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28 June 2023 | Story Dr Maréve Biljohn | Photo Supplied
Dr Maréve Biljohn
Dr Maréve Biljohn is Head of the Department of Public Administration and Management at the University of the Free State (UFS).


Opinion article by Dr Maréve Biljohn, Head of the Department of Public Administration and Management, University of the Free State (UFS).


Africa Public Service Day was commemorated on 23 June under the theme ‘The African Continental Free Trade Area will require a fit-for-purpose African Public Administration to succeed’. This theme highlights a “fit-for-purpose” public administration, which is of significance for South Africa’s local government sphere given the dismal service-delivery decline in some municipalities. Considering this, a reflection on the state of local governance and service delivery is prudent.


A fit-for-purpose public administration should be anchored in (i) an effective management praxis of systems and processes, as well as (ii) professional and resource capacity that fulfils local government’s mandate of contributing to transformative change in society. Universally this praxis of systems and processes is underpinned by activities of policymaking, organising, human resourcing, financing, work procedures, and control of the functions, structures, and capacities of the public sector. The effective management praxis of public administration systems and processes globally should be underscored by public service traits that are a composite of being professional, qualified, highly skilled, agile, responsive, goal-directed, innovative, and relevant. In South Africa, Section 195 of the Constitution provides the basic guiding principles and values governing the execution of the public administration praxis across the three government spheres.

The public administration praxis in South African municipalities is in distress given the volatile, uncertain, complex, and ambiguous (VUCA) environment in which it functions. Research shows that this distress is attributed to some municipalities’ inability to execute basic functions and service delivery, poor infrastructure planning and maintenance, financial and revenue-generation challenges, corruption, service-delivery protests, and staff turbulence. Partly, this distress is also symptomatic of challenges emanating from factors within internal and external municipal environments. Inherent to municipalities’ VUCA internal environment, these challenges relate to issues of governance, financial management, service delivery, and labour relations. Their recurring nature has also resulted in them being the focus of South African local government reforms over the past 25 years, including the 2009 Local Government Turnaround Strategy, as well as the 2013 Back-to-Basics campaign. Thus, from the 2022 Auditor-General of South Africa report regarding the Municipal Finance Management Act, it is clear that even the last reform has not yielded the desired impact and outcomes. In this regard, service-delivery challenges remain the Achilles heel of South Africa’s local government landscape. 

Institutionally, a lack of or poor service delivery is evident from factors such as insufficient revenue generation, the non-achievement of service-delivery priorities, and not addressing community needs through municipal integrated development plans. Over the past decade, we have seen these factors expose inefficiencies in the South African municipal praxis of systems and processes that underpin the execution of public administration. These inefficiencies are evidenced in the lack of responsiveness of some municipalities to deliver sustainable services and facilitate community participation through their service-delivery system. Consequently, from a service-delivery perspective, the quality and quantity of service outputs delivered to citizens and service recipients in its external environment are either compromised, inferior, or non-existent. From a community participation perspective, research suggests that a lack of community engagement by some South African municipalities affects their responsiveness to the service-delivery needs of citizens. Examples of this are where community engagement is merely embarked on for legislative compliance purposes, but not necessarily prioritised as part of the formal (policies, plans, strategies) and informal (culture) institutions of the organisation. Hence, community priorities are received but not included in municipalities' formal plans. Another example is where community priorities were planned for, but could not be achieved because of a lack of revenue or funding. Lastly, a lack of responsiveness has been reported as part of the contributory reasons for the service-delivery protests that have been at the doorstep of municipalities over the past two decades.

A closer look

The state of local governance and service delivery in some South African municipalities paints a bleak picture. From this picture, it is apparent that the resilience of municipal service-delivery systems – whose functioning should be underpinned by effective public administration management – is under threat. It is also clear that such an effective management praxis of systems and processes underscoring a fit-for-purpose public administration operates at a deficit. This deficit, which is often the result of internal deficiencies, creates grave consequences for the optimal functioning of the municipal service-delivery system. While these systems are institutionally embedded and operated, their optimal functioning is not exclusively institutionally bound. Instead, their optimal functioning is equally grounded in citizen-centred local governance that informs the outputs of the service-delivery system, and through their participation keeps this system accountable. 

While this is the ideal, it is not always the case, and highlights that South African citizens should play a more constructive role in the local governance of municipal service delivery, to ensure its sustainability. Fortunately, we are seeing a social compact emerge where citizens are becoming more organised in challenging the status quo of local governance in municipalities, to preserve the citizen-centred foundations of our democracy. Similarly, we are seeing a citizenry and organised groups that are taking the initiative to collaborate with the public sector in general to address some of the societal challenges that confront our country. These collaborations and the challenging of the status quo are often grounded in principles of transformative social innovation that consider innovative approaches and solutions to address societal challenges. Apart from challenging the status quo, distributing social and economic resources to achieve social justice during service delivery is inherent to transformation. Innovation can occur through the introduction of a new service, product, or technology but its social aspects are underpinned by collaborations, networks, and partnerships that are formed to identify and implement such innovations.

Broader societal capacity and resources needed 

Transformative social innovation’s usefulness as an approach to finding alternative municipal service-delivery solutions reminds us of the citizen-centredness on which the South African local government legislative framework positions our governance and service-delivery systems. Notably, such citizen-centredness relies on society’s broader capacity for social action, citizen agency, and participation. It promotes a more prominent role for citizens to co-create new knowledge and innovative solutions to address municipal challenges. Society’s broader capacity for social action and citizen agency will also be instrumental in shaping the future responsiveness of South African municipalities amidst the recurring challenges cited. Conversely, it is the same societal capacity and citizen agency that should continuously challenge South African municipalities to rethink how fit-for-purpose their public administration is for implementing responsive service-delivery systems.

In conclusion, given the ailing state of service delivery in some South African municipalities, and the concomitant resource and capacity challenges, the reality is that broader societal capacity and resources are needed to restore service delivery. Hence, the local governance of service delivery will require a mix of new modes, constellations, and approaches that upscale citizen agency through the values of sound public governance. This might necessitate public administration and management reforms that reassess the current size and shape of municipalities, with an eye on remaining responsive amidst growing populations, increasing citizen demands, as well as socioeconomic and global challenges.  

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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