Exploring the philosophical engagements for community economic development analytical framework for poverty alleviation in South African rural areas

Ndaguba, EA; Hanyane, Barry Article Exploring the philosophical engagements for community economic development analytical framework for poverty alleviation in South African rural areas Cogent Economics & Finance Provided in Cooperation with: Taylor & Francis Group Suggested Citation: Ndaguba, EA; Hanyane, Barry (2018) : Exploring the philosophical engagements for community economic development analytical framework for poverty alleviation in South African rural areas, Cogent Economics & Finance, ISSN 2332-2039, Taylor & Francis, Abingdon, Vol. 6, Iss. 1, pp. 1-17, https://doi.org/10.1080/23322039.2018.1539942 This Version is available at: https://hdl.handle.net/10419/245178 Standard-Nutzungsbedingungen: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. 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If the documents have been made available under an Open Content Licence (especially Creative Commons Licences), you may exercise further usage rights as specified in the indicated licence. https://creativecommons.org/licenses/by/4.0/ Full Terms & Conditions of access and use can be found at https://www.tandfonline.com/action/journalInformation?journalCode=oaef20 Cogent Economics & Finance ISSN: (Print) 2332-2039 (Online) Journal homepage: https://www.tandfonline.com/loi/oaef20 Exploring the philosophical engagements for community economic development analytical framework for poverty alleviation in South African rural areas EA Ndaguba & Barry Hanyane | To cite this article: EA Ndaguba & Barry Hanyane | (2018) Exploring the philosophical engagements for community economic development analytical framework for poverty alleviation in South African rural areas, Cogent Economics & Finance, 6:1, 1539942, DOI: 10.1080/23322039.2018.1539942 To link to this article: https://doi.org/10.1080/23322039.2018.1539942 © 2018 The Author(s). This open access article is distributed under a Creative Commons Attribution (CC-BY) 4.0 license. Published online: 15 Nov 2018. Submit your article to this journal Article views: 3967 View related articles View Crossmark data Citing articles: 2 View citing articles GENERAL & APPLIED ECONOMICS | RESEARCH ARTICLE Exploring the philosophical engagements for community economic development analytical framework for poverty alleviation in South African rural areas EA Ndaguba 1,2 *and Barry Hanyane 1 Abstract: This paper is the second paper in a series of papers on Community Economic Development Strategic Framework for Poverty Alleviation in Local Government with particular attention to the Raymond Mhlaba Local Municipality (RMLM). The objective of this paper is twofold: (i) to examine the rationale for community economic development in contemporary philosophy for poverty reduction and (ii) to develop an analytical framework for community economic development for alleviating poverty. It uses existing statistics and research data from Statistics South Africa and other indexes cushioned with over 100 research papers to generate data for this argument. Theme and narrative analysis were used to analyse the data for this paper. In conclusion, the paper demonstrated that for poverty to be alleviated—local investments, buying locally made products, patronising local shops and spaza shops, local regeneration, local reconversion, community linking, and building sustainable capital and market in communities are integral for the survival of any community that intends to be economical viable or sustainable. It recommends that one of the ways in which community viability or sustainability may be guaranteed is through regeneration/reconversion policy and a framework that articulates and harmonise sustainability issues and localisation challenges of communities in each locality. Subjects: Sociology & Social Policy; Development Studies; Cities & the Developing World; Development Policy; Economics and Development; Economics; Political Economy Keywords: Community development; community economic development; economic development; localism; poverty alleviation; social justice; social transformation; sustainable development 1. Introduction The excitement that triggered post-1994 elections was short lived in South Africa (Caromba, 2015, p. 213), as the expectations of what democracy presupposes to deliver were deferred. This is not to say that the democracy was delayed but that the apartheid system had severe shortcomings— systemic, structural, social, environmental, political and otherwise, which hindered and limited the capabilities of black South Africans on the one hand and harm the confidence, pride and self-worth of the blacks South Africa on the other (Patel, 2017). Another critical harm to the black communities was the invisibleness or absence of government’s presence in the black hinterlands (Mariotti & Fourie, 2016; Pillay, 2015; Mda, 2010). 