COPYRIGHT AND CITATION CONSIDERATIONS FOR THIS THESIS/ DISSERTATION
o Attribution — You must give appropriate credit, provide a link to the license, and indicate if changes were made. You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.
o NonCommercial — You may not use the material for commercial purposes.
o ShareAlike — If you remix, transform, or build upon the material, you must distribute your contributions under the same license as the original.
How to cite this thesis
Surname, Initial(s). (2012) Title of the thesis or dissertation. PhD. (Chemistry)/ M.Sc. (Physics)/ M.A. (Philosophy)/M.Com. (Finance) etc. [Unpublished]: University of Johannesburg. Retrieved from: https://ujcontent.uj.ac.za/vital/access/manager/Index?site_name=Research%20Output (Accessed: Date). EVALUATION OF THE CITY OF JOHANNESBURG'S PROPOSEB
SECOND ECONOMY POLICY'S RESULTS IN THE GREEN ECONOMY
AND INFORMAL SECURITY SECTORS
by
PASEKA MTHOMBENI
A minor dissertation submitted in partial fulfilment of the requirements for the degree
MASTER OF ARTS
In
Public Management and Governance
FACULTY OF Management
UNIVERSITY OF JOHANNESBURG
Supervisor: Professor Fanie Cloete
2014 STUDENT DECLARATION
I, certify that the minor dissertation/thesis submitted by me for the degree Masters of Arts (Public Management and Governance) at the University of Johannesburg is my independent work and has not been submitted by me for a degree at another university.
PASEKA MTHOMBENI SUMMARY The Department of Economic Development (DED) within the City of Johannesburg (C0J) implemented two policy projects linked, to its proposed second economy policy. This study evaluated whether in its attempt to formalise the second economy the CoJ second economy policy empowered or further disempowered the participants of the security and green economy sectors of the second/informal economy.
Empowerment in the context of this dissertation was based on the Alsop, Bertelsen and Holland's (2006:15) methodology which states that tracking the differences in capabilities that disallow individuals or groups the ability to make transforming choices enables social research to measure how the environment (policy measures, by—laws etc.) can either empower or disempower the actors.
A literature review of the second economy provided background both in South Africa and the rest of the world. The review also addressed how the definition of the second economy varies as policy makers often define it according to the state of the informal economy in their policy landscape. The debate regarding the use of the word "second" as opposed to "informal" was relooked, it was concluded that the terms could be used interchangeably as they were both based on the "dualistic" approach that is prevalent in all economies. Chapter two also highlighted the advantages of the second economy regards to job creation and, economic growth.
The results from the green economy waste pickers and car guard security questionnaires were used to measure whether the policy interventions that were developed by the CoJ for each sector empowered or disempowered the participants of the sector. In total; 10 waste pickers were interviewed, including 5 from the Johannesburg CBD (Carr Street) and 5 from the Waterval district which is where the separation at source programme was piloted. In the car guarding sector 5 respondents were interviewed before and after the implementation of the ACE parking system pilot in Braamfontein. The study showcased how the implementation of the policy projects in the waste picking and car guarding sector varied, not only in their implementation but also in the approach that was taken to "formalising" the two sectors. Ultimately, the study showed that the waste picker's income increased and their working conditions improved, whilst the car guard's incomes diminished. The reasons for these findings are explained and the following recommendations are made for purposes of future implementation of policy programmes and projects in the CoJ.
• The potential stakeholders or beneficiaries that the policy is supposed to influence need to be involved with the policy drafting process. • Research should be carried out before policy strategies are set up. • Partnering with organisations that are working towards the same goals the policy is set to achieve.
KEY TERMS Second economy, informal economy, policy, empowerment, green economy, security sector, waste pickers, car guards, second economy policy projects, economic growth, employment ACKNOWLEDGEMENTS I would like to thank the following individuals for their assistance, prayers and guidance: God through whom all things are possible. It is due to his abundant grace and strength that I was able to complete what was a mammoth task for me. • My supervisor, Professor F. Cloete, for his guidance and encouragement throughout this entire process. I couldn't have completed this dissertation without his support. • I would like to express my gratitude to Mpho Leseka from the Department of Economic Development, who is the developer of the second economy policy of the City of Johannesburg. Thank you for giving me access to all the information that I needed for this study. • To my parents, Jeanette and Lawrence Mthombeni, thank you for teaching me the value of a good education. • I would like to dedicate this dissertation to my grandmother, the late Dinah "Dinah- Girl" Maluleka, for always believing in me, even when I didn't believe in myself.
iv LIST OF ABBREVIATIONS C0J City of Johannesburg DED Department of Economic Development PPI Policy and Programme Integration NDP National Development Plan JMPD Johannesburg Metro Police Department I LO International Labour Organisation QLFS Quarterly Labour Force Survey CBD Central Business District SAPS South African Police Services BID Braamfontein Improvement District SEWA Self-Employed Women's Association WIEGO Women in Informal Employment Globalising and Organising
UN - HABITAT United Nations Human Settlements Programme UNESCO United Nations Educational Scientific and Cultural Organisation GVA Gross Value Add GDP Gross Domestic Product BBBEE Broad Based Black Economic Empowerment
V TABLE OF CONTENTS STUDENT DECLARATION
SUMMARY
ACKNOWLEDGEMENTS Of
LIST OF ABBREVIATIONS
TABLE OF CONTENTS VI
CHAPTER ONE: GENERAL INTRODUCTION
1.1 Introduction 1 1.2 Motivation for the study 2 1.3 Focus of the study 2 1.4 Problem statement 4 1.5 Research questions 4 1.6 Research objectives 5 1.7 Research design methodology 5 1.7.1 Qualitative method approach 6 1.7.1.1 Published documents 6 1.7.1.2 Unpublished documents 6 1.7.1.3 Direct observation 6 1.7.1.4 Survey (Questionnaire) 7 1.7.1.5 Statistics 7 1.7.1.6 Comparative case studies 7 1.7.1.7 In-depth individual interviews 7 1.8 Definitions of terms frequently used 8 1.8.1 Formal sector 8 1 .8.2 Informal sector 8
VI 1 .8.3 First economy 8 1 .8.4 Second economy 8 1 .8.5 Car guard 9 1 .8.6 Waste picker 9 1 .8.7 Informal employment 9 1 .8.8 Informal trading 9 1.8.9 Empowerment 9 1.9 Limitations of the study 9 1.10 Proposed structure of the study 10 1.11 Conclusion 11
CHAPTER TWO: LITERATURE REVIEW
2.1 Introduction 12 2.2 Conceptualising the second economy 12 2.3 Informal economy vs. second economy 14 2.4 The link between the formal and informal economy 15 2. 5 The characteristics of the second economy 16 2.5.1 Characteristics of individuals working in the sector 17 2.6 Characteristics of enterprises operating in the informal economy 17 2.7 Reasons why the informal economy is growing 18 2.7.1 Limited absorption of surplus labour 18 2.7.2 Barriers of entry for the formal economy are high 18 2.7.3 Weak institutions 18 2.7.4 Capital over labour 19 2.7.5 Increase in the demand for low cost foods and services 19 2.7.6 Government ignorance 19 2.8 Sectorial challenges 19 2.8.1 Institutional challenges 20 2.8.2 I nfrastructural challenges 20 2.9 Economic challenges 20 2.10 Origins of the second economy 20 2.11 Second economy in emerging economies 21 2.12 Africa and the second economy 23 2.13 The birth of South Africa's second economy 24 2.14National policy and the second economy 26 2.15 Durban informal economy policy 27 2.16 Cape Town informal economy policy 29 2.17 Empowerment 32 2.18 Conclusion 34
CHAPTER THREE: THE SECOND ECONOMY IN THE CITY OF JOHANNESBURG
3.1 Introduction 35 3.2 The City of Johannesburg 35 3.3 The economy of the City of Johannesburg 35 3.4 Growth Development Strategy and local economic development 36 3.5 Informal sector employment 37 3.6 The Department of Economic Development 38 3.6.1 The policy and programme integration directorate 38 3.7 The development of the second economy policy 39 3.8 Conclusions 41
CHAPTER FOUR: EMPIRICAL RESULTS OF THE GREEN ECONOMY WASTE PICKING SECTOR
4.1. Introduction 42 4.2 The current state of the waste picking sector in the CoJ 43 4.2.1 Regulation of the waste picking sector CoJ 45 4.3 Waste pickers committee 46 4.4 Separation at source project 48 4.5 Waste pickers study results 51
AII 4.5.1 Questionnaire structure 52 4.5.2 Results of CoJ waste pickers questionnaire 53 4.5.3 Results of the questionnaires completed in the Wterval area 57 4.5.4 Open ended question responses 59 4.5.5 Buy back centre interview 59 4.6 Empowerment evaluation: waste pickers 60 4.7 Conclusion 61
CHAPTER FIVE: EMPIRICAL RESULTS OF THE SECURITY CAR GUARD SECTOR
5.1 Introduction 63 5.2 The state of the car guard sector in Johannesburg 64 5.2.1 Characteristics of car guards 64 5.3 Car guard sector research results 69 5.3.1 Questionnaire structure 69 5.3.2 Research results 71 5.3.2.1 Research results for before the implementation of Ace paid parking system in the Braamfontein area 71 5.3.2.2 Research results from after the Ace parking system was implemented in the Braamfontein area 73 5.3.2.3 Summary of results of implementation of the Ace paid parking system in the Braamfontein area 74 5.4 Empowerment evaluation: car guards 76 5.5 Conclusion 77
CHAPTER SIX: ASSESSMENT, CONCLUSION AND RECOMMENDATIONS
6.1. Introduction 78 6.2 Research objectives: summary and findings 79 6.2.1 Objective one: review literature on the second eccnomy and the role it plays in the economy 79
ix 6.2.2 Objective two: determine the need for and the details of a second economy policy in the CoJ 80 6.2.3 Objective three: determine what effect of the policy has been on waste pickers and car guards after the implementation of the policy projects 81 6.2.4 Objective four: suggest ways to improve policy project implementation in the future 82 6.3 Conclusion 82 6.4 Recommendations 83 Sources referenced 85
LIST OF TABLES
Table 1 Total percentage of people employed by the informal sector 22
Table 2 Project objctives and approach for the waste pickers project 47
LISTS OF GRAPHS
Graph 1: Share of total emplyment in the informal sector 23
Graph 2: SALGA municipal policy rationale graph 31
Graph 3:The relationship between outcomes and empowerement 33
Graph 4: Separation at source business model 50
Graph 5: Empowerment evaluation: waste pickers 61
Graph 6: ACE parking sequence 67
x Appendices
Appendix 1: CoJ second economy questionnaire: introduction of the "kerbside parking management system" in the city 85
Appendix 2:Paseka Mthomberii masters dissertation questionnaire: car gaurds (Braamfontein) 89
Appendix 3:CoJ data for waste pickers KE
Appendix 4: Paseka Mthombeni masters dissertation questionnaire:waste pickers (Waterval) 92
xi CHAPTER ONE GENERAL INTRODUCTION
1.1 Introduction The Department of Economic Development (DEIJ) within the City of Johannesburg (CoJ) is currently in the process of finalizing its second economy policy. The Mayoral Committee has not officially adopted this policy although certain key elements are currently being implemented. Desktop research suggests that given an appropriate support structure and assistance, the informal economy has the potential to create employment; which would be a much-needed reprieve in South Africa as the formal sector is failing to create jobs (CoJ Second Economy Policy 2011 :3).
The policy draft is currently focused on creating job opportunities in the following sectors: security (car guards), beauty industry (hair dressers), cleaning services (car washers), telecom (pay phone operators), child care services and lastly waste pickers (C0J Second Economy Policy 2011:1). This study will investigate the viability of the new policy's focus on the security and waste picking sectors. The current strategies under consideration in these sectors seem to have different levels of potential for achieving the goals of the proposed policy.
Unlike its counterparts in other municipalities, the proposed CoJ policy seeks to formalise the informal sector through regulating the employment practices and improving work conditions (C0J Second Economy Policy 2011:6). The problem is that the implementation of the second economy policy of the CoJ seems to be less viable to create employment opportunities in the security seclor, whilst creating opportunities in the waste picking sector.
The research design, motivation of the study, the problem statement, the study objectives and research questions will be outlined in this chapter. This chapter will also highlight the research methodologies that will be utilised, definition of terms, limitations of the study as well as a synthesis of succeeding chapters.
1 I .2 Motivation for the study The study aims to deterthine the need for a second economy policy whilst highlighting the need for caution when it comes to some of the intervention strategies that have been suggested; and ultimately to recommend alternative strategies for the successful "formalising" of the car guard and waste picking iriduslries. The study willenable policy makers within the city to find the best way forward in terms of determining whether it is necessary for the city to intervene (and if so how to go about it) or whether to leave things as they are since the informal sector is thriving due to its informal nature.
1.3 Focus of the study Initially it was believed that the informal economy was a passing phenomenon that often occurs during economic downturns or during times of conflict (Horn 2002:1). This theory was supported by economist and Nobel Prize winner Arthur Lewis who investigated the upsurge of informal workers in Japan and North America after the Second World War. During these times the general policy premise was that once the formal sector starts operating at its optimum potential (especially in the industrial sector), those working in the second economy will eventually be absorbed into formal employment and the second economy will as a result cease to exist. Unfortunately, this has not been the case (Ranis 2004:2).
The trend today is that people who are employed "informally" tend to make more money than those that are "formally" employed even though those who are formally employed still enjoy service benefits that their informal counterparts are not privileged to (CoJ Second Economy Policy 2011:7). It is with this trend in mind that the CoJ seeks to address the current state of the informal or second economy policy.
There is a debate on the use of the term 'second' economy as opposed to the 'informal' economy. During the State of the Nation Address in February 2006 former President Thabo Mbeki cited the second economy, as the economy of the poor masses characterized by a minimum wage and largely composed of the black population
2 whereas the first economy on the other hand refers to the white elite (The Presidency 2006). This is precisely why many economists shy away from the use of the term second economy, and rather prefer to use the term informal economy which better characterizes the activities and participants in these economic activities (Friedman and Hambridge 1991: 6). Despite the fact that the terms "second" and "informal" economy might be used interchangeably, there is still a great deal of miscOnception and confusion surrounding the nature and functioning of this sector (Davis and Thurlow 2009: 6).
Research so far has indicated that in most parts of Africa the informal/second economy is the largest employer, mainly because the formal economy cannot afford to absorb the masses of unemployed citizens (Bacchetta, Ernest and Bustamante 2009:22). Numerous analyses have been undertaken on the job creating potential of the informal economy and essentially how the formal economy is now running parallel to the informal economy (Gunatilaka 2008:11). Different implementation strategies have been proposed (Katungi, Neale and Barbour 2006: 6).
This study will investigate the potential of some of these strategies. Former CoJ Mayor Amos Masondo stated in his State of the City address in March 2011 (Masondo 2011), that the informal economy in the CoJ makes up 10% of the city's GDP. This not only underscores the large number of persons that are active in the sector, but also the potential of the sector to create jobs for the staggering number of people who make up the current 25.5% national unemployment rate (StatsSA 2014).
With the sector already contributing such a large amount in terms of revenue and with the potential to bring in even more, it is vital that there is a second economy policy. Both the Ethekwini Unicity Municipality and the Municipality of Cape Town have already implemented such informal economy policies. The experiences with these programmes emphasises the need for training, regulation and space allocation without being too rigid on how the participants of the sector should operate (Cape Town Informal Traders Policy 2003 and Ethekwini Unicity Municipality 2001). Both cities have also attempted
3 to formalise the car guard sector through a kerbside parking marshal's initiative. The project not only creates new job opportunities but it also brings in more revenue for the city The project has been launched in various parts 01 the CoJ and is the city's main strategy to formalise the car guards. The preliminary report indicates major problems which might lead to the displacement of a large maprity of the original informal car guards.
The Green Economy is fast proving to be a possible job creation tool in the form of "green jobs". The informal manifestation of this in the second economy is the growing number of waste pickers or trolley brigades. The City recognises that the trolley brigades form an integral part in waste minimisation through diversion of waste supposedly going to landfill sites. In so doing, they also play a major role in reducing municipal costs by gathering waste that would otherwise have to be transferred and disposed of with municipal funds. The Department if Economic Development took the decision to empower the trolley brigades through various interventions, which will be discussed in later chapters.
1.4 Problem statement The CoJ and government at large are tasked with creating a conducive environment for economic activities to operate with the intention of growing the economy as well as job creation. The second economy policy of the CoJ is supposed to formalise the informal economy sectors to improve their income and workinç conditions.
1.5 Research Questions The problem statement above reinforces the research question: "Will the City of Johannesburg's attempt to formalise the waste picking and car guard sectors of the informal economy through its second economy policy empower or further disempower the participants in those sectors?"
To be able to answer the above research question, the following secondary questions were formulated:
ru 1.5.1 What is a second economy? 1.5.2 Why did the C0J develop a second economy policy? 1.53 What are car guards? 1 .5.4 What are waste pickers? 1.5.5 What challenges do participants in the above sectDrs face and what projects has the CoJ implemented under the second economy poIic' in order to assist them? 1.5.6 How has the second economy policy affected the operations of the car guards and waste pickers (if any)?
1.6 Research objectives This study focused on achieving the following objectives: . Establish the nature of the second economy and the role that it plays in the economy. • Determine the nature and application of the second economy policy in the C0J. • Determine what the consequences of the policy implementation have been for the waste pickers and car guards in selected locations in the CoJ. • Suggest ways to improve the policy project implenentation in future.
1.7 Research design methodology employed The research for this dissertation was conducted using a qualitative approach. The bulk of the research was based on secondary data in the form of text analysis (journals, internet sites, books, and data provided by the DED. The researcher also conducted primary research in the form of questionnaires through face-to-face interviews. Direct external observation was also a research method that was invaluable to the development of the data and overall in determining just what effect the policy programmes have had on the research subjects. In the case of the car guard's direct observation was important in order for the researcher to examine the relationship between the informal car guards, the ACE parking marshals and the Johannesburg Metropolitan Police Department (JMPD).
