EPWP SUMMIT
MINIMUM LABOUR INTENSITY,
ENHANCED PUBLIC GOODS AND
COMMUNITY SERVICES &
SUSTAINABLE LIVELIHOODS
27 November 2014
Gamelihle Sibanda, Chief Technical Adviser, ILO
1
OUTLINE
 MINIMUM LABOUR INTENSITY
 ENHANCED PUBLIC GOODS AND COMMUNITY SERVICES
 SUSTAINABLE LIVELIHOODS
2
LABOUR INTENSITY
EVOLUTION OF EPWP PERFORMANCE INDICATORS
 Phase 1 – Work Opportunity (WO)
 Phase 2 – WO+ Full Time Equivalent (FTE)
 Phase 3 - WO + FTE +Labour Intensity (LI)
WO
Paid work
created for an
individual on an
EPWP project
for any period of
time.
FTE
One person-year
of employment.
One person year
is equivalent to
230 person days
of work.
LI
Expenditure on
wages expressed
at a percentage
of total project
expenditure.
4
TYPICAL PROJECT COST ELEMENTS
 A typical project has several cost elements which may include;
Labour
Supervision
Materials
Tools and Equipment
Transport
The sum of all these
cost elements is
Total Project
Expenditure.
LABOUR
INTENSITY is the
expenditure on
unskilled labour
expressed as a % of
Total Project
Expenditure
5
WHAT IS LABOUR INTENSITY & WHY IS IT IMPORTANT?
DEFINITION
LI TRENDS
IMPACT
• Expenditure on
wages expressed as
a percentage of
total project
expenditure – for
example if a R10m
project pays out
R2m as wages for
unskilled workers
the labour intensity
is 20%
• The higher the
labour intensity,
the more the
project expenditure
is paid as wages to
workers. Labour
intensive methods
yield higher labour
intensity than
machine intensive
methods
• Labour intensity is a
proxy indicator of
project expenditure,
injected into the
local economy in the
form of wages - to
circulate and
stimulate the local
economy
EPWP REQUIREMENTS ON LABOUR INTENSITY
Project Selection
• Select projects that are amenable to use of labour intensive
methods i.e. where labour can be used as a primary resource
supplemented by machines for activities that labour cannot
perform
Project Design
• Design project work methods with use of labour in mind
• After the project design estimate the employment creation and the
associated labour intensity
Procurement
• The tender documents should specify the wage rates for unskilled
labour, target employment to be created and minimum labour
intensity to be achieved by those who intend to tender
Implementation
• Monitor that implementers who are awarded contracts based on
delivering agreed employment targets actually do so. It is
important to have mechanisms to deal with service providers who
ignore the employment creation deliverables after winning
contracts
7
MINIMUM LABOUR INTENSITY
 Each EPWP Sector is expected to set an overall minimum labour
intensity for the Sector and appropriate minima for its various subprogrammes.
 Minimum labour intensity is the threshold that should be exceeded,
rather than aimed for.
 There is no set maximum labour intensity, as this will be dictated by
the nature of the project and the relative values of the cost elements
(e.g. materials, equipment, transport, supervision, labour)
 Even for a project that is highly LABOUR INTENSIVE (uses labour as
the primary resource supported by machines as necessary) the
LABOUR INTENSITY (expenditure on wages expressed as a % of total
project expenditure) cannot exceed 100%.
 For example, a project such as community safety, in addition to
paying wages, will still have costs such as uniforms and supervision.
8
EPWP LABOUR INTENSITY TRENDS IN PHASE 1&2
The EPWP Infrastructure Sector data analysis for the
period 2004 to 2012 is based on the following labour
intensity categories;
 <1% (these are capital intensive projects reported under the
EPWP),
 >1% but <5% (Typically capital intensive projects)
 >5% but <10% (Mainly capital intensive projects plus some
labour intensive construction projects
 >10% but <50% (Typical labour intensive projects)
 >50% but <100 (typical labour intensive maintenance
projects)
 >100% (not possible, error in reporting e.g. project cost)
9
Labour intensity
categories
< 1%
2004-05
2005-06
2006- 07
2007-08
2008-09
2009-10
2010-11
2011-12
32%
15%
9%
3%
5%
21%
8%
2%
1% - 5%
4%
14%
17%
21%
22%
24%
20%
11%
5% - 10%
5%
12%
17%
38%
14%
14%
15%
9%
10% - 50%
42%
38%
41%
26%
49%
24%
26%
19%
50% - 100%
13%
18%
16%
12%
9%
16%
30%
58%
4%
3%
-
0.4%
1%
1%
1%
> 100%
-
Table 1: Percentage of reported projects by labour intensity categories
• Spike in number of projects with li of less than 1% in 2009/10, could be largely
due to World Cup projects.
