Investigating the factors that constrain the Effectiveness of fiscal policy in Namibia
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Date
2020
Authors
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Publisher
University of Namibia
Abstract
This study investigated the factors that constrain the effectiveness of fiscal policy in
Namibia. The research primarily aimed at identifying economic, social and political
factors that constrain the effectiveness of fiscal policy in Namibia. The study employed
a quantitative research approach, of a descriptive design. A structured questionnaire
was administered to a sample of 81 respondents purposively selected. In this study, a
set of social, political and economic factors were found to highly contribute to the
ineffectiveness of fiscal policy in Namibia. On social factors, community participation,
demographic characteristics, transparency and accountability, and cultural beliefs
were identified as factors that constrain the effectiveness of fiscal policy. The survey
results showed that insufficient resources, weakly prioritized expenditures, large debt
stock, ineffective institutional framework, and poor capacities of the budgeting process
were the most economic factors that constrain fiscal policy effectiveness. Meanwhile,
89% of the total respondents agreed that lack of political will, cabinet size, overlapping
roles between institutions and lack of or slow decentralisation were political factors
that inhibit the effectiveness of fiscal policy in Namibia. Furthermore, 100% of the
respondents emphatically rejected the proposition that fiscal policy is ineffective due
to lack of resources. From the results, it was concluded that the continued per i tence
of fiscal policy ineffectiveness will continue to yield high levels of poverty,
unemployment, and regionally unbalanced development and therefore can re ult in
increased concern as to the degree of adherence to sound economic principles in the
formulation and implementation of the country's fiscal policy. The research
recommended coherence between the central government offices and agencies. This is
expected to result in less government bailouts and the revenue which would otherwise
have been used for bailouts would now be targeted to national priority areas
Description
A thesis submitted in partial fulfilment of the requirements for the Degree of Master of Business Administration Finance
Keywords
Effectiveness of fiscal policy, Namibia, University of Namibia, Economic, Social and political factors