Contents
Foreword
Introduction.
Call to all local government stakeholders

1. Vision of local government.
2. The International Context
3. Local government SWOT analysis
4. The Constitution and local government
5. Governance and participatory local government
6. The role of local government: what should a municipality do?
7. A new system for local government
8. Municipal elections
9. Municipal administration and human resource management
10. Building a viable sphere of government
Glossary

Note: Words which have a mark like this * next to them the first time they are used are explained in the Glossary at the back of this book.

Foreword

The publication of this booklet marks the launch of substantive debate and discussion on a new policy for local government in South Africa.

Local Government in South Africa is in the middle of its three phase transition from apartheid local government to truly democratic local government. At present, local government is still in the interim phase as negotiated at the World Trade Centre and determined by the Local Government Transition Act. The elections which took place in November 1, 1995 and July 1996, marked the end of the interim phase. Transitional municipal councils will remain in place until 1999, the end of the interim phase. The interim phase will be used to prepare for the final or permanent phase of local government. Writing a White Paper is part of this process of preparation for the final phase.

As has been stated, a great deal of policy work has been done, but it was mostly aimed at principles of deracialising local government and establishing democratic and non-racial authorities. It is now time to start being more creative and looking at the wider spectrum of matters facing local government. There is thus a crucial need for a White Paper on local government to deal with several key policy issues, but also to spell out a vision for a new system of local government. This process of drafting a White Paper on local government could almost be seen as drafting a "Constitution" for local government if one considers the importance of this sphere of government.

The White Paper on local government is of vital importance precisely because of the crucial role local government is, and will be playing in the political, social, economic and socio-economic spheres of South African life. To ensure that this process is as inclusive as possible, I have appointed a committee of Political Advisors, known as the White Paper Political Committee (WPPC) and chaired by Mr Pravin Gordhan. The WPPC is supported by a technical drafting team known as the White Paper Working Committee. Together these two committees will ensure that a White Paper is drafted that will suit the needs of all South African with regards to local government matters.

The White Paper will lay the building foundations for a new and final system of local government in South Africa and it is my hope that all local government stakeholders will participate fully in this process.

Minister Moosa, Minister of Provincial Affairs and Constitutional Development

Introduction

by Mr Pravin Gordhan, Chair of the White Paper Political Committee

South Africa's local government system has been undergoing transformation for the past 3 years. The new Constitution of South Africa and the principles, values and developmental goals contained in it, require a new policy to be formulated for local government for the next century.

The White Paper Political Committee has developed a 3-stage process which will ensure that all organisations which have an interest in local government n will have an opportunity to interact with and help to develop the new policy.

But why do we need a new policy?

For the first time in our history, in 1995/6 all South Africans over the age f 18 had the opportunity to vote for a municipal council of their choice in democratic elections. However, the municipal councils which were elected then are transitional structures. In many cases, particularly in the rural areas, structures were established (for example, Transitional Representative Councils) only for election purposes. The transitional phase ends when fin legislation regarding; local government is enacted. The White Paper must provide the policies which will determine the way municipalities function after 1999, when the next local elections are held.

During the past three years, many municipalities have experienced different types of problems and difficulties. They have generally lacked access to th required administrative, financial and technical capacity to function efficiently and effectively. This is a problem affecting particularly the rural areas. These municipalities are not capable of effectively governing their communities, or providing the kind of basic services that we expect from local government. For local government as a whole to play its role in the war against poverty, we require a critical examination and fundamental transformation of the system.

The Constitution out-lines the kind of local government that we ideally want. This however is only a very broad outline. The policy details will have to e filled in by the White Paper and legislation based on the White Paper. For example, the Constitution raises the status of local government - local government is now a fully-fledged sphere* of government, alongside national and provincial government. The White Paper needs to spell out, I detail, what this means for local government. Also, the Constitution demands that government as a whole (national, provincial and local) improve intergovernmental coordination and cooperation to ensure integrated development* across the nation. The White Paper needs to spell out what this "co-operative governance*" means.

The White Paper process has 3 phases:

Phase 1: This Discussion Document

This Discussion Document provides an overview of the major issues on which policy is required. The aim is to generate critical discussion and to find possible solutions to our challenges among all stakeholders on our current local government reality.

Phase 2: A Green Paper

The feedback and ideas from the above discussion, together with extensive research into international and South African experience of local government will be taken into account in formulating a Green Paper. The Green Paper will examine the issues in more detail and will provide possible policy options. There will be further discussions around the Green Paper as well as a Parliamentary hearing.

Phase 3: The White Paper

The Minister will then publish a White Paper This will be submitted for Cabinet approval. Further debate will then take place through Parliamentary public hearings. The completed White Paper will provide the policy framework* for local government after 1999.

In this book - "Towards a White paper on Local Government in South Africa" - we will look at the most important issues and questions affecting local government. Key local government stakeholders are asked to discuss these issues and to contribute their ideas and opinions and experiences. We can be guided in this task by

• the Constitution, which contains provisions dealing specifically with local government
• the experience we have gained in local government since the 1995/6 elections
• international experience of local government, particularly in the developing world.

Your contributions to addressing these issues will go a long way to creating the kind of democratic, developmental, efficient, effective and sustainable* local government that our new democratic nation needs.

I want, in conclusion, to gracefully acknowledge the magnificent hard work and contribution of all the members of the White Paper Political and Working Committees.

1. Vision of local government

Introduction

What sort of local government do we want?

• The White Paper must decide our vision - or dream - of what we want local government to be in future, put into words. Once we have stated our vision, every policy and programme in the White Paper must support this vision.
• The White Paper must choose policies and programmes that will help the vision come true. It is therefore important to make your suggestions and comments on what these policies and programmes should be. This will also help to develop the final Vision Statement.
• On the following we present elements towards a vision statement. These elements must be discussed and looked at critically. Please consider and respond to them with special care.

2 The International Context

Introduction

South Africa can learn much from overseas experience of local government both what to do and what not to do. In this chapter we look at some of the more important international trends in local government - more of these trends will come to light as we continue with our research. We need to consider these trends in the light of our own experience, conditions and needs.

2.1
From 'government' to 'governance*'
Throughout the world, municipalities have come to appreciate that the relation between government and those who are governed is as important as government itself. This is what is meant when people speak of the shift from government to governance. Governance is a way of governing. It takes the views and interests of those affected by government more seriously than in the past. The "governed" refers to the community at large. This includes individuals, community organisations and businesses, trade unions and NGOs. Municipalities have realised that they need to involve the community and all its constituent parts in the functioning of government. Relationships, partnerships and alliances have therefore become much more important for local government than in the past.

2.2
More power and functions transferred from national and provincial government to municipalities World-wide experience shows that where municipalities are empowered with real authority and functions through constitutional or legislative means, they are better able to cope even under difficult circumstances. They may need support from other spheres of government, but it is clear that with less regulation and control from "above", municipalities - and the communities they serve - can become more innovative, creative and responsible.

2.3
Municipalities are thinking globally and acting local Today more than ever before, investment money is able to move freely around the world. International and domestic investors look not only at conditions in a particular country - they also look for the right investment conditions in a local area like a town or city. They look at such things as infrastructure (roads, telecommunications, etc), basic services (water, electricity, etc), financial services and local management approaches.

In order to attract investment, South African municipalities will need to strategise and act very innovatively, in partnership with provincial and national government, with civil society* and with the private sector*.

2.4
Financial pressures
In many areas municipalities have found themselves under increasing financial pressure. There are a number of reasons for this, two of which particularly relevant to South Africa.

First, in many cases other spheres of government (national, provincial) h tended to cut back on the amount of funds they give to municipalities.

