Wednesday, September 9, 2015


Landless South African Black Movement
Policy issue; Poverty alleviation and Rural Development
Formulated for the Department of Land Affairs South Africa
Written by:

Policy abstract;
The Land question has been avoided and overlooked on its impacts to eradicate poverty and promote rural development, failure of the present land policy has become of the major barriers for rural development and to deal with it is an integral part of African liberation.This LSABM land policy document will give specific solutions on land reform and redistribution policies that will alleviate poverty and encourage rural development .Its accent is on the government to adopt a State Led Model on Land Reform and Redistribution and abandon the Market led model, adequate budget allocation from the government to the Department of Land Affairs and nationalise part of the agricultural land in the bid to enhance the pace of land reform as “will buyer willing seller method” has not yielded any results and engage with the donor community for support for an effective land reform and redistribution that is sustainable to eradicate poverty and inequality for rural development. The recommendation of the policy document is to nationalise 60% of agricultural land Reform programme as a method to return ownership of the land the Black South Africans and to develop the livelihood of masses in the rural areas. Whilst majority of the landless black peasants are unemployed living in abject poverty Land Reform Programme can be an important component to fuel increase in employment, agricultural output as agrarian reform is also enhanced. Land Reform is divided into three parts tenure Reform, Land restitution and land distribution this policy document integrates all the aspects and propounds an effective solution to the implementation of the policy.
LSABM is a civil society organization founded in 1998 that spearheads the interests of landless SA citizens and advocate for better land reform and redistribution policy from the government. The purpose of this organization is to lobby the government to revisit its land reform and redistribution policies for a fair practice that would see the mutual benefit of all South African citizens and to remind the government that Land reform is a quasi-constitutional right. The foundation of the movement is to find methodologies to eradicate poverty and inequality through an effective land reform and redistribution. LSABM advocates for the government to adopt a rigorous State Led model to redistribute land which includes nationalization of the agricultural land as a way of eradicating poverty and addressing the historical legacy of apartheid and invalidate the effects of the 1913 Land Act legislation and several apartheid legislations that hindered ownership and accessibility of land by the majority African population.

The main emphasis of this policy document is to lobby government on the issue of Land Reform and Redistribution in relation to poverty alleviation and inequality in the context of rural development. This has been a controversial topic among intellectuals, politicians and economists on what extent can land reform and redistribution have on poverty alleviation and in addressing inequality in South Africa, the Gini-coefficient of South Africa consistently shows a wide gap of inequality between the rural peasants and urban dwellers. South Africa Kwazulu Natal Region demonstrates such kind of inequalities, in realisation of these adverse effects this policy document will focus on how land reform and land redistribution can eradicate the poverty and improve livelihood of the rural homestead. The legacy of land deprivation of the colonial and apartheid result in the Black population bitterness and the will by the South African govern to return land to the rightful owners it became the sole priority of the Mandela regime soon after attaining independence in 1994.
The Policy document will address the following questions:
 What have been the results and effects of the failure to have an effective land reform and Redistribution in addressing the issues of inequality and poverty in Rural areas of South Africa.
 What can land reform and redistribution do to eradicate these implications?
Land Reform and Redistribution in South Africa;

The historical legacy of the 1913 land act during the colonial era resulted in imbalances and unjustified patterns of land ownership between race. According to Hendricks (2001;290) prohibition of land purchase by Africans outside these reserves was accompanied by a battery of legislative impediments of African urbanization the Land Native Act in 1913 was to ban ownership of land by Africans in urban areas but to be squatters that would provide labour for the white in towns and to minister to their needs. Land redistribution by the government is a major step to rectify the injustices of apartheid, promote national reconciliation, enhance increase in agricultural output and eradicate poverty in the rural households according Hendricks (2001;283) propounds that an effective land Reform must take note of the following 5 elements;
• Gross inequality in the distribution of land between blacks and white

• Focus on the need to distribute land ownership equally

• Land Reform and Redistribution that is centralized on eradicating poverty and economic growth

• Security of tenure

• Concerns in the manner in which land Laws have duplicate or overlap with the remnants of apartheid legislation

Historical imbalances created by rampant legislation by the colonial government left huge imprints of gross inequality in the distribution of land between blacks and whites colonialism took away vast tracts of African land and confined Africans in to reserve areas that were improvised with hunger, overpopulated and lacked sanitation. This has become a national problem as peasantry farming was destroyed driving all the Africans into towns were they can be proletarians living the rural areas undeveloped with lack of human power. According to Freeman (2004;290) these areas were called “Bantu” homelands, Bantustans, self governing territories and even independent states, series of brutal legislative laws were passed by the colonial authorities to divorce Africans their sole of survival and means of production the land Glen Grey Act 1894, Land Native Act 1913 and the Land act 1936. Such actions destroyed the commercialization of the African agriculture and displacement of the masses in the rich agricultural lands which were important for subsistence farming. According to Cousins (2007;223) the South African government had only distributed only 2.9% 10 years after the democratization of South Africa these trends demonstrates the failure of the South African government to address interests of the landless citizens. Policies in Place for Land Reform in South Africa .The present South African Land Reform policy is divided into three main pillars that are:

(a)Land redistribution policy

The present land reform and redistribution policy has failed to address concerns of the landless rural citizens in South Africa with its activities receiving little government attention resulting in the under financing of the programme the Department of Land Affairs has had no or little funds from the budgetary allocation from the Ministry of Finance according to Cousins (2007;223) the Department of Land Affairs for no reason apparent received only 0,5% of the national budget . The present policy according to DA land of opportunity Policy document ( has increasingly come to focus on agrarian reform leaving the needs of the landless African citizens commercial agriculture has received a lot of support from the government than small scale farming this has created a barrier to new resettled farmer. According to The government ever since 1994 has implemented the land restitution to return ownership of land the majority affected from 1913 to 1994, land redistribution which was to reallocate 30% of the commercial land to the black population by the year 1999 and tenure reform to provide security workers and population that reside in commercial lands. But no meaningful change has occurred and claims of land restitution remain unattended Land reform statistics only 5000 land restitution claims have been attended to out of the 63500 that were forwarded to the government. Cousins (2007;223) elaborates land reform is an significant element to diminish poverty and guarantee equal opportunities of economic empowerment of the masses. To this date only one percent of agricultural land according to has been redistributed to the black majority leaving a wide gap of disparities in the ownership of land 87% is still owned by the whites and the remaining 13 by black people.

(b)Land Restitution policy

Since 1994 the government has implemented Land Restitution policy to address the concerns of those that were ‘deprived land on racial grounds since 1913. Land Restitution was implemented to return property according to to individuals or communities that were forcibly made to give up their land as a result of the apartheid legislation compensated in monetary terms or in the actual return of the land that was taken by force. But the ramifications of this policy did not yield the expected outcome form the landless South African black communities and individuals as according by the end of 2000 36489 claims had been addressed out of the 85000 that were handed over to the Department of Land Affairs and the total compensation totalled to R1.2billion in monetary terms. By 2002 the government had only managed to acquire 571 232 hectares to resettle the rural population which was R442 million to total monetary value. 2005 was the set date to finish all land claims by the government but they have changed the date to 2015. This failure of the government, to address the Land Restitution claims is furthering poverty and unemployment in rural KwaZulu Natal region.
(c)Tenure reform policy

The tenure reform policy was implemented to protect the rights of farm workers according to Cousins (2007;224) this legislation have only been successful in avoiding evictions of workers from farms but to a lesser extent has helped in redistributing land to the SA citizens as it is their quasi-constitutional right. Land Reform programme must address the historical violent and brutal land dispossession to enhance equitable distribution of ownership as fundamental basis for reconciliation and promote rural sustainability and development.

• Communal Lands Act of 2004 according to Cousins (2007;224) this policy was passed to address the legal insecurity of people’s land rights in communal lands for people to have developmental and selling of the communal land rights. Although the policy addressed the insecurity that existed of land rights continual confusion on the traditional leader’s authority and control over land is still being noticed.

• Land Reform Act 3 of 1996: as the website stipulates “ it enacted to protect the rights of the workers that resided in commercial lands from arbitrary eviction and ensure that conditionalities are present for working conditions and health.”

• Tenure Act 62 of 1997: provided security to land dwellers in commercial lands with rights to reside on land with access to education; health facilities and act also protected the African peasants who lived in the agricultural land to rights form unlawful evictions without a court order.

