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.     

Land reform: Lessons for South Africa from the Republic of China on Taiwan

Before the implementation of land reform in 1949, the skewed distribution of land ownership and the unhealthy tenancy system in the Republic of China on Taiwan was of great concern to the Kuomitang Nationalist government. Apart from hindering economic development, it also threatened the social and political stability of the island. Taiwan is today regarded as one of the newly industrialized countries. Its remarkable economic achievements are to a large extent closely linked to the successful execution of a land reform programme. Faced with similar problems of an unhealthy distribution of land ownership, policy makers and those who have influence on policy in South Africa can learn a great deal from the Chinese experience.     

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.     

Aid and economic growth in LDCs: Evidence from Sub-Saharan Africa

This paper uses a disaggregated cross-national time-series aid data and a Least Squares Dummy Variables (LSDV) model to investigate the effects of aid on economic growth in Sub-Saharan Africa. We find that, contrary to what some critics of aid argue, aid has a small but positive and significant effect on economic growth in Sub-Saharan Africa. A simultaneous equation specification of the model shows that aid affects economic growth in Sub-Saharan Africa directly and indirectly through increased domestic savings and investment.     

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.     

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.     

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.     

Income tax reform for a globalized world: The case for a dual income tax

Countries that are industrialized, or becoming so, must adopt tax systems that are capable of raising considerable amounts of revenue efficiently, equitably and with administrative simplicity, while at the same time coping with the competitive features of a globalized world economy. A component of that tax system will be direct taxation of households alongside general sales and payroll taxation. This paper addresses the role that capital income taxes should play in the income tax system. Arguments for the preferential treatment of capital income are summarized, and a case is made for adopting a schedular approach in which capital and labor income are taxed according to separate rate structures. The particular case of the dual income tax system used in the Nordic countries is advocated whereby capital income is taxed at a low, flat rate and non-capital income is taxed progressively. It is argued that this system best combines the objectives of a good tax system in an internationally competitive environment.     

Income tax progressivity and reform

A preliminary version of this paper, entitled The Determinants of Income Tax Progressivity, was presented at the Twenty-Fourth International Atlantic Economic Conference in New York, September 4, 1987. The author wishes to thank various people for their comments and suggestions, including Elizabeth C. Bogan, W. Swift, Jaime Tenjo, and an anonymous referee of this journal.     

Indonesia's new tax reform: Potential and direction

This study aims to provide direction for policy and provide input to improve the quality of taxation services, by emphasizing and analyzing the existing tax potential and recommending a taxation reformation plan in accordance with fiscal sustainability and efforts to increase the level of Indonesian competence both for the transition period and in the long term. The result of the study has indicated that there is still the opportunity to increase national revenue without increasing rates and by increasing the capacity of tax administration and expanding the tax base, tax collection/revenue will increase. There are a number of indicators that illustrate this, such as the ratio of tax revenue to the GDP which is still relatively low compared to other countries, wide scope for increasing value added tax (VAT), PIT and CIT revenue productivity, etc. Our best estimation for potential tax revenue expansion for the next 2–3 years would be 2.1% of GDP where PIT and CIT contributed more than half of that expansion.