extraction of our natural resources: how to promote broad-based sustainable...

EXTRACTION OF OUR NATURAL RESOURCES: HOW TO

PROMOTE BROAD-BASED SUSTAINABLE GROWTH AND

SOCIO-ECONOMIC DEVELOPMENT IN AFRICA

LONMIN PUT YOUR HOUSE IN ORDER!

TITLE OF THE PRESENTATION2

THE BIG STINK: LONMIN’S 3 R20 MILLION TOILETS AN INSULT TO MINE WORKERS

Smoke & Mirrors: Lonmin’s failure to address housing conditions at Marikana3

OVERVIEW: STATE OF HUMAN DEVELOPMENT IN SOUTHERN AFRICA

TITLE OF THE PRESENTATION

• Impressive rates of economic growth in Africa in the past ten years or so about 5% on average

• Slightly lower GDP growth rates in Southern Africa over past 15 years at 4.48% 2000-2015

• Poverty and inequality, however measured, have remained stubbornly high in sub-Saharan Africa, and more specifically in the Southern Africa region

• Labour markets are supply driven rather than demand driven: many people are losing jobs and or labour markets are not absorbing many of those, including graduates, in search of jobs, hence high-income poverty;

• The state and labour market’s inability to exploit the youth dividend (bulge) has resulted in political and economic instability with regional states responding through excessive force and repression;

• Situation further worsened by the state’s inability to invest in economic, social and cultural rights is constrained by its inability to close crucial tax leaks resulting in billions of revenue lost through illicit financial flows

4

AFRICA RISING? FOR WHO: DUALISTIC AND ENCLAVE ECONOMIES?

5

0

1

2

3

4

5

6

7

8

9

8.96

4.23.95

2.43

5.31

7.68

4.92

3.68

2.56

5.44

0.74

Real GDP Growth Rate 2001-2015 (avg)

AFRICA RISING? PARALLEL ECONOMY, MINING SECTOR

6

AFRICA RISING? ENCLAVE ECONOMIES, MAJOR PLAYERS

7

48%

10%

18%

5%

17%

2%

ANGLO AMERICAN

Iron Ore Coal Copper Nickel Diamonds Other

87%

2%6%

4%1%

RIO TINTO

Iron Ore Aluminium Copper Diamonds Other

AFRICA RISING? SDGS PRIORITIES FOR CITIZENS AND BUSINESS

8

AFRICA RISING? LEAKAGES: ILLICIT FINANCIAL FLOWS

9

AFRICA RISING? DEVELOPMENT FOR WHO?

10

AFRICA RISING? DEVELOPMENT FOR WHO? MIDDLEBURG (ARNOT)

11

INEQUALITY: LEAVING THE MARGINALISED

BEHIND


• Southern Africa is characterised by skewed distribution of resources and income and the majority of the people is excluded from accessing land and controlling the economy.

• Herbert Jaunch and Deprose Muchena (2011) in “Tearing Us Apart: Inequality in Southern Africa” argue that inequalities in Southern Africa are due to grafted capitalism (enclave economies and illicit financial flows), which have not transformed the economy as a whole but only a small formal enclave sector, thus failing to produce dynamic inclusive growth and development.

• Challenges continue to persist to reduce income inequalities and gender inequality as women continue to be marginalized in all major economic sectors and even more worrying are the number of women who continue to suffer from poverty as a result of patriarchy.

• The challenge of unemployment, poverty and inequality continue to hamper progress in uplifting the majority of southern African citizens out of poverty and closing the gap between the haves and have nots

• SDG 10: Reduce inequality within and among countries: Current trajectory on inequality demonstrate the high levels of gini-coefficient and income inequality remains a worrying indicator of lack of employment opportunities

12

42

.7

35

.5

52

.5

44

.1

43

.9 45

.7

63

.9

63

.1

51

.5

57

.5

35

.8

46

.2

21

.9

33

.5

24

.8

40 40

.2

21

.7

25

.7

35

37

.2

26

.8

34

.6

32

.1

24

.3

30

.2

30

.1

27

.8

27

.8

18

.1

26

.8

23

.8

17

.8

48

24

.3

59

65

65

46

52

61

5

Income Inequality Inequality in Life Expectancy

Inequality in Education Gender Inequality

JOBLESS GROWTH AND NEETS


0

10

20

30

40

50

60

70

Lesotho Malawi Namibia South Africa Swaziland Zambia Zimbabwe

Unemployment Rate in Select SADC Member States

Unemployment Rate Female Unemployment Rate Male

Youth Unemployment Rate Female Youth Unemployment Rate Male

LIVED POVERTY EXPERIENCE

Title of Presentation

• Lived Poverty Index scores range along a five-point scale from 0 (no shortage of any basic necessities) to 4 (constant absence of all basic necessities)

• The region continues to endure deteriorating standards of living, poor ENJOYMENT to ESCR ;

• For example in Swaziland: 51% often went to bed without food in past year (2015); 47% without water; 33% experienced shortages of medicines at local clinics; and 68% reported going a year without any income.

