The South African city in relation to international city form

South Africa's apartheid‐induced cities are on the threshold of a critical restructuring in the changing South Africa of the 1990s. The reform and planning of an effective post‐apartheid city require careful consideration of possible international similarities and links. This article seeks to provide answers to the following questions: What are the form and structure of international cities; what are the general characteristics of the South African city; and where do our cities fit in this international framework? Research has shown that the South African city corresponds to a multi‐faceted international profile of First World prosperity. Second World central intervention and Third World deprivation. While the South African city displays numerous similarities to international city form, it has obtained a unique character as a result of the legal enforcement of apartheid. Restructuring the post‐apartheid city will have to take account of the reality that the present South African city is intrinsically a deviant version of the colonial Third World city and that it is likely to revert increasingly to that city form as legal apartheid disappears.     

Supporting Local Economic Development in Post-Apartheid South Africa

South Africa's apartheid era has left a bitter legacy of retarded economic development. Local Economic Development has been identified by the South African government as a key strategy through which issues of development and, more importantly, poverty alleviation can be addressed by local governments. This paper reviews current Local Economic Development policy in South Africa, before proceeding to an examination and analysis of the impact of the primary government support mechanism designed to promote such development initiatives, namely the Local Economic Development Fund. Whilst such support is of vital importance, far greater levels of intervention will be needed to fully address the massive scale of current local development needs.     

Rural poverty in the Eastern Cape Province: Legacy of apartheid or consequence of contemporary segregationism?

Poverty in South Africa in general has not declined since 1994, and it is particularly severe in the former Bantustans. This paper discusses two important issues related to rural poverty in the Eastern Cape Province. It questions the applicability of the notion of legacy to explain recent trends in rural poverty and constructs an argument that explains these trends in relation to post-1994 segregationism. It argues that the notion of legacy is not useful in explaining why rural poverty remains entrenched, long after 1994. Rural poverty today cannot be explained as something left behind after the end of apartheid, because its causes and drivers are the same now in 2012 as they were in 1970. The continuity between the pre- and post-1994 periods is best described by exploring and understanding post-1994 policy decisions and power configurations as an expression of contemporary segregationism.     

Deconstructing ‘the foreign’: The limits of citizenship for explaining price competition in the Spaza sector in South Africa

An important component of the informal economy in South Africa, the Spaza sector is portrayed as dominated by foreign nationals who outcompete South African shopkeepers on price. Indeed, this business competition from foreign nationals is a key reason given to explain xenophobia in South Africa. This article sets out to interrogate this widely held assumption. Drawing on evidence from over 1000 Spaza shops from South Africa’s three main cities, the article makes the case that business competitiveness does not correspond with ‘foreign’ or South African identities in a simple way. Firstly, while citizenship or nationality is a factor, it is not captured by the labels of ‘foreign’ versus South African, as there are significant differences by nationality within the ‘foreign’. Secondly, not all foreign nationalities out-compete South Africans on price. Thirdly, place matters too, not only because we find different nationalities in different cities, but also because there are different patterns of price competition by nationality in each place. Lastly, there are product-specific dynamics that impact on price more profoundly than nationality. For example, regardless of nationality, milk is cheaper in Cape Town and bread is cheaper in Johannesburg.     

Land invasions during political transition: The Wiggins saga in Cato Manor

Urban land invasions have occurred in South Africa since the 1940s. However, since 1993 a new form of invasion has developed ‐ the invasion of developed and often serviced land and dwellings. This article examines the orchestrated land and housing invasion at Wiggins in Cato Manor. The focus is on the socio‐economic and political context that led to the invasion, which was highly organised and planned. The main reasons for the invasion are the serious housing shortage in Chesterville and the racist allocation of dwellings in Wiggins by the House of Delegates. The invasion took place on the eve of elections, when the moral and political authority of the apartheid state was waning. Although there were tensions, social relations between Indian residents and African invaders in Wiggins have improved. The Cato Manor Development Association has been appointed as development agent for Cato Manor and on its shoulders lies the inordinate task of resolving the Wiggins crisis.     

South Africa’s Economic Transformation Since 1994: What Influence has the National Democratic Revolution (NDR) Had?

