Invisible capital: The contribution of communal rangelands to rural livelihoods in South Africa

Communal rangelands (including their woodland component) contribute significantly to rural livelihoods in that a variety of natural resources are utilised for direct use and for exchange in local and more distant markets. Natural resources are also valued for purposes which are not ‘economic’ (eg for ceremonial and aesthetic reasons) and because of their ecological functions. The fact that many of these uses are not monetised means that their true social and economic value is often underestimated and not taken adequately into account when assessing, for example, the viability of land redistribution projects. The ecological dimension is as crucial as the socio‐economic: how sustainable is this multifold use of communal rangeland resources? More positively, can the productivity of ‘natural capital’ be increased, and how can the benefits of multifold utilisation activities be more widely distributed to help address rural poverty? This article discusses conceptual models drawn from the general literature which may be of relevance; reviews some of the southern African evidence on rural livelihoods and natural resource use; and attempts to draw out the lessons for poverty assessments and land reform policy.     

Cannabis sativa and rural livelihoods in South Africa: politics of cultivation,trade and value in Pondoland

Current debate on Cannabis sativa in South Africa has centred on its positive and negative effects on health, as well as its decriminalisation. The contribution of cannabis (dagga) to the livelihoods of people who inhabit some of the poorest parts of the country has thus far been largely ignored. Using a case study of a village in Pondoland, this article argues that while cannabis makes a significant contribution to the livelihoods of many households, the values derived by cannabis farmers vary widely, as determined by social difference, the illegal nature of cannabis production and trade, and the cannabis commodity chain. Furthermore, lobbies to legalise cannabis will not necessarily yield positive results for poor rural cannabis growers, as this could result in lower prices due to the possibility of increased supply, as well as the fact that illegality is what currently keeps the prices fairly high.     

Efficiency and equity gains in the rental market for arable land: observations from a communal area of KwaZulu-Natal,South Africa

Between 1993 and 1996, Thomson made a concerted effort to stimulate a rental market for arable land in the Upper Tugela Catchment region of the former KwaZulu homeland, South Africa. The number of transactions increased with associated gains in equity and efficiency. This study revisits the market and examines its performance in the year 2000. It was found that the number of rental transactions and lessees had declined, but that the area of land transacted had increased sharply. This apparent anomaly can be explained by an increase in fixed transaction costs that prevented prospective participants from entering the market, and a decrease in variable transaction costs that encouraged lessees to trade larger areas. Lessees are consolidating land from several different lessors, with gains in equity and efficiency still evident. Government extension staff could play a key role in sustaining and broadening access to rental markets for cropland in communal areas by reducing fixed transaction costs as Thomson did.     

Community-based natural resource management: The role of social capital in collaborative environmental management of tribal resources in KwaZulu-Natal,South Africa

Community-based natural resource management (CBNRM) has become an important tool in promoting environmental and ecological sustainability as well as improving community access to eco-system services. However, CBNRM has been criticised as a programme that is largely driven by initiatives which are exogenous to local communities, promoting the agenda of external actors. In view of this, there is now increased attention given to CBNRM programmes that are co-management driven and which seek the participation of all community stakeholders. Using existing literature and field-based data, this article explores the role of social capital in promoting the management of common pool resources in tribal areas of KwaZulu-Natal. It is argued that social capital can be a vehicle through which the accumulation of different forms of capital can be achieved and contribute to sustainable environmental management.     

Remittances and development: the impact of migration to South Africa on rural livelihoods in southern Zimbabwe

The development potential of remittances has not received much policy attention in the migrants' countries of origin. The Homelink facility established by the Reserve Bank of Zimbabwe in May 2004 excludes undocumented migrants, who are unlikely to use formal channels to send their remittances back home, and studies on international migration from Zimbabwe to South Africa have neglected the role of remittances, especially from undocumented migrants. However, some countries have realised this potential and developed strategies to encourage the flow and investment of remittances, which can contribute significantly to poverty reduction and development. Without such regulations and policies, which require the collaboration of government, migrant groups, the local community, non-governmental organisations and other international organisations, migrant remittances will continue to be used mainly for consumption, with a very small proportion being invested in sustainable investment.     

Improving food security in the rural areas of KwaZulu-Natal province,South Africa: Too little,too slow

Food insecurity is still remarkably high in the poorest areas of the KwaZulu-Natal province of South Africa. Many rural households struggle to have sufficient access to the food they need or prefer. This article explores the extent of food access insecurity and assesses the perceived impact on food security of an Empowerment for Food Security Programme that was launched in the Province in 2007. One of the programme aims was to improve agricultural practices in community gardens, home gardens and broiler production. Data were collected among 390 beneficiary households involved in these agricultural projects in 2010. Findings confirmed that experience-based food insecurity levels were still high, despite the agricultural support programme and the government income transfers. Nevertheless, respondents attribute an improved dietary diversity and better access to resources to the programme.     

