Regulation and facilitation of public‐private partnerships: The MSP policy framework

This article describes the Municipal Services Partnership (MSP) Policy developed by the Department of Constitutional Development (DCD) of the Ministry for Provincial Affairs and Constitutional Development of South Africa to help local authorities respond to the great demand for improvement of municipal services. The MSP policy was developed by the DCD, utilising consultative policy making. It defines municipal services partnerships and typical contractual forms of MSPs, and also identifies gaps and constraints in existing South African law that can make implementation of MSPs unnecessarily difficult or more costly for local authorities and service consumers. The policy creates a framework for competitive procurement of MSP contracts and, finally, it describes the capacity needs of local authorities to deal effectively with MSP planning, procurement and implementation, and identifies new and expanded institutional roles at the local and national levels to support local authorities that wish to engage in MSPs     

Public‐private partnerships for waste management: Challenges for policies and procedures

Recently, all essential services in South Africa have been the focus of major efforts to ensure equitable access. This focus is quickly intensifying at all levels of government, as greater attention is directed at global environmental issues and at removing the imbalances in the socio‐economic conditions of the past. Unfortunately for solid waste management, unlike other essential services, this is happening at a time of declining financial resources, fewer national programmes and increasing regulation. Many municipalities in South Africa are turning to public‐private partnerships (PPPs) as a way of addressing the growing municipal solid waste management problem, especially with regard to extending services to previously disadvantaged, low‐income communities. This article seeks to define relevant issues, clarify the use of PPPs and generally suggest a way forward for local municipalities committed to meeting the challenges of maintaining and expanding solid waste management services.     

The municipal infrastructure investment unit: The government's PPP‐enabling strategy

The South African government is committed to helping local governments make full use of service delivery ‘partnerships’ in improving the quality of essential urban services for its citizens, as so many other governments are now doing worldwide. A key part in this effort is being played by the Municipal Infrastructure Investment Unit (MIIU), a not‐for‐profit company established in 1998 for the purpose of using grant funding and technical help to guide the process of preparing and negotiating concession contracts and other forms of municipal service partnerships at the local level across South Africa. This article covers the MIIU's operations and rationale in an effort to describe one important way in which the government is responding to the challenges associated with extending basic municipal service provision to all of its citizens.     

Sub-Saharan Africa's rising public debt stock: Is there a cause for concern?

The study investigated public debt sustainability in sub-Saharan Africa (SSA) by testing the reaction of the primary balance to positive and negative shocks in public debts in a panel of 45 SSA countries. The study adopts the innovative nonlinear fiscal reaction function and the dynamic panel threshold model to account for the potential asymmetric phenomenon in the public debt series. In line with extant studies, the study found that public debts in SSA are weakly sustainable and there is a highly procyclical fiscal policy bias in SSA countries, particularly in resource-rich countries, indicating that governments' fiscal policy responses are expansionary during economic upturns and contractionary during recessions, which may aggravate recessions and worsen debt situations across SSA. For robustness, the study compares the results with emerging and developed economies. The results indicate that in advanced economies, public debt is sustainable and that fiscal policy response is countercyclical. The research and policy implications are discussed.     

Education and development: The role of non‐formal education,especially in developing countries

Education plays an important role in development, especially in a developing country. To develop the skills and knowledge of the large percentage of the people outside the reach of formal education, and to offer education programmes which can easily adapt and respond to the specific and immediate needs of a developing community, out‐of‐school programmes should be considered.

This article explains how non‐formal education, that is organized and systematic education offered outside the framework of the formal education system, could complement formal education, and should be organized to support integrated, community‐based development Briefly discussed guidelines for the planning of non‐formal education are the horizontal and vertical integration of all activities, extensive community involvement, a self‐help approach, the use of front line workers and the maximum utilization of existing facilities.     