• Prevention of Illegal Occupation of Land Act of 1998: The act provided procedures to follow in evicting illegal occupants of land and prohibit unlawful occupation of lands.
The purpose land redistribution- is to make all productivity land to be equally distributed to the majority of South African citizens through government financing and support in the bid to improve livelihoods. The purpose of restitution – the fundamental reason for restitution is to return land rights to the majority that were deprived by the brutal legislation of the colonial government from 1913 to 1994. The tenure reform policy- government efforts to secure the tenure of all citizens

Successes and failures of the present policies of land reform and redistribution:

According to the website in the year 2008 5.8 billion hectares had been allocated to the majority through land redistribution and restitution which is about 5% of the commercial land the figures have not changed up to now. 90% of the claims for land restitution have been solved by the government with most in urban areas whilst the rural areas claims remain unsolved. But this has not been enough to achieve the government goal to redistribute and resettle 30% of the agricultural land to the black majority by 2009 which has been shifted to 2014 as the government is failing to achieve such expectations due to lack of commitment, difficult make the willing buyer willing seller policy fall on their favour and mostly to the lack of funding of the DLA. According to South African Catholic Bishops Parliamentary Liaison office's%20Land%20Reform%20Programme%20- %20Progress%20and%20Problems%20June%202010.pdf the objective to transfer 30% of the land to the majority which is approximately 82million hectares has not been realized, the National Department of Agriculture’s Land and Agrarian Reform Programme (LARP) document has recommended this goal to be shifted from 2014 to 2025. In 2009 about 6.9% had been transferred to only 1.78 million beneficiaries which are about 5.67 million hectares. Of the 90% beneficiaries the government has managed to redistribute land have not managed to farm productivity on the land which is the major problem with current policies as they do not fully ascertain the how land reform and redistribution can have on employment opportunities for rural peasants and address the inequality that exists. This failure of the market based model to redistribute land to the landless South Africans calls for much State led land redistribution policy
Possible solutions to the Land Reform and distribution policy:

(1).Accessibility of land to the majority through Nationalisation of agricultural land- accessibility of land to the majority must be supported by legislative acts formulated by the government in context to promote rural development and sustainability through an efficient land reform plan. Accessibility of agricultural land through nationalisation of the 60% may promote agrarian reform in South Africa and have a secure food security. This state led model ensures effective distribution of land to the ,majority of the population according to IPF research document its successes can noted in Republic of Korea, Japan and Taiwan. Countries, such as Bolivia, Chile, Cuba and Mexico have adopted the state led model for redistributing land this led agrarian reform that resulted in a sound boom in their agricultural sector.

The failure to implement such a policy of the government to provide land accessibility will result in profound effects as most interest groups are now advocating for a violate land reform hence land invasion will be invertible in future as the mainstream of the black inhabitants are still deprived of the ownership of land. These profound effects can result in the unplanned and distractive land reform in South Africa destroying agricultural sector and the economy. Zimbabwe’s land reform demonstrates the results of such policy implementation the same failure can to lead South Africa into economic meltdown and food security turmoil.
Effects of such a policy: Results in such a policy will lead to the government to failure to address every land concern of every citizen and this may take a lot of years to achieve as the monetary value of such a process maybe too costly for the government to implement. Commercial farming which is mainly dominated by white Boers will crumble leading to disinvestment in the agricultural sector compromising food security of South Africa however land reform programme can lead to poverty eradication in the rural household and improve sustainability.

2. Land invasion as possible land reform and redistribution policy; Fast Track Land Reform

Neighbouring countries such as Zimbabwe embarked on a rigorous land reform and land redistribution programmed aimed to address historical imbalances and inequality that was caused by the dispossession of land in the colonial era. This end result was the emancipation of the Black majority resulting in the Black Tobacco farmer’s tobacco produce in the last season to contribute drastically to the GDP of the crumbling country. In Taiwan the same state led model to redistribute land was implemented and resulted in an agrarian revolution that helped the country to eradicate hunger and poverty in the rural households.

Effects of such a policy will result in economic meltdown and rampant national crises as there is a major decrease in agricultural output resulting in food security begin compromised however such kind of policy implementation can be fastest to address the historical imbalances of land dispossession it can lead to massive practice racist brutal actions against white farmers as the invasions are not even government controlled and law enforcement in these situations is not possible. Land invasion goes against the most important elements of securing land rights as it a rampant action no legal rights of land ownership are passed to the beneficiaries.

(3) Land Reform and Redistribution as a pro-poor policy
To allow market forces to the sole mechanisms to redistribute land to the majority of landless South Africans is initially the current policy that the government pursue where no force is implied to the seller or the buyer. Through this policy land reform and redistribution is implemented as way of eradicating poverty and addressing inequalities that were caused by the historical imbalances. The policy would advocate to the minority of the land owners to give up part of the land to the government under a speculated monetary value. According to critics of the government land Reform have denounced the slow pace of it and are ascertaining the land question becoming politically explosive like the Zimbabwe scenario, they have regarded the willing buyer willing seller method of redistributing land as costly to the government and how the process is unjust as the land was forcibly taken away from the Black population. So this policy will be gazetted under the regulations of promoting transfer of ownership to the majority of the population under a speculated value agreed per each hectare attained from the present ownership.

The effects of such action will be disastrous as it indirectly force the present commercial farmers to surrender their land without the regulation of market forces, this will led to de-investment in the agricultural sector as security of ownership of land is compromised which in turn affects the agricultural output. However implementation of such a policy will result in a land reform and distribution programme that eradicate poverty and address the historical legacies that exist of land ownership as land in the major source of the means of production.

Of the three possible solutions listed above nationalisation of the 60% of the agricultural land is the official position of LSABM as nationalisation will speed up the process which will result in the government addressing poverty and issues of rural development in a much anticipated way by the SA citizens. Land invasion will result in the crumbling of the agricultural sector as well as chaos in determination of land rights and ownership however this kind of a policy will speed the land Redistribution at very faster pace than the market led model land reform policy. The land reform policy as a pro-poor policy may foster rural development as land redistribution will be the centre role of eradicating poverty but the dangers of such policy is its uncertainty to increase food security and enhance agrarian reform in South Africa. Nationalisation of 60% of the agricultural land as the official position of LSABM will ensure that 40% of the agricultural land will remain productive even if the policy failures and would ensure white farmers disseminate farming knowledge to the newly resettled farmers than removing all the white farmers from agricultural activity.
Proposals for implementing the recommendation;
Assessment studies;

Conducting a situation analysis of the impact land reform programme on poverty and inequality to enhance rural development; Implementation of land reform and redistribution policy requires rigorous research and manpower a clear analysis of the benefits and disadvantages of such a policy need careful planning and evaluation. The impact of land Reform should not be analysed only as beneficial to address the inequality of land ownership between races can have detrimental effects to the economy as the agricultural sector contributes significantly the GDP of South Africa.

Make landless rural peasants statistics available to all planners; Statistics of rural landless peasant in the current policy is not that clear the gazetting of accurate figures of Black landless peasants can result in businesses, government and different stakeholders plan an effective land Reform policy
Involve key stakeholders in planning and research Policy; involvement of different actors in planning and research as land Reform should not be left only to the government but all organisations mainly civil Society and businesses should contribute to the policy formulation as they are the ones that results in people centred development.

 Rural Development: Integrate poverty alleviation and inequality at policy level.
If land reform can eradicate the poverty and address accessibility of land to the majority and ownership disparities in South Africa, Land and Distribution policy should integrate issues of poverty and inequality for the benefit of rural development at policy level and must form the most integral part of the policy.

Engage with donor community to support land reform and redistribution;
As the government is facing major difficulties in the financing of its fiscal activities the government must gather donor support internationally to support the policy whether in providing capital assistance and technical assistance. And promote participatory development in rural setting were land will be the main source of fuelling agricultural productivity.


Strategic evaluation and close analysis of the present Land Reform and Redistribution policies must be taken into consideration Land Reform and Redistribution process which does address the issues of poverty, inequality and rural development are detrimental to landless SA citizens as gross inequalities of land caused by the historical legacy of apartheid and colonialism are still rampant. Appropriate action must be taken and implement a sound policy before land reform before the masses rise against the malfunction of the government to resolve the land questions posed by the landless South Africans.


