Presentation at HSRC on 6 July 2010

1. Building on the energy of our people Promoting local and community-driven development Dr Ian Goldman

2. Key message Rethink the model - The current development model does not work – benefits the few – inequality rising, even if now includes black people Development happens inch by inch, person by person – and it happens in the community, not in offices - 60-70% of our population is at the bottom of the pyramid (BoP) – that is the reality we have to understand and work with for our unique contribution to be made Listen to our people systematically - Need to rethink our models to build on the BoP– listen and allow their voice to be heard, rethink service models, business models For bottom level services to work needs support – redesign from the bottom not the top– supportive policies, services and infrastructure must support this action in the community Our complexity is killing us and creates systems that cannot work at community level – just keeps the bureaucrats in jobs We have to trust communities (and more so than the institutions) We have models and systems to build on that have been piloted Let’s do it

3. Some positive signs – even the Economist (12 June p78) 2000-8 Africa’s annual output grew by 4.9% (at purchasing power parity) FDI increased from $10bn to $88bn (more than India $42bn) Inflation rate reduced from 22% in 1990s to 8% since 2000 World Bank’s annual “Doing Business” report rated Rwanda as top reformer in 2009 Natural resource sector only 1/3 of growth Due to rising living standards, 200m Africans will enter the market for consumer goods, and external companies pouring in Benefits emerging from “frugal innovation” – targeting the BoPeg M-PESA, retailing, Jiko portable charcoal stove reducing fuel consumption by 30% Where government reduced its control of the telecoms market mobile phones ubiquitous, eg SA/Kenya, vs Ethiopia only 2% penetration BUT in SA the dualistic economy makes this very difficult 5m tax payers, 13m grant recipients, 12.5m people employed 40,8% of adults in South Africa are employed, compared with 83% in Uganda, 80% in Rwanda and 78% in Tanzania and Malawi (2010 Uasa South African employment report)

4. Benefits struggle to reach the bottom Benefits state state constipated Citizens Incomes

5. Trickle down does not work Trickle down does not work – benefits are very sticky The central state can never drive development – providing 80% of the energy with 20% from below - need to provide the 20% which releases the 80% Have to find a way to build from the base – the BoP (Prahalad) Allow spontaneous development to happen – provide the right environment for that to happen Be careful of our formalised systems which are not adapted to the reality of most of our society 20 agricultural extension officers in N Cape, 1 for Botshabelo with 150 000 people Court system and its delays High expenditure on healthandeducation but very poor outcomes Professional-based services which are too expensive and don’t reach into communities Land titling which is so expensive and slow to do Labour legislation which makes it difficult to be flexible We invest so much in the institutions but most does not reach the people (constipation) In 2008 25% of people in rural nodes showing alienation (I can’t make a difference) and anomie (no-one cares about me)

6. Great strides can happen China increased life expectancy from 38 to 58 in just 5 years from 1960-65, way before the economic reforms barefoot doctors (over 1 million) reaching into all communities Increase in local food supply Our resources are not insignificant – how can we turn these into better outcomes?

7. The need for multiple roles – and so hybrid organisation or partnerships to support meaningful livelihoods New forms of organisation and partnerships Research funded by Ford Foundation in Latin America, Africa, US and India

8. So what are some of the elements we can build on Treat the BoP as an opportunity not a problem – as the reality we have to understand and build on Explore what we can do to release energy and creativity at community level, BoP Allow people’s voice and choice to emerge Rethink processes to see what is best done locally, and what is best done at higher levels More context specific, frequently needed, requires local coordination, not technically complex, the better done locally (eg home-based care, agric extension, maintenance of local water points) The more complex, significant economies of scale, covers large areas, the more to handle at higher levels (eg building tarred roads, dams) Setting up the decentralisedstructures, systems which can support that, and the incentives for coordination and integration Appropriate use of state resources and institutions to create the right enabling environment – but removing some of the blocks

11. Building capacity, improving accountability

12. improving inputs from communities to guide (CBP, PMS..)4 The province/district supportive and supervising local gov

14. improving policy, eg promoting CBP, stipends for community-based workers……

15. increasing distribution to communities (eg R50k discretionary funds in CBP going to wards)

17. Situationanalysis

19. Funding communities to take forward community action in Mangaung (R50k per ward, evaluation showed 98% spent correctly), in eThekwini (R200k), in ekurhuleni (R100k) Internationally examples from Brazil, Mexico, Indonesia – and nearer home, Tanzania, Zambia, Malawi, Burkina Faso…..typically R1m/ward in places far more corrupt than SA eg KDP in Indonesia (now R10 billion per year)

20. MASAF in Malawi

21. Key elements of KDP

22. Evaluation of KDP in Indonesia real per capita consumption gains were 11% higher among poor households in KDP2 areas compared with control areas. poorest quintile of kecamatans saw similar positive impacts of 5% in comparison with control areas. The proportion of households moving out of poverty in poor kecamatan was 9.2% higher in KDP2 areas compared with control areas. Households in less poor kecamatans see either no benefit or negative impacts. The proportion of household heads gaining access to outpatient care was 11.5% higher in KDP2 areas compared with control areas KDP2 reduces unemployment by 1.5% in comparison with control areas.

