PRESENTATION TO THE PORTFOLIO COMMITTEE ON

RURAL DEVELOPMENT AND LAND REFORM

The Implications for Rural Development and Land Reform Policies arising from the Industrial Policy Action Plan, the New Growth Path and the Draft

National Development Plan

13 June 2012

M514 Marks Building

10h00

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OUTLINE OF THE PRESENTATION

1) AN ABSTRACT

2) THE BACKGROUND AND HIGH LEVEL OBJECTIVES OF THE IPAP2, NGP and DNDP

3) CORRELATIONS: IPAP 2; NGP and DNDP

4) RELEVANT ACTIONS FOR RURAL DEVELOPMENT AND LAND REFORM POLICIES

5) NASCENT INDICATIONS OF CONVERGENCE1) An Overview2) Detail

6) DETAIL ON RELEVANT ACTIONS OF THE IPAP2; NGP and DNDP.

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ABSTRACTThe Department of Rural Development and Land Reform (DRDLR) policies and policy reviews suggest a convergence with the objectives and actions of the Industrial Policy Action Plan (IPAP 2), the New Growth Path and the Draft National development Plan.

Central to the convergence are the:

1)Policy reviews that commenced with the 2005 Land Summit.

2)Comprehensive Rural Development Strategy (CRDP) adopted by Cabinet in August 2009.

3)The Land Reform Green Paper (LRGP)process,

It should be noted however, that the green paper deliberations are:a) but deliberations, that

b) the Minister is yet to consider and provide guidance on amendments and how to proceed.

c) It is only then that he would be able to take them to Cabinet.

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BACKGROUND

The Objectives of the IPAP2; NGP and DNDP

THE IPAP : 2007

BACKGROUND OBJECTIVES

The background to IPAP 2 is that:i. In August 2007 Cabinet adopted the

National Industrial Policy Framework (NIPF) which set out governments broad approach to industrialization.

ii. The NIPF implementation action plan was set out in the Industrial Policy Action Plan (IPAP).

iii. The IPAP was revised annually, however, in 2009 it was decided to make it a 3 year rolling period updated annually, but with a 10 year outlook.

iv. IPAP 2 was adopted in 2010v. A further iteration has been updated for

2012.

The high level Objectives of the NIPF were:I.To facilitate diversification beyond the current reliance on traditional economies and non-tradable services.II.Ensure long term intensification of South Africa's industrialization process and movement towards a knowledge economy.III.To promote a more labour absorbing industrial path with emphasis on labour intensive goods and services, with economic linkages that generate employmentIV.Promote industrialization characterized by increased participation by the historically disadvantaged people and marginalized regions, andV.Contribute towards industrial development in Africa

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BACKGROUND

The Objectives of the IPAP2; NGP and DNDP

THE NGP : 2010BACKGROUND OBJECTIVES

The background to NGP is that:i. The new growth path came from the

newly created Economic Development Department

ii. It sought to address the non-inclusiveness of the South African economy, growing unemployment and poverty.

iii. It also built on the objectives of the NIPF but went beyond in placing employment targets and detailing sectors and products for high value and inclusive growth,

iv. It engaged with other key regional and enabling sectors such as rural development, economic competiveness, education and conditions of works and protection of vulnerable workers.

The high level objectives are to:i.Restructure the South African Economy and improve its performance towards creating decent work, reducing inequality and defeating poverty.ii.Identifying areas where employment creation is possible at large scale.iii.Develop a policy package that can facilitate employment creation through.

a. A comprehensive drive to enhance both social equity and competitiveness.

b. Mobilization of domestic investment around activities that can create sustainable employment.

c. Social dialogue to encourage stakeholders to focus efforts on employment creation activities,

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BACKGROUND

The Objectives of the IPAP2; NGP and DNDPTHE DNDP: 2011

BACKGROUND OBJECTIVES

The background to DNDP is that:

i. It was developed by the National Planning Commission established in the Presidency.

ii. It sought to consult and research around a 20 year development plan for South Africa.

iii. In 2010 it released a diagnostic report, which amongst others identified 9 key challenges.

iv. The draft plan was released for consultations in November 2011.

v. Consultations closed in March 2012vi. A revised draft is awaited, although a number of

areas suggested have started being planned for by government such as elements and sites for infrastructure

vii. Development announced by the 2012 Sate of the Nation Address.

