On the impact of provincial development policies in South Africa

Fabio Santeramo and Lerato Phali

No 2023/32, RSCAS Working Papers from European University Institute

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.

Keywords: Provincial Development and Growth Strategies; Provincial Poverty Reduction Strategies; development indicators; Difference-in-Differences; Roll-out-of program approach (search for similar items in EconPapers)
JEL-codes: O12 O38 Q18 (search for similar items in EconPapers)
Date: 2023-04
New Economics Papers: this item is included in nep-dev
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Related works:
Journal Article: On the impact of provincial development policies in South Africa (2023)
Working Paper: On the impact of provincial development policies in South Africa (2023)
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