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Puad Assignment

The document discusses various economic systems including capitalism, socialism, welfare state, developmental state, and laissez-faire, highlighting their key features, goals, and examples. It also outlines the roles and responsibilities of different government spheres in South Africa, particularly in addressing issues like the misuse of state funds. Additionally, it emphasizes the importance of local government in providing democratic governance and essential services to communities.

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0% found this document useful (0 votes)
18 views4 pages

Puad Assignment

The document discusses various economic systems including capitalism, socialism, welfare state, developmental state, and laissez-faire, highlighting their key features, goals, and examples. It also outlines the roles and responsibilities of different government spheres in South Africa, particularly in addressing issues like the misuse of state funds. Additionally, it emphasizes the importance of local government in providing democratic governance and essential services to communities.

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lungisamdladla
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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task Assignment 1

module PUAD5121/ Public administration 1

Student number ST10746392

Name Lungisa Mdladla

Lecture name Mr. Rabuthata


1. Capitalism is an economic system with the economic ideology which private individuals or
businesses own capital goods. These businesses are based on supply and demand. Within
capitalism owners own employees who they pay wages based on their work that they have
done that contribute to the growth and functioning of the business. Its goals are Key
features of capitalism are private ownership,” the fact of being owned by a private individual
or organization, rather than by the state or a public body” (Publishers, n.d.) and a free-
market, this is based on demand and supply but operates with no interface from the
government. An example of capitalism real estate investment, it is possible to invest in real
estate as capitalism encourages buying, owning and selling land for their own use with out
any limit which can have a positive benefit on the economy regarding improvement of
standard of living and creation of wealth. However, this can cause issues as if the prices for
land is to high for those who need land to build homes it can be disadvantageous to the
economy as this will leave people with no homes as the government has limited to no
control of the pricing of land which Capitalism is not a suitable economic system for south
Africa.
Socialism is an economic system is where a system where the means of productions are
owned and regulated by the community or the state, rather than by private individuals or
corporations. Its goal focus on promoting social equality and reducing the disparities in
wealth and income. The key features of socialism focus on collective ownership, this is
where all the people in a state share the ownership equally amongst themselves, economic
planning, “the process by which key economic decisions are made or influenced by central
governments” (Hackett , et al., n.d.) and social welfare. An example of socialism is Cuba’s
government. It can be categorized as a socialist economy as majority of the means of
production are owned by the government.
The Welfare State is an economic system which provides a range of social services and
benefits aimed at ensuring that all individuals have access to basic necessaries and a
minimum standard of living. Its goals focus on reducing poverty, inequality and social
hardship and satisfy net for those who can’t support themselves. Its key features are social
insurance programs, economic security, poverty alleviation and progressive taxation.
According to Britannica, “It is based on the principles of equality of opportunity, equitable
distribution of wealth, and public responsibility for those unable to avail themselves of the
minimal provisions for a good life.” An example of a Welfare State is Sweden, it’s a state
with has been label with a system called the “Swedish-model”. This policy regime has
features such as large and active state with is involved with the market economy and
distributes the wealth and income at a social desired level, there is large taxation and social
security which sustain large-scale income transfer and significant public transfers and
extensive public involvement mainly in health care and education.
The Developmental state is an economic system which where the Government plays a
strong and active role in driving economic development and industrialization. Its prioritizes
long-term economic growth through investment, infrastructure development. Its goals focus
on balancing economic growth and social development. “It uses state resources and state
influence to attack poverty and expand economic opportunities.” (development, n.d.). Its
key features involve strong bureaucratic capacity, strong government intervention and
partnership with private sector. A developmental state is largely involved in the macro and
micro planning in a state. An example of a developmental state is Japan. Japan oversees and
guides economic development. According to Aki Tonami “Japan retains the institutions
deemed necessary to enhance the cooperative behaviour of the bureaucracy, businesses
and politicians, and norms about what is important in order for an interventionist state to
implement policies aimed at achieving economic development and the autonomy of the
state.” (Tonami, 2018)
laissez-faire is an economic system which focuses on little to no involvement intervention in
economy from the government, a free-market capitalism that oppose government
involvement. Here we see the encouragement of self-responsibility and innovation and the
promotion of free markets and competition. Its key features are accountability, freedom of
choice, no taxes and Limited Bureaucracy. According to writer GoCardless, “Free trade gives
countries the chance to mutually benefit from transactions It cuts down on inefficient
government bureaucracy.” (GoCardless, 2021). Laissez-faire capitalism creates incentives for
entrepreneurs to work harder and be more productive An example of this is tax cuts this is
done by a government in hope that more money will be market through encouraged
spending. This can be categorized as removing regulations or taxes in order to stimulate the
market which is prominent feature of the laissez-faire system.

