David Neves

In Search of South Africa's Second Economy: Chronic Poverty, Economic Marginalisation and Adverse Incorporation in Mt. Frere and Khayelitsha

Since 2003, South African policy discourse about persistent poverty has been dominated by the notion that poor people stay poor because they are trapped in a ‘second economy’, disconnected from the mainstream ‘first world economy.’ This paper considers the adequacy of this notion in the light of research conducted in 2002 and 2005-2006 in Mount Frere in the rural Eastern Cape, and in Cape Town’s African suburbs. It argues that a process of simultaneous monetisation, de-agrarianisation and de-industrialisation has created a heavy reliance on a formal sector in which employment is becoming increasingly elusive and fragile. Fieldwork suggested high levels of economic integration, corporate penetration and monetisation even in the remote rural Eastern Cape. Rather than being structurally disconnected from the ‘formal economy,’ formal and informal, ‘mainstream’ and marginal activities are often thoroughly interdependent, supplementing or subsidising one another in complex ways. The dynamics of these diverge significantly from those imagined both in ‘second economy’ discourse and in ‘SMME’ policy. Instead of imagining a separate economic realm, ‘structurally disconnected’ from the ‘first economy,’ it is more helpful to grasp that the South African economy is both unitary and heterogeneous, and that people’s prospects are determined by the specific ways in which their activities are caught up in the complex networks and circuits of social and economic power. Rather than ‘bringing people into’ the mainstream economy policymakers would do better to strengthen existing measures to reduce vulnerability, and to consider ways of counteracting disadvantageous power relations within which they are caught, and supporting the livelihood strategies that are found at the margins of the formal economy.

The government of poverty and the arts of survival: mobile and recombinant strategies at the margins of the South African economy.

The paper is concerned with marginal populations affected by the ‘truncated agrarian transitions’ of the twentieth and twenty-first centuries: people displaced out of land-based employment without reasonable prospects for accumulation in the non-farm economy. It analyses the forms of economic agency of people living in the migrant routes and networks connecting the shantytowns of Cape Town and the rural Eastern Cape in South Africa. It describes the artful and hybrid nature of their livelihood strategies – strategies that involve the integration from ‘below’ of urban and rural spaces, formal and informal income, and which simultaneously take shape outside the regulatory spaces conferred by the state, and make use of the rights and opportunities created by law and formality. Far from being reduced to the ‘outcast’ condition of ‘bare life’, marginalized and poor people in South Africa pursue inventive strategies on uneven terrain, cutting across the dichotomies of official discourse and teleological analysis. This allows a more nuanced analysis of the nature and specificity of the agrarian transition in South Africa.

Social assistance and dignity: South African women's experiences of the child support grant

Many women interact with the South African social security system in relation to the Child Support Grant (CSG), which is social assistance payable for children living with low-income caregivers. This paper explores womens accounts of how the CSG serves to protect and respect dignity, a foundational value in the South African Constitution. Drawing from focus groups and in-depth interviews with female CSG recipients of working age, it is argued that whilst the experience of using the CSG does protect dignity in certain important respects, other aspects including the application process, the small amount of the grant and negative discourses associated with the status of being a CSG recipient were experienced by many as erosive of dignity.