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211522442 SOCY7RPH2
Londiwe Jali | 2015
BACHELOR
OF SOCIAL
SCIENCE
HONOURS
PROJECT
A CRITICAL ANALYSIS OF INTEGRATION OF THE
WARWICK JUNCTION INTO THE ETHEKWINI
RENEWAL URBAN MANAGEMENT PROGRAMME
(ERUMP)
1
CHAPTER ONE: UNPACKING WARWICK JUNCTION
Much of the criticism of economic globalization has centered on factory labor abuses. But
the majority of the world's poor are not employed in factories; they are self-employed -- as
peasant farmers, rural peddlers, urban hawkers, and small producers, usually involved in
agriculture and small trade in the world's vast "informal" economy ("informal" because
economists have difficulty measuring it.).
(David Bornstein)
Background and Problem
The Warwick junction is situated in central Durban and has nine distinct markets: Early morning
market, Bovine head market, Music bridge market, Berea station market, Brook street market,
Mphepho and Lime market, Bead market, Victoria street market and lastly the Herb market.
Fresh produce has been traded on the site of the Early Morning Market since early 1880s largely
dominated by Indian indentured laborers (Dobson 2009). These Indians are the descendants of
the indentured labourers’ who were brought to Kwazulu-Natal between 1860 and 1911 to
develop the sugar cane industry. The stalls are mostly dominated by the Indians and ten percent
occupied by black indigenous South Africans. The research will specifically look at the early
morning market, as the proposed development from municipality chose the Early Morning
market site for building the proposed mall (Markets of Warwick 2010). Warwick junction will be
used as a focal point. Early Morning market provides basic meals for families, is a transportation
hub and is of great assistance amongst the poorer South Africans who get fresh produce at
cheaper rates compared to the formal sector (Skinner 2006, Doung 2009).
The market has 670 stalls and the traders buy their produce from farmers or the municipal bulk
market (Markets of Warwick 2010 and Dobson et al 2009). Each stall has an owner that has to
pay rent to the municipality per month (Dobson and et al. 2009). The Fresh produce ranges from
fruits such as apples, bananas, oranges; vegetables such as potatoes, cabbages, carrots including
spices and flowers. The site has long had its fair share of struggles. The apartheid era brought
laws such as slums act of 1934 and the group areas act of 1950 which justified the oppression
2
and neglecting of the site. The city police and Durban City Council of apartheid government
harassed the traders by imposing forced removals and trying to gain control of the area (Grest
2000). It then was recognized for its contribution to the economy in the 1980s and was allowed
to operate legally into the community. Proposed plans by municipality ahead of the 2010 world
cup for a shopping mall discussions started on the 18th February 2009 and plans to commence on
the building of the mall was in June 2009. The Warwick mall (Pty) limited which is responsible
for the development plans was registered in 2006 and sees Warwick junction as a desirable site
because of the many commuters who pass there daily.
The concerns about the Early Morning market are largely on its sanitation, and congestion
caused by the commuters (which are also regular customers) also in addition conflicting
residents with mobile transport traffic. This caused the eThekwini municipality to incorporate the
junction into the iTRUMP (inner EThekwini regeneration and urban management Progamme) to
improve the conditions within the junction (Oldadmin 2011, Van Schilfgaarde 2013).
Conditions were improved by building proper shelters, cooking facilities, and storage. The
proposed mall brought tension causing the traders of the morning markets on the 15th of June
2009 to have a march in protest against the proposed mall, stating that the junction is more than
just a site to them but their heritage of which they have been trading for the last ninety nine years
(Doung 2009). Also on the 30th may 2009 traders resisting were maltreated by the police through
the use of rubber bullets as the police tried to enter the Warwick junction to remove the traders at
the early morning site (Doung 2009). This encouraged the traders to get together in unity by
forming an association to represent the traders. The traders put money towards paying for a
lawyer and court expenses, till today there has been a halt with the proposed development.
Contextual Dynamics
The issue within the Warwick junction is structural whereby the informal economy operates in
parallel to the formal economy. Resulting in that the informal economy is actually marginalized,
but in essence supports the capitalist structure (Yusuf 2011, Van Schilfgaarde 2013). This is
evident in that the junction is run by the EThekwini Municipality which is part of government
initiative which is trying to restructure the marginalization so it can fit within the main stream
capitalism. It is important to first understand that the focus within the Warwick Junction
situation affects the broader aspect of the economy. Within South Africa the informal economy
3
plays a vital role in employing the unemployed and accounts for eight to ten percent of the GDP
(Shipley 2010, eThekwini Municipality Durban South Africa). This means that most of the
people which go into the informal economy do it involuntary and it is preferred because of the
many barriers within the formal system (Davies and Thurlow 2009). Example of a critical barrier
would be education: most of the traders within the site do not hold degrees or even perhaps
matric certificates therefore within the formal sector having education becomes vital for entry
level. In most cases the stalls that they have inherited are passed down from generation to
generation therefore this is all they know (family wealth is their business) so they cannot easily
migrate to the formal sector.
There are two aspects involved; one: there is a government that wants to modernize the city to
reach its full potential, then there are street traders who have a history and their lives attached to
the site. The government through the EThekwini Municipality wanting to do away with the
informal economy because of its contradiction of the capitalistic needs of policy (Neo-
Liberalism). The Early Morning market within the junction is set up in a primitive way whereby
they operate within stalls, no tills, pricing of goods hand written or verbally said (Van
Schilfgaarde 2013). The most pressing issue is largely sanitation whereby the leftover dirt from
oily water and especially litter blocks city drainage. Operating within a stall setup with no tills,
barcoded products and so on, does not fit within a modernization era as it is a primitive way of
doing things. It becomes a situation of the trader’s needs are intertwined within productive
initiatives whilst formalization of their livelihood would mean that productive initiative take
priority. Therefore if there is any change it would have consequences for the rest of the junction
including the other informal operations within the urban setting. South Africa following the
requirements of IMF and World Bank require integration into the world economy whereby they
adopt liberal policies which require fiscal austerity, deregulation and privatization (Narsiah
2002). The consequences of the fiscal austerity, deregulation and privatization lead to high
unemployment rates therefore creating the informal economy, as people find ways to support
their families through creating their own employment (Davies and Thurlow 2009).
Both sides are justified one: old structures within the city do need revamping to fit within
expanding population, policy requirements, sanitation and beauty. But at the same time there is a
factor of a historical site which carries human beings which have needs, and are victims of the
4
system. Another element within the junction is that as much as it seems as if there are lurking
capitalists or capitalism that want to enter but within the market the traders are capitalists
amongst themselves too. This is the case because there is also competition amongst themselves
too making them to compete for customers daily. This poses a challenge as it becomes a critical
question of how then can governments sit down and instead of imposing but rather to think of
integration (Van Schilfgaarde 2013). Therefore this raises caution for current
government/municipality not to reinforce marginalization such as in Apartheid whereby control
and authority to excluded Warwick Junction from urban planning. The main challenge is not
formalization but rather the characteristics it carries with it. Integration then allows for the
merging of both the Municipality and junction as a whole finding middle ground.
Social Capital
Social capital is the networks of relationships among people who live and work in a particular
society, enabling that society to function properly (Paldam 2000). From these networks now
arise inclinations to do things for each other. Social capital starts from a micro level whereby the
individual has his or her own social capital then has to merge that capital with the rest of the
population. A population can have high social capital and low. The higher the social capital
population the more difficult it is to separate which produces strong and solid relationships
(vitally unity to expel any danger). Social capital can be formed from the groups for own
reasons, or it could be from pressure within the group, and lastly it could be pressure from a third
party (Paldam 2000). Putting it within the context of Warwick the traders each have their own
social capital that they come in with and once they gather together as traders they share that
common knowledge which gives them a sense of community. The traders within the Early
Morning Market are formed through a third party which would be the outside force
(municipality). The third party coerced them into solid unity as their livelihoods were threatened,
therefore resulting in each individual becoming selfless and putting the needs of the group first.
As the more they fight back the population benefits as a whole (population equals to traders in
Early Morning Market and the rest of the Warwick junction).
5
Impact of integration (Economically, Socially and Politically)
Economic:
Before one gets into the consequences of the integration it is important to understand the current
situation of the informality of the traders/informal operations of the economy. Firstly they
operate off the book for cash, low technological use, have odd hours, and are not based on a
contractual written agreement (Tokman 2007). Therefore when there is talk of formalization this
will change things drastically as it would require the traders to adopt a new system all together.
Consequences of formalization would require them to have a book that records income and
expenditure which requires accountant skills (because of tax). With tax this would mean that
some of their profit would go towards government and they will not make as much as they used
to (situation becomes worse if already they do not make much). Firstly formalization process is
expensive therefore it produces an unbalanced relationship requirements between requirements
and possibilities. Secondly talks of integration should perhaps think of ways of simplifying
bureaucratic structures, perhaps by having one institution created by government entity to avoid
costs and having one set of rules and regulations (Tokman 2007, Davies and Thurlow 2009).
Another element is that they will no longer have a bond with customers and will deal with
faceless demanding market which requires professionalism resulting in the vital need of having a
banking system also technology to setup emails as whereby customers can have constant
communication with the business. Technology is a crucial element within the formal system as it
drives the business to new heights as communication and efficient services to public is key. Very
importantly the integration will produce unequal relationships resulting in rich getting richer and
poor remaining poorer than before. Capital therefore becomes a critical factor for business in the
mainstream and would require a lot of investment and risk taking on behalf of the traders.
Social:
The social relationships within the junction are of grassroots nature. They are a community who
looks out for one another making their relationships solid. Integration would change this as the
formal system largely produces individualism therefore increasing competitiveness. Within the
community state there is a social mobility that carries everyone (Dobson and et al. 2009) whilst
6
in the formal state the harder you work the higher your social mobility and success (through
individual input). This would create division amongst themselves causing conflict. Very
importantly the community aspect of the junction will fall because within the formal setup there
is no open plan floor making each individual enclosed within their own shop. This therefore
produces an individual for themselves and the sense of community falls because they can no
longer have chats, walk over to other shops because of safety issues. The process would then
undermine the hundreds of years of relationships and it would also cause fragmentation the
traders while ironically it is supposed to integrate them into the prorgamme.
Political:
The change in the political scene would mean that power will now be centralized rather than the
current decentralization. The traders will lose their power over their complex and this will be
taken over by the private ownership. The traders currently have ownership over themselves and
have stopped development through defending it via their heritage ownership. The political aspect
is vital as the development will bring change so will the traders positions change. The traders
have a union whereby every decision is made through meetings and leaders randomly selected. If
formalization takes over they would lose power over the complex and lose power of control the
market itself. Basically everyone will become the same and the union will be secondary having
them submitting to a higher power. This shows that ownership is an important asset amongst the
traders to retain the status quo. Furthermore this will create bureaucratic structures and destroy
their bottom up approach system that the traders have created.
Accessibility pricing of goods in the formal system:
The pricing of goods within the formal system are completely different from the informal sector.
Within the informal sector prices are done in numbers and sizes and most times easily negotiable
depending on the consumer power whilst the formal system however deals with weight in pricing
(Van Rooyen and et al. 1997). This has no negotiation (formal), the more weight the product has
the more expensive it is. Pricing is put on tags which is processed via computer. When consumer
gets to the shop pricing is done prior. Therefore this indicates the vitality of formal education in
7
formal and most times the little formal education within the informal. In the formal business
prices are higher due to the high expenses put into producing the product. For instance formal
business having branding and packaging which is an extra cost (not forgetting transportation
etc.). Whereas within the informal system prices are cheaper as they are extracting raw materials
and selling them as they are without packaging and branding costs. The traders would have to
abandon their first tradition of having to provide for the poor of the poorest because if entering
the formal system there will be too many cost factors increasing the price. Importantly currently
the traders work with municipal wholesale and change in ownership of the complex would result
in them seeking first grade rather than second grade. (Increase of prices) because of the change
in audience (customers). The poor might take second grade quality but people who can afford
would want their monies worth.
Considering the above the Objectives of this paper are:
 Unpack the contextual dynamics of the Warwick Junction and assess as to how
formalized integration will have on the market as a whole
 What impact will such integration have on the livelihoods of the traders?
