Browsing by Author "Abedian, Iraj"

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    An analysis of formal sector employment in South Africa: Its implications for poverty and future economic strategies
    (Southern Africa Labour and Development Research Unit, 2015-05-28) Abedian, Iraj; Schneier, Steffen
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    An economic enquiry into the poor White saga
    (Southern Africa Labour and Development Research Unit, 2015-05-28) Abedian, Iraj; Standish, Barry
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    Budget reform: an evaluation of the implementation of performance budgeting in the Department of Health, Mpumalanga
    (1999) Shall, Adrienne; Abedian, Iraj
    Due to the resource constraints faced by most governments, there is increasing recognition globally of the need to improve the efficiency and effectiveness of public service delivery. The budgeting system is a critically important tool with which to do this. Budget reform consists not only of reforming the resource allocation process, but goes much further to include reform of financial planning and management systems and processes of monitoring and evaluation. Even more crucial is the implementation process of budget reform: no matter how good a budgetary system has been developed, the test of the system is not in the design but in the implementation. This dissertation evaluates the implementation of budget reform within the Otief Directorate: Health in the Department of Health, Welfare and Gender Affairs of the Province of Mpumalanga. Chapter 1 sets out the rationale for the study. Chapter 2 reviews traditional budgeting and its limitations in terms of allocating resources for improved service delivery, and discusses the evolution and inadequacies of budgeting in South Africa. Chapter 3 is a theoretical review of the performance budgeting system, detailing its various components including strategic planning, financial planning, expenditure management, performance management and organisational design. Chapter 4 categorises issues concerning successful implementation of performance budgeting in terms of political, administrative/ bureaucratic and technical aspects. Chapter 5 describes the goals, objectives and organisational structure of the Otief Directorate: Health of Mpumalanga. The limitations of the previous budget process and structure are reviewed, highlighting the need for reform. Chapter 6 evaluates the implementation process of performance budgeting in the Chief Directorate: Health, describing the three conceptual phases of the process and focusing on the obstacles faced. Chapter 7 recommends the following for the successful implementation of performance budgeting: a detailed situational analysis to improve the understanding of the current situation and provide a common reference point; development of an implementation plan; personal involvement of top management; effective management of the process of transformation; documentation of the process as it unfolds; and development of management capacity at all levels.
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    Does South Africa's government debt threaten the sustainability of fiscal policy?
    (1996) Biggs, Michael Llewellyn; Abedian, Iraj
    The South African government debt has risen alarmingly over the last decade, with the debt-to-GDP ratio increasing from 33% in 1985 to 57% in 1995. These debt movements, combined with historically high conventional deficits equal to 9.0% and 9.8% of GDP in 1993 and 1994 respectively, have cast doubt on the solvency of government. This paper considers the issue of government solvency by focusing on two questions. Firstly, "Are present fiscal policies sustainable?", and secondly, "What are the limits to future fiscal policy if government solvency is to be maintained?"
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    An empirical analysis of personal saving in South Africa : 1960-1995
    (1996) Annett, Nigel Charles; Abedian, Iraj
    This study seeks to empirically identify the major determinants of personal saving in South Africa . The paper uses the empirical results to examine whether personal savings can be an effective policy instrument for generating economic growth. Chapter one begins with a brief discussion of the link between savings and economic growth. The nature of personal savings in South Africa is then reviewed . Because of the composition of personal savings, it is argued that using personal savings as a target of policy will be ineffective .
