rural development framework

7/30/2019 Rural Development Framework

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Rural Development Framework

May 1997

Compiled bythe Rural Development task Team (RDP) and the Department Of

Land Affairs

ISBN 0-621-27692-8

Foreword

This document was written by the Rural Development Task Team in the RDP office.Following the closure of the RDP office, responsibility for its updating and finalisation

was passed to the Department of Land Affairs.

It is the outcome of several rounds of consultation. The most important was the public

response to the Green Paper that was published in the Government Gazette, No. 16679 ofthe 3rd November, 1995. In response to the discussion document, which also included the

Green Paper on Urban Development, there were 29 responses to both papers, plus 32responses to the rural paper, and 27 further responses to the urban paper.

Most responses to the rural paper were from District Councils, followed by provincial

departments. There were also several from professional associations and fromindividuals. We would like to thank all those who provided commentary, both positive

and negative. Many of the comments were incisive and useful, and widened theunderstanding of rural issues on the ground, and we have tried to do justice to these

inputs. Some, however, were outside the scope of the document, and others we could not

agree with. We hope it is clear from the text why not.

Many respondents to the discussion document requested more detail on the immense

variety of local conditions in the rural areas of South Africa, and the variety of ways thatthese can be expected to influence the policy framework. While fully accepting theimportance of local variations in conditions, it is not possible to discuss them all. This

document describes the overall policy framework that is emerging. It sets out a


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framework for rural people to consider and to build on, bearing in mind their localconditions.

This document was prepared before the preliminary estimates of population based on the

1996 census became available in June 1997. Nonetheless, the conclusions reached about

the level of poverty in rural areas remain unchanged.

Rural Development Task Team (RDP)

& Land Reform Policy Branch(Department of Land Affairs)

Contents

Foreword

Executive Summary

1 Introduction: Aims, Definitions and

Context

1 1.1 The purpose of the RuralDevelopment Framework.

1.2 The definition of 'rural'

1.3 Poverty levels in rural areas1.4 The multi-sectoral nature of rural

development

1.5 Rural development within the nationalpolicy framework

1.5.1 Affordable infrastructure

1.5.2 Employment and incomes1.5.3 Environment and rural development

1.6 The need for cross-sectoral coordinationof rural development

1.7 The way forward

2Building Local Democracy andDevelopment

4 Building Rural Infrastructure

4.1 Purpose

4.2 Local government and service provision4.3 The backlog in services

4.4 Expected service levels

4.5 Costs of provision

4.5.1 Cost issues

4.6 Water and sanitation4.7 Rural access roads4.8 Energy policy for rural areas

4.9 Rural housing policy

4.9.1 The need for coordinatedplanning of settlements

4.9.2 The need for communityfacilitation

4.10 The Consolidated MunicipalInfrastructure Programme (MIP)

4.10.1 Rationale for the Consolidated MIP4.10.2 Coordination

4.11 National development finance
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2.1 Purpose

2.2 Powers and functions of local

government

2.2.1 Locils in rural areas2.2.2 District cocal coununcils in rural areas

2.3 Upgrading the skills of councillors and

council officials

2.3.1 Help with financial management

2.3.2 Council offices2.3.3 Training

2.3.4 Project and programme-relatedcapacity building

2.4 Meeting community priorities

2.5 Funding rural development

2.5.1 Funding of local government2.5.2 Affordability issues

2.6 Local structures for land reform and

administration of land .

3 Building Local Economic Developmentand Rural Livelihoods

3.1 Purpose

3.2 Current obstacles

3.2.1 Poor rural-urban linkages

3.2.2 Migration, remittances andunemployment

3.2.3 Constraints on entrepreneurial activity3.2.4 Restrictions on women3.2.5 Obstacles to the expansion of the

small farming sector3.2.6 Vulnerable environments

3.2.7 Land tenure and ownership issues3.2.8 Women's land tenure rights

3.2.9 Obstacles to provision of

institutions (NDFIs)

4.11.1 Development Bank of Southern

Africa (DBSA)

4.12 Spatial issues

4.12.1 Spatial Development Initiatives(SDIs)

5 Building Social Sustainability

5.1 Purpose5.2 Safety and security in rural areas

5.3 Legal issues

5.3.1 Enforcement of rights5.3.2 Law-making and administrative

processes5.3.3 Access to legal information

5.3.4 Monitoring5.3.5 Women's needs

5.4 Children in rural areas

5.4.1 The rights of the child

5.5 The rights of farm dwellers5.6 The rights of the disabled in rural areas

5.7 Rural health

5.7.1 Primary health care

5.7.2 AIDS in rural areas

5.8 Capacity building in rural areas

5.9 Improving rural education

5.9.1 New policies for rural education

5.10 Security and welfare

5.11 NGOs and CBOs in rural development
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infrastructure on communal land

3.3 Incorporating environmental concerns in

rural development

3.3.1 Environmental rights3.3.2 Institutional support

3.4 Local economic development (LED)

3.5 Markets, spatial integration and regionaleconomic development

3.6 Partnerships with the private sector

3.6.1 Private-sector financeinitiatives

3.7 Land reform and agriculture

3.7.1 Land reform and increasing thesocial wage

3.7.2 Land reform and theenvironment

3.7.3 Employment in agriculture3.7.4 Support services for small and

medium-scale farmers3.7.5 Agricultural marketing

3.7.6 Irrigation

3.8 Forestry3.9 Tourism

3.10 Rural industries3.11 Promoting Small, Medium and Micro

Enterprises (SMMEs)3.12 Financial services

3.13 Promoting labour intensity

3.13.1 Relief employment

5.11.1 Community-based organisations5.11.2 Service NGOs

5.12 Managing drought

6 Building Local Capacity to Plan andImplement

6.1 Purpose

6.2 The case for decentralised planning anddecision making

6.3 Issues in local level planning

6.4 District planning

6.4.1 Planning apparatus

6.4.2 Scope and content

6.5 Survey and planning information on the

rural areas

6.6 Information systems for avertingdisasters

6.6.1 Monitoring vulnerability6.6.2 Averting and preparing for disaster

6.6.3 Children's nutritional status as a lead

indicator

Executive Summary

1. INTRODUCTION
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The Rural Development Framework describes how government, working with ruralpeople, aims to achieve a rapid and sustained reduction in absolute rural poverty.

Solutions are sought to the following questions:

how to involve rural people in decisions affecting their lives, through participationin rural local government (Chapter 2);

how to increase employment and economic growth in rural areas (Chapter 3); how to provide affordable infrastructure and improve services in rural areas and

resolve the problems posed by the remote, low-potential areas into which peoplewere crowded during the apartheid era (Chapter 4);

how to ensure social sustainability in rural areas (Chapter 5); how to increase rural local government capacity to plan and implement and

assemble the essential information for planning, monitoring and evaluating boththe process and progress of development (Chapter 6).

Rural areas

Rural areas are defined as the sparsely populated areas in which people farm or dependon natural resources, including the villages and small towns that are dispersed through

these areas. In addition, they include the large settlements in the former homelands,created by the apartheid removals, which depend for their survival on migratory labour

and remittances.

Rural poverty

Almost three quarters of people below the poverty line in South Africa live in the ruralareas. Of these, children less than five years, youths and the elderly are particularly

vulnerable; women more so than men. The poorest ten per cent account for just one percent of consumer spending. The highly skewed distribution of incomes in South Africa

goes hand in hand with highly inequitable literacy levels, education, health and housing,and access to water and fuel.

