Political Economy of Agriculture in SA. Trends and perceptions

Similar documents
Land, youths and radical economic transformation : Whither South Africa?

National Foundations Dialogue Initiative (NFDI) Inaugural National Dialogue Session. Group Discussions

The State of Politics Is expropriation a proxy for ANC factions? Die stand van die politiek Is die onteieningsdebat n proksie vir ANC verdeeltheid?

The structure of the South African economy and its implications for social cohesion

SUBMISSION ON MOTION TO EXPROPRIATE LAND WITHOUT COMPENSATION AFRICAN CHRISTIAN DEMOCRATIC PARTY 14 JUNE 2018 The African Christian Democratic Party

The key building blocks of a successful implementation of the Sustainable Development Goals

Prospects for Land Expropriation without Compensation

Address by Deputy President Cyril Ramaphosa at the NEDLAC Labour School, Roodevallei Conference Centre, Pretoria

Globalization and American inequality. A New Core and Periphery in the U.S.

Globalization and American Inequality. A New Core and Periphery in the U.S.

President Jacob Zuma: Broad-Based Black Economic Empowerment Summit

Mission. About the Council

PART I: OUR CONVERGING CRISES

Globalization and Community. How does Globalization lead to Cultural Conflict?

EADI conference: Margaret Chitiga, Univ of Pretoria. 21 Aug 2017

2018 STATE OF THE NATION ADDRESS KEY MESSAGES

Symbolic support for land reform as a redress policy in South Africa

Land reform in South Africa and expropriation without compensation. Peter Setou Chief Executive Vumelana

Frequently asked questions

a model for economic and social development in Scotland

Opening Statement for the Senate Standing Committee on Foreign Affairs and International Trade

Social Problems, Census Update, 12e (Eitzen / Baca Zinn / Eitzen Smith) Chapter 2 Wealth and Power: The Bias of the System

The Great Depression

Concluding Remarks of Co- Chairs 6 th Session of Open Working Group on Sustainable Development Goals Friday, 13 December 2013

Overview. Frans Andriessen

POLI 12D: International Relations Sections 1, 6

Mark Scheme (Results) Summer Pearson Edexcel International GCSE in Global Citizenship 4GL0 (Paper 01)

Addressing the investment challenges faced by South Africa and the rest of Africa. Trevor Manuel 30 July 2015

Outside and inside Norway s agreements with the European Union

Civil Society and Counterinsurgency. by A. Lawrence Chickering

LESSONS FROM MARIKANA

to edit Master title style

Mexico warns of global impact

ECONOMIC SYSTEMS AND DECISION MAKING. Understanding Economics - Chapter 2

Is Economic Development Good for Gender Equality? Income Growth and Poverty

Weekly Geopolitical Report

Trade and Industry Budget Vote address delivered by Deputy Minister of Trade and Industry, Mr Mzwandile Masina, Old Assembly Chamber, Parliament

TLS: Socio-Economic Scenarios for South Africa. NBI Energy Initiative. 12 May 2016

The 2015 NPT Review Conference and the Future of the Nonproliferation Regime Published on Arms Control Association (

North American Free Trade Agreement

Human Rights Law The Modern Slavery Act Obligations in Transparency and Compliance. Kristy Grant-Hart. Sarah Powell

Section 25 of the Constitution

SOUTH AFRICAN HUMAN RIGHTS COMMISSION

South Africa: An Emerging Power in a Changing World

POLITICAL FUNCTION AND BEHAVIOR MEXICO

India and the Indian Ocean

A STATE OF DISTRUST. Fewer than one in three Americans believe government officials are credible Edelman Trust Barometer

EU-ACP: Completing a Partnership

The Great Debate Handbook. Name

Key Trade and Development Policy challenges in post-conflict countries: the case of Liberia and Sierra Leone

The Emergence of Modern Canada

Securing decent work: Increasing the coverage rate of Collective agreements in Europe

Halve, between 1990 and 2015, the proportion of people whose income is less than $1 a day

Outlook - Winter 2018

Strategic Review for Southern Africa, Vol 36, No 1. Book Reviews

The Impact of Globalisation on Tanzania s Labour Market: Evidence from the Manufacturing Sector. Structure of Presentation. Brief Introduction

Globalisation and Social Justice Group

Education and Employment Among Muslims in India

Variations in Relations of Capital (over time and across regions) in India Pranab Bardhan

My company was founded by Paul Revere in We believe we are the oldest basic manufacturing company in the USA. Today, we ship copper and brass

THE NGO S EXPERIENCE IN THE IMPLEMENTATION OF THE NATIONAL DEVELOPMENT PLAN 2030 CONFERENCE (23 24 MARCH 2017: ICC -EAST LONDON)

Africa s Convergence Over the past 10 years, SSA grew 5% per year and at this rate, it can DOUBLE its size before 2030.

Globalisation as a Cause of Forced Migration

The Rise of Political Parties

9.1 Human Development Index Development improving the material conditions diffusion of knowledge and technology Measure by HDI

Megatrends Now: Can the Middle East ADAPT? ADAPT Urgent challenges caused in response to the megatrends

Economic History of the US

Prospects and Challenges for the Doha Round

Infrastructure. Making infrastructure investment relevant again

Voters Support Bold Economic Agenda

Economies of South Africa & Nigeria

HUMAN RESOURCES MIGRATION FROM RURAL TO URBAN WORK SPHERES

There is no doubt that this has been a Conference of enormous importance and great significance.

