The Future of the South African Political Economy Post-COVID 19 (International Political Economy Series)

✍ Scribed by Mzukisi Qobo (editor), Mills Soko (editor), Nomfundo Xenia Ngwenya (editor)

• Publisher: Palgrave Macmillan
• Year: 2022
• Tongue: English
• Leaves: 388
• Category: Library

✦ Synopsis

This book examines the COVID-19 pandemic through socioeconomic lens that draw on history, approaches to state-market relations, and public policy perspectives In 2020, the world experienced the worst pandemic since the outbreak of the Spanish Flu of 1918, which continues to have far[1]reaching implications for the global economy and triggered macro-economic dislocations that severely affected the most vulnerable countries and segments of society. This book was conceived as a response to the disruptive shifts induced by the pandemic, with a particular focus on South Africa. International experience has shown that countries and societies that have gone through tough economic times, either as a consequence of wars or economic depressions, have responded to crises by enacting unpopular policy measures based on difficult tradeoffs, which often made way for innovation. The authors outline policy responses to the COVID-19 crisis and propose several interventions to mitigate its effects. These include developing innovative approaches to fiscal and monetary policies, labour market policies, industrial policies, as well as social policies. Building state capabilities, improving the governance and performance of state institutions, and managing digital change are some of the clear policy interventions that are laid out in this book.