5 1.7.1 Qualitative approach Qualitative research involves any research that uses data that does not indicate ordinal values (Nkwi, Nyamongo and Ryan 2001:1). Qualitative research aims to get a better understanding of the participants through direct observation, honest reporting, and quotes from of conversations. It seeks to understand how the participants interpret meaning from their environment, and how their meaning influences their behaviour (CSULB 2014).
The data sources that were utilized comprised of the following: 1.7.1.1 Published documents These include books, newspapers, and government documents, reports (Bogdan 1972:7). News clips from electronic sources of the Mail and Guardian as well as from the online news portal News 24 were used. Government (local and national) Bills and Acts provided the legislative background for this dissertation.
1.7.1.2 Unpublished documents This included departmental reports and other classified documents (Bogdan 1972:7). Mayoral committee presentations and reports formed a large part of the rationale behind the dissertation and were compiled by the DED and Pikitup.
1.7.1.3 Direct observation In this case, data is collected by an outside observer or a participant observer who can be a member of staff undertaking usual duties (Neuman 1999:517). As an employee at the DED, the researcher was able to shadow the questionnaire respondents whilst interviewing them and was able to experience first-hand how they operate in their environment and to record those experiences to aid the DED's proposed policy interventions.
[j 1.7.1.4 Survey (Questionnaire) Survey research was also undertaken by way of a structured questionnaire, where each observation unit was posed with the exact same questions.
1.7.1.5 Statistics There are currently no statistics regarding the informal economy available from StatsSA. However, there are other agencies that have statistics available, which will be useful in giving a numerical face' to the findings. Econometrix (2011:4) summarises the influence that the informal economy has on the national economy. Since I was an employee working on the second economy policy project I was in a position to access all the data that the city had collected on the subject.
1.7.1.6 Comparative case studies Comparative Case studies are integral in describing or explaining the programme as they most often present the same scenario from a different perspective (in terms of location, time frame or social consequences). Two case studies were used in this study that was used was the ACE parking system in Cape Town which has been operational for over 6 years, and for the waste-picking sector the case study that was used was that of a similar project currently underway in Durban that is being supervised by a non- governmental organisation Asiye e Tafulani (2014).
1.7.1.7 In-depth individual interviews Some participants (car guards and waste pickers) were not willing to reveal information in a larger group setting. Individual semi-structured interviews were, therefore used to provide information from participants in a free and outgoing environment. In totallO car guards were interviewed. 5 car guards were interviewed before the implementation of the ACE parking system; whilst the other 5 were interviewed after the implementation of the system.
The study focused on the Braamfontein area as it was the launching site for the ACE parking marshal project. Initially the DED interviewed 20 car guards, however, only 5
7 were willing or still available in the area to participate in the follow-up questionnaire this accounts for the sample number used for this study
For the waste picking sector, 10 waste pickers were interviewed, 5 from the inner city (these waste pickers were interviewed at Carr street where they sort their goods) and 5 from the Waterval area where the separation at source programme is currently underway.
1.8 Definitions of Terms Frequently Used The following terms are used throughout the dissertation
1.8.1 Formal sector "The economic activity that occurs within the purview of state regulation and formal employment is defined as employment originating from a business or firm that is registered with the State" (StatsSA 2014).
1.8.2 Informal sector "The informal sector is an economic activity that happens outside the purview of state regulation and informal employment is defined as employment originating from a business or firm that is not registered with the State" (StatsSA 2014).
1.8.3 First economy An economy that is at the forefront, globally cohesive and with the ability to export manufactured goods, services and primary commodities (The Presidency 2014).
I .8.4 Second economy The second economy is a mainly informal, disregarded, inexpert economy, occupied by the unemployed and those unemployable in the first economy (Faull 2005). 1.8.5 Car guard "Someone who is paid a small amount of money to guard a car so that it does not get stolen or damaged" (Macmillan Dictionary 2012).
1.8.6 Waste picker Waste pickers can be defined as individuals who reclaim reusable and recyclable goods from what others have cast aside as waste (Samson 2008).
1.8.7 Informal employment Informal employment refers to engagement in economic activities that occur beyond the legal scope of the State. This is because there's no legislation covering these activities or, even where there are laws, enforcement of the law is difficult because of the lack of monitoring and enforcing capacity by the State (Gunalil2ka 2008:3).
1.8.8 Informal trading The sale of legal goods or services by individuals or groups, in sites designated for informal trading and which requires little more than aclual goods or services to begin (Johannesburg Informal Trading Policy 2009).
1.8.9 Empowerment Empowerment is the act of improving the capacity of groups or individuals to make choices and to change those choices into desired actions and outcomes. The action of both building individual and collective assets, whilst improving the efficiency and fairness of the structural and institutional context which govern the use of these assets (World Bank 2014).
1.9 Limitations of the study One of the limiting factors was that due to the nature of their job, waste pickers are only available in the early morning before they leave to start collecting their materials, or only in the late afternoon when they sort the materials. The researcher had to work with their timetable, which was not always easy. Secondly, after the implementation of the paid
FOCI parking system, it was difficult to track down the car guards who were interviewed for the first part of the study. Thus, tracking them down to do a follow up interview was time cons urn ing.
There were also ethical issues that had to be considered. During the secondary questionnaires (the authors personal questionnaires), the author had to make it clear to the respondents that the research that I was conducting, would not impact on the C0J's policy projects so as to not raise their expectations.
The author had to remain unbiased when interviewing the respondents and not judge the respondents based on the general public perception that they (car guards and waste pickers) are thief 5, illiterate and degenerates. The living quarters of the waste pickers where the interviews took place were less than ideal; however, the author had to engage the respondents in their environment. This was done mainly to understand their general day to day experiences, but to also show them I did not judge them on their vocation. They were assured of anonymous and confidential responses.
1.10 Proposed structure of the study CHAPTER ONE: GENERAL INTRODUCTION Introduction, background, rationale and motivation for the study, research questions, research objectives, research and data collection, definition of terms, limitations of the study and overview of chapters.
CHAPTER TWO: LITERATURE REVIEW Chapter two gives the history and background of the second economy. It also looks into the debate of the use of "second economy" vs "informal economy", whilst demystifying some of the misconceptions about the sector. This chapter also looks at the role of the second economy in economic growth and job creation, and at comparative case studies in Durban and Cape Town.
10 CHAPTER THREE: THE CITY OF JOHANNESBURG Chapter three gives a summary of the CoJ, and the function of the DED and the PPI directorate. This chapter also looks at the developmeflt of the second economy and an explanation of the policy programmes for the waste picking and car guard sectors.
CHAPTER FOUR: EMPIRICAL RESULTS IN THE WASTE PICKING SECTOR Chapter four provides an Introduction, state of the waste piking sector in the CoJ, summary of analysis and assessment.
CHAPTER FIVE: EMPIRICAL RESULTS ABOUT THE CAR GUARD SECTOR Chapter five contains an Introduction, state of the car guard sector in the CoJ, summary of analysis and assessment.
CHAPTER SIX: ASSESSMENT, CONCLUSIONS AND RECOMMENDATIONS Chapter six covers the assessment of findings against the background of current knowledge and other case studies, conclusions and recommendations.
1.11 Conclusions Chapter one introduced the topic of the dissertation, and highlighted the motivation of the study as well as the proposed focus and structure of the dissertation. The problem statement was articulated and study objectives were determined from the research questions. Chapter one also highlighted the methodology that would govern the direction of the research. The various data collection methods as well as the definition of key terms that were employed were listed and expilained. A structural breakdown of the dissertation was also given.
Chapter two will provide a brief literature review of the second economy by providing background of the second economy, both in South Africa and the rest of the world. It will address how the definition of the second economy is relative as policy makers often define it according to the state of the informal economy in their policy landscape.
11 CHAPTER TWO LITERATURE REVIEW
2.1 Introduction Chapter two summarises and assesses the concept of the second economy and the current state of knowledge about how to manage it better. This is done mainly by analysing both international and local examples of this concept and assessing how the implementation of a second economy policy affects employment and economic growth.
2.2 Conceptualising the second economy? The second economy is also referred to as the informal economy (the formal economy being the first economy). Thus, these two words, 'informar and 'second' economy are often used interchangeably. The first or formal economy is defined as the economic sector which includes all jobs with regular hours and wages, which are known as income sources on which revenue taxes must be paid (Basten 2012).
The term informal economy gained popularity as a way of describing a dualistic structure of the economy which is prevalent in developing countries (The Presidency, 2012). The economies of these developing countries usually involve both the conventional economy and the unauthorized economy in which the economic transactions happen outside the normal traditional channels (Losby 2002:2).
According to the International Labour Organisation (ILC), the informal sector is regarded as a group of household enterprises or unincorporated enterprises owned by households. This includes informal own-account enterprises, which may employ contributing family workers and employees on an occasional basis; and enterprises of informal employers, which employ one or more employees on a continuous basis (ILO 2012).
Statistics South Africa (StatsSA) defines the informal sector as businesses that are not registered. They are usually small in nature, and are rarely run from business premises
12 but instead from households, street pavements or other informal arrangements (StatsSA 2012)
The ILO's definition of the informal economy is considered the gold standard to defining the informal economy (Altman 2008:5). The definiton draws on two fundamental themes, namely that participant are either self-employed or employed in informal enterprises. The definition focuses on the meaning of being "informally" employed, rather than focusing on the issue of livelihoods and working poverty (Altman 2008:5).
Most definitions focus on the issue of remuneration or law regulation (C0J Second Economy Policy 2011:7). This poses a problem because as the informal economy has developed, the issue of earning inconsistency associated with the sector has also changed (Chen, Vanek, and Carr2004:4). For instance whereas before informal car mechanics were considered cheap labour, these days they have reinvented their trade to such a point that they can charge higher prices which often results in them earning more than their "formal" counterparts (Aliber, Kirsten, Maharajh, Nhlapo-Hlope and Nkoane 2006:4).
Therefore the ILO (ILO 2001) definition captures the essence of the informality of the work status in the informal sector; but, the issue of remuneration, legislation, working conditions and taxes will be dependent and relative to the state of the informal economy in that country or region and can thus not be addressed as part of a global definition (ILO 2001).
The CoJ has adapted the ILO definition to contrive its own. The informal economy is therefore defined as "a diverse range of economic activities manifesting in almost all sectors of the economy. These activities are largely derninated by typically unregistered small enterprises that employ workers - usually recrtfted from vulnerable groups such as women, youth and immigrants. As a consequence, the employees in general enjoy no employment benefits such as a fixed contract, maternity leave, and predictable remuneration. The transactions or trade of goods and sen/ices in the informal economy
13 is sometimes paid for with cash-in-hand or paymert-in-kind. More importantly, the transactions are neither taxed, nor are they regulated by government institutions, and hence, the contribution of this sector to the economy is not accurately recorded in the gross national product" (CoJ Second Economy Policy 2011:6).
2.3 Informal economy vs. second economy Although the CoJ policy uses the terms second economy and informal economy interchangeably, its decision to call the policy the second economy policy has reignited the debate on what to call this sector of the economy.
During his 2003 State of the Nation Address former President Thabo Mbeki caused a furore amongst economists when he introduced the concept of a "first" and "second" economy as opposed to the more recognised "formal and "informal" economy (Altman 2008:6). Since then, the idea has gained acceptance as a methodological tool to identify the socio-economic marginalisation suffered by many South Africans (AsgiSA 2012:38).
The concept of "two economies" makes reference to the elements of the development theory dual economies, in that it is used to describe particular South African economic conditions (Gumede 2008:2). Therefore, it does not suggest that there are two socio- economic formations in one country but describes the living environment for communities estimated to constitute about one-third of the population (AsgiSA 201 2"38).
The controversy was that by referring to the informal economy as the second economy, it implied that there were two economies (Altman 2008:6). The first being the economy of the rich whilst the second more subordinate economy was thought to be for the "black" majority. The term informal economy was a more comfortable term of endearment for the nature of happenings carried out in the sector whilst referring to it as the second economy implied subordination (Roitman 1990:2).
14 Therefore, the first and second economy represents a socio-economic dualism where the first economy is described as being on the forefronit, globally cohesive and with the ability to export manufctured goods, services and primary commodities (AsgiSA 2012:39). The second economy is one that is marginalised, consists of large numbers of the unemployed and the "unemployable" (AsgiSA2Ol2:39).
According to Becker (2004:10), the dualist approach forms part of a trio of approaches that aim to illustrate the relationship between the formal and informal economies. These approaches are the following:
. The dualists: this school of thought prescribes to the notion that the informal economy is a separate economy not related directly to its formal counterpart, but it is credited with providing an income for the pocr. . The structuralists: the informal economy is lesser to the formal economy. In an effort to reduce cost, industrialists seek to subordinate petty producers and traders. . The legalists: for this group the informal economy is a response to over regulation by government by micro- entreprerleLrs.
Individually the three approaches fail to capture the complexity of the informal economy. Chen (2007: 9) is of the opinion that the approaches could be more effective if they are integrated. The CoJ's policy ascribes to this mixed method approach: policy makers have integrated the structuralist and dualist approath to develop the policy, which is a stance that the author shares (C0J Second Economi Policy 2011:5).
2.4 The link between the formal and informal economy The informal economy has long been perceived as a separate component from the formal economy (dualist approach). However, in recerft times it has become evident that the informal economy has been integrated into the formal economy (Valodia 2007:13).
15 Most sectors of the informal economy have direct manufacture, trade, or service links with the formal economy (CoJ Second Economy Policy 2011 :34). The informal economy includes all types of "nbn-standard" wage employnent which include sweatshop production, home work (home based), part-time work and unregistered workers. There are therefore clear links (both direct and indirect) between many informal wage workers and formal businesses (CoJ Second Economy Policy 2011:34).
For instance, a cashier may be informally employed by a staff placement company and yet, be formally employed by Pick 'n Pay. This trend of part-time workers, who work under subcontracts for formal firms, or the street vendors who sell on commission for formal firms, or the janitors who clean the offices of fo''mal firms under a subcontract is illustrative of the link between the formal and informal economy (Chen, Jhabvala and Lund 2001:11).
The nature of the linkages between informal workers and formal businesses is at times frowned upon in that it is believed that the workers in this type of relationship are being exploited when in actual reality the relationship is mutually advantageous (Chen, Jhabvala and Lund 2001:11).
2. 5 The characteristics of the second economy Two dimensions are mentioned when referring to the characteristics of the second economy. They are the characteristics of the enterprises operating in the sector as well as the individuals who are working in the sector. The more generic characteristics of the second economy address the operations, education and legality of the activities undertaken in the sector; they are (Becker 2004:11): Low entry requirements in regards to capital. Skills often acquired outside of the formal education. . It is based mostly on a verbal understanding.
16 2.5.1 Characteristics of individuals working in the siector The Fildus Orgarnisation (2012) a research oranisattion maintains that the above mentioned characteristics do not address the issue owlhat type of individuals are in the sector; thus the following are suggested as charactestx: • Firstly, it comprises of both employed and self-employed workers, with some involved in both kinds of work. • Secondly the employers and self-employet individuals do not comply with standard business practices, taxation reguiIlatnus and/or other business reporting requirements, but they are otherwise not einigaged in overtly criminal activity. • Cash remains the most common medium all exothtange. • The working conditions for those who worlic in Itie informal economy are lesser to those found in the formal economy.
2.6 Characteristics of enterprises operating in the iiiiormal economy According to Kucera and Roncolato (2008:333) buslirresses in the informal sector are largely function at low levels of visibility. The najority iay not have licenses, are often involved in casual hiring, non-reporting of income 2rV other informal work practices. They can be easily moved, opened or shut at, wiill, and thus, can hide from regulation (Kucera and Roncolato 2008:333).
Secondly, most businesses operating in the irflforrnai :ector are carbon copies of their counterparts in the formal sector (Du Toit 2007:6. 7hey do not cost as much money to operate and as stated above, they are unregulated. Also most of these businesses offerr more than one service at a time. For instance in the inser city of Johannesburg, you can find a salon that doubles up as a Nigerian movie store (CoJ Informal Economy Policy 2009:20).
Lastly, in most cases these businesses generate lovw iffelturns and have very few assets, For these businesses and individuals the motivation Ic' stay in the informal sector are compelling as the lack of documentation and paper mark causes them never having to really follow the rules and regulations as they are irTcA seen as "legitimate" business
17 owners (Mathebula 2011:2). Secondly they do not have to pay taxes. For this reason and others, some individuals are simply not interested ti formalising their businesses. Meanwhile others could be characterised as interested but cautious. Finally, there are a small number who are both interested and ready to legatise their businesses (Mathebula 2011:2).
2.7. Reasons why the informal economy is growing According to De Soto (2000:3) and the ILO (2002) the reasons for the continued growth of the informal economy are:
2.7.1 Limited absorption of surplus labour With more countries' economies being industry and services based, the masses originally employed in the agricultural industry have had to took for employment in the formal sector. In addition, a growing number of job seekers and the absence of jobs in the formal sector have also contributed to the growith of the informal economy to accommodate them (De Soto 2000:3).
Secondly, urban-rural migration has also contributed to the development of the informal economy as the general population in the urban areas has grown and they are not enough jobs to accommodate them (De Soto 2000:3).
2.7.2 Barriers of entry for the formal economy are high Government regulation and corruption in the granting of business permits has forced some business owners to operate in the informal sphere (ILO 2002).
2.7.3 Weak institutions Structural adjustment programmes during the 198tJs and the 1990s contributed to the growth of the informal economy in most developing countries. The main reason was the shortage of public sector generated jobs and the closure of some uncompetitive companies forcing most retrenched workers to find employment opportunities in the informal sector (De Soto 2000:3).
18 2.7.4 Capital over labour The unskilled labourers who cannot afford to migrate easily find themselves disadvantaged by the growing trend of cross border trade and investment which then favours capital as opposed to labour (ILO 2002).
