Foreword by Minister Moosa
Introduction by Mr Pravin Gordhan
How to respond to the Green Paper on Local Government
1 A history of local government
2 The current state of local government
2.1 Existing local government institutions
2.2 The local government system
3 Human settlement patterns in SA
4 Defining the challenge for local government
Section B CO-OPERATIVE GOVERNMENT
1 Local government in a framework of inter-governmental
relations
2 Organised local government
Section C DEVELOPMENTAL LOCAL GOVERNMENT
1 Definition of developmental local government
2 Approaches for developmental local government
2.1 Integrated planning, budgeting and management
2.2 Managing the growth of local settlements
2.3 Mobilising capacity for effective service delivery
2.4 Linking growth and development
Section D INSTITUTIONAL SYSTEMS
1 Introduction
2 Metropolitan government
2.1 The need for metropolitan government in metropolitan
areas
2.2 Structural options for metropolitan governments
2.3 Assessing the options
3 District government and urban and rural types
3.1 The need for district government
3.2 Structuring primary tier local government
4 Municipal types
1 Introduction
2 Political structures
3 Committee systems
4 The number of councillors
5 Democratic participation
6 Traditional leaders
7 Municipal elections
Section F ADMINISTRATIVE SYSTEMS
1 Introduction
2 Organisational transformation
3 Human resource development
1 Introduction
2 The current situation
3 Policy objectives
4 A framework for a new municipal financial system
4.1 Local revenue instruments and policies
4.2 Intergovernmental transfers
4.3 Municipal borrowing
4.4 Budgeting, accounting and financial reporting
systems
Legislation affecting local government
The Local Government White Paper process will lay the basis for the establishment of a comprehensive national policy framework in terms of which the existing local government system will be transformed.
Local government will, until 1999, remain subject to the precepts of the transition process as negotiated during 1993 in the Local Government Negotiating Forum, and as regulated by the Local Government Transition Act; 209 of 1993. This transition process had as its major objective the de-racialisation and democratisation of existing local government structures, and the establishment of democratically elected structures in those parts of South Africa not previously governed by local government.
The 1996 Constitution however envisages a complete transformation of the local government system. It not only incorporates the local sphere of government as an integrated component of the democratic state, it also prescribes and envisages a new, expanded and developmental role for the local sphere as a whole and for each of the municipalities that currently constitute the sphere.
Whereas the objects of democratisation and de-racialisation have been successfully achieved with the finalisation of the local elections held between November 1995 and June 1996, and whereas the overall system of local government and its functioning has to a large extent been stabilised after the transition, the transition to fully democratic, accountable, efficient, and effective developmental local government is far from being completed.
The next local elections, to be held in 1999, will usher in the final phase and signal the end of the transition process. The White Paper will therefore not only establish what local government will look like after 1999, but it will also indicate what systems, institutions and practices require to be put in place in preparation for the final phase.
The successful development of this new system for local government needs to be a combined effort which refects the inputs of the public and all interested and affected parties. All South Africans have a role to play in the national efforts to achieve democratic, accountable, efficient, and effective developmental local government. I call on every South African through all spheres of government, business, industry, trade unions, community organisations and NGOs to participate towards the effective development of local government policy and its implementation.
I take this opportunity to thank everyone who has contributed their time and energy to the Green Paper and the extensive accompanying consultative process. I am convinced that it has immeasurably contributed to the quality of this Green Paper on local government.
The formulation of a new policy for a democratic system of local governance provides us with a rare and historic opportunity to shape and restructure that part of government which is closest to the millions of its population.
Local government stands at the threshold of an exciting and creative era in which it can make a powerful impact on reconstruction and development in our new democracy.
Every effort has been made to ensure that the process of policy formulation has been inclusive, transparent and interactive and that as many roleplayers as possible have been included in the process.
A committee of political advisors, known as the White Paper Political Committee, and a drafting team known as the White Paper Working Committee, were appointed to co-ordinate the White Paper process. The White Paper Political Committee developed a three stage process to elaborate a new Iocal government policy framework or White Paper.
The first phase produced a Discussion Document containing the initial strategic questions to be addressed in the White Paper.
The second phase, which consisted of extensive research processes (both secondary and primary research), workshops and other consultation mechanisms, produced the Green Paper.
The third and final phase will identify the necessary policy choices with regard to the options set out in the Green Paper. A White Paper describing government policy on these matters will be drafted and presented to Cabinet for approval.
Current Reality
This section of the paper provides:
This section outlines the constitutional framework for local government within a system of inter-governmental relations, and suggests that strong and capacitated local governments will be a key resource in the development of national and provincial programmes. It also deals with organised local government.
Development Role
The most important difference between the new form of local government in this policy framework and the past, is the creative and dynamic developmental role for local government. A role which requires a new energetic brand of leadership and institutional forms to take local government into the next millennium.
This section provides a definition of developmental local government, and proposes four inter-linked approaches to assist municipalities to effectively play a developmental role:
Institutional Systems
This section sets out various types of municipalities and lies at the basis for criteria which will have to be elaborated in legislation and which will determine the choice of type of municipality for a particular area.
Political Systems
This section looks at models of political structuring (eg, Executive Mayor and Council-Manager forms), municipal committee systems and democratic participation. It suggests that the current number of municipal councillors should be reduced. It also briefly speaks to traditional leadership and municipal elections.
Administrative Systems
This section flags the need for fundamental administrative transformation and reorganisation to support the establishment of a developmental local government. This aspect of transformation is indispensable in the creation of a new culture of service and delivery.
Finance
This section outlines the basic elements of a new local government finance system. It notes that while total municipal expenditure is large, there are great differences between municipalities with respect to ability to generate revenue. It identifies the important roles of property taxes, user charges from trading services and RSC levies in the current system. Changes to the system of intergovernmental transfers are suggested to increase rationality, predictability and accountability. The issue of determining the 'equitable share' of the national fiscus to which local government is entitled in terms of the Constitution is highlighted.
A potentially important role for the private sector in municipal infrastructure, and improving municipal budgeting, accounting and financial reporting systems is envisaged.
The Green Paper will serve as a very substantive basis for national consultation and a vigorous debate on what is best for SA in the 21st century. As important as the ideas in this document will be the development of concrete programmes for the transformation of local government in accordance with these ideas. A unique opportunity exists for a co-operative partnership between the national, provincial and local spheres in leading the transformation of local government.
I take this opportunity to thank my colleagues in the White Paper Political Committee and Mr Mashinini and his colleagues in the White Paper Working Committee, Mr Zam Titus and his team in the Department and all the researchers who contributed to this process.
Local Government in South Africa is a distinct sphere of government, interdependent and interrelated with the national and provincial spheres. Municipalities have the right to govern, on their own initiative, the local government affairs of their community, subject to national and provincial legislation. They are required to give priority to the basic needs of the community, promote the social and economic development of the community, and participate in national and provincial development programmes.
Within a co-operative system, the Constitution mandates local government to: