Revolution and reform of economic policies: Lessons for South Africa from China∗

The process of revolution in China itself his undergone profound reform. The most important reforms are reflected in a new direction of economic policies which focus upon a revival of market processes. This shift to greater reliance upon markets provides substantial support for similar programmes to be undertaken by South Africa and the developing nations of Southern Africa.     

Taxation and tax reform in LDCs: Lessons for South Africa

Taxation in South Africa will increasingly have to focus on political and economic developmental demands. Two important lessons from the experience of developing countries with taxation and tax reform are that the tax system should aim at not taxing the poor (rather than trying to level down the income of the rich) and that tax policy has a special role to play in generating revenue for development, a role which it should endeavour fill in a neutral way. With these lessons in mind taxation and tax reform are analysed in South Africa. It is concluded that the tax system is relatively efficient but that there has been retrogression in attaining equity objectives.     

Japanese industrial development Lessons for South Africa?

This paper is critical of the scenario planning approach which attempts to offer a formula for development for South Africa in the 1990s based upon the success of Japan, amongst other economic ‘winners’. It is argued that the complexities and debates surrounding Japanese modernization make the application of ‘lessons’ extremely problematical. Points of controversy arising out of the two ‘miracle’ periods of Japanese economic growth, the Meiji era of the nineteenth century and post World War Two era, are examined in some detail. The Tokugawa legacy, Japanese ethics and in particular Confucianism, capital formation and investment spurts, the agricultural contribution, militarism and economic gains from warfare, the role of the state, the zalbatsu and business structures, dualism, labour supplies, export performance and finally education are all factors central to the debate on causes of economic growth in Japan. The paper concludes with some suggestive and very tentative ideas about ‘lessons’ for South Africa.     

Contested land tenure reform in South Africa: experiences from Namaqualand

In South Africa the distribution of land rights remains a major manifestation and cause of injustice, only slowly affected by the constitutionally mandated programme of land restitution, redistribution and tenure reform. The Transformation of Certain Rural Areas Act 94, 1998 (Trancraa) is the first post-apartheid legislation to reform ‘communal’ land tenure. It applies to 23 former ‘coloured rural areas’ and was introduced in six areas in Namaqualand in the Northern Cape Province during 2001–2. In a different, contested process a Communal Land Rights Bill for the former ‘homelands’ was published in August 2002, adopted by Cabinet in 2003 and signed into law in July 2004. While the Communal Land Rights Act relies on ‘traditional councils’ with a majority of non-elected members, Trancraa was enacted in the context of the 1997 White Paper of South African Land Policy and focused on community choice and the role of municipalities. The consultative process in Namaqualand was driven by civil society organisations and community actors, but did not include the training, finance and development support needed to transform rural relations among people affected by unemployment, land scarcity and weak local organisations. To promote procedural and substantive justice, tenure reform must honour the human rights of equality, redress and land development support articulated in land policy and the Constitution.     

Contribution of external aid agencies to the social sector: Lessons for South Africa

The contribution of a major aid agency, UNICEF, to the social sector in three African countries is reviewed and important lessons are drawn for developing the social sector in South Africa. UNICEF's commitment to children and women and its substantial development expertise bestow many advantages on developing bilateral relations with UNICEF. It is equally important to develop sound social policies and adequate community‐based programmes in which UNICEF's expertise and resources can be incorporated. Guidelines are formulated for reducing dependence and vulnerability to donor assistance in the social sector.     

Land reform in South Africa: A vehicle for justice and reconciliation,or a source of further inequality and conflict?

One of the primary stated aims of the South African government's land reform programme is to contribute towards reconciliation by addressing the injustices and inequalities of past land allocation. It is however not clear that the land reform initiative will be able to pursue its goals of distributive justice and reconciliation without in the process contributing to the very problems of inequality, competition and conflict that it seeks to overcome. The article outlines some of the ways in which this potentially contradictory process is likely to unfold, both in terms of the official approach outlined in the Green Paper on Land Policy, as well as in terms of likely developments on the ground. A related paradox is considered: that in order to overcome the land dispossession and disruption caused by forced resettlement, there will need to be further resettlement, as black people move onto formally white‐owned land. While in theory voluntary, and involving land gain, rather than loss, such resettlement is nevertheless likely to involve significant difficulties of its own. For land reform to stand any realistic chance of succeeding and of helping effect justice and reconciliation, we need to be as clear and honest as we know how as to what the real costs and unintended consequences are likely to be.     

Economic incentives in the subsistence areas of South Africa and the need for reform

While land tenure reform within the subsistence areas of South Africa will not address fundamental black grievances about land inequality, it is essential that the land in these areas, as well as other agricultural land used for resettlement, be used in a productive and sustainable manner. This article examines the way in which discriminatory policies with respect to land distribution and public support, together with the high level of transaction costs under existing black tenure systems, have structured economic incentives within the subsistence areas, leading to the apparent under‐ and over‐utilization of arable and grazing land respectively. The potential for formal private tenure to reduce these constraints is then explored, while noting the necessity for property institutions to be both impartially administered and well adapted to the particular needs and resource constraints at the community level. Finally, a number of reforms which would increase the level of information provided by informal tenure are examined.     

Lessons for Sub-Saharan Africa from Latin American Experience?

Abstract: There are many issue areas in which African policymakers and analysts may learn from Latin American experience. These include appropriate incentive structures, industrialization strategy, response to external shocks, anti-inflation policies, policies on foreign direct investment, and economic integration. Comparisons of particular country experiences can also be useful if carefully made. Attention is called to the possibility of fruitful comparisons between specific Latin American countries' experiences and the current problems of Cameroun, Côte d'Ivoire, Kenya, Senegal, Zambia and Zimbabwe. Résumé: I1 y a maintenant de nombreux domaines oh les dirigeants et les analystes africains peuvent tirer des lecons de l'experience latino-americaine. On peutciter, entre autres, des structures incitatives adoptees, une strategic del'industrialisation, une reponse aux chocs externes, les politiques de lutte contrel'inflation, les politiques concernant les investissements directs etrangers etl'integration economique. Des comparaisons des experiences particulieres de pays si elles sont soigneusement faites, peuvent egalement se reveler utiles.L'attention est attiree sur la possibilite de comparaisons fructueuses entre lesexperiences precises des pays dpmerique lathe et les problemes que connais-sent actuellement le Cameroun, la C6te d'Ivoire, le Kenya, le Senegal, la Zambieet le Zimbabwe.     

How social security policies and economic transformation affect poverty and inequality: Lessons for South Africa

This article examines how various characteristics of social and economic policy frameworks affect poverty and inequality levels in developing countries, principally in Botswana and Mauritius. The research findings suggest that poverty and inequality are lower in countries with generous and broad-based – rather than pro-poor – social security policies, and where social policies are complemented by economic policies promoting economic transformation rather than mere economic growth. While South Africa's challenges of combating poverty and inequality are shaped by its own historical context, the lessons from other countries offer the opportunity to reflect on the social consequences of various social and economic policy mixtures. In particular, it may be worth considering how to bridge the divide between the economically productive contributors to social security policies and the economically marginalised beneficiaries of such policies.