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Zapreneur proposals for youth unemployment naledi panel
Zapreneur proposals for youth unemployment naledi panel
Zapreneur proposals for youth unemployment naledi panel
Zapreneur proposals for youth unemployment naledi panel
Zapreneur proposals for youth unemployment naledi panel
Zapreneur proposals for youth unemployment naledi panel
Zapreneur proposals for youth unemployment naledi panel
Zapreneur proposals for youth unemployment naledi panel
Zapreneur proposals for youth unemployment naledi panel
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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 …

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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  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. 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. “The Poor”<br />Dynamically Poor<br /><ul><li>Unable to break out of poverty without an intervention
  4. Poor at two different points in time
  5. Cannot withstand a shock</li></ul>Also called, <br /><ul><li>Structurally Poor
  6. Chronically poor
  7. Living in poverty trap
  8. The so-called “uneverythings” </li></li></ul><li>“The Poor”<br />Structurally Mobile <br /><ul><li>Fallen on hard times
  9. With time will
  10. Ability to withstand a shock</li></ul>Also called:<br /><ul><li>Dynamically Mobile
  11. Stochastic Poor </li></ul>Dynamically Poor<br /><ul><li>Unable to break out of poverty without an intervention
  12. Poor at two different points in time
  13. Cannot withstand a shock</li></ul>Also called, <br /><ul><li>Structurally Poor
  14. Chronically poor
  15. Living in poverty trap
  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. Market based mechanisms likely to work
  18. Reliant on response from private sector firms
  19. Redistributive systems are small </li></ul>Current youth wage subsidy proposals do this<br />
  20. “The Poor” and youth unemployment<br />If youth unemployment is temporary then:<br /><ul><li>Solutions should focus on “agency type interventions”
  21. Market based mechanisms likely to work
  22. Reliant on response from private sector firms
  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. Market based mechanism unlikely to work
  25. Redistributive systems needed and needs to work </li></ul>Current wage subsidy proposals do not do this<br />
  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. 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. 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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