Towards Carnegie III - Stellenbosch Universityblogs.sun.ac.za/seraj/files/2013/02/Substantive... · Towards Carnegie III Substantive report on the conference on: “Strategies to

Towards Carnegie III

Substantive report on the conference on:

“Strategies to Overcome Poverty and Inequality”

Held at the University of Cape Town, September 5-7 2012

Hosted by the University of Cape Town (UCT), with the support of the

National Planning Commission (NPC)

Socio-economic rights and administrative justice research group

CL Marais Building, Crozier Street, Stellenbosch

Tel 021 808 3195 (Secretary of Public Law Department, Ms A King)

Fax 021 808 2719 (Public Law Department)

www.sun.ac.za/seraj

September 2012

Tarryn Bannister, Margot Strauss and Shanelle van der Berg

2

1 Background

The University of Cape Town (UCT), with the support of the National Planning

Commission (NPC), hosted a national conference during the first week of September

2012. The conference represented the first stage in a two to three year process that

will culminate in the third Carnegie inquiry in South Africa. According to Katharine

Hall, Conference Coordinator, the aim of the conference was to extract and

benchmark the wealth of information and knowledge on poverty and inequality, to

see how this could be fed into Vision 2030 and the National Development Plan

(NDP) of the NPC and to formulate a collective research agenda for the next few

years.

Speakers from as far abroad as Japan, Oxford University and Princeton

University travelled to South Africa to share in this initiative and the conference drew

more than 500 registered participants. The conference also aimed to give expression

to President Jacob Zuma’s call for a national dialogue about the future by

acknowledging the mandate of tertiary institutions to engage in socially responsive

research and provided a valuable platform for sharing and debating amongst

academic researchers, government and practitioners. Furthermore, the conference

attempted to move towards new ways of understanding poverty and inequality by

focusing less on describing the problems and more on practical strategies to

overcome them.

Whilst considering these practical innovations, the conference also sought to

deepen debate and understanding about the structural underpinnings of both poverty

and inequality in South Africa’s particular socio-economic context. The numerous

intersecting thematic areas of the conference were therefore crucial in promoting a

better understanding of inequality and ways to address it and included the following:

macro-economic policy; unemployment and labour issues; education; legal

frameworks; entrepreneurship and livelihood strategies; social protection and

welfare; the family; public space, safety and violence; land and agriculture; towns

and cities; environment and resources; health issues and migration.

2 Introduction

3

UCT’s Vice Chancellor, Dr Max Price, set the scene for the Carnegie III

conference by highlighting some important facts about poverty, inequality and

development in South Africa since the inception of democracy in 1994. Dr Price

pointed out that although race was a social construct and no longer had any proper

legal definition, it was still a useful category to help construct a better understanding

of contemporary South African society. He remarked that although legal divisions

along racial lines have disappeared in post-apartheid South Africa, the legacy of

apartheid would result in inequality persisting along racially divided lines for many

years to come. In addition, the increase in income inequality will continue to plague

the country as long as productive individuals with the potential to work hard lack the

necessary skills to contribute to broader economic development. Regrettably,

statistics suggest that this group currently comprises up to 50% of the population. He

therefore concluded that sustainable strategies to overcome poverty had to focus on

education and skills development.

Accountability, citizen empowerment and practical solutions to poverty were

some of the other key themes highlighted during the opening of the Towards the

Third Carnegie Inquiry into Poverty and Inequality. Dr Mamphela Ramphele, founder

of the Citizens Movement, harnessed the opportunity to remind delegates that South

Africa was in a uniquely privileged position to have been afforded three opportunities

to address poverty and inequality. She called for urgency in finding solutions to

poverty and inequality and suggested an inclusive approach that binds citizens, the

government and the private sector in a united attempt to build a more egalitarian

society. Furthermore, she added that citizens must hold those in government

accountable at all levels.

In an examination of the relationship between the South African Constitution and

poverty, former Constitutional Court judge Kate O’Regan stated that the Constitution

represented more than mere ideas or words on paper. She argued that the

Constitution represented a vital tool with which to address the problem of poverty

and inequality in South Africa, as it clearly recognised the need to change the lives of

the poor in South Africa by enshrining socio-economic rights in the Bill of Rights, as

well as the responsibility of the state to achieve the progressive realisation of these

rights. O’Regan did, however, caution that the Constitution was not a self-executing

document and that this was one of the causes of the divide that exists between the

law as it is written up in books, legislation and judgments, and the law as it is

4

experienced on a daily basis. With reference to the gap between the promises of the

Constitution and the lived reality of millions of South Africans, O’Regan therefore

urged citizens to continue to harness the full potential of the spirit of democracy –

even though it could at times be both exciting and infuriating. She remarked that

although the Constitution represented an important roadmap, it would not take South

African citizens anywhere if they were not prepared to undertake the journey

themselves. She also explained that a key feature of South Africa’s Constitution was

the fact that it incorporated at least three key features to ensure that the country’s

democracy was not experienced as “purely procedural”. According to her, these

three features can be found in the Constitution’s value-based conception of

democracy, in its conception of clear substantive goals for South Africa’s

constitutional democracy and in its assertion of forms of civic participation in the

work of government – in addition to the right to work. In closing, she referred to the

work of the Noble prize-winning economist Amartya Sen, who has explained how

poverty denies people the capability of exercising their choices, and emphasised the

importance of increasing the capability of the poor to participate in and contribute to

South Africa’s constitutional democracy.

Trevor Manuel, Minister in the Presidency responsible for the NPC, was the final

member of this panel discussion and remarked that while it was important to have a

Constitution that empowers and enables citizens, true change remained dependent

on human action, because even though policy documents provided a guide and

framework they did not have the power to “walk, talk and act”. Quoting Esther Duflo

from the Poverty Action Lab at the Massachusetts Institute of Technology, Manual

also identified ideology, ignorance and inertia as three potential obstacles to

development and added that these three problems needed to be addressed before

meaningful implementation could take place. Reflecting on the differences between

the second and third Carnegie conferences, Manual stated that the papers

presented at Towards Carnegie III would not only help identify what needs to be

done to address South Africa’s problems associated with poverty and inequality, but

also represented a valuable resource that could assist people in alleviating poverty

and inequality across the world. He concluded by explaining that the NPC’s vision for

2030 is one in which the citizenry actively participates to ensure that education is

both accessible and adequate, that meaningful employment opportunities are

5

available for all, that people can live their lives to their full capabilities and that no-

one goes hungry.

3 Substantive themes

3 1 Legal frameworks

3 1 1 Questions of accountability

South Africa’s constitutional democracy is based on inter alia the underlying

values of accountability, responsiveness and openness.1 In a country characterised

by poverty and severe inequality, the principle of effectively holding the government

to account for its constitutional obligations to improve the quality of life of all citizens

cannot be overstated. It was therefore apt that the first parallel session within the

theme of “legal frameworks” at the Strategies to Overcome Poverty and Inequality:

Towards Carnegie III conference was convened to discuss the myriad questions

related to the issue of accountability.

