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Financing the Post-apartheid City in South Africa

Author

Listed:
  • Michael E. Bell

    (Institute for Policy Studies, The Johns Hopkins University, Shriver Hall, Baltimore, MD 21218, USA)

  • Philip M. Dearborn

    (Greater Washington Research Center)

  • Roland Hunter

    (Planact)

Abstract

The recent dramatic changes in South Africa have created new opportunities for altering the country's basic political and economic institutions. Whilst much attention has been focused on the national level, another crucial strand in the reform movement has been efforts to foster truly effective non-racial local self-government which in turn need adequate own-source revenues. With the predicted increase in the urban black populations, the Black Local Authorities, which are supposed to be financially self-sufficient, will come under increasing pressure. A discriminatory electricity price system and boycotts in response to rapidly rising rents further reduce BLA income. Increasingly, BLAs are coming to rely upon user fees and charges to provide services, but unless the fee structures are carefully designed they become regressive. What is required is a single-tax-base including the local property tax and a local income or value-added tax.

Suggested Citation

  • Michael E. Bell & Philip M. Dearborn & Roland Hunter, 1993. "Financing the Post-apartheid City in South Africa," Urban Studies, Urban Studies Journal Limited, vol. 30(3), pages 581-591, April.
  • Handle: RePEc:sae:urbstu:v:30:y:1993:i:3:p:581-591
    DOI: 10.1080/00420989320080571
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    References listed on IDEAS

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    1. Inman, Robert P., 1989. "The local decision to tax : Evidence from large U.S. Cities," Regional Science and Urban Economics, Elsevier, vol. 19(3), pages 455-491, August.
    2. Robert P. Inman, 1989. "The Local Decision to Tax: Evidence from Large U.S. Cities," NBER Working Papers 2921, National Bureau of Economic Research, Inc.
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