2.7.5 Increase in the demand for low cost foods and services Most people are not willing to pay for goods and services that they can get cheaper from an informal worker or service provider (ILO 21302).Hence, most people today frequent informal "no name" clothing stores as oppcsed to the bigger clothing store chains because the informal enterprises sell similar garrrnents at a lower price.
2.7.6 Government ignorance Most government agencies have not taken an active role in the second economy because they have always thought that the sector would "die out". As such there is little intervention and regulation in the sector which has hellped it grow (Devey, Skinner and Valodia 2006:8).
Simply stated the informal economy has grown largej because there have been no appropriate mechanisms in place to absorb the large unemployed masses into the first or formal economy.
2.8. Sectorial challenges According to Nzama (2011:12) people operating in the second economy face three challenges which can be categorised as instituticrial, economic and infrastructural. Seemingly, there are some challenges that these individuals face that government intervention might not be able to address (Ndaberii and Maharajh 2013:5). However, these categories represent an opportunity for governnnerit to make interventions that will create an actual difference in the manner in which these people carry out their various activities. The challenges include amongst others:
19 2.8.1 Institutional challenges Training to develop their skill levels; offering them traftling on business courses and courses relevant to their economic sectors are lackiru (Nama 2011:12).
2.8.2 Infrastructural Challenges The shortage of working premises, that boost sorting and storage facilities with ablution facilities present a challenge to individuals working in this sector Nzama (2011:12).
2.9 Economic challenges Access to financial services and insurance for people in the informal economy is underdeveloped in South Africa. Individuals working in this sector are deemed ineligible for these services; mainly due to the nature of theirr business they do not have a fixed income or records of their monthly proceeds (Losby 202:17).
2.10. Origins of the second economy The formal recognition of a second economy next t1c tIe first economy has its roots in the informal economies of the Soviet Union and other E2st European countries where it is a consequence from structural failures in the sociialislt planning system and from the cultural and historical evolution of each East Europe3n society United Nations Conference on Trade and Develpniient 2008:114). Initially it was believed that the second economy would die out. However, it thrived and grew and was even tolerated and encouraged by the government of the day (Keeran and Kenny 2007:2).
During the leadership of both Leonid Brezhnev and Mikhaii Gorbachev the second economy expanded significantly. Brezhnev's policiies during his term were aimed at achieving military parity with the United States of .!mrica as well as to increase the income of Soviet workers (Keeran and Kenny 207:4). The latter was key to his policies as he could not disengage himself from the socialist pclicies of his predecessors but at the same time he knew the socialist economic pcIicis had failed to address the issue of improving the livelihoods of the general masses, resulting in what was termed
20 "economic stagnation" (Keeran and Kenny 2007:4).LJnd'er the leadership of Brezhnev the second economy was encouraged but to some it was still viewed as an "informal and illegal entrepreneurial activity" which resulted in this economic activity being referred to as the "black market" (Keeran and KeninV 2007:4).
During the 1980s and 1990s the informal econorirly continued to grow particularly in countries undergoing economic transition, so much Sc that it was formally regarded as a feature of economic transition. In the early 2000s especially during the economic recession, the informal economy was regarded as the economy of the future (WIEGO 2012).
In 1970 Keith Hart coined the term informal econcm (Hart,1973:5). It was recognised as a formal concept of economic classification in develloped economies. During this time the activities of this sector were viewed as an avenue of possible job creation Although for most economists at the time, the informal economy was seen as a "third world" phenomenon (Chen 2007:6).
2.11 Second economy in emerging economies Over the years and with the advent of the age of glebaUsation, the informal or second economy has grown tremendously in developiiig countries. This led to governments trying to take an active role in the regulation and deelopment of the sector (Verick 2006:3).
The informal economy is a significant creator of jobs i ri Pjrica, Asia and Latin America (see Table 1 below).
21 Table 1: Total percentage of people employed by the informal economy sector
Country Year Informal economy employment as a percentage of employment
Brazil 2003 34.4 India 2000 55.7 Mexico 2005 28 Turkey 2004 22.9 South Africa 2007 16
Source: Duriex (2008)
The table above shows that India ranks as one of the world's biggest informal economies. According to Chen (2007:4) the informal workforce in India is estimated at about 370 million workers, which accounts for 93% of the total workforce. The informal sector is made of three main segments: agriculture (including small farmers and agricultural labour), informal enterprises (including employers, own account workers and employees); and employment outside informal enterprises (including industrial homeworkers sub-contracted by official firms and domestic workers engaged by households).
The informal sector accounts for 60% of NDP, which is the GDP minus devaluation (Unni 2001 :8). India is also home to SEWA which is an Indian trade union for women workers in the informal economy. As of 1999 they boasted a membership count of more than 32,000 (Lund and Skinner 1999:14).
When pressure mounted from informed activists and researchers in light of the challenges that the individuals in this sector were faced with, the government of India set up two commissions that have drafted legislation and/or recommended policies in support of the informal economy. The first one was the National Commission on Self-
22 Employed Workers and the recent National Commission on Labour (Unni 2001 :3). This has resulted in India setting the precedent for government intervention and interaction. The benefits of this are evident in the benefits that the informal workers receive. Currently, members of SEWA are privy to benefits which include a pension fund (Lund, and Skinner 1999:14).
2.12 Africa and the second economy The informal economy in Africa is mostly trade-related with the manufacturing and services sector of the economy trailing behind. With more females entering into the sector and opting to provide services apart from Street vending, the sector has grown to encompass beauty (hair braiding) and cleaning (laundry and house cleaning) services (Verick 2006:6).
The graph below illustrates the significance of second economy contribution to employment in 6 African states.
Graph 1: Share of total employment in the informal sector
Share of total employment in the informal sector (First Statistics)
• Botswna 1996
•Ethopi 19
• Ghia 1997
•MIi 1996
•South Africa 2001
Tnzarua 1991
Source: Durieux (2008:1) Growth is largely due to the fact that there has been lack of progress in employment growth in the formal sector whilst there has been remarkable growth in the employment rate in the informal sector. This is especially true for countries such as Kenya and
23 Uganda where employment in the informal economy by far exceeds that of the formal economy (Xaba, Horn and Motala 2002:6).
2.13 The birth of South Africa's second economy After 1994 South Africa's transition to a non-racial democracy was regarded as a success, yet high inequality in terms of disparities in income and wealth between black and white South Africans was still apparent. The main reasons for this disparity was that for a long time black people were not afforded the same economic generating opportunities as their white counterparts (Beinart and Dubow 1995:65). Only after 1994 with the introduction of BBBEE 6nd other such programmes, which were aimed at redressing the exclusion of the majority of black people from ownership of productive assets and the possession of advanced skills, did the economic fortunes of some black South Africans change (Broad Based Black Economic Empowerment Act 2003:6).
The 2011 census showed that the average annual income for black households was R60, 613, whilst the annual white household average was R365, 134 (StatsSA 2014). However, it is believed that this number is even less for those who operate in the second economy.
In May 2004 former president Thabo Mbeki unveiled what was heralded to be the blueprint for South Africa's response to the ever growing second economy. This strategy or blueprint is now often referred to as the "three-pillar formulation" (Thusong Community Services 2012): The three pillars are (Thusong Community Services 2012): Encouraging the growth and development of the first economy in order to create new jobs. . Implementing programmes to address the challenges of the informal economy. Building a social security net to alleviate poverty.
The essence of the "three pillars" is that poverty cannot be reduced by the first pillar or first economy largely due to the fact that the majority of persons in South Africa post 1994 did not possess white collar job qualifications and skills needed to operate in this
24 sector (Thusong Community Services 2012). Therefore, if jobs that will address unemployment and poverty eradication are to be generated, it is important that interventions be made in the "second economy" (Srinivas 2014). Seemingly, social grants form a major part of the poverty alleviation security net and there is a need to redress this situation as it is not economically sustainable and yet it is a necessary evil that contributes greatly towards social security. This implies that if South Africa is to become an economically progressive state, then social grants will have to be distributed in a decidedly copious manner (Thusong Community Services 2012).
The "three pillar formulation" state that, as the first economy is not creating enough diverse jobs, the second economy can create employment opportunities for the masses that are considered "unemployable" in the first economy due to their lack of skills. Ultimately, if the second economy generates employment for the "unemployable" masses which would by default make up the bulk of those who rely on the security blanket of social grants, then not only would that contribute towards poverty alleviation but it would also break the cycle of having a social grant dependent state (Thusong Community Services 2012).
South Africa is experiencing high rates of unemployment which currently stands at 25.5% (StatsSA 2014), as the number of new applicants into the labour market is far higher than the number of employment opportunities that are created in the formal sector, more so given the current global economic condition. The informal economy in South Africa emanates from this inability of many low skilled people to secure employment in the formal sector (Srinivas 2014). In light of these conditions a number of local municipalities have decided to examine other avenues of possible employment generators.
Davis and Thurlow (2009:13) showed that the "informal economy contributes approximately 7. 1 percent to South Africa's total GDP but generates close to 22.3 percent of total employment". It is also estimated that the largest sectors in the informal economy are services-based, i.e. retail trade at 41 .5% followed by transport
25 approximated at 18.5%, construction estimated at about 10.0% and agriculture 9.3%. The leading manufacturing sectors in the informal economy are processed foods and textiles (Leseka 2012:8).
This illustrates that the sector is becoming a major contributor toward economic growth, which is why more government intervention is needed to further assist growth. Such realisations have partly been the reason behind the development of the Durban informal economy policy.
2.14 National policy and the second economy Although the National Department of Economic Development recognises the dualistic approach of a "first" and "second" economy there is no national policy speaking particularly to this issue. Instead government refers to the term "inclusive economies" to account for the integration of the first and second economy (Leseka 2012). Inclusive economies and the role that the informal economy plays in economic growth and possible job opportunities is becoming evident in the national policy arena. The National Development Plan (NDP) is touted as government's blueprint to achieving social, political and economic transformation by 2030 (The Presidency 2014).
Under the economic and employment growth theme of the NDP, it is mentioned that in order for there to be economic growth, South Africa must challenge the diversification of the economy (The National Development Plan 2014). It needs to identify sectors that will boost economic growth. In order to do this, government must create a conducive environment for informal businesses to operate in (Asisa Assembly 2014). This may come in the form of development finance or in the form of the proper legislation being put in place to aid and not disturb the operation of the informal sector (The National Development Plan 2014).
The Minister of Trade and Industry Rob Davies stated that it is important to lay the foundation for perhaps more painful structural changes in our economy. Classifying the economic activities of the country as either informal or formal takes away the possible
26 economic opportunities that can result from integrating the economy and making it easier for individuals who do not work in the traditional industry to operate and boost our GDP (Mail and Guardian: Inclusive Economies Seminar 8th April 2014)
One of the key foundations to the objectives set out in the NDP is the need for partnerships between all the relevant issue stakeholders. Government in partnership with the private sector must isolate areas to nurture, support and develop instruments to support those areas which will henceforth be use for proper implementation (The National Development Plan 2014).
215 Durban informal economy policy Durban is the third largest Metro in South Africa with a projected population of 3,548,032 in 2014; of this number 30.2% are unemployed (Municipal 10 2014). Durban much like Johannesburg is a key economic hub not only due to its manufacturing sector which accounts for 23% of its generated revenue; but also because it is the home of the largest sea trading port in Africa (Ethekwini Municipality 2014). Durban is the major contributor to the KwaZulu-Natal Province which is South Africa's second largest economy, contributing on average, 15.7% to the country's GDP (Trade and Investment KwaZulu-Natal 2014).
The Department of Economic Development in the municipality conducted a study in 2000 that indicated that only 1 in 3 economically active citizens in the city are actually employed in the first economy and that the ratios of employed people in the formal sector have been decreasing at a rate of 1.5 % per annum (Durban Department of Economic Development 2000:4).
The municipality realised that the bulk of its interventions over the years had been geared towards the informal street traders which then resulted in the other facets of the informal economy being neglected. This realisation was further heightened by the fact that the evidence at the time suggested that some of the traditionally formal industries
27 such as the clothing industry were slowly in the process of subsiding into the informal economy (UN-HABITAT 2006).
Thus, in November 1999 a technical task force was set up to develop 'an effective and inclusive' second economic policy. The entire process was evidence-based, so as to come up with policy initiatives that would be responsive to the needs of the informal workers. Consultants were instructed to conduct research. In October 2000, the policy plan was presented to the Mayoral Committee who approved the policy plan and it has subsequently been adopted by the eThekwini Municipal Council in December of 2001 (UN-HABITAT 2006).
When that informal economy policy was adopted and finally implemented, it was heralded by organisations such as the ILO as the gold standard of policy towards the informal economy. This was because the policy addressed more than just the street traders. The policy was seen as an innovative break from the traditional approach, which grouped all the activities of the informal economy together and tried to take a one-size-fits-all approach (Wills 2009:1).
The new policy approach by Durban illustrates that the informal economy is pivotal to the growth of the economy in a country where marketable skills are lacking. In its final report, the task force pointed out that the second economy generated jobs and incomes for many of the poor masses in Durban. As a result, the policy has laid the foundation for further research on future policy programmes pertaining to the informal economy about critical issues which have long been ignored. The policy addressed new issues that would effectively be a limitation to the development of the sector. These issues include the following:
. The need to provide provisional services to people who work for as well as people who own small enterprises. This means that informal workers and business owners must receive training on legal advice, simple business skills,
28 health education, and support in accessing financial services (UN-HAB!TAT 2006).
Since government has to take a proactive role in the application of the policy, it is suggested that they should subsidies the cost of training. Government would then be teaching the informal workers how to fish as opposed to just giving them fish in the form of social grants.
The reasoning behind helping business owners grow their businesses is that once their businesses grow, not only will government be able to tax them and thus add to the city's revenue but these informal enterprises may also become a source of employment.
The policy proposes a sector based approach to help those working in the second economy. This would involve complete examination of the different sectors with a view to the city designing and applying coherent and focused interventions, as suppose to a one-size-fits-all approach (WIEGO 2012).
• The policy calls for organisational restructuring, in that there needs to be training for the officials who will be working with the informal employees (Durban Informal Economy Policy 201 1:45).
2.16 Cape Town informal economy policy The City of Cape Town is ranked as South Africa's second largest metro with the population projected to be 3,994,361 in 2014 (Municipal 10 2014). Informal trading plays a key role in reducing the current unemployment rate of 23.9% by opening up economic access opportunities and alternative forms of employment (Municipal 10 2014)12% of the overall employment in the City of Cape Town is generated by the informal economy, which employs 18% of its economically active residents (Cape Town Municipality 2014).
The City of Cape Town's Informal Trading Policy and Management Framework which was adopted by the Mayoral Committee of the City of Cape Town on 18 February 2004;
29 details where trading may or may not take place, the types of trading that can be encouraged, appropriate operating hours and the obligations and responsibilities of stakeholders (Cape Town Informal Trading Policy and Management Framework 2011:4)
The City of Cape Town's current Informal Trading Policy and Management Framework views the informal sector as just being informal trading as opposed to having a holistic approach to the various sectors that make up the informal economy. The city's current legislature does not create support mechanisms or an enabling environment for the informal economy (Cape Town Informal Trading Policy and Management Framework 2011).
In a presentation made by Carol Skinner at the 2013 Informal Trading Summit, she listed the strengths the City of Cape Town's policy. They include (WIEGO 2014):
. Institutional location: In economic development - recognising informal trading as an economic activity. Interesting experiments with urban design. • Introduction of a computerised permitting system.
Overall, the City of Cape Town is gearing its activities in the informal sector to align with the South African Local Government Association's (SALGA) rationale for municipal policies. SALGA advises that each municipality should define its own set of stakeholders depending on the type of services being addressed and that the identified stakeholders must be involved in the planning process create an enabling environment for all involved (Cohen and Horn 2012).
The graph below illustrates the above mentioned rationale. The City of Cape Town has identified that the informal sector participants are a key stakeholder that must be involved in the planning process pertaining to the sector. All conduct in the partnership and management process must be based on the statutes of law highlighted in the
30 informal trade policy guidelines; which can be amended if both parties agree (Cohen and Horn 2012).
Graph 2: SALGA municipal policy rationale graph
Source: Cohen and Horn (2012)
In February 2003 the Cape Town City Council recommended a new by-law to legalise informal car parking attendants or car guards, this was due to a large number of residents complaining about incidents of harassment and car break-ins by the car guards (Bernstein 2003:1). This was the first time that an attempted was made to regulate the car guarding sector. Under the by-law car guards have to register their personal details and finger prints at the nearest police station to where they are located to keep track of all legally registered car guards (Bernstein 2003:3).
31 The by-law led to the car marshals system although the by-law itself was never adopted; instead the car guard sector is briefly discussed in the Cape Town Parking by- law which was adopted by the mayoral committee on 26 August 2010 (City of Cape Town 2014).There was such a surge in the number of cars in downtown Cape Town that the service had to be outsourced. The tender was advertised and subsequently awarded to ACE parking services.
In June of 2011, employees (the author was part of the delegation) from the DED went on a fact finding study tour to Cape Town and Durban to find out what projects the two metros were working on in relation to their objectives in their respective informal economy policies. At a meeting with the City of Cape Town informal economy sector team, they shared that they had since broken ties with ACE parking system in the CBD as it was revealed that they (ACE parking) was underpaying their staff and contradicting their contract agreement which stated that they must practice fair employment.
2.17 Empowerment The analysis of power has three components which i) what individuals do (and abstain from doing), ii) what they achieve (and fail to accomplish), and iii) what they might have completed (but did not do) (Giddens 2014). Under this theory, power is the capacity to achieve results, regardless of how these are achieved by force or for the interests of certain sectors of society degrees (Giddens,20 14). Empowerment therefore has mutually reinforcing effects on development outcomes (Alsop, Bertelsen and Holland 2006:10).
Alsop, Bertelsen and Holland (2006:10) developed a framework to illustrate the relationship between outcomes and how the outcomes correlate with empowerment.
