Mobilizing Urban Infrastructure Finance within a Responsible Fiscal Framework : South African Case
Since South Africa held its first democratic elections in 1994, it has given significant attention to building an effective system of decentralization including provincial and local government. While provincial governments are responsible mainly for the implementation of social services such as heal...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2006/11/7154598/mobilizing-urban-infrastructure-finance-within-responsible-fiscal-framework-south-african-case http://hdl.handle.net/10986/9027 |
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okr-10986-90272021-04-23T14:02:41Z Mobilizing Urban Infrastructure Finance within a Responsible Fiscal Framework : South African Case van Ryneveld, Philip ACCOUNTABILITY ASSET SALES ASSETS AUTONOMY BANKS BOND ISSUES BORROWING CAPACITY BUILDING CAPITAL BUDGETS CAPITAL GRANTS CITIES DEBT DECENTRALIZATION DEVOLUTION EMPLOYMENT EQUALIZATION EXTERNALITIES FINANCIAL MANAGEMENT FINANCIAL REPORTING FISCAL DEFICITS GOVERNMENT BONDS GOVERNMENT DEBT GOVERNMENT SPENDING HOUSING INCOME INFLATION INSURANCE LEGISLATION LEVIES LOCAL AUTHORITIES LOCAL GOVERNMENT LOCAL GOVERNMENTS LOCAL LEADERSHIP LOCAL LEVEL LOCAL TAXES MAYORS METROPOLITAN AREAS METROPOLITAN CITIES METROPOLITAN GOVERNMENT METROPOLITAN GOVERNMENTS MUNICIPAL MUNICIPAL ACCOUNTING MUNICIPAL BONDS MUNICIPAL FINANCE MUNICIPAL GOVERNMENT MUNICIPAL GOVERNMENTS MUNICIPAL INFRASTRUCTURE MUNICIPALITIES MUNICIPALITY NATIONAL GOVERNMENTS POLITICAL POWER PRIVATE SECTOR PROPERTY TAXES PROVINCES PROVINCIAL GOVERNMENT PROVINCIAL GOVERNMENTS PROVINCIAL SPENDING REGIONAL GOVERNMENTS REVENUE SOURCES SETTLEMENTS TRANSPORT URBAN AREAS URBAN GOVERNMENTS URBAN INFRASTRUCTURE URBAN SERVICES URBANIZATION USER CHARGES UTILITIES Since South Africa held its first democratic elections in 1994, it has given significant attention to building an effective system of decentralization including provincial and local government. While provincial governments are responsible mainly for the implementation of social services such as health and education, the provision of much of the urban infrastructure is the responsibility of local government. Although many challenges remain, the country has made significant progress over the past decade in addressing urban service backlogs in poor areas. At the same time, it has greatly improved macroeconomic fundamentals. The system of financing local government seeks to place accountability firmly at the local level, with most revenues in the larger urban centers raised locally through a combination of local taxes and fees for services, while poorer regions are predominantly grant funded. The objective has been to encourage the financing of capital infrastructure through local borrowing based on sustainable, transparent local finances rather than national repayment guarantees, which are outlawed. There is some indirect subsidization of loans through the state-owned Development Bank of Southern Africa. But the emphasis is on achieving redistribution through transparent, formula-based grants paid directly from national to local governments. While further bedding down of the system is needed, the approach is proving largely successful. The paper concludes by recommending that the existing division between provinces as providers of social services and local governments as the key locus of responsibility for services related to the built environment should be strengthened, particularly through the devolution of more urban transport related functions. A number of key risks are also highlighted, including issues related to the reform of local business taxes. 2012-06-26T14:54:05Z 2012-06-26T14:54:05Z 2006-11 http://documents.worldbank.org/curated/en/2006/11/7154598/mobilizing-urban-infrastructure-finance-within-responsible-fiscal-framework-south-african-case http://hdl.handle.net/10986/9027 English en_US Policy Research Working Paper; No. 4042 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research |
| repository_type |
Digital Repository |
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Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ACCOUNTABILITY ASSET SALES ASSETS AUTONOMY BANKS BOND ISSUES BORROWING CAPACITY BUILDING CAPITAL BUDGETS CAPITAL GRANTS CITIES DEBT DECENTRALIZATION DEVOLUTION EMPLOYMENT EQUALIZATION EXTERNALITIES FINANCIAL MANAGEMENT FINANCIAL REPORTING FISCAL DEFICITS GOVERNMENT BONDS GOVERNMENT DEBT GOVERNMENT SPENDING HOUSING INCOME INFLATION INSURANCE LEGISLATION LEVIES LOCAL AUTHORITIES LOCAL GOVERNMENT LOCAL GOVERNMENTS LOCAL LEADERSHIP LOCAL LEVEL LOCAL TAXES MAYORS METROPOLITAN AREAS METROPOLITAN CITIES METROPOLITAN GOVERNMENT METROPOLITAN GOVERNMENTS MUNICIPAL MUNICIPAL ACCOUNTING MUNICIPAL BONDS MUNICIPAL FINANCE MUNICIPAL GOVERNMENT MUNICIPAL GOVERNMENTS MUNICIPAL INFRASTRUCTURE MUNICIPALITIES MUNICIPALITY NATIONAL GOVERNMENTS POLITICAL POWER PRIVATE SECTOR PROPERTY TAXES PROVINCES PROVINCIAL GOVERNMENT PROVINCIAL GOVERNMENTS PROVINCIAL SPENDING REGIONAL GOVERNMENTS REVENUE SOURCES SETTLEMENTS TRANSPORT URBAN AREAS URBAN GOVERNMENTS URBAN INFRASTRUCTURE URBAN SERVICES URBANIZATION USER CHARGES UTILITIES |
