Skills in South Africa: The journey towards credible planning

ABSTRACT

Since 1994 the state has instituted active labour market policies to redress the apartheid skills legacy. The skills planning challenge continues to be how to coordinate efforts for the provision of the right skills to support inclusive economic growth, ensuring an alignment is achieved between what is required in the labour market and the supply from the education and training system. This article traces the South African journey of skills planning from late apartheid until the current time period in 2014 through a historical analysis of the political economy. The analysis reflects on the relationship between state formation in South Africa and the role of the state in directing skills development, and in the more recent period how skills planning responds to both the demands of the economy and ameliorating the historical legacies of education and skills exclusion.     

The gear legacy: did gear fail or move South Africa forward in development?

This article describes the economic and development policy legacy of the Growth, Employment and Redistribution (Gear) programme. It considers the arguments for and against Gear, and attempts to answer the question whether or not the programme has moved us forward in development. The economic legacy is described as dismal development outcomes but excellent macroeconomic policy outcomes. The policy legacy is described as continuing with Gear in some respects, but also incorporating a shift in development strategy that takes into account critique of Gear from the left and proposes a more active and direct role for the state in employment creation. This shift is seen as positive because the key challenge in the post‐Gear period is how to use the state more effectively to create jobs and provide income for the poor. The overview of the arguments for and against Gear finds most of the former to be thin. Moreover, it highlights conceptual flaws in the strategy that explain why it failed to produce the promised employment creation and poverty reduction by the end of the programming period (1996–2000). However, there is no clear answer to the question of whether or not Gear has failed – would an alternative policy have produced better outcomes in the period? Also, Gear has improved the private investment climate and produced better resource and institutional conditions for government to play a more active role in pushing future development. Whichever way it is argued, a key point that emerges is that development prospects will remain gloomy if the government reverts back to the strategy of relying largely on the private sector to reduce poverty, and fails to do more itself via effective income support programmes for the poor.     

Participation,planning and linkages: International lessons for agricultural extension in South Africa

This article considers the experience with agricultural extension in less developed countries (LDCs) and the international shift to participatory techniques and practices. It examines the causes and effects of the poor impact of extension, the poor institutional and personal linkages in the field, and the poor planning in LDCs. All the role‐players in government, agricultural extension and research in South Africa will need to act with energy and commitment if the country is to benefit from the international lessons.     

Johannesburg’s implementation of the National Water Act, 1998 in Soweto,South Africa

ABSTRACT

The Guide to the National Water Act, 1998 (Act 36 of 1998) regards the availability of water as a basic human right. However, local governments seem to struggle to pay for the water they provide to their residents as prescribed in the Water Services Act, 1997 (Act 108 of 1997). This study focused on the domestic provision and consumption of water in Soweto, one of the largest townships in the Johannesburg area of South Africa. Surveys were conducted with 372 respondents from three different socio-economic suburbs in Soweto with the aim to establish their water use perceptions and practices. Study results indicate implementation of the National Water Act is still being resisted by Sowetan households more than two decades after its adoption, due to the difference in expectations of the municipality and the residents regarding rights to water access and responsible usage.     

Manufacturing enterprises and marketing planning in a mining area of the North West Province,South Africa: lessons for local business support centres

This paper examines the extent to which manufacturing SMMEs (small, medium and micro enterprises) see marketing planning as important for their businesses in the area of the North West Province known as PKOSH (Potchefstroom, Klerksdorp, Orkney, Stilfontein and Hartbeesfontein). It identifies lessons for local business support centres, based on a case study of manufacturing businesses in this region. The literature suggests that appropriate marketing planning will increase profitability, but it was found that most manufacturing industries in this area do not plan their marketing appropriately. This is largely because of their close relationship with and dependence on the mining industry, which is at present extremely volatile, with mine closures imminent. Against this background, the authors argue that local business support centres should have a much better understanding of local business trends and should provide information to help businesses open up markets beyond their immediate environment.     

