SUBJECT GROUP ECONOMICS
OF THE SCHOOL FOR DEFENCE ORGANISAATION AND RESOURCE MANAGEMENT
OF THE FACULTY OF MILITARY SCIENCE, UNIVERSITY OF STELLENBOSCH
INTRODUCTIONThe complexities of the globalised world mean that future leaders must be fully empowered and possess a wealth of theoretical knowledge to make decisions in an uncertain environment. Despite the lack of a profit motive, the defence force now more than ever must be held accountable for its financial actions and decisions especially in a developing country where defence competes with departments such as health and welfare for funds. The study of economics within the broader framework of other social sciences ensures that the officer arms him/herself with knowledge to be better positioned to understand, analyze and implement strategic decisions on a micro and macro level essential for the optimal application of scarce resources.
STAFF"This page is under construction to allow for the incorporation of distance education."Subject Group Chair: Dr H. F. de Wet
D ECON (University of Vista)
Senior lecturer in Competition policy, advanced macroeconomics, advanced microeconomics
Lecturer: Captain Shaun Rozyn
B Mil with Honours (University of Stellenbosch)
Lecturer in Introductory Macroeconomics, Introductory Microeconomics, Monetary economics, Policy economics
Guest Lecturer: Mr C. E. Coetzee
M Econ (University of Stellenbosch)
COURSESCourses are presented to officers of the South African National Defence Force at an undergraduate level to students in the management and human sciences. Postgraduate courses are presented in conjunction with the Department of Economics of the University of Stellenbosch. Prof. A. Roux of the Center for Future Research presents Defence Economics at an under- and postgraduate level.
ECONOMICS 114: INTRODUCTION TO MICROECONOMICS (15 WEEKS)
This course introduces students to the basic subject matter of economics and more specifically the theory of demand, i.e. how consumers make decisions to maximise total utility, and that of supply, i.e. how firms decide how and what to produce to maximise total profit. The course then proceeds to merge the theory of demand and supply to determine how prices, quantity and profits are determined in markets under conditions of both perfect and imperfect competition. The course also equip students with an understanding of why and how governments may intervene in markets and what the relative merits are of free markets as opposed to interventionist initiatives. Students are introduced to the following concepts: Different kinds of Economic Systems, The Theory of Demand and Supply, Government Intervention in Markets via Price Control and Taxes, Markets for Factors of Production and Inequality and Poverty.
Power point presentations: Chapter 1, Chapter 2, Chapter 3, Chapter 4, Chapter 5, Chapter 6, Chapter 7, Chapter 8, Chapter 9, Chapter 10, Chapter 11, Chapter 12, Chapter 13, Chapter 14.
ECONOMICS 144: INTRODUCTION TO MACRO-ECONOMICS AND MONETARY ECONOMICS (10 AND 5 WEEKS)
Economics 144 consists of two modules: Introductory Macroeconomics and Monetary Economics.
Introductory macroeconomics consists of three sub-modules. The first sub-module introduces students to the four macro-economic issues, i.e. economic growth, unemployment, inflation and the balance of payments. Students are introduced to the simple Keynesian analyses of national income, unemployment and inflation. Students are also introduced to the various schools of economic thought, i.e. the Classical, New Classical, New Keynesian Schools, etc. The influence of changes in the Government Budget (which includes the Military Budget) on the South African economy is also explained by focussing on fiscal policy, its effectiveness and as a means of stimulating economic growth and employment. The second part of this sub-module introduces students to the Simple Keynesian Four Sector Model, i.e. the determination of national equilibrium income, the multiplier, various functions, etc. The third sub-module briefly introduces students to the characteristics of the South African economy. This sub-module aims to put theory into practice especially looking at economic policy in South Africa and its effects.
When a student studies Introductory Monetary Economics, he/she is introduced to the following concepts: The Definition of Money, Keynes View on Money, The Monetarists View of Money, Interest Rates and Monetary Policy. The influence of changes in the money supply on the South African economy is also explained by making use of a IS-LM model.
ECONOMICS 214: MICROECONOMICS AND MACRO ECONOMICS (7 AND 8 WEEKS)
Economics 214 consists of two modules: Micro- and Macroeconomics.
