CONSTITUTIONAL CHANGE AND NATURAL RESOURCE POLICY REFORM IN SOUTH AFRICA: CONDUCIVE OR OBSTRUCTIVE TO SUSTAINABLE ECONOMIC GROWTH OF AGRICULTURE

Establishment of constitutional order and a change in political power has initiated major public policy reforms. Following public consultation, policy documents have recently been published on the environment, agriculture, land, forestry and water supply. A systematic framework is presented to evaluate the expected influence of proposed policy interventions with legal and financial instruments on sustained economic growth and development. Based on past performance and measurement of multifnctor productivity of agriculture, indications are that competitiveness can be improved. Required innovations are design of institutions, application ofteclmology, training of management, local value adding and greater export orientation of agriculniral products. Policy advice by agriculnrral economists must be provided by mastering tl1e art of identifying politically relevant aspects of naniral resotirce and enviromnental problems, followed by projections of economic consequences through applied empirical research. It is concluded that as a whole the policy environment favours the creation of wealth through private enterprise