✦ Table of Contents

Acknowledgments
Contents
Notes on Contributors
List of Figures
List of Tables
1 Introduction: Responding to Pandemics and Economic Challenges: Policy Choices Post Covid-19
2 Reconstruction in the Aftermath of Global Health and Economic Crises: Historical Lessons for South Africa
Introduction
The Spanish flu (1918–1920) and South Africa
Severe Acute Respiratory Syndrome—SARS (2002–2004)
Economic Crises
The Great Depression of 1929
Effects
State Policy Responses
South Africa and the Great Depression
The 2008/2009 Great Recession
Effects
State Responses
Effects of Interventions
South Africa and the Two Crises: The Great Recession and the COVID-19 Pandemic
Lessons for South Africa
Health Crises
Economic Crises
Conclusion
References
3 Building State Capacities and Dynamic Capabilities to Drive Social and Economic Development: The Case of South Africa
Introduction
The Conceptual Lens: Long-Term Capacities, Dynamic Capabilities, Innovation, and Developmental Missions
Importance of Public Value
Public Sector Capacities and Capabilities in South Africa: Diagnosing the Challenges and Opportunities
State Capabilities and State-Owned Enterprises
Importance of Institutional Quality and State Capabilities
Weak Institutional Capabilities at the Local Government Level
Using the District Development Model to Promote Public–Private Partnerships
Digital Transformation as Mission-Critical Outcome
Conclusions and Recommendations
References
4 COVID-19 and Beyond: Rethinking Industrial and Competition Policy
Introduction
Industrial Policy—Principles, Experiences, and Outstanding Issues
Learning from the History of Late Industrialization
Outstanding Issues and Challenges for Industrial Policy
The South African Approach to Competition and the Need to Rethink It
An Industrial Policy/Competition Policy Nexus in South Africa?
Discussion
Conclusion
References
5 Monetary and Fiscal Policy Challenges Posed by South Africa’s Deepening Economic Crisis and the COVID-19 Pandemic
Introduction
What Does a Flat Phillips Curve Mean for Monetary and Fiscal Policy Co-ordination?
Why is Low and Stable Inflation Important for the Co-ordination of Monetary and Fiscal Policy?
Childcare and Unemployment Income Grants
Conventional Monetary Policy and Financial Regulation Interventions
Bond Purchases by the South African Reserve Bank
The Loan Guarantee Scheme by the National Treasury, SARB, and the Banking Association
Other Central Bank Balance Sheet Tools that the SARB Can Use to Propagate the Effects the Effects of Conventional Monetary Policy, Macro-Prudential and Financial Regulatory Tools
The Accumulation of Foreign Currency Reserves
Open Market Operations in the Form of Repurchase Agreements
How Do We Deal with Excess Reserves Generated in the Process of Large-Scale Asset Purchases and Forex Reserves Accumulation?
How Do We Raise Output Growth Over the Medium and Long-Run and Close the Revenue and Expenditure Divergence?
The Role of Accelerated Land Reform, Redistribution and an Increase in Hectares Planted in Increasing Potential and Actual Output
The Mining Sector and Minerals Beneficiation as an Approach to Raise Potential and Actual Output
The Manufacturing Sector as a Driver of Output and Employment Growth
Conclusion
References
6 The Short-Term Labor Market Effects of South Africa’s National COVID-19 Lockdown
Introduction
Results
Aggregate Shifts in Key Labor Market Indicators
Variation in Labor Market Outcomes Within and Between Groups
Multivariate Analysis: Estimating the Probabilities of Transitions in Labor Market States
Conclusion
References
7 Social Security and Social Protection in South Africa
Introduction
What Has the COVID-19 Pandemic Revealed?
Definition of Social Security and Social Protection
The Bill of Rights and Its Implications
Progressive Realization Versus Immediate Availability
Adequacy of Social Security in South Africa
Inequality and Redistribution
Gaps in Protection
Overview
Formal and Informal Social Protection
Protection of Households and Children
Unemployment
Old Age, Death, and Disability
Institutional Gaps
Recommendations
Conclusion
References
8 Repositioning State-Owned Enterprises (SOEs) and Development Finance Institutions (DFIs)
Introduction
Assessing the State of SOEs and DFIS
An Overview of SOEs
The PRC Assessment
The NPC Assessment
An Overview of DFIs
A Sample of DFIs: Profiles, Mandates, and Scope
Assessing DFIs’ Roles and Functions
The Comparative Experience: What Can SA Learn?
The SOE Dimension
The Problem of Models
The Problem of Sectors
The DFI Dimension
Governance of SOEs, DFIs, and the Private Sector: Toward a PPP Framework
Two Perspectives: The ANC and B4SA
PPP Quality and Performance: Principles and Practice
OECD Principles for PPPs
Policy Recommendations
Recommendation: Cluster One
Recommendation: Cluster Two
Conclusion
References
9 Energy Transition for Post-COVID-19 South Africa
Introduction
The Importance of Electricity to the South African Economy
Consequences of Unreliable Electricity Supply
Environmental Requirements and Technological Changes Taking Place in the Electricity Sector
The Growing Tide of Renewable Energy Technologies
Key Macroeconomic Considerations as the Country Makes Its Energy Transitions
Socioeconomic Benefits to be Derived from the Energy Transition
The Fiscus
Municipalities and Energy Transition
Regional Energy Dynamics and Opportunities
Conclusion and Policy Recommendations
References
10 Future of Energy in South Africa and Prospects for Building Regional Value Chains
Introduction
An Examination of South Africa’s Energy Sector
Drivers and Opportunities for Renewable Energy Deployment in South Africa
Challenges Facing Renewable Energy Deployment in South Africa
Strategies and Policies for Renewable Energy Deployment in South Africa
Policy Proposals for Renewable Energy in South Africa
Fixing Energy Prices and Targets
Policy Scenarios
Option 1: Electricity Feed-In Tariffs (FIT)
Option 2: Renewable Electricity Portfolio Standards
Option 3: Renewables Obligation
Comparing Policy Options
Creation of Regional Energy Value Chains as a Strategy for Renewable Energy Development
Steps and Measures to Be Considered by South Africa for Green Coal Policies
The Role of Gas in Renewable Energy Transition
Experiences in Transiting to Renewable Energy
Conclusion
References
11 The Digital Divide in South Africa: Insights from the COVID-19 Experience and Beyond
Introduction
COVID-19 and Lessons on the Need for Digitalization in South Africa
Business and Digitalization
The Education Sector and Digitalization
Digitalization in South Africa—Recent Progress
Internet Penetration in South Africa—Access and Use
Spatial Inequalities and Internet Penetration Rate
Growth in Smartphone and LTE Devices
Access vs Usage
Internet Users’ Profile in South Africa
Key Drivers of Inclusive Uptake of Digital Services in South Africa
Affordability
Digital Literacy
Fit for Purpose Content
Actions for Inclusive Digitalization
Pricing and Tax Policies for Inclusive Digital Transformation
Digital Taxation
Innovative Interventions
Spectrum That Can Enable New Business Models
Conclusion
References
12 From “Crisis Compacting” to Resilient Social Contracts: Emerging Lessons from COVID-19
Introduction: COVID-19, Building Back Better, and Resilient Social Contracts
Drivers of Resilient Social Contracts and Effective COVID-19 Response
Forging Resilient Social Contracts
COVID-19 Response and Success—What Are We Learning?
Lessons and Insights for Strengthening Social Contracts in Times of Crisis
Three Synthesis-Framing Priorities
Place Social Cohesion at the Center of Policy Design and Implementation
Conclusion: Implications for South Africa
References
13 Conclusion: Building a Resilient State and Inclusive Society
Bibliography
Index