Structural change in the economy and energy needs: A South African perspective∗

The paper reviews economic structural changes and the resultant effect on the demand for energy. Seen globally, structural change is determined primarily by:

• shifts In the sectoral contributions

• technological development

• increase in the urban population

• redistribution of income.

The South African situation is analysed with respect to the following factors:

• changes In sectoral energy use as a result of the development of the economy away from an agrarian economy towards a more industrialised economy

• urbanisation and the changing energy consumption patterns especially with regard to increased food and water, housing, domestic energy, transport and waste disposal needs

• redistribution of income and projected future demand for energy.

The importance of structural change in planning for future energy needs is emphasised.     

Small‐family farm types: Examples from Northern Namibia and implications for agrarian reform in South Africa

Small‐farmer types in southern Africa differ significantly in terms of factor‐input patterns and support structures. On peasant family farms (PFF) cash input costs are very low, non‐household labour is sourced largely from communal work groups through kinship ties, and support services needed to sustain production are minimal. By contrast, on commercial family farms (CFF) cash input costs are high, little non‐family labour is used and strong support services are necessary. The first objective of this article is to point out and emphasise the different situations which exist in these two small‐family farm types, based on data from farm studies in Northern Namibia. The second objective is to extract the implications of these differences in relation to development paths under land reform. This is based on experiences of the outcome of land reform in Latin America. It is concluded that the agrarian situation in post‐land reform South Africa will comprise a mix of large‐scale commercial farms and small‐scale farms of both the PFF and CFF types. It will be necessary to recognise the existence of each of these types and their interrelationships, to monitor their development, to understand their different production situations and to cater for their different needs.     

Public assets and services delivery in South Africa: Is it really a success?

Poverty alleviation remains a pressing concern for South African policy-makers. Implementing effective anti-poverty policies requires a clear understanding of the nature and extent of poverty. The extant literature on South African poverty dynamics shows a decline in the headcount ratio over the first decade of the twenty-first century. However, the prior research largely adopts a narrow money-metric approach, or uses multi-dimensional indices that include welfare indicators based on private assets (e.g. television sets) or those that are provided publicly (e.g. access to water). This paper uses multiple correspondence analysis to measure non-income poverty trends for the period 2005–12. The novelty in this undertaking lies in an attempt to include a measure of the perceived quality of public assets and services to complement the standard indices. This provides some measure of ‘success’ of public service delivery, accounting for both changes in access and quality.     

The main findings of the district pilot project of labour‐intensive road construction and maintenance in Botswana and the implications for similar projects in South Africa

Unemployment has been identified as one of the main problems confronting South Africa. Recently, in order to improve rural infrastructure and create employment, several pilot projects of rural road construction have been initiated in South Africa. In such a context it is considered that attention should be drawn to a pilot project carried out some time ago in Botswana to examine the potential of labour‐intensive methods in the construction and maintenance of rural roads.

The main conclusion of the pilot project was that labour‐intensive methods were viable, although attention had to be paid to several critical factors. In 1982, following its evaluation of the pilot project, the Government of Botswana decided that over the next five years the technical and organisational methods developed during the pilot project should be replicated throughout Botswana.

After a brief survey of the background to the project, the paper summarises several important features of the pilot project and its main findings. The paper closes with some comments on the implications of this pilot project for those currently underway in South Africa.     

The debate on the future of the population census: Relevance for South Africa?

The cancellation of the Canadian census long-form questionnaire in 2010 and its subsequent reinstatement in 2015 resulted in a vigorous international debate on the future of the mandatory census. Questions concerning state invasions of personal privacy, party political interference and public trust and cooperation in state data-gathering were raised. As a result, alternative forms of demographic data collection were explored and the experiences of other countries examined. National population registers and non-mandatory surveys offered alternatives, but each had their own distinct disadvantages. South Africa has continued to conduct mandatory detailed censuses since 1994 and the enumerations have encountered little political opposition because they are presented as essentially nation-building exercises providing credible and relevant data, upon which national policies may be based and monitored. At present there is little incentive to change the current format of statistical collection in the absence of a viable alternative.     

