The Economy
Government
Week 2-3
EMS
Grade 8
Government
• The government is a group of people who manage and
control a country
• The government constructs policy and legislation
• The government is elected through a democratic
process
• The government acts on behalf of its citizens to protect
its people, enforce laws and provide goods and services
• Main goals of government are to grow the economy,
reduce inequality, prevent monopolies forming, ensure
a stable exchange rate and sufficient functioning market
system, fair re-distribution of resources
• Parliament consists of two Houses called the National
Assembly and National Council of Provinces (NCOP).
Each House has its own distinct role and functions, as
set out in the Constitution
• The economy is made up of government and parastatals
(State owned enterprises/businesses)
Levels of Government
• In South Africa, there are three levels of government:
• Local government – Deal with local matters in a town or
municipality, for example traffic control and refuse removal.
Municipalities provide services for the local community, and
promote social and economic development. Local government
laws are called bylaws
• Regional government - Deals with matters concerning the region
or province, for example, housing and education. There are nine
provincial governments and each one is responsible for their own
matters and have their own laws and policies but are bound by
laws made by national government
• National government – creates policy and legislation affecting
the country as a whole
State Owned Enterprises (Parastatals)
• State Owned Enterprises (Parastatals) are
businesses that are controlled by the
government.
• For example:
• SABC
• Eskom
• Telkom
• SAA
• Transnet
• Denel
Different Levels of
Government in Respect of
Households in the use of
Resources and Services
• The government provides the
following public goods and
services:
• Education
• Healthcare
• Housing
• Roads
• Electricity
• Water
• Sewerage
• Refuse removal
• Police force and judicial
system
• National defense force
Funding Public
Goods and Services
• Tax is charged to
households to pay for
goods and services in
different forms:
• Income tax
• Consumption tax
• Excise tax
Government and
Business
• Government provides the
resources and services to
business including:
• Infrastructure
• Support and advice
• Subsidies and Incentives
(DTI)
• Judicial system
• Collection of taxes from
business
Role of the Public Sector
• The public sector is the part of the economy composed of
both public services and public enterprises
• It represents the diverse backgrounds and needs of the
South African people
• To lead transformation
• Ensure economic laws benefit all the people of the country
• To provide and improve operations and delivery of goods
and services
• Watch the video:
https://www.youtube.com/watch?v=Dcm4MaA8hfo