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  • Author: Brian Levy, Alan Hirsch, Vinothan Naidoo, Musa Nxele
  • Publication Date: 03-2021
  • Content Type: Working Paper
  • Institution: Carnegie Endowment for International Peace
  • Abstract: South Africa's economic and social imbalances can no longer be swept under the rug. The country has three choices: muddle through, endure another surge of ethnopopulism, or pursue inclusive development. South Africa was one of the 1990s iconic cases of democratization. Yet starting in the mid-2000s, the country began to experience a disruptive collision between its strong political institutions and massive economic inequality. The collision intensified across the 2010s, resulting in economic stagnation and increasing threats to institutional integrity. Understanding why this collision occurred and worsened over time is relevant not just for other middle-income countries but also many higher-income democracies wrestling with similar tensions between a declining tolerance for high or rising inequality and institutions that seemed strong in the past but find their legitimacy increasingly being questioned. Ideally, ideas, institutions, and growth all reinforce one another in a virtuous developmental spiral. Ideas offer hope by encouraging cooperation and the pursuit of opportunities for win-win gains. Institutions assure that the bargains underpinning cooperation will be monitored and enforced. Together, ideas and institutions provide credible commitment, which fuels economic growth. However, such a benign scenario does not reckon with the ways in which persistent high inequality, accompanied by unresolved tensions between the distribution of economic and political power, can both put pressure on institutions and quickly change hope into anger. The result can be a cascading set of pressures and an accelerating downward spiral. For the first fifteen years of democracy, South Africa enjoyed the advantages of both effective institutions and a shared willingness of stakeholders believed in the power of cooperation. This enabled the country to move beyond counterproductive conflict and pursue win-win outcomes. Growth began to accelerate, which created new opportunities for expanding the middle class. Increased fiscal space made it possible to broaden access to public services and to social grants, which reduced absolute poverty. There were, however, some stark limitations in what was achieved. Gains for the poorest did little to alter their difficult economic and social realities. Less than a quarter of the total population, including essentially all white South Africans, enjoyed a standard of living that was middle class or better. There was ample reason for the majority of South Africans to feel that, notwithstanding the promises of mutual benefit, the deck remained stacked against them. This increased the vulnerability of South Africa’s political settlement.
  • Topic: Development, Inequality, Institutions
  • Political Geography: South Africa, Africa
  • Author: Mikkel Funder, Holle Wlokas, Karen Holm Olsen
  • Publication Date: 03-2021
  • Content Type: Policy Brief
  • Institution: Danish Institute for International Studies
  • Abstract: Renewable energy is key to combatting climate change, but it is critical to ensure a just energy transition that benefits all. Denmark’s development cooperation supports the growth of large-scale renewable energy schemes in several countries, but what is good for recipient governments and Danish exports is not automatically good for the poor. In recent years large-scale wind- and solar schemes in developing countries have increasingly met with local resistance from communities who do not feel they benefit from such projects. How can Denmark help ensure that renewable energy projects contribute to community development in the areas where projects are situated? This policy brief provides lessons learnt and associated recommendations from one particular attempt to address this issue, namely South Africa’s efforts to incorporate community development as a criteria in the auction schemes through which renewable energy is procured. This policy is implemented through the nationwide REIPPP programme, which is among the few of its kind globally. While South Africa’s REIPPPP is not perfect and still developing, the programme does exemplify the basic principle that governments can build requirements for privately owned wind- and solar projects into procurement schemes. Requirements to finance community development, support Community Trusts, and allocate shares to communities are thus examples of approaches that could be developed and adapted elsewhere. In addition, the South African programme includes scoring and - performance criteria in the tendering and monitoring process that align with South Africa’s Black Economic Empowerment policy. The South African experience also, however, illustrates how public, private and community interests may differ in terms of what community development is and how it should be supported. This highlights the importance of developing democratic and inclusive structures for debating and decision-making on the use and allocation of benefits from large-scale renewable energy projects. Drawing on the lessons from South Africa and other similar schemes, the policy brief recommends that Danish development cooperation should: Support the incorporation of community benefits in regulatory frameworks for public procurement of private renewable energy generation Support development of practice frameworks for community engagement in the renewable energy sector Support community co-ownership of renewable energy generation and democratic governance of benefit sharing arrangements The policy brief is the result of collaborative research between DIIS, Stellenbosch University and the UNEP DTU Partnership. It forms part of the wider TENTRANS project, funded by the Ministry of Foreign Affairs of Denmark and administered by Danida Fellowship Centre.
  • Topic: Climate Change, Development, Environment, Poverty, Natural Resources, Inequality, Emerging States
  • Political Geography: Africa, South Africa
  • Publication Date: 09-2021
  • Content Type: Country Data and Maps
  • Institution: Economist Intelligence Unit
  • Abstract: No abstract is available.
  • Topic: Politics, Summary, Political structure
  • Political Geography: South Africa
  • Publication Date: 09-2021
  • Content Type: Country Data and Maps
  • Institution: Economist Intelligence Unit
  • Abstract: No abstract is available.
  • Topic: Economy, Outlook, Forecast, Overview
  • Political Geography: South Africa
  • Publication Date: 09-2021
  • Content Type: Country Data and Maps
  • Institution: Economist Intelligence Unit
  • Abstract: No abstract is available.
  • Topic: Economy, Economic structure, Charts and tables, Monthly trends charts
  • Political Geography: South Africa
  • Publication Date: 09-2021
  • Content Type: Country Data and Maps
  • Institution: Economist Intelligence Unit
  • Abstract: No abstract is available.
  • Topic: Summary, Economy, Background, Fact sheet
  • Political Geography: South Africa
  • Publication Date: 08-2021
  • Content Type: Country Data and Maps
  • Institution: Economist Intelligence Unit
  • Abstract: No abstract is available.
  • Topic: Summary, Economy, 5-year summary, Key indicators
  • Political Geography: South Africa
  • Publication Date: 09-2021
  • Content Type: Country Data and Maps
  • Institution: Economist Intelligence Unit
  • Abstract: No abstract is available.
  • Topic: Politics, Summary, Outlook, Briefing sheet
  • Political Geography: South Africa
  • Publication Date: 09-2021
  • Content Type: Country Data and Maps
  • Institution: Economist Intelligence Unit
  • Abstract: No abstract is available.
  • Topic: Summary, Basic Data, Economy, Background
  • Political Geography: South Africa
  • Publication Date: 09-2021
  • Content Type: Country Data and Maps
  • Institution: Economist Intelligence Unit
  • Abstract: No abstract is available.
  • Topic: Politics, Background, Forecast, Political and institutional effectiveness
  • Political Geography: South Africa