Government expenditure in the independent and self‐governing national states of Southern Africa: An evaluation

Abstract

Various commentators recently drew attention to the expenditure and financing of the independent and self‐governing national states in Southern Africa. The inference has been drawn that this expenditure appears wasteful and ineffective and constitutes little more than a costly political luxury.

This article makes an attempt at evaluating government expenditure in the national states in terms of the type and level of expenditure, its benefit incidence, as well as its efficiency.

Expenditure of the governments of the national states is largely on collective or social goods and services and therefore of the type widely expected to be provided by governments. Since the benefit incidence of this expenditure is not confined within the borders of the national states, but spills over into South Africa, government expenditure by these states benefits the common integrated economic system of Southern Africa.

With regard to the levels of expenditure, indications are that expenditure in many instances is too low. Increased expenditure in some categories might well show significantly increasing returns.

Notes

Research and Strategic Planning Division. Development Bank of Southern Africa.

Mr J M Pieterse is thanked for assistance in the compilation of the tables and for contributing various helpful suggestions during the initial preparation of this article. Invaluable comments on the first draft, made by Dr S S Brand, Mr Rob‐bert van der Kooy and Dr F J van Eeden, are hereby gratefully acknowledged.