1 The notion that government presences in black communities were poor and reckless, presupposes that black communities were neglected from all basic amenities for livability, sustainability and wellbeing. One of the effects of this neglect was a heightened poverty rate fuelled by the seizure of lands and properties of blacks in the territory now referred to as the Republic of South Africa (Bhorat & Kanbur, Received: 28 May 2018 Accepted: 20 October 2018 First Published: 25 October 2018 *Corresponding author: EA Ndaguba, Department of Public Management & Governance, North West University, Potchefstroom, South Africa; Research Assistant Institute of Development Assistant Management, University of Fort Hare, Potchefstroom, South Africa E-mail: [email protected] Reviewing editor: Goodness Aye, Agricultural Economics, University of Agriculture, Makurdi, Nigeria Additional information is available at the end of the article Ndaguba & Hanyane, Cogent Economics & Finance (2018), 6: 1539942 https://doi.org/10.1080/23322039.2018.1539942 Page 1 of 17 2005;Viljoen&Sekhampu,2013;Westaway,2010). Therefore, those who fought for independence of the country had some preconceived notions and expectation of the post-colonial entanglement. Among other things were the need to increase government presence in black communities by the construction of the three fundamentals for development, schools, hospital, and markets as a means to reduce poverty, deplete the inequality ratio, break the class structure, and absorb the millions of young black people in vulnerable conditions to positions of power (Gous, 2018; Padayachee & Desai, 2013; Saul & Bond, 2014). Twenty-three years in democratic South Africa led by blacks, one may argue that though the political and social structure might have changed significantly the economics of the nations largely is within the prowess of the white minority (Anwar, 2017;Mahlangu,2017;Patel, 2017; Van Wyk, 2005). In that, a majority of the conundrums of the Apartheid system still lingers as racism, inequality, unemployment and poverty (Lund, 2008,p.1). Most communities except black communities in history are built upon certain strategies and mechanisms to encourage sustainability (Agyeman, 2005; Kong, 2012; Maliene, Howe and Malys, 2010) 2 ; however, African communities globally have never had this opportunity. 3 Although the intent of the Bill relating to Black Economic Empowerment was to ensure this, it was, however, truncated because most beneficiaries of the BEE never resided nor invested in their local community to boast local economy. From the United States of America, the United Kingdom, and the Caribbean’s to Africa, there has been a gap in sustainable community networks for black communities, community organisations and businesses. In most black communities, including in South Africa, there is hardly a mechanism to ensure sustainability of any black commercial venture in history. Although there are several methodologies for creating sustainability and for enhancing economic community empowerment as proposed by Western philosophers and practitioners, some of these developmental recommendations by Western philosophers for Africa’s growth and development would include but not limited to the catch-up plan, assimilation, adjustment models, and millennia among others ((Bretton Woods Project, 2001;Foster,2005; Gumede, 2008; Ndaguba, Ndaguba, & Okeke, 2016; Welch, 2005). It must be noted that these neoliberal policies and strategies for the development of the African continent were conceived with good intentions. However, a critical shortcoming was the non-existence of implementing structure, and the notion that Africa is a country than a continent of 57 independent countries (Mkandawire, 2010). 4 Hence, a one-size-fit-all kind of recommendation was inadequate, these developers of the models for Africa’s development overlooked or ignored (Mkandawire, 2010). The notion that the neoliberal models for development ignored or undermined the idea that Africa is neither a city or a country with a single language, Africa (Andrews, 2009;Tar,2009), is possibly one of the many reasons for the failures of several Western strategies and programmes to uplift those in poverty from vulnerable conditions. Another reason for the failure of these models for reducing poverty was the nature and height of corruption and inhumanness of Africans on African (Justesen &Bjørnskov,2012). Elite within each political strata often perceives their independent countries as their personal property (see the antecedents of Sani Abacha, Olusegun Obasanjo, Muhammadu Buhari, Jacob Zuma, Paul Biya, Robert Mugage, Faure Gnassingbé and several others). This is to say that corruption within the elite structure in almost all societies on the Africa continent has an effect on the catch-up plans, increased levels of marginalisation, increasing poverty rate and inequality ratio and the general underdevelopment of the sub-Saharan Africa (ActionAid, 2015; Bello, 2010;Brock, 2012). If history has thought us anything with regard to poverty reduction, one thing is certain that for poverty to be eradicated or alleviated, collective action in communities imbedded in the act of community building is a fundamental prerequisite. As such, one of the means for advancing community building, resilience and empowerment, tested in Canada, Greece, the United States of America and the United Kingdom in recent times, is the community economic development (CED). 1.1. Material and method In research, there is hardly any method that is considered sacrosanct, especially in social research. In social science research, there are two broad methods for gathering information for conducting Ndaguba & Hanyane, Cogent Economics & Finance (2018), 6: 1539942 https://doi.org/10.1080/23322039.2018.1539942 Page 2 of 17 research—quantitative and at the extreme is qualitative. However, between both methods lies the mixed method, which is a combination of numbers and words, respectively. According to Ndaguba (2018), “there is no one best way/method in social research for conducting research.”However, the entire research is dependent on the ability of the researcher to gather, synthesise and analyse reasonable data for problem solving in a research, which is in support of the research topic and questions (Ndaguba, 2016, p. 12; Ndaguba, Nzewi, & Shai, 2018). Writing a research methodology is at the epicentre of any scientific research endeavour. A