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The Significance of the Local Trade in Natural Resource Products for Livelihoods and Poverty Alleviation in South Africa

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The Significance of the Local Trade in Natural Resource Products for Livelihoods and Poverty Alleviation in South Africa THE SIGNIFICANCE OF THE LOCAL TRADE IN NATURAL RESOURCE PRODUCTS FOR LIVELIHOODS AND POVERTY ALLEVIATION IN SOUTH AFRICA SHEONA ELIZABETH SHACKLETON A thesis submitted in fulfilment of the requirements for the degree of DOCTOR OF PHILOSOPHY Department of Environmental Science Faculty of Science RHODES UNIVERSITY June 2005 ABSTRACT What role can the commercialisation of natural resource products play in the efforts to reduce poverty and vulnerability and how can this be enhanced? With poverty alleviation at the top of the global development agenda, this is a question posed by many scholars, practitioners, donor agencies and government departments operating at the environment-development interface. However, recent commentary on this issue is mixed and ambiguous, with some observers being quite optimistic regarding the potential of these products, while others hold a counter view. This thesis explores the livelihood contributions and poverty alleviation potential of four products traded locally in the Bushbuckridge municipality, South Africa; namely traditional brooms, reed mats, woodcraft and a beer made from the fruits of Sclerocarya birrea . A common approach, employing both quantitative and qualitative methods, was used to investigate the harvesting, processing and marketing arrangements, sustainability and livelihood contributions of each product. The results illustrate that any inference regarding the potential of the trade to alleviate poverty depends on how poverty is defined and interpreted, and on whether the role of these products is assessed from a holistic livelihood perspective that includes notions of vulnerability, alternatives and choice, diversification and the needs of rural producers themselves. Overall, the products studied were key in enhancing the livelihood security of the poorest members of society, forming an important safety net and assisting in raising household incomes to levels equivalent to the wider population, but generally were unlikely, on their own, to provide a route out of poverty. However, there were notable exceptions, with marked variation evident both within and across products. Incomes often surpassed local wage rates, and a minority of producers were obtaining returns equivalent to or greater than the official minimum wage. Other benefits, such as the opportunity to work from home or to diversify the livelihood portfolio, were also crucial, with the trade representing different livelihood strategies for different households. When viewed within the context of rising unemployment and HIV/AIDS these findings assume greater significance. While the trades were complex and growth limited, livelihood benefits could be improved on a sustainable basis if the sector was given the attention and support it deserves. ii DECLARATION I declare that this thesis is my own work, and that all other sources used or quoted have been fully acknowledged and referenced. It is being submitted for the Degree of Doctor of Philosophy at Rhodes University, and has not been submitted for a degree or examination at any other university. Sheona E. Shackleton Signature………………………………………… June 2005 iii TABLE OF CONTENTS ABSTRACT ………………………………………………………………………………………………… ii DECLARATION ……………………………………………………………………………………………. iii LIST OF TABLES ………………………………………………………………………………………….. ix LIST OF FIGURES ………………………………………………………………………………………… xi LIST OF BOXES …………………………………………………………………………………………… xii ACKNOWLEDGEMENTS ………………………………………………………………………………… xiii PART I: INTRODUCTION AND OVERVIEW …………………………………………………………… 1 CHAPTER 1: INTRODUCTION, THEORETICAL CONTEXT AND STUDY APPROACH ……….. 1 1.1 INTRODUCTION ………………………………………………………………………………………. 1 1.1.1 Recognising the role of natural resource products in rural livelihoods: from neglect to poverty alleviation potential …………………………………………………………. 1 1.1.2 Exploring and questioning the linkages between natural resource products, livelihoods and poverty ……………………………………………………………………………….. 2 1.1.3 Gaps and research needs ………………………………………………………………………………. 4 1.2 THE SOUTH AFRICAN SITUATION ………………………………………………………………... 6 1.3 HYPOTHESES, KEY QUESTIONS AND OBJECTIVES ………………………………………….. 8 1.3.1 Hypotheses underlying the study ………………………………………………………………………. 8 1.3.2 Key questions and objectives …………………………………………………………………………... 8 1.4 STRUCTURE OF THE THESIS ……………………………………………………………………… 9 1.5 CONCEPTS AND DEFINITIONS ……………………………………………………………………. 10 1.5.1 Livelihoods focus and approach ……………………………………………………………………….. 10 1.5.2 Understanding poverty, poverty alleviation and related concepts …………………………………….. 