The institutional and financial arrangements for industrial decentralisation

Abstract

In a sense this paper provides a 'how to' of industrial decentralisation (ID)- the in­stitutions which should be approached by companies interested in ID, and the interrelationships among these institu­tions. The goal of this paper, however, is broader. It is to chronicle the institutional and financial changes which have been brought about by the reformulation of ID policy, and especially by the form­ation of the Development Bank of South­ern Africa (DBSA). Our object is to con­sider the implications of these changes. We are concerned both with the impact of the challeges on the private sector, and also with the extent to which they will contribute to the attainment of the objec­tives of Goverment policy. The paper consists of four sections. The first section contains a brief introduction to the political-economic framework of the ID policy. In the second we provide an overview of the institutional and finan­cial arrangements circa 1981. The over­view provides a basis both for tracing the changes which have occurred, and for suggesting why they were thought neces­sary. The final section contains our prognostications for the future of ID policy, especially as it affects the private sector.