Chapter 2

THE ERADICATION OF POVERTY

"As South Africa enters its sixth year of democracy, it is clear that as a nation we are on course towards healing our wounds and defining our social and national emancipation… During the past five years, we have made significant gains towards our goals, and millions have already experienced significant improvement in the quality of their lives as a direct result of the objectives that the Government has been pursuing. These have included a comprehensive policy framework to set South Africa on the road to transformation, the rewriting of our statute book and the rebuilding of machinery of Government to ensure that it is inspired by a new ethos of service to the people…Importantly, it has also included the restructuring of the economic system so that the country develops a modern, internationally competitive economy, one which is less reliant on the export of minerals and raw materials, open to the growth of small and medium-sized business and capable of creating jobs. We also had to begin the process of deracialising the economy, to ensure the equitable participation of black people in all its sectors, including access to land. Social welfare measures have been introduced to address the social needs of the poor and to begin reducing our country's gross race and gender disparities in standards of living"…
(President TM Mbeki,State of the Nation Address, July 1999).

ACHIEVEMENTS

THE MACRO-ECONOMIC FRAMEWORK

South Africa prioritized the development of a legislative and institutional framework, which would ensure the transformation of society and create an environment for appropriate social and economic development. In its first term of office, the democratic Government of South Africa adopted an unprecedented number of progressive policies to meet the needs of its people. The re-prioritization of the national budget supported policies and programs of departments such as Welfare, Health, Water Affairs, Education and Housing. The Government also adopted an economic policy to promote stability. This policy created the conditions necessary to spur and sustain development, eliminate poverty and reduce inequality.

South Africa may be classified as a middle-income developing country with an abundant supply of natural resources; well-developed financial, legal and communication system; a modern infrastructure, and a stock exchange which ranks amongst the ten largest in the world, but the extent of poverty and inequality, amongst its people, shows that income has not been invested equitably in human development. The challenges which the country faces are to create a strong and balanced economy in order to eliminate poverty, develop a dynamic human resource capacity, facilitate the creation of a prosperous southern African region and engage the world economy in a sustainable manner.

In 1996, South Africa announced its macro-economic policy, the Growth, Employment and Redistribution Strategy (GEAR). GEAR is the tool by which South Africa aims to achieve macro-economic stability and is an economic reform program directed towards:

• Creating a competitive and fast-growing economy that generates sufficient jobs for all job-seekers;
• A redistribution of income and opportunities in favour of the poor;
• A society capable of ensuring that health, education and other services are available to all; and
• An environment in which homes are safe and places of work are productive.

GEAR is premised on the understanding that economic growth and the creation of employment are essential for reducing poverty and inequality. It recognizes that economic growth is a necessary condition for employment creation and poverty reduction. The nature of growth, the skills level and the capabilities of the job seeker are important. To date GEAR has proven its effectiveness in facilitating economic stability by improving the overall performance of the economy and in laying the foundation for enhanced investor confidence.

Despite international economic turmoil in 1998, the macro-economic policy helped to stabilize the economy. This allowed progress to be made on the medium-term goals of the Government's macroeconomic strategy, namely:

• A competitive fast-growing economy that creates sufficient jobs for all work seekers
• A redistribution of income and opportunities in favour of the poor
• A society in which sound health, education and other services are available to all
• An environment in which homes are secured and place of work is productive.

The 20/20 Initiative

The World Summit for Social Development encouraged countries to spend at least 20 % of their Gross domestic product (GDP) on social services. South Africa has already embraced this recommendation and is spending 14.8% on basic social services. Add to this the non-contributory social security within the broader definition of the 20/20 concept, we can report that in 1996 South Africa spent more than 22% on social services. The Budget continues to give priority to spending on education, health, welfare and social infrastructure.

Inter-Ministerial Committee on Poverty and Inequality

Given the levels of poverty it inherited from the previous regime, the newly elected democratic Government prioritized the eradication of poverty. Two processes began and were regarded as the basis for all future strategic action. The first entailed the establishment of an Inter-Ministerial Committee on Poverty and Inequality in September 1996, which commissioned research to:

• Provide a detailed analysis of poverty and inequality in South Africa:
• Analyze policies impacting on the implementation of the Government's RDP policy on the reduction of poverty and inequality;
• Analyze the adequacy of strategies to reduce poverty and inequality and possible barriers to their implementation; and
• Propose ongoing monitoring and implementation mechanisms to measure the impact of strategies, policies and programs to reduce poverty

The research findings are captured in the Poverty and Inequality Report (PIR) which was published in June 1998.The PIR has contributed significantly to the understanding of poverty in the country. It is a useful and up-to-date analysis of poverty in South Africa. The PIR highlights that:

• The distribution of income and wealth in South Africa is amongst the most unequal in the world;
• Many households still have unsatisfactory access to clean water, energy, healthcare and education;
• Seventy-two % of the poor live in rural areas and the poverty rate in rural areas is 71%;
• The poverty rate amongst female-headed households is 60% compared with 31% for male-headed households, and female-headed households are more likely to be in rural areas where poverty is concentrated.

The PIR estimates that almost 65% of all South Africans live under the poverty datum line. It also confirmed that 19-million (46%) people remain trapped in poverty, surviving on a household expenditure of R353 per adult per month. Finally, according to the report, poverty is not confined to one racial group but is concentrated among blacks:

Table 6: Poverty classified by race

Source: Progress Report, Welfare 1999.

The second process resulted in what has come to be known as the Poverty Hearings ("Speak Out on Poverty"). As a complement to the PIR process, the Government joined the NGO sector in 1997 to launch the War on Poverty campaign. Subsequently, the NGO sector together with the religious sector and the Human Rights Commission concluded a very successful program called the "Speak Out on Poverty" hearings. The Speak Out on Poverty campaign was conceptualized in order to ensure that the voices of the poor themselves were heard in the fight against poverty. Led by the South African National NGO Coalition (SANGOCO), the campaign consisted of a series of public hearings that took place across South Africa from March to June 1998. 10 000 poor South Africans took part in the hearings. Women mostly attended the hearings, and they were nearly all held in South Africa's rural areas.

The two processes, the PIR and the Speak Out on Poverty hearings, involved both Government and the NGO sector to differing degrees. Although both parties were not always in agreement, the processes were important in generating healthy relationships and a partnership between the Government and the NGO sector. The reports on the Poverty Hearings and the PIR made it possible to formulate informed and strategic interventions and assessments. The following socio-economic indicators reflect the welfare status of the country.

