LOCAL GOVERNMENTS
BRIAN KANTOR: Keeping the wealthy happy will improve lives of the poor
Cape Town shows resources critical for faster growth are the skills, enterprise and wealth embodied in high-income earners, writes Brian Kantor
The success the governments of the Western Cape have had in competing for resources with the rest of SA is evident in the building activity under way in the more expensive parts of the region. Many ordinarily valuable buildings are clearly worth more dead than alive. That is, they are worth demolishing so they can be replaced by more valuable structures. The demand for these expensive new residential structures has come mostly from migrants from other parts of SA, where local government has proved much less competent in delivering services essential to quality of life. These include waste removal, water and electricity supplies, easy access to homes, work and recreation as well as protection against fire, noise and criminals. The more valuable the stock of buildings, the larger the tax base upon which the local authority can draw to fund service delivery, also in the more deprived areas.Moreover, revenues can be used to justify the raising of debt to fund a large capital expenditure...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.