Gauteng Inter-Governmental Conference: “Enhancing Co-operative Governance through

Information Sharing and Consultation” 22 November 2002

The South African Cities Network as a Developmental Strategy – Andrew Boraine, Advisor to Minister FS Mufamadi, Provincial

and Local Government

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Impact of global economic integration and the changing role of cities

`De-bordering’ of national and local economies Concentration of economic activities in `global city-

regions’ Cities as `territorial platforms from which groups of

firms contest global markets’ Importance of cities as centres of innovation and

learning within knowledge-based economy

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Negative trends within developed global city-regions due to global economic

integration…

Xenophobic responses to cross-border labour migration

Shift from traditional city centres to multi-nodal urban systems

Widening of inequalities Withdrawal of wealthy communities into `privatopias’ Growing mismatch between jobs, housing and transit

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…magnified in cities in developing countries…

Growth of hyper-large cities Inequality and marginalisation Social and spatial segmentation Fortressed communities Retreat of public space Urban violence Fewer resources to deal with greater problems

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and potentially negative in South Africa because of…

Historically distorted national and local spatial economies and urban form (`displaced urbanisation’)

Unchecked expansion of multiple business nodes and peripheral location of low-income housing and informal settlements

Inadequate public transport systems for communities trapped in `zones of poverty’ to be able to gain access to the urban economy

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Cities and the national economy

In SA, 20% of towns and cities produce 82% of GDP 80% of the economy’s manufacturing is concentrated in six

metropolitan regions During the 1990s, 58% of all new economic growth took place in

just 4% of the country’s area In the channel between Johannesburg and Tshwane which

makes up just 0,2% of the country’s area, 24% of GGP growth

in the 1990s took place There is a direct correlation coefficient between the level of

urbanisation and GDP per capita, although lower in SA than in comparable developing economies

Urban development is a national economic policy issue

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Table 1: Contribution of South Africa’s Six Metropolitan Areas to Total GDP, 1990, 1996 and 2000 (%) 

CITYPop 2001

% Contrib to SA

GDP in 2000

%Contrib to SA GDP in

1996

% Contrib to SA

GDP in 1990

Coastal City with Port

Average Annual

Pop growth rate, 1996-2001

Jo’burgCape TowneThekwiniTshwane

EkurhuleniN.

Mandela

2 962 759

2 858 743

2 981 237

1 454 290

2 054 133

1 015 334

14.98%14.01%7.77%8.55%7.78%2.46%

14.16%12.82%8.06%7.88%8.00%2.31%

14.22%11.90%8.18%9.06%8.67%2.58%

NoYesYesNoNoYes

1.02%1.01%0.96%1.03%1.01%1.02%

Total % 13326496(31%)

55.6% 53.2% 54.5%   1.5%(Source of data: Naude and Krugell (2002) `An inquiry into cities and their role in subnational economic growth in South Africa’, Potchefstroom University)

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Goals of SA Cities Network

Promote good governance and management of South African cities

Analyse strategic challenges facing South African cities, particularly in the context of global economic integration and national development

Collect, collate, analyse, assess, disseminate and apply the experience of large city government in a South African context

Promote a shared-learning partnership between different spheres of government to support the governance of South African cities

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Membership and Governance Structure

Buffalo City Cape Town Ekurhuleni eThekwini Johannesburg Mangaung Msunduzi Nelson Mandela Tshwane

The South African Cities Network Company is a non-profit voluntary organisation owned by and accountable to its members via a Board of Directors

The Cities Network will operate through a secretariat hosted by the City of Johannesburg, and programme managers located in various cities

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SALGA SA CITIES NETWORKRepresents interests of all SA municipalities, including cities, nationally, regionally and internationally

Information and knowledge sharing networkDoes not represent the views of cities individually or collectivelyNot an inter-governmental forum

Acts on behalf of municipalities in policy-making processes

Generates recommendations and options for members and partnersPartnership with SALGA to replicate information more broadly

Capacity-building programmes, including knowledge-sharing, for all municipalities

Differentiated, specialist support programme targeting cities as engines of the national economyFocus on `cities’, not just `municipalities’: inter-governmental and multi-sectoral

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Intergovernmental(vertical) and multi-sectoral information

and knowledge sharing

City to city (horizontal)information and knowledge sharing

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Networking and Partnerships

National and Provincial Government Departments Regional and global city networks, in particular,

African cities Non-governmental organisations Private sector organisations

Universities and research institutes

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Thematic focus areas

Metropolitan Economic Strategy (DTI; Econ Dev MECs)

Urban Poverty Research (DPLG) AIDS Compentant Cities (Dept Health; AMICAALL) Urban Development Indicators (Depts of Housing and

Health; StatsSA; UN-Habitat GUO) Transport (Dept of Transport)

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Metropolitan Economic Strategy

Strategy, not just projects Intergovernmental and multi-sectoral, not just LED Growth and poverty reduction (business/ market and

community/ equity integration) Mainstream within municipality (cross-cutting) not

add-on (line function) Cooperation between cities based on identification of

comparative advantage within sectors, not `race to the bottom’ chase for foreign direct investment through incentives

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Metropolitan Economic Strategy Sub-

programmes Policy, strategy and implementation guidelines Research: urban/ rural linkages; location of

production in space; integration of formal and informal economies

Training and peer-to-peer support Sectoral/ industry cluster/ network support strategies Identification of intergovernmental and multi-sectoral

roles and responsibilities (e.g. transport, safety & security)