However, they have not cut back on the functions that municipalities have carry out. (This problem is called "unfunded mandates".)

Second, as cities grow and change, the economies of the cities also change For example, in the 1970s, central Johannesburg was the centre of business and trade for the whole area. The municipality was able to raise much o revenue from taxing the economic activities in the city centre. However, today much of the economic activity that used to be in the city centre has now moved out to areas like Randburg, Sandton and Midrand. This has a big impact on the amount of revenue that the municipality can raise in central Johannesburg. Residential sprawl may have similar effects. As richer households move out of the cities, the municipal councils responsible for those cities lose the revenues that those households used to contribute. Ways need to be found to deal with the financial pressures caused by changes in the economic make-up of cities.

2.5
Public sector* and private sector are working more closely together
In most parts of the world - and increasingly in the developing world - the public sector is working more closely with the private sector in the deliver of services and the provision of infrastructure. Where this partnership is carefully planned and managed it can serve the public good and make the best use of resources. Municipalities often need the support of provincial and national government, and of each other, to ensure that such partnerships produce the maximum benefits and avoid abuse or corruption.

2.6
Shifts in the role and organisational structure of municipalities
In many parts of the world there has been a shift in the role of municipalities in service delivery. Instead of providing all services directly themselves, they concentrate rather on creating the right conditions for others - including NGOs, communities and the private sector- to provide services more efficiently and equitably* than before. This usually involves the municipality playing a greater role in the regulation of the activities of these other role-players. In addition, municipalities have tended to become increasingly concerned with promoting economic growth and investment in their areas. This usually also involves changes in the structure, organisation and management of municipalities. Some models have been successful, others not. We can learn much from both the successes and failures.

2.7
Environmental* issues are increasingly important
The issue of growth and redistribution is closely linked to environmental sustainability*. It is increasingly recognised around the world that the improvement of living conditions - particularly of the poorest sections of communities - cannot take place at the expense of the environment. For example, if factories are built close to where poor communities live, this may provide work opportunities but at the same time, pollution from the factories may have serious consequences for the health of the people. Environmental sustain ability depends to a large extent on the quality of urban management. For example, management systems need to be in place to ensure that the clean water supply is not contaminated by seapage from the sewerage system.

2.8
International networking
There is a growing number of international conventions~ and networks on important aspects of local government activity. These include such things as exchanges of staff and collaboration on service delivery. Through participation in these networks and conventions, municipalities can learn from other experiences and contribute their own knowledge and experience. National government needs to consider how best it can facilitate these linkages between municipalities here and those in other parts of the world.

?2.9 Strategic questions ?
1. What international trends and lessons need to be taken into account as we transform our own systems of local government?

2. What do we need to do to ensure that partnerships between municipalities and the private sector serve the best interests of local communities?

3. Should NGOs and communities be directly involved in the delivery of services? How can this be effected?

3 Local government SWOT analysis

(Strengths, Weaknesses, Opportunities and Threats)

Introduction

This White Paper will provide both a vision for the sphere of local government, as well as the means to attain it. However, an understanding of the current state of local government is an important first step. A strategy to transform local government in South Africa must be based on a careful and detailed understanding of the strengths, weaknesses, opportunities and threats (SWOT) facing the local sphere of government. This chapter contains such a SWOT analysis of local government in general.

Generalisations about all municipalities are of course difficult: the strengths of one municipality could easily be weaknesses in other cases. Therefore, detailed feedback from all municipalities, provincial associations and provincial governments will be vital to this process. There is a brief guide to conducting a SWOT analysis in your municipality on pages 20 and 21. You are requested to undertake such an analysis in your municipality, and to send your findings to the White Paper office in Pretoria by 30 May 1997.

The status of local government is growing
The new Constitution gives local government the status of a distinct sphere of government and is now represented on the National Council of Provinces.

A new cadreship of local leaders has developed
There is a new generation of local leaders drawn from diverse political, administrative and development backgrounds that bring in new qualities and dynamism to local government.

Building on an existing foundation
Most municipalities in urban areas possess land, assets and other human and material resources. They also have independent tax bases*, thereby laying a solid basis for their sustain ability.

Administrative capacity*
Despite an overwhelming need for changes in the management of municipalities and reorganisation, the core administrative capacity does exist within municipalities, especially in metropolitan areas.

Labour relations
At present there is a good labour relations system in place.

3.2
Weaknesses

The implementation of the Local Government Transition Act (1993) has revealed several problems with the system of local government. These problems include the following:

• there are too many municipalities
• the size of councils
• the cost of maintaining the present system
• the relationship between the primary and secondary tiers of local government, especially fiscal* relations, is not always clear
• demarcation

Capacity constraints remain a serious problem
The existing administrative systems tend to be fragmented and too focused on control. This makes them unsuitable for local government's new developmental role. Many local administrations also lack the skills required in a new and rapidly changing environment.

The relationship between municipalities and civil society Is still marked by confusion and uncertainty

• It will require very energetic and creative municipalities to change the way people feel about them.
• Municipalities will also need to develop a customer-orientated culture. Dramatic changes are called for in organisational culture, metering and billing systems, and so forth.
• Finally, the relationship between democratic municipalities and organisations of civil society will need to be clarified.

The relationship between councillors and officials has been less than satisfactory
This is largely a result of unclear and undefined lines of responsibility.

Financial weaknesses are amongst the greatest obstacle to the development of effective local government
Despite the existence of independent tax bases, many municipalities find it difficult to "balance their books". Most are not viable* because of their limited tax bases. The revenue raising potential of rural municipalities in particular is limited. The poverty of the consumers of municipal services also places many municipalities under financial strain.

Poor financial management and control
Many municipalities are struggling financially because of unrealistic budgeting, poor budget discipline, inadequate financial management and weak credit control*.

The flow of funds between the three spheres of government is complex and confusing (intergovernmental fiscal relations*)
Municipalities have difficulty in accessing and understanding the transfer of funds from national and provincial government and this makes intergovernmental fiscal relations difficult.

The restructuring of local government training is still in its infancy
Both councillors and officials need training and capacity building* if they are to fulfil all the roles tasked of them. To date training has been piecemeal and selectively targeted. Of particular concern is the fact that rural municipalities have not been adequately targeted for training. There is also no quality control of the training currently offered.

Despite the new dispensation, labour relations may hamper municipalities
As municipalities undergo transformation, the issues of human resource development and the development of fair labour practices are major weaknesses.

3.3
Opportunities

The improved status of local government
The decentralisation of functions and powers to local government was mentioned earlier as a strength. It should be seen as an opportunity to be used to the fullest extent. The constitutional obligation to empower and build the capacity of local government must be systematically developed and implemented.

The emergence of organised local government (the South African Local Government Association and provincial associations) gives individual municipalities a collective voice and affords them the opportunity to participate in the national and provincial political arenas.

Integrated development planning - a break with apartheid past
Apartheid created fragmented* cities and towns, and underdeveloped rural areas - with widely differing levels of services. Two recent laws, the Development Facilitation Act (DFA) and the Local Government Transition Act Second Amendment Act (LGTA2) state that municipalities must now produce integrated development plans.

Human capacity offers opportunities
The democratic local government elections brought into municipalities a set of new councillors who are committed to and enthusiastic about their new roles.

Several non-governmental organisations (NGOs) and educational institutions have developed a stronger focus on local government issues
Many of these institutions have great sensitivity to the development challenges and the dynamics within communities. Their training and other capacities are an important resource that can be used by municipalities. This will also strength; then the links between municipalities and civil society.