As issues of accountability and transparency go hand in hand, it stands to reason

that the government of South Africa cannot be held to account for the action it takes

(or fails to take), the laws it promulgates or the policies it adopts to fulfil constitutional

rights, if the citizenry cannot clearly identify the values underlying the choices and

actions of the state. In the first presentation of this session, entitled A need for clarity

on the values that drive policy making, Marthie Momberg of Stellenbosch University

sought to shed some light on what values and value choices underlie various

government policies. Momberg commenced the presentation by defining the concept

of ubuntu and argued that if South Africans do indeed enjoy interconnectedness,

then the value of ubuntu should underlie at least those policies aimed at the

reconstruction or transformation of society. In commenting on an ubuntu ethos that

arguably permeates the language employed in the National Development Plan,

Momberg emphasised that “ubuntu consciousness does not only lie in the content of

policies, but should also be embedded in the way government interacts with key

stakeholders and the general public throughout the processes of development,

1 Section 1(d) of the Constitution of the Republic of South Africa, 1996.

6

implementation, maintenance, reflection, revision and further development”. The

author went on to highlight the different meanings of concepts such as mutuality,

solidarity and ubuntu, noting that different values result in different decisions as well

as different decision-making processes.

Recognising that accountability will be hollow if those held accountable are

unable to utilize stakeholder feedback to improve performance, the next paper

addressed practical methods of using feedback by stakeholders and beneficiaries of

development to evaluate and manage performance of development programs.2

Lawrence Matemba of the Presidency similarly sought to introduce practical

solutions by proposing a complex conceptual framework to aid the (until-now

fragmented) assessment of government performance while simultaneously

promoting improved design and implementation of policies, programs, interventions

and strategies.3

Paul Hoffman of the Institute for Accountability in South Africa brought light to

bear on the dire circumstances that can result when accountability is lacking. In

presenting a paper entitled The effect of corruption on poverty, the author’s definition

of corruption as “theft from the poor” highlighted the serious impact of widespread

corruption on efforts to combat poverty from the outset. Noting that as “available

resources” in terms of sections 26 and 27 of the Constitution dwindle, the obligation

to take “reasonable measures” to realise inter alia the rights of access to adequate

housing and to sufficient food and water simultaneously becomes watered down.

Hoffman pointed to the significant impact that corruption can have on the availability

of resources if it is borne in mind that R675 billion has been lost to corruption since

the inception of democracy in 1994. Expanding on the threat that corruption, which

reaches to the highest echelons of government, poses to the fight against poverty,

the author noted that a “loss of as much as R30 billion a year on corruption in the

state tender process, one which is meant to be compliant with the values of section

217 of the Constitution, is a blow to the ability of the state to fund social expenditure

aimed at sustainably alleviating poverty”. Despite these highly worrying figures,

however, a variety of measures exist to enhance accountability, thereby rooting out

corruption and contributing to the alleviation of poverty. Parliamentary oversight of

2 A Proctor & D Bonbrights, Keystone Accountability, Improving poverty program performance

measures: Just ask them! (2012). 3 L Matemba Assessment of government performance in post-apartheid South Africa: A practitioner’s

perspective (2012).

7

the Executive and “Chapter Nine Institutions” is an important accountability-

enhancing avenue to explore. Nevertheless, the system of proportional

representation presents a material obstacle to the triumph of accountability and

eradication of corruption since accountability to party bosses, as opposed to the

people who are represented, is promoted.

During the presentation and the discussion that followed, it was thus concluded

that the Van Zyl-Slabbert Commission Report on the introduction of (at least partial)

constituency representation must be given serious consideration in an effort to foster

accountability. Freedom of the press and the establishment of a truly independent

anti-corruption commission (or “integrity commission”) are similarly vital. The session

served to highlight the urgency of exacting accountability and eliminating corruption

in any strategy aimed at alleviating the desperate plight of those still living in poverty

in South Africa. Although the role of the courts was implicit in this discussion, it was

not adequately or specifically addressed. However, this issue was specifically

addressed in the next session within the “legal frameworks” theme.

3 1 2 The Constitution, law and justice

A sobering mini-plenary panel on The Constitution, law and justice, chaired by

advocate Geoff Budlender, attempted to shed light on the extent to which the

Constitution and, by implication the judiciary, have contributed to – or impeded – the

realisation of the transformative goals that South Africa must reach if poverty and

inequality are to be eliminated. A close corollary to this discussion was thus the

extent to which the judiciary has succeeded in exacting state accountability in

relation to the fulfilment of its constitutional obligations.

Pierre de Vos commenced his presentation by surmising that the substantive

equality clause, coupled with the inclusion of socio-economic rights in the

Constitution, might lead one to assume that the Constitution represents a

fundamental tool in the fight against poverty and inequality. Paradoxically, however,

he opined that a tendency to seek redress from the judiciary was misplaced, as

poverty and inequality constituted problems that were best solved through the

deployment of a political (and not judicial) process. A one-party system of

governance and a patent lack of political will to eradicate these problems may be

8

disheartening, but seeking refuge in the unelected judiciary remains naïve, as this

institution is incapable of effecting any significant change.

Nevertheless, De Vos commented on the interesting and creative move on the

part of the Constitutional Court in devising the novel remedy of meaningful

engagement. The author was of the opinion that this new participatory remedy could

potentially serve as a bulwark against the dangers posed by a one-party system, as

it infused the law pertaining to government’s obligations in cases of eviction with

further duties to observe standards of responsiveness and openness. Meaningful

engagement can on this view be seen as a mechanism capable of transforming a

top-down process into a more egalitarian, participative process that can help hold

elected officials accountable.

De Vos went on to argue that in the absence of economic status or poverty

constituting a listed ground of presumptive discrimination, the constitutional

guarantee of substantive equality will not result in any real change in the structural

inequality prevalent in South Africa. The material impact that the recognition of

poverty as a prohibited ground for discrimination would have on the status quo as far

as economic and power structures in society are concerned further militates against

any effective transformation that could possibly result from the constitutional equality

guarantee. De Vos concluded that ultimately, in the absence of political competition

in the form of a true multi-party democracy, the Constitution itself could not induce

any fundamental change to South African society.

Sandra Liebenberg continued the discussion by stating that in the midst of the

poverty and inequality existing in South Africa, we are faced with a dual crisis of

participation and organisation. Service delivery protests illuminate a distrust of

political leaders by the people they are meant to represent, whereas the great

disparity between the corporate sector in South Africa and workers/consumers

continues to exist. An absence of trust in turn results in violence becoming the only

language available to an increasingly desperate populace. The question posed by

this reality is thus whether the Constitution is capable of offering a different option for

the poor?

Liebenberg noted that, at least on paper, the Constitution represents the most

favourable legal framework possible. However, the potential efficacy of the

Constitution as an instrument to alleviate poverty and inequality has been

jeopardised by the courts’ tendency to raise institutional limits as a justification for

9

not demanding more of government in relation to fundamental constitutional socio-

economic guarantees. Moreover, the judicial rejection of the assertion that there is a

“minimum core” of socio-economic resources that the state is obliged to provide in

favour of a model of reasonableness review has effectively limited the courts’ power

to intervene. The Constitutional Court has granted the government wide leeway to

adopt policies aimed at providing socio-economic goods, and has simultaneously

limited its role to only intervening when (1) government takes no steps to realise

socio-economic rights; (2) the policies or programs adopted make no provision for

those in desperate need; (3) a group has been excluded from the benefits of a

government policy or program; or (4) government fails to continually revise its

policies. The Court has thus largely restricted its responsibility to constituting a

catalytic function as opposed to recognising an ability to substitute its own decisions

for that of government. It can thus be concluded that socio-economic delivery and

the definition of socio-economic rights or programs will not be forthcoming from the

judiciary.

