Latest News Archive

Please select Category, Year, and then Month to display items
Previous Archive
01 July 2021 | Story Dr Nitha Ramnath and André Damons
Discussing local government elections. Panellists in the University of the Free State Thought-Leader webinar hosted on 29 June 2021.

Elections are supposed to bring better, more accountable governments into place, but at local government level this has not happened so far. No real change should be expected with new local governments. The elections are not necessarily the answer.

This is according to Prof Susan Booysen, Director of Research at the Mapungubwe Institute for Strategic Reflection (MISTRA), who was one of the panellists at the University of the Free State (UFS) Thought-Leader webinar on Tuesday (29 June 2021). The webinar with the theme South African politics and the local government elections: scene setter for a capable state? is part of the Free State Literature Festival’s online initiative, VrySpraak-digitaal


Mr Ebrahim Fakir
, Director of Programmes at the Auwal Socio-Economic Research Institute (ASRI), and Prof Sethulego Matebesi, Associate Professor and Academic Head of the Department of Sociology at the UFS, were the other two panellists who discussed politics and local government elections – which is only four months away. 

Not much progress in local government

“We've seen minor changes, more coalition governments that have been coming into power – at least in the metro cities.  In the last few elections, there have been in the region of 30 or so local and major municipalities with coalition governments in South Africa,” said Prof Booysen.

According to her, she does not believe that we can go without elections; however, elections are not necessarily the answer, as there has not been much progress at local government elections as well as on other levels.

Prof Matebesi is in agreement with Prof Booysen, saying that the forthcoming elections would not bring about any change. Said Prof Matebesi: “If we agree that problems in local government – which leads to poor performance – are caused by political and not administrative leaders, if we agree that the local government system is not geared for power-sharing, and if we agree that the challenges of political leaders can partly be ascribed to the dominance of internal party politics, particularly the immense power vested in the office of the mayor – where there is sometimes a complete disregard for council resolutions – then I believe that the 2021 local government elections will not affect the changes, and produce a strong local government, capable of fulfilling its constitutional mandate.”

Decent government can withstand bad politics 

Mr Fakir said it is not possible to talk about a capable state or governance or effective government if we do not talk about politics. Axiomatically, it would mean that if politics precedes government, the type of politics prevalent in society would determine the nature of government thereafter. 

“Even if there is bad politics – with robust institutions, processes, and procedures according to which decisions are made and resources are allocated, society will be able to withstand a period of bad politics. The US and the UK have had bad politics for some time, with robust institutions. However, in South Africa, only 20 years into transition, our institutions are not robust enough and have therefore been available for the malevolent acts of state capture due to corruption,” says Fakir. 


 

He outlined five markers for a capable state:

1. A strong regulatory capacity – the ability to make laws and policies that are prudent, appropriate, and that fit the circumstances of the society.
2. A technical capacity – the engineering works, the ability to technically maintain and build the infrastructure and carry out the necessary activities required to make a society functional and facilitate its social and economic activity.
3. An administrative capacity – the ability to execute and implement strong oversight, serious ways of extracting accountability. 
4. An extractive capacity – the ability to raise taxes, revenues, rates, so that there is funding for the kind of things that need to happen at local government level.
5. A coercive capacity – the ability to ensure compliance with rules.

“I would argue that if one had to take each of these five measures, you would find that local government – and government in general – are lacking. So, if you have bad and malevolent politics, if you have bad ethics in society, then the ability for these five functional areas of capability in state suddenly starts to wither away, and you have a weak state,” Fakir said. 

 

South Africa is going through transformation and transition fatigue in the local government area. “At each local level of the state, there is a cadreship of representatives who are more powerful and can exercise power over the PR system. This type of dysfunction filters through the system of accountability and oversight, and as such, people who are responsible for coalface delivery collapse because the oversight is not there.” 

According to him, we have bad politics, and because of this our institutions are easily manipulated, our processes are easily undermined, and people are put in those positions because they can be easily manipulated. 

“Because of that, you have poor accountability, laxity, a poor attitude of working with a sense of ‘all will do as they please’ – the one takes licence from the other, and people feed off each other’s desire for lack of compliance, giving rise to a predatory state.” 

Prof Francis Petersen, who was the facilitator, said the challenges relating to local government will persist.  
“Ultimately, it is about the culture of service, the trust that needs to be developed between the citizens and local government. It is not only about the technical competency, but also about the ethical and value systems,” said Prof Petersen.

