icien
sa ings
in
he economy and as sa ings a e no expec ed
o eco e apidly, in e es a es
will
mos likely emain
a ela i ely high le els o some ime o come.
A se ious obs acle
is
he high a e
o
in la ion. In la-
ion educes domes ic spending powe , causes ha d-
ships among he
less
well-o and dis o s economic
decisions. Mo eo e , Sou h A ica's in la ion a e has
o some ime now ended o exceed he ise in he le el
o
p ices
o
ou majo ading pa ne s wi h ob ious
ad e se implica ions o he in e na ional com-
pe i i eness
o
ou
expo s.
Sho - and medium- e m economic ou look
In b oad e ms he ollowing a e he mos likely
de elopmen s:
S.-A .
Tydsk . Bcd y sl.
1983,
14(1)
The economy now appea s
o
be abou
hal way
h ough he downwa d leg
o
he cycle. This
implies
ha economic ac i i y
is
likely o emain dep essed
o
as long as he nex
12
mon hs. A cyclical
low
poin
is
expec ed owa ds he end
o
1983
and
a nex
eco e y
is
unlikely
o
ga he pace be o e ea ly in I
984.
The
g ow h in he eal g oss domes ic p oduc
is
o ecas
a
less
han
I
0/o
o
1983
which will all sho o
his
yea 's expec ed g ow h a e.
In
1984
he g ow h o
g oss domes ic p oduc could accele a e again
owa ds
some
30/o
o
peak
a
ound
70/o
in
1986.
The cu en accoun
o
he balance
o
paymen s
will
show ano he de ici o
1983
a e a eco d de ici
his
yea ,
bu
su pluses can be expec ed owa ds he
end
o
nex yea . This iew implies sluggish domes ic
ex-
pendi u e
and
consequen ly declining impo s o
he
nex
12
mon hs
o
so.
Sho - e m domes ic in e es a es ha e passed hei
peak
and
a e in a cyclical downwa d end. This
end
will become mo e p onounced om ea ly
1983
on-
wa ds. By he end
o
1983
he p ime o e d a
a e
migh well be down om he p esen
200/o
by
some
5
pe cen age poin s. Long- e m in e es a es also
seem
o
ha e peaked
and
ha e, in ac , showed su p isingly
la ge declines al eady, bu om now onwa ds o
he
nex yea
o
so hese a es a e unlikely o ease
ma e ially
u he . The ea e he downwa d end could
become
mo e p onounced again un il 1985.
I
am
un o una ely no op imis ic ega ding in la ion.
I
appea s
ha
he a e
o
in la ion (as measu ed
by
he yea -on-yea inc ease in he consume p ice
index)
has peaked in he second qua e
o
I 982, bu
i
is
doub ul whe he a subs an ial educ ion
is
on he
ca ds
o he o eseeable u u e. Demand pull
on
p ices
will
educe o e he nex
12
mon hs
o
so, bu cos -push
p essu es a e likely o emain p ominen . Following
las
yea 's a e age a e
o
in la ion
o
15,20/o,
he o ecas
o
1982
is
an
a e age
o
a ound
150/o.
Fo
1983
a
s ill
uncom o ably high a e
o
a ound
120/o
is
o eseen.
The a e age in la ion a e o he pe iod
1984
-
86
is
unlikely o be ma e ially lowe .
The
longe - e m economic ou look
Sou h A ica
is
gene ally conside ed as ha ing a ela i ely
high longe - e m g ow h po en ial. I suppo his
assess-
men , o a numbe
o
easons:
The coun y has a weal h
o
aw ma e ials. The p ices
o
hese commodi ies ha e no pe o med
well
on wo ld
ma ke s in ecen yea s,
bu
he a ailabili y
o
as
quan i ies
o
indus ial aw ma e ials
is
undeniably
_a
s ong plus ac o in he long un. Mo eo e , he e
1s
s ill conside able scope o bene icia ing a conside able
numbe
o
aw ma e ials be o e expo ing.
Sou h A ica has a subs an ial ag icul u al po en ial
and
is
a ne ood expo e . This implies economic
as
well
as socio-poli ical bene i s
and
could e en p o ide
in e na ional nego ia ing le e age.
