Trade policy reform and the competitive response in Kwazulu Natal Province, South Africa

Like many other formerly protected economies, the liberalization of the ext ernal trade regime has placed new competitive pressures on South African en terprises. Detailed research in over 130 enterprises in the KwaZulu-Natal ( KZN) Province of South Africa shows the extent to which firms have been abl e to respond to these new competitive pressures and particularly on their a bility to "hear" and to meet more demanding customers' requirements. Inevit ably the response has been varied, but there are reasons to be concerned th at the pace of adjustment has been suboptimal. This reflects imperfections in information markets, the challenges poses by the need for new social rel ations in production, and the limited implementation of new "supply-sided" policies designed to compensate firms for the reduction in protective barri ers. (C) 1999 Elsevier Science Ltd. All rights reserved.