2. within a government there a 3 three spheres: national, provincial and the local spheres.
There’s sphere enable a government to keep law and order and provide public services. The
national sphere according to the Western Cape Government focuses on, “Makes laws and
sets policies for the country and provides services which fall under national competencies”.
Considering the issue from the scenario of the misuse of state funds allocated for
infrastructure projects the national sphere of government would respond to these in the
following ways: under the legislative function within the national government one must
understand that this consists of the constitution court and the way they would handle this is
by reviewing the constitution in order to compare the wrong doings of the Senior Governor
within the Department of Public Works to their rights and responsibilities as a government
official . This would be done in order to get an understanding of which laws have been
violated in order to be able to proceed with the case. This is done to protect the senior
governor’s rights and the citizens’ rights while still ensure consequences are faced and the
issue is resolved. Within the national sphere the public protector and auditor general may
also investigate the wrong to doings to get future detail on the extent of the issue. The
Provincial sphere corresponds with the constitution and works simultaneously with the
national sphere over various departments and issues. When dealing with issue of the misuse
of funds by the senior governor the provincial sphere may deal with this issue by conducting
investigation and public hearings as one of their responsibilities is ensure accountability of
provincial executive organs once investigation and the public hearing have been completer
their can be vote of no confidence among the members of the provincial spheres and if
there is a two-thirds majority vote legal action can be taken or there matter can be directed
to the national legislature as the national legislature always comes above the provincial
legislature. The local sphere of government focuses on the local needs and essential
services.

3. According to the Parliament of the Republic of South Africa, “The NCOP also plays a unique
role in the promotion of the principles of Cooperative Government and Intergovernmental
Relations. It ensures that the three spheres of government work together in performing
their unique functions in terms of the Constitution and that in doing so, they do not
encroach in each other’s area of competence.” (Africa, n.d.) The NCOP consists of 90
provincial delegates, this ensures that there are 10 delegates representing each the the 9
provinces in the country. The 10 delegate from each province consists of six permeant
delegates, appointed by the nine provincial legislatures and four special delegates, the
premier of the province and 3 others assigned from members of the provincial legislature.
The Premier of a province is the head of their province’s delegation and can select any other
delegate within their province to lead the delegation in their absence. The Local government
is represented through the South African Local Government Association (SALGA), which is
entitled to 10 representatives who may participate in the debates and other activities of the
NCOP. However, they are not able to vote.
The NCOPs function is to make laws and the able to pass, reject and propose legislation, to
name a few. For example, Ordinary Bills that do not affect the provinces (Section 75 Bills), An
ordinary Bill that does not affect the provinces can only be introduced in the National
Assembly (NA). Once it has been passed by the NA, it must be sent to the National Council of
Provinces (NCOP). In this case, delegates in the NCOP vote individually and the Bill must be
passed by a majority of delegates present. If the NCOP rejects a Bill or proposes its own
amendments, the Bill is returned to the NA which will pass the Bill with or without taking
into account the NCOP amendments or it may decide not to proceed with the Bill. The
NCOP's role in Bills that do not affect the provinces is therefore a limited one. It can delay a
Section 75 Bill, but it cannot prevent it from being passed. (Group, n.d.)
Due to the fact that the NCOP consists of members from the Local and Provincial
government this can ensure that these spheres of government are represented as the
interest of these sphere can be considering within the national legislature. According to
Interim Report Speeding Transformation: NCOP’s Role in the Oversight Process, “…, in
drawing provincial and local government together in a single forum, the NCOP permits
sharing of experience and ideas among provinces and local government. Oversight can help
identify common problems and best practices, thus strengthening the capacity of every level
of government to deliver.” (Murray, et al., n.d.)

4. Section 152 of The South African Constitution outlines the objective of The Local
Government. Each of these objective contribute to promoting democratic governance and
fostering development. 1. to provide democratic and accountable government for local
communities, because the local government are responsible for the needs of the
communicates they work under, they need to ensure that the communities are provided
with basic needs such as water and a healthy environment, involve community residents in
decision making and improve the quality of life of residents through promoting economic
opportunities. They need to always act accountably to ensure all their responsibilities are
performed. If they fail to do so this can negatively affect the communities as their needs
won’t be meet or changes that can improve their quality of life may not be processed
through legislature, causing the hider of development. 2. to ensure the provision of services
to communities in a sustainable manner

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