Cousins,B “Agrarian Reform and the “Two economies : Transformation South Africa’ Country side” In Hall, R and Ntsebeza, L.(eds) The Land Question in South Africa: the Challenge. Cape Town;HSRC Press, 2007
Freeman L.2005 South Africa’s Zimbabwe Policy; Unravelling the Contradictions; Journal of Contemporary African Studies South Africa
Hendricks,F (2001) “Land Policies and Democracy” in Coetzee, J et al (eds) Development; Theory,Policy and Practice ,Oxford Univesity Press;Oxford pp289-301
Hendricks,F (2001) “ The Land Question” in Coetzee, J et al (eds) Development; Theory,Policy and Practice ,Oxford Univesity Press;Oxford pp283-286
Internet Sources
Land Reform Overdue in South Africa by Danielle Owen This article was distributed by the InterPress Third World News Agency (IPS) and the Grassroots Media Network.
Land Reform
Land reform in post-apartheid South Africa – a disappointing harvest by Ben Cousins REDISTRIBUTIVE LAND REFORM IN SOUTHERN AFRICA
Martin Adams and John Howell The Unresolved Land Reform Debate:Beyond State-Led or Market-Led Models By Saturnino M. Borras Jr. and Terry McKinley Policy International Poverty Centre Nov/2006 no. 2 research brief
The Politics of Land Reform in Southern Africa Edward Lahiff
South Africa’s Land Reform Programme: Progress and Problems's%20Land%20Reform%20Programme%20-%20Progress%20and%20Problems%20June%202010.pdf

The trend towards flexible labour and outsourcing has affected the re-organisation of work in South Africa.

The extremely widespread use of flexible labour and outsourcing show that the cost-pressures and uncertainties of a more competitive world have penetrated to virtually every corner of the economy and even affects the kinds of work done by managers and professional staff”

White, H., Hill, S., Mills, C., and Smeaton, D., (2004) Managing to Change? British Workplaces and the Future of Work. Basingstoke: Plagrave. Pp 38
Critically evaluate, using examples, how the trend towards flexible labour and outsourcing has affected the re-organisation of work in South Africa.

The emergency of the new economy, based on information technologies which aim at decentralizing management, individualizing work and customizing markets have resulted in labour flexibility as metaphor of industrialized economies. The era of globalisation requires organisations to adopt flexible workforce that is multi-skilled, knowledgeable, interchangeable and adaptable, these elements have affected the re-organisation of work in South Africa. Flexible labour and outsourcing have resulted in detrimental effects on labour force while ensuring that Post Fordist organisations enhance efficiency and effectiveness which have resulted in better managerial and productive methods. This essay will critically evaluate, using examples, how the trend towards flexible labour and outsourcing has affected the re-organisation of work in South Africa.
Most industrialised countries such as Britain, Japan, America and China have resorted to flexible labour and outsourcing and South Africa is no exception. The production techniques in Japanisation such as TQM (Total Quality Management), JIT (Just in Time) are all embedded by flexible and outsourcing elements which have been adopted by South African firms. Labour market flexibility “refers to the extent to which an enterprise can alter various aspects of its work and workforce to meet the demands of the business, for example the size of the workforce, the content of jobs, and working time” (Barker, 2007:127). Production systems have changed the organisational structures according to Rogers (2007;4) the growth of global production systems is probably the most significant factor here, introducing flexibility and adaptation through new sourcing arrangements which by-pass national policies. According to Thomas and Hugh (2009; 203) flexible labour processes in Post-Fordist organisations emanated from work rules that were embodied in contractual relations, rights and grievance procedures which gave unions high bargaining power, as well employment protection that states provided through legislation which limited the employers the power to adapt to the mechanisms of supply and demand. To enhance flexibility Post Fordist organisations according to Horwitz and Eskine (1995;290) have promoted multi-skilling, job rotation and different forms of team work to structure the work place to all the employee participation, work time flexibility also been the patterns of working time through continuous shifts systems.
Two types of labour market processes are practiced by South African capital oriented flexibility and negotiated flexibility. Thomas and Hugh (2009; 204) retaliates that capital oriented flexibility as a labour process flexibility geared towards the needs of employers and compel labour to adopt largely involuntary ways. Employment for part time and other categories is insecure, non standard work such as self employment increases and the role of the state is minimal or confined largely to providing legislation conducive to the powers of employers to hire and fire as the sole want. In South Africa capital flexibility and outsourcing have become the rampant in the manufacturing, mining, retail and agricultural industry. While the state advocate for negotiated flexibility its effects on labour have been the same, the negotiated flexibility according Thomas and Hugh (2009:204) is characterised as a process that is “subject to co-odinated or central bargaining between the major economic actors while non standard forms of employment can increase flexibility has defined limits and allows for better working life”. Non permanent contracts, agency work, self employment non standardized work has been are the major characteristics of flexible labour processes these have resulted in major criticism by creating spheres of unemployment, exploitation and a decrease in the labour absorption rates.
South African companies through capital flexibility have managed attain more profits and enhance human labour management according to Webster, E & von Holdt, K (2005) companies such as SEA Harvest in South Africa introduced extensive participatory process as a way to improve performance inline with the TQM management technique that gives autonomy to the worker. The SEA Harvest Company was able to compress structures and reduce hierarchy as workers took increased responsibility; this was beneficial to the company as it able to reduce production costs in employing supervisors to control workers as well in enhancing motivation on the worker force. According to Webster, E & von Holdt, K (2005) the introduction of Invocoms at SEA Harvest which allowed names to be introduce to capture concepts of involvement, communication, and commitment were also major trends in develop a flexible work force, the invention of a network society also made it possible in the company’s bid to cut costs and worker related expenses. The Inovocoms according Webster, E & von Holdt, K (2005) are able to give individual autonomy to evaluate their work, take remedial action and identify obstacles and formulate action to solve the obstacles.
These new forms of flexible manufacturing systems adopted in SEA Harvest such as TQM (Total Quality Management) by increasing worker participation through Invocoms resulted in functional flexibility, according to Thomas and Hugh (2009; 219) functional flexibility is assumed to lead to higher levels of skilled labour by removing barriers between grades and categories. Thomas and Hugh (2009; 219) propounds that the capacity to rotate workers across different tasks is normally predicated on their prior fragmentation, rather than combining them into something holistic. The other detrimental effects of flexibility means fewer rules and less bureaucracy as well according to Thomas and Hugh (2009; 220) the multi-skilling at the heart of functional flexibility represents a modest enlargement of the range of tasks required rather than and more fundamental change in the direction of skill enhancement. From participation at SEA Harvest the workers never benefited with remuneration low, hard working conditions, casual work, temporary work, subcontracting and outsourcing. Clarke (2001:23) argues that without a clear employment contract, better working conditions and legal protection, casual workers have faced intense exploitation and are going through difficult times.

Also Pick n Pay has also adopted labour market flexibility and outsourcing as a way to reduce its production cost and enhance managerial control. Pick n Pay has promoted casual work, temporary work, subcontracting and outsourcing. According to Mathega (2009;63) competitiveness, growth and reduction of costs have put pressure on companies to restructure their workforce relations. While Pick n pay is among the most labour intensive retail stores in South Africa, with pressure of deregulation and liberalization of the South African economy the company was forced to adopt a flexible labour force and outsourcing. According to Mathega (2009;62) the restructuring process in Pick n Pay started by introducing and making use of flexible forms of employment such as casualisation, part‐time or temporary work and externalisation. The Pick n Pay retail stores have managed to survive in the retail industry competing with Shoprite and Checkers, flexible labour and outsourcing has helped the Pick n pay to profit maximise according to Mathega (2009;64) Pick and pay now enjoys market hegemony implies a new workplace order whereby the forces of market growth, competition and cost reduction have restructured workplace relations and have changed the way in which workers and managers view the workforce.

The retail industry has used labour flexibility to circumvent South African Labour Laws such as ERA (employment Relations acts) EEA (Employment Equity Act) and BECA (Basic Employment Conditions Act), most industries in South African economy have termed these labour laws as “draconian laws” that hampers business operations. According to Voladia (1991:48–50) flexible labour is used to work extended hours, these workers are more productive than permanent workers, flexible labour is used to protect retail companies against existing trade unions, most of the casual workers do not have medical and other benefits a normal workers is supposed to have. Casual worker force in Pick and Pay work from 17:00 to 19:00 hours a day and on weekends according to Mathega (2009;64) the management of Pick n Pay prefers casual workforce cause it is cheaper and reliable than permanent workforce that refuse to work extra hours hence used as a substitution for permanent workforce. According to Voladia (1991:48‐50) some managers admit that the use of flexible labour is an effective way of protecting their companies against strikes and stay aways by permanent workers.

