Black land in white Natal: Administrative constraints on land reform

Very little land outside of KwaZulu is occupied by black people in Natal. This paper considers the position of black people living in freehold areas and established urban areas in Natal.

The administrative structures that purport to cater for these areas embody both horizontal and vertical constraints on efficient social provision.

Land reform accordingly appears to offer little more than a worsening of the situation if implemented before these structural constraints have been addressed.     

The role of dryland cotton as a source of household income in two magisterial districts of KwaZulu

The aim of this paper is to illuminate certain economic aspects of the production of dryland cotton among rural households in the Ubombo and Hlabisa magisterial districts of KwaZulu. In order to assess the viability of the household cotton enterprise, its contribution to household income and the producers' perceived constraints to production, an interview survey was conducted among 100 cotton‐adopting households in the two study areas. Multi‐stage sampling techniques were employed to facilitate the study.

Results show that the Ubombo region's inherent climatic suitability, combined with extensive support services, has benefited the dryland producer and resulted in a lucrative on‐farm enterprise. Cotton contributed an average of 62 per cent to annual household income in this district

In the climatically less suitable Hlablsa district, where producers are limited by lack of finance and small land sizes, wage labour was found to be the prime source of cash income for the household, while cotton contributed an average of 17 per cent towards annual household income.

Producers in both areas are cost effective relative to the white commercial farmer while mean yields and net incomes indicate that dryland cotton has the potential to contribute much to the development of certain areas of KwaZulu. Overspending on chemicals may indicate the need for increased extension into complex pest control management procedures.     

Ecology and development

There is an increasing realization, world‐wide and in Southern Africa, that conservation and development are compatible.

Because human communities in the less developed rural areas are dependent on a renewable group of resources, including soil, water and forests, it is imperative that land use systems that protect these resources are introduced.

The predominance of subsistence agriculture in these areas is the most difficult syndrome of under‐development. An overall rural development strategy is required that integrates human development with resources management Where the population carrying capacity of the land has already been exceeded, a process of rapid villagization/urbanization is required. Village/urban growth and agricultural development require a carefully co‐ordinated programme of land capability analysis and planning, as well as active investment in infrastructure and the introduction of appropriate technologies and institutions.     

Some maize production parameters for KwaZulu

As part of a farming systems research project in KwaZulu, a range of agronomic variables (hybrid and open‐pollinated seed, frequeincy of weeding and fertilizer rates) were evaluated for small‐scale subsistence and commercial maize (Zea mays L.) production.

Not all hybrids performed well but a group of adapted cultivars outyielded the open‐pollinated cultivars consistently. The grain yield regression equation of a leading hybrid (PNR6549) on the best open‐pollinated cultivar (Kalahari Early Pearl) was y = 0,32 + l,2x (yield range: 1 t ha‘¹ to 8 t ha^‐1). The large‐grained Hickory King and a traditional cultlvar (Maputaland), while giving lower grain yields than other open‐pollinated and hybrid culttvars, were preferred for consumption as green mealies (corn‐on‐the‐cob).

Weed control was a major determinant of yield. At the lowest level of purchased input (open‐pollinated seed, no fertilizer), increasing the number of weedings from one to three raised the mean grain yield over two seasons from 1,1 t ha^‐1 to 2,0 t ha^‐1, and from 2,2 t ha‘¹ to 3,8 t ha‘¹ in the treatment incorporating a hybrid cultivar and the highest fertilizer level.

Production objectives and labour and cash constraints in KwaZulu differ between subsistence farmers and semi‐commercial and commercial farmers. The data presented here provide guidelines to the selection of suitable options for the various categories of farmer.     

An overview of agricultural and rural development problems in less developed areas of Southern Africa

The problems discussed in this paper are essentially the influence of various factors which underlie the present low levels of agricultural production and the constraints to development of the less developed rural areas of Southern Africa.

The nature, intensity and output of small‐scale farming systems are dependent upon the interactions between and within five groups of factors: physical and ecological; the agri‐milieu; institutional and operational; the human potential; and technology.

