Magister Economicae - MEcon (Social Development)

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African perspectives on the land question: The Native Laws Commission 1883
(University of the Western Cape, 1995) Swartz, Moshe Edward; Legassick, M
Both Am-Xhosa and the European farmers, being pastoralists "the search for land and grass was (their) first principle", notes Walker (1928). When they met, they differed fundamentally on the "vital matter oflandholding" . So different were their perspectives, that Lekhehla (1955) suggested, as far as the treaties were concerned: "The Native Chiefs either did not understand the implications of the border treaties, or if they did, never intended to respect such treaties" (p.2 1). Hopper (1980) says the tension between the Europeans and the Africans on the land issue emanated from the fact that "Xhosa expansion" and "colonial expansion" processes were entirely different. While Am-Xhosa expanded in order to "preserve their political integrity" colonists were driven by an economic dynamic they expanded because land was necessary to accommodate growth (1980:261).
The impact of strengthening micro, small and medium enterprises in Indonesia :-A case study of the USCc-Satunama project-
(University of the Western Cape, 2004) Dewi, Catur Utami; le Roux, Pieter
In this mini-thesis, I explore what impact a particular project in Indonesia on strengthening micro, small and medium enterprises (SMEs) has on economic development. I argue, firstly that the project makes a positive contribution to development and secondly that an approach which combines training programs and technical assistance with credit makes a greater contribution than training programs and technical assistance alone. I use the view that SMEs are very important for development as the basis of my argumentation. In spite of this, there is a lack of support for SMEs from the Indonesian government. This gap of support for SMEs was and is partially filled by non governmental organizations (NGOs). The NGOs support SMEs in dealing with problems such as the lack of working capital as well as the lack of knowledge about production, marketing, and management. I focused my field study on the USC-Satunama project. USC-Satunama is a non-governmental organization which works (amongst other activities) to strengthen SMEs. Its activities include the provision of training programs and technical assistance to improve the human capital of the entrepreneurs as well as providing credit. Training programs and technical assistance are provided to all the beneficiaries of the project. However, not all beneficiaries are provided with a credit facility. Therefore, the respective impact of the two different types of support, (i)' a combination of training programs and technical assistance with credit and (ii) training programs and technical assistance alone, can be explored. I use the improved welfare of the entrepreneurs indicated by the increase of their profits as yardstick to ascertain the impact of the project on development. The result of the field study is: the approach of the USC-Satunama project, according to which a training program and technical assistance are combined with credit, indeed makes a significant and positive contribution to the welfare of the entrepreneurs and thus it contributes to the development of Indonesia.
The production of oilseeds in Ethiopia: value chain analysis and the benefit that accrue to the primary producers
(University of the Western Cape, 2005) Fanta, Elias Gebreselassie; Le Roux, Pieter; Birkendorf, Tobias; Institute for Social Development; Faculty of Economics and Management Sciences
Oilseed is the third most important export item in Ethiopian foreign trade. It has registered a high export growth rate over recent years both in terms of volume and value. Besides its growing share in export, it is widely used for the extraction of edible oil and oilcake that is supplied to the domestic market. Although farmers are the primary producers of oilseeds, they are not able to benefit from the growing market share of the product due to the fact that they find themselves at the end of an extended market chain. As a result they only receive a very small proportion of what the final buyers are paying for the oilseed products. In addition, there is not much experience on the part of the farmers to process oilseeds, change it to edible oil and oilcake and retain the value addition in the local economy. This thesis used the value chain approach to investigate the possibilities for the primary producers to increase their income share from the selling of their products either by directly selling to exporters or by processing oilseeds, producing edible oil and oilcake, and retaining the value addition in the local economy.
The characteristics of an effective nonprofit organisation: A critical analysis
(University of the Western Cape, 2007) Coetzee, Marcus; Le Roux, Pieter; School of Government; Faculty of Economics and Management Sciences
This thesis presents a model of the characteristics of an effective nonprofit organisation and a practical tool to evaluate the extent to which nonprofit organisations comply with these characteristics. As part of identifying the characteristics of effective nonprofit organisations, it was necessary to establish whether or not nonprofit organisations and businesses were distinct from one another, since this would determine whether research on the characteristics of effective businesses could be applied to nonprofit organisations. An exploration of the key similarities and defining differences between nonprofit organisations and businesses subsequently revealed a number of startling and unexpected insights.