Monetary policy and financial stability: what role for the interest rate?

We propose an ex-post analysis of the behavior of a central bank confronted with financial turmoil. For this purpose, we rely on a DSGE model that combines credit market frictions with a boom and bust scenario on the price of capital. Within this framework, we seek to understand the extent to which central banks could have intervened to limit the effects of the financial bubble and its bursting. We compare the results obtained in terms of economic stabilization under a simple Taylor rule with those of an augmented rule that takes into account a financial indicator. We show that a central bank using as sole instrument the interest rate cannot simultaneously improve inflation and credit cycles.     

The management of South Africa’s landfills and waste pickers on them: Impacting lives and livelihoods

Effective management of waste and the promotion and management of recycling activities are necessary for sustainable and liveable cities. A key but unrecognised element in promoting recycling is the efforts of waste pickers who make a living from recycling mainline recyclables. This article aims to describe the approaches used on 10 landfills in South Africa to manage waste pickers’ access to recyclables and their daily activities on the landfills. A multiple case study design and cross-case analysis were used in this study. The sustainable livelihoods framework (SLF) was used to analyse and explain the data. The results showed that waste management policies and practices directly influence the waste pickers’ access to recyclable waste and their livelihoods. Finally, some inclusionary and exclusionary practices are highlighted that could guide inclusive, participatory and co-productive practices for waste pickers in South Africa towards increased recognition, access, dignity and income.     

The problem of defining ‘community’: Challenges for the land reform programme in rural South Africa

This article argues that the use of the term ‘community’ in South Africa's land reform programme has both positive and negative effects on the beneficiaries. Effects are positive when they help focus policy on the needs of poor people, but negative when they force conflicting groups together in a manner which results in the rights of a weaker group being trampled on by the actions of a more powerful group. The article briefly reviews different ways of looking at the concept ‘community’, and then analyses in detail a case from the Wild Coast, where a Spatial Development Initiative (SDI) has raised questions about who should benefit from land reform and economic development. It is concluded that a detailed understanding of local reality, even if it takes time to develop, should be seen as essential to both land restitution and the rights enquiry processes which government policy proposes to employ for resolving conflicting and overlapping claims to tenure rights     

Reform of one‐channel marketing systems: Expanding the debate and agenda for research

The recent exchange between Groenewald and Brand on the report tabled by the Committee of Inquiry into maize marketing arrangements makes for interesting reading. Professor Groenewald raises a wide range of important conceptual and pragmatic concerns, with the stinging conclusion that the Commission did not achieve its primary mission and an opportunity for substantive reforms was lost. Dr Brand countered by pointing out that the Commission focused on changes that were politically acceptable and would ‘set in motion a movement towards a more market‐oriented situation’. There is wisdom in the comments of both authors and the time is ripe for agricultural economists in South Africa to address an expanded research agenda on these issues.

At the outset, it should be made clear that no special knowledge of the maize marketing system in South Africa is claimed. However, the current debate bears many similarities to that which is currently engulfing agricultural policy observers in Canada and the United States. Agricultural reform and the need to remain competitive in an increasingly open world market is a theme that has thrust itself on policy analysts. In Canada, agricultural economists have engaged in an active professional debate on the merits of supply management and one‐channel marketing systems over the past ten years. Although the strengths and weaknesses of these systems have been well documented from theoretical and conceptual bases, the major impetus for change has come from empirical analysis and the realization that Canada had created an environment which fosters unproductive agricultural sectors, International uncompetitiveness, and food prices that penalize consumers, expecially those in low-income categories. In some cases, prices are so far out of line with the United States that border crossings are deluged on weekends with Canadian shoppers returning home with goods purchased. Food items, expecially those under one-channel supply management marketing systems, figure prominently in the goods brought back to Canada. The system of supply management is in crisis and even the marketing boards have acknowledged that significantly more market orientation is necessary.