Recognising the limited role of the courts, Liebenberg pointed out that we must

turn our attention to participatory governance instead. Several judgments of the

Constitutional Court, as well as the well-entrenched requirement of procedural

fairness in the sphere of administrative justice have illustrated the importance that

participation can play in rendering government action constitutionally compliant. In

Liebenberg’s opinion, the remedy of meaningful engagement represents an offshoot

of participatory governance. However, the author cautioned that a judicial retreat to

demanding meaningful engagement is not without pitfalls. In a society characterised

by profound power-imbalances, a real danger exists that poor people will negotiate

away their rights. In addition, meaningful engagement does not and should not

relieve the courts of their duty to give content to socio-economic rights. Finally,

meaningful engagement can easily descend into a technocratic, box-ticking exercise

and top-down process. Echoing the conclusions drawn by De Vos, Liebenberg

closed by opining that without political will, a corporate sector that aims at more than

mere profit-seeking and without an active civil society, constitutional rights are

doomed to failure.

Judge Dunstan Mlambo, Judge President of the North and South Gauteng High

Courts, proceeded to criticise the government for in reality having achieved very little

thus far. Policies of black economic empowerment have been characterised by

10

fronting and the benefits of such policies have largely not trickled down to those

living in poverty. Moreover, RDP housing projects have been relatively unsuccessful

due to poor workmanship and widespread corruption on the part of those who

manage housing lists. Mlambo J questioned what the courts’ role could be in

transforming the complex set of problems that hamper the elimination of poverty and

inequality. The judge asked whether the South African judiciary is not perhaps

obliged to follow a more activist approach, similar to that of the Indian courts who

adopted a style of adjudication that promoted social justice and the aims and values

that the Indian Constitution demanded. Mlambo J concluded by asking whether the

rule of law does not demand a more activist approach on the part of the courts. He

went on to caution that the judiciary (and all of society) must wake up to the

challenge of poverty and that the Constitution should serve as a guide to peaceful

transformation whereas judgments must bring meaning to the lives of all South

Africans.

3 1 3 Legal frameworks, law and justice

The final session within the Legal frameworks theme dealt with one of the central

themes that ran through the conference, namely the debate over the relationship

between public and private responsibilities. Within this context, the potential of both

judicial and political strategies to overcome poverty and inequality was also

discussed. Rita Kesselring commenced the discussion by delivering a paper on

apartheid-era victims’ recourse to the courts and everyday attempts to overcome

embodied inequality and experiences of violence. It emerged that in some cases,

legal recourse has proved more effective and provided greater social recognition

than the political route, especially for poorer groups. However, it was pointed out that

the confrontational and depoliticising elements of the judicial process, in addition to

the limits of legal language, should be re-examined in an attempt to promote

dialogue. This is also necessary in order to make law more responsive to

transforming subjective identities of “victimhood” to autonomy.

June Sinclair continued the discussion with a paper in which she argued that

there is an urgent need to give meaning to the right to social assistance. Sinclair also

argued that the South African judiciary reconsider its role in relation to combating

poverty and the enforcement of the Bill of Rights, especially in light of the apparent

11

failure by the political and elected branches of government to fulfil their constitutional

duties. Given that the Constitution guarantees social assistance for “everyone” in

need, a constitutional challenge to existing under inclusive legislation should result in

the introduction of a Basic Income Grant, the costs of which could be regained

through taxation and other means. Although this level of responsibility on the

judiciary is not ideal, it is mandated by government recalcitrance. Courts should

interpret the right of access to social security before resorting to weak

reasonableness review, and should issue a structural remedy if the current

legislation is found not to pass constitutional muster. Structural remedies with

retained supervisory jurisdiction can serve as a catalyst for government action and is

not barred by the doctrine of separation of powers in that the Constitution empowers

the courts to make any order that is just and equitable.

Sharlene Swarts followed with a discussion of restitution and proposed a revised

paradigm for the transformation of poverty and inequality in South Africa. Swartz

argued that a multi-dimensional approach to restitution of personhood could serve to

spur a more comprehensive research program into the diverse facets of restitution.

Vasti Roodt then presented a paper on fairness and the moral justification for social

policy. She highlighted issues related to the justification of social policy and

proposed that a social policy can be justified to the extent that it promotes fair terms

of cooperation for all participants, paying particular attention to how such terms affect

the most vulnerable members of society.

The debate over public versus private responsibilities was most pronounced in

the discussions on children’s rights. Desia Colgan spoke about the role of

government and civil society in ensuring access to social justice for children,

focusing particularly on the importance of succession laws and access to housing for

children. She highlighted that orphaned children are particularly vulnerable to abuse

and exploitation which has been compounded by the economic desperation of many

South Africans. This highlights that while there are private responsibilities to protect

children, powerful entities such as the state also have a particular duty to actively

protect and empower them.

A further theme that was consistently highlighted throughout the discussion was

the need for greater participation by the most vulnerable members of our society. In

this regard, Solange Rosa presented a paper on a human rights based approach to

poverty and inequality, emphasising the critical importance of participation, which

12

although constitutionally entrenched, may deserve increased recognition. However, it

was striking that often the most vulnerable groups (such as children) who are

disproportionately affected by poverty and inequality have no power to participate.

The confrontational nature of the judicial system, as well as an automatic retreat

to deference, must therefore be transformed into a forum where dialogue between

various actors is promoted and the courts fulfil their constitutionally mandated

obligation to interpret and enforce the rights enshrined in the Bill of Rights. Research

into access to justice shows that although the legal system must be reformed and

tensions between networking stakeholders can escalate, projects aimed at improving

access to justice can succeed. Certain legal concepts, such as restitution, are also in

need of elaboration in order to recognise other non-legal attributes of human

experience. Participation is key and although the courts have recognised this, it has

not been practiced as much as it could be. Reaching consensus on the moral

justification for interventionist social policy can improve the legal framework in which

action aimed at eradicating poverty can occur.

A multi-sectored collaboration between the judiciary and civil society is called for.

Participation is critical, as is the promotion of agency of the poor, in order to

transform a sense of victimhood into an empowered citizen. Civil society plays a key

role in transforming legal frameworks to allow access to justice and meaningful

participation by all stakeholders, especially the poor. More research is needed on

how to practically improve access to justice as well as how restitution can be

understood and harnessed to heal “racial wounds” of the past. Although participation

and collaboration are essential, this by no means relieves the courts of their duty to

enforce the Constitution. The role of the courts is vital in that courts can hold

government to account and demand tangible relief for the poor. The fact that

institutional and legitimacy limits exist does not excuse the judiciary from creating

means of overcoming these obstacles and fulfiling their own constitutional duties

while simultaneously compelling the political and elected branches to fulfil theirs.

