A democracy through compromise and institutional choice, is my own work and that all the sources i have used or quoted have been indicated and acknowledged by means of complete references. It was ruled for decades under an apartheid regime where whites dominated the centers of power and effectively ruled over the countrys black population. Economic policy and power relations in south africas transition to democracy economic policy and power relations in south africas transition to democracy habib, adam 20000201 00. This economic regeneration was disrupted by the eruption of the global financial crisis. Economic policy and power relations in south africas transition to democracy article in world development 282. We distinguish three categories of economic policies. Third, the national government was required to share national tax revenues with the provinces to finance assigned provincial services. The research assistance of lisa gennetian, rene bernier and paul higgins is greatly appreciated. Following in the classical tradition of political economy, the study also address the moral debates about. Conversely, under what form of economic system is democracy not likely to take root and grow. It is the strategic framework for delivering on africas goal for inclusive and sustainable development and is a concrete manifestation of the panafrican drive for unity, selfdetermination, freedom, progress and collective prosperity pursued under panafricanism and african. Democracy without the people political institutions and citizenship in the new south africa1 robert mattes.
South africa is the most developed and modern country in africa with extensive natural resources, a developed agricultural sector and significant manufacturing. Microeconomic policies are formulated in terms of the national industrial policy action plans 2010, 2014 and the south. South african economic policy under democracy oxford martin. Economic transformation in south africa democratic alliance. United nations development programme in south africa. The purpose of the paper is to examine the effect of fiscal policy variables on economic growth in south africa.
The political economy of slums in africa democracy in africa. I declare that, a study on democratic transition in south africa. The purpose of the paper is to examine the effect of fiscal policy variables on. The book includes a standalone introduction and economic overview, as well as chapters on growth, monetary and exchange rate. The making of economic policy in africa world bank. In this blog post, sean fox explains his most recent research into the political economy of slums in africa, which has been recently published in world development journal.
The south african economy, which grew by an estimated 0. Pdf this paper studies the link between democracy and economic. Pdf south africas democratic transition in 1994 created expectations of a. Yet, south africas real economic growth rate stabilised and improved during 19952004 relative to the previous decade, from an average of 0. Sean fox is a lecturer in human geography at the university of bristol.
Context and contours it is common for writings on this subject to lay out a context whose main message is that south africas foreign policy began in 1994 and according to which the country is new in international affairs. South africas key economic policies changes 1994 20. Ndp is viewed as a policy blueprint for eliminating poverty and reducing inequality in south africa by 2030. South african economic policy under democracy journal of. A political economy of africa and the contemporary global.
Twenty years of south african democracy executive summary after 20 years of democracy, south africans celebrate that human rights have been realized and that society is transforming. Pdf fiscal policy and economic growth in south africa. Political institutions and citizenship in the new south africa. A variety of panel data unit root and cointegration tests are applied. Australia present a set of important research findings and policy recommendations on the political economy of development in subsaharan africa. A paper presented at the centre for the study of african economies conference on economic development in africa, st. Understanding the democratic transition in south africa 3 administration of transfers to the poor and elderly. Economic policy has been conducted in an equally exemplary manner, with south. Imf on economic policy in south africa s transition to democracy. As south africas economic fortunes have declined in recent years in the face of. South african economic policy under democracy request pdf. By the early 1990s, the attempts of successive apartheid era governments to. South african economic policy under democracy oxford scholarship. Pdf economic growth in south africa since 1994 researchgate.
Firstly the share of mining in gdp stood at 11% in 1994, but has steadily declined over an eighteen year period to its current 5% in 2012. We have taken a deliberate decision to do this jointly. In short, the share of mining in national output has more than. Can democracy be reconciled with african tribal diversity. Pdf democracy and economic growth in subsaharan africa. The central economic policy goal of the south african government is to accelerate inclusive growth and create jobs. The fiscal policy variables considered in the study include government gross fixed.
The global economic growth outlook has improved, but is clouded by policy uncertainty as the world trading system comes under mounting pressure. Guide to african political and economic development arnold, guy on. The halfmodule is six weeks long 17 september 2 november, there are. The dismal growth performance of the south african economy since 1975 is thus cause for grave concern. A case study of south africa iii about the series the commission on growth and development led by nobel laureate mike spence was established in april 2006 as a response to two insights. Kennedy school of government, harvard university, cambridge, ma, usa. It then discusses the evolution of economic policy thinking in south africa, international reintegration, trends in inequality and poverty, and growth and the reduction of unemployment. South african economic policy under democracy oxford. Decompositions of inequality by income source show that labour income accounts for 85% of inequality. This paper studies the link between democracy and economic development for 28 countries of subsaharan africa for the period 19802005 in a panel data framework. Younger prepared for the special program of assistance donors meeting, september 1994. Economic policy and south africas growth strategy trevor a. Balancing principles and practice south african foreign policy is guided by the following principles.
Review note brian dollery abstract ongoing political stability in south africa appears contingent on a sustained and high level of per capita economic growth for the foreseeable future. Its main fiscal objective is to ensure sustainable finances by containing the budget deficit and stabilising public debt. If it is economic growth alone, then democracy is not a necessity. Twenty years of south african democracy freedom house. The national budget deficit has shrunk from 8 percent to around 2 percent of gdp.