Rural development

Development in rural areas requires:

institutional development: helping rural people set the priorities in their owncommunities, through effective and democratic bodies, by providing the local

capacity and access to funds for them to plan and implement local economicdevelopment;

investment in basic infrastructure and social services: the provision of physicalinfrastructure (eg housing, water and power supplies, transport) and social

services (eg basic health care and schools); improving income and employment opportunities and by broadening access to

natural resources (eg arable and grazing land, irrigation water, woodland and

forests);


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restoration of basic economic rights to marginalised rural areas by establishingperiodic markets as the organising spatial and temporal framework for

development; resource conservation: investing efforts in the sustainable use of natural

resources; and

justice, equity and security: dealing with the injustices of the past and ensuringthe safety and security of the rural population, especially that of women.

Rural development and the GEAR

The Reconstruction and Development Programme represents government's commitmentto eradicate poverty. For this vision to materialise, policies must be orientated towards

the provision of basic needs, the development of human resources and a growingeconomy which is capable of generating sustainable livelihoods. The success of

government's strategy forgrowth, employment and redistribution (GEAR) is dependenton the maintenance of a sound fiscal and macro-economic framework. Rural

development will contribute to this policy by:

diversified job creation through local economic development; redistributing government expenditure to formerly deprived areas; an expansionary infrastructure programme to address service deficiencies and

backlogs, while delivering infrastructure and essential services cost-effectively; social development in many fields, particularly education and health services, and

through providing access to resources to improve household and nationalproductivity;

integrating marginal rural areas where the majority of citizens have been cut offfrom the national economy.

Coordination of rural development

For these objectives to become a reality in rural areas, coordination of the different

sectoral initiatives is essential at both national and provincial level. Until 1996, nationallevel coordination of rural development was carried out by the inter-departmental Rural

Development Task Team. At provincial level, rural development policy andimplementation are guided by inter-departmental committees which are not altogether

successful in coordinating planning and development. Local government is well placed toeffectively coordinate sectoral initiatives on the ground, but few rural municipalities are

as yet in a position to do this.

2. BUILDING LOCAL DEMOCRACY AND DEVELOPMENT

South Africa is at present consolidating the transition of the country to democracy in all

spheres. One of the most significant developments is the establishment of democraticlocal government; another is the adoption of the Constitution which places the

responsibility for service provision on local government.


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Local government in rural developmentLocal government is the elected government body:

that takes ultimate responsibility for service delivery; with which CBOs, representatives from local fora and other stakeholders consult

for the purpose of assessing needs and priorities; that mediates competing interests in resource management, project planning or the

provision of services;

that sets Land Development Objectives under Section 27 of the DevelopmentFacilitation Act (67 of 1995) that bind all land development decisions and policies

in their area of jurisdiction;

whose function it is to coordinate the work of the different departments andfollow through requests for funding or implementation to the appropriateprovincial and national bodies;

with responsibility for ensuring that the needs of poorly organised local people arealso taken into account.

Role of national and provincial government

It is the constitutional responsibility of national and provincial government to:

help local government to recognise and define the needs of local people; to encourage local government to involve local people in planning and in the

actions necessary to satisfy their needs; and

to enable local people, suitably organised to access national programmes onknown terms and conditions, so as to assume increasing responsibility for these

actions.

In other parts of the world, these precepts have been the basis of successful ruraldevelopment. The Rural Development Framework proposes how the skills and resources

of councils will be strengthened through capacity building and funding.

3. BUILDING LOCAL ECONOMIC DEVELOPMENT AND RURAL

LIVELIHOODS

Job-creation programmes for rural areas must tackle employment generation through thepromotion of as wide a range of activities as possible. The wider the range of jobs and

activities, the higher the demand for services locally, the more local markets will grow,and the more money will circulate in rural areas. Local economic development can be

achieved by building on and utilising the local natural resource base and the opportunitiesprovided by actual and potential trade links within an area. The chapter recommends the

strengthening of these links through the establishment of local markets for locallyproduced goods and services. In this way it is proposed to restore basic economic rights

to marginalised rural people.

Obstacles


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Most of the constraints to rural development stem from the long period of apartheid withits discriminatory policies and neglect of the majority black population. Forced removals

led to over-population of the 'reserves' and deprivation of basic needs. High populationgrowth put pressure on family income, social services and on natural resources. Structural

and legal obstacles were raised to marketing and thereby to production The major

obstacles to be overcome in rural areas are:

Landlessness and overcrowding in the former homeland areas and inappropriatefarming methods on commercial farms have given rise to severe land degradationand soil erosion. Environmental management policies and practices remain

sectoral and fragmented.

Current land ownership and land development patterns strongly reflect thepolitical and economic conditions of the apartheid era. Racially-based landpolicies were a cause of insecurity, landlessness and poverty amongst black

people, and of inefficient land administration and land use. Apartheid spatial planning created a rural landscape devoid of economic

opportunities for the disadvantaged majority, especially women; devoid of localmarkets and dependent on distant cities and towns for employment, goods and

services. In the predominately white commercial farming areas, past government policies

have led to an over-capitalised, over-mechanised farm system. The opening up ofthe system to African farmers faces many obstacles. Due to decades of

discrimination and oppression, lack of skills and experience and rural finance;lack of markets where small farmers can trade their produce; lack of support

services for sustainable small-scale agriculture farmers, eg applied research andextension.

Opportunities

This chapter describes the potential for local economic development initiatives and forjob creation in several quarters: commerce; small, medium and micro enterprises;

agriculture; forestry; tourism; and labour-intensive public works. It recognises the primeimportance of broadening access to land resources, the establishment of partnerships

between local government and the private sector and NGOs for the promotion of a widerange of enterprises. These should be built upon to utilise the local natural resource base

and of the potential for trading links within an area. These should be strengthenedthrough the establishment of rings of markets for locally and regionally produced goods

and services, linking small towns into regional economies, building total production andcash circulation and a more competitive position in the wider economy.

4. BUILDING LOCAL INFRASTRUCTURE

The infrastructure backlog in rural areas is immense. Sustained investment in appropriatetypes of infrastructure is essential for achieving the equity and efficiency objectives of

the government. Prior consultation with local government structures and community forais a precondition for all rural infrastructure projects, so also is the close cooperation of the


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national and provincial line departments involved. The chapter describes the policyprinciples and the coordinating structures which provide the framework for

implementation.

Expected service levels and costs of provision

Target service levels for different types of rural areas cannot be laid down with precision.Key factors influencing the level of service provision are: speed of economic growth in

the locality; how widely the benefits of that growth are distributed; the capacity ofinstitutions responsible for delivering municipal services; and the individual and

collective choices of consumers. The contrast in expected levels of service provisionbetween urban and rural areas reflects the relatively high unit costs of installation in the

latter and the fact that rural people can afford only the lowest level of recurrent costs.

Capital subsidies

To meet the backlog in infrastructure in rural areas, government is committed to subsidisethe capital costs for a basic level of service with the following programmes:

School and clinic building programme, through the national and provincialdepartments, fully funded by government, with telephones and electricity;

The DWAF Community Water and Sanitation Programme provides the platformfor the implementation of internal bulk and connector water and sanitation

projects. The Department of Constitutional Development's Consolidated Municipal

Infrastructure Programme (MIP): up to R3000 per household for the installationand rehabilitation of internal bulk and connector services, ie water and roads.

The Department of Housing'sNational Housing Subsidy: up to R15 000 perqualifying person for the land, on-site infrastructure, as well as top structure; or

The Department of Land Affairs Settlement/Land Acquisition Grant: up to R15000 per qualifying person to acquire land and effect homestead and land

improvements, through the provision of basic infrastructure as part of the LandReform Programme.