The use of casual, temporary and subcontracted workers the retailers have eroded worker protection and have rendered unionism power in retail business useless. Retail shops such as Pick n Pay through numerical flexibility has made it easily retrench and dismiss the work without any state or union involvement as most of the jobs are non permanent. Mantashe (2005;4) points out that permanent jobs have been replaced by flexible jobs that lack a standard employment relationship. Thomas and Hugh (2009; 205) retaliates that high contestation of labour flexibility causes uncertainty in the job market, job security has been eroded, the impact of flexibility were populated by negative accounts of re-hiring redundant workers under subcontractors with significant loss to pay, benefits and health and safety protection. Most South African retail industries such as Shoprite, Pick n Pay and Checkers willingly practice deliberate measures to erode employment security and increase the number of workers on non-standard contracts in order to adapt to the mechanisms of supply and demand that consistently change to consumer preferences hence are paramount in determination of profits.

Most casual workers in Pick and Pay are paid low remuneration according to Mathega (2009:59) flexible employment such as casual and subcontracted work goes hand in hand with lower levels of income, making it more difficult for workers to satisfy their basic needs. While the labour laws of South Africa do not protect the workers that are drawn into labour market flexibility, worker exploitation has increased relatively in all sectors of the economy.Wage flexibility in this era of free market economies has also been enhanced Horwitz and Eskine (1995: 290) elaborates that wages have shifted from uniform pay systems to performance based pay either or an individual team. The most detrimental labour market flexibility that has been the sole result for unemployment and social degradation is numerical flexibility which allows the owners of capital to reduce the size of the labour force to the laws of supply and demand this has resulted in subcontracting of labour, outsourcing, the use of casual or seasonal labour and homework. According to Benjanim (2005:12) in the South unemployment has been described as the handmaiden of flexibility. Home working and Teleworking has become a major characteristic of the SA retail industries with an increasing amount of part time work driven by female preferences according to Thomas and Hugh (2009; 2010) flexibility analyses tend to set aside the issue of gender and ethnicity by recasting dual labour markets as benign, progressive of invertible.

Massive franchising, outsourcing, casualisation and flexible labour is the main critical issues among Trade union representatives the recent issue on Wal-Mart 51% acquisition of Mass-Mart has received hostility from both government and trade unions as they fear intense exploitation of workers. Due extreme labour market flexibility globally the SA Trade Unions have argued that the merger will bring detrimental effects to the labour force in the retail industry according to Mail and Guardian (2011) Wal-Mart is being criticised of having a history around the world of suppressing union and worker rights. The major contradiction is the that labour flexibility itself create employment according to Rodgers (2007;3) employment protection does not clearly lead to higher unemployment, although it was found to be associated with lower employment rates hence enhancing labour flexibility will result in high employment rates even though the employment is not secure or permanent protection reduces inflows to employment of labour market entrants. According to Benjamin (2005;21) though externalisation flexibility which includes subcontracting, putting out work, use of self employed, buying instead of making components, on-site use of independent contractors or of employees “on loan” from other firms job creation is actually created for different sectors of the economy however this contradiction can justify that flexible labour markets help to keep wages close to the equilibrium and therefore avoid creating unemployment.

Despite the negative consequences of labour market flexibility South Africa firms attain benefits as the investment portfolio increases as well as reduction of production costs. While on part of the workforce increases labour participation rates is enhanced because it gives them more options of, when and where to work according to Thomas and Hugh (2009:with occupational changes characterised by portfolio workers and knowledge removes autonomy of the organisation on the employees hence numerical flexibility outsourcing and home working is less than a management strategy but more of individual cashing their knowledge and the dependency of the organisation upon it (2009; 2011). However, although flexible labour markets have created work in the part-time, service sector, there has been less success in creating permanent, full time jobs

The employer in this discourse of implementation labour flexibility process will benefit more from this setting while the employees suffer intensively due to lack of uncertainty and job insecurity in the Post Fordist Organisation. However due to the changing global markets labour flexibility has been adopted by most organisations to have a comparative advantage in profit making. Although ILO (International Labour Organisation) advocates for protective flexibility, the result have been detrimental as most of the employers resort to exploitative methods of labour flexibility hence the implication of creating labour flexibility in post Ford Organisations has created spheres of worker exploitation, unemployment and job insecurity.


Benjamin, P., (2005), "A Review of Labour Markets in South Africa: Labour Market Regulation: International and South African Perspectives," HSRC, Sida PDF document
Horwitz 1995 Flexible work practices in South Africa; economic, labour and regulatory considerations Industrial Relations Journal 26(4) 257-66
Rodgers, G., (2007) “Labour Market Flexibility and Decent Work”, DESA Working Paper No. 47, International Institute for Labour Studies PDF document
Mantashe, G. 2005. Labour market flexibility: Will the social impact help? Paper presented at Harold Wolpe memorial seminar, 5 October 2008 [Online]. Available: [2008, 2 February].

Thompson, P. and McHugh, D. (2009) “Organisations: a critical approach”, London, Palgrave Macmillan.

Valodia, I. 2001. Economic policy and women’s informal work in South Africa. Development and Change, 32(5):871–892.

Mail and Guardian: Former Walmart boss grilled on 'hostility' to unions LLOYD GEDYE - May 10 2011 15:33

The labour market of South Afrixca

Assess the extent to which South Africa’s contemporary labour market is an outcome of its history of inequality. Your answer should focus on historical events from 1652 and the ways these have or may not have impacted on the contemporary South African workplace.

The history of inequality which was caused by colonialism, segregation and apartheid has to a greater extent affected the contemporary labour market. The colonial period created some inadequacy in the labour market in the past and later to the current labour market. The effects of the exploitation of the different races by the colonial masters created the devastating effects that are in the contemporary labour market. This essay is going to elucidate and analyse if the history of inequality has any effects to the functions of the contemporary labour market.

According to the Oxford advanced dictionary (611; 2005) inequality is the unfair difference between groups in society, when some have more wealth status or opportunities than other, the inequality of opportunity and economic inequality between different racial groups. The historic period of South Africa was determined by inequality in every aspect in terms economically, politically and socially. As the colonial masters took control of the economic, political and economic functions of the native black South Africans colonialization become invertible as the European settlers took the mode of production such as the land in the bide to satisfy their capitalistic egos they enforced several laws and systems like the slavery system to suppress and control the Black South Africans.

Repressive laws were created to create a large labour pool for the European settlers the 1913 Land Act as according to Terreblanch (7; 2002) the Land Act of 1913 was the best of several example of the property class depriving the indigenous people of their land in a deliberate attempt to promote proletarianisation and impoverishment, thereby being the supply of unfree black land. Ownership of the factors of production by the colonial masters meant the oppression of the indigenous Africans Terreblanch (6:2002) land deprivation was the unfolding drama of unfree black labour over the past 350 years. This legislation was meant to create labour force that was required in mines and agricultural farms owned by the European settlers

The Native labour act of 1913 according to Terreblanch (12; 2002) stipulated the Africans could not practice sharecropping or squatter farming of white farms or public land. As the source of survival was out of the land by the Africans this meant to make a living was out of joining the brutal and oppressive labour force that was being offered in mines and agricultural lands by the whites. Terreblanch (6; 2002) also elaborates that as labour was scarcer and therefore potentially more valuable than land them was a continuity tendency to force the black labourers into slavery, serfdom and other repressed forms of labour. Getting the land which was being advocated by the Native Land Act of 1913 meant the Black South Africans were going to suffer in the oppressive hands of the European settlers.

According to Terrablanch (11:2002) the caper colonial authority introduced a system designed to employ coloreds and Africans as cheap and docile workers in Agricultural sectors which was enacted by the masters and servant laws, pass laws and measures aimed at proletarian coloreds and Africans by deliberately depriving them of their economic independence these included frontier wars, land deprivation, anti squatter and anti vagrancy laws and the abolition of the colored settlements. The legislative laws to deprive the South Africans off their means of survival was the most cause of the brutal acts of the South Africans in the future from the 16th century to the 19th century as it caused other laws to be enacted that were tantamount to the human existence by the former European Settlers.

The Act of the Westminster in 1909 according to Terreblanch (10; 2002) enacted a multitude of labour laws from 1910 aimed at keeping blacks subjected as subservient labour force. This created a unitary state that was governed by the parliament thereby the white dominated parliament imposed and put into place the most brutal and oppressive laws like the lands act of 1913.In 1841 according to Terrablanch (413;2002) the first of the long service of masters and servants ordinances and laws was adopted. The oppressive laws created the worst human inequality as there was a huge difference in economic, political and social differences in the history of human kind in South African history the history of these inequality has led to the devastating effects that can be noted to day in the contemporary labour market as they are no ways that have been done to solve the oppressive and brutal legislative acts that were put in place by the colonial settlers as the Whites still benefit from the past and the black South Africans still have no source of mode of production.