When the African National Congress (ANC) became the democratic government of South Africa in 1994, it faced the challenge of transforming the economy. How this was to be done, however, revolved around two divergent views of the National Democratic Revolution (NDR) which forms the underlying ideology or glue that binds together the Tripartite Alliance comprising the ANC, the South African Communist Party (SACP) and the Congress of South African Trade Unions (COSATU), the largest workers’ union in the country. Transformation could be achieved either radically through measures such as nationalisation where political control would be transposed into economic power, or via a more liberal route involving the promotion of macro-economic development and the growth of company earnings. This article investigates how the ANC government has sought to bring about the much-needed transformation by providing summary analyses of the following macro-economic policies: the Reconstruction and Development Programme (RDP), the Growth, Employment and Redistribution (GEAR) strategy, the Accelerated and Shared Growth Initiative - South Africa (ASGISA), the New Growth Path (NGP) and the National Development Plan (NDP). Evidence suggests that while the NDR promised radical results, the economic transformation that has been taking place in South Africa since 1994 has been driven largely by neo-liberal principles. This is in contrast to what the ANC claims in various policy documents and what various scholars, such as Jeffery (2010:5) and Venter (2012), have also claimed. As South Africa’s economic fortunes have declined in recent years in the face of mounting external pressures and internal policy uncertainty, this deviation from the original ideology and plan is causing significant discord in the country.     

THE CYCLICALITY OF MONETARY AND FISCAL POLICY IN SOUTH AFRICA SINCE 1994

This paper uses a structural vector‐autoregression approach to discuss the cyclicality of fiscal and monetary policy in South Africa since 1994. There is substantial South African literature on this topic, but much disagreement remains. Though not undisputed, there is growing consensus that monetary policy has contributed to the remarkable stabilisation of the South African economy over this period. The evaluation of the role of fiscal policy in stabilisation has been less favourable and there is little evidence that a countercyclical fiscal stance was a priority over this period. This paper considers these issues in an empirical framework that addresses some of the shortcomings in the literature. Specifically, it constructs a structural model in contrast with the reduced form models typically used in the South African literature, incorporates the dynamic interaction between monetary and fiscal shocks on the demand side and supply shocks on the other, and avoids controversy over “neutral” base years and the size of fiscal elasticities. The model confirms the consensus on monetary policy, finding it to have been largely countercyclical since 1994. On fiscal policy, this paper finds evidence of pro‐cyclicality, especially in the more recent period, though the policy simulations suggest that the pro‐cyclicality of fiscal policy has had little destabilising impact on real output.     

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.     

First steps in the desegregation of South African towns and cities, 1991–6

South African towns and cities have begun the process of residential desegregation after the apartheid era. This article analyses the detailed enumeration tract results of the 1996 census to assess the extent to which this process has progressed. The resultant indices of intergroup dissimilarity suggest that the urban areas are still exceptionally highly segregated, indeed 'hypersegregated'. Furthermore, spatial desegregation is both group and place specific. Whites have desegregated more slowly than other groups, and integration between Africans and whites is extremely limited. Although there are some variations between places, the heritage of country-wide enforcement of urban apartheid has eliminated most regional differences. Nevertheless, segregation levels were usually significantly lower in KwaZulu-Natal than the other provinces. Furthermore, the national and provincial capitals do emerge as significant centres of desegregation.     

Integrated development planning or strategic paralysis? Municipal development during the local government transition and beyond

The launch of the Local Government White Paper in March 1998 provides a blueprint for the final form of local government in South Africa after its progression from apartheid structures, through the democratisation of councils, t.o the creation of developmental local government. According to the White Paper local government will centre on municipalities which will coordinate all development activities at national, provincial and local level, from private and public sectors. Municipalities will need to gain control over their devel opment resources, including land use. This article scrutinises the municipal planning legislation that has emerged since the end of apartheid in the form of the Development Facilitation Act (DFA) and the Local Government Transition Act, and argues that the Land Development Objectives (LDOs) of the DFA may not be an appropriate way to achieve developmental local government. The article argues that development tribunals could usurp the executive authority of municipalities to determine land use and therefore risk being both unconstitutional and counterproductive. It recommends that existing plan ning legislation is rationalised into an integrated framework that gives local government structures both legislative and executive authority over land‐use planning.     