Agricultural economists can make a significant contribution to the policy debate in South Africa. Brand is quite right in pointing out that the process will be evolutionary — what is politically unacceptable today may become the policy of tomorrow. The time frame of policy reform fits well into that which is needed to conduct empirical research. But this research must focus on the important issues, even though they may be unpopular. Groenewald makes an important first step in this direction by drawing attention to the issues of productivity and pricing. However, more steps are needed. A critical issue, from my perspective, is the capitalization of benefits from protective agricultural policies.     

Europe,Germany and “The German Model”: Economic Links and Implications for China

Abstract

In this paper, I examine the economic links first between the European Union (EU) and China and then I focus on the economic relationships between Germany and China. The links I will consider include international trade and direct investment. Lastly I highlight some elements of the so-called “German Model” or the “Berlin Way” and examine if they can be of policy relevance to China. There are four main results: first, EU-China trade and investment relationships are strong, deepening rapidly but they are somewhat unbalanced and asymmetric. Second, the economic relationships between Europe and China are focused on manufacturing. Third, the EU-China relationships are primarily Deutschland-centric. Lastly, elements of the “German Model” such as Mitbestimmung, Mittelstand and the German apprenticeship system can have important structural and policy implications as China continues to grow and experiment with reforms aiming at combining stability, harmony and competitiveness.     

Public works programme and primary health care in South Africa: Creating jobs for health systems strengthening?

This paper examines employment and skills training for community caregivers within the expanded public works programme in South Africa. The paper argues that, as currently conceptualised, the skills and learnership programmes for community caregivers fail to take full advantage of the prevailing labour market realities. Therefore, the paper argues for strategic reconceptualisation of the programme to include learnerships for community caregivers that impart more mid-level to higher-level skills to meet current and future labour market demands particularly in primary health care. This, it is argued, will address the scarcity of skills in the health sector of the economy. Furthermore, the proposed programme will simultaneously have positive impacts on unemployment, the primary health care system and the socio-economic well-being of community caregivers.     

The role of U.S. naval power in the Asia‐pacific region: From regional protector to regional balancer

For more than four decades, U.S. engagement in the Asia‐Pacific was centered on two premises: a Cold War commitment to Asian security and the remarkable economic power of the U.S. The U.S. Navy provided a symbol of the United States’ commitment to protect its interests and those of its major Asian‐pacific allies. Despite the end of the Cold War, the security environment of the Asia‐Pacific region is still less changed and even a new threat of a regional naval arms race emerged in the 1990s. In this context, although forward deployments of U.S. military power in the Western Pacific have been scaled down, it is certain that the U.S. naval force will continue to play an important role as a key “regional balancer.” Amid the collapse of the Soviet Union and in the post‐Cold War era, the U.S. has still emphasized the maintenance of a U.S. forward‐deployed presence and strong defense alliances with U.S. allies in order to prevent the emergence of regional hegemonic powers and to contribute to regional stability as well as improve U.S. economic interests. Moreover, in the face of a multitude of threats from state and non‐state actors, the U.S. Navy is increasingly focused on and driven by the demands of peacetime and crisis forward presence.     

Economic policy uncertainty and firm’s cash holding in China: The key role of asset reversibility

This paper investigates how asset reversibility affects the sensitivity of firm’s cash holding to economic policy uncertainty in China. Using the 2012 national input-output table for 139 industries, we measure the industry-level asset reversibility and match them with nonfinancial publicly listed firms over 2007−2017. The results show that asset reversibility has a significant and negative effect on the positive uncertainty-cash holding sensitivity, especially for firms with more severe financial constraints. Furthermore, we find that firms with higher asset reversibility invest more in fixed assets, suggesting that real investment is an important mechanism. In addition, baseline results are robust to potential endogeneity and alternative measures of asset reversibility and economic policy uncertainty. Our findings reveal that asset market friction is a critical determinant of firm’s cash holding.