Riglyne by die keuse van padprojekte deur die owerheid
Date
2019
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Suid-Afrikaanse Akademie vir Wetenskap en Kuns
Abstract
AFRIKAANSE OPSOMMING: Dié artikel verduidelik waarom die voorsiening van openbare paaie aan markmislukking onderhewig is, en verduidelik die redes waarom openbare paaie deur die staat voorsien word. Dié oorwegings is hoofsaaklik ekonomies van aard en word uit 'n sektorale, mikro- en makroëkonomiese oogpunt toegelig. Die bedryfseienskappe van padvervoer, teenoor dié van spoorvervoer, wat vir die stimulering van ekonomiese lewenskragtigheid bevorderlik is, word oorsigtelik verduidelik. Die staat se plig om padinfrastruktuur te voorsien bring mee dat daarvoor begroot moet word. Die artikel beskryf die situasie wanneer padowerhede reaktief die voordele van padvoorsiening moet probeer maksimeer onder die beperking van fiskale rantsoenering en 'n vaste begroting. Ten slotte word voorgestel dat padowerhede, met oordeelkundige benutting ook van leningsfondse, proaktief optree om die voordele van padvoorsiening te maksimeer deur hulle padboubegrotings as veranderlik te benader, maar onderworpe aan 'n prestasiereël.
ENGLISH ABSTRACT: This article explains why the supply of public roads may be subject to market failure; it also explains why public roads are supplied by government. The reasons are mainly economic and are explained from a sectoral, micro- and macroeconomic perspective. The article makes the point that expenditure on road construction projects injects funds into the private sector and promotes production. This, together with an increased demand for transport, can stimulate the economy. Stimulation of economic activities is associated with higher profits and personal incomes, and the resultant increase in taxes boosts government income. In this way, non-users also helpto “repay” the capital amount invested in the transport facilities that originally helped to stimulateeconomic activity. New and improved roads provide access to property, and facilitate mobility and interaction within and between areas that support economic growth and developmentpotential, which can give rise to new economic land-use patterns and the acceleration of business activities. These factors increase financial returns to investors and fixed-property owners, which in turn boost land values. The increase in taxable-land values leads to an increase in the revenue of local authoritiesfrom property tax. As a result, local authorities may have morefunds available to maintain the local road networks that stimulated the increase in tax revenue intheir jurisdictions. The operational characteristics of road transport that are conducive to the stimulation of economicactivity are identified and described. It was found that road transport infrastructure and services can serve as mechanisms to gain access to economic activities; trigger economic development; accelerate economic growth; and serve as a catalyst to equalisethe distribution of wealth. The article explains how the achievement of sectoral and microeconomic benefits by economically justified roads leads to the attainment of macroeconomic goals. Government’s obligation to supply public roads necessitates proper planning and budget-ing for such roads. The article describes the situation where road authorities have to endeav-our reactively to maximise the benefits of road provision when they are restricted by a rationed and fixed budget. Lastly, in order to mitigate the effects of government economic failure, it is proposed that road authorities act proactively, through judicious use of loan funds, to maximise the benefits of road provision by treating their road budgets as variable, but subject to a per-formance rule.
ENGLISH ABSTRACT: This article explains why the supply of public roads may be subject to market failure; it also explains why public roads are supplied by government. The reasons are mainly economic and are explained from a sectoral, micro- and macroeconomic perspective. The article makes the point that expenditure on road construction projects injects funds into the private sector and promotes production. This, together with an increased demand for transport, can stimulate the economy. Stimulation of economic activities is associated with higher profits and personal incomes, and the resultant increase in taxes boosts government income. In this way, non-users also helpto “repay” the capital amount invested in the transport facilities that originally helped to stimulateeconomic activity. New and improved roads provide access to property, and facilitate mobility and interaction within and between areas that support economic growth and developmentpotential, which can give rise to new economic land-use patterns and the acceleration of business activities. These factors increase financial returns to investors and fixed-property owners, which in turn boost land values. The increase in taxable-land values leads to an increase in the revenue of local authoritiesfrom property tax. As a result, local authorities may have morefunds available to maintain the local road networks that stimulated the increase in tax revenue intheir jurisdictions. The operational characteristics of road transport that are conducive to the stimulation of economicactivity are identified and described. It was found that road transport infrastructure and services can serve as mechanisms to gain access to economic activities; trigger economic development; accelerate economic growth; and serve as a catalyst to equalisethe distribution of wealth. The article explains how the achievement of sectoral and microeconomic benefits by economically justified roads leads to the attainment of macroeconomic goals. Government’s obligation to supply public roads necessitates proper planning and budget-ing for such roads. The article describes the situation where road authorities have to endeav-our reactively to maximise the benefits of road provision when they are restricted by a rationed and fixed budget. Lastly, in order to mitigate the effects of government economic failure, it is proposed that road authorities act proactively, through judicious use of loan funds, to maximise the benefits of road provision by treating their road budgets as variable, but subject to a per-formance rule.
Description
CITATION: Pienaar, W. 2019. Riglyne by die keuse van padprojekte deur die owerheid. Tydskrif vir Geesteswetenskappe, 59(1):126-141, doi:10.17159/2224-7912/2019/v59n1a9.
The original publication is available at http://www.scielo.org.za
The original publication is available at http://www.scielo.org.za
Keywords
Public roads, Cost-benefit analysis, Value analysis (Cost control), Construction of roads
Citation
Pienaar, W. 2019. Riglyne by die keuse van padprojekte deur die owerheid. Tydskrif vir Geesteswetenskappe, 59(1):126-141, doi:10.17159/2224-7912/2019/v59n1a9.