 Assess the manner in which formalized distribution and pricing of goods
ResearchQuestions
The critical questions which will be answered by the research:
 Will be what impact will the formalization of the Warwick junction have on the nature of
the daily operations of the market?
 What is the nature of the working relationship between the traders and the municipality
officials?
 Are there existing organized formations of street traders which directly interact with the
municipality regarding the integration?
 What programmes does the EThekwini municipality have in place to foster capacity once
integration has been achieved?
8
 What impact will the integration have on the pricing of goods made available by the
market?
STRUCTURE OF DISSERTATION
This paper is divided into five sections
This chapter introduces Warwick junction and unpacks it with its contents providing a better
understanding of what is involved. From that the research objectives and questions are
developed.
Chapter Two: is exploring Warwick junction through current literature available. The literature
will provide further insight with the nature of the Warwick junction
Chapter Three: brings in the theoretical framework for the study
Chapter Four: presents the methodology which has four sections. This chapter will explain how
the research was undertaken and the reason for the choice of methodology. It will give the ethical
dilemmas encountered during the research and explain sampling and data collection process.
Chapter Five is the analysis of data findings and conclusion.
9
CHAPTER TWO: EXPLORING WARWICK JUNCTION
History does nothing; it does not possess immense riches, it does not fight battles. It is men,
real, men who do all this
-Karl Marx
Introduction
To understand the situation of Warwick junction one has to look at the extensive literature
available describing the phenomena. When exploring Warwick junction it is important to first
establish the formal and informal economy and its contents. This then provides a better
understanding of what needs to be sifted when placing integration onto the table. Therefore the
first two literature open the scene speaking of the informal economy and difficulties in entering
the formal economy. The reason for these two is to establish the vital aspect of integration of the
Warwick Junction into the ERUMP. The rest of the literature then gives shape in giving
historical evidence and case study set up in order to better understand Warwick junction with its
contents. Lastly it will conclude by assessing the current literature and give and a conclusion as
to what this study will offer.
An article written by Tokman (2007) Modernizing the informal sector: the informal economy
often results in the inability of the formal economy to absorb surplus labour. The article stresses
the importance of the informal economy and its contribution. Therefore making the informal
economy not marginalized but in fact works along with the capitalist economy (blurred line).
Importantly the reason why integration becomes a strain or not possible is because the
modernization process requires on to battle survival needs versus business needs. This prevents
proper formalization from taking place (largely because business requires a lot of investment and
risks and one cannot risk their livelihood). The requirements of the informal economy are
explained also showing how it will bring cultural changes for the traders involved. Tokman
stresses that the formalization process is expensive therefore making an unbalanced relationship
between the requirements and the possibilities. A solution viable would be to cut down
bureaucratic structures and having one institution to cut down the cost (especially have one set of
10
rules).Policies adopted are largely neo-Liberalism orientated which build on economics needs
before survival needs.
An article written by Habib-Mintz (2009) to what extent can the informal economy concept
adequately explain the dynamism of the non-informal sector in developing countries? : The
article brings back the definition of the informal economy into the perspective of the developing
countries. Whereby in terms of the European model the informal economy is seen as backward
whilst in the developing world it is seen as a solution to the failing model of the capitalist
economy. This brings out that perhaps the problem is that the term “informal economy” doesn’t
sufficiently define the contextual dynamism of the non-informal sector within the developing
countries. But not forgetting that we live in a globalized world where economies are linked
internationally which makes it difficult to stand out and be independent of European standards.
Therefore the term social networks is introduced and is better at describing the informal sector in
developing countries. The contextual dynamism brings to light that the informal economy is
made up of social networks, has three characteristics. Three phases which in the past has failed to
properly integrate the informal economy into an African context according to Tokman are: the
structuralist perspective, Neo-liberalism and ILO reformist view. In European mode it is seen as
a nuisance whilst the informal economy traders are the real seeds of the free market who are
fighting the bureaucratic structures/limitations that prevent them from being capitalists.
A study done by Skinner (2008) on the struggle for the streets: processes of exclusion and
inclusion of street traders in Durban. This paper uses national data, news clippings, published
research, interviews, and legal and policy documents. It deals with the changing attitudes
towards the street traders and looks at the local authority’s approach to the Warwick Junction
from the 1920 till current. The study reveals how governments in the past saw it easier to destroy
the informal sector rather than maintain it. Surveys show how street traders make as little as
R60-102 a week showing that there is a close correlation between being poor and working as a
street trader. It was also found that most traders are women selling less lucrative goods. Traders
have harassed by police authorities and laws such as Group areas act (1950), the black urban
areas consolidation act (1945), Move on laws (1973) made sure that the street traders were
restricted and disallowed the black population from using lucrative trading spots. Durban
11
suffered the most making the Warwick Junction one of the central features of inclusion of
informal economy into mainstream economy. The vital actors of the inclusion discussion was the
SEWU (Self-employed Women’s Union) which facilitated discussions allowing for a bottom up
approach helping traders to freely discuss their needs. The Warwick junction renewal project was
created to focus on improving the areas cleanliness, trading and employment and transport
efficiency of which has benefitted the traders immensely. The study found that third parties
involved such as SEWU usually make government initiatives successful compared to if
government does it independently.
A study done by Meshack and Naidoo (1998) on urban renewal programme within the Warwick
Avenue Area. The purpose of the study was looking at the urban renewal programme chosen to
be used within the Warwick Junction where the early morning market is situated. The Warwick
Junction area according to the Urban renewal programme should be turned into a shopping mall
ahead of the 2010 soccer World Cup. They conducted the study by interviewing civil society,
private sector, state, and the traders (which turns out it is largely dominated by women).
Concerns sparking the urban renewal programme is crime, unhygienic conditions and an
uncontrollable environment. The study shows the shortcomings of the urban renewal programme
in that it does not benefit the traders and there is little representation for the traders even though
local authorities, unions and community organizations were involved in defending traders they
lack skills and resources. Also very importantly it shows that Warwick Junction area is a
transportation hub which makes the early morning markets productive since daily thousands of
commuters flock for transportation. Therefore this study raises that urban renewal programmes
bring in formalization of informal business sector and how informal traders fail to integrate
within these plans. Most importantly it shows the lack of partnership that the government has
with its people. Limitations of study is that it does not go into detail about what questions were
asked.
A study done by Doung: Market versus Mall (2009) analyzes the situation of the early morning
market within the Warwick junction and brings in a humanitarian aspect whereby the informal
traders have not only built their history there, but their livelihoods. The study interviews informal
traders which are largely women and the participants explain how the market is their only source
of income. It reveals that the early morning markets have been running for more than a hundred
12
years and has been providing basic meals for families. Part of this ninety nine years is the
indentured Indian laborers who dominate these early morning markets. Also informal traders
have shown resistance by trying to get the matter to court. This study emphasizes on modern
town planning replacing socio-cultural energies. Limitations of study is that it does not get the
perspective of the area manager, architects as to whether they are aware of the traders’
grievances.
A study done by Skinner (2009) Challenging city imaginaries: Street traders' struggles in
Warwick Junction, Agenda: Empowering women for gender equity used a mixed methods
approach interviewing eight thousand traders which were mostly women. The study conducted
surveys and it revealed that there are 19 301 street traders in Durban as a whole then in central
Durban place such as Warwick Junction) 10 000. It was found that 4 065 are located in and
around the Warwick Junction of which 59.3% are women. 4705 were interviewed and it was
found that 80% are sole bread winners. It also reveals how the junction provides the distribution
of cheaper goods to the poorer South Africans and is a transportation hub for many. The study
emphasizes the women’s role within the early morning markets and how they struggle daily to
provide income for their families. And also the modernization of the city and mostly raises the
issue of the rising of woman headed homes in South Africa. Therefore the study shows the
impact that development will have on people’s livelihoods and questions who will benefit the
most from the building of the shopping mall in Warwick mall. Limitations of the study: the study
does not look at how the state or municipality can be approached to include the needs of the
informal traders.
An article written by Maharaj (1999) on the integrated community apartheid could not destroy:
The Warwick Avenue triangle in Durban shows that the wanting of the removal of the early
morning markets in Warwick Avenue is not new as the apartheid system had strict control over
the inner city. The article gives the history of integrated residential development in the area, how
the group areas act and Urban renewal programmes were meant to remove the Warwick street
traders for white people. It reveals that the Warwick area supports the majority of the low
income people and is most importantly a transportation hub. The article shows how Warwick
Junction is rich with history and the first working class was heavily reliant on the area as it
produces affordable goods. The history is largely of the indentured Indian laborers’ who cover
13
one third of the Avenue for residential and business purposes. The article sources to gather
information used sources from government research, DCC records civic organizations and
newspapers.
A study done by Van Schilfgaarde (2013) on the trajectory of Warwick Junction as a site of
Inclusivity in Post-Apartheid South Africa: the study used a qualitative research in the form of
interviews. The people who were interviewed were city officials, formal shopkeepers, informal
traders and leaders of NGO’s. The paper establishes the importance of the integration of the
junction into the plans of the city through important facilitators that were formed specifically for
the junction. Facilitators that played an important role is: Self Employed Women’s Union
(1994), Informal Traders management board (1995), StreetNet (2002), Siyagunda (2005) and
lastly Asiye eTafuleni (2008). The city official which formed the Urban Renewal project
(itrump) its purpose was to tackle urban challenges and enforce integration by providing for
trader’s needs. The study shows how inclusivity of Warwick is vital and during the apartheid and
colonial era informal economy has always been a target. Very importantly it also establishes how
the informal economy in South Africa plays a vital role as much as it may be seen in terms of the
structuralist perspective. Therefore inclusivity is vital for Warwick junction as it will provide a
suitable policy/approach that will drift away from national but to the specific needs of that area.
This will produce a bottom up approach whereby the voice for the underrepresented will be a
driving force creating community activism and autonomy. The study shows how even though
there is a provision for mediators this inclusivity still proves difficult as there is communication
issues between city officials and other stakeholders in responding differently to issues .
The literature on the Warwick Junction/Avenue raises key issues present in its case. Common
themes arising are modernization and structuralism. The very important of all is that the
literature shows that Warwick Junction is a historical site from the time of the 1800s right
through the apartheid system where it was used within racial politics. The issue of formalization
was recently sparked in 2009 by the 2010 Soccer World Cup in that the area had to be
developed. But literature also shows that challenges faced by the junction are not new as the
previous governments of the colonial era and apartheid had attempted their removal. Dominant
themes are of woman being the forefront of the area and they have played a significant role in the
14
resistance of the plans of the building of a mall or proposed development. Another key important
issue that arises is none involvement of the street traders needs within the plan of the mall. From
the literature the state claims that the removal of the street traders will benefit everyone but it is
evident that the formalization of the informal traders will require money: rent per month, getting
tills, setting up a shop setting etc. Resulting in the automatic illusion of informal traders ever
being integrated within the Warwick Mall plans.
Therefore this raises issues of that more studies need to be conducted concerning the
programmes that the state undertakes, in that it needs to involve the informal economy within its
urban renewal programmes. Also it also shows how only a few studies deal with the inclusivity
of informal economy into the main stream economy but mostly shows case studies of the
informal sector being marginalized. Therefore integration becomes vital. Very importantly it is
clear that most literature focuses on the period/era immediately after the apartheid era. This study
will attempt to document what is happening now almost twenty one years into democracy
looking specifically at the relationship of integration between the traders and municipality.
15
CHAPTER THREE THEORETICAL FRAMEWORK: NEO-LIBERALISM
Political Economy regards the proletarian ... like a horse, he must receive enough to enable
him to work. It does not consider him, during the time when he is not working, as a human
being. It leaves this to criminal law, doctors, religion, statistical tables, politics, and the
beadle.
