Rethinking The Rural Development Research Agenda In Southern Africa

1. Rethinking The Rural Development Research Agenda In Southern Africa The Changing Global Landscape in Rural Development: Critical Choices for Results-Oriented Research in Southern Africa By Vuyo Mahlati 24 November 2010 University of Pretoria Postgraduate School of Agriculture and Rural Development

2. PROBLEM AREAS • Global Realities and the Rural Dilemma • Meaning and Measurement - Definitions and Conceptual Frameworks • Strategic Intent (Skirting the Structural/Systemic Issues) • Problematic Institutional Premise (Traditional/Colonial/Post-Colonical-Global) • Donor-dependency & impact on research (sponsored views) • Fragmentation of Research • Sector-focus versus Issue-based • Mono-discipline

3. Global Realities • Declining world economy with massive job losses and contraction of world trade • Poverty and Hunger • Climate change and ecosystem change • Threat to rural livelihoods; • Vulnerability of rural sectors -agriculture, coastal resources, energy, forestry, tourism, and water; • Low-latitude location - Up to 80 percent of the damages from climate change may be concentrated in low-latitude countries (Mendelsohn 2008) • Regional and Global integration focuses on integrating global markets, neglecting the needs of people that markets cannot meet • Foreign aid decline with increasing doubt on effectiveness • “Financialisation” of the global economic system with financial exclusion of the rural poor

4. Rural Dilemma Rural Poverty, Disease and Low Productivity • Feminization of rural areas = Feminization of agriculture = Feminization of poverty and disease (Youth exodus to cities), • Social protection (absolute poverty strategies) vs productive and sustainable livelihoods • Comparative advantage that does not translate to competitiveness, • Ecosystem sustainability, • Spatial imbalances & Rural-urban disconnect • Overdependence on subsistence agriculture, • Food Insecurity, • Limited access to off-farm employment, • Unemployment with sluggish development in urban areas, • Skewed income distribution, • Poor transport, basic services and market infrastructure, • Low literacy rates • Legacy of colonialization and apartheid

5. Comparative Advantage: Competitive Disadvantage Dependence on the export of primary products, absence of an industrial base, weak savings and investments, limited profit-earning capacity of capital, under-serviced basic and social needs (health, education, and social welfare)

6. Zambia Example: 65% Rural Pop Economic growth averaging more than 4% between 1997 and 2007 (6.2% in 2007, 5.8% in 2008 and 4.5% in 2009); 2nd largest producer of Cobalt and 7th largest producer of Copper in the world ; BUT Inequality and exclusion from mainstream financial markets: • 64% of individuals live below the traditional “dollar a day” poverty line, which has now been adjusted to $1.25/day; • Almost 87% of individuals survive on less than $2.50 a day (the traditional $2/day line); • 85% of FinScope Survey 2009 rural based respondents - no formal education compared to 14% urban dwellers • Only 13.9% of Zambian adults use commercial bank products. • Usage of commercial bank products is higher in urban than in rural areas. • Low insurance penetration (6.6%)

7. Zambia Example

8. Zambia Microenterprise Sector Source: Zambia Business Survey 2010

9. RURAL DILEMMA: SOCIAL JUSTICE AND SUSTAINABLE DEVELOPMENT Rural development and Land Reform: Addressing the Past, the Present and the Future How can land reform redress injustices from colonial and apartheid regimes of dispossession and discrimination (racial/gender), the legacy of poverty and under- development, as well as tackle the challenges of population growth, increasing inequality, climate change and “financialisation” of the economic system. According to Foster (2007) “financialisation” refers to the shift in the weight of economic activity from production to finance.

10. Problem Lack of clarity, coherence and consensus on rural development conceptualization, definition(s), the driving development agenda, with inadequate delivery strategies and measurement.

11. Rural Development Definitions Chambers(1983) definition strategy to enable a specific group of people, poor rural women and men, to gain for themselves and their children more of what they want and need. It involves helping the poorest among those who seek livelihood in the rural areas to demand and control more of the benefits of development (1983:147).

12. What is rural development? Rural development (RD)- is the improvement of the spatial and socioeconomic environment of rural space, which leads to the enhancement of the individual’s ability to care for and sustain his/her well-being (Madu, 2003b). • multidimensional and multifunctional in nature (SARDF, 1997; Knickel and Renting, 2000). • constitute a broader subject than agricultural economics, with a spatial as opposed to a sectoral definition (de Janvry et al, 2002).

