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8/10/2019 5_Morfaw http://slidepdf.com/reader/full/5morfaw 1/41 The Implementation of the National Vision of Emergence John N. Morfaw, MBA, PM 1 SEMINAR PRESENTATION TOPIC: The Implementation of the National Vision of Emergence PRESENTED AT TH E Pan African Seminar for Coordinators and Officials in Charge of the National Vision for Emergence: How to Implement the Vision of becoming an Emerging Country by The Year 2025 Organized by the African Training and Research Center in Administration and Development (CAFRAD) Tangier, Morocco, September 24-26, 2012 BY John N. Morfaw, MBA, PM Founder/CEO, Tanyimor Foundation Inc. Ambassador, UNA-NCA, Washington DC Ambassador, Africa 2.0, South Africa Website: www.tanyimorproject.com 

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The Implementation of the National Vision of Emergence

John N. Morfaw, MBA, PM 1

SEMINAR PRESENTATION

TOPIC:

The Implementation of the National Vision of Emergence

PRESENTED AT THE

Pan African Seminar for Coordinators and Officials in Charge of the

National Vision for Emergence:

How to Implement the Vision of becoming an Emerging Country byThe Year 2025

Organized by the

African Training and Research Center in Administration and

Development (CAFRAD)

Tangier, Morocco, September 24-26, 2012

BY

John N. Morfaw, MBA, PM

Founder/CEO, Tanyimor Foundation Inc.

Ambassador, UNA-NCA, Washington DC

Ambassador, Africa 2.0, South Africa

Website: www.tanyimorproject.com 

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TABLE OF CONTENTS

1. 

INTRODUCTION

2. 

ORIGIN OF THE EMERGING MARKET ECONOMY CONCEPT2.1. 

PARADIGM SHIFT IN BUSINESS AND ECONOMIC DEVELOPMENT2.1.1.

 

Formerly isolated economies emerging as Global Partners

2.1.2. Paradigm Shift in Global Trends 2.2.  Emerging Market Parameters

3. 

FUNDAMENTAL FACTS ABOUT EMERGING MARKET ECONOMIES3.1. WORLD MAJORITY3.2.  EMERGING MARKET CONSUMERS3.3. EMERGING MARKET CITIES

4.  CHARACTERISTICS OF EMERGING ECONOMIES

5. 

STRATEGIC IMPLEMENTATION PLAN FOR EMERGENCE

5.1. 

Vision, Mission, Values, Philosophy, Goal, SMART Technique5.2. SWOT Analysis

5.3. PEST Analysis

5.4. STEER Analysis

5.5. EPISTEL Analysis

5.6. Administrative and Political Reforms 5.7. Educational and Social Reforms 

5.7.1.1.  Knowledge Management5.7.1.2.  Disciplines and Technologies of Knowledge Management

5.8.Legislative Reforms 5.8.1. Quality of laws and Regulations

5.8.2. Rule of Law5.9. Healthcare Service Delivery System

5.10. Industrial Development5.10.1. Innovation and Technical Standardization5.10.2. Six Sigma Methodologies5.10.3.3 International Organization for Standardization (ISO)5.10.4. ISO Methodologies

5.11. Transport Infrastructure

5.12. Information & Communication Technology

5.13. Financial and Banking Reforms

5.14. Housing and Real Estate Development

5.15. Natural Resources and the Environment 5.15.1. Resource Efficiency5.15.2. Environmental Cleanliness5.15.3. Built Environment5.15.4. Commitment to Future Sustainability

5.16. Diplomacy and International Cooperation5.16.1 African Regional Groups and Emerging Markets

5.16.2. Minimum Integration Program (MIP)

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5.16.3. Goals of the Minimum Integration Program

5.17. Total Quality Management (TQM)

5.18.1. Basic tenets of Total Quality Management

5.18. Monitoring & Evaluation (M & E)5.20.1. Objectives of Program Evaluation

5.20.2. Indicators of Monitoring and Evaluation5.19. Configuration Management

5.20. Capacity Building

6.  SOME MAJOR EMERGING MARKET ECONOMIES:6.1.  BRICS COUNTRIES

6.1.1.  Fundamental Facts About the BRICS Countries6.2.  MIST NATIONS6.3.  COMPARATIVE ANALYSIS OF THE "BRIC" COUNTRIES6.4.  BRAZIL ECONOMIC PLAN6.5.  CHINA ECONOMIC EMERGENCE PLAN6.6.  INDIA VISION 2020 PLAN

6.7. 

SOUTH AFRICA VISION 20306.8.  INDONESIA ECONOMIC PLAN-2005-20256.9.  GHANA VISION 2020

7. 

CHALLENGES OF EMERGING ECONOMIES

8. 

SUSTAINABILITY MANAGEMENT PLAN (SMP)

BIBLIOGRAPHY 

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1.  INTRODUCTION

Emerging Market Economies are the new market structures arising from digitalization, deregulation,

globalization, and open standards that are shifting the balance of economic power from the sellers to the buyers. An emerging market economy is a nation's economy that is progressing towards becomingadvance as shown by some liquidity in local debt and equity markets and the existence of some form ofmarket exchanges and regulatory body. Most of the emerging market economies are the rapidly growingand volatile economies of certain Asian, Latin America and African countries that pose a huge potentialfor growth but also pose significant political, monetary and social risks. Most of these markets arearising from digitalization, deregulation, globalization, political stability, and open standards that areshifting the balance of economic power from the sellers to the buyers.Emerging economies are often characterized by fast economic growth, increased foreign investment andincreased international political clout. Fast growth in these countries is evidenced by strong economicdata, as in rising Gross Domestic Product (GDP), GDP per capita, trade volumes and foreign reserves.

Emerging markets generally do not have the level of market efficiency, effectiveness and strict standardsin accounting and security regulations to be on par with advanced economies such as the United States,Europe and Japan, but they have physical financial infrastructure including banks, stock exchange and aunified currency.Although there are so many emerging economies nowadays, the most popular have been the BRIICSgroup of emerging market economy- Brazil, Russia, India, Indonesia, China and South Africa. In recentyears Market Index Makers such as Financial Times Stock Exchange (FTSE), Morgan Stanley CapitalInvestment (MSCI), Standard and Poor's (S & P) Dow Jones, The Frontier Group and the ColumbiaUniversity Emerging Market Group Players (EMGP) have come up with their own categorization ofemerging market economies.FTSE distinguishes between Advanced and Secondary emerging markets on the basis of their national

income and the development of their market infrastructure. According to their classification, theadvanced emerging markets are Brazil, Czech Republic, Hungary, Malaysia, Mexico, Poland, SouthAfrica, Taiwan, Thailand and Turkey, and the Secondary emerging markets are Chile, China, Columbia,Egypt, India, Indonesia, Morocco, Pakistan, Peru, Philippines, Russia and UAE.The Columbia University EMGP list includes Argentina, Brazil, Chile, Mexico, China, India, SouthKorea, Taiwan, Hungary, Israel, Poland, Slovenia and Turkey.The S & P, Dow Jones and MSCI list of emerging markets include brazil, Chile, China, Columbia,Czech Republic, Egypt, Hungary, India, Indonesia, Malaysia, Mexico, Morocco, Peru, Philippines,Poland, Russia, South Africa, South Korea, Taiwan and Thailand.The Frontier Group released a list of top 10 emerging markets that Western multinational seniorexecutives at Fortune 500 companies are tracking globally and they include China, Brazil, India,

Mexico, Russia, Indonesia, Columbia, Argentina, Chile and Turkey.

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2.  ORIGIN OF EMERGING MARKET ECONOMY CONCEPT

The emerging market economy concept came about as a result of the fundamental shift in economic and

 business paradigm around the world, various worldwide social, economic and political trends and thefact that many formerly isolated economies over the past decades have emerged as major players in the"global village'

2.1.  Paradigm Shift 2.1.1.  Paradigm Shift in business and economic development a.  Over the decades, there has been a shift from government regulation and protection to freer

markets based on private property and competition worldwide. b.  The fall of communism has been one of the most important international developments since

the World War 11. over 40% of the world's population faced a long and truly historical process of post-communist transformation and especially the crucial task of managing thetransition from plan to market. 

c. 

The success of the East Asian market tigers such as China, Indonesia, South Korea,Malaysia, Thailand. 

d.  Failures of nationalization and other market-distortion policies in many other developingcountries. 

e.  Failures of western welfare states 

2.1.2.  Paradigm Shift in Global Trends a.  Shift towards increased privatization and openness of many formerly bureaucratic and 'closed

economies' b.  Regional and global integration based on commonly accepted principles of private property

and competitive markets

2.1.3. 

Formerly isolated economies emerging as Global Partners a.  Increasing opportunities for profitable trade and investment worldwide 

b.  These emerging markets cover a large geographical and expanding are from EasternEurope, Asia, Latin America and Africa. 

c.  There are large and expanding and accounting for almost half of the world's populationwhich is hungry for modern goods and services. 

2.1.4.  In 2001, Jim O'Neill, The Head of the Global Economic Research Center at GoldmanSachs, coined the acronym "BRICs" to refer to Brazil, Russia, India and China, theemerging market economies (EMEs) that he thought would lead world economic growth forthe next fifty years. Since then, many economist, researchers, academicians and journalistshave written about the idea of the BRICs and the acronym has become commonplace.

Today we have the MISTs Nations (Mexico, Indonesia, South Korea and Turkey).

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2.2. EMERGING MARKET ECONOMY PARAMETERS 

Education Technology Employment

Stock Market Population

Inter. Organizations Politics/Stability

Housing Legislation

Finance/Banking Culture

Natural Resources Health

Environment Global Warming

Communication Transportation

Civil Rights

Diplomacy

EMERGING

MARKET

ECONOMY

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3. 