The possibility of private sector financing could be an opportunity for municipalities
There has been a growing interest among private financial institutions in financing municipalities. While risk levels remain beyond what is acceptable to many potential private sector lenders, the scope and interest exists for private sector financing to make a significant impact in the local sphere.

A growing private sector interest in the delivery of local infrastructure and services
Public-private partnerships (PPPs) have been described as both an opportunity and a threat. (refer to the PPP debate box )

The globalisation of trade and the flow of capital, goods and labour hold both opportunities and threats for South African municipalities Opportunities include:

• increased investment in human capital and infrastructure
• improved social and physical living standards
• scope for innovations in policy and regulatory frameworks to fully utilise the potential of a changing world economy.

The role of cities in promoting national economic growth and development is increasingly being viewed as an important initiative in many parts of the world. South African municipalities - especially in the bigger urban centres face the challenge of seizing this opportunity.

3.4
Threats

The Apartheid legacy remains a threat
The manner in which cities have been structured and designed in the past remains a problem. Unless they are restructured, apartheid cities could pose several difficulties for the new municipalities.

National growth and redistribution strategies are not clear
The recent Sandton crisis, for instance, is at least partially due to the lack of clarity on national, provincial and local redistribution objectives (refer to the box on redistribution and cross-subsidisation ).

Some municipalities today are close to financial collapse
This is partly because of the unviability of the old structures. It is also partly the result of the strain that came from amalgamation and re-demarcation. However, it is also the result of bad practices from the past.

The restructuring of the electricity industry could mean a significant loss of income (and control) for many municipalities.

Unfunded mandate
Despite the opportunities afforded by decentralisation, the granting of functions and responsibilities to municipalities may be a threat if unaccompanied by financial resources.

Reactions to decisions
The recent spate of resistance to metered tariffs, increased rates and payments illustrates that municipalities are currently bearing the brunt of reactions to unpopular decisions.

Municipalities' actions are currently ad hoc and crisis-driven. Sectors m communities are demonstrating resistance to local decisions which may have a long-term effect.

There are a number of issues related to governance that pose threats to local government
The ambiguous role of traditional authorities - and their relationship with municipalities - is the source of tension in many areas. Provisional arrangements set out the parameters on this until 1999, but a long-term answer has not yet been found. (see Focus box on Traditional Leadership.)

Environmental degradation
This problem faces municipalities across the world. If ignored, serious efforts at improving services and promoting economic development may be undermined. It is particularly important to address the issue of the effective management of clean water supplies and sewerage and to ensure safe and healthy access for poor people to basic services.

Legislative confusion
This is partially the result of apartheid local government legislation (such as provincial ordinances) which are out of step with the new dispensation.

3.5
Conclusion
To conclude, municipalities enter a new era of constitutional empowerment* and political support which offer great opportunities for development. However, the internal workings and finances of municipalities, as well as the broader policy environment in which they operate, require specific attention if these opportunities are to be fully realised and threats neutralised.

?Strategic questions on rural areas ?
1. Should a different system of local government be developed for rural areas or should be a uniform system for urban and rural areas?

2. Should municipal boundaries of urban municipalities be demarcated to exclude the surrounding rural hinterland? Stated otherwise, should urban areas be governed and administered separately from their rural hinterlands?

3. What could be done to improve and sustain the capacity of rural and representative councils?

4.What principles should govern the relationship and what criteria should be used to divide powers and functions between rural municipalities and traditional leaders, in the same area?

3.7
How to do a SWOT analysis of your municipality

In this chapter you have seen an example of a SWOT analysis of local government in general. Municipalities are requested to do a SWOT analysis of their own municipality. Here is a suggestion of how you can go about doing this SWOT analysis. It is only a suggestion - other approaches might better suit your circumstances.

Preparation
You will need to call a meeting to discuss the strengths and weaknesses of local government in your area, and to identify the opportunities and threats facing your municipality.

The meeting should be as broadly representative as possible. Try to involve all sectors of your community in the discussions. This should include councillors, officials and civil society organisations. A special effort should be made to ensure that women are fairly represented. Also, groups whose voice is often not heard, such as disabled people.

You will need to appoint a team of people to run the meeting. The team should include:

• a co-ordinator, responsible for the overall running of the meeting
• several facilitators to assist
• someone who will be responsible for writing down the findings of the discussions.

You will also need newsprint and marker pens for writing down what people say.

The Meeting
The meeting should be divided into 4 sessions:

• Session 1: What are the strengths of the municipality?
• Session 2: What are the weaknesses of the municipality?
• Session 3: What opportunities present themselves?
• Session 4: What threats do we face?

Introduction
Each session should begin with a brief introduction to the subject so that people know exactly what it is they are going to discuss. Use the language or languages which people can understand.

Group discussion
Thereafter, the meeting should break into groups of 4 to 6 people. The groups should have at least 30 minutes to discuss the issues amongst themselves. For example, in the first session, the groups will discuss the strengths of local government in your area. They will each make a list of these. The facilitators should move around the groups, assisting where necessary, but allowing people to express themselves freely

Reporting back
At the end of the group discussion, each group reports back to the whole meeting. One of the facilitators writes down on newsprint what each groups says, so that the whole meeting can see. This can be followed by a brief general discussion where the whole meeting can have the opportunity to discuss what other groups have said, and to add things if necessary. When every group has given its contribution, you can move on to the next session.

After the meeting
After the meeting, the co-ordinating team should go over all the sheets of newsprint. On the basis of the comments written down at the meeting, the team should write down the findings of the SWOT analysis and send them

White Paper on Local Government

Private Bag X80
Pretoria, 0001
Fax: (012) 320 8025 (only) e-mail: minee@dso.pwv.gov.za

Your SWOT analysis must reach Pretoria by 30 May 1997.

If you require additional information, contact:
White Paper on Local Government at (012) 33~ 3700

4 The Constitution and local government

Introduction

The Constitution which came into operation on 4 February 1997 is widely regarded as one of the most modern and progressive constitutions in the world. One of the reasons for this is that the Constitution gives local government the status of a sphere of government in the Republic. This means that local government is no longer a line function* although most line functions of national and provincial government have an impact on local go government - for example, health, water, trade and industry, land, and so on. The status of sphere of government means that elected representatives have more responsibility and scope to govern and look after the local affairs of their communities.

4.1
Objects of local government
Municipalities must strive, within their financial and administrative capacities, to provide democratic and accountable government in which the participation of communities is encouraged. They must ensure the provision of sustainable services* and promote social and economic development in a safe and healthy environment.

4.2
Developmental duties of municipalities
A municipality must give priority to the basic needs of the community and promote social and economic development. Municipalities must structure their administrations, budgeting and planning processes in order to do this. Part of the developmental duty of a municipality is to participate in national and provincial development programmes.

4.3 Co-operative governance
Local government is a sphere of government, distinct from the other spheres of government. However, it is also inter-related and inter-dependent with the other spheres. Co-operative governance requires that all three spheres of government work together. It means, for example, that.....

• national and provincial government must support municipalities to carry out their functions
• different spheres of government must respect the status, institutions, powers and functions of the other spheres
• provincial government must monitor local government to work out what capacity needs to be built in municipalities
• municipalities must also work together

Co-operative governance demands not only joint decision-making amongst the spheres of government, but also joint action. Planning for development, for instance, should be conducted together, for the same geographical areas.

For example, the national Department of Water Affairs might plan for a region which covers a part of Northern Province and a part of Mpumalanga. Mpumalanga Province might have similar plans, but only for one area in Mpumalanga. A district council near Nelspruit in Mpumalanga will also have plans but these will only cover the area immediately under its authority.

To avoid fragmentation, confusion and duplication, planning must be coordinated and integrated within and across geographical areas.