The impact of tax policy on foreign investment flows to capital-scarce economies
(2009) Massuanganhe, Egildo Gito Sabia; Stoltz, Elizabeth
Developing countries all over the world are competing for greater shares of foreign investment flows in a world where capital has become much more mobile. Also changes to tax policies have been implemented to make the domestic economies of host countries more attractive in the eyes of foreign investors.South Africa is an example of a capital-scarce country requiring much higher and more sustainable levels of foreign investment in order to reach the growth target as envisaged by AsgiSA. This problem is exacerbated by the current deficit on the current account of the balance of payments, together with the extremely low rate of national savings.Recent empirical findings indicate that various aspects of tax policy (nominal versus effective rates of company tax, tax incentives, accelerated depreciation allowances,etc) do affect investment decisions and that harmonisation of tax policies is important.It emphasises that tax policy is a very important aspect considered by multinational companies in their investment decisions. It therefore cannot be ignored by policy makers in capital-scarce countries.The study presents an economic appraisal of the South African situation in the context of important lessons which can be learnt from behavioural responses to international tax rules. It finds inter alia that along with other countries, such as Ireland and Singapore, South Africa implemented various changes, such as reducing the nominal and effective rates of company tax. Another example is the recent announcement of the phasing out of the secondary tax on companies. However, studies also indicate that, although not a first best solution, the use tax incentives is standard practice which cannot be ignored. Uncertainty regarding tax policy also seems to impact on the host country’s ability to attract foreign investment inflows and may even result in disinvestment. A case in point is the recent disinvestment from the South African mining sector.
Is a universal income grant an appropriate social policy to alleviate poverty in Rwanda?
(2009) Haguma, John; Le Roux, Pieter
Rwanda is characterised as a low-income country amongst the poorest on the African continent.Poverty in Rwanda has been persistent for a long period of time and it was made worse by the genocide that took place in 1994 and claimed over a million people. Although a variety of social policies, both home-grown and foreign, have been adopted since 1994 by the government of Rwanda to try and alleviate poverty, none has up to now succeeded to get rid of the povertyconflict trap, partly because they are all means tested. It should be noted here that Rwanda’s situation needs a universal approach in order to help ameliorate the current poverty level which is now at 60 percent, and the rising inequality. The researcher, when investigating a universal approach to use, suggested that a UIG could be the appropriate social policy option for Rwanda.Rwanda has set itself goals through its Vision 2020 and the EDPRS to have changed the country’s position by the year 2020 from being categorised as a low-income country into a middle-income country like South Africa. However, for this to be possible, economic growth must be robust. An annual growth rate of 7 percent needs to be maintained. It also means that the current per capita annual income of $290 needs to be increased to $900. The researcher concurs with these developmental goals but at the same time cautions policy makers that although growth is necessary, it should not crowd out redistributive justice.There seems to be a strong argument that development approaches which focus on income transfers are more prudent in attaining economic development and poverty reduction than those whose sole intention is to attain economic growth. Although policies that pursue economic growth usually lead to inequalities in the societies, governments should take it upon themselves to ensure that there are also counter measures that will reduce poverty at the same time.The researcher in this dissertation advocates for a universal income grant financed by an increase in indirect taxes supplemented by foreign aid as the best approach towards poverty alleviation in Rwanda. It must be noted that dependency on foreign aid is not sustainable in the long-term.There is a need to come up with measures of utilizing the already existing foreign aid in alleviating poverty and also to take care of future uncertainties when the foreign aid has been stopped.In order for Rwanda to break out of the poverty–conflict trap, it needs to adopt social policies that are geared towards alleviating poverty and assuring growth. A UIG was chosen as a social policy option that is capable of alleviating poverty.This research had three major aims. First of all it shows the possible impact of a universal income grant (UIG) in as far as the alleviation of poverty in Rwanda is concerned. Secondly it considers how a part of the existing foreign aid could be channelled into a UIG for all, with the funding effectively being recouped from those who do need support by an increase in the indirect taxes, e.g. in VAT. Thirdly develops a micro-simulation model which could show the impact of the combination of a UIG, partly being financed out of foreign aid and partly by the increases in indirect taxes, on poverty and income distribution in Rwanda. It is clear from the analysis that if the UIG is introduced in Rwanda it will have a multiplier effect when it develops social capital,stimulate aggregate spending, increase economic activity, bring investor confidence, promote economic growth and job creation and in the end alleviate poverty.