32 Graph 3: The relationship between outcomes and empowerment
Agency
Degree of Interactive Development Empowerment relationship outcomes
Oppounity StructureI Z
Source: Alsop, Bertelsen and Holland (2006:10)
The graph above identifies the components that constitute the relationship between development outcomes and empowerment. According to Alsop, Bertelsen and Holland (2006:11), agency refers to an individual or group's ability to make focused choices; as the individual or group are able to select options that will best meet their development needs within the institutional context within which they live and work.
The opportunity structure refers to the organisations that oversee people's behavior and influence the success or failure of the choices that they make (Alsop, Bertelsen and Holland 2006:13).
Empowerment in the context of this dissertation will be based on Alsop, Bertelsen and Holland's (2006:15) methodology which states that tracking the differences in capabilities that deny individuals or groups the ability to make life altering choices
33 enables social research to measure how the environment (policy measures, by—laws etc.) can either empower or disempower the actors.
2.18 Conclusion Chapter two provided an overview of the second economy in relation to its history, characteristics, economic benefits and the challenges facing both the sector and its participants in terms of growth and development. The chapter highlighted the link between the formal and informal sectors and how inadequate job absorption in the formal sector has fueled the growth of the informal sector both in South Africa and other developing states. The debate on the use of the terms informal and second economy interchangeably was also discussed with attention drawn to the use of the terms in South Africa.
The informal economy policies as well as the socio-economic profiles of the City of Cape Town and Durban Metro were referred to in this chapter; as the two metros form part of the case studies that the dissertation makes mention of. The concept of empowerment was also discussed as a form to measure how the CoJ's policy interventions have impacted on the participants of the sector. The following chapter will focus on the second economy within the CoJ.
34 CHAPTER THREE THE SECOND ECONOMY IN THE CITY OF JOHANNESBURG
3.1 Introduction Chapter three summarises and assesses the CoJ's second economy policy. This will be undertaken mainly by analysing the context within which the CoJ operates. The CoJ's organisational structure; as well as the economic climate within which the policy was developed will also be reviewed in this chapter.
3.2 The City of Johannesburg The CoJ is the largest economic centre in Africa, as well as the largest metro economy in South Africa, which makes it a key driver of the country's economy. As of 2006, it was estimated that there were over 3.5 million people living in the city and only 2 million employed in both the formal and the informal economies (Karuaihe 2012:3).
Johannesburg's economy was initially dominated by mining but as a result of a decline in the mining sector, the financial and business services as well as the trade and manufacturing sectors are now the main drivers of the city's economy. This sectorial shift has resulted in a strong trade sector which has been credited with creating more employment opportunities and an increase in personal incomes (Joburg 2012).
In line with an explicit economic growth strategy, the mayoral committee has set a target of reaching a 9% economic growth rate by 2014 compared to the National economic growth target of 6% by that date (DED Overview 2009: 4).To achieve this growth rate, the city plans to reduce the cost of doing business in the city, improve infrastructure and to take a more comprehensive and directed approach to supporting the city's economy (DED Overview 2009:4).
3.3 The economy of the City of Johannesburg CoJ contributes about 17% to the South African and 48% to the Gauteng economies respectively and also accounts for 17% of national formal employment. This implies that
35 in terms of its own projections, CoJ is expected to create about 850 000 jobs over 5 years, which amounts to 170 000 jobs per annum (Karuaihe 2012:5).
With CoJ considered the largest municipal economic contributor, it is expected to lead the frontier in terms of the development of a sustainable, social and competitive economy (Karuaihe 2012:5). According to the Gross Value Added (GVA) data from StatsSA, CoJ recorded higher growth rates than both the national and provincial (Gauteng) economy for the year ending 2011 (Draft Johannesburg Economic Review 2012: 6). The C0J's Growth and Development Strategy (GDS) will undoubtedly increase the GVA in accordance with the new growth path paradigm.
34 Growth development strategy and local economic development The CoJ's growth development strategy was adopted in 2006. It was developed as a long—term strategy which detailed the future development path for CoJ. Before the adoption of the GDS, the city already had a number of strategies in place such as the Transport Plan (which was instrumental in the development of the Rea Vaya bus transit system) as well as the Human Development Strategy amongst others. These existing strategies were integrated into a single city strategy (Growth Development strategy 2011:1).
Under the Municipal Systems Act 32 of 2000 (South African Government Website 2012), municipalities are tasked and obligated to develop medium-term Integrated Development Plans (IDPs). Thus, the GDS is positioned to frame the IDP as well as charting the long-term strategies and decisions relating to the plans that the city needs to carry out if there is to be economic growth and human development (Growth Development Strategy 2011:1).
The GDS has six principles that guide it and these principles are inclusive of the goals that the second economy hopes to achieve. The principles as stated in the Growth Development Strategy (2011:15) are: 3.4.1 Eradicating poverty.
36 3.4.2 Building and growing an inclusive economy. 3.4.3 Building sustainable human settlements. 3.4.4 Ensuring resource security and environmental sustainability. 3.4.5 Achieving social inclusion. 3.4.6 Promoting good governance.
Principles 3.4.1, 3.4.2, 3.4.4 and 3.4.5 relate to the basics that the second economy seeks to accomplish. The second economy seeks to eradicate poverty and facilitate economic growth with the end goal of creating job opportunities for those who are often excluded from the "formal" sector.
Therefore, whilst the sectors that the study focused on may not specifically form part of the president's outcomes or even the CoJ GDS, they are connected to the LED plan as economic growth in the informal economy is paramount. Thus, the sectors that are discussed in this research paper are integral links to the IDP of the CoJ (Leseka 20123).
3.5 Informal sector employment According to Devy, Skinner and Valodia (2006:236), in October 1997 employment in the informal economy was 965 000 and it increased to 1.9 million in September 2003. It was projected that in 6 years the number would have doubled. They also noted that the projection of such growth might not be accurate as the data used was largely based on household surveys. Household surveys mainly focused on business's run from the owners' homes such as spaza shops, barber stores etc. These surveys did not account for the informal workers who do not operate their business from their homes (Karuaihe 20 12:16).
There has been an upsurge in the number of people employed in the informal sector since 2003 and some participants in the formal sector have lost their jobs. According to the 2013 Quarterly Labour Force Survey (QLFS) in the 4th quarter of 2013, employment levels rose to 15,2 million - exceeding the numbers reached since quarter 4 of 2008
37 during the pre-recession period. However, quarterly job increases of 141 000 in quarter 4 of 2013 were mostly because of an increase in informal sector employment. As well, most of the increase was among people with temporary and short-term contracts (StatsSA 2014).
3.6 The Department of Economic Development The Department of Economic Development (DED) has been mandated to facilitate economic growth and development within the CoJ. (DED Economic Report 2011:3). In keeping with this mandate the department often collaborates with other spheres of government (i.e. the private sector, civil society, and the general public). The department together with its four municipal entities (Johannesburg Tourism Company, Metro Trading Company, Johannesburg Property Company and the Johannesburg Market) collectively form the economic generators of the CoJ. This collective's strategic areas of focus are to achieve the targeted levels of economic growth and development, measure the levels of sectorial growth in segments targeted for CoJ support, job creation, enterprise development and skills, development, increase the number of vital and/or scarce skills strategic procurement, economic research, policy development and economic advisory services to other government departments and entities (DED Economic Report 2011:7).
3.6.1 The policy and programme integration directorate The Policy and Programme Integration directorate (PPI) is tasked with developing and reviewing CoJ's departmental policies and strategies, reviewing the economic regulatory environment and aligning departmental projects with the other spheres of government (DED Economic Report 2011:7).
The directorate has three key policy development responsibilities which entails developing policy recommendations for various departments as well as cascading national and provincial government's economic policies to CoJ level. The programme integration is the second responsibility which involves ensuring the implementation of policies and strategies to make sure that the department's policies are in line with the
0 CoJ's strategic objectives. The directorate has economic regulation responsibilities which relate to doing research and recommending the review of by-laws and regulations that inhibit growth (DED Economic Report 201111).
3.7. The development of the second economy policy Unemployment has plagued the CoJ as much as it has affected other Metropolitan governments in South Africa. As a result, the initial plan of reaching 9% economic growth now seems unattainable. According to the Quarterly Labour Force Survey (QLFS 2014) 2000 new jobs were created in the informal economy since December 2013.
Thus, the C0Js second economy policy takes the stance that the jobs that are needed for the desired growth rate would ultimately have to be generated instead by the second economy. Government regulation and assistance would therefore be needed to ensure that the informal/second economy sector thrives and grows (C0J Second Economy Policy 2011: 6).
The development of the second economy policy in the C0J was spurred by an apparent gap in the informal trading by-laws, as those by-laws were not inclusive of other informal economy activities aside from trading. Thus, the policy was developed with the intention that it would be an overarching policy for the informal economy, as it would detail how the city would approach all spheres of the informal economy (DED Mayoral Committee Report 2011:4).
The second motivation for the development of the second economy policy was that it was becoming increasingly evident that this sector had the potential to create jobs. Low employment is probably the most challenging economic issue facing the CoJ and the country as a whole and it seems as if the first economy has so far not been able to keep up with the growth in numbers of the labour force (The Economist 2004).
39 Given the importance of the second economy towards the strategic goal of job creation, it was vital that the CoJ develop a responsive but robust policy framework for this. Failure to capture the pofential of the informal economy as a creator of new jobs (e.g. food vendors in the catering business and car-washers in the cleaning sector) means that a great opportunity to tackle unemployment in the metro would be missed (C0J Second Economy Policy 2011 :7).
Therefore the policy seeks to enhance the equitable and sustainable growth of the economy by advocating for the support and development of new forms of tripartite arrangements (government, labour and business) that seek to protect the vulnerable employees in the informal sector at the threat of informalisation of the formal sector. Ultimately, the more efficient and productive the informal economy operators are the greater their contribution to the economy and higher standards of living for all (CoJ Second Economy Policy 2011:3).
The policy is not meant to only regulate or facilitate entry and operation in the informal economy to be a tool to assist in the following (DED Mayoral Committee Report 2011: 4): • Enhance links between the formal and informal economies. • Increase the capacity of the informal economy to create jobs and employment. • Improve the working conditions in the informal economy. • Encourage competition. • Boost innovation. • Promote growth of sustainable enterprises.
The policy like its Durban counterpart (Durban Informal Economy Policy 2011) takes a sector based approach. The policy addresses 6 sectors in the informal economy. They are the security sector (car guards), beauty industry (hairdressers), cleaning services (car washers), telecom sector (pay phone operators), child care services and lastly the green economy or recycling sector (waste pickers). These sectors were selected by the
Ell DED as they were identified as being the dominant informal economic industries in the C0J (DED Mayoral Committee Report 2012:5).
Policy makers believe there can be no-one-size fits all approach to the informal economy (UNESCO 2014). To optimise growth and development in each of the chosen sectors there needs to be projects designed specifically for those sectors in the form of sector-specific interventions. For the purposes of this dissertation, the car guard and waste picking sectors will be discussed at length as these were the two sectors where projects had been launched under the second economy policy.
3.8 Conclusion This chapter looked at the socio economic profile of the CoJ; understanding the dynamics of the Metro is instrumental in understanding the environment that the policy programmes were implemented in. The CoJ set a projected economic growth goal of 9% by the end of 2014; in line with its mandate the DED developed the second economy policy as one of the key legislative pillars in support of the growth of the city's economy.
Chapter three also highlighted that the second economy policy was developed with the intention of it being the overarching policy that will inform all future policies and programmes in the informal or second economy. The policy also serves as the background to the facilitation of the growth of the informal economy with the final outcome being sustainable job creation and business opportunities for the unemployed with the aim to alleviate poverty. The next two chapters will discuss the waste pickers and car guards second economy policy projects respectively.
41 CHAPTER FOUR ANALYSIS AND ASSESSMENT OF EMPIRICAL FINDINGS IN THE WASTE PICKING SECTOR
4.1. Introduction The Green Economy in recent years has taken off smoothly as it provides both an environmentally friendly and sustainable alternative with regards to economic development, whilst providing green innovative job opportunities. The waste pickers are an example of the possible job opportunities that this sector could provide.
The CoJ generates over 1.6 million tons of waste annually and all the waste generated goes to the city's landfill sites (Pikitup Mayoral Committee 2011:1). The city currently has four operating landfill sites of which three are almost reaching capacity and left with less than 10 year disposal air space (Pikitup Mayoral Committee 2011:3). Illegal dumping of waste at the city's open spaces is also a problem that calls for serious intervention (Pikitup 2014). The National Environmental Framework (1998:5) also encourages waste reduction, prevention and reprocessing in order to minimise waste going to landfill sites. Therefore, the integration of the waste pickers into this initiative will be of great benefit towards achieving the CoJ waste minimisation plan (Pikitup Waste Management Strategy 2013:4).
Waste pickers collect and sort recyclable items, which they later sell to recycling plants. These activities are often dirty, smelly, strenuous, and hazardous to their health and also dehumanising. Yet, these individuals carry out these activities for which they are often looked down upon with pride and diligence; with the knowledge that they are doing an honest day's work for their families' economic survival (Asiye Etafuleni 2014).
Researching and understanding the sector is imperative as it leads not only to creating policy programmes to assist those who operate in this sector but it also puts a human
42 face to members of the society that have to a large extent been forgotten (Groundwork 2014).
Engaging the waste pickers is deemed is an integral step by the policy project developers as they are confident that from an economic development perspective, the green economy goes beyond the three R's: reuse, reduce and recycle (Waste Reclaimers Committee Meeting Minutes: 13/04/2012). The CoJ is of the opinion that it has the potential to create sustainable jobs in both the formal and informal sectors. Thus, by formalising the sector the policy aims to go beyond waste minimisation but to also focus on increasing employment and economic opportunities (Department of Environmental Planning and Management Report 2011:3).
Advancing beyond the three R's, the C0J seeks to formalise the waste picking sector whilst simultaneously developing the green economy in Johannesburg (Waste Reclaimers Committee Report 2012: 4) by doing the following:
• Increasing the income of the waste pickers through boosting their beneficiation in the city's waste management industry. • Improving their working conditions by providing them with sorting, storage and ablution facilities (Second Economy Policy Mayoral Report 2011:8). • Improve their skills levels by offering them training on recycling strategies as well as road safety. • Provide tools of the trade such as luminous bibs, gloves, glasses and ergonomic trolleys (Department of Environmental Planning and Management 2012).
4.2 The current state of the waste picking sector in the CoJ In recent times the city has come to recognise that the trolley brigades or waste pickers form an integral part in waste minimisation. They do so by diverting a huge amount of waste going to the landfill sites (Department of Environmental Planning and Management Report 2012:4). They also take part in reducing the Metro's expenses by
43 gathering waste that would otherwise have to be transferred to the landfill and disposed of with public funds (Pikitup Mayoral Committee Presentation 2011 :4).
The DED took the decision to empower the trolley brigades through various interventions. The objective of empowering the trolley brigades was aimed at economically capacitating them. It was also to empower trolley brigades on waste management issues to mitigate risks associated with environmental and health hazards they encounter whilst reclaiming waste; and lastly to educate the public about the role played by trolley brigades in terms of waste management (Mthombeni 2012:3).
A fact finding study was conducted by the DED to identify and further understand the challenges faced by the waste pickers in the Johannesburg CBD (Green Economy Research Paper 2012:9). Amongst the challenges they face is that the service they provide is not appreciated and to some extent is not legally recognised. The role of waste pickers is not recognised in the Waste Act (2008:8) in municipal waste management.
The Act actually recognises salvaging of waste but the minimum requirements for landfills criminalises the picking of waste by waste pickers for recycling purposes, which is the livelihood of waste pickers (The Waste Act 2008:12). The recyclables collected from the municipal landfill sites and domestic garbage bins are exchanged for money from recycling companies, or middlemen, as they are referred to by the waste pickers.
Other challenges that are still faced by waste pickers in South Africa include exploitation by the middlemen (recycling buy back centres) fuelled by privatisation of waste reclaiming, skills development, child labour on waste sites, potential burning of resources through municipal waste incineration and the dumping of hazardous waste on landfill sites; and lastly intimidation by Metro Traffic Officers (Waste Reclaimers Workshop Report 201 1:3). It is estimated that there are around 85,000 waste pickers in South Africa, with the average waste picker earning R120 a day (Carras 2012). In the C0J as of 25 August 2014 the waste reclaimers committee has collected data that indicates a dramatic increase in participants of this sector from the mere 20 that were interviewed at the time that the author started work on the dissertation to 224 participants in the waste reclaimers project (C0J Environment, Infrastructure and Services Department Research Unit June 2014).
4.2.1 Regulation of the waste picking sector in the C0J There are no direct policies aside from the proposed second economy policy that deals directly with the waste picking sector. Currently, these activities although not clearly defined would be grouped under the Informal Trading Policy.
The principles of the Informal Trading Policy which include the absorption of the poor, sustainable and inclusive growth, social safety, infrastructure development and innovation in government strategy; highlight the city's determination to create work and entrepreneurial opportunities within the informal trading sector and to ultimately build a progressive relationship between formal and informal enterprises (Steyn 2011 :8).The Acts and regulations that currently govern the waste picking sector in the CoJ are:
. The Business Act of 1991 Local government is required to provide a conducive area for economic growth, as the Act authorizes local government to make bylaws it must first consider the effect of said bylaws on businesses (Steyn 2011:9).
Municipal Systems Act of 2000 Under the premise of the Act (Municipal Systems Act of 2000), the management of solid waste that is disposed of at a waste disposal facility is owned by the municipality. Therefore waste treatment and disposal facilities; and the control of litter. This means that the waste pickers that enter the municipal landfills without permission are in fact stealing city property.
45 . The Waste Act 59 of 2008 Municipal waste management is not recognised as a role for waste pickers in the Act. The Act recognises salvaging of waste but the minimum requirements for landfills criminalises the picking of waste by waste pickers for recycling purposes, which is the livelihood of waste pickers (Waste Act of 2008).
