Institutional statism: an overview of the formulation of the taxi recapitalisation policy

Abstract

This article provides an overview of the government’s formulation of the taxi recapitalisation policy which is aimed at regulating the minibus taxi industry. Coupled with a brief social and politico-historical context of the policy, the aim is to highlight the government’s statist conduct in the formulation of the recapitalisation policy. The minibus taxi industry started to fulfil a prominent role in the 1970s as a result of a loophole in the legislation of the former apartheid government. It is currently the most accessible mode of public transport and conveys 65 per cent of the country’s commuters daily. Consequently, the Industry is an imperative force to be considered by the government in its formulation of transport policies. However, the industry is characterised by numerous problems, including a high rate of minibus taxis involved in accidents, unroadworthy vehicles and violence. It is in this context that the government formulated both the original and revised versions of the recapitalisation policy. However, the formulation of the policy has been problematic. The government followed a statist approach during the formulation process when it directed the course of the process according to its interests and without adequate consultation with relevant role players.