DIRECTIONS IN DEVELOPMENT Public Sector Governance Alam, Mokate, and Plangemann Alam, Making It Happen Selected Case Studies of Institutional Reforms in South Africa Asad Alam, Renosi Mokate, and Kathrin A. Plangemann, Editors Making It Happen DIRECTIONS IN DEVELOPMENT Public Sector Governance Making It Happen Selected Case Studies of Institutional Reforms in South Africa Asad Alam, Renosi Mokate, and Kathrin A. Plangemann, Editors © 2016 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW, Washington, DC 20433 Telephone: 202-473-1000; Internet: www.worldbank.org Some rights reserved 1 2 3 4 19 18 17 16 This work is a product of the staff of The World Bank with external contributions. The findings, interpreta- tions, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. 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Making It Happen • http://dx.doi.org/10.1596/978-1-4648-0768-8 Contents Foreword xi Acknowledgments xiii Contributors xvii Abbreviations xix Introduction 1 South Africa’s Lessons in Progress 1 The Landscape in 1994 2 Economic and Social Transformation, 1994–2014 3 Building Inclusive Public Sector Institutions and Implementing Institutional Reforms 5 Cross-Cutting Lessons and Challenges Ahead 9 Notes 11 References 11 Chapter 1 Developing an Intergovernmental Fiscal Framework 13 Catriona Purfield Introduction 13 The Policy Challenge 14 Addressing the Challenge 16 Results Achieved 27 Conclusions: Success Factors, Challenges, and Lessons Learned 31 Notes 34 References 35 Chapter 2 Increasing Budget Transparency 37 Neil Cole, Aarti Shah, and Gert van der Linde Introduction 37 The Policy Challenge: The Institutional Restructuring of the Budget 38 Addressing the Policy Challenge 40 Results Achieved 48 Making It Happen • http://dx.doi.org/10.1596/978-1-4648-0768-8 v vi Contents Conclusions: Success Factors, Challenges, and Lessons Learned 52 Note 53 References 54 Chapter 3 Raising Tax Revenue 55 David Hausman and Precious Zikhali Introduction 55 The Policy Challenge 56 Addressing the Policy Challenge 57 Results Achieved 66 Conclusions: Success Factors, Challenges, and Lessons Learned 67 Notes 69 References 70 Chapter 4 Strengthening Performance Monitoring and Evaluation 71 Kathrin A. Plangemann Introduction 71 The Policy Challenge 73 Addressing the Policy Challenge 75 Results Achieved 80 Conclusions: Success Factors, Challenges, and Lessons Learned 83 Notes 88 References 89 Chapter 5 Creating an Inclusive and Credible Statistical System 91 Misha V. Belkindas and Phindile Ngwenya Introduction 91 The Policy Challenge 92 Addressing the Policy Challenge 94 Results Achieved 98 Conclusions: Success Factors, Challenges, and Lessons Learned 99 References 101 Chapter 6 Expanding HIV/AIDS Treatment 103 Patrick Lumumba Osewe and Yogan Pillay Introduction 103 The Policy Challenge 105 Making It Happen • http://dx.doi.org/10.1596/978-1-4648-0768-8 Contents vii Addressing the Policy Challenge 107 Results Achieved 113 Conclusions: Success Factors, Challenges, and Lessons Learned 113 Notes 116 References 116 Chapter 7 Reforming the Social Assistance System 119 Lucilla Maria Bruni Introduction 119 The Policy Challenge 120 Addressing the Policy Challenge 122 Results Achieved 131 Conclusions: Success Factors, Challenges, and Lessons Learned 131 Note 133 References 133 Chapter 8 Improving the Delivery of Identification Documents to Facilitate Access to Services 135 John Carneson and Zandile Ratshitanga Introduction 135 The Policy Challenge 138 Addressing the Policy Challenge 138 Results Achieved 145 Conclusions: Success Factors, Challenges, and Lessons Learned 147 Notes 149 References 149 Chapter 9 Protecting Biodiversity, Rehabilitating Ecosystems, and Promoting Conservation for Development 151 Christopher J. Warner, Claudia Sobrevila, and George C. Ledec Introduction 151 The Policy Challenge 152 Addressing the Policy Challenge 153 Results Achieved 159 Conclusions: Success Factors, Challenges, and Lessons Learned 161 Notes 163 References 163 Making It Happen • http://dx.doi.org/10.1596/978-1-4648-0768-8 viii Contents Chapter 10 Improving the Management of the National Road Network 165 Ben Gericke Introduction 165 The Policy Challenge 166 Addressing the Policy Challenge 166 Results Achieved 175 Conclusions: Success Factors, Challenges, and Lessons Learned 176 References 178 Chapter 11 Developing Renewable Energy through an Independent Power Producer Procurement Program 179 Joel Kolker Introduction 179 The Policy Challenge 181 Addressing the Policy Challenge 182 Results Achieved 186 Conclusions: Success Factors, Challenges, and Lessons Learned 190 Notes 193 References 194 Chapter 12 The Making of the 1996 Constitution 195 Ivan Velev and Nonhlahla Zindela Introduction 195 The Policy Challenge 196 Addressing the Challenge 197 Results Achieved 202 Conclusions: Success Factors, Challenges, and Lessons Learned 204 Notes 207 References 209 Conclusions: Lessons on Policy Making and Implementation 211 Introduction 211 Key Success Factors in Policy Making 212 Key Success Factors in Policy Implementation 218 Risks to Sustainability 224 The Final Word 225 Making It Happen • http://dx.doi.org/10.1596/978-1-4648-0768-8 Contents ix Boxes 7.1 Mashavha v. the President of the Republic of South Africa 122 9.1 Finding Win-Win Cooperative Solutions to Sustainable Potato Growing in the Western Cape 155 9.2 Protecting Biodiversity, Increasing Water Flows, and Creating Jobs 157 9.3 Getting Sectors to Embrace Environmental Considerations 158 9.4 Combatting Corruption 161 10.1 Impact of the Gauteng Freeway Improvement Project (GFIP) 173 Figures 1.1 Key Milestones and Evolution of Subnational Spending Share In Total Spending 28 3.1 Tax Revenue in South Africa as a Percent of GDP, 1994/95–2013/14 66 4.1 Creation and Implementation of South Africa’s Performance Monitoring and Evaluation System, 1995–2014 79 C.1 Creating a Virtuous Cycle of Change 221 Tables I.1 Key Economic Indicators in South Africa, 1992–94, 2005–07, and 2012–14 4 I.2 Key Economic Indicators in South Africa, 1992–94 and 2012–14 5 1.1 Intergovernmental Budget Relations, 1994 and 2013 29 6.1 Health Expenditure and Outcomes in Selected Upper-Middle-Income Countries 104 6.2 Annual Expenditure on Antiretroviral Therapy in South Africa, 2007–12 111 8.1 Performance by the Department of Home Affairs, 1994–2013 137 10.1 Management Responsibility for Paved and Gravel Roads in South Africa, 2014 175 11.1 Results of First Five Rounds of the Renewable Energy Independent Power Producer Procurement Program (REIPPPP) 187 11.2 Average Bids in First Five Rounds of the Renewable Energy Independent Power Producer Procurement Program (REIPPPP) 188 Making It Happen • http://dx.doi.org/10.1596/978-1-4648-0768-8 Foreword South Africa has achieved a lot on its path of socioeconomic transformation since the end of apartheid in 1994. Although many challenges remain to fostering inclusive growth to address the triple challenges of unemployment, poverty, and inequality, some innovative approaches have been used to build more inclusive public institutions. These have helped to expand service delivery, strengthen quality, and improve the lives of millions of South Africans.