An investigation into how elderly persons perceive elder abuse.
(University of the Western Cape, 2009) Splinter, Audrey Patricia; Traut, A.; Auld, A.; Dept. of Nursing; Faculty of Community and Health Sciences
The international concern about human rights, gender equality, domestic violence and the increase in the aging populations has brought elder abuse into the public focus. Elder abuse is a complex, multi-faceted health, social, criminal justice, international public health and human rights issue. The widely divergent and varying definitions is a controversial problem to understanding elder abuse. The elderly have been excluded from national gender-based programs on domestic violence and the abuse of women and children. In South Africa victims of elder abuse are often physically and or cognitively unable to speak for themselves which necessitates that the public be empowered and trained to become advocates for the aged. Lachs & Pillemer ( 2004 : 1265 ) states that "the physical and psychological impairement of elder persons could be predisposing factors for elder abuse ". Statistical evidence on the incidence and prevalence rates of elder abuse is lacking as elderly persons are reluctant to identify care givers for fear of abandonment, retaliation and being left destitute ( Lachs & Pillemer, 2004 : 1265 ). Despite the Bill of Rights as set out in the South African Constitution and the Older Persons Act, No. 13 of 2006 which was developed to deal with the empowerment and protection of elder persons and promote and maintain their status, rights, safety, security and well being the abuse of elder person continues to occur ( Older Persons Act, No. 13 of 2006 ). This qualitative research study is allied with the phenomenological approach in an attempt to understand elder person’s perception, viewpoints and perspectives from their lived experiences and personal lives. Three (3) focus group discussions and eighteen (18) one-on-one interviews were conducted with elder persons living in the suburbs of Cape Town. Data from participants were audio-taped, transcribed verbatim before an inductive analysis lead to the emergence of broad themes and patterns. The main findings of the research study concluded that elderly persons were informed but not empowered about financial, emotional and verbal abuse. The abuse of the elder person in old age homes also featured prominently. The findings of the research study can be used to provide education and empower elder persons and the general public on specific aspects related to elder abuse which are : Financial, Emotional, Verbal and the abuse by staff at old age homes. These findings could be utilized by health and social welfare advocates and organisations who offer community educational and development programs to advocate against elder abuse.
The impact of Namibia’s currency peg on its domestic inflation
(2009) Sheefeni, Johannes Peyavali Sheefeni; Loots, Lieb
This study analyses the impact of Namibia’s currency peg on its domestic inflation. This is because theoretical argument suggests that currency peg (fixed exchange rate) provides nominal anchor for domestic price level, in particular when the domestic currency is pegged to a stable foreign currency. Following the method of hypothesis testing, data on Namibia and South Africa are used in this regard. Three main findings emerged from this study. Firstly, it was shown that the two inflation rates are positively correlated.Secondly, the study shows that there is no statistical significance difference between the inflation rates of the two countries. This gives an indication that the currency peg served as a nominal anchor, because as the SA inflation rate came down, so did the Namibian inflation rate. Thirdly, the study also shows that the growth of money stock in Namibia does not deviate from the growth of money stock in SA. This gives an indication that the authorities have maintained the peg through control of monetary growth.
The influence of laws, regulations and policies on the development of micro-small and medium enterprises :the case of the coastal region of the Benguela Province, Angola
(University of the Western Cape, 2010) Hollige, Oliver; LeRoux; Bäcker, Gabriele; Institute for Social Development; Faculty of Economics and Management Sciences
The study was undertaken in the coastal area of the Benguela Province in Angola. The research question can be formulated as follows: How do laws, policies and regulations influence the development of MSMEs in the coastal area of the Benguela Province? The theory of transaction cost as developed by the new institutional economists will provide the framework for the study.
