sdg conference 2016 theme: socio- economic development … 2 - armoedebestrijding e… · 2016...

www.salga.org.za

SDG CONFERENCE

2016

Theme: Socio-

economic development

as a means to tackle

poverty and inequality

at local level

Reuben Baatjies

General Manager: Strategy

and International Affairs

www.salga.org.zawww.salga.org.za

Brief

• The link between these specific goals (1 &10) and the other SDGs?

• How do local authorities in South Africa contribute to reducing poverty and

inequalities – what measures are they taking and what are successes &

pitfalls?

• In what way are South African local authorities supported by provincial and

national government to undertake this difficult task?

• What is the role of SALGA in this respect?

• What are the similarities and differences in fighting poverty and inequalities by

local authorities in other SADC countries?

• How can the SDG’s be used in policy development of local authorities trying to

address poverty and inequality?


Outline

• SDGs vis-à-vis MDGs

• Nature of poverty and inequality in SA

– A Tale of Two Cities – the spatial structure of SA cities – social, racial and economic segregation

• What contributions do the two cities make towards unsustainable livelihoods?

• LG’s role in reducing poverty and inequality

– Govt support for LG’s efforts

– SALGA’s role in supporting local government

• Key challenges in addressing poverty and inequality

• Differences and similarities in ensuring sustainable livelihoods in Southern Africa

• What is needed in policy development at local level to achieve SDGs?


1. Introduction _SDGs and post 2015

agenda

• 2015 = deadline year for Millennium Development Goals (MDGs)

– Was launched in tandem with developmental and transformative agenda of

democratic LG in South Africa _based on our understanding that LG is the key

site of delivery & development and is central to transformation of the country

– This realisation is hitting the global stage – the importance and evolution of

local governance and its recognition on the continent and globally has indeed

come a long way in a very short period of time

• MDGs established measurable, universally-agreed objectives for the achievement

of a number of developmental imperatives

– drove progress in several important areas (notably improved access to basic

services, healthcare etc)

• Of course, the world has changed quite a bit in the last 15 years

– job is unfinished for millions of people and inequality gap & social burden is in

fact growing in many countries


Post 2015 Development Agenda

• SDGs

– 17 goals

• #1 (reduce poverty and hunger) and #10 (tackle inequality and job

creation)

• Goal #11 (safe, resilient, sustainable and inclusive cities)

– But goals are interdependent and interrelated _sustainability is key link in

the value chain of development

• African Union Agenda 2063, the Africa we Want

– African cities of tomorrow, today (cities that are more sustainable and just)

• National Development Plan, VISION 2030

– Similar goals to the SDGs (since 2012, also vision 2030)

– Is current (2014-19) focus of govt plans and budgets

• Collectively = post 2015 development agenda for South Africa


2. Nature of Poverty and Inequality in SA _

an introduction

15 years after formally establishing democratic, people centered LG

– Acknowledgement that the LG experience in South Africa is a complex one

• democratising LG to represent and service all South Africans has been extremely challenging

– History of segregation and spatial and economic inequality will take generations to redress

There can be no doubt about the enormity of our twin challenge:

• 1) provide and extend basic services to as many (if not yet all) South Africans as

possible to restore decency and dignity to many who had been impoverished and

discriminated against, as well as to service our current and future economic needs

• 2) transform the spatial legacy of apartheid and build integrated human settlements

and social cohesion through greater integration of spaces into liveable places that

inspires a productive and inclusive economy


3. LG reducing poverty / inequality

• Provision of Basic Services (including Free Basic Services)

– Water (over 90% access now, 12m households by 2014)

• 6KL free to indigent households

– Electricity (from under 50% access in 1999 to over 90% electrification of households in 2014 = now 10.5m households by 2014)

• 50kw of free basic electricity per month to indigent households

– Sanitation (10,4m households by 2014) +/- 60%

– Refuse removal and solid waste (8,9m households by 2014) +/- 62%

• Official and disaggregated statistics show tremendous progress particularly in historically neglected areas like former homelands

– Eastern Cape, Limpopo, KwaZulu-Natal, Free State and Mpumalanga, despite continually chasing a moving target due to population growth & in-migration


LG reducing poverty / inequality in SA

• Infrastructure development and social amenities

– Housing and upgrading informal settlements

– Roads / access roads

– Integrated Transport Systems

– Street lighting

– Parks and sports facilities

– Digitalisation and opportunities


Integrated socio-economic

development

• Joburg has been rated as the best destination on investment attraction

and economic growth by 2015 PWC report entitled “Into Africa: The

Continent’s Cities of Opportunity”