The Republic's ene gy si ua ion
is
ela i ely a ou able.
P esen indica ions a e
ha
he
coun y could become
a ne expo e
o
ene gy by he middle
o
his decade.
S.
A .
J. Bus. Mgm . 1983,
14(1)
_ Sou h A ica has a na u al ma ke in A ica - he
po en ial
o
which is
no
nea ly exploi ed op imally.
(A
majo d awback, un o una ely,
is
hese coun ies'
sho age
o
o eign exchange
o
pay o impo s).
_ Despi e ce ain disad an ages pe aining o as popula-
ion g ow h, a la ge
and
g owing popula ion can
on
balance be ega ded as a po en ially a ou able long-
e m g ow h ac o . This ac o will assume mo e im-
po ance as Blacks
a e
d awn u he in o he labou
ma ke which will occasion a sus ained imp o emen
in
hei s anda d
o
li ing.
-The a ailabili y
and
implemen a ion
o
sophis ica ed
echnologies p o ide a s ong base o u u e g ow h
bo h by way
o
u he impo eplacemen and new
expo s.
- A de eloped in as uc u e
o
oads, po s, powe and
wa e supply, communica ions
and
bulk anspo se -
ices
a e essen ial o u u e g ow h. Sou h A ica
is
e y
a ou ably posi ioned in his ega d.
-The calib e
o
managemen
and
en ep eneu s in Sou h
A ica
is
second
o
none. This esou ce
is
one
o
he
mos elling in my p edic ion
o
a as -de eloping,
ela i ely compe i i e
and
e icien economy o e he
nex decade
o
mo e.
Sou h A ica's non-ag icul u al eal domes ic p oduc
g ew
a an annual a e age
o
4,7% be ween
1946
and
1981.
I
is
no impossible
ha
his achie emen
will
be
epea ed
o e
he nex decade. Howe e , a numbe
o
es aining
ac-
o s
ha e come in o play in ecen yea s, and a sligh ly lowe
long- e m g ow h a e is equally likely o ma e ialize du -
ing
he eigh ies.
-I
is
becoming inc easingly clea ha he economies
o
ou majo ading pa ne s ha e en e ed a p olonged
pe iod
o
slowe economic g ow h. I
do
no imply ha
hey
will
emain in ecession, bu hei longe - e m
a e age g ow h a es seem
o
ha e shi ed
o
lowe
le els. A p incipal eason o his is he ac ha he
popula ion g ow h a es in he majo Wes e n
economies ha e declined subs an ially; some o ze o
le els. This b ings
abou
and
a
he same ime ende s
su icien a slowe pace
o
g ow h.
A
he same ime,
he go e nmen s
o
he
majo
indus ial coun ies a e
showing much mo e esol e
o
con ain economic
excesses.
-I seems likely ha in
he
economies
o
ou
ading
pa ne s in la ion will be be e con ained du ing he
nex decade, compa ed wi h mos
o
he pas decade.
A less in la iona y in e na ional en i onmen migh
emo e some
o
he specula i e a ac ions
o
ou
p ecious me als
and
mine als, bu I
am
no so much
conce ned abou his. Mo e impo an
is
he po en ially
ad e se impac
on
Sou h A ica's in e na ional com-
pe i i eness
i
domes ic in la ion
is
no also ma e ially
educed. Pe sis en e o s
o
educe domes ic in la ion
may hus become impe a i e calling o sus ained
es ic i e policy ac ion
ha
migh dim medium- e m
g ow h p ospec s. Howe e , looking beyond a
medium- e m adjus men pe iod, a be e in e na ional
in la ion pe o mance can only be bene icial
o
all he
ading na ions
o
he wo ld economic communi y.
25
Sou h A ica has a se ious sho age
o
skilled labou .
We also ha e a as ese oi
o
labou ha can s ill
be ained. The skills sho age
is
bound o limi he
medium- e m g ow h po en ial, and he longe
we
ake
o signi ican ly enla ge he pool
o
skilled wo ke s, he
mo e se e e his cons ain
will
become.