SOUTH AFRICA AND THE NEW PARTNERSHIP FOR AFRICA'S DEVELOPMENT: ECONOMIC SPIN-OFFS AND LINKAGES

The New Partnership for Africa's Development (NEPAD) is a concerted effort by Africa's political leaders to develop a comprehensive and integrated strategic policy framework to raise current levels of socio‐economic development and reduce high levels of poverty across the African continent. The NEPAD framework recognises the need for African countries to pool their resources together in order to enhance regional development and economic integration. To this end, NEPAD emphasises capacity building and also seeks to solicit and disburse funds towards infrastructural development programmes and poverty alleviation projects, among others. South Africa's involvement with the rest of Africa has increased significantly since 1994. Trade exports, foreign direct investment (both market and resource‐seeking in nature) and public‐private partnerships have mushroomed in many parts of the continent. Many South African firms are providing the financial impetus for the infrastructural development and rehabilitation of African economies. This paper discusses salient economic linkages between South Africa and the rest of Africa within the framework of NEPAD. South Africa is the economic hub of sub‐Saharan Africa (and indeed of the African continent), with significant agricultural, manufacturing and services capacity. South African firms have invested in the development of a number of sectors in the rest of Africa, taking advantage of the new investment incentives offered by the NEPAD framework. The target sectors range from mining, the hospitality industry, engineering and construction, finance to telecommunications. These investments and economic involvements are crucial to the development of African countries and the relevant sectors that are important for the realisation of some of the objectives of NEPAD.     

The legacy of the Separate Amenities Act: Perceptions of recreation and future planning in the Northern Province,South Africa

Since 1990, South Africa has been undergoing a socio‐political transformation from apartheid to non‐racial democracy. This transformation culminated in April 1994, with the first‐ever general election in which people of all races participated. However, in this period of change there has not been much integration of previously separate recreational spaces, especially in more conservative regions such as the Northern Province. This article examines the perceptions, knowledge and awareness of urban blacks with regard to outdoor recreation. It also explores their expectations under the new political dispensation, as envisaged by the Reconstruction and Development Programme (RDP) of the new government. Finally, it looks at five key aspects of planning and development for deprived communities, namely education, marketing, structural constraints, public participation in development, and the development of tourism.     

Tax(i)ing the Poor? Commuting Costs in South African Cities

In this paper, I describe the monetary and time costs of commuting to work in South African cities, and how these have changed in the post‐Apartheid era. I interpret these results in light of a paper by Brueckner, who used a simple urban model to suggest that location and commuting patterns by race could change as a result of the repeal of Apartheid era legislation such as the Group Areas Act that made it impossible for black South Africans to live near the centre of cities. A key finding is that monetary and time costs of commuting in South African cities are high and have increased in the post‐Apartheid period. Journey times are much higher than the OECD country average and a sample of developing country cities. Part of the explanation for increasing average commute times is population growth in South African cities, which has been substantial. Both the population and number of commuters doubled between 1993 and 2013 in the six metropolitan municipalities (metros) analysed in this paper. Since commuting costs a substantial amount and generates negative externalities through congestion I also explore the financing of public transport.     

THE EMERGENCE OF INSTITUTIONALISED SOCIAL DIALOGUE IN SOUTH AFRICA

This paper looks at the conceptual framework of social dialogue, investment in social capital and some international definitions of social dialogue as background to developments in this sphere in South Africa. Social dialogue is viewed as a mechanism for problem‐solving and reducing transaction costs. The paper considers the ramifications of the 1979 Wiehahn Report on labour relations, as well as the nature of social dialogue in the apartheid era and its workplace origins. Institutionally, the stepping stones to the emergence of the NEF and Nedlac are discussed, together with some of the issues involved in, and formal outcomes of, Nedlac over the past eleven years in public policy choices. It closes with an evaluation of institutionalised social dialogue in South Africa and its future. “With the transition to non‐racial democracy in 1994, it became the task of an ANC‐led government to attempt to resolve the economic contradictions that apartheid had created. To achieve this requires massive economic and social changes, great programmes of investment and structural change. It is necessary to create the vital human capital needed at every level, from rudimentary literacy to the highest ranks of science and technology; to overcome enormous deficiencies in all forms of social infrastructure, including housing, schools, health, and transport; to return land to the black population and restore ravaged rural areas; to expand black ownership of mining, industry, commerce, and finance; and to diminish enormous inequalities in income and wealth. The new regime has made a promising start, but South Africa's past will exert a powerful influence on its present and future for a long time to come, and these huge tasks will not be swiftly or easily accomplished.” Charles Feinstein (2005 )     

Education and employment following apartheid protests

Demonstrations, rallies, boycotts, and other forms of protest were common under apartheid in South Africa. Using a compilation of more than 150 geocoded protests between 1948 and 1990, this paper compares people affected and unaffected by protests at every age throughout childhood. Exposure to protests before age 14 was associated with 2.7 percent fewer years of completed schooling. This difference was larger following violent protests, and for African residents of South Africa. On the other hand, people who experienced protests as children were up to 6.9 percent more likely to be employed as adults. The paper considers social solidarity as a possible channel connecting protests to changes in education and employment, and finds that places that had more protests during apartheid had lower reported levels of trust and physical safety in the years after apartheid ended.     

