M.A. (Development Studies) / Please refer to full text to view abstract

The Elective Conference of the African National Congress (ANC) of 2007 that took place in Polokwane remains an important event since 1994 (Fikeni 2009). The economic policy of the ANC and candidature of Mbeki and Zuma for the presidency contributed to the growing of factionalism in the ruling party that culminated in the 2007 conference. The study investigates and analyses the development of factions and ideological contestations that seemed to punctuate the ANC towards its 2007 National Congress that took place in Polokwane. It examines the roots and causes of factionalism in the ANC with a specific focus on the Nelson Mandela Bay Municipality (NMBM). It also investigates the extent to which the conservative policies such as Growth, Employment and Redistribution (GEAR) contributed in the divisions and factionalism prior the 2007 polokwane conference. The study departs from the premise that history of the ANC is riddled with factionalism and ideological contestations that have been well documented. Furthermore, the political infighting within the ANC impacts on governance structures and the local government level. The study seeks to demonstrate the effects of the 2007 power contestations between Zuma and Mbeki on the NMBM. To this effect, the study demonstrates how the leadership contestations in the ruling party impacted on the service delivery in the city. For the purposes of analyzing and making sense of the nature of power plays within the ANC it draws from the theories of factionalism to illustrate that the link between the growing of factionalism and the one party dominant system.

Poverty is one of the social problems plaguing South Africa. In South Africa it is required of municipalities as entities in the socio-economic and political transformation process and agents of change, to eradicate poverty and unemployment by facilitating local economic development in their respective areas. Local economic development has to be implemented in a way that takes cognisance of the different challenges that exist within various areas and contexts. Various district and local municipalities have initiated an array of agricultural programs such as community or food gardens as aspect of their Local Economic Development strategies. In this study I investigated the sustainability of community gardens as a mechanism to poverty alleviation in the Nelson Mandela Bay Municipality. The study focused exclusively on community gardens in Bloemendal, KwaZakhele, Motherwell and Walmer. A mixed methods research approach was employed to gather data from the community garden members and municipal official who administers the community gardens. Semi-structured interview was conducted with the municipal official administering community gardens in Nelson Mandela Bay. A structured questionnaire was used to gather data from the community garden members. Observations were made on types of crops grown in the gardens, in order to supplement and validate data collected and information gathered during interviews. Community garden members identified funding as their main challenge. Community gardens have a potential to be sustainable if the requisite support structures that need to exist to support the micro-farmers are in place.

The aim of this research was to provide a preliminary investigation of how the HIV and AIDS epidemic will impact on management of municipalities, specifically George Municipality. Municipalities provide a large proportion of essential basic services and also represent one of the primary opportunities for public participation and decision-making at a community level. This paper takes George Municipality in the Western Cape as a case study of the current and potential impact of HIV and AIDS on public demand for services and on the municipality's capacity to govern and provide services. It also reviews the responses of the municipality to HIV and AIDS.The research was conducted using a questionnaire which was distributed to municipal officials in the different departments but also included a review of relevant literature and analysis of quantitative data. The study focused on a single case: An investigation into the impact of HIV and AIDS on municipal management of George Municipality. The study identified strategies utilised by the municipality to reduce the impact of HIV and AIDS. The study drew on people's experiences, perceptions and interpretations of the impact of HIV and AIDS on municipal management, responses and any other related factors that may have impeded the realisation of the reduction of the impact of HIV and AIDS on municipal management in the George Municipality.Fifty questionnaires were distributed, 40 copies by hand delivery and ten copies via e-mail to employees ranging from general worker to senior management. Employees participated in the study through interviews and answering of the questionnaires. An internet search was also conducted using Wed Crawler and by visiting the official website of the George Municipality for all policies, minutes, reports and all other relevant documents regarding HIV and AIDS. The researcher also drew on personal observations because she has been in George for almost six years and is also employed by George Municipality. Participants who were selected by the researcher for interviews purposes were five councillors and five ward committee members because councillors are decision makers in the municipality. The rest were given questionnaires to complete. Data was analysed by using interpretation analysis, namely codes to explain data collected. Results were presented in the form of tables and conclusions warranted by the data are presented. Statistical analysis was done to check correlation between the different aspects in the questionnaire. According to the research findings it can be confirmed that more of the budget needs to be allocated for employment of suitably qualified persons like occupational nurses, who will drive HIV and AIDS education and awareness campaigns. HIV and AIDS mainstreaming should be regarded as a priority in order make people aware about the realities of HIV and AIDS in communities. Leadership and management buy-in should be obtained to win the fight against the epidemic. A comprehensive strategy should be compiled and implemented to reduce the spread and stigma of HIV and AIDS. Proper planning should be done for compiling the strategy. This strategy should specify the budget for HIV and AIDS and how HIV and AIDS is going to be integrated into an IDP. Prevention and management strategies used by the organisation should be explained.