research is made or marred by the research methodologies adopted. Research methodology is one segment of a study that academics, practitioners and funders take seriously. Hence, it gives credence and determines to a large extent the feasibility of achieving both the aims and means in a study. In any case, where the research methodologies are questionable the entire research outcome is questionable. The modality for gathering data for this paper was principally desktop with search engines as, Catalogue of theses and dissertation of South African Universities (NEXUS); Catalogue of books: Ferdinand Postma Library (North-West University); Chronic Poverty Index; EBSCO EconBiz; Food Agricultural Organisation Database; Google Scholar Index; Statistics South Africa; and World Bank Database. In essence, it has been argued that the bedrock of the desktop research is predominantly the ability to search for reasonable data, synthesise the quality of the data and ensure that the right amount of data is collected and analysed for problem solving, in tandem with the object or question of the paper. This study adopts an exploratory design method in its analysis by identifying salient factors in CED required to boast trade, investment and improve the spirit of localism and localisation. The desktop research approach used in this study is consistent with both the (quasi) quantitative and qualitative paradigm for collecting data. An average of 100 articles, books, Internet source, and government gazette and other documents were consulted. However, 27 of this material were utilised in answering the objects of this paper. 2. Philosophy of community economic development CED is a strategy that provides for community bonding or cohesion vital for community progress. CED houses certain principles through which it argues that local economic development could occur. These would include sustainability, participation, community-based, asset-based, and self-resilience. In addition to the above mentioned, the following concepts are critical in this respect: localism, social transformation, social change, sustainable development, collectivism and communitarianism among others. These principles and concepts are essential ingredients for the successful implementation of CED programmes and projects towards alleviating poverty (Ercan and Hendriks, 2013; Moore, 2014). Furthermore, the philosophy of CED includes the harmonisation and synchronisation of multi-languages, cultures, and interests towards uplifting or transforming the economics of communities (Tomas, 2006). In that, through community engagement in decision-making and problem solving, CED may increase income and create employment for community residents. According to Diamond (2004), CED has the propensity to translate the enterprise of community from junk into a flourishing economy by creating and providing greater opportunities through participation in decision-making and political life in a community. According to Haggart and MacDonald (n.d.), CED is a process in which communities work together to overcome collective challenges, ensure community bonding, community building and community sustainability of a local economy by diversifying the local economy and creating opportunities. Diversification of local economies is an integral aspect of CED programmes and projects (Haggart and MacDonald, n.d.). The success or failure of any CED strategy is dependent upon the “enthusiasm of a broad representation of community members and community participation”(Haggart and MacDonald, n.d.:iii). However, before CED can transcend into community development that effectively tackles poverty. Consultation with communities and community agencies is certainly of immense priority by stakeholders. Ndaguba & Hanyane, Cogent Economics & Finance (2018), 6: 1539942 https://doi.org/10.1080/23322039.2018.1539942 Page 3 of 17 In totality, CED is a fusion of community-driven ideas with an economic development undertone. One of the reasons why this (CED) idea emerged was probably because, it assumed that, where communities claim ownership of certain ventures, businesses, and community interventions and strategies for solving communal problems and dispute. Community participation, commitment, and security of such public goods may be increased, owing to a feeling of a sense of belonging within the community. As Nelson Mandela once noted, “If you talk to a man in a language he understands, that goes to his head. If you talk to him in his language that goes to his heart,” speaks to the heart of CED for alleviating poverty in South Africa. Hence, as stated ab initio, the object of this paper is twofold: to examine the rationale for CED for reducing poverty and to develop an analytical framework for CED for alleviating poverty 3. Rationale for CED for poverty reduction The Civil Rights Movement is perhaps the greatest example of the power solidarity can have to empower individual people and to change society at-large. Such collective action is important because joining together in solidarity…facilitates community members’understanding that their individual problems have social causes and collective solutions. (Checkoway, 1997, p.15; Tan, 2009) From time immemorial, macro-level social change, progress or transformation had resulted in community development in particular and development in general for one of two reasons: community-driven change creates multiple effect for sustainability or that communal quagmire results in social change. Therefore, one may assume that any attempt at addressing communal challenges or creating an avalanche for economically sustainable communities must be imbedded in the instruments that promote communal