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After Apartheid: The Effects of ANC Power

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  • Poulsen, Jonas

    () (Department of Economics)

Abstract

The African National Congress (ANC) can look back on eighty years of struggle which resulted in the liberation of black Africans, the creation of a democratic constitution and free elections. However, the last twenty years of ANC rule has been criticized for the failure to bring higher living standards for the formerly oppressed. With the party's dominance and the challanges facing South Africa in mind, I estimate the effect of ANC power in municipalities on economic, social and budgetary outcomes. To estimate the causal effect of the party, this paper uses an instrumental variable approach developed by Freier & Odendahl (2012) and a regression discontinuity design. Taken together, the results point to an adverse effect of the party: less is spent on repairs and water provision which in turn may explain why ANC power seems to lower the share of individuals who have access to piped water and electricity. Further, more resources are used on municipal employees and the councillors themselves, while I find suggestive evidence of an increase in the poverty rate due to the party. Lastly, although being their major political support, we cannot conclude that the ANC affects black African's living standards. From the IV analysis, I find indications that oppositional parties many times have a more positive impact on outcomes as they gain power at the expence of the ANC.

Suggested Citation

  • Poulsen, Jonas, 2013. "After Apartheid: The Effects of ANC Power," Working Paper Series 2013:17, Uppsala University, Department of Economics.
  • Handle: RePEc:hhs:uunewp:2013_017
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    References listed on IDEAS

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    1. Fernando Ferreira & Joseph Gyourko, 2009. "Do Political Parties Matter? Evidence from U.S. Cities," The Quarterly Journal of Economics, Oxford University Press, vol. 124(1), pages 399-422.
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    3. Olle Folke, 2014. "Shades Of Brown And Green: Party Effects In Proportional Election Systems," Journal of the European Economic Association, European Economic Association, vol. 12(5), pages 1361-1395, October.
    4. Beber, Bernd & Scacco, Alexandra, 2012. "What the Numbers Say: A Digit-Based Test for Election Fraud," Political Analysis, Cambridge University Press, vol. 20(02), pages 211-234, March.
    5. Guido Imbens & Karthik Kalyanaraman, 2012. "Optimal Bandwidth Choice for the Regression Discontinuity Estimator," Review of Economic Studies, Oxford University Press, vol. 79(3), pages 933-959.
    6. Erik Meyersson, 2014. "Islamic Rule and the Empowerment of the Poor and Pious," Econometrica, Econometric Society, vol. 82(1), pages 229-269, January.
    7. Imbens, Guido W. & Lemieux, Thomas, 2008. "Regression discontinuity designs: A guide to practice," Journal of Econometrics, Elsevier, vol. 142(2), pages 615-635, February.
    8. Per Pettersson-Lidbom, 2008. "Do Parties Matter for Economic Outcomes? A Regression-Discontinuity Approach," Journal of the European Economic Association, MIT Press, vol. 6(5), pages 1037-1056, September.
    9. Brahima Coulibaly & Trevon D. Logan, 2009. "South Africa's Post-apartheid Two-Step: Social Demands versus Macro Stability," American Economic Review, American Economic Association, vol. 99(2), pages 275-281, May.
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    More about this item

    Keywords

    ANC; party effects; instrumental variable; regression discontinuity; South Africa;

    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • N47 - Economic History - - Government, War, Law, International Relations, and Regulation - - - Africa; Oceania
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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