4.3 Waste pickers committee The Waste Pickers Committee was a result of the Waste Pickers Workshop that was hosted by the DED in October 2011. The waste reclaimers steering committee comprises of the DED, Department of Environmental Planning and Management and Pikitup. These departments join forces to work on the development and formalisation of the waste pickers or reclaimers within the CoJ.
The three committee members have their own individual objectives which are:
. The DED is interested as highlighted in the yet to be approved second economy policy; to formalise the sector and to create sustainable jobs (DED Objectives 2012). . Pikitup has been tasked with the responsibility of reducing general waste intended for landfills through waste minimisation and recycling initiatives (Pikitup 2012). Department of Environmental Planning and Management focus is on keeping the CoJ clean (Joburg 2012).
The current national objective the green economy is that there should be a synergy between government objectives, sustainable development and climate change. The steering committee follows the objectives stipulated in the Infrastructure and Services Department's Waste Management Strategy of 2011 as well as the lOP 2011-016 Sector Plans which include the following:
M. • Decrease waste going to the landfill through waste minimisation and recycling (target 20 % of all general waste). • Construct and initiate a waste to energy plant (00,000 tons per annum plant or 30% of all general waste). • Obtain additional landfill space for over flow (50% of all general waste).
Having project objectives but having no project approach mechanisms is indicative of a break in the link of "what to do" and "how to do it". While identifying the project objectives is important, how the project will be carried out must also be identified early on in the planning process.
In line with this notion the following table illustrates the link between project objectives and project approach mechanisms.
Table 2: Project objectives and approach for the waste pickers project
Project Objectives Project Approach Progress as of 25 August 2014 To register all trolley Identifying and register 224 waste pickers have brigades within the City trolley brigades (through been identified and data collection: registered questionnaires etc.)
To form waste pickers into Identify their With the assistance of the cooperatives representatives, have the South African Waste waste pickers form Pickers Association cooperatives with the (SAWPA) the Waste assistance of the DED pickers were able to select training and SMME their representatives support team To create informal & Provide training A service provider has
47 formal jobs opportunities been identified 224 Waste by ensuring sustainability Reclaimers on relevant through capacity building accredited unit standards linked to LGSETA Environmental practice NQF level 3 promote the usage of the launch the separation at The separation at source "three bag system" to source in the project in the project at Waterval has simplify the process of Waterval District and give been in operation for over separating recyclable it the waste pickers 2 years. And the project materials engaging in the project has also been launched in necessary support for Zondi, Soweto them to sustain themselves
Source: Waste Committee Report (2014:3)
To achieve the above mentioned objectives each one of the members of the waste picker's task team has been given a task that falls within their individual department's mandate. The DED has been tasked with organising the waste pickers into cooperatives as well as providing the appropriate training. The EMD has been tasked with providing and sourcing the tools that the waste pickers will need to carry out their services in a "formalised" manner. Pikitup's separation at source project will provide the waste pickers the chance to bid for tendering services, as the tender process for the service providers of the project will include the various waste picking cooperatives. Pikitup's separation at source project will be discussed at length later in the chapter.
4.4 Separation at source project The separation at source project is a Pikitup waste minimisation initiative that was piloted in the Waterval area in November 2009. The project is based on the principle of
48 a recycling three bin system in the sense that the participating households are given three waste disposal sources (Pikitup Mayoral Committee 2011:2):
. The Pikitup 240 litre bin for non-recyclable waste (e.g. food scraps) . Clear heavy duty bags for plastic, glass and cans Orange heavy duty plastic bag for paper, cardboard and magazines
The project's objective was to implement sustainable waste minimisation, recycling and recovery programmes through strategically planned interventions including the advertising to residents the concepts of composting, waste-to-energy and other reuse and recycling initiatives supported by the introduction of waste separation at source programmes (Integrated Waste Management Plan 2011:71).
During the initial pilot study in the Waterval area, 56 000 households were identified for the project but only 20% of the identified group participated. This group size was enough for the project leaders to determine the success or failure of the project. For this study only households were utilised which excludes flats (Pikitup Mayoral Committee 2011:3).
Operational expenditure for the pilot study was R2.3 million which included a media and awareness campaign as well as mail activation and door to door education campaigns (Pikitup Mayoral Committee 2011:5).
The results indicate that on average 4 tons per month of recyclable waste was diverted from the landfill sites. Over the course of the year that the project was operational, more than 2,272 tons of waste intended for landfills was diverted (Pikitup Mayoral Committee Report 2012:7). A spilt of these recyclables is as follows:
Paper 63% . Glass 24%
0 Plastics 8%
EN . Cans 4% TetraPakl%
The business model for the city wide roll-out project focuses on the sethng up of community driven cooperatives for the various buy back and sorting centres that Pikitup will provide. Waste pickers will be given first preference, and will in the long run earn a more substantial amount than they did as roaming waste pickers. The waste picking cooperatives will have to sign Service Level Agreements; however, these and other conditions will be explained to the waste pickers ahead of the signing of the agreements (Pikitup Separation at Source Report 2011:4).
The business model has the waste pickers working in the output outlet, in that they will be in charge of sorting, baling and packaging the recycled material. However, it will not be all the waste pickers working on the site, some of the waste pickers will still be tasked with sourcing or picking up the waste that might have been missed during the weekly waste collection schedule (Pikitup Separation at Source Report 2011:4).
Graph 4: Separation at source business model Inputs Process Outputs Buyers
50 Steel& Metals Smelters Manufacturers
Source: Pikitup separation at source report (2011:5)
Therefore, from a second economy policy perspective, the waste pickers that will be involved in the separation at source project will be formalised since:
They will be given uniforms and the tools of trade. They will receive training for road safety, entrepreneurial skills and the waste management system of the CoJ. They will be integrated into a project that will provide them with a sorting site and all other associated machinery to do their work.
The following section outlines results from a study conducted by the researchers to see what differences exist between the waste pickers in the CBD versus the waste pickers that operate in the Waterval area. The Waterval district was initially chosen for the Pikitup separation at source pilot because it includes a different property types, including stand-alone houses, townhouses, fiats, estates and various sized businesses (Joburg 2014). Therefore, the author chose to interview waste pickers who operate in Waterval to show the contrast in the operating areas between them and their CBD counterparts who operate in a predominantly business district.
4.5 Waste pickers study results When the DED conducted its initial research they spoke to waste pickers who were located in the inner city (CBD). The research was conducted in the Johannesburg CBD
51 largely because the data provided by the buy-back centres revealed that the majority of the waste pickers are concentrated in the CBD. The researcher has taken the same approach and interviewed waste pickers in the same area as well as waste pickers in the Waterval area. The data from these areas illustrates the changes in the sectors before the implementation of the programmes as well as after the implementation.
4.5.1 Questionnaire structure The CoJ questionnaire was divided into two sections; one section was geared towards extracting the personal statistics of the interviewees, whilst the other section was geared towards job specifics (C0J Waste Pickers Questionnaire 2011).
For personal statistics the following information was required: • Gender • Race • Age • Nationality • Education • Language Preference
Job specifics: • How long have you worked as a waste picker? • Have you always worked in this area (where you are being interviewed)? • What is the highest educational level reached? • What material do you mainly deal with? • Do you deal with the recycling plants or the corporations themselves? • How much do you make per kilogram of waste? • How many times do you sell your wares to the recycling plant per week? • How much do you make per day? • What are the challenges you face? (open ended question) • How would you describe your relationship with the service provider? (open ended question) 52 . How can the municipality help improve you working conditions? (open ended question).
The author's questionnaire for the waste pickers working in the Waterval area was composed in the same manner as the CoJ questionnaire. However, additional questions were included in order to aid the researcher to illustrate the social and economic differences between the inner city waste pickers and the Waterval area waste pickers. The questions were:
• Has there been a change in your profit margin since working in the. Waterval area? • What has been the greatest change since working in the Waterval area aside from the economic aspect?
As part of understanding the dynamics of the value chain between the waste pickers in the inner city, the researcher also interviewed the operations manager at the recycle plant where they sell their wares. That questionnaire was compiled in the following manner: • What type of customers do you cater for? • How many times do those customers sell their wares? • What type of material do they mostly sell? • What are the different price compositions of the various materials?
The next section will discuss the various research results of this study. 4.5.2 Results of CoJ waste pickers questionnaire The results below are from the waste pickers that sort their materials at Carr Street in Newtown.
Gender specifics No. Persons interviewed 5
53 Number of Males 2 Number of Females 3
Determining the demographics of gender was important as there is a difference to how much waste each gender can collect in a day. The males in the group will be able to pull a trolley with more waste and travel longer distances than their female counterparts. This indicates that to a large extent gender determines how much money a waste picker can earn.
Secondly, the waste pickers from Carr Street actually sleep at their sorting site located directly below the Ml South Carr Street on ramp (which they are using illegally). If the waste pickers leave their wares unattended they face the risk of coming back to nothing. The female waste pickers face a greater risk as there is the possibility of being sexually harassed by the drunken riotous men.
Duration of years as a waste picker Duration Number of Individuals 1-2 1 2-3 0 4-5 0 6-10 2 10+ 2
The average time of employment for the group respondents was between 6-10 years with two waste pickers who were identified as having worked in the sector for over 10 years others have been waste pickers for 16 and 18 years respectively. This indicates that the sector has been operating for a long time but it is only recently that the government has given any attention to it.
54 Age of the waste pickers Age Groups Number of Individuals 15-22 21-25 0 26-30 1 31-35 0 36-40 1 41-45 1 45+ 1
Of the 5 respondents there was only 1 respondent that was in the 15-22 age group at 19 years old. The rest of the group comprised of persons over the age of 36 years. There is a correlation between the age and duration of years worked in the sector. The oldest members in the group have also worked for the longest period.
Educational level completed Educational Level Number of Individuals Grade0-8 3 Grade 8-12 2 National Certificate Diploma, Degree 0
All 5 respondents have a poor educational background, which could account for their participation in this sector. Due to their low educational profile, they might not meet the employment specifications since a grade 12 or a Matric certificate is the minimum qualification requirement for most jobs in South Africa.
Type of material sourced TMaterial Number of Individuals LPlastic 4 Glass 4
55 Paper (white office paper) 1 Cardboard 4
There are various pricing measures for various waste materials and the majority of those interviewed deal in plastic, tin, cans and cardboard which happens to be the least lucrative material to trade in. Only one respondent collects white office paper which has a higher value attached to it when compared to the other materials mentioned above.
Earnings per week Earnings (Rands) Number of Individuals 0-100 0 200-300 3 400-500 1 600-1000 1
Number of times per items sold per week Number of Times Number of Individuals 1 3
2-3 2
4+ 0
The money earned is directly linked to the number of times a waste picker sells their wares. The respondents that earn between R200R300 sell their materials twice a week. Respondents that earn between R400-R500 sell their materials once a week. The respondents who earn between R600-R1000 are the respondents who deal with white paper and they sell their material twice a week.
56 As previously stated the waste pickers sleep at their sorting site as they cannot leave their materials unattended since they might be stolen. The waste pickers have as a result built themselves cardboard and plastic shelters where they sleep until they have collected enough materials to sell at a profit. Therefore the number of times that a waste picker sell materials depends on the amount of waste collected and also on how much the waste pickers want to earn
One of the waste pickers that was interviewed revealed that she stays at the site for a month at a time since she wants to save on transportation cost. She sells her waste on a weekly basis but she keeps the earnings until the end of the month so that she can go home and pay the children's school transport fare and their school fees.
4.5.3 Results of the questionnaires completed in the Waterval area The following are the results of the interviews that were undertaken by the author and completed in Westcliff which is a part of the Waterval area, where the separation at source project was piloted. The results in this section will be based on the type of materials sourced, earnings per week and the number of times that the waste pickers sell their wares. The results of the open ended questions of both the waste pickers in the inner city as well as in the Waterval area will be discussed in the following section.
Gender specifics No. Persons interviewed 5 Numberof Males 4 Number of Females 1
Type of material sourced Material Number of Individuals Plastic 5 Glass 5 Paper (white office paper) 0 Cardboard 5
Waste pickers collecting in this area collect plastic, gass and cardboard but not the white office paper as this particular waste is not found in large quantities in this area. This is mainly due to the fact that the separation at source project has only been piloted in residential areas. It is easier to source these materials as they are already sorted making the collection process faster.
Earnings per week Earnings (Rands) Number of Individuals
0-100 - 0 200-300 1 400-500 3 600-1000 1
Number of times per items sold per week Number of Times Number of Individuals 1 0
2-3 1
4+ 4
The waste pickers in the Waterval area on average make more money than their counterparts in the inner city. This is largely because since the recycled goods are already sorted they have more time to collect more goods, and therefore they are able to get more money. The majority of the waste pickers sell their wares on a daily basis and only one person sells them twice a week. Even without the collection of white office
58 paper, one respondent was still able to earn more than R600 in a week. Since the waste pickers do not have to stay overnight with their wares, they are able to return home at the end of the day.
4.5.4 Open ended question responses The following is a summary of the open ended questions that where asked in the two questionnaires.
. What are the challenges you face? When the waste pickers were asked what challenges they face during the waste collection process, they cited that they have no area to sort and store their materials. They also stated that JMPD confiscates their materials and in some instances they even take away their trolleys. Additionally, they highlighted that they are unable to collect waste during the early hours because it is still dark and the motorists cannot see them sometimes leading to them being involved in accidents. Harsh weather conditions were also cited as a challenge as when it is raining it becomes harder to work because there is nothing to keep them and their trolleys dry whilst when it is too hot it slows them down as they become tired more easily.
• What can the CoJ help you with? The waste pickers expressed that the CoJ can provide them with a space/building where they can sort through their wares without fear of being intimidated by JMPD. Protective gear was also cited as something that the CoJ could assist them with.
4.5.5 Buy back centre interview In most cases the buy-back centres are thought to be the reason behind the low profit margins of the waste pickers. Thus, in order to understand the role of the buy-back centres and how the waste pickers fit into the equation, the researcher met with the general manager of Remade Recycling which is located at Carr Street and is
59 consequently the buy-back centre that the waste pickers who were interviewed for this research paper use.
The branch manager at Carr Street Remade branch stated that they cater for a large number of waste pickers in Johannesburg with some even travelling from as far as Roodeport to sell their wares. He further mentioned that there is a different pricing range for different customers. The more waste you bring (both in terms of quantity and frequency) will determine how much you earn. One gets the impression that the waste pickers are "small fry" compared to other customers, since waste pickers bring waste in small quantities and on a daily basis. The manager further elaborated that the only way for waste pickers to make a profit on their wares is to collect for a whole week and trade only once as the data base allocates certain prices based on how much waste you bring in per weighing.
4.6 Empowerment evaluation: waste pickers According to the empowerment measurement methodology by Alsop, Bertelsen and Holland (2006:15) which states that tracking the variances in capabilities that deny individuals or groups the ability to make transforming choices, enables social research to measure how the environment can either empower or disempower the actors.
In the case of the waste pickers the agency (waste pickers, waste pickers association and other government departments) was engaged in how the CoJ can make a meaningful change in the environment (policy, infrastructure etc.) in order to enable the agents to work efficiently and effectively towards their development goal (collecting waste and selling it for a profit). The agents were engaged through interviews as well as during a waste picker's workshop; it was through these discussions that the waste pickers committee was able to draft their waste pickers project objectives which were discussed earlier in the chapter.
The second economy policy programmes empowered the waste picking sector in two ways; the first being that the waste pickers who operated in the Waterval area where the separation at source programme was underway earned more than their Johannesburg CBD counterparts. Also the Waterval waste pickers' working environment was improved as they do not have to stay overnight at their waste sorting area, as they had enough goods to sell at a profit on a daily basis.
Aside from the economic benefits that the Waterval waste pickers experienced, the waste pickers were psychologically empowered. Waste pickers are often ignored and side-lined in the community due to the nature of their work; therefore being able to share their thoughts and opinions on the sector that they work in was an empowering feeling as it made the respondents feel valued.
Graph 5: Empowerment evaluation: waste pickers Organisational structure Agent
Economic and Psychological Empowerment CoJ Waste Waste Pickers Pickers participation and Committee opinions Engagement
Source: Author
4.7 Conclusion This chapter dealt with the research results from the waste pickers who operate in the CBD (Braamfontein and Newtown included) as well as their counterparts who work in the Waterval area. The results showed that the waste pickers that operate in the Waterval area where the separation at source project was piloted had an increase in earnings. Also since they (the waste pickers) did not have to rummage through the bins to source their materials as it has been separated, they were less likely to come into contact with any unsanitary itemsAlthough the waste pickers in the Waterval pilot district did not collect any white office paper due to the zone being a residential area, they still managed to outrank their counterparts as they made more money.
61 Another observation was that 80% of the waste pickers in the Waterval area only sold their materials to the buy-back centre once a week as compared to the CBD waste pickers with only 20%. This is why the waste pickers from the Waterval area made more money as selling their collected items in bulk meant that they got a better price as opposed to their CBD counterparts who on average go to the buy-back centres 2 - 3 times a week with a minimal amount of waste.
In conclusion this chapter revealed that the separation at source pilot that is headed by Pikitup and carried out with various CoJ departments including the DED resulted in a growth in earnings for the waste pickers involved in the study. The chapter also highlighted that the project empowered the waste pickers financially and psychologically.
The next chapter will deal with the analysis of the car guard sector in the CoJ.
62 CHAPTER FIVE ANALYSIS AND ASSESSMENT OF EMPIRICAL FINDINGS IN THE CAR GUARD SECTOR
5.1 Introduction Limited research exists in South Africa on the car guard industry. Levels of car theft in the country have escalated, prompting an increase in the number of informal car guards. The service car guards provide for motorists parking their cars in the central business districts (CBDs) of cities, at sporting events, restaurants and especially at shopping centres and even at churches, has become a common sight in the CoJ.