What ultimately emerged from this session and from the Carnegie conference as a

whole is the need for a more multi-sectored collaboration between the judiciary, civil

society, private organisations and the government in alleviating poverty and

inequality.

3 2 Early childhood development in South Africa

13

While poverty and inequality negatively affect millions of South Africans, children

experience such disadvantage in unique ways. For example, poverty deprives

children of a number of socio-economic rights, resulting in inadequate access to

health care, education, social services and nutrition. This subsequently severely

influences their development, with negative consequences later on in life. In this

regard, Chris Desmond presented a paper titled Early childhood development:

Providing the first best chance for all children that illustrated the integral importance

of the first 1000 days of a child’s life. He highlighted that early childhood

development is inextricably linked to the level of income that one earns later on in

life, in addition to the number of hours that one will be required to work. After

providing an overview of the National Integrated Plan for Early Childhood

Development (2005-2010), he highlighted that while there has been great progress

in this sphere, there are still significant gaps in the existing framework. For example,

a broader definition of early childhood development programmes (than is currently

provided for in the Children’s Act 38 of 2005) is needed in order to cover all aspects

of children’s development from conception to the foundation phase of schooling. In

particular, the current neglect of 0-2 year olds is a significant gap that needs to be

addressed. There is also insufficient support for parenting, prevention of stunting

among young children and safe and affordable child care for very young children.

David Harrison then discussed The state of early childhood development in South

Africa by focusing on what needs to be done to improve current services. He pointed

out that while South Africa has an established infrastructure for many other public

service areas, in relation to early childhood development, there is no easy platform to

build on and improve. He went on to state that South Africans must start planning

efficiently for future populations so as to achieve comprehensive coverage for 0-4

year olds. He then highlighted that South Africa needs a new framework for provision

of early childhood development services, and that such a framework needs to adopt

a holistic approach. He further pointed out that the state needed to break the cycle of

exclusion of the poorest children.

Eric Atmore then presented a paper on Early childhood development as a

strategy to eradicate poverty and reduce inequality that highlighted the issue of

inequality. He pointed out that despite the progress that has been made in the field

of early childhood development; the poorest children are still falling through the gaps.

14

He focused particularly on early childhood development centers within poor areas,

which are currently suffering from inadequate infrastructure and a lack of state

support. He highlighted the need for improved training of teachers in addition to

governing bodies, pointing out that early childhood development centres are

structured and run by such governing bodies.

During this session, there was an extensive debate over public versus private

(parental) responsibilities, with a particular focus on the role of the state in facilitating

children’s development. While the speakers highlighted the need for greater

participation and collaboration between civil society, private organisations and the

government, they also highlighted that there are particularly vulnerable parents that

urgently require state assistance, such as disabled parents. It was also argued that if

early childhood development was recognised as a high state priority, this would

result in more private institutions supporting such programmes. It was further

suggested that more incentives should be given to private institutions in order to

encourage their involvement. An example of such incentives was the introduction of

tax breaks for employers that provide child care services. Given that children are

particularly vulnerable to exploitation and abuse within the private sphere, it was

consistently pointed out that the state has a particular duty to protect the rights of

children. Eric Atmore further pointed out that more children are living in poverty in

South Africa than ever before, thus highlighting the need for the state to take positive

steps to assist such children.

3 3 Urban development and governance

3 3 1 Local economic development

The management of the apartheid city was characterised by a complex process of

functional inclusion, spatial segregation and political exclusion.4 Urban administration

was primarily the responsibility of white city and town councils, who also had

authority over urban areas demarcated for other population groups,5 and was

informed by the view that black Africans were only temporary sojourners in white

4 M Swilling, W Cobbett & R Hunter “Finance, electricity costs, and the rent boycott” in M Swilling, R

Humphries & K Shuban Apartheid city in transition: Contemporary South African debates (1991) 175. 5 S Bekker & A Jeffery Local government in urban South Africa: A normative approach (1989) 3.

15

cities as initially entrenched in the Black (Urban Areas) Act 21 of 1923. However,

despite attempts to curb urbanisation through systems of separate development and

influx control policies, South African cities continued to grow as poverty and a lack of

socio-economic opportunities led to the migration of large numbers of rural black

Africans to the cities.

Although democratic initiatives have gained momentum over the last twenty

years, in an attempt to reverse the effects of racial planning and spatial segregation

on the urban geography, the contemporary South African city still reflects the deeply

rooted impact of apartheid urban planning. South African cities remain characterised

by racially fragmented and discontinuous land-use and settlement patterns,

dysfunctional and inefficient spatial ordering, low-level population density and the

concentration of the poor in highly dense areas on the peripheries of cities and

towns.6

Given the complexities associated with governing South Africa’s hybrid post-

apartheid cities, the theme of Urban development and governance represented a

particularly important component of the broader dialogue on poverty and inequality

within the context of Carnegie III. The first parallel session within this theme dealt

specifically with the issue of local economic development (LED). During a

presentation entitled Changing gear: Cross-national lessons and proposals on

inclusive governance, leadership and economic development in cities, Lindiwe

Msengana-Ndlela of the Human Sciences Research Council attempted to explain

how and why it is that the urban poor continue to be subjected to exclusionary socio-

economic policy outcomes. Her paper was informed by an empirical study, which

attempted to systematically integrate fragmented research on the themes of urban

governance, leadership and local economic development. This integration enabled

the identification of potential lessons for policy and practice as well as possible

interventions that could contribute to inclusive outcomes. Msengana-Ndlela argued

that, in view of the persistent exclusionary socio-economic outcomes in cities,

changing the approach to governance and leadership processes related to economic

development is imperative, as existing urban governance structures in themselves

are not conducive to local economic development. The presentation also

6 D Hindson, A Mabin & V Watson Restructuring the built environment (1992) Report to Working

Group 5 of the National Housing Forum 6.

16

emphasised the importance of property in the production of urban space in as far as

it represents a productive asset.

Recognising the importance of local economic development initiatives in

addressing poverty and inequality in South Africa, Herman Geyer of the Centre for

Regional and Urban Innovation and Statistical Exploration at Stellenbosch University

continued the discussion by explaining how LED initiatives in South Africa had

shifted their focus from a top-down macro-economic approach to a community-

centred and pro-poor approach. The author cautioned, however, that current pro-

poor LED policies still suffered from a cognitive divide, as they inadequately applied

international “best practices” in accordance with neo-classical theory, which fails to

capacitate local recipient communities. Geyer argued that institutionalist approaches

to LED could revitalise current pro-poor LED initiatives as they focus on

strengthening socially constructed institutions and conventions. The author offered

examples that illustrated how institutional initiatives were more successful in

providing economic development in deprived communities than prescriptive

government approaches to LED and concluded by suggesting that in the current

political environment, it is more equitable to implement economic development

initiatives that are representative of the social structure of the community itself, than

a normative prescriptive approach.

