Ashman, S., Mohamed, S. and Newman, S. (2013) Financialisation
of the South African economy: Impact on the economic growth path
and employment. Discussion Paper. United Nations Department of
Economic and Social Affairs.
We recommend you cite the published version.
The publisher’s URL is:
http://eprints.uwe.ac.uk/25392/
Refereed: No
?From United Nations Department of Economic and Social Affairs, by Ashc
man, S., Mohamed, S. and Newman, S., 2013
United Nations. Reprinted
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Financialisation and (un)employment in South Africa
Financialised corporate strategies and restructuring
(unbundling & internationalisation) of former
conglomerates
Firm performance directly
related to share prices linked to
profitability and delinked from
productive expansion,
innovation and productivity
Neoliberal Macroeconomic Framework
Trade liberalisation
Liberalised international
capital flows
Long-term capital
outflows
Unbundling,
downsizing and focus
on ‘core competence’
Outsourcing of noncore functions
↓Long-term ‘productive’ investment
Deindustrialisation + reproduces
apartheid pattern of ‘productive’
investment focussed on MEC core
↓Direct employment by
NFCs
Structural*
Unemployment
+
High interest
rates
Short-term (speculative)
capital outflows
via financial
sector
↑Macroeconomic instability
(↑frequency and amplitude of economic
cycles
↑Investment in short-term
financial assets
↑procyclical nature of ‘real’ investment
expansion of services sectors during
upswings (e.g. retail)
↑Employment in services
↑Labour broking
↑precarious contractual arrangements
↓social protection & provision
↓investment on skills development
↑procyclical pattern on employment