13. Agricultural economics Elementary unit of analysis- farm Major fields of analysis Farm production Marketing of agricultural commodities Demand for food Performance of product and factor markets Rural economics Elementary unit of analysis- household with the farm as a typical subset of economic activity Major fields of analysis Resource allocation by household Choices of income strategies Poverty and inequality (de Janvry et al., 2002). Difference between agricultural economics and rural economics

14. Linkages between agriculture and other sectors of the economy, and the rest of the world Agricultural and food policy (de Janvry et al., 2002). Emergence of performance of agrarian institutions Income levels Income and food security Satisfaction of basic needs (access to public goods and services e.g health and education) Intergenerational equity Quality (standard) of life (de Janvry et al., 2002). Cont…

15. Rural Population and Agricultural Employment in South Africa Compared to the Rest of the World, 2004 Calculated from FAO, The State of Food and Agriculture 2006(Presidency2008 )

17. Influence by Ideological Paradigm shifts Neo-classical economics- well functioning markets versus market distortions and ‘imperfections’; New institutional economics- linking equity and productivity Livelihoods- a developmentalist version: development as a livelihood improvement and poverty reduction; Livelihoods- a welfarist version: poverty alleviation, and social protection; Radical political economy- development as agrarian transformation; Marxism- the agrarian question, focusing on the transition to capitalism in agriculture (Cousins and Scoones, 2010)

18. REDISTRIBUTIVE JUSTICE • The WCARRD (World Conference on Agrarian Reform and Rural Development) asserts that the transformation of rural life must be pursued by policies which allowed growth to be reached in an equitable way, through redistribution of the economic and political power and people’s participation; • Meeting constitutional commitment and moral obligation for redress & social cohesion (Deracialization of commercial farmland and advancement of women’s rights in communal, family & household land); • Walker (in Ntsebeza & Hall 2007:134) states that land reform can make a contribution to economic development at both household and societal level, but one cannot assume that it is a cure for deeply entrenched problems of poverty, inequality and social dislocation.

19. South African Case Study

20. Settlement patterns Bantustans Provinces 20

21. Population by type of region Quantec

22. The economy by region

23. Household amenities by region CPS 2007

24. BACKGROUND – RSA RURAL DEVELOPMENT STRATEGIES • The first rural development policy initiatives came directly after the launch of the Reconstruction and Development Programme (RDP) in 1995 by the Ministry in the Office of the President with the release of a discussion document entitled Rural Development Strategy of the Government of National Unity. Renewed efforts to design a rural strategy were launched under the auspices of the Rural Task Team of the RDP office. This process led to the publication of TheRural Development Framework by the Department of Land Affairs in May 1997. This framework focused on rural infrastructure, public administration, local government, and rural non-farm employment, but it was not confirmed as government strategy for rural development.

25. BACKGROUND – RSA RURAL DEVELOPMENT STRATEGIES • The Integrated Sustainable Rural-Development Strategy (ISRDS) • Confirmed by cabinet as a government strategy following President Mbeki’s State of the Nation Address in 1999. • The ISRDS mainly draws from the Sustainable Rural Livelihoods (SRL) approach with strong emphasis on the “poverty agenda”. According to a 2001 IDT Report the ISRDS was designed to realise a vision that would “attain socially cohesive and stable rural communities with viable institutions, sustainable economies and universal access to social amenities, able to attract and retain skilled and knowledgeable people, who are equipped to contribute to growth and development”. • The Comprehensive Rural Development Programme (CRDP): Introduced in 2009 by President Zuma with the new Department of Rural Development and Land Reform. The key thrust of the framework is an integrated programme of rural development, land reform and agrarian change . • It is therefore fitting and appropriate, that the strategy of the Department of Rural Development and Land Reform be 'Agrarian Transformation' - interpreted to denote 'a rapid and fundamental change in the relations (systems and patterns of ownership and control) of land, livestock, cropping and community.' The objective of the strategy is 'social cohesion and development.' Minister Nkwinti’s Budget Speech 24 March 2010

26. Comprehensive Rural Development Programme (CRDP) Minister Nkwinti’s 2010 Budget Speech highlighted that • The CRDP has set us on a new course for post colonial reconstruction and development. This shall be achieved through coordinated and broad based agrarian transformation which will focus on: • Building communities through Social mobilization and institution building; • Strategic investment in old and new social, economic, ICT infrastructure and public amenities and facilities coordinated through the Rural Infrastructure Programme; • A new land reform programme implemented in the context of the reviewed Land Tenure System; • Rendering of professional and technical services as well as effective and sustainable resource management through the component of Geo-spatial Services, Technology Development and Disaster Management. • Effective provision of cadastral and deeds registry as well as Surveys and Mapping services • The Department is committed to the achievement of outcome 7 of the 12 outcomes pursued by Government over the MTSF period and that is: 'vibrant, equitable and sustainable rural communities'. The success of this Department over the MTSF period will be measured through delivery on the following outputs: • Sustainable land reform; • Food security for all; • Rural development and sustainable livelihoods; and, • Job creation linked to skills training. (www.dla.gov.za)

27. BACKGROUND: RSA LAND REFORM • TheSouth African White Paper on Land Reform The central thrust of land policy is the land reform programme. This has three aspects: redistribution; land restitution; and land tenure reform. • Redistribution refers to the transfer of land to recipients who were not necessarily original owners, but were nonetheless dispossessed of land under apartheid law. It also aims to provide the disadvantaged and the poor with access to land for residential and productive purposes. Its scope includes the urban and rural poor, labour tenants, farm workers and new entrants to agriculture. • Land restitution refers to the transfer of land back to original owners or their descendents. It covers cases of forced removals that took place after 1913. This is being dealt with by a Land Claims Court and Commission established under the Restitution of Land Rights Act 22 of 1994. • Land tenure reform is led by a vision of flexible tenure regime that legally secures the rights of people occupying and using land, balancing these rights equitably against rights of owners. The intention is to improve tenure security of all South Africans and to accommodate diverse forms of land tenure, including types of communal tenure. According to Hall (2007) tenure reform policy was intended to address the chaotic state of land administration in the communal areas of former homelands & coloured reserves. • Target: transferring 30% of arable land from large white-owned farms to black small- holders (Extended to 2014). • Source; TheSouth African White Paper on Land Reform, www.dla.gov.za, Ntsebeza & Hall (2007)

