Government & Economics Summary

Government Definitions

  • Government: A group of people who set policies and make laws to control how a country operates.

  • Democracy: A system of government where all the people of the country can vote for who they want to be in Parliament.

  • Governments administer the State using money to ensure:

    • The State runs efficiently.

    • Citizens obey the State's laws.

    • Citizens get the services and infrastructure they need.

    • Help the economy to grow.

Levels of Government in South Africa

  • South Africa has three levels of government:

    • National government

    • Provincial government

    • Local government

National Government

  • Includes the National Assembly, which has three branches:

    • Legislative Branch: Makes the laws of the country and consists of the SA Parliament.

    • Executive Branch: Leads/runs the country and consists of the President, Deputy President, and cabinet ministers.

    • Judicial Branch: Ensures that justice is served if people break laws and consists of the Constitutional Court, the Supreme Court, the High Court, and the Magistrates Courts.

  • The National Council of Provinces (NCOP) is another part of the national government.

    • Each of the nine provincial governments reports back to the NCOP.

Provincial Government

  • Each of the nine provinces has its own government called the provincial government.

    • Each province has its own Premier - Political head of Provincial Government

  • Provincial governments are bound by laws and policies passed at the national level but can develop their own laws and policies within this framework to suit their specific needs.

Local Government

  • Municipality: A district, town, or city with a local government.

    • Each province is divided into municipalities to make the job of governing the province easier.

  • The objectives of municipalities are:

    • Provide a democratic and accountable government for local communities.

    • Ensure that services are provided to communities.

    • Promote social and economic development.

Roles of Different Levels of Government

  • Money moves through the economy when households sell their labor to businesses, and businesses pay money to households in the form of salaries and wages.

  • Households are producers because they sell their labor.

  • Households are consumers because they buy products.

  • Businesses are producers because they produce goods/services to sell.

  • Businesses are consumers because they buy labor.

  • Households spend money on government services.

  • Businesses earn money from households.

  • National government gives money to provincial and local governments to provide services to households.

  • Households pay taxes to the national government.

Government's Role in Business

  • Businesses employ members of households and pay them salaries or wages, which means that they are able to pay taxes to the national government.

  • Businesses also pay taxes to the national government.

  • Businesses use or consume the services that provincial or local governments provide, e.g., electricity or water.

  • National government gives more money to provincial and local governments, which provide more services to businesses and households.

  • Businesses pay taxes to the national government, employ members of households, and use government services and resources.

  • More people from households pay more tax to the national government.

  • Businesses grow in a strong economy, paying more taxes to the national government and employing more people from households.

  • National government regulates how businesses work, strengthening the economy.

GNU (Government of National Unity)

  • Formed when the leading party doesn't have more than 50% of the votes.

  • Made up of different parties (e.g., ANC, DA).

Leaders of Parties in SA Parliament

  • ANC (African National Congress): Mr. Cyril Ramaphosa (GNU)

  • DA (Democratic Alliance): Mr. John Steenhuisen (GNU)

  • MK (uMkhonto we Sizwe): Mr. Jacob Zuma (Opp)

  • EFF (Economic Freedom Fighters): Mr. Julius Malema (Opp)

Key People in Government

  • National Government

    • President: Mr. Cyril Ramaphosa (ANC)

    • Deputy President: Mr. Paul Mashatile (ANC)

    • Minister of Finance: Mr. Enoch Godongwana (ANC)

    • Minister of Basic Education: Ms. Siviwe Gwarube (PA)

  • Provincial Government

    • Premier of the Western Cape: Mr. Alan Winde (DA)

  • Local Government

    • Mayor of Cape Town: Mr. Geordin Hill-Lewis (DA)