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Political environment
The political environment affects almost every facet of public administration since these are influenced, directly or indirectly, by factors such as the system of government, a constitution, a bill of rights, the nature, promulgation and implementation of the law (Van der Waldt and Du Toit, 2007:104). Even the legislature operates a political environment and will be affected by the political environment of the country.
Public administration functions in a political milieu, which means that all actions of public managers are directed by the requirements of political authority (Bayat and Meyer, 1985:58). Some requirements come from the legislature and the legislature is there to ensure accountability and responsibility. According to Van der Waldt and Du Toit (2007:104), the political environment is probably the most unpredictable environment and, therefore, the most difficult to scan. The responsibility of public managers lies in determining what the views of the political authority are and respecting these views, as well as in anticipating the regulating influence of the political environment. The legislature therefore fulfils an important role here, which is a political oversight role to enforce policies in an effort to ensure public financial accountability and responsibility.
Social environment
The social environment involves the nature, quantity and distribution of human resources. It relates to the class structure and mobility, social roles and nature of social organisation and the development of social institutions. The social environment fulfils an important role in government actions and administrative processes, because any government activities have a direct impact on people (Fox et al. 1991:20). Therefore, it is important for any government to manage its resources effectively in order to deal with any social challenges. Without resources such as finance, government will not meet its social challenges. Effective and efficient public finance is necessary to ensure public financial accountability and responsibility and as a result social challenges will be resolved.
Many countries face social issues such as, population growth, urbanisation and housing, HIV and Aids and health services to mention but a few. These social issues have a direct influence on the economy. Government and thus public managers may be expected to meet certain requirements in terms of social responsibility.
Economic environment
The concept of economics refers to the study of how people earn their daily bread (Heilbroner, 1970:2). It is also referred to as the science dealing with the production and distribution of material wealth (Oxford English Dictionary, 1969:34). Hodge and Anthony (1984:205) state that the economic system of a society is the way in which the society creates and distributes wealth. It is also the system which allocates scarce resources to competing individuals and groups.
The issue of how to create and distribute material wealth led to the development of different economic systems. Economic idea, philosophy and ideology provide a basis for international and national economic structures and processes. Economic variables such as the business cycle, inflation and the recession influence the demand for goods and services, as consumers are repeatedly forced to reconsider their priorities. There is a government reaction to every significant economic change. In view of the above, it is necessary to note that the economy, like any other environmental component, will have an impact on the activities of government. International economic bodies such as the International Monetary Fund and the World Bank also have wide ranging influence on national economies. The legislature must also take note of these international bodies and understand their impact on government. Therefore, the legislature is responsible to improve economic development since a country is as strong as its economy.
CHAPTER 1: RESEARCH PROBLEM AND RESEARCH DESIGN
1.1 INTRODUCTION
1.2. PROBLEM STATEMENT
1.3 RESEARCH QUESTION
1.4 RESEARCH OBJECTIVES
1.5 RESEARCH SCOPE
1.6 RESEARCH METHODS
1.7 DATA AND INFORMATION COLLECTION AND ANALYSIS FOR THE STUDY
1.8 SIGNIFICANCE OF THE STUDY
1.9 LIMITATIONS
1.10 STRUCTURE OF THE RESEARCH PROJECT
1.11 CONCLUSION
CHAPTER 2: PUBLIC ADMINISTRATION: THEORY AND PRACTICE
2.1 INTRODUCTION
2.2 DEFINING PUBLIC ADMINISTRATION
2.3 DEVELOPMENT OF PUBLIC ADMINISTRATION
2.4 PUBLIC MANAGEMENT VERSUS PUBLIC ADMINISTRATION
2.5 ADMINISTRATIVE FUNCTIONS OF PUBLIC ADMINISTRATION
2.6 ROLE AND PURPOSE OF THE STATE
2.7 THE ENVIRONMENT OF PUBLIC ADMINISTRATION
2.8 NEW APPROACH TO PUBLIC ADMINISTRATION
2.9 DEVELOPMENT OF PUBLIC ADMINISTRATION IN SOUTH AFRICA
2.10 CONCLUSION
CHAPTER 3: INTERNATIONAL PERSPECTIVE ON PUBLIC FINANCE
3.1 INTRODUCTION
3.2 NEW ZEALAND PUBLIC FINANCE
3.3 AUSTRALIAN PUBLIC FINANCE
3.4 CANADIAN PUBLIC FINANCE
3.5 CONCLUSION
CHAPTER 4: PUBLIC FINANCIAL MANAGEMENT
4.1 INTRODUCTION
4.2 SOUTH AFRICAN PUBLIC FINANCIAL MANAGEMENT
4.3 The National Treasury
4.4 PUBLIC FINANCIAL MANAGEMENT ACT
4.5 FISCAL POLICY FRAMEWORK
4.6 FINANCIAL AND FISCAL COMMISSION
4.7 BUDGET: THEORETICAL AND ANALYTICAL OUTLINE
4.8 MEDIUM-TERM EXPENDITURE FRAMEWORK
4.9 BUDGET REVIEW AND MEDIUM-TERM BUDGET POLICY STATEMENT
4.10 PROCUREMENT AND ITS DEVELOPMENT
4.11 CONCLUSION
CHAPTER 5: PUBLIC FINANCE AND GOVERNANCE
5.1 INTRODUCTION
5.2 GOVERNANCE DEFINED
5.3 ACCOUNTABILITY AND RESPONSIBILITY AS GOVERNANCE PRINCIPLES
5.4 EVOLUTION AND PRACTICE OF ACCOUNTABILITY
5.5 ACCOUNTABILITY IN THE SOUTH AFRICAN PUBLIC SECTOR
5.6 ACCOUNTABILITY REFORM IN SOUTH AFRICAN PUBLIC FINANCE
5.7 PUBLIC FINANCIAL MANAGEMENT AND ACCOUNTABILITY
5.8 ETHICS AND GOVERNANCE IN THE PUBLIC SECTOR
5.9 CONCLUSION
CHAPTER 6: CONCEPTUAL ANALYSIS OF THE SOUTH AFRICAN LEGISLATIVE BODIES
6.1 INTRODUCTION
6.2 LEGISLATIVE INSTITUTIONS AND FUNCTIONS
6.3 Parliament
6.4 PUBLIC ACCOUNTS COMMITTEE
6.5 THE PUBLIC SERVICE COMMISSION
6.6 PERFORMANCE MANAGEMENT AS MECHANISM FOR RESPONSIBILITY AND ACCOUNTABILITY
6.7 CONCLUSION
CHAPTER 7: CONCLUSION AND RECOMMENDATIONS
7.1 CONCLUSION
7.2 RECOMMENDATIONS
REFERENCES