Car guarding started, according to Kitching (1999:7) as an ad hoc service where people would offer a service in exchange for a donation. The services they offer have since evolved (car washing) and now these workers are easily recognised by their bright jackets or shirts in many public/private parking areas around the country
Kitching (1999:8) states that this phenomenon became organised in 1995 when Car- Watch was founded in Durban. However, according to section 6 of the Security Officers Act 92 of 1987 people offering a security service, are by law required to register as security officials with the Security Officers Board of South Africa.
The car guard industry is steadily growing in South Africa, whether you park your vehicle in public or private parking areas there is always a car guard service being offered. As long as motor theft is prominent in crime statistics, the service that car guards offer will remain invaluable (Saunders and Lynn 201 2:2).
Within the CoJ the car guard industry is thriving, and is offered outside restaurants, public gatherings, sporting events and municipal parking spaces in the CBD (inner City, Sandton, Randburg). The industry if adequately organized has the potential to create sustainable jobs for many people (Ranchod 2012).
63 5.2 The state of the car guard sector in Johannesburg As previously mentioned very little information exists on car guards in South Africa and to a large extent the world, since most countries use electronic parking meters. Aside from working papers written by McEwen and Leiman (2008), Blaauw and Bothma (2003) and the odd news pieces from publications such as the New York Times titled "In an Informal Economy, Part Valet, Part Hustler" (Eligon 2012); the author had to rely on reports generated by DED employees and the questioner results from the interviews.
5.2.1 Characteristics of car guards/ who is most likely to become a car guard In the New York Times article titled" In an In formal Economy, Part Valet, Part Hustle( it is noted that car guards are most likely to be young black men; and this was validated by the DED car guard sector paper (2011:3) which gave the characteristics of car guards in the Johannesburg region as the following:
Car guards are most likely to be low skilled, earning little and work under severe conditions. • Many are black males. • In many cases they may be illegal/legal immigrants. • Uneducated or left school at an early age. • Those who struggle to find employment in the formal sector.
Initially car guards were identified as one of the sectors that the second economy policy programme was going to focus on mainly because of the sheer number of them either at shopping centres, business districts or in the city centre. There was a marked difference between the car guards in the obvious sense that some looked more "presentable" in their uniforms as opposed to some of the other car guards who only wore bibs (Mathebula 2011:6).
It was also noted that car guards who worked in a more structured environment worked under better conditions as:
M. They had protective gear for harsh weather conditions (cold, rain and heat). . Clients were more likely to pay for their services. They have access to toilet facilities
Their more informal counterparts who usually wear bibs and are not recognised as "legitimate" car guards were most likely:
• To face rude/uncooperative clients. • Not get recognition for their service (payment). • Face the stigma of being labelled a criminal. • Not be protected by labour legislation. • Lack of a career path.
This obvious difference is what led to the CoJ's decision to formalise the sector as a way to create credible employment opportunities as well as to have a constant visible parking attendant as a deterrent to criminals and thus to limit car thefts and break-ins (Leseka 2012:11).
The CoJ endeavoured to formalise the sector legitimising the service to car owners by providing the car guards with uniforms and a systematic method to track the length of time that a car is parked and to determine a set amount for certain periods of time much like the old parking meters (Leseka 2012:13).
Under the current legislative environment in the CoJ, the parking grounds by-laws is the only regulation that looks at car parking. The parking grounds by-laws which were adopted on the 21 May 2004 make no reference to car guards but sets the parameters under which these individuals carry out their work. At the time of the completion of this document, the parking bays in the city were still using the parking meter system, where car owners were required to insert coins into a machine which was responsible for registering the amount of time a vehicle could be parked in a particular bay. This system
65 was no longer operational in some parts of the city which meant that the city received no revenue for its parking bays (Parking Grounds By- Laws 2012:3).
Seemingly the by-laws highlight a new pay and display system, in which car owners receive a ticket that states the date and time of issue, the duration that the motorist is permitted to occupy a parking bay as well as the code of the machine which issued the ticket. This new system was to be used for parking grounds which are defined as any area set aside by the council as a parking ground. No mention is made of the kerbside parking bays which are predominately where the majority of car guards operate (Parking Grounds By-Laws 2012:3).
If one takes into account the above mentioned by-law it means that the car guards are operating illegally on city property. Therefore when the JMPD was set to launch a paid kerbside parking system the DED presented the idea to JMPD officials to integrate the current informal car guards into the system to both legitimise the service but to also guarantee the car guards a set wage, which would see car parking as a valid opportunity for job creation (Mathebula 2011:8).
The informal trading by-law highlights the issue of environmental health and safety as some of the car guards in the CBD are also engaged in the car washing sector to supplement their income. The Informal Trading by-law states that all properties on which trading of services or goods are done should be kept clean and sanitised. All traders are cautioned to ensure that no substance or odor resulting from their economic activities should cause pollution of any kind. However, due to uneven surface areas and in some areas the unavailability of storm water drains, the water used in the activity of car washing tends to stagnate in patches which leads to not only the build-up of bacteria but also a stinky stench (Informal Trading By-laws 2010).
In December 2010 the paid parking system was launched in Braamfontein, Johannesburg. The paid parking system is a Johannesburg Metro Police Department (JMPD) initiative aimed at generating funds for the general upkeep of Street infrastructure; whilst simultaneously encouraging less traffic into the city centre. This is a large undertaking therefore JMPD decided to tender the logistical running of the system to ACE Parking Services which would be provided with possible staff by the DED in the form of car guards who were already operating in the area as part of its second economy programme geared at formalising the car guard industry (Car Guard Report 2011:7).
ACE Parking Services is a company based in Cape Town and has been credited with managing the parking services of many municipalities around South Africa (Ace Parking Training Manual 2011:2). Under the contract agreement ACE parking are charged with collecting payments for parking; they are in no way allowed to issue fines or impound cars (Ace Parking Training Manual 2011:2). The paid parking system works as follows:
Graph 6: Ace parking sequence
Source: Car guard report (2011 :5)
67 The paid parking system was heralded by some as a great initiative that will generate funds at no extra cost to tax payers (Braamfontein Improvement District, 2012). However, the implementtion of the programme has had far reaching consequences. During initial discussions with JMPD and ACE parking before the launching of the Braamfontein pilot, it was agreed that the policy developers would assist the JMPD and ACE parking with gathering data. According to the Braamfontein Improvement District (2011), the Braamfontein area was chosen for the pilot due to its varied property identity which includes:
• Business district (Johannesburg Civic Centre, Momentum Employee Benefits, COSATU House etc.). • Entertainment hub (Joburg Theatre, Wits Art Gallery). Schooling zone (Witwatersrand University, National School of the Arts etc.). Shopping zone (Pick n Pay, clothing retailers).
Therefore parking in the area is always in demand, and due to its geographical size, Braamfontein was ideal for the study as the results could be controlled.
The data which included the personal statistics of the car guards, their location as well as their activity was collected from the car guards during interviews with a predetermined set of questions (the questions are detailed in the results section of the chapter) to integrate them into the formal ACE parking system (Car Guard Report 2011:3).
In light of this agreement policy developers interviewed the informal car guards in the Braamfontein area; this revealed that they (the car guards) were willing to be absorbed into ACE Parking Services. However, when the project launched in December of 2010, none of the informal car guards were employed by ACE (Car Guard Report 2011:3).
The new paid parking system has impacted the car guards as well as the business owners where the ACE parking marshals are stationed. Businesses in Braamfontein
M. have aired their displeasure at the system, maintaining that this new parking system has chased away their custpmers as car owners are unwilling to pay the parking fee (Braamfontein Improvement District 2011 :2).On average car guards are tipped between Ri and R5 for however long the car is stationed in their care (Capitec Bank 2014). Under the ACE parking system motorists pay R4.75 for 0 -30 minutes, R9.50 for 30 to 60 minutes and an extra R4.75 per 30 minutes thereafter (Ace Parking 2014).
Business owners and clients say that since parking marshals (ACE Parking employees) do not guard the cars (they merely issue the parking slip and collect the money), the safety of their cars is not guaranteed even when motorists pay what they consider to be hefty prices. Currently motorists pay R8 an hour and R4 for half-an-hour with no less than 74.8 % of revenue going to the service provider (ACE Parking) and 25.2 % of revenue actually going to the C0J coffers (Ranchod,2012).
5.3 Car guard sector research results The DED during its fact finding study interviewed informal car guards before the implementation of the ACE paid parking system in Braamfontein where it was piloted. The author conducted interviews after the implementation of the ACE parking system in order to determine how the change in system had impacted on the car guards.
5.3.1Questionnaire structure In total two different interview sets were used for the fact finding study for the car guard sector, one was compiled by the DED, and one by the author. The questionnaires were compiled as follows:
The results of the C0J car guard questionnaire that In August 2010, the C0J carried out interviews with the car guards in the Braamfontein area ahead of the implementation of the paid parking system in December 2010. The structure of the questionnaire was as follows: Personal statistics of respondents • Gender
99 • Age • Nationality • Educational level • Language preference
Job specifics How long have you worked as a car guard? . How much do you make a day? • Would you be interested in being integrated into the paid system and being employed by ACE parking?
The follow up questionnaire after the implementation of the ACE paid parking system, shared many similarities with the first. It was only the job specifics section that was different.
Job Specifics How long have you worked as a car guard? • Have you always been in this spot (geographical area)? • How much do you now make after the implementation of the paid parking system? • Were you displaced and who displaced you? (open ended question) • How where you displaced - did you get a letter, called to a meeting were you warned not to work in these streets anymore? (open ended question) • What are your future plans? (open ended question)
The questionnaire compiled by the researcher utilised the same personal statistic questions as the DED, but the job specification questions were different. The questionnaire was structured as follows:
Was the implementation of the paid system positive or negative?
If negative, why has it been negative 2 :
70 - loss of income - intimidation by JMPD - customers refusing to pay - other • How much do you earn since the implementation of the system? Do you plan on staying in this sector? If you plan on staying, will you be working in this area?
The following section will discuss the results of the various questionnaires.
5.3.2 Research results The Braamfontein results that will be discussed are gender, age, educational level, duration of years in the sector, money earned per day, whether participants will be willing to be employed by ACE parking and all the open ended questions from the follow up questionnaire.
The interviews were conducted in the various property zones (entertainment, retail etc.), this was done because the parking profiles of the areas would be different in terms of the length of time a car would be parked.
5.3.2.1 Research results from the CoJ Braamfontein car guard questionnaire Only 5 of the respondents were from the CoJ questionnaire as only 5 of the respondents were willing to be interviewed by the author, as they were antagonistic and felt that the CoJ and ACE parking had tricked them and since the researcher was part of the CoJ team that carried out the first interviews they were unwilling to speak to the author.
Therefore the 5 questionnaires used from the CoJ results were the 5 respondents who were willing to take part in the second independent interview.
Gender
71 No. Persons interviewed Number of Males Number of Females
Age of car guards Age Groups Number of Individuals 15-22 0 21-25 0 26-30 0 31-35 1 36-40 2 41-45 2 45+ 1
Duration of years as a car guards Duration Number of Individuals 1-2 3-4 0 5-6 7-8 1 8-10 2 10+ 2
Educational level Educational Levels Number of Individuals Primary School 1 High School 4 Tertiary j0
72 Earnings per day Earnings (Rands) Number of lndivKivals
0-100 - 1 100-200 2 200-300 1 300-1000 1
Willingness to work for ACE parking Response Number of individuals
IYes 4 Lo
5.3.2.2 Research results from the researchers Braamfontein car guards questionnaire Earnings per day Earnings (Rands) Number of Individuals 0—lao 3 100-200 1 200-300 1 300-1000 0
Has the respondent always worked in the area at which they were interviewed? Response Number of Individuals Yes 1 No 4
Were you displaced? Response Number of Individuals Yes 4 No 1
73 How were you informed about your displacement? - Response Number of Individuals Letter 0 Meeting 0 Warned to no longer work in the area 1 No notice was given 4
What are you plans, do you plan on staying or leaving the sector? Response Number of Individuals Stay 3 Leave 2
5.3.2.3 Summary of results of the car guard questionnaires carried out in the Braamfontein area Gender of car guards The car guarding sector in general is a male dominated field, and this is reflected in the findings of both the CoJ and the independently conducted fact finding studies in Braamfontein. The job of guarding cars itself is not labour intensive meaning that women could also venture into this sector; however, according to the respondents, most customers would not feel comfortable leaving their cars for a woman to guard.
Age and duration working in the sector From the results gathered it would seem that the guarding sector in Braamfontein's car guards are aged between 30-50 with the oldest respondent interviewed being 51 years old. In this instance the age of the car guard can be linked to the number of years an individual has been working in the sector. The oldest respondents have been working in the sector the longest while the youngest has been working in the sector for the least number of years.
Educational level
74 Whilst only one of the respondents admitted to have a basic level education (primary school) the other four have high school education with none of the respondents having passed Grade 12 (Matric). The lack of education may account for the career choice that the respondents made; however, this also highlights that outside the car guarding sector their job opportunities are limited to the informal sector as they have no formal qualifications to work in the formal sector.
Money earned Before the implementation of the paid parking system the car guards used to receive a healthy amount of earnings per day with the least paid earning R100 a day to the most paid earning between R30—R1000. However, since the paid parking system became operational a majority of the respondents now earn between RO—R100 with only the highest paid individual earning between R200—R300. This change in earnings is a result of a number of things the first being that the motorists pay the official ACE parking marshals as they run the risk of being fined by JMPD if they do not, which results in the motorist not needing the services of the car guards.
Secondly, not as many motorists come into the Braamfontein area, due to the cost they incur. This has not only impacted the car guards (parking and car washing business) but the businesses in the area have also been affected. Lastly, the car guards have been displaced or ousted from the streets that are the busiest and as a result they have had to move to the back streets where not as many cars park.
Displacement All but one of the respondents was willing to work under ACE management; however, they were blindsided as the jobs they had been promised were given to other individuals. As discussed above this has led to the car guards being displaced. Even with the threat of the paid parking system being implemented city wide, three out of the 5 respondents stated that they will continue in the sector as they have nowhere else to go. Two of the respondents however, said that they will be moving on from the sector in search of other forms of employment, as they were of the opinion that they would not
75 make as much money as before since car owners were likely to choose to pay the ACE car parking attendants as they would fear the repercussions of not doing so. They also expressed that they were hesitant to continue because of the harassment from the JMPD.
5.4 Empowerment evaluation: car guards In the case of the car guards the C0J disempowered the participants of this sector. Whereas before the implementation of the ACE parking system the car guards were able to make a living wage; after the implementation, the car guards had a dramatic decrease in their earnings and some were even willing to exit from the sector in search of other job opportunities as the car guarding industry was no longer viable for them. During the initial interview conducted by the CoJ, the car guards were asked whether they would be willing to be part of the ACE parking system, without having being told what that would entail (no day to day earning, a designated parking district etc.). The car guards were also not told of the repercussions of non-compliance so in essence their right to make an informed decision was denied to them.
During the planning stage of the project neither the car guards nor the motorists were engaged; thus, the project failed to capture the needs of the service users (motorists) and providers (car guards). There was no needs analysis done before the policy makers decided on their interventions for the sector. Therefore, the change in organisatiorial structure or environment as defined by Alsop, Bertelsen and Holland (2006: 15) led to the disempowerment of the car guards.
5.5 Conclusion This chapter dealt with the results of the study conducted with the car guards in the Braamfontein area. The car guards were interviewed first before the ACE parking system was introduced, as well as after. The results show that there has been a dramatic decrease in the earnings of the car guards in the area, with some of them leaving the industry completely. The car guards were not the only group that was disadvantaged as a result of the ACE parking system; businesses in the area have also
76 voiced their displeasure as some customers do not come into the area as they do not want to pay the fees that are charged. There was no stakeholder engagement with the car guards; therefore, the outcome of the policy programme did not meet their needs.
Their ability to make self-developing decisions was taken away as the project objectives and repercussions were not communicated to them, culminating in economic and psychological disempowerment.
In conclusion the results show that the CoJ's attempts to formalise the informal car guards sector has disadvantaged the car guards.
Chapter six will outline the conclusions of the dissertation, as well as highlight the recommendations of the author in regards to the implementation of future policy projects in the CoJ.
77 CHAPTER SIX
ASSESSMENT, CONCLUSIONS AND RECOMMENDATIONS
6.1. Introduction This minor dissertation focused on the second economy policy of the CoJ and how it has affected car guards and waste pickers in the CBD (Braamfontein and Newtown included). This study was undertaken in order to understand the consequences of policy implementation for the sectors concerned. In this case the CoJ attempted to formalise the above mentioned groups but the outcomes of this were that one group was disadvantaged by the interventions whilst the other sector thrived through the local government intervention.
This chapter focuses on the objectives that were set out in chapter one of this dissertation. The problem statement which was identified in chapter one of this minor dissertation was: "will the city of Johannesburg's attempt to formalise the security and green economy sectors in the informal economy through its second economy policy empower or further disempower the participants in those sectors?"
From this research question secondary questions evolved and were instrumental in directing the logic of this minor dissertation: . What is the second economy? • What legislature governs the second economy? • How is the CoJ and Department of Economic Development structured and why was the need for a second economy policy important? • Who are car guards and waste pickers? What is their function and why do they need to be formalised? • What was the result of the CoJ's intervention on how they operate?
78 For the purposes of illustrating how/if the operation of waste pickers and car guards was impacted either negatively or positively by the C0J's intervention, chapter four and five presented data collected by the CoJ as well as the author before and after the policy project implementation.
Very little is known about the car guard and waste pickers sectors in that they have never before been researched by the CoJ. The study was a first of its kind in Johannesburg which resulted in various workshops and seminars being held which the author was privileged enough to attend to get a better understanding of the dynamics of the sectors.
6.2 Research objectives: summary and findings The information gathered for this minor dissertation was done using primary and secondary sources. Each source of information was utilised with the intention of addressing each of the research objectives where relevant. The objectives of the study were discussed in chapter one.
