An Analysis of the Link between Water Infrastructure Financing and Water Provision South Africa
Keywords:
Infrastructure finance; economic development; Water Infrastructure, water provision
Abstract
This paper evaluated the relationship between water infrastructure financing and water provision in South Africa. The research followed a quantitative research design; secondary data for water infrastructure financing and water provision in South Africa was obtained from the Trans - Caledon Tunneling Agency (TCTA) and the World Bank for the period 1994 - 2014 . The regression results indicated two separate findings which offers unique contribution to the current literature; results from water asset finance as a single independent variable on water provision showed a significant relationship. However, an addition of two control variables , corruption and violence, neutralised the effectiveness of water asset finance on water provision to the extent that water asset finance became less significant with a P value of 0.05. The paper makes a nuance contribution from the findings, which specifically is that finance alone may not deliver target water provision if corruption and violence is left unbridled. The paper thus recommends the need for public policy makers to control the rate of corruption and violence to enable effective application of water infrastructure finance in water provision. The paper also recommends the need for further research on other government departments to integrate corruption and violence as control variables.
Downloads
Download data is not yet available.
References
Ahmad, E., Bhattacharya, A., Vinella, A. & Xiao, K. (2015). Infrastructure Finance in the Developing World. Intergovernmental Group of Twenty- Four (G- 24). Retrieved from https://www.g24.org/wp content/uploads/2016/05/MARGGK-WP06.pdf Akhmouch, A. (2012). Water Governance in Latin America and the Caribbean: A Multi level Approach. Retrieved from http://www.dx.doi.org/10.l787/5k9crzqk3ttj - en . Alcaraz - Quiles, F. J., Navarro - Galera, A. & Ortiz - Rodriguez, D. (2014). Factors influencing the transparency of sustainability information in regional governments: an empirical study. Journal of Cleaner Production, 82, 179 - 191. Arrow, K. J. & Lind, R. C. (2014). Uncertainty and the evaluation of public investment decisions. Journal of Natural Resources Policy Research, 6(1), 29 - 44. Atkinson, M . M . & Fulton, M. (2013). Understanding Public Sector Ethics: Beyond Agency Theory in Canada's Sponsorship Scandal. International Public Management Journal, 16(3), 386 - 412. Agyapong, D. (2017). Financial sustainability and cost recovery in small towns water systems in Eastern region of Ghana. Athens Journal of Business and Economics, 3(4), 383 – 402 Box, G. E. & Tiao, G. C. (1975). Intervention analysis with applications to economic and environmental problems. Journal of the American Statistical association, 70 (349), 70 - 79. Brikké, F., Bredero, M., Supply, W. & Network, M. (2003). Linking technology choice with operation and maintenance in the context of community water supply and sanitation: A reference document for planners and project staff. Retrieved from http://www.who.int/water_sanitation_health/hygiene/om/wsh9241562153.pdf Bakker, K. (2013). Constructing 'public’ water: The World Bank, urban water supply, and the bio politics of development. Environment and Planning D: Society and Space, 31(2), 280 - 300. Biesenthal, C. & Wilden, R. (2014). Multi-level project governance: Trends and opportunities. International Journal of Project Management, 32(8), 129 1 - 1308. Blanc, E. & Strobl, E. (2014). Is small better? A comparison of the effect of large and small dams on cropland productivity in South Africa. The World Bank Economic Review, 28(3), 545 - 576. Carter, R. C., Tyrrel, S. F. & Howsam, P. (1999). The impact and sustainability of community water supply and sanitation programmes in developing countries. Water and EnvironmentJournal,13(4), 292 - 296. Chan, A. P., Lam, P. T., Wen, Y., Ameyaw, E. E., Wang, S. & Ke, Y. (2014). Cross - sectional analysis of critical risk factors for PPP water projects in China. Journal of Infrastructure Systems. Retrieved fromhttps://opus.lib.uts.edu.au/bitstream/10453/53025/1/Open%20Access%20Full%20Paper.pdf Chetty, S. & Luiz, J. M. (2014). The experience of private investment in the South African water sector: The Mbombela Concession. Development Southern Africa, 31(4), 563 - 580. Carlitz, R. D. (2017). Money flows, water trickles: Understanding patterns of decentralized water provision in Tanzania. World Development, 93 , 16 - 30. Clark, N. L. (2018). South Africa: Apartheid and post- apartheid. In The Palgrave handbook of African colonial and postcolonial history (pp. 1005 - 1029). New York, USA: Palgrave Macmillan De Asis, M. G., O'Leary, D., Ljung, P. & Butterworth, J. (2009). Integrity and Accountability in Water Supply and Sanitation: Retrieved from https://www.oecd.org/env/outreach/44475062.pdf Egan, M. (2014). Making water count: water accountability change within an Australian university. Accounting, Auditing & Accountability Journal, 27(2), 259 - 282. Estache, A., Wodon, Q. & Lomas, K. (2014). Infrastructure and Poverty in Sub - Saharan Africa. New York: Springer. Foster, V. & Briceno - Garmendia, C. (2010). Africa's Infrastructure: A Time for Transformation. Africa Development Forum. Retrieved from https://openknowledge.worldbank.org/handle/10986/2692 Gilliland, D. I. & Kim, S. K. (2014). When do incentives work in channels of distribution? Journal of the Academy of Marketing Science, 42(4), 361 - 379