The following discussion by Charles Nhemachena, also of the Human Sciences

Research Council, grounded the aforementioned theoretical discussions within a

practical account of local perspectives on promoting equity and sustainability within

poor South African communities. His paper focused on the experiences of poor and

marginalised urban communities in Gauteng and the findings of his paper illustrated

the experiences and concerns of these communities when it comes to policy

discussions around issues of equity and sustainability. The results presented local

perspectives and understandings of the lived reality of deprivation and inequality, its

affect on the living conditions of the communities concerned, as well as possible

alternatives to achieving an equitable and sustainable future at the local level.

Nhemachena concluded by explaining how these findings proved valuable for

generating relevant messages related to the making of policy decisions aimed at

addressing issues of deprivation and sustainability in poor urban communities.

Overall, the presentations within this parallel session highlighted the need for

flexible approaches to LED initiatives that take into account inherent differences

17

(associated with time, geographical location, cultural and gender needs, etc.)

between different poor and marginalised groups. It therefore recognised that the

poor are not a homogenous group and that LED strategies would consequently have

to be adapted according to changing local circumstances and needs. At a practical

level, the discussion illustrated that older human settlements such as Soweto and

Diepsloot, for example, were often more advanced in terms of development issues –

particularly pertaining to women, health and education – than less established

settlements. This factor not only greatly affects the implementation of various LED

strategies at the local level, but also illustrates the important role that well-

established and functional community networks play in the implementation of LED

and other development initiatives. Furthermore, the importance of recognising and

capturing the local knowledge and experience base of a particular community before

LED initiatives are implemented cannot be overstated. From the discussion it

became evident that a sound understanding of an impoverished community’s

existing knowledge and experience base, as well as their unique frame of reference,

is a fundamental prerequisite for the successful implementation of LED initiatives.

The session concluded with a poignant reminder that, ultimately, good leadership in

poor communities is essential in order to harness its capabilities and to help shape

common visions and values regarding the sustainable development of that particular

community. The discussion can, however, be criticised for adopting a modernist

perspective on LED by failing to broaden the scope of the discussion to include

informal economic activities. This is in line with a general tendency in South African

literature, which often subsumes local informal activities within the ambit of LED

policy and encourages informal activities to take on, or adapt to, the characteristics

of the modern or formal world.7 Furthermore, this approach tends to replace the

descriptive term “informal” with the label of small, medium and micro-enterprises

(SMMEs), which ineffectually excludes the economic voice of the urban poor from

the discussion and unduly narrows the scope of the debate. This approach is

contrary to emerging literary debates that suggest that the scope of what is termed

“informal” is much wider than previously suggested and should, therefore, be

adequately explored.

7 P Harrison, A Todes & V Watson Planning and transformation: Learning form the post-apartheid

experience (2008) 225.

18

3 3 2 Informal economies

Within the broader discussion on urban development and governance, the theme

of Informal economies, entrepreneurship and livelihoods: Context and dynamics not

only complimented the prior discussion on LEDs, but also provided an alternative

perspective on how the structure of the formal economy impacts on the opportunities

of poor and marginalised groups. Kate Philip,8 from the Trade and Industry Policy

Secretariat, commenced this parallel session by explaining that in the face of the

long-term unemployment crisis that increasingly threatens South Africa’s social and

economic stability, employment has become increasingly significant in policy

developments, while the focus has shifted noticeably to the structural constraints on

the creation of employment within the economy. Although the New Growth Path9

attempts to tackle these issues by emphasising the importance of inclusive growth

and distribution, amongst other things, it also holds major implications for what used

to be referred to as “the second economy”. Furthermore, while much scholarship has

focused on justifiably commenting on the concept of the second economy, the

inequalities that characterise South African society and its economy mean that

policy-making processes still struggle to straddle both ends of the spectrum.

Consequently, policies that benefit the formal end of the economy remain far

removed from the economic concerns of poor and marginalised communities. The

author argued that the sharp divides in access to urban resources and opportunities

must be located within the context of structural inequality. Philip pointed out that the

key elements of the legacy of apartheid were still present in contemporary South

Africa and that they were simply being reproduced in new ways by common sets of

processes within the economy. She also focused on how the highly unequal

structure of the core economy affected economic opportunities at the more

marginalised end of the economy and how these huge economic costs were born

disproportionately by the poor. Ultimately, Philips concluded by explaining that this

not only locks people into a state of poverty, but also has significant implications for

8 K Philip “Ineqaulity and economic marginalisation: How the structure of the economy impacts on

opportunities on the margins” (2010) 14 Law, Democracy & Development 105-132. 9 Economic policy announced by Economic Development Minister Ebrahim Patel in December 2010,

aimed at creating 5 million new jobs by 2020. See The New Growth Path: The Framework <http://www.info.gov.za/ view/DownloadFileAction?id=135748> (accessed 12-09-2012).

19

development strategies aimed at targeting the unemployed and those attempting to

survive.

Eddie Rakabe, from the Financial and Fiscal Commission, continued the

discussion by attempting to illustrate the value of second economy business

industries in South Africa. He concurred with the first speaker on the point that South

African society functioned within two economies and explained that they are

characterised by structural features of high and low value markets, a disconnection

to internal and global value chains and underdevelopment with strong racial

connotations. The South African economy therefore consists of first economy

business activities, which produce the bulk of the country’s Gross Domestic Product

(GDP), and the second economy businesses, which operate at the margins of the

mainstream economy. Despite negative perceptions, the second economy (or

informal economy) serves as a major source of livelihood and employment

opportunities to the majority of the young and adult population. Unfortunately,

participants in the second economy usually remain confined to low value markets,

are unable to generate self-growth and development and therefore remain outside

many of the government sponsored development programs. Furthermore, the author

explained that since current government initiatives to support the informal sector are

largely top-down and generic in their approach, as they seek to address wider

problems of poverty and inequality, they remain inflexible and insufficient. Rakabe

questioned, however, whether additional value could be unlocked from the second

economy industries in a way that would contribute to overall economic development,

increase employment opportunities and transform individual participants from

economic survivors to opportunity seekers. He concluded by stating that for the

sector to develop fully, interventions needed to build on the strength of existing

individual initiatives and business incentives at the margins, in order to enable

people to invest in their own capabilities and growth.

The following presentation aptly located the previous discussions within a more

localised context by addressing the topic of Household and informal economies in

Valhalla Park, Cape Town: Intertwining lives and logistics. Sophie Oldfield, a social

and economic geographer from the University of Cape Town, argued that although it

is widely acknowledged that the informal economy sustains family and community

economies in townships and informal settlements across South African cities, most

scholars analyse framed issues associated with the urban informal economy too

20

narrowly. Consequently, issues associated with the urban informal economy are

often conceived of as predominantly based in the local, with limited connections to

the formal economy. Furthermore, the notion that these activities are only organised

around means of subsistence, contributes to the wry perception that they are broadly

uncompetitive. Oldfield’s research drew from a community-based research

partnership project with the Valhalla Park United Front Civic in Cape Town, which

attempted to explore the various linkages between different household economies.