- A sho age
o
capi al,
o
inadequa e domes ic sa ings,
could also inhibi g ow h. The unde lying end
o
sa -
ings
in
he Sou h A ican economy
is
dis u bing. In e-
cen yea s he declining p opensi y
o
sa e has been
somewha disguised
by
he pe iodic gold bonanzas, bu
he e
is
no escaping om he ac ha he declining
sa ings p opensi y blu s his coun y's longe - e m
g ow h p ospec s.
Al oge he , he longe - e m g ow h p ospec s imply ha
Sou h A ica
will
con inue o be an abo e-a e age pe o me
in he in e na ional league. Pu ing igu es on his s a emen
sugges s ha he g oss domes ic p oduc g ow h a e in he
non-ag icul u al sec o s
will
be somewha lowe in he
eigh ies han he
4,
71 /o
pe yea achie ed du ing he pe iod
1946-
81.
I migh no be oo a
o
he ma k o wo k on
an a e age a e
o
abou
41 /o
o he emainde
o
he
decade. This may sound on he
low
side
and, indeed, a be e
pe o mance
will
no be sco ed a
in
iew
pa icula ly
o
ou high popula ion g ow h. Bu his g ow h p ospec
is
ne e heless wo hwhile s i ing and wo king o and i s
achie emen
will
be accompanied
by
signi ican socio-
economic imp o emen s.
Die
belang lks e
aannames
wa
hie dle
scena io
onde li
Die )ange e myn ekonomiese siening be us
op
belang ike
onde liggende aannames. Ek s ip die belang iks es aan.
'n
In e nasionale ekonomiese oplewing sal
in
1983
begin o m aanneem, en e de
in
1984
e snel
om
'n
hoog epun in
1985
e be eik. In e nasionale in lasie
sal in
1983
'n
laag epun be eik en o
'n
piek in
1986
e snel. Teen hie die ag e g ond
sal
in e nasionale
kommodi ei sp yse ana
1983
begin e s ewig om ook
in
1986
'n
piek e be eik. Die goudp ys, wa nou in die
omgewing an
'n
laag epun e kee ,
sal
gedu ende die
olgende
12
maande mee ig ing k y om in 1986/87
lakke an onge ee weekee die huidige e be eik.
Die in e nasionale poli ieke si uasie me be ekking o
Suid-A ika
sal
deu g o e an agonisme in buu s a e
en e o is ebed ywighede in g ensgebiede gekenme k
wo d. Ekonomiese en mili e e eali ei sal eg e bie -
die d uk
op
'n
ela iewe lae p o iel hou. Die Wes e se
bondgeno e
sal
aanhou om poli ieke en kons i usionele
e ande ing in Suid-A ika binne
'n
aamwe k an
kons uk iewe be okkenheid e p opagee .
Binnelandse poli ieke on wikkeling en kons i usionele
he o ming sal waa skynlik e al die Swa es
se
poli ieke aspi asies nie en olle be edig nie. Teen die
ag e g ond an s e k swa poli ieke aspi asies e midde
an alle ipiese ekonomiese p obleme an die De de
We eld
sal
die ege ing poog om Swa es
se
deelname
aan
die Suide A ikaanse ma kekonomie e
e gemaklik en e e g oo .
26
Di
is
juis hie die laas e aspek wa ons
na
die belang ike
aangeleen heid an s eekon wikkelings a egie
en
ekonomiese desen alisasie lei, wa Ee s e Minis e P. W.
Bo ha
so
na aan die ha le.
Die
oogme ke
an
lange
e nyn
on wlkkellng•
s a egle
Die
e wan skap ussen ekonomiese on wikkeling en die
sosiale, poli ieke
en
eiligheidsi uasie
is
i Suid-A ika an
besonde e belang.
'n
Volgehoue, hoe lak an ekonomiese
on wikkeling, gepaa dgaande me aansienlike we kskep-
ping,
is
onon bee lik i goeie binnelandse olke e e hou-
dinge, sosiale ha monie en nasionale eiligheid. We kskep-
ping moe dus besonde e p io i ei on ang. Daa om moe
die
on wikkelings a egie daa die soo ekonomiese on wik-
keling nas ee wa
in
'n
hoe ma e we kgeleen heid skep.