4.4
Categories and types of municipality
The Constitution provides for 3 categories of municipality:
Category A: a single tier system
Category B and C: a two-tier system.
The White Paper should determine the criteria to be used for deciding which category of municipality should apply in any given area. National laws will then be passed to implement these criteria.

In addition, the national laws must define the different types of municipality which may be established, within each category. Provincial legislation will then be passed in each province to establish these different types of municipality.

4.5
Municipal functions and powers
The Constitution contains two lists of municipal function - Part B of Schedules 4 and 5. A municipality may acquire additional functions through national and provincial laws and through contractual assignment and delegation. A municipality has executive and legislative powers for these functions and has the right to administer them.

4.6
Municipal finance
Municipalities have powers to tax and to borrow. These powers will be regulated by national legislation. Municipalities are also entitled to an equitable* share of national revenue. This share has yet to be defined by an Act of Parliament.

4.7 Organised local government
Organisations representing municipalities may be recognised in terms of national legislation. Local government is entitled to be represented in the National Council of Provinces (NCOP) and the Financial and Fiscal Commission.

?Strategic question on gender ?
1. Will the application of a formal quota system for the filling of posts at both a political and administrative level in municipalities redress these imbalances? Furthermore, how does one ensure that women are also considered in decision-making positions and employed at a senior level?

2. It is not sufficient to acknowledge the need for greater representivity of women - what support services should be made accessible to assist them, for example: candidate support programmes and specialised training?

3. Councils and their administrations have traditionally been a male domain. What institutional restructuring needs to occur to make these environments more conducive to the needs of women? (e.g. the creation of child care facilities, maternity benefits, time planning of meetings and training.)

4. Should one establish a gender structure a the local level to enhance and support the process envisaged at the national and provincial level?

5. Women have very specific needs in health, education and service delivery. How does one accommodate these needs in the planning and implementation of municipal programmes and policies?

5.Governance and participatory local government

Introduction

In this chapter we define the terms government and governance and look at what each of these means for popular participation in local government.

5.1
Government and governance
Government is an institution made up of individuals elected for a specific period to guide and administer the various affairs of state. The political component of government is assisted by its administrative arm. If government wants to administer effectively, it will recognise that the manner in which it exercises its mandate or authority is as important as the mandate itself. This is the essential difference between government and governance.

The essence of governance is how a municipal council relates to its constituency - those individuals who elected it. In pursuit of good governance and broader delivery and developmental goals, municipal councils will need to deal with civil society as a whole. Often a municipality must not only interact with the organisations of civil society, but must also mediate conflict which might arise between these organisations over claims on public resources.

It may not always be possible for a municipal council to marry conflicting interests from different quarters within its area of jurisdiction. This will be the point where the distinction between government and governance becomes crucial. While governance is about forging relationships and listening to all groupings, government is about a mandate to make decisions on a range of issues with the public good in mind. These ends are determined by the constituency who elected it, and the reasons it did so.

The distinction is particularly important at the local level. Municipalities, who are at the coalface of delivery needs and real contact with local communities, have definite choices to make about the manner in which they exercise their authority. The traditional form this debate has taken within South Africa revolved around the need for popular participation in the affairs of a community.

5.2
What is popular participation?
Popular participation typically refers to processes. The involvement of communities in the budgeting and integrated development planning processes of a municipality are two examples of popular participation. However, there is often a structural component to these relationships, which generally proves more difficult to manage than the procedural ones. The post-1994 emergence of government sanctioned civil society structures, such as local development fora or local water committees, has posed difficulties of a different kind. In particular, it has sometimes led to some conflict over the respective roles and functions of government and non-government structures. In some instances, the newer fora were regarded - or saw themselves as - the ultimate voice of authority in an area. This has had the effect of undermining municipal initiatives.

If local government is to become participatory in nature, its relationship with communities therefore needs some creative thought and innovations.

?5.3 Strategic questions ?
1. How can civil society participate effectively in governance in the local government sphere? What changes are needed to the structures and procedures of municipalities to allow for this participation?

2. In particular, what can municipal councils do to make sure that the poorer sections of the community - those whose voices are often not heard - are able to participate fully?

3. Democratically-elected municipal councils have a mandate to govern. In what ways would activities undertaken by those outside of government (for example, private sector companies, NGOs) undermine or threaten this mandate? How could these activities be managed so that they would not undermine but rather complement and support a municipal council's democratic mandate?

?Strategic questions on traditional leadership ?
1. How should the relationship between elected municipal councillors and traditional leadership be organised. What principles should apply?

2. What role, if any, should traditional leadership fulfil in local; government, municipal administration and development?

3. What institutional arrangements could be made to facilitate the role of traditional leadership, as an institution, in matters affecting local communities?

4. What role should traditional leadership fulfil in matters affecting local government?

6 The role of local government: what should a municipality do?

Introduction

In this chapter we examine the functions that municipalities should carry out in order to fulfill their new, expanded developmental role.

6.1
The role of government as a whole
The Constitution commits the state as a whole to promoting human dignity, equality and freedom for all South Africans. Moreover, the RDP and GEAR commits the government to implementing programmes to eradicate poverty. Government however consists of three spheres, and each has a specific and different role to play in this national effort. For example, national government's task, amongst others, is to determine and implement a macroeconomic strategy - an overall approach to economic growth and employment. Economic growth and employment are necessary for redistribution to happen on a mass scale.

6.2
What is local government's role in 1997 and beyond?
Chapter 7 of the Constitution starts to answer this question by stating the purpose of local government in the form and objects of local government. The primary role of municipalities is to ensure the provision of essential municipal services - water, sanitation, electricity, etc. - to all South Africans. The secondary role is to promote economic and social development, and to participate in national and provincial development programmes.

These two tasks together are what is meant by the developmental role or duty of municipalities.

6.3
Strategic* governance
At a time of huge demands for delivery and financial constraints on the whole of government, municipalities will need to act in a pro-active, strategic* and creative manner. Indeed, the new status of local government enables this by giving more scope to elected local representatives to exercise initiative. Depending on the capacity, size and location of the municipality, as well the context in which it finds itself, this strategic approach to government enables municipalities to act in different ways across the country. What is of importance however is that municipalities accept this challenge for strategic and developmental governance in a demanding and changing environment.

6.4
Special interventions
In order to achieve this broad developmental objective, there are seven particular areas or terrains on which a municipality needs to focus:

• land, services and housing
• development planning and local economic development
• environment and health
• communication and co-operation between community and government and participation of the community in its own government
• communication and co-operation between community and government, and
• (potentially) local safety and security.

What is important is that the developmental and strategic approach is applied to all of these areas.

6.5
Service delivery
Apartheid local government mainly focussed its service provision on the white areas. In those areas, white municipalities generally acted as service providers themselves. However, non-racial municipalities have experienced severe financial and technical problems in extending service delivery to areas previously unserviced or under-serviced. Building the capacity of municipalities, specifically in the rural areas, is therefore a priority that needs to be addressed as a matter of extreme urgency.

In addition, it has been recognized that municipalities' role in providing services can be significantly enhanced by mobilising private sector finance and management resources.(see the box on Public Private Partnerships )

6.6
Local economic development
(LED) The Constitution empowers and requires municipalities to take responsibility for economic and social development in their areas, thereby contributing to additional employment and sources of income. LED supports broad national macro-economic and provincial development strategies. Municipalities in turn must be supported by national and provincial government.

Although the concept of LED is receiving increasing attention from municipalities throughout the country, a national policy and definition of LED is still missing. The White Paper needs to address this. There is also a need to identify and clarify the administrative constraints which might affect municipalities' ability to initiate and facilitate LED, as well as the roles of its different stakeholders (municipalities, labour, business, NGO's and CBO's).