The high level Objectives of the DNDP were to:i.Realizing rapid and inclusive economic growth.ii.Addressing unemployment, poverty and inequality. iii.Lowering costs for both households and business.iv.Increasing public infrastructure spending.v.Growing South African agricultural and mineral sector.vi.Raising mining output.vii.Improving the functioning of the labour marketviii.Raising competitiveness and exports

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THE CORRELATION OF THE IPAP, NGP & DNDP

The outline of objectives of the IPAP2, NGP and DNDP suggests a common thread of ensuring inclusive economic growth to address the three challenges of unemployment, poverty and inequality.

1) The IPAP2, NGP and DNDP were developed between 2007 and 2011 as government policy and consequently they fed into each and are correlated in collective their continuity and thrust.

2) The 2012 iteration of the IPAP states that it “... is framed by and constitutes a key pillar of the NGP”.

3) The DNDP states that it builds upon the NGP in its economy and employment chapter, but over a longer period.

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RELEVANT ACTIONS FOR RURAL DEVELOPMENT AND LAND REFORM COMBINED

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DNDP

1. Steering the economy towards a more value adding and labour intensive growth path.a. Agro enterprise.b. Tourismc. Green Economyd. Mining

2. Phased and inclusive economic growth. 3. Promoting small business4. Investing in social capital5. Achieving full employment decent work and sustainable livelihoods. 6. Investing in infrastructure .7. Building a low carbon economy8. Rural development as a key intervention.9. Optimizing on international trade opportunities.10. Improving Human Development and Human Settlements.11. Building a capable state.12. Promoting accountability and fighting corruption.13. Transforming society and uniting South Africa.

NASCENT INDICATIONS OF CONVERGENCE

An OverviewAs indicated, indicators of convergence between rural development

and land reform policies are illustrated in:1) The Comprehensive Rural Development Programme (CRDP).

2) Lessons and observations from the CRDP method and implementation

3) The matters being addressed through the Land Reform Green Paper deliberations.

Important to note is that:1) The indications are based on matters arising from CRDP implementation and the

transformation of the DRDLR.

2) The CRDP itself is 33 months old since its launch in 2012.

3) There are actions needed to strengthen the basis to scale up and mainstream these positive indications.

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NASCENT INDICATIONS OF CONVERGENCE

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RELEVANT ACTION/S

INDICATIONS OF CONVERGENCE

1. Steering the economy towards a more value adding and labour intensive growth path.

i. Rural development and land reform is premised on an agrarian reform strategy to change relations of rural households to land. Livestock, cropping and community.a. All CRDP site interventions are based on structured community engagements .b. Poverty alleviation and income generation opportunities are created from

development implementation, from household profiling, creation of community food gardens, to social and economic infrastructure refurbishment and/or construction.

ii. The new Recapitalization and Development programme has been able to capitalize 640 of the 1807 pre-2009 land reform projects and place them back into production.

iii. Indications of coordinated agro-enterprise development is emerging with area wide product focus such as poultry in Gauteng and Mpumalanga; Goats in Gauteng and North West; Grain in Mpumalanga and Free State, Sugar cane in Mpumalanga and Kwazulu Natal and the Red Meat industry initiative in Kwazulu Natal and Free State.

iv. The DNDP has identified 18 agricultural products that are high value and labour intensive that need to be responded to and engaged.

v. Sectors opportunities such as mining social labour plans, the rural tourism strategy and opportunities for green economy need tighter engagement. There is one sugar beat project in the Eastern Cape that is an experiment with bio-fuels.