growth, collective action and community development rather than individualised growth and development. Poverty has been a typical example of a collective challenge in African communities, although more prevalent in areas dominated by blacks in South Africa constitutes a reason for joining together in solidarity to fight the menace of poverty collectively. Hence, to tackle the incidence of poverty, only concerted participatory revolution and change through grass-root mobilisation and women empowerment is adequate. This is probably because, in South Africa likewise several Sub-Saharan nations, poverty is mainly located at the rural areas. Plaguing chiefly women and children (see Figures 1and 2). Figure 1. Poverty headcount by settlement type (UBPL) (2006, 2009, 2011 and 2015). Source: StatsSA (2017:68). Ndaguba & Hanyane, Cogent Economics & Finance (2018), 6: 1539942 https://doi.org/10.1080/23322039.2018.1539942 Page 4 of 17 Therefore, to wage a war against poverty in South Africa and in other Sub-Saharan African countries, one must first understand in relative terms, the underneath causes, cases, factors and the origin of poverty not merely within the country, but within particular communities and tribes. This is simply because, some communities and/or tribes have unique reasons why they have remained in poverty, which is unique to its values and customs. It has remained arduous to state with all certainty why people fall back into poverty or why they remain in poverty despite opportunities available to them. In South Africa, the government solely and in collaboration with or through several agencies have expended several billions of dollars since 1994 to date in programmes, initiative, projects and processes to uplift the millions of people in poverty, however, between 2011 and 2015 in particular, several millions where expended through grants, community programmes and sensitisation project. However, poverty in both the rural and urban areas in the country was on the rise. Figures 2and 3depict the rise of poverty despite several interventions in rural and urban centres. One should also be aware that why the number of the poor continues to increase, and the number of individualised wealth in the country is also on the rise. This is not to wholly assume Figure 2. Poverty headcount by sex. Source: StatsSA (2017:68). Figure 3. Poverty headcount by province. Source: StatsSA (2017:65). Ndaguba & Hanyane, Cogent Economics & Finance (2018), 6: 1539942 https://doi.org/10.1080/23322039.2018.1539942 Page 5 of 17 that the finances for riding poverty in communities are been used to rid an individual of poverty, but to suggest that community are faring badly because individuals of influence and affluence have transferred communities jobs and opportunities to bigger cities for a bigger reward. The idea described here is that the fight to rid South Africa of poverty must not be individualistic but a collective one. One may argue that the methods, techniques and approaches for community engagement, empowerment and development in reducing poverty in the country are inadequate and antediluvian. In that programmes and projects as the Local Government Turnaround Strategy (LGTAS), the New Growth Path, the National Development Plan, the Millennium Development Plan, the Medium Term Strategic Framework, including such poverty alleviating and empowerment programme as, Accelerated and Shared Growth Initiative of South Africa, Black Economic Empowerment, Community Works Programme, Expanded Public Works Programme among others may be regarded as wasteful exercise, if one is to judge the input against the intended outcome of the project, plan or programme. In that rather than for these initiative, projects and programmes to cause a decline in the number of those in poverty, inversely the levels and intensity of poverty have continued to be on rise since 2011 (see StatsSA, 2018). It is on the basis of the failures of the above-mentioned strategies for poverty alleviation in South Africa that this study develops a strategic framework within the context of CED for reducing poverty in South African rural communities in particular. CED is a strategy that provides for community bonding or cohesion vital for community progress. CED houses certain principles through which it argues that local economic development could occur. According to Diamond (2004), CED has the propensity to translate the enterprise of community from junk into a flourishing economy by creating and providing greater opportunities through participation in decision-making and political life in a community. Furthermore, Bhengu (nd.) articulated nine key reasons for the need of CED in communities: (1) CED attract progressive private sector investment, (2) CED creates an atmosphere for community bonding and governments investment on infrastructure, (3) CED builds government and private sector investment on skills development, (4) CED reduces the dependency burdens of underdeveloped communities on government handouts, (5) CED links the integrated development planning (IDP) to local economic development (LED), (6) through CED the use of local science and technology (indigenous knowledge) for community development can be prioritised, (7) CED attracts development grants and donor funding from international funders for poverty alleviation, (8) CED facilitates the development of communities through self-reliance at family and community level not individual, and (9) CED enhances collaboration between various development oriented communities, governments, organisations, and progressive private sectors. 