Marx, Wages of Labour (1844)
Neo-liberalism is characterized by fiscal austerity, deregulation and privatization. There is a
distinct withdrawal/shrinking of the state and a transfer of competence to the state are subsumed
under a capitalist production (Narsiah 2002). Neo-liberalism theory was created after the Great
depression within the upper north where it was used to rebuild their broken economies due to
war which left the economy neglected. This was achieved through the creation of the Bretton
Wood institutions IMF (International Monetary Fund) and the World Bank who initiated
economic policies whereby free competition and enterprise govern economic activities. The main
emphasis for neoliberal policies is that it fills in the gap of the state’s weaknesses in that it can
provide efficient services to the people (Bockman 2013). It paves the way for anarchy by giving
unrestrained liberty to the individual and limiting the powers of the government
“Although neoliberal projects are being pursued on many different and often tangled scales, it is
in cities and city-regions that the various contradictions and tensions of “actually existing neo-
liberalism” (Brenner and Theodore this volume) are expressed most saliently in everyday life. It
is also on this scale that one can find major attempts to manage these contradictions and tensions
in the hope of consolidating the neoliberal turn through supplementary and/or flanking strategies
or policies” Jessop (2002) argues that local authorities and city managers in post-modern cities
have thus adopted new modes of urban governance based on the ideals of neo-liberalism, with an
emphasis on privatized planning, in the form of public-private partnerships, with municipal
authorities experimenting with new regulatory mechanisms of urban governance; and the
implementation of large scale urban renewal projects Murray (2004).
16
In South Africa when apartheid officially was abolished the ANC adopted a neo-liberal
economic approach (GEAR) whereby they allowed the global institutions IMF and World Bank
integrate our local economy with the global economy (Narsiah 2002). Integration into the world
economy is through the opening our borders to foreign markets, privatization, trade in essence an
opportunity for the global to exploit local resources for their own benefit. When neo-liberal
policies are implemented in most cases government intervention is minimal leaving the citizens
to fend for themselves resulting in them seeking other ways to generate income (Yusuf 2011).
The situation of the Warwick Junction: the informal traders are victims of failed state
intervention between the enforcers of the policies and receivers (state) in accommodating
economic interests with the awareness of human needs. This results in a vulnerable economy
whereby an increase to unemployment is prone because of high competition between the locals
and foreign nationals.
This creates the informal economy which works in parallel with the formal economy making the
informal traders the real seeds of the free market as they are fighting bureaucratic limitations that
prevent them from being capitalists within the formal economy (Yusuf 2011, Habib-Mintz
2009). Critical issue is that the informal traders’ purpose is for survival needs versus the renewal
programme which carries forth modernization to formalize. This becomes a problem because the
neoliberal policies center on economic interests rather than human development needs.
The EThekwini Renewal and Urban Management Programme (ERUMP) should be understood
in terms of the neoliberal concept of development which, in this instance, is premised on the
modernization theory.
The proposed development would result in the interests of traders being traded off for the
interests of a network of already empowered businessmen and foreign-owned entities; and would
also have resulted in inequity between the formal traders incorporated in the mall and the
remaining informal traders who would have been unable to compete with them (Comins, 2009)
One of the hallmarks of urban apartheid was the spatial regulation of urban activity, frequently
through the application of familiar planning tools such as zoning.
17
According to Carmon (2013) many of these large projects have been commercially successful.
They attract business, local customers and tourists, make a significant addition to the local tax
base and enhance the city’s prestige. The public-private deal-making which made them possible
has transformed the nature of city development practice. It has frequently raised troublesome
issues of conflicts of interests and accountability, but the participants and the public have tended
to ignore them. Researchers who investigated the distribution of benefits from urban economic
developments of this Third Generation type have agreed that they contributed to widening the
gap between the ‘haves’ and ‘have nots’. The ‘trickle down’ theory, according to which benefits
from rapid economic development filter down to all levels of society, has not stood the test. .
Instead, ``divided cities'' and ``cities of conflict'' grew up in the 1980s and 1990s, in which
``islands of renewal'' are surrounded by ``seas of decay''
Government needs to find a mutual confrontation with the traders including reworking policies
with incorporating a balance between economic and human needs (Skinner 2008). This shows
that capitalistic development (neo-liberalism) is not humanitarian the case of the Warwick
Junction relates to justify this, that when the government pursues neo-liberal interests the
interests of the minority are “ignored” as they need to meet the requests that come from the
Bretton Wood institutions with structural adjustment programs, trading policies etc.
Carmon (2013) states that in the US, by contrast, concentration and clearance of land sites was
generally done by public agencies, while the new construction was in the hands of private
entrepreneurs. As a result, the number of apartments demolished under the aegis of the Urban
Renewal programs in the US was much greater than the number of units built. The slum areas
were frequently replaced by shopping centres, office buildings, and cultural and entertainment
centres, all of which were in high demand in the booming years that followed World War II.
18
Limitations of framework:
Not all social relations are confined to the economy. There are other contributing factors to the
circumstances of unemployment and the creation of the informal sector. Therefore the liberal
approach does not offer solutions for the poor, downtrodden, oppressed and exploited people it
only further increases such cases. Liberalism reduces power relations to governments when in
fact there are other types of power relations which influence life choices and circumstances.
Market driven economy assumes that the economy will take care of social institutions but in
reality this is not the case. This shows that making economic development the core of society
does not benefit everyone but instead adds to the dilemmas causing governments not to cope.
Another limitation that the limiting of government structures is the cause of the no solution to the
poor, downtrodden, oppressed and exploited because it widens the gap between the rich and
poor. This further gives advantage of the private owners to further exploit and own resources of
public and this results in conflict.
19
CHAPTER FOUR: RESEARCH METHODOLOGY
We think we listen, but very rarely do we listen with real understanding, true empathy.
Yet listening, of this very kind, is one of the most potent forces for change that I know
-Carl Rogers
4.1 Introduction
Methodology allows for research to take place in practical form and there are different methods
one can employ in putting research into action (Kothari 2004). As Kothari states, ‘Research
methodology is a way to systematically solve the research problem. It may be understood as a
science of studying how research is done scientifically.’ (2004:7).This chapter will explain how
the research was undertaken and the reason for the choice of methodology. It will give the ethical
dilemmas encountered during the research and explain sampling and data collection process
4.2 Researchmethodology
Most of the literature relevant to the study (as observed in chapter two) used a qualitative
methodology on site mostly interviewing the traders and the relevant stakeholders. Therefore this
resulted in influencing the methodology for this paper. This study used qualitative research, as it
will be exploring complex phenomena in explaining further the relationship between the
variables. This involves understanding it through human experiences and human perspectives.
As Merriam states, ‘The key to understanding qualitative research lies with the idea that meaning
is socially constructed by individuals in interaction with their world.’ (Merriam 2002:3). I
considered Qualitative research suitable for this study as it will be exploring the integration of
the traders into the urban programme. In chapter two most of the literature has established that
the situation largely revolves around livelihoods, which makes it a very personal issue towards
the traders. This requires rich data that will involve a lot of interpretations of the traders as to
what they think about the situation. In this case qualitative interviews are vital to produce in-
depth information that is needed. Interviews are largely favorable when objectives are based
upon understanding experiences, opinions, attitudes, values and processes (Gray 2014). And
most importantly, where there are opportunities for probing is required. Qualitative research
20
requires the direct involvement of the researcher; in this case it means that the interviews
conducted require one on one interaction. As Creswell states, ‘Researcher as key instrument:
Qualitative researchers collect data themselves through examining documents, observing
behavior, or interviewing participants. ’ (Creswell: 2014)
4.3 Sampling and Data collection:
Sampling
An amount of ten traders within the Warwick Junction was sampled. This was done through
purposive sampling using the homogenous method, because the study is specific to the
characteristics of interests group that was examined in detail. All units share similar background
and occupation. As stated in chapter two the literature largely shows that the traders within the
early morning market are from an indigenous background (indentured labourers’). Whereby you
find that there are generations. Sampling is vital for the process of data collection as you select a
number of participants for the study that they represent the larger group from which they were
selected (Bless et al. 2014). Because the study is based on qualitative research, a non-probability
procedure was selected. This means that since purpose sampling was employed the chance of
generalizing results is kept to a minimum and that the selected units are considered to be most
common in population under investigation (Bless et al. 2014).
Data Collection
The data was collected through semi-structured interviews through interaction with the street
traders to facilitate the use of recording equipment to tape the dialogue. Semi- structured
interviews allow for probing of views and opinions from the participants (Gray 2014). ). Also
participant observation on site, and documentation such as journals was used. While planning the
data collection process to access the market a gatekeeper was needed in order to gain access into
the market. As Creswell states, ‘it is important to gain access to research or archival sites by
seeking the approval of gatekeepers, individuals at the site who provide access to the site and
allow or permit the research to be done’ (Creswell 2014: 188). The use of consent forms for the
participants was considered. When meeting the participant identity had to be shown via
producing a student card to show legitimacy of being an honor’s research student. The
participants before answering any questions had to read the consent form containing details of
21
the researcher, title of the project and ethical considerations regarding participation conditions.
Once read and understood the participant signs and was assured anonymity. Consent form is
needed in order protect the participant and also ensures that he/she is not coerced into giving
information. As Miller and Boulton state, ‘Informed consent is based on the ethical practice of
respect for the dignity and worth of every human being and their right to self-determination’
(2007:2202)
Data Analysis
During data analysis was interpreted through text. The data collected was transcribed, coded and
analyzed through emerging themes. The major themes recurrent were capitalism, family,
unemployment, heritage, ethnicity, development, privatization, Neo-liberalism, marginalization.
4.4 Ethical dilemmas
Research ethics is a vital element to the research paper. It is vital because it prevents the abuse of
people’s rights in the name of social research (Bless et al. 2014). Ethics insures that the research
undertaken contributes and adds value to the community/society especially the lives of all
people. As Bless et al. states ‘Thus social science research is a source of power which can be
used for social benefit, or abused for personal gain. For almost every new research finding, there
are people who stand to gain from it, and there are people who might lose because of it’
(2014:27)
When arriving on the site, there was an announcement via speaker made at our arrival. Upon
arriving one could already notice the very customer less market and somber mood of the traders.
Yet outside the market it is buzzing with delivery vehicles with little parking space. When
approaching the traders there was reluctance on their part to reveal any information without the
consent first with the stall owner and the leader of the union. The presence of an outside party
made most traders uneasy as prior when outsider’s visited it was to try changing their setup. The
ethnicity within the market is very visible making the majority of the traders Indian and a few
indigenous Africans. The problem came to the indigenous Africans where language barrier was a
22
problem. Most come from Eastern Cape whereby Xhosa is their home language. The consent
forms being in English one had to keep translating in order for them to understand as English is
not their home language. Most of the time, they did not even understand the question at all. The
noise level within the market made it very hard to interact with the traders. Noise factor was:
music in the background, people talking in the background, and the announcements by
municipality via speakers. When interviewing the traders there was no seating place, most times
one had to stand whilst conducting the interviews. Due to the trader’s time constraints interviews
had to be conducted on site whilst they attend to customers/ fellow traders. This caused pauses
during the sessions and at times affected the recording session. Some traders come with their
children which run around the market. The toddler tried to touch the recording equipment
making it difficult to concentrate on the interview.
23
CHAPTER FIVE: ANALYSIS
It was Marx who had first discovered the great law of motion of history, the law according
to which all historical struggles, whether they proceed in the political, religious,
philosophical or some other ideological domain, are in fact only the more or less clear
expression of struggles of social classes, and that the existence and thereby the collisions,
too, between these classes are in turn conditioned by the degree of development of their
economic position, by the mode of their production and of their exchange determined by it.
This law, which has the same significance for history as the law of the transformation of
energy has for natural science.
Engels, Preface to The Eighteenth Brumaire of Louis Bonaparte (1885)
The aim of this research project was to provide a critical analysis of the integration of the
Warwick Junction into the EThekwini renewal urban management programme. The basis of this
was formed through first establishing a theory then linking it to the methodology which was
supported by the relevant literature. In order for data to be analyzed for this project it was vital
for the transcribing of the interviews to be able to review or amend codes in order to make sense
of it. The eThekwini Renewal management programme is managed currently by the
Municipality. The municipality places this programme upon the market in order to improve
infrastructure and run it. The traders then occupy the market to sell their goods to consumers.
First the data findings will be presented, interpreted then finally analyzed. This will be followed
by conclusion and recommendations.
The data gathered at the Early morning market shows that majority of the traders are all
breadwinners. Each of them daily wakes up to sell goods to run their households. This could be
stated as their motivation of being there at the market as majority has been there for over many
years. This is stated by most of the participants to quote a few:
Participant one: “Uh, about twenty years, but I have been here since 6 years old. I am old
here, in the 50s we were young boys and my grandfather was planting old vegetables.
That’s how this market came about, that’s why they call it the Indian market” …..