The study not only revealed an intimate set of connections between different

household economies, but also illustrates how this set of connections can impact on

the business logics and practices in a particular local economy. Drawing from this

research, the author considered the specific difficulties of running a business, often

from home, in the context of an impoverished community. Some of the difficulties

include inadequate and unreliable incomes, challenges associated with accessing

credit and the burden of operating businesses on a small scale. Most interestingly,

however, the research revealed the community orientated and livelihood logics that

motivate local business owners and consequently sustain their livelihoods. Oldfield

concluded that a multifaceted analysis of the Valhalla Park economy, which is

embedded in the context of the local, can deepen existing notions of the potential of

the informal economy. The Valhalla Park economy therefore does not simply

represent a vehicle driven for the benefit of profit, but more importantly, also

intimately influences various aspects of the communities’ lives and livelihood

strategies.

This session illustrated that although the informal sector is often viewed in

homogenous and undifferentiated terms, it is largely misunderstood because of

normative notions of economic rationality and competitiveness. The discussion

suggested that the real value of the second economy or informal sector can be found

in the fact that it is not driven by formalistic goals but rather by various social and

redistributional logics aimed at benefitting a particular local community as a whole.

The discussion therefore illustrated that it is imperative that policymakers and

members of civil society recognise the dynamics inherent in the informal economy as

such, but also particularly in areas where it has become increasingly difficult to

mediate the tension between small-scale South African business owners and

foreign-owned and home-run industries. From a legal perspective, the discussion

touched specifically on the (in)ability of the law to respond to the various dynamics of

21

the informal economy. Participants were divided on issues associated with the

appropriateness and importance of the law as a regulatory tool within the informal

economy, citing the area of child labour as a particular field in need of more

appropriate and context-sensitive legal intervention, while highlighting the dangers

associated with artificial attempts at formalising and over-regulating informal

activities.

3 3 3 Rethinking human settlements and public spaces

In a subsequent parallel session on urban governance and development, the

emphasis shifted from issues associated with the informal economy and local

economic development to challenges found within urban human settlements and

public spaces. Michael Boulle, a post-graduate student at the Energy Research

Centre at the University of Cape Town, commenced this segment of the discussion

with a presentation on the potential of bicycles to address questions of poverty and

mobility, by integrating the urban poor into the city’s broader transportation network

in an environmentally friendly and sustainable manner. By focusing on the urban

poor’s multi-modal approach to transport, which ranges from covering long distances

on foot to using various forms of public transport that are both time-consuming and

very expensive, Boulle attempted to illustrated the multidimensional impact and role

of transport in alleviating urban poverty. He suggested that harnessing the potential

of a simple yet inexpensive mode of transportation, such as bicycles, could help

address the transportation needs of the urban poor while exercising a positive

influence over a range of other daily factors. He then presented examples of case

studies that illustrated the potential and impact of this concept at a local level.

On a more philosophical note, the subsequent presentation focused on the

potential of the concept of the ‘right to the city’ to serve as a uniting vision and

framework within which members of civil society, organisations of the urban poor and

impoverished communities can jointly struggle for the social and spatial

transformation of South African urban spaces. Tristan Görgens represented the

Isandla Institute and based his presentation on local research conducted by the

Institute in 2011. The study focused on the potential and applicability of the

internationally derived ‘right to the city’ discourse in framing inclusive dialogues

around urban transformation in South Africa. Görgens explained that the research

22

process consisted of parallel sets of dialogue between members of civil society,

urban NGOs and representatives of the urban poor in the Cape Town area. The aim

of the process was to produce a collective notion on what the ‘right to the city’

represents for each group within their particular context, as well as to highlight its

potential policy and practical implications. Görgens’ discussion provided a succinct

overview of these documents and discussed the Isandla Institute’s experiences

concerning the strengths and weaknesses of the ‘right to the city’ in facilitating

inclusive dialogues about urban transformation in South Africa. He concluded by

stating that the results of the consultation process suggest that structured spaces for

dialogue and contestation are essential in order to inspire and support an active

citizenry, which has been described by the National Planning Commission as central

to the future of the developmental state in South Africa.

Michael Krause, a representative from the Violence Prevention through Urban

Upgrading (VPUU) programme, then shared some thoughts on the upgrading and

transformation of five informal settlements in Khayelitsha, consisting of

approximately 23 000 households, into neighbourhoods. Based on his experiences

on the ground, Krause suggested that the VPUU programme represented a model

for how local authorities could improve a community’s quality of life and gave

concrete examples of how the programme had already benefitted local impoverished

residents. The methodology underlying the programme is based on inclusive

concepts and strategies, such as negotiating with residents and the communalisation

of services, and the programme is based on four key elements: prevention,

cohesion, protection and research. Krause explained that the research-based and

highly participatory methodology of the programme also manages to link localised

processes and interventions, via a central community action plan, into the strategic

vision of the City of Cape Town. In this way, all three tiers of government become

participants in the process, rather than just funders and solid relationships are

established at multiple levels. Moreover, the transformation of public space in

informal settlements aims to positively occupy perceived dangerous spaces or crime

hotspots and to promote multifunctional public spaces, which gives local residents

the opportunity to regain ownership over those spaces. According to Krause, this

particular approach to social crime prevention not only offers support to victims of

violence, groups at risk of becoming victims and marginalised groups, but has

already had a positive impact on local crime statistics.

23

Carol Wright, from the City of Cape Town, gave the final presentation in this

parallel session on human settlements and public spaces. She commenced her

presentation by providing background on the important role that cities play in the

area of urban governance and development and by placing a strong emphasis on

the need for long-term city planning to address issues associated with poverty and

inequality in urban areas. Wright explained that many of South Africa’s cities

currently face a number of multidimensional development challenges. Urbanisation

represents an example of one particular developmental challenge that not only

affects the physical growth of cities and their populations, but also affects a range of

other areas such as municipal service delivery and the environment. The author

emphasised the need for a holistic approach to these development challenges that

focuses on physical and economic infrastructure, as well as human capital

development, as a means of achieving equitable and inclusive growth. By drawing

on key indicators of poverty and inequality, such as income, education, employment

and skills, the presentation attempted to highlight various initiatives by the City of

Cape Town that are aimed at addressing the deep, yet interlinked challenges of

poverty and inequality at the local level. Wright emphasised that South African cities

represent key loci for bringing about social enlistment and cohesion. She also

explained how different urban planning, policy and implementation tools were being

used in a proactive and integrated manner to promote the creation of a compact city

that creates and enhances vital linkages between human settlements and transport.

The presentation also recognised the need for longer-term strategic plans that focus

on economic, social and environmental sustainability. Wright explained that, in order

to ensure that these longer-term strategic plans are adequate and relevant; the City

recently undertook a broad research initiative aimed at collecting a wide spectrum of

views on the city’s future in 2040. Finally, the presentation also highlighted some of

the medium to longer-term planning work that has been undertaken by the City that

includes, in particular, elements of a vision and plan for Cape Town aligned to the

Western Cape Government Towards 2040 initiative and the National Development

Plan 2030.

Although this parallel session covered a range of fascinating topics related to

human settlements and public spaces, the session was criticised by members of the

audience for failing to grapple with issues relating to the physical construction of

cities and, more importantly, the provision of urban housing for the poor. There was

24

a general sense of concern within the discussion group regarding the failure of the

session to deal with the important and empowering role that access to housing plays

in facilitating access to other urban benefits and opportunities. Ultimately, the

comments during the discussion emphasised that the value aspect of housing, which

is most often associated with the intangible benefits of access to housing, should

play a key role in informing integrated and inclusive approaches to urban

development. The point was also made that such an approach would be more

consistent with the democratic and egalitarian principles and values that underlie the

South African Constitution and with a substantive understanding of the right to have

access to adequate housing, as contained in section 26 of the Constitution.