These factors of inequality have to a greater extent led to the inequalities that are found in the present day labour market from the legislative acts that have not fully address the challenges that were found by the deprived races and tribes. According to Leistner and Breytenbanch(92:1975) the trend of legislatives acts form the Bantu labour Act of 1964, the Wage Act of 1957 and some of the various Masters and Servants acts to the current moment have not yet addressed the ways of oppression and discrimination that is found in the labour market of South Africa. Many of the South African black and Indian majorities are still in hunger as they do not own the means of production as these means were taken away from them long back ago. No current legislation has able to solve the issue of discrimination in the contemporary work place to greater extent the legislative suppressive laws have led to negative impacts on the contemporary labour market.

The legislative suppressive laws that agitated the development of a capitalistic economy can still be noted in the current South Africa as all the means if production is largely owned by the racial group that benefited for the colonial past according to Terrabanch ( 384:2002) the impoverishment and proletarianisation of the Khosian and the different African tribes was a long and relentless that began in the late 17th century and continue uninterruptedly and with the increasing intensity until the 1980s.The discriminatory laws prevented the African to do highly skilled work and to own any means of production. Since the attainment of independence in 1994 the government has not yet done enough to create employment and raise the standards of living of the Black South African and the Indians as the BEE (Black Economic Empowerment) Act of 2003 not yet in full operation.

Racial inequalities that were created by the suppressive legislation in the colonial period are still the major concern of the Black population and the immigrant workers who were form India and China. Terreblanch (397: 2002) argue that the land Act of 1913 and other additional laws was to prohibit Africans from conducting business in white areas and to deprive them to legally accumulate capital and entrepreneurial skills. The land distribution by the government to make the deprived racial groups to attain mode of production and ownership of property has not be done successful leading to the oppressive way of white dominantly own companies to get the labour they want form the rural and urban seeking black labourers this an indirect from of making the companies get labour no matter what the outcome might be to offer them low wages and poor working conditions. Holdt and Webster (11; 2005) argue that the persistence of the racial division of labour and the racial tension remains the same feature of the workplace despite the progress with employment equity he also elaborates that racial authoritarianism is still a dominate feature in the contemporary labour market as he found that Highveld Steel still practice racial authoritarianism in his research.

However to a lesser extent the oppressive legislative laws have not had any impact on the contemporary work place as they are now Trade Unions and great awareness of forms of worker exploitation in the contemporary work place. The 1994 independence meant that the history of inequality was going to be buried and a new era of freedom and non discrimination in the labour market had come to phrase. The history of inequality is justifiable to define the contemporary labour market as according to Holdt and Webster (11:2005) at Anglo American there are more forms of team training as a basis for new workplace teams thereby sweeping away the inefficiencies and racial antagonisms from the apartheid era. The history of inequality has been addressed by the government of the modern day and various companies as they was dropped the authoritarian racial order.

Although the suppressive legislation contributed to the history of inequality, slavery was the first common way the European setters got labour form the South Africans as slavery was occurring through the world to build the British Empire and so European states. According Terreblanch (11:2002) slaves were imported and most of them initially owned by the Dutch East company, the slaves were mostly in patriarchal households. The importation of labour was mainly the sole source of attaining labour during the colonial invasion which led to immigrant workers from all the parts of the globe. After the abolition of slavery in 1838 a form of generating the need labour was to be introduced in the post slavery period the indentured labour system was introduced as according to Freund (1; 1995) the European question of how the authorities would organize labour force to extract the minerals, to grow the plantation crops, to transport the raw materials and to work the docks in a way that would make such systems profitable and self-sustaining. Indentured labour was introduced taking people from disadvantaged countries in the world like India and China as according to Freund (2;1995) no unfree labour was more important than the use of indentured labour it represented the revival of a system of abeyance.

Indentured labour was a new form of slavery although imposed indirectly by the European Settlers as according to Freund (2:1995) the indentured contract allowed for the employment of wage works under conditions giving a high level of control to employers and they were able free to set the terms of the contract to prevent them for living their grounds. The Indentured labour began to replaced the freed South African black works how were working in plantations and mines Freund (6:1995) argue that the expansion of the of the sugar industry in the early twentieth century would have required redoubled efforts aimed at massively increasing the scale of indenture if that were to continue as the basis of the sugar industry. According to Terreblanch (2:2002) Natal begin to import labour from India in 1860 and the Chinas in 1904.Oppression of the harsh history of the indentured labour in the past can be linked to the current work contemporary.

As the slavery changed to indenture labour and from indentured labour to the apartheid era the face of the real slavery has not went away. As modern day slavery can be noticed in the contemporary labour market where the owners of the means of production suppress the worker by subjecting them to lower wages and bad living conditions. Miers (415:2003) argue that modern slavery is not about ownership but control which means a condition of a person completely under the control of another. A new face of indentured labour is certain in the contemporary labour market as immigration workers are now no longer forced to come and work in South African companies, as South Africa has one of the strong economies in African it is attracting a lot of immigrants. Workers from neighboring countries such as Namibia, Mozambique and Zimbabwe are now the current indentured victims. There is no job security and they work in the worst workplaces because they have no choice. Holdt and Webster (19:2005) the flexibility of the migrant worker is the major reason for why employers favor it. They don’t have Trade Union representative which makes them easy targets for the capitalist’s worker exploitation. Even the ordinary South African have fallen into to pit hole of this modern indenture ship as the conditions work during the indenture ship period in the colonial past are now being subjected to them.

To greater extent the indentured labour practice has not had any impact on the contemporary labour market as they are now regulations that determine immigrant’s workforce. According to Hold and Webster (21:2005) the putting in place of the progressive legislation particularly the Labour Relations Act, the Skills Development Act and the Employment Equity Act.

The transition form the brutal acts of apartheid era has had an impact of the contemporary labour market some of effects of the history of inequality and oppression that advocated for discriminatory ways of the fellow human beings in the labour market can still be greatly noticed with the present political leaders with a burden to effect changes of the racial deprived groups especially the Black South Africans that are still suffering in the labour market due to the horrifically acts of the colonial settlers.


Holdt K V and Webster E .2005: Beyond the Apartheid Workplace: UKZN press: South Africa
Leistner G.M.E and Breytenbanch W.J :1975:The Black worker of South Africa: Africa Institute of South Africa: South Africa

Mier S .2003: Slavery in the Twentieth Century The evolution of Global Problem: Rowman &Littlefield Publshers: Oxford

Hornby AS. Wehmeier S and Mcintosh C. (2005) Oxford Advanced learners Dictionary : Oxford University Press.Oxford

Terrablanch S 2002 A history of Inequality in South Africa 1652-2002 University of Kwazulu natal press: South Africa


