1

The Expanded Public Works Programme (EPWP) of

South Africa

Irwin Friedman, Research DirectorHealth Systems Trust, South Africa

Acknowledgementsto the EPWP and the Development Bank

of South Africa

Background to the programme

2

Structure of this presentation

• Background on South Africa• Some challenges to overcome• National Public Works

Programme• The EPWP• Summing up

South Africa

4

People and unemployment

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

Number

0-4 5-9 10-14 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70-74 70-79 80+Age Groups

South African Population 2006

People

Unemployed4-8 million,

Dependson definition

25-50%

Many deaths especially young

women due to HIV

2/3 of the population are below 35

33 - 35 million people

TotalPopulation50 million

in 2010

Life expectancyWomen 55 years

Men 53 years

5

Some challenges facing South AfricaSouth Africa faces some exceptional

challenges to poverty & health• Racial inequity over many generations• Social fragmentation and diversity of culture• Multiple burdens of epidemic disease• High levels of migration• High levels of unemployment & poverty• Mid-level income, but high levels of inequity• Strongly dualistic economy

Global life expectancy

Global HIV 2007

• Over a quarter of the people severely affected

Global TB 2008

9

Poverty & unemployment

• Trends are downwards since early 2000

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Strict unemployment Poverty %

10

Growth trends in the SA Economy

• Economy needs mechanisms for redistributing the growing wealth

Gini coefficients

12

The inequitable dual economy

• Few people• Extreme wealth• Meaningful work• Considerable well-being• Enormous capacity• Threatened by crime• Capital intensive• Vast increasing output• Monopolises resources• Full employment

• Many people • Severe poverty• Menial labour• Disease & social problems• Capacity deficiencies• Crime inducing• Surplus labour• Diminishing output• Market exclusion• Massive joblessness

ELR > EPWP

Government anti-poverty strategies

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(not mutually exclusive)

Reduce poverty bythe alleviation/reduction of

unemployment

Strategies

Utilise governmentexpenditure to

alleviate and reduceunemployment

Balanceeconomicgrowth with

growth in EAP

Govt. budget/procurement Regulation Education

policyMacro-economic

policies

Short/medium-term

Improveenabling

environment

Interventiontype

Improveeducation

sytem

Medium/longterm Long-term Medium/long

termImpact

timescale

(EAP = economically active population)

Improve socialsecurity net

Govt. socialwelfare budget

Short/medium-term

Expanded PublicWorks

ProgrammeGoal

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National Public Works Programme

Employment & Unemployment in South Africa

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•=•FULL TIME WORK6.6 million•CORE

•OUTSOURCED 3.1 million •TEMP/PART-TIME/DOMESTIC

•NON-CORE

•PERIPHERY

•UNEMPLOYED=8.4 million broad definition

•INFORMAL WORK = 2.2 million

•Skilled 2.6 million

Potential EPWP Target Group•Unskilled 5.8 million•(incomplete Secondary School)

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16 years of innovation in employment intensive public works

• Aims to provide an opportunity to earn & learn.• Since 1994, Government created opportunities for

implementing employment intensive public works primarily in the infrastructural sector.

• In 2003, programme broadened the infrastructure focus as the EPWP Phase One– Four sectors infrastructure, environment, social &

economic• Focused on unemployed, under-skilled, poorly

qualified, especially youth, women & disabled• In 2009 entered Phase two – NGO sector replaced

economic sector

Background to targets• State President’s State of the Nation Address Feb 03• Growth & Development Summit June 2003• Cabinet approved conceptual framework Nov 2003• Phase One EPWP – five years till 31 March 2009

– Target one million jobs• State President’s State of the Nation Address Feb 2009• Phase Two EPWP – 5 years till 31 March 2014

– Target five million jobs ; 500,000 for the first year– Actual achievement: 490,000 by 31 March 2010

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EPWP as a public work creation or employer of last resort programme

• The EPWP draws a proportion of the unemployed into productive work to redistribute national income, using public budgets in four sectors, infrastructure, environment, social and economic develoment, now the NGO sector

• Labour-intensivity is coupled with training to develop people, social capital as well as physical infrastructure

• Workplace-acquired skills are intended to lead participants to other work opportunities in the labour market or in entrepreneurial activity

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EPWP Objectives• Draw significant numbers of the unemployed into

productive work to enable them to earn an income • Provide unemployed people with education, skills

&income in temporary work governed by a code of good employment practice or learnership employment conditions

• Ensure participants are either enabled to set up their own business/ service or become employed.

• To utilise public sector budgets to reduce and alleviate unemployment

• Build infrastructure, improve environment and enhance social capital

• Strengthen government service delivery

How does the EPWP work?

Early childhood education

Home & community based care

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Increase in public works employment

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

96/97 97/98 98/99 99/00 00/01 01/02 02/03 03/04 04/05 05/06 06/07

Num

ber

unem

ploy

ed

Employed in Community Public Works

Community Based Public Works Programme Expanded Public Works Programme

Phase 2Scaling up

Phase 1

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Significance of the scale of programmes

< 5% of the unemployed are involved before 2009; may grow to 10%

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

96/97 97/98 98/99 99/00 00/01 01/02 02/03 03/04 04/05 05/06 06/07

Num

ber u

nem

ploy

ed

Employed in Community Public Works Narrow definition Expanded definition

Community Based Public Works Programme Expanded Public Works P

Phase 2

scaling up

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Achievements of the EPWP• Providing meaningful employment on a albeit

small scale within the short-term;• Redistributing income to poor households;• Reducing social inequity & crime;• Helping to reach social targets by mass

mobilisation of additional social services;• Provision of widescale training opportunities• Integrating the dual economy• Building social & infrastructural capital• Stimulating pro-poor economic growth

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EPWP growth

27

EPWP by sector

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Work opportunities are shorter than anticipated

Average length of a Work Opportunity, days

88

132

51 46

165230

0

50

100

150

200

250

Infrastructure Environment Social

Projected length of WOAchieved length of WO

•Income per beneficiary also smaller!

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Impact on the lives of participants • Provides basic income that elevates

households out of poverty;• Improves dignity of individuals who earn

their stipends, especially young women;• Provides structured learning environment

on the job;• Creates opportunities for people to get

longer-term employment;• Is stimulating pro-poor economic growth

– good for women, children & the vulnerable

Web based monitoring

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Potential cost of scaling up

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

1 2 3 4 5 6 7 8

Millions of unemployed people given work

% o

f all

Gov

erm

ent E

xpen

ditu

re

2007

/200

8

Infrastructure sector Environment sector Social sector

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Creating decent, meaningful work

Meaning& esteem

Exercise& strength

Socialcapital Work

Experience & skill

PhysicalAssets

Engagement &participation

Workethic

Income &Household security

Summing up

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Vicious cycles

Joblessgrowth

Crime &conflict

Poor capacity

Disease & destruction Poverty

34

Creating virtuous circles

Meaningfulwork

Peace &cohesion

Wisdom &knowledge

Health &Well-being Wealth

Thank you

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“Without work all life goes rotten, but when work is soul-less, life stifles and

dies”Albert Camus

Irwin Friedman irwin@hst.org.za www.hst.org.za

www.epwp.gov.za