BASE YEAR - 1998/99 WELFARE STATUS INDICATOR INDEX

DEMOGRAPHY: TOTAL POPULATION - 40 583 573
FERTILITY: 3,8 MORTALITY 48,9 (per 1000) MIGRATION 6,4 %
AGE DISTRIBUTION:
Under 15 Years = 34,0 % 15 - 64 Years = 60,0 % Over 64 years = 6,0 %
POPULATION GROWTH RATE: Population increase = 2,4 % Life Expectancy 62,77 years

QUALITY OF LIFE INDICES:
Availability of basic services in housing (indicated in percentages)

EDUCATION LEVELS - AGED 20 YEARS OR MORE
No schooling - 4 066 187, Some Primary - 3 512 415, Complete Primary - 1 571 774
Some Secondary - 7 130 121, St. 10/Grade - 12 3 458 434, Higher - 1 294 720.

HEALTH CARE:
Nutritional Status - % of stunted children = 25.7 %
Number of people qualified for food aid - 28.5% (1994).
Aids (Reported cases) - 8405
Access to medical services:
Whites - 78 % Asians - 29% Coloureds - 26% Blacks - 15%
50 % of the population

POVERTY GAP INDEX
HUMAN DEVELOPMENT INDEX SA AVERAGE = 0,677
SOCIO-ECONOMIC INDICATORS:
Cross Domestic Product - R482 974 million (1996) CSS
Unemployment rates - African 42,5% Coloured 20,9% Indian 12,2% White 4,6%

Source: Stats South Africa 1996

Overview of the Poverty Relief Program

Government has set aside R1 billion of the 1999 budget for targeted poverty relief programs, given affect to commitments it made at the Presidential Jobs Summit in 1998. This amount increased to R1,2 billion in 2000 and will increase to R1,5 billion in 2000. R3 billion of the Budget is directly linked to job creation programs and development projects managed by non-governmental organisations. This amount included government spending on municipal infrastructure programs, rural water supply and sanitation, work for water program, community based public works projects, income generation training for unemployed and welfare programs. As a conditional grant for poverty relief the Ministry of Finance awarded the Department of Welfare R50m in the Financial Year (FY) 1997/98. This allocation was disbursed to 1133 community-based projects. While there were some successes, there was also concern with the lack of systems and poor accountability measures and sustainability of projects. The process of evaluating the poverty relief program for Financial Year 1998/99 R203m is currently in progress.

Table 7: The Provincial Population Size and Poverty Rates

Source: Intergovernmental Fiscal Review 1999

At the Job Summit, the department of Labour initiated to pledge one day's wages to a special fund for job creation. Business sector contributed R1 billion for this purpose. From April 2000 the proposed introduction of a skills development levy of 0.5% on pay roll, increasing to 1% in 2001 is expected to yield an estimated R1 billion for traing and development in 2000, raising to R2 billion in 2001. 80% of this will go to education an training authorities nominated by employers, while 20% will go to a National Skills Fund (Hossak, WOZA (1999).

SAFETY NETS

The Constitution of South Africa (Section 27(1)) states that all the citizens are entitled to social security and if they are unable to provide for themselves and their dependents, to appreciate social assistance. The safety nets that the social security system provides for the poor are unique in a developing country. South Africa has chosen an advanced non-contributory social security system, which includes the following types of grants: old-age grants, disability grants, war veterans grant, grant-in-aid, state maintenance grant, foster care grant, care dependency grant and child-support grants. Social Security comprises of four components, namely: social assistance, social insurance, social relief and savings.

The Department of Welfare is currently administering the social assistance program (the non-contributory social benefits program) to the most vulnerable members of our society. The most vulnerable members of our society are the aged, persons with disabilities and children. Whilst the social assistance is not aimed at meeting the total needs of individuals, it is a means to enable the most basic needs to be met. The scope of reaching of the vulnerable members of the society is very good. It is 70% for the aged, 50% for persons with disabilities and 15% with the target of 30% for children. Social security reaches 5 million beneficieries yearly.

In response to the need to readily have access to welfare information as expressed by welfare stakeholders, and the decision by the Departmental Committee on Developmental Social Services (DCDSS) and the Departmental Audit Committee to prioritize information and information management, the Department of Welfare is planning to develop an Information Management Strategy. This is meant to facilitate the provision of real time management information obtained from computerized information systems in collaboration with all welfare stakeholders.

Social Security Expenditure 1999/2000

Source: Welfare Annual Report 1999)

Source: Welfare Annual Report (1999)

GENDER

In South Africa, inequality is seen as infallible linked to the question of poverty. Distribution of income in South Africa is one of the most unequal in the world. The richest 20 percent of households have 65 percent of all income, while the poorest 20 percent have only 3 percent and the poorest 10 percent as little as one percent. With high levels of unemployment among women, insecure land rights, and often dependence on men, they are particularly vulnerable to poverty. The following table quantifies women’s higher risk of poverty.

Table 9: Women’s higher risk of poverty

Source: May et al (1995 in Baden et al 1997)

Important strides have been made in transforming the conditions for participation in political, social and economic change in South Africa. A exciting increase in women’s national representation in formal politics has occurred since 1994. Many women have their roots in political activism or the trade union movement and retain strong links with civil society. Their extended presence has translated into increased influence of senior women in Government, has allowed women politicians to promote women’s interests through new legislation and has also led to some changes in parliamentary culture, to accommodate their needs.

Table 10: Percentage of women representatives in national Parliament

Source: Baden et al (1997)

The legal framework for gender equality and the framing of a new gender-sensitive human rights culture have been put in place and are reflected in the Constitution and stated commitment to the principles of equality and to CEDAW. Legislative reforms such as discriminatory legislation is being removed and efforts are being made to ensure that new legislation proposed is in line with gender equality commitments. However, patriarchal forms of authority are deeply embedded in social and cultural life so that upholding these rights in practice is a major challenge, requiring mobilisation of women’s organisations and support from their representatives in parliament and Government. In particular, the balance between customary rights and the equality clause will be difficult to achieve and will be determined by finding a middle course between the demands of traditional leaders and those of women ( Baden et al (1997).

