Pro-poor interventions for LED

1
Pro-poor interventions for LED

• The case for sectoral targeting
• Chris Rogerson - 19 November 2002

2
Paper structure

• Overview of key debates and trends
  internationally
• Pro-poor LED in South Africa
• Pro-poor LED The case of Johannesburg -
  selective targeting
• The case of urban agriculture
• The case of the clothing industry
• The case of Tourism

3
Overview

• Apparent convergence - LED interventions
• Four leading edges
• competitiveness of localities,
• growth through property-led city improvements
• job creation from the inside - business
  retention and SMME support
• Community development support - community
  enterprises or cooperatives

4
Overview

• Divergence
• Anti-poverty measures are rarely the central
  focus of LED in the developed world
• Poverty alleviation is higher on the agenda in
  the developing world

5
Overview

• Spectrum of LED interventions - market led
  (pro-growth) to market critical (pro-poor)
• Market led - adjusting to macro-economic reforms
• Market critical - bottom up approach aimed at
  self reliance, empowerment, participation, local
  cooperation and environmental sustainability

6
Pro-poor LED in Cities

• Municipalities well placed to undertake long-term
  planning in poverty alleviation
• Regulatory frameworks (laws and regulations
  related to town planning, public health, building
  and land development)
• Access to municipal services
• Employment creation (attracting new investment,
  support for informal economy, labour-based public
  employment)

7
LED in South Africa

• Characterised by three waves
• Pro-growth, market led (late 80s and early 90s)
• Augmented by focus on business retention and
  local business support
• First two waves led at the local level
• Pro-poor focus as DPLG has taken the lead mandate
  for LED policy formation

8
Emerging policy

• LED linked to developmental local government
• Attempts to balance competitiveness with poverty
  alleviation and job creation
• Focus on state-society relations
• New and reformed inter-government relations
• Includes both market-led and market critical
  aspects
• Anchored on service delivery and supporting
  subsidies

9
The case of Johannesburg

• Refers to 2030 document - and in particular the
  endorsement of targeted or selected sectoral
  interventions as a methodology
• Analysis of sectors attractiveness and
  competitiveness (GGP, employment growth and
  multiplier effects)
• In Jhb, high skill and knowledge based services
  sectors emerge as the most competitive and
  attractive using this criteria

10
The case of Johannesburg

• Argues the case for a similar methodology with a
  focus on poverty alleviation
• The selection methodology for a targeted pro-poor
  LED might focus instead on the relative
  attractiveness of sectors in terms of measures of
  labour intensity or skill levels and the degree
  to which sectors provide substantial livelihood
  opportunities for the most vulnerable or core
  groups of the urban poor

11
Urban agriculture

• Rationale
• food security
• easy in, easy out entrepreneurship (income)
• gender opportunities (and other vulnerable gps)
• community focus - inclusive
• public health spin-offs

12
Urban agriculture

• Midrand case-study
• Ivory park
• Food security
• Goes beyond survivalist activities - part of a
  strategy to be an eco-city
• Could become more formalised - Organic market
• Absence of a coordinated set of policy
  interventions cause for concern

13
Clothing industry

• Not prioritised in terms of current methodology
• Decline in the sector driven by
• high wages
• apartheid legislation
• low productivity
• focus on low-end of the clothing market
• resistance to change

14
Clothing industry

• Largest industrial sector in the inner city
• Growth in informal manufacturing (largely Black
  owned)
• Majority of these entrepreneurs are women
• Sector enjoys little support - although some
  support from Johannesburg Development Agency
• Would benefit from selective targeting approach

15
Pro-poor tourism

• 3 broad areas
• MICE (Meetings, Incentives, Conferences,
  Exhibitions)
• Regional retail tourism
• Cultural tourism

16
Pro-poor tourism

• Labour intensive
• Provides opportunities across various skills
  levels
• Can provide low-skill opportunities with
  appropriate training
• Spin-offs via affirmative procurement,
  outsourcing, subcontracting

17
Conclusion

• The key argument proposed in this analysis is
  that sectoral targeting can be deployed usefully
  to support the crystallisation of pro-poor urban
  LED interventions