Gleick, P. H. & Ajami, N. (2014). The World's Water Volume 8: The Biennial Report on Freshwater Resources (Vol. 8). Washington: Island Press. Hanjra, M. A. & Qureshi, M. E. (2010). Global water crisis and future food security in an era of climate change. Food Policy, 35(5), 365 - 377. Harrison, T. M., Guerrero, S., Burke, G. B., Cook, M., Cresswell, A., Helbig, N. & Pardo, T. (2012). Open government and e- government: democratic challenges from a public value perspective. Information Polity, 17(2), 83 - 97. Halunga, A. G., Orme, C. D. & Yamagata, T. (2017). A heteroscedasticity robust Breusch – Pagan test for Contemporaneous correlation in dynamic panel data models. Journal of Econometrics, 198(2), 209 230. Henisz, W. J., Dorobantu, S. & Nartey, J. (2014). Spinning gold: The financial returns to stakeholder engagement. Strategic ManagementJournal, 35(12), 1727 - 1748. Hiller, V. & Verdier, T. (2014). Corporate culture and identity investment in an industry equilibrium. Journal of Economic Behavior & Organisation, 103, 93 - 112. Jones, P., Hillier, D. & Comfort, D. (2015). Water stewardship and corporate sustainability: a case study of reputation management in the food and drinks industry.Journal of Public Affairs, 15 (1), 116 - 126. Kehler, J. (2013). Women and poverty: The South African experience. Journal of International Women's Studies, 3 (1), 41 - 53 . Mackintosh, G. & Colvin, C. (2003). Failure of rural schemes in South Africa to provide potable water. Environmental Geology, 44(1), 101 - 105. Marlow, D. R., Moglia, M., Cook, S. & Beale, D. J. (2013). Towards sustainable urban water management: A critical reassessment. Water research, 47(20), 7150 - 7161. Mehta, M. & Knapp, A. (2004). Challenge of financing sanitation for Meeting the Millennium Development Goals. In Challenge of financing sanitation for Meeting the Millennium Development Goals. Water and Sanitation Program. Retrieved from http://www.bvsde.paho.org/bvsacd/cd25/mehta.pdf Mostert, J. W. & van Heerden, J. H. (2015). A computable general equilibrium (CGE) analysis of the expenditure on infrastructure in the Limpopo economy in South Africa. International Advances in Economic Research , 21 (2), 227 - 236. Meth, P. (2017). Informal housing, gender, crime and violence: The role of design in Urban South Africa. The British Journal of Criminology, 57(2), 402 - 421. Ndikumana, L. & Pickbourn, L. (2017). The impact of foreign aid allocation on access to social services in sub Saharan Africa: the case of water and sanitation. World Development, 90, 104 - 114. Note, F. (2002). The National Water and Sanitation Programme in South Africa: turning the "right to water" into reality, Water and Sanitation Program. World Bank. Retrieved from http://documents.worldbank.org/curated/en/770671468777256950/pdf/266260PAPER0Eng lish0Blue0Gold0no - 08.pdf Nleya, N., Thompson, L., Tapscott, C., Piper, L. & Esau, M. (2011). Reconsidering the origins of protest in South Africa: some lessons from Cape Town and Pietennaritzburg. Africanus, 41(l), 14 - 29. Odaro, E. D. (2012). Causes of poor service delivery in Africa and their impact on development. Consilience: The Journal of Sustainable Development , 7(1), 34 - 45. Pahl -Wostl, C., Conca, K., Kramer, A., Maestu, J. & Schmidt, F. (2013). Missing links in global water governance: a processes - oriented analysis. Ecology and Society. Retrieved from http://dx.doi.org/10.5751/ES05554 - 180233 Ponterotto, J. G. (2005). Qualitative research in counselling psychology: A primer on research paradigms and philosophy of science.Journal of counselling psychology, 52(2), 126. Ranchod, N., Sheridan, C. M., Pint, N., Slatter, K. & Harding, K. G. (2015). Assessing the blue-water footprint of an opencast platinum mine in South Africa. Water SA, 41(2), 287 - 293. Reddy V. R. & Kurian M. (2015). Life - Cycle Cost Analysis of Infrastructure Projects. In: Kurian M., Ardakanian R. (eds) Governing the Nexus. Cham, Switzerland: Springer. Tropp, H. (2007). Water governance: trends and needs for new capacity development. Water Policy, 9(S2),19 30. Ruiters, C. (2013). Funding models for financing water infrastructure in South Africa: Framework and critical analysis of alternatives. Water SA, 39(2), 313 - 326.