According to him, the role of universities in this should never be underestimated.  Platforms should be open to debate and discussion to offer potential solutions to politicians and to bring across that ethical and critical analysis. 

News Archive

Inaugural lecture: Prof. Phillipe Burger
2007-11-26

 

Attending the lecture were, from the left: Prof. Tienie Crous (Dean of the Faculty of Economic and Management Sciences at the UFS), Prof. Phillipe Burger (Departmental Chairperson of the Department of Economics at the UFS), and Prof. Frederick Fourie (Rector and Vice-Chancellor of the UFS).
Photo: Stephen Collet

 
A summary of an inaugural lecture presented by Prof. Phillipe Burger on the topic: “The ups and downs of the South African Economy: Rough seas or smooth sailing?”

South African business cycle shows reduction in volatility

Better monetary policy and improvements in the financial sector that place less liquidity constraints on individuals is one of the main reasons for the reduction in the volatility of the South African economy. The improvement in access to the financial sector also enables individuals to manage their debt better.

These are some of the findings in an analysis on the volatility of the South African business cycle done by Prof. Philippe Burger, Departmental Chairperson of the University of the Free State’s (UFS) Department of Economics.

Prof. Burger delivered his inaugural lecture last night (22 November 2007) on the Main Campus in Bloemfontein on the topic “The ups and downs of the South African Economy: Rough seas or smooth sailing?”

In his lecture, Prof. Burger emphasised a few key aspects of the South African business cycle and indicated how it changed during the periods 1960-1976, 1976-1994 en 1994-2006.

With the Gross Domestic Product (GDP) as an indicator of the business cycle, the analysis identified the variables that showed the highest correlation with the GDP. During the periods 1976-1994 and 1994-2006, these included durable consumption, manufacturing investment, private sector investment, as well as investment in machinery and non-residential buildings. Other variables that also show a high correlation with the GDP are imports, non-durable consumption, investment in the financial services sector, investment by general government, as well as investment in residential buildings.

Prof. Burger’s analysis also shows that changes in durable consumption, investment in the manufacturing sector, investment in the private sector, as well as investment in non-residential buildings preceded changes in the GDP. If changes in a variable such as durable consumption precede changes in the GDP, it is an indication that durable consumption is one of the drivers of the business cycle. The up or down swing of durable consumption may, in other words, just as well contribute to an up or down swing in the business cycle.

A surprising finding of the analysis is the particularly strong role durable consumption has played in the business cycle since 1994. This finding is especially surprising due to the fact that durable consumption only constitutes about 12% of the total household consumption.

A further surprising finding is the particularly small role exports have been playing since 1960 as a driver of the business cycle. In South Africa it is still generally accepted that exports are one of the most important drivers of the business cycle. It is generally accepted that, should the business cycles of South Africa’s most important trade partners show an upward phase; these partners will purchase more from South Africa. This increase in exports will contribute to the South African economy moving upward. Prof. Burger’s analyses shows, however, that exports have generally never fulfil this role.

Over and above the identification of the drivers of the South African business cycle, Prof. Burger’s analysis also investigated the volatility of the business cycle.

When the periods 1976-1994 and 1994-2006 are compared, the analysis shows that the volatility of the business cycle has reduced since 1994 with more than half. The reduction in volatility can be traced to the reduction in the volatility of household consumption (especially durables and services), as well as a reduction in the volatility of investment in machinery, non-residential buildings and transport equipment. The last three coincide with the general reduction in the volatility of investment in the manufacturing sector. Investment in sectors such as electricity and transport (not to be confused with investment in transport equipment by various sectors) which are strongly dominated by the government, did not contribute to the decrease in volatility.

In his analysis, Prof. Burger supplies reasons for the reduction in volatility. One of the explanations is the reduction in the shocks affecting the economy – especially in the South African context. Another explanation is the application of an improved monetary policy by the South African Reserve Bank since the mid 1990’s. A third explanation is the better access to liquidity and credit since the mid 1990’s, which enables the better management of household finance and the absorption of financial shocks.

A further reason which contributed to the reduction in volatility in countries such as the United States of America’s business cycle is better inventory management. While the volatility of inventory in South Africa has also reduced there is, according to Prof. Burger, little proof that better inventory management contributed to the reduction in volatility of the GDP.

We use cookies to make interactions with our websites and services easy and meaningful. To better understand how they are used, read more about the UFS cookie policy. By continuing to use this site you are giving us your consent to do this.

Accept