As
ons hie die a gumen
'n
s ap e de neem, dan kom
di daa op nee da on wikkelingsbeleid en -s a egie
op
'n
wyse
ge o mulee
en
gei'mplemen ee moe wo d wa die
dinamiese g oeik ag e an die geso is ikee de 'Ee s e-we eld'
-nywe heidsekonomie an Suid-A ika doel e end
na
die
minde on wikkelde gebiede kanalisee .
'n
Lange e myn ekonomiese on wikkelings a egie i
Suide A ika moe ge olglik
op
die olgende konsen ee :
-Riglyne i we kskepping, deu e al
ekonomiese g oei aan e moedig;
opleiding
en
he opleiding an a beid p io i ei e gee;
a beidsmobili ei e e hoog;
a beidsin ensiewe p oduksie aan e moedig;
kleinsake aan e moedig;
die sogenaamde in o mele sek o ui e bou.
-Riglyne i die handhawing
an
'n be edigende
ekonomiese g oeikoe s (wa die skepping an mee
we kgeleen hede onde le).
Riglyne i
'n
be e geog ajiese e sp eiding an
ekonomiese bed ywighede deu e al
on wikkeling an die p ime e sek o e s imulee ;
on wikkeling bui e die me opoli aanse gebiede e
s imulee ;
nywe heidson wikkeling
oo
'n
bepe k e ge al g oei-
pun e e e sp ei;
la en e onde neme s alen in onde on wikkelde
ge-
biede
en
nie-blanke be olkingsg oepe e on wikkel.
As
so
'n
s a egie g oo liks slaag, sal
'n
be e e sp eiding
an die g o e inkome
o
wel aa olg wa deu
'n
dinamiese p oses an mannek agon wikkeling en geleen -
heidskepping daa ges el wo d. Hie die s ewe
is
e a in
die egionale on wikkelingsp og am wa in
1981
by die
Goeie Hoop-be aad aangekondig is.
Elemen s
o
a
s a egy
o
egional
de elopmen
Meaning ul economic p og ess in he Na ional S a es
and
bo de a eas equi e a s a egy consis ing
o
he ollowing
elemen s.
Mode nizing ag icul u e as p ima y gene a o
o
employmen and income and, in good ime, as supplie
o
aw ma e ials o indus ial p ocessing.
De eloping local ini ia i e and
an
en ep eneu ial class
in
he decen alized a eas. Local businessmen will ha e
o become p ominen in expanding p i a e business in
S.-A . Tydsk . Bed y sl.
198],
l4(I)
he de eloping egions
o
complemen he
con ibu ions
o
ou side in es o s.
De eloping public se ices such as educa ion,
go e n.
men adminis a ion
and
police as hese
se ices
also
o e signi ican u he employmen oppo uni ies.
A con inued
and
conscious e o
o
a oid u he
con-
cen a ion in he exis ing
and
adi ional
me opoli an
indus ial complexes. The e a e a numbe o
good
a gumen s in a ou
o
such a policy. Howe e ,
he
ollowing mus su ice in he in e es s
o
b e i y:
Mo e
han
3 million Blacks li e in he
PWV-
me opole which yields abou
520Jo
o
he coun y's
in-
dus ial p oduc ion. Only abou
50Jo
o
ac o y
p oduc-
ion akes place in
he
ou de elopmen egions
wi h
he la ges black popula ions iz. Eas London/King
Williams Town/Queens own; Richa ds
Bay/Em-
pangeni; Pie e sbu g/Seshego
and
Bloem on ein/Qn.
e wach . Bu he popula ion
o
hese ou
de elop-
men egions numbe some 41
12
-5 million (i.e.
501170
mo e
han
in he PWV-a ea). Black unemploymen
in
he PWV-a ea
is
es ima ed a app oxima ely
8"7o,
bu
o he ou egions i anges be ween
250Jo
and
4011'/o.
