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The Contribution of Informal Urban Settlements to Inclusive Growth - - PowerPoint PPT Presentation

Jul 19, 2023 140 likes •372 views

The Contribution of Informal Urban Settlements to Inclusive Growth Ivan Turok and Jackie Borel-Saladin Human Sciences Research Council South Africa UNU-Wider conference: Inclusive Growth in Africa September 20 th 2013 Concepts and definitions

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The Contribution of Informal Urban Settlements to Inclusive Growth

Ivan Turok and Jackie Borel-Saladin

Human Sciences Research Council South Africa

UNU-Wider conference: Inclusive Growth in Africa September 20th 2013

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Concepts and definitions

Inclusive growth:

  • economic participation
  • distributing the benefits

Urbanisation and inclusive growth:

  • agglomeration efficiencies
  • economic dynamism from new entrants
  • access to urban labour and housing markets

Government policy:

  • vital for coordination
  • can help or hinder

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Context: South Africa

Distinctive economic and political history Very high unemployment; extreme inequality 62% urbanised. Projected 8m increase by 2030 Rural econ stagnation; modest urban econ growth Cautious economic policies + redistributive welfare Government ambivalent about rural-urban migration And about informal settlements: illegal invasions,

criminality, unsightly, unproductive, hazardous locations, new housing solution elsewhere, discontent, opposition

Investment restricted to basic emergency services

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Trends in employment

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90 100 110 120 130 140 150 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Percentage Year Total Metros Total Secondary Cities Rest of South Africa

Source: IHS Global Insight

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Context: South Africa

Popular response is migration towards urban jobs Swelling informal settlements People sacrifice quality of life for job access Better jobs-population alignment emerging But squalid living conditions

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Research questions

  • 1. Difference in economic participation

between formal and informal urban areas

  • employment rate?
  • 2. ‘Quality’ of employment – inferior jobs?
  • incomes
  • occupations
  • security

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Evidence: employment rate

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10 15 20 25 30 35 40 45 50 55 Employment rate (%) Year and quarter Urban formal Urban informal Rural

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Despite poorer education

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Status of non-employed: Nb motivation

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But poorer quality jobs: Monthly incomes

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Occupational profile

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Precarious jobs

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Employment status

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Conclusions

Conceptual: Economic density and access for

new entrants – workers, consumers, entrepreneurs

Empirical: Entry point/foothold in the urban

labour market, but limited

Policy: More pro-active, investment in land and

basic public services, facilitate formal housing market with multi-storey flats

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Thank you!

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Distorted urban form

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RDP housing on the periphery: poverty traps?

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Total urban and rural population

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Concentrated economic activity

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Location is highly contested

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