Consolidated Municipal Infrastructure Programme

The Consolidated Municipal Infrastructure Programme arose from the need to coordinatethe various grant funding programmes of the four national departments that provide

capital for municipal infrastructure - ie, the departments of Constitutional Development,Housing, Water Affairs and Forestry and Land Affairs. The Consolidated MIP focuses on

internal bulk and connector water, roads and stormwater drainage, solid waste disposaland public lighting services. It provides grant funding for new infrastructure, as well as

for the upgrading and rehabilitation of existing internal bulk and connector infrastructure,to urban as well as dense and dispersed rural areas. The closer alignment of grant funding

under the Consolidated MIP will help municipalities to build and manage sustainableinfrastructure systems.


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Water and sanitation, and energy policy

The Community Water Supply and Sanitation Programme aims to ensure that all SouthAfricans have access to an adequate water supply and safe sanitation facility, over the

next nine years.

The lack of adequate energy sources in rural areas is a major obstacle to economic andsocial development. The principal impediments are: the limited distribution network and

the high initial costs of extending it; the recurrent cost of conventional energy supplies;and the lack of information for poor people about alternative energy sources, including

possible sources of finance. The policy options currently under discussion aim to addressthese problems. A capacity building programme, including energy users, suppliers and

facilitators, aims to ensure that local-level initiatives reflect people's needs, are rationaland well informed.

Rural housing

National housing policy aims to provide access, for all South Africans, to a permanentresidential structure with secure tenure, ensuring privacy and providing adequate

protection against the elements; and potable water, adequate sanitary facilities includingwaste disposal and domestic electricity supply. However, government support to housing

development tends to receive lower priority in rural areas. Rural households are oftenpoorly organised to obtain their place in the queue for subsidies. Legally acceptable

evidence of land tenure has also been a problem for applicants on communal land. Thisproblem is in the process of being resolved.

The Settlement/Land Acquisition Grant, an alternative subsidy to that of the Housing

Subsidy of the Department of Housing, accommodates rural people wishing to acquireland for agriculture as well as for residential purposes.

In the case of farm workers, living on land belonging to an employer, difficulties arisewhen the right to occupy is tied to employment. In these cases, the granting of a subsidy

for housing improvements, has to be linked to guarantees by the land owner that thetenure of the applicant is secure.

Rural settlement programmes place great demands on government to support organisation

and planning at local level. The demand goes well beyond the staff capacity of theagencies concerned. Both the DLA and the Provincial Housing Boards make facilitation

funds available to assist groups to organise themselves, to ensure that their needs arebeing brought to the attention of funding institutions and that settlement projects are

sustainable.

5. BUILDING SOCIAL SUSTAINABILITY

The most recent surveys undertaken in rural South Africa reveal depths of poverty as

severe as in the poorer African countries to the north. They show that women, and


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female-headed households are particularly disadvantaged. As a result, three quarters ofrural children are growing up in households below the poverty line.

This chapter sets out the constitutional rights of rural people and vulnerable groups and

the ways in which they can both contribute to and campaign for better service delivery

and living conditions.

Throughout, the role of NGOs and CBOs is recognised to be vitally important, both as

deliverers of services and in ensuring good governance, transparency and participation.Government seeks to involve NGOs and CBOs in the policy dialogue and in decision

making. In this connection, the strengthening of NGOs and CBOs as separate, specialistinstitutions is important. A constructive partnership between the government, NGOs and

community organisations will maximise the benefit of rural development initiatives forrural people.

Safety, security and legal issues

Safety and security are a precondition for social and economic development. Theresponsibility for the establishment of peace and harmony in the countryside lies with all

citizens, but particularly with the local leadership. Processes which will strengthen theircommitment to fair administrative systems and conduct will be supported by government.

A community policing forum (CPF) should link up with every rural police station toensure active community support for safety and security. Women's groups should be well

represented as part of the effort to reduce violence against women and children.

Poor rural people have little or no recourse to the legal system. They remain vulnerable tobeing exploited by employers and landowners. In the former homelands, the poor

continue to be traumatised and exposed to inter-communal conflict. Given the shortage offunds, the problem is how to extend legal services to remote areas. An assessment of

rural legal advisory offices is needed to determine how to increase their reach andefficiency.

Children's rights

A large proportion of South Africa's population are children. Most of them live in ruralareas where eighty per cent of the very poorest children are to be found. Poor women are

under great pressure to carry out other income earning work too and so their children aredeprived of essential care and attention when they are away from home.

Under the Bill of Rights of the Constitution, every child has the right, inter aliato family

care or parental care, or to appropriate alternative care when removed from the familyenvironment; basic nutrition, shelter, basic health care services and social services; to be

protected from maltreatment, neglect, abuse or degradation; and be protected fromexploitative labour practice.


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The most fundamental right is the right to life. Ready access to basic health care servicesis important for immunisation programmes, emergency assistance and routine assessment

and support. The most useful overall indicator of the condition of children is theirnutritional status and this should be regularly monitored and related to environmental

health. This nutritional information should be central to the planning of any programme

to improve the condition of children in rural areas, the steps needed and how scarceresources can be best allocated.

Rural health

Diseases of poverty, such as infectious diseases and maternal and infant illness andmortality are all too common in the rural areas. A high number of rural children die of

easily prevented illnesses. All of these conditions could have been eliminated if properhealth services had been provided in the past.

The target throughout the country is to have one clinic for every 5000 people, offering

free primary health care and ensuring that essential drugs are available at each facility.These clinics will be supplemented by mobile units serving sparsely populated ruralareas. The Department of Health is committed to the redeployment of trained staff to

rural areas and to improving their working conditions, in order to encourage greatercommitment to the rural areas.

As in the urban areas, the AIDS epidemic is a major concern. While strongly supporting

preventive measures, government aims to address the need for appropriate socialassistance for AIDS victims and their dependents as well as their medical care.

Rural education

Under apartheid, Africans living in rural areas were denied educational opportunities toan even greater extent than those in urban areas. Most rural schools are poorly resourced

with buildings, equipment, and books and without electricity and running water. Childrenusually walk long distances to school and class sizes of 70 pupils are not uncommon.

Drop out and repetition rates are high and a large number of children do not attend schoolat all. Opportunities for secondary education, for childhood 'educare' and adult education

are scarce.

Government is committed to increase the level and availability of formal education inrural areas, and supply training and assistance to the new district and rural councils. The

South African Schools Act became effective from 1 January 1997. The Act determines,in line with the Constitution, the right to basic education. The obligation to provide

sufficient places in public schools lies with the provinces. The public school sectorcategory includes, amongst others, the current community schools and farm schools,

forestry and mine schools and many religious schools. The Act also makes provision forall schools to have democratically elected governing bodies in which parents, teachers

and (in secondary schools) students will be represented. Public spending on education


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will, as far as possible, be weighted to favour the poor and historically deprived schools.Most rural community schools and farm schools fall into this category.

Security and welfare

Lack of opportunities for gainful employment is the scourge of South Africa's rural areas.The government, therefore, recognises the need for developmental social welfare and asocial security system that reaches all people in need. Social welfare is more readily

available to urban people. In line with the recommendations of the 1996 LundCommission, they are to be more equitably distributed in future.

Labour intensive public works in the case of drought or other disaster, will complementthe rural economy and will not undermine it. Relief, consisting of food hand-outs, which

can reduce self reliance, should only be used in dire emergency.