It is clear that in South Africa, gender inequality cannot be understood without reference to other axes of inequality (e.g. race, location, age, etc). Gender equality has emerged as a legitimate focus of policy and programs in South Africa’s post apartheid Government. While policy development skills are highly developed in South Africa, policy management and programs design and implementation capacity is less strong, particularly at lower levels of the administration and in non-Government organisations. Many current Government programs clearly have major potential benefits for low income women, although there is a danger of benefits being skewed towards high income groups, or men in implementation. Specifically, public works programs, water and sanitation provision, free women-specific reproductive health services and the Department of Welfare program aimed at unemployed women with children under five, have the potential to bring, immediate and direct benefits to poor women (Baden et al (1997). The extent to which women have benefited from existing programs is hard to monitor and existing evaluations do not routinely provide this information, although some mechanisms are now developing (Budlender in Baden et al 1997). In general, social sector services have undergone shifts in policy, resource allocation and restructuring which, broadly speaking, are fawn to women. Recent legislative changes in the area of social welfare address the complexity of social relations surrounding child rearing where nuclear families are not the norm and household arrangements are fragmented and diverse (Baden et al (1997).

POPULATION AND DEVELOPMENT

In accordance with its mandate, the National Population Unit, in partnership with key departments and institutions in the private sector, has formulated a series of detailed project plans aimed at addressing the identified priorities in a purposeful manner during the next operational year. These priorities are linked to the Ten Point Plan of Action of social welfare that the Minister for Welfare, Population and Development adopted in December 1999 after engaging in a national consultative process with a wide range of stakeholders in the social welfare and population and development fields.

During the past year, close collaboration has been established with the United Nations Population Fund (UNFPA) and other international donor agencies, which provide technical and financial support to Government institutions in order to enhance their policy-making and planning capacity in the field of population and development. This assistance is critical in order to facilitate the implementation of the Population Policy at national and provincial levels.

Table 11: Profile of Human Development – South Africa

Source: SADC Regional Human Development Report 1998

Advocacy

On a national, level liaison with and capacity building of the media to report on population and development, formed the basis of informing the public about population and development concerns. An international media workshop was conducted in collaboration with the UNFPA and Media Communications. Ten South African journalists formed part of the group of thirty participants from Africa countries.

The State of the World Population Report was launched during September 1999 at a media conference and raised interest regarding the same report being developed for South Africa.

The Year of Six Billion was commemorated with a seminar and exhibition for parliamentarians at Parliament. The Portfolio Committee for Welfare and Population Development hosted the event in collaboration with the NPU.

Five Years after the International Conference on Population and Development

The year 1999 marked five years since the international community, including South Africa, collectively developed and agreed to implement the program of action of the Cairo International Conference on Population and Development (ICPD-PA). The ICPD-PA formed the basis for the ethos and the thrusts of South Africa's Population Policy. South Africa participated at the following high-level meetings since the beginning of 1999:

• The International Forum for the Operational Review and Appraisal of the Implementation of the ICPD-PA, held at The Hague from 8-12 February 1999
• The ICPD+5 Preparatory Committee (PrepCom) for the Special Session of the UN General Assembly, New York - 24 March to 01 April 1999
• The 21st Special Session of the UN General Assembly, held at the UN headquarters from 1 -3 July 1999

International Conference: Population into the 21st Century

At the Third African Population Conference held in Durban in December 1999, the National Population Unit managed to facilitate the promotion of collaboration on population issues on the continent in a manner that defined South Africa's role in population and development in Africa more accurately. More than 700 participants attended the conference. Follow-up activities from the conference for South Africa include:

• Southern African workshops on population issues of common interest such as HIV/AIDS and migration;
• Training on population and development, including the establishment of new centers and the strengthening of existing ones;
• International research collaboration
• Establishment of a national population and development information and community facility, by using web based technologies

Teenagers' Knowledge and Perceptions of Teenage Pregnancy

The Population Policy for South Africa mandates the National Population Unit (NPU) to engage in adolescent reproductive health and rights. The Policy promotes the view that youth should be helped to control their own lives. In a study it was found that prevailing social norms and values direct adolescents' decisions about sexuality and fertility. These norms and values are embedded in a large number of social, economic, cultural, psychological, interpersonal and developmental factors that have been found to influence reproductive health. It is essential that programs and plans to address reproductive health needs of adolescents be based on sound information that includes adolescents' comprehension of the subject. Thus, assessing their level of knowledge with respect to reproductive health is an important step in enhancing and increasing their reproductive health and rights.

Strategic preparations for implementing the Population Policy for South Africa culminated in a national stakeholder workshop in November 1999, where negotiations were based on the strategic focus areas outlined according to priority population concerns contained in the Population Policy. These focus areas will be addressed during 2000 - 2003 and include the following:

1. The impact of HIV infections and AIDS mortality on the population structure
2. Fertility, and unplanned, unwanted and high-risk pregnancies (including teenage pregnancies) in the context of poverty and lack of access to resources.
3. The social, economic and environmental causes and consequences of internal and international migration in South and Southern Africa The social, economic and environmental causes and consequences.

Table 12: Population by Province

Source: Stats SA – 1996 census

WELFARE

The first five years of democratic governance has laid the foundation to respond to the social welfare crisis facing our country. The Department has put in place legislative and policy frameworks that are in keeping with the principles of the Reconstruction and Development Program and the constitutional mandate. However, much more needs to be done to create a caring society. To be responsive in this way means that the Department of Welfare has to mobilise the communities to establish a caring society, based on the principles of people first and sustainable development. The Department is guided by the Batho Pele (people first) approach in creating a collective vision and strategy to respond to the social crisis, and in transforming social welfare.

The mobilization for a caring society began with the National Consultative Process in October 1999. For six days the Minister for Welfare engaged in a dialogue with a range of organizations representing women, children, people with disabilities, the homeless, poor people, development workers, and professional associations.

The verbal presentations and written inputs made during this national consultative process confirmed the analysis that the welfare system is not responding to the fundamental social crisis South Africa is facing. Given this situation, the Minister identified the following welfare priorities that will be addressed over the next five years:

• Restore the ethics of care and human development into all our programs. This requires the urgent rebuilding of family, community and social relations in order to promote social integration.

• Design an integrated poverty eradication strategy that provides direct benefits to those who are in greatest need, especially women, youth and children in rural areas and informal settlements. This will take place within a sustainable development approach
• Develop a comprehensive social security system that builds on the existing contributory and non-contributory schemes and prioritizes the most vulnerable households.