An Update on the Greek and the European Crises

CHAPTER 3 THE SOUTH AFRICAN LABOUR MARKET

Towards a Decent Standard of Living. 6 February 2017

Domestic and Foreign Policy

Trade Negotiation. Course Code: IE409 Evening Class

Building the South African Developmental State: Elusive Pipe Dream?

The outlook for EU migration if the UK remains subject to the free movement of people

Collective Bargaining

2. SOUTH AFRICAN SITUATION & BASIC ANALYSIS

To what extent was Australia cohesive or divided between 1918 and 1929.

THE ROLE OF POLITICAL DIALOGUE IN PEACEBUILDING AND STATEBUILDING: AN INTERPRETATION OF CURRENT EXPERIENCE

Business and Human Rights

Brexit and the Future of UK Immigration

Towards Effective Youth Participation

Market failures. If markets "work perfectly well", governments should just play their minimal role, which is to:

Towards Consensus on a Decent Living Level in South Africa: Inequality beliefs and preferences for redistribution

Finance and the Rise of Neoliberalism. Dr Bruce Cronin University of Greenwich Business School, London

THE CRUCIAL CHALLENGE OF THE MEDITERRANEAN

1. Define GDP. The market value of all final goods and services produced within a nation in a given time period

THE GREAT DEPRESSION AND NEW DEAL

2017 Edelman Trust Barometer. European Union

Wages in Post-apartheid South Africa

3.2 Hamilton s Economic Plan. American History I Unit 3 The New Nation Day 2 Alexander Hamilton s Economic Plan

Economics of the Trans- Pacific Partnership (TPP)

NUMSA STATEMENT ON WEF: The South African Governments economic policies are threatening our democracy. 25 January, 2017

POLITICS OF THE ROARING 20 S

January 11, Dear Minister: New Year s greetings! I hope this letter finds you well.

Transcription:

Political Economy of Agriculture in SA Trends and perceptions

In 1978, he said... We are all Africans, whatever our colour or creed or persuasion, and our future depends on our mutual loyalty and support. We are so interdependent that a lack of trust in one part of our subcontinent affects everybody in other parts.

If we want investments from elsewhere, we have to push each other up the economic ladder. If we pull down those ahead of us, we shall all fall together.

In 1976, The World newspaper, Sowetan s predecessor which was later banned by the apartheid government, said of him... What Dr [Johan]Rupert has done in effect is to waken this country s social conscience. He is saying to his fellow industrialists that nothing is gained by accusing the government of making a mess of things. One must do something about it.

Progress... The talks about talks between the ANC and Afrikaner intellectuals and business Liberation organisations unbanned Negotiations at Codesa: compromise deal Constitution interim and final adopted

Multilayered Tensions... Property Clause vs Land Reform Commercial vs Political Imperative Divisive Past vs Inclusive Future Growing Cake vs Leftovers Uncertainty vs Certainty Rigidity vs Flexibility Global Ambition vs Backyard Bickering

The consequences... Mediocre growth of agriculture: Av 1, 6% Farm units decline: 35% (2007) Jobs drop from 922 000 to 720 000 (2013) Value of Agri imports exceeded exports for the first time in 50 years (2012) Farm debt rise from R18.18bn to R88.78 bn Old hard-line habits die hard

Consequences continued... Very low wages Bad image for sector Post-94 farm murders Bad image for sector Government misses target: 30 % of land to be redistributed to blacks Legislation to blame Weak post-settlement support Bad policies Demagoguery (Mugabe type) rhetoric Govt mistakes/failure hardens attitudes

The current context... Traditional big employers in decline relative to job demand. (Mining, agriculture, industrial) Unemployment 25%, same level as Greece (expanded definition: 35%) Youth unemployment is 50% - very dangerous Inequality of wealth and income rise Government debt rise

Current context Competition for global market share rough Agriculture linked to the global economy since early 19 th Century (for example, price of wool) Both size and quality matters SA retailers: logistical infrastructure subjecting local farmer to global competition Market share expansion needs domestic coherence and consensus

Turbulence in race to solve crisis... Policy contradictions: expropriation, quotas Domestic and global markets edgy (Example: CEO of a multinational manufacturing firm) National minimum wage talks Black Economic Empowerment now urgent Delays fuel uncertainty

Turbulence in race to solve crisis... Polarised political debates: Gap between FF+ and EFF except between the Fs is too extreme Finance Minister Nhlanhla Nene flags pending land reform policy among key policy issues causing uncertainty ANC s Gwede Mantashe: Land reform should be linked with food production ; Policy clarity and certainty is necessary.

Recommendations Way forward...we always knew the solution... What Dr [Johan]Rupert has done in effect is to waken this country s social conscience. He is saying to his fellow industrialists that nothing is gained by accusing the government of making a mess of things. One must do something about it.

What is to be done? Stakeholder capitalism give workers a stake. Engage constructively break bread Implement land tenure policies farm evictions give the sector a bad name If you want politicians to lead the process stand back and relax...they will do it for you!