FET PHASE OXFORD SUCCESSFUL
ECONOMICS OUP SA
Oxford Successful Economics is a popular series. It includes: updated assessments and mark allocations for Grades 10 and 11 according to the DBE’s 2017 Strengthening the CAPS circular
up-to-date case studies and examples full coverage of CAPS carefully scaffolded assessment throughout the Learner’s Book exam support built into every activity revision, practice tests and exams assessment guidance an exam section, packed with exam tips and practice papers a free resource CD, packed with useful teacher resources, with your Grade 11 and 12 Teacher’s Guide.
GRADE 10 *Learner’s Book
*Teacher’s Guide *Leerdersboek
*Onderwysersgids
GRADE 11 Learner’s Book
Teacher’s Guide Leerdersboek
Onderwysersgids
GRADE 12 *Learner’s Book
*Teacher’s Guide
978 0 19 905888 4 978 0 19 905592 0 978 0 19 599626 5 978 0 19 904604 1
978 0 19 904264 7 978 0 19 905389 6 978 0 19 599639 5 978 0 19 905804 4
978 0 19 599755 2 978 0 19 904768 0
*The full list of e-pdf titles is available in the price list.
Economics CORE CLASSROOM COURSE
Oxford Successful Economics Grade 12 Learner’s Book Secondary Catalogue 51
FET PHASE
TERM 1
Subsidies
The state pays subsidies to certain service providers: Bus companies serving commuters in poor areas where the people often live far from their places of work are subsidised. This means that the service can be provided at a lower cost to the commuters.
Water and electricity supplies are subsidised. All households receive 6 kl of water free per month, and poor households receive 50 kWh of power free per month, but the price paid after that is charged at an increasing rate.
The state pays a subsidy to all state schools to cover their running expenses. Schools in poor areas receive six times more than schools in wealthier areas. In no-fee schools, children also receive free meals.
The state pays subsidies to companies or institutions, such as to certain schools, so that their services can be more affordable to the people who use them.
to to
The state can contract private service providers such as street cleaning and security services.
Operation of state-owned entities
State-owned entities are organisations that were created by the state to undertake certain activities on its behalf.
State-owned entities are also known as parastatals, state-owned enterprises (SOEs), state-owned companies and public corporations. These cover 136 organisations of a wide variety, such as Transnet and Eskom, the Council for Medical Schemes, Film and Publications Board, Robben Island Museum and the Land Bank.
Key problems of some of the state-owned entities include the following: State-owned entities do not have the necessary ability to function efficiently because of a lack of skills, especially in management.
Privatisation has lead to problems of service delivery in some of the organisations because they have to focus on making a profit and reducing costs instead of focusing on service delivery.
Privatisation
Privatisation occurs when the state sells more than 50% of the shares of state-owned businesses to private shareholders.
Examples of state-owned businesses where privatisation occurred are Telkom, Iscor (now ArcelorMittal) and the Airports Company of South Africa. In return for paying the state for such privatised assets, the private investors sell the goods and services for a profit and so earn a return on their investment.
The advantage of privatisation is that the state gets the cash from the sale of Unit 2 Problems of public sector provisioning rovisioning 67 2013/06/25 11:55 AM
Privatisation occurs when the state sells more thanls mor 50% of the shares ofshares of
Know the difference n
the ence
state-owned businesses to private
shareholders.reholders.
ation d businesses to
Nationalisation occurs when the state takes over or buys private enterprises. This has not happened in recent years in SA.
state takes over ivate enterprises. ot happened in ars in SA.
Remember A parastatal is an
organisation that is fully or partly owned or controlled by the government.
is fully or contr ent.
Visit this website site
The following website names all the state-owned entities:
www.afribiz.info
names ities:
the state asset. Furthermore, because the property or service provider is now controlled privately, its aim is to make a profit. This encourages it to improve efficiency and to deliver a better service in order to increase profits.
The disadvantage of privatisation is that prices rise and poorer consumers
cannot afford the service. The private company may not want to provide the service for poorer consumers.
Activity 2
portfolio privatisation nationalisation commercialisation progressive accountability public–private partnerships
Investigate the causes of poor service delivery
1 Choose the correct term in the box alongside to match each definition below.
1.1 The state sells some of the shares of state-owned businesses to private shareholders
1.2 A committee of parliament that monitors the activities of each government department
1.3 Giving an account or explanation of the actions taken 1.4 When the state teams up with private businesses to provide goods and services for the public sector
1.5 When the state takes over or buys private enterprises Identify a problem in how the state charges for its services. 3 Give two advantages of privatisation. 4
2 Study the cartoon and answer the questions that follow:
(5 × 2 = 10) (8) (4)
Source: © Mgobhozi,
Independent Newspapers, 28 September 2011;
www.africartoons.com
4.1 Give a reason why the transport minister is asking for lower speeds. (2) 4.2 Identify the aspects of governance where the public wants greater action.
4.3 What is the message of the cartoon?
(8) (4)
TOTAL: 36 marks
68 Chapter 3 Macroeconomics Public sector Economics Grd12
LB.indb 68 2013/
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104 |
Page 105 |
Page 106 |
Page 107 |
Page 108 |
Page 109 |
Page 110 |
Page 111 |
Page 112 |
Page 113 |
Page 114 |
Page 115 |
Page 116 |
Page 117 |
Page 118 |
Page 119 |
Page 120 |
Page 121 |
Page 122 |
Page 123 |
Page 124 |
Page 125 |
Page 126 |
Page 127 |
Page 128 |
Page 129 |
Page 130 |
Page 131 |
Page 132