Furthermore, concerning the densification of housing, members of the audience

made compelling arguments in favour of more research into high-density housing

initiatives, in particular, and high-density urban development in general. The

discussion also emphasised the need to urgently develop and pass new legislative

planning guidelines that are in line with existing policies that promote densification,

as the current legal framework fails to speak to the policies and practical experiences

on the ground. Concerning the topic of community participation in human

settlements, the discussion was more positive and suggested that despite certain

negative perceptions about community participation in urban development initiatives,

experience has shown that communities are often very pragmatic when it comes to

state intervention initiatives that benefit the community as a whole, as opposed to

merely benefitting certain individuals. During this discussion, it was however made

abundantly clear that when dealing with processes that involve communities, the

manner in which the process is approached is crucial. Honest, clear and open

communication between the parties involved about budgetary and spatial limitations

is also essential. In the final instance, the discussion emphasised that the

importance and value of area-based approaches, which advance intervention

initiatives at the human scale and which target communities at a level that they can

relate to, must not be underestimated.

3 4 Poverty and inequality

3 4 1 Unravelling poverty and inequality: Context and concepts

25

The first thought provoking parallel session on Unravelling poverty and inequality

attempted to highlight the extent to which the poverty and sharp inequality between

races and the widening gap between the classes are all deeply rooted in South

Africa’s past and continue to manifest in different ways in South Africa’s present. The

discussion commenced with a sobering presentation by Professor Francis Wilson,

from the University of Cape Town, on the Historical roots of inequality in South

Africa.10 Wilson argued that a fundamental rethinking is required to readdress the

legacies of poverty and inequality that were inherited by the democratically elected

government in 1994. He identified the need to understand how poverty and

inequality were historically generated through long processes as the starting point for

bringing about this fundamental paradigm shift. This approach also needs to be

coupled with the realisation that it is necessary to sustain our economies and

resources. Wilson’s paper illustrated how first land and water, then minerals and

capital for investment and finally human capital accumulated into white hands over

several centuries. In turn, the accumulation of these resources contributed to the

large income disparity that characterises contemporary South Africa. He discussed

the long-term consequences of European conquest and colonialism, the 1913 Land

Act, the migrant labour system, the Bantu Education Act of 1953, barriers to

occupational mobility due to racial restrictions during South Africa’s industrial

revolution and the essentially extractive or exploitive philosophy that generally

underpins the South African economy. According to the author, the net result of this

long process is a legacy of widespread poverty and deeply rooted inequality, as

more than a hundred years of differential economic opportunities between whites

and blacks has constructed a racial bias into the pattern of contemporary income

and wealth distribution patterns. Wilson therefore concluded that although history

cannot be undone, it must be recognised and understood if South Africans are to

devise effective strategies to overcome it. In doing so, South Africans must also

recognise that the extractive (rather than sustainable) philosophy that has infused

almost all forms of economic activity since colonial occupation has to change

radically. Ultimately, a fundamental rethinking is needed to address issues of

widespread poverty and inequality and to redirect South Africa’s journey into the

twenty-first century.

10

F Wilson “Historical roots of inequality in South Africa” (2011) 26 Economic History of Developing Regions 1-15

26

Gemma Wright, from the Centre for Analysis of South African Social Policy at

Oxford University, continued the discussion with a presentation on the Use of

indicators of multiple deprivation to demonstrate the spatial legacy of apartheid in

South Africa.11 This paper adopted a spatial analysis of multiple deprivation in South

Africa and demonstrated that the most deprived areas in the country are located in

the former homeland areas. The analysis was undertaken using the datazone level

South African Index of Multiple Deprivation, which was developed from the 2001

Census data. Wright explained that datazones are a new statistical geography

designed especially for this index, by using techniques developed in the United

Kingdom. These datazones are smaller in population size than conventional wards

and this enables a detailed spatial analysis of deprivation across the whole of South

Africa. The author compared levels of deprivation in the former homeland areas as a

whole, the remainder of South Africa and a case-study township, as well as between

each former homeland. These results were also compared with a municipality-level

analysis that was conducted in 2007 and this indicated that the spatial pattern of

multiple deprivation continued to persist in 2007. In turn, this demonstrates the

ongoing spatial legacy of apartheid. Wright also illustrated that when the domains of

income, employment, education and living environment deprivation were considered

separately, the former homelands were more deprived, on average for each of these

domains, than the rest of South Africa and more deprived than the average for a

case study township in the province of the Western Cape. Overall, the discussion

highlighted the visibility of rural poverty to the extent that the most deprived areas in

South Africa overlap with the form homelands. She concluded that this research

contributes to the growing body of literature on the spatial legacy of the former

homelands and the complex ways in which spatial boundaries are perpetuated in

South Africa.

This parallel session concluded with the presentation of a paper entitled Poverty

as injustice, which was co-authored by Danie Brand, Stephan de Beer, and Karin

van Marle, all from the University of Pretoria. The authors argued that there is a

growing tendency in scholarly and policy discourse to describe poverty as a practical

problem, without having regard for the ideals of justice or the fact that poverty is an

injustice. They criticised the aforementioned approaches for losing sight of what the

11

M Noble & G Wright “Using indicators of multiple deprivation to demonstrate the spatial legacy of apartheid in South Africa” (2012) Social Indicators Research.

27

authors regard as poverty’s political dimensions, which can be identified in a

definition of poverty as inadequate access to basic living resources by means of

economic and political power. The paper attempted to highlight the dangers of a

purely pragmatic approach to poverty, as well as the extent to which responses to

poverty negate rather than engage fundamental questions of justice by focusing on

certain key issues associated with poor and marginalised groups. The presentation

also illustrated how laws and by-laws in urban areas often criminalised the actions of

the poor, particularly in the case of homeless and landless communities,12 refugees

or asylum-seekers and women and children and criticised the fact that the law failed

to address the fundamental imbalances of power in urban areas as expressed

through access or the lack thereof. According to the authors, the exercise of political

power is founded in the dominant discourse and supported by legislation and the

poor are therefore blamed for being poor instead of policies and practices of

government and are denied access to economic power, while their fundamental

rights are violated. The discussion then turned to the relationship between the law

and poverty as it has been explicitly engaged with in the decisions of the

Constitutional Court around socio-economic rights. According to the authors, in these

decisions the relationship plays out partly in the government’s performance in

alleviating and dealing with poverty as evaluated against legal standards. However,

the relationship is also evident in the way in which the decisions of the Constitutional

Court illustrate how the parties in the cases, as well as the Court, think about poverty

and the relationship between law and poverty. Citing two relatively recent decisions

of the Constitutional Court,13 the paper suggests that the judgments in both these

cases widely illustrate the extent to which a disconnection has developed between

the discourse on poverty and justice in South Africa and the way in which the law

relates to poverty and justice. The authors pinioned that this is visible in the extent

that both cases illustrate how, in the context of poverty; justice has been reduced to

a question of procedural fairness, while in both cases the claims of the complainants

represented substantive questions of justice. The authors concluded by suggesting

that what is required in South Africa’s response to poverty is a new kind of

compassion, seen as a political concept that represents a greater sense of solidarity

12

See, for example, Maphango v Aengus Lifestyle Properties (Pty) Ltd 2012 3 SA 531 (CC) and Schubart Park Residents Association v City of Tshwane Metropolitan Municipality (CCT 23/12). 13

Joseph v City of Johannesburg 2010 4 SA 55 (CC) and Mazibuko v City of Johannesburg 2010 4 SA 1 (CC).