– Its game changing socio-economic investments are highlighted by the

City’s Rea Vaya BRT public transportation system

– 1ST to pioneer a large-scale, municipal-run, mass-transit system in South

Africa, which created employment & connected outlying suburbs with city

• Jhb also prioritised a wide-ranging broadband capacity to be the back-

bone of their smart city initiatives = installing household with smart meters

to manage energy consumption / reduce energy losses (as in NEWCASTLE)


Integrated social and economic

development

City of Tshwane, through Project Isizwe, has rolled out some 800 free Wi-Fi sites to

date, offering coverage to over 1.4 million people

– Joburg & Ekurhuleni are not far behind with over 400 free Wi-Fi sites in each

city

• Opportunities of access in changing the socio-economic landscape in context of

general deprivation and exclusion

While the broader economy is shedding jobs, the City of Tshwane is not only creating

employment, it is creating entrepreneurs in the manufacturing industry

• May 2016 launched a refuse plastic bag manufacturing facility in Refilwe, Cullinan

– It is part of the township economies revitalisation programme

– The project employs previously unemployed local youth and women



development

TSHWANE has attracted key investments in the automotive sector of

the our economy

• which currently accounts for over 40% of automotive exports for South

Africa & 10% of total export of the country

• Ford investing R2.5 billion, to produce the new Everest SUV at its

Silverton Plant in Tshwane

– Will create further 1200 much needed jobs in the local economy

• Follows on the recent expansion plans by BMW (R6 billion) and Nissan

(expansion from 40 000 to 80 000 units) in their plants in Rosslyn



development

City of Cape Town continues to invest in becoming a smarter, more

liveable city, demonstrating that public-private partnerships are essential

• An estimated R8bn worth of dev underway in City Improvement

influencing growth in the CBD – rollout of accessible and affordable

broadband in a pilot project to the night-time economy & residential units

• Public and private sectors play a huge collaborative role – as a result, the

value of property has risen R6bn around 2005 to well over R24bn

• R1.7bn being spent by the City throughout the metro to connect its own

buildings and facilities, as well as those of Prov Govt

– Also using this infrastructure to provide competitive, high-speed fibre-

based services to tenants of commercial buildings



development

• eThekwini is the first public-sector entity to trial a smart city mobile application

– the ‘Smart City’ app integrates a number of services offered & is available on

smart phones & tablets, allowing it to interact with their customers in real time

• Ballito in the Kwadukuza Local Municipality in KZN

– Used to be a small holiday town, but today has grown into a suburban paradise

which achieved substantial growth _ King Shaka Int. Airport and Dube trade port

– Now anchor economy to rural hinterlands with large commercial park

• Butterworth in Eastern Cape saw installation of basic street lighting in the main rd.

become an attraction to a well-known food outlet setting up – which changed

business operating culture in the area and had a knock-on effect on businesses

• George has also initiated a public transit system that is now operational & this is

intended to expand to Knysna, Mossel Bay and Oudtshoorn

– eThekwini Transport Authority (ETA) has bagged a prestigious award for

being the best public transport provider in KwaZulu-Natal



development

• Thaba Chweu is a major attraction doing considerable work in investing in tourism

infrastructure, while Nkomazi is taking advantage of its close proximity to

Mozambique, Swaziland, and Kruger National Park, attracting thousands of visitors

• Similarly, Nkangala DM currently implementing an Agri-Parks programme, which

seeks to est. agricultural villages, a network of innovation systems of agro-

production, processing, logistics, training and extension services

• Govan Mbeki award for best integrated residential development = Bitou

• Best upgraded informal settlements programme has been awarded to Swellendam

and the greenest municipality awarded to Hessequa

• Sol Plaatje Municipality’s project on Breaking New Ground (BNG) Housing has

been identified by National Treasury as the best in the country


Deepening local democracy &

accountability

Governance turnaround in Nelson Mandela Bay Metro in 2016

• The city’s finances have shown a remarkable improvement, moving from a budget

deficit position in the previous financial year, to a cash positive position in excess

of R1 billion

• The City’s finances have stabilized and the metro is in a position to start

accelerating service delivery and transformation

– Such as the Port Elizabeth waterfront development and Operation Phakisa project

as an important Indian Ocean port, with connections to both east and west,

capitalising on strategic location of PE and make Ocean economy defining feature

of Nelson Mandela Bay

http://www.mype.co.za/cgi-bin/search.cgi?keywords=Port+Elizabeth


City performance & resilience

WHILE SA (SOVEREIGN) IS FACING RATING DOWNGRADES

• Ratings agency Moody’s Investors Service upgraded both the global scale ratings and national scale ratings of Johannesburg and Ekurhuleni by four notches, citing prudence and consistency in managing finances