Access to irrigation technology and technical efficiency: a comparison of households with and without access to irrigation technology, in ‘Gorogutu district’, Eastern Ethiopia
(2012) Gebrekidan, Bisrat Haile; Oloyede, Olajide; Pretorius, Leon G.
Despite its recent remarkable economic growth, Ethiopia remains one of the poorest countries in the world. More than 80 percent of Ethiopians obtain their livelihood from traditional low-productivity agricultural activities. Due to lack of water storage facilities and the erratic nature of rainfalls, most farmers don’t have access to water to produce more than one crop per year and hence there are frequent crop failures due to droughts which have made the country one of the highest food insecure nations and receiver of food aid. It is evident that a comprehensive effort is required to increase crop and agricultural production through different intensification and productivity enhancement mechanisms and reduce rural household’s food insecurity and poverty. In line with this the Government of Ethiopia and different NGO’s have been promoting irrigation technology as a viable option in enhancing farm productivity and efficiency improvements.By integrating field observations, economic theory, and econometric analysis, this study assess the extent to which access to irrigation technology affects the level of technical efficiency in Gorogutu district of Eastern Ethiopia. The analysis is based on primary household-level data collected from 100 randomly selected households in 20010/11 cropping season. To analyze the effect of the technology on technical efficiency, three different Cobb-Douglas type of Stochastic Production Functions were estimated. More so, to explore different socio- economic and institutional determinants of technical efficiency in the study district, an inefficiency effect model was estimated using the one step procedure.The result from the estimated models has shown that farm households in the study area are not technically efficient and there is a chance to increase output by using the technology and mix of production input used by the best farm household (with 20 percent technical inefficiency). In addition, it also showed that households with access to irrigation technology are more technically efficient (84 percent technical efficiency) than those without access to the technology (77 percent technical efficiency). And household’s access to irrigation technology, access to extension service and distance travelled from farm plot to homestead are a significant determinant of technical efficiency in the study area.The study recommended, among other things, as a country that has a huge potential for irrigation development, utilization of this potential and providing irrigation technology to farm households will have a huge impact on the livelihoods of the majority of the poor. Evidently, efforts tailored towards this end would be very essential in militating against the high levels of poverty that is persistent in the communities
Assessing the contribution of rural tourism to local economic development as a strategy for poverty alleviation: a case study on the Ukhahlamba district –Senqu municipality in South Africa
(University of the Western Cape, 2013) Qongo, Siyabonga Christopher; Dinbabo, Mulugeta F.
Tourism is one of the many external forces influencing the direction and options for local economic development. A truly legitimate and practical discussion on tourism development must take place in and with the communities that are being influenced by tourist industry development. The tourism sector is the fourth largest generator of foreign exchange in South Africa and lies third, after manufacturing (24.4%) and mining and quarrying (8.6%), in its contribution to the economy, at 8.2%, but poverty and unemployment still persist, especially in rural areas. In line with the conceptual and theoretical framework derived from both demand and supply factors, this research was conducted to explore and develop a conceptual framework to examine how prices are established in local markets for tourism andassess the level of community participation in the tourism business ventures at Senqu Local Municipality in South Africa. Both quantitative and qualitative methods of research have been applied throughout the study. The views of the community on their socio- economic conditions and their willingness to participate in tourism business ventures were also sought. The findings of the study lead to the conclusion that the socio-economic living conditions of the community of SLM are very poor and that empowerment and participation of the community could be an answer to alleviation thereof and provide a contribution to local economic development.