12 1.5.3 Natural resource products and NTFPs ………………………………………………………………… 15 1.5.4 Local level or ‘endogenous’ trade in natural resource products ……………………………………… 15 1.6 STUDY DESIGN AND METHODS …………………………………………………………………... 16 1.6.1 Overall approach and selection of products …………………………………………………………… 16 1.6.2 Selection of the study area ……………………………………………………………………………... 16 1.6.3 Overview of case study methods…… …………………………………………………………………... 17 1.6.4 Integrative analysis. ……………………………………………………………………………………. 19 1.6.5 Limitations and assumptions …………………………………………………………………………... 20 CHAPTER 2: SOUTH AFRICAN CONTEXT AND GEOGRAPHIC SETTING OF CASE STUDIES ……………………………………………………………………………………………………. 22 2.1 POVERTY AND RURAL LIVELIHOODS IN SOUTH AFRICA ……………………………………. 22 2.1.1 Poverty profile and context …………………………………………………………………….………. 22 2.1.2 Growing unemployment ………………………………………………………………………………... 23 2.1.3 The HIV/AIDS context …………………………………………………………………….…………… 25 2.1.4 The nature of rural livelihoods in South Africa………………………………………………………... 26 2.2 STUDY AREA DESCRIPTION ……………………………………………………………………….. 28 2.2.1 Location and land use ………………………………………………………………………………….. 28 2.2.2 Biophysical characteristics …………………………………………………………………………….. 29 2.2.3 Socio-economic characteristics ………………………………………………………………………... 30 PART II: CASE STUDIES OF LOCAL NATURAL RESOURCE PRODUCT TRADING ………….. 34 CHAPTER 3: THE TRADE IN TRADITIONAL GRASS AND TWIG BROOMS ……………………. 34 3.1 INTRODUCTION ………………………………………………………………………………………. 34 3.2 METHODS ……………………………………………………………………………………………… 35 3.3 THE RESOURCE: SPECIES USED FOR BROOM PRODUCTION IN BUSHBUCKRIDGE …. 38 3.3.1 Outdoor twig brooms: species used, their attributes and potential for sustainable use ………………. 38 3.3.2 Indoor grass brooms: species used, their attributes and potential for sustainable use ……………….. 39 3.4 WHO IS INVOLVED IN THE BROOM TRADE? …………………………………………………… 40 iv 3.4.1 Profile of broom producers and traders and their households ………………………….…………….. 40 3.4.2 Producers’ and traders’ involvement in the trade …………………………………………………….. 44 3.5 BROOM PRODUCTION: RAW MATERIAL HARVESTING AND PROCESSING ……………… 47 3.5.1 Mechanisms for obtaining raw material ……………………………………………………………….. 47 3.5.2 Sources of raw material ………………………………………………………………………………... 47 3.5.3 Access to raw material …………………………………………………………………………………. 50 3.5.4 Availability of raw material ……………………………………………………………………………. 53 3.5.5 Harvesting season, procedure and quantities harvested ………………………………………………. 53 3.5.6 Costs of raw material harvesting ………………………………………………………………………. 55 3.5.7 Process for making brooms ……………………………………………………………………………. 55 3.6 MARKETS, SELLING AND PRICES ………………………………………………………………… 57 3.6.1 Market channels, markets and prices ………………………………………………………………….. 57 3.6.2 Market description and organisation ………………………………………………………………….. 60 3.6.3 Marketing costs ………………………………………………………………………………………… 60 3.6.4 Quantities of brooms sold by producers and traders ………………………………………………….. 60 3.6.5 Customers and their reasons for buying brooms ………………………………………………………. 61 3.7 CONTRIBUTION OF THE BROOM TRADE TO HOUSEHOLD LIVELIHOODS ……………….. 61 3.7.1 Incomes earned by broom producers …………………………………………………………………... 61 3.7.2 Incomes earned by broom traders ……………………………………………………………………... 64 3.7.3 Producers’ and traders’ perceptions of the broom trade as a livelihood option ……………………… 64 3.7.4 Contribution to household livelihoods …………………………………………………………………. 66 3.8 CONSTRAINTS TO THE TRADE ………………………………………….. ………………………. 68 3.9 CONCLUSIONS: SUSTAINABILITY OF THE TRADE AND ENHANCING BENEFITS ……….. 70 3.10 SUMMARY OF KEY FINDINGS ……………………………………………………………………. 72 CHAPTER 4: THE TRADE IN WOVEN REED MATS AND WALL DECORATIONS ……………... 73 4.1 INTRODUCTION ………………………………………………………………………………………. 73 4.2 METHODS ……………………………………………………………………………………………… 75 4.3 THE RESOURCE: SPECIES USED FOR MAT WEAVING IN BUSHBUCKRIDGE …………… 77 4.3.1 Species used ……………………………………………………………………………………………. 77 4.3.2 Potential for sustainable use …………………………………………………………………………… 78 4.4 WHO IS INVOLVED IN THE MAT TRADE? ………………………………………………………... 79 4.4.1 Profile of producers and their households …………………………………………………………….. 79 4.4.2 Producers’ involvement in the mat trade ………………………………………………………………. 82 4.5 MAT PRODUCTION: RAW MATERIAL PROCUREMENT AND PROCESSING ………………. 85 4.5.1 Mechanisms for obtaining raw material ……………………………………………………………….. 85 4.5.2 Harvesting raw material: Sources, access and availability …………………………………………… 85 4.5.3 Harvesting season, procedure and quantities of raw material harvested ……………………………... 90 4.5.4 Sources of purchased of raw material …………………………………………………………………. 91 4.5.5 Quantities of raw material purchased …………………………………………………………………. 92 4.5.6 Costs of raw material harvesting and purchases ………………………………………………………. 92 4.5.7 Process for mat manufacture …………………………………………………………………………... 94 4.5.8 Costs of processing …………………………………………………………………………………….. 95 4.6 MARKETS, SELLING AND PRICES ………………………………………………………………… 96 4.6.1 Market channels, prices
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