• Ekurhuleni which is the leading manufacturing metro, received a rating of Aaa, a four-notch upgrade

• Moody’s raised Joburg’s global scale ratings from Baa3 to Baa2, the same as its sovereign rating – City’s national rating was raised by 4 notches, from A2 to Aa1

• Cape Town and many of our other cities have similar ratings

• Global scale rating of Baa2 is the highest possible rating that can currently be achieved

• This rating makes it easier for cities to compete in international bond markets as well as other project finance / investment opportunities


4. Govt support for LG efforts

• LG Equitable Share (of national revenue pie)

– Formula taking into account poor households and cost of free basic services

– LG receives around 8% share of national revenue pie

– 2012 Review of Equitable Share Formula relating to horizontal allocations between muns effected key changes to improve sustainability in re

– demographics;

– extent of poverty; and

– a new formula structure;

which resulted in municipalities with high numbers of poor now receives the highest allocations


Govt support for LG efforts

• MIG for new infrastructure

– Meant to tackle spatial re-engineering

– Through MIG municipalities can now not only build sports facilities but also upgrade facilities to develop all sporting codes

– It also allows those areas who have ltd resources to have modern facilities where women, children and ppl with disabilities can access it

• Approx. 4billion euros is committed to socio-economic dev in SA by range of national and prov budget allocations for infrastructure dev, sector diversification stimulation at local level (tourism, agri-PARKS, small business dev, informal economy), capacity support etc [not to mention private sector collaboration & investment]

• Legislation

– SPLUMA

• Tackle spatial inequality

• Municipalities are now exclusively responsible for land use & spatial planning = shaping development and spaces


Further support to LG

If we are to make significant inroads into our transformation & econ dev agenda through

people centered LG and effective cooperative govt

• then national and provincial govt should support a differentiated policy and resources

model, to ensure that municipalities play greater in the built environment, have greater

fiscal allocations and additional revenue raising powers to build coherent and integrated

SA and African Cities

In SA context – hence cabinet approved IUDF launched at SALGA NMA 2016 (May 2016)

– Appreciates that if we are to truly stimulate lagging economic growth, then we must see

local economies as starting point for leveraging productivity, innovation and job creation

– Govt must rally behind LG and use IDPs as the only and central planning instrument to

make a real impact on spatial transformation and integrated development in our spaces


6. SALGA role in supporting LG to

spatially transform SA and ensure

equitable access to basic services

• Representation, Lobbying and Advocacy

– Policy and legislation (promoting, protecting and advancing the role of LG and ensure legislation and policy take this into account

– Parliament (part-time representation)

• Employer Body Role

– Stable labour relations and service charter

– Professionalisation of LG in SA

• Capacity Building

– SALGA Centre for Leadership and Governance

– Executive leadership & coaching, councillor induction and training programmes


SALGA role in supporting LG to spatially

transform SA and ensure equitable

access to basic services

• Support and Advice

– MASP

– Small Town Regeneration/ Dev Programme (and PDP)

• Strategic Profiling

– International profiling and strategic partnerships to support local

economic development, youth development and job creation

• Knowledge Sharing and Peer Learning

– Municipal (Data) Barometer

– Knowledge, Innovation and ICT HUB


6. Nature of poverty and inequality in SA

currently –

Tale of two cities

Tale of Two Cities

• Despite these gains, our economic reality is still characterised by pervasive inequality

– Too many South Africans still live on periphery of main centres of opportunity,

spend majority of their salaries on transport to access work, and are generally

marginalised in mainstream economy

– Our transformation has been frustrated by economic dualism - effluent suburbs

remain enclaves for those in 1st economy and rest trapped in townships

• The latter spend a lot of money to access govt services

• Integration is therefore not only physical but about providing all essential

services to areas where people live ie. relatively similar living conditions

– Too many youth are not able to obtain the necessary skills and opportunities to

participate in the productive economy and we have not (as yet) successfully

diversified the structure of our economic landscape


Nature of Poverty and Inequality in SA

• Growing urban inequality has profound spatial effects

– on the one hand, rich opt out of public system (gated communities,

estates) &

– urban poor are confined to precarious and environmentally suspect

informal settlements

• In truth, urban planning has been ineffective and often, in fact, complicit in

exacerbating these inequalities

– Hence introduction of SPLUMA and Integrated Urban Development

Framework


7. Key challenges / Pitfalls to reducing

poverty / inequality

• Declining economic growth (less than 1% and forecast very low for medium term)