6. BUILDING LOCAL CAPACITY TO PLAN AND IMPLEMENT

The effective performance by rural municipalities of their functions will require theestablishment of a planning capacity, at least at district level. The purpose will be to

provide information on the resources available and to assist elected councillors to identifythe most appropriate development options. The overall objective will be the full and

productive utilization of the resources available within the district - natural, human andfinancial resources. This chapter considers the case for decentralized planning, the issues

to be resolved, and the likely scope and content of work and the type of planningapparatus. Outstanding issues are expected to be resolved in the course of the local

government White Paper preparation process, currently being steered by the Departmentof Constitutional Development.

With the tighter fiscal environment, there will be need for better informed resourceallocation based on accurate district-level data.National government expenditure will

continue to be apportioned between provinces and departments, who will reallocate fundsto province-level activities. Implementing departments will wish to see these allocations

used rationally to achieve their particular policy objectives. Revenues raised by localauthorities will be allocated to services decided by elected councillors. Efficiency of

resource allocation will be improved by coordination of the work of national andprovincial government and local authorities. A district-level planning capacity will

therefore be essential. Local-level involvement in planning can generate increasedsupport and commitment, stimulate self-help, and mobilise local resources. Integration

and overview are essential in development work.

The following planning tasks, not necessarily in order of priority, might usefully beundertaken by a district planning unit.

Data collection: Planning for infrastructure development and improved services in ruralareas requires accurate information.


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Monitoring resource allocation by government departments in the district-particularlythe status of projects and programmes, their impact, who has been reached and with what

effect.

Periodic markets and services: planning for periodic markets that radiate to small

settlements and for the delivery of government services to these points at the same time.

Drought monitoring - an essential component of a drought management strategy,requiring the collation and analysis of data to predict the location and incidence ofdrought-related stress.

Provision of informationto councillors, local government officers and members of thepublic on the available government programmes and initiatives.

Environmental monitoring and impact assessment

Spatial planning and LDOs: The Development Facilitation Act requires every localgovernment body to establish Land Development Objectives as the basis for planning ofdevelopment in its area. These objectives also satisfy most of the requirements of the

Integrated Development Plans provided for in the Local Government Transition Act.

1. Introduction

Aims, Definitions and Context

1.1. The purpose of the Rural Development Framework

This document is written from the perspective that rural development is the business ofeveryone in rural areas. It is the business of rural people, and they must set the agenda. It

is government's role to support rural people in their development efforts. The Rural

Development Framework sets out to define that role. It does not prescribe a specific

strategy but shows where inter-sectoral planning and coordination are needed forresources to be used productively for rural development to become a reality in the next

two decades. The vision of rural development set out in this document has two main

aspects (see Box 1.1):

those related to governance and the provision of physical infrastructure (watersupplies, electricity, etc.) and social services (education and health care);

those related to the enabling framework essential for rural livelihoods to expandand thrive, principally by restoring basic economic rights to marginalised ruralareas.


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These are two sides of the same coin. Without the first, people and their businesses willnot thrive; without an expansion in production, marketing and related economic activity,

people will not be able to pay for the services they need and government will be unable toprovide them.

Rural development covers functional areas of concurrent national and provinciallegislative competence. These functions are laid down in the Constitution. National

legislation provides for a uniform set of policies and institutions (both moderated byprovincial governments) which attempt, for the first time, to create equality of rights and

opportunities for all South Africans, rural areas as well as urban areas. This documentdescribes these institutions and policies, the impact of which will vary, depending on a

combination of factors: history, natural resources, location, leadership, etc. It isconcerned with the powers, responsibilities and relationships of local and other levels of

government, as they affect rural development.


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.


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1.3: Distribution of Poverty between Rural and Urban Areas (1993)

Poverty Shares, (%)

(Where are poor people?)

Poverty Rates

(%)

(What

proportion of

the populationis poor?)

Poor Ultra-poor Poor Ultra-

poor

Rural

Urban

Metropolitan

All

74.6

15.7

9.8

100.0

80.7

14.1

5.3

100.0

73.7

40.5

19.7

52.8

43.5

19.8

5.8

28.8


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Notes:The share of poor refers to the percentage of all poor who live in a given area, e.g. 74.6% of the poorin South Africa live in rural areas. The poverty rate refers to the percentage of people in a given area who

are poor, e.g. 73.7% of the rural population is poor.

This document was prepared before the data from the 1996 census became available.

(Source: RDP: Key Indicators of Poverty in South Africa, 1995, where there is an important discussion ondefining poverty in South Africa. Both qualitative and quantitative studies indicate about 40% of

households in South Africa are poor. Here 40% of the total number of households (having 52.8% of the

population) is definedas poor and 20% as ultra poor.)

1.2 The definition of 'rural'

Estimates of the proportion of the population who live in rural areas in South Africa vary

widely because there is no accepted definition of the term 'rural'. In other countries, 'rural'is often used either to indicate low density of population or dependence on farming or

forestry and the manufacturing and commerce directly associated with it. All censusesand official surveys in South Africa until 1995 were based on a definition of 'rural' which

is now recognised to be flawed. This included all households not living in formallydeclared towns. Thus, many peri-urban households and many single migrants in hostels

were classified as rural. This led to an overstatement of the income of genuinely ruralpeople and an underestimation of the contribution of agriculture to their incomes (see

Box 1.2).


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In apartheid South Africa, many areas, defined as rural, were in reality urban areas

without services. As they had high concentrations of people who sought work in somedistant city, such places were, in effect, displaced urban. There are also areas of relatively

high population density with no local economic base whose inhabitants are sustainedthrough pensions and/or remittances from migrant workers. These are sometimes called

rural clusters, the term 'rural' indicating the lack of economic support and services.

A definition is required to ensure consistency for the collection of statistics. However,

historical complexities and cultural perceptions cannot easily be simplified into adefinition that suits all purposes. The Central Statistical Service (CSS) is working to

categorise South Africa's settlements, using central place theory and a functional analysisbased only on population density and existing services.

This paper defines 'rural' as the sparsely populated areas in which people farm or depend

on natural resources, including the villages and small towns that are dispersed throughthese areas. In addition, 'rural clusters' in the former homelands, ie large settlements

without an economic base except for transfer payments, are also included. For a list ofareas included under 'rural', see Box 1.3.


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However, a problem with this definition is that many households fall into both urban andrural categories as they derive their income from a range of sources, including labour

migration to towns.

1.3 Poverty levels in rural areas

The rural landscape embraces mountains and plains, semi-deserts and humid savannasand also more temperate climes. It includes the former homelands and the large farm

areas, all bearing the scars of past injustices. Throughout the rural areas, there is deeppoverty and deprivation, especially - but not only - in the former homelands. The

commercial farms, in the freehold areas, provide wealth to their owners, but relativelylittle to their employees who have the lowest incomes and standard of living of all the

groups of workers in the country. Rural towns, too, show great differences in prosperityand in their interaction with their hinterlands.

In South Africa, as elsewhere, people are much poorer in rural areas than in the cities (see

Table 1.3 and Figure 1). Almost three quarters of the poor live in the rural areas. Ofthese, rural children less than five years, youths and the elderly are particularlyvulnerable; women more so than men. The distribution of poverty goes beyond the rural-

urban divide. It has a sub-regional context.

The incidence of poverty also differs markedly among the different population groups.The poorest ten per cent of South Africans, of whom 77 per cent are Africans living in

rural areas, are responsible for just one per cent of consumer spending in the country. Thehighly skewed distribution of incomes in rural South Africa goes hand in hand with

highly inequitable levels of literacy, education, health and housing, and lack of access towater and fuel. Rural areas have far fewer services than the towns. All of these factors

limit the ability of rural households to improve their standard of living.