?6.7 Strategic questions ?
1. What is the difference between the role of national and provincial government, and local government?

What does this mean for the relationship between the three spheres of government?

What does this mean for municipalities' role as deliverer of basic services?

2. What are the differences in conditions between rural areas and urban areas which will determine whether or not rural and urban municipalities fulfill the same functions and roles?

3. What conditions will determine whether a municipality delivers services directly or whether it enters into partnership with business, NGOs, trade unions or community organisation?

4. What dangers are there...

• in terms of the cost of the service to the consumer?
• in terms of the interest of workers? when a municipality enters into partnership with the private sector to deliver services?

How can these dangers be averted?

Should a national regulatory framework for Public Private Partnerships be made? What should its content be?

5. What constraints - legal and administrative - affect municipalities' ability to become involved in local economic development?

What role is there for national and provincial government to assist municipalities in overcoming these constraints?

6. What can be learnt from the different approaches to local economic development in SA? Where are the success stories and where are the failures?

?Strategic questions on disability ?
1. How does one ensure that people with disabilities are represented on municipal councils to make the legislative and policy making process more accountable to their needs and interests?

2. How can municipalities assist in providing an accessible environment for people with disabilities? (e.g. how does it make buildings, pavements, recreational and sport facilities accessible?)

3. How does one make public transport accessible to people with disabilities?

7 A new system for local government

Introduction

The experience of the past few years shows that there are problems with the overall structuring of both metropolitan local government and municipalities in rural areas. This chapter examines some of these problems. It also considers some of the changes which might be required to the overall design of the local government system to enable municipalities to function democratically, efficiently and effectively.

7.1
A new system for local government
The municipal system is poorly designed The current system of municipal government in South Africa was not designed to function efficiently and effectively. In fact, it was not really designed at all. It came about more as a result of political considerations than financial or technical ones. In some municipal areas - particularly rural areas - the population is too ~mall and there is too little economic activity to make a municipality viable. The tax base* is too small and the municipalities cannot raise sufficient money to allow them to function effectively. It is also not really clear what the functions and responsibilities are of some municipalities in rural areas.

In some metropolitan areas the division of powers and functions between the metropolitan council and the local councils is inefficient and costly. There is also no clear framework to regulate the fiscal relationships between the various structures of metropolitan government. For example, it is not clear which structure is entitled to receive the money raised through rates and taxes, and for what purposes that money can be used.

Factors which influence the system
The White Paper process needs to address the basic design of the local government system. This includes such matters as the specific powers and functions of the various structures, the boundaries of municipalities, rationalisation, the number of municipalities, the link between small towns and their surrounding rural areas, the two-tier structure and fiscal relationships between municipalities.

The following are the elements in the Constitution which will influence the design of the local government system:

• there are three specific categories of municipality - categories A, B and C
• each category can have several types of municipality
  these types of municipality can have different functional and financial powers assigned to each of the two tiers of categories B and C municipality, depending on the requirements of the situation.

?Strategic questions ?
1. What criteria should we take into account when deciding the overall system and the various options within it?

2. Should all, or some metropolitan areas have either a category A municipality (single tier) or category B and C municipalities (similar to the current metro-substructure system).

3. On which basis should a new system be designed. The following are important questions that must be taken into account:

• What is the optimal size of a municipality, taking both representative concerns and economic imperatives into account?
• Functional boundaries - what role does the question of functional boundaries play in designing a new system and how does one determine these boundaries?
• Economies of scale
• Integrated development planning
• Functional and informal grouping together of municipalities.

Fiscal Relations between the different categories in the system
Metropolitan and District Councils cannot impose rates on property. Their sources of income are a payroll tax, a turnover tax and charges for services they provide. In addition, Metropolitan Councils may levy a surcharge on the rates levied by metropolitan local councils. District Councils and Metropolitan Councils act as regional mechanisms for redistributing wealth from affluent areas to disadvantaged areas under their jurisdiction, by providing financial support to local councils.

? Strategic question ?
l . What system will best facilitate redistribution?

Different categories in the new system
The ideal for such a new system is that all municipalities should have the same status, but on the other hand, one should acknowledge that there are differences in terms of fiscal strength and institutional and human resource

?Strategic Questions ?
1. How does one accommodate such differences in a uniform system of government?

Is grading the only alternative?

2. Should all municipalities have the same powers and functions?

The number, size and types of municipalities

Metropolitan areas
The Local Government Transition Act (LGTA) allows for only one kind of metropolitan government - that is, a two-tier system of metropolitan council and metropolitan local councils. The LGTA also spells out the powers and functions of each of these structures. However, feedback from a variety of stakeholders suggests that the present arrangement is not able to respond to local needs and challenges as effectively and efficiently as required. There is a need to consider other options.

Rural areas
Similarly, in rural areas there is usually a two-tier system of local government - that is, district councils (also called regional, sub-regional or services councils) and rural or representative councils. Here too there are reports of problems:

• The relationship between these two tiers is not always clear and this can lead to friction. The system of nominating councillors to the district councils has also led to tensions.
• In many rural areas, representative councils have been elected which do not have any service delivery function or legislative power, and no administrative support. In other areas, rural councils have been elected with all the powers and functions of urban municipalities, but without any real fiscal po~vers.

?Strategic Question?
1. How much choice should provinces have about the types of local government in their areas?

7.2
Political structures
Within the context of the new system of local government different political arrangements/ structures / institutions can be developed depending on the requirements of a particular area. These different political structures can in turn be divided in macro issues (issues that affect the council as a whole) or micro issues (issues that affect the committees).

A variety of committee systems* have developed. The basic three systems are:

• a multiple committee system
• a single committee system
• a hybrid or quasi-single committee system.

Which ever committee system is in place in a particular municipality depends as much on statutory provisions as on local realities. Committees perform essentially three functions, namely advisory functions, supervisory functions and management functions. Management functions are usually performed in terms of delegated powers.

In terms of the Constitution, the legislative authority~ (the power to make by-laws) and executive authority (the power to make and implement policy and the power to implement legislation) are vested in and exercised by the council.

Structures are needed which suit the needs of loccl government
There is a need to consider what structures will best empower and enable municipalities to carry out their new role as facilitators of development and providers of services. A key issue here is the need for all municipal activities to be driven by clear, focussed strategies. Only in this way can the council and its committees and administration achieve their tasks cost-effectively and efficiently.

For example, in some parts of the world the legislative authority is exercised by an elected council separate from the executive power which is exercised by a directly or indirectly elected or appointed chief executive. The relative "strength" of such a chief executive is determined by his/her budgeting and appointment powers. It is argued by some that this brings dynamism and greater guidance to a municipality. Others argue that it reduces accountability and excludes councillors from participating in the local government affairs of a community.

In choosing the political institutional arrangements of municipalities we need therefore to consider the way in which informed decisions can best be taken and monitored - but without wrongly reducing the involvement and participation of all councillors.

It is necessary to decide how much freedom municipal councils should be given to choose and develop their own structures.

We need also to consider the political component of a municipality - the municipal council and the committee system - and the variety of ways in which it can be designed.

Similarly, there is a need to consider the relationship between councils and their administrations. Some argue that the administration needs to be fully independent from the policy and legislative function in order to guard against abuse and to ensure neutrality. We need to ask whether this is the case, or whether other options are possible.

Operation of Councils
For the effective functioning of a municipal council that suits the needs of the community and ensures that the structures are accountable, effective and efficient, the following questions need to be considered:

?Strategic questions ?
1. Different models for mayors and chief executives There are a number of options in which the roles of mayors can enhance local government as a sphere of government. Some of the questions to consider are: Should mayors be elected or appointed Who should elect or appoint them? Should they have executive powers or only ceremonial powers?