A quantitative determination of the food security status of rural farming households in the Northern Province of South Africa

The majority of South Africans living in rural areas are food insecure despite high levels of national food self-sufficiency. The household food security position of two groups of rural farming households in the Venda region was evaluated quantitatively: one group produces vegetables that are sold or consumed locally, the other group produces cash crops – mangoes and other subtropical fruits. Using the collected data, food availability and energy, protein and fat requirements were calculated and balances derived. It was found that more than 80 per cent of the households had a negative balance of energy, protein and fat intake. The average energy, protein and fat coverage consumption was the same for both groups of farmers. A number of agricultural determinants were tested, but only non-agricultural determinants were found to be significant. These include household size, household (food) expenditure and proportion of the budget spent on food.     

Trade Policy Reform and the Competitive Response in Kwazulu Natal Province,South Africa

Like many other formerly protected economies, the liberalization of the external trade regime has placed new competitive pressures on South African enterprises. Detailed research in over 130 enterprises in the KwaZulu-Natal (KZN) Province of South Africa shows the extent to which firms have been able to respond to these new competitive pressures and particularly on their ability to “hear” and to meet more demanding customers' requirements. Inevitably the response has been varied, but there are reasons to be concerned that the pace of adjustment has been suboptimal. This reflects imperfections in information markets, the challenges poses by the need for new social relations in production, and the limited implementation of new “supply-sided” policies designed to compensate firms for the reduction in protective barriers.     

Remaining at the margins: Case study of farmworkers in the North West Province,South Africa

This article explores living conditions, livelihoods and prospects of farmworkers with regard to land reform legislation. Research was conducted from 2004 to 2010 on four farms in the North West Province, interviewing farmworkers and farm owners. Representatives of the agricultural union Agri North West and land analysts were interviewed to obtain their perspective on farm labour. Despite protective legislation, farmworkers' living and working conditions have deteriorated. Farmworkers further lack alternative livelihood options, perpetuating their dependency on farm owners, who are the only ones providing services and some social security. Among the main barriers in the empowerment of farmworkers are limited insights regarding complex social relationships on farms, the challenge to address the specificity of power relations, and the marginalised position of farmworkers and their lack of agency in the broader political system. Both farmworkers and farm owners need support structures and strengthened institutional capacity to gradually change power dynamics.     

Estimating the future health care cost of population aging in South Africa

ABSTRACT

This paper analyses the relationship between health care expenditure and population aging in South Africa using yearly data from 1983 to 2015. Empirical evidence from an Autoregressive Distributed Lag approach to cointegration indicates that old dependency and life expectancy are major drivers of public health expenditure in South Africa besides the income. Particularly, when structural breaks are controlled for, income exhibits a long-term elasticity with respect to health spending greater than unity; suggesting that South African public health care has become a luxury good over time. Interestingly, South African public health spending is found to be responsive to demographic development only in the long run. This is consistent with the micro evidence that health expenditure increases with individual age with significant impacts in the long term. Finally, using economic and demographic projections statistics, we find that public health expenditure could roughly double in the next fifteen years ceteris paribus.     

Development for children's environmental health in South Africa: Past gains and future opportunities

In poorly resourced countries children may face multiple health risks associated with environmental hazards and under-development. It is estimated that exposure to harmful environmental factors (e.g. air pollution, poor water quality and harmful chemicals) accounts for 33% of the global burden of disease, with the highest burden being borne by children. While accelerated housing and settlement development over the past two decades has benefitted hundreds of thousands of young children in South Africa, large numbers continue to face major environmental threats to their health, some of which have hitherto been neglected. Such children are likely to be particularly vulnerable to the unfolding ramifications of climate change. In this light greater urgency and momentum is needed to improve living conditions and other socio-environmental determinants of children's health in South Africa and other under-resourced countries. Children should be a central focus for policy and development as our global society strives to meet the Sustainable Development Goals.     

Constraints facing tourism entrepreneurs in South Africa: a study in the Gauteng and Mpumalanga provinces,South Africa

The current study is an investigation into tourism entrepreneurship of small, medium and micro enterprises in Gauteng and Mpumalanga. Through Principal Factor Analysis, the paper identifies a three-factor instrument that could be used as a diagnostic tool to investigate how government policies and support, the tourism industry's products and services, and perceptions about South Africa could advance or constrain the development of small, medium and micro tourism in South Africa. Such a tool can be used to identify problematic areas in order to take remedial action to manage sustainable tourism in South Africa and prevent the leakage of profits.     