Sanders, K. T., King, C. W., Stillwell, A. S. & Webber, M. E. (2013). Clean energy and water: assessment of Mexico for improved water services and renewable energy. Environment, development and sustainability, 15(5), 1303 - 1321. Schillemans, T. & Busuioc, M. (2015). Predicting public sector accountability: From agency drift to forum drift. Journal of Public Administration Research and Theory, 25(1), 191 - 215. Selvakumar, A. & Tafuri, A. N. (2012). Rehabilitation of aging water infrastructure systems: Key challenges and issues.Journal of Infrastructure Systems, 18(3), 202 - 209. Shah, A. (2014). Decentralized Provision of Public Infrastructure and Corruption. International Centre for Public Policy Working Paper Series 14. Andrew Young School of Policy Studies, Georgia State University.Retrieved from http://scholarworks.gsu.edu/icepp/14 Shi, A. (2000). How access to urban potable water and sewerage connections affects child mortality. Retrievedfromhttps://openknowledge.worldbank.org/bitstream/handle/10986/19856/multi_page. pdf?sequence=1 Stone, K. E. (2017). Smart Policing and the Use of Body Camera Technology: Unpacking South Africa’s Tenuous Commitment to Transparency. Policing: A Journal of Policy and Practice, 12 (1), 109 - 115. Tortajada, C. (2014). Dams: An essential component of development. Journal of Hydrologic Engineering, 20(1), 1 - 9 . Van Slyke, D. M. (2007). Agents or stewards: Using theory to understand the government non -profit social service contracting relationship . Journal of Public Administration Research and Theory, 17(2), 157 187.
Gleick, P. H. & Ajami, N. (2014). The World's Water Volume 8: The Biennial Report on Freshwater Resources (Vol. 8). Washington: Island Press. Hanjra, M. A. & Qureshi, M. E. (2010). Global water crisis and future food security in an era of climate change. Food Policy, 35(5), 365 - 377. Harrison, T. M., Guerrero, S., Burke, G. B., Cook, M., Cresswell, A., Helbig, N. & Pardo, T. (2012). Open government and e- government: democratic challenges from a public value perspective. Information Polity, 17(2), 83 - 97. Halunga, A. G., Orme, C. D. & Yamagata, T. (2017). A heteroscedasticity robust Breusch – Pagan test for Contemporaneous correlation in dynamic panel data models. Journal of Econometrics, 198(2), 209 230. Henisz, W. J., Dorobantu, S. & Nartey, J. (2014). Spinning gold: The financial returns to stakeholder engagement. Strategic ManagementJournal, 35(12), 1727 - 1748. Hiller, V. & Verdier, T. (2014). Corporate culture and identity investment in an industry equilibrium. Journal of Economic Behavior & Organisation, 103, 93 - 112. Jones, P., Hillier, D. & Comfort, D. (2015). Water stewardship and corporate sustainability: a case study of reputation management in the food and drinks industry.Journal of Public Affairs, 15 (1), 116 - 126. Kehler, J. (2013). Women and poverty: The South African experience. Journal of International Women's Studies, 3 (1), 41 - 53 . Mackintosh, G. & Colvin, C. (2003). Failure of rural schemes in South Africa to provide potable water. Environmental Geology, 44(1), 101 - 105. Marlow, D. R., Moglia, M., Cook, S. & Beale, D. J. (2013). Towards sustainable urban water management: A critical reassessment. Water research, 47(20), 7150 - 7161. Mehta, M. & Knapp, A. (2004). Challenge of financing sanitation for Meeting the Millennium Development Goals. In Challenge of financing sanitation for Meeting the Millennium Development Goals. Water and Sanitation Program. Retrieved from http://www.bvsde.paho.org/bvsacd/cd25/mehta.pdf Mostert, J. W. & van Heerden, J. H. (2015). A computable general equilibrium (CGE) analysis of the expenditure on infrastructure in the Limpopo economy in South Africa. International Advances in Economic Research , 21 (2), 227 - 236. Meth, P. (2017). Informal housing, gender, crime and violence: The role of design in Urban South Africa. The British Journal of Criminology, 57(2), 402 - 421. Ndikumana, L. & Pickbourn, L. (2017). The impact of foreign aid allocation on access to social services in sub Saharan Africa: the case of water and sanitation. World Development, 90, 104 - 114. Note, F. (2002). The National Water and Sanitation Programme in South Africa: turning the "right to water" into reality, Water and Sanitation Program. World Bank. Retrieved from http://documents.worldbank.org/curated/en/770671468777256950/pdf/266260PAPER0Eng lish0Blue0Gold0no - 