What has trust got to do with it? Non-payment of service charges in local authorities in South Africa
A major financial problem in many municipalities in South Africa is the inadequate collection of service charges due to widespread non-payment. The prevailing view is that non-compliance is caused by poverty and the existence of an 'entitlement culture'. However, huge variations in compliance exist both within poor communities and between communities with similar socio-economic characteristics. How can these differences be explained? Moreover, what factors determine citizens' compliance? This paper argues that non-payment is not only related to inability to pay and 'a culture of entitlement', but also to whether citizens perceive the local government to act in their interest. In particular, three dimensions of trust may affect citizens' compliance: (1) trust in the local government to use revenues to provide expected services; (2) trust in the authorities to establish fair procedures for revenue collection and distribution of services; and (3) trust in other citizens to pay their share.
|Date of creation:||2003|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +47 55 57 40 00
Fax: +47 55 57 41 66
Web page: http://www.cmi.no
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Tina Søreide & Kjetil Bjorvatn, 2003. "Corruption and market reform," CMI Working Papers WP 2003:7, CMI (Chr. Michelsen Institute), Bergen, Norway.
- E. S. Lieberman, 2002. "How South African Citizens Evaluate Their Economic Obligations to the State," Journal of Development Studies, Taylor & Francis Journals, vol. 38(3), pages 37-62.
- Pranab Bardhan, 1997. "Corruption and Development: A Review of Issues," Journal of Economic Literature, American Economic Association, vol. 35(3), pages 1320-1346, September.
- Joel Slemrod, 2002. "Trust in Public Finance," NBER Working Papers 9187, National Bureau of Economic Research, Inc.
- Cowell,Frank & Gordon,James, 1987.
"Unwillingness to pay: Tax evasion and public good provision,"
Discussion Paper Serie A
142, University of Bonn, Germany.
- Cowell, Frank A. & P.F. Gordon, James, 1988. "Unwillingness to pay : Tax evasion and public good provision," Journal of Public Economics, Elsevier, vol. 36(3), pages 305-321, August.
- Sugden, Robert, 1984. "Reciprocity: The Supply of Public Goods through Voluntary Contributions," Economic Journal, Royal Economic Society, vol. 94(376), pages 772-87, December.
- Kjetil Bjorvatn & Carsten Eckel, 2003. "Winners and losers from an international investment agreement," CMI Working Papers WP 2003:11, CMI (Chr. Michelsen Institute), Bergen, Norway.
- Allingham, Michael G. & Sandmo, Agnar, 1972. "Income tax evasion: a theoretical analysis," Journal of Public Economics, Elsevier, vol. 1(3-4), pages 323-338, November.
- Andreoni, J. & Erard, B. & Feinstein, J., 1996.
9610r, Wisconsin Madison - Social Systems.
- Douglass C. North, 1996. "Where Have We Been And Where Are We Going?," Economic History 9612001, EconWPA.
- Fjeldstad, Odd-helge & Semboja, Joseph, 2001. "Why People Pay Taxes: The Case of the Development Levy in Tanzania," World Development, Elsevier, vol. 29(12), pages 2059-2074, December.
- Odd-Helge Fjeldstad, 2000. "Taxation, coercion and donors. Local government tax enforcement in Tanzania," CMI Working Papers 7, CMI (Chr. Michelsen Institute), Bergen, Norway.
- Sah, R.K., 1990.
"Social Osmosis And Patterns Of Crime: A Dynamic Economic Analysis,"
609, Yale - Economic Growth Center.
- Espen Villanger, 2003. "The effects of disasters on income mobility: Bootstrap inference and measurement error simulations," CMI Working Papers WP 2003:6, CMI (Chr. Michelsen Institute), Bergen, Norway.
- Grasmick, Harold G. & Scott, Wilbur J., 1982. "Tax evasion and mechanisms of social control: A comparison with grand and petty theft," Journal of Economic Psychology, Elsevier, vol. 2(3), pages 213-230, September.
- Wiig, Arne & Kolstad, Ivar, 2005.
"Lowering barriers to agricultural exports through technical assistance,"
Elsevier, vol. 30(2), pages 185-204, April.
- Arne Wiig & Ivar Kolstad, 2003. "Lowering barriers to agricultural exports through technical assistance," CMI Working Papers WP 2003:8, CMI (Chr. Michelsen Institute), Bergen, Norway.
- Espen Villanger, 2004.
"Company Influence on Foreign Aid Disbursement: Is Conditionality Credible when Donors Have Mixed Motives?,"
Southern Economic Journal,
Southern Economic Association, vol. 71(2), pages 334-351, October.
- Espen Villanger, 2003. "Company influence on foreign aid disbursement: Is conditionality credible when donors have mixed motives?," CMI Working Papers WP 2003:4, CMI (Chr. Michelsen Institute), Bergen, Norway.
- Jeremy Timm & Omar Jadwat & Gerd Sippel, 1998. "The Masakhane campaign: Alice and King William's Town case studies," Development Southern Africa, Taylor & Francis Journals, vol. 15(1), pages 123-131.
- Espen Villanger, 2003. "Company interests and foreign aid policy: Playing donors out against each other," CMI Working Papers WP 2003:5, CMI (Chr. Michelsen Institute), Bergen, Norway.
When requesting a correction, please mention this item's handle: RePEc:chm:wpaper:wp2003-12. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Robert Sjursen)
If references are entirely missing, you can add them using this form.