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    Financial and fiscal facilitation of developmental local government in South Africa
    (2000) Heese, Karen; Abedian, Iraj
    Local government in South Africa is mandated with the delivery of basic services. This responsibility reflects the evolving role and status of subnational governments across the world. In South Africa, local government policy is underpinned by a developmental vision. The vast backlog of infrastructure that apartheid entrenched requires that considerable financial resources facilitate basic service delivery. In many other countries, inter-governmental transfers account for a far larger portion of municipal revenue than in South Africa where financial capacity is broadly assumed to be sufficient for expenditure needs. This is an inequitable assumption - for communities that do not have substantial revenue bases the current fiscal and financial system undermines equalised service delivery. Inter-governmental relations therefore require revision if municipalities are to address socio-economic inequities. Fiscal options to facilitate developmental government include a greater transfer of resources to local government, or, if the constraints of the fiscus inhibit this, transfers that primarily focus on equalisation. If this restructuring does not occur, local government will not have the financial means to ensure that decentralisation implies the optimal mechanism for development - improved financial and fiscal facilitation of developmental local government is therefore imperative.
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    Justice, development and the national budget
    (Southern Africa Labour and Development Research Unit, 2015-05-28) Simkins, Charles; Hendrie, D.; Abedian, Iraj; le Roux, P.
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    National accounting statistics for the less developed economies (with special reference to Transkei)
    (1982) Abedian, Iraj; Wilson, Francis
    Macroeconomics is that part of economics which studies the overall averages and aggregates of the economic system. It seeks to explain the causes and consequences of fluctuation in the general level of output, or prosperity and depression, the general price level, or inflation. and deflation, the general level of employment, which moves with the level of output, and the general level of interest rates, which is to some degree related to the phenomena above. It is evident therefore that macroeconomic analysis involves the measurement of macroeconomic activity. That branch of macroeconomics which is concerned with the measurement of macroeconomic activity is called national accounting, or national income accounting. Like all other branches of economics national accounting has evolved considerably over the past three centuries. Initially, different countries developed their own national accounting systems, depending mainly on the structure of their economies and the possibilities for data collection. Examples of developments in this direction are the French system of national accounts and the British system of national accounts. Later on, for the sake of international comparability, attempts were made to develop a standard pattern which would be employed by all countries. The results of these attempts were the 1953 and 1968 systems of National Accounts introduced by the United Nations (U.N.), referred to as the U.N. System of National Accounts. This thesis studies the underlying concepts and the general applicability of these two systems, the latter being a revised version of the former.
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    On the accuracy of Benso national accounts statistics
    (Southern Africa Labour and Development Research Unit, 2015-05-28) Abedian, Iraj
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    Public sector policies and income distribution in South Africa during the period 1968-1980.
    (Southern Africa Labour and Development Research Unit, 2015-05-28) Abedian, Iraj
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    "Successful fiscal adjustments" : empirical evidence from South Africa
    (1998) Duperrut, Jerome; Abedian, Iraj
    From 1973 to 1997 South Africa's fiscal stance has undergone large fluctuations. The primary balance of the general government recorded a surplus of 3.8% of GDP in 1990 and a deficit equivalent to 4.5% of GDP in both 1977 and 1994. This paper identifies ten episodes of fiscal adjustment, defined as a fiscal year during which the primary deficit was reduced by more than 1.5% of GDP. It then assesses the success of these episodes, according to the evolution of the debt ratio two or three years after the adjustment. In South Africa there have been two episodes of successful fiscal adjustment: in 1978 and in 1980. The paper proceeds by analysing the size and the composition of the various fiscal adjustments. It shows that successful fiscal adjustments are generally smaller than unsuccessful ones. On the taxation side, successful adjustments rely mainly on non-tax revenue, whereas unsuccessful ones record large increases in direct taxation. Generally the adjustment is mostly felt on the expenditure side. As in most developing countries, capital expenditure is the main target for cuts. However, the size of the reduction in capital expenditure is smaller in successful adjustments. Furthermore, these adjustments record spending cuts in all categories of expenditure, contrary to unsuccessful contractions. It seems that successful adjustments rely on temporary tax increases and permanent spending cuts.
