Die ekonomiese beginsel in owerheidsdesentralisasie

• Published: 2014
• Subjects: Decentralization in government - South Africa; Decentralization in management - South Africa
• Online Access: http://hdl.handle.net/10210/9742

M.Com. (Economics) === The purpose of this study is to investigate the economic principles underlying the decentralization of government to local level in a market oriented economic system. In the provision of public goods there is no freedom of choice, decisions being made by a few individuals. This contrasts with the operation of the free market mechanism in which millions of subjects make personal and independent decisions about millions of objects. However, through the decentralization of government, an effort is being made to involve more subjects in the making of collective decisions through representatives at all levels of government. In South Africa, the problem has a further dimension in that not all population groups have so far participated fully in the democratic and free market economy. The new constitutional dispensation provides for a broadening of democracy, in that non-white population groups are now more and more represented at central, provincial and local government level. The role to be played in this regard by municipalities is examined, in order to highlight the economic principles underlying the decentralization of decision- making. The focal point of the study is the way in which decentralization of decisionmaking, by which government is extended to the inhabitants, is being manifested at municipal level. The topics dealt with in this study are: - the role of government in a market economic system; - the financing of municipalities; - the establishment of local authorities; - the development of infra-structures; - development strategies; - the pursuit and growth of economic principles in a new dispensation. Municipalities have an essential function to perform in the provision of public goods and in serving as the bearers of democracy. Municipalities can make a meaningful contribution to the development of a country and its inhabitants and to the realization of the benefits of the decentralization of decision-making, in step with the economic principles underlying it.