– Mining and manufacturing downturn (globally), undiversified local economies

= job losses and growing unemployment, now over 26% and extreme among

disenfranchised youth

– Growing indigent bill and indebtedness to municipalities

• Citizens increasingly unable to pay services putting pressure on municipal budgets

• Service delivery is occurring against a backdrop of declining revenues from services

– Less people are paying more but expectations are ever increasing

– Huge implications on under funding and cost of services…

– Pressure on social programmes

• Cost of Fee Basic Services escalating

• Growing indigency – social welfare bill

• Trends highlight both progress as well as the current economic challenges


8. Southern Africa and sustainable

livelihoods

Similarities: 63% informal settlements and vulnerable employment

• Africa and Asia will account for 90% of urban growth over the next 35 years, and have very young populations = massive potential expansion of the labour force

– Southern Africa has world’s largest youth population

• Most obvious impact of the current global economic system is rising inequality and its socio economic impact

– Only 28% of labour force in Africa occupy stable wage-earning jobs compared to 63% in vulnerable employment = 63% of urban dwellers in sub-Saharan Africa live in informal settlements

Differences: LG creature of statute / not recognised sphere or key partner in governance

(Malawi, Lesotho, Zimbabwe etc)

- Risk and reality: Inappropriate ‘centralised’ policies not adapted to local contexts,

high reliance on central govt policies and budgets

- Hence focus on decentralisation and local economic development in dev

cooperation programmes


LG is the locus to tackle inequality and

reduce poverty

Spatial reality to these economic shifts – global economy is highly

concentrated in urban areas

– 2000 metro areas are expected to contribute 75% of global economic growth

between 2007 – 2025

– 600 cities account for 62% of global growth and within that, a further 100 cities

= 35%

Core paradox: Cities aggregate the bulk of global economic activity, creating

conditions of vulnerability and exclusion for those outside these areas_ but cities

also represent the most promising site for governance reforms and innovation to

tackle –

– rising inequality, intensifying environmental stress and vulnerability, continued

economic crisis, increasing conflict – yet unprecedented technological

opportunity


Policy changes required to enable local leadership

Commitment to the sustainable dev agenda must be buttressed in policy reforms that entail the following key imperatives:

– Re-balancing intergovernmental division of powers and functions for greater integrated dev

• Strengthen the role and functioning of urban governments and cities in the overall governance system to address the multi-dimensional complexities

of urban growth and development

– Reform the intergovernmental public finance system to empower cities in particular with the necessary autonomy and resources to implement their

locally defined development pathways

• Reality – none of the major development challenges under the post 2015 development agenda can be resolved without the active leadership role of cities / local governments


LG leading the sustainable development agenda

Lessons from MDG implementation underlined the importance of LG and local actors in delivering the development agenda

– Localisation not only implementation of development policies at local level but means putting territories and spaces at the center of development

– MDGs showed that development goals can be reached only if owned and integrated into action at local level (in framework of multi-level governance)

Success of the SDGs will depend on unlocking the potential of LG to play a much greater developmental role in achieving our social & economic growth objectives over the next 15 years

• The world’s cities are central to employment creation (poverty eradication), inclusive economic growth and environmental sustainability

• In that context local economic growth and unlocking the potential of local spaces and places is crucial


LG at centre of more sustainable and just

futures

At this point in history, we must consider some fundamental choices, chief among them:

• Reconsider and redefine the dynamic of the increasing complexity of governance

– How to structure and modernize governance approaches to be more inclusive and people centered, as well as linking up the people with their

activities, ecosystems and institutions

&

– How our cities and towns can pioneer and provide development modes and transformation models that are more sustainable and just, particularly in our

historical context

• Due to accelerated speed of technological change, combined with the fluidity of capital flows

– it is essential that LG lead in addressing multiple, complex pressures and exploiting opportunities in bringing about more inclusive, integrated & liveable local realities


Vision 2030: Lets make Inclusive and

Sustainable Development a Local Reality

sdg conference 2016 theme: socio- economic development … 2 - armoedebestrijding e… · 2016...

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