1.4 The multi-sectoral nature of rural development

Rural development is the business of everyone in ruralareas. This statement captures the

multi-sectoral nature of the undertaking and the notion that, because rural developmentgreatly affects the lives of the people, they should have a strong hand in setting the

agenda and the priorities. A dynamic process of combined government action, with theparticipation of people in rural areas, must be set in motion to realise a rapid and

sustained reduction in absolute poverty.

Rural development can be achieved through:

helping rural people set the priorities for development in their own communities,through effective and democratic bodies, by providing access to discretionary

funds, by building the local capacity to plan and implement local economicdevelopment;

the provision of physical infrastructure and social services (e.g. water andsanitation, transport, health services, and schools);


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wider access to productive resources in the rural areas, especially through:- land tenure reform, land redistribution and land restitution;- extension of water supplies, and the reform of water laws to protect the rights of

down-stream users,

- rural financial services for investment in rural livelihoods,- periodic systems as the organising and coordinating framework for ruralactivities (spatial and temporal) for investment in trade, service delivery, transport

and information,

thus raising incomes for rural men and women by providing opportunities for increasingfarm and non-farm production in poor areas; and

ensuring the safety and security of the rural population.1.5 Rural development within the national policy framework

The RDP is the embodiment of the commitment of government to the eradication ofpoverty in a rapidly growing economy and in the context of an open, peaceful and

democratic society. For this vision to materialise, policies must be orientated towards theprovision of basic needs, the development of human resources and a growing economy

which is capable of generating sustainable livelihoods in rural as well as urban areas. Thesuccess of government's strategy for 'growth, employment and redistribution' (GEAR) are

dependent on government's maintenance of a sound fiscal and macro-economicframework.

The GEAR strategy is an economic reform programme directed towards:

a competitive fast-growing economy that creates sufficient jobs for all jobseekers;

a redistribution of income opportunities in favour of the poor; a society capable of ensuring that sound health, education and other services are

available to all; and an environment in which homes are safe and places of work are productive.

These principles form the macro-economic framework within which the Rural

Development Framework is drafted. Rural development will contribute to this policy by:

diversified job creation through local economic development, including thegrowth of small and medium scale enterprises;

redistributing government expenditure to formerly deprived areas; an expansionary infrastructure programme to address service deficiencies and

backlogs, at the same time delivering infrastructure and essential services cost-

effectively;


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social and sectoral policy development in many fields, particularly education andhealth services, and through widening access to resources in order to improve

household and national productivity.

1.5.1 Affordable infrastructure

South Africa needs to reduce its budget deficit. Government funding for all types ofinfrastructural development will therefore be scarce. The costs will have to be affordable

within the constraints imposed by available budgetary resources. At the same time theexpenditure must meet the need for growth in the economy.

The expansion of infrastructure plays a number of crucial roles, including the provisionof basic services, increasing the level of private investment, and enhancing efficiency and

competitiveness. In combination, these factors add to new economic activity and therebyincrease substantially the job creation potential of the economy.

Rural areas are characterised by relatively high logistical costs, highper capitaservicecosts, and poorly developed local government structures. Where services are provided,the recurrent costs of all but the most basic services must be met by those who use them.

This in turn requires a viable local economy. Beyond the essential expenditure formeeting basic needs, investment must be justifiable on the grounds of its potential to raise

productivity and incomes, and to generate the income to pay for services.

1.5.2 Employment and incomes

Facing possibly the highest rate of unemployment in the world, the government is forced

to pursue economic growth and export orientation as its major strategy for increasing

employment. There is a commitment to keep wages moderate, to avoid wage-priceinflationary spirals. With globalization of the economy, wages for the majority are goingto remain low for the foreseeable future.

The government will pursue a range of policies to raise effective household incomes and

therefore the domestic demand for goods. This requires negotiation of a social wage andsocial security net, to apply throughout the country. This is central to the purpose of the

National Economic and Labour Council (NEDLAC), where there will be crucial andongoing negotiations over the kinds of policies (eg for basic health care, education, social

security, and food prices) that will support South African households without raisingwages to uncompetitive levels. Efforts will be made to reduce production costs and

therefore increase productivity, through, for instance, education, training, and some short-term industrial subsidisation. Rural development can greatly contribute to raising the

social wage.

1.5.3 Environment and rural development

South Africa's natural resources are vulnerable to over-exploitation and misuse. Many

environmental problems arise in densely populated urban areas from industry and mining.


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In other cases, it is poor rural people who suffer the consequences of this pollution. It isthe responsibility of government to ensure that pollution is brought under control and to

provide incentives for better practice. For their part, local people must be helped to planlocal resource use and to manage and conserve their environment for the benefit of future

generations.

1.6 The need for cross-sectoral coordination of rural development

Coordination of different sectoral initiatives is essential at both national and provinciallevel, especially as the rural voice is not yet strong. This was recognised in the

Reconstruction and Development Programme, adopted by the Government of NationalUnity in 1994, which was built on six principles:

an integrated and sustainable programme; a people-driven process; peace and security for all;

nation-building; link reconstruction and development; democratisation of South Africa.

(The Reconstruction and Development Programme, 1994, p.4)

Following the change of government in 1994, national level coordination of ruraldevelopment was carried out by the inter-departmental Rural Development Task Team inthe RDP office. This team was disbanded in 1996.

At provincial level, rural development policy and implementation is guided by provincial

development strategies. There are inter-departmental committees for this purpose in mostprovinces, backed by the provincial planning departments, which are not altogether

successful in achieving suitable coordination of planning and development.

Local government is well placed to effectively coordinate sectoral initiatives on theground, but few rural municipalities are as yet in a position to do this. It is therefore

critical that rural local government be built up speedily.

It is essential that, at both national and provincial level, government departments should

be held accountable for the impact of their policies on the lives of rural people. Levels offinancial allocations should also be monitored to ensure that rural areas obtain an

equitable share of the budget.

A case can be made for placing the responsibility for overall rural developmentcoordination with the office of the State President or with another cross-sectoral

department, such as Finance, or Constitutional Development. If the function were to belocated in the Department of Finance, it would have the added advantage of being able to

oversee government expenditures on rural development, including drought relief if andwhen this was incurred.


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1.7 The way forward

With high unemployment in rural areas, the creation of sustainable rural livelihoods mustbe a major objective. To plan and implement local economic development, rural councils

and communities need access to funding and to capacity building for planning and

implementation, for which national and provincial support is essential. Without suchhelp, local government in the poorer rural areas will not be able to meet its constitutionalobligations to promote social and economic development.

Government departments are keen to provide that support and are in the process of doing

so, but their efforts are often poorly coordinated. Because there have been many recentpolicy developments, both the departments and the people themselves are often unaware

of the incentives offered by the various government agencies. The assistance which canbe made available to rural people is described in this paper.

2. Building Local Democracy andDevelopment

2.1 Purpose

This chapter considers the role of local institutions in rural development. It recognises

that, in many rural areas, the required institutions have yet to be properly established andthat detailed local government policy is in the process of being developed.

South Africa is at present consolidating the transition of the country to democracy in all

spheres. One of the most significant developments is the establishment of democraticlocal government; another is the adoption of the Constitution which places theresponsibility of service provision on local government. Most municipalities do not yet

have the resources or the capacity to deliver services to their people. There is a largebacklog of services in most areas, particularly those which were disadvantaged in the

past. The demand by the ordinary citizens living in these areas for decent services ispressing and justifiable.

