South Africa is confronted with a triple challenge. On one hand, we have the twin challenges of unemployment and poverty and on the other an aging and failing infrastructure.
Unemployment
Unemployment figures indicate that over 4 million people are unemployed in terms of the strict definition and over 8 million in terms of the broad definition, but the number of unemployed is steadily rising on a month-by-month basis.
It is a fact, that the South African economy is undergoing a major structural transformation, which manifests itself in a decline in labour intensive modes of production, caused in part by declining primary sector activity. In turn, this leads to decreased demand for unskilled labour, and thus a major fall in the total employment levels.
While new jobs have been created by the economy since 2003, these employment opportunities have not significantly dented unemployment. Part of the problem lies in what the Accelerated and Shared Growth Initiative
(ASGISA) characterizes as a mismatch between employment opportunities and existing skills levels.
It is thus evident that the current economic growth rate is unable to absorb unskilled and the semi-skilled labour in the short to medium term unless major interventions are undertaken by government and by the business sector, either individually or in partnership.
Poverty
Linked to the challenge of tackling rising unemployment, is dealing with poverty. It is estimated that there are over 5 million people living in households with average income levels of between R 800 and R1500 per month, and about 3 million living below the poverty line, with incomes being below R 800 per month per household.
Joblessness and poverty are associated with social exclusion, susceptibility to extremist ideologies, high levels of violence, substance abuse, criminality and overall loss of hope.
There is therefore a particular urgency to engage in policy dialogue and pursue new income creation models and programmes. It is a recognized fact that fresh ideas are needed to address the poverty problem.
In the search for new directions, we must keep in mind that poverty and inequality are the results of different processes and situations and subsequently, the one size fit’s all model should not be used.
For example:
Some of the people that fall within the poverty definition, do get some form of wages, but may be exposed to poor work conditions, income insecurity, being on the brink of becoming homeless, or they just lack the skills to be considered for better paying positions or jobs. But we must also not forget that there is also another group of people whose economic distress is largely based on chronic and severe lack of employment or income generating opportunities.
Infrastructure
“Infrastructure maintenance must be regarded as a strategic tool to promote improved service delivery, to unlock funding to extend infrastructure to historically disadvantaged communities, and to support the nation's economy. Maintenance of existing infrastructure should not be seen as of secondary importance to the apparently more attractive prospect of new
infrastructure” (Excerpt from 2006 strategy document)
It is a known fact, that to have a sound economy, good social dispensation and quality of life, you need to have good and sound infrastructure in any country, and South Africa is no different.
For the past 15 years the South African government has focused its endeavours on building new infrastructure rather than upgrading or maintaining its existing infrastructure. The result of the strategy, has led to a breakdown of the infrastructure maintenance and upkeep programmes … government buildings are poorly maintained, hospitals and health services are in serious disarray, waste treatment plants are on the verge of collapse, roads are a safety and health hazard … in fact, the entire South Africa infrastructure is at a risk of collapse.
In August 2006, the Department of Public Works, released the National Infrastructure Maintenance Strategy (NIMS) in support of ASGISA and government growth objectives such as the Expanded Public Work Programmes. This strategy was passed in parliament later that same month.
Empowerment Gateway representatives studied various documents, and held numerous discussions with a vast number of individuals and organisations that were involved in this programme directly or indirectly, including businesses, NGOs, Civic Organisations and government representatives.
According to the NIMS programme, the government intended to create 12 full time jobs per million Rand spent (6 direct and a further 6 indirect or induced), and they estimated that a maintenance budget of R20 billion for one year, would provide employment for approximately 240 000 people.
An analysis of the funds spent by government on the infrastructure portion of the NIMS programme, indicates that on average less than 10% is made available as a poverty and unemployment alleviation tool, but without a long-term income earning sustainability. For example, in 2008, a budget of R 10.5 billion was allocated for infrastructure related projects. Fees for expenditure and consulting amounted to R6.8 billion, and for once-off or part-time employees only R 650 million was spent.
We are also unsure of the percentage of funds that has been applied to repair the current road infrastructure that covers approximately 120 000Kms. AA reports, that more than 78 000Kms, are in need of some or other form of repair and maintenance.
This represents 70% of the total road surface infrastructure in South Africa. Most of the 78 000 km of surfaced roads is confronted with the curse of “potholes”. In fact it is estimated that there could be as many as six million potholes currently.
In conclusion
Lack of proper infrastructure repair and maintenance was, and still is a fact of life that negatively affects all South African residents and one that negatively affects efforts to alleviate poverty and unemployment.
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