3 May 2017 Portfolio Committee on Science & Technology

STRATEGIC OVERVIEW The HSRC in the National System of Innovation: “…to promote research of the highest quality, aimed at improving understanding of social conditions and the processes of social change, and to engage with research counterparts through research on pressing social issues relevant to human welfare and prosperity.” (Preamble of the HSRC Act, Act 17 of 2008) The HSRC clearly has a central and pivotal role to play in South Africa’s NSI. Its work is at the core of the development and successful roll-out of the NSI. Its raison d'être (reason for being), as outlined in the preamble to the 2008 Human Sciences Research Council Act, is to promote research of the highest quality, aimed at improving understanding of social conditions and the processes of social change, and to engage with research counterparts through research on pressing social issues relevant to human welfare and prosperity.

STRATEGIC OVERVIEW HSRC Government Science Councils Civil Society Universities Civil Society HSRC The South African National System of Innovation consists of numerous role players, operating in an enabling policy framework. Institutions with important roles and responsibilities in the NSI may be categorised as follows The Government Sector (e.g. the Department of Science and Technology, Presidency, national Treasury, Department of Health) The Business Sector (e.g. Sasol, the commercial banking sector, SMMEs involved in R&D, private research service providers) The Higher Education Sector (i.e. the 26 publicly-funded universities as well as private universities) The Not-for Profit Sector (e.g. research NGOs such as IDASA, ISS) The Science Council Sector (the nine statutory science councils, as well as national facilities) Academies and Advisory Bodies (e.g. NACI, ASSAf, CHE) Very few, if any of the individual institutions mentioned above have a totally unique and exclusive role to perform in the NSI. In fact, the work of the HSRC shows overlap with at least three of the above-mentioned categories, namely the Higher Education Sector, the Science Council Sector and the Academies and Advisory Bodies. It collaborates with these bodies on a regular basis. However, as a national public entity dedicated to research in the social sciences and humanities, the HSRC is uniquely placed in the NSI. It is located at the interface between government, other science councils, the university sector and civil society.

STRATEGIC OVERVIEW Suggestions New thinking Action Problem-oriented and applied research Areas of national importance Across the spectrum of disciplines and methodological approaches Innovation Policy Direction Performance Pathways Suggestions New thinking Action Its work is typically problem-oriented and applied in nature, and provides unique opportunities to harness research projects and programmes of work around areas of national importance. It creates and acquires new knowledge through a range of projects across the spectrum of disciplines and methodological approaches, and benefits from the inputs of research peers both as collaborators and critical reviewers of its work. In fact, the majority of its research projects is based on teamwork. It engages with role players such as policy makers, civil society activists, academics, educators, research funders, the media and public at large through its research projects but also through the various ways in which it makes its research outputs and data available. The purpose of these engagements is often to help build bridges between research and public understanding, policy development and improved practice in a responsible, accountable and transparent manner. The HSRC’s focus on innovation will include looking at performance pathways, and to provide policy direction on how successful or desirable interventions can be scaled up. It wishes to go beyond describing, to making suggestions and to help build new thinking and action aimed at addressing and turning around pressing issues such as poverty and inequality.

OUR ROLE AND CONTRIBUTION Poverty and Inequality: Diagnosis, Prognosis, Responses Enhance the analysis of current forms, patterns and trajectories of poverty and inequality; Improve understanding of the drivers, dynamics and structural constraints underlying the contemporary situation; and Explore the opportunities, triggers and tools for transforming current pathways and processes through action by government and other social institutions. The guiding theme behind the HSRC’s Strategic Plan for the next five years is therefore ‘poverty and inequality: diagnosis, prognosis, responses’. This recognises the far-reaching consequences of poverty and inequality for the well-being and life chances of South African citizens and for the stability and cohesion of society. These issues are also hugely and increasingly significant for the rest of Africa and the wider world. In particular, the HSRC’s research strategy will continue to seek to: •Enhance the analysis of current forms, patterns and trajectories of poverty and inequality; •Improve understanding of the drivers, dynamics and structural constraints underlying the contemporary situation; and •Explore the opportunities, triggers and tools for transforming current pathways and processes through action by government and other social institutions. The research agenda will be influenced and inspired by a positive vision of inclusive development and an awareness of the factors in the social, political and economic environment which impede progress towards the attainment of development. Inclusive development is both a process and an outcome. As a concept, inclusive development encompasses the following principles (i) the social ideal that the entire population shares equitably in the benefits of economic progress, (ii) the social value of direct and indirect participation of the people of the country in the development process, (iii) the building and nurturing of social trust, (iv) the consequent development of legitimacy of public structures and institutions. As a process it requires wide and inclusive participation both in decision-making and in the practical activities of the social, political and economic domains of everyday life. Starting with what it has already done, the HSRC will be more deliberate in its attempts to produce and present research-based evidence that can be used to better understand, analyse and address aspects of poverty and inequality in the diverse communities of the country, country, the continent and, through comparative exercises.

