The world has seen unparalleled pressure put on the public sector to improve the speed and quality of service delivery, whilst simultaneously employing measures to cut the costs. South Africa and the Eastern Cape have not been immune to this as there have been complaints and demonstrations from various national and provincial stakeholders demanding more and improved services. The Department of Economic Development, Environmental Affairs and Tourism (DEDEAT) in particular has employed the services of public entities in its quest to realise government’s socio-economic developmental objectives and ease some of the service delivery pressures. These agencies are unfortunately struggling to deliver and the Department is unable to play the oversight role it is legislatively mandated to carry out. The main reason for this seem to be the lack of the capacity to objectively track and measure the performance of these agencies. As they say “you cannot manage what you cannot measure”. This is despite the fact that there is a shareholders’ compact and many other measures in place to enable performance monitoring. Also, the public sector is known to have inherent and unique performance management challenges like broad and vague objectives which lead to too many measurements, a propensity to focus on the “easy to measure” but often irrelevant indicators at the expense of critical outcomes and a short-term orientation that is usually fuelled by political expediency. Against this background, this study sought to make use of a comprehensive and dynamic performance monitoring framework, namely the Balanced Scorecard (BSC), to explore its potential use in assisting government to monitor the performance of public agencies, in particular the Development Finance Institutions (DFI) in South Africa. The proposed framework helps government to focus on the performance drivers of future value, and what decisions and actions are necessary to achieve critical outcomes. The aim of the study therefore is to develop an adjusted BSC framework to monitor the activities of a public sector agency and thus demonstrate how a BSC framework could be used to monitor a public agency by the government department. The study is evaluative in nature and is divided into three sections. Section one is presented as an Evaluation Report. It sets the scene, discusses briefly the key theoretical concepts, outlines the research methods used and presents the findings followed by a discussion and recommendations. Section two delves into the literature in more detail, providing a more extensive review of the literature that informed the investigation, whilst section three provides a more extensive description of the research methodology employed in the study. To achieve the aims of the study, the research drew from the work of various authors in the field including that of Bigliardi, Dormio and Galati, 2011; Bititci, Garengo, Dörfler, and Nudurupati, 2012; Julyan, 2011; Kaplan and Norton, 1992, 1993, 1996, 2001, 2004 and 2006; Niven, 2003 and 2008 and Northcott and Taulapapa, 2012. Also, five BSC perspectives - including the programme specific “equity” perspective - were used to develop an interview schedule. These were used to formulate the key performance objectives and indicators, based on the stakeholder’s responses. These respondents have experience within the programme as administrators, beneficiaries and funders. The research employed purposive sampling with semi-structured in-depth interviews and document analysis as primary and secondary instruments for data collection. In essence, five officials from the agency, one from DEDEAT and two co-operatives participated in the research. The results indicate a general appreciation of and gravitation towards outcome based measures, even though the government culture of focusing on outputs is still prevalent. The results of the study indicated that, generally, a government - public agency BSC based performance monitoring framework would have the following features:  Customer objectives and programme mission as the main goal and this will provides clarity at all levels on who the customers are and what are their primary requirements.  Clear, visible and stringent financial controls as the agency is administering public resources.  Few carefully selected processes and systems that have a direct and positive impact on the customer objectives. Deliberate and consistent efforts to promote the participation of designated groups in the economy of the country.  Comprehensive indicators on capacity building as “mission based-organisations rely heavily on skills, dedication and alignment of staff”. Overall, the study concludes that the make-up of the BSC is beneficial to the public sector and in monitoring the public sector agencies for the following reasons:  It helps the agency to focus on customers and their needs.  It forces the agency to engage and communicate strategic intention with both internal and external stakeholders and thus synchronize competing stakeholder needs.  It forces the agency to limit the number of indicators and therefore select the few value adding measures that are aligned to customer outcomes.  Through its cause and effect relationship, the agency is compelled to align all the resources, activities and processes to the main goal of the entity. All these help to minimize the principal agent problem, as the use of the BSC can bring clarity on strategy and expectations, provided it is supported with regular communication.

