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African Journal of Finance and Management

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Volume 11, Number 1, July 2002
Abstracts

FOOD SECURITY MANAGEMENT THROUGH PUBLIC POLICY

Prof H. K. R. Amani*

Abstract: This paper emphasizes the role of public policy in addressing food insecurity.  It begins with an elaboration of the food security concept.  In this regard, the paper argues that the conceptual framework for food security should seek to ensure that food is available and accessible to each individual in sufficient quantities to guarantee nutritious diet and good health.  In terms of food availability, the paper addresses three aspects, namely, food production, food trade/markets and food aid.  In all of these, public policy is crucial to ensuring good performance.

 

In terms of access to food, the paper argues that there is need to develop appropriate policies and institutions that promote investment in productive assets, improves human capabilities and skills, expands commodity markets and trade opportunities for both agriculture and non agriculture commodities, and promotes social capital.  These recommendations are based on the fact that the aspect of food accessibility takes food security issues further afield, with poverty and under-development being root causes of food insecurity.  To this end, the paper argues that sectors other than agriculture should become prominent, thereby bringing to the fore issue such as employment generation, broad-based economic growth and sustainable development.  In all of these good public policy is crucial.

 

FINANCIAL ACCOUNTABILITY OF PUBLIC CORPORATIONS IN A LIBERALISED ECONOMY: THE CASE OF AUDITING IN TANZANIA

Cornel K. Mtaki*

Abstract:  For more than three decades since 1967 the role of public corporations in the Tanzania economy was dominant.  However, their poor financial management and loss-making character could not be underestimated either, particularly by the taxpayer who was ultimately responsible for sustaining them.  For instance, in the year which ended in June, 1991, a year before public corporations were lined up for privatization, the aggregate losses accumulated by the loss making institutions exceeded the aggregate profits realized by the profit making enterprises by Tanzania shillings 4,616 million.  In an economy dominated by the public sector, surplus from this sector was expected to be the major source of public finance and the determinant factor in the growth of the economy.  Unfortunately, its performance defied this expectation presumably due to poor financial accountability.  Financial accountability in public corporations was and still is, one of the mandatory requirements.  In this context legislators have always made it mandatory for public corporations to have their accounts audited annually and cause the same to be submitted to a minister who, in turn, lays them before the National Assembly, the people’s representative organ, for final scrutiny and verification.  In order to facilitate the audit function the public corporations are also required to keep and maintain proper books of accounts.  All these requirements are taken in order to ensure that public money is properly expended and accounted for.

 

 

THE ROLE OF MICRO CREDIT SCHEMES IN THE GROWTH OF SMALL AND MICRO BUSINESS ENTERPRISES IN BOTSWANA                                                             

D. R. Sathyamoothi and B. S. Khupe*

Abstract: Small and micro enterprises in Botswana are relatively young.  (G. Sunny & V. Babikanysia, 1994).  Although this is the case, the Government has long recognized the importance of developing the small business and all efforts are made to encourage them through various assistance programmes.  In its policy formulation processes, the Botswana government is guided by four major economic factors: Rapid economic growth, economic independence, sustained development and social justice.  These are principles enshrined in the country’s National Development Plan for the past two decades (Government of Botswana, 1988 a).

 

For its part, SMME encourages rapid economic growth by increasing employment prospects thereby enabling economic independence by reducing dependence on imports (Government of Botswana, 1988 b); contributes toward sustained development by upgrading citizen skills through on-the-job training and providing essential training for employees who would be better empowered to start other own businesses (Government of Botswana, 1988 a). SMME also promotes social justice by creating sustained employment for unskilled workers (Alexander.1983).

 

The biggest stumbling block towards flourishment of small and medium enterprises in Botswana is finance and the Botswana government has both realized this fact and raised to the occasion by way of establishing a Micro Credit Scheme administered by the National Development Bank.  The study looked into the role played by the scheme in the growth of small and micro enterprises.  Two sets of questionnaires were distributed for data collection, one targeting the national Development Bank (NBD) administration and the second to the beneficiaries of the scheme.  The study revealed that the scheme has been partial successful in addressing its intended objectives.  The most prominent problem faced by the scheme administrators being overdue loan repayments which have over time mounted an aim of addressing problems identified by the research study.