Impacts of new universities on hosting cities and the implications for Kimberley,Northern Cape,South Africa

This research investigated the impact of the establishment of a new university on hosting cities by reviewing the literature on such impacts. The aim of the article is to establish the likely impact of a new university (Sol Plaatjie University) to be established in the city of Kimberley during 2014. The study found that generally a university could impact its hosting city in terms of its local economy, employment, human capital, social character and real-estate market. Given the current characteristics and demographic profile of Kimberley, it is likely that positive impacts of a new university in Kimberley would include increased spending capacity in the local economy and short-term employment gains during construction of the university infrastructure. The proposed university could, however, exacerbate the existing pressure on the rental market in Kimberley and encourage the out-migration of specific skilled professionals. The research concludes with a number of steps to be taken by a hosting city that could contribute to strengthening a university's role as an anchor for urban development.     

Inequality in South Africa: The distribution of income,expenditure and earnings

This article empirically analyses the state of inequality in South Africa. International comparisons show South Africa to be among the most unequal countries in the world. The levels of income inequality and earnings inequality are analysed with a range of measures and methods. The results quantify the extremely high level of inequality in South Africa. Earnings inequality appears to be falling in recent years, with relative losses in the upper-middle parts of the earnings distribution. Decomposing income inequality by factor source reveals the importance of earnings in accounting for overall income inequality. The article concludes by observing that, internationally, significant sustained decreases in inequality rarely come about without policies aimed at achieving that, and suggests that strong policy interventions would be needed to reduce inequality in South Africa to levels that are in the range typically found internationally.     

Nationalism,socialism and planning: Influential ideas in the South

The paper discusses the origin of three influential ideas in the South, the reasons why they are found persuasive by Southern elites, and finally whether they are helpful in promoting modernization. It argues that all three ideas are Janus-faced, combining the ‘modern’ aspects of the rationalist Enlightenment with the partly ‘pre-modern’ rural nostalgia of the Romantic movement. But the ideas are dysfunctional in terms of the desired aims of ‘nation-building’ and attaining material progress. Nationalism, far from being an adhesive can become a disintegrative force in pluralistic societies. Planning becomes a means of suppressing the agents of the economic modernization that is desired. The waving of the Enlightenment and socialist banner of equality in suppressing the merchant, financier and entrepreneur is a smokescreen. The suppression reflects more atavistic impulses, which amount to a denial of the irreducible uncertainty that unavoidably attends commercialization, monetization and industrialization.     

Community projects: The possibilities in South Africa

The increasing emphasis being accorded by development agents to community participation and involvement in projects highlights the need for a dear conceptual and operational framework if success is to be obtained given the high levels of alienation and suspicion which occur among many ‘communities’. The first part of this paper provides a brief review of community development theory and practice. The second part outlines the key concepts pertaining to community development, while in the last part (the focus of the paper) a strategy is offered for the introduction of community projects in South Africa. It is argued that until more control is devolved to representative and democratic communities the prospects for introducing community projects will be slight, particularly in the more politicized townships and urban environments.     

Unemployment in South Africa: Trends,causes and cures

The main macro‐estimates of unemployment rates in South Africa clearly show both cyclical sensitivity and a secularly rising upward trend, presenting a striking similarity with the United Kingdom and other OECD countries. The rising long‐term trend in the unemployment rate is not confined to Blacks but probably applies to Whites, Coloureds and Asians also. It has been mainly due to a decline in the demand for labour caused by a falling rate of capital accumulation rather than by rising capital‐intensity. The slower rate of capital accumulation stems primarily from forces originating abroad, which have affected the world economy as a whole, though the fluctuating gold price has aggravated our problems. Policy in the spheres of international trade and monetary relations is therefore crucial and there are reasons for concern over current thinking in these areas.