One important underlying factor for understanding south african attitudes toward democracy and democratic citizenship is the history and nature of education. In south africa wage income including selfemployment income accounts for 70% of income. Economic growth stagnated during apartheid due to sanctions on international trade and investment. While there is strong disappointment with the government and its leaders. You can use this for the iols major, the iols programme or as an additional module in your degree structure. The relationship between political and economic reform in. Geeta kingdon, south african economic policy under democracy, journal of african economies, volume 16, issue 5, november 2007. Centre for energy policy and economics, eth zurich, zurichbergstrasse 18, 8032 zurich. Sout h african journal of education copyright 2008 easa. This book provides an uptodate assessment of south africas economic policies and performance under democracy. Building democracy in africa is therefore is a twin project of building both political and economic democracy.
Committee for african studies occasional papers series june 2005. It aims to ensure the promotion of investment in the real economy, efficiency of economic institutions and productivity, thereby raising income levels and. The role and influence of the imf on economic policy in. In fact, the fh hypothesis, a cru cial link between the democracy and capital accumulation perspectives, has yet to be assessed within the democracyeconomic growth debate. Democracy and south africa south africa is a blackmajority country and southernmost of the nationstates of africa. Economic policy conduct in south africa is about micro and macroeconomic policies. It is increasingly perceived, for better or worse, that democracy offers a solution to major social and economic problems. The article further examines the alignment or lack thereof between national and, provincial government development policy frameworks in relation to the policy on local economic development implemented in the sphere of local government. Labour income explains the bulk of household income. Microeconomic policy deals with policies targeted at the development of economic sectors, firms and households. This paper attempts to fill this gap by first testing the fh. Democracy is defined as a set of representative institutions that strive to uphold liberal values. This requires a creative mix of policy options underpinned by a commitment to social justice. The relationship between political and economic reform in africa henry bienen and jeffrey herbst more than thirty african countries are now attempting simultaneously to liberalize their political systems and reinvigorate their economies with stabilization and structural adjustment programs.
This is in contrast to what the anc claims in various policy documents. The variables are found to be integrated of order one and cointegrated. Centre for the study of african economics, department of economics. The growth in the number of citizens who receive social grants cannot be sustained by an economy that is in decline. Economic policy, labour markets and job creation is a 16 credit halfmodule at the thirdyear level. Upon south africa s transition to democracy in 1994, there were great hopes for an economic revival in the country, underpinned by supportive economic policies that prioritised job creation and.
In order to address the countrys socioeconomic imbalances, ndp identifies, the key constraints to faster growth among other things and presents a roadmap to a more inclusive economy. Understanding south africas economic puzzles dani rodrik john f. In the decade prior to 1994, south africa experienced the worst period of economic growth since the end of the. Policies to promote growth and employment in south africa. South african economic policy under democracy janine aron. A commitment to the promotion of human rights, which are not limited to political rights but include social, economic and environmental rights. During the first decade of democracy in south africa, the economy has recorded one of its longest periods of positive economic growth in the countrys history. Understanding the democratic transition in south africa. South africa s economy has undergone substantial changes since the advent of democracy in 1994. Dmcafrican%20journalspdfstransformationtran052tran052004. That is, under what mode of economic system and stage of economic development is democracy consummated. Economic policy and power relations in south africas. Policies to promote growth and employment in south africa executive summary introduction the most pressing problem facing south africa today is the absence of sustained economic growth and job creation, which are essential to reduce poverty and improve living conditions. The emakhazeni local municipality is used as a case study.
How is the crisis constituted and how does it affect the. Guide to african political and economic development. As the twentieth anniversary of the transition to democracy approaches in 2014, the economic policy debates in south africa are in full flow. Postapartheid southern africa south african history online. South africa experienced a momentous change of government from the apartheid regime to its first democratic government in 1994. A foreign policy handbook institute for global dialogue. Economic development south africas economic policy makers should be proud of a number of accomplishments. A south african trade policy and strategy framework. The gap between the rich and the poor continues to widen. Emph asising the n eed for the pra cti ce of dem ocracy in schools, carter et al. Working papers can be downloaded in pdf adobe acrobat format from.
A democracy index constructed from the freedom house indices. Therefore, schools need to practise what they seek to promote. Civic education in south africas first postapartheid generation. Economic insecurity reduces demand, but suprisingly race has no effect. This is true around the world, and south africa is no exception. One of the more vexing issues within the economic policy terrain in postapartheid south africa though, has been the impact of this consistently. To deploy our policy expertise, strong commitment and trusted influence in the support of political leaders committed to the pursuit of economic reforms through formulation and execution of sound policies based on the proposition that governments can achieve equitable growth when they are open, honest and disciplined. African democracy needs both political freedom and economic freedom and of course, social, cultural and individual freedom. The african exponent weekly every week, get a digest of top african news and articles from the african exponent. Agenda 2063 is the blueprint and master plan for transforming africa into the global powerhouse of the future. This chapter begins with a discussion of the social and economic legacy of the apartheid era. Democracy and economic growth in subsaharan africa. This book provides an uptodate and comprehensive assessment of south africas economic policies and performance under democracy.