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    Tax competition and its implications for Southern Africa
    (2002) Robinson, Zurika Clausen; Abedian, Iraj
    The purpose of this study was to evaluate the implications of tax competition with specific reference to commodity and capital income taxation. From a theoretical perspective, tax competition can be explained as a process that involves various measures or strategies that governments can take on the same but also different levels to adjust their tax bases and/or rates (tax systems), in order to attract mobile factors of production from other regions. The alternative of tax coordination and harmonisation to tax competition, as applied in developed regions, and partial pursuit in some developing regions was also analysed.
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    Taxation of the South African tobacco industry : with special reference to its employment effects
    (1998) Van der Merwe, Rowena; Abedian, Iraj
    This study examines the economic impact of cigarette excise taxes in South Africa. In particular, it looks at the economic impact of increasing excise taxes, or in effect, reducing consumption, and the resultant impact on output and employment in the economy. Real cigarette excise taxes in South Africa have steadily declined over the period 1970 to 1995. As a result there has been a concomitant decrease in the real retail cigarette price, caused primarily by the tax component. The South African government has however, since 1995, despite vociferous opposition from the industry, effected tax increases greater than expected inflation to adjust the cigarette duty back to its former levels. The tobacco industry has argued that such actions will result in job losses. The industry has argued that, regardless of its effects on physical health, tobacco plays an important role in the communities' economic health, generating employment and contributing vital revenues to government coffers, which in a country like South Africa with high unemployment, has strong political appeal. This study examines these arguments. The first part of the paper looks at the effect of taxation on consumption and government revenue. Using a price elasticity estimate of -0.6 for South African cigarette consumption, a simulation model of the government's tax policy is run. This shows that the government's policy on tobacco taxes has been non-optimal and revenue could have increased by 2 percent, had the government maintained the real value of excise duties. The results suggest that an optimal tax for the government could be set at a level higher than the current 52 percent of retail price which, contrary to industry arguments would maximise government revenue. The second part of the paper, then addresses the question of employment losses in the economy in the wake of increases in excise taxes by government. An input-output model is used and the methodology is based on the assumption that expenditure switching will occur from cigarettes to other goods and services in the economy. The model is tested using 1995 data. The study looks at the impact on output and employment from this alternative spending and examines the argument that increased excise taxes will result in job losses. The results suggest that the economic effects of increased excise taxes on cigarettes, which would result in a change in personal consumption behaviour away from cigarettes, will not have the harmful effects on employment that the industry claims. South Africa as a whole would have gained net increases in output and employment if smokers quit their habit completely or even partially during 1995. The government's current taxation policy therefore bodes well for public health, public finance, and the economy.
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    Treasury's role in promoting efficient cash management : evidence from South Africa
    (1999) Maphiri, Donald; Abedian, Iraj
    This study examines the efficiency of cash management by the South African Treasury. Given the multitude of instruments used in cash management it is impossible to concentrate on all of them. This study, therefore, focuses on the cash balance and marketable securities as objects of analysis. This necessitates a thorough consideration of the operations and efficiency of the Treasury bill market. The study makes two major contributions. Firstly, it is shown that there exists a saddle point in the interactions between the Treasury and bidders in the auctions. This is Nash equilibrium, in which no party to the game has an incentive to change the strategy unilaterally, except at a loss. This is thus a Pareto efficient outcome, with both the Treasury and bidders' positions improved. It is, therefore, argued that there is scope for improving cash management and lowering costs of borrowing. It is noted, however, that there are significant improvements made in the management of the cash balance. Secondly, this paper argues against the view widely held by auction theorists that uniform-price auctions are more susceptible to manipulation and, as such, are revenue-inferior to discriminatory auctions. It demonstrates that uniform-price and discriminatory auctions are equally susceptible to manipulation and should that happen, uniform-price auctions are still revenue-superior. This result is the converse of what is generally believed and is compatible with the view held by Friedman (1960, 1991). It is also compatible with empirical evidence that has long been viewed as a puzzle. The study, however, concludes that the view held by Friedman is right, but for the wrong reasons.