FUNDAMENTAL FACTS ABOUT EMERGING MARKET ECONOMIES

3.1. 

Developing economies make up 84% of the world's population. Emerging market incomes and purchasing power have increased and advances in international transportation, finance andcommunication have made them a very viable market for various products and services 

a.  Great disparity between the “Haves and the Have-not's”: Emerging markets have thelargest discrepancy between the rich and the poor. 

b.  Growing economic power: By 2015, emerging markets are projected to comprise 26%of the global economy. Their GDP is growing by an average of 4.5% because they aretransitioning to IT, manufacturing and service-based economies. 

c.  Rural and agrarian: Most developing economies are still dominantly rural and agrarian.About 56% of the population of emerging market countries live in rural areas and practice agriculture. 

d. 

Robust informal economy: About 56% of the populations of emerging markets work inthe informal sector of the economy. This fragmentation leads to difficulty in determiningincomes, prices, distribution and marketing. 

e.  Diverse and varied: Developing countries in general have diverse population, languages,cultures, sizes and economic measures 

f.  Large migrant populations: Most emerging economies are facing brain drain wheretheir professionals and expert migrant to work in Europe and the USA. But they have atremendous impact on the economy through remittances sent to their countries. Callingcards, mobile phone business and banking and training have grown in India, China andMexico because of the migrant population. 

g.  Small businesses are predominant: About 69% of those employed in the formal sector

work in micro, small and medium-sized businesses. h.  Alternate technology adoption: Because of electrical and weak telecommunication

network, other technologies are developed 

i.  Importance of social services: The greatest challenge for emerging economies is to provide citizens with basic educational, health and social services. 

3.2.  EMERGING MARKET CONSUMERS

a.  Young: Nearly 50% of the population of emerging market is under 25. Products and serviceshave to be designed and adapted to their needs. 

b.  Poor, but income is increasing: 51% of people in emerging markets live on less than $2.0 a

day. But because of the growing middle class their incomes are rising steadily. c.  Little access to credit: A majority in emerging markets does not have access to banking and

credit facilities. d.  May not have electricity: Power supply remains a much priced commodity in many

communities in emerging markets. e.  Increasing access to Technology: PC's and laptops are becoming increasingly common and

a mode of communication and education. 

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f.  Under-educated: Illiteracy remains very high in most rural communities in emerging marketeconomies. 

g.  Big Families: many families in emerging markets live in multi-generational householdsthereby increasing the size of the family compared to advance societies in Europe andAmerica. The average size of the household is between 4-6 persons. 

h. 

Multi-lingual: There are 5 major business languages in the world-English, French, Spanish,Hindi and Arabic. In emerging markets, more than 425 languages are spoken because of somany tribes and clans. China is unique with a national language and India has regionallanguages. 

i.  Unconventional Technology use

 j.  Alternate technology adoption

3.3.  EMERGING MARKET CITIES

a.  Urban population is soaring b.  Economic growth is closely linked with urbanization

c. 

 Nearly half of the world's population will live in emerging market cities by 2030d.  Consumption in emerging market cities is on the risee.  Midsized emerging market cities should not be overlookedf.  Passenger travel through airports in emerging market cities is skyrocketingg.  China dominates rankings of emerging market cities on IT connectivityh.  Emerging market cities are economically diversei.  Emerging market cities represent market opportunities and risks j.  Booming infrastructure investment in emerging market cities signals growth

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4.  CHARACTERISTICS OF EMERGING ECONOMIES

a.  Demanding Markets and Culture: Products and services also have to be adapted to local

cultures and traditions, which can be very different from those in the developed world.. Byadapting to different cultures, rugged environments, and demanding price-performance targets,companies can develop breakthrough designs for product and service offerings. From meetingthe demand for halal foods to offering Islamic banking services and cell phones that point theway to Mecca, companies can reach a Muslim market that accounts for one in five customers indeveloping markets. 

b.  Brain Drain: The developing world is exporting not only products and services to the developedworld, but also people. These immigrants are in touch with family and friends back home.Globally, immigrants sent home an estimated $93 billion in 2003, second only to foreign directinvestment as the largest financial flow from the developed to the developing world. Whileimmigrants are formally a part of developed markets, they are part of something much bigger.

These global Diasporas are defining the borders of markets and creating social networks thatstretch across the developed and developing world. By understanding the global social networksof immigrants and their friend and family back home, companies can draw on the resources ofthe developed world to meet the needs of end users in the developing world. Companies candevelop "bank shots" to sell products that are paid for in the U.S. but delivered to relatives inMexico or India. 

c.  Fragmented Markets: Developing markets are highly fragmented, with few national brands thathave a commanding presence. MTV and HSBC have succeeded by making their global brandslocal, market by market around the world. Branding strategies and portfolios need to be tailoredto the reality of fragmented, market-stall economies. By developing or acquiring strong local brands and tailoring global brands to local markets, companies can tap into the power of regional

communities. They can leverage their global brands and capture the imagination of the localmarket. 

d.  Youthful and Growing Population: While Japan, Europe, and the U.S. are worried about pensions and the rapid aging of their populations, emerging economies are young. While only 21 percent of the U.S. population is under the age of 14, this figure is 33 percent in India, 29 percentin Brazil, and 33 percent in Iran. Most of the world's population growth will take place indeveloping countries. A young population creates markets for education, games, entertainment,apparel, fast foods, cafes, fashion, magazines and books, beauty products, music, and other products and services. While young people are globally attuned, the youth in developed world,and companies need to be aware of the pushback from tradition.

e.  Limited Income and Space: Incomes and cash flows in the developing world are much lower.

In rural and poor segments, low income limits purchases. Saving rates in China and nine otherrapidly developing countries climbed from 20 percents to 34 percent between the early 1970sand early 1990s, at the same time that savings in industrialized countries fell. Homes are muchsmaller, so furnishings and other products need to be scaled accordingly. By reducing packagesize, offering small payments, using demand pooling, and tailoring products to small spaces,companies can build billion-dollar markets a few pennies at a time. 

f.  Weak Infrastructure: Infrastructure everywhere in the developing world is fragile orunderdeveloped. Transportation networks are nonexistent. Power failures are frequent. Clean

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water and sanitation are often lacking. Underdeveloped economic systems and restrictiveregulations have created thriving informal or parallel economies in developing nations. The weakinfrastructure creates opportunities for companies that can fill the gaps with the water purification systems, generators, inverters, and other products. 

g.  Underdeveloped Technology: Powerful new technology can leap across the boundaries of

developing world. Without the constraints of legacy systems, companies have opportunities tocreate new systems from scratch, often leapfrogging old technology. Technologies can spreadvery rapidly as consumers quickly adopt without the switching costs of developed-marketcustomers. 

h.  Weak Distribution Channels: Developing nations have poor distribution systems. In largecities distribution is often through small, hole-in-the-wall shops such as ' thepaanwalla' shops inIndia, the 'tiendas de la esquinas' on Mexico, and 'sari-sari' stores in the Philippines. A market of600 million is locked in India's villages, 42 percent of which have populations of less than 500,with weak connections to the outside world. 

i.  Rapidly Changing Markets: The precise trajectory this development will take will depend onfactors such as government regulations, traditional business practices and culture, and

companies’ actions. Rising incomes and improved economic conditions will change consumerhabits and society itself, creating predictable shifts, such as the increasing empowerment ofwomen, as these markets mature. These markets will present new challenges and opportunities ateach stage of their development. 

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5.  STRATEGIC IMPLEMENATION PLAN FOR EMERGENCE

5.1.  Principles

5.1.1. 

Vision: To transform the socio-economic life of the country by the year 2025. 5.1.2.  Mission: To provide top notch, high quality service delivery in all sectors of the

economy by 2025 

5.1.3.  Values: Placing great emphasis on equal rights, liberty and the pursuit of happiness to allcitizens, creating an enabling and customer-friendly business environment and being moreeffective and efficient in service delivery. 

5.1.4.  Philosophy: Creating an egalitarian society where all citizens enjoy an enhancedstandard of living, providing balanced and equal development to all sector and areas of thecountry. 

5.1.4. Goal: Ultimate Goal is to be a leading emerging market economy in Africa and the world

 by the year 2025. 5.1.5. The S.M.A.R.T. Technique in Goal setting: This is the process of developingspecific strategies and action plan to ensure the long-term sustainability of a project.Consideration focuses on a number of resources and competencies- financial, political,administrative, managerial, educational, cultural, social and economic needed for therealization of the project.The S.M.A.R.T technique is explained as follows: 

S- Specific,M- Measurable,A- Attainable, achievableR - Realistic

T- Timely (have a time frame)The technique may be used here to answer some fundamental questions in project design.Generally the effective and efficient implementation of the S.M.A.R.T. technique requires acomprehensive response to questions such as:Who –  who does whatWhat –  what tasks have to be accomplished?Why –  reasons or purpose for doing itWhen  –  establishment of a time frame of activityWhich –  identification of requirement and constraintsWhere –  identification of locationHow  –  logistics, transportation and communication issues

All these questions are answered to facilitate the evaluation of the goals and objectives of the project.

5.1.6. Strategic Implementation Plan Concepts:

The basic elements of implementation planning include specifying the goals and objectives,determination of program logic, targeting specific audiences, specifying desired outcomes,determining resource needs, setting up quality assurance, control and improvement mechanismsand selection of monitoring and evaluation techniques. An effective and efficientimplementation plan should involve SWOT Analysis, PEST Analysis, STEER Analysis,

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EPISTEL Analysis, Situational Analysis, Capacity Building, Administrative and PoliticalReforms, Educational and Social Reforms, Legislative Reforms, Healthcare Service delivery,Industrial Development, Transport Infrastructure, Information and Communication Technology,Financial and Banking Reforms, Housing Development, Natural resources and the Environment,Diplomacy and International Cooperation, Total Quality management (TQM), Knowledge

management, Monitoring and Evaluation and a Sustainability Management Plan (SMP).