28. Source: Rural Dev Dept (2010)

29. GAPS: Asset-based Empowerment • The World Development Report (WDR 2008) indicates that The asset endowments of rural households have been low for generations, and they continue to decline in places. Market and government failures affecting the returns on those assets are pervasive. Adverse shocks often deplete already limited assets, and the inability to cope with shocks induces households to adopt low risk, low-return activities (2008:72). Asset-based empowerment, the causal variables critical for self-reliance and sustainability (human capabilities, resource access and conditions of exchange): Human, social, natural, financial and physical capital;

30. External environment Impact on assets Situation of rural people Capital assets Natural Social Human • Vulnerability context • Changes in: • Resource stocks • Climate • Population density • Conflict • Political change • Technology • Markets • Disease incidence • Institutions • Structures • Levels of government • NGOs/CBOs • Private sector • Traditional • Donors • Processes • Laws • Policies • Incentives • Services Financial Physical influence influence • Livelihood outcomes desired • More income • Improved well-being • Reduced vulnerability • Improved food security Impact on vulnerability Negotiation on agreed common objectives, eg for projects or services • Livelihood strategies chosen • Natural resource based • (on-farm, off-farm) • Non-NR based (eg rents) Negotiation on appropriate processes and structures for the strategies Deciding appropriate roles, degree of self-help • Implementation • Partnership arrangements Impact on institutions Impact on livelihoods

31. Measuring Human DevelopmentTowards a New Human Development Dashboard Source: Pritchett (2010) in UN HDR (2010)

32. Value chain System Source: Roduner (2007)

33. System Failure: Interdependency of rural infrastructure Telecommunication, agro-industry, rural electrification, and other development initiatives for rural areas are often dependent upon each other. • development of rural telecommunications programs is dependent upon electricity resources in one form or another; • appropriate and adequate water pumping requires power for agricultural sector expansion and development; • cottage and other rural industries and agro-processing under the form of small rural businesses can increase the productivity by using mechanized/ electrified technologies; and • quality of education and healthcare delivery systems increase proportionally with improvements in RE and other infrastructure investment (CORE, 2003).

34. Factors Affecting Success (Leite & Avilla 2006) • The presence of a strong governmental structure, accompanied by a political will and by legal security for the new landowners; • A favourable macroeconomic policy (interest rates, exchange rates, agricultural policy); • Technical assistance, support to the organization and financial assistance of the beneficiaries (in a non-centralized and non-bureaucratic form); • Administrative experience of the beneficiaries and the requisite infrastructure around their farm holdings; • Economic encouragements to the beneficiaries (being their own supervisors ) supporting productivity and the creation of non-agricultural enterprises; • The creation of social capital with the involvement of the beneficiaries in the decisions concerning them; • An effective agricultural policy (good land registration systems, land planning and taxation).

35. RURAL DEVELOPMENT STRATEGIES • Review land reform and agriculture as a defining concept of Rural Development (delink) • Redefine the driving agenda and the interconnectedness of land reform, agricultural transformation and Rural Development • Recognise and clarify the spatial, policy, institutional and relational linkages (rural-urban linkages, household-community-municipal-provincial-national, rural development policy & macroeconomic framework) • Rural Demography & Livelihood Patterns: Addressing Poverty and Inequality. Poverty reduction as a means, not an end, a component of, but not a rural development strategy. Households as an entry point and unit of analysis for enhancing capabilities and sustainable development. • The value of the rural space & sustainable resources use: Leveraging potential to sustain livelihoods, nurture socio-cultural coexistence and enhance productive potential. • Diverse Sector Strategies (beyond farming): Critical – Sector strategy contributing to redress, as a growth-oriented and development mechanism (e.g. agriculture) rather than an overarching driving agenda. Agrarian transformation is thus viewed as a strategic transformative mechanism (means and method) and not an overall macro-framework for sustainable rural development (the end).

36. OPPORTUNITIES FOR RESEARCH REALIGNMENT • Research agenda review to refocus National, Regional and Continental Agendas • G20 Nations Commit to Growth, Aid for Poor Countries (Nov 2010) The new "development consensus" calling for "inclusive, sustainable and resilient growth" to reduce poverty, asserting that foreign aid "remain(s) essential to the development of most low-income-countries.“ The Leaders identified "nine key pillars" which required action to remove bottlenecks to growth in developing countries.These are: Infrastructure, human resource development, trade, private investment and job creation, food security, growth with resilience, financial inclusion, domestic resource mobilization and knowledge sharing.