24
Participant two: “I have been in the market by the time I left school let’s say 1978, yes
about 35 years I’m the third generation from my mom to me” …. “Yes I have a wife and
two sons”
Participant three: “it is a family business, next year it will be a 100years”
Participant four: “yes I support twelve people back at home in the Eastern Cape”
Most of the stalls are currently owned by the traders. Some traders own many stalls at a time
increasing their rent to the municipality. The traders who own stalls pay rent to the municipality
approximately R100-R200 a month for a single stall, then as some own more than one their rates
will vary. The data collected suggests that the municipality has reached out to the traders in the
form of building them infrastructure, providing shelters and lockers to store all belongings and
merchandise. Also municipality has provided restrooms and cleaning services, only a few traders
felt that there was no interaction between municipality and traders for instance participant seven
states:
Participant seven: “They don’t reach out in any way. They make things worse. They want
to harass us over here. They come and do their own things sometimes.”
Positive:
Participant two: “Yes they did help us for the toilets and flooring all those things. We have
a roof over our head *laughs*”
Participant six: “toilets lighting, all those things out there”
The most important within the data findings is that most of the traders when it came to
integration felt that there is still a lot of work to be done with the relationship they have with the
municipality. This is the case because most traders still feel hurt by the 2009 incident that
occurred within the market. Participant one makes this very clear:
Participant one: “I don’t see, since I’m here I’ve never ever saw the municipality working
with the traders at all. We just come here and do our thing and uh...*long pause* that’s all
we just carry on. We supposed to have that interlink. I don’t know if you heard that they
wanted to close the market down? In 2009, and we couldn’t let it go. Our livelihood… we
have 1900 stalls here and if you count that by six about 12 000 people would be affected.
25
And leaving the buyers and all those things, taxi’s will be affected as well because they
won’t have not customers anymore… it’s a lot of things. No they didn’t approach us they
just came in and wrecked and demolished the place.”
Some feel that although there are a few misunderstandings they could still make it work as they
need the municipality to help them with parking, advertisement to get more customers, security,
and to get permits in order to have ownership form previous owners. Only one trader felt that
there is a very good relationship between the traders and municipality and felt that there was
already integration and no changes were needed. This was very interesting to also find that those
of South African origin were very skeptical in giving information. Most even stating that they are
busy and cannot participate. Even with consent form and identification produced they did not
want any part with the research. The important aspect within the data findings was that the early
morning market has history and strong ethnicity background. Majority of traders within the
shelter are of Indian descendent. As stated by a participant:
Participant one: “That’s how this market came about, that’s why they call it the Indian
market. If you look at the map it says Indian market and not early morning market. It is
not the early morning market it is the Indian market because the people planted the crops
themselves and brought it to this market”
And also as one was going through the site majority of traders seen and interviewed were
Indians. The challenges faced by the traders are largely common for all: customers, parking,
security on the outside, and especially advertisement. Most when asked about consequences of
the integration/formalization generally stated increasing of rent, loss of livelihood and especially
their heritage of which they have possessed for many years. When traders were stating solutions
or the problem at hand all had felt that they need a boost from the municipality in order for the
market to be a success. The pricing of goods is relatively cheaper due to the traders sourcing
their goods from bulk markets which are run by the municipal. Most stated that their aim/mission
is to provide for the poor of the poorest which cannot afford to shop within malls due to their
source of income. As one participant stated:
Participant two: “market pricing is very low as you can see we have things for R5 and in a
mall/shopping Centre you pay double the price. We buy in the bulk market, at Clairwood
26
market. There are some farmers bringing vegetables also, it allows for us to keep our prices
low”
The data also shows how very importantly the traders are organized within a union and that
union has also helped with the 2009 case whereby there was proposed development towards the
site. This union represents the traders which they put money towards paying for lawyer and court
fees and this successfully put a halt to the development. Data also reveals though that a few
traders within the vicinity reveal that the association only represents the Indians while some say
they are represented by the municipality. Very interestingly some revealed that the union only
represents stall owners only
Looking at the presented data findings it can be interpreted by first looking at the themes that are
emerging.
First of all we see how history plays a vital role through human experiences. This is seen
through ethnicity. Ethnicity is shared cultural heritage, ancestry, history, homeland and
language/dialect of the traders. This reflects evidently within the early morning market as
majority of the traders interviewed are of an indentured Indian laborers’ background. This then
forms the background of heritage within the junction whereby you find that the stalls have been
passed down from generation to generation making it a birthright which each individual must try
to preserve and make best of it. This is supported by chapter two whereby in the literature review
authors Doung (2009), Maharaj (1999) and Van Schilfgaarde (2013) clearly show the important
link between heritage, history and ethnicity.
Now this heritage is disturbed by power relations who bring development and laws and policies
which justify those developments. This law was apartheid which brought unjust laws which
justified the oppression of traders through forced removals. This is confirmed through literature
in chapter two whereby it is shown how authority through policing would initiate the removals
and violence. In one of the interviews and literature it is stated how the use of rubber bullets and
teargas was used to intimidate the traders. This then brings an aspect of means of ownership
whereby the land occupied by the traders does not belong to them which makes it difficult for
them to survive. Means of ownership historically has always been an issue amongst the citizens
making dialectical materialism and historical materialism an important aspect in this case. The
traders cannot survive as capitalism brings in privatization where the traders site is seen as
27
profitable to investors therefore this relates to policy as stated within chapter three that the
informal economy is formed through neo-liberalism.
Neo-liberalism explains the rise of unemployment and how this forms the informal economy
therefore showing how most of the traders on the site do not voluntarily choose to be within the
informal economy but it is factors around them that are caused by structural forces. The data
findings confirm the theoretical framework as it shows how unemployed people use this channel
to make a living, also it shows the rise of modernization whereby the informal economy does not
fit within the capitalist features for instance the traders have no machinery which in essence
makes them ‘backward’. Whilst capitalism promotes high technology it also encourages
development, historical areas such as Springfield and Manor gardens (as mentioned by the
traders) were cut down in order to make space to build housing and big malls such as Makro
(currently present). This shows the spread and rise of modernization whereby production takes
priority and as in chapter three economic activities become forefront of development. Family is
also vital and a clear motivation for making income (breadwinner status) and also comes in one
of the reasons for preserving heritage.
This then produces conflict of interest as the traders’ needs and the authority cannot coexist.
This becomes an inherent feature of capitalism at it is clearly shown that economic needs
override human needs and it does not help much when there is no integration between the two .
This causes uprisings and protests as stated in most interviews and clearly shown within the
literature that the traders had marches, formed a union to protest against the proposed
developments. Conflict of interests becomes an important factor when dealing with integration as
the relationship between traders and the municipality is affected. And lastly the most important is
Marginalization: on a large scale to the economy the informal traders are marginalized within
the system. They are important but at the same time overpowered by capitalist production and
support its structure. Ironically they co-exist also making the informal traders the true seeds of
the free market because they are trying to come into the mainstream and are bracing the
bureaucratic structures that prevents them from becoming capitalists.
28
The themes and findings show that the early morning market within the Warwick junction is a
historical site. It carries the heritage of both indigenous and indentured individuals and families
in South Africa. The case of integration proves difficult mainly because of clash of interest.
Literature clearly shows that there have been attempts in making the municipality programme
reach out to the traders even having intervention from third parties. Which shows it is likely
possible to have integration when people work together. The case for this market proves difficult
as not all traders believe that there can be a good working relationship between the municipality
and traders. This is partly because the incident that occurred in 2009 broke the trust now this has
brought tension and reluctance of the traders to integrate. But at the same time it is very
important to note that integration requires both sides to corporate. In this instance the traders are
blocking their own success because of their rightful claim to the site but at the same time forget
that as much as they have history and heritage, the site does not belong to them (legally) as it
belongs to the Municipality.
The problem of ownership is a critical factor as it brings them into a position of inferiority and
submission. The site in fact does need development and the traders admit this through raising
challenges of parking for customers, security on the outside and advertisement of the market.
This shows that proposed development can actually improve them but in reality the case of
formalization brings in too many changes. As mentioned by Tokman (2007) and Habib-Mintz
(2009) in the literature the requirements of formalization produce an unbalanced relationship
between the requirements and the possibilities. This then becomes a problem because if proposed
developments take place it would mean the total eradication of the traders as they will fail to
meet the requirements. Integration then becomes vital in a sense that instead of dictatorship there
should be a platform now for leadership to be mixed allowing for traders and municipality to join
forces. This can be achieved through face-to-face meetings between them willing to compromise
in some elements of requirements while also the traders willing to trust and let go of current
grudges. Not to say that the case of forced removals, violence from police should be disregarded
but the only way is to find common cause (so there is also a problem of attitude towards
situation). There is an existing case of integration when one looks at it, how? The traders and
municipality are working within the same vicinity whereby within the apartheid system you
would have never found such a working relationship. Perhaps the process of integration has
started on a phase one where the setup might be primitive but it is incorporated through giving it
29
shelter, and some sort of parking facility with little technology to assist here and there. At the
same time it is not adequate enough as traders also realize this when asked about their current
challenges and needs.
Therefore phase two of this integration would require proper formalization of the infrastructure
which would also ultimately result in the formalization of the traders (you cannot separate these
two). This results in that the old design impedes development. A very important element to this
junction is that as much as the traders complain about invading of their territory they too have
power relations. Most of the traders have assistances working for them, which makes them
bosses within their own right. This importantly shows how the traders have competition amongst
themselves. The decline of customers could be explained through the end of apartheid. When
apartheid was abolished the curtain of laws was pulled down enabling for the previously
disadvantaged to now seek other places. More opportunities for previously disadvantaged groups
meant that the market lost its audience because the group was no longer restricted to it. Therefore
the rises of malls promote strong competition and see markets as backward production. The
traders also have a valid point in pointing out that if they are removed then a lot of lives would
be affected especially those who rely on their cheap produce. A bulk of low income workers
depend on the market whilst also on the surrounding transport within the area. All things are very
convenient for the commuters who pass here daily but it raises concern to see a buzzing outside
yet within there is an empty market with sombre moods.
What I truly gathered from this data is that the traders really make a vital point about providing
for the low income workers within the city. If one looks at it from a humanitarian aspect it is a
beautiful sight to see such a historical heritage site and its origins being there for the previously
disadvantaged groups who are still trying to climb up the ladder. This show how the system
usually leaves people to fend for themselves and blames them for not working hard enough
which results in their own misery. But what is forgotten is that we humans create the system and
create these factors and systems which are carried through structures inherently and throughout
history. These structures are passed down from generation to generation creating
intergenerational wealth. Therefore this shows that we can edit the system through unity as the
traders have shown. Unity is vital as it requires one to sacrifice their individual interest for the
benefit of the group/community.
30
The traders also give a lesson of if we don’t lookout for each other then that is how the gap
between the rich and poor increases. How so? When you look at the system it suggests that it has
a trickledown effect and eventually everyone will climb up the ladder. But in reality it does not
work that way because resources are not shared making those who have more benefit while those
without ownership (as seen here with traders) are left on the roadside. Therefore one could say
that these informal traders are a community within a growing individualist society and are a
government within their own right because the government voted in usually fails to protect
public property. And this is sad as within South Africa there is an issue of land ownership and it
is reflecting within the early morning Market. As much as the apartheid system created
dysfunction it has also created a foundation of solid social capital which is interconnected with
historical roots and made up of different individuals breaking boundaries.
Conclusion
The data findings have validated theoretical framework and literature review in that when system
fails the informal economy steps in to form a system of its own. This system provides
breadwinners with a livelihood, not only a livelihood but a support system where people are the
same and are able to accept each other from being rejected from main system. The methodology
then sought to seek how the traders system works and also validated past findings within
literature and has produced themes which were explored to understand the integration. This has
shown how integration does exist but is not quiet adequate as there are many elements which still
need work. The historical element keeps appearing in all issues of traders which show that the
junction is part of a great history of the county socially and economically. Apartheid being
forefront shows how the removal of ownership to property and lands have caused much of the
problems of the traders. The most important element is the conflict of interest between the
traders and the municipality which impedes facilitation of discussion. The traders show great
solidarity but at the same time this solidarity can be detrimental to their future as their claim of
birthright is preventing them from seeing how development can actually solve their challenges of
parking, advertisement and so on. But also critically this is also been blocked by the heavy
requirements of the programme in asking them to abandon their livelihood to an unknown future.
