This research report investigated the effects of a poverty alleviation project, the Cala bakery, on the community members of the Sakhisizwe Municipality in the Eastern Cape. This chapter provides a background to the study and also provides an introduction to the research report by discussing the relevance and problem statement, the research questions, sample and setting, research design and methodology and finally considers the ethical implications of the investigation. May 1997 described South Africa as being a developing nation with the majority of households in poverty, and having unequal distribution of income and wealth. Due to this, the democratic government of 1994 had adopted pro poor policy that focused on social services which its budget increases every year. Within this realm, poverty alleviation projects remained an important component of the government‟s challenge of tackling poverty (May, 1997). After almost 16 years of democracy in South Africa, poverty and unemployment remained a major challenge facing government in provision of basic services (Shasha, 2004). South Africa continued to be characterised by a large scale of unemployment and poverty in the formal sector of the economy in both rural and urban areas (Shasha & Liesle, 2004).Although there was poverty throughout South Africa, poverty was distributed unevenly among the nine provinces of the country. The Eastern Cape, Limpopo and Free State provinces have the highest poverty rates especially among the rural areas (DOS, 2009). The only people who survived poverty in the South African country were people that were well to do, people that could be able to make economic gains. Those people who were unemployed found themselves in debt, as it had been identified that a majority of homes and people do not save. This was due to being a country depending on social welfare services which resulted to disserving of people and to unsustainable levels of household debts. These debts were usually based on social, economic and psychological problems (Shasha & Liesle, 2004). In response, the South African government introduced community based projects whose operation was limited to a particular neighbourhood, and were run and managed by the local members of a community. The white paper for social welfare 1997 had encouraged the establishment of income generating projects which were run and managed by the group of community members who were predominantly unemployed people. The Department of Social Development (DOS, 2004) had further emphasised that these people had to include unemployed youth and that the project beneficiaries would not come from the same household to ensure that the initiative was touching a number of households within the community(DOS, 2004). Furthermore, these government intervention programmes aimed to reduce unemployment and poverty in South Africa by encouraging people to reduce poverty by themselves (Shasha, 2004). An example of one of these programmes was the Cala Development Project. The Cala community‟s youth had a business idea of producing baked products for the community and the surrounding areas. The purpose was to bring people together in order to reduce poverty and unemployment, specifically targeting young people who were household heads. The project has 8 beneficiaries that were committed to working together in this project, with the aim of producing baked foods.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:nmmu/vital:8829 |
| Creators | Dingiswayo, Nomkhitha Mfuskazi |
| Publisher | Nelson Mandela Metropolitan University, Faculty of Business and Economic Sciences |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Thesis, Masters, MA |
| Format | 53 pages, pdf |
| Rights | Nelson Mandela Metropolitan University |
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