Proposals for Youth Unemployment Or  youth unemployment as a  “poverty trap”.  <br />Ebrahim-Khalil Hassen <br />Zapreneur...
 The “instrumental” problem with youth unemployment<br />The Ticking Bomb Metaphor –Someday, somewhere in a not so distant...
“The Poor”<br />Dynamically Poor<br /><ul><li>Unable to break out of poverty without an intervention
Poor at two different points in time
Cannot withstand a shock</li></ul>Also called, <br /><ul><li>Structurally Poor
Chronically poor
Living in poverty trap
The so-called “uneverythings” </li></li></ul><li>“The Poor”<br />Structurally Mobile <br /><ul><li>Fallen on hard times
With time will
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Zapreneur proposals for youth unemployment naledi panel

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Argues that youth unemployment in South Africa must be recognised as a manifestation of a wider poverty trap in South Africa. Proposes that strategies to expand social security, community works and asset building must be considered.

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Zapreneur proposals for youth unemployment naledi panel

  1. 1. Proposals for Youth Unemployment Or youth unemployment as a “poverty trap”. <br />Ebrahim-Khalil Hassen <br />Zapreneur <br />editor@zapreneur.com<br />http://zapreneur.com<br />Presented at the Economic Development Conference hosted by the Department of Economic Development<br />30-31 May 2011<br />Birchwood Conference Centre<br />
  2. 2. The “instrumental” problem with youth unemployment<br />The Ticking Bomb Metaphor –Someday, somewhere in a not so distant future we could have an uprising … but already here, just small and uncoordinated. <br />Economic growth – The economy will not grow and grow in a shared manner without addressing underlying reasons of why inequality exists <br />Service delivery and income inequality – “Good” government outputs, poor employment, educational and income outputs <br />Livelihoods difficult - Rural subsistence and/or informal employment limited in SA with spatial patterns being important<br />Coordinated and integrated – Lack of basic inputs arguably not in place <br />
  3. 3. “The Poor”<br />Dynamically Poor<br /><ul><li>Unable to break out of poverty without an intervention
  4. 4. Poor at two different points in time
  5. 5. Cannot withstand a shock</li></ul>Also called, <br /><ul><li>Structurally Poor
  6. 6. Chronically poor
  7. 7. Living in poverty trap
  8. 8. The so-called “uneverythings” </li></li></ul><li>“The Poor”<br />Structurally Mobile <br /><ul><li>Fallen on hard times
  9. 9. With time will
  10. 10. Ability to withstand a shock</li></ul>Also called:<br /><ul><li>Dynamically Mobile
  11. 11. Stochastic Poor </li></ul>Dynamically Poor<br /><ul><li>Unable to break out of poverty without an intervention
  12. 12. Poor at two different points in time
  13. 13. Cannot withstand a shock</li></ul>Also called, <br /><ul><li>Structurally Poor
  14. 14. Chronically poor
  15. 15. Living in poverty trap
  16. 16. The so-called “uneverythings” </li></li></ul><li>“The Poor” and youth unemployment<br />If youth unemployment is temporary then:<br /><ul><li>Solutions should focus on “agency type interventions”
  17. 17. Market based mechanisms likely to work
  18. 18. Reliant on response from private sector firms
  19. 19. Redistributive systems are small </li></ul>Current youth wage subsidy proposals do this<br />
  20. 20. “The Poor” and youth unemployment<br />If youth unemployment is temporary then:<br /><ul><li>Solutions should focus on “agency type interventions”
  21. 21. Market based mechanisms likely to work
  22. 22. Reliant on response from private sector firms
  23. 23. Redistributive systems are small </li></ul>Current youth wage subsidy proposals do this<br />If youth unemployment is about poverty traps then:<br /><ul><li>Solutions should tackle “structural issues”
  24. 24. Market based mechanism unlikely to work
  25. 25. Redistributive systems needed and needs to work </li></ul>Current wage subsidy proposals do not do this<br />
  26. 26. So what to do? The policy suite<br />Include youth in the social safety net (e.g. conditional grants in Latin America) <br />Extend the right to work through an employment guarantee (e.g. India) <br />Create asset bundle for young people (e.g. saving accounts for young children, and matched savings <br />In South Africa we do not do any of this, or at scale<br />
  27. 27. Common Features <br />Focused on providing “some income” to stabilise communities<br />Entry and starting point with attempts to integrate and coordinate not at head office, but in the homes of the poor <br />Linked into wider economic strategy, with formal or informal <br />
  28. 28. What does it mean for “Mzansi”? <br />Possible candidates <br />Significantly expand the Community Works Programme as a single major intervention <br />Provide social grants <br />to unemployed (either universal or targeted) or <br />change grants from individual to household grants, like Brazil <br />Longer term – create savings accounts for CSG recipient <br />Understand that in “cartel country” with “import parity pricing” and “inequality” youth unemployment will remain very high. <br />Can we wait for these bigger changes before we do something? Can “the something” help to make the bigger changes. <br />
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