1. “The Developmental State in Africa (and Elsewhere): The Lessons for South Africa” Louis A. Picard University of Pittsburgh USA

2. SOURCE: Louis A. Picard The State of the State: Institutional Transformation, Capacity and Political Change in South Africa (Johannesburg: Wits University Press, 2005)

3. Next Two Books The State Transformed: Negotiations, Liberalism and Democracy in South Africa States within the State: Provinces, Local Government and Governance in South Africa Both Books to be Published by Wits University Press as part of the P&DM series on Governance.

4. Biography Louis A. Picard is Professor in the Division of International Development of the Graduate School of Public and International Affairs of the University of Pittsburgh in the USA and is Visiting Research Professor at the Graduate School of Public and Development Management (P&DM) of the University of Witwatersrand. He has studied African Politics since 1965 and has focused on the South African transition for more than twenty years. His other area of interest is Foreign Aid Policy.

5. GOVERNANCE AN OVERVIEW OF ISSUES

6. Research Themes 1. Institutional patterns of Democratic Governance 2. Decentralized Democratic Models 3. Foreign Aid and Technical Assistance 4. Organizational and Institutional Capacity

7. Book Focus: The Institutional State The institutional state can be defined as the set of structures and processes; including the public service, the nature of intra- governmental social relationships, and internal organizational dynamics; which—though it evolves over time—is a permanent part of the dynamics of government.

8. Governance: an Overview of Issues Basic Term: The Environment of Development Governance Manner in which the state is created, modified or overthrown Ways in Which Decisions are Made and Implemented Governance is a Process not a Structure

9. Tentative Universal Governance Functions 1. Governance- Legal, Expected Roles, Intra-state Relationships; 2. Governance and Markets- Debates about Command Economies 3. Governance and Social Service Delivery

10. Principles of Governance 1. Provision of Goods and Services (including law and security) 2. Difference between Provision and Production (Implications of Exchange Theory for Contracting) 3. Types of Goods

11. The Need for Implementation in Governance The Institutional State- Societal vs. Individual or group interests Structures and Processes of government beyond patronage and Crony Capitalism Made up of Human and Structural (Organizational) Dynamics Goal: Formal Rules, Common Values and Standard Modes of Behavior

12. Governance and Service Delivery Factors of Size, Difficulty and Normative Values- User Fees vs. Taxes and Cross- Subsidization Key Value: Public vs. Private- Basis of Human Judgment Goal: Matching Provision with Nature of Goods and Value Systems of Communities Debate: Contracting vs. Direct Delivery

13. Types of Democracy- Terms Direct Democracy- Actual direct participation of a population in decision-making about laws and regulations Town hall or village model Village meeting (Baraza or Kgotla) Use of Referendum and Recall

14. Types of Democracy: Terms Indirect Democracy-Representation Some form of representative democracy Hallmark of Modern Government Existence of various diverse interest associations and groups within society

15. Discussion One If a citizen asks “Is South Africa a ‘True’ Democracy?” how should one respond? How appropriate are South African governance institutions for development?

16. South Africa and Development FACTORS DETERMINING DEMOCRATIC GOVERNANCE

17. Factors Influencing Governance 1. Imperial Legacies 2. Political Culture, Social Values and Governance 3. Contemporary External Influences (Foreign Aid) 4. Informal and Parallel Functions of Governance

18. Factor 1: World Wide Legacy of Imperial Rule: A Mini-Comparison Land Based- Austria, Germany, Russia, Ottoman Empires Overseas- Britain, France, Spain, Portugal, Holland, etc. Western Hemisphere Dominance Japan vs. China

19. The Legacy of the Colonial State in Africa 1. Patron-Client State System and Corporate Group Interests 2. Unpredictable and “soft” but centralized system of governance 3. An administratively based local state which precludes local level decision-making (Prefect or Commissioner) 4. Authoritarian Control Mechanisms

20. Factor 2: Political Culture, Social Values and Governance Secular vs. Religious Tendencies “Ethnic” Values Nation-States vs. Dominant vs. Minority, Multiple Nation States, Spillover Nation States Nature of Democratic vs. Hierarchical Values Values, Ideology and State

21. Factor 3: External Assistance: Globalization Constraints Debates about Public vs. Private Sector (SAPS) Failure of Growth and Distribution (Limits of Economic Development) Merging of Governance and Security Focus “Soft” vs. “Hard” Donors Multi-lateral Regimes (World Bank System) Integration vs. Autonomous Development

22. Factor 4: Parallel Governance and Non-Formal Systems 1. Persistent- traditional, religious leadership 2. Adaptive- non-formal transportation systems 3. Reactive- Religious, ethnic networks 4. Intermediation- Civic Groups

23. Discussion Two DOES (OR CAN) FOREIGN AID PROMOTE DEVELOPMENT? Do Parallel Institutions contribute to Development?

24. South Africa THE STATE OF THE STATE

25. South Africa: 1994-2006 Three Tasks: Defined by SA Government The Development of a Non-racial state and public service The Development of a balance between the private and public sector that could meet the country’s overwhelming social needs The Creation of a Policy Making process that could plan, coordinate and manage economic development

26. The Problem The Poor Record of Development State Efforts in much of Africa The Nature of Global Political Economy Debates About Service Delivery and Transformation The Future of the Developmental State?

27. The South African Legacy 1.Historical Debates- Charterism and Non- Racialism 2. Legacy of Negotiations- Job Guarantees and Provincial Capacity 3. Civil Service Reform- Limits of Reorganization

28. Measuring Capacity in South Africa 1. The Priority Given to Human Resource Development? 2. The Impact of Corruption and Patronage 3. To Reform or Not to Reform Higher Education 4. Salaries, Group Interests and Privileges

29. The Dilemmas of Human Resource Development (HRD) and Service Delivery 1. Training and Education 2. Short Term vs. Long Term Investment 3. Bounded Knowledge and Bridging Training 4. Generic vs. Value Based Skills Development

30. Mpumalanga “The State of the Province?”

31. Governance Issues Focus on Provincial and Local Government  The Role of Intermediate Government  Local Government: Primary unit of government that has both political leadership and bureaucratic structures

32. Historical Legacy 1. “Homeland” administrations and the Eastern Transvaal administration; 2. Vested Interests During the Apartheid Period 3. Capacity Limitations and the State of the Province? 4. Debates about Provincial and Local Government

33. Decentralization and Governance 1. Administrative- Delegated, Deconcentrated Capacity 2. Fiscal- Extent of Collection and Expenditure of Local Revenue 3. Political- Bottom up- (Primary but not exclusive Focus) 4. Parallel vs. “Layer Cake” Decentralization

34. South Africa and Decentralized Governance 1. Centralized vs. Devolved Capacity 2. The Role of Provincial Governments 3. Urban vs. Rural Local Government 4. Metropolitan Regions vs. District Councils 5. Successes and Failures in Sub-National Governance

35. Discussion Three Assessment of the State of the State, the Province and the Southern African Region

36. Discussion Questions 1. Affirmative Action: Should focus be on Education vs. Employment in terms of Human Resource Development (HRD) - Trade Off: Capacity to Deliver Services 2. Governance: Should the focus be on Decentralization vs. Central Control 3. Development: Should focus be on State development vs. Market Development 4. Beyond Affirmative Action: The Use of Consultants and Contracting Out

37. State of the Province GENERAL DISCUSSION