African Journals Online
African Journal of Finance and Management

Abstracts (Volume 8 Number 1)

THE WORLD TRADE ORGANIZATION AND THE SITUATION OF DEVELOPING COUNTRIES

Mjema, G.D.

Abstract: The World Trade Organization (WTO) was formed in 1995 and, since then a number of countries - mostly the Lee Developed Countries including Tanzania - have become members of this global trading organization. The main objective of creating the WTO was to facilitate international trade. In this regard it has a rather ambitious objective eliminating tariff and non-tariff barriers to trade between nations. This paper critically analyses the existing international trade paradigms and the opportunities and threats posed by the WTO to a developing country such as Tanzania. In doing so, the paper reviews also the role of the United Nations Conference on trade and Tariffs (UNCTAD) and the achievements of the various trade rounds organized under its umbrella.



THE IRRELEVANCE OF FINANCIAL STATEMENTS FROM PARASTATALS IN TANZANIA

Ernest G. Kitindi

Abstract: The use of financial statement information has been well documented. It is expected to facilitate decision making pertinent to the user. However, financial statement information is useful only if it is available on time. This study sought to establish whether financial statements from Tanzania parastatals were availed on time, and if not, whether the delay was significant. Using the Normal Approximation Rule to test for significance in mean time difference, it was found that parastatals delayed in releasing financial statements. The difference in mean time for their release was found to be significant at the 1 percent significance level. It is thus concluded that information provided by financial statements from Tanzania parastatals was no longer relevant at the time it was available. Decisions made on the basis of that information, it is argued, were misguided.


IS HRM A NEW APPROACH IN THE EMPLOYMENT SCENE IN DEVELOPING COUNTRIES?
Emmanuel D. Ndikumana

Abstract: This paper attempts to discuss whether HRM represents a new approach to managing employment relationships in developing countries. It defines with brief descriptions the main key terminologies namely employment relationships, HRM and PM. The basic philosophy and values enshrined in the HRM model are explored. It compares and contrasts HRM, welfare, traditional Personnel Management and Industrial relations approaches. It pulls the threads together to draw a balance sheet of the discussion by portraying that HRM is an evolutionary rather than revolutionary process.


CAPITAL REGULATIONS AND FINANCIAL INSTITUTIONS: REFLECTIONS FROM THEORY AND EVIDENCE

Mutaitina, Oswald R

Abstract: In recognition of the important role banks play in any economy, numerous researches have been undertaken on how these institutions should be regulated. For example, researches on capital requirements have indicated that the capital base of a bank is vital for the protection of its creditors (its depositors) and hence for the maintenance of general confidence in its operations and the underpinning of its long-term stability and growth. Other researches have addressed the deposit insurance schemes as well as reserve requirements and their effects on the risk taking behaviour of banks. The principle objective of this paper is to review the current literature on capital regulations with the intent of exploring the implications of banking theory for optimal regulation. Results suggest that there are mixed arguments about capital regulations and its effects to banks' risk taking behaviour. It is inconclusive as to whether or not risk based capital requirement increases incentive for banks to take risks.


IMPACT OF FISCAL POLICY ON THE REAL EXCHANGE RATE: ANECDOTAL EVIDENCE FROM
TANZANIA

Patrick K.D. Mogoya

Abstract: In macroeconomics theory of open economies, it is argued that an adverse fiscal imbalance results into a higher real interest rate. In turn the higher real interest rate reduces net foreign investment and that this leads to an appreciation of the domestic currency. This study is a preliminary empirical investigation of the extent to which the budget deficit in Tanzania has had any relationship with the real interest rate and the real exchange rate.

After analysing relevant data covering almost three decades beginning in 1968, the study finds no evidence to support the above theory. Further empirical work remains to be done in order to establish the link between a budget deficit and movements in the real exchange rate for a small but open economy such as Tanzania. Only in this way can one justify the prevailing concerns among policy makers in Tanzania over the need to eliminate the budget deficit due to its alleged adverse effect on other macro-economic indicators.


WHY SOFTWARE ENGINEERS ARE RELUCTANT TO USE STRUCTURED METHODS

Mashaushi K.R.S.

Abstract: This paper looks into the reasons for an apparent boycott of theoretically proven structured techniques and methodologies by most developers. It begins by discussing the fact that when a methodology for developing software contradicts with the way human brains solves problems, the result is stress and thence burnout to the software engineer. Points that explain the boycott are identified and explained. The paper then proposes further study considerations needed to improve the use of structured tools.


LEGAL AND ADMINISTRATIVE CONSTRAINTS TO SMALL AND MEDIUM SIZED ENTERPRISES IN CAMEROON

Joseph T. Tahson and Clement N. Ngwasiri

Abstract: 101 SME (Small and Medium-sized Enterprise) operators were interviewed in a sample survey in Douala, Cameroon, to elicit the legal and administrative constraints to the creation and functioning of SMEs in Cameroon. The fulfilment of business entry requirements entails transactions costs which are by far more than the legal costs. For example, while the direct cost for a one-man business is 1,6000 francs, the sole proprietors who were interviewed reported an average expenditure of 107, 550 (672.19% of this amount) to fulfil the requirements. A bar operator spent on average 55,562 francs for a "licence" which should be obtained free from the Sub Prefect to the locality. A sole proprietor spent 20.88 days, general commerce 10.64 days while a bar operator spent 18.28 days to fulfil pre-entry requirements. A sole proprietor who succeeds to raise the minimal starting capital of 500,000 francs must raise an additional 371,781.4 francs (74.36% of the starting capital) for pre-entry requirements. If pre-entry taxes are included, the amount goes up to 1,091,196.5 francs (218.2% for the sole proprietor and 3,003,790.4 francs (600.8%) for incorporated SMEs. legal and administrative requirements thus form a major barrier to the creation of SMEs in this country.


RURAL AND MICRO-ENTERPRISE FINANCING IN TANZANIA: LESSONS FROM OTHER
DEVELOPING COUNTRIES

Satta T.A.

Abstract: Micro finance is widely regarded as a tool for poverty alleviation in developing countries and the level poverty in those countries makes it even more popular. This article looks at the progress so far made in Tanzania in instituting micro finance activities as a means of alleviating poverty. Evidence shows that little progress has so far been made in financing rural and micro-enterprise activities despite the inception of financial sector reforms in 1991. This little progress could be attributed to, among other things, the failure by the reforms to include comprehensive and complementing policies on rural and micro-enterprise financing. This of course leads to a number of adverse effects on micro finance activities. The article also reviews the micro finance experience of three countries in South America, East Asia and Africa using selected successful micro finance institutions in those countries and draws some
lessons that could be useful in strengthening the progress of micro finance activities in Tanzania.


ELECTRONIC MEETINGS TO SUPPORT A UNIVERSITY'S TRANSFORMATION, EDUCATION, RESEARCH AND PROFESSIONAL SERVICE

Rabson J. Mgaya and Gert-Jan de Vreede

Abstract: The University of Dar es Salaam's (UDSM's) corporate strategic plan sets the long-term plan and concepts that guide the transformation processes at the University. In this paper, we discuss a support environment UDSM can apply to facilitate the execution of the UDSM-2000 Transformation Program. This environment consists of a particular type of Information Technology that support electronic meetings, namely Group Support Systems (GSS). We will illustrate that the application of this technology and research not only supports the reshaping of the University's administrative processes and structures, but will also offer an excellent opportunity to improve the educational and professional services that it offers. It will help UDSM to build a reputation as a center of excellence in the region.