• From 2004/5 to 2008/9 the bulk of the projects were in the 10% to 50% labour
intensity range.
• From 2010/11 to 2011/12 the bulk of the projects were in the 50% to 100%
labour intensity range (attributable to trebling of number of maintenance projects
in 2011/12 compared to 2010/11). More projects are becoming more labour
intensive.
Labour
intensity
categories
2004-05
2005-06
2006- 07
2007-08
2008-09
2009-10
2010-11
2011-12
< 1%
63,418
38,451
381,458
262,991
382,691
733,177
1,348,530
952,577
1% - 5%
55,998
62,254
78,239
131,617
113,365
221,537
191,415
172,119
5% - 10%
29,532
53,075
35,819
50,342
78,806
88,422
60,613
86,677
10% - 50%
18,835
13,172
16,147
22,422
26,908
29,558
27,146
20,640
50% - 100%
4,920
3,482
4,394
5,746
6,644
6,616
6,433
6,048
> 100%
2,322
4,131
0
9,095
0
1,583
3,610
8,309
Table 2: Cost per reported work opportunities by labour intensity categories
•
•
As expected projects with li of less than 1% have the highest cost to create a
work opportunity. As much as over a factor of 210 times the cost to create a
work opportunity for projects with li of 50 to 100% in 2010/11.
In general the higher the labour intensity, the cheaper it is to create a work
opportunity. For example in 2010/11 the cost to create a work opportunity was
R1,348,530 (li<1%), R191,415 (li of 1% to < 5%), R60,613 (li of 5% to
<10%), R27,146 (li of 10% to <50% ) and R6,433 (li of 50% to 100%).
ENHANCING PUBLIC
GOODS AND
COMMUNITY
SERVICES
PUBLIC GOODS AND COMMUNITY SERVICES
 Assets created and services rendered as part of the EPWP have to be
reported, in addition to work opportunities , FTES and labour intensity.
 It is imperative for each EPWP Sector to define its indicators, units of
measure and subsequently report progress e.g. Km of roads constructed,
Ha of alien vegetation removed, number of pupils in early childhood
learning centers, number of households whose waste is collected weekly.
 The impact of the assets created and services rendered also has to be
documented and reported.
 For some assets and services it may be necessary to carry our baseline
surveys in order to assess post implementation impact. For example,
profiling the participants skills at recruitment stage will facilitate
assessment of the skills acquired through participation in the EPWP.
 The impact will be at different levels e.g. participant, household,
community, institution and nationally.
13
IMPACT OF PUBLIC GOODS AND COMMUNITY SERVICES
Participant
•
•
•
•
Household
• Household assets acquired
• Number of dependents on EPWP participants
• Changes in household expenditure patterns
Community
Institution
•
•
•
•
•
•
•
•
•
•
National
•
•
•
Number employed desegregated by demographics
Average income earned per participant
Training received (accredited and non accredited)
Fairness and transparency of recruitment of participants
Community assets created - improved access to services
Community services delivered
Local businesses stimulated
Fairness and transparency of targeting of participants
Assets created and employment through maintenance
Services rendered and associated employment
Labour intensity – as proxy for project expenditure injected
to community in the form of wages
Convergence e.g. joint planning, pooling of resources
Appropriateness of project selection and design –
amenable to use of labour intensive methods
Net contribution of the EPWP to reduction of
unemployment
Proportion of national investment in Public Employment
Programmes (PEPs)
Contribution of EPWP to poverty reduction?
Contribution of EPWP to reduction in in-equality?
SUSTAINABLE
LIVELIHOODS
DEFINITIONS
Livelihood.
 A livelihood comprises the capabilities, assets
and activities required for a means of living
(Chambers & Conway 1988).
 A livelihood comprises the capabilities, assets
(including both material and social resources) and
activities required for a means of living
(Department for International Development,
DFID)
16
DEFINITIONS
Sustainable Livelihood (SL).
 A livelihood is sustainable when it can cope with and
recover from the stresses and shocks and maintain or
enhance its capabilities and assets both now and in the
future without undermining the natural resource base
(Chambers & Conway).