• Respond to the brutal effects of all forms of violence against women and children as well as effective strategies to deal with the perpetrators

• Services to support the community-based care and assistance for people living with HIV/AIDS. Particular attention will be given to orphans and children affected by HIV / AIDS.

• A national strategy will be developed to reduce youth criminality and youth unemployment within the framework of the National Crime Prevention Strategy.

• Social welfare services accessible and available to people in rural, peri-urban and informal settlements, and ensure equity in service provision.

• Redesign services to people with disabilities in ways that promote their human rights and economic development.

• Co-operative governance that includes working with different spheres of Government and civil society. The Department will work in partnership with communities, organizations and institutions in civil society.
• Train, educate, re-deploy and employ a new category of workers in social development to respond to the realities of South Africa's crisis. This includes the re-orientation of social service workers to meet the development challenges of South Africa and link these to our regional and global demands.

These welfare priorities form part of a systematic, co-ordinated strategy for social development over the next 5 years. It will be linked to the department's medium term expenditure framework. In addition the plan will involve the mobilization of national and international resources, including the use of a wider pool of technical expertise. Particular focus areas will be the Integrated Rural Development Strategy, the National Plan of Action for Children, and the work of the Office on the Status of People with Disabilities and the Office on the Status of Women.

Child Care Legislation

The Minister for Welfare, Population and Development together with the Minster for Justice requested the South African Law Commission to appoint a Project Committee to Review the Child Care Act. The aim is to draft comprehensive childcare legislation that should be compatible with the provisions of the South African Constitution, the UN Convention on the Rights of the Child and the African Charter on the Rights and Welfare of the Child. The Department of Welfare is the principal of the Child Care Act 74 of 1983 and is represented on the Project Committee.

National Plan of Action (NPA)

The development of a protocol document on child protection was finalised and launched in provinces during 1999. Active participation is taking place amongst role-players on an inter-sectoral basis and in each province a provincial child protection committee has been established. Training took place in all provinces to equip various disciplines on the effective management of child abuse. Each year the Office on the Status of the Child at the Presidency is responsible for a National Children's Day involving families, national Departments, NGOs, provincial departments and CBOs participated in the event.

Transformation of Child and Youth Care System

Sectoral Budget Support to the amount of R11 7million was received from the Netherlands Government for the 1998/99 financial year. This was to ensure the integration of the work of the Interministerial Committee(IMC), currently referred to as the Transformation of the Child and Youth Care System (TCYCS) into the line functions of the relevant national and provincial departments. A plan of action in this regard is currently drafted.

The outputs of the initiatives started by the IMC are:

• Four of the original pilot projects have been translated into learning sites and will function as such until the end of March 2000. The projects have developed practice models and guidelines, functioned as best practice models and provided training and support to other make a difference projects.

• The idea of 'seed' money to an NGO, department or residential care facility as a once off amount to facilitate the TCYCS through new initiatives was well received and 11 projects received funding.

The training and capacity building program included the following:

• Training in family preservation, professional foster care, diversion of young people from the criminal justice system
• Life skills/creative skills, development assessment, family group conferencing and
• Transformation principles
• Secure care training i.e., Basic Qualification Secure Care for personnel of the Kroonstad and Bonnytoun Centers

In the field of child and youth care 25 people received training in 'Transformational Leadership' and 'Developmental Supervision', both of which were conducted by the School for Child and Youth Care, University of Victoria, Canada. Training and capacity building of officials within the Western Cape Department of Education reinforced the transformation process initiated at the said department.

In January 1999 the Developmental Quality Assurance (DQA) program was introduced as an official joint program of the Inter-Ministerial Committee on Young People at Risk and the national and provincial Departments of Welfare. The DQA was to be piloted within residential care facilities for a 12-month period in at least 6 provinces, so as to test:

• A developmental approach by combining a monitoring tool with a capacity building process
• A team approach combining both Government and non-Government personnel

DQA's have been completed at 30 residential care facilities in Gauteng, Western cape, Eastern Cape and Kwa-Zulu Natal so far.

Project Go

This national and provincial inter-sectoral project aims to unblock the residential child and youth care system, to assess each and every child entering the criminal justice system and to prevent the movement of children deeper into the system. According to statistics for January-December 1999, the project impacted on the lives of 18,063 children as follows:

• 6 645 completed reviews
• 5 864 children and young people diverted out of the criminal justice system by way of a range diversion programs, offered by NGOs, CBOs as well as provincial and local Department of Welfare practitioners
• 1 230 children and young people awaiting trial moved out of correctional facilities
• 364 diversions via family preservation
• 806 children prevented from going deeper into the system
• 2 292 children at level 3 & 4 returned to their families
• 862 children were moved out of places of safety

The Cabinet moratorium on the movement of children deeper into the system expired at the end of November 1999. The project now has to be institutionalized in provinces, however negotiations are underway to find out whether there is a need for an interim mechanism for coordination purposes.

Transformation of Probation Services

The Probation Services Amendment Bill has not served before Cabinet as anticipated. A further round of consultations was held with 80 probation officers from all 9 provinces during the Western Cape Provincial Training Workshop in November 1999. The department is hopeful that the Amendment Bill will become an Act during 2000. Probation officers and assistant probation officers have continued to receive training and re-training on:

• Developmental assessment
• Developmental Quality Assurance (DQA)
• Victim empowerment
• Integrated justice system
• Crime prevention
• Youth development
• Family group conferencing

An Assistant Probation officers project was set up in the Western Cape and Northern Province. The Degree in Probation Practice1 is gaining significant momentum and has attracted many practicing professionals. Exploratory discussions were held with Rand Afrikaans University and the University of Port Elizabeth regarding initiating a Degree in Probation Practice as from the 2000 academic year.

A number of provinces held provincial probation workshops where valuable inputs for the national department were given. The Probation Advocacy Group, a provincial consultative mechanism, met once during the past year to consider issues relating to:

• The Child Justice Bill
• The new institutional arrangements within the Social Services Professions Council and the future role of Probation Services
• The One Stop Early Intervention Services planning process Provincial progress reports from probation practitioners and assistant probation officers.

HOUSING, ELECTRICITY AND TELECOMMUNICATION

The White Paper on Housing (1994 heralded a new era in hosing development in South Africa. It presented a vision of a nation housed in sustainable human settlements, and aimed to establish a process that provides equitable access to adequate housing for all.

