Inequality and Economic Inclusion

Second Economy Strategy Project (36)

The 2007 Annual Report of the Accelerated Shared Growth Initiative of South Africa (AsgiSA) identified a need to focus on what was then called ‘the second economy’, and on mechanisms to ensure shared growth reaches the margins of the economy. The Second Economy Strategy Project was initiated in this context. It reported to the AsgiSA High Level Task Team in the Presidency, but was located outside government in TIPS.

A review of the performance of government programmes targeting the second economy was completed in early 2008. The project then commissioned research and engaged with practitioners and policymakers inside and outside government. A strategic framework and headline strategies arising from this process were approved by Cabinet in January 2009, and form part of the AsgiSA Annual Report tabled on 16 April 2009.

In South Africa, people with access to wealth experience the country as a developed modern economy, while the poorest still struggle to access even the most basic services. In this context of high inequality, the idea that South Africa has ‘two economies’ can seem intuitively correct, and has informed approaches that assume there is a structural disconnection between the two economies. The research and analysis conducted as part of the Second Economy Strategy
Project highlighted instead the extent to which this high inequality is an outcome of common processes, with wealth and poverty in South Africa connected and interdependent in a range of complex ways. The different emphasis in this analysis leads to different strategic outcomes. 

Instead of using the analytical prism of ‘two economies’, the strategy process placed the emphasis on the role of structural inequality in the South African economy, focused on three crucial legacies of history: 
• The structure of the economy: its impacts on unemployment and local economic
development, including competition issues, small enterprise, the informal sector, value chains and labour markets.
• Spatial inequality: the legacy of the 1913 Land Act, bantustans and apartheid cities, and the impacts of recent policies, looking at rural development, skewed agriculture patterns, and the scope for payment for environmental services to create rural employment.
• Inequality in the development of human capital: including education and health.

TIPS’s work around inequality and economic marginalisation is built on the outcomes of this strategy process. The research continues to be relevant today as government explores policy options to reduce inequality and bring people out of the margins of the economy.

See project

  • Year 2012
  • Publication Author(s) Kate Phillip
  • Countries and Regions South Africa
In the face of a long-standing unemployment crisis that increasingly threatens social and economic stability, employment has at last taken centre stage in South African policy, and with this, a focus on the structural constraints on employment creation within the economy. The New Growth Path, approved by Cabinet in November…

  • Year 2012
  • Publication Author(s) Fiona Tregenna; Mfanafuthi Tsela
Unemployment and earnings inequality in South Africa have declined in recent years, while the trend in overall income inequality is unclear. Inequality and unemployment both remain at extremely high levels by historical and international standards. There has been a very close relationship between trends in unemployment and earnings inequality in…

  • Year 2011
  • Organisation TIPS
  • Publication Author(s) Marlese von Broembsen
  • Countries and Regions South Africa
Patrick Sathorar acts as a marketing consultant for a group of 25-30 HIV-positive women in Nyanga, Cape Town. They produce textile and beaded products and Patrick facilitates their participation in the formal market by sourcing and negotiating contracts for them. Patrick’s role comprises the following: first, he meets with a…

  • Year 2011
  • Organisation TIPS
  • Publication Author(s) Sandy Lowitt
  • Countries and Regions South Africa
Improving small, marginalised producers access to modern markets has increasingly been accepted as an important element in South African policy debates on improving the employment, income and livelihood opportunities for such producers. The importance of market access arises because in the absence of such access, these producers are restricted to…

  • Year 2011
  • Organisation TIPS
  • Publication Author(s) Miriam Altman (HSRC) ; Carmel Marock (Singizi Consulting)
  • Countries and Regions South Africa
Youth unemployment is extremely high in South Africa, approximately double the national rate. While this is not uncommon internationally, it poses a special problem in South Africa where at least half of young school leavers are unlikely to find work before the age of 24. In many other countries, the…
Download:

  • Year 2011
  • Organisation TIPS
  • Publication Author(s) Ebrahim-Khalil Hassen
The promise of asset-based approaches to poverty, as well as its limitations can be summarised with reference to the popular idiom: “teach a person to fish, rather than giving him a fish”. If the idiom were a development programme or project, it would aim to undertake two interventions (i.e. 1.…

  • Year 2011
  • Organisation PLAAS
  • Publication Author(s) Michael Aliber
  • Countries and Regions South Africa
This case study provides a comparative analysis of two different initiatives designed to promote the smallholder sector in metropolitan Cape Town. The City of Cape Town has developed an urban agriculture policy and initiated a joint venture between itself, the Provincial Department of Agriculture and private sector partners to put…