2. The Role of the Town Clerk/CEO
Town Clerks cannot continue to operate in terms of the old paradigms where responsiveness, accountability and performance were ignored. How does one ensure effective performance, responsiveness and accountability? Should the Chief Executive Officer operate under delegated powers or statutory powers? What statutory powers could be given to CEOs?

3. The process of decision-making
The manner in which decisions are taken by the council must be reviewed . Should a council as a whole take all decisions or should committees have statutory decision-making-powers or should they have delegated powers or a combination of both

4. Public participation
How does one involve the public in the decision-making process?

5. Committees
What principles should guide the appointment of committees?
What are the advantages and disadvantages of the current committee systems?
Should municipal powers and functions be delegated to committees and officials?

6. The separation of powers
Should the executive and legislative authority of a municipal council be separated between an executive body and a legislative body?
If so, how should this be done and what are the main consequences for councillors and officials?

7. Relationships
What should the relationship be between the mayor and officials?
What should the relationship be between the council and officials?
What should the relationship be between the committees and the council?
What should the relationship be between ward representatives and proportional* representatives?
What should the relationship be between committees and the administration?

8 Municipal elections

Introduction

The Constitution lays the foundation for a democratic and open society where government is based on the will of the people. It states that every citizen has the right to free, fair and regular elections. In the local sphere, the Constitution requires that municipalities provide democratic and accountable government for local communities. The White Paper process needs to consider how municipal elections can best help to achieve these democratic principles and objectives.

8.1
Management and conduct of elections
The Constitution establishes an Electoral Commission which is responsible for the management of all elections in accordance with national legislation. The Commision may appoint "a public administration" - such as the administration of a municipality - in any sphere of government to conduct elections.

8.2
The voters' roll
The Electoral Commission is also responsible for compiling and maintaining; the national common voters' roll. For the purpose of electing the members of provincial legislatures and municipal councils, this voters' roll must be divided into provincial and local parts. All elections will be based on this roll.

8.3
The election of councillors
Proportional representation and ward representation
The Constitution provides for two different systems of representation in local government:

(i)proportional representation (which means that parties stand for election - voters vote for a party - and each party is awarded a number of seats according to the proportion of the total vote which they receive), or

(ii) a combination of proportional representation and ward representation (in ward representation the municipality is divided into wards*. Candidates stand for election and voters vote for the candidate of their choice in the ward where they live. The candidate who receives the most votes wins that ward and is the representative of that ward.)

The White Paper process should consider which system of representation provides the best kind of democratic representation.

The term of office
There is a four year limit to the amount of time that a municipal council can hold office before there must be another election.

The number of councillors
A large number of councillors does not guarantee accountability or responsiveness to the electorate or to a ward. The White paper process needs to decide the criteria for determining the size of municipal councils. It must address issues like whether councillors should be full-time or part-time office bearers, how they should be remunerated, what the offices should be, and how persons should be elected into office.

8.4
Nominated councillors
In metropolitan areas, a number of councillors are nominated by the local metropolitan councils to sit on the metropolitan council, and in rural areas, some councillors are nominated by local councils to sit on a district council. This system of nomination needs to be reviewed by the White Paper process.

8.5
The delimitation of wards*
The Constitution stipulates that wards must be delimited according to procedures and criteria.

8.6
Women
Women are under-represented on municipal councils in relation to their total number of the population.

?8.7 Strategic questions ?
1. What changes - if any - should be made to the municipal electoral system to ensure better elections?

2. Do we need to consider making changes to the way councillors are elected? If so, what changes should be made?

3. What is the best period of time for councillors to hold of office?

Should the term of all councils throughout the country end at the same time? Should the term of all councillors end at the same time or should their terms be staggered?

4. What should be done to improve accountability and the responsiveness of councillors?

Should a sufficient number of citizens be able to dismiss or recall a councillor or a council during the term? What procedures could be used for this purpose?

Should a sufficient number of citizens be able to compel a council to take or revoke a decision? What procedures could be used for this purpose?

4. What should be the role of municipal administrations in conducting elections?

5. Should a specific number of seats in a council be reserved exclusively for women?

6. What procedures and criteria should apply to the delimitation of wards? Should the same procedures and criteria apply in urban and rural areas?

7. Should councillors be nominated by one council to represent it on another council? What should the procedure be to ensure that these nominations are a fair reflection of the parties and interests of the nominating council? What should nominated councillors' voting rights be, if any?

9 Municipal administration and human resource management

Introduction

This chapter gives a brief overview of current arrangements for municipal administrations. It then goes on to consider some of the areas which have been identified as needing consideration in the White Paper process.

9.1
The current arrangements
Municipal administrative structures currently tend to be hierarchical and departmentalised. The administration is divided vertically into any number of functional departments according to specific functions and services provided. This division makes for specialisation. Often, departmental heads are functional specialists rather than general managers.

Most municipal administrations are horizontally divided into a range of job levels, some times up to twenty or more levels. Job level placings are done on the basis of job evaluation and are used to determine salary scales and responsibility.

The municipal administration is headed by a chief executive officer who is the accounting officer of the municipality. The chief executive officer is legally the link between the local political structure (council) and the administration, and is responsible for co-ordinating and supervising the management of the departments in the administration.

9.2
Constitutional provisions
The Constitution contains a comprehensive set of principles which govern municipal administration. For instance, the Constitution requires municipal administration to:

• play a developmental role
• be accountable
• exerrcise its duties efficiently
• be resentative
• act lawfullv, reasonably and follow fair procedures.

9.3 Some areas which need to be addressed

New institutional culture
The transition from apartheid to inclusive and democratic local government that previously separate administrations, with different internal system and more importantlv, quite different corporate cultures, are now joined together. These newly amalgamated administrations have to serve a newly elected council with a political culture quite different from that of past councils. It is suggested that comprehensive organisational development interventions are needed to forge a new institutional culture where different administrative cultures effectively intergrate with a new political culture.

Equipping staff for a new role
In order for municipalities to succeed in their new developmental role, their is a need for staff to adapt to this new role. Many officials were trained for the old style of local government - for service provision and regulation. Developmental local government requires additional skills and different attitudes. There is a need to transform the local government training system and to take other measures which will equip staff for their new role.

Affirmative action
Municipal administrations are governed by the democratic values and principlts contained in the Constitution - specifically by the equality clause in the Bill of Rights and the chapter dealing with public administration. municipal administrations are therefore required to implement affirmative action prograrnmes. This means taking positive steps to remedy the inequalities and injustices of the past. Such steps include re-evaluating standards, attitudes and practices in recruitment, training, development, qualifications and promotions.

Personal development
There is general agreement that many municipalities have not been able to make the best use of the resources - including human resources - at their disposal. Since efficiency and effectiveness are essential to successful developmental local government, there needs to be an improvement in career planning and the personal development of staff.

?Strategic questions ?
1. What principles and practices should govern the relationship between councillors (elected and officials (employed)? Is it possible to completely separate the roles of elected councillors and those of appointed officials?

2. How should the administration be reconstructed to play a developmental role?

3. Should municipal human resource management be part of the public service?

What would the implications of this be?

Should there be a national municipal service institution, similar to the Public Service Commission?

4. What would be the best system of local government training, considering the different roles and needs of councillors, emplcyees and communities?

5. Should chief executive officers have statutory or delegated powers?

6. Should the ratio of staff expenditure to total expenditure be predetermined? What should that ratio be peredetermined? What should that ratio be?