NASCENT INDICATIONS OF CONVERGENCE

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RELEVANT ACTION/S

INDICATIONS OF CONVERGENCE

2. Phased and inclusive economic growth that promotes small business

i. In the case of the CRDP projects a phased approach is used, starting with phase 1 that focuses on the creation of jobs through the project planning and development process and on poverty alleviation.

ii. As indicated 640 pre-2009 projects that were under distress have been put back into production,

iii. An additional 882,238 hectares' were delivered between May 2009 and March 2012 involving 848 projects.

iv. For business development support a system of mentors and strategic partners has been put in place to promote and support productive discipline.

v. Policies for acquisition of strategic land and improve on beneficiary selection are being deliberated upon in the land reform green paper process.

vi. Broader strategies to increase land availability onto the market are also being deliberated upon.

vii. The 18 high value and labour intensive agricultural products identified by the DNDP will provide further enterprise development opportunities.

viii. A Spatial planning and land use management Bill aims, amongst others for an integrated and spatially targeted approach to land use determination and, amongst others, agro-enterprise development.

NASCENT INDICATIONS OF CONVERGENCE

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RELEVANT ACTION/S

INDICATIONS OF CONVERGENCE

3. Achieving full employment decent work and sustainable livelihoods.

i. The NGP and the DNDP have targeted 445 000 jobs in agriculture value chain and improvement of the conditions for around 600 000 farm workers by 2020.

ii. The DNDP targets 1 million Jobs by 2030.iii. To effectively address and quantify this target structured collaboration will be needed

with other relevant departments, the trade union movement and organized agriculture.iv. The creation of viable alternatives such as smart villages, agri-villages and long term

area wide development initiatives will go a long way towards small business development and industry collaborations and value chain access that will ultimately provide alternative or supplementary income streams that are an decent and as such competitive.

v. These integrated rural settlements will also be sites that enable service delivery and sustainable livelihoods.

vi. The support environment and facilitation of development of beneficiary institutions will not only provide certainty for risky agro-enterprise undertakings by beneficiaries but also allow them to be champions of their own destiny.

vii. The comprehensive rural development strategy suggests that the green paper on rural development will provide for such support instruments.

viii. Communal property association policies and legislation are under review as the FES.ix. There is work underway in the department facilitate agreement on the norms and

standards for service delivery in rural areas which is fit for context and purpose.

NASCENT INDICATIONS OF CONVERGENCE

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RELEVANT ACTION/S

INDICATIONS OF CONVERGENCE

4. Investing in Infrastructure

i. As indicated, there is work underway in the DRDLR to facilitate agreement with sector departments for norms and standards for service infrastructure and delivery in rural areas.

ii. Meanwhile the department has refined its policies through capitalization and development to allow for infrastructure development support.

iii. The Rural Infrastructure Development Programme of the department is currently developing infrastructure projects in CRDP sites that are making a real difference in peoples lives in the rural areas – the Animal and Vedlt programme, the irrigation scheme refurbishment programmes, the building of bridges and roads as well as crèches, schools, community centre's and clinics are all contributing to rural service access and delivered in terms of policy, primarily the amendments to Act 126.

iv. A policy incongruence between the NGP and the DNDP is an assumption that there are whole regions with no viable economic potential that would need to perpetually relay on government grants and support. This needs careful review and reconsideration:i. Its premised on the urban bias approach and a view that urbanization cannot

be contained.ii. International practice suggests that spatial, social and economic inter-

linkages if properly planned can turn marginal areas around.iii. Opportunities from tourism, mining and niche services could turn also

generate economic vibrancy in so-called non-viable areas.iv. Examples of combined Regional Potential- the livestock belt – Ruth Mompati

to JTGDM through to Kalagadi and Souther Districts of Botswana

NASCENT INDICATIONS OF CONVERGENCEDetail

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RELEVANT ACTION/S INDICATIONS OF CONVERGENCE

5. Building a low carbon economy

i. This priority area of the DNDP should be read in conjuncture with the green economy initiative and broader climate change mitigation.

ii. The department has been compliant to environmental policies of government, particularly where there are changes in land use resulting from its land delivery for settlement.

iii. Land care and management is a key element its animal and veldt management programme.

iv. Furthermore under the CRDP there has been the introduction of solar energy greasers for rural houses. The key challenges is water access to houses.

v. This is indeed an area that requires improvement in:a. Identifying other energy sources such as methane gas

harvesting from cattle dung as municipalities use waste and SAB uses its brewing pulp residue in energy generating bio digesters.

b. Collecting evidence to determine environmental risks created by climate change.

