Imagine the Western Cape with federalism: Prosperity through autonomy – Woode-Smith

Imagine a Western Cape empowered by federalism, unshackled from the constraints of centralised governance. Boasting economic growth and effective partnerships, it stands as a beacon amidst South Africa’s challenges. Yet, hindered by unfair budget allocations and centralised control, its potential remains untapped. With greater autonomy, it could revolutionise law enforcement, infrastructure, and economic policy, setting an example for a federal South Africa where provinces thrive independently, fostering accountability and prosperity nationwide.

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By Nicholas Woode-Smith*

Imagine the Western Cape With Federalism

The Western Cape is a beacon of good governance, functional infrastructure, and economic growth in the rapidly deindustrialising, corrupt cesspool that is the ANC governed South Africa. Yet, things could be much better.

As of 2022, the Western Cape has risen to become South Africa’s 3rd most populous province, boasting 7.4 million inhabitants. This is as a result of a huge influx of people from other South African provinces seeking a better life.

The Western Cape is attractive to them not just because of its natural beauty, but because it is the only province boasting some semblance of good governance, utilising partnerships between the public and private sector to boost economic growth and embracing policies that have netted around 239 000 jobs between 2019 to 2023 – the fastest job growth in the country.

Yet, despite all that the Western Cape has going for it, it is still held back by national policy, and vindictive treatment by the central government. Despite being the 3rd most populous province, the Western Cape is only assigned the 5th largest share of the national budget. This has left the ruling Democratic Alliance (DA) and its premier Alan Winde scraping to ensure that it can fund the Western Cape’s rapidly growing population.

Alan Winde is seeking to dispute this unfair allocation, demanding a fairer share. This will be the second formal dispute he’s made to the Treasury. He estimates that over the next three years, the Western Cape will be shortchanged a further R380 million.

On top of this unfair funding, whereby Western Cape taxpayers pay far more to the central government than they get out of it, the local government is still beholden to the national government for many essential functions.

The Western Cape desperately need control over its harbour, which is being run into the ground by Transnet – a national government parastatal. Further, it needs to gain control over local railways to ensure a smooth public transport system. It would also benefit the province to be able to issue its own visas, as a corrupt and inefficient home affairs has restricted tourism and the Western Cape’s economy by frequently failing to issue sufficient visas to tourists.

Above all this, the Western Cape needs control over its own police force, as SAPS has failed repeatedly in its mandate to assuage the scourge of crime.

Imagine if the Western Cape had more autonomy

If the Western Cape could seize more autonomy from the national government, we could easily see it becoming even better.

A local police force could be manned with effectively trained and accountable police, much like the already well-performing Cape Town Metro Police. This police service could use intensive and focused task forces to address gangsterism in the Cape Flats, and target violent criminals that SAPS has been too afraid or apathetic to take down.

With the harbours under provincial control, and preferably privatised, institutions with the incentive to make them perform better will ensure they become world class ports. This will help not only global shipping but also create many more jobs.

Railways will be able to be cleaned up and put back to use, ferrying Western Cape residents effectively with little cost. Not to mention the benefits to logistics as freight rails deliver goods across the continent and country, while giving our roads a break from the strain of heavy trucking.

With the Western Cape able to issue visas, more tourists will be able to visit, and bring wealth to South Africans. Not to mention that the Western Cape’s visa issuance will probably be less corrupt and more efficient than South Africa’s.

On top of this, an autonomous Western Cape in a federal South Africa will be able to deregulate and do away with damaging national legislation. BEE actively causes the destruction of this country’s economy, causing unemployment and rampant corruption.

The Western Cape will be able to do away with this neo-Apartheid legislation and embrace a deracialised, deregulated economic policy that enables job creation and wealth creation for not just local residents – but for all South Africans, as the success of one province feeds into that of all.

Better under Federalism

The Western Cape has already proven what a little independence from the rot of central government can get you. Imagine every province if it was governed autonomously under a federal system.

Without incompetent central control, every province could embrace policies that suit their individual needs. They could utilise local law enforcement, broken away from the corrupt chain of national command, to target criminal syndicates. They could focus on fixing local infrastructure and benefiting their residents.

The fact of the matter is that local governments are more accountable to local citizens. And if we want to see politicians do better, we need to give power and responsibility to provinces and municipalities. Which means embracing a federal system across the country. After that, it won’t only be the Western Cape doing better. All of South Africa will perform better.

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*Nicholas Woode-Smith is an Associate at the Free Market Foundation and Western Cape coordinator of the FMF Campaign for Home Rule.

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