Thesis (MPhil) Stellenbosch University, 2014 / ENGLISH ABSTRACT: Existence of natural resources in majority of African countries has been identified to support further development due to continuously increase in commodity revenues. However, the resource curse presents critical aspects of resource intensive economies such as short-term benefits of commodity revenues, limited economic diversification and unstable government. Due to natural resource abundance in Africa, extractive industries are essential in the domestic economic system, although, the disadvantages based on the resource curse theory, question the support of commodity revenues in Africa’s development. South America views the issues of extractive industries from a different perspective by analysing the related developmental approaches namely conventional extractivism, neo-extractivism and post-extractivism. While South American countries are in different transition phases of extractivism, Africa is dominated solely by conventional extractivism. This results in varying degrees of social and environmental impacts on the African continent. However, Africa’s transition towards neo- or post-extractivism will limit the problems of the resource curse and offers a more sustainable resource management of the extractive industries. The Environmental Kuznets’ Curve (EKC) supports the principle of developed and recently industrialised countries by relying on the economic development, which will reduce environmental degradation automatically by achieving a specific turning point. The three phases of EKC can be related to different stages of economic development, as well as to the three extractivism approaches. Therefore, transitions from conventional extractivism to neo-extractivism and finally to post-extractivism have to occur to stabilise economic development and reduce environmental degradation. Within this process of transition towards more sustainable extractivism approaches, the principle of “Sustainable Structural Transformation” (SST) is applicable. SST was described in the UNCTAD report (2012) as a tool to reduce environmental impacts while continuing to provide for the demand of an increasing global population. Neo- and post-extractivism approach supports the concept of SST, which primarily emphasises more efficient technologies, new economic activities, labour productivity and regulations. The foundation of SST is based on resource decoupling in order to separate economic developmental process from natural resource extraction while minimizing environmental impacts. For the application of SST and thus for the transition of extractivism, reinvestment is essential to create a diversified economy. While reinvestment can take place in various forms, the World Bank (2011) identified three types of wealth namely natural, produced and intangible capital contributing to the total wealth of a country. However, developing countries prioritise natural wealth in comparison to other forms of wealth; therefore, reinvestment has to take place in other types of wealth namely intangible and produced wealth in order to achieve sustainable development in Africa. UNCTAD (2012) considers SST as a framework without an attempt of creating a “one-size-fits-all” solution. This understanding is crucial for the transition from one phase of extractivism to another. Depending on the context of a country, tools have to be adapted to support the needed transition. These existing differences are presented in the case studies of Nigeria and Botswana, which are two developing countries in Africa but they present different stages of extractivism and resource management. / AFRIKAANSE OPSOMMING: Daar is vasgestel dat die beskikbaarheid van natuurlike hulpbronne in ’n meerderheid van Afrikalande verdere ontwikkeling ondersteun deur ’n ononderbroke toename in grondstofinkomstes. Die hulpbronvloek wys egter kritisie aspekte van hulpbron-intensiewe ekonomieë uit. Van hierdie aspekte sluit in korttermynvoordele van grondstofinkomstes, beperkte ekonomiese diversifisering en onstabiele regerings. Weens die oorvloed van natuurlike hulpbronne in Afrika is ontginningsnywerhede onontbeerlik in die binnelandse ekonomiese stelsel, alhoewel die nadele wat deur die hulpbronvloekteorie uitgewys word die ondersteuning van grondstofinkomstes in Afrika se ontwikkeling bevraagteken. Suid-Amerika beskou die kwessie van ontginningsnywerhede vanuit ’n ander perspektief deur die verwante ontwikkelingsbenaderings, naamlik konvensionele ontginning, neo-ontginning en postontginning, te ontleed. Alhoewel Suid-Amerikaanse lande in ander oorgangsperiodes van ontginning verkeer, word Afrika slegs deur konvensionele ontginning oorheers. Dit lei tot wisselende grade van sosiale en omgewingsimpakte op die Afrika-kontinent. Afrika se oorgang na neo- en postontginning sal egter die uitdagings van hulpbronvloek beperk en bied ’n meer onderhoubare hulpbronbestuur van die ontginningsnywerhede. Die Omgewing-Kuznetskurwe (OKK) ondersteun die beginsel van ontwikkelde en onlangs geïndustrialiseerde