4. Analytical framework for CED The rationale behind community development is the coming together of community member to take collective decision, where government, international organisations and the private sector have failed to solve communal problems (UNTERM, 2014). A number of practitioners are engaged within this practice of community development, they may include, activist, civic leaders, professionals and concerned citizens, in a bid to improve the varied aspect of a community that is dysfunctional with the aim of building a more resilient and stronger local economically driven community. Premised on this notion, community development is both a scholarly discipline and a field of practice. According to the International Association of Community Development, community development is “a practice-based profession and an academic discipline that promotes participative democracy, sustainable development, rights, economic opportunity, equality and social justice, through the organisation, education and empowerment of people within their communities, whether these be of locality, identity or interest, in urban and rural settings”. 5 The essence of community development globally and in the South African context is both to empower and mobilise people within communities for problem solving through the creation of certain social groups for public good. In this sense, one may consider community development strategies as an avenue for elevating communities from wanton violence, economic opportunities, and Ndaguba & Hanyane, Cogent Economics & Finance (2018), 6: 1539942 https://doi.org/10.1080/23322039.2018.1539942 Page 6 of 17 improvement of well-being of a people, through community engagement and community action in areas where the communities are performing poorly. This section discusses empirical literature that gives credence to the research questions of thestudy.Thisliteratureiswithinthescopeandboundsofthetheoriesthatwilldrivethe study. A critical look in the figure below suggests an anomaly in the way community organisations in must remote areas function, silos. This literature review section has two parts: part one deals with community development and the other for social transformation (see Figure 4). 4.1. Localism and localisation The central notion of localism is the concentrating of activities at the local level for the local people. It describes the philosophies that prioritise the localness of the production and consumption of goods and services, promotion of local history, culture, identity and local control of government frameworks. The concept and philosophy of localism is remotely discussed, especially in South Africa. At the conceptual realm of the discourse, it is concerned with the engagement of citizens in the decision that affects them; this can also be seen and understood through the context of deliberative democracy, which in the long run tend to ensure local self-sufficiency (Ercan and Hendriks, 2013; Tomas, 2006). Localism in principle is strengthened where there is pure and complete devolution in government, because it emphasises the ability of a given people within a community to form a cooperation in order to champion their local development within the community economically (Moore, 2014). Localism creates a sense of local pride and responsibility in the fulfilment of the assignment bestowed upon each one. It is deep rooted in the notion that economic accountability is held equitably and locally, everywhere. The idea of localism can be championed from a commitment to simply buying local to keeping the Rands where the heart lives. This idea tends to support local community in identifying, launching and growing local entrepreneurship, enterprise, and businesses in the locality to serve the community. According to Wicks (2010), commenting on localism, “at its heart our movement for local living economies is about love.”The assertion of Wick, strikes at the heart of localism, in that, in an article in Figure 4. CED framework for poverty reduction. Source: Authors configuration (2018) Ndaguba & Hanyane, Cogent Economics & Finance (2018), 6: 1539942 https://doi.org/10.1080/23322039.2018.1539942 Page 7 of 17 framework for CED for analysis in rural communities in South Africa, and the first to give CED as an avenue for poverty alleviation. In sum, the development of this analytical framework in this study will assist in articulating and harmonising sustainability issues and localisation challenges of communities in each locality and realign them for development of communities based on their perceive notion of development. In that, the communal challenge in Alice of the Eastern Cape is very different from the challenge of communities in the Potchefstroom area of the North West Province. Funding The author received no direct funding for this research. Competing interests The authors declare no competing interests. Author details EA Ndaguba 1,2 E-mail: [email protected] ORCID ID: http://orcid.org/0000-0002-7447-5565 Barry Hanyane 1 E-mail: [email protected] 1 Department of Public Management & Governance, North West University, Potchefstroom, South Africa. 2 Research Assistant Institute of Development Assistant Management, University of Fort Hare, Potchefstroom, South Africa. This paper is the second paper in a series of papers on a research endeavour entitled, “a community economic development strategic framework for poverty alleviation in local government—The case of Raymond Mhlaba Local Municipality”. Citation information Cite this article as: Exploring the philosophical engagements for community economic development analytical framework for poverty alleviation in South African rural areas, EA Ndaguba & Barry Hanyane, Cogent Economics & Finance (2018), 6: 1539942. 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