23. Proposal to Treasury from COGTA for R200k/ward, plus support for CBP, capacity building of local government Total cost if covered all wards only R1.3bn – just imagine how much social capital that would generate! Proposal for a Community Development Grant for South Africa 21 September 2009

24. Current example happening in Richtersveld Developing trust relationships and understanding community dynamics Community-based planning to develop a coherent plan to which all commit Work on local organisational development and leadership with the community property association CPA as implementing agent for Community Works Programme (650 jobs) Whole range of projects identified to take forward building on local assets, and people’s preferred outcomes (not needs) – see next slide They have their own money from restitution – but in other places could be community development grant as proposed by COGTA Contact marc@devworks.co.za

25. Objective1: Health and Safety & social Responsibility

27. Expanding local services - as China Potential of massive expansion of value-added services using community-based and paraprofessional models without increased budgets People trained to provide narrow but value-added services Farmer-based extension specialised on animal health, vegetables, forestry…… Home-based care Community health workers Community-based water and sanitation Urban rangers Adult literacy volunteers Potential for many in each community Can use EPWP and Community Works Programme to fund stipends for these services Improving people’s livelihoods through the stipends, training, increasing confidence, potential career pathing Providing wide expansion of services Some directly supported by government, some by NGOs such as Hospice for HBC

28. Community-based worker model

29. Midwife Clinic Paraextensionists Justice Coordinators Paralegal Police HBC HBC HBC AHTs HBC Forestry Techs waste waste waste Water Techs waste waste waste waste Principal Vision of a community with widespread services Paraprofessionals providing support Community Trad court TBA Veg Peer educators CAHW VHW Literacy Police volunteers VCT Forestry Pump attendants SGB/PTA Community-based workers/structures

30. Health at home/Kenya $5.4m Door-to-door pilot with 210 000 households, where testing teams welcomed into 95% of homes and 80% agreed to be tested Community mobilisers inform that doctors coming to do home testing Counsellor then does pre-test counselling and the test Post test counselling provided for all Trained health workers provide TB screening, malaria bednets and de-worming Counsellors carry PDA and GPS devices to collect and enter data on family health, record test results and identify the location of the household for follow-up

31. An example in SA SACLA South African Christian Leadership Assembly teams of carers are responsible for a catchment area of houses [families] they then visit these houses to flag health issues (manage minor ailments/basic first aid/referrals for more serious issues) and assist with development concerns such as early childhood development/access to services etc They promote health and development education and community mobilisation teams are linked to professional health workers/facilitators for supervision and coordination Many others, especially in the health field

32. Examples of local construction, maintenance and operation of infrastructure Labour-based road maintenance – Zibambele in KZN The maintenance need of the road is based on a maximum of sixty working hours per month A Zibambele contract is awarded for twelve months and is renewed annually. Contracts target the poorest of the poor, who are identified and selected by their own community, focuses on woman headed households who make up the majority of the poorest families Training includes technical skills on road maintenance and social development and life skills. Support services include assisting contractors to, obtain identity documents, open bank accounts, organize themselves collectively into credit unions, and invest savings in other productive activities. Mvula Trust’s work on community-based water and sanitation Mobilising local volunteers – FBOs, HBC etc Pilots of the Community Works Programme

33. M-Pesa mobile money in Kenya Set up by Safaricom 100 000 small retailers who sell airtime in the form of scratch cards can register to be agents, taking in and paying out cash – 17600 done so compared to 840 bank branches People build up e-float which can the be transferred by mobile phone – cash deposited for e-float in an affiliated bank and middlemen who ferry cash around the country Rural areas tend to withdraw, urban areas deposit Used by 9.5m people, 23% of population Transfers equivalent of 11% of Kenya’s GDP per year Inspired more than 60 schemes across the world MTN rolling out mobile money in several African countries and now has 890 000 users in Uganda since launch in March 2009 (Economist 12 June p 87)

34. Building on local assets Using local land for food production, both homestead gardens, and on fields Mobilising local laboureg through Community Works Programme, home-based care etc Support for local markets for local produce, eg purchasing for primary school nutrition, local supermarkets (thoyandou Spar) Building peoples self-organisation– iesocial capital - CBOs, coops, ward committees, project groups, village water committees….. Enhancing mobilisation and recycling of local capital – eg through voluntary savings and loan schemes, building on capital transfers through social grants But needs massive expansion of support to local CBOs, and support to civil society which is insignificant at the moment

36. Building capacity, improving accountability

37. improving inputs from communities to guide (CBP, PMS..)4 The province/district supportive and supervising local gov

38. Improving quality of local services Integrated planning (but our IDP has no carrots and sticks to encourage integration – just exhortation) Coordination and integration of services eg linking home-based care organsations with clinics, hospice… Enhancing accountability – and making service providers accountable to their clients – need for innovation

39. From WDR 2004 Making Services Work for Poor people Long route of accountability Leg 1 is about citizen’s voice – political accountability Leg 2 is about the compact – state capacity and accountability Short route of accountability, leg 3, is about citizen power Both extremely weak

41. increasing distribution to communities (egR200k discretionary funds going to wards)

43. Building leadership at all levels “leaders who could broaden horizons, uplift the spirit, mobilise the necessary resources and empower others to act in the best interests of their own organisations and larger society are sorely needed…a crisis of leadership pervades every level of society…broad civil society…must be in the vanguard of developing a new cadre of leadership solidly embedded in a collective morality and democratic institutions and having as its defining features the respect for human life and human rights…fairness and justice, responsibility and compassion”, Jairam Reddy, M&G 25 June 2010, Getting Ahead p1

44. Summary Accept the current model is not working for the poor (60-70% of population) Listen and allow communities to express their voice and choice (and plan) Fund them to take responsibility and take local action Support local service provision in communities so covers the whole country (use community-based models and paraprofessional including in private sector) Rethink government functions to support front-line service delivery and increase proportion of funding going to the front-line Support citizens to express citizen power and hold service providers to account (need to develop models) - will strengthen compact between politicians, services providers and citizens Strengthen local leadership and local organisational development Many other countries have taken this route – why not SA – so many of the ingredients are in place – take the plunge - experience internationally is that communities are far more accountable than local government Move beyond service delivery from above to a compact between responsible citizens and a responsive state