lande. Hierdie ondersteuning geskied deur staat te maak op die ekonomiese ontwikkeling wat outomaties omgewingsagteruitgang sal verminder deur ’n spesifieke keerpunt te bereik. Die drie fases van die OKK kan met verskillende fases van ekonomiese ontwikkeling asook die drie ontginningsbenaderings verbind word. Om hierdie rede moet oorgange van konvensionele ontginning na neo-ontginning en uiteindelik postonginning plaasvind om die ekonomiese ontwikkeling te stabiliseer en die omgewingsagteruitgang te beperk. Die beginsel van “Onderhoubare Strukturele Transformasie” (OST) is veral toepaslik in die oorgangsproses na meer onderhoubare ontginningsbenaderings. Die OST is in die verslag van die Verenigde Nasies se Kongres van Handel en Ontwikkeling (VNKHEO) (2012) beskryf as ’n middel om omgewingsimpakte te beperk terwyl dit in die behoefte van ’n toenemend groeiende wêreldbevolking voorsien. Neo- en postontginningsbenaderings ondersteun die OST-konsep wat veral meer doeltreffende tegnologieë, nuwe ekonomiese aktiwiteite, arbeidsproduktiwiteit en regulasies benadruk. Vir die toepassing van OST en dus die verandering in ontginning is herbelegging noodsaaklik om ’n gediversifiseerde ekonomie te bewerkstellig. Alhoewel herbelegging op verskillende maniere kan plaasvind, het die Wêreldbank (2011) drie tipes rykdom geïdentifiseer, naamlik natuurlike, vervaardigde en ontasbare kapitaal wat tot die algehele rykdom van ’n land bydra. Ontwikkelende lande gee voorkeur aan natuurlike rykdom teenoor ander vorme van rykdom. Om hierdie rede moet herbelegging binne die ander vorme van rykdom plaasvind om onderhoubare ontwikkeling in Afrika teweeg te bring. Hierdie ander vorme van rykdom sluit ontasbare en vervaardigde rykdom in. VNKHEO (2012) beskou OST as ’n raamwerk wat nie poog om ’n “one-size-fits-all”-oplossing voort te bring nie. ’n Oorkoepelende benadering is kardinaal om die verandering in ontginning teweeg te bring. Afhangende van die konteks van ’n land moet middels aangepas word vir die nodige ondersteuning van die verandering. Hierdie bestaande verskille word in die gevallestudies van Nigerië en Botswana uitgewys. Dié twee lande dui op twee verskillende ontginningstadia en hulpbronbestuur.

This case-study establishes the influences of power-knowledge relationships on capacity-building for sustainability in the European Union Funded ‘Wild Coast Spatial Development Initiative Pilot Programme’ (EU Programme). It aims to capture the lessons learned for capacitybuilding to support nature-based tourism initiatives on the Wild Coast. The EU Programme aimed to achieve economic and social development of previously disadvantaged communities through nature-based tourism enterprises, and to develop capacity of local authorities and communities to support environmental management. The study discusses common trends in thematic categories emerging from the research data, and contextualises research findings in a broader development landscape. This study indicates that power-knowledge relations were reflected in the EU Programme’s development ideology by an exclusionary development approach, which lacked a participatory ethos. This exclusionary approach did not support an enabling environment for capacity-building. This development approach, guiding the programme conceptualization, design and implementation processes, resulted in a programme with unrealistic objectives, time-frames and resource allocations; a programme resisted by provincial and local government. The study provides a causal link between participation, programme relevance, programme ownership, commitment of stakeholders, effective management and capacity-building for sustainable programme implementation. The study argues that the underlying motivation for the exclusionary EU development ideology in the programme is driven by a risk management strategy. This approach allows the EU to hold power in the development process, whereas, an inclusionary participative development methodology would require a more in-depth negotiation with stakeholders, thereby requiring the EU to relinquish existing levels of power and control. This may increase the risk of an unexpected programme design outcome and associated exposure to financial risk. It may also have a significant financial effect on donor countries' consultancies and consultants currently driving the development industry. This study recommends an interactive-participative methodology for programme design and implementation, if an enabling environment for capacity-building is to be created. In addition, all programme stakeholders must share contractual accountability for programme outcomes. This requires a paradigm shift in the EU development ideology to an inclusionary methodology. However, this research suggests that the current EU development approach will not voluntarily change. I, therefore, argue that South Africa needs to develop a legislative framework that will guide donor-funded development programme methodology, to support an enabling environment for capacity-building.