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06 December 2023 | Story Hlumelo Xaba | Photo SUPPLIED
Hlumelo Xaba
Hlumelo Xaba is an intern in the Department of Student Affairs at the University of the Free State (UFS). He holds a BA degree in Governance and Political Transformation from the UFS and was the UFS SRC member for Arts and Culture in 2022.

Opinion article by Hlumelo Xaba, Intern in the Department of Student Affairs, University of the Free State (UFS)

The 2016 South African local government elections heralded the ushering in of a new dimension in the country’s political landscape with regard to constituting governments at local level. For the first time since the inaugural democratic elections of 1994, the governing ANC experienced significant electoral declines, which resulted in the party plummeting below the 50% + 1 prerequisite needed to remain the majority party in various municipalities. 

This loss of support meant the ANC would have to leverage the help of those that would be willing to co-govern with them in various hung councils. At the same time, however, the decline of the ruling party galvanised opposition parties to organise themselves into coalition pacts that would push the ANC into a peripheral position in the local government sphere. Although most of these coalitions have been unstable, the growing likelihood that such arrangements will become part of South Africa’s politics beyond local government necessitates long-term interventions to counter the current political predicaments.

The outcomes of the 2021 local government elections saw the acceleration of the need for coalitions in some local government councils, with a total of 67 hung municipalities across the nine provinces, more than double the number from the 2016 local elections. eThekwini became the new addition to the list of hung metros, even though the ANC managed to retain its governing position through an arrangement with smaller parties. 

Solutions to ever-changing dilemmas

When a certain level of dissatisfaction or disagreement among role-players in a coalition is reached, that partnership is likely to deteriorate, and a new one becomes more likely to be established, based on a new set of preferences and objectives. This has proven to be the case in hung municipal councils including the City of Johannesburg, City of Ekurhuleni, and Nelson Mandela Bay, where DA-led coalitions were replaced by ANC-EFF partnerships that opted for councillors from minority parties to be at the helm as Executive Mayors, while the bigger parties occupy MMC positions, even though it is disputable that these coalitions are premised on common interests aimed at catering for the greater good, rather than serving political agendas and self-interest. 

The climate in South Africa’s local government sphere over the past seven years is a precursor to what the broader citizenry can expect in other spheres of government moving forward, because of the ruling party’s deterioration. With no opposition party being able to make the necessary strides and unseat the ANC on its own, governance of some provincial legislatures – and possibly at national level – after the upcoming 2024 general elections seems likely to require new political formations that demand coalitions. 

Earlier this year, Deputy President Paul Mashatile convened a National Dialogue on Coalition Governments. The dialogue was aimed at responding to the challenges coalitions have faced in the local sphere by formulating a framework that includes a set of principles that will make coalitions function for the greater good in the future. Some of the principles guiding the proposed framework included the following: putting people first in considerations around the formation of coalition governments; such coalition governments must contribute towards building a prosperous society in which people have access to land for productive purposes; and parties to such governments must be bound together by a commitment to good governance and no tolerance for corruption. 

Although a framework of this nature might help in changing the current chaotic status quo, the top-down approach so far used in drafting such an agreement is exclusionary to the electorate. In fact, it may not be reflective of the aspirations and actual needs of the people which it is meant to represent.

Reflect on coalitions and their ramifications 

As the country gears up for the 2024 general elections, political leaders should reflect on coalitions and the ramifications thereof in instances where there was instability for various reasons. The primary focus of coalitions should be on common objectives that will seek to combat socioeconomic ills that citizens face (including poverty, unemployment, crime, and basic service delivery), as well as maintaining stability through good ethical governance that will effectively respond to these challenges. The instability of coalitions across the local government sphere, which has resulted in seemingly insurmountable service-delivery shortfalls due to constant administrative changes, should be seen as a summary of what transpires when there’s a great deal of political interferences in the administrative functions of governments, whether local, provincial, or national.

Although the policies and societal outlook of different political formations are influenced by the ideologies that a party aligns itself to, politicians should be cognisant of the reality that no party can dictate or impose its views on how a coalition should function without considering the inputs of other role-players. Instead, political leaders need to accustom themselves to a culture of maintaining a balance between their own values whilst working with other parties towards common goals that will improve the livelihood of all citizens. This should be done with the aim of ensuring stability in all facets of government, and promoting accountability across all spectrums.

  • Xaba holds a BA degree in Governance and Political Transformation from the UFS and was the UFS SRC member for Arts and Culture in 2022. He writes in his personal capacity.

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.

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