This paper discusses previous and present development trends, and reviews the interrelated problems of use of physical resources, the agri‐milieu, human resources, institutional problems and technology.

Suggestions are made for a co‐ordinated strategy at national and local level aimed at removing some of the present barriers and constraints to agricultural and rural development.     

Inefficient land use in KwaZulu: Causes and remedies

Rural KwaZulu is a less developed region of South Africa. Despite intense population pressure, arable land is underutilized. Grazing resources are overutilized.

Supply response to price incentives and farmer support programmes is inelastic as the potential gains to farmers are limited by small farm sizes. Facilitating the land rental market could improve efficiency informing, and also has equity advantages. Institutional changes are needed to encourage land rental

Overstocking occurs primarily because grazing is an open access common property resource. Unlike most solutions to overstocking (eg cattle taxes and quotas), privatization of grazing land (even in the limited sense that arable land is privately controlled) would not only encourage stock‐owners to reduce stocking rates but would also improve their incentive to upgrade herd and pasture quality. It is recommended that privatization be promoted in areas where it is more acceptable to households.     

Regional development effects of a free market for sugar in South Africa

In a free market for sugar it is estimated that the area under sugar‐cane would decrease by 49 per cent and labour employment by 26 per cent relative to the single‐price policy which was in operation until 30 April 1985. Sugar‐cane would be produced in areas of comparative advantage, namely the Eastern Transvaal, Zululand high and low rainfall areas, the North Coast, Indian and Mangete areas and KwaZulu. The domestic equilibrium sucrose price is estimated to be about 9 per cent below the price under the single‐price policy and 17 per cent below the A‐pool producers’ price under the present two‐tier price scheme.

Full irrigation water tariffs have a considerable impact on enterprise mix. Farmers would shift from sugar‐cane to higher return crops or leave land fallow if they perceived the risk to be too high. Land values would fall in irrigation areas and increase in dryland areas.

Results are obtained from a regional linear programming model which incorporates negative sloping demand functions for crops, limited substitution in demand between crops, positive sloping labour supply functions and variance/ covariance risk matrices.     

Book briefs

G Antonelli and A Quadrio‐Curzio (eds) The agro‐technological system towards 2000 North Holland.

W J Baumol Superfairness: Applications and theory The MIT Press, Massachusetts, 1986

E Boonzaier and J Sharp (eds) South African keywords: The uses and abuses of political concepts David Philip, Cape Town and Johannesburg, 1988

C Bryant (ed) Poverty, policy, and food security in Southern Africa Lynne Rienner Publishers. Boulder, Colorado, 1988

J Butler. R Elphick and D Welsh (eds) Democratic liberalism in South Africa: Its history and prospect David Philip, Cape Town and Johannesburg. 1987

D P Chaudhri and A J Dasgupta Agriculture and the development process: a study of Punjab Croom Helm, London, 1985

R Cohen (ed) Satisfying Africa's food needs: Food production and commercialization in African agriculture Lynne Rienner Publishers. Boulder/London, 1988

J M Conrad and C W Clark Natural resource economics: Notes and problems Cambridge University Press, Cambridge, 1987

D E Janvry and K Subbarao Agricultural price policy and income distribution in India Oxford University Press, Delhi, 1986     

Cattle sales in KwaZulu: A systems based approach to an improved marketing strategy∗

A recognition of the central role of cattle in African pastoral society, and the means by which benefits derived from cattle ownership can be accommodated under changing social and economic circumstances, should be built into appropriate livestock development strategies.

The contention put forward in this paper is that it is only through the adoption of a process—orientated, systems‐based approach to the evaluation of subsistence pastoralism, in which causes rather than effects become the key issues, that it is possible to direct administrators and planners in the formulation of appropriate marketing policies.

Past experience in KwaZulu has shown that, traditionally, cattle owners have been unresponsive and conservative in the face of marketing initiatives. This paper argues that it is not economic development that is resisted so much as the ability of rural communities to adapt to economic change. Strategies based on the perspectives and requirements of subsistence herders are advocated if current low levels of commercial offtake are to be raised in the long run.     