The key program in the White Paper is the Housing subsidy Scheme. Targeting households earning less than R3 5000 per month, the Housing Subsidy Scheme provides a conditional capital grant (R16 000) in the form of project-linked, individual or institutional housing subsidies. Since 1995, the Housing subsidy scheme has facilitated the construction of just over one million new homes, providing beneficiary households with security of tenure, and access to shelter, sanitation, water, roads, and other services (such as electricity and telecommunications). In addition, there is evidence that the housing programme has provided more than shelter. Houses provide people with the space and services they need to start small businesses, some households sub-let rooms in their new homes to generate an income, and the economic spin-offs of large scale housing construction in secondary markets such as furniture and appliances are obvious.

Housing policy is constantly refined by taking account of lessons learnt during the implementation of the program, and by reassessing peoples' needs. For example, a rural housing subsidy has been developed in relation to informal land rights, and social and rental housing are receiving greater emphasis.

South Africa , which supplies two-thirds of Africa's electricity, is one of the four cheapest electricity producers in the world. The utility Eskom, which is a public corporation, supplies 95% of electricity in the country. It also operates the integrated national high-voltage transmission system and supplies directly to large consumers such as mines, mineral beneficiators and large industries. In addition, it supplies directly to commercial farmers and, through the National Electrification Program (NEP), to a large number of residential consumers. The Government regards accelerated and sustainable electrification program as being of the utmost importance. Communities have to be involved in the planning and execution of this program. Micro, small and medium-sized enterprises must be given support and shown preference in the tendering process. At present only about 60 % of South African households have electricity, and the NEP aims to raise the percentage to 72% in 2000.

South Africa has approximately 5,3 million installed telephones and 4,3 million installed exchange lines. This represents 39 % of the total lines installed in Africa. By January 1998, more than 21 000 community telephones have already been installed and over 620 villages in previously under-served rural areas connected. Telkom intends rolling out 2,81 million new telephone lines over a five-year period which commenced in May 1997, and converting the network to a digital platform by 2000.(South Africa Yearbook (1997)).

EDUCATION

Human development achievements in South Africa are impressive – and disappointing

The Constitution's Bill of Rights states that everyone has the right to basic education, and that the state has the duty to take reasonable measures to make further education progressively available and accessible. Given this constitutional basis, the fundamental structure and orientation of the education system has been transformed.

The South African Schools Act of 1996 created a national school system for the first time in the country's history. It recognizes two categories of school, public and independent, and provides for the governance and funding of the system at provincial level according to national norms and standards which came into effect in January 2000. The national school funding norms will ensure that provincial funds are allocated to schools according to criteria of poverty and need, in order to help redress the effects of the apartheid funding system, which resourced schools on the basis of the legally entrenched racial hierarchy.

The Government prohibited racial divisions in education and opened all education institutions to all persons without discrimination. The previous apartheid departments of education were phased out and replaced by a unitary, non-racial national system with nine provincial sub-systems. The previous racial fragmentation in all sectors of the education system has been overcome through building inclusive and consultative governance structures for early childhood development, adult education, school education, further education and training and higher education.

School attendance is made compulsory from the year in which a child turns seven until the end of the year in which the child turns 15, or the ninth grade. As resources permit, compulsory attendance will be extended to grade R (the reception year, for children aged five turning six). A new school admission and age-grade norm policy came into effect in January 2000, to ensure a uniform age of admission to grade I and eliminate the practice of over-age and under-age enrolment, with the associated abuses of excessive grade repetition by learners. Excessive repetition and dropout by learners is also being tackled through a new policy on school assessment, and a major program, supported by private investment in the Business Trust, and partnership with a leading NGO, to target improved reading skills in the early grades.

The curricula in schools, adult and further education is being progressively transformed through the substitution of new learning programs based on the approach of outcomes-based education (OBE), under the brand name of Curriculum 2005. The new national curriculum and teaching methodology requires active participation by the learner, and places strong emphasis on group learning and self-assessment, with the teacher acting as facilitator and guide. A complete overhaul of the national system of learning assessment and examination is underway, to make it more supportive of the learning process and more able to function as a vehicle for quality promotion and enhancement.

President Mandela launched the Culture of Learning, Teaching and Service Campaign (COLTS) in 1997. It is an attempt to improve social attitudes to education, in the light of the serious effects of apartheid and the resistance campaign against the previous regime. The program promotes school governance structures; encourages improved school attendance by teachers and learners; and promotes greater stakeholder involvement in education. New national policies and norms for early childhood development, and for learners with special educational needs, have been under intensive development for several years, and will be brought to the Cabinet for approval in White Paper form during 2000.

Adult learning is being thoroughly transformed, both in the public sector and the workplace, through expanded curricula and qualifications linked to the National Qualifications Framework (NQF). A multi-year implementation plan is in operation, which is expanding the number of public adult education learning centers. It focuses on life, social and entrepreneurial skills, all of which will contribute towards the empowerment of individuals of both genders. The national policy for adult learning will be presented as a white paper to Cabinet in 2000, accompanied by a Bill to provide the first national legislative framework for this sub-sector. As a part of the national mobilization campaign reported below, a new National Literacy Agency will be established. It will function in association with the Ministry of Education, and draw particularly on non-Government sources of finance and voluntary teaching and organizational support from the community.

Likewise, the Further Education and Training (FET) system is undergoing progressive transformation, to enable learners to access post-compulsory education and training in a variety of settings linked to social and economic needs and opportunities. The Further Education and Training Act was passed in 1998. The private sector, through the Business Trust, is investing heavily in the re-orientation and re-equipping of the inherited technical college system, in partnership with the education departments, as part of the implementation program for FET.

With the election of the second democratic Government in June 1999, the progress of education transformation was subjected to thorough scrutiny, in the light of the new Government's commitment to faster and more effective service delivery. The result of this review process has been to endorse the soundness of the new policy and legislative framework laid down by the first democratic Government, but to recognize the major shortcomings in the performance of the education and training system. In particular, the system still exhibits rampant inequality, teacher morale is low, there have been serious failures of governance and management, and the overall quality of learning is unacceptably poor. The HIV/AIDS epidemic is impacting severely on learners and teachers. Communities living in poverty bear the brunt of these ills.