5.2. SWOT ANALYSIS:

SWOT Analysis was the result of a research project by Albert S. Humphrey of StanfordResearch Institute from 1960-1970 on the failure of organizations. SWOT is acronym forStrengths, Weaknesses, Opportunities and Threats. Some examples of SWOT Analysis are:

5.2.1. STRENGTHS: Developed techniques, Reputation in the market place,

Competitive advantages, Resources, assets, people, Experience, knowledge, data,

Financial reserves, Marketing- reach, awareness, distribution, Innovation, Strategic

location, Price, value, quality, Accreditation, qualifications, certifications, Process,systems, IT Communication, Management success, Right product, quality andreliability.

5.2.2. WEAKNESSES: Shortage of consultants, Gaps in capabilities, Lack ofcompetitive strength, Poor reputation, Financial problems, Unmet deadlines, Cashflow problems, Unreliability and unpredictability of data, Poor leadership, Nonaccreditation, No direct marketing experience, No pilot or trial done, No plans.

5.2.3. OPPORTUNITIES: Market developments, Competitors vulnerabilities,

Industry or lifestyle trends, Technological developments and innovations, Global

influences, New markets-vertical or horizontal, Niche target markets, Business and product development, Information and research, Partnerships, agencies anddistributions, Volumes, production and economies, Local competitors with poor products, Good profit margins, New specialist application.

5.2.4. THREATS: Political effects, Legislative effects, Environmental effects, ITdevelopments, Market demand, New technologies, Vital contracts and partners, Lossof key staffs

5.3. PEST ANALYSIS (Political, Economic, Social and Technological):

Political- Major considerations- tax policy, labor law, environmental law, trade

relationships, tariffs, political stability. Economic- economic growth, interest rates, exchange rates, inflation rate. Social- health consciousness, population growth rate, age distribution, career attitudes. Technological- Research and Development, automation, technology incentives,technology change. Environment, weather, climate, tourism, farming, insurance.Legal- discrimination law, consumer law, antitrust laws, employment law, health andsafety laws.

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5.4.. STEER ANALYSIS- Socio-Cultural, Technological, Economic, Ecological andRegulatory 

5.4. EPISTEL ANALYSIS- Environmental, Political, Informatics, Social, Technological,Economic and Legal. 

5.6. ADMINISTRATIVE AND POLITICAL REFORMS:

5.6.1. Quality of Public Administration:

  Capability, professionalism and honesty of the system. 

  Service delivery and compliance with regulatory procedures  

  Non interference of corruption and patronage with administrative performance. 

  Bureaucrats implementing reforms enacted by elected officials. 

  Responsiveness and Accountability of the Government. 

  Active participation of legislators in policymaking and oversight of the executive. 

  Sufficient organization and representation of political parties to provide leadership,choices and action on issues that matter to voters. 

 

Opportunities for voters to make their voices heard between elections. 5.6.2. Policy Environment: Knowledge of how the game is played and accordingly targetadvocacy to achieve policy changes.

o  Reshaping of the policy environment to improve the decision-making process forfuture issues.

o  Strengthening reform constituencies while enhancing democracy by findingopenings to expand participation in the policy process.

  Free flow of Information.

  Government provision of mechanisms to promote transparency such as Freedom ofInformation Act etc.

  Wide availability of draft laws and regulations.

 

Ability of Independent News Media to have the freedom and capacity to spreadinformation on issues affecting citizens.

  Ability of Civic Society organizations to monitor the government, educate their members,and keep officials informed about civic needs.

  Transparency of corporate transactions with the public sector

5.7. EDUCATIONAL AND SOCIAL REFORMS

5.7.1. Major Considerations:

  Increasing Literacy Rate

 

Educational Infrastructure  Professional and Trade Schools

  Affordable Education

  ICT

  Scientific Education

  Career Development

  Literary development

  International Exchange Program

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5.7.2. Knowledge Management: is a contemporary business discipline dealing gathering,organizing, sharing, and analyzing knowledge in terms of resources, documents and people’s skills. It involves the identification, creation, representation and distribution ofknowledge. It is synonymous to continuous improvement, lifelong learning and learningorganizations.

Knowledge Management programs are tied to organizational objectives such as improved performance,competitive advantage, innovation, developmental processes and general development of collaborative practices. And involves programs like:

  Managing intellectual capital and intellectual assets in the workforce such as expertiseand know-how possessed by employees.

  Managing the proliferation of data and information in complex business environments.

  Increasing network connectivity between employees and external groups to improveinformation exchange.

  Leveraging the expertise of people across the board.

  Facilitating and managing organizational innovation and learning.

  Making available increased knowledge content in the development and provision of

 products and services.5.7.2. Disciplines and Technologies of Knowledge Management:

Cognitive Science: Insights from how we learn and know improves tools andtechniques for gathering and transferring knowledge. Groupware (Computer-supported Collaborative Work): Sharing and collaboratingis vital for organizational knowledge management through intranet etc. Library and Information Science: Catalogues, references, dictionaries all classifyknowledge for research; 

a.  Document Management: This helps in content accessibility and reusability. b.  Decision Support Systems: Insights from cognitive sciences, management

sciences, computer sciences, operational research helps to produce

computerized artifacts for quantitative and qualitative analysis and these aredecision tools for managers and organizations. 

Relational and Object Database: This is used for managing structured data and ithelps in representing and managing knowledge resources.Organizational Science: This is the science of managing organizational dealings withthe need to manage knowledge.

5.8. LEGISLATIVE REFORMS

5.8.1. Quality of Laws and Regulations:

i.  Extent of burden of regulations on administrators and citizens

ii. 

Incentives to encourage compliance with the laws and regulations.iii.  Laws acceptance and expediency with the customs, tradition and politics.iv.  Unintended regulation creating incentives for fraud and corruption

5.8.2. Rule of Law:i.  Based on three fundamental democratic principles; supremacy of law, equal

 protection under the law and impartial enforcement.ii.  Independency of the Judiciary-capability of upholding the law and checking

government abuses.

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iii.  Fair and consistent enforcement of laws.iv.  Ability of citizens to have recourse to court or arbitration procedures to

resolve disputes including commercial and contract dispute.v.

 

Evidence of denial of access to justice or formal property rights to any groups.

5.9. HEALTHCARE SERVICE DELIVERY SYSTEM

5.9.2. Basic needs:

o  Water supply- % of water access rate 

o  Housing- Living Space (square meter per capital) o  Health Services- Doctor/Patient Ratio 

o  Education- Student/Teacher Ratio 

o  Sufficient food, sufficient drinking water, safety, good sanitation, appropriatehousing, basic health needs, clothing 

o  Life expectancy and longevity, relationship, educational opportunities, genderequality, employment, strong family ties 

Healthcare Infrastructure. o  Affordable Medication. o  Enhance Nutrition/food production 

5.10. INDUSTRIAL DEVELOPMENT

o  Small and Medium-sized Enterpriseso  Agribusinesso 

Development of Extractive Industrieso  Improving Business Climateo  Tourism Developmento 

Research and Developmento  Energy Sector Developmento  Hydro-Electric Power developmento  Oil Exploration and Exploitationo  Transportation and Distribution Networks

5.10.1. Innovation and Technical Standardization:

5.10.1.1. Six Sigma Methodologies:

The Six Sigma Methodology is a business-driven multi-faceted approach to process

improvement, reduced cost and increased profitability with defects-free processes and products as its ultimate performance goal thereby giving room for projectsustainability. It was developed by Motorola in the 1980’s in response to the CEO’sdriven challenges to achieve a tenfold reduction in product failure in five years. TheSix Sigma Methodology seeks to improve the quality of process outputs by identifyingand removing the causes of defects and minimizing variability in manufacturing and business processes. A Sigma process is one in which 99.99966% of the productsmanufactured are expected to have zero defects. The prime goal is improving

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customer satisfaction, profitability and elimination of defects and all based on thefollowing statistical thinking paradigm:   Everything is a process, 

All processes have inherent variability  Data is used to understand the variability and drives process improvement

decisions.The Six Sigma doctrine advocates for continuous efforts to achieve stable and predictable process results; manufacturing and business processes that can be measured, analyzed,improved and controlled; and achieving sustained quality improvements requiringcommitment from the entire organization.

5.10.1.2. International Organization for Standardization (ISO):

The International Organization for Standardization (ISO) standardizes, organizes andcontrols operations in the manufacturing and service industries. It provides forconsistent dissemination of information, improves various aspects of the business-

 based use of statistical data and analysis, acceptance of the system as a standard forensuring quality in a global market, enhancing customer responsiveness to productsand services and encouraging improvement. The standards are useful to industrial and business organizations of all types, to governmental and other regulatory bodies, totrade officials, to conformity assessment officials, to suppliers and customers of products and services in public and private sectors, and to people in general asconsumers and end users. The ISO Quality Standard sets in place a system to depend on a strategy whoseimplementation is the basis for a Total Quality Management system. The standardscontribute to making the development, manufacturing and supply of products andservices more efficient, safer and cleaner and trade between countries easier and fairer,

which is the fundamental philosophy of the Total Quality Management concept. They provide the basis for health, safety and environmental legislation as well as technologytransfer. The ISO 8000-2000 family of Standards was developed to assist organizations andsizes to implement and operate an effective and efficient quality management systemmade of four core standards: - 

a.  9001 Model for quality assurance in design, development, production,installation and servicing.

 b.  9002 Model for quality assurance in production, installation and servicing.c.  9003 Model for quality assurance in final inspection and test.d.  9004 Model Guidelines for development of quality system elements and

management.The ISO 9000 series standards require the company to identify the need for statisticaltechniques and to implement and control such techniques. It also provides thecompany with a quality system that: -

1.  Standardizes, organizes and controls operations,2.  Provides for consistent dissemination of information,3.  Improves various aspects of the business- based use of statistical data and analysis,4.  Acceptance of the system as a standard for ensuring quality in a global market

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5.  Enhances customer responsiveness to products and service,6.  Encourages improvement.