6.2.1 Objective One: Review literature (policies, research papers etc.) on the second economy and the role that it plays in the economy Chapter two presents a brief literature review of the second economy by providing background of the second economy, both in South Africa and the rest of the world. It addressed how the definition of the second economy varies as policy makers often define it according to the state of the informal economy in their policy landscape. The author also looked at the debate surrounding the use of the word "second" as opposed to "informal" it was concluded that the terms could be used interchangeably as they both were based on the "dualistic" approach that is prevalent in all economies. The chapter also highlighted the advantages of the second economy to job creation and economic growth. For the purposes of this dissertation Alsop, Bertelsen and Holland's (2006:15) framework that illustrates the relationship between outcomes and how the outcomes correlate with empowerment (empowerment measurement), was utilised in order to
79 show how the waste pickers and car guards were either disempowered or empowered by the CoJ policy interventions.
According to the framework, the agents' (car guard and waste pickers) ability to make informed decisions on what they must do is linked to the organisational structure (government policy, by—laws etc.). This means unless a conducive organisational structure is created the agent will be disempowered since the environment does not encourage growth. The reason the waste pickers were empowered is because the policy interventions were a mixture of research and engagement where waste pickers were asked to weigh in on what they would like to see the end result being and ultimately what they need in order to develop.
In the case of the car guards the organisational structure was not conducive for the agent to act accordingly. The CoJ developed an intervention strategy that they thought would make development possible for the car guard sector. However, since there was no stakeholder engagement and the needs of the car guards were not properly assessed; the resulting policy interventions stopped their economic and psychological development.
6.2.2 Objective Two: Determine the need for and the details of a second economy policy in the CoJ Chapter three gave the background on the CoJ, the DED as well as the role of the PPI in developing policies geared towards economic growth within the city. The chapter highlighted the economic environment of the CoJ, and how that environment raised the need for a second economy policy to be drafted. Chapter three emphasised that the DED developed the second economy policy as a result of the gaps between the informal economy policy as well as the CoJ's by-laws. This gap realised informal trading as the only informal activity which resulted in the unrecognised being side-lined and getting no assistance from the city in terms of creating an environment where these sectors can thrive and their activities can also be governed by legislature.
We The chapter also highlighted the state of unemployment in the CoJ and the capability of the informal economy to aid in decreasing the number of unemployed individuals by introducing them to possible job opportunities in the second economy.
6.2.3 Objective Three: Determine what the effect of the policy has been on waste pickers and car guards after the implementation of the policy projects Chapter four reviewed the results of the waste pickers study. It was determined that the waste pickers who collect their materials from the CBD and other surrounding areas made less money than their counterparts who operate in the Waterval area where the Pikitup separation at source project has been piloted. It was concluded that the pay difference was due to the time spent in the field. The Waterval waste pickers had to only deposit the waste that had already been separated by the residents of the area into the 3 bag system that required them to sort their waste according to type.
The CBD based waste pickers had to rummage through loads of waste to collect their materials which was more time consuming and resulted in them being unable to collect as much. In conclusion, it was revealed that the implementation of the DED, Pikitup and Environmental Service through the separation at source, benefited the waste pickers and improved the manner in which they operate. The objectives for the formalisation of the sector were also discussed and an update on what progress has been made since the time that the author interviewed the waste pickers a year and a half ago, was also shared.
Chapter five looked at the car guards. It shared the rationale for the study, it looked at how the CoJ had planned on formalising the sector and what spurred the decision to do so. Chapter five looked at the impact of the policy intervention by looking at the questionnaire results from before and after the implementation of the ACE parking system. The results indicated that the car guard project resulted in the "illegal" car guards being displaced from the areas where some had been operating for more than 10 years. The partnership between the second economy policy writers, the JMPD and ACE Parking was not properly implemented which resulted in the poor results of the
81 project. The car guards were making money by also supplementing their duties with washing cars but with the introduction of the ACE parking system as well as the visibility of the JMPD in the area; the practice has been labelled as unhygienic. The conclusion of the study illustrated that the manner in which the DED implemented the projects was the cause of the contrasting results between the sectors. The waste pickers project consulted the waste pickers on how best the CoJ could assist them in making things easier for them, the project development was successful, as a member of the Waste Pickers Association was consulted during the project plan phase. The car guard programme, however did not fare as well as the car guards were not asked how they could be assisted but rather they were asked if they would want to be integrated into a project that did not speak to how they had been operating before.
6.2.4 Objective Four: Suggest ways to improve policy project implementation in the future This objective will be discussed in the recommendation section which will follow.
6.3 Conclusion From this study it can be concluded that the second economy policy is a vital tool in the CoJ's fight to reduce unemployment by encouraging citizens to consider other job creation opportunities. The literature that was reviewed earlier showcased the potential of the second economy as an economic growth facet and illustrated that the second economy will undoubtedly grow. Government is therefore encouraged to create a conducive environment for the informal economy to grow for that is the true meaning of empowerment.
This study also illustrated that in as much as government must create a conducive environment for these activities to thrive, there needs to be engagement between the participants and government to ensure that the interventions that government may come up with are in line with what the participants of the sector require.
82 For the purposes of this dissertation Alsop, Bertelsen and Holland's (2006:15) framework that illustrates the relationship between outcomes and how the outcomes correlate with empowerment (empowerment measurement) was referred to in order to show how the waste pickers and car guards were either disempowered or empowered by the CoJ policy interventions.
According to the framework, the agents' (car guard and waste pickers) ability to make informed decisions on what they must do is linked to the organisational structure (government policy, by—laws etc.). This means unless a conducive organisational structure is created the agent will be disempowered since the environment does not encourage growth. The reason why the waste pickers were empowered is because the policy interventions were a mixture of research and engagement where waste pickers were asked to weigh in on what they would like to see the end result being and ultimately what they need in order for them to develop.
In the case of the car guards the organisational structure was not conducive for the agent to act accordingly. The CoJ developed an intervention strategy that they thought would make development possible for the car guard sector. However, since there was no stakeholder engagement and the needs of the car guards were not properly assessed; the resulting policy interventions stopped their economic and psychological development.
In conclusion, this study was able to prove that the second economy projects that included the waste pickers and the car guards empowered the waste pickers whilst disadvantaging the car guards
6.4. Recommendations Policy makers should be able to achieve their goals without citizens being disadvantaged if they are not carrying out any illegal activities. In order for this to happen there needs to be engagements between the two parties. Creating a conducive
83 environment for the agent to operate in does sometimes require that government has a laissez-faire approach to the operations of the informal economy.
The informal economy has grown due to its informal nature, there needs to be regulations in place to ensure that whilst the agents achieve their development goals that they are still operating within the statutes of the law. It may be the case that some regulations need to be amended to suit both stakeholders; however to give the agents too much freedom, may result in them disempowering themselves which would impact on government's own socio economic development plans. The following steps are suggested to improve the implementation of the second economy policy in the CoJ:
The potential stakeholders or beneficiaries that the policy is supposed to influence need to be involved in the policy drafting phase already as opposed to engaging with them once the policy has been drafted. • Research should be carried out before policy strategies are set up. In the case of the car guards during the research phase, policy makers should have enquired what and who ACE parking is. In Cape Town ACE parking was not retained as the service provider once it was discovered what the pay rates for the car guards are. • Partner with organisations that are working towards the same goals as what your policy is set to achieve. With the waste pickers, the DED partnered with Pikitup and the Environmental Management Department when it was concluded that they were all working towards the goal of improving the manner in which waste pickers do their jobs, and providing them with the tools necessary to do so. On reflection, the DED and JMPD partnership was doomed to fail since they did not have the same objectives. Whilst the DED set out to improve the working conditions of the car guards, the JMPD was only interested in gaining revenue from the parking bays.
84 Appendix I
idwro
a world class Afrkan city
Second Economy Questionnaire: introduction of the "kerbside parking management system" in the inner city.
Questionnaire Completed By:
Name: Date: Location:
Interviewee: Contact Details: Personal Statistics of Interviewee
Gender: Male c Female o
Race: Black a Indian a Coloured o
Age: 15-20 a 21-25 a 26-30 a 31-35 a 36-40 a 41-45 a
Nationality: South Africa a Non-South African a
Education: BHS a H/School C. Tertiary
Language Preference:
IsiZulu a Sesotho a French a Setswana a
Portuguese o IsiXhosa a Xitsonga a Seswati a
English a Afrikaans C
Job Specifics
1. How long have you worked as a car guard? Have you always operated on this street?
Do you know who is Ace parking services is?
Yes:o No
Have you been informed of the new parking seniices that will be operating here soon?
5 How much money do you make a month? R
Do you understand that working for Ace parking management means that you will make less money than what you are making at the moment?
Yes c Noo
Would you work for Ace parking services?
Yeso Noo
If no why?
If yes, are you willing to work for 15% of you daily intake, plus RiO a day for transport?
87 Yes No 0
Would you work for Acre parking management?
Yes o No
If yes, why?
If no, why?
If yes, would you like to go for the parking marshal interview with Ace parking services?
Yes 0 No General comments
Appendix 2 Paseka Mthombeni Master Dissertation Questionnaire: Car Guards (Braamfontein) Interviewee: Contact Details:
Was the implementation of the paid system positive or negative? Yes No If negative, why?: - Loss of income
0. - Intimidation by JMPD - Customers refusing to pay - Other How much do you earn since the implementation of the system?
Do you plan on staying in this sector?
If you plan on staying, will you be working in this area?
99 Appendix 3
lo)Ljro
world class African city Department of Economic Development City of Johannesburg
Interview Questionnaire: Database for Waste Pickers Questionnaire Completed By:
Name: Date: Location
Interviewee: Contact Details:
Personal Statistics of Interviewee
Gender: Male C Female
Race: Black o Indian 0 Coloured 0 Age: 15-20 o 21-25 0 26-30 o
31-35 36-40 a 41-45 o
Nationality: South Africa a Non-South African o
Education: BHS a H/School a Tertiary o
Language Preference: IsiZulu a Sesotho a French a Setswana a Portuguese o IsiXhosa a Xitsonga a Seswati a English a Afrikaans
Job Specifics
How long have you worked as a waste picker?
Have you always worked in this area (where you are being interviewed)?
What is the highest educational level you have reached?
What material do you mainly deal with?
5 Do you deal with the recycling plants or the corporations themselves?
6. • How much do you make per kilogram of waste? R______
91 How many times do you sell your wares to the recycling plant per week?
How much do you make per day? R______What are the challenges you face? (open ended question)
How would you describe your relationship with the service provider? (open ended question)
How can the municipality help improve your working conditions? (open ended question
92 Appendix 4 Paseka Mthombeni Master Dissertation Questionnaire: Waste Pickers (Waterval) Interviewee: Contact Details: Personal Statistics of Interviewee
Gender: Male C Female c
Race: Black a Indian o Coloured a
Age: 15-20 a 21-25 o 26-30 a
31-35 a 36-40 a 41-45 o
Nationality: South Africa a Non-South African a
Education: BHS a H/School a Tertiary a
Language Preference:
IsiZulu a Sesotho a French Cr Setswana a
Portuguese a IsiXhosa a Xitsonga a Seswati a
English a Afrikaans a
Job Specifics
1. How long have you worked as a waste picker?
93 Have you always worked in this area (where you are being interviewed)?
What is the highest educational level you have reached?
What material do you mainly deal with?
Do you deal with the recycling plants or the corporations themselves?
How much do you make per kilogram of waste? R
How many times do you sell your wares to the recycling plant per week?
How much do you make per day? R______What are the challenges you face? (open ended question)
How would you describe your relationship with the service provider? (open ended question)
How can the municipality help improve your working conditions? (open ended question
12. Has there been a change in your profit margin since working in the Waterval area?
94 13. What has been the greatest change since working in the Waterval area besides the economic aspect?
95 SOURCES REFERENCED ACE Parking System. 2014. Parking Sites. http.,Ilwww.aceparking.co.zalsites.php. Accessed 21 August 2014.
ACE Parking System Training Manual.201 1.Unpublished Document.
A SGISA. 2012. Second-Economy initiatives. www. thepresidency. gov. zaldocs/reports/asgisa/initiatives.pdf. Accessed 12 May 2012.
A/sop, R., Bertelsen, M. F. and Holland, J. 2006. Empowerment in Practice from Analysis to Implementation. Washington: World Bank http://siteresources. worldbank. org/INTEMPOWERMENT/Resources/Empowerment in Practice.pdf. Accessed 20 August 2014.
Aliber, M., Kirsten, M., Maharajh, R., Nhlapo-Hlope, J. and Nkoane, 0. 2006 Overcoming underdevelopment in South Africa's second economy. Midrand: Development Southern Africa.
Altman, M. 2008. Formal-Informal Economy Linkages, Employment Growth and Development Initiative. Pretoria: Human Sciences Research Council.
Asiye Eta fuleni. 2014. Durban In formal Recyclers Celebrate International Waste Day. http.//aet. org. za/20 I 4/03/durban-informal-recyciers-celebrate-international-waste pickers-dayt Accessed 4 April 2014.
ASISA Assembly. Held in Cape Town 24th - 25th of June 2014
Bacchetta, M., Ernst,E. and Bustamante ,J.P.2009. Globalization and in formal jobs in developing countries. Geneva: World Trade Organisation. Geneva:lnternational Labour Office. http://www. i/o. org/public/english/bureau/inst/download/globalinform. pdf. Accessed 11 June 2012.
Basten, S. 2012. Taxation and the In formal Sector in Least Developed Countries, With A Focus On Zambia. Paris: The Organisation for Economic Co-operation and Development. http.//www.publications. parliament. uklpa/cm2Q 121 3tcmselect/cmintdev/1 30/1 30vw06. ht rn. Accessed 13 November 2012. Becker, K.F. 2004. The In formal Economy. Stockholm:Swedish International Development Cooperation Agency.
Beinart, W. and Dubow, S. 1995.Segregation and Apartheid in Twentieth-Century South Africa. London: Rout/edge,
Bernstein, J. 2003. Car Watch: Clocking In formal Parking Attendants In Cape Town. Cape Town: University of Cape Town. http://cssr. uct. ac. zals ites/cssr. uct. ac. za/files/pubs/wp55.pdf. Accessed 23 August 2014.
Blaauw, P. F. and Bothma, L. J. 2003. In formal Labour Markets as a Solution to Unemployment in South Africa - A Case Study of Car Guards in B/oem fontein. South African Journal of Human Resource Management, vol 1, Nr 2, pp 40— 44, Bogdan, R. 1972. Participant Observation in Organisational Settings. Syracuse New York: Syracuse University Press.
Capitec Bank. 2014. A Guilt-Free Guide to Tipping. hftps://www.capitecbank.co.za/moneV-management/article/359 . Accessed 20 August 2014.
Carras, M. 2012. Waste Pickers in South Africa. http://urbanearth. Co. za/articles/waste-pickers-south-africa.A ccessed 13September20 14.
Chen, M. 2007. Inclusive Urban Planning. www.unhabitat.org/pmss4getElectron ic Version. asp ?nr=2366&alt= I. Accessed 11 June 2011.
Chen, M. A.2006. "Rethinking the In formal Economy: Linkages with the Formal Economy and the Formal Regulatory Environment." In Guha Khasnobis, Kanbur, and Ostrom, eds. Unlocking Human Potential: Concepts and Policies for Linking the In formal and Formal Sectors. Oxford: Oxford University Press,
Chen, M.A. 2007. Rethinking the Informal Economy: Linkages with the Formal Economy and the Formal Regulatory Environment DESA Working Paper No. 46.
Chen, M.A., Jhabvala, R. and Lund, F. 200 1.Supporting Workers in the Informal Economy: A Policy Framework. http://wiego. org/s ites/wiego. or.g/fi,'es/publications/files/Chen-Jhabvala-Lund-Supporting- Workers-policypaper.pdf. Accessed 12 June 2011.
97 Chen, M.A., Vanek, J. and. Carr, M. 2004. Mainstreaming In formal Employment and Gender in Poverty Reduction: A Handbook for Policy-Makers and Other Stakeholders. London: Commonwealth Secretariat.
City of Cape Town .2004. Informal Trading Policy and Management Framework. https://www. capetown. gov. za/en/ehd/Documents/EHDJlnformalTradingPolicyFramework (2) - PDF 1012008145945 .pdf. Accessed 12 February 2011.
City of Cape Town. 2010. Public Parks By—Law. https://www. capetown. gov. za/en/ByLaws/Promulgafed%2QbyIa ws/Public%2QParks%20 By-Iaw%202010.pdf. Accessed 15 August 2014.
City of Cape Town. 2014. Informal Trading By—Law. http://www. capetown .gov. za/en/e hd/Paqes/informa Itrading. aspx. Accessed 12 September 2014.
City of Johannesburg. 2004. Parking Grounds By-laws. http.-Ilwwwjoburg-archive.co .zalbylawslparkingground by-laws.pdf Accessed 23 April 2012. City of Johannesburg. 2009.Department of Economic Development: Overview. Unpublished Document. Department of Economic Development.
City of Johannesburg .2009. Informal Economy Policy, http.i/www. joburg-archi ye. co. za/2009/pdfslin formal trading policy09. pdf. Accessed 12 February 2011.
City of Johannesburg. 2010. Informal Trading By-laws. http.,IA41ww.joburg-archive.co .zal2O101odfslinformat trading bylaws. pdf. Accessed23 April 2012.
City of Johannesburg. 2011. Car Guard Report. Unpublished Document. Department of Economic Development
City of Johannesburg. 2011. Department of Economic Development and Braamfontein Improvement District Meeting Minutes. 410512011. Unpublished Minutes. Department of Economic Development.
City of Johannesburg. 2011. Integrated Waste Management Plan. Unpublished Document. Department of Environmental Planning and Management City Of Johannesburg. 2011. Second Economy Policy. Pending Approval of CoJ Mayoral Committee.
City of Johannesburg. 2011. Second Economy Policy Mayoral Report, Unpublished Document. Department of Economic Development.
City of Johannesburg.2011, Waste Pikers Mayoral Committee Meeting Minutes. 1310412011. Unpublished Minutes. Department of Economic Development.
City of Johannesburg.2012. DED Objectives. Unpublished Document. Department of Economic Development.