10 Building a financially viable sphere of government

Introduction

Tile restructuring of local government finances must create a viable and sustainable local government system. There are six key areas which need to be considered:

• realistic and affordable budgeting
• sound financial management
• an effectiv e and efficient local tax structure
• intergovernmental fiscal relationships
• municipal borrowing
• efficient deliverv systems

10.1
Realistic and affordable budgeting
In order to be viable, municipalities must ensure that their income (revenues) and expenditures are broadly in line. In order to do this, they must develop affordable financial plans or budgets, based on integrated development plans for their areas of jurisdiction.

On the expenditure side, they must ensure that the services they provide are at a level which is affordable to themselves and to households which pay for these services. On the revenue side, municipalities must ensure that they recover the cost of providing these services.

Municipal budget cycles need to take a broader, strategic view Co-operative governance and the new strategic, developmental role of local government means that municipal budget cycles need to take a broader, longer term strategic view, in line with national economic planning and the .Government's Growth, Employment and Redistribution strategy (GEAR).

Public participation in the budget process
The municipal budgeting process should be accessible to the public, with more opportunities for public input and participation.

10.2
Sound financial management
Municipalities need to en:iure that their finances are properly managed and that they live within their budgets. This includes effective credit control, proper accounting and adequate financial reporting procedures.

10.3
An effective and efficient local revenue system
The current tax base of municipalities - namely, property rates, tariffs, payroll and turnover taxes - suffers from certain inefficiencies. There is therefore a need to reform the revenue structure in line with the new developmental role of local government. Such reform needs to take account of co-operative governance and the taxation powers and functions of the different spheres of government.

10.4
More responsibilities, more resources
The demands on municipalities to ensure delivery of basic services are higher than ever before. The Constitution itself gives increased responsibility and functions to municipalities. The danger is that municipalities end up with more things to do, but without the necessary resources to carry out these duties. Support for municipalities from both national and provincial government is therefore essential. This support refers not only to money raised nationally, but also to improved training, and administrative and technical support.

10.5 Intergovernmental fiscal relationships

• A sound system of intergovernmental fiscal relations must ensure that transfers of funds between national, provincial and local government are efficient, and equitable. The system must also ensure that municipalities know well in advance what amounts will be transferred to them and by what date, otherwise good planning and budgeting will be impossible.
• The maximum degree of financial independence for municipalities is in the interest of both local and national government.
• Fiscal decentralisation - the transfer of funds from national to pro~incial government and municipalities - requires sound financial management on the part of the receiving government. Where municipalities have the proper degree of financial independence, market forces will tend to oblige them to exercise financial discipline. In the long run, the market is a more effective way of ensuring sound financial management than supervision by national or provincial government.

Streamlining the system of intergovernmental transfers
At present, a large proportion of municipal funding comes from national government in the form of intergovernmental transfers. However, these transfers are fragmented and unpredictable. Municipalities need to know:

• how much money they will receive
• when they will receive this money
• what this money is intended for

The central issue here is to decide what intergovernmental transfers are really for. This will determine how large the transfers should be and how they should be structured. Only then will it be possible to ensure that intergovernmental transfers and local revenue bases work in support of each other, and that poor communities in particular will benefit from the transfers .

10.6
Municipal borrowing
Steps need to be taken to improve the access of municipalities to financial markets. This would involve reducing the risks that financial institutions face when lending to municipalities, and improving the credit worthiness of municipalities, while ensuring that risks are not passed on to other spheres of government.

The relationship between concessional and commercial loan finance also needs to be clarified.

10.7
Efficient delivery systems
Municipalities need to make savings in expenditure on salaries, bulk supplies (of water, electricity and so on) and loan repayments. Saving measures could include introducing greater competition in the delivery of municipal services and implementing systems for delivery and the recovery of costs along business principles.

?10.8 Strategic questions ?
1. What system of intergovernmental grants should South Africa have?

2. Is the system of local government taxation in South Africa appropriate for the new role that municipalities have to play?

3. Does the local budget cycle process promote efficiency within municipal financial management? What alternatives to or improvements on the budget and financial planning processes could increase this efficiency?

4. How can the access of municipalities to the financial markets and expanded private sector investment be improved?

5. How should municipal accounting be reported? What formats should be used for financial reporting?

6. Should the budget cycles of national and local government co-incide?

7. How can municipal budget cycles work in support of broad national and provincial development objectives?

8. How can municipalities influence intergovernmental fiscal relations?

9. What criteria could be used to determine the viability of a municipality?

Glossary

Meaning of key words

administrative capacity - This means having the resources to carry out administration efficiently and effectively. It includes such things as sufficient financial resources, properly trained and motivated staff, good communication systems and clear lines of responsibility.

capacity building - Capacity building means improving an organisation or community's ability to carry out its tasks effectively and confidently. This includes such things as job skills training, adult basic education, organisational development, building administrative and managerial skills, and planning and budgeting skills. It involves providing opportunities for people to gain hands-on working experience. It also involves ensuring that people have full access to the information they need in order to function effectively.

capital investment programmes - These programmes are undertaken by municipalities to produce things such as roads, sewerage systems and buildings. Capital (money) spent on these programmes is considered to be an investment because, unlike the running costs of the municipality, the money spent produces a permanent asset.

civil society - Civil society refers to the organisations that communities establish outside of government. It includes such things as Civic Associations, Burial Societies, Women's Associations, Ratepayers Associations, Disabled People's Associations, Environmental Groups, Stokvels, and other bodies where members of the public organise themselves around common interests.

committee system - In addition to an executive committee, a council may establish other committees in terms of applicable legislation, such as provincial ordinances. These other committees may either be on the same level as the executive committee or they may actually be standing or ad hoc (occasional) subcommittees of the executive committee. In the case of standing committees, a member of the executive committee must usually be appointed as chairperson. It is usuall. the council which decides on the terms of reference, size and quorum of committees.

Committees essentially perform three functions, namely advisory, supervisory and management functions. The management functions are usually defined in terms of decision-making powers delegated by the council to the executive committee (or another committee). In respect of its delegated powers a committee is usually required to report to the council or, where it is a sub-committee of the executive committee, to the executive committee.

An important and recent innovation in the municipal committee system, is the requirement in the Local Government Transition Act that a municipal council should have an audit committee.

co-operative governance - A type of government where different spheres or institutions in the same sphere of government work together, co-operatively; according to a set of basic policies to realise objectives. It involves a relationship of trust between people involved and a willingness to come to agreement even when there are clashes of interest.

credit control - Collection and control over the money which is owed to a council - for example, by ratepayers or consumers of municipal services.

current expenditure - The day-to-day expenses of a council - things such as salaries, postage, printing, stationery, repairs to offices, interest on loans, service provision (such as bulk buying of electricity for supplying to residents).

empowerment - Empowerment enables people to take control over their own lives. It ensures that they have the ability to do what they need to do and are able to take decisions concerning the direction of their lives. Empowerment can include such things as education, training, financial support, access to opportunity and experience.

environmental sustainability - Sustainability means ensuring that our actions protect and preserve the world around use, not damage, abuse or waste it. In this way, we ensure that both ourselves and future generations will continue to be able to use natural and human resources to meet our basic needs and improve the quality of our lives. Environmental sustainability requires that we take a longer-term view of development and not simply act for quick, short-term gain which, in the end, might be more harmful than beneficial.

equitable/ equity - Equity is the fair, impartial and equal treatment of all people. However, it also recognises that the playing field is not always level. In order to treat all fairly and equitably, it may be necessary to take special measures to remedy the disadvantages that people suffer, and to protect those who face discrimination.