NASCENT INDICATIONS OF CONVERGENCE

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RELEVANT ACTION/S

INDICATIONS OF CONVERGENCE

6. Rural development,human development and sustainable rural settlements

i. As indicated, the NGP and the DNDP discuss and recommend on rural development broadly and well as Human development. The DNDP details issues for rural human Settlements.

ii. The department has acknowledged that it ought to improve on its intergovernmental relations. It is only through this approach that rationalizes skills and resources for targeted development interventions that improvement in the agrarian strategy can be realized and expanded and opportunities in Mining and Tourism taken up.

iii. Tenure policy reforms to unlock potential are being deliberated in the land reform green paper process with such purposes in mind.

iv. Furthermore the skills need to address the widened mandate of the department to effectively engage its widened mandate are being addressed.

v. The targets for building colleges, making them their training responsive to industry needs is an opportunity that ought to be taken up with the DHE in the interest of meeting the rural development needs.

vi. The SPLUMB will also provide an overall framework and basis for integrated development of our various district jurisdictions and strategic regions.

vii. Once again the norms and standards project of the DRDLR aim at facilitating human settlements amongst others.

viii. The commitment to improve social infrastructure as part of the CRDP site development approach further adds to the human development effort.

NASCENT INDICATIONS OF CONVERGENCE

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RELEVANT ACTION/S

INDICATIONS OF CONVERGENCE

7. Building a capable state, improving accountability and fighting corruption

These matters are primarily inward looking and in the past the department has reported on associated efforts underway:i. The department restructuring and business process reengineering. Since 2005 a

number of sub-programmes and facilities have been established from the PLAS and back office through to the Land Rights Management Facility and a directorate dedicated to land management.

ii. New leadership has been appointed and there is a call for active involvement of Provincial offices of the department to actively contribute to policy development as they ultimately are the implementing arms.

iii. A range of community based programme planning and management structures and policy development structures are in place.

iv. Since 2010 the Minister has lead in reviewing policies and meeting/consulting stakeholders and beneficiaries. From this a National Reference Group (NAREG) was established to steer policy development ; It is meant to meet at least once a quarter.

v. Cooperative governance and management of a lead programme of government requires leadership, whose exercise will improve as intergovernmental coordination is improved.

vi. There is much more interaction with communities through a range of channels that suggests accountability.

vii. Planning for the scale-up of restitution research accountability to claimants and owners of lands whose properties are being claimed will go a long way in improving accountability around a critical and constitutionally sanctioned programme.

viii. There are a range of control systems and structures established in the department such as a revamped internal audit and a risk management directorate.

ix. The expeditious dealing with corruption cases is serving as a deterrent to others.x. Audit findings have improved in the last year and…..is targeted for a clean audit year.

NASCENT INDICATIONS OF CONVERGENCE

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RELEVANT ACTION/S

INDICATIONS OF CONVERGENCE

8. Transforming Society and Uniting South Africa

i. It is the DNDP that has a chapter on this matter. However, the other frameworks and actions all aim to transform South Africa.

ii. The rural South African context is challenged with a number of social divisions that, once resolved will substantially contribute to building unity in the country,

iii. The area of historic division amongst rural south Africans is between those with land ownership and control and the landless and tenure insecure. This is expressed in tensions around:a. Communities on commercial farms, andb. Communities in communal areas.

iv. Recognizing these contentious areas as are other tenure related matters the Land Reform Green Paper calls for “social solutions to social problems”.

v. Consequently land tenure security policy for farm dwellers and communal land tenure policies will require thorough and evidence based consultations towards sufficient consensus on policy. The content and process matters are being discussed and planned in the Land Reform Green Paper process.

vi. Another contentious area is the strained relations between municipalities and traditional councils. This once again will need structured and evidence based consultations, pressured by growing politicization of service delivery matters.

