PRICE DISTORTIONS IN THE SOUTH AFRICAN MAIZE ECONOMY: A COMPARATIVE POLITICAL ANALYSIS

Abstract

The effects of government intervention in the South African Maize Industry are evaluated using a partial equilibrium framework. Large monetary transfers have resulted from government policy with a bias towards more powerful producer interest groups. Transfers significantly exceed the welfare gains to producers. However, the per capita gain for producers is greater than the per capita loss for consumers creating an incentive for producers to continue lobbying for the current South African maize policy. Intervention results from market failure followed by political failure where interest groups manipulate government for their own benefit. As long as vested interests remain, policy reform seems remote. A new political dispensation may shift vested interests towards consumers away from producers. Policy reform is discussed along with conditions to facilitate this process of reform.

Uittrcksel

Die gevolge van staatsinmenging in die Suid-Afrikaanse mieliebedryf word met behulp van parsiële ewewigsanalise geevalueer. Groot monetêre oordragte is die gevolg van regeringsbeleid wat ten gunste van produsente belangegroepe gelaai is. Oordragte is beduidend hoër as welfaartsverliese. Welfaartsverliese vir verbruikers is aansienlik hoër as welfaartswinste vir produsente; maar die per kapita wins vir produsente is groter as die per kapita verlies vir verbruikers, wat produsente dus aanspoor om voort te gaan met steunwerwing vir die huidige mieliebeleid. Ander belange groepe (soos verskaffers van insette) trek ook voordeel uit die huidige beleid. Inmenging is die gevolg van markmislukking gevolg deur mislukking binne die politieke proses aangesien belangegroepe die regering tot hulle eie voordeel manipuleer. So lank as wat gevestigde belange voortduur, is politieke/beleid hervorming buite bereik. 'n Nuwe politieke bedeling mag gevestigde belange in die rigting van verbruikers laat beweeg en weg van produsente. Hervorming binne die politieke/beleid proses word bespreek, asook toestande wat hierdie proses sal bevorder.