Local Government Financing And Development In Southern Africa

This text is not only suitable for undergraduate students but is also ideal for use by professionals employed in or working with local government in South Africa.

Examining cutting-edge issues of international relevance in the ongoing redesign of the South African local government fiscal system, the contributors to this volume analyze the major changes that have taken place since the demise of apartheid. The 1996 Constitution and subsequent legislation dramatically redefined the public sector, mandating the development of democratic local governments empowered to provide a wide variety of key public services. However, the definition and implementation of new local functions and the supporting democratic decision-making and managerial capabilities are emerging more slowly than expected.

Abstract: Since South Africa held its first democratic elections in 1994, it has given significant attention to building an effective system of decentralization including provincial and local government. While provincial governments are responsible mainly for the implementation of social services such as health and education, the provision of much of the urban infrastructure is the responsibility of local government. Although many challenges remain, the country has made significant progress over the past decade in addressing urban service backlogs in poor areas. At the same time, it has greatly improved macroeconomic fundamentals. The system of financing local government seeks to place accountability firmly at the local level, with most revenues in the larger urban centers raised locally through a combination of local taxes and fees for services, while poorer regions are predominantly grant funded. The objective has been to encourage the financing of capital infrastructure through local borrowing based on sustainable, transparent local finances rather than national repayment guarantees, which are outlawed. There is some indirect subsidization of loans through the state-owned Development Bank of Southern Africa. But the emphasis is on achieving redistribution through transparent, formula-based grants paid directly from national to local governments. While further bedding down of the system is needed, the approach is proving largely successful. The paper concludes by recommending that the existing division between provinces as providers of social services and local governments as the key locus of responsibility for services related to the built environment should be strengthened, particularly through the devolution of more urban transport related functions. A number of key risks are also highlighted, including issues related to the reform of local business taxes.

Partial contenst : Decentralisation and democratisation; Local government democracy in the South African context; The 1995 local government elections; South africa; Namibia; Mozambique; Zimbabwe; Constitutional reform and local government restructuring; Human resource management and affirmative action; Women in local government management and development; Finance and development; Rural local government in South Africa; NGOs, civil society and development; Urban environmental planning and management: the challenge of sustainable development.

An examination of the transformation of South Africa's apartheid local government system into a development-oriented system of municipal governance, requiring, however, continuing short and long-term interventions on the part of both the central and provincial governments if it is to deliver its desired outputs.

As the title intimates, this concise book is an introduction to the study of local government finance. It is an enlightening work aimed primarily at undergraduate students studying local government and administration at universities, technikons and technical colleges.