Question 1 (100 Marks)

At least four major causes of government failures may be identified:

1. Self-seeking and calculating politicians and other actors, who form coalitions to control allocation of resources in accordance with their own narrow interests.

2. Corrupt behaviour amongst politicians and government officials.

3. Lack of absence of competent administrators with the necessary understanding of economics, and business operations.

4. General lack of knowledge about the private sector and its way of functioning.

The above four factors and conditions is the essence of the issue as concerns politicians and the public bureaucracy at national, provincial, and local levels of government. This would include the state enterprises on the brink of collapse of the state machinery, thus contributing to a lack of service delivery, massive unemployment, a breakdown in public sector and political ethics, poor economic growth and increased poverty. Ultimately, the result would be the collapse of the state which could lead to divestiture in South Africa, and political instability.

Critically discuss the above statement. Your discussion should demonstrate a detailed application of relevant theories/models and ought to follow the following structure to include:
1 Introduction and background

2 Discussion of terms and learnt theory

3 Students’ observations

4 Conclusions and recommendations

Answer on the Above Questions on Government Failure Impact

Answer 1: Introduction and background

Government failure is one of the major problems worldwide and there are many reasons that lead to the failure of government. In the context of South Africa, there are many causes of government failures identified including corrupt behaviour among politicians, lack of competent administrators, lack of knowledge and many more.


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