5.10.1.3. ISO Methodologies:

DMAIC: Define, Measure, Analyze, Improve, Control Define: To define the process improvement goals that are consistent withcustomer demands and enterprise strategy. The tools are Benchmark,

Baseline, Contract Charter, and Voice of the Customer, Quality Functiondepartment, Process Flow Map, Project Management, Management by Fact. Measure: This is the measurement of the current process and collection ofrelevant data for future comparison. Tools are Defect Metrics, Data Collection,Forms, Plans and logistics, Sampling Techniques. Analyze: This is verification of relationship and casualty of factors. Tools areCause and Effects Diagrams, Failure Modes and Effects Analysis, Decision andRisk Analysis, Statistical Inferences, Control Charts, Capability, Reliability

Analysis, Root Cause Analysis. Improve: This is to optimize the process based upon the analysis usingtechniques like design and experiments. Tools are Design of Experiments,

Modeling, and Robust design. Control:  This is to ensure that any variances are corrected before they resultin defects. Tools are Statistical Controls, Control Charts, Time series Methods, Non-Statistical Controls, Procedural Adherence, Performance Management, and preventive Activities.

DMADV: Define Measure, Analyze, Design, and Verify: All these facilitate theeffective and efficient identification, conceptualization, feasibility studies, design,

analysis, monitoring and evaluation of projects. They all set standards for projectimplementation, measurement of inputs and outputs thus giving room for theirsustainability in the marketplace.

5.11. TRANSPORT INFRASTRUCTURE

o  Mass Transito  Road Network, Bridgeso  Maritime Transportation-Seaportso  Air Transport- Airports 

5.12. INFORMATION & COMMUNICATION TECHNOLOGY

ICT refers to unified communications and integration of telecommunications (telephones linesand wireless signals), computers as well as enterprise software, hardware, middleware, storage,and audio-visual systems which enable users to access, store, transmit and manipulateinformation.The African Undersea Cable also called Main One Cable went live in July 2010, and became thefirst subsea cable to bring open- access, ultra-fast broadband capacity to West Africa. It stretches

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some 7,000 KM from Seixal in Portugal through Accra in Ghana to Lagos, Nigeria and branchesout in Morocco, Canary Islands, Senegal and Ivory Coast. After the launch, more undersea fiber-optic projects have rolled out such as Glo 1 by the Nigerian group Globalcom. There are plans toextend the cable down to South Africa and connect with Seacom as well as the East Africanfiber-optic cable.

Africa is expected to achieve its Millennium Development Goals by 2015 as well as switch fromanalogue to digital transmission. This will give room for tremendous business potentials in allsectors of the economy.The voice market is well developed in Africa in such that the remotest villages have access to phone communication. Focus should be more on transformative application in education, health,government services, agriculture, financial transaction etc. Tele-commuting, Tele-Medicine,Tele-Education, e-Commerce and e-Governance should be encouraged. Automatic TellerMachines (ATM) already exist in many African countries for financial transactions.There is also the need to adopt more cyber-security measures for individual and corporate safety.In order to stimulate internet business more IP addresses are needed so there is need to migratefrom IPv4 to IPv6.

5.13. FINANCIAL AND BANKING REFORMS

Financial and banking reforms are necessary to improve business climate, instill fiscal discipline,stimulate economic growth, promote industrialization, facilitate contract negotiations, enableeffective and efficient resource mobilization, allocation and management, encourage partnership, promote good governance and management and provide good credit rating and funding fromcreditors.The objective is to create a sound economic foundation, grows jobs, protect consumers, protectthe stock market and other financial institutions and prevent financial crisis.Some major areas of financial reforms for emerging economies are:

i. 

Transparency and Accountability for all financial transactions.ii.  The supervision of all banking institutions by the Federal Reserve or Central Bank tocreate clarity and accountability.

iii.  Creation of Consumer Protection Agencies for consumers to get clear, accurateinformation for mortgages, credit cards, loans and other financial services products andservices from hidden fees, abusive terms and deceptive practices.

iv.  Regulate the banking and financial sector to void large unmanageable financialinstitutions with possibility of failing, risk management etc.

v.  Institute bankruptcy Laws to avoid fraud and abuse.vi.  Insurance Reform to monitor both national and international insurance services.

vii.  Whistleblower Committee to report financial violation banks, financial institutions and

financial professionals

5.14. HOUSING AND REAL ESTATE DEVELOPMENT

o  Urban density- Persons per square kilometer of urban spaceo  Available public green spaceo  Building efficiency- Building heating efficiencyo  Affordable Housing projects

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o  Mortgage facilities-bankso  Building equipment availability-cement, zinc, wood etc

5.15. NATURAL RESOURCES AND THE ENVIRONMENT

5.15.1. Resource efficiency:-  Power- Total electricity consumption (kilowatt-hour)

  Water demand- Water consumption (liters per capital)

  Waste recycling- % of industrial wastes recycled and utilized

  % of GDP from heavy industry- Heavy industry GDP/total GDP

  Use of renewable water resources, forest protection and Conservation, mineralresource exploitation control, endangered species control and Biodiversity.

  Gross Domestic Product (GDP), Per Capita Income (PCI), Consumer Price Index(CPI), inflation, employment, Public Debt

5.15.2. Environmental cleanliness:-

  Air pollution- Concentration of SOx, NOx.

 

Industrial pollution-Industrial SOx discharged  Wastewater treatment- % of waste water treatment

  Waste management-Domestic waste collected and treated

  Air quality, surface water quality, quality available food, available health

facilities, available healthcare professionals, good environmental hygiene.

  Consumption of renewable energy, emission of Greenhouse gases control, pollution control.

5.15.3. Built environment:-

  Urban density- Persons per square kilometer of urban space

 

Mass transit usage- % of passengers using public transportation

 

Public green space- Available public green space  Building efficiency- Building heating efficiency

  Good governance, equitable income distribution, population growth, justice,security, employment, social amenities, freedom and liberty, balanceddevelopment

5.15.4. Commitment to future sustainability:-

  Green jobs- # of environmental professionals per capital

  Investment in environment protection- Environmental sanitation funds

  Material consumption, organic farming, strategic planning, savings andinvestment

5.16. DIPLOMACY AND INTERNATIONAL COOPERATION

5.16.1. African regional Groups and Emerging Markets: Regional EconomicCommunities Recognized by the African Union. 1. Community of Sahel-Saharan States (CEN-SAD): Benin, Burkina Faso, Cape Verde;

Central African Republic, Comoros, Cote d'Ivoire, Chad, Djibouti, Egypt, Eritrea,Gambia, Ghana, Guinea-Bissau, Guinea, Kenya, Liberia, Libya, Mali, Mauritania,

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Morocco, Niger, Nigeria, Sao Tome & Principe, Senegal, Sierra Leone, Somalia,Sudan, Togo, Tunisia.

2. Common Market for Eastern and Southern Africa (COMESA): Burundi; Comoros;Democratic Republics of Congo; Djibouti; Egypt; Eritrea; Ethiopia; Kenya; Libya;Madagascar; Malawi; Mauritius; Rwanda; Seychelles; Sudan; Swaziland; Uganda;

Zambia; Zimbabwe.3. East African Community (EAC): Burundi, Kenya, Rwanda, Tanzania, Uganda.4. Economic Community of Central African States (ECCAS): Angola; Burundi;

Cameroon; Central African Republic; Chad; Democratic Republic of Congo; Equatorialguinea; Gabon; Republic of Congo; Sao Tome and Principe.

5. Economic Community of West African States (ECOWAS): Benin, Burkina Faso,Cape Verde, Cote d' Ivoire, Gambia, Ghana, Guinea, guinea-Bissau, Liberia, Mali, Niger, Nigeria, Senegal, Sierra Leone, Togo.

6. Inter-Governmental Authority on Development (IGAD): Djibouti; Eritrea; Ethiopia;Kenya; Somalia; Sudan; Uganda.

7. Southern African Development Community (SADC): Angola; Botswana; Democratic

Republic of Congo; Lesotho; Madagascar; Malawi; Mauritius; Mozambique; Namibia;Seychelles; South Africa; Swaziland; Tanzania; Zambia; Zimbabwe.8. Arab Maghreb Union (UMA): Algeria, Libya, Mauritania, Morocco, Tunisia.

5.16.2. Minimum Integration Program (MIP)

The MIP comprises those activities, projects and programs that the RECs have selected toaccelerate and bring to completion as part of the regional and continental integration process. Asa mechanism for convergence of RECs, it focuses on a few priority areas of regional andcontinental concern, where RECs could strengthen their cooperation and benefit from best

integration practices. The MIP incorporates attainable objectives from the African Union'sStrategic Plan (2009-2012), as well as a monitoring and assessment mechanism. It will beimplemented by the RECs and the member States of the AUC, in collaboration with Africa'svarious development partners. It embraces the variable geometry integration approach, accordingto which the RECs should progress at different speeds in their integration process. To this effect,the RECs will continue implementing their own priority program, and will at the same time try towork towards achieving the other goals in the MIP.

  Highlighting the regional and continental priority program initiated by the Commission andwho implementation, according to the principle of subsidiary, falls within the competence ofthe national or regional authorities.

