L Msengana-Ndlela: Policy process on system of Provincial and Local
Government

31 July 2007

Summary

Decentralised local government has played a valuable role in supporting the
implementation of national and provincial programmes and in discharging its own
assigned duties. But there are policy aspects that have to be improved.

At a provincial level, many provinces have displayed the ability and
potential to perform a valuable and innovative role in discharging their powers
and functions, and mediating a positive relationship between national and local
government. However, challenges remain.

National government will need to re-assess its support role to provinces and
municipalities and some of the functions that it currently discharges, as they
relate to provincial and local government.

Content

The advent of democracy in 1994 saw South Africa emerge as "one, sovereign,
democratic state" and being "constituted as national, provincial and local
spheres of government which are distinctive, interdependent and interrelated".
The current governance model, according to the Constitution (1996) is premised
on the principles of co-operative government, even though each sphere of
government has distinctive functional responsibilities.

Rationale for policy process

Local government underwent a lengthy process of transition that eventually
resulted in the establishment of the new system of local government. Provincial
government, by contrast, was established as a result of a negotiated
settlement. Whilst the Constitution created the provincial sphere of
government, with particular powers and functions, there was no coherent policy
or framework to guide its evolution.

It is within this context that Cabinet mandated the Department of Provincial
and Local Government to initiate a process of developing a White Paper on
Provincial Government and reviewing the White Paper on Local Government.

This review process is by no means an indication of failure by any of the
spheres of government nor does it question their existence. Many countries,
within the developed and developing world, undertake similar processes in order
to balance the governance systems with the demands of the electorate.

Notwithstanding the review process, our government has in the past 13 years
as a fledgling democracy achieved significant successes, particularly with
regard to the provision of basic services to the majority of the previously
deprived communities. Having regard to the above, government now seeks to
refine this system so that it can accelerate the pace and quality of
development to higher levels.

Also, we have learnt useful lessons from specific programmes and
interventions, such as Project Consolidate in 2004. At that point, we indicated
that our interventions are two fold. Firstly, we continue to engage the whole
of government, the private sector and other development agencies to develop the
capacity of municipalities to perform their mandate. We also indicated that, in
addition to this, we will undertake a process of refining policy, fiscal and
institutional matters to enable the consolidation of the local government
system in the medium to long term.

Improving local government

Since the introduction of the local system of government in 2000, many
pieces of local government legislation, guided by the Constitution (1996) and
the White Paper on Local Government (1998) were developed, such as:

* Municipal Demarcation Act (1998)
* Municipal Structures Act (1998)
* Municipal Systems Act (2000)
* Disaster Management Act (2002)
* Traditional Leadership and Governance Framework Act (2003)
* Municipal Finance Management Act (2003)
* Municipal Property Rates Act (2004)
* Intergovernmental Relations Framework Act (2005).

There is no doubt that some in-roads have been made by government in the
fight against poverty. For example, with regard to basic local services, the
following achievements have been recorded:

* access to water: 59% of households had access to water in 1994, and this
has increased to 86% in 2007
* access to sanitation: The access to sanitation increased from 48% of
households in 1999 to 73% in 2007
* access to electricity: In 1994, 30% of households in South Africa had access
to electricity and, in 2006 this increased to 73%
* housing: Since 1994 to 2007, 2,35 million housing units were completed.

Some of the emerging policy questions and proposals focus on the
following:

* community involvement, improvement in the quality of local democracy,
municipal responsiveness and accountability
* meaningful partnerships with community organisations, labour organisations,
and the private sector
* functional and structural challenges of the three categories of
municipalities (metros, districts and locals)
* the importance of the environment in the context of sustainable
development
* financial and revenue generation
* local economic development.

Provincial government

Given that local democracy has generated new opportunities for more
responsive and efficient governance, a clear and coherent framework is
critical. Some of the emerging policy questions and proposals, therefore, focus
on:

* the role of the provincial sphere (purpose, structure and functions,
number, sources of funding)
* legislative functions, if any
* potential synergies within and between geographical spaces/ spheres that
could result in improved developmental imperatives.

National government

As we may all know, the economic outlook for the country is positive, with
the real GDP growth showing an increase from 3,12% (2003) to five percent
(2006), and forecasted to reach 5,4% in 2009. The national efforts to also
share this growth are espoused by the Accelerated and Shared Growth
Initiative-South Africa (AsgiSA). Some of the emerging policy questions and
proposals are focused on:

* ensuring effective intergovernmental relations for improved
development
* authority and accountability mechanisms.

Reviewing powers and functions

Some of the emerging questions and policy proposals in this area of focus on
powers and functions allocated to the three spheres of government are based
on:

* the appropriate location of functional responsibilities between
spheres
* an evaluation of the concurrency principle and its appropriateness.

Improving planning, monitoring and evaluation

Some of the emerging questions and policy proposals focus on:

* Integrating plans and frameworks to achieve the national vision (National
Spatial Development Perspective, Provincial Growth and Development Strategy,
Integrated Development Plan).
* Effective contribution of Provincial Growth and Development Strategies to
economic growth and social development.
* Addressing semi-urban and rural characteristics of municipal areas.
* Co-ordinating, monitoring and evaluation of service delivery and
development.

Policy process

Following public inputs from August until 31 October, and further extensive
research, a Green Paper on Provincial Government and a discussion document on
Local Government will be published by December 2007. After the Green Paper has
been commented on and inputs received from the public, work will commence on
the final White Paper by mid 2008.

In conclusion, we call on all sectors of society to participate and continue
to engage in these processes of development. This policy process will be
enriched by the benefit of experience held by the South African people.

Issued by: Department of Provincial and Local Government
31 July 2007
Source: Department of Provincial and Local Government (http://www.dplg.gov.za)