| The Defence Offsets
and Regional Development in South Africa Abstract |
|
Richard Haines |
| This paper explores the current and potential development impact of the large industrial participation programme attached to the recent arms procurement package. While considerable benefits in terms of job creation and national and regional economic development are promised by these defence offsets, these benefits are open to question. Both the NIP (non-defence industrial participation and DIP (defence-related participation) aspects of the offsets are considered. The paper questions whether there is a sufficient integration between the prevailing regional development strategy and policies in the country and the conceputalisation, targeting and deployment of the offsets. It suggests too - following Henry Bruton's line - that South Africa's turbulent history of industrial development needs to be more actively appreciated in developing appropriate industrial policy. The relatively short time span for the identification and application of offset projects and investments by DTI and Armscor, and the extensive logistics and planning involved are acknowledged. However, it is argued that the offsets could have taken more congizance of the relevant international literature and international experience in regard to the promotion of more endogenous forms of regional development. Case study material is used to elaborate on these themes. |