The impact of livelihood diversification on food Security amongst farm households in northern Ghana: a case study of bole district
(University of the Western Cape, 2014) Mensah, Clement; Karriem, Abdulrazak
Diversifying livelihoods has over the last two decades been identified as an important theme in the development work, particularly concerning the poverty reduction agenda. In the developing world, farm households, urged on by their survival instinct, diversify away from traditional subsistence agriculture to the production of high-value crops and at other times engage in off-farm and non-farm activities. This has become necessary due to the failures of agriculture to guarantee farm households sustainable livelihoods and improve their welfare. In sub-Saharan Africa, diversification is a vital instrument for reducing rural people’s risk to poverty. In recent years, however, diversification has been closely linked to food security. This is due to the fact that chronic food insecurity and its accompanying vulnerabilities continue to thwart poverty reduction efforts in the developing world. Paradoxically, whereas available statistics suggests that there is enough food to feed everyone, close to 900 million of the world’s population is still food insecure. By implication, the food security challenge hinge on ‘access’ rather than food availability. In sub-Saharan Africa and for that matter Northern Ghana, the phenomenon is quite pervasive, often affecting rural farm households. This signals one thing – a travesty to the existence of international human rights frameworks. Already, available empirical studies on the extent to which diversification amongst farm households impact on assuring household food security have revealed mixed results and are silent on the gender consequences. Using World Food Programme’s 2012 Comprehensive Food Security and Vulnerability Analysis survey conducted in northern Ghana and an ordinary least squares estimator, this study sought to examine how livelihood diversification contributes to household food security and subsequently validate its effect for male and female-headed farm households in the Bole district of the Northern region of Ghana. Results from the study revealed a significant positive relationship between livelihood diversification (the number of livelihood activities farm households engaged in) and household food security (household food consumption score). Whereas similar result was observed for male-headed households, that of female-headed households was insignificant even though positive. Following this, the study proposes a two-fold policy strategy for optimizing the impact of livelihood diversification on guaranteeing food security amongst farm households in the case study district in particular and northern Ghana in general. Firstly, support for boosting smallholder agriculture should be pursued rigorously, taking advantage of programmes such as the Savannah Plan for Accelerated Growth. Secondly, sustaining, up-scaling and re-orienting programmes such as Rural Enterprises Project and creating the policy milieu for farm households to explore local opportunities like eco-tourism should be mainstreamed, taking into account concerns of gender.
Social protection policy in promoting human development outcomes: the cash transfer programme for orphans and vulnerable children in Kiambu, Kenya
(University of the Western Cape, 2014) Marangu, Joyce Njeri; Conradie, Ina
Cash transfers, integral in social protection, have increasingly been viewed as a viable measure of promoting human development outcomes in low and middle income countries in the face of persistent poverty exacerbated by the HIV/AIDS pandemic. Sub-Saharan Africa has been the worst hit by the HIV/AIDS pandemic with almost two thirds of the world’s HIV/AIDS patients living in the region. By 2005, 12 million children were orphaned by the disease while 2 million more below 15 years of age were estimated to be infected (UNICEF, 2005:2). To address the plight of orphans and vulnerable children in Kenya the government together with various international development agencies launched the Cash Transfer Programme for Orphans and Vulnerable Children (CT-OVC) in 2004 to provide for the basic needs of OVC and promote their human development. With the capability approach as its theoretical framework, this research seeks to determine the value attached by recipients of the CT-OVC to capabilities in the four broad dimensions of social life, health, education and play. It also seeks to gauge the extent of attainment of functionings in the four dimensions, and the association between participation in the programme and one’s functionings in the key dimensions. The research is conducted through a quasi-experimental design which compares recipients of the cash transfer to non-recipients and mixed methods are used to collect and analyse data. Results show that OVC consider capabilities in the dimensions of social life, education, health and play to be of high value in their lives. Children in the recipient group appear to have attained functionings in the four dimensions to a higher degree than their counterparts in the comparison group. There is also an association between participation in the CT-OVC programme and attainment of functionings in all four dimensions. Perceptions from participants explore further opportunities created or expanded through the CT-OVC as well as participants’ suggestions on the programme
