Broadening access to land markets: Financing emerging farmers in South Africa

This article reports on a pilot survey of commercial farms acquired by disadvantaged people in the province of Kwazulu‐Natal, and describes a recent financial strategy to improve access to land. The survey tested a sampling technique to gather information about the rate of land redistribution, the source of terms and conditions of loans used to finance land, and the nature of property rights, managerial arrangements and land use patterns on farms acquired by disadvantaged people. It was estimated that only 0,09 per cent of the farmland available for redistribution was transferred to disadvantaged people during 1995. This low rate of transfer was attributed largely to legislation regulating the subdivision of farmland, and liquidity problems created by traditional mortgage loans. Recent experiments involving mortgage loans with graduated repayment schedules have helped to address the cashflow problem. However, these financial innovations, funded largely by the private sector, are not widely available and their impact is constrained by the Subdivision of Agricultural Land Act. It is recommended that the government amend or scrap this Act, and include financial strategies used by the private sector in its own range of land redistribution programmes.     

Exploring social capital of emerging farmers from Eksteenskuil,South Africa

The objective of this paper was to quantify the levels of social capital of emerging raisin producers from Eksteenskuil, and to explore the relationship between the socio-economic characteristics of the farmers and their social capital levels. The respondents prove to have high levels of social capital. Interestingly, they tend to trust and get along with each other more than they actively participate in organised group activities in the community. Their social capital thus can be said to be more cognitive than structural. Higher levels of social capital were also found to be associated with higher age, experience and education levels of the respondents. Ultimately it was concluded that the complexity of social capital makes it difficult to implement initiatives that will contribute to developing the social capital levels of these farmers. Efforts to stimulate collective action and farmer-to-farmer skills transfer should take cognisance of the role of social dynamics in the behaviour of emerging farmers.     

A cluster analysis of commercialisation of farmers in developing rural areas of South Africa

The purpose of this article is to classify farmers in developing rural areas according to their commercial orientation and to evaluate their distinguishing characteristics. Farmers in these areas use both farm and non‐farm activities to commercialise to some degree. The aim of the commercialisation strategy is to generate income for acquiring other basic goods and services. A cluster analysis of 392 households surveyed in 1987 in the former KaNgwane identified seven groups of farming households: very low commercial households, moderately commercial households, high agricultural commercial households, livestock commercial households, non‐farm income households, non‐farm and agricultural commercial households and highly commercial households. The characteristics of four of these groups were investigated further. The current status of the commercialisation process suggests several policy directions: food security programmes should be aimed at those lacking resources, who may also be threatened by food shortages; emerging farmers with limited resources should be encouraged to diversify their income‐generating activities ‐ they should be given support (including access to land, markets, credit and management) to encourage them to prosper; and the progressive farmers require enhanced programmes to sustain their competitiveness.     

Family formation and economic insecurity among youth in South Africa

ABSTRACT

Youth unemployment continues to be a burden and concern for the South African government. Being economically insecure, the situation is dire with the government needing to provide resources to a population who should be economically independent. There is a need to look at the social determinants of economic insecurity among youth in South Africa. Family formations could either promote or inhibit economic well-being. This article aims to assess whether economic security improves as youth enter into unions and/or have children. The South African National Income Dynamics Study is used. Unmarried youth with no children are measured at baseline (2008) and followed up over time to examine whether economic security status changes as union status changes. Results show that while economic security, employment (from 7.61% to 25.67%) and net income per month (from 19.48% to 32.79%) increase over time, youth who marry but have no children have the lowest risk of economic insecurity (relative risk ratio?=?0.02, p < 0.05) compared with those who remain unmarried but have children. Special attention needs to be given to youth who have children and are unmarried and among those who marry and have children soon after.     

Labour unions and wage inequality among African men in South Africa

One Achilles' heel of post-Apartheid South Africa is the growing intra-racial income inequality, particularly among Africans. This paper examines the role of labour unions in explaining this phenomenon among African men given that labour markets are at the core of income inequality in South Africa. Using cross-sectional data drawn from Labour Force Surveys for 2001–10, we find a monotonically declining union wage premium. Further, our results indicate that unions have both compressionary and disequalising effects on wages. The disequalising effect dominates the compressionary effect, suggesting that unions have a net effect of increasing wage inequality among African men in South Africa. This finding implies that there is scope for unions to reduce inequality through initiatives that promote wage compression.     

Patterns of condom use: Perspectives of men in KwaZulu-Natal,South Africa

In South Africa, the level of HIV infection is reaching crisis proportions. Besides sexual abstinence and mutually monogamous sexual relations, use of the condom has an important role to play in curbing the further spread of the HIV/AIDS. The aim of this article is to explore the extent and determinants of condom use inside and outside the primary sexual relationships. The research objectives are addressed using both quantitative and qualitative methodologies. The study found that knowledge about condoms, as a method of dual protection against the risk of pregnancy and disease, is high. Despite this, condoms are not a popular method of protection, especially within the primary sexual relationship. Consistent with numerous other studies, this study found widespread disapproval of condom use. Condoms are more likely to be used in non-primary than primary sexual relationships. In both relationships, condom use corresponds closely with level of education.     