31
Any form of change no matter how small it is, no matter how somehow they will benefit will
always have unforeseen consequences for the current traders.
This is a complex issue which requires also the involvement of policy makers as we should not
forget that factors that influence integration are also influenced by our interconnectedness into
the international economy therefore making government intertwined in the governance of global
institutions such as the IMF and the World Bank. This results in the neglecting of local
governance in order for international requirements to be met. I close my argument with a quote
from Marx:
If we have chosen the position in life in which we can most of all work for mankind, no
burdens can bow us down, because they are sacrifices for the benefit of all; then we shall
experience no petty, limited, selfish joy, but our happiness will belong to millions, our deeds
will live on quietly but perpetually at work, and over our ashes will be shed the hot tears of
noble people.
Marx, Letter to His Father (1837)
32
RECOMMENDATIONS:
Looking at the current issues of integration it is advisable that a follow up study is done that
looks at the EThekwini renewal urban management programme governance and its approach o n
the informal traders. Furthermore governments regarding special cases such as the early morning
market should seek or create policies of inclusivity which allows for an approach that will suit
the needs of this particular area. Inclusivity will follow for a bottom up approach from traders,
because currently the cause of conflict is through clash of interests (between government needs
and traders’ needs). This will positively result in constructive engagement without
marginalization, give a voice to underrepresented, community activism and autonomy. I say this
because the main problem also stems from the fact that many African countries are adopting
western models which are failing and in the process hurt the vulnerable citizens.
Another recommendation for the future could be that the junction can become a heritage site
which will also incorporate the traders’ needs within a formalized setup. This can be the first
example of a unique set up in a formal mall which provides for low income workers. This can
showcase how formal and informal can co-exist but at the same time breaking the high
bureaucratic boundaries. This would seem unrealistic at the moment because it could take a lot of
investment from government or private property without expecting too much in return because
main emphasis would be a guideline of human needs rather than profit motive. In reality not
many investors would see this as profitable but if you invest in human capital and social
economy you would’ve invested in society as a whole. How so? Giving them an opportunity to
compete in the system will reproduce itself enabling them to eventually stand on their own
without subsidy. This will increase their social economy encouraging their independence and
most important this creates good intergenerational wealth.
Lastly it is important that government takes careful consideration when adopting policies that are
economically orientated within a country that already has economic and social problems which
had stemmed from the previous government practicing laws that used the economic sector to
oppress citizens. Now these polices currently bring secondary victimization
33
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 Paldam, M. (2000). Social capital: one or many? Definition and measurement. Journal of
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 Van Rooyen, C. J., Mavhandu, B. F., & Van Schalkwyk, H. D. (1997). The informal food
marketing system in urban environments: Case studies of Kagiso and Orange
Farm. Development Southern Africa, 14(3), 471-476.
 Skinner, C. (2006) Challenging city imaginaries: Street traders ‘struggles in Warwick
Junction
 Skinner, C. (2008) The struggle for the streets: processes of exclusion and inclusion of
street traders in Durban, South Africa, Development Southern Africa, 25:2,227-242,
DOI: 10.1080/03768350802090709
 Sherifat, Y.O (2011) A Theoretical Analysis of the concept of informal economy and
informality in developing countries
 Shipley, B. (2010) Warwick Junction: Urban renewal project
 Tokman, V.E "Modernizing the informal sector." UN/DESA Working Paper 42 (2007): 1-
13.
 Van Schilfgaarde, Kara van Schilfgaarde, "The Trajectory of Warwick Junction as a Site
of Inclusivity in Post-Apartheid South Africa" (2013). Independent Study Project (ISP)
Collection. Paper 1672.http://digitalcollections.sit.edu/isp_collection/1672

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Research Project 2015

  • 1. 211522442 SOCY7RPH2 Londiwe Jali | 2015 BACHELOR OF SOCIAL SCIENCE HONOURS PROJECT A CRITICAL ANALYSIS OF INTEGRATION OF THE WARWICK JUNCTION INTO THE ETHEKWINI RENEWAL URBAN MANAGEMENT PROGRAMME (ERUMP)
  • 2. 1 CHAPTER ONE: UNPACKING WARWICK JUNCTION Much of the criticism of economic globalization has centered on factory labor abuses. But the majority of the world's poor are not employed in factories; they are self-employed -- as peasant farmers, rural peddlers, urban hawkers, and small producers, usually involved in agriculture and small trade in the world's vast "informal" economy ("informal" because economists have difficulty measuring it.). (David Bornstein) Background and Problem The Warwick junction is situated in central Durban and has nine distinct markets: Early morning market, Bovine head market, Music bridge market, Berea station market, Brook street market, Mphepho and Lime market, Bead market, Victoria street market and lastly the Herb market. Fresh produce has been traded on the site of the Early Morning Market since early 1880s largely dominated by Indian indentured laborers (Dobson 2009). These Indians are the descendants of the indentured labourers’ who were brought to Kwazulu-Natal between 1860 and 1911 to develop the sugar cane industry. The stalls are mostly dominated by the Indians and ten percent occupied by black indigenous South Africans. The research will specifically look at the early morning market, as the proposed development from municipality chose the Early Morning market site for building the proposed mall (Markets of Warwick 2010). Warwick junction will be used as a focal point. Early Morning market provides basic meals for families, is a transportation hub and is of great assistance amongst the poorer South Africans who get fresh produce at cheaper rates compared to the formal sector (Skinner 2006, Doung 2009). The market has 670 stalls and the traders buy their produce from farmers or the municipal bulk market (Markets of Warwick 2010 and Dobson et al 2009). Each stall has an owner that has to pay rent to the municipality per month (Dobson and et al. 2009). The Fresh produce ranges from fruits such as apples, bananas, oranges; vegetables such as potatoes, cabbages, carrots including spices and flowers. The site has long had its fair share of struggles. The apartheid era brought laws such as slums act of 1934 and the group areas act of 1950 which justified the oppression
  • 3. 2 and neglecting of the site. The city police and Durban City Council of apartheid government harassed the traders by imposing forced removals and trying to gain control of the area (Grest 2000). It then was recognized for its contribution to the economy in the 1980s and was allowed to operate legally into the community. Proposed plans by municipality ahead of the 2010 world cup for a shopping mall discussions started on the 18th February 2009 and plans to commence on the building of the mall was in June 2009. The Warwick mall (Pty) limited which is responsible for the development plans was registered in 2006 and sees Warwick junction as a desirable site because of the many commuters who pass there daily. The concerns about the Early Morning market are largely on its sanitation, and congestion caused by the commuters (which are also regular customers) also in addition conflicting residents with mobile transport traffic. This caused the eThekwini municipality to incorporate the junction into the iTRUMP (inner EThekwini regeneration and urban management Progamme) to improve the conditions within the junction (Oldadmin 2011, Van Schilfgaarde 2013). Conditions were improved by building proper shelters, cooking facilities, and storage. The proposed mall brought tension causing the traders of the morning markets on the 15th of June 2009 to have a march in protest against the proposed mall, stating that the junction is more than just a site to them but their heritage of which they have been trading for the last ninety nine years (Doung 2009). Also on the 30th may 2009 traders resisting were maltreated by the police through the use of rubber bullets as the police tried to enter the Warwick junction to remove the traders at the early morning site (Doung 2009). This encouraged the traders to get together in unity by forming an association to represent the traders. The traders put money towards paying for a lawyer and court expenses, till today there has been a halt with the proposed development. Contextual Dynamics The issue within the Warwick junction is structural whereby the informal economy operates in parallel to the formal economy. Resulting in that the informal economy is actually marginalized, but in essence supports the capitalist structure (Yusuf 2011, Van Schilfgaarde 2013). This is evident in that the junction is run by the EThekwini Municipality which is part of government initiative which is trying to restructure the marginalization so it can fit within the main stream capitalism. It is important to first understand that the focus within the Warwick Junction situation affects the broader aspect of the economy. Within South Africa the informal economy
  • 4. 3 plays a vital role in employing the unemployed and accounts for eight to ten percent of the GDP (Shipley 2010, eThekwini Municipality Durban South Africa). This means that most of the people which go into the informal economy do it involuntary and it is preferred because of the many barriers within the formal system (Davies and Thurlow 2009). Example of a critical barrier would be education: most of the traders within the site do not hold degrees or even perhaps matric certificates therefore within the formal sector having education becomes vital for entry level. In most cases the stalls that they have inherited are passed down from generation to generation therefore this is all they know (family wealth is their business) so they cannot easily migrate to the formal sector. There are two aspects involved; one: there is a government that wants to modernize the city to reach its full potential, then there are street traders who have a history and their lives attached to the site. The government through the EThekwini Municipality wanting to do away with the informal economy because of its contradiction of the capitalistic needs of policy (Neo- Liberalism). The Early Morning market within the junction is set up in a primitive way whereby they operate within stalls, no tills, pricing of goods hand written or verbally said (Van Schilfgaarde 2013). The most pressing issue is largely sanitation whereby the leftover dirt from oily water and especially litter blocks city drainage. Operating within a stall setup with no tills, barcoded products and so on, does not fit within a modernization era as it is a primitive way of doing things. It becomes a situation of the trader’s needs are intertwined within productive initiatives whilst formalization of their livelihood would mean that productive initiative take priority. Therefore if there is any change it would have consequences for the rest of the junction including the other informal operations within the urban setting. South Africa following the requirements of IMF and World Bank require integration into the world economy whereby they adopt liberal policies which require fiscal austerity, deregulation and privatization (Narsiah 2002). The consequences of the fiscal austerity, deregulation and privatization lead to high unemployment rates therefore creating the informal economy, as people find ways to support their families through creating their own employment (Davies and Thurlow 2009). Both sides are justified one: old structures within the city do need revamping to fit within expanding population, policy requirements, sanitation and beauty. But at the same time there is a factor of a historical site which carries human beings which have needs, and are victims of the
  • 5. 4 system. Another element within the junction is that as much as it seems as if there are lurking capitalists or capitalism that want to enter but within the market the traders are capitalists amongst themselves too. This is the case because there is also competition amongst themselves too making them to compete for customers daily. This poses a challenge as it becomes a critical question of how then can governments sit down and instead of imposing but rather to think of integration (Van Schilfgaarde 2013). Therefore this raises caution for current government/municipality not to reinforce marginalization such as in Apartheid whereby control and authority to excluded Warwick Junction from urban planning. The main challenge is not formalization but rather the characteristics it carries with it. Integration then allows for the merging of both the Municipality and junction as a whole finding middle ground. Social Capital Social capital is the networks of relationships among people who live and work in a particular society, enabling that society to function properly (Paldam 2000). From these networks now arise inclinations to do things for each other. Social capital starts from a micro level whereby the individual has his or her own social capital then has to merge that capital with the rest of the population. A population can have high social capital and low. The higher the social capital population the more difficult it is to separate which produces strong and solid relationships (vitally unity to expel any danger). Social capital can be formed from the groups for own reasons, or it could be from pressure within the group, and lastly it could be pressure from a third party (Paldam 2000). Putting it within the context of Warwick the traders each have their own social capital that they come in with and once they gather together as traders they share that common knowledge which gives them a sense of community. The traders within the Early Morning Market are formed through a third party which would be the outside force (municipality). The third party coerced them into solid unity as their livelihoods were threatened, therefore resulting in each individual becoming selfless and putting the needs of the group first. As the more they fight back the population benefits as a whole (population equals to traders in Early Morning Market and the rest of the Warwick junction).
