a dynamic and creative economy in south africa:...

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Presentation by: Yusuf Patel [email protected] 14-16 APRIL 2010 New Delhi, India A DYNAMIC AND CREATIVE ECONOMY IN SOUTH AFRICA: EXPLORING RURAL-URBAN LINKAGES

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Page 1: A DYNAMIC AND CREATIVE ECONOMY IN SOUTH AFRICA: …rimisp.org/wp-content/uploads/2013/05/Ppt_Yusuf_Patel-2.1.pdf · Rural Development as Government Priority • The challenge for

Presentation by: Yusuf Patel

[email protected]

14-16 APRIL 2010

New Delhi, India

A DYNAMIC AND CREATIVE ECONOMY IN SOUTH AFRICA:EXPLORING RURAL-URBAN LINKA GES

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�Purpose of Paper

� Introduction

�Spatial and Settlement Structure in South Africa

�Concentrated Growth Patterns

�Rural Development as Government Priority

�New Role of Regions – Creative Economies

�Conclusion

Contents

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� Describe national space economy in SA & emerging

urbanization & migration patterns

� Show how both rural & urban areas are interdependent

& reinforcing this interdependence is a prerequisite for

a more dynamic & creative national economy

� Define & explore the meaning of ‘Creative” economy

� Explore how endogenous local economic development

& national programs can be mutually reinforcing

Purpose of Paper

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INTRODUCTION

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Introduction

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SA remains one of the most unequal societies in the world:

• Spatial justice in context of unique and deliberate apartheid spatial

engineering legacy

• Large structural unemployment challenges and high levels of spatial

inequality

• Half of population survive on 8% of the national income

• Official unemployment rate is 24,3%

• One in four adults and almost half of the youth aged between 15

and 24 have never worked

• Under the age of 35 account for 73% of the unemployed

• Poverty in both rural and urban areas

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SPATIAL AND SETTLEMENT STRUCTURE IN SOUTH AFRICA

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Spatial and Settlement Structure in SA

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Category Number of Municipalities

Total number of households(million)

Number of poor households

Total GVA (2004)% of national(2004)

Universal Household Access to all 4 Basic Services, 2007 (water, sanitation, electricity, refuse removal)

More than 90%

Bet. 60-89%

Bet.30-59%

Less than 30%

A 6 4,7 35,5% 58,9 1 5 - -

B1 21 2,2 41,5% 18,4 1 13 5 2

B2 29 1,1 43,9% 6,9 3 13 10 3

B3 111 1,6 51,8% 9,1 4 53 34 20

B4 70 2,9 73,5% 6,4 - - - 70

C1 25 (3,8) (44,4%) 0,3

C2 21 (3,9) (66,1%) 0,0

Total 283 12,5 55,9% 100% 9 84 49 95

Source: CoGTA, Local Government Turnaround Strategy (2009)

� 12,5m households in 283 municipalities in SA

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Spatial Landscape of SA

Municipal Spatial Differences:

� Border municipalities

� Coastal & inland municipalities

� Vast & sparse municipalities

� Small & dense municipalities

� Urban – rural municipalities

� Natural resource –endowed municipalities

� Bantustan legacy municipalities

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Provisional typology of settlements in South Africa

Number of places

Population(% of national)

Economic activity (% of national GVA)

People living under a minimum level of living (%

of national)Gauteng city region 1 22 39 14Coastal city regions 3 16 25 10Cities 5 6 5 6Regional service centres

41 14 15 14

Sub total URBAN as a % of National

58% 84% 44%

Service towns 44 4 3 5Local and niche settlements

600 9 5 12

Clusters and dispersed rural settlements

21 2 31

Farms/rest of SA 8 6 8Sub total RURAL as a % of National

42% 16% 56%

Source: Adapted from research produced by the CSIR (2008) to inform a national urban development framework.Note that a stricter definition of “urban” is applied in this adaptation than that used by the CSIR.

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CONCENTRATED GROWTH PATTERN

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on Most economic activity (88%), involving the majority of the population (71%) is concentrated on a small part of the

country’s surface area (7%)

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Concentrated Growth Pattern

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• Institutionally the “Developmental State” is weakest in rural areas but capability for urban growth managementis also a challenge

• The Poor move between rural and urban areas as part

of rational household survival strategy

• Raised income level is main pull factor to cities

• Movement patterns are complex and require policies

that are responsive to the diverse decision-making of

households

• Gauteng’s position and impact requires serious

consideration

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RURAL DEVELOPMENT AS GOVERNMENT PRIORITY

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Rural Development as Government Priority

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Economic transformation goal of the Ruling Party (ANC):

• A thriving and integrated economy

• A mixed economy

• Developmental State – South African Context

• Engage private capital strategically and be rooted amongst the

people

• Balanced development

Rural Development as one of the key priorities:

Comprehensive rural development strategy – (rural-urban

nexus)

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Rural Development as Government Priority

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• The challenge for South Africa lies in designing a new rural development

strategy that is mindful of the broader objectives of stimulating faster and

shared growth in the overall economy, by addressing constraints and

structural impediments to industrialisation.

• The danger may be to focus on spatial redress in a narrow or

oversimplified sense by top-down prioritisation rather than stimulating and

unleashing endogenous creativity of various municipal areas or regions.

• The other associated danger with ‘balanced development’ is to spread

out public sector resources too thinly across too many areas, thereby not

creating a critical mass of investment to catalyse long-term sustainable

development

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Development PerspectiveNational Spatial e (NSDP,

2006)

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Principle 1: Rapid economic growth

Principle 2: Provision of basic services to all

Principle 3: Focus spending on fixed investment on localities and/or

economic potential

Principle 4: Efforts to address past and current social inequalities should

focus on people, not places

Principle 5: Channel future settlement and economic development into

activity corridors

The NSDP is contentious in South Africa and seen as urban-biased

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Shared Space Concept

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•District and metropolitan municipal areas in South Africa are the ideal

regional arenas where alignment across government and local civil

society can be expressed in the District and Metropolitan level

Integrated Development Plans (IDPs).

•It is recognised that regional planning and development extends

beyond administrative municipal boundaries and irrespective of the

future of district municipalities, the geographical areas of focus at this

or other similar scale is still relevant due to their demarcation on the

basis of fulfilling some level of economic functionality criteria.

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NEW ROLE OF REGIONS – CREATIVE ECONOMIES

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New Role of Regions –Creative Economies

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•Increasing importance of regional development in context of

globalisation

•For some an opportunity for others regions are conduit to feed global

capitalist agenda

•“Creative” regional/local economies – defined more broadly than

“creative industries” such as music, fashion, design etc.

•It is about focussing inwardly on local resources/ culture/

history/resources to position territory outwardly taking advantage of

global trends/demand/needs.

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THANK YOU

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