Critically analyze the GDS progress in improving the socio-economic position of South Africa.
2. Commitment of the Business, Government and other constituencies to solve socio-economic challenges GROWTH DEVLOPMENT SUMMIT (GDS) 2003
(a)Public investment initiatives a struggle for government
(b)Expanded Public Works Programme (EPWP), distant from providing better jobs, decent work for all
4. Creation of Sector partnerships and strategies and enhancing Local procurement
(a)The over-arching need to improve the investment climate for physical and human capital in South Africa: Small enterprise promotion
(b)Co-operatives in South Africa: Their Role in Job Creation and Poverty Reduction(c)Jobs impact and monitoring
(a) Pension and provident funds
(b) Tension within the current housing policy in South Africa
(c) Financial Sector Summit
(a) Accelerating Equity through Black economic empowerment
(b) Strengthening the SETAs and Learner ships as a way to enhance employment equity:
(c) Education and training policies need to fill the Provision to infrastructure and access to basic services growing skills gap.
(a) Local level planning
(b) Local Economic Development
The former President of South Africa Thabo Mbeki in 2003 said Our response to the challenges of poverty and underdevelopment rests on three pillars: encouraging the growth and development of the First Economy, increasing its possibility to create jobs; implementing programmes to address the challenges of the second economy; and building a social security net to meet the objectives of poverty alleviation” Kirsten (2006).[1] The Growth and Development Summit (GDS) of 2003 was panacea for the commitment of business, government and industry to engage and analyze the economic trends of South Africa and establish the course to solve the socio-economic trends in South Africa Thabo Mbeki in 2003 said the intention to host a Growth and Development Summit (GDS) was for constituencies to work together to address the investment, employment and poverty challenges our country faces”[2]. Seventeen years into the new democratic dispensation, social policy and economic strategies that address the problems of socio- economic have not met the required or procrastinated expectations. This easy will critically analyze the GDS progress in improving the socio-economic position of South Africa by analyzing the economic trends in terms of employment, investment, trend in technology development, social services, education as well other variables that play a pivotal role in the reduction of socio-economic challenges facing South Africa
Commitment of the Business, Government and other constituencies to solve socio-economic challenges GROWTH DEVLOPMENT SUMMIT (GDS) 2003
With the government objective of halving unemployment the Growth and Development Summit was a major step to address the persistent presence of socio- economic challenges according to Altman (2008) the government objective was to halve unemployment rate between 2004 and 2014, from about 26% to 13% and the ultimate target of 6.5% by 2024[3]. Socio- economic challenges in South Africa according to Haydam have created some structural imbalances that have resulted in alarming and remorseless high rate of unemployment, crime, low investment confidence, increased in social welfare and HIV Aids[4]The major aim of the GDS was to engage all constituencies the government, business, labour and community to find ways to eradicate the continued presence of socio-economic challenges. According to Nedlac 2003 the GDS was to build an enduring partnership promoting a shared vision of South Africa's growth and development strategy to frame sector and developmental agreements and lay the basis for partnerships in action. Address urgent challenges by selecting from many possible interventions those which hold the promise of the greatest possible impact in the shortest possible time for accelerated investment, job creation, improved efficiency and productivity, greater social equity, and a fairer distribution of economic opportunities and rewards, while undertaking serious social dialogue on broad policy frameworks. Lending a hand by securing the commitment and active participation of all constituencies in those areas identified for prioritized action in ways that build on lessons learnt from development programmes”[5] .The GDS was concentrated on creation of more jobs, better jobs, decent work for all, addressing the investment challenge, advancing equity, developing skills, creating economic opportunities for all and extending services, and providing local action and implementation
Public investment initiatives a struggle for government: An expansion in public investment initiatives (PIIs) according to Nedlac 2003 was to develop and maintain economic and social infrastructure by government, state-owned enterprises and developmental institutions, in order to facilitate growth, improve productivity, create jobs and promote urban and rural development[6]. According Lewis to (2001) the Spatial Development Initiatives (SDIs) have concentrated on huge capital-intensive projects oriented towards exploitation and “beneficiation” of mineral resources, so the incentives for ordinary manufacturing enterprises have been limited, and the employment creation minimal.[7]This is illustrated by Fig two PII is in crisis. Lack of public investment initiatives since the democratic dispensation has become more pronounced in recent years, with the Gini coefficient (a standard measurement of income inequality) increasing from 0,56 in 1995 to 0,57 in 2010 (Statistics SA, 2010:48).[8] Unemployment still remains a major problem according Haydam (2002:199) the costs of unemployment is divided into two the economic and non economic costs, the economic cost is the lost of output of workers who are unproductive and the non economic cost results in the high level of crime and labour unrest.[9]
(b)Expanded Public Works Programme (EPWP), distant from providing better jobs, decent work for all The EPWP was launched in 2003 according to Altman and Hemson[10] the EPWP was a short to medium term response to high unemployment and marginalization aimed to provide work opportunities, training and launch trainees into labour market. The EPWPs have created a lot of opportunities in the South African labour Market according to the 2010 Budget review[11] the Expanded Public Works Programme created 1.6 million short-term jobs during its first phase from 2004 to 2009, exceeding its target of 1 million EPWP are above expected expectations illustrated by Fig Two. The EPWP was established in line with the government objective to halve unemployment by 2014, designed around service delivery projects that are needed, such as rural infrastructure, clearing of alien vegetation or community-based social services such as early childhood development or home community-based care as well as to intensify labour absorption in the delivery of these services and infrastructure.
Altman and Hemson (2007:7) elaborates that in 2006/2007 approximately 300 000 people were engaged in the EPWP opportunity, with South Africa with one of the highest rates of open employment in the world the EPWP reaches currently about 7% of those unemployed by the broad definition and about 4% by the official definition.[12] EPWPs face a lot of problems the lack of government funding to the programmes according to Barker (2008:196) such programmes usually involve the denial of resources to some other programmes, EPWP might conflict with the fiscal and monetary policy of the government and largely it’s a temporary role and South Africa’s structural unemployment problem cannot be addressed through such programmes.[13]
Creation of Sector partnerships and strategies and enhancing Local procurement
(a) The over-arching need to improve the investment climate for physical and human capital in South Africa: Small enterprise promotion
The SMME sector in South Africa appears relatively underdeveloped; SMMEs appear constrained by inadequate demand, limited access and high cost of capital, and relatively weak support and procurement programs from Government. The sector is not especially dynamic: most recent employment growth has occurred through creation of new SMME firms, while existing firms have been reducing labour use, suggesting only limited success in the growth and maturation of a viable and vibrant SMME industry segment as illustrated by Fig Two SMME promotion is on track. However according to Lewis (2002) SMMEs are relatively under-developed: emergence of a more vibrant, export-oriented SMME sector appears to have been crowded out by factors such as the sanctions-related closure of export markets to South Africa, a trade regime that promoted capital-intensity in domestic markets, and distortions and regulations in domestic factor markets that have hampered the emergence or expansion of informal and/or start-up firms and this has continued even after the presidential GDS[14].
(b)Co-operatives in South Africa: Their Role in Job Creation and Poverty Reduction: According to NCASA’s baseline study:‘ Faced with massive economic restructuring and unemployment or under employment, millions of South Africans are discovering the potential of the workers co-operative, a collective entrepreneur model (rather than that of an individual entrepreneur) that provides decent and sustainable employment and a democratic workplace.’[15]
According Phillip Kate (20:2003) the most common problem in co-ops is that they start with an oversupply of labour, relative to their productive base, and relative to the absorption capacity of the markets they are targeting. Lack of financial and management techniques are rampant challenges faced by Co-operatives according Kate (2003:21) if the management skills do not exist within the co-op, then ensuring the design and operationalisation of effective systems for procurement, production, record-keeping, invoicing, sales, distribution and all the other functions of management requires extensive technical assistance.
(c)Jobs impact and monitoring: According to Nedlac 2003 in the Growth and Developmental summit the constituencies recalled Section 189 of the Labour Relations Act (LRA) that specifically provides parties attempt to reach consensus on measures to avoid retrenchments, or minimize the number of persons retrenched[16]. However this has not been a reality capital has taken advantage of the flexible labour market the 2005 unemployment rate according to Barker (179:2008) was 26,7% which represented 4.5 million people of the 16.8 million total labour force persons in labour market.[17] 2010 the unemployment rate has increased at an alarming rate according to 2010 Budget Review (2010:36) the broad unemployment rate increased sharply from 26.7% to 31.1%[18] see Fig One. The Minister of Labour Membathisi Mdladlana in 2010 Budget Review (2010:34) said that “stemming the rising tide of retrenchments is critical for us all. What will also be critical will be high-quality and courageous leadership from government”[19]. Job impact and monitoring has not been that successful but it is on track as illustrated by Fig Two.
Pension and provident funds: According to Nedlac 2003 constituencies supported the need for capacity building of employee representatives on Boards of Trustees, in order to enhance decision-making with regard to the proposed extension of investment instruments[20]. As illustrated by Fig three this objective is in crisis as nothing much has been done to create pension and provident funds to stipulate investment initiatives to the local population.
Tension within the current housing policy in South Africa: According to Lalloo, 1999, p. 38 Current housing policy in South Africa is the outcome of a process of intense negotiation within the National Housing Forum_ from 1992 to 1994[21] The right to `have access to adequate housing, is first articulated in the ANC's Reconstruction and Development Programme (RDP) in 1994[22],_also enshrined in the 1996 Constitution (Republic of South Africa, 1996, p. 12) According to the Department of Housing 1994 Housing the White Paper of 1994 gives the concept of `adequate housing a through its vision of
`viable, socially and economically integrated communities, situated in areas allowing convenient access to economic opportunities as well as health, educational and social amenities, within which all South Africa's people will have access to _ A permanent residential structure and with secure tenure, ensuring privacy and providing adequate protection against the elements; and _ potable water, adequate sanitary facilities including waste disposal and domestic electricity supply.[23]