  • Year 2009
  • Organisation TIPS
  • Publication Author(s) The Corporate Strategy and Industrial Development Research Programme (CSID); School of Economics and Business Sciences, University of Witwatersrand
  • Countries and Regions South Africa
Street trading is the most common type of informal self-employment activity in South Africa. Traders sell a range of products such as fruits and vegetables, cooked food, new and used clothing, cosmetics, footwear, dvds, “public” telephone services and mobile phone accessories. Most traders operate from stalls or tables in market…

  • Year 2009
  • Organisation TIPS
  • Publication Author(s) Norma Tregurtha
  • Countries and Regions South Africa
Agriculture plays a unique and multifaceted role in the South African economy. While it contributes less than three percent to the country’s GDP, it provides almost 10 percent of the country’s formal sector employment. The sector has, according to all measures, relatively large linkage effects with the rest of the…

  • Year 2009
  • Organisation PLAAS
  • Publication Author(s) Michael Aliber; Mompati Baiphethi; Rick de Satge; Jonathan Denison; Tim Hart; Peter Jacobs and Wim van Averbeke; with Rauri Alcock; Mike Antwi; Abenet Belete; Ben Cousins; Larry Field; Irvine Mariga; Patrick Masika; Simeon Materechera; David Mayson; Nomakhaya Monde and Barbara Tapela
  • Countries and Regions South Africa
Within the ambit of the Accelerated and Shared Growth Initiative of South Africa, government is leading a process to define a Second Economy Strategy. One of the opportunities that has been identified is the agricultural sector, in particular fostering a larger number of smallholder agriculturalists. The study seeks to identify…

  • Year 2008
  • Organisation NB Ideas In association with Indego Consulting and Strategies for Change
  • Publication Author(s) TIPS
  • Countries and Regions South Africa
Unemployment is one of the biggest challenges facing South Africa. Growth has been inadequate, the skills level requirement of new jobs is continually rising, current skills among the workforce are low and inadequate numbers of low end, unskilled jobs are being created. Finding mechanisms to address this challenge is a…

  • Year 2008
  • Organisation Urban LandMark
  • Publication Author(s) Monty Narsoo
  • Countries and Regions South Africa
In discussing the relationship between governance and inclusivity this paper’s central argument is that unless there is an ability to build a responsive government at all spheres than there is no connection between the two. The ability of the state to respond to the citizenry requires that it can match…
Download:

  • Year 2009
  • Organisation TIPS
  • Publication Author(s) Haroon Bhorat; Carlene van der Westhuizen; Toughedah Jacobs
South Africa has historically been ranked as one of the most unequal societies in the world, and while the country has experienced sustained positive economic growth since 1994, the impact of this growth on poverty, and particularly inequality, has been disappointing. Analysis using data from the 1995 and 2000 Income…

  • Year 2009
  • Organisation TIPS
  • Publication Author(s) Kate Philip
  • Countries and Regions South Africa
The research and policy proposals from the process of reviewing the performance of existing government programmes targeting the second economy and developing an expanded strategy were presented to a 'Work in Progress' workshop in May 2008 and to a conference entitled 'Second Economy Strategy: Addressing Inequality and Economic Marginalisation', held…

  • Year 2009
  • Organisation TIPS
  • Publication Author(s) Paul Benjamin; Nicole Yazbek
  • Countries and Regions South Africa
According to the International Labour Organisation (ILO) a third of the global workforce is either unemployed or underemployed barely eking out a living through informal work; selfemployment or as wage workers involved in precarious employment. International competitive pressures have led to a restructuring of organizations toward decentralized production networks and…

  • Year 2009
  • Organisation TIPS
  • Publication Author(s) Lauren Royston
  • Countries and Regions South Africa
The paper argues for a broad based access to property, broader than access to title allows, with the potential for wider, quicker and more sustained reach. It motivates for a place for tenure security in the second economy strategy as a means for securing access to property, a pre-condition for…

  • Year 2008
  • Organisation Urban LandMark
  • Publication Author(s) Doreen Atkinson
The task is to reflect on the building of the second economy in small and medium sized towns. This involves a review of secondary sources, as well as an input on quantitative measures to support the main arguments. The paper should draw on: i) Comparative policies for small and medium-sized…
Download:

  • Year 2008
  • Organisation Second Economy Strategy Project
  • Publication Author(s) Kate Philip;Ebrahim-Khalil Hassen
  • Countries and Regions South Africa
At the July 2007 Cabinet lekgotla, the Presidency was tasked with conducting a review of existing government programmes that target the 'second economy', in order to identify where programmes can be scaled up to achieve greater impacts, and where further innovation may be needed. The Review of Second Economy Programmes…

  • Year 2008
  • Organisation TIPS
  • Publication Author(s) Glen Robbins For Urban LandMark
South Africa is continuing to urbanise, perhaps not as rapidly as some developing countries but certainly at a rate which has generated a considerable degree of policy anguish over its accompanying rising levels of urban poverty. The Presidency of the Republic of South Africa expressed concern that there is an…
Download:
We conducted a partial sectoral analysis of the market for ecosystem goods and services in SouthAfrica by doing the following: We mapped the areas of high eco system productivity and poverty. By overlaying the two datasets, we identified the priority areas for developing markets for ecosystem goods andservices. We estimated…
Download:

  • Year 2008
  • Organisation TIPS
  • Publication Author(s) Urban LandMark
This report is based on work undertaken towards developing the urban component of a second economy strategy, as part of the Second Economy Project, an initiative of the Presidency. Within this project Urban LandMark (ULM) was appointed by Trade and Industrial Policy Strategies (TIPS) to investigate the urban development component…

  • Year 2008
  • Organisation TIPS
  • Publication Author(s) CSIR For Urban LandMark
This report provides an analytical reflection on the provision of infrastructure services in urban areas, with the aim of enhancing the access of the poor in urban areas to these services. It commences by considering what is meant by “access” to services, pointing out that much more is involved than…

  • Year 2008
  • Organisation TIPS
  • Publication Author(s) Lochner Marais
  • Countries and Regions South Africa
Conceptualising the second economy No detailed process will be followed in order to define the concept second economy’. The Second Economy Strategy Project (2008:2) probably summarises it best: “In sum, the concept of the ‘second economy’ is being used as a metaphor to focus policy attention on continued inequality, disadvantage…
Download:

  • Year 2008
  • Organisation TIPS
  • Publication Author(s) Nisa Mammon;Kathryn Ewing;Jody Patterson For Urban LandMark
  • Countries and Regions South Africa
This paper unpacks from a spatial perspective, the duality of urban contexts in South Africa that is of unprecedented opulence on the one hand and remarkable deprivation on the other, as stated by Sen (1999: xi). Although focused on the second economy as required by the terms of reference and…

  • Year 2008
  • Organisation TIPS
  • Publication Author(s) NB Ideas with Strategies for Change and Indego Consulting
  • Countries and Regions South Africa
This document is part two of a three part report on employment intermediation. Part one provides an overview of the sector, internationally and nationally, and part three captures the recommendations for further work towards strengthening the sector. In this second part of that report, seven case studies of existing employment…

  • Year 2008
  • Organisation TIPS
  • Publication Author(s) Overstrand Municipality
  • Countries and Regions South Africa
The Local Labour Promotion Project (hereafter LLPP) has been developed internally within the Overstrand Municipality which is situated in the Overberg District of the Western Cape Province. The LLPP was developed initially in 2005 to deal with the high level of municipal services arrears owed by unemployed debtors in the…

  • Year 2008
  • Organisation TIPS
  • Publication Author(s) Karen Harrison
  • Countries and Regions South Africa
Siyakhula, or the Western Cape Bus Operators’ Transport Cooperative Ltd, operates within the bus sector of the transport industry. A brief description of the sector follows in order to contextualise the operations of the cooperative. The transport, storage and communications sector increased its share in real output growth in the…

  • Year 2008
  • Organisation TIPS
  • Publication Author(s) NB Ideas with Strategies for Change and Indego Consulting
  • Countries and Regions South Africa
Unemployment is one of the biggest challenges facing South Africa. Growth has been inadequate, the skills level requirement of new jobs is continually rising, current skills among the workforce are low and inadequate numbers of low end, unskilled jobs are being created. Finding mechanisms to address this challenge is a…

  • Year 2008
  • Organisation TIPS
  • Publication Author(s) Mathetha Mokonyama For Urban LandMark
  • Countries and Regions South Africa
The aim of the paper is to articulate necessary state interventions to improve transport services for the urban poor in South Africa. The paper forms part of a larger study intended to inform a strategic response to the challenges of the “second economy” in the South African urban areas. The…
Download:
Page 1 of 2