The Changing Global Landscape in Rural Development: Critical Choices for Results-

Oriented Research in Southern Africa

ByVuyo Mahlati

24 November 2010University of Pretoria Postgraduate School

of Agriculture and Rural Development

Rethinking The Rural Development Research Agenda In Southern Africa

PROBLEM AREASGlobal Realities and the Rural DilemmaMeaning 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-basedMono-discipline

Global RealitiesDeclining world economy with massive job losses and

contraction of world tradePoverty and HungerClimate 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

Rural DilemmaRural 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

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)

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 ; BUTInequality 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%)

Zambia Example

Zambia Microenterprise Sector Source: Zambia Business Survey 2010

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.

Problem

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

Rural Development DefinitionsChambers(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).

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).

Difference between agricultural economics and rural economicsAgricultural economicsElementary unit of

analysis- farmMajor fields of

analysisFarm productionMarketing of

agricultural commodities

Demand for foodPerformance of product

and factor markets

Rural economicsElementary 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).

Cont…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 levelsIncome and food

securitySatisfaction of basic

needs (access to public goods and services e.g health and education)

Intergenerational equityQuality (standard) of life

(de Janvry et al., 2002).

0% 10% 20% 30% 40% 50% 60% 70%

World

Developed economies

Developing economies

Sub-Saharan Africa

Countries in Transition

Latin America and Caribbean

Near East and North Africa

Asia and the Pacific

South Africa

Economically active in agriculture as percentage of total economically activeRural population as percentage of total

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 (Presidency 2008 )

Structural adjustmentFree marketsGetting prices rightRetreat of the stateRise of NGOsRapid rural appraisal

(RRA)Farming Systems

Research (FSR)Food security & famine

analysisRD as process and not

productWomen in Develpt(WID)Poverty Alleviation

Rural Development Ideas TimelineAdapted from Ellis & Biggs (2001)

1970s1980s

Transformational approachTechnology transferAgricultural extensionGrowth role of agricGreen revolution (start)Rational peasants

1960s 1990s1950s

ModernizationDual economy model‘backward’ agricultureCommunity DevelopmentLazy peasants

Redistribution with growthBasic needsIntegrated rural develptState agric policiesState led creditUrban biasInduced innovationGreen revolution (cont)Rural growth linkages

Micro creditParticipatory rural appraisal (PRA)Actor-oriented RDStakeholder analysisRural safety netsGender & Devlpt (GAD)Environment and sustainabilityPoverty reduction

Sustainable livelihoodsGood governanceDecentralizationCritique of participationSector-wide approachesSocial protectionPoverty eradication

2000s

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)

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.

South African Case Study

20

BantustansBantustans

ProvincesProvinces

Settlement patternsSettlement patterns

Population by type of region

-

5

10

15

20

25

30

35

40

45

1995 2008 1995 2008

Africans Others (white, Coloured, Asian)

Mil

lio

ns

of p

eo

ple

Mostly former Bantustan Mostly commercial farming areasSecondary cities Metros

Quantec

The economy by region

-

100

200

300

400

500

600

700

800

900

1,000

Metros Secondary cities

Mostly commercial

farming areas

Mostly former

Bantustan

Other (utilities, construction, business services, etc.)Government and community servicesFinance and insurance

Trade and catering

Manufacturing

Mining

Agriculture, forestry, fishing

Household amenities by region

CPS 2007

0%10%20%30%40%50%60%

informal

traditional

unimproved w

ater (including rain tank

and vendor)

over 200 metres to

water

pit or chemical toilet

bucket or none

wood for cooking

paraffin, coal or other

for cooking

paraffin or candles for lighting

Perc

enta

ge o

f hou

seho

lds i

n re

gion

metro secondary city

small towns in commercial farming areas mostly former Bantustan

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 The Rural 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.

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

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)

BACKGROUND: RSA LAND REFORM

The South 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; The South African White Paper on Land Reform, www.dla.gov.za, Ntsebeza & Hall (2007)

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‘A rapid and fundamental change in the relations (systems and patterns of ownership and control) of land,

livestock, cropping and community.’

• Social infrastructure• ICT infrastructure• Amenities• Facilities

• Tenure system review • Strategic land reform

interventions• Restitution

Economic infrastructureinputs:

• Agri-parks, fencing, seeds, fertilizer,

extension support , etc

Economic infrastructureinputs: •Abattoirs, animal handling facilities, feed-lots, mechanising stock water dams, dip tanks, windmills, fencing, harvesters, etc

Roads, bridges, energy, water services, sanitation, library, crèches, early childhood centres, Police stations, clinics, houses, small rural towns revitalisation.

1. State Land Don’t sell – lease hold• Quitrent:

(Perpetual or limited time)

2. Private Land Free hold with limited

extent• State the first right of

refusal when selling

3.Foreign land ownership Precarious tenure

4. InstitutionLand Management Commission

• Power to subpoena• Power to inquire on own

volition or at the instance of interested parties

• Power to verify/validate title deeds

• Demand declaration of Land holdings

• Grant amnesty or prosecute

Food Security:Strategic Partnerships:• Mentoring•Co-management•Share equity Modalities being worked out between the Dept and farmers; big and small

Meeting Basic Human Needs

Enterprise development

Agro-village industries; credit facilities

Phase I

Phase II

Phase III

Tenure System Reform

Rural development measurables

Source: Rural Dev Dept (2010)

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;

External environment

Impact on livelihoods

Capital assets

Natural

Social Human

Physical Financial

Situation of rural people

Vulnerability contextChanges in:•Resource stocks•Climate•Population density•Conflict•Political change•Technology•Markets•Disease incidence

InstitutionsStructures•Levels of government•NGOs/CBOs•Private sector•Traditional•DonorsProcesses•Laws•Policies•Incentives•Services

Livelihood outcomes desired•More income•Improved well-being•Reduced vulnerability•Improved food security

Livelihood strategies chosen•Natural resource based•(on-farm, off-farm)•Non-NR based (eg rents)

Implementation•Partnership arrangements

Impact on institutions

Impact on vulnerability

Impact on assets

influence influence

Negotiation on agreed common objectives, eg for projects or services

Negotiation on appropriate processes and structures for the strategies

Deciding appropriate roles, degree of self-help

Measuring Human DevelopmentTowards a New Human Development Dashboard

Empirical Measure Components of Human Development

Health Education Material Goods Political Social

Average Level Human Development Index

Empowerment Indicators

Deprivation Multidimensional Poverty Index

Vulnerability Indicators of environmental sustainability, human security, well-being , decent work

Inequality Inequality-adjusted HDI

Gender Inequality Index

Source: Pritchett (2010) in UN HDR (2010)

Value chain System

Source: Roduner (2007)

System Failure: Interdependency of rural infrastructureTelecommunication, 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).

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).

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).  

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.