  • 6. 5 Impact of integration (Economically, Socially and Politically) Economic: Before one gets into the consequences of the integration it is important to understand the current situation of the informality of the traders/informal operations of the economy. Firstly they operate off the book for cash, low technological use, have odd hours, and are not based on a contractual written agreement (Tokman 2007). Therefore when there is talk of formalization this will change things drastically as it would require the traders to adopt a new system all together. Consequences of formalization would require them to have a book that records income and expenditure which requires accountant skills (because of tax). With tax this would mean that some of their profit would go towards government and they will not make as much as they used to (situation becomes worse if already they do not make much). Firstly formalization process is expensive therefore it produces an unbalanced relationship requirements between requirements and possibilities. Secondly talks of integration should perhaps think of ways of simplifying bureaucratic structures, perhaps by having one institution created by government entity to avoid costs and having one set of rules and regulations (Tokman 2007, Davies and Thurlow 2009). Another element is that they will no longer have a bond with customers and will deal with faceless demanding market which requires professionalism resulting in the vital need of having a banking system also technology to setup emails as whereby customers can have constant communication with the business. Technology is a crucial element within the formal system as it drives the business to new heights as communication and efficient services to public is key. Very importantly the integration will produce unequal relationships resulting in rich getting richer and poor remaining poorer than before. Capital therefore becomes a critical factor for business in the mainstream and would require a lot of investment and risk taking on behalf of the traders. Social: The social relationships within the junction are of grassroots nature. They are a community who looks out for one another making their relationships solid. Integration would change this as the formal system largely produces individualism therefore increasing competitiveness. Within the community state there is a social mobility that carries everyone (Dobson and et al. 2009) whilst
  • 7. 6 in the formal state the harder you work the higher your social mobility and success (through individual input). This would create division amongst themselves causing conflict. Very importantly the community aspect of the junction will fall because within the formal setup there is no open plan floor making each individual enclosed within their own shop. This therefore produces an individual for themselves and the sense of community falls because they can no longer have chats, walk over to other shops because of safety issues. The process would then undermine the hundreds of years of relationships and it would also cause fragmentation the traders while ironically it is supposed to integrate them into the prorgamme. Political: The change in the political scene would mean that power will now be centralized rather than the current decentralization. The traders will lose their power over their complex and this will be taken over by the private ownership. The traders currently have ownership over themselves and have stopped development through defending it via their heritage ownership. The political aspect is vital as the development will bring change so will the traders positions change. The traders have a union whereby every decision is made through meetings and leaders randomly selected. If formalization takes over they would lose power over the complex and lose power of control the market itself. Basically everyone will become the same and the union will be secondary having them submitting to a higher power. This shows that ownership is an important asset amongst the traders to retain the status quo. Furthermore this will create bureaucratic structures and destroy their bottom up approach system that the traders have created. Accessibility pricing of goods in the formal system: The pricing of goods within the formal system are completely different from the informal sector. Within the informal sector prices are done in numbers and sizes and most times easily negotiable depending on the consumer power whilst the formal system however deals with weight in pricing (Van Rooyen and et al. 1997). This has no negotiation (formal), the more weight the product has the more expensive it is. Pricing is put on tags which is processed via computer. When consumer gets to the shop pricing is done prior. Therefore this indicates the vitality of formal education in
  • 8. 7 formal and most times the little formal education within the informal. In the formal business prices are higher due to the high expenses put into producing the product. For instance formal business having branding and packaging which is an extra cost (not forgetting transportation etc.). Whereas within the informal system prices are cheaper as they are extracting raw materials and selling them as they are without packaging and branding costs. The traders would have to abandon their first tradition of having to provide for the poor of the poorest because if entering the formal system there will be too many cost factors increasing the price. Importantly currently the traders work with municipal wholesale and change in ownership of the complex would result in them seeking first grade rather than second grade. (Increase of prices) because of the change in audience (customers). The poor might take second grade quality but people who can afford would want their monies worth. Considering the above the Objectives of this paper are:  Unpack the contextual dynamics of the Warwick Junction and assess as to how formalized integration will have on the market as a whole  What impact will such integration have on the livelihoods of the traders?  Assess the manner in which formalized distribution and pricing of goods ResearchQuestions The critical questions which will be answered by the research:  Will be what impact will the formalization of the Warwick junction have on the nature of the daily operations of the market?  What is the nature of the working relationship between the traders and the municipality officials?  Are there existing organized formations of street traders which directly interact with the municipality regarding the integration?  What programmes does the EThekwini municipality have in place to foster capacity once integration has been achieved?
  • 9. 8  What impact will the integration have on the pricing of goods made available by the market? STRUCTURE OF DISSERTATION This paper is divided into five sections This chapter introduces Warwick junction and unpacks it with its contents providing a better understanding of what is involved. From that the research objectives and questions are developed. Chapter Two: is exploring Warwick junction through current literature available. The literature will provide further insight with the nature of the Warwick junction Chapter Three: brings in the theoretical framework for the study Chapter Four: presents the methodology which has four sections. This chapter will explain how the research was undertaken and the reason for the choice of methodology. It will give the ethical dilemmas encountered during the research and explain sampling and data collection process. Chapter Five is the analysis of data findings and conclusion.
  • 10. 9 CHAPTER TWO: EXPLORING WARWICK JUNCTION History does nothing; it does not possess immense riches, it does not fight battles. It is men, real, men who do all this -Karl Marx Introduction To understand the situation of Warwick junction one has to look at the extensive literature available describing the phenomena. When exploring Warwick junction it is important to first establish the formal and informal economy and its contents. This then provides a better understanding of what needs to be sifted when placing integration onto the table. Therefore the first two literature open the scene speaking of the informal economy and difficulties in entering the formal economy. The reason for these two is to establish the vital aspect of integration of the Warwick Junction into the ERUMP. The rest of the literature then gives shape in giving historical evidence and case study set up in order to better understand Warwick junction with its contents. Lastly it will conclude by assessing the current literature and give and a conclusion as to what this study will offer. An article written by Tokman (2007) Modernizing the informal sector: the informal economy often results in the inability of the formal economy to absorb surplus labour. The article stresses the importance of the informal economy and its contribution. Therefore making the informal economy not marginalized but in fact works along with the capitalist economy (blurred line). Importantly the reason why integration becomes a strain or not possible is because the modernization process requires on to battle survival needs versus business needs. This prevents proper formalization from taking place (largely because business requires a lot of investment and risks and one cannot risk their livelihood). The requirements of the informal economy are explained also showing how it will bring cultural changes for the traders involved. Tokman stresses that the formalization process is expensive therefore making an unbalanced relationship between the requirements and the possibilities. A solution viable would be to cut down bureaucratic structures and having one institution to cut down the cost (especially have one set of
  • 11. 10 rules).Policies adopted are largely neo-Liberalism orientated which build on economics needs before survival needs. An article written by Habib-Mintz (2009) to what extent can the informal economy concept adequately explain the dynamism of the non-informal sector in developing countries? : The article brings back the definition of the informal economy into the perspective of the developing countries. Whereby in terms of the European model the informal economy is seen as backward whilst in the developing world it is seen as a solution to the failing model of the capitalist economy. This brings out that perhaps the problem is that the term “informal economy” doesn’t sufficiently define the contextual dynamism of the non-informal sector within the developing countries. But not forgetting that we live in a globalized world where economies are linked internationally which makes it difficult to stand out and be independent of European standards. Therefore the term social networks is introduced and is better at describing the informal sector in developing countries. The contextual dynamism brings to light that the informal economy is made up of social networks, has three characteristics. Three phases which in the past has failed to properly integrate the informal economy into an African context according to Tokman are: the structuralist perspective, Neo-liberalism and ILO reformist view. In European mode it is seen as a nuisance whilst the informal economy traders are the real seeds of the free market who are fighting the bureaucratic structures/limitations that prevent them from being capitalists. A study done by Skinner (2008) on the struggle for the streets: processes of exclusion and inclusion of street traders in Durban. This paper uses national data, news clippings, published research, interviews, and legal and policy documents. It deals with the changing attitudes towards the street traders and looks at the local authority’s approach to the Warwick Junction from the 1920 till current. The study reveals how governments in the past saw it easier to destroy the informal sector rather than maintain it. Surveys show how street traders make as little as R60-102 a week showing that there is a close correlation between being poor and working as a street trader. It was also found that most traders are women selling less lucrative goods. Traders have harassed by police authorities and laws such as Group areas act (1950), the black urban areas consolidation act (1945), Move on laws (1973) made sure that the street traders were restricted and disallowed the black population from using lucrative trading spots. Durban
  • 12. 11 suffered the most making the Warwick Junction one of the central features of inclusion of informal economy into mainstream economy. The vital actors of the inclusion discussion was the SEWU (Self-employed Women’s Union) which facilitated discussions allowing for a bottom up approach helping traders to freely discuss their needs. The Warwick junction renewal project was created to focus on improving the areas cleanliness, trading and employment and transport efficiency of which has benefitted the traders immensely. The study found that third parties involved such as SEWU usually make government initiatives successful compared to if government does it independently. A study done by Meshack and Naidoo (1998) on urban renewal programme within the Warwick Avenue Area. The purpose of the study was looking at the urban renewal programme chosen to be used within the Warwick Junction where the early morning market is situated. The Warwick Junction area according to the Urban renewal programme should be turned into a shopping mall ahead of the 2010 soccer World Cup. They conducted the study by interviewing civil society, private sector, state, and the traders (which turns out it is largely dominated by women). Concerns sparking the urban renewal programme is crime, unhygienic conditions and an uncontrollable environment. The study shows the shortcomings of the urban renewal programme in that it does not benefit the traders and there is little representation for the traders even though local authorities, unions and community organizations were involved in defending traders they lack skills and resources. Also very importantly it shows that Warwick Junction area is a transportation hub which makes the early morning markets productive since daily thousands of commuters flock for transportation. Therefore this study raises that urban renewal programmes bring in formalization of informal business sector and how informal traders fail to integrate within these plans. Most importantly it shows the lack of partnership that the government has with its people. Limitations of study is that it does not go into detail about what questions were asked. A study done by Doung: Market versus Mall (2009) analyzes the situation of the early morning market within the Warwick junction and brings in a humanitarian aspect whereby the informal traders have not only built their history there, but their livelihoods. The study interviews informal traders which are largely women and the participants explain how the market is their only source of income. It reveals that the early morning markets have been running for more than a hundred
  • 13. 12 years and has been providing basic meals for families. Part of this ninety nine years is the indentured Indian laborers who dominate these early morning markets. Also informal traders have shown resistance by trying to get the matter to court. This study emphasizes on modern town planning replacing socio-cultural energies. Limitations of study is that it does not get the perspective of the area manager, architects as to whether they are aware of the traders’ grievances. A study done by Skinner (2009) Challenging city imaginaries: Street traders' struggles in Warwick Junction, Agenda: Empowering women for gender equity used a mixed methods approach interviewing eight thousand traders which were mostly women. The study conducted surveys and it revealed that there are 19 301 street traders in Durban as a whole then in central Durban place such as Warwick Junction) 10 000. It was found that 4 065 are located in and around the Warwick Junction of which 59.3% are women. 4705 were interviewed and it was found that 80% are sole bread winners. It also reveals how the junction provides the distribution of cheaper goods to the poorer South Africans and is a transportation hub for many. The study emphasizes the women’s role within the early morning markets and how they struggle daily to provide income for their families. And also the modernization of the city and mostly raises the issue of the rising of woman headed homes in South Africa. Therefore the study shows the impact that development will have on people’s livelihoods and questions who will benefit the most from the building of the shopping mall in Warwick mall. Limitations of the study: the study does not look at how the state or municipality can be approached to include the needs of the informal traders. An article written by Maharaj (1999) on the integrated community apartheid could not destroy: The Warwick Avenue triangle in Durban shows that the wanting of the removal of the early morning markets in Warwick Avenue is not new as the apartheid system had strict control over the inner city. The article gives the history of integrated residential development in the area, how the group areas act and Urban renewal programmes were meant to remove the Warwick street traders for white people. It reveals that the Warwick area supports the majority of the low income people and is most importantly a transportation hub. The article shows how Warwick Junction is rich with history and the first working class was heavily reliant on the area as it produces affordable goods. The history is largely of the indentured Indian laborers’ who cover
  • 14. 13 one third of the Avenue for residential and business purposes. The article sources to gather information used sources from government research, DCC records civic organizations and newspapers. A study done by Van Schilfgaarde (2013) on the trajectory of Warwick Junction as a site of Inclusivity in Post-Apartheid South Africa: the study used a qualitative research in the form of interviews. The people who were interviewed were city officials, formal shopkeepers, informal traders and leaders of NGO’s. The paper establishes the importance of the integration of the junction into the plans of the city through important facilitators that were formed specifically for the junction. Facilitators that played an important role is: Self Employed Women’s Union (1994), Informal Traders management board (1995), StreetNet (2002), Siyagunda (2005) and lastly Asiye eTafuleni (2008). The city official which formed the Urban Renewal project (itrump) its purpose was to tackle urban challenges and enforce integration by providing for trader’s needs. The study shows how inclusivity of Warwick is vital and during the apartheid and colonial era informal economy has always been a target. Very importantly it also establishes how the informal economy in South Africa plays a vital role as much as it may be seen in terms of the structuralist perspective. Therefore inclusivity is vital for Warwick junction as it will provide a suitable policy/approach that will drift away from national but to the specific needs of that area. This will produce a bottom up approach whereby the voice for the underrepresented will be a driving force creating community activism and autonomy. The study shows how even though there is a provision for mediators this inclusivity still proves difficult as there is communication issues between city officials and other stakeholders in responding differently to issues . The literature on the Warwick Junction/Avenue raises key issues present in its case. Common themes arising are modernization and structuralism. The very important of all is that the literature shows that Warwick Junction is a historical site from the time of the 1800s right through the apartheid system where it was used within racial politics. The issue of formalization was recently sparked in 2009 by the 2010 Soccer World Cup in that the area had to be developed. But literature also shows that challenges faced by the junction are not new as the previous governments of the colonial era and apartheid had attempted their removal. Dominant themes are of woman being the forefront of the area and they have played a significant role in the
  • 15. 14 resistance of the plans of the building of a mall or proposed development. Another key important issue that arises is none involvement of the street traders needs within the plan of the mall. From the literature the state claims that the removal of the street traders will benefit everyone but it is evident that the formalization of the informal traders will require money: rent per month, getting tills, setting up a shop setting etc. Resulting in the automatic illusion of informal traders ever being integrated within the Warwick Mall plans. Therefore this raises issues of that more studies need to be conducted concerning the programmes that the state undertakes, in that it needs to involve the informal economy within its urban renewal programmes. Also it also shows how only a few studies deal with the inclusivity of informal economy into the main stream economy but mostly shows case studies of the informal sector being marginalized. Therefore integration becomes vital. Very importantly it is clear that most literature focuses on the period/era immediately after the apartheid era. This study will attempt to document what is happening now almost twenty one years into democracy looking specifically at the relationship of integration between the traders and municipality.
