The ongoing debate about the tolling of Gauteng’s intra-provincial highways has highlighted the urgent need for South Africa to invest in its public transportation system, Nobel-winning economist Professor Joseph Stiglitz argues.

The Columbia University professor, who is in South Africa to participate in a conference organised by the Economic Development Department, says there is “no excuse” for the country not to have a fully functioning public transport system.

Financing such public transport infrastructure, he acknowledges, will always entail a “difficult balance”, as not charging a user that can pay locks up resources that could be used elsewhere.

By contrast, where such charges are imposed on those that cannot afford them, it could result in economic exclusion.

The solution “almost inevitably” lies in an “imperfect” compromise.

The “calculus” policymakers use to weigh the specifics of such a compromise should work out whether those being tolled are in a position to afford to pay for the infrastructure.

“If it turns out that 99% of the people who would benefit from the free toll are, in fact, people who are high income, then most of the benefits of not tolling go to people who could be making a contribution towards helping to pay for the infrastructure.”

Should most of the people turn out to be in the low-income category, however, such a system will involve a high cost not only for those individuals, but on the economy as a whole, as it will undermine efficiencies by preventing people from accessing workplaces.

Regardless of the outcome of such an assessment, efforts should still be made to protect low-income people needing to use the transport network.