Decen aliza ion undoub edly ep esen s a
meaning ul
p oposi ion
o
ake
jobs
o
he unemployed.
Finding
an
app op ia e echnology o he 'in o mal'
manu ac u ing sec o in o de
o
supply he ma ke
o
basic manu ac u es in he Na ional S a es.
Applica ion
o
labou -in ensi e cons uc ion
me hods,
i
possible, ela ed
o
you h-employmen p og ammes.
The challenges in he de eloping egions,
in
espec
o
employmen c ea ion, aining
and
de elopmen
o
human
alen a e, howe e , so eno mous ha conside able
addi-
ional in es men
and
en e p ise
o
he es ablished
business
om ou side hese a eas, in conjunc ion wi h he con ibu-
ion
o
he app op ia e public co po a ions,
will
con inue
o be equi ed in hese a eas.
The
p esen
Indus ial
decen aliza ion
policy
and
measu es
The indus ial De elopmen P oposals abled
by
P ime
Minis e
P.
W. Bo ha a he Good Hope Con e ence
in
No embe 1981, ecognize ha de elopmen needs
and
p io i ies, as well as loca ional disad an ages, di e
om
egion o egion. Hence a numbe
o
de elopmen
egions
ha e been iden i ied (eigh in all) by e e ing
o
he
ollow-
ing c i e ia:
he need o employmen c ea ion;
he need o a be e s anda d
o
li ing;
he po en ial
o
a egion.
Fu he sc eening
o
hese de elopmen egions led o a
sha pe ocus on he ollowing sub egions:
Me opoli an
a eas
( o example, Po Elizabe h/Ui en-
hage
in
he egion Eas e n Cape/Ciskei/Sou hem T an-
skei).
In such a eas he po en ial
is
mos a ou able
o
es ablishing indus ies because
o
es ablished and
well-
de eloped ma ke s
and
se ices ( he so-called bene i s
o
agglome a ion).
Deconcen a ion poin s, i.e. poin s adjacen o he
ma-
jo
me opoli an indus ial concen a ions, o p o ide
ou le s o u he expansion a he pe iphe y
o
such
s.
A .
J.
Bus.
Mgm .
1983,
14(1)
concen a ions.
_ Indus ial de elopmen poin s
in
which meaning ul
ma ke s and se ices could be de eloped ela i ely
ex-
pedi iously and wi h a high po en ial o c ea e employ-
men
in
he a ea (i.e. Be lin,
King
Williams own, Eas
London, Queens own, Bu e wo h, Um a a, Dimbaza
and o he s).
Two
se s
o
incen i es a e dis inguished:
-Those aimed a compensa ing indus ialis s o ce ain
long- e m cos disad an ages pe aining o he egion.
Among
hese a e eba es on ail a es and ha bou dues,
subsidized elec ici y a i s, assis ance wi h housing
o
key
pe sonnel, aining eba es
in
cash.
-Those incen i es aimed a alle ia ing sho - e m inan-
cing
p oblems -cash low igh ness
in
pa icula .
These
incen i es a e now paid in cash ins ead
o
ak-
ing
he o m
o
ax eba es as
was
he case p e iously.
The
majo i ems
in
his ega d a e in e es a e and en-
al
subsidies as
well
as cash eimbu semen
o
eloca-
ion cos s.
The
new
incen i es a e pa icula ly a ou able o he Eas
London
a ea. Fo example, he incen i e package o
es ablishing a capi al-in ensi e en u e imp o es
by
401170
whils
ha o es ablishing a labou -in ensi e indus y
is
be -
e
by
almos
1450/o,
compa ed wi h he p e ious incen i e
package.
Assessmen
o
he
challenge
I
he
imp o emen in he incen i es s ikes one as being
spec acula , hen he challenge acing
us
mus
be
deemed
a mammo h one. To simpli y he exe cise
o
demons a ing
he
immenseness
o
he challenge,
we
shall ocus on he a ea
Eas
London/Sou he n T anskei/Ciskei -ou hos a ea
o
his
con e ence.
I
has
been es ima ed ha he numbe
o
black
wo kseeke s
in
he T anskei and Ciskei
will
inc ease
by
ap-
p oxima ely 400 000 be ween
1980
and
1990.