Poverty,livelihood and class in rural South Africa

Using data from a national living standards survey undertaken in late 1993, this paper disaggregates and explores the economics of livelihood generation and class in rural South Africa in an effort to contribute to the ongoing and vociferous debate in South Africa about poverty and its alleviation. Pursuant to the suggestion of participants in a recent participatory poverty assessment, this paper analyzes what might be termed the class structure of poverty. After exploring the range of claiming systems and livelihood tactics available in rural South Africa, the paper offers a first look at who the poor are by disaggregating the rural population into discrete livelihood strategy classes. Non-parametric regression methods are used to then estimate and graphically explore the nature of the livelihood mapping between endowments and real incomes. In addition to identifying those endowment combinations that map to consumption levels below the poverty line (the asset basis of poverty), the topography of the estimated livelihood mapping helps identify the constraints that limit household's ability to effectively utilize their assets and endowments. These results suggest that poverty is a matter of not only having few assets, but also of constraints which limit the effectiveness with which those assets are used, and poverty and livelihood policy needs to be designed accordingly.     

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.     

Energy,environment and the rural poor in South Africa

The lack of adequate energy services imposes heavy social and environmental costs on poor rural households. The rural energy‐environment interface, however, is prone to oversimplistic analyses, especially in the case of the ‘fuelwood problem’, and to a lack of research. International experience suggests that deforestation is not necessarily an ‘energy problem’ resulting from the cutting of trees for fuelwood ‐ and therefore that it may not have an energy solution, like planting more trees for firewood. Instead, wood scarcity must be understood under multiple use of wood resources, and policies need to be multifaceted if they are to succeed. South African studies show that wood is becoming increasingly scarce in many areas; here fuelwood collection may contribute to deforestation more than suggested by international experience. In addition to the environmental effects of increasing wood scarcity and its social costs, borne largely by women, another serious problem arises from indoor air pollution caused by wood fires with social and health costs largely unaccounted for to date.     

The contribution of income components to income inequality in the rural former homelands of South Africa: a decomposable Gini analysis

Households in developing countries adopt livelihood strategiesthat often rely on income from a diversity of sources. Froma policy perspective it becomes important to understand therelative importance of income sources in driving inter-householdinequality and poverty. Recent theoretical advances allow forthe decomposition of the Gini coefficient by income componentsand for an assessment of the impact of changes in income componentson the Gini coefficient. This paper applies such a techniqueto South African data for the rural former 'homeland' areas.In doing so, the paper extends existing knowledge of South Africanincome inequality. Particular attention is paid to integratingthe decomposition work into debates about rural developmentpolicy in South Africa.     

Expenditure patterns and elasticities of rural households sampled in two communal areas of KwaZulu-Natal

Expenditure patterns among a sample of 99 rural households in two communal districts in KwaZulu-Natal were investigated to determine the potential impact of a widespread income shock on household expenditure. The results showed expenditure elasticities of close to unity for food. Low elasticities were found for staple foods. Elasticities for meat, meat products and poultry were close to unity, while horticultural products showed the greatest potential for demand growth within the food category. Of the statistically significant commodity categories, expenditure elasticities for durables, housing and transport were more than double those estimated for the aggregate food category. For consumer items, the district expenditure elasticities were estimated to be 0,76 and 0,71, while expenditure on social obligations would not increase with rural incomes. Wealthier households (the top expenditure decile) have a greater propensity for increased expenditure on transport, while poorer households show a greater propensity for increased expenditure on housing and durables. Although agriculture has the potential to generate widespread growth in rural incomes, the preference for manufactured goods casts some doubt on the strength of consumption multipliers for locally produced farm and non-farm goods in rural KwaZulu-Natal.     

The employment environment for youth in rural South Africa: A mixed-methods study

South Africa has high youth unemployment. This article examines the predictors of youth employment in rural Agincourt, Mpumalanga Province. A survey of 187 out-of-school 18 to 24 year olds found that only 12% of women and 38% of men were currently employed. Men with skills/training were significantly more likely to report employment, mostly physical labour (adjusted odds ratio: 4.5; confidence interval: 1.3, 15.3). In-depth interviews with 14 of the youth revealed that women are perceived more suitable for formal employment, which is scarce, informing why women were more likely to pursue further education and yet less likely to be employed. Ten key informants from local organisations highlighted numerous local youth employment resources while, in contrast, all youth in the sample said no resources were available, highlighting a need for the organisations to extend their services into rural areas. Because these services are focused on entrepreneurship, programmes to increase financial literacy and formal employment opportunities are also needed.     