Survey of Recent Developments

As Indonesia heads to the polls in 2014, its economy is slowing. The end of the commodities boom and the global return to more normal monetary policy has exposed some weaknesses. Exchange-rate depreciation has absorbed some of the adjustment; but structural rigidities are still likely to limit the expansion of non-commodity sectors, and the increased fuel-subsidy bill for imported oil is putting pressure on the current account and the budget. The immediate focus is on demand-side consolidation to manage inflation and the currentaccount deficit.

For an economy like Indonesia’s to be overheating, and for monetary and fiscal authorities to be engineering a soft landing, when growth is below 6%, points to major structural problems. If Indonesia is to prevent the current rate of growth from becoming the new normal, there will need to be a substantial supply-side response to lift productivity, as well as a restructuring of the economy and the introduction of policies that make the economy more flexible in adjusting to shocks. The current economic slowdown has yet to trigger sweeping reforms; policy coordination remains problematic as Indonesia enters a big political year.

Compared with its neighbours, Indonesia is largely on the outside of the regional production networks, and its manufacturing sector does not play into factory Asia. Now, faced with lower commodity prices globally—and growth in non-resource sectors is critical— the lack of a large manufacturing base appears to be a weakness. Indonesia is attracting more foreign direct investment than ever and is climbing the global rankings of preferred economies in which to invest, but this is occurring without improvements to its investment environment or competitiveness. Indonesia can participate more fully in global supply chains and increase its potential for growth by upgrading its infrastructure, improving its investment environment, and using regional initiatives strategically to make strong commitments that reinforce its priorities for domestic reform.

In its hosting of APEC in 2013, Indonesia championed infrastructure investment where the lack of structural reform and macroeconomic constraints are inhibiting much-needed expansion, both in Indonesia and in the region. The positive outcome, albeit only a small step forward for the Doha Round, at the WTO Ministerial Conference in Bali, in December, also builds momentum for better regional and global cooperation. The priority now is for Indonesia to commit to, and show leadership in, the Regional Comprehensive Economic Partnership (RCEP) and the implementation of the ASEAN Economic Community.     

Survey of recent developments

Despite a turbulent global economy and expectations that declining exports would cause an economic slowdown, the Indonesian economy grew at 6.5% in 2011. The growth rate was supported by high consumer confidence – the result of lower inflation of just 3.8% in 2011. Nevertheless, there were indications that the global financial crisis had had an impact on Indonesia in the last quarter of 2011, notably on the growth of exports and imports.

In October 2011, President Yudhoyono reshuffled his cabinet, citing a need to improve its performance in the administration's remaining three years. The reshuffle showed that the president is still subject to political party pressures. Moreover, the governing coalition of parties remains weak. Agreements made within coalition meetings are often broken in the parliament, and coalition parties are frequently distracted by media polemics. The case of former Democrat Party treasurer Nazaruddin, arrested in Colombia following a two-month manhunt, has revealed the magnitude of the money politics surrounding the Democrat Party, whose ratings are declining rapidly.

Indonesia enters 2012 bolstered by the restoration of its investment-grade credit rating. This will expose Indonesia to increased capital flows, since many funds are permitted to invest only in investment-grade countries. The effects on foreign direct investment (FDI) are not automatic, however. These investors evaluate the wider business climate and economic governance in making their investment decisions.

The fuel subsidy remains a challenge for Indonesia in 2011/12. Parliament rejected a proposal to limit fuel consumption from April 2012 over doubts about the government's readiness to handle the policy's technical complexity. Now the government is again considering a fuel price increase, and will have to seek parliamentary approval soon.

Indonesia faces a long-term problem of regional inequality. After four decades of economic development there is little variation in the shares of GDP across regions, but GDP per capita in some regions is slipping behind that of Java. Regional development policy needs to generate more economic activities in the outer islands, and to learn from the mistakes of past initiatives to promote economic development and growth centres in the regions. It is important to align policies with the current decentralisation arrangements.

