A Note on State Capacity Building for Economic Growth in South Africa

Abstract

Economic growth represents an essential prerequisite for political stability in South Africa, but to date official efforts aimed at stimulating growth rates have been hampered by a lack of administrative capacity on the part of the South African state. It is now widely recognised that an “enabling state” can play a decisive role in economic development. But the recent Ncholo and Maphai reports and much anecdotal evidence have highlighted a severe degree of state incapacity in South African public administration. We argue that since in the short run administrative capacity represents the dominant constraint on policymaking in contemporary South Africa, government intervention should be restricted to vital core functions. However, resources should be devoted to capacity building in the medium term.