Governance and decision-making OUR ROLE AND CONTRIBUTION Poverty and Inequality: Diagnosis, Prognosis, Responses Economic Inclusion Social Development Governance and decision-making The research programme of the HSRC over the next five years will be structured around three broad dimensions of poverty, inequality and inclusive development: •economic inclusion - including growth, competitiveness, regional integration, infrastructure, technological innovation, ICT, resources (natural, human, land), labour markets and spatial dynamics (urbanisation, agglomeration, density); •social development - including well-being (quality of life, security, social and spatial mobility, migration), human capabilities (education, skills, health etc.), social relationships (race, class, gender, identity etc.), social institutions and cohesion (family, community etc.); •governance and decision-making - including political participation, democracy, trust-building, nurturing legitimacy in public structures, capacity-building in the state, enhancing leadership, distributing power, accountability, responsiveness, social movements, multi-level government and coordinated decision-making.

SUPPORT OF NDP CHAPTERS Promoting Health Improving education, training and innovation Economy and Employment Transforming Human Settlements Building a Capable and Developmental State Transforming Society Positioning South Africa in the World An Integrated and Inclusive Rural Economy Environmental Sustainability Economic Infrastructure Social Protection Building Safe Communities Fighting Corruption The HSRC’s areas of research support the NDP Chapters to varying degrees, as illustrated on this slide.

STRATEGIC OUTCOME ORIENTED GOALS A Advancing knowledge and scientific excellence D Developing collaborative networks and applied research on poverty and inequality E Enhancing research skills and public awareness P Preserving and sharing data for further analysis T Institutional Transformation S Financial Sustainability

CHANGES TO STRATEGIC OUTCOME ORIENTED GOALS IN 2017/18 Stronger alignment with DST and National Priorities Removal of compliance indicators to focus on core business Strategic intention to focus on quality, relevance and impact alongside quantitative performance indicators It was clear that a much stronger focus on relevance, impact and quality of HSRC work would be required, to enable the organisation to make some inroads, through its research and collaboration with like- minded institutions and expert scholars in South Africa and internationally, on the scourge of poverty and inequality, and to contribute to better understand, and inform policy and planning, around inclusive development and governance. The revision of the introductory section of the HSRC strategic plan and Annual Performance Plan (APP) was a collaborative effort. At the same time, performance indicators and targets were also critically reviewed and packaged in a manner to show a clearer alignment between the strategic outcome-oriented goals of the HSRC, and the indicators of performance and associated targets that had been selected. This revision took place with due consideration of indicators appearing in the DST Annual Performance Plan, with the intention of introducing some new indicators that could be more clearly aligned with DST objectives. However, because the process of revising the strategic plan and associated performance indicators and targets took place towards the end of the planning cycle for 2016/17, the HSRC was able to add indicators to the existing set of approved performance indicators, to show stronger alignment with DST and national priorities and its new strategic thrust, but not to remove any previously-approved performance indicators or targets. In the course of the 2016/17 financial year, special efforts were made to engage with the executive leadership of the HSRC as well as DST around possible amendments, and to consult with other oversight departments (notably DPME and National Treasury) about due processes to follow in this regard. The motivation for the removal of several of the indicators, is that they reflect what the organisation has to do in any case, whether or not there are indicators to monitor performance. An example is the submission of annual employment equity reports (indicator 5.3). This is a legislated compliance requirement which the HSRC has always met, will continue to meet, and if it fails to meet the requirement, there will be consequences, regardless of whether it is listed as an institutional performance measure or not. The motivation for the revision of some other indicators and the reduction of a few targets, has to do the strategic intention to focus on quality, relevance and impact alongside quantitative performance indicators. For instance, to set high or raising numerical targets for performance in areas related to research publications and capacity development, without adding financial or human resources to support this, may create additional risks around research quality and staff burnout which may not be sustainable or justifiable in the long run.

CHANGES TO STRATEGIC OUTCOME ORIENTED GOALS IN 2017/18   2016/17 2017/18 Numerical Narrative For narrative, to provide examples of … A 12 8 1 HSRC research that provided decision support to government services D 6 3 E 9 Networking platform(s) for engaging policy makers P 2 T 7 Addressing the ratio between researchers / senior researchers and all HSRC staff S Total 45 23

ADVANCING KNOWLEDGE AND SCIENTIFIC EXCELLENCE Peer-reviewed journal articles (acknowledged journals) per researcher 0.8 Scholarly books published 15 Scholarly book chapters published 54 HSRC research seminars convened 50 HSRC Review publications produced 4 Policy briefs produced and published Public dialogues on poverty and inequality hosted Number of peer-reviewed journal articles by HSRC author or authors with at least 10 citations listed within 5 years from publication 6 In addition to the eight indicators with numerical targets, above, the HSRC also intends to provide examples, in narrative or case study format, on government services or functions where HSRC research results provided decision support

DEVELOPING COLLABORATIVE NETWORKS AND APPLIED RESEARCH HDIs with which HSRC has actively collaborated during the reporting period 5 African research fellows hosted by the HSRC 14 Peer-reviewed journal articles co-published with researchers outside South Africa, on the African continent 6