An exploration into the challenges teachers face in implementing HIV/AIDS initiatives and programmes in primary schools: a case study of two primary schools in Nyanga Township
(University of the Western Cape, 2014) Nqaba, Nokuthula; Karriem, Razack
Twenty years into democracy and South Africa like many of the world‟s nations still faces manifold challenges in dealing with HIV/AIDS. This disease affects millions of people in various forms; socially, economically and politically. HIV/AIDS is considered to be a global pandemic (UNAIDS, 2011). The largest group at risk appears to be people between the ages of 15 and 24. One crucial way of dealing with this pandemic is through education since the emphasis is on prevention. It is against this background that this study explored the challenges teachers face in implementing HIV and AIDS initiatives and programmes in two primary schools in Crossroads, in the Nyanga region, in the Western Cape. It appears that research on this topic is not normally carried out in primary schools. I therefore start from the premise that literature on the topic, especially in this empirical field (primary schools), is limited. The conceptual lens used to understand this complex issue is the Bio-ecological Systems Model of Bronfrenbrenner (1977). Teachers operate within various contexts and their teaching is often influences by their experiences, knowledge and attitudes (Tayob, 2010:3). Furthermore, it appears that the implementation of HIV/AIDS initiatives and programmes at primary school level is dependent on the relationship between many systems. The complexities of understanding these relationships warrant the use of this model within this study. Methodologically, this study employed a qualitative case study research design to investigate this contemporary phenomenon. I employed in-depth qualitative data collection procedures which included: a questionnaire, semi-structured interviews, and document analysis. The findings indicate that educators are seriously constrained by lack of support from school management and parents when engaging in HIV/AIDS initiatives or programmes at respective primary schools. The study also reveals that educators are not well trained to offer counselling to deal with HIV/AIDS related matters and it becomes worse with those infected. In addition, this study reveals that embedded cultural beliefs play a huge impeding factor in attempts to participate in HIV/AIDS initiatives and programmes, which are aimed to empower both educators and learners. The study therefore recommends a need for stronger financial muscle and support from schools management team to ensure that time set aside for life orientation classes be utilised effectively for the benefit of learners with priority on HIV/AIDS studies and initiative programmes. A strategic inclusion of parents, religious and traditional leaders with the Department of Basic Education and all relevant partners is very critical to achieve the fight against the struggle with HIV/AIDS through means of education at all levels within the sector and beyond.
Assessing the impact of government grants on poverty and inequality: a microsimulation study in South African
(University of the Western Cape, 2014) Wurku, Seyfe Tadesse; Dinbabo, Mulugeta F.
Poverty and inequality are the major challenges of the post-apartheid government of South Africa. In order to address these challenges, the government designed a range of policies and strategies including social grant programs. The main objectives of social grants in South Africa focus on relieving poverty and enabling the previously disadvantaged communities to access basic social services. However, poverty and inequality remains high in the country (statistics SA,2014). The main objective of this study is to critically examine the impact of selected government grant programs on poverty and inequality in South Africa. The study estimates households' consumption function using the third wave of National Income Dynamics Study (NIDS) of South Africa and simulates the impacts of government grant on poverty and inequality. It examined how these impacts vary across population groups, gender and geographical locations. The findings indicate that monthly government grants decrease the head count poverty by between 3.7% and 4.4%, the poverty gap by between 1.9% and 2.7% and severity of poverty by between 1.2% and 1.9%. Government grants also reduce the odds of being in a state of poverty by approximately 59.1%. In terms of inequality, the findings show that government grants have little to do with reducing inequality (1.6%).
A comparative study of the transaction costs of doing business in formal urban vs informal settlement areas: a case study of microenterprises in Joe Slovo and Maitland, Western Cape, South Africa
(University of the Western Cape, 2014) Mahamed, Mahamed Rage; Dinbabo, Mulugeta F.