 A livelihood is sustainable when it can cope with and
recover from stresses and shocks and maintain or enhance
its capabilities and assets both now and in the future
[DFID].
 It is not just about the means to survive, but the capability
to thrive.
17
JOBS Vs SUSTAINABLE LIVELIHOODS
 The United Nations Development Program (UNDP)
differentiates between a job and a livelihood, which are often
used interchangeably.
 Livelihoods may or may not involve money. Jobs invariably
do.
 Livelihoods are self-directing. Livelihoods may be based on
income derived from jobs, but also on incomes derived from
other sources such as assets and entitlements.
 A job connotes one particular activity or trade that is
performed in exchange for payment. It is also a formal
agreement, as manifested by a contract, between an employer
and employee.
18
JOBS Vs SUSTAINABLE LIVELIHOODS
A job can
comprise part of
an overall
livelihood, but
does so only to
complement
other aspects of a
livelihood
portfolio.
Sustainable
Livelihoods
Jobs
19
PRINCIPLES OF SL APPROACHES
 People-centred: beginning by understanding peoples’ priorities and livelihood
strategies.
 Responsive and participatory : responding to the expressed priorities of poor
people.
 Multi-level: ensuring micro-level realities inform macro-level institutions and
processes.
 Conducted in partnership: working with public, private and civil society
actors.
 Sustainable: environmentally, economically, institutionally, and socially.
 Dynamic: ensuring support is flexible and process-oriented, responding to
changing livelihoods.
 Holistic: reflecting the integrated nature of people’s lives and diverse
strategies.
 Building on strengths: while addressing vulnerabilities.
20
KEY CONSIDERATIONS OF SL APPROACHES
 Context - social, economic, political, historical, demographic trends that influence the
livelihood options of a given population and risks to which they are exposed
 Resources - various assets (financial, physical, social, human and natural) that households and
communities have access to and how are they differentiated and disaggregated.
 Entry Point or Levels of Intervention - SL activities may be initiated at different spheres (i.e.
National, Provincial, Local) depending on where the greatest leverage can be achieved. e.g.
Practical level for individuals and Strategic interventions to address context.
 Programme design - projects/programmes can be either single-sector focused or multi-sector
in scope. Need to seek changes at the organizational, community and policy levels in addition
to building the assets of individuals and households.
 Institutional arrangements - effective local institutions that deliver goods and services must
be in place. These include government agencies, civil organizations and the private sector.
 Livelihood outcomes - measured in terms of normative standards (e.g. income levels) or on
criteria identified by the communities
 Measuring impact – on communities based on evaluation of indicators that are clearly linked
problem analysis and objectives. Criteria derived from participatory approaches.. Normative
measures are important for targeting and allowing for cross-regional comparisons.
21
LIVELIHOODS ASSETS PILLARS
Human
Capital
Natural
Capital
Physical
Capital
The Poor
Social
Capital
Financial
Capital
5 ASSET PILLARS
Natural
Capital
Physical
Capital
Human
Capital
50
40
30
20
10
0
Social Capital
Pre Capital
Post Capital
Financial
Capital
23
HUMAN CAPITAL
GENERIC
EPWP EXISTING
EXAMPLES
EPWP POSSIBILITIES
Health
• Sanitation programmes
• Mass sports participation programmes
• Strengthen existing programmes and replicate to
achieve national coverage
Nutrition
• School Nutrition programmes
• Improve compliance with the Ministerial
Determination e.g. standardisation of minimum
wages
Education
• Placing EPWP youth in FET colleges
for full qualifications
• Artisan development
• Sustainable partnerships with other funding and
training institutions.
• Mainstream EPWP priority courses to training
institutions
Knowledge and
skills
Skills programmes:
• Technical accredited skills & project
based (e.g. bricklaying, ECD)
• Soft skills (e.g. enterprise devp,
financial, HIV training, OHS)
• Learnerships e.g. Vuk'uphile, Pharmacy
assistants, Chefs programme
•
•
•
•
Capacity to work
• Capacity buliding of officials and
implementers – e.g. NQF level 5 and 7
for officials, consultants and
contractors.
• Labour Intensive re-orientation training.
• Establishment of the Labour Intensive methods
training centres
• Incorporation of labour intensive methods to
curricula of tertiary institutions
Capacity to adapt
• Cooperatives
• Enhance skills of participants for future
employability and enterprise and cooperatives
Align programmes to QCTO standards
Graduation and placement of learners
Job searching and interview skills.
