Developing the developmental state

Posted by Alison Siljeur | 2 Oct, 2007

Get more specific than the broad macro-economics of the Washington Consensus, and look at how the state-market combo affects poverty and inequality. This was the view of Professor Murray Leibbrandt at the Rhodes politics teach-in on Thursday. 

Implementing his advice, he painted a picture of a South African imbalance: the market had generated an even more unequal society than in 1994, while the state sought greater equity.

And he noted a further imbalance: the unequal South African market still delivers resources to the state (taxes), but the state isn’t delivering properly to the poor.

“We must be one of the top five spenders worldwide on social welfare,” he said, pointing to the expansion of social grants since 2000.

Read the rest of Guy Berger's blog.

Towards 2010: History's hand must inform our thinking

Posted by Alison Siljeur | 5 Jul, 2007

To transform the future we need to understand the forces that have created our present, writes Professor Francis Wilson, 3 July 2007

Readers of The Grapes of Wrath will remember the haunting descriptions of American families driven to desperation by drought, depression and agricultural mechanisation in the Dust Bowl of rural Oklahoma moving with their meagre possessions to seek a new life in California.

A similar process is under way in South Africa today. While we wait for our own John Steinbeck to burn this social upheaval into the national consciousness it may be helpful if a social scientist could provide the context within which this is happening so we may better understand the process.

Economists pay little attention to history. But in South Africa we know that such a two-dimensional view of the universe is inadequate. History matters because it has shaped the world in which we live and determines the parameters within which decisions have to be made.

Which is not to say that we cannot overcome the past but rather that in order to transform the future we need to understand the nature of the forces that have created our present.

Perhaps the place to begin is with a recognition of the impact of the hundred years' war, directed from Cape Town, on the Eastern Cape frontier during the period between roughly the French revolution and the discovery of diamonds.

Although early battles between settler-invaders and Khoi-khoi and Xhosa pastoralists took place under the governance of the Dutch East India Company, it was not until the British took over in 1806 that a policy was consolidated of systematically pushing the Xhosa east, back from the Gamtoos and Sundays rivers, across the Fish and the Keis-kamma, towards the Kei. Noel Mostert, in his classic study, has meticulously described the destruction of the Xhosa political-economy.

This conquest led to the establishment of reserves, Ciskei and Transkei, which the Xhosa, without sufficient land to support their traditional cattle-based economy, had to leave to work on the farms of the Western Cape and the diamond and gold mines further north.

The mineral discoveries ignited South Africa's industrial revolution.

Click here to read the rest of the article in the Cape Argus.

Fertiliser plant could feed more than the usual chosen few

Posted by Alison Siljeur | 26 Mar, 2007

Opinion & Analysis, Business Report, March 20, 2007
By Samantha Enslin

There is no doubt that the deal between Vnesheconombank, the state-owned Russian bank, and Chancellor House, the company that has been linked to ANC funding scams, will raise more than a few eyebrows.

This is not surprising, given that the relationship between government and business is already too close for comfort and the general perception that companies with strong links to the ruling party tend to get the first bite of any new business.

Be that as it may, if the feasibility study goes well, the deal could result in a new fertiliser factory for the country and this can only be good news for the local farming sector.

It will also give incumbent fertiliser companies something to worry about and may lead to a spurt in research and development that will boost the overall capacity of the industry.

So, while some well-connected people may again benefit from deals done under the auspices of government-supported programmes, in this case at least, maybe the country as a whole will benefit too. Read More.

Steps to address poverty fall far short of mark

Posted by Alison Siljeur | 16 Mar, 2007

by Anna McCord, Delivery Magazine, March 08, 2007 Edition 1
In a country where 18 million people live in households with an income of less than R300 per person per month, the Expanded Public Works Programme (EPWP) is failing to achieve its objectives. It's time to consider alternative responses to South Africa's crisis of persistent chronic poverty. Read the article.

Chronic poverty: Are we creating an underclass in South Africa?

Posted by Alison Siljeur | 15 Mar, 2007
Development Dialogues Monograph 8, Reflections by Anna McCord

"It is not just unemployment that is a problem; it is the nature of unemployment and where the burden falls, which is increasingly on the low and unskilled black population." Read the Monograph.

Measuring poverty in SA not as easy as drawing a straight line

Posted by Alison Siljeur | 2 Mar, 2007

by Hilary Joffe, Business Day, 28 February 2007


GOVERNMENT is committed to halving unemployment and poverty by 2014, in line with the promise the ruling African National Congress (ANC) made in its 2004 election manifesto. But though we have an official unemployment rate - Statistics SA's most recent Labour Force Survey puts it at 25,6% - we have not, until now, had an official poverty rate. Read the article.

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