Inequities in under-five child nutritional status in South Africa: What progress has been made?

Despite the emphasis given to poverty reduction in policy statements and a substantial increase in social spending, money-metric poverty has shown little improvement since South Africa's transition to democracy in 1994. Alternative approaches to measuring well-being and inequality may show a more positive trend. This article uses the 2008 National Income Dynamics Study to assess the magnitude of inequalities in under-five child malnutrition ascribable to economic status. The article compares these results with those of Zere and McIntyre, who analysed similar data collected in 1993. In both cases, household income, proxied by per-capita household expenditure, was used as the indicator of socio-economic status. Children's heights and weights have increased since 1993 and being stunted or underweight has become less common. Furthermore, pro-rich inequalities in stunting and being underweight have significantly declined since the end of apartheid. This suggests that pro-poor improvements in child welfare have taken place. Policies that may have contributed to this include the Child Support Grant, introduced in 1998, and improvements in healthcare and the education of women.     

Turnover and payroll levies: An unexploited source of regional economic data

Detailed regional economic data detailing past and current patterns of growth are needed to determine regional and local comparative advantages of geographical shifts in economic activity within regions and cities. The level of government between local and provincial government provides a potential source of such data, as it has been collecting levies based on the turnover and payrolls of all formal businesses throughout South Africa since 1994. The authors have utilised the database of one such body, now known as the Umgungundlovu Municipality, to prepare detailed real-time-series for the period January 1994 to January 2001. Comparisons with regional data supplied by the DBSA have established the reliability of such data, and the turnover and wage bill series were then used to provide economic analyses of a geographical and sectoral nature.     

South Africa's ten years of democracy: development and media discourse

Newspapers play an important role in selecting, defining and communicating pertinent social issues, especially during changing times. Yet, in the case of the transition to a new dispensation in South Africa, it seems that there has been very little sustained analysis of the news media in terms of its approach to social change before 1994. Hence the apparent lack of vigorous public engagement about the interplay between contending relations of power and the way that conflictive relations are being dealt with in terms of either maintaining or changing the status quo. For example, even in instances where popular discourses were in favour of changing the apartheid order to a more humane society, it would appear that social change was discussed in a way that meant that any alternative understanding was based on an a priori set of assumptions about what would be a suitable socio-economic order for South Africa. Hence the contradiction between election promises of a ‘better life for all’ and the current increasing levels of poverty in South Africa.     

'Don't owe,won't pay!': A critical analysis of the Jubilee SA position on South African government debt

Jubilee 2000 (SA) supports the cancellation of South African national government (and other) debt on the grounds that it is odious debt from the apartheid years. The organisation has called for foreign creditors to cancel the debt voluntarily and has threatened to call for debt repudiation if such cancellation is not forthcoming. However, unlike voluntary debt cancellation, debt repudiation would probably have serious consequences for investment and growth. Furthermore, as most government debt has accumulated after the end of apartheid, and as most is domestic and marketable, the moral argument for repudiation is problematic. Jubilee 2000 (SA) is also calling for the government pension scheme (which owns a large proportion of the domestic government debt) to be restructured. Contributions to the pension fund may be excessive (as argued by Jubilee 2000), but the case is not clear. South Africa should publish a dual set of accounts in line with how other countries report their liabilities so as not to overstate the deficit in the eyes of investors.     

One Kind of Freedom: Poverty Dynamics in Post-apartheid South Africa

A 1993 South African living standards survey documented the legacy of apartheid in the form high levels of inequality and human insecurity. Drawing on a 1998 re-survey of households in the 1993 study, this paper explores whether this legacy has been superseded, or whether apartheid's end has been only one kind of freedom that has left households in a poverty trap from which they cannot escape. After proposing a theoretically grounded dynamic poverty typology that distinguishes stochastic from structural poverty transitions, the paper goes on to estimate that significant numbers of the South African poor are potentially trapped in a structural poverty trap and lack the means to escape poverty over time.