Role of parastatals (e.g. ports, airports, telecommunications)

Workforce skills development

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Urban Poverty Research ProjectFurther information from the project is available on www.sacities.net

Recognising and understandingpoverty

Recording and monitoringpoverty

Responding to poverty andintervening

South Africancommitments tosustainable urbandevelopment,Different approaches toaddressing urban poverty,The dynamics of urbangrowth in global, regionaland national patterns ofpoverty,The urbanisation ofpoverty,Key definitions,Web Sources on urbanpoverty

Census-based Profiles ofSACN members – data bycity and sector,Composite indicatorsincluding:- City Development Index,- Gini coefficients,- Slum index,- Housing need index.- Demographic trends- Population pyramids- Urbanisation rates

Urban development andHIV/AidsPro-poor local economicdevelopment – a sectoralapproachEnvironment and povertyreliefTransportation, spatialplanning and povertyalleviationPro-poor service delivery –affordability and willingness-to-pay

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•APPROACH TO POVERTY •TYPE OF INDICATOR

INCOME PERSPECTIVE:This is the argument that categorises people as poor if their income falls below a defined income measure.

GGP, welfare payments, wage levels and poverty datum lines are income indicators.

BASIC NEEDS: This is one of the most influential international perspectives on poverty, especially in the context of the South or ‘third world’ where millions of people live without adequate food, shelter or sanitation. Basic needs can include ‘hard’ infrastructure such as storm water or

‘social’ infrastructure such as schools or clinics. 

There are a number of well known poverty indicators that come out of a basic needs perspective, for

example: access to potable water, literacy, life expectancy and nutrition levels.  

SOCIAL EXCLUSION: Social exclusion refers to the fact that despite welfare and general wealth, there remains a group who are excluded from the mainstream benefits of the society and who are prevented in some way from gaining from the general prosperity.

Indicators of social exclusion emphasise political, social and economic components of poverty and inequality and are thus either multi-part or composite indicators. These indicators are often

qualitative measuring, for example, racism or sexism.  

SUSTAINABLE LIVELIHOODS: This approach stresses the involvement of individuals and communities in defining and solving their own poverty. The assumption is that everyone is not poor or vulnerable in the same way and that identifying local variations in poverty or deprivation are crucial to effective development strategies.

Community generated indicators focus on vulnerability or the inability to cope with hardship rather than poverty, so crucial issues that emerge may not be the lack of an income or even jobs but rather factors such as disability, the breakdown of the family or social problems like alcoholism.

LOCALITY: Space or geography is seen by some to be an independent variable in the poverty equation.

Indicators used by poverty analysis interested in locality include segregation indices, transport indicators and other mapping tools. The use of GIS facilitates a locational analysis of most other indicators.

ENVIRONMENTAL JUSTICEEquitable access to a healthy, pollution free environment and to the environmental resources required to support a healthy life without compromising the opportunities of future generations.

Indicators typically found in the State of Environment reports including air pollution, water quality and environmental health indicators.

HUMAN DEVELOPMENT: The emphasis here is on a holistic understanding of poverty where anti-poverty action enlarges peoples’ life choices. Specifically this refers to enabling individuals to lead a long and healthy life, in which they are educated and have access to a decent standard of living. Included in this notion of poverty alleviation is ensuring that human rights are upheld and that political and social freedoms are secure.

Indicators are varied and complex indicators that reflect the diversity of the poverty condition. The Human Development Index and the Gender Development Index are well known examples. A more

recent measure designed specifically for cities is the City Development Index. 

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SA City Development IndexPMB/Msunduzi Standard of Living Index CDI

39.6

11.0

54.0

34.7

49.0

49.3

0.0

20.0

40.0

60.0

80.0

100.0CDI =

Infrastructure =

Waste =

Health =

Education =

City Product =

All Cities Standard of Living Index CDI

35.13

56.00

75.89

56.30

61.92

56.30

0.00

20.00

40.00

60.00

80.00

100.00CDI =

Infrastructure =

Waste =

Health =

Education =

Product =

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Introducing SA Cities Poverty Indicators

South African Poverty Indicator (SAPIC)

0

20

40

60

80

100SAPIC

Safety and Security

Good governance

Spatial integration

Social and economic exclusion

A poverty adjusted CDI

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AIDS-Competent CitiesExternal responses Internal Responses

Multifaceted inter-governmental intervention strategies:

•Prevention education

•Treatment, care, support

•Targeting vulnerable groups

•Disaggregated local database

•Monitoring and evaluation

Integrated, multi-sectoral strategies:

•Beyond a `health’ response

•Mainstream within IDP and budget

•Roles and responsibilities of all Depts

•Political and managerial champions

Community mobilisation and multi-stakeholder partnerships, with clear roles and responsibilities

Workplace responses:

•Prevention and care

•Management responses

•HR policies

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Instruments for information and

knowledge-sharing Thematic working groups (quarterly meetings) Peer review (e.g. Jo’burg; Buffalo City) Documentation of best practices and innovations

(e.g. Mangaung community-based planning; Msunduzi HIV/AIDS strategy; Cape Town computer-aided mass appraisal system)

Electronic data base (www.sacities.net) Joint research Quick briefs and special reports Seminars, workshops and training Calendar of activities and events