Applying spending review theory to developing countries: The case of South Africa

Abstract

ABSTRACT The seminal spending review (SR) theoretical framework by Catalano & Erbacci [2018. A theoretical framework for spending review policies at a time of widespread recession. OECD Journal on Budgeting 17(2), 9–24] draws on the cutback management and related academic literature to articulate the first theory for explaining the ability of medium-term SRs conducted after the global financial crisis of 2008 to effect targeted savings. This literature is however dominated by advanced economies with sophisticated public financial management systems. Comparatively little attention, however, has been paid to theoretical perspectives on developing countries, like South Africa. This article applies this theoretical framework by Catalano and Erbacci to the South African SR initiative in order to interrogate its theoretical and empirical relevance. Proposals are made for enhancing the operationalisation of the organisational and process dimensions of C&E’s theoretical framework to lay a foundation for future empirical research and its policy implications for South Africans SRs are explored.