The government is revising Law 33/2004 on Intergovernmental Finance with the aim of improving some dimensions of decentralisation in Indonesia. Revenue certainty is to be enhanced in part through changes to the general allocation grant (DAU) formula and the disbursement mechanism for intergovernmental transfers. The planned revision has not, however, addressed sufficiently the problem of inefficiency in regional spending. In fact, some of the proposed solutions may well create further spending inefficiency.

The main barrier to increased FDI is infrastructure development, whose progress has been slowed by land procurement problems. Unfortunately, Law 2/2012 on Land Procurement for Public Purposes seems unlikely to deliver a clear solution to the key problem of determining fair prices for land compensation. What is needed is the creation of more independent price-setting committees, with sufficient capacity to disentangle the problems of land acquisition.     

Some socio‐economic characteristics of tribal and private farmers in the Hlanganani district of KwaZulu*

A survey of eighty‐nine tribal farmers and nine private farmers in the Hlanganani district of KwaZulu was conducted. Results show that agriculture is dominated by elderly tribal farmers operating land allotments of less than one hectare in size primarily for home consumption purposes. Private farmers control much larger farms and are less dependent on off‐farm income.

Almost one half of the tribal farmers interviewed favoured private ownership of grazing and arable land. Traditional leaders favoured the reallocation of land to fewer people and the conversion of grazing land into arable land as a solution to the small farm size problem.

Although education levels were similar among both groups of farmers, most private farmers invested in soil conservation whereas the majority of tribalfarmers did not. Crop losses caused by livestock on arable lands (a result of the tribal tenure system) were identified by tribal farmers as the most important factor restricting increased crop production.     

Book briefs

World food marketing systems, Butterworth & Co, London, 1986.

Faces of hunger. An essay on poverty, justice and development, Studies in applied philosophy, Allen & Unwin, London, 1986. xiii + 178, distributed in South Africa by MacMillan South Africa, Braamfontein.

Decentralization and development — Policy implementation in developing countries, Sage Publications, London, 1983, 319 pp

Soviet interests in the Third World, Sage Publications, London, 1985, xi + 329 pp

No shortcuts to progress — African development management in perspective, Heinemann Educational Books Ltd, London, 1983, xv + 223 pp.

Strategies for African Development, University of California Press, London, 1986, xii + 603 pp.

Labour and poverty In Kenya 1900‐1980, Clarendon Press, Oxford, 1986, xii + 296, £20,00     

South Africa's special employment programme of R600 million∗

In 1985 an amount of R6OO million was allocated for special employment projects. The most important ones were labour intensive projects by the public and private sectors, projects to support the small business sector, and the training of unemployed persons.

Various conditions were set for the programmes. Regarding the labour‐intensive projects for instance, a relatively small allowance was paid to the unemployed person in order to accommodate as many persons as possible, and to ensure the workers were not diverted from other employment opportunities. Furthermore, at least 50 per cent of the total funds allocated had to be for the wages of the unemployed persons. In terms of acceptability among both training institutions and the persons involved, the scheme for the training of unemployed persons was particularly successful.

Only a relatively small part of South Africa's unemployment problem can be addressed with a programme of this nature. Measures to address the structural unemployment problem remain first priority.     

Efficiency and Distribution :The Case of Tractors in Sawah Land Preparation in West Java,Indonesia∗

This paper uses farm management and socioeconomic data collected in the Small Farm Mechanization Prolect conducted by the International Rice Research Institute. Lo? Banos, the Philippines, during 1979 and 1980 to analye costs and benefits of tractor use in West Java. The main conclusion is that tractor land preparation is the optimum technique at market prices It is also optimum at efficiency prices provrded that tractor land preparation increaser yield and each tractor is used to its full capacity. If tractors do not increase yield. manual land preparation is the optimum technique at efficiency pnces When the analysis is conducted using distnbutional weights. animal land preparation is. in general. the optimum technique.

