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SACU Revenue Sharing Formula: Towards a Developmental Agreement

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dc.contributor.author Grynberg, Roman
dc.contributor.author Motswapong, Masedi
dc.date.accessioned 2021-06-08T09:34:38Z
dc.date.available 2021-06-08T09:34:38Z
dc.date.issued 2012-07
dc.identifier.isbn 99912-65-43-0
dc.identifier.uri http://knowledge.bidpa.bw:8080/xmlui/handle/123456789/77
dc.description.abstract The South African Customs Union (SACU) Revenue Sharing Formula (RSF) has been revised substantively twice; once in 1969 and in 1994-2002 since the creation of the customs union in 1910 and each time the changes in the treaty were a reflection of the historic changes occurring in Southern Africa. The apartheid regime created a RSF that served to increase the share of revenue of Botswana, Lesotho and Swaziland (BLS), leaving the South African share as a residual of revenues. As this made South Africa a residual claimant it was unsustainable and required reform in the post-apartheid era. The 2002 formula increased the share to the Botswana, Lesotho, Namibia and Swaziland (BNLS) and removed South Africa as a residual claimant but did not change the fundamental economic relationship between members. While the International Monetary Fund (IMF) supports orthodox fiscal adjustment imbalances this paper argues that the order of magnitude makes those adjustment implausible and a new political arrangement is needed between South Africa and Lesotho and Swaziland to create a viable way forward for Southern African Development Community (SADC). It is argued that even in the case of Botswana and Namibia a new developmental formula, based on investing SACU revenues for regional and national development projects is needed to relieve those countries that have suffered the effects of polarization. en_US
dc.language.iso en en_US
dc.publisher Botswana Institute for Development Policy Analysis(BIDPA) en_US
dc.relation.ispartofseries BIDPA Working Paper;32
dc.subject Southern African Customs Union en_US
dc.subject Revenue Sharing en_US
dc.subject Formula en_US
dc.title SACU Revenue Sharing Formula: Towards a Developmental Agreement en_US
dc.title.alternative BIDPA Working Paper 32 en_US
dc.type Working Paper en_US


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