To accom-
moda e
a la ge pe cen age
o
his addi ional supply
o
labou
in
he
a ea, conside able u baniza ion
is
essen ial. The o al
popula ion
o
he egion
will
ha e o u banize a an annual
compound a e
o
abou 4% o suppo he equi ed
de elopmen
o
indus y, comme ce and se ices
in
Eas
London,
King
Williams Town and he nea by owns/ci ies
inside
he Na ional S a es. Such a pace
o
job-c ea ing
de elopmen
in
indus y, comme ce and
se ices
going hand
in
hand wi h apid u baniza ion
will
equi e hea y in es -
men .
In
his
ega d i has been es ima ed ha in indus y alone
4000
new
jobs pe annum
will
ha e o
be
c ea ed i Eas
London
and i s su ounding a eas
is
o be ans o med in-
o
a ai ly indus ialized socie y o e he nex I
0-
15
yea s.
In
ac ,
i only
500/o
(2000 jobs pe annum)
o
his a ge
is
achie ed, a a ixed in es men
o
R25
000 pe job, an
a e age
annual in es men
o
R50 million
is
equi ed
in
plan , equipmen and o he ixed asse s.
Wo king capi al needs usually app oxima e
60c
pe RI
ixed
in es men , i.e. ano he
R30
million pe annum. Fu -
!he mo e, he de elopmen
o
ownships and o he hous-
ing
and he p o ision
o
comme ical and echnical se ices,
i.e.
he de elopmen
o
he non-indus ial sec o s,
is
likely
27
o equi e abou
RS
o each
RI
ixed
in es men . This
amoun s o an a e age annual
ixed
in es men ou side
in-
dus y
o
app oxima ely
R250
million (a
1981
p ices).
Al oge he hen an annual
ixed
in es men
o
abou
R300
million
is
equi ed,
which
o e a pe iod
o
10
yea s amoun
o oughly
R3000
million (a
1981
p ices) o c ea e
20
000
new
jobs
in
indus y (i.e.
2000
pe annum)
in
he Eas Lon-
don a ea. Addi ional wo king capi al equi emen s could
amoun o ano he
R300
million o e a en-yea
pe iod.
In
addi ion,
new
employmen oppo uni ies
will
also
be
c ea ed
in
he e ia y sec o and
se ices
ac i i ies ha
will
accom-
pany he indus ial de elopmen .
A success ul implemen a ion
o
he
new
decen aliza ion
policy
as
pa
o
he s a egy o egional de elopmen
will
unques ionably equi e eno mous addi ional in es men
in
Sou he n A ica,
as
is
clea ly shown
by
he example.
Such
in es men
will
ha e o come om en ep eneu s
in
he
Republic
o
Sou h A ica and o e seas, om businessmen
inside he egions; om he Indus ial De elopmen Co -
po a ion and he na ional de elopmen co po a ions, he
Small
Business
De elopmen Co po a ion, he ( o
be
an-
nounced) De elopmen Bank o Sou he n A ica and he
p i a e banking sys em.
The
de elopmen
bank
o
Sou he n
A ica
and
o he
Ins i u ions
Li le
is
o icially known abou he De elopmen Bank. I
seems
likely
hough ha he bank
will
be
a de elopmen aid ins i u ion o
less-de eloped
coun ies
in
Sou he n A ica;
will
ha e o ha e a capi al base
which
o e ime
will
ha e o
be
compa able o he asse s
o
he la ge Sou h
A ican comme cial banks;
is
likely o
be
unded
by:
sha e capi al p o ided
by
he membe coun ies;
bond
issues
and o he long- e m bo owings;
de elopmen unds made a ailable
by
he go e n-
men
o
he Republic
o
Sou h
A ica.
The p i a e banking sec o 's ole can
be
subs an ially
enhanced unde he p esen decen aliza ion measu es,
as
banks can
now
assess
and g an loans o egional de elop-
men on a pu ely comme ical basis.