As a result of these and other transformation processes in education, South Africa can report that several of the goals and targets set by the UN are within reach. These pertain to providing access to basic education; closing the gender gap by 2005; attaining universal primary education by 2015 and reducing the adult illiteracy rate. However, school and cultural practices present barriers to an increase in the number of girl matriculants in subjects and courses like science, mathematics, engineering, woodwork and technical drawing. The National Qualifications Framework's (NQF) eight learning areas with their accompanying guidelines are designed to address social and cultural patterns that lead to discrimination and stereotyped roles for women and men. In addition, 1999 - the Year of Science and Technology - focused on the achievements of women in science and technology as part of the advocacy campaign to encourage the participation of women. Empowerment of women through education is a key concept for the Government.

The state of human development in South Africa indicates that poverty, inequality and social exclusion need urgent attention

The development of the country's human resources strategy, which includes increasing access to education and training at all levels for the poor and historically disadvantaged has been a priority for Government. This is evident both in the high level of Government expenditure on education and training and in several innovative developments emanating from the departments responsible for human resources development. Examples of these developments are recent initiatives such as the National Qualifications Framework (NQF), Skills Development, Curriculum 2005, the Further Education and Training White Paper and Act and the Higher Education Act. In the 1998/99 financial year, approximately R46, 3 billion, representing 22,4 % of the total state expenditure and over 6 % of the Gross Domestic Product (GDP), was spent on education.

The White Paper on Public Service Training and Education (WPPSTE), 1997, is aimed at increasing the skills levels in the public service. This policy document is integrated with the Constitution, the RDP, GEAR, the White Paper on the Transformation of the Public Service (WPTPS) and the Green Paper on Skills Development Strategy for Economic and Employment in South Africa. In order to accelerate training and development, through the Department of Public Service and Administration, the Government reached an agreement with the European Union (EU) for the commitment of R92-million for public service capacity-building and senior management training.

FOOD SECURITY

The lack of food security characterizes the daily lives of the poor. South Africa recognizes the indivisibility of human rights, and that food security is a fundamental right. Hence, the South African Human Rights Commission hosted an International Consultative Conference in March 1999, to advance South Africa's commitments to the World Food Summit. The Department of Agriculture in collaboration with Food and Agriculture Organisation (FAO) is implementing the International Declaration on Food Security and a number of innovative programs that have led to income generation and capacity building programs have been initiated.

The South African Government through the Department of Health has been implementing an Integrated Nutrition Program with an annual conditional grant of R582 million. An important component of the Integrated Nutrition Program is the Primary School Nutrition Program. The Primary School Nutrition Program has the following objectives:

• The prevention of hunger for primary school learners;
• The creation of employment opportunities, especially for mothers, to secure an income for their families in the preparation and handling of food;
• The reation of opportunities for the unemployed and the poor to create a steady income for themselves by producing food for sale to schools;

HEALTH

Many inequities still exist in the provision of healthcare services in the country. The major goal of transformation in the healthcare system is to develop a comprehensive and integrated national health system, which provides accessible healthcare services to all South Africans. The following are some of the activities that have been undertaken:

• The development of the District Health System, which is the vehicle for the delivery of primary healthcare services in the country;
• The development of a Primary Health Care (PHC) package for service to be available at each level of PHC;
• The clinic-building program to ensure adequate access to health services in under-served areas. During 1997, 204 new clinics were built; 264 new and existing clinics had residential units added to them; 38 clinics were upgraded; and 53 mobile clinics were bought;
• A project for the training of advanced midwives; and
• A project for the training of primary health cares nurses.

South Africa has well developed high technology hospitals in the main cities, but underdeveloped basic health services, especially in the former rural homelands. As a consequence, essential health care is deficient for the poorer two thirds of the population. To rectify this situation, national health policy affords first priority to the development of the district health system, which comprises integrated PHC and district hospital services. The goal is to provide for an increase in the average number of public PHC consultations per person from a low baseline of 1,8 in 1992/93 to 2,8 by the end of the century and to 3,5 over the following five years (Table 13). Priority will be given to the most under-served areas and the intention is to bring the provision of PHC services for the poorer two thirds of the population up to the level of that for the better off one third by the year 2000.

Table 13: Expected increases in use of public primary health care services

¹Derived from McIntyre, D. et al., Health Expenditure and Finance in South Africa, Health Systems Trust and World Bank, Durban, 1995, Tables 2.5 and 7.4.

To work towards the goal of providing essential health care for all South Africans within 10 years, the FFC projected real growth in District Health Services spending (Table 14).

Table14: Financial and Fiscal Commission projection of allocations to the district health system by province (1996 rand - millions)

Source: Financial and Fiscal Commission's Recommendations for the Allocation of Financial Resources to the National and Provincial Governments for the 1997198 Financial Year, May 1996.

Many rural and urban informal settlements have limited access to medical doctors within the public system. To overcome this problem, a system of community service was introduced. In this system newly qualified doctors will be required to work in the public service for a period of one year before they are allowed to take up independent practice. In this way the skills of young professionals, trained at public expense, will become available to the most disadvantaged communities.

Another strategy to ensure the availability of doctors in rural and under-served areas is the foreign doctor program. The employment of foreign doctors from Cuba, the European Union and the United Nations Volunteer Program under Government-to-Government agreements addresses one of the Government's immediate priorities in the provision of adequate health services in the most needy areas of the country.

WATER

According to the Constitution of South Africa, (Act 108 of 1996), it is every person's right to have access to clean water. However, more than 12 million people are still without access to adequate water supplies. Between 1994 and 1999, some 3,5 million South Africans gained access to basic water services. This involved more than 1020 projects. The Department of Water Affairs and Forestry's Community Water-supply and Sanitation Program was initiated in 1994 to achieve the constitutional objective of ensuring that all South Africans have access to sufficient water and a healthy living environment, with the focus on rural areas. New projects are identified at local level and prioritized by the provincial planning forums in which provincial and local Governments are active participants.

Table 15: Access of households to safe water and sanitation

Source: Stats SA –1996 Census

PUBLIC WORKS

The Department of Public Works' Community Based Public Works Program has created more than 1110 projects, mostly situated in and providing employment opportunities to communities in the most impoverished areas. The program is now changing its focus towards creating assets that will lead to more sustainable job creation and reduction of poverty.

TRANSPORT

The Department of Transport has a Rural Road Program, through which the Department uses Poverty Alleviation Funds for projects aimed at upgrading rural roads. They are thus providing an immediate response to the infrastructure needs of rural communities. Accessibility criteria linked to other rural development initiatives, such as access to clinics and schools, local economic potential, etc. have been used to identify roads for upgrade. The use of the National Road Agency, in association with Provincial Departments of Transport has allowed for a speedy response to the use of these funds and a focus on labour intensive construction practices as a means of bolstering the economy and skills of local communities.

