MEC for Finance and Development Wendy Nelson and Bokone Bophirima Premier Supra Mahumapelo answering public questions at the VTSD Lekgotla
There was once a common, somewhat derogatory term used to define people who came from the rural areas in the Bantustan homelands: “those who came very far from across the tar road”.
Those areas in the homelands, a creation of the apartheid machinery’s separate development policies, were devoid of any development — even proper roads.
Recently, Minister of Co-operative Governance and Traditional Affairs Des Van Rooyen acknowledged the deep challenges that still remain because of the legacy of apartheid’s spatial planning strategy.
“Under apartheid, African areas — and especially the former ‘homeland’ regions — typically excluded natural resources, and for decades were mainly deprived of infrastructure and government services,” Van Rooyen told the Bokone Bophirima Villages, Townships and Small Dorpies Economic (VTSD) Lekgotla held in Mmabatho last week.
The lekgotla, which was attended by big business, small business, diplomats and ministers, focused on improving the province’s economy through both existing and new businesses operating in the VTSD areas, as well as advancing radical socioeconomic transformation within the province.
“Where people live, work and play matters. It is well acknowledged that since democracy, we have not been very successful in reversing the apartheid spatial patterns,” said Van Rooyen.
“Our urban centres still mirror the apartheid planning patterns, with the poor located far from social and economic opportunities, and thereby spending a lot of time and money to access these opportunities. They continue to be highly inefficient due to the low densities and sprawl. This is despite the availability of various planning instruments to increase densities and contain the sprawl,” he said.
MEC for Finance and Economic Development Wendy Nelson said VTSD development “is a necessary process to improve the quality of life and economic wellbeing of people living in relatively isolated and sparsely populated areas.”
Van Rooyen acknowledged that the prevailing economic climate was tough but called for new and radical ways to transform the VTSD economy.
“Our economy is not growing at the rate that was predicted. It is not as inclusive as intended and it does not create the most required job opportunities. The country’s outlook is affected both by national concerns, such as unrest in and pressure on the mining industry, as well as international sluggishness, with Europe as one of South Africa’s chief export destinations,” said Van Rooyen.
He cited the fact that three of the 10 main industry groups in the country, including agriculture, mining, electricity and gas and water supply, shrunk in size in recent times.
Van Rooyen said although manufacturing has shown signs of growth, the traditionally labour intensive sectors that employ many unskilled workers now account for only 19% of total employment. He said this was down from about 30% in 2000.
In a quest for find solutions to the persisting economic challenges which include high unemployment rates particularly in VTSD areas, Van Rooyen said cabinet recently approved the Integrated Urban Development Framework (IUDF): A new deal for South African Cities and Towns.
He said the IUDF’s vision is to create “liveable, safe, resource-efficient cities and towns that are socially integrated, economically inclusive and globally competitive, where residents actively participate in urban life”.
“One of the cross-cutting issues from the IUDF is urban-rural linkages. Rural-urban interdependency recognises the need for a more comprehensive, integrated approach to urban development that responds to both the urban and the rural environments,” said Van Rooyen.
Our two-thirds rural majority
He said Bokone Bophirima province’s VTSD programme should be a practical initiative to make the urban-rural linkages programmes a reality.
“North West is predominantly rural and with small towns and therefore one must not advance the urban development agenda at the expense of small towns. I am sure you would agree with me that development takes time, and requires the ability to imagine the future, to have a vision. It is therefore important for small towns and villages to begin this process of reimagining their future and crafting clear and inspiring visions,” he said.
Van Rooyen said given the fact that nearly 50% of the national population and more than two-thirds of the population in some provinces reside in rural small towns, the role and functions of small towns should be strengthened and their economies promoted.
This, he said, has “the potential to make a meaningful impact on the lives and livelihoods of millions of people in these towns and their hinterlands and this, in turn, can help bolster broader regional and provincial economic development.”
“Populations of small towns have a strong sense of community, civic pride, citizen sense of identity, often existing over multiple generations, which tend to create a productive environment for the development of social capital, as opposed to what is happening in larger urban areas where lower levels of social cohesion, community connectivity and accompanying social ills often exist,” he said.
Van Rooyen said small towns are the economic hubs of their rural hinterlands, hosting urban services while remaining in a rural environment.
“Small towns play a key role as points of socio-economic service provision, welfare distribution, retail and as agricultural service centres and they are key conduits in the rural-urban continuum. It is also important to note the interdependence between small towns and their rural surroundings — an issue that development projects in this field must highlight,” said Van Rooyen. He argued that although local government has a critical role to help stimulate the economy through improved standards of governance and meeting its targets and mandate to deliver service delivery.
“Many challenges in development have their roots at the local level and unless local government begins to play a more significant role resolving these, South Africa will continue to struggle in its challenge to combat poverty, unemployment and inequality,” said Van Rooyen.
He said local government has the potential to make a sustainable impact on development and has begun to demonstrate it.
“But far more needs to be done before the country’s municipalities are equal to the considerable task that is demanded of them,” he said.
The dual economy
Van Rooyen said it was of great concern that unemployment and poverty persist despite several state interventions and programmes.
He cited the draft evaluation report of the review of the national framework for local economic development in South Africa (2006-2011) which indicates that the country today is characterised by a highly dualistic economy, with a refined formal sector of numerous globally-competitive multinational companies, paralleled to a population where up to 40% are unemployed and dependent on social grants and the informal sector to survive.
“This duality in South Africa has been defined as the first (formal) and second (informal) economy. The democratic SA continues to be profoundly marked by very high levels of inequality, reinforced by stubbornly high levels of unemployment and prevalent poverty heights,” he said.
A way forward
Van Rooyen urged the Bokone Bophirima administration to use the province’s resources. These include the rich wildlife and biodiversity; agriculture and agricultural land; agro-processing opportunities, manufacturing opportunities, rich historical and cultural tourism, road networks, airports, hospitals, schools, low cost of electricity, water, land and factory rentals and adequate industrialisation, easy access to markets in the SADC region and Africa, and affordable pool of skilled and unskilled labour.
“The list of opportunities is endless. The question is what efforts and initiatives are you making to take advantage of these?”