The Small
Business
De elopmen Co po a ion (SBDC),
which
is
a join public/p i a e sec o en u e, ce ainly also
has
a
ole
o
play.
All go e nmen s
o
Sou he n A ica
ag ee
ha he de elopmen
o
small businesses and
o
he in o -
mal
sec o mus make a majo con ibu ion o job c ea ion.
The scope
o
he
SBOC
will
become clea e
as
i
mo es
u -
he along i s own lea ning cu e and
as
he pa e n
o
in-
ol emen
o
di e en go e nmen s and ins i u ions in he
egional de elopmen s a egy assumes g ea e cla i y.
Die
kanse
op
sukses
Tans
is
die kans op sukses moeilik kwan i isee baa . Wa
ons
wel
kan
se,
is
da die desen alisasiepoging o op
hede
nog
nie
naas enby die sukses behaal be
wa
sowel
poli ici
as
sakemanne sou
wou
he
nie.
Die
iloso ie
en
benade ing
an
die
huidige
desen alisasie-
beleid
en
-maa eels,
sowel
as die ui gangspun waa op di
be us
en
die b ee kon eks waa binne di on plooi wo d,
is

28
eg e wesenlik ande s as die o ige bedeling. So ook
is
die
aa d an die aanspo ings, wa baie mee sin i die belegge -
sakeman as an e o e maak.
Daa moe dus
'n
heelwa g o e kans i die huidige
desen alisasiebeleid
wees
om be e esul a e e behaal. Di
is
eg e gebiedend noodsaaklik da die On wikkelingsbank
ges al e k y en begin unksionee . Ve de sal die poli ieke
dialoog binne die aamwe k an
'n
kons ellasie an Suide -
A ikaanse s a e in ens en ge eeld moe oo gaan.
Bo
alles
sal daa
'n
geloo by al die moon like be okkenes geskep
moe wo d da di bie we klik om
'n
lang e myns a egie
gaan wa ge eeld wee gee aluee en, waa nodig, aangepas
sal wo d
en
wa e sel de yd ook me die Republiek an
Suid-A ika
se
on wikkelings a egie inge asee
is.
Koo dinasie an beslui e, ui sp ake en op ede in hie die
e band deu alle be okke ege ingsleie s
is
absoluu nood-
saaklik i goeie esul a e. Die in es e ingsbeslui e wa
geneem sal wo d, skep be okkenheid en be e doen me
isiko's wa oo be eklik
Jang
e myne s ek. Om
'n
hoe
pe sen asie an daa die beslui e posi ie e laa ui d aai, sal
die s eekson wikkelings a egie en die nywe heidsdesen ali-
sasiebeleid aliyd die hoogs e ma e an geloo waa digheid
moe he; en di sal boonop
'n
sigba e geloo waa digheid
moe
wees.
Nego ia ing
echniques
P.J.
Liebenbe g
Execu i e Chai man, Finansbank Limi ed
Add ess deli e ed by M .
P.J.
Liebenbe g, Execu i e
chai man, Finansbank Limi ed, Johannesbu g.
Hen y Kissinge who
is
p obably one
o
he mos ex-
pe ienced nego ia o s in he wo ld
is
on eco d as saying,
' he
way nego ia ions a e ca ied
ou
is
almos as impo -
an as wha
is
being nego ia ed.'
I p opose oday o discuss he
way
nego ia ions should
be unde aken bu
a
he ou se I mus make i pe ec ly
clea ha he e
is
no simple way, no de ini i e one way,
no absolu e way because al hough di e en nego ia ions
migh e eal common pa e ns e e y nego ia ion
is
di e en .
These di e ences a ise no only om he ac
ha
e e y
business deal
is
a new en u e wi h i s own cha ac e is ics
bu also because in he p ocess
o
nego ia ing one
is
deal-
ing wi h di e en people, people wi h hei own pe -
sonali ies, cha ac e is ics, manne isms, wis s
o
mind. The
many pe mu a ions which all hese ac o s b ing abou mean
ha e e y nego ia ion
is
a new expe ience and he big ad-
an age which an accomplished nego ia o has o e he un-
ied nego ia o
is
ha he has de eloped an in ui ion which
enables him o an icipa e, o be lexible and o ecognize
he men al p ocesses
o
he people he
is
dealing wi h.