  Strengthening the initiatives in progress with respect to economic cooperation among RECs,

and identifying measures likely to accelerate integration in selected priority sectors or areas.  Emulating successful integration experiences in certain RECs and replicating them in other

communities (as with the tripartite arrangement among COMESA, SADC and EAC).

  Helping the RECs identify and implement priority activities with a view to surmounting thevarious integration stages in Article 6 of the Treaty of Abuja and helping them implement theMIP through a clearly defined timetable.

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Highlight the regional and continental priority programs initiated by the AUC whoseimplementation, according to the principle of subsidiary, falls within the competence ofnational or regional authorities;

  Identify the regional and continental projects within the AUC and RECs whoseimplementation depends on the principle of subsidiary;

 

Strengthen current initiatives on economic cooperation between RECs, and identify measureslikely to accelerate integration in priority sectors or areas;

  Identify priority sectors requiring bold coordination and harmonization, within each REC andamong them;

  Emulate successful integration experiences in certain RECs and replicate them in others(such as COMESA-EAC-SADC);

  Help the RECs to identify and implement priority activities to fulfill the integration stages inArticle 6 of the Abuja Treaty and help the RECs to implement the MIP through a clearlydefined time table; and

  Identify projects and programs where implementation is based on inter-REC relationships.

5.16.3. Goals of the Minimum Integration Program, (MIP) 2009-2012

This is a mechanism for convergence developed by African Union Commission and theRECs to accelerate and completion of regional and continental integration policies.

1.  Gradual elimination of Tariff Barriers in all RECs2.  Elimination of Non-Tariff Barriers in the RECs3.  Simplification and harmonization of the Rules of Origin4.  Gradual harmonization of the customs procedure and the establishment of the

customs union in every REC with a common eternal tariff5.  Unlimited free movement of people in the regions and limited free movement of

 people among them

6. 

Free movement of goods in the regions7.

 

Gradual free movement of services and capital in the regions8.  Development of transport, energy and ICT infrastructures in Africa9.  Conflict prevention and resolution and post-conflict development in Africa10.  Speed up the implementation of the Comprehensive Africa Agricultural

Development Program.11.  Development of the industrial sector in Africa.12.  Establish a regional and continental platform to promote investment.13.  Development of the educational system in Africa14.  Promote the use of science and technology to eliminate poverty in Africa15.  Increase access of Africans to primary health care.

16. 

Promote the participation of women in economic development.17.  Promote democratic elections and changeover of political power.18.  Improve governance in the RECs.19.  Prepare instructions to facilitate harmonization of statistics in Africa.20.  Build the capacity of the RECs, the African Union Commission and member

states21.  Harmonize fiscal policies to address inflation, interest rates and fiscal deficits at

the level of each REC

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22.  Intensify actions for the establishment of payment systems, macro-economicconvergence and banking sectors of the African central Bank and the AfricanMonetary Fund

23. 

Set up the Pan African Stock Exchange

5.17. TOTAL QUALITY MANAGEMENT (TQM)

Total Quality Management (TQM) or Strategic management is a philosophy of totalorganizational involvement in improving all aspects of the quality of product or service provided by the organization. This concept is achieved through employee empowerment in decisionmaking, the use of facilitated teams in the organization, individual responsibility for productsand services, a strong customer service orientation, working from a set of values envisioning amission, maintaining commitment, sustaining motivation, prioritizing tasks, cooperating andcollaborating with others, communicating effectively and efficiently and seeking to continuouslylearn and grow.

5.17.1. BASIC TENETS OF TOTAL QUALITY MANAGEMENT:

Total Quality Management has some basic tenets, which continue to influence itsimplementation across corporations such as:

5.17.1.1. Systematic Approach to Problems:

Problems or opportunities for improvement are dealt with in many differentways, but quality organizations use a systematic, database approach to avoidmistakes and to eliminate short-term fixes that result in greater problems in thefuture - TQM is not a "quick fix." 

5.17.1.2. Focus on Action:

Posters, T-shirts and other promotional items do not improve quality on theirown. Without claims of quality, these promotional items become nothing morethan great jobs. TQM is not conveyed by slogans, but through the actions ofleaders and all employees.

5.17.1.3. Accepted and Practiced by All:

In order to work, TQM must be integrated into the daily operations of the entireorganization. All must reach the philosophies of TQM because it is not adepartmental or specialist function.

5.1.1.4. Change in Culture:

TQM involves many changes in individual thinking and organizational philosophy, and this does not happen overnight.

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5.17.1.5. Commitment to Top Leadership:

Without commitment from the top, TQM simply will not work, because itssuccess depends on good leadership. Leaders cannot delegate responsibility forTotal Quality.

5.17.1.6. Continuous, Systematic Improvement:

TQM affects the basic operational systems of an organization and provides forcontinuous improvement of these and all other day-to-day operations.

5.17.1.7. Long-Term Commitment:

TQM is infinite, a long-term project reading continuous efforts to improvesystems and adjust to the changing demand of customers. 

5.18. MONITORING & EVALUATION (M & E)

Monitoring is the systematic supervision of activities in progress to ensure that they are oncurse and schedule in meeting objectives and performance targets. It is a test or sampling on aregular or ongoing basis of a system, program, project or activity for any changes in application performance, transaction, problems and potentials for changes as well as the effectiveness andefficiency. This involves a systematic collection and analysis of data as a project progresses.Evaluation is the systematic determination of the merits, worth and significance of something orfollowing some certain set standards, an assessment of the degree to which a program, project,system or activity fulfills stated objectives and goals. This requires a comparison of actual project impact against the agreed strategic plans.

5.18.1. Objectives of Program Evaluation

i.  To inform decision on operations, policy or strategy related to ongoing or future program interventions.

ii.  To promote accountability and transparency to stakeholders, decision-makers anddonors.

iii.  To enable corporate learning and contribute to the body of knowledge on what worksand what does not work and why.

iv.  To verify and improve program quality and management.v.  To identify successful strategies for extension, expansion and replication

vi. 

To modify unsuccessful strategies.vii. 

To measure the effects and benefits of programs and project interventionviii.  To give stakeholders the opportunity to have a say in program output and quality.

ix.  To justify and validate programs to donors, partners and constituencies. x.  To enhance the generation and use of value-added evaluative information

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5.18.2. Indicators of Monitoring and Evaluation

a.  Economic Development Indicators:

b.  Average annual household income, Averageweekly/monthly wages, Employment, by age group, Unemployment, by age group, by

gender, Employment, by occupation, by gender, Government employment, Earnedincome levels, Average length of unemployment period, Default rates on loans, Ratio ofhome owners to renters, Per capita income, Average annual family income, % people below the poverty line, Ratio of seasonal to permanent employment, Growth rate ofsmall businesses.

c.  Social Development Indicators: Death rate, Lifeexpectancy at birth, Infant mortality rates, Causes of death, Number of doctors percapita, Number of hospital beds per capita, Number of nurses per capita, Literacy rates, by age and gender, Student: teacher ratios, Retention rate by school level, Schoolcompletion rates by exit points, Public spending per studnet, Number of suicides,Causes of accidents, Dwellings with running water, Dwellings with electricity, Number

of homeless, Number of violent crimes, Birth rate, Fertility rate, Gini distribution ofincome (see Glossary of Terms), Infant mortality rate, Rates of hospitalisation, Rates ofHIV infection, Rates of AIDS deaths, Number of movie theatres/swimming pools per1000 residents, Number of radios/televisions per capita, Availability of books intraditional languages, Traditional languages taught in schools, Time spent on listeningto radio/watching television by gender, Number of programmes on television and radioin traditional languages and/or dealing with traditional customs, Church participation, by age and gender :

d.  Political/OrganizationalDevelopment Indicators:

e. 

 Numbe of community organizations, Types of organised sport, Number of tournaments andgames, Participation levels in organised sport, Number of youth groups, Participation in youthgroups, Participation in women’s groups, Participation in groups for the elderly, Number of groupsfor the elderly, Structure of political leadership, by age and gender, Participation rate in elections, byage and gender, Number of public meetings held, Particiaption in public meetings, by age andgender  

5.19. CONFIGURATION MANAGEMENT:

Configuration Management is the process of managing products, facilities and processes by managing the information about them, including changes, and ensuring that they are what

they are supposed to be in the case. Configuration Management is most applied inengineering and computer generated products such as hardware, software, firmware,middleware, user interaction and documentation. It provides visibility and control of performance, functional and physical attributes. 

Scope:

  Defining the configuration management roles and responsibilities at theorganizational level.

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Orderly establishment, documentation and maintenance of product performance,function and physical attributes. 

  Management of changes to the attributes. 

  Access to accurate information essential to the product’s development, procurement, production, use, maintenance and eventual retirement 

Benefits:  Improve capability 

  Improve performance, reliability or maintainability 

  Extend life of product 

  Reduce cost, risk and liability 

  Correct defects 

5.20. CAPACITY BUILDING FOR EMERGING ECONOMIES

Capacity Building is the creation of an enabling environment with appropriate policy and legalframework, institutional development, including community participation, human resources

development and strengthening of management systems. Some agencies providing capacity building indeveloping countries are the World Bank, International Monetary Fund, United Nations DevelopmentProgram, Food and Agricultural organization, NGO’s, Asian Development Bank and the PopulationCouncil. 

5.20.1. Capacity to Implement Macroeconomic Policies That Support market Systems:

This involves the Structural Adjustment Policy implementation that encourage thedevelopment of market mechanisms that can effectively and efficiently allocate scarceeconomic resources and set prices for both production inputs and consumer goods.Economic stabilization policies should be implemented to reduce balance-of-deficit payments, rescheduling debts, controlling the money supply, reducing subsidies, and

restraining wage increases. 5.20.2. Capacity to Develop Liberal Trade and Investment Policies:

There should be capacity for export promotion, foreign direct investment, exchange rateadjustment, and the ease of investment restrictions and trade barriers.