     

Basic socio‐economic elements of a development theory for traditional societies

Notwithstanding the existence of various ‘development paradigms’, little has been done to analyse the fundamental economic determinants of development.

Most important is the basic functioning of supply and demand which, in the traditional society, is determined by religion, customs and rules, resulting in a limited choice and volume of consumption, as well as limited production.

Stimulation of the economy can according to community development principles, be brought about by an increase in demand (needs) to serve as motivation for increased production.

Higher production though, necessitates a change in traditional values and the development of abilities and skills. This is primarily the field of community development.     

Government expenditure in the independent and self‐governing national states of Southern Africa: An evaluation

Various commentators recently drew attention to the expenditure and financing of the independent and self‐governing national states in Southern Africa. The inference has been drawn that this expenditure appears wasteful and ineffective and constitutes little more than a costly political luxury.

This article makes an attempt at evaluating government expenditure in the national states in terms of the type and level of expenditure, its benefit incidence, as well as its efficiency.

Expenditure of the governments of the national states is largely on collective or social goods and services and therefore of the type widely expected to be provided by governments. Since the benefit incidence of this expenditure is not confined within the borders of the national states, but spills over into South Africa, government expenditure by these states benefits the common integrated economic system of Southern Africa.

With regard to the levels of expenditure, indications are that expenditure in many instances is too low. Increased expenditure in some categories might well show significantly increasing returns.     

Hard data or bleeding heart data: The value of qualitative data in research in a rural village in Matatiele District∗

Qualitative data derived from participant observation are often overlooked by development experts anxious to complete their projects speedily. But the surveys they use cannot reveal the details of poor people's lives.

This article presents the case of in‐depth research data about life in areas where development planners often intervene. It demonstrates some ways whereby poor Transkeian villagers deal with the exigencies of dependence on migrant labour, focusing on movements between domestic units and response to the availability of remittances.

It argues that developers should recognise the efficacy of such social practices as developed by the poor themselves. These practices may be usefully applied to effect development so long as this forms part of package aiming to fulfil the vital Southern African need for wealth redistribution. The development practioner's proper role is identified as one demanding direct engagement with the poor, acting as facilitators for their understanding of the structures which constrain them and intending to achieve their own carefully conceived aspirations.     

Lifting physical and institutional barriers to development on a small‐scale irrigation scheme

If it is accepted that both the system and the individual can act as barriers to development at the micro‐level, development policy could be aimed at identifying the major causes and sources of inefficiency and removing the existing barriers to the achievement of efficiency.

In this article the major barriers to system efficiency are identified as being physical and institutional, and they include the physical structure of irrigation schemes, the land tenure system and the marketing structure. A theoretical discussion of each of these factors is used to propose more specific strategies for micro‐level rural development.     

The promotion of maize fertiliser packages: A cause of household food insecurity and peasant impoverishment in high rainfall areas of Zimbabwe

Child malnutrition is a continuing problem in Zimbabwe's communal areas. These include some high rainfall areas, which make a contribution to the country's maize surplus during non‐drought years. A survey of farmers and extension workers in four high rainfall communal areas was carried out to investigate the effects of following recommended practices for maize production on household economy and food security.

Thirty‐two per cent of communal farmers had applied all the officially recommended fertiliser to their 1990/91 maize crop, often by obtaining these inputs on credit in lieu of grain sales receipts from the subsequent harvest. Yet. yields were so low that 48 per cent of these farmers would have been unable to retain sufficient grain to satisfy their families’ minimum requirements, if they had reimbursed the full cost of the input credit.

The majority (64 per cent) of farmers had deviatedfrom the recommended practice by adopting ‘low external input strategies’. A key feature of most of these strategies was the substitution of manure for part or all of the recommended fertiliser. In three of the four communal areas studied, this had improved the chances not only of recovering input costs, but also of achieving maize self‐sufficiency.

These results suggest that policy‐makers should shift emphasis from a dependence on costly external inputs to the integration of low levels of fertiliser with a range of more natural methods of soil improvement, in an effort to improve household food security in the communal areas.