When a student studies Microeconomics (214), he/she is introduced to the different markets and to those elements, which hinders the efficient functioning of the different markets. The entrance of the government (with special reference to a defence force) as a buyer and seller of goods and services in the South African economy, is also discussed in detail.
When students studies Macroeconomics (214) the Macroeconomic concepts he/she studied in the Introductory Course is now coupled by making use of advanced Macroeconomic models, i.e. the IS-LM and the AD-AS models. The influence of these changes on the Defence Force Budget as well as changes in the Defence Force Budget on the South African economy, is analyzed in detail.
ECONOMICS 244: PUBLIC FINANCE, INTERNATIONAL TRADE AND INTERNATIONAL FINANCE (5 WEEKS EACH)
Economics 244 consists of three modules: Public Finance, International Trade and International Finance.
When a student studies Public Finance he/she is introduced to the following concepts: Fiscal Theory, The Government’s Allocation and Distribution Function, Theory of Public Expenditure, Theory of Tax Systems, Public Finance in the broad context of Economics and the Defence Budget as a part of the Government Budget.
When students studies International Trade, he/she is introduced to the various theories of international trade, the basis trade model, trade patterns, trade and economic growth and income distribution. Students are introduced to the following concepts: Tariffs, Subsidies, Custom Unions, Common Markets, Economic Unions, the Balance of Payments, GATT and the SACU. All these theories and concepts are applied to South Africa and the advantages and disadvantages of Free International Trade is critically analysed.
When a student studies International Finance, he/she is introduced to the following concepts: Foreign Exchange, International Financial Markets, Exchange Rate Systems and International Monetary Systems. These concepts are discussed in terms of the South African economy and the advantages and disadvantages of International Finance are critically debated.
ECONOMICS 314: DEVELOPMENT ECONOMICS, LABOUR ECONOMICS, THE HISTORY OF ECONOMIC THOUGHT AND COMPARATIVE ECONOMIC SYSTEMS (3, 5 AND 7 WEEKS)
Economics 314 consists of three modules: Development Economics, Labour Economics and The History of Economic Thought and Comparative Economic Systems.
Development economics, in the first instance, introduces the student to the international debate on development economics. This entail an historical overview of the evolution of development thought and theory, the different approaches to economic development and its measurement, and the development issues most prominent in the 1990s. In the second instance, the module relates the development experience of South Africa in terms of the country’s development status, a historical periodisation of the South African experience, and the prominent development issues currently facing the government.
Labour economics introduces the student to the theory of perfect and imperfect competitive labour markets, unemployment, union behaviour, discrimination in labour markets, labour productivity, labour migration, wages and inflation, and the role of government in the labour market. It in each case provides an overview of the South African experience with regards to each of these aspects of labour economics.
When a student studies The History of Economic Thought and Comparative Economic Systems he/she is expected to discuss the following economic concepts on a more advanced level: Classical Economic Though – Smith, Maltus, Ricardo and Mill -, the Economics of Karl Marx, Neo Classical Thought – Capitalism, Socialism, Communism and Social Democracy, and Mixed Economies.
ECONOMICS 344: INDUSTRIAL ECONOMICS AND QUANTITATIVE METHODS, ECONOMIC POLICY AND POLICY ECONOMICS, AN INTRODUCTION TO ECONOMETRICS AND DEFENCE ECONOMICS (6, 6 AND 3 WEEKS AND ONE DAY)
Economics 344 consists of four modules: Industrial Economics and Quantitative Methods, Economic Policy and Policy Economics, an Introduction to Econometrics and Defence Economics.
When a student studies Industrial Economics and Quantitative Methods he/she must be able to discuss the Market Structure, Conduct and Performance of the South African economy and use Quantitative Methods.
When a student studies Economic Policy and Economic Policy he/she must be able to debate the Objectives and Instruments of Economic Policy for South Africa. The student must be able to develop economic policy for South Africa.
The introductory course in Econometrics introduces the student to the basic techniques often employed in economic research and analysis. These include simple cross-section and time-series correlation and regression analyses used to determine, by inter alia using the E-views program, the nature of the relationship between any number of economic variables, based on a hypothesis originating from economic theory.
When a student studies Defence economics he/she is introduced to the workings of a War- or Defence economy. He/she is also expected to discuss the following concepts in detail: Economic Warfare, The National Budget and Defence matters, International Trade and Finance and the Defence Industry as well as Defence Initiatives.