P D G Isandla Institute Pro-poor interventions for LED The case for sectoral targeting Chris Rogerson - 19 November 2002

P D G Isandla Institute Paper structure WOverview of key debates and trends internationally WPro-poor LED in South Africa WPro-poor LED: The case of Johannesburg - selective targeting S The case of urban agriculture S The case of the clothing industry S The case of Tourism

P D G Isandla Institute Overview Apparent convergence - LED interventions Four leading edges S competitiveness of localities, S growth through property-led city improvements  ‘ job creation from the inside ’ - business retention and SMME support S Community development support - community enterprises or cooperatives

P D G Isandla Institute Overview Divergence S Anti-poverty measures are rarely the central focus of LED in the developed world S Poverty alleviation is higher on the agenda in the developing world

P D G Isandla Institute Overview Spectrum of LED interventions - market led (pro-growth) to market critical (pro-poor) WMarket led - adjusting to macro-economic reforms WMarket critical - bottom up approach aimed at self reliance, empowerment, participation, local cooperation and environmental sustainability

P D G Isandla Institute Pro-poor LED in Cities Municipalities well placed to undertake long- term planning in poverty alleviation S Regulatory frameworks (laws and regulations related to town planning, public health, building and land development) S Access to municipal services S Employment creation (attracting new investment, support for informal economy, labour-based public employment)

P D G Isandla Institute LED in South Africa Characterised by three waves S Pro-growth, market led (late 80s and early 90s) S Augmented by focus on business retention and local business support First two waves led at the local level S Pro-poor focus as DPLG has taken the lead mandate for LED policy formation

P D G Isandla Institute Emerging policy S LED linked to developmental local government S Attempts to balance competitiveness with poverty alleviation and job creation S Focus on state-society relations S New and reformed inter-government relations S Includes both market-led and market critical aspects S Anchored on service delivery and supporting subsidies

P D G Isandla Institute The case of Johannesburg S Refers to 2030 document - and in particular the endorsement of targeted or selected sectoral interventions as a methodology  Analysis of sector ’ s attractiveness and competitiveness (GGP, employment growth and multiplier effects) S In Jhb, high skill and knowledge based services sectors emerge as the most competitive and attractive using this criteria

P D G Isandla Institute The case of Johannesburg Argues the case for a similar methodology with a focus on poverty alleviation The selection methodology for a targeted pro- poor LED might focus instead on the relative attractiveness of sectors in terms of measures of labour intensity or skill levels and the degree to which sectors provide substantial livelihood opportunities for the most vulnerable or core groups of the urban poor

P D G Isandla Institute Urban agriculture WRationale S food security S easy in, easy out entrepreneurship (income) S gender opportunities (and other vulnerable gps) S community focus - inclusive S public health spin-offs

P D G Isandla Institute Urban agriculture WMidrand case-study S Ivory park S Food security S Goes beyond survivalist activities - part of a strategy to be an eco-city S Could become more formalised - Organic market S Absence of a coordinated set of policy interventions cause for concern

P D G Isandla Institute Clothing industry S Not prioritised in terms of current methodology S Decline in the sector driven by: high wages apartheid legislation low productivity focus on low-end of the clothing market resistance to change

P D G Isandla Institute Clothing industry S Largest industrial sector in the inner city S Growth in informal manufacturing (largely Black owned) S Majority of these entrepreneurs are women S Sector enjoys little support - although some support from Johannesburg Development Agency S Would benefit from selective targeting approach

P D G Isandla Institute Pro-poor tourism W3 broad areas S MICE (Meetings, Incentives, Conferences, Exhibitions) S Regional retail tourism S Cultural tourism

P D G Isandla Institute Pro-poor tourism WLabour intensive WProvides opportunities across various skills levels WCan provide low-skill opportunities with appropriate training WSpin-offs via affirmative procurement, outsourcing, subcontracting

P D G Isandla Institute Conclusion The key argument proposed in this analysis is that sectoral targeting can be deployed usefully to support the crystallisation of pro-poor urban LED interventions