Critically exploring the link between privatization and institutional capacity at the local government level in South Africa

Date
2024
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Abstract
This study aims to critically explore the link between privatization and institutional capacity at the local government level in South Africa. The study is presented in a user-friendly manner for a wider readership. The central themes explored by the study are local municipalities and privatization. A discussion of the central themes of this paper evolves in the following way. Firstly, the paper outlines the nature of local government in South Africa dating back from the apartheid epoch to the inception of democracy in 1994. It reflects on the local government sphere which is a collective of local municipalities, analysing the nature and structure of this sphere. In its expedition, it particularly focuses on a Category B municipality from Queenstown Eastern Cape. Surveying the outplay in the link between privatization and the institutional capacity in this municipality through the contracting-out of services, particularly water privatization in that municipality. The reflection on local government is succeeded by the scrutiny of the privatization theoretical framework. The study assesses the root nature of privatization. It investigates its emergence from a global frame of thought, how it has evolved through neoliberalism, and ended up superseding other macro-economic frameworks and being a central policy of governance linked to the institution's capacity. The study further looks at the different frameworks provided by the government to enhance institutional capacity at the local government level, together with the methods and theories that characterize privatization, and the outcomes that underpin it. The scrutiny of the above central themes leads to a broad analysis of case studies from a global realm, regional arena, and local arena. The study utilized both qualitative and quantitative research methods to gather data for the study to complement the former methods the study used an exploratory research design as it was broadly exploring the link between privatization and institutional capacity. It further used semi-structured interviews to substantiate the theoretical findings. Throughout the paper, explicit examples are provided to substantiate all arguments raised.
Description
A research report submitted in partial fulfilment of the requirements for the degree Master of Urban Studies to the Faculty of Engineering and the Built Environment, School of Architecture and Planning, University of the Witwatersrand, Johannesburg, 2023
Keywords
Public-private partnerships, Local government, Privatization, Local municipalities
Citation