In the world we live in today, it has become very clear and possible to detest the differences amongst the different countries whether it being due to, political, social and or economic variances. Ultimately leading to the questions of; of how do other countries achieve this economic growth as others remain stagnate. In this case ‘Institutions’ are the main role players, and answers to our questions. Institutions are construed on a broad basis, which lead to the fundamental case of economic growth. They are the “rules of the game” in today’s society. The institution of ‘Rule of Law’ as well as the ‘Separation of power’ thus out of the man other institutions stood out, for the most part, due to their notion of incentives.
Rule of law is one of the many factors of implemented institutions that should and be looked at as an easily accessible need. It manifests factors of independent as well as transparent legal systems, accompanied by laws, in which the government and society obey and follow. A basic understanding that may come from ‘Rule of Law’, is that, “no one is above the law” (). The rule places emphasis that the “idea of truth” is the ultimate basis of fundamental principles, which in turn may not be created and or forgone through any act of will. The laws adopted and enforced by the ‘Rule of Law’, thus inevitably intend to be seen as a “safeguard” (Lexisnexis.co.za, 2019), against anything considered and or seen as “arbitrary” governance, making this principal somewhat “hostile both to dictatorship and to anarchy” (Lexisnexis.co.za, 2019).
Where the principal of ‘Rule of Law’ is strong, simple needs such as health, safety and or shelter along with employment and education are safeguarded. The ‘Rule of Law’ is important as it overlooks any abuse of power. It also an empowering tool for the society as, individuals’ rights are protected by the enforced laws. The atmosphere in society is considered fair and non-discriminatory, as well as “natural justice” (Documents.worldbank.org, 2019), where reasonable opportunities are given to the society.
One may agree that where the ‘Rule of Law’ exists, sustainability in social, political and economic sustainability persists. “Robust” economics (Lexisnexis.co.za, 2019) are thus dependent on clear laws which govern the society and its commerce. Poor implementations of “Rule of Law” in a country, where it is not secure may lead to poor incentive and investments, leading to much lower economic growth and the “trapping” (Lexisnexis.co.za, 2019) of countries, especially those that constitute high numbers of poverty.
Adam Smith once said that “Commerce and manufactures can seldom flourish long in any state which does not enjoy a regular administration of justice, in which the people do not feel themselves secure in the possession of their property, in which the faith of contract is not supported by law…” [Adam Smith, Wealth of Nations (V, iii)].Thus when ‘Rule of Law’ is companied wi strong legal systems are thus considered as a “pre-condition”(), for economic growth over the long run. In contrast, when “Rule of Law”, is weak in the “under-developed” (Documents.worldbank.org, 2019) and or developing spheres of the world. It is seen as an obstacle to sustained economic growth. Thus, strengthening the “Rule of Law”, should be taken and or perceived as the ultimate goal that any developing country should be advised to take. One may look at Pakistan, which has experienced a “surge” for the demand of “Rule of Law” in the recent years, which they ultimately capitalized on an “garnered mandate” (Anon, 2019). Economic growth may not be seen as a goal for “Rule of Law”, however one may agree that growth is indeed conditioned by the strong legal systems. This is thus shown by, conventional neo-classical growth models. These models assume an “institution free” (Anon, 2019) economy, which in turn prove, that growth occurs in a context of an institutional environment, thus that of “Rule of Law”, and that of “institution free”.
The “Rule of Law” is thus being upheld to an extent, where, transparency of legal systems exists, which are fundamental for the “Rule of Law”. Without transparency there is no “Rule of Law”. The creation of effective legal systems for the people of South Africa has thus established an atmosphere of “specialist divisions” (Lexisnexis.co.za, 2019), which in turn has assisted the country into finding more solutions to inevitably improve the legal system. South Africa has made it part of their missions to work throughout Africa, with the aim of consolidating and updating the laws enforced in countries such as Malawi, Kenya and Zimbabwe, to name a few.
The Constitution of South Africa enforces a democratic principal, known as the “separation of powers”. The “separation of powers” encompasses the idea that the state is divided into three different but independent arms namely; “the executive (Cabinet), the legislature (Parliament) and the judiciary (Courts of law)” (Parliament.gov.za, 2019). The president is placed as the head of state and the head of the national executive, who exercises together with the other members of the cabinet, the implement of the administration of the country. The national legislature consists of the two houses, namely the National Assembly and the National Council of Provinces. Each playing their own distinctive roles of powers, that have been set out by the Constitution. The National Assembly is responsible for the passing of laws, thus ensuring that each member of the executive perform their jobs according to the interest of the South African people. The National Council follows the same procedure, but however differ in such a way that their aim and focus is on issues debated in these provinces. In South Africa, the courts make up the judiciary, namely; “the Constitutional Court, the Supreme Court of Appeal, High Courts, Magistrates’ Courts” (Parliament.gov.za, 2019) The courts act on their independence and as well as impartially.
South Africa experienced a breakthrough from the apartheid era into democracy, where an interim Constitution was placed at the time, who negotiated for the people of South Africa in the liberation struggle. On 27 April 1994, South Africa’s first democratic elections were held (Parliament.gov.za, 2019), where members of Parliament at the time, met as a body, now know as the Constitution, who wrote up the new Constitution followed today. This inevitably places the emphasis of the importance of the separation of power needed, in a country. The Constitution has thus covered a significant amount of ground work for a society that follows openness as well as democratic values of social justice.
With this the separation of powers has had more of an impactful and more robust link with economic growth within a democracy. South Africa’s transition to democracy experienced a significant amount of economic growth. One is also able to look at Britain, who led its state into providing universal education and radical reforms in the labour markets, inevitably allowing the formation of legal trade unions and allowed for the increase in their bargaining power of labour (Ulspace.ul.ac.za, 2019). Consequently, leading to faster economic growth over the long-run, which resulted in the newly enforced separations of power. With the separation of power, democracy is the main aim and source, which in turn motivates the poor to use the democracy to their best of their abilities almost tilting economic growth positively. As seen in the nineteenth-century, the emergence of democracy in Europe, proved and strengthened the argument of how the separation of power constitutes to sustained economic growth. During this time separation of power determined economic growth through, the distribution of their resources, also showing how different spheres of power in these countries changed in response to “imbalances of the political power enforced” (Ulspace.ul.ac.za, 2019).
It can ultimately be concluded that legislative arms are seen and or are fundamental to South Africa. Separation of power monitored and implemented programs that ensured that policies are carried out accordingly, which is still being upheld to an extent. One is able to argue that with this, that the electorate is empowered to follow and motion of no confidence the same way the president can, all the different spheres of the government. Where is it has failed to follow and or perform their respective responsibilities, that are set by the Constitution. Therefore, this significant institution is being used as a mechanism for the state to ensure that parliament follows its responsibility with caution, for the interest of the South African people.