The South African wine industry faces unique challenges in the socio-economic development of its farm labourers due to its historical context and development over the past three centuries. A long history of malpractice, a lasting paternalistic mentality, and only partial compliance to regulations to reduce inequality and improve livelihoods for farm labourers hinders the success of industry-wide transformation. Despite studies regarding the current state of living and working conditions in the wine industry and types of socio-economic development needed for successful transformation, little research has been done to address whether these initiatives are creating a lasting impact on the well-being of labourers. Research on current intervention strategies aimed at empowering labourers must take into account the origin of wine in the Cape region, the legacy of Apartheid, and the current state of socio-economic inequality amongst wine industry workers. The purpose of this research is to provide a better understanding of how and to what degree initiatives and programmes designed for socio-economic development are actually making an impact within the industry. The central research question asks: “to what extent has socio-economic development initiatives aimed at the transformation of wine farm labourers influenced perceptions of well-being?” This research combines both document analysis and qualitative comparative case study methods in assessing the impact these initiatives have had on labourers’ perceptions and attitudes towards personal development and a better standard of living. At the end of the study, the researcher wants to know how the labourers perceive socio-economic initiatives; do they actually believe themselves has having gained increased levels of respect, dignity, and equality, and have these perceptions been impacted by current socio-economic initiatives?.

There is a growing consensus globally about the significance of developing local and regional economies in order to create sustainable livelihood for local communities. The policy discourse in South Africa and elsewhere as well as the immense body of literature on local economic development bears testimony to this reality (Nel 1994,Tomlinson 1994, Rogerson 2003, World Bank 2002). The Constitution of the Republic of South Africa (Act 108 of 1996) and the Local Government: Municipal Systems Act (Act 36 of 2000) enshrine the role of municipalities in enhancing the economic growth and development, and harnessing the social wellbeing of the communities ‘through creation of employment opportunities and redistribution of resources’. Importantly, this legislative framework must be accompanied by, on the one hand proper structures and political will, and on the other hand provision of resources and institutional capacity for realization of the long term objectives of Local Economic Development (LED). In order to be successfully mainstreamed and implemented the LED must be embodied within the legally prescribed Integrated Development Plans. In addition, the LED strategy must be incorporated within the Provincial Growth and Development Strategies (PGDS). In this research an exploration of the Local Economic Development Programme on the Blue Crane Route Municipality with specific reference to Cookhouse was investigated. The primary aim of this study was to establish the views of the residents regarding their perceptions of the LED and its effects in terms of addressing current poverty related problems and their view on the proposed wind farm project, to investigate the proposed implementation process of LED project, specifically at Cookhouse. The second objective of this research was to present empirical data from both a questionnaire completed by 18 respondents and two interviews, that helps amplify and verify the impact of LED at BCRM. The question answered was whether the proposed wind farm will make an impact on the lives of the ordinary people at Cookhouse. The final objective of this research to identify the shortcomings in the LED development process in the BCRM and to make recommendations on feasible actions that could be employed to alleviate poverty. The findings of the research suggest that the proposed project should be evaluated taking the themes of social, environmental and economic aspects of sustainable development into account. Also the findings of the research have noted that community members are not aware of what opportunities this project will bring to the community of Cookhouse. It should be noted that when this project was identified, the community was never consulted and now it’s very difficult at this stage to reject the project since there employment opportunities. Therefore local authorities are constitutionally obliged create space for community participation, which warrants accessibility and availability of information to local communities to enable to participate effectively.

This study examines the impact of exchange rate volatility and misalignment on economic growth in South Africa. It applies the Johansen co integration test and the vector error correction model on quarterly data for the period 1990:01-2010:04. Exchange rate volatility is measured as the standard deviation of both the nominal and nominal effective exchange rate. The study constructs three measures of exchange rate misalignment, with two of the measures constructed using the Producer Price Index and Consumer Price index based Purchasing Power Parity. The third measure was based on the difference between the nominal and effective exchange rate. Contrary to pre-dominant findings in the exchange rate literature, the study finds a positive and significant relationship between exchange rate volatility and economic growth and attributes it to composition of the country’s exports that are largely made up of commodities that act as essential inputs in many production processes. As a result, the variability of prices caused by exchange rate volatility is not expected to deter demand for these commodities. A negative and significant relationship between exchange rate misalignment and economic growth was found. The findings of the study show that it is important for monetary authorities to ensure that the exchange rate is always at an appropriate level in order to avoid the negative implications of exchange rate misalignment on economic growth.