08.pdf Nleya, N., Thompson, L., Tapscott, C., Piper, L. & Esau, M. (2011). Reconsidering the origins of protest in South Africa: some lessons from Cape Town and Pietennaritzburg. Africanus, 41(l), 14 - 29. Odaro, E. D. (2012). Causes of poor service delivery in Africa and their impact on development. Consilience: The Journal of Sustainable Development , 7(1), 34 - 45. Pahl -Wostl, C., Conca, K., Kramer, A., Maestu, J. & Schmidt, F. (2013). Missing links in global water governance: a processes - oriented analysis. Ecology and Society. Retrieved from http://dx.doi.org/10.5751/ES05554 - 180233 Ponterotto, J. G. (2005). Qualitative research in counselling psychology: A primer on research paradigms and philosophy of science.Journal of counselling psychology, 52(2), 126. Ranchod, N., Sheridan, C. M., Pint, N., Slatter, K. & Harding, K. G. (2015). Assessing the blue-water footprint of an opencast platinum mine in South Africa. Water SA, 41(2), 287 - 293. Reddy V. R. & Kurian M. (2015). Life - Cycle Cost Analysis of Infrastructure Projects. In: Kurian M., Ardakanian R. (eds) Governing the Nexus. Cham, Switzerland: Springer. Tropp, H. (2007). Water governance: trends and needs for new capacity development. Water Policy, 9(S2),19 30. Ruiters, C. (2013). Funding models for financing water infrastructure in South Africa: Framework and critical analysis of alternatives. Water SA, 39(2), 313 - 326.
Sanders, K. T., King, C. W., Stillwell, A. S. & Webber, M. E. (2013). Clean energy and water: assessment of Mexico for improved water services and renewable energy. Environment, development and sustainability, 15(5), 1303 - 1321. Schillemans, T. & Busuioc, M. (2015). Predicting public sector accountability: From agency drift to forum drift. Journal of Public Administration Research and Theory, 25(1), 191 - 215. Selvakumar, A. & Tafuri, A. N. (2012). Rehabilitation of aging water infrastructure systems: Key challenges and issues.Journal of Infrastructure Systems, 18(3), 202 - 209. Shah, A. (2014). Decentralized Provision of Public Infrastructure and Corruption. International Centre for Public Policy Working Paper Series 14. Andrew Young School of Policy Studies, Georgia State University.Retrieved from http://scholarworks.gsu.edu/icepp/14 Shi, A. (2000). How access to urban potable water and sewerage connections affects child mortality. Retrievedfromhttps://openknowledge.worldbank.org/bitstream/handle/10986/19856/multi_page. pdf?sequence=1 Stone, K. E. (2017). Smart Policing and the Use of Body Camera Technology: Unpacking South Africa’s Tenuous Commitment to Transparency. Policing: A Journal of Policy and Practice, 12 (1), 109 - 115. Tortajada, C. (2014). Dams: An essential component of development. Journal of Hydrologic Engineering, 20(1), 1 - 9 . Van Slyke, D. M. (2007). Agents or stewards: Using theory to understand the government non -profit social service contracting relationship . Journal of Public Administration Research and Theory, 17(2), 157 187.
Published
2018-07-19
How to Cite
Bapela, L. C., Ngwakwe, C. C., & Sebola, M. P. (2018). An Analysis of the Link between Water Infrastructure Financing and Water Provision South Africa. Journal of Economics and Behavioral Studies, 10(3(J), 74-83. https://doi.org/10.22610/jebs.v10i3.2318
Issue
Section
Research Paper
Copyright (c) 2018 Lerato C. Bapela, Collins C. Ngwakwe, Mokoko P. Sebola
This work is licensed under a Creative Commons Attribution 4.0 International License.
Author (s) should affirm that the material has not been published previously. It has not been submitted and it is not under consideration by any other journal. At the same time author (s) need to execute a publication permission agreement to assume the responsibility of the submitted content and any omissions and errors therein. After submission of a revised paper in the light of suggestions of the reviewers, editorial team edits and formats manuscripts to bring uniformity and standardization in published material.
This work will be licensed under Creative Commons Attribution 4.0 International (CC BY 4.0) and under condition of the license, users are free to read, copy, remix, transform, redistribute, download, print, search or link to the full texts of articles and even build upon their work as long as they credit the author for the original work. Moreover, as per journal policy author (s) hold and retain copyrights without any restrictions.