However this has not been the case even after the presidential Growth Development Summitt 2003 according to Davies (2010) in informal `squatter settlements, exploitative shack-lordism still persist[24]. Mthembi-Mahanyele, (1999) elucidates that the Housing Ministry has consistently chiselled away at the original monolith of the project-linked capital subsidy mechanism, and now prides `a comprehensive instrument providing a wide array of housing subsidies[25] this is illustrated by Fig Three as housing has been achieved to some extent. Huchzermeyer / Habitat International 25 (2001) the problem in the housing sector is the in inaccessibility of credit facilities for the poor to build decent housing[26]. According to Mthembi-Mahanyele (1999) government clearly states a commitment to `unlocking housing credit however, such innovations are designed to serve the formally and informally employed `moderate income earners, a leaving a credit gap among the poorest, the precariously employed and unemployed[27].
Financial Sector Summit
The South African financial system according to Huchzermeyer / Habitat International 25 (2001) is highly developed and well managed, even by first world standards, most financial institutions are privately-owned and run, South African regulatory authorities are comprehensive and widely respected, the national payments system is modern, the court system is conducive to timely and unbiased settlement of disputes, and foreign banks are permitted to enter and operate with relative ease.[28] The breadth of financial products and services is unparalleled in other emerging market economies, and there is depth as well: the stock market is the 13th largest in the world, and the bond market offers first-world size and liquidity.
Accelerating Equity through Black economic empowerment
A few black-owned firms have merged into sizeable players some large corporations are now black controlled and black business has grabbed the headlines and initiative in an unprecedented manner. In 1999 according to Carter (1999) Metlife, was the largest black empowerment investment in the financial services sector had an asset base of R11 billion, making it the 26th largest company in the country, the media, forestry and paper, pulp, food and beverages, and fishing sectors have all attracted large-scale black investments[29]. Following ‘an initial flurry of politically driven deals’, black business reportedly captured about 10% of shares on the Johannesburg Stock Exchange (JSE) between 1994 and 1997 (Jacobs, 2002).[30] However according to Segal (2000) the value of BEE ventures dropped sharply in 1999 to R3.4 billion involving 45 empowerment firms compared to R21 billion involving 110 firms in 1998.[31]
In 2001, according to Ernst and Young, some 101 BEE deals were valued at R25.1 billion, but 104 deals in 2002 were valued at only R12.4 billion (Sowetan, 9 April 2003).[32] With the number of black companies on the JSE dropping from 26 to 21, ‘real black ownership was becoming a mirage’ but BEE has achieved to create black economic ownership as illustrated by fig four (City Press, 11 May 2003)[33]. By far the most important point is that blacks have made extremely limited inroads into the ownership, control and senior management of the private corporate sector. According to according to Bhorat (2004:958) the unemployment rate among black Africans tertiary qualifications went up from 10% in 1995 to 26% in 2002, the BEE (Black Economic Empowerment) as a government policy has not been able to address the inequalities in the contemporary labour market.[34] According to Terrablanch (2002:381) the supply in the African labour will increase to 76% of the total in 2020, the large numbers of Africans that will enter the market during the next 20 years will undoubtedly contribute to African unemployment until 2020[35].
Strengthening the SETAs and Learnerships as a way to enhance employment equity:
According to Patterson (2008) SETAs were established in March 2000 and are responsible for the disbursement of training levies payable by all employers in the country SETAs replace and extend the work of the previous industry training boards and are accredited by the South African qualifications Authority[36]. Skills Development Act (1998) provides a framework for the development of skills in the workplace. According Patterson (2008) the public investment initiatives, expanded public works programmes, co-operatives and small enterprises were targeted for developing potential learnerships, in relevant SETAs but not enough has been done as it still falls out of expected expectations as illustrated by fig four. However according to Nedlac(2003) new skills development learnerships framework provided a useful vehicle for addressing employment and skills shortage problems and simultaneously developing much needed skills in our country SETA and Learnerships provided much needed skill across all sectors.
Education and training policies need to fill the growing skills gap.
The lack of employability contributed to lack of education and skills in the South African labour market can be a cause of the alarming rates of unemployment according to McKenzie & Wurzburg’s (1997) employability is the capacity to be productive and to hold rewarding jobs during a working life, and to be equipped with up-to-date skills and competences[37]. According to Altman and Hemson (2007:9) unemployment is serious among the youth more forcefully: about 37% of those aged 15 - 34 were unemployment by the strict definition in 2005 (Labour Force Survey, September 2005)[38].From 1995 the high rate of unemployment has increased according to the 2010 Budget Review (2010:36) employment fell by 870 000 during 2009, raising the jobless rate to 24.3% – the highest level in last five years.[39] However education has been the major objective of the government, it is on track as illustrated by fig four.
Provision to infrastructure and access to basic services According to Development Update, 2003, Vol. 4 No. 1 provision to infrastructure and access to basic services still is a common problem, the starkest manifestation of this is that many thousands of households take care of family members in the terminal stages of AIDS – where chronic diarrhoea, vomiting and loss of bladder control is common – without access to toilets or safe running water[40]. Electricity and water cut-offs have forced many people (mostly women) to revert to fetching wood and water, often from unsafe sources, and to rely on illegal reconnections according to Desai, 2002 in these circumstances, where illegal connections to services are made, debt summonses and eviction notices would have been served, while the state is demonstrating increasingly repressive responses to protests and marches against the impact of its neo-liberal policies, some observers now speak of the ‘criminalisation of the poor’.[41] However the government has made remarkable trends in providing infrastructure and basic services as illustrated by fig five
Local level planning: According to Nedlac 2003 patterns of development in South Africa resulted in black communities, particularly women, workers, youth, people with disabilities and rural people being largely excluded from the benefits of the mainstream of the economy through a general lack of opportunity, limited ownership opportunities, and discrimination in the workplace and through the consequences of apartheid geography and spatial development, which has left a legacy of inequality[42]. Local level planning has been achieved to a considerable extent and its ahead schedule refer Fig Five, an example that can be derived from the Gijima KZN Programme according to Pattersom (2008;21) which is a six-year programme designed to support the provincial Department of Economic Development (DED) of KwaZulu Natal and a broad range of stakeholders to more effectively implement LED to achieve equitable economic growth in the province the programme has managed harness creativity at a local level through a demand-led approach with the centrality of a partnership approach[43]. The programme objectives were to promote pro-poor local economic development, build the capacity of local government in managing LED and increase local competitiveness through the building of partnerships
Local Economic Development The concept of Local Economic Development (LED) is currently attracting considerable attention in government and policy circles in South Africa (Nel and Humphrys, 1999, p. 77)[44].According to Zaaijer and Sara (1993, p. 129), LED is essentially a process in which local governments and/or community based groups manage their existing resources and enter into partnership arrangements with the private sector, or with each-other, to create new jobs and stimulate economic activity in an economic area[45]. Local Economic development by the South African government has been providing financial support, land and building development and information and marketing assistance and training, LED is on track illustration Fig Five. LED finds accord with the post-apartheid government’s pursuit of a neo-liberal economic strategy and a commitment to devolve powers of government to the local level and to support community-based endeavours (ANC,1994; RSA, 1996a, 1996b)[46]. However although they has been remarkable success in the LED as Rogerson (1997, p. 190) notes although the critical importance of developing LED strategies to assist post-apartheid reconstruction is stressed in several government documents a coherent set of guidelines and a framework for LED has yet to emerge[47].
In commenting on the recent Growth and Development Summit, Sampie Terreblanche stated that, ‘the summit failed to establish the root causes of unemployment and that the government attended the indaba without wishing to debate its GEAR macro-economic policy, the free market and globalisation, and restrictive labour policies[48]” (Independent on Sunday, 15 June, 2003) (own emphasis). The GDS was done in a neoliberal policy framework according to Terrablanch[49] although objectives of GEAR were to reduce socio-economic challenges it resulted in the destruction of 1.3 million jobs opportunities which supposed to have been created by the policy by 2001 and more than 1 million jobs were destroyed in the modern sector. Mathekga[50] elucidates the same sentiments that instead of GEAR creating jobs and alleviating poverty the government policy resulted in retrenchments, downsizing and restructuring. The Growth and Development Summit of 2003 has not yet fulfill its objectives and visions as most of it proposed targets and expectations have not yet occurred.
Altman M. and Hemson D.2007 The Role of Expanded Public Works Programmes
in Halving Unemployment
Human Sciences Research Council (HSRC) South Africa
ANC (AFRICAN NATIONAL CONGRESS) (1994) Reconstruction and Development Programme. Johannesburg: ANC.
Barker.F, 2007:The South African Labour Market theory and practice Fifth edition Van Schailk Publishers
Bendix. S, 1996 Industrial Relations in South Africa Third Edition Juta and Co LTD Pretoria
Bhorat, H.2004.Labour Market Challenges in the post-apartheid South Africa .South African Journal of economics .Vol 72:5, December
Budget Review 2010 available on; [accessed on the 8th of March 2010)
Carter, C (1999), ‘Black economic empowerment in South Africa and the implications for US firms’, www hcs4n.html
Claire Patterson (March 2008)Country Report Local Economic Development in South Africa On behalf of the GTZ Strengthening Local Governance Programme’s LED component in South Africa: GTZ South Africa
Davies, C. (1998). Urban¸and management in an informal settlement in East ¸London. Unpublished masters dissertation, Department of Surveying and Mapping, University of Natal, Durban.
Desai, A., 2002, We are the Poors – Community Struggles in Post-Apartheid South Africa, Monthly Review Press, New York.
Haydam. N; 2002; The Principles of Macro economics 2nd edition: Van Schaik: Pretoria
Lalloo, K. (1999). Arenas of contested citizenship: housing policy in South Africa. Habitat International, 23(1), 35}47.
Jacobs, S (2002), ‘About turn: the ANC and economic empowerment’, /indicator/Vol.19No.1/19.1htm
Segal, S (2000), ‘Black empowerment turns the corner’, Financial Mail Top Companies 2000, http:/ / topco2000 / topblack.htm
Terrablanch S 2002: A history of Inequality in South Africa 1652-2002 University of Kwazulu natal press: South Africa
Marie Huchzermeyer (2001) Housing for the poor? Negotiated housing policy in South Africa:Department of Sociology, University of Cape Town, South Africa Habitat International 25(2001) 303}331
McKenzie, P., & Wurzburg, G. (1997). Lifelong learning and employability.The OECD Observer, 209, 13-17. [On-line].Available [2005, June
Mthembi-Mahanyele, S. (1999). Housing delivery in the new millennium. Paper presented by the National Minister of Housing at the Institute for Housing in Southern Africa Conference: `Developing Housing Environments for the New Millennium,a Nelspruit, 17}20 October.
Nel. E. L and.Humphrys.G (1999) Local economic development: policy and practice in south
Africa, Development Southern Africa, 16, pp. 277–289.
Zaaijer, M. and Sara, L. M. (1993) Local economic development as an instrument for urban
poverty alleviation: a case from Lima, Peru, Third World Planning Review, 15, pp. 127–142.
Newspapers/Journals: Business Day (BD), City Press, Johannesburg, Fast Facts (SAIIR), Mail & Guardian, Sowetan, Sunday Independent, Johannesburg, Sunday Times, Johannesburg