• In Mozambique according to latest figures from the 4th National Poverty Assessment, the number of absolutely poor increased from 11.1 million during the 2008/09 to 11,8 million in 2014/15 NPA

• UN HDI 2015, 30% of the population in LDCs in the region such as Mozambique, Malawi and Madagascar live on less US$1.25 per day

14

0.650.68

0.96

1.031.08

1.14

1.361.42 1.44 1.45

1.55

Lived Poverty Index

FOOD INSECURITY


• El Nino phenomenon threatening 33 million Southern Africa residents

• Water stress level in the region at critical levels medium and extremely high 2020-2040 dam levels are drying out due to 2015-2016 drought

• Zambia ranked 3rd and 1st, Globally and regionally, respectively. Yet country imported 48,000 metric tons of maize meal;

• In Zimbabwe the El Nino phenomenon has resulted in an increase of 2,8 million people to 4,1 million people become food insecure since the beginning of the year.

• Women in rural areas likely to be most affected, according to the Africa Food Security Urban Network, in rural households (34%) were female-headed households compared to only 12% of the surveyed households having a male-headed household.

15

39

35.4

32.831.7 31.7

28.8

26.9

24.223 22.7

11.8

0

5

10

15

20

25

30

35

40

45

Global Hunger Index 2016 by Ranking

NO ONE IS LEFT BEHIND: SDGS


• The SDGs mark a significant shift from the MDGs with a much stronger focus on economic and environmental sustainability, including new goals on food security, inequality; energy, sustainable growth and sustainable consumption and production;

• Leave no one behind: Includes eradication of extreme poverty and meeting basic needs for nutritious food, health, education and access to essential service for all people everywhere. Also includes resilience at the level of individuals, households, communities, population groups and nations;

• Experience with the MDGs has demonstrated that “top-down approach” from the UN to imposition of developmental goals to the Global South will be met with reluctance or unwillingness to implement;

• Therefore, the “Leave No One Behind” under the SDGs is aimed at goals being a collective agenda that is cognizant of the common but differentiated responsibilities taking into consideration the regional and local contexts within which the SDGs will be implemented and realized.

16

WHAT NEEDS TO BE DONE?


• The region needs its own socio-economic development approach, informed by a new vision for the African economy (Regional BIG; Support of informal economy);

• Given that what needs to be done is humongous and requires extensive mobilisation and consciousness;

• Regional governments should at minimum get policy right and pursue implementation effectively. In the case of poverty and inequality;

• The region should design and implement the policies and strategies that address the various dimensions of poverty and the different aspects of inequality;

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REGIONAL & INTERNATIONAL LEGAL INSTRUMENTS


• Universal Declaration of Human Rights

• International Covenant on Civil and Political Rights

• International Covenant on Economic, Social and Cultural Rights

• -Right to Health (Article 12)

• Right to Education (Article 13)

• Right to Work (Article 6)

• Right to Social Security (Article 9)

• Africa Charter on Human and People’s Rights

• SADC Charter on Fundamental Social Rights

HOW CAN WE PROMOTE BROAD-BASED SUSTAINABLE GROWTH?


• AMV from rhetoric to action

• Universal basic income grant

• Sovereign Wealth Fund

• Public interest litigation

• SADC TRIBUNAL

STRENGTHENING MONITORING MECHANISMS


• Parliament: Oversight Bodies

• Civil Society

• Human Rights Commissions

• Judiciary

• Given the multidimensional and indivisible nature of these rights, monitoring is a complex and demanding task, which must consider the following:

The normative content of each right;

The concomitant obligations of duty bearers: The state to respect, protect, promote and fulfil each ESCR and the efforts they undertake to meet those obligations

The interdependence and indivisibility of all rights, including ESCR

Cross-cutting human rights principles such as non-discrimination, equality, participation, accountability and the rule of law

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