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Informal settlement dwellers take matters into their own hands
Posted: September 26, 2018
Mmamoletji Oniccah ThosagoRecently, formal institutions and services have begun to emerge in townships, usually through mall-style retail spaces.This has included many financial sector institutions.In doing so, it was expected that the close proximity of banks would lead to an uptake of financial services from the unbanked population based in informal settlements with close proximity to townships. However, the available evidence suggests that this has not occurred, and a number of regulatory barriers have been identified as rendering the use of formal institutions prohibitive for the poor. Read Article
State capture and the transition to a green economy
Posted: July 02, 2018
Brent CloeteState-owned corporations (SOCs), which have been particularly prone to state capture, have an important role in supporting the transition to a greener economy in South Africa. State capture can negatively impact this role, and the broader transition to a greener economy in South Africa, in several ways: State capture creates incentives for rent-seeking and corruption rather than innovation and entrepreneurship, limiting investment in the skills and capabilities required to drive transitions; it compounds existing structural rigidities and makes it more difficult for resources to migrate to where they are most useful during the transition to a low carbon economy; it reduces the capacity within public institutions to implement policies and initiatives that could support the transition. It also drains resources that could be used to support the transition; and it reduces the likelihood that the move to a green economy can reduce inequality. Read Article
Day Zero: What have we learnt?
Posted: June 25, 2018
Samantha MunroIn lieu of ‘day zero,’ the city of Cape Town implemented a number of water resource management measures in order to avoid a situation whereby the city would need to cut off their main water supply. While Cape Town may be the first major city in the world to potentially run out of water, water scarcity and water insecurity are issues experienced across South Africa and globally. Through this water crisis, Cape Town has managed to reduce their water demand by more than half. This article explores some of the most effective methods that were used to create more sustainable water usage and highlights some of the precautionary measures that other cities could potentially adopt and employ before a water crisis point is reached. Read Article
At what price? The budgetary implications of fee-free higher education
Posted: June 25, 2018
Fouche Venter and Dawid PienaarMuch of the on-going debate around fee-free higher education has centred on its appropriateness and fairness for students, universities and colleges. The unavoidable and large budgetary trade-offs this policy creates – i.e. its effect on other government programmes and expenditures – has however received little attention. While the longer term costs and benefits of fee-free education are difficult to quantify, we look at the large short term adjustments that were necessary in government’s 2018/19 budget. The data shows that significant budget cuts have already been necessary across government, many of which are likely to impact on the lives of the poor and / or the growth potential of the economy. Read Article
Too good to be true? The importance of collecting better data.
Posted: June 25, 2018
Dawid Pienaar, Zulaikha Brey and Fouche VenterMany evaluations rely almost exclusively on perception based data collected through interviews with, or surveys of, implementers (programme providers) and/ or beneficiaries (programme users). While interview data is relatively easy to collect and often provides valuable insights, such data suffers from a number of shortcomings, biases and limitations. We highlight a number of these issues in the context of educational research and suggest potential ways of reducing the risk that such issues result in incorrect research findings and recommendations.Read Article
Have changes to transfer duty rates impacted on home ownership?
Posted: April 06, 2018
Linton Reddy and Sarah TruenHome ownership is a goal that most citizens strive for. However, the currently constrained economic environment means that most South Africans will have to wait to own a home. The government can play a role in facilitating this endeavor through a range of fiscal and monetary policy tools. For example, recent amendments to the rate of transfer duties on residential properties may impact on the ability to purchase/finance a home. The evidence, to date, is not particularly promising.
Read ArticleWho is brewing my tea – tea brokers and dominant tea processors?
Posted: April 05, 2018
Mmamoletji Oniccah ThosagoThe Kenyan and South African tea cases show that although competition adjudications are made to protect and promote fair competition among companies, competition authorities also protect and promote fair price setting for the benefit of consumers. Consumers should be protected from paying excessive prices for inferior goods, and should be given the freedom to choose from multiple, high quality and innovative products.
Read ArticleMeasuring Green Growth in South Africa
Posted: February 21, 2018
Samantha MunroDespite South Africa’s efforts in transitioning to a green economy, measuring the success of the transition is hampered by lack of available indicators. While measuring the progress of green growth is not only an issue faced by South Africa, but globally, it is a critically important to enable an assessment of the impact of green policies. The transition towards a green economy is likely to provide growth opportunities, however, there may be trade-offs in terms of realising socio-economic priorities. Clear definitions, robust performance metrics, and adequate data to enable performance measurement are crucial for providing evidence of whether policies have been successful. This is particularly important for South Africa which continues to try and combat unemployment, poverty and equality while simultaneously trying to strive towards environmental sustainability. Read Article
Technological Innovation and the Developmental State: China’s Transition to an Entrepreneurial State?
Posted: January 24, 2018
Stephanie CraigTechnological innovation. The 'source of energy within the economic system which would of itself disrupt any equilibrium that might be obtained' (Friedberg, 2013). Not a new concept by any means, innovation-based growth has traditionally been the objective of the developed, advanced countries of the world. However, in an evolving global landscape marked by the emergence of expansive 'bottom-of-the-pyramid' consumer markets, complex global value chains and the increasing importance of knowledge-based productive sectors - technological innovation has become a vital source of growth for developing countries. Read Article
The Global Push for Pluralism in University Economic Curriculums
Posted: January 24, 2018
Stephanie CraigIn October 2017, I was fortunate enough to travel to Edinburgh, Scotland, to attend the inaugural Festival for New Economic Thinking – a gathering of "organizations and individuals seeking to improve the way economics is taught, studied, and practiced.” Funded by the Institute for New Economic Thinking (INET) and put together by a host of organisations - including the Young Scholars Initiative, The Minskys and Rethinking Economics – this was an economics ‘nerd-fest’ unlike anything I had ever experienced before. Running over two jam-packed days, this gathering really did have an exciting festival atmosphere and offered too many panel debates, presentations, video discussions and key note speakers than one could ever process in such a short space of time.