5.20.3. Capacity to undertake and Sustain Political Reforms:

This involves creating new political institutions, new modalities of governance, and new political capacities to formulate and guide economic activities without undue interventionand control, protect national security and adjudicate conflicts according to equitable rules of

law.

5.20.4. Capacity to Establish and Sustain Decentralized Systems of Government:

Governments should be committed to the philosophy of decentralization, privatization andwider participation in decision making through strengthening local administrative units,delegating functions to regional authorities, devolving resources and responsibilities to

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local governments and involving the private sector in infrastructure provision and servicedelivery.

5.20.5. Capacity to Transfer Ownership and Control of State Enterprises to the

Private Sector:

This will generate revenue, reduce state administrative responsibilities, and provide moreefficient goods and services. Individual enterprises will also benefits from increased productivity, expansion of productive capacity and increased profits.

5.20.6. Capacity to Develop Social Institutions That Facilitate Market Transactions:

This is the ability to develop financial institutions that can extend credit and provide thefinancial resources needed by investors and entrepreneurs, establishing of Stock Exchangethrough which shares in private companies can be traded, rationalization and reorientationof the labor market, creating legal institutions through which business transactions can be

legitimized and conflicts settled, strengthen the system of property rights, develop new andeffective forms of corporate governance and developing efficient marketing and distributionsystems.

5.20.7. Capacity to Expand and Strengthen Private Enterprise:

This involves providing incentives and support for the development of small and medium-sized enterprises, restructuring large inefficient state-owned companies, and attractinginvesting in domestic industries by multinational corporations. This will lead to thegeneration of jobs needed to increased incomes and strengthen internal markets. This willfacilitate social mobility, economic stability and market expansion.

5.20.8. Capacity to Develop Human Resources for Participation in Market Systems:

Institutions should be developed that give business managers access to information about business processes, business systems, market, counseling, planning, financing.

5.20.9. Capacity to Develop an Entrepreneurial Milieu and a Value System That

Support Democratic Market Economies:

This is the creation of a social environment where individual and social values are essentialfor democratic market economies to thrive. This requires fundamental reorientation of

educational, religious, and social institutions that shape beliefs, attitudes, assumptions, andvalues.

6.  SOME MAJOR EMERGING MARKET ECONOMIES

6.1.  BRICS COUNTRIES: 

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6.2.  BRICS is the association of leading emerging economies, arising out of the inclusion of SouthAfrica into the BRIC group in 2010. B- Brazil; R- Russia; I- India; C-China; S- South Africa.

  With the possible exception of Russia, the BRICS members are all developing or newlyindustrialized countries.

  Indonesia is in the midst of a yearlong debut on the world stage; some analysts have called

for adding Indonesia to the ranks of the BRIC countries.  Presently, India holds the chair of the BRICS group. 

6.2.1.  Some Fundamental Facts about the BRICS Countries

  As of 2012, the five BRICS countries represent almost 3 billion people .

  Their GDP grew by 7.5% each with a combined nominal GDP of US$13.7 trillion.

  An estimated US$4 trillion in combined foreign reserves.

  Consume $1.7 Trillion in goods & services.

  Contribute to 2/3 of global output.

  They are Members of the G20 Summit.

 

All have large, fast-growing economies and significant influence on regional and globalaffairs.

6.3.  MIST Nations -

6.4. Mexico, Indonesia, South Korea and Turkey - are the four biggest markets in the GoldmanSachs N-11 Equity Fund (GSYAX). 

  Opened in February, 2011 to invest in what is considered the next big 11 emerging markets.

The fund has climbed 12 percent this year, compared with a 1.5 percent gain in GoldmanSachs’s fund for Brazil, Russia, India and China.

  The MIST economies more than doubled in size in the past decade, topping Germany lastyear, and may be outpacing the BRIC.

  Besides the MIST nations, the N-11 countries include Bangladesh, Egypt, Nigeria, Pakistan,the Philippines, Vietnam and Iran.

  Presently, India holds the chair of the BRICS group.

  the MIST nations have fewer than 500 million people, compared with about 2.9 billion in theBRIC nations

  Goldman Sachs’s N-11 fund had $113 million in assets and was invested in 73 stocks at the

end of the second quarter, while the New York- based bank’s BRIC fund had $410 million inassets and held 72 stocks.

  The MIST nations each account for at least 1 percent of global GDP and are likely to see that

share increase this decade.  Of the four countries, Mexico and Turkey are the most attractive at the moment.

  Goldman Sachs’s suggest that MIST is topping BRICs as smaller markets outperform. 

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6.5.  COMPARATIVE ANALYSIS OF THE "BRICs" ECONOMIESA critical analysis of the BRIC countries on their political and social systems, openness, productmarkets, labor markets, capital markets shows the differences to their approach to economic emergence.

Criteria BRAZIL RUSSIA INDIA CHINA

Political

Structure

Democracy isvibrant, bureaucracyis rampant. Thereare pockets ofcorruption in federaland stategovernments

A centralizedgovernment and someregional fiefdomscoexist. Bureaucracy isstifling. Corruptionexists at all level ofgovernment.

The democracy is vibrant.The government is highly bureaucratic. Corruptionis rampant in state andlocal governments.

The Community Partymaintains a monopoly on political power. Localgovernments make economic policy decisions. Officials mayabuse power for personal gains.

Civil Society Influential localmedia serves aswatchdog. Theinfluence of local

 NGOs is marginal

The media is controlled by the government. NGOs areunderdeveloped and

disorganized

A dynamic press andvigilant NGOs act aschecks on politicians andcompanies

The media is muzzled by thegovernment, and there are fewindependent NGOs. Companiesdon't have to worry about

criticism, but they can't counton civil society to check abuseof power.

Mode of

Entry

Both *Greenfieldinvestments andacquisitions are possible entrystrategies.Companies team upwith local partnersto gain localexpertise.

Both Greenfieldinvestments andacquisitions are possible but difficult.Companies formalliances to gain accessto government and localinputs

Restrictions in Greenfieldinvestments andacquisitions in somesectors make jointventures necessary. Redtape hinders companies insectors where thegovernment does notallow foreign investment

The government permitsGreenfield investments as wellas acquisitions. Acquiredcompanies are most likely tohave been state-owned andmay have hidden liabilities.Alliances let companies aligninterests with all levels ofgovernment.

Product

Developmentand

Intellectual

Property

Rights (IPR)

Local design

capabilities exist.IPR disputes withthe USA exist insome sectors

The country has a

strong local designcapability but exhibitsand ambivalent attitudeabout IPR. Sufficientregulatory authorityexists but enforcementis patchy.

Some local design

capability is available.IPR problems with theUSA exist in someindustries. Regulatory bodies monitor productquality and fraud

Imitation and piracy abound.

Punishment for IPR theft variesacross provinces and by levelof corruption

Supplier Base

and Logistics

Suppliers areavailable in theMercosur region. Agood network ofhighways, airportsand ports exists.

Companies can rely onlocal suppliers forsimple components.The European regionhas decent logisticsnetworks, but trans-

Ural Russia is not welldeveloped.

Suppliers are available butthe quality anddependability variesgreatly. Roads are in poorconditions. ports andairports are

underdeveloped.

Several suppliers have strongmanufacturing capabilities., butfew vendors have advancedtechnical abilities. The roadnetwork is well developed.Ports are excellent.

Brand

Perception

and

Management

Consumers accept both local andglobal brands.Global as well aslocal advertisementagencies are present

Consumers preferglobal brands inautomobiles and hightech. Local brandsthrive in the food and beverage industries.Some local and globaladvertisement agencies

Consumers buy both localand global brands. Globaladvertisement agenciesare present, but they have been less successful thanthe local advertisementagencies.

Consumers to buy productsfrom American, European andJapanese companies.Multinational advertisementagencies dominate the business

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are available.

Criteria BRAZIL RUSSIA INDIA CHINA

Market and

Managers

The large pool ofmanagement talenthas varying degreesof English proficiency. Bothlocal and expatriatemanagers holdsenior managers jobs

The large pool ofmanagement talent hasvarying degree of proficiency in English.And is supplemented byexpatriate managers.Employment agenciesare booming

The country has a highlyliquid pool of English-speaking managementtalent fueled but businessand technical schools.Local hires are preferredover expatriates.

There is a relatively small andstatic market of managersespecially away from theeastern seaboard. Many seniorand middle level managers arenot fluent in English. A largenumber of managers areexpatriates. Some members ofthe Chinese Diaspora havereturned home to work.

Workers

Market

Trade unions arestrong and pragmatic, whichmeans that thecompanies can sign

agreements withthem

Trade unions are present, but theirinfluence is decliningexcept in certain sectorssuch as mining and

railways

The trade unionmovement is active andvolatile, though it is becoming less important.Trade unions have strong

 political connections.

Workers can join thegovernment-controlled AllChina Federation of TradeUnions. Historically there wereno industrial actions, but there

have been recent strikes inHong Kong and Taiwan-ownedmanufacturing facilities.

Debt and

Equity

A good bankingsystem exists andthere a healthymarket for initial public offerings.Wealthy individualscan invest inoffshore accounts

The banking system isstrong but dominated by state-owned banks.The consumers’ creditmarket is booming andthe IPO market isgrowing. Firms mustincorporate localsubsidiaries to raiseequity capital

The local banking systemis well developed.Manufacturers can rely onlocal banks for localneeds. Equity is availablefor local and foreignentities.

The local banking system andequity markets areunderdeveloped. Foreigncompanies have to raise bothdebt and equity in homemarkets.