The main objective of this research was to measure and compare the influence of institutions (government laws, rules, regulations) on the transaction cost of establishing microenterprises in informal/township areas and suburbs. The research target area was Maitland (a suburb) and Joe Slovo (a township area). A research framework was developed using the theories of institutions and the TACE. In order to achieve the research objectives, both quantitative and qualitative research designs were used. A total research sample of 40 microenterprise owners were selected from these two areas. A random sampling technique was used to select half (twenty) microenterprise traders in Maitland and the other half (twenty) from Joe Slovo. The research also applied non-random sampling technique to select relevant government institutions that regulate microenterprises in these two areas. The research has collected both primary and secondary data. To collect the primary data, face-to-face interviews were held with the shop owners in the two research sites and government (City) officials. A questionnaire containing both open-ended and closed-ended questions was used in collecting the primary data. The secondary data was collected using desktop (internet) search and also physically searching government archives and publications. Descriptive statistics (frequency distributions and graphical representations) of the data were used to analyze and compare the data collected in a meaningful way. The research also used non-parametric independent samples t-test to compare the differences of the transaction costs of establishing microenterprises in Joe Slovo and in Maitland. The data collected was analyzed and compared using SPSS statistical research analysis software. The results show, to establish a microenterprise business, microenterprise owners in both formal and informal areas need to comply with the environmental health laws. In addition to complying with the environmental health laws, microenterprises in formal areas are obliged to comply with the City zoning scheme and seek permission to establish businesses in these areas. The application process for seeking the City zoning approval is cumbersome and subjective. The results show that entrepreneurs in informal/township areas are automatically allowed by the local government to establish microenterprises in these areas and need not comply with the Zoning Scheme. The main findings of the study reveal that microenterprises in formal suburbs face higher TACs in establishing businesses in these areas when compared to those in township areas.
An impact assessment of micro enterprises on the livelihoods of low income households in Khayelitsha
(University of the Western Cape, 2015) Maseya, Evelyn; Conradie, I.
Livelihoods are essential for poverty alleviation. A poor person’s life cannot be transformed at all if the person has no means of earning a substantial income to sustain daily living. In today’s world many people rely on human capital for livelihoods. This is usually in the form of skills or educational qualifications that permit an individual to find employment. However, not every person is able to get meaningful employment which can generate an income to allow the person to live above the poverty lines. Generating an income from employment is not a livelihoods strategy that is available to many South Africans as the country has high unemployment rates and an economy that is performing poorly. In addition the overspill of institutionalised inequality from the apartheid era has many South Africans living in poverty. The South African government is promoting Small Micro and Medium Scale Enterprises (SMMEs) as a key strategy for job creation, economic growth for poverty alleviation and a reduction in inequalities. Many poor people in urban areas adopt micro enterprises as a livelihoods strategy. The research assessed the impact of micro enterprises on the livelihoods of low income households in Khayelitsha. The objectives of the research were; (a) to determine the impact that micro enterprises have on the livelihoods of low income households; (b) to ascertain how low income households identify micro enterprises as a livelihoods strategy; (c) to identify how household assets were allocated to livelihoods strategies; (d) to determine how low income households operate micro enterprises; and (e) to identify challenges faced by low income households in earning a livelihood through micro enterprises. A qualitative research design was used for the study because the aims of the research were to get an insight as to how people’s lives had transformed by adopting micro enterprises as a livelihoods strategy. To this end, in-depth interviews and observation data collection methods were employed. A study sample of 22 participants was drawn using non-probability sampling. Grounded theory was used for data analysis. Coded data was entered into an Excel spreadsheet which was used to generate graphs and tables. The findings indicate that micro enterprises as a livelihoods strategy have a positive impact on the livelihoods of many households in Khayelitsha. The impact is more significant because many households who engage in micro enterprises do not have other options for livelihoods strategies. Furthermore, many households reported to be better off operating a micro enterprise rather than being employed. Some households reported dissatisfaction with micro enterprises because they could not determine beforehand how much income would be generated making it difficult to plan monthly household expenditure. None the less micro enterprises enabled households to provide shelter, food, education for children and family members, health care and provision of household furniture. The results also indicate that for many micro enterprise owners the lack of financial capital was the biggest challenge because it prevented capital investment. High competition was also a challenge that a few owners were not able to overcome. On the whole the study concluded that micro enterprises are a good livelihoods strategy for the poor and could keep many South Africans above the poverty line.
