Emergent Rural Economy Transformation Framework: Outlook, strategy, principles and programmes
1. Introduction
The Comprehensive Rural Development Plan (the CRDP), as approved by Cabinet; with the addition of aspects of the National Development Plan (NDP), New Growth Path (NGP)and the National Infrastructure Build Plan relevant to rural development.
1.1. The Comprehensive Rural Development Plan (CRDP)
A key feature of the work of the Department of Rural Development and Land Reform (DRDLR) towards achieving Outcome 7 has been the conceptualisation and launch of the Comprehensive Rural Development Programme (CRDP).
The CRDP arises from a key strategic objective of government namely Strategic Priority number 3 of the Medium Term Strategic Framework: comprehensive rural development strategy linked to land and agrarian reform and food security. The 10 priorities were further defined in twelve Outcomes that form the strategic focus of Government between 2010 and 2014.
The CRDP is premised on a proactive participatory community-based planning approach, rather than an interventionist approach to rural development. This includesthe social mobilisation of rural communities to take part in developmental initiatives. In addition stakeholders will be mobilised to support community empowerment and skills development initiatives ultimately to empower communities to be self-reliant and to take charge of their destiny.
An analysis of rural areas in South Africa clearly reveals that the rural space is not homogenous and that development strategies need to account for wide variations in demographic, social and economic contexts and needs as well as available institutional capacities. This raises challenges for “blanket policies” that fail to take into account the differentiated nature of particular rural places, building on the endowments, opportunities and capacities that exist to facilitate change.
International experience relating to inclusive and integrated rural development suggests that positive change in rural areas is not a definite and automatic outcome of overall economic growth or even rural economic growth. Although both are necessary, they are not sufficient to ensure inclusive rural development. This is rather an outcome of a set of conscious policies and actions aimed at such ndevelopment. Six conditions are identified as being central to inclusive rural development.
First, opportunities for the rural poor to gainfully employ themselves and improve their quality of life need to be provided.
Second, the ability of poor households to take advantage of the opportunities must be improved and ensured. Improved access to quality education is particularly important for these households because in the absence of other assets such as adequate land, it is often the only way out of chronic poverty for majority of the rural poor directly or indirectly.
Third, access to adequate health services must be provided for the rural population, particularly to the low-income households.
Fourth, special, well-designed, and targeted programs need to be implemented to assist the disadvantaged groups of rural people including women to enable them to participate actively in development.
Fifth, government must recognise the role it must play to achieve inclusive rural development. In particular, it needs to ease economic and social infrastructure constraints on overall economic growth and rural economic growth, pay particular attention to protecting and conserving natural resources, improve and protect security of land tenure, develop institutions that are critical for inclusive rural development, including dynamic rural financial markets, and implement policies and programmes targeted to address social inequalities.
Sixth, it is necessary to introduce effective social safety net programs to address the issues of the poorest and the most vulnerable groups in rural areas, including women in particular.
These six conditions require the deliberate facilitation of the major drivers of rural development, many of which are present in existing policies, programmes and strategies of government: economic growth; land reform, infrastructure development, appropriate institutions, rural financial services, dynamic agricultural sector and rural non-farm enterprises.
A key lesson from international experience, particularly in East Asia is that in pursuing these conditions, government should ensure that their actions do not crowd out the private sector. A major challenge is to balance government interventions in these and private sector investments in a way that the interventions will induce and leveragerather than discourage private investment.
In embarking upon inclusive and integrated rural development, the role of DRDLR is as the initiator, facilitator, coordinator, catalyst and implementer of rural change. As such, the department has a clear role to work with existing programmes to ensure that they are aligned to underpin change in the rural areas.
1.2. National Development Plan
In terms of the NDP, the vision for rural areas is that South Africa's rural communities must have better opportunities to participate fully in the economic, social and political life of the country. People should be able to access high-quality basic services that enable them to bewell nourished, healthy and increasingly skilled. Rural economies will be supported by agriculture and, where possible, by mining, tourism, agro-processing and fisheries.
In terms of “inclusive rural development”, the NDP makes several arguments that resonate with international literature and appraisal of effective rural development. It argues that rural communities require greater social, economic and political opportunities to overcome poverty. To achieve this, agricultural development should introduce a land reform and job- creation (sometimes called livelihood strategies) to ensure rural communities have jobs.
This also involves ensuring quality access to basic services, health care, education and food security. Plans for rural towns should be tailor-made according to the varying opportunities in each area.
Intergovernmental relations should be addressed to improve rural governance.
The strategy should ensure access to basic services, food security and the empowerment of farm workers. It should also recognise the wide range of opportunities present in rural areas and develop strategies tailored to local conditions. Institutional capacity is integral to success, especially in the reforms required to resolve contested relationships between traditional and constitutional institutions.