Encourage public bodies to secure 5% of their
project budget for training
NATURAL CAPITAL
GENERIC
Land and produce
EPWP EXISTING EXAMPLES
EPWP POSSIBILITIES
•
•
•
•
•
• Urban agriculture
• Explore the Nexus energy-water-food nexus
(e.g. eThekwini metro)
• Greening projects
• Beautification and parks projects
• Waste management and recycling
Water & aquatic
resources
• Working for Water
• Working for Wetlands
• Coastal Management
• Aquatic farming
• Maritime Economy activities
• Water harvesting
Trees and forest
products
• Working for Fire
• Working for the Forest
• Parks and Beautification
• Planting of indigenous plants
• Planting for the production of medicinal and
cosmetic essential oils
• Reforestation and Commercial farming (e.g.
planting of pine trees)
Wildlife
• Working for Tourism
• Niche and eco-tourism
Wild foods & fibres
• None
• Organic farming
Biodiversity
• Working on Wetlands
• Pollution management and bio-remediation
• Green construction
Environmental
services
• Working on Waste
• Expansion of the working on waste
programme – recycling, waste to energy
Agricultural Support and Landcare
Working on Fire
School Nutrition Programme (Gardening)
NSS: NPOs and CWP Gardening Services
Parks and beautification programmes
PHYSICAL CAPITAL
GENERIC
EPWP EXISTING
EXAMPLES
EPWP POSSIBILITIES
Transport - roads,
vehicles, etc.
• Construction and maintenance
of roads (high and low volume
roads)
• Motorised and Non motorised
transport
• Strengthen and upscale existing programmes.
• Integrate motorised and non motorised transport
programmes
• Expand into railways maintenance
Secure shelter &
buildings
• Provision of Human settlement
(RDP houses)
• Landscaping and beautification
programmes
• Create a link of EPWP with policy on leasing and
management of government buildings (PMTE)
Water supply &
sanitation
• Water, and sewage reticulation
programmes
• Construction and maintenance
of dams
• Provision of VIP toilets
• Solid waste management
• Retrofitting water management systems to improve
water harvesting and retention
Energy
• Electricity reticulation
• Retrofitting of solar heaters
• Solar panels and geysers, light bulbs)
• Integrate retrofitting of public buildings in EPWP
(Working for Energy)
Communications
• Telecommunication reticulation (Telephones, Optical
Fibre etc. )
FINANCIAL CAPITAL
GENERIC
EPWP EXISTING
EXAMPLES
EPWP POSSIBILITIES
Savings
• Zimbambele and EC Road
Maintenance Saving Schemes,
Participants savings clubs
• Capacity building and training on savings schemes (e.g.
Utjani Slum Dwellers International)
• Policies and frameworks
• Training on personal financial management
Credit/debt formal, informal,
NGOs
• Vuk'uphile Nedbank Partnership
• Creating linkages to access SEFA Funding
• Wholesale financial intermediaries
• Leverage existing government funding mechanisms for
expansion and start up capital of projects /programmes
(e.g. Jobs Fund, Agriculture Coops Funding)
Remittances
• EPWP beneficiaries currently
remitting their wages to family
and relatives
• EPWP participants continuing remitting their wages to
family and relatives
Pensions
• UIF
• COIDA
• Enforcement of applicable legislations
• Projects allocating budgets for UIF and COIDA
contributions
Income
• Wages
• Assets acquisition at household level
Bonds/Shares/
Unit Trusts
• None
• Capacity building and training on investment options
SOCIAL CAPITAL
GENERIC
EPWP EXISTING
EXAMPLES
EPWP POSSIBILITIES
Networks and
connections
• Community safety forums
• Recruitment Reference
Groups/steering committees
• Social facilitation
• Enhanced communication on sustainable
livelihoods in partnership with media
• Fair and transparent recruitment system
• National roll out of neighbourhoods networks
Relations of trust and
mutual support
• Utilisation of indigenous knowledge
• EPWP Summits & Kamoso awards
• Steering Committees, NCC/PSC/ PMT
• Better convergence - information sharing
across sectors and Joint planning
• Strengthened relations with NEDLAC &
communities
Formal and informal
groups
• Formal groups exist e.g. ECD forum ,
HCBC, NGO networks
• Transformation of informal groups into formal
associations (stokvels, burial clubs, etc.)