  • 16. 15 CHAPTER THREE THEORETICAL FRAMEWORK: NEO-LIBERALISM Political Economy regards the proletarian ... like a horse, he must receive enough to enable him to work. It does not consider him, during the time when he is not working, as a human being. It leaves this to criminal law, doctors, religion, statistical tables, politics, and the beadle. Marx, Wages of Labour (1844) Neo-liberalism is characterized by fiscal austerity, deregulation and privatization. There is a distinct withdrawal/shrinking of the state and a transfer of competence to the state are subsumed under a capitalist production (Narsiah 2002). Neo-liberalism theory was created after the Great depression within the upper north where it was used to rebuild their broken economies due to war which left the economy neglected. This was achieved through the creation of the Bretton Wood institutions IMF (International Monetary Fund) and the World Bank who initiated economic policies whereby free competition and enterprise govern economic activities. The main emphasis for neoliberal policies is that it fills in the gap of the state’s weaknesses in that it can provide efficient services to the people (Bockman 2013). It paves the way for anarchy by giving unrestrained liberty to the individual and limiting the powers of the government “Although neoliberal projects are being pursued on many different and often tangled scales, it is in cities and city-regions that the various contradictions and tensions of “actually existing neo- liberalism” (Brenner and Theodore this volume) are expressed most saliently in everyday life. It is also on this scale that one can find major attempts to manage these contradictions and tensions in the hope of consolidating the neoliberal turn through supplementary and/or flanking strategies or policies” Jessop (2002) argues that local authorities and city managers in post-modern cities have thus adopted new modes of urban governance based on the ideals of neo-liberalism, with an emphasis on privatized planning, in the form of public-private partnerships, with municipal authorities experimenting with new regulatory mechanisms of urban governance; and the implementation of large scale urban renewal projects Murray (2004).
  • 17. 16 In South Africa when apartheid officially was abolished the ANC adopted a neo-liberal economic approach (GEAR) whereby they allowed the global institutions IMF and World Bank integrate our local economy with the global economy (Narsiah 2002). Integration into the world economy is through the opening our borders to foreign markets, privatization, trade in essence an opportunity for the global to exploit local resources for their own benefit. When neo-liberal policies are implemented in most cases government intervention is minimal leaving the citizens to fend for themselves resulting in them seeking other ways to generate income (Yusuf 2011). The situation of the Warwick Junction: the informal traders are victims of failed state intervention between the enforcers of the policies and receivers (state) in accommodating economic interests with the awareness of human needs. This results in a vulnerable economy whereby an increase to unemployment is prone because of high competition between the locals and foreign nationals. This creates the informal economy which works in parallel with the formal economy making the informal traders the real seeds of the free market as they are fighting bureaucratic limitations that prevent them from being capitalists within the formal economy (Yusuf 2011, Habib-Mintz 2009). Critical issue is that the informal traders’ purpose is for survival needs versus the renewal programme which carries forth modernization to formalize. This becomes a problem because the neoliberal policies center on economic interests rather than human development needs. The EThekwini Renewal and Urban Management Programme (ERUMP) should be understood in terms of the neoliberal concept of development which, in this instance, is premised on the modernization theory. The proposed development would result in the interests of traders being traded off for the interests of a network of already empowered businessmen and foreign-owned entities; and would also have resulted in inequity between the formal traders incorporated in the mall and the remaining informal traders who would have been unable to compete with them (Comins, 2009) One of the hallmarks of urban apartheid was the spatial regulation of urban activity, frequently through the application of familiar planning tools such as zoning.
  • 18. 17 According to Carmon (2013) many of these large projects have been commercially successful. They attract business, local customers and tourists, make a significant addition to the local tax base and enhance the city’s prestige. The public-private deal-making which made them possible has transformed the nature of city development practice. It has frequently raised troublesome issues of conflicts of interests and accountability, but the participants and the public have tended to ignore them. Researchers who investigated the distribution of benefits from urban economic developments of this Third Generation type have agreed that they contributed to widening the gap between the ‘haves’ and ‘have nots’. The ‘trickle down’ theory, according to which benefits from rapid economic development filter down to all levels of society, has not stood the test. . Instead, ``divided cities'' and ``cities of conflict'' grew up in the 1980s and 1990s, in which ``islands of renewal'' are surrounded by ``seas of decay'' Government needs to find a mutual confrontation with the traders including reworking policies with incorporating a balance between economic and human needs (Skinner 2008). This shows that capitalistic development (neo-liberalism) is not humanitarian the case of the Warwick Junction relates to justify this, that when the government pursues neo-liberal interests the interests of the minority are “ignored” as they need to meet the requests that come from the Bretton Wood institutions with structural adjustment programs, trading policies etc. Carmon (2013) states that in the US, by contrast, concentration and clearance of land sites was generally done by public agencies, while the new construction was in the hands of private entrepreneurs. As a result, the number of apartments demolished under the aegis of the Urban Renewal programs in the US was much greater than the number of units built. The slum areas were frequently replaced by shopping centres, office buildings, and cultural and entertainment centres, all of which were in high demand in the booming years that followed World War II.
  • 19. 18 Limitations of framework: Not all social relations are confined to the economy. There are other contributing factors to the circumstances of unemployment and the creation of the informal sector. Therefore the liberal approach does not offer solutions for the poor, downtrodden, oppressed and exploited people it only further increases such cases. Liberalism reduces power relations to governments when in fact there are other types of power relations which influence life choices and circumstances. Market driven economy assumes that the economy will take care of social institutions but in reality this is not the case. This shows that making economic development the core of society does not benefit everyone but instead adds to the dilemmas causing governments not to cope. Another limitation that the limiting of government structures is the cause of the no solution to the poor, downtrodden, oppressed and exploited because it widens the gap between the rich and poor. This further gives advantage of the private owners to further exploit and own resources of public and this results in conflict.
  • 20. 19 CHAPTER FOUR: RESEARCH METHODOLOGY We think we listen, but very rarely do we listen with real understanding, true empathy. Yet listening, of this very kind, is one of the most potent forces for change that I know -Carl Rogers 4.1 Introduction Methodology allows for research to take place in practical form and there are different methods one can employ in putting research into action (Kothari 2004). As Kothari states, ‘Research methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically.’ (2004:7).This chapter will explain how the research was undertaken and the reason for the choice of methodology. It will give the ethical dilemmas encountered during the research and explain sampling and data collection process 4.2 Researchmethodology Most of the literature relevant to the study (as observed in chapter two) used a qualitative methodology on site mostly interviewing the traders and the relevant stakeholders. Therefore this resulted in influencing the methodology for this paper. This study used qualitative research, as it will be exploring complex phenomena in explaining further the relationship between the variables. This involves understanding it through human experiences and human perspectives. As Merriam states, ‘The key to understanding qualitative research lies with the idea that meaning is socially constructed by individuals in interaction with their world.’ (Merriam 2002:3). I considered Qualitative research suitable for this study as it will be exploring the integration of the traders into the urban programme. In chapter two most of the literature has established that the situation largely revolves around livelihoods, which makes it a very personal issue towards the traders. This requires rich data that will involve a lot of interpretations of the traders as to what they think about the situation. In this case qualitative interviews are vital to produce in- depth information that is needed. Interviews are largely favorable when objectives are based upon understanding experiences, opinions, attitudes, values and processes (Gray 2014). And most importantly, where there are opportunities for probing is required. Qualitative research
  • 21. 20 requires the direct involvement of the researcher; in this case it means that the interviews conducted require one on one interaction. As Creswell states, ‘Researcher as key instrument: Qualitative researchers collect data themselves through examining documents, observing behavior, or interviewing participants. ’ (Creswell: 2014) 4.3 Sampling and Data collection: Sampling An amount of ten traders within the Warwick Junction was sampled. This was done through purposive sampling using the homogenous method, because the study is specific to the characteristics of interests group that was examined in detail. All units share similar background and occupation. As stated in chapter two the literature largely shows that the traders within the early morning market are from an indigenous background (indentured labourers’). Whereby you find that there are generations. Sampling is vital for the process of data collection as you select a number of participants for the study that they represent the larger group from which they were selected (Bless et al. 2014). Because the study is based on qualitative research, a non-probability procedure was selected. This means that since purpose sampling was employed the chance of generalizing results is kept to a minimum and that the selected units are considered to be most common in population under investigation (Bless et al. 2014). Data Collection The data was collected through semi-structured interviews through interaction with the street traders to facilitate the use of recording equipment to tape the dialogue. Semi- structured interviews allow for probing of views and opinions from the participants (Gray 2014). ). Also participant observation on site, and documentation such as journals was used. While planning the data collection process to access the market a gatekeeper was needed in order to gain access into the market. As Creswell states, ‘it is important to gain access to research or archival sites by seeking the approval of gatekeepers, individuals at the site who provide access to the site and allow or permit the research to be done’ (Creswell 2014: 188). The use of consent forms for the participants was considered. When meeting the participant identity had to be shown via producing a student card to show legitimacy of being an honor’s research student. The participants before answering any questions had to read the consent form containing details of
  • 22. 21 the researcher, title of the project and ethical considerations regarding participation conditions. Once read and understood the participant signs and was assured anonymity. Consent form is needed in order protect the participant and also ensures that he/she is not coerced into giving information. As Miller and Boulton state, ‘Informed consent is based on the ethical practice of respect for the dignity and worth of every human being and their right to self-determination’ (2007:2202) Data Analysis During data analysis was interpreted through text. The data collected was transcribed, coded and analyzed through emerging themes. The major themes recurrent were capitalism, family, unemployment, heritage, ethnicity, development, privatization, Neo-liberalism, marginalization. 4.4 Ethical dilemmas Research ethics is a vital element to the research paper. It is vital because it prevents the abuse of people’s rights in the name of social research (Bless et al. 2014). Ethics insures that the research undertaken contributes and adds value to the community/society especially the lives of all people. As Bless et al. states ‘Thus social science research is a source of power which can be used for social benefit, or abused for personal gain. For almost every new research finding, there are people who stand to gain from it, and there are people who might lose because of it’ (2014:27) When arriving on the site, there was an announcement via speaker made at our arrival. Upon arriving one could already notice the very customer less market and somber mood of the traders. Yet outside the market it is buzzing with delivery vehicles with little parking space. When approaching the traders there was reluctance on their part to reveal any information without the consent first with the stall owner and the leader of the union. The presence of an outside party made most traders uneasy as prior when outsider’s visited it was to try changing their setup. The ethnicity within the market is very visible making the majority of the traders Indian and a few indigenous Africans. The problem came to the indigenous Africans where language barrier was a
  • 23. 22 problem. Most come from Eastern Cape whereby Xhosa is their home language. The consent forms being in English one had to keep translating in order for them to understand as English is not their home language. Most of the time, they did not even understand the question at all. The noise level within the market made it very hard to interact with the traders. Noise factor was: music in the background, people talking in the background, and the announcements by municipality via speakers. When interviewing the traders there was no seating place, most times one had to stand whilst conducting the interviews. Due to the trader’s time constraints interviews had to be conducted on site whilst they attend to customers/ fellow traders. This caused pauses during the sessions and at times affected the recording session. Some traders come with their children which run around the market. The toddler tried to touch the recording equipment making it difficult to concentrate on the interview.