The main focus of this thesis is the challenges that are facing social policy development and implementation in South Africa in relation to the enhancement of human capability. The study adopted a historical approach to assess the model of social policy in South Africa and identified that social relations of domination inherited from the apartheid era continuing to produce inequalities in opportunities. Social policy under the democratic government has not managed to address social inequalities and the main drivers of poverty in the form of income poverty, asset poverty and capability poverty which are the underlying factors reproducing deprivation and destitution of the majority of the population Although South Africa prides itself of a stable democracy, social inequalities continue to undermine the benefits of social citizenship because political participation in the midst of unequal access to economic and social resources undermine the value of citizenship. Also, inequalities in the distribution of income and wealth, and in the control of economic production undermine political equality which is an ethic upon which social rights are predicated. As a result, state interventions are lacking inherent potential to build human capability for people to live the life that they have reason to value. The paradox of social policy in South Africa is that the majority of those who are marginalised are those who were excluded by the apartheid regime even though state intervention is claimed to be targeting them. This points to the failure of incremental equalisation of opportunities within a context of stark social inequities. It is also an indication that the economic growth path delivered by the political transition is working to reinforce the inherited legacy of deprivation and it is avoiding questions related to the structural nature of poverty and inequalities. Therefore, a transformative social policy is an imperative for South Africa. Such a framework of social policy should be premised upon a notion of human security in order to built human capability. Human security focuses on the security of individuals and communities to strengthen human development. It emphasises on civil, political and socioeconomic rights for individual citizens to participate fully in the process of governance. Although this thesis is a case study of social policy in South Africa, it can be used to appreciate the role of social policy in other developing countries, particularly the impact of political decision making on social distribution. Poverty and social inequalities are growing problems in developing countries and so is the importance of putting these problems under the spotlight for political attention.

The government of South Africa has seen many financial reforms in the finance industry since the attainment of freedom in 1994. Many microfinance institutions (MFIs) have emerged in the name of poverty reduction, however the impact of MFIs on poverty reduction in rural areas has not been significantly high. Poverty has been reduced but still the inequality gap has even widened (HSRC, 2004). The study is concerned with analysing the impact of MFIs in poverty reduction among the rural poor. Empirical evidence from many developing nations around the world has shown that microfinance is a tool that is relevant in reducing poverty within rural areas. This study investigates the impact of microfinance institutions on household income levels, education and business skills. The study followed a qualitative approach in terms of the research methodology and a survey research design. Data was collected using questionnaires, scheduled interviews, focus group discussions and key informants. Two sample techniques were used for the selection of the MFIs and the household respondents, that is purposive sampling and cluster sampling. In total, 150 households, 15 MFIs and five key informants were interviewed. Descriptive analysis methods were employed and the study showed that only 10 percent of the total households have been able to access microfinance. The number of people who gained business skills was also low (10 percent). The MFIs who provide financial services excluding the other services like business training programmes were 80 percent of the total number of MFIs interviewed. This data showed that only a few (20 percent) MFIs are willing to go an extra mile rendering business skills to their clients. Overally the major finding of the study was that although, MFIs are reaching out to the rural communities, their levels of outreach is still very low within the rural areas. However this does not mean that the impact of MFIs funding is not felt among the rural poor. The levels of income and educational benefits have been increased and felt by the 10 percent of the rural poor clients. This study advocates for an entrepreneurship development pathway to poverty reduction. Microfinance should be used as a source of finance to initiate entrepreneurial activities among the poor in order to generate income. In this study, the use of microfinance finance for consumption by the poor is discouraged because it depletes the funds that can be channeled for selfhelp projects within the rural communities. The study findings motivated the recommendations that encourage an inclusive financial system that is capable of reaching out to the rural poor.

The main objective of this study is to examine the long run relationship between stock market development and economic growth in the case of South Africa. The study used quarterly data covering the period from 1990Q1 to 2010Q4. To empirically test the link between the two variables, the study used the Johnson’s cointegration approach and Granger causality so as to test the direction of the relationship. The Vector Error Correction Model was also employed to capture both short run and long run dynamics. Generally, the results reveal that a long run relationship exists between the two variables and the causality flows from economic growth to stock market development. Also, the extent to which of stock market development impacts on growth is statistically weak.