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On the impact of provincial development policies in South Africa
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1028-3625
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EUI; RSC; Working Paper; 2023/32; Global Governance Programme-503; [Global Economics]
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SANTERAMO, Fabio Gaetano, PHALI, Lerato, On the impact of provincial development policies in South Africa, EUI, RSC, Working Paper, 2023/32, Global Governance Programme-503, [Global Economics] - https://hdl.handle.net/1814/75495
Abstract
Although South Africa is one of the biggest economies in Africa, poverty and income inequality
persist and a vast number of households lack access to water and sanitation services. Provincial
governments have implemented the Provincial Development and Growth Strategy to improve
standards. We evaluate its effects on selected development indicators. Using a generalization of
the Difference-in-Differences method, we study the effects on four development indicators: food
security, economic well-being, and water and sanitation security. We use secondary data from the
General Household Survey, collected between 2002-2017 and conclude that i) the policies improve
development indicators; ii) the effects are heterogeneous across racial and geographic distributions
of households.
Long-term economic stimulators, such as employment opportunities and education for vulnerable
communities, are needed to improve household welfare across the provinces. Programs emanating
from these development policies should be ongoing and continuously adapted to fulfill the specific
needs of the local groups.