The establishment of local government is a lengthy process. In most rural areas no such

institution has existed in the past. People are having to learn governance skills for the firsttime. It is the constitutional responsibility of national and provincial government to:

help local government to recognise and define the needs of local people; to encourage local government to involve local people in planning and in the

actions necessary to satisfy their needs; and

to enable local people to assume increasing responsibility for these actions.In other parts of the world, these precepts have been the basis of successful rural

development.


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2.2 Powers and functions of local government

The powers of municipal government are set out in section 156 of the Constitution. Amunicipality (ie an organ of local government) has executive authority in respect of, and

has the right to administer, the local government matters listed in Part B of Schedule 4

and Part B of Schedule 5 (see Box 6.1), as well as executive authority and the right toadminister any other matter assigned to it by national or provincial legislation. Where amunicipality has the right to administer a matter, it may make and administer by-laws in

respect of those areas.

The Constitution sets out a very clear developmental role for municipal government. Inparticular, section 153 provides that municipalities must structure and manage their

administration, budgeting and planning processes to give priority to the basic needs of thecommunity and to promote the social and economic development of the community (see

Box 2.1). The section goes on to state that municipalities must participate in national andprovincial development programmes.

Although the Constitution confers the above powers on municipalities, the role ofnational and provincial government is an important one. The Constitution specifies in

section 155 (6) that each provincial government must establish municipalities in itsprovince and must:

(a) provide for the monitoring and support of local government in the province;

and

(b) promote the development of local government capacity to enablemunicipalities to perform their functions and manage their own affairs.


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These imperatives, combined with the clearly developmental role that the Constitutiongives to municipalities, necessitate provincial and national intervention to ensure that

municipal structures have the capacity to perform their functions.

The role of provincial government is, however, not limited to capacity building. Both thenational and provincial legislatures are required to develop guidelines and policies with

regard to developmental matters. In particular, national government must continue settingnational policies and standards in the developmental arena as provided for in Section 146

and Section 44(2).

The Constitution provides for different categories of municipality (see Box 2.2)

Local government is the elected government body:

that takes ultimate responsibility for service delivery; with which CBOs, representatives from local fora, local business representatives

and other stake-holders consult for the purpose of assessing needs and priorities;

that mediates competing interests in resource management, project planning or theprovision of services (this role falls to the district level, i.e. Category C, where the

priorities for the district are set and funding negotiated); that sets Land Development Objectives under Section 27of the Development

Facilitation Act (67 of 1995) that bind all land development decisions and policiesin their area of jurisdiction;

whose function it is to coordinate the work of the different departments andfollow through requests for funding or implementation to the appropriateprovincial and national bodies - the most important will be the ProvincialInterdepartmental Committee, chaired by the Provincial Director General;

with responsibility for ensuring that the needs of poorly organised local people arealso taken into account.

At the primary level in rural areas, there are the following local government bodies (i.e.Category A and B - see Box 2.2): Rural Councils, initially including various transitional


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forms; and Town Councils. These are supported by rural District Councils (i.e. CategoryC), called Regional Councils or Service Councils in some provinces, with indirectly

elected representatives from each local council. The District Councils include the oldRegional Service Councils (RCS) and Joint Services Boards (JSBs). These provide an

embryonic bureaucracy to serve the District Council. The old RSC/JSB levies will

become an income source to the District Council.

In some rural areas local government has yet to be established. A major effort is needed

to provide the training, capacity building and the resources needed for local governmentto function. Such training and capacity building is the prime responsibility of the

Department of Constitutional Development and the provinces. Some other centralgovernment departments (e.g. Water Affairs and Land Affairs) are involved in capacity

building in connection with specific projects and programmes.

The responsibility for establishing public services, for infrastructure development, and forworking with other stakeholders to promote local economic development, will be

transferred to primary local government level from the existing district councils as thenecessary capacity is developed.

It is only the primary level of local government which can provide on-the-groundcoordination of sectoral agencies (e.g. land, housing, water). National and provincial

sectoral departments should support this coordinative role.

2.2.1 Local councils in rural areas

As part of the Local Government White Paper development process, discussions areunderway at national and provincial levels to identify the exact functions and

responsibilities of each tier of government and to work out their relationships. Ideas arebeing examined for partnerships between local government, private enterprise and NGOs,

which will promote development and democracy. The Local Government White Paper isexpected to define the number of local authorities, how they can become financially

viable, and describe an efficient model for rural local government.

With some local variation, together both District and Local Councils are expected to

provide the services set out below.

It is expected that primary rural councils will have responsibility for:

providing basic services including administration, planning and evaluation, localroads, refuse and sewerage removal, water and sanitation, electricity, storm water

drainage, primary health services, protection and emergency services, security,transport, cemeteries, libraries and museums, and recreation facilities;

for rural development; ie interacting with the various parties involved, settingpriorities for access to affordable services, infrastructure and local economicdevelopment;


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identifying special local needs and applying to the District Councils and othersources for the funds to meet them.

2.2.2 District councils in rural areas

It is likely that District rural councils will undertake the following:

establish and support primary local government structures, initially in conjunctionwith the provincial government;

act as a conduit for the inter-governmental grants provided by other levels ofgovernment;

appoint and employ personnel who will serve more than one primary localauthority;

set guidelines on levels of services to be applied throughout the district accordingto the framework established by national and provincial government;

establish where certain development and support services (eg periodic services onmarket days) should be provided in order to be of benefit to poor and remotecommunities in the district (and set the financing rules thereof);

provide technical assistance to primary local government for the planning of localeconomic and infrastructure development, and services;

strengthen the capacity of primary councils (as they gain wider administrativeexperience, they should be given more legislative and executive powers);

establish Land Development Objectives and formulate an integrated developmentplan for its area of jurisdiction.

These issues are expected to be covered in the White Paper on Local Government whichis under preparation and expected to be published at the end of 1997.

2.3 Upgrading the skills of councillors and council officials

Municipalities must hold the provincial governments to their obligations under the

Constitution. This is essential if local governments are to receive their complement ofpowers and functions and if they are to work with local people to achieve rural

development. Capacity building for rural local government will be critical for theirdevelopment (see Box 2.3). Indeed, investment funds will not be made available until

councils have shown they have the ability to manage funds and to plan and implement ina consultative manner.

As RSCs come under democratic supervision as District Councils, they will have toredirect and broaden the services they provide. Rural people will want closer control over

services and the speedy devolution of responsibility to primary local authorities. YetRSCs will have little experience in these matters. A number of initiatives are underway to

resolve these deficiencies.


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2.3.1 Help with financial management

The Department of Constitutional Development recognises lack of financial managementas the key weakness at the primary level. Measures are needed which make the best useof available personnel and are cost effective. The department is also setting up a scheme

whereby retired town clerks and other consultants will assist new councils.

2.3.2 Council offices

RDP funds have been allocated for the Rural Administrative Infrastructure Development

programme to build and equip simple offices for all new councils. Some of the funds willbe used for the training of rural local councillors.

2.3.3 Training

A restructuring of the Local Government Training Board (LGTB) and the 15 provincialtraining centres is in process. The LGTB has to ensure that rural councils benefit and that

all training fits the National Qualifications Framework. Many NGOs have developedmaterials and skills for training new council officials and councillors. Provinces should

ensure that they utilise these already existing services speedily.