[1] Kistern (2006:2) When President Mbeki introduced the “two economies” terminology in 2004 the second economy was described as the space within which those who are marginalised from the first economy operates.
[2] Nedlac (1: 2003) Mbeki sentiments on the need to host the GDS
[3] Altman (2008:11) the objective of the government to halve unemployment by 2014 to 2020
[4] Haydam (2002:146) The effects of socio-economic challenges on the South African economy and the population.
[5] Nedlac (1;2003) the objectives of the GDS in mapping a way forward to eradicate socio-economic challenges.
[6] Ibd
[7] Lewis (2001) Public Investment initiatives have been concerntrated on huge capital intensive sectors marginalizing the local population
[8] Statistics SA (2010:48) Despite the resolutions made in the GDS inequality persist and more socio-economic challenges
[9] Haydam (2002:1999) Unemployment is the root cause for slow economic growth and civil unrest.
[10] Altman and Hemson (2007:5) The bases for the creation of EPWP to create employment.
[11] 2010 Budget Review (2010:39) The EPWP has been important in creation of employment but the question was the employment decent , sustainable and secure.2`1
[12] Altaman and Hemson (2007:7) the advantages of EPWP in eradicating unemployment
[13] Baker (2008:196) Lack of government funding in EPWP due to sustainability in the long term.
[14] Lewis (2002) SMME still face a major challenge of under-development and competition because of the neo-liberal policies
[15] Hope in Action: Co-operatives in South Africa’; A report on the NCASA 2001 Baseline Study, produced by NCASA, in association with the Canadian Co-operative Association, March 2002,; their emphasis.
[16] Nedlac 2003 The major reason for the jobs impact and monitoring in South Africa
[17] Barker (2008:179) The rate of unemployment in increasing and policies are not eradicating the effects of unemployment even the GDS
[18] 2010 Budget Review (2010:36) Increase in unemployment trends can be a reflection to the failure of GDS
[19] 2010 Budget Review (2010:34) Minister of labour sentiments on the stemming raise of retrenchments in the SA labour Market
[20] Nedlac 2003 pension funds and provident funds are crucial to investment
[21] Funded by the Independent Development Trust (IDT) which operated on a government grant, the National Housing Forum was set up in 1992 with the intention of negotiating the future housing policy and framework. Represented were business, development agencies, organised labour and community, and political parties (see Lalloo, 1999, p. 38).
[22] Tripartite Alliance (1994). Every South African citizen has the right to decent housing
[23] Department of Housing, 1994, p. 12 The concept of adequate housing that is suitable for SA citizens
[24] Davies 2010 The mushrooming of illegal settlements is a true reflection of the failure of government to provide decent housing
[25] Mthembi-Mahanyele, 1999, p. 10 The ministry of Housing commitment in providing decent housing.
[26] Huchzermeyer / Habitat International 25 (2001) The problem in the housing sector is lack of accessibility to credit facilities
[27] Mthembi-Mahanyele (1999) The government has the commitment to open credit facilities to housing, however caters to those with income while they is marginalisation of the poor.
[28] Huchzermeyer / Habitat International 25 (2001) The South African Financial Sector is stable and meets world standards
[29] Cater (1999) BEE results in distribution of wealth to the blacks
[30] Jacobs (2002) Black owned business started showing at JSE
[31] Segal, (2000) Sharp decline in BEE ventures due to mismanagement and lack of expertise to sustain firm operations
[32] Sowetan, 9 April 2003). Decline in BEE deals and further decrease
[33] City Press, 11 May 2003 Further decline in black owned businesses dropping in numbers at the JSE
[34] Bhorat (2004:958) The rate of unemployment is increasing in the black population
[35] Terrablanch (2002:381) The ever increasing African labour will result unemployment in 2020
[36] Patterson (2008) The aim SETAs as a government initiative to enhance employment equity that was lacking on the post apartheid era
[37] McKenzie & Wurzburg’s (1997) The definition of employability which is lacking currently on the SA labour market
[38] Altman and Hemson (2007:9) unemployment is serious among the youths as the labour absorption rate is decreasing for new entrants.
[39] 2010 Budget Review (2010:36) unemployment is still a major problem each year the percentage in increasing.
[40] Developmental Update (2003) The problem of access to basic services is still rampant with some people living in households without basic amenities
[41] Desai, 2002, SA citizens have resorted to illegal connections because of the unaffordability of basic serves
[42] Nedlac 2003 LED is on track the South African government is promoting equity and economically emancipate the historically marginalized groups
[43] Pattersom (2008;21) The Gijima KZN programmes demonstrates the government commitment to local level planning
[44] Nel and Humphrys, 1999, p. 77) LED has been incorporated into government policies and strategies bring benefits to SA citizens
[45] Zaaijer and Sara (1993, p. 129) The definition of LED and its benefits to the SA economy to stimulate growth and eradicate socio- economic challenges
[46] ANC,1994; RSA, 1996a, 1996b LED is linked to the government pursuit of neo-liberal policies and paramount in decentralising powers of the government to the local level
[47] Rogerson (1997, p. 190) Policy implementation on LED has been lacking even still after the GDS 2003
[48] Independent on Sunday, 15 June, 2003 GDS left out the discussion of the effects of the neo-liberal policy GEAR of unemployment
[49] Terrablanch (2002:424) The negative impact of the neo-liberal policy GEAR to the labour market and shedding of jobs as technological transfer and global competition spearhead by the policy creates spheres of unemployment.
[50] Mathekga (2009:3) The negative result of GEAR policy was in the alienation of Labour as an important variable in economic growth