FINANCING THE POSTAPARTHEID CITY IN SOUTH-AFRICA

The recent dramatic changes in South Africa have created new opportuni ties for altering the country's basic political and economic instituti ons. Whilst much attention has been focused on the national level, ano ther crucial strand in the reform movement has been efforts to foster truly effective non-racial local self-government which in turn need ad equate own-source revenues. With the predicted increase in the urban b lack populations, the Black Local Authorities, which are supposed to b e financially self-sufficient, will come under increasing pressure. A discriminatory electricity price system and boycotts in response to ra pidly rising rents further reduce BLA income. Increasingly, BLAs are c oming to rely upon user fees and charges to provide services, but unle ss the fee structures are carefully designed they become regressive. W hat is required is a single-tax-base including the local property tax and a local income or value-added tax.