2.3.4 Project and programme-related capacity building

The Municipal Infrastructure Programme provides capacity building relating to

infrastructure development. Councils receiving MIP funding for infrastructuredevelopment will thus also obtain funds for capacity building. There are otherprogrammes run by national and provincial departments that either already support

capacity building, or should be asked to do so when local-level planning andimplementation are required, and/or recurrent costs and responsibilities, arising from the

infrastructure investments, will fall on local government or other local bodies (see Box2.4).


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2.4 Meeting community priorities


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Organised groupings of people can lobby local councillors directly, or apply through a

local coordinating committee, for funding to improve service delivery or infrastructure(see Box 2.5). After negotiation in the local coordinating committee, requests that cannot

be funded by the council should be submitted by the primary council concerned to theDistrict Council. In turn, the District Council can look to its own resources or approach

the appropriate provincial or national department. In either case, the provincial inter-departmental committee would be expected to make the final decision on the allocation.

Requests from coordinating committees can also be placed by the primary council beforean NGO, a donor, or a parastatal body. Local and foreign donors, parastatal or statutorybodies, or any government body should look to the committees for guidance on local

priorities. This should ensure that funding is geared to genuine local needs.

Once agreement has been reached on an investment project, implementation might besupervised and/or carried out by national or provincial departments, by the primary local

council itself, or through a contract with a small or medium-scale enterprise from the

area. All implementation should be as labour intensive as possible. The local councilshould seek to ensure that this stipulation is observed.

2.5 Funding rural development

Rural development is funded by all three spheres of government, partly by rural people

through payment for services and local taxes, and partly by the private sector throughcollaborative partnerships with government.


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National government contributes through sectoral programmes, such as the CommunityWater Supply and Sanitation Programme, or the Housing Subsidy or Settlement/Land

Acquisition Grants, or more generally through the Consolidated Municipal InfrastructureProgramme. Central government also provides funds to Councils, as Inter-governmental

Grants (IGGs) which are currently being restructured to ensure that essential services are

provided. These very limited, revenue-sharing funds are meant to favour areas with a lowrevenue base. This is important for effective rural development, given the well-established link between discretionary funds made available at a local level and the

appropriateness and speed of rural development. Provinces will contribute to ruraldevelopment through sectoral programmes, such as for health and education.

2.5.1 Funding of local government

Issues relating to the funding of rural development are intimately linked to those of

funding local government. Funds are required in rural areas for running localgovernment, providing services, improving and maintaining infrastructure and generally

promoting local economic and social development. A municipality may impose rates andtaxes, levies and duties on its constituent population. It may also raise loans from banks.

Municipal councils are supposed to be self-financing, but many rural councils will not be


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able to raise sufficient revenue locally or be able to provide adequate guarantees to obtainsuch loans.

Currently the tax base consists of the old RSC levies, now going to the District Councils,

plus any levies and service charges. The Katz Commission is considering the levying of a

land tax as a source of revenue for local government.

2.5.2 Affordability issues

The level of services which can be provided by rural local government will depend on anumber of factors including technical and financial feasibility, population density and the

location of the nearest bulk supplies (eg potable water, electricity). Service provision willalso critically depend on the potential of the local tax base. A basic level of services will

be made available as an entitlement; thereafter, any improvements must be paid by thelocal population through levies and rates. It is a requirement of the Constitution that

municipal councils create a level of services that is affordable to the local population, and

that they set up effective systems for obtaining payment for them. It will be necessary toset tariffs in a manner which will ensure cost recovery in the longer term.

2.6 Local structures for land reform and land administration

Government attaches great importance to placing land administration services as close aspossible to the local level. Decentralisation is necessary, first to speed up the process of

land reform and to obtain strong grassroots support, and secondly because localgovernment bears the primary responsibility for the provision of supporting services to

land reform beneficiaries. Without this support, land redistribution and settlement cannotbe viable. Important land administration functions, particularly those relating to land

development control, are already vested in urban municipalities. This decentralisation ofdecision making must be extended to the predominantly rural municipalities as well,

although the present capacity of local government to take on these functions in manyrural areas is recognised to be limited.

The long term vision is that each district should eventually have its own District LandOffice within the municipal structure, staffed by officials and guided by the council and

the provincial office of the Department of Land Affairs.

The functions of the District Land Offices would include the confirmation of user rights(in the case of communal and public land); imposition of restrictions on the use of land,

authorisation of change of use and land subdivision, and assistance with the preparationof Land Development Objectives (LDOs) consistent with the Development Facilitation

Act ( 67 of 1995), as well as the administration of the government's land reformprogramme.

Local government has an important role in the acquisition of land for leasing in smallplots to poor people for intensive cultivation, close to towns with other income

opportunities, schools and health facilities. The Department of Land Affairs recommends


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that the concerned local authority be consulted on the disposal of all state land within itsarea. This is in recognition that local government authorities are best placed to take into

account local needs and requirements.

In the context of land tenure reform, District Land Offices would assist communities to

make decisions about the content of local tenure rights and administration of land rightsat the village level. They would provide a facility for the registration of existing rights,would ensure that rights systems were consistent with constitutional protections and

provisions, and would assist with adjudications of rights. They would also link to theDeeds Registry in ensuring that all rights are registered within the framework of a

unitary, non-racial system.

It is in the problematic area of land tenure reform in communal areas that the issue ofdecentralisation of decision making is most pressing. Administrative reform has to

grapple with the issue of group rights versus individual rights and democratic controlversus tribal authority control. It is the Department of land Affairs view that higher levels

of tenure security in areas which remain under communal tenure are most likely to bedelivered where the local system is administered by a statutory local government

authority within the framework of national policy and legislation.

3. Building Local Economic Development

and Rural Livelihoods

3.1 Purpose

Following a review of possible local economic development initiatives, this chapterdescribes job creation opportunities in several sectors: commerce, rural industrialisation,

agriculture, tourism and public works. It recognises the importance of partnerships withthe private sector and NGOs at local level for the promotion of a wide range of

enterprises. These should build on and utilise the local natural resource base and theopportunities provided by actual and potential trade links within an area.

The chapter recommends the strengthening of these links through the establishment oflocal markets for locally produced goods and services. The Rural Development

Framework seeks to:

re-introduce the drivers of the modern economy (scale, low unit costs, a greaterdiversity of economic, trade and service activities and enhanced cash circulation)

which were removed to central places so that other areas would becomemarginalised, dependent upon them and unable to compete with them;

do so within an "economy of participation" that allows local residents to produceand to sell competitively small and irregular amounts of produce and wares into

both local and regional markets;


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lower the presently very high citizen transaction costs to undertake daily tasks ofbuying and selling, gaining services, meeting and finding information;

provide TLCs and economic actors with an organising and co-ordinatingframework of urban centres, public places and markets, within rotating rings of

markets, in which to discipline and to deliver effectively and efficiently economic

activities and services.

3.2 Current obstacles

Most of the constraints to rural development stem from the long period of apartheid with

its discrimination, forced removals and neglect of the majority black population. Forcedremovals led to over-population of the so-called homelands and deprivation of basic

needs. High population growth put pressure on family income, social services and onnatural resources. Structural and legal obstacles were raised to marketing and thereby to

production (See Box 3.1).

3.2.1 Poor rural-urban linkages

Small rural towns should be a focus for development, providing input and output

markets, mechanical and other workshops, financial services, and social services such asschools and clinics which will be of benefit to people in the surrounding area. For

historical reasons, these functions and links to the rural hinterland often do not exist orare poorly developed. Inter-district transport routes serve migrant labour routes, not the

needs of intra-regional trade. Output from the large farms passes through cooperatives todistant markets without serving the needs of small towns. Stores and supermarkets bring

in food products over large distances rather than attempting to establish local suppliers.There is need to integrate economic activity in order to generate income from added

value at a local level.


