challenges faced in the design and implementation of socio-economic development plans holle linnea...
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CHALLENGES FACED IN THE DESIGN AND IMPLEMENTATION OF SOCIO-ECONOMIC
DEVELOPMENT PLANS
Holle Linnea Wlokas ([email protected]), Louise Tait ([email protected])www.erc.uct.ac.za
Nomvula Dlamini ([email protected])www.cdra.org.za
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Research group
• Low-carbon development and poverty • Poverty and mitigation (CDM, NAMA, etc.)• Clean energy for low-income households • Social implementation of technologies
Worked alongside project developers on economic development requirements of RE IPPPP
• 20 projects all over the country
Academic reflection & preparing future work with partner organisations like CDRA
ENERGY, POVERTY AND DEVELOPMENT GROUP IN THE ENERGY RESEARCH CENTRE
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1. Review of economic development elements in RE IPPPP
2. Creating a successful socio-economic development programme: key
consideration and factors
CONTENT
Raise awareness about opportunities and challenges associated with design and implementation of SED and ED elements from a community development perspective.
OBJECTIVE OF THE PRESENTATION
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70 %Price
30 %
Economic Development
PROJECT SELECTION
Source: South African Department of Energy
7 Economic Development Elements WeightingJob Creation 25%Local Content 25%Ownership 15%Management Control 5%Preferential Procurement 10%Enterprise Development 5%Socio-Economic Development 15%Total 100%Total points 30 points
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Economic Development
for Local Communities
Job Creation
Ownership
Socio-Economic
Development
Enterprise Development
Number of Citizens from Local Communities employed• 12-20% of total number of
RSA Based Employees
Shareholding by Local Communities• 2.5- 5.0% of total
shareholding• Or entire ownership
requirement of 12-30%
Socio-economic development interventions• 1 - 1.5% of total project
revenue
Enterprise Development • 0 - 0.6% of total
revenue
REQUIREMENTS
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identify needs of surrounding
communities in 50km radius
formulate strategies on how such needs
could be met
provide list of enterprises
earmarked for development
give an indication of programmes that
will be implemented with these enterprises
Socio-economic development
1 to 1.5% of revenue
Enterprise development
0 to 0.6% of revenue
Economic Development
Evaluation• Compliance with
threshold
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UNEQUAL GEOGRAPHICAL DISTRIBUTION OF PROJECTS
Geographical distribution of preferred bidders (1st and 2nd round)
Population 1mil
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THE CHALLENGES
Lack of guidelines for design and implementation of socio-economic and enterprise development
Lack of development expertise in project selection committee• Threshold is the only evaluated criteria
Monitoring and reporting requirement focus on monetary spending
Unequal geographical distribution of projects
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REQUIRED NEXT STEPSStimulate communication between project developers, development practitioners & academics & local government
Exchange experiences and proposed strategies for socio-economic development
Develop shared vision for low-carbon community development
Develop resources to support developers
Influence national and international policy making with these insights
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identify needs of surrounding
communities in 50km radius
formulate strategies on how such needs
could be met
provide list of enterprises
earmarked for development
give an indication of programmes that
will be implemented with these enterprises
OPPORTUNITY AND CHALLENGE FOR DEVELOPMENT
Up to developer to determine the impact of this spending!
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IT COULD GO EITHER WAY…
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CREATING A SUCCESSFUL SOCIO-ECONOMIC DEVELOPMENT PROGRAMME: KEY CONSIDERATION AND FACTORS
Pay attention to the “hardware” as well as the process - schools, clinics, vegetable gardens and small businesses are as important as where the community is in its own process of development
Sustainability into the future is essential – social, economic, ecological – notion of
sufficiency is important
Inclusive – create a space for all to come to the table as equals; share of responsibility and
rewards/benefits
COMPLEXITY OF DEVELOPMENT
Invest in relationship – engage through relationship
Build on community assets – land, skills, knowledge, money, talents, experience, etc.
Ensure ownership and commitment
Clarify and manage expectations of different role players – expectations can cause conflict
Establish channel of communication – clear system to allow engagement
Engage with leadership and power structures
ENGAGEMENT WITH COMMUNITY
Community is diverse – different groups and competing interests, power bases
Spread the financial gains/benefits
Create a formal consultative structure or mechanism
A presence in the community helps (e.g. community liaison person)
Integration of interventions (NDP, IDP, etc)
Short-term economic benefits (important for ownership and commitment)
Employment of local people and source services locally
CONSIDERATIONS
Establish systems for monitoring, reporting and accountability
Financial oversight (an ethical tone)
Develop capacity for administration/management of the trust
Clear beneficiary parameters
Support what exists (community projects and structures for community-led development)
Legitimate representatives
Ownership and commitment
COMMUNITY TRUST
THANK YOU
Holle Linnea Wlokas ([email protected]), Louise Tait ([email protected])www.erc.uct.ac.za
Nomvula Dlamini ([email protected])www.cdra.org.za