28

with the poor. According to this conception, compassion is the first step of a

liberating praxis and of rethinking the meaning of justice. This is necessary to ensure

that political and legal action on behalf of the poor does not remain an intellectual

exercise without compassion that is not far removed from the actual realities of the

poor.

3 4 2 Inequality and poverty: Two sides of the same dilemma

The final session within the broader theme that dealt with poverty and inequality

focused on the question whether poverty and inequality essentially represent two

sides of the same dilemma? Professor Adam Habib from the University of

Johannesburg was at the steer of this final, yet energetic discussion on the

relationship between poverty and inequality in the South African context. The first of

the two featured panellists, Andries du Toit from the Institute for Poverty, Land and

Agrarian Studies (PLAAS) at the University of the Western Cape, commenced the

discussion with a presentation entitled The trouble with poverty: Reflections on South

Africa’s post-apartheid anti-poverty consensus, which considered the current state of

poverty discourse in South Africa. Du Toit commenced by explaining that since 1994,

there has been an unusual degree of consensus on the centrality of poverty as an

issue both of political and social concern, as well as on the measures needed to

address it. Accordingly, this has resulted in the development of an extensive poverty

discourse that spans ideological frameworks, narratives and assumptions and

shapes the construction of poverty as an object of academic knowledge, policy

management and political concern. The author cautioned, however, that there is an

inherent disjuncture between the consensus concerning poverty and the anti-poverty

outcomes that have been achieved, which makes the consensus characteristically

paradoxical and ambiguous. Du Toit explained that while part of the problem is

arguably located in the structural nature of poverty, as current social and economic

policy has tended to avoid confronting the dynamics and processes that perpetuate

and entrench poverty, the other part of the problem lies with the anti-poverty

consensus itself, as well as the discourses that shape it. The author therefore argued

that while the importance of understanding the causes of poverty could not be

denied, it was equally important to pay critical attention to how poverty itself is, in

turn, understood. According to Du Toit, the emphasis in this regard should be on the

29

underlying ideological frameworks, the moral meta-narratives, and the assumptions

that underpin South African political and policy discourses about poverty. He argued

that poverty must be understood in a way that reconnects it with a deeper

understanding of inequality, as well as the social processes that produce inequality,

and in a way that recognises the consequence or relevance of the causal

relationship between the persistence of poverty and the formation and nature of

South African capitalism. In the absence of such an approach, current discourses will

continue to trivialise poverty as a social issue and consequently, neutralise its

political potential to affect real change. The presentation then provided an evaluation

of the strengths and weaknesses of the current South African anti-poverty

consensus and considered different responses to the challenges confronting poverty

management. In conclusion, Du Toit begged the question whether it was possible to

reframe the poverty discourse in a way that allows for a more constructive and

productive engagement with the dynamics that entrench poverty and with the

resources that can be mobilised for social transformation.

Ivan Turok from the Human Sciences Research Council then continued the

discussion with a presentation entitled Recognising the dynamics of poverty and

inequality: The role of spatial traps and escalators. He commenced the discussion by

stating that the relationship between space, place and poverty is in urgent need of

greater recognition, as a spatial dimension or perspective is critical to developing a

deeper understanding of many issues associated with poverty. Turok argued that

consensus on issues associated with poverty at the national level was simply not

sufficient and that, in order for consensus to be truly meaningful, it also had to be

present in the spaces where people live and it had to resonate within spaces where

inequality is very stark. According to the author, this is necessary in order to avoid

overly abstract and technocratic discussions at the national level, which often have

very little substance or significance at the local level. Ultimately, it is at the local level

where people are displaced and where inequality is experienced on a daily basis.

Conversely, however, it is also at the local level where wealth is generated and

accumulated. The local level must, therefore, be given special regard as it

represents a space in which social contracts can effect the greatest change and

mistakes can have the most devastating consequences. Turok urged the audience to

think of place as a dynamic space in which different elements come together: the

built environment, governance, the economy and peoples’ living environments. This

30

particular perspective gives rise to an important set of questions that are in urgent

need of attention. Are spatial inequalities a mere reflection of other factors and

forces, or does space itself also exert some influence on poverty and inequality? If

so, how do poor households and communities respond to their particular spatial

circumstances? Furthermore, while these spatial inequalities are clearly divisive,

what are their specific economic implications – especially when one takes into

account that development is not always equal? Finally, what do current policy

considerations suggest and, more importantly, what should they be doing? Turok

concluded by explaining how space, issues associated with physical distance,

segregation, sprawl and geographical locations can all intensify poverty and

inequality in urban areas and subsequently argued that these factors could be

mitigated by adjusting development patterns and by moving and restructuring the

“formal” city to accommodate the “informal” yet real city in which many poor

urbanites live.

The subsequent group discussion emphasised the need to accurately identify and

understand the causes of structural inequality and, in particular, to identify and

analyse the role of space in relation to the relationship between poverty and

inequality. Some participants pinion that although space was an important factor, it

should not be regarded as a cause of poverty per se but rather a powerful force that

shapes poverty and inequality in a profound way. The ability of capital to deepen

existing situations of poverty and inequality was identified as a far greater concern

and the discussion called for a deeper understanding of the nature and outcomes of

capital within the South African context. Further along the spatial theme, the

discussion also touched on practical responses to integrating cities at a social,

economic and spatial level. Some of the priorities that were identified included the

incremental upgrading of informal settlements, the extension of rental housing and

improved land policies to help integrate South Africa’s fragmented and segregated

urban spaces. The discussion also touched on the role of the state in aggravating

inequality and, in particular, disproportionately high salaries being paid out to civil

servants. The government was advised to re-evaluate its status as an employer of

preference in favour of becoming an employer of last resort. Furthermore, the

discussion suggested that municipalities and provinces could do more to aid poor

people in finding employment.

31

4 Conclusion

In closing, the Towards Carnegie III conference offered an inspiring and insightful

perspective on the possibility of facilitating transformation in South Africa. It revealed

that despite the extreme levels of poverty and inequality that currently exist in South

Africa; we are not powerless to address it. However, this conference also made it

clear that transformation will only be made possible if we use the Constitution as a

guide to peaceful transformation while building social networks. Such networks need

to be aimed at promoting a multi-sectoral collaboration between the judiciary, an

active civil society, socially-responsive private organisations and a proactive

government. Such an approach is necessary in order to ensure that education is

accessible, that meaningful employment opportunities are available, that government

is held accountable and that people are able to live their lives to their full human

potential.