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3.2.2 Migration, remittances and unemployment

Migration of labour to distant urban areas and to mines has been declining in recent

years. Nevertheless, migrants' remittances remain an important source of income, most ofwhich is used for daily needs, leaving no surplus for investment.

Labour migration has long been a cause of family breakdown and disruption. It has led to

a host of social problems both in the rural areas and the places of in-migration andemployment. However, more recently, there have been problems of increasing numbers

of young people in rural areas, unable to find work anywhere. Without productiveemployment they face a lifetime of poverty, lack of fulfilment and exposure to increasing

levels of crime and violence.

3.2.3 Constraints on entrepreneurial activity

Property rights are important for obtaining capital for investment in entrepreneurial

activity - either through selling the asset or getting finance on the strength of it. For manydecades, the African population was deprived of this economic opportunity as a result of

discriminatory laws which prevented them from owning or leasing land or marketingproduce. Among other things, this has stifled business related opportunities (see Box 3.2).

These difficulties have been compounded by the failure of government to encourage thedevelopment of financial services in the rural areas and by the particularly conservativenature of the banking system. Commercial banks which might have offered financial

services in the former homelands have been discouraged by parastatals offering credit atuneconomic rates to a privileged few. The very poor access to education and training, the

limited natural resource base, and monopolistic ownership of marketing chains have alsodeprived local people of business openings.


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3.2.4 Restrictions on women

Women face additional hardship as a result of customary marriage and inheritance laws,which have reduced their ability to take up economic opportunities. They have restricted

access to land, finance, information, training, and markets. They face most of the

drudgery of collecting water and fuel wood and they shoulder the care of children, the oldand the infirm without access to adequate social services.

3.2.5 Obstacles to the expansion of the small farming sector

In the predominately white commercial farming areas, past government policies have ledto an over-capitalised, over-mechanised farm system. With the withdrawal of subsidies

and drought relief, they are financially vulnerable and ill-equipped to withstand themarked variations in rainfall normal in a semi-arid environment. Many agricultural towns

and villages have withered as processing industries have moved closer to national andinternational markets. The standard of living of 1,2 million farm worker households in

South Africa is notoriously low. They constitute one of the poorest and most insecure

sections of the population.

Widespread departures from existing systems of agriculture are rarely immediatelyfeasible. The change to small-scale farming is expected to be gradual, due to the many

institutional and capacity constraints (see Box 3.3). A move from capital-intensiveproduction on relatively few large farms to labour intensive techniques on many smaller

farms will take much longer than many perhaps envisage. Nonetheless, the benefits in thelong term are expected to be significant.


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3.2 6 Vulnerable environments

South Africa has a rural environment made vulnerable by low and erratic rainfall and bythe poverty of many of its people. Regulatory mechanisms have not recognised the rights

or constraints on poor people, nor the ease with which they are flouted by the rich and

powerful.

Landlessness and overcrowding in the former homeland areas and inappropriate farming

methods on commercial farms have given rise to severe land degradation and soilerosion. Although there is a lack of data on the extent and rate of land degradation, there

is sufficient evidence to indicate that South African soils are deteriorating rapidly due topoor management practice and inadequate monitoring and enforcement. There is a

serious risk of increased land degradation if preventive measures and better managementdo not accompany the land reform programme and land development in general.

The management of land resources is spread over different national and provincial

ministries, each carrying out their jurisdictions as specified by the specific Acts. Thismeans that the institutional framework, as well as the legal system, generally fails tointegrate their approach to land use, including the protection of the natural environment.

The Physical Planning Act (125 of 1991), the Environment Conservation Act (73 of1989) and the Conservation of Agricultural Resources Act (43 of 1983) assume

integration of environmental management in land use planning. However, at theadministrative level, environmental management practices remain sectoral and

fragmented.

3.2.7 Land tenure and ownership issues

Under colonialism and apartheid, various restrictions were placed on land rights. Blackpeople were prohibited from owning or leasing land in most of the country. Today, even

in the 'reserved' areas, rights or interests in land are insecure. Over the last few decades,these so-called communal systems have been characterised as 'backward' and

unproductive and government has attempted to individualise communal tenure. The wayin which this privatisation or 'individualisation' has taken place has often been a cloak for

corruption. It resulted in large-scale dispossession of the land rights of the poorest andmost vulnerable people.

Because legal prohibitions created severe shortages of land in the areas where blackpeople were allowed to live, some people established homes where they had no legal

rights. These settlements need to be brought within the ambit of the law with a propersystem of administrative support.

One of the major challenges of tenure reform is to de-racialise the system of land rights in

a way which brings pre-existing vested rights in land within a non-racial unitary system.Tenure reform must set in place viable institutions and tenure forms which address and

resolve the current problems of insecurity, inequality, lawlessness and uncertaintyregarding land ownership which discourages public and private investment in services. It


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must resolve current tenure disputes, overlapping tenure rights, and conflicting claims. Amajor problem in communal areas is the lack of adequate administration to support

communal land tenure. This is partly due to the breakdown of traditional institutions andpartly to the fact that law enforcement agencies have been reluctant to intervene in

disputes over land rights.

3.2.8 Women's land tenure rights

Communal and traditional tenure systems do, in some instances, operate in ways whichdeny the basic human rights of their members. Discrimination against women is well

documented, as is the fact that certain of these systems deny members the right ofdemocratic participation. A balance must be obtained between respect for the values and

beliefs which underlie communal tenure and the need to guarantee basic human rights.

3.2.9 Obstacles to provision of infrastructure on communal land

The issue of how to accommodate physical infrastructure in areas of communal landtenure also has to be tackled in order to ensure that land is set aside for service anddevelopment purposes and that it is appropriately owned and registered. An agreement

has been reached between the Departments of Housing and Land Affairs that the nationalhousing subsidy can be made available in communal areas provided that the right to

occupy is legally registered, for instance by the local land office under the auspices of thelocal authorities, thus circumventing the requirement of formal land ownership (see

Chapter 4).

3.3 Incorporating environmental concerns in rural development

Sustainable development is development that delivers basic environmental, social andeconomic services without threatening the viability of natural, built and social systemsupon which these services depend. Above all, concern for the environmental

sustainability of rural development in South Africa should be a socio-economic concern,which is ultimately an issue of social justice. Its principal goal should be the preservation

of people and the enhancement of their standard of living. It is about improving thequality of life of poor people in rural settlements and creating long term income from

even the most barren of surroundings.

A wide range of possible environmental impacts must be taken into account.Environmental management should not be restricted to conservation of natural resources,

the preservation of ecosystems, the maintenance of biological diversity. It should alsoinclude: measures to help the poor to use and manage the environment sustainably; the

management of the human living environment; and the understanding of the cultural,social and economic forces that define our relationship to the environment.

Environmental concerns therefore embrace concern for human rights.

In many parts of South Africa, the natural resource base is overexploited because of

extreme poverty, lack of access to land, water and energy sources. Structural economic


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change is therefore a basic requirement for sustainable development. The newdemocratisation of the state and of local government provides an ideal opportunity for the

implementation of local integrated environmental management.

3.3.1 Environmental rights

Section 24 of the Constitution (in the Bill of Rights) states that:

Everyone has the right -

(a) to an environment that is not harmful to their health or well-being; and

(b) to have the environment protected, for the benefit of present and future

generations, through reasonable l

rural development framework

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