| spellingShingle |
ACCOUNTABILITY ASSET SALES ASSETS AUTONOMY BANKS BOND ISSUES BORROWING CAPACITY BUILDING CAPITAL BUDGETS CAPITAL GRANTS CITIES DEBT DECENTRALIZATION DEVOLUTION EMPLOYMENT EQUALIZATION EXTERNALITIES FINANCIAL MANAGEMENT FINANCIAL REPORTING FISCAL DEFICITS GOVERNMENT BONDS GOVERNMENT DEBT GOVERNMENT SPENDING HOUSING INCOME INFLATION INSURANCE LEGISLATION LEVIES LOCAL AUTHORITIES LOCAL GOVERNMENT LOCAL GOVERNMENTS LOCAL LEADERSHIP LOCAL LEVEL LOCAL TAXES MAYORS METROPOLITAN AREAS METROPOLITAN CITIES METROPOLITAN GOVERNMENT METROPOLITAN GOVERNMENTS MUNICIPAL MUNICIPAL ACCOUNTING MUNICIPAL BONDS MUNICIPAL FINANCE MUNICIPAL GOVERNMENT MUNICIPAL GOVERNMENTS MUNICIPAL INFRASTRUCTURE MUNICIPALITIES MUNICIPALITY NATIONAL GOVERNMENTS POLITICAL POWER PRIVATE SECTOR PROPERTY TAXES PROVINCES PROVINCIAL GOVERNMENT PROVINCIAL GOVERNMENTS PROVINCIAL SPENDING REGIONAL GOVERNMENTS REVENUE SOURCES SETTLEMENTS TRANSPORT URBAN AREAS URBAN GOVERNMENTS URBAN INFRASTRUCTURE URBAN SERVICES URBANIZATION USER CHARGES UTILITIES van Ryneveld, Philip Mobilizing Urban Infrastructure Finance within a Responsible Fiscal Framework : South African Case |
| relation |
Policy Research Working Paper; No. 4042 |
| description |
Since South Africa held its first democratic elections in 1994, it has given significant attention to building an effective system of decentralization including provincial and local government. While provincial governments are responsible mainly for the implementation of social services such as health and education, the provision of much of the urban infrastructure is the responsibility of local government. Although many challenges remain, the country has made significant progress over the past decade in addressing urban service backlogs in poor areas. At the same time, it has greatly improved macroeconomic fundamentals. The system of financing local government seeks to place accountability firmly at the local level, with most revenues in the larger urban centers raised locally through a combination of local taxes and fees for services, while poorer regions are predominantly grant funded. The objective has been to encourage the financing of capital infrastructure through local borrowing based on sustainable, transparent local finances rather than national repayment guarantees, which are outlawed. There is some indirect subsidization of loans through the state-owned Development Bank of Southern Africa. But the emphasis is on achieving redistribution through transparent, formula-based grants paid directly from national to local governments. While further bedding down of the system is needed, the approach is proving largely successful. The paper concludes by recommending that the existing division between provinces as providers of social services and local governments as the key locus of responsibility for services related to the built environment should be strengthened, particularly through the devolution of more urban transport related functions. A number of key risks are also highlighted, including issues related to the reform of local business taxes. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
van Ryneveld, Philip |
| author_facet |
van Ryneveld, Philip |
| author_sort |
van Ryneveld, Philip |
| title |
Mobilizing Urban Infrastructure Finance within a Responsible Fiscal Framework : South African Case |
| title_short |
Mobilizing Urban Infrastructure Finance within a Responsible Fiscal Framework : South African Case |
| title_full |
Mobilizing Urban Infrastructure Finance within a Responsible Fiscal Framework : South African Case |
| title_fullStr |
Mobilizing Urban Infrastructure Finance within a Responsible Fiscal Framework : South African Case |
| title_full_unstemmed |
Mobilizing Urban Infrastructure Finance within a Responsible Fiscal Framework : South African Case |
| title_sort |
mobilizing urban infrastructure finance within a responsible fiscal framework : south african case |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2006/11/7154598/mobilizing-urban-infrastructure-finance-within-responsible-fiscal-framework-south-african-case http://hdl.handle.net/10986/9027 |
| _version_ |
1764406607232368640 |