VentureCapital

A few private equity players are activelocally

Only companies in themost profitable businesses such as realestate development andnatural resources canaccess venture capital

Venture capital isavailable in some citiesand from the IndianDiaspora.

Venture capital availability islimited

Accounting

Standards

The financialreporting system is based on commonlaw system andfunctions well

The modified Sovietsystem of financialreporting works well.Banks are shifting tointernational accountingstandards

Financial reporting whichis based on local lawsystem functions well

There is little corporatetransparency. China'saccounting standards are notstrict, though the ChineseSecurity RegulatoryCommission wants to tightendisclosure rules

FinancialDistress

Processes allowcompanies to stay in business rather thango out of business.Bankruptcy processes exist butare inefficient

Bankruptcy processesand legislation are fullydeveloped. Corruptiondistorts bankruptcyenforcement

Bankruptcy processesexist but are insufficient.Promoters find it difficultto sell off or shut downsick enterprises

Companies can use bankruptcy processes in some cases. Write-offs are common.

Source: Harvard Business Review Spotlight, June 2005

Green F ield I nvestment  

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 A form of foreign direct investment where a parent  company starts a new venture in a foreign country by

constructing new operational facilities from the ground up. In addition to building new facilities, most

 parent companies also create new long-term jobs in the foreign country by hiring new employees.

Green field investments occur when multinational corporations enter into developing countries to buildnew factories and/or stores.

 Developing countries often offer prospective companies tax-breaks, subsidies and other types ofincentives to set up green field investments. Governments often see that losing corporate tax revenue is a small price to pay if jobs are created and knowledge and technology is gained to boost the country's

human capital.

6.6.  BRAZIL ECONOMIC EMERGENCE PLAN

1913-1980- Brazil experienced one of the fastest economic growth in the western hemispheredue to commodity prices and industrial production spurred by government spending programs.Growth stopped in 1983 when Brazil defaulted its foreign debts.1965-1985-Brazil was ruled by the military junta. There was the introduction of the IMF

Structural Adjustment Program (SAP) which led to currency devaluation, cuts in publicspending, wage freezes and subsidies reduction.1985- Civilian government installed which implemented administrative reforms1994- The "Real Plan" authored by the Finance minister, Fernando Cardoso was adopted. Helater became president and;

i.  encouraged the privatization and stabilization of the weak banking sectorii.  started the “Bolsa Familia" program, a conditional Income transfer program to help the

 poor.

6.6.1.  2002- Lula da Silva becomes President.

 

Continued the implementation of the "Bolsa Familia" program and lifted millions ofBrazilians out of poverty and created a very powerful middle class  Encourage foreign investment and fiscal discipline  Infrastructure started the Growth Acceleration Plan  Poverty and Inequality reduction plan  Increased openness to the world  Implemented administrative and institutional reforms

6.7.  CHINA ECONOMIC EMERGENCE PLAN

  China started the Five Year development Plan in 1949 to stimulate infrastructure and

social development 

Deng Xiaoping came up with the theory of "Growth First' focusing on growing theeconomy in all sectors

  Hu Jintao popularize the "Scientific Concept of Development" focusing on science and

technology  Jian Zenin came up with "Three Represents" concept  Represents Advanced Social production- Economic production  Chinese Advanced Culture- Cultural development

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  Fundamental Interest of the majority- political Consensus

6.7.1.  1953-1957- First Five Year Plan

  Assembled all forces of industrial construction centered on 156 construction projects and

694 large and medium-size construction projects.  Established foundation for socialist industrialization and developed socialist collective

ownership to establish the foundation for agriculture and handicraft, socialist reforms,capitalist industries and commerce

6.7.2.  1958-1962- 2nd Five year Plan  Focused on industrial construction, advanced technical improvement

6.7.3.  1966-1970- 3rd Five year Plan  Focused on agriculture, food, clothing, strengthening national defense, breakthrough in

technology, self-reliance, transportation, communication, education and scientific

research

6.7.4.  1971-1975- 4th Five year Plan

  Average growth rate reached 12.5%  30 Billion Yuan budget for infrastructural development

6.7.5.  1976-1980- 5th Five year Plan

  Steel and petroleum production 

Investment of 70 Billion Yuan in infrastructure

6.7.6.  1981-1985- 6th Five year Plan 

Enforcement of principles of reform, readjustment, rectification and improvement

6.7.7.  1986-1990- 7th Five year Plan  Creation of enabling economic and social environments

6.7.8.  1991-1995- 8th Five year Plan  Opening up to the world and modernization  GDP reached 5760 Yuan

6.7.9.  1996-2000- 9th Five year Plan

 

Modernization and Poverty Reduction 

Modern enterprise system  Social market economic system

6.7.10. 2001-2005- 10th Five year Plan

  Economic growth of 7% per year    GDP reached 12.5 Trillion Yuan 

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  Maintain balance of payments 

  Economic structural adjustment   Upgrade of industrial structures 

 

Strengthening of world competitiveness 

6.7.11. 

2006-2010- 11th Five year Plan

   New social rural areas  Optimization and upgrade of industrial structures  Promoting Regional development  Building a conservative-minded and environmentally-friendly society  System reform and opening up to the world  Boosting new – Izations

o  Industrializationo  Urbanizationo  Marketerization

InternationalizationThe Beijing Olympics of 2008 marked the integration of Western Civilization and ChineseCivilization.

6.8.  INDIA VISION 2020

A Vision for the New Millennium is the blueprint for India's development developed byPresident APJ Abdul Kalam and published in 1998. It examines the strengths and weaknesses ofIndia as a nation and offers a vision of how India can emerge to be among the world first foureconomic powers by 2020.Areas for development were identified based on India's core competences, natural resources and

talented manpower for integrated action to double the growth rate of GDP and realize the Visionof the Developed India.a.  Agriculture and food processing- with a target of doubling the production of food and

agricultural products by 2020. Agro food industries would lead to the prosperity ofrural people, food security and speed up economic growth

 b.  Infrastructure with reliable and quality electric power including solar farming for all parts of the country, providing urban amenities in rural areas and interlinking ofrivers.

c.  Education and Healthcare; to provide social security and eradication of illiteracy andhealth for all.

d.  Information and Communication Technologies: ICT to be used for tele-education,

tele-medicine and e-governance to promote education in rural areas, healthcare andalso transparency in administration. This would be a great wealth generator andcreation of a powerful middle class.

6.9.  SOUTH AFRICA VISION 2030

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Vision Statement: We, the people of South Africa, have far since the long lines of our firstdemocratic election of 27 April, 1994, when we elected a government for all.  Now in 2030 welive a country which we have remade.

Therefore, in 2030, we experience daily how we participate fully in efforts to liberate ourselvesfrom conditions that hinder the flowering of our talents.

 

We all see to it and assist so that all life's enablers are available in a humane way.  We all have actively set out to change our lives in ways which also benefit the

 broader community.

  We all assist the institutions we have creatively redesigned to meet our varied needs;we reach out across communities to strengthen our resolve to live with honesty, to beagainst corruption and dehumanizing actions.

  We know that those, to whom we have given the privilege to govern our land, do soon our behalf and for the benefit of all the people.

  We say to one another: I cannot be without you, without you this South Africancommunity is an incomplete community, without one single person, without onesingle group, without the region or the continent; we are not the best that we can be.

 

We acknowledge that each and every one of us is intimately and inextricably of thisearth with its beauty and life-giving sources; that our lives on earth are both enrichedand complicated by what we have contributed to its condition. 

  South Africa belongs to all its peoples: Now, in 2030, our story keeps growing as ifspring is always with us, Once, we uttered the dreams of a rainbow, Now we see it,living it, and across the land, in an abundance of color, When we see it in the faces ofour children, we know; there will always be for us, a worthy future. 

6.9.1.  Overall target of the South Africa Vision 2030 Plan

1.  Economy and Employment

2. 

Economic Infrastructure3.

 

Transition to low-carbon economy4.  Inclusive rural economy5.  South Africa in the region and the world6.  Human settlements7.  Education, training and innovation8.  Healthcare for all9.  Social protection10. Building safer communities11. Building a capable state12. Fighting corruption and enhancing accountability

13. 

Transforming society and uniting the country

6.10.  INDONESIA VISION PLAN, 2005-2025

The plan focuses on building an Indonesia that is Self-Reliant, Advanced, Just andProsperous. The eight National Development Missions are:

1.  Realizing a society that has high morals, ethics, culture and civilization based on thePancasila.

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2.  Realizing a nation that is competitive3.  Realizing a democratic society based on the rule of law4.  Realizing an Indonesia that is secure, peaceful and united5.

 

Realizing development that is equitable and just6.  Realizing an Indonesia that is balanced and sustainable

7. 

Realizing an Indonesia as an archipelago nation that is self-reliant, advanced, strong,and based on national interest

8.  Realizing an Indonesia that has an important role in the international community

6.10.1. National Long-Term Development Plan of 2005-2025

The fields of development are:1.  Social, Culture and Religion2.  Economics3.  Science and Technology4.  Infrastructure

5. 

Politics6.  Defense and Security7.  Law and State Apparatus8.  Regional and Spatial Planning9.   Natural Resources and the Environment

6.10.2. National Priorities:

1. 

Reform of the Bureaucracy and Governance2.  Education3.  Health

4. 

