Chapter 1 - Government's involvement in the economy Flashcards
What is a Government?
A Group of people who create and implement laws to deal with political, legal and economic issues in a country
What is the supreme law of South Africa?
The Constitution of South Africa
What is the Constitution?
It defines the structure of government
It provides legal framework of all activities in the country by giving citizens certain rights, but stresses certain responsibilities
Who protects the rights of citizens?
Government
How does Government come to be in power?
Election or Coup (overthoughting)
How does an democratic election work?
Voters (18year or older) vote during a general election (every 5 years) for the political party of their choice
On what 3 levels does SA government work?
1.National level - Parliament (President & ministers)
2.Provincial level - Premiers of Provinces & MECs (Members of Executive Councils)
3.Local level - Municipalities
What are the 3 branches of National Government?
- Legislative branch
- Executive branch
- Judicial Branch
What is the function of the Legislative branch?
Where all laws are debated formulated and passed
What is the function of the Executive branch?
They implement the laws and in doing so carries out duties delegated to them by The President
Examples of Executive branch?
Minister of Education - Oversees all Activities related to education
Minister of Finance - Drafts National budget, ensure all departments stay withing allocated budget
Minister of Transport - Ensure public transport system in SA are sufficient to meet need needs of public and business sectors
What is the function of the Judicial branch?
Includes the courts where decisions are make according to the prescription of the law
What is the hierarchy of the 4 court of South Africa?
- Constitutional court
- Supreme court of Appeal
- High court
- Magistrate court
Explain Provincial Government?
- 9 Provincial governments, 1 for each province of SA
- 1 Premier per province
- Provincial Legislator is responsible for budget approval
- Provincial Government has to develop a Provincial Growth and Development Strategy (PGDS)
- Premier responsible for appointing a MECs (Members of the Executive Council) they head departments in provincial government
Name the 13 Provincial Departments?
- Agriculture & Rural Development
2.Community Safety - Cooperative Governance & Traditional Affairs
- Economic Development
- Education
- Finance
- Health
- Human Settlement
- Infrastructure
- Provincial Treasury
- Roads & Transport
- Social Development
- Sport, Art, Culture and Recreation
Explain Local Government?
- Each province is sub-divided into local governments or municipalities with a municipal council in charge of each
- The mayor will be in charge of council
- Municipal council will have both legislative authorities (power to make by-laws) and executive authorities (power to implement those laws)
- Council will oversee functioning of municipalities, monitor the execution of the budget
List the functions of Municipalities (Local Government)?
- Electricity Delivery
- Refuse Removal
- Municipal Roads
- Parks & Recreation
- Water Delivery
- Firefighting Services
- Decisions about land use
- Sewage & sanitation
- Municipal Health services
- Street Trading
- Local Tourism
- Storm Water Systems
- Libraries
- Municipal public transport
- Abattoirs & fresh produce markets
What are the basic functions of Government?
- Maintain internal and external security
- Social welfare
- Laws regarding commercial activities
- Administration of Public services
- Protect national resources
- Control the money in circulation & the banking industry in the country
Government has to maintain internal & external security:
- Deference force (army/navy) will protect the country from external threats
- Police will protect against internal threats (burglaries, hijacking, violence, white-collar crimes like fraud)
- Judicial system (courts) will prosecute offenders and lock them up
Social welfare:
- Examples: education & health services
- Some provided by private sector (Private schools, doctors, hospital) expensive to afford
- Government uses tax money to provide these services
- Social benefits like unemployment benefits and pensions
Laws regarding commercial activities:
- SA has a mixed market economy, means combination of free market and Government interference
- Free-market means anybody may start a business with aim of making profit (not selling illegal)
- Government has a responsibility to promote free-market to ensure
- Economy functions well enough for job creation to increase
- Citizens are not exploited by companies forming a monopoly
- Employees are treated fairly
BCEA (Basic Conditions of Employment ACT) - Government may change laws
- Previously needed trading Licenses
*Closed at 13h00 Saturday
*No Alcohol on Sundays
Administration of Public services:
Public services render is called infrastructure
No infrastructure no economy
Private entrepreneur not interested - expensive and no profit
Government may start up and the privatize later
Examples: Sewage, garbage removal, maintenance of public spaces like parks
The state has to protect natural resources?
If use irresponsible economy will be harmed in the long run
It includes: minerals, forests, fresh water, fishing, wild life
How doe government protect natural resources?
Granting licenses/quotas to fishing
Illegal to remove plants without permits
Illegal to have certain plants in your garden (alien/invaders)
State has to control the money in circulation and the banking industry in the country:
Too much money in circulation will cause inflation & devalue the currency
The government uses the South African Reserve Bank (SARB) to control:
* the amount of money in circulation
* the activities of all commercial banks
Name some commercial banks in South Africa?
ABSA
Nedbank
FNB
Standard Bank
Capitec
Government as a producer
Produced good and services:
Refuse removal
Maintain Park
Police/Defense force
Court and jails
Public libraries
public swimming pools
Schools
Doctors & hospitals
Where does Government get money to render all the services to citizens of the country?
1.Income tax (Individuals taxed on income, business taxed on profit)
2. VAT Value Added Tax (on products bought)
3. No VAT on diesel but a Levy
4. Charge for sue of public facilities
Public pool/ Library
School Fees