The Department of Transport has embarked on the development of a Rural Transport Strategy. This strategy will be used as a basis for rural transport interventions by the national and provincial transport departments. The strategy will deal with the full range of rural transport needs, from non-motorized transport and footpaths to commuter transport to commercial farming requirements and roads. The needs of the rural population, and particularly, the poorest households will be ascertained through household surveys. The rural strategy will provide guidelines on how to prioritize expenditure on rural transport operations and infrastructure for both economic and social purposes. The emphasis of the rural transport strategy is to:

• Develop specific responses to a broad range of rural areas and a complex array of transport needs, and
• Maximize the integrated nature of rural development by aligning transport actions with the actions of other sectors.

DISASTER RELIEF

South Africa recognizes that the poorest and particularly those in rural areas are most vulnerable to any disaster and have the least capacity to absorb the resultant shock and impact. The Cabinet approved the formation of the Interministerial Committee for Disaster Management in mid-1997. Consequently, a White Paper on Disaster Management was launched in 1999 to provide adequate economic and social protection during periods of vulnerability. In addition, an existing Disaster Relief/Social Relief Fund provides non-contributory and means-tested assistance to individuals and communities in crisis.

SOCIAL DEVELOPMENT PROJECTS

A total number of 1 371 043 people received services through community or social development projects. Western Cape clients (1 107 449) benefited the most in community projects in the country. 90 % of all developmental projects are rendered by the NGO sector.

Table 16: Social Development and Community Work Projects: Government (Number of people participated in projects).

*All 0 information is not available.

Source: Welfare Annual Report 1999

Unequal access to welfare services between provinces is clearly reflected in widely diverging per capita expenditure levels. Eradication of these inequalities will require reprioritisation within welfare budgets and also within provincial budgets. The welfare policy is to reprioritise expenditure towards, developmental services away from passive income support. This challenge is formidable given cost pressures on grants, and innovative solutions will need to be sought.

Table 17: Availability of basic services in housing (indicated in %)

Source: Stats South Africa(1996)

PUBLIC-PRIVATE PARTNERSHIPS

To contribute to the building of effective public-private partnerships, several new laws have been passed by Cabinet in the past few years. The challenge in the past year for the Department has been to set the administrative systems in place to successfully implement the Not for Profit Organisations Act, Act No 71 of 1997. To date a total of 5871 organizations have been registered in terms of the NPO Act. In terms of prescribed procedure, a model constitution has been developed and is issued on request to organizations applying for registration.

A draft model code of good practice and guidelines for reporting has been published for comment and will be finalized in the first quarter of the next financial year. A capacity building program has been established to improve the ability of public servants and individuals from the NPO sector, to guide and inform NPO's (at as local a level as possible) on the NPO Act.

Table 18: Social Development and Community Work Projects: NGOs and CBOs

*All 0 information is not available.

Source: Welfare Annual Report 1999

Success can only be achieved by building effective partnerships

ACCESS TO CREDIT

Another area of progress in eradicating poverty is the move to improve the general economic standing of the poor. The poor are regarded as a high-risk group by mainstream financial institutions and are thus denied access to credit. This is further compounded by their inadequate technical and managerial skills. South Africa has thus created a number of institutions, which grant loans and credit guarantees to small economic initiatives through retail financial intermediaries, business counseling and training, skills training programs and other necessary services. Ntsika Enterprise Promotion Agency provides non-financial support and its implementing agency Khula Enterprise Ltd. provides access to finance. The Small Business Development Corporation (SBDC), one of several parastatals, also provides loans and equity investment to small business initiatives. These institutions have become vehicles for the poor to access economic opportunities with the necessary support to successfully achieve production and sales targets.

To meet the needs of a large number of poor individuals, groups and communities who form the Department of Welfare's target group; the Department has initiated a micro-lending program or social development fund. The "Microsave Program" is regarded as one of the vehicles for targeting households facing extreme vulnerability and poverty; and is currently piloted in four provinces in partnership with the UNDP and ILO. Whilst this Program is a survivalist household income-augmentation program aimed at providing access to emergency and consumption credit, it is intended to be a modest first step towards releasing people's creative energies.

The announcement by the Minister of Finance in 1996 of R500m and a further R800m in 1997 to be utilized for special Poverty Relief and Infrastructure Investment Programs indicated Government's commitment to fast-tracking poverty relief and eradication in South Africa. Since then, a total of R3.7 billion has been made available for the financial years 2000-2002. This is over and above the normal budget allocations of the service departments.

While the impact assessment of the Poverty Relief funds is in progress, it can be stated with confidence that it has enabled the Government to create a model of empowerment and service delivery in rural and urban areas, which is unparalleled in the country's history. A number of models of community-level planning and participation; capacity building and empowerment; inter-sector cooperation; and labour-intensive public works programs are in place. Some models of micro-enterprises with poor people as beneficiaries have been successfully established. Accordingly, the Infrastructure and Investment funds were utilized to:

• Provide for infrastructure in poor areas;
• Apply successful models of micro-enterprises for poor people as beneficiaries to facilitate human development and capacity-building;
• Provide jobs and ensure community development;
• Impact on rural areas, especially those where the poorest rural populations live;
• Provide credit loan opportunities to low-income earners; and
• Establish projects, which will enhance food security and markets for the distribution of products.

The promotion of local economic development (LED) and poverty alleviation by local Government were key areas on which the Department of Constitutional Development focused during 1998. The Department launched two publications on LED and poverty alleviation: Case studies on Poverty and Linking Local Economic Development to Poverty Alleviation. A final report on a study aimed at identifying the regulatory and legislative constraints related to LED is expected to follow soon.

Small businesses in South Africa absorb almost half the people formally employed in the private sector and contribute about 37% to the country's GDP. There are an estimated 3 million micro-enterprises in the country (1999 SA Annual Report). The White Paper on the National Strategy for the Development and Promotion of Small Business in South Africa was published in March 1995. In 1997 the Department of Trade and Industry reviewed the constraints and legislation affecting small business in South Africa. The National Small Business Act, Act 102 of 1996) aimed at establishing a supportive environment for small business development. The main pillars of support are the Center for Small Business Promotion, the State-owned Ntsika Enterprise Promotion Agency and Khula Enterprise Ltd. The National Empowerment Fund formally launched in May 1998, aims to raise more than R4 billion over the next few years for the promotion and growth of small and medium-sized businesses.