The impact of Fairtrade on the quality of life of workers on wine estates in the Western Cape Province, South Africa
(University of the Western Cape, 2016) Fusenig, Mirjam; Penderis, Sharon
Fairtrade is an international organisation aimed at creating empowerment, sustainable livelihoods and fair trading opportunities for small-scale producers and hired labourers in the Global South. The organisation Fairtrade International and its independent certification body FLO-CERT form part of the larger Fair Trade movement. As South Africa's wine industry is still characterized by oppression of its farm workers, the organisation urges for a profound transformation of the industry. Fairtrade's engagement in South Africa is unique as it emerged from an initiative of local producers seeking the certification in 2003. Since then, the number of Fairtrade grape and wine farms has steadily increased and expanded to other wine-producing countries. Thus, after more than ten years of Fairtrade operation in this industry, it is worthwhile evaluating the impact of this international initiative on local farm workers on wine estates. This study uses the capability approach as a theoretical platform from which to assess farm workers' quality of life. The investigation draws a comparison between conditions for workers on Fairtrade-certified farms and conditions for workers on non-certified wine estates. Quantitative research methods were used to gather relevant information. The findings prove the hypothesis of a positive impact of the Fairtrade intervention, but only in certain categories. Labourers on Fairtrade-certified farms were found to be better off concerning financial provision for retirement, contractual status and opportunities to participate in professional training and to join unions. The data furthermore supports the hypothesis that Fairtrade workers are more satisfied with their jobs on wine farms. For further research, longitudinal studies and participatory research approaches are recommended to obtain in depth-information about farm workers' views on Fairtrade.
Assessing the impact of social grants in alleviating poverty in South Africa
(University of the Western Cape, 2018) Mtshali, Nothando Thabisile; Ocran, Matthew
Amongst many challenges, South Africa is still struggling to address the problem of high levels of poverty in the country more than two decades after the apartheid regime has ended. The government has however remained resolute in its effort to alleviate poverty especially through the provision of social grants. The expansion of the social assistance scheme after the apartheid regime has played an important role in extending benefits to a wider population of South Africans particularly the poor and the vulnerable groups. The effects of social grants on poverty have been proven to be effective. This has been widely tested empirically using the monetary approach as a measurement of poverty. However, few academic works have studied this effect on multidimensional poverty. Moreover, existing studies have focused predominantly on single poverty dimensions. As a result, this study investigates whether social grants reduce multidimensional poverty in South Africa. This study uses the Multidimensional Poverty Index (MPI) as a poverty measurement, which encompasses three dimensions of poverty. This dissertation found poverty to have declined over the years but it is still prevalent amongst households headed by blacks and females residing in the Eastern Cape, KwaZulu-Natal and Limpopo provinces with large household. The relationship between social grants and multidimensional poverty is tested empirically through a logistic regression using the National Income Dynamics Study (NIDS) data for Wave 4, year 2014/15 to be specific. The empirical findings reveal that a R1 increase in income from social grants results in a 1% decrease in the odds of a household being multidimensional poor. As much as social grants reduce multidimensional poverty, they have been found to be statistically insignificant and thus less effective in the reduction of multidimensional poverty.
The impact of an organisational capacity assessment on non-profit organisations in South Africa.
(University of the Western Cape, 2020) Wagner, Andre; Visser, D.J. (Kobus)
The research study investigated the potential impact that organisational capacity assessments can have on the long-term sustainability of non-profit organisations (NPOs). The researcher employed longitudinal research design as the main instrument in the collection of data. Data was collected from four local non-profit organisations in the Cullinan and Bronkhorstspruit areas of South Africa. These organisations were evaluated by means of a questionnaire, which was developed by the researcher. NPOs can only play a pivotal role in community and social services if management, leadership, governance and other elements of organisational capacity are well developed and continuously strengthened. This is critical for attracting local and international donors who provide crucial running costs and relieve national, provincial and local government departments of the financial burden. Currently, the South African government supports NPOs in South Africa. The legislative and registration aspects of NPOs are regulated by the NPO Act (Act 71 of 1997) and the Income Tax Act (Act 58 of 1962). The State of South African Registered NPOs Report 2010/2011 indicated a growth of the number of registrations to have increased by 8.3%. However, in the same financial year a total number of 468 NPOs were deregistered; 98% of these lost their registration due to non-compliance of regulatory requirements. According to the State of South African Registered NPOs Report (2016) the total number of applications received for the financial year was 16 726 (53.7%), however 4 421 (46%) did not meet the requirements of sections 12-13 of the NPO Act, an issue that would definitely affect the existence of non-compliant institutions.

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