ENHANCING RESEARCH SKILLS AND PUBLIC AWARENESS Master’s level interns 42 PhD level interns 49 Post-Doctoral Fellows 25 Completed Master’s level research internship 5 Completed PhD level research internship 8 Training academy ("winter/summer school" or methodology workshop) hosted 1 In addition to the six indicators with numerical targets, above, the HSRC also intends to provide examples, in narrative or case study format, on platforms for engaging policy makers established during the period under review. The DST’s request to increase the targets in relation to Masters, Doctoral and Post-Doctoral appointments is noted. However, the targets for these appointments can only increase if the budget increases congruently. In view of the DST’s queries about the size of the HSRC’s salary budget in relation to the total institutional budget, it would also be very difficult to grow the target for human capital development indefinitely. In light of this, along with the prospects of significant budget cuts, it is not viable to increase those numbers. We do remain committed to this critical indicator though. I am happy that our increased efforts to recruit suitable researchers to participate in the researcher trainee programme, have been successful, despite the limited resource pool and competition from Universities and other science councils.

PRESERVING AND SHARING DATA FOR FURTHER ANALYSIS Preserved datasets 23 Unique downloads of curated data sets 450

INSTITUTIONAL TRANSFORMATION Percentage senior researchers who are African 56% Percentage senior researchers who are female 49% In addition to the two indicators with numerical targets, above, the HSRC also intends to provide information, in narrative format, reflecting on the ratio of senior researchers (SRS/SRM or higher) in relation to all HSRC staff.

FINANCIAL SUSTAINABILITY Extra-parliamentary income as percentage of total income 48% Multi-year grants 56%

BUDGET SUMMARY 2017/18 Income 540 115 Parliamentary Grant 304 656 Research Income 189 241 Other income 46 218 Expenses Salaries 274 259 Administration, Operating Costs 147 421 Project related expenses 118 435 Surplus / deficit -

BUDGET ANALYSIS 2017/18 Budgeted income : R 540 115 000 Parliamentary Grant: R 304 656 000 (56%) External research income target: R 189 249 000 (35%) Other external income target: R 46 218 000 (9%) Staff costs: R 274 259 000 (51%) Ratio between Parliamentary grant and (total) external income: 56 : 44 (2016/17 - 57:43)

TOTAL BUDGET VS SALARIES Narration HSRC (Incl. AISA) 2016/17 R’M 2017/18 Total Budgeted Revenue 510 524 540 115 % Increase 5.6% 5.5% Salaries Approved Budget 268 292 274 259 2.2% % of salaries to total budget 53% 51%

INSTITUTIONAL RISKS Dependence on external research income to deliver on mandated objectives Immigration act regulations – hosting African Research Fellows Attraction of critical skills (impacting on deliverables, performance targets) AISA strategy and programme of work The dependence on external research income to deliver on mandated objectives remains a major risk. The external funding environment is becoming increasingly competitive and resources are becoming more limited. This places the HSRC, or some of the research programmes of the HSRC, at risk of not meeting external targets and therefore not being financially viable in the medium to longer term. At the same time, over-dependence on external funds may lead to the HSRC responding to priorities of external parties, rather than to remain true to its mandated objectives and stated intention to focus strongly on aspects of poverty, inequality and inclusive development. The over-dependence on external funds furthermore place HSRC research staff under undue pressure, leading to burn-out or high levels of staff turnover. Time and efforts have to be spent on developing and submitting funding proposals, and the management of projects alongside pressure to complete projects on time, and within budgetary constraints, may place pressure on quality of work as well. Regulations under the immigration act place pressure on the HSRC to meet its target of appointing African Research Fellows, and a very small pool of available skilled staff make it difficult to meet stretch targets of senior researchers who are African and female, respectively. AISA research staff will have to adopt and implement a new strategy and programme of work, which will also require new ways of doing things. This poses a risk to the organisation – some staff members may find it difficult to adapt, which may result in losses in productivity or higher levels of turnover.

APPRECIATION The Portfolio Committee on Science & Technology, Minister, Deputy Minister and Department of Science and Technology Funding agencies Board chair, members, committees Staff of the HSRC The dependence on external research income to deliver on mandated objectives remains a major risk. The external funding environment is becoming increasingly competitive and resources are becoming more limited. This places the HSRC, or some of the research programmes of the HSRC, at risk of not meeting external targets and therefore not being financially viable in the medium to longer term. At the same time, over-dependence on external funds may lead to the HSRC responding to priorities of external parties, rather than to remain true to its mandated objectives and stated intention to focus strongly on aspects of poverty, inequality and inclusive development. The over-dependence on external funds furthermore place HSRC research staff under undue pressure, leading to burn-out or high levels of staff turnover. Time and efforts have to be spent on developing and submitting funding proposals, and the management of projects alongside pressure to complete projects on time, and within budgetary constraints, may place pressure on quality of work as well. Regulations under the immigration act place pressure on the HSRC to meet its target of appointing African Research Fellows, and a very small pool of available skilled staff make it difficult to meet stretch targets of senior researchers who are African and female, respectively. AISA research staff will have to adopt and implement a new strategy and programme of work, which will also require new ways of doing things. This poses a risk to the organisation – some staff members may find it difficult to adapt, which may result in losses in productivity or higher levels of turnover.