executive power/authority - Executive authority is the authority to make policy and to implement national and provincial legislation which had been assigned to a municipality as well as the bylaws made by the municipal council. In the local sphere of government the municipal council has executive authority.

executive committees - Until 30 April 1999, every municipal council has a choice whether or not it wants to establish an executive committee. If a council so decides, it must determine a system of proportional representation according to which its executive committee is to be constituted. It must also determine the functions of the executive committee, the number of members and its quorum. An executive committee must perform its functions on the basis of consensus. If consensus cannot be achieved, the matter may be resolved by a majority of at least two-thirds or the committee may, if a majority of the committee so decides, submit a report and recommendation to the council on such matter.

fiscal matters/ relations - These are matters relating to how money (revenue) is raised through such means as taxes, duties and levies. Fiscal matters also include how this revenue is distributed between different spheres of government, and how it is spent. (see also "intergovernmental fiscal relations")

fragmented (planning) - Fragmented means broken up into separate pieces. Planninx which is fragmented is planning which does not take into account the whole picture, all of the conditions. For example, a department plans to build a main road. But it does not consult with other departments, such as Water Affairs which is planning to build a dam in the same place. Planning in the apartheid era was extremely fragmented because it divided the country up into separate areas on the basis of race alone. The cost of this was enormous, both in human terms and in economic terms. It is now the task of democratic government to put all of these fragments back together, to plan for areas as a whole, not as separate pieces.

GEAR - The Growth, Employment and Redistribution stratgey - the main economic strategy of government announced in 1996. GEAR sets targets for the key macro-economic indicators - the budget (government spending), interest rates, investment levels, inflation, employment, and other economic factors.

globalisation - This word refers to world-wide economic relations. In the age of computers and other advanced technologies (what is sometimes called "the global village"), individual countries can no longer run their economies separate from the world economy as a whole. The world is now one marketplace where all countries compete for a share of trade and investment. International agreements are removing the barriers to trade between countries. Globalisation means that even municipalities have to concern themselves with their relationship to this world economy.

Globalisation also refers to the increasing social and cultural interactions between people from different countries around the world. This includes such things as cultural exchanges, the movement of people and the exchange of information.

governance - Unlike "government", governance means governing with people, rather than for people. In addition to the traditional government functions of control and regulation, governance seeks to build partnerships with civil society, organised labour, NGOs, busniess and others outside of government. It seeks the active participation of the community. It sees its role as being to facilitate, to enable and to promote, rather than simply to rule. In this way, it is a truly democratic process of government.

infrastructure - Such things as roads, sewerage, water supplies, recreational spaces, electricity supply.

innovative - This word means being creative, being willing to try new approaches.

integrated development (plans/ planning) - In order to make the best use of limited rersources available, development plans need to ensure that the maximum benefits are gained for every rand spent. For example, tourism might be the best way to develop the Eastern Cape coastal region. But an integrated development plan for tourism would not just consider building hotels and tourist facilities. It would also consider how tourism can benefit local communities and what local communities need in order to be fully involved in the tourism industry. This would include such things as training and education for local people, job creation through local involvement in building projects, improving roads and water supply in the area, electrification, the development of local small businesses and farms to supply the tourism industry, safety and security, environmental conservation, and so on. In order to address all of these issues, the planning process would have to involve all roleplayers - municipalities, provincial and national departments, business, organised labour, community organisations, the agricultural sector, NGOs and all others who have an important contribution to make. (see also "integrated planning"). This broad view of development planning, involving all roleplayers and stakeholders, is called integrated planning.

integrated planning - Integrated planning is planning which takes into account all the conditions and circumstances which will play a part in the successful outcome of the plan, and involves all the people or organisations who have a role to play or a contribution to make. (see also "integrated development planning")

international conventions - Conventions are agreements on particular subjects. International conventions are formed when people or governments from different countries who share common concerns come together to reach agreement on the best ways to address their concerns. The parties involved in a convention meet regularly to share ideas and experiences. An example of an international convention is CITES - the agreement on the protection of endangered wildlife species.

intergovernmental financial flows (transfers/ grants) - This refers to the movement of funds from one sphere of government to another - for example, from national government to provincial government.

intergovernmental fiscal relations - Intergovernmental fiscal relations refers to the way in which money is shared between national and provincial government and municipalities. Governments raise the money they need through taxation and other forms of levies and duties. In South Africa most money is raised by the national government. The Constitution requires that the national government then shares this money with provincial governmen and municipalities. Intergovernmental fiscal relations determine how this money is shared.

legislative authority- The power to make laws. The Constitution stipulates which bodies have this power.

Line functions - Line functions refers to the departments which carry out or implement government policy, such as Water Affairs, Land, Transport. Local government, as a sphere of government, is longer a line function. However, the activities of line departments do have an impact on the activities of municipalities.

monitoring - Monitoring is a system of checking and observing to make sure that the correct procedures and practices are being followed.

policy framework - A set of policies which, together, form the basis for making laws and give overall direction to planning and development.

private sector - The private sector refers to eveything which is privately owned and controlled, like business, the banks and insurance companies, the stock exchange, private schools and clinics.

proportional representation - Political parties gain a certain percentage of votes in an election. They are then entitled to this same percentage of the seats available in a council. For example, Party A gets 50% of the vore, Party B gets 30% and Party C gets 20%. If there are 100 seats in the council, Party A will have 50 seats, Party B will have 30 seats and Party C will have 20 seats.

public sector - The public sector refers to everything which is publicly owned and controlled. It includes Government - national, provincial and local - state-owned companies (like Iscor, Eskom, Telkom), national agencies like the CSIR, the Performing Arts Councils, the South African Police Services, public schools and hospitals.

sources of revenue - A source of revenue is where money comes from. For example, income tax is a source of revenue - it is where the government is able to raise money.

sphere of government - We used to speak of different levels of government national, provincial and local. However, the word "level" can suggest that one level is higher than the other. The word "sphere" suggests that the three levels of government have equal status, even though each operates in a different area.

stakeholders - Those people or organisations who are directly involved and have a direct interest in a particular area. For example, stakeholders in local government include local communities, councillors, officials, business, trade unions, provincial government, the Ministry of Provincial Affairs and Constitutional Development, amongst others.

strategic - Strategic means essential, the most important. (see also "strategic planning" and "strategically-driven local government")

strategic planning - Strategic planning requires having a clear vision of what you want to achieve, setting clear goals and objectives, and working out the best way to achieve these goals and objectives, by means of strategies or plans of action. An example of strategic planning would be planning for the transport needs of a whole region, taking into account the needs of citizens, industry, economic growth and development, environmental concerns, security, health and safety, maintenance, affordability and all other factors which relate to transport.

strategically-driven local government - This refers to municipalities which develop a long-term vision of development. It focuses all of their actions towards achieving clear long-term development goals. Even short-term actions form a part of this broader vision. (see also "strategic planning" and "integrated development planning")

sustainable services - Sustainable means "able to continue". For example, a council decides that every household in the area will have refuse collection once a week. This is sustainable because the council has enough income to pay for this service every week. The council can continue to offer the service. However, if the council decides that there will be refuse collection every day, the service will not be sustainable because in a few weeks the council will run out of money.

tax base - The tax base is the number of individuals or businesses who pay taxes. transparent - Open to the view of the public, not hidden or secret. unviable (see viable)

viable/ viability - If a municipality is viable, it means that it has access to sufficent income and resources to pay its bills and carry out its function effectively. For example, if a municipality cannot raise sufficient revenue from rate-payers, consumers of services, or borrowings, it will not be able to carry out its functions. It will not be viable.

wards (delimitation of) - This refers to dividing up municipal areas into smaller areas called wards for the purposes of municipal elections.