City of Johannesburg. 2012. Departmental Report. Unpublished Document. Department of Environmental Planning and Management.
City of Johannesburg. 2012, Draft Green Economy Research Paper. Unpublished Document. Department of Economic Development.
City of Johannesburg. 2012. Economic Review. Unpublished Document. Department of Economic Development.
City of Johannesburg.2012. Mayoral Committee Report. Unpublished Document. Department of Economic Development.
City of Johannesburg.2012. Waste Reclaimers Committee Report. 2012. Unpublished Report. Waste Pickers Committee.
City of Johannesburg.2012. Waste Reclaimers Committee Report. 2014. Unpublished Report. Waste Pickers Committee.
City of Johannesburg.2014. Environment, Infrastructure and Services Department Research Unit Data. June/2014. Unpublished Data.
Cohen, D. and Horn, P. 2012. Raising the Profile of Informal Trade Management as a Key Municipal Service Delivery Function. Kwa-Zulu Natal 2012 Regional and Local Economic Development Summit. www.gijimakzn.org.za/Uploadst../SALGA STNET KZN LED.pptx . Accessed 21 August 2014. Creswell, J. W. 2006. Designing and Conducting Mixed Methods Research. CA: Sage Publications.
CSULB. PPA 696 Research Methods Data Collection Strategies : Qualitative Research htt,o.*Ilwww.csulb.edu/-msaintqI ppa6961696 quail. htm. Accessed 15 March 2014.
Davies, R. and Thurlow,J. 2009. Formal-informal economy linkages and unemployment in South-Africa. Pretoria: Human Sciences Research Council:
De Soto, H. 2000. The Mystery of Capital. Why Capitalism Triumphs in the West and Fails Everywhere Else. New York: Basic Books.
Denzin, N. and Lincoln, Y. 2000.Handbook of Qualitative Research. London: Sage
Devey, R., Skinner. C. and Valodia, I. 2006. Second Best? Trends and Linkages in the In formal Economy in South Africa, Pretoria: Human Social Research Council.
Durban Metropolitan Council. 1999. Community Economic Development: a suggested Policy framework and institutional mechanism for the 0 urban Metropolitan Council. http://siteresources.worldbank.org/INTLED/Resources/339650 114409971891 4/ProPoor eThekwini.pdf. Accessed 13 April 2014.
Durban Department of Economic Development. 2000. http://www. durban. gov. za/City Services/B ST MUiDocuments/In formal economy. Accessed 12 February 2011.
0 urban Municipality. 2001. In formal Economy Policy. http://www. durban. gov. za/City Services/B ST MU/Documents/Informal Economy Polic y.pdf. Accessed 12 February 2011.
Durieux, M. 20081abour Market Analysis Understanding the In formal Sector in South Africa. Unpublished Presentation Slides. Pretoria: Department of Trade and Industry.
Du Toit, A. 2007.1n search of South Africa's second economy: Chronic poverty, vulnerability and adverse incorporation in Mt. Frere and Khayeiitsha. http.//www.plaas. org . za/sites/default'files/publications-fidf/lotm du Toit.pdf. Accessed 21 March 2014.
Econometrix. 2001. Segment Analysis. httD://www. econometrix. co . za/segment-ana ysis. Accessed 14 March 2012.
100 Eligori, J.2012. In an informal Economy, Part Valet, Part f-lustier. http://www.nytimes.com/2Q12101/1 6/world/africa/south-african-car-guards-part-valet- part-hustler. html?pagewanted=all& r=0. Accessed 20 August 2014. e Thekwini Municipality. 2014. About EThekwini Municipality. http://www. durban. gov. za/Discover Durba n/Pages/A boutEM. aspx. Accessed 31 August 2014
Fauli, J. 2005. Tracing the Two Economies': the Politics, Policy and Practice of Pragmatism.. Pretoria: Institute for Democracy in Africa.
Fieldus Organisation. 2012. Informal Economy. http.-Ilfieldus.orcilProiectsllnformalEconomy.html. Accessed 12 August 2012.
Friedman, M. and M. Hambridge. 1991. The in formal sector, gender and development. In South Africa's Informal Economy, ed. E. Preston-Whyte and C. Rogerson .Oxford University Press.
Groundwork. 2014. Reclaiming Livelihoods. http://www. groundwork. org . za/publications/reclaiming%Iivelihoods.pdf. Accessed 3 May 2014,
Gumede, V. 2008. Poverty and Second Economy Dynamics in South Africa: An attempt to measure the extent of the problem and clarify concepts. Development Policy Research Unit Working Paper 081133. Cape Town:University of Cape Town.
Gunatilaka, R. 2008. In formal Employment in Sri Lanka: Nature, Probability of Employment, and Determinants of Wages.Geneva: International Labour Organisation.
Hart, K. 1973. Informal income opportunities and urban employment in Ghana. Journal of Modern African Studies 11, http://journals.cambridge.org/action/displa yAbstract?fromPage =online&aid=2494648. Accessed 22 April 2012.
Horn, P. 2002. Informal Work Organising the In formal Sector: Lessons for Labour. http://www.globallabour.info/en/20O7/09/organising the informal sector. html. Accessed 04 February 2011.
101 International Labour Organisation. 2001. The Informal Economy and Decent Work: A Policy Resource Guide Supporting Transitions to Formality. http.//www. i/o. org/wcmsp5/groups/pub/ic/emp policy/documents/publication/wcms 212 689.pdf. Accessed 12 May 2012.
International Labour Organisation. 2012. Promoting green jobs through the inclusion of informal waste pickers in Chile. /p://www.ilo. ora/ublic/libdoc/ilo/20 1 3/482509.pdf. Accessed 21 January 2014.
International Labour Organisation. In formal Economy Definition. http://www. ilo. org/public/english/standards/re/m/ilc/ilc90/pdf/rep-vi.pdf. Accessed 19 June 2011.
International Labour Organisation.2002. Decent Work and the informal Economy. http.//www. lb. org/wcmsp5/groups/pubiic/---asia/---ro-bangkok/---sro- new delhi/documents/publication/wcms 123348.pdf. Accessed 04 March 2011.
Joburg.2012. Department of Environmental Planning and Management. http://joburgarchive. co . za/index.php ?optioncom content&task= view&id=968&itemid= 7 8. Accessed 7 July 2012.
Karuaihe, S. 2012. Job Creation in Johannesburg. Unpublished Document.
Katungi, D., Neale, E. and Barbour, A. 2006. People in low-paid in formal work: 'Need not greed'. York: Joseph Rowntree Foundation. http://www.jrf.org.uk/sites/files/Irf/978186134893 7.pdf. Accessed 12 May 2011.
Keeran, R. and Kenny, T. 2007. New Evidence on the Second Economy. http.//mltoda y. com/subject-areas/political-econom y/new-evidence-on-the-second- economy-395.html. Accessed 11 June 2011.
Kirsten, M (1991) A quantitative assessment of the informal economy in South Africa's In formal Economy eds. Preston - White, E & Christian Rogerson. Cape Town:Ox ford University Press.
Kirsten, M.2006. Policy Initiatives to expand financial outreach in South Africa. info.worldbank.org/etools/docst../Kirsten DBSApaper-final.doc. Accessed 04 June 2011.
102 Kitching, K. 1999. Die ekoriomie van die motorwagbedryf: Bloemfontein as gevallestudie. Unpublished honours dissertation. Bloernfontein: University of the Free State.
Kruger, N. 2014. Investments: 20 Years of Achievement. http://mg. co.za/article/20 14-04-1 0-in vestment-20-vears -of-achievement. Accessed 20 May2014.
Kucera, D. and Roncolato, L. 2008. In formal Employment: Two Contested Policy Issues. http://ilo. org/public/en qlish/revue/download/Pdf/S2 kucera roncolato.pdf. Accessed 12 May 2014.
Leseka, M.2012. Second Economy Analysis for Mayoral Committee. Unpublished Document. Department of Economic Development.
Losby, J.L., 2002. Informal Economy Literature Review. http://www.kings!ow-assoc. corn/images/Informal Economy Lit Review.pdf. Accessed 28 May 2011.
Lund, F. and Skinner, C. 1999. Promoting the Interests of Women in the In formal Economy: An Analysis of Street Trader Organisations in South Africa. http://wiego. org/sites/wiego. orq/files/publications/files/LundSkinner Promoting interests women IE 1999.pdf. Accessed 25 March 2012.
Macmillan Dictionary: Definition of a Car Guard. http://www.macmillandictionanj. corn/dictionary/british/car-guard . Accessed 12 April 2014.
Mail and Guardian.' Inclusive Economies Seminar 8th April 2014.
Mamia. T. 2012. Quantitative Research Methods, http.//www. uta. fii-tm4 7874/opetus/tuennot/lecture 1. pdf. Accessed 23 June 2012.
Masondo,A. 2011. State of the City Address. http://www.iOburg.or.g. za/index.php?optioncom content&view=article&id=6324:the- 201 1-state-of-the-cit y-address&catid--96<emid= 114 4ccessed 11 July 2011.
Mathebula, B.201 1. Car Guard Sector Analysis. Unpublished Report Department of Economic Development.
103 McEwen, H and Leiman, A.2008. The Car Guards of Cape Town: A Public Good Analysis. A Southern Africa Labour and Development Research Unit Working Paper Number 25. Cape Town: University of Cape Town
Mthombeni, P.2012. Waste Pickers in Carr Street Report. Unpublished Document. Department of Economic Development.
Municipal 10. General Municipal Profile 2014: Cape Town Municipality. http://www. municipalig. co.za/index.php?site page=Qeneral pro file.php&1D254. Accessed: 20 August 2014.
Municipal IQ. General Municipal Profile 2014:eThekwini Metropolitan Municipality. http://www.municipalig.co.za/index.php ?site page=gen era! profile. php&lD=28. Accessed 20 August: 2014.
New Development Plan: Vision for 2036 http://www.npconline.co . zalmedialib/downloads/home/NPC%20National%20Developme nt%20Plan%20Vision%202030%20-lo-res. Of Accessed 13 June 2014.
Ndabeni, L.L. and Maharajh, R. 2013. Human Development and Knowledge Economy. India: Centre for Development Economics and Inn ovation Studies. Punjabi. University http://www.ieri.org.za/sites/defa ult'files/o utputs/informal sector and the challengesof development in south africa.pdf. Accessed 15 March 2014.
Neuman, W.L. 1999. Social Research Methods: Qualitative and Quantitative Approaches. London: Pearson International.
Nkwi, P. Nyamongo, I. and Ryan, G. 2001. Field research into socio-cultural issues: Methodological guidelines. Yaounde, Cameroon: International Centre for Applied Social Sciences, Research, and Training.
Nzama, T. eThekwini Municipality Economic Development Department Conference, Birchwood. 30-31 May 2011.
Pikitup Waste Management Strategy Presentation at the Joburg Waste Summit on 1510512013.
Pikitup.201 1. Mayoral Committee Presentation. Unpublished Presentation. City of Johannesburg.
104 Pikitup. 2011. Mayoral Committee Report Unpublished Report. City of Johannesburg.
Pikitup. 2012. Mayoral Committee Report. Unpublished Report. City of Johannesburg.
Pikitup.2014. Open Space Dumbing. http://www.pikitup.co.za/iit default 748.html. Accessed 3 March 2014.
Ranchod, P. 2012.Parking Plan "disastrouS' The Times/20 1 2/05/09/paid-parkinq-meets-!eqal-obliqations-city-of-iohaflfleSburq. Accessed 23 June 2012.
Ranis, G. 2004. Arthur Lewis's Contribution to Development Thinking and Policy. The Manchester School Vol 72 No. 6 http.//aida. wss. yale. edu/-granis/papers/lewis-mancheSter-2004 . pdf. Accessed 12 June 2011.
Republic of South Africa. 1987.Security Officers Act, Pretoria; Government Printers.
Republic of South Africa. 1991. The Business Act. Pretoria: Government Printers.
Republic of South Africa. 2003. Broad-Based Black Economic Empowerment Act. Pretoria; Government Printers.
Republic of South Africa.2004. Municipal Systems Act. Pretoria: Government Printers.
Republic of South Africa. 2007. National Environmental Management Waste Bill. Pretoria: Government Printers.
Republic of South Africa.2008. The Waste Act. Pretoria: Government Printers.
Republic of South Africa. 2008. National Environmental Management: Waste Act. Pretoria: Government Printers.
Roitman, J.L. 1990. The Politics of Informal Markets htty://isiteS. harvard. edu/fs/docs/icb . topic 729162. files1Week%20 1 3%20neoliberalism %2 Oand%20African %20cities1Janet%20Roitman %20The%20politics%20of 01o20inf6rmal%2 Omarkets%20in %20subsaharan %2oafrica.pdf. Accessed 16 April 2011.
105 Samson, M. 2008. Wasted Citizenship? The Role of Reclaimers in South African Municipal Waste Management. http://www. org. za/Publications/Reclaiming% 20L ive/ihoods. pdf. Accessed 14 June 2012.
Saunders, S.G. and Lynn, M. 2012. Why Tip? An Empirical Test of Motivations for Tipping Car Guards. http://tippjngresearch. com/uploads/CarGuardTippingEdited 3 reviewer revised 11 1 I 09.pJ Accessed 12 July 2013.
Skinner, C. 2013. The In formal Economy: Current Realities In formal Trading Summit. http://www. capetown. gov. za/en/ehd/Documents/In formal Economy Presentation Carol ine%20Skinner.pptx. Accessed 22 August 2014.
Srinivas, H.2014. "Yes, but. . "Attitudes towards the In formal Sector. http://www.gdrc.orq4nforma!/doc-3yes but.html. Accessed 15 March 2014
Statistics South Africa (StatsSA) definition of formal sector. www.statssa.gov.zalpublicationsIP02111PO2113rdQuarter2Ol3.pdf. Accessed 14 March 2014.
Statistics South Africa (StatsSA) informal Sector Definition. www. statssa . gov. za/publications/P02 I I1P02 11 3rdQuarter2o 13. pdf. Accessed 14 March 2014.
Statistics South Africa (StatsSA).201 1. 3rd Quarter Labour Force Survey. http://www. Statssa. gov. za/publications/P02 1 11P02 111 stQuarter20 11. pdf. Accessed 12 January 2012.
Steyn, I. 2011. Exploring the Legal Context of In formal Trade in South Africa: A Desktop Study Commissioned by the Ecumenical Service for Socio-Economic Transform. http://www esset. org. za/PDF%2Ofiles/Updates%20September%20 11/Research %20on %20LegaI%20Framework%20for%201nformal%20 Tra de%2Oin %2OSA.pdf. Accessed 14 April 2012.
The Economist.2004. The informal economy is neither small nor benign, http://www.economist.com/n ode127663i. Accessed 12 May 2014.
106 The Presidency. 2006. Clarifying the Second Economy Concept. http://www. thepresidency. qov. za/docs/pcsa/social/briefs ynopsis. pdf. Accessed 12 April 2014.
Thusong Community Services Government and Communication. 2006 - 2014 Plan. http.-Ilwww.thusong.gov.zaldocumentslestablish rol/out/business plan/reports/thusongb usplan.pdf. Accesed 10 October 2012.
Trade and Investment KwaZulu-Natal. 2014. Economy and Statistical Overview. htta-11Www.tikzn.co.za/Why KwaZulu-Natal/Overvfew. aspx. Accessed 12 August 2014.
United Nations Conference on Trade and Development. 2008. Creative . Economy Report. http://unctad.org/en/Docs/ditc20082cer en.pdf. Accessed 11 August 2014
United Nations Educational, Scientific and Cultural Organisation (UNESCO) .2012.From Green Economies to Green Societies. http.//unesdoc. unesco. org/images/002 1/002133/213311 e. pdf. Accessed 13 May 2014. United Nations Human Settlements Programme (UN-HABITAT).2006. Innovative Policies for the Urban In formal Economy. http://unhabftat. org/urban-themes-2/economyt Accessed 12 May 2014.
Unni, J. 2001. Size, Contribution and Characteristics of Informal Employment in India. http://www.ilo.org/dyn/infoecon/docs/441/F596332090/women %20and% 20men %20sta t %20picture.pdf. Accessed 14 April2011.
Va/odia, I. 2006. Understanding Formal-informal Economy Linkages. Pretoria: Human Sciences Research Council.
Valodia, I. 2007. Informal Employment in South Africa. Human Social Research Council Report. www. hsrc. ac. za/en/research-data/ktree-doc/1 376. Accessed 12 May 2014.
Verick, S. 2006. The impact of Globalization on the Informal Sector in Africa. Ethiopia: United Nations Economic Commission for Africa. http://www.iza.org/conference files/worldb20061,verick s872.pdf. Accessed 14 July 2011.
107 Wills, C. 2009. The South African In formal Economy: A Statistical Profile. WIEGO Publications. http://wiego. org/s ites/wiego. org/files/publications/files Wills WIEGO WP6.pdf. Accessed 12 April 2012.
Women in In formal Employment Globalising and Organising (WIEGO).2012. Thumbnail History of the Concept. http://wieqo. org/in formal-economy/informal-economy-thumbnail-history-concept. Accessed 12 August 2012.
Women in In formal Employment Globalising and Organising (WIEGO).2012. Self Employed Women's Association (SEWA Bharat) http://wiego. org/wiego/all-india-federation-self-emplo yed-women %E2%80%99s- association-sewa-bha rat. Accessed 23 June 2012.
World Bank. 2014. Empowerment Overview and Definition. http://web.worldbank.org/WBSITE/EXTERNAL/TOPJCS/EXTPO VERTY/EXTEMPOWE RMENT/0, contentMDK:202 72299-pa gePK:2 I 0058-piPK:2 I 0062-theSitePK:4 86411 -i sCURL:YO0.html. Accessed 13 August 2014.
Xaba, J, Horn, P and Matala, S. 2002. The Informal Sector in Sub Saharan Africa. ILO. Working Paper on the In formal Economy, No 2002110.
108