Common rules and
sanctions
• EPWP guidelines
• Legislative framework (ministerial
determination & code of good
practice)
• National EPWP policy
• Mechanisms to enforce compliance with EPWP
requirements and norms e.g. minimum wage
• Equity in the geographic distribution of projects
Collective
representation
• Recruitment through ward councillors
(mixed results)
• Recruitment through reference
committees
• Development of fair and transparent
recruitment guidelines
Mechanisms for
participation in
Leadership
• Ward LED & IDP structures (some are
weak)
• EPWP to form part of manager’s performance
agreement
• Strengthening local level structures
•
•
•
patronage
neighbourhoods
kinship
THE ASSET MIX
Different households have different
access to livelihood “assets”
Livelihoods affected by:
 diversity of assets
 amount of assets
 dynamic balance amongst different
assets
“VULNERABILITY” CONTEXT
• Vulnerability is determined by the risks that households and
communities are exposed to and their ability to use assets to
cope with these risks.
• Context is determined by factors such as;
Shocks
•
•
•
•
Floods, droughts, cyclones
Deaths in the family
Violence or civil unrest
Job loss
Seasonality
• Agricultural food production
• Periodic payment of school fees
Trends and
changes
•
•
•
•
Environmental change
Population growth/deflation
Technology
Markets and trade
THE “VULNERABILITY” CONTEXT
H
VULNERABILITY
CONTEXT
Shocks
Seasonality
Trends
Changes
S
N
The Poor
P
F
POLICIES, INSTITUTIONS & PROCESSES
Policies
•
•
•
•
of National government
of different SPHERES of government
of NPOs
of intenational PARTNER/INVESTOR bodies
Institutions
•
•
•
•
•
•
Implementing agencies
judicial bodies
civil society & membership organisations
NPOs
Regulators
commercial enterprises & corporations
Processes
•
•
•
•
the unwritten “rules of the game”
decision-making processes
social norms & customs & practices
Demographics (women, men, youth, persons
with desabilities)
• language
POLICIES, INSTITUTIONS & PROCESSES
H
VULNERABILITY
CONTEXT
Shocks
Seasonality
Trends
Changes
S
N
The Poor
P
Influence
F
Policies
Institutions
Processes
LIVELIHOOD STRATEGIES
Are a combination of factors
Sustainable or
Unsustainable
Livelihoods
Outcomes
Combining the
assets (5
pillars) people
can access
Taking account
of the
vulnerability
context
Supported or
obstructed by
policies,
institutions
and processes
THE SUSTAINABLE
LIVELIHOODS FRAMEWORK
H
VULNERABILITY
CONTEXT
Shocks
Seasonality
Trends
Changes
S
N
The Poor
P
F
Policies
Influence Institutions
Processes
Livelihood
Strategies
Livelihood
Outcomes
OBJECTIVES OF SL INTERVENTIONS
The EPWP SL interventions aim to;
 Improve the vulnerability context of
participants.
Transform policies, structures and processes.
Enhance Livelihoods Assets.
Achieve Livelihoods outcomes e.g. sustained
income post participation in the EPWP.
KEY CONSIDERATIONS
1.
How to internalise the Sustainable Livelihoods (SL) concept
within Public Bodies e.g.
–
–
–
–
2.
Include indicators for SL outcomes in EPWP reporting system?
Include in personal performance reports?
Include as a standing item in agenda of regular meetings?
Carry out awareness campaigns?
How to secure buy-in to the Sustainable Livelihoods concept
by other EPWP stakeholders.
– Include in public procurement processes?
3.
Quantification of Work Opportunities
Sustainable Livelihoods outcomes.
associated
with
– How much of work opportunities created by entrepreneurs can be
attributed to the EWP?
4.
Quantification of non employment Sustainable Livelihoods
outcomes.
REFERENCES
 Frankenberger, Timothy R. A brief overview of
sustainable livelihoods approaches
 The Sustainable Livelihoods Framework
http://tamarackcommunity.ca/downloads/vc/Sustainable_L
ivelihoods.pdf
 Rengasamy Srinivasan. 2008. Sustainable Livelihood SR
Presentation Transcript
http://www.slideshare.net/srengasamy/sustainablelivelihood-sr-presentation-777132
 IFAD SL Workshop
 EPWP Sustainable Livelihoods Dialogue Report. 11 Sept
2014
38
I THANK YOU
39