PARTNERING TO FIND INFRASTRUCTURE SOLUTIONS IN
RURAL DEVELOPMENT
M Z Chuenyane
Introduction
One of the Millennium Development Goals is to half poverty by 2014. At the time
when the goals were set they seemed achievable. However, it is quite clear that
this goal, in Africa particularly, will not be attained. In South Africa most
provinces are predominantly rural and as such, they are extremely poverty
stricken. It has been said that the fight against poverty will be won or lost in the
rural areas. Therefore, the War on Poverty Programme has presented an
opportunity to focus specifically on infrastructure development as a means to
contribute towards poverty eradication and to use it to reduce unemployment
and poverty. The question that needs to be asked is: To what extent has the
programme contributed towards the reduction of poverty?
Definition of Infrastructure
There are many definitions of infrastructure in the available literature. One of
them, which will be used in this discussion, focuses on the services provided by
the physical networks or infrastructural systems associated with energy (gas,
thermal and water-based or renewable and non-renewable), water supply,
transport, telecommunications, sanitation and water facilities, and flood
protection and drainage (Manatu Ohanga, 2005). These are pertinent aspects that
impact greatly on the poor.
Infrastructure and economic growth
One of the major contributing factors to the extreme poverty levels in the rural
areas is poor or inadequate infrastructure (both physical and social). Appropriate
infrastructure is the basic condition for effective poverty reduction. It can
contribute significantly towards the improvement of economic growth and
development, increased employment and the enhancement of the living
standards of the population in general and the rural poor in particular.
Infrastructure has the potential to unlock the development potential of the rural
poor.
Economic growth and infrastructure development are inextricably intertwined.
The economy requires a well developed and maintained infrastructure to grow.
Infrastructure development depends on a growing economy to flourish.
Infrastructure such as roads and transport; water supply; energy (renewable and
non-renewable); markets; information and technology (ICT); waste management;
buildings and an educated and skilled workforce are critical issues that underpin
economic development and growth. Economic growth increases the demand for
infrastructure. This symbiotic relationship has also been stressed by experts in the
field of economic development.
Kessides (1993) has eloquently maintained that infrastructure contributes to
economic development both through supply and demand channels by reducing
costs of production; contributing to the diversification of the economy and
providing access to the application of modern technology and raising the
economic returns to labour (by reducing workers’ time in non-productive
activities and improving health). Furthermore, infrastructure contributes to
raising the quality of life by creating amenities, providing consumption goods and
contributing to macro-economic stability.
Ewang (2010) has observed that “ a historic opportunity presents itself to end the
scourge of under economic development that afflicts African rural women. The
resources including capital technology and human skills that are required to
launch a strategic economic war on poverty and under development exist in
abundance and are within reach”. He further contends that what is required to
mobilize these resources and use them properly, is bold and imaginative
leadership that is genuinely committed to sustained human and economic
development effort and the eradication of poverty, as well as a new strategic
partnership based on shared responsibility and mutual interest.
According to Chulanova (2007) developing infrastructure is critical for the
establishment of an attractive investment climate. Infrastructure makes it
possible to overcome “natural” causes of poverty such as remoteness from
material and information resources, access to social services and helps to increase
the mobility and economic activities of the rural populations. However, poor
quality or unreliable infrastructure services or insufficient infrastructure provision,
might cause firms to be reluctant to invest. There is a need for adequate levels
and quality of infrastructure services to be effective in enhancing economic
growth.
If we accept these perspectives, then we should agree that partnering to find
infrastructure solutions in rural development is the way to go.
In this regard, the Public-Private Partnership approach offers a viable opportunity
to collaborate in the development of appropriate infrastructure that will alleviate
the plight of the rural poor and ensure sustainable economic growth. It is an
approach that provides infrastructure solutions to rural development challenges.
Economic drivers such as the agriculture and mining sectors can play a vital role in
infrastructure provisioning in areas where they operate. These sectors have the
capacity to create sustainable and decent jobs (both temporary and permanent).
Mining companies and well established farmers are already contributing towards
the upliftment of the standard of living of their workers by establishing and
supporting Early Childhood Centres, schools and clinics within the areas where
they operate. However, more needs to done. They could also open their doors to
young unemployed youth who wish to explore the world of work through
experiential learning and internships. The challenge facing the NDA is the extent
to which it is willing and prepared to provide a learning environment for young
unemployed persons. Community-based projects in general and funded projects
in particular provide an untapped resource and opportunity for experiential
learning and work experience for unemployed graduates.
Glen Steyn & Associates (2010) illustrate how different sectors can contribute to
the Gross Domestic Product in South Africa in general and in the Limpopo
province in particular.
GDP
SECTOR
SA
LIMPOPO
Agriculture
2.8
2.9
Mining
7.7
29.8
Manufacturing
18.5
2.9
Elect and Water
2.4
2.4
Construction
2.6
2
Trade and Catering
14.3
9.9
Transport
9.4
6.7
Finances and
Business services
21.7
14.6
Community,Social
&Personal
6
4
Government
14.6
15.1
Total
100
90.3
If infrastructure required by these sectors were to be provided in the rural areas
high unemployment rates and poverty would be drastically reduced.
Civil society in general and community-based organizations in particular can play a
pivotal role in agitating for infrastructure development and in safeguarding that
which has been provided. They could provide security against vandalism and
theft.
Optimal utilization of available infrastructure and the maintenance thereof
should be encouraged and promoted. Continuous neglect of infrastructure
amounts to wastage of resources. A clear example of such wastage can be seen in
the industrial sites of the former homelands. What used to be vibrant small
businesses have since collapsed and the empty buildings are dilapidated and are a
safe haven for criminals. Perhaps more effort should be put into reviving these
collapsed economies. The buildings could be refurbished with a view to
encouraging small entrepreneurs to start new businesses. Needless to say that
funding will have to be made available to support emerging entrepreneurs.
Conclusion
Rural communities will benefit a great deal from better co-ordination and
planning of infrastructure development. Such co-ordination will assist in the
elimination of duplication of support services. A well planned infrastructure
development programme has the potential to facilitate the integration of
domestic markets and access to international markets. Establishing, improving
and maintaining rural infrastructure in the form of water and power supplies as
well as modes of transport will alleviate the burden on women and children who
bear the brunt of inadequate infrastructure in the rural areas. The social
phenomena of increasing unemployed youth and discouraged work seekers
constitute a ticking social time bomb. Therefore, there is a need to create
opportunities for the unemployed to acquire new skills and to ensure that all
school leavers are equipped with the requisite skills that will enable them to find
jobs. Infrastructure remains one of the prerequisites for unlocking the resource
potential in the rural areas. In sum, the notion of an infrastructure master plan to
accelerate the national and provincial development processes is fully supported.
References:
1. Chulanova, Z: Poverty Reduction in Developing Countries via Infrastructure
Development and Economic Growth: Mutual Impact in Kazakhstan. March
2007. ADB Institute Discussion Paper No. 62.
2. Ewang, P: Partnering to find Infrastructure solutions in rural development.
RED Summit Think Tank 4, 30 September 2010.
3. Fedderke, J and Garlick, R: Infrastructure Development and Economic
Growth in South Africa: A review of the evidence. Policy Paper 2.
4. Glen Steyn & Associates: Infrastructure to unlock the Development
Potential of Limpopo. Paper delivered at the Limpopo Infrastructure
Summit.October 2010.
5. Ohanga, M: Linkages between infrastructure and economic growth. 12
December 2005.