Reducing Poverty5.  Food Security6.  Infrastructure7.  Investment Climate and Business Climate8.  Energy9.  Environment and Management of Natural Resources10. Left-Behind, Frontier, Outermost and Post-Conflict Areas11. Culture. Creativity and Technological Innovation

6.11.  GHANA-VISION 2020

The long-term vision for Ghana is that by the year 2020 Ghana will have achieved a balancedeconomy and a middle-income country status and standard of living, with a level of developmentclose to the present level in Singapore. This will be realized by creating an open and liberalmarket economy, founded on competition, initiative and creativity, that employs science andtechnology in deriving maximum productivity from the use of all our human and naturalresources and in optimizing the rate of economic and social development, with due regard to the protection of the environment and to equity in the distribution of the benefits of development.The vision of Ghana in the year 2020 is of a country in which:

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1.  Long, healthy and productive life for all individuals is the norm, with access to andenlarged range of choices for employment, shelter and leisure;

2.  The benefits of development are equitably distributed and gross deprivation andhard-core poverty are eliminated;

3.   National income is growing by at least 8% per annum, compared with the present

average of 4-5%;4.  Population growth is reduced from its present level of about 3% to 2% per annum,

thereby allowing real income per head to rise to more than four times the 1993 level.5.  Solutions to socio-cultural and economic problems of the individual, the community

or the national are recognized and sought within the domain of science andtechnology.

These aims will be achieved by creating a robust, diversified and commercially-based agriculturalsector with strong linkages to an efficient, technologically- progressive and market-orientedindustrial sector, both of which sectors pay due regard to the maintenance of a sound and sustainableenvironment as well as to the generation of employment opportunities, including self employment.Such a transformation of the country's socio-economic structure will involve not only economic

changes but also reforms in land tenure, legal and administrative systems so that they are fullysupportive of private sector development, including the promotion of foreign investment.

7. 

CHALLENGES OF EMERGING ECONOMIES

7.1.  General Challenges of Emerging Economies:

Major tectonic shifts in global economy characterized dominantly by strong demand and supplygrowth in emerging market economies are redefining major economic, social and politicaldecisions and policies on food, nonfood commodities, capital flows, patterns of production,trade, environment, information and communication technology and education. 

i. 

Food: Global demand for food is rapidly rising in emerging markets as a large middleclass enjoy higher per capita incomes allowing them to afford for more nutritiousfoodstuffs.

ii.  Nonfood Commodities: The increasing demand for better housing and transportation andmore energy is placing tremendous upward demand and pressure on renewable resourcessuch as petroleum and metals. Most of the additional global demand for copper, lead,nickel, tin, and zinc come from emerging market economies.

iii.  Capital Flows: Although emerging and developing economies account for almost half ofthe world GDP, they only account for 19% of world financial assets. But world financialand capital flows are shifting towards emerging market economies, e.g. capital flowsfrom the United States to emerging markets increased from an annualized $300 billion

during 2006-2007 to an estimated $500 billion in 2010 while flows to advancedeconomies declined from $900 billion during 2006-2007 to $ 600 billion in 2010.

iv.  Patterns of Production: Emerging market economies are producing more high-technology machinery and equipment, and low-technology manufacturing is increasinglymoving to low-income countries.

v.  Trade: Emerging market economies' strong growth in domestic consumption and production enable trade to gravitate towards them as well.

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vi.  Environment:  Environmental pollution is more prevalent in emerging marketeconomies because of the lack of implementation of legislation.

vii.  Pension and HealthCare Systems: As the population of emerging markets grows, pension schemes and healthcare systems will put an undue burden to the next generation.

viii.  Financial Reforms: Reforms are needed to ensure that the financial sector serves the

economy rather that the economy serving or bailing them out.ix.  Environmental Sustainability: The greatest challenge is for emerging market

economies to maintain a sustainable environment.

x.  Governance

xi.  Regional Development

xii.  Unity and Democracy

xiii.  Security and Political Instability

xiv.  Unemployment

xv.  Uncontrolled Population Explosion

7.2. THE AFRICAN STOCK MARKET

There are many obstacles inhibiting the growth of the African Stock market.

1- Except for the Johannesburg Stock Exchange (JSE), the continent’s biggest in terms of the number oflisted companies and market value, African stock markets are still small and often dominated by ahandful of large corporations. For example, the conglomerate Dangote Group makes up about 30% ofthe Nigerian Stock Exchange.

2- Trading in shares is less frequent, and when it happens, it is usually limited to a few firms.

3- Many do not have access to reliable and up-to-date information technology and as a result some

trading is carried manually.

4- Lack of liquidity is a major weakness, and in many cases, the general public does not have confidencein the integrity of stock exchanges.

5- Introduction of stock markets into economies with underdeveloped legal, regulatory and monetarysystems can produce economic instability that outweighs potential gains

6- High levels of risk, such as weak investment laws or lack of respect for property rights, have learnedthe hard way e.g. Zimbabwe. Uncertainty over the direction of its economic policies has seen theZimbabwe Stock Exchange –  once one of Africa’s biggest and most active –  shrink in both size and

value.

7- The small size of African stock markets and the absence of liquidity are some reasons why someforeign investors are reluctant to invest to in the region

8- Little progress in regional integration has resulted to exchanges still limited to technical andregulatory issues. The modest market value and size of Africa’s two regional stock exchanges –  one

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made up of five countries in Central Africa and the other representing eight in West Africa, with bothsharing common currencies –  limit their attraction to investors.

9- Nationalism still plays a major part as a limitation to the growth of the African Stock Market.Countries tend to treat stock markets as national symbols and therefore are not rushing to relinquish

control.

There has however been an increased investment flows to Africa to higher commodity prices andimproved macroeconomic stability over the past decade. Rwanda, for instance, is now one of Africa’sfastest-growing economies, thanks to its pro-business policies and a positive investment climate. SouthAfrica has a long history of investor-friendly policies. And the continent’s sleeping giant, Nigeria, evenin the face of current bombings by the Boko Haram group, is gradually getting its act together, guided by reformist finance minister and former World Bank managing director Ngozi Okonjo-Iweala.

There are 23 stock exchanges in Africa today, up from 18 a decade ago. The newest is the RwandaStock Exchange (with four listed companies), which officially opened its doors to the public about three

years ago. Other countries, including Gambia, and Sierra Leone are showing interest in joining the club.

This year, sub-Saharan Africa’s economy is forecast to expand by 5.9%, ahead of North Africa’s growthof 4.2%, according to the International Monetary Fund (IMF). Seven African countries are expected to be among the 10 fastest-growing economies in the world for the period 2011-2015.

7.3. Specific Challenges by the BRIC Countries

i.  Brazil is struggling to finish or even start the BRL65 billion construction and infrastructural projects it ordered to host the 2014 World Cup and the 2016 Olympic Games.

ii.  Russia has seen a drastic drop in its exports of crude oil, which together with natural gas

accounted for about 50% of its budget revenue in 2011.iii.  India's economic growth slowed to 5.3%, its lowest rate in a decade; in June, Standard andPoor's warned that the country may lose its investment rating.

iv.  China scaled back its economic growth target to 7.5%, the lowest point in two decades.

8. 

SUSTAINABILITY MANAGEMENT PLAN (SMP)

The key challenge now for any emerging economy is to sustain itself in this contemporarycompetitive marketplace. There should then be assurance that sustainability risks and opportunitiesare addressed when determining strategy, followed by performance management. The challenge is both creating and embedding the management systems that inform and support the improvement of

resource use. Enhance external engagement and positioning and enable assessment of long-termvalue. A Sustainability Management System identifies the relevant issues, objectives and performance levels to be met, establishes an ethical framework as the basis for establishing policies,codes of conduct, consults with and maintains dialogue with stakeholders and accounts for theresults achieved.

8.1.  Program Mission, Vision, Philosophy and Values 

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1.  Define scope of activities and scale of operation and make sure they fit with communityneeds

2.  Define clear vision of what is to be achieved

8.2.  Identification of Stakeholders and Advocates 

1.  Develop a list of sponsors with contact information

2. 

Develop a list of political leaders with contact information3.  Develop a list of community leaders and other resource persons

8.3.  Results Orientation 

1.  Adopt a result framework

2.  Develop data and use for improvement

3.  Communicate results to stakeholders

4.  Define success and failures

5.  Measure progress and share results

6.  Develop systems for collecting and analyzing data

8.4.  Financial Planning and Analysis 1.

 

Determine resources needed for the project2.  Determine the fiscal needs3.  Make the best use of existing resources4.  Create partnerships5.  Explore national and international revenue sources 

8.5.  Program Adaptation to Changes

1.  Develop a program to respond to changes in funding and the environment2.  Participate in collaborative advocacy to encourage change3.

 

Monitor announced opportunities for funding4.  Consider new ways of making improvement

8.6.  Management Structure 1.  Recruit a multi-disciplinary team for the project2.  Emphasize on professionals with experience3.  Try to build a technocratic team4.  Assign roles and responsibilities5.  Delegate power and authority where and when need be

8.7.  Support Systems 1.

 

Develop fiscal management, accounting, information and personnel systems2.

 

Develop other support system from the community

8.8.  Program Monitoring and Evaluation

8.9.  Measurement of Sustainability:

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Sustainability is an integrated process involving social, economic, cultural, legal, political, health,environmental, financial and a host of other factors which can facilitate continuity and sustainability ofan organization, system, structure or institution in a market place. Sustainability in operations is measured by:

8.9.1.  Financial Capital: these are total financial resources for the project 

8.9.2. 

Manufacturing Capital: this comprise all equipment, 8.9.3.  Natural Capital- this refers to land and natural resources 

8.9.4.  Human Capital- all professional and experts employed 

8.9.5.  Social Desirability- needed by the society 

8.9.6.  Cultural Acceptability- it should not violate certain cultural values and norms 

8.9.7.  Economic Sustainability- able to withstand competition and exist for long 

8.9.8.  Technical Feasibility- able to be attained or implemented 

8.9.9.  Political Expediency- in compliance with government rules and regulations 

8.9.10. Operational Viability- should be productive 

8.9.11. Environmentally Rebuts- positive impact on the environment 

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