The e o e, I canno gi e you
an
ABC in he
a
o
nego ia ion. The e
is
simply no way whe eby I can impa
S.-A .
Tydsk . Bed y sl.
198J,
l4{l)
o you su icien knowledge o enable you o
become
suc-
cess ul nego ia o s in
one
easy lesson. All ha I
can
do
is
ou line basic p inciples which I hope
will
be
o
help
o
you
should you ind you sel es as pa
o
he nego ia ing
p o-
cess in he
b oad
ield
o
me ge s and acquisi ions.
No nego ia ion can ake place, le alone succeed,
unless
he g ound wo k has been done and unless one
is
ho oughly
schooled in he need o p epa e one's case.
The i s s ep
ha
a nego ia o mus be able o
do
is
o
iden i y wha he basic ac s a e. Wha do you
eally
wan
ou
o
he nego ia ion and a all imi:s hese basics
mus
be
clea ly held in
one's
mind
and
ne e los sigh o .
This
un-
damen al p inciple applies wi h equal emphasis
whe he
one
is
he agg esso
o
he ic im in a akeo e si ua ion.
Be o e you go anywhe e nea he nego ia ing
oom
you
mus examine you case and clea ly iden i y you
s eng hs
and you weaknesses. The e
is
ne e a nego ia ion
wi h
one
single clea -cu p oposi ion. The e is,
o
cou se,
one
de ini i e end -
o
buy
and
o
sell -and in he end
esul
a nego ia ion hinges
on
p ice. How much he
agg esso
o
buye
is
p epa ed o pay and a wha p ice he
selle
is
p epa ed
o
elinquish his p ope y. Bu hese ac o s
o en
a e hedged in wi h a la ge numbe
o
side issues and
i
is
impe a i e
ha
he nego ia o clea s his mind so ha
in
ecognizing he side issues he ne e loses sigh
o
he
main
pu pose.
I make a p ac ice
o
lis ing all he poin s in ol ed.
Those
which appea ele an and hose which migh appea
no
o be so ele an . These poin s mus be s udied
ca e ully
so
ha
by a p ocess
o
elimina ion hose ac o s
which
a e
impo an
and
basic
o
he deal a e gi en p io i y.
The
es
mus be ecognized, pe haps used as nego ia ing
coun e s
o
disca ded as concessions as he nego ia ion goes
h ough
i s a ious s ages
o
de elopmen .
I
is
necessa y no only o examine you own
case
bu
o y o iden i y you opposi ion's posi ion as clea ly
as
you own.
On
he
o he
hand
one
mus ne e en e a
nego ia ing oom wi h
any
sha p p econcei ed ideas abou
he opposi ion case. While you a e looking o
his
s eng hs
and
weaknesses you mus cons an ly be awa e ha
hese
can change in he en i onmen
o
he nego ia ing
p ocess.
You mus be p epa ed o be lexible, no only in
nego ia-
ion bu also in he a i udes you migh ha e o adop
in
he cou se
o
nego ia ion.
When you ha e made you lis s
o
s eng hs and
weaknes-
ses
and
when you ha e made you lis s
o
p io i ies -
in
you case as well as
ha
o you opponen -
i
is
use ul
o discuss he deal wi h you p incipal, wi h you
colleagues,
no only o cla i y you own hinking, bu also o go
h ough
an
in o mal game play so
ha
you a i ude o he deal
is
sha pened. This enables you
o
see you objec i es in
clea
pe spec i e so ha you can de elop he pe suasi e
a gumen s which a e pa and pa cel
o
he nego ia ing
p o-
cess. While, as I ha e said, no wo nego ia ions a e
alike,
his game play enables
one
o
ecognize p eceden s ha
migh be applicable in he ask a hand.
I should be emembe ed
ha
one
ne e goes o
he
nego ia ing able wi hou some p elimina y s eps ha ing
al eady been aken. No nego ia ion s a s cold.
These
p elimina y s eps show clea ly whe he he posibili ies
exis