HIV/AIDS

Undoubtedly, the most daunting of all national challenges facing South Africa and the SADC region is the HIV/AIDS epidemic. Government and civil society at large have, through various programs and strategies, expressed commitment to the mitigation of the enormous impact this disease is already having on society, especially on children. The urgency to progress more rapidly has been expressed by all stakeholders.

According to the HIV/AIDS & Human Development Report (1998:60) the state of HIV epidemic in South Africa poses a multi-dimensional challenge to society at large. Current indications reflect one of the fastest growing increases in the numbers of people infected in the world. "The evidence on the state of the epidemic indicates that:

• The epidemic cannot be contained within geographic boundaries;
• South Africa’s legacy of apartheid and inequalities are contributory factors to the rapid rate at which HIV is spreading;
• While the most socially and economically vulnerable are the hardest hit by the disease, young black women are facing the greatest risk;
• A lack of access to care and adequate infra-structural services exacerbates the situation;
• High maternal-infant HIV transmission associated with breastfeeding is cause for concern;
• Certain types of work place people at greater risk without providing necessary safeguards;
• HIV and AIDS is more than a health problem, it affects every aspect of people’s lives but its path can also be changed within a human development framework"

Table 19: Progression of HIV infection by province

Source HIV/AIDS & Human Development, South Africa 1998

Table 20: HIV Sero-prevalence in voluntary blood donors by race and gender

Source: HIV/Aids & Human Development, South Africa 1998

Poverty and HIV/AIDS are two of the most devastating pandemics ever to hit Southern Africa. The relationship between HIV/AIDS and poverty can no longer be disputed. South Africa is currently experiencing one of the most rapidly progressing HIV/AIDS epidemics in the world.This means that the poor will be hardest hit with HIV/AIDS and its consequences. Statistics indicate that the state of poverty will be exarcebated by the epidemic. For example, it is estimated that by the year 2010, South Africa will have over 700 000 orphans. It is also estimated that nationally, 22.8% of women attending antenatal clinics of the public health facilities in 1998 were HIV positive compared to 17% in 1997.This represents a 33.8% national increase in the prevalence level of HIV infection since 1997 Projections of the path of the epidemic suggest that the overall prevalence of HIV will reach almost 25% in the general population by 2010. By that year, life expectancy is expected to fall from the 68.2 years anticipated in the absence of the AIDS epidemic to 48.0 years.This has devastating implications both for the social structure of households and for their quality of life.

HIV/AIDS and human development – a daunting challenge and a message of hope

While commitment is seen at all levels of society, the HIV/AIDS epidemic requires an ever increasing concerted effort to meet the challenges it presents to infected and affected individuals, to employment and industry, social welfare, health services, families and the entire social fabric of South African society.

Table 21: National HIV Prevalence By Age Group

Source: HIV/Aids & Human Development, South Africa 1998

Source HIV/Aids & Human Development, South Africa 1998

HIV/AIDS has been identified as a national concern and priority that requires the concerted and collaborative efforts of all stakeholders. "The Partnership Against Aids" campaign was launched in 1998 by Government. Similarly, the "Aids Council" was set up in January 2000. These initiatives are both driven from the Office of the Deputy President, and are intended to mobilise the nation in the fight against HIV/AIDS. In addition to the initiatives mentioned above the following achievements have been recorded in the fight against HIV/AIDS:

• An amount of R450 million over a period of three years has been made available for the fight against HIV/AIDS to the following departments: Health, Welfare and Education. The funds are earmarked for life skills and the care of people infected with HIV/AIDS;
• The training of over 10 000 secondary school teachers and the launch of the life skills programs across the country;
• The initiation of the "Beyond Awareness" campaign which, in effect, is a call to action and which seeks to link infected and affected persons with appropriate resources;
• Training in advocacy skills to enhance leadership support for HIV/AIDS programs;
• The initiation of lay counselors and mentoring programs in all provinces to strengthen counseling services;
• The establishment of an inter - ministerial and inter - departmental committee to generate a united Government response to the HIV/AIDS epidemic and financial and technical support to national Government departments to initiate work-place programs.

Table 22: HIV by province and age

Source: HIV/Aids & Human Development Report 1998

With regards to the youth it is important to note that in 1994 the level of HIV infection amongst pregnant adolescents younger than 20 years was 6,47% rising to 12,7% in 1997 and 21,0% in 1998, an increase of 65% in the last year.

At present, it is estimated that 5% of the child population in South Africa is affected by HIV/AIDS and it is projected that this figure will increase to 16%. In 1997 survey estimated that here are presently 100 000 orphans in KwaZulu-Natal. If the current trends persist this could rise to 250 000 within the next few years. It is estimated that in 2005 there will be nearly one million children under the age of 15 who have lost their mother to AIDS.

In response to this situation, the Department of Welfare in co-operation with the Departments of Health and Education developed a integrated comprehensive plan. The proposed plan will focus on the introduction of life skills programs in schools, developing strategies to care for orphans and to develop community-based models of care for people living with HIV, the strengthening of current efforts to make available voluntary testing and counseling facilities and the development of a public campaign and very specific research. And effort will also be made to elicit a more concerted effort from business (National Integrated Plan for Children infected and affected by HIV/AIDS(2000).

The overriding message of the HIV/AIDS & Human Development Report (1998) "is one of hope – hope that the further rapid spread of HIV and AIDS can be contained. Hope that with clear commitment and leadership from the highest levels of Government, South Africa can win the fight against the epidemic." President Thabo Mbeki launched the new Partnership Against HIV/AIDS on 9 October 1998 with the hope that all sectors of society will be enabled to join hands with the 3 million persons who are already infected and the millions of others who are directly affected, in their struggle for acceptance, and fulfilling lives in the face of adversity, stigma and silence. The history of South Africa demonstrates that social mobilization; partnership and solidarity can achieve miracles in the face of overwhelming odds. All three will be required to defeat this insidious new threat (Whaley, 1998)

Contents   |    Chapter 1   |   Chapter 2    |   Chapter 3   |   Chapter 4   |    Chapter 5   |   Chapter 6   |    Chapter 7   |   Appendix