 

 

EXPORT MARKETING STRATEGIES: A GLOBAL COMMUNICATION EMPHASIS – Elisante ole Gabriel*

Abstract: This paper will give a general overview of what is meant by globalisation as well as factors encouraging the globalisation concept.  Communication as a social phenomenon at the global dimension will be briefly discussed.  More specifically the paper will address the issue of export marketing strategies, their weaknesses and strengths.  Globalization is considered to be a concept of taking the whole world as one huge market.  with homogeneous needs.  Depending on the knowledge of the exporter, this can be useful but if not handled with care can be misleading.  In the real world it might be difficult to get the homogeneous   need of customers across the world.  People are different and the differences are different.  The key success factor is for the exporter to have a proper knowledge of the alternative export strategies and make a “strategic strategy choice”.  The worst scenario is to choose not to choose.  Companies and/or individuals who are dealing with export transactions have to identify and understand their export objectives before working out the export sstragegies.  It is the rule of the game that successful strategies ought to succeed the intended objectives.  It is also becoming increasingly important for exporters to communicate the value they are exporting to their customers.  This communication should command the social global aspects.  If the social aspects are ignored in communicating the values, the business is destined to fail.  The question will not be whether it will fail or not but just when it is going to fail.  Therefore Exporters are encouraged not to be myopic in managing the export business.  They should see ‘beyond the wall’ and go where no man has ever gone before.

 

KEY WORDS: Export, Strategy, Globalization, Communication

 

 

INFORMAL FINANCIAL MARKETS: THE CASE OF CAMEROON

Hermann Logang*, Calving Shipley** & K. Michael Casey***

Abstract: Informal financial markets play an important role in providing capital in less developed countries.  This paper presents the organization of such markets and provides examples of how these markets operate concurrent with the formal financial sector.  Specifically, the paper provides a case study of the informal financial markets in the country of Cameroon.

 

 

FINANCIAL SECTOR REFORMS AND INVESTMENT EFFICIENCY IN SOUTH AFRICA- Nicholas Odhiambo*

Abstract: The effect of financial liberalization on investment in sub-Saharan Africa countries has drawn much attention in the recent literature.  The major thrust of the literature has been to understand the mechanism by which interest rate deregulation on one hand and elimination of other forms of financial repression on the other hand; affect the quantity and quality of investment.  This study attempts to empirically investigate the relevance of financial reforms on investment efficiency in South Africa using Johansen-Juselius cointegration method.  Contrary to the results of other previous studies, the results of this study fail to find a robust positive relationship between real interest rates and investment efficiency in South Africa.  The study therefore, concludes that positive real interest rates do not enhance the efficiency of investment in South Africa.

 

KEY WORDS: South Africa, Financial Liberalization, Investment Efficiency, and Growth.

 

THE ROLE OF THE ASSOCIATION OF CAMEROON ACCOUNTANTS (ONECCA) AS A REGULATORY BODY FOR THE ACCOUNTING PROFESSION IN CAMEROON.

Visemih William Muffee*

Abstract:  This paper focuses on the role of the Association of Cameroon Accountants (ONECCA); as a regulatory body for the accounting profession  in Cameroon.  The data collected have been used to carefully assess the effectiveness of the accounting institution, as a regulatory body.  The data reveals the extent to which effective regulatory structures are essential to the growth of the profession and the development of the country.  There is a clear need for a regulatory framework in the Accounting Profession, which should be set up by an umbrella body i.e. the Association of Cameroon Accountants (ONECCA).

 

The introduction gives a general background of this paper, with an eventual focus on the theoretical framework and a review of the relevant literature.  These are followed by empirical evidence that has been carefully analysied and presented in this work.  Data for the analysis was collected through the use of questionnaire, personal interview and observation.  The findings indicate that ONECCA is doing its best in regulating and controlling the Accounting Profession in Cameroon.  The research findings therefore recommend that ONECCA should set up an examination body to serve the needs of the accounting profession, which is a poorly populated and represented profession in Cameroon.

 

 

GLOBALISATION DRIVERS IN THE TWENTY FIRST CENTURY

S. Ramakrishna

Abstract:  For a global manager it is said that twenty first centenary offers an exciting and challenging atmosphere to work.  Does it mean a big change in the way the business has been conducted so far as far or simply means a change in emphasis on certain ways.  These currently, are some of the issues which are currently engaging the attention of economists, trade pundits and students international business in general.

 

So far, every manager has been used to work in a particular way.  It was Ok in a not so dynamic world of the past.  But in a constantly changing world of to-day, where past is replaced by dynamic present and the dynamic present is being replaced by more challenging future, the old ways of thinking and action plans are no longer suitable to the present day.  So, one has got to be extra alert and sensitive to the realities of an increasingly globalised world.  All this means a bit of uncertainty and unpredictable nature of the future.

 

 

LIBRARIES ARE INTELLIGENT FUNCTIONAL BUILDINGS

A.G. Nkhoma – Wamunza*

Abstract:  In the 21st  century, librarians must play a more proactive role in the planning of library buildings.  The paper argues that librarians must be knowledgeable about current and future space requirements to accommodate a wide range of activities and functions including information and communication technologies.  In view of financial constraints, librarians must also be knowledgeable about available options on how to create space in order to ensure provision of effective library services to users.  Advancements in new information technology and communication technologies must also be borne in mind when planning functional and intelligent library buildings of the 21st century.

 






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