International Conference: Global goals, local focus

Workshop 02 – Fighting poverty and tackling inequalities at local level

Speaker: Reuben Baatjies, General Manager Strategy and International Affairs of SALGA

Moderator:Nathalie Debast (VVSG)

Rapporteur:Thomas Peeters (municipality of Heist-op-den-Berg)

Context

The Sustainable Development Goals are one coherent framework, however, the Goals 1 and 10 are particularly focusing on poverty reduction and tackling inequalities in and between countries. Within the context of South Africa poverty eradication is still high on the political agenda, both nationally and locally. In spite of all the efforts and the fact that South Africa has become a middle income country according to the DAC criteria, inequality in the country still remains a huge challenge. Local authorities are using their Integrated Development Plans to ensure basic service provision for all their citizens and invest in job creation working together with all relevant stakeholders. Given the socio-economic situation there is a particular interest in local economic development and planning. Economic development initiatives linking the formal and informal sectors of the economy and strengthening the capacity of local authorities on local economic development are crucial in creating new and better jobs and tackling poverty and inequalities.

Key concepts / messages

  • Integrated approach of SDG’s
  • Since 2000 a changed role of SA-municipalities: from service delivery to developmental role
  • SA ranks highest in the world on the Gini-coefficient (disparity in income)
  • Historical inequality must be tackled by intergovernmental system since 15 years; big challenge
  • Big challenge to achieve spatial transformation, necessary due to legacy of Apartheid
  • Success for African Cities to attract investments
  • If we want economic development we should start with supporting local economic development
  • Spatial reality; the poor live furthest away from opportunities
  • Declining economic growth, especially in communities with undiversified economy (e.g. mining)
  • Contrast between the macro-economic situation and the success of local economic development within municipalities
  • How to build cities that are sustainable, inclusive and just, instead of focusing on GDP.
  • Cities and towns as pioneers

Q&A

  • In what stage does a local government work on professionalizing government?
  • Programmes are rolled out over long periods of time. A recent evolution is that there were national criteria installed for a lot of functions within local government to raise capacities at a local level.
  • Has SALGA been involved in the EU-ACP-cooperation?
  • This programme has been of tremendous support to SALGA.
  • The coverage of basic services is 90 percent. Unemployment is at 25%. Only 8% of national revenues are invested in local government. Do they have support of other government levels?
  • Some of the smaller municipalities are mostly reliant on this allocation of national means. The bigger ones are stimulated to work on own revenues so they can do more than providing just basic services.
  • 4 billion is set aside to invest in local economic development. Municipalities get the opportunity to apply for these funds once they have set up their vision on their own local economic development. The fifteen year report of SALGA elaborates on these initiatives.
  • Example of a project: building a bridge that connects a former township to an economical hub.
  • In Guatemala there is a law on decentralisation that gave the municipalities more responsibilities but also the ability to raise own revenues. Does such a law exist in South-Africa? This law also gives more responsibilities to local governments that perform well.
  • There is not a specific law. The constitution sets out the role of municipalities and also the fiscal responsibility of municipalities. Furthermore there are several laws that elaborate on the responsibilities of municipalities.
  • The national level is responsible for the redistribution of wealth. Poorer municipalities get a bigger share than the richer towns or cities.
  • Municipalities have limited fiscal autonomy.
  • It called my attention that SALGA has representatives in the parliament. Could you elaborate on that?
  • These are representatives of SALGA. Of course there are also people elected from the municipalities who later on support the position of SALGA.
  • SALGA briefs the councillors on their position.
  • There is a shift in mind-set. Within policymaking the effect of policies on local municipalities is much more taken into account.

2 mei 2016 - 1/3