AREAS FOR IMPROVEMENT

As indicated throughout the presentation some key areas for improvement which will result in exponential programme efficiency and effectiveness are:

i. The strengthening of intergovernmental relations.ii. Support to the tenure and land reform needs of other

departments to unlock development.iii. Create the basis for strategic land acquisition.iv. Strengthen beneficiary selection,v. Improve knowledge information and skills in the area of rural

development and land reform.vi. Improve communications of both challenges and successes.vii. Continue to build the capacity of rural development and land

reform beneficiaries to champion their own development.viii. Strategically position to both administer and implement the

SLUMB as a Department.

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CONCLUSION

In conclusion, there are:

Nascent indications of policy convergence between the rural

development and land reform policies with the IPAP2, NGP and

DNDP.

Key here are the:

i. The Comprehensive Rural Development Programme,

ii. Experience with implementation of the CRDP

iii. Matters being addressed under the land reform white paper process.

iv. There are areas that are yet to be engaged or their engagement scaled up.

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THE DETAIL ONACTIONS RELEVANT TO RURAL DEVELOPMENT

AND LAND REFORMIPAP2, NGP &DNDP

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ACTIONS RELEVANT TO RURAL DEVELOPMENT AND

LAND REFORM POLICIES: IPAP2 & NGP

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POLICY FRAMEWORK

RELEVANT ACTIONS

IPAP2 i. Labour intensive investmentsii. Agro processingiii. Promotion of export marketsiv. Green Economy

NGP i. Inclusive economic growthii. Phased economic development: 1) Employment creation emphasis. 2)

Labour intensive activities in agricultural value chain amongst others. 3) Full employment.

iii. Tourismiv. Miningv. Investing in Social Capitalvi. A Macro Economic Packagevii. A micro economic package with ten programmes including: 1) rural

development with emphasis on impacts of apartheid spatial and social engineering, and importance of agricultural value chain, agro processing, tourism, public sector and social economy as job drivers; 2) Stepping-up Education; 3) Promoting small business; 4) Developmental trade

ACTIONS RELEVANT TO RURAL DEVELOPMENT AND

LAND REFORM POLICIES: DNDP

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DNDP

1. Steering the economy towards a more value adding and labour intensive growth path.

2. Achieving full employment decent work and sustainable livelihoods. 3. Investing in economic infrastructure .4. Building a low carbon economy5. Rural development as a key intervention.6. Optimizing on international trade opportunities.7. Improving Human Development and Human Settlements.8. Building a capable state.9. Promoting accountability and fighting corruption.10.Transforming society and uniting South Africa,

RELEVANT ACTIONS FOR RURAL DEVELOPMENT AND LAND REFORM COMBINED

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DNDP

1. Steering the towards a more value adding and labour intensive growth path.a. Agro enterprise.b. Tourismc. Green Economyd. Mining

2. Phased and inclusive economic growth. 3. Promoting small business4. Investing in social capital5. Achieving full employment decent work and sustainable livelihoods. 6. Investing in economic infrastructure .7. Building a low carbon economy8. Rural development as a key intervention.9. Optimizing on international trade opportunities.10. Improving Human Development and Human Settlements.11. Building a capable state.12. Promoting accountability and fighting corruption.13. Transforming society and uniting South Africa,

THANK YOU

CONTACT DETAILS: MR HILTON TOOLO: CHIEF DIRECTOR: POLICY RESEARCH AND

LEGISLATION DEVELOPMENT

DEPARTMENT OF RURAL DEVELOPMENT AND LAND REFORMOffice Number: (012) 312 9539

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