Sustainable natural resource use in rural China: Recent trends and policies

In this paper we provide an overview of recent trends in the availability and quality of land and water resources in rural China, and examine the common presumption that rural resources are rapidly degrading in China. Data based on consistent definitions and measurement methods that have recently become available are used to that end. In addition, we analyse the impact of new policy initiatives to introduce market-based instruments and new institutions to address land degradation and water scarcity problems.We find that the decline in cultivated area has accelerated in the beginning of the new century. Ecological recovery programs, not urbanization and industrialization, are the major factors causing this decline. Ecological recovery programs are also a major force behind the increase in forest land area and the reduction of water erosion. Modest successes can be observed in the protection of wetlands and (until the mid-1980s) for the average quality of cultivated land. On the other hand, degradation of natural grassland and wind erosion have become much more severe in recent decades.In northern China, particularly in the 3-H (Hai and Luan, Huai and Huang) river basins, the availability of water has tightened. Groundwater tables have fallen considerably in the Hai river basin, because farmers increasingly rely on groundwater for irrigation. Evidence on other parts of northern China is mixed. Pollution of surface water is getting worse since the beginning of the 1990s in two major lakes in southern China and until recently in the rivers in northern China. Water quality problems in the larger rivers in southern China are less severe and getting less. These problems are to a large extent caused by agriculture-based non-point source pollution, especially in the major lakes and reservoirs.The sloping land conversion program, water pricing, and the establishment of water user associations and payments for environmental service projects are used as cases to examine the introduction of market-based instruments and new institutions. We argue that less government interference in the implementation of these instruments and institutions is likely to enhance ecological as well the economic benefits. Moreover, supportive measures to improve the functioning of land and labor markets are usually needed to ensure the sustainability of the impact of interventions.     

Access to paved roads,gender, and youth unemployment in rural areas: Evidence from sub-Saharan Africa

The poor development of road infrastructure is one of the main obstacles to economic activity and therefore to employment in rural areas of sub-Saharan Africa (SSA). Using cross-sectional data from 31 SSA countries, this study examines, from a gender perspective, the effect of access to paved roads on youth unemployment in rural areas in the region. The seemingly unrelated bivariate probit framework has been adopted in analysing the data. This approach is used for addressing the possible endogeneity bias that occurs when the dependent variable and regressor are both endogenous and binary. The major finding of this study reveals that access to paved roads in rural areas reduces the probability that young people will face unemployment. The aforementioned is more pronounced for young women than for young men. Moreover, the greater the proximity to the road increases, the greater its reducing effect on the probability of young people being unemployed. It is therefore important that the development of road infrastructure in rural areas be at the centre of public policies to address youth unemployment in SSA countries. This will significantly increase women's empowerment, through their participation in the labour market, and the full economic participation of young people.     

The impacts of tourism investment on rural communities: Three case studies in South Africa

Significant research, both locally and internationally, has been undertaken on tourism development and its impacts on the empowerment of rural communities. This article analyses the extent to which three tourism projects in South Africa, namely the Makuleke tourism initiative, Umngazi River Bungalows and the commercialisation of Manyeleti Game Reserve, have improved the livelihoods of rural communities and contributed to rural economic development. The projects are analysed in terms of both their economic and non-economic benefits, as well as their contribution towards the attainment of certain key policy objectives of the South African government.     

The contribution of social accounting matrices to economic enquiry in South Africa: A review∗

In 1986 the first social accounting matrix (SAM) for South Africa was published. Subsequent publications are reviewed in which this SAM was used in the exploration of economic structure and policies, particularly as these relate to income and expenditure patterns and distribution. The rapidly expanding international literature on the subject of SAMs is considered. Potential further applications and the requirements for drawing up a revised and updated SAM for South Africa are investigated.     

The role of secondary cities in managing urbanisation in South Africa

Following on from earlier work dealing with the role of metropolitan municipalities in managing urbanisation, this article assesses the role played by secondary cities in this regard. Although secondary cities have largely provided adequate infrastructure in line with the demands of population growth, three differences between metropolitan municipalities and secondary cities should be noted. First, on most indicators, secondary cities have more outliers than do metropolitan municipalities. Second, household incomes in secondary cities remain lower than those in metropolitan municipalities. Third, the ability of secondary cities to provide basic infrastructure does not differ much from that of metropolitan municipalities. In fact, there is evidence to suggest that, in terms of certain indicators, secondary cities have managed to deliver these faster than their metropolitan counterparts. We argue that the progress made in secondary cities during the period under consideration cannot be separated from the fact that the economic growth in more than 50% of secondary cities has been linked either to mining or to another dominant economic driver.