Struggling against apartheid: The use of economic sanctions on South Africa

Conclusion It is clear that the United States is in a dominant position in relation to South Africa’s economy, which has an economic climate working against its decision to be isolated from world opinion. The apartheid policies have produced an economy that is severely distorted by its having a restricted market for its industrial products, a critical shortage of skilled labor, a high level of structural unemployment, a high and increasing military budget, and by its support of an economically unviable Bantustan system. These distortions, combined with record balance of payments deficits and a net disinvestment of foreign funds, have resulted in currency outflows that were covered by the United States providing decisive support for a $1.1 billion loan from the IMF. Contrary to the impression that has been promoted by the South African government, S.A. mineral exports are not crucial to the United States. However, South Africa does depend upon the United States for its export market of these minerals, which are essential for providing the necessary funds for governmental expenditures and foreign exchange that are needed in order to support its high import content industries. The large percentage that exports have in S.A.’s gross national product increases this vulnerability. Thus, if we look at the evidence, it is clear that the United States has viable sanctions that it can implement against South Africa’s inhuman political and social policies. Although the United States has these leverages it refuses to utilize them, even though it would be in its interest to do so. It is vital that those persons who are genuinely concerned about human rights and the apartheid system apply whatever pressure is necessary to force the U.S. government to immediately utilize these leverages in the form of sanctions that would force the S.A. government to change its policies. The black community must take the responsibility for leading this effort.     

Feminisation of poverty among the street homeless women in South Africa

This article gives an overview of poverty, deprivation and homelessness as a social ill that is eating deep into the society's fabric. It affirms that these concepts are inextricably linked, illustrating this with the case of the street homeless women. Furthermore, it describes the characteristics of street homeless women in Johannesburg inner city and their perception of poverty. It also describes the survival strategies adopted by these women on the streets. The article also illustrates that street homeless women suffer most from unprecedented population growth, high levels of poverty, homelessness, illiteracy and unemployment. They form part of the largest group of the poorly sheltered population. The street homeless women in particular constitute a population at risk, especially when the nature of their homelessness is concealed. The article suggests it might be appropriate to give special attention to the poorest segment of the population, which includes the street homeless women. They must be made to participate fully and equally in policies and strategies to alleviate poverty.     

Economic bargaining power and financial decision-making among married and cohabitant women in South Africa

Women’s economic empowerment remains an important global policy issue and their involvement in household decision-making is critical for development. This paper aims to elucidate a key feature of bargaining models of intra-household decision-making, namely the dynamics between women’s economic bargaining power and their financial decision-making power. The paper also documents trends and transitions in financial decision-making. Using balanced panel data from South Africa’s National Income Dynamics Study (NIDS), the analysis finds that women who are married or living together remain economically disadvantaged compared to their male counterparts. Although gaining ground in terms of financial decision-making responsibility, women also remain disadvantaged compared to men in terms of financial decision-making power. Yet, employment opportunities significantly enhances women’s role in financial decision-making, thus arguing a case for continued efforts at women’s economic empowerment.     

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.     

Poverty and inequality in South Africa: critical reflections

ABSTRACT

South Africa is a paradox; on the one hand, it is one of the most unequal countries in the world. Half of all South Africans continue to live in poverty, economic growth has stagnated and inflation remains high, while the unemployment rate continues to climb towards 30%. On the other hand, it has one of the most progressive constitutions in the world, with a bill of rights that foregrounds expanded socioeconomic rights. We provide an overview of the latest statistics on poverty and inequality in light of overarching economic policies, and the socioeconomic guarantees of the Constitution. We argue that South Africa’s inability to meaningfully address the high levels of inequality is due to insufficient attention to the way power reproduces inequality. We present a definition of power that includes social and market power, and emphasise the importance of a theory of power in understanding the reproduction of inequality.     

The historical evolution of demographic data compilation,evaluation and use in South Africa

The compilation and evaluation of demographic data in South Africa have advanced over the years, despite a variety of socio-political constraints characterised by exclusions of entire population groups, poor cooperation in data compilation by individuals and inadequate institutional capacity for the compilation of data for the black population. Data compilation proceeded unevenly for the component racial population groups, and the use of demographic data was informed by separatist ideology. Supportive legislative measures were not responded to appropriately owing to political and social realities. The advent of democracy in South Africa in 1994 opened new vistas and challenges for developments, based on a new ideological orientation and the foundations that were put in place over the years. Research and monitoring of progress in this area are now mandatory.     

Poverty,shocks and school disruption episodes among adolescents in KwaZulu-Natal,South Africa

While conventional explanations of drop-out and grade repetition acknowledge the role of socioeconomic factors, this paper uses data collected in a KwaZulu-Natal study of adolescents to investigate the explicit contribution of poverty and shocks to school disruption episodes. The asset-vulnerability framework developed by Moser and others is used to develop a poverty-based theory of school disruption. Evidence against such a theory is also put forward. The results indicate that the poverty-based theory accounts in part for school disruption. Poverty is predictive of school disruption, female adolescents are particularly vulnerable to drop-out episodes, and adolescent pregnancy emerges as an important influence. However, household shocks do not seem to predict school disruption. Programmes that offer incentives for school attendance and improving school quality are put forward as policy options for South Africa.     

Farm household economics: Some policy implications for emergent farmers in Southern Africa

Farm household economics recognises the fact that production and consumption decisions are made jointly by small farm (ie surplus‐producing) households. This phenomenon is of particular importance in areas where small farm households predominate.

Most empirical applications of farm household economics have been directed at measuring the effects of price changes on consumption and have relied on the ‘separable’ approach in deriving estimates. This approach assumes that production decisions always precede consumption decisions with farm households treated as profit maximizers in production and utility maximizers in consumption. Results have clearly demonstrated consumption responses smaller than estimates based on consumer theory alone.

Although many researchers regard mathematical programming as a potentially suitable tool for simulating smallholder behaviour, proponents of new household economics would be reluctant to accept any model that does not (a) maximize utility (rather than profit) and (b) capture the ‘profit effect’ which variations in product prices have on the farm household's full‐income constraint. Attempts to include these basic postulates of farm household economics in programming models are in progress.     

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.