1.3. New Growth Path
The New Growth Path (NGP) is the suggested strategy to restructure South Africa’s economy, emphasising on decent work. In order to reduce the current unemployment figures by 10%, five job drivers have been identified which includes fostering rural development and regional integration.
The NGP emphasises economic growth, infrastructure investments, revitalising the agricultural sector, leveraging institutions as part of social capital development and fosters broad based rural development.As such the NGP is vital for the DRDLR in meeting its objectives defined in the CRDP and Outcome 7, many of which overlap.In particular, a range of practical measures have been set to achieve the rural development targets set by the NGP:
1.3.1 Restructuring land reform to support smallholder schemes with comprehensive support around infrastructure, marketing, finance, and extension services.
1.3.2 Upgrading employment in commercial agriculture especially through improved worker voice; measures to support growth in commercial farming and to help address price fluctuations in maize and wheat while supporting national food security.
1.3.3 Acceleration of land claims processes and better support to new farmers following land-claims settlements.
1.3.4 Programmes to ensure competitive pricing of inputs, especially fertiliser, and
1.3.5 Support for fishing and aquaculture.
1.4. National Infrastructure Build Plan.
Public investment can create 25 000 jobs a year in energy, transport, water and communications infrastructure and in housing, for a period up to 2015.While urbanisation will continue, a significant share of the population will remain in rural areas, engaged in the rural economy.
Government will step up its efforts to provide public infrastructure and housing in rural areas, both to lower the costs of economic activity and to foster sustainable communities. Rural development programmes can achieve a measurable improvement in livelihoods for 500,000 households, as well as stimulating employment in other sectors.
Enhancing rural employment requires finalisation of a spatialperspective that sets out the opportunities available and the choices that we must make in order to lay the basis for aligning government spending, infrastructure and housing investment and economic development initiatives. In addition, government must do more to support small-scale agriculture, including through community food gardens and marketing and service coops as well as accessible banking facilities.
Many of the Strategic Integrated Projects (SIPs) impact on rural development as they deal with the creation of corridors, the improvement of road and transport networks and other services.
However, the two SIPs that have a more direct link to rural development are SIP 6, dealing with access to basic services and SIP 11, dealing with rural infrastructure and agro logistics.
2. The underlying outlook or philosophy and principles
Underlying philosophy, our outlook is that of ‘Growth through redistribution’, based on the provisions of the Freedom Charter and the Reconstruction and Development Programme (RDP). The land tenure system which is currently under consideration, and its supportive institutions, are part of this radical redistributive outlook.
2.1. The Freedom Charter
The Land Shall Be Shared Among Those Who Work It! Restrictions of land ownership on a racial basis shall be ended, and all the land re-divided amongst those who work it to banish famine and land hunger;The state shall help the peasants with implements, seed, tractors and dams to save the soil and assist the tillers; Freedom of movement shall be guaranteed to all who work onthe land.
All shall have the right to occupy land wherever they choose, People shall not be robbed of their cattle, and forced labour and farm prisons shall be abolished.
2.2. Reconstruction and Development Programme (RDP)
- Meeting basic needs
- Democratising the state and society
- Building the economy
- Developing our human resources
- Implementing the RDP
2.3. The Four-tier Land Tenure System:
- Private ownership – Freehold with limited extent
- State and public land – Leasehold
- Land owned by foreigners – Freehold, but precarious tenure. Foreign nationals have to comply with specified and obligations.
- Communal land – Communal tenure with institutionalised use rights.
2.4. The Institutions:
- Office of the Valuer-General.
- Land Rights Management Boards / Committees.
- Land Management Commission.
In terms of this outlook, growth is a function of redistribution, not the other way round. The current dominant outlook which holds the view that redistribution is a natural function of growth has been proven inappropriate, or even wrong, given South Africa’s historical circumstances.
3. The three principles:
- Deracialisation of the rural economy.
- Democratic and equitable allocation and utilisation of land, across race, class and gender, and,
- Sustained production discipline for food security.
4. The CRDP strategy
4.1 The CRDP strategy is that of ‘rapid and fundamental change in the relations (that is, systems and patterns of ownership and control) of land, livestock, cropping and community’.
4.2 This strategy must speak directly to the redistributive out-look espoused above. If the outlook that ‘growth is a direct function of redistribution’ is to materialisein rural spaces, then, the strategy must place the transformation of power relations (political dominance, economic exploitation, racial discrimination and gender oppression) as key to achieving fundamental change.
5. Programmes
- Costed Norms and Standards
- Rural Development Agency anchored by a Rural Cooperatives
- Bank or Rural Cooperatives Financing Facility
- National Rural Youth Service Corps (NARYSEC)
- Targeted Strategies for inclusive economic transformation
- Revitalisation of Rural Towns and Villages
- Sustainable Rural Settlements
6. The critical questions or litmus test
6.1. Does the strategy speak to the philosophy?
6.2. Are programmes geared towards the realisation of the strategic objective of income equality, shared prosperity and full employment?
I thank you!