  • 24. 23 CHAPTER FIVE: ANALYSIS It was Marx who had first discovered the great law of motion of history, the law according to which all historical struggles, whether they proceed in the political, religious, philosophical or some other ideological domain, are in fact only the more or less clear expression of struggles of social classes, and that the existence and thereby the collisions, too, between these classes are in turn conditioned by the degree of development of their economic position, by the mode of their production and of their exchange determined by it. This law, which has the same significance for history as the law of the transformation of energy has for natural science. Engels, Preface to The Eighteenth Brumaire of Louis Bonaparte (1885) The aim of this research project was to provide a critical analysis of the integration of the Warwick Junction into the EThekwini renewal urban management programme. The basis of this was formed through first establishing a theory then linking it to the methodology which was supported by the relevant literature. In order for data to be analyzed for this project it was vital for the transcribing of the interviews to be able to review or amend codes in order to make sense of it. The eThekwini Renewal management programme is managed currently by the Municipality. The municipality places this programme upon the market in order to improve infrastructure and run it. The traders then occupy the market to sell their goods to consumers. First the data findings will be presented, interpreted then finally analyzed. This will be followed by conclusion and recommendations. The data gathered at the Early morning market shows that majority of the traders are all breadwinners. Each of them daily wakes up to sell goods to run their households. This could be stated as their motivation of being there at the market as majority has been there for over many years. This is stated by most of the participants to quote a few: Participant one: “Uh, about twenty years, but I have been here since 6 years old. I am old here, in the 50s we were young boys and my grandfather was planting old vegetables. That’s how this market came about, that’s why they call it the Indian market” …..
  • 25. 24 Participant two: “I have been in the market by the time I left school let’s say 1978, yes about 35 years I’m the third generation from my mom to me” …. “Yes I have a wife and two sons” Participant three: “it is a family business, next year it will be a 100years” Participant four: “yes I support twelve people back at home in the Eastern Cape” Most of the stalls are currently owned by the traders. Some traders own many stalls at a time increasing their rent to the municipality. The traders who own stalls pay rent to the municipality approximately R100-R200 a month for a single stall, then as some own more than one their rates will vary. The data collected suggests that the municipality has reached out to the traders in the form of building them infrastructure, providing shelters and lockers to store all belongings and merchandise. Also municipality has provided restrooms and cleaning services, only a few traders felt that there was no interaction between municipality and traders for instance participant seven states: Participant seven: “They don’t reach out in any way. They make things worse. They want to harass us over here. They come and do their own things sometimes.” Positive: Participant two: “Yes they did help us for the toilets and flooring all those things. We have a roof over our head *laughs*” Participant six: “toilets lighting, all those things out there” The most important within the data findings is that most of the traders when it came to integration felt that there is still a lot of work to be done with the relationship they have with the municipality. This is the case because most traders still feel hurt by the 2009 incident that occurred within the market. Participant one makes this very clear: Participant one: “I don’t see, since I’m here I’ve never ever saw the municipality working with the traders at all. We just come here and do our thing and uh...*long pause* that’s all we just carry on. We supposed to have that interlink. I don’t know if you heard that they wanted to close the market down? In 2009, and we couldn’t let it go. Our livelihood… we have 1900 stalls here and if you count that by six about 12 000 people would be affected.
  • 26. 25 And leaving the buyers and all those things, taxi’s will be affected as well because they won’t have not customers anymore… it’s a lot of things. No they didn’t approach us they just came in and wrecked and demolished the place.” Some feel that although there are a few misunderstandings they could still make it work as they need the municipality to help them with parking, advertisement to get more customers, security, and to get permits in order to have ownership form previous owners. Only one trader felt that there is a very good relationship between the traders and municipality and felt that there was already integration and no changes were needed. This was very interesting to also find that those of South African origin were very skeptical in giving information. Most even stating that they are busy and cannot participate. Even with consent form and identification produced they did not want any part with the research. The important aspect within the data findings was that the early morning market has history and strong ethnicity background. Majority of traders within the shelter are of Indian descendent. As stated by a participant: Participant one: “That’s how this market came about, that’s why they call it the Indian market. If you look at the map it says Indian market and not early morning market. It is not the early morning market it is the Indian market because the people planted the crops themselves and brought it to this market” And also as one was going through the site majority of traders seen and interviewed were Indians. The challenges faced by the traders are largely common for all: customers, parking, security on the outside, and especially advertisement. Most when asked about consequences of the integration/formalization generally stated increasing of rent, loss of livelihood and especially their heritage of which they have possessed for many years. When traders were stating solutions or the problem at hand all had felt that they need a boost from the municipality in order for the market to be a success. The pricing of goods is relatively cheaper due to the traders sourcing their goods from bulk markets which are run by the municipal. Most stated that their aim/mission is to provide for the poor of the poorest which cannot afford to shop within malls due to their source of income. As one participant stated: Participant two: “market pricing is very low as you can see we have things for R5 and in a mall/shopping Centre you pay double the price. We buy in the bulk market, at Clairwood
  • 27. 26 market. There are some farmers bringing vegetables also, it allows for us to keep our prices low” The data also shows how very importantly the traders are organized within a union and that union has also helped with the 2009 case whereby there was proposed development towards the site. This union represents the traders which they put money towards paying for lawyer and court fees and this successfully put a halt to the development. Data also reveals though that a few traders within the vicinity reveal that the association only represents the Indians while some say they are represented by the municipality. Very interestingly some revealed that the union only represents stall owners only Looking at the presented data findings it can be interpreted by first looking at the themes that are emerging. First of all we see how history plays a vital role through human experiences. This is seen through ethnicity. Ethnicity is shared cultural heritage, ancestry, history, homeland and language/dialect of the traders. This reflects evidently within the early morning market as majority of the traders interviewed are of an indentured Indian laborers’ background. This then forms the background of heritage within the junction whereby you find that the stalls have been passed down from generation to generation making it a birthright which each individual must try to preserve and make best of it. This is supported by chapter two whereby in the literature review authors Doung (2009), Maharaj (1999) and Van Schilfgaarde (2013) clearly show the important link between heritage, history and ethnicity. Now this heritage is disturbed by power relations who bring development and laws and policies which justify those developments. This law was apartheid which brought unjust laws which justified the oppression of traders through forced removals. This is confirmed through literature in chapter two whereby it is shown how authority through policing would initiate the removals and violence. In one of the interviews and literature it is stated how the use of rubber bullets and teargas was used to intimidate the traders. This then brings an aspect of means of ownership whereby the land occupied by the traders does not belong to them which makes it difficult for them to survive. Means of ownership historically has always been an issue amongst the citizens making dialectical materialism and historical materialism an important aspect in this case. The traders cannot survive as capitalism brings in privatization where the traders site is seen as
  • 28. 27 profitable to investors therefore this relates to policy as stated within chapter three that the informal economy is formed through neo-liberalism. Neo-liberalism explains the rise of unemployment and how this forms the informal economy therefore showing how most of the traders on the site do not voluntarily choose to be within the informal economy but it is factors around them that are caused by structural forces. The data findings confirm the theoretical framework as it shows how unemployed people use this channel to make a living, also it shows the rise of modernization whereby the informal economy does not fit within the capitalist features for instance the traders have no machinery which in essence makes them ‘backward’. Whilst capitalism promotes high technology it also encourages development, historical areas such as Springfield and Manor gardens (as mentioned by the traders) were cut down in order to make space to build housing and big malls such as Makro (currently present). This shows the spread and rise of modernization whereby production takes priority and as in chapter three economic activities become forefront of development. Family is also vital and a clear motivation for making income (breadwinner status) and also comes in one of the reasons for preserving heritage. This then produces conflict of interest as the traders’ needs and the authority cannot coexist. This becomes an inherent feature of capitalism at it is clearly shown that economic needs override human needs and it does not help much when there is no integration between the two . This causes uprisings and protests as stated in most interviews and clearly shown within the literature that the traders had marches, formed a union to protest against the proposed developments. Conflict of interests becomes an important factor when dealing with integration as the relationship between traders and the municipality is affected. And lastly the most important is Marginalization: on a large scale to the economy the informal traders are marginalized within the system. They are important but at the same time overpowered by capitalist production and support its structure. Ironically they co-exist also making the informal traders the true seeds of the free market because they are trying to come into the mainstream and are bracing the bureaucratic structures that prevents them from becoming capitalists.
  • 29. 28 The themes and findings show that the early morning market within the Warwick junction is a historical site. It carries the heritage of both indigenous and indentured individuals and families in South Africa. The case of integration proves difficult mainly because of clash of interest. Literature clearly shows that there have been attempts in making the municipality programme reach out to the traders even having intervention from third parties. Which shows it is likely possible to have integration when people work together. The case for this market proves difficult as not all traders believe that there can be a good working relationship between the municipality and traders. This is partly because the incident that occurred in 2009 broke the trust now this has brought tension and reluctance of the traders to integrate. But at the same time it is very important to note that integration requires both sides to corporate. In this instance the traders are blocking their own success because of their rightful claim to the site but at the same time forget that as much as they have history and heritage, the site does not belong to them (legally) as it belongs to the Municipality. The problem of ownership is a critical factor as it brings them into a position of inferiority and submission. The site in fact does need development and the traders admit this through raising challenges of parking for customers, security on the outside and advertisement of the market. This shows that proposed development can actually improve them but in reality the case of formalization brings in too many changes. As mentioned by Tokman (2007) and Habib-Mintz (2009) in the literature the requirements of formalization produce an unbalanced relationship between the requirements and the possibilities. This then becomes a problem because if proposed developments take place it would mean the total eradication of the traders as they will fail to meet the requirements. Integration then becomes vital in a sense that instead of dictatorship there should be a platform now for leadership to be mixed allowing for traders and municipality to join forces. This can be achieved through face-to-face meetings between them willing to compromise in some elements of requirements while also the traders willing to trust and let go of current grudges. Not to say that the case of forced removals, violence from police should be disregarded but the only way is to find common cause (so there is also a problem of attitude towards situation). There is an existing case of integration when one looks at it, how? The traders and municipality are working within the same vicinity whereby within the apartheid system you would have never found such a working relationship. Perhaps the process of integration has started on a phase one where the setup might be primitive but it is incorporated through giving it
  • 30. 29 shelter, and some sort of parking facility with little technology to assist here and there. At the same time it is not adequate enough as traders also realize this when asked about their current challenges and needs. Therefore phase two of this integration would require proper formalization of the infrastructure which would also ultimately result in the formalization of the traders (you cannot separate these two). This results in that the old design impedes development. A very important element to this junction is that as much as the traders complain about invading of their territory they too have power relations. Most of the traders have assistances working for them, which makes them bosses within their own right. This importantly shows how the traders have competition amongst themselves. The decline of customers could be explained through the end of apartheid. When apartheid was abolished the curtain of laws was pulled down enabling for the previously disadvantaged to now seek other places. More opportunities for previously disadvantaged groups meant that the market lost its audience because the group was no longer restricted to it. Therefore the rises of malls promote strong competition and see markets as backward production. The traders also have a valid point in pointing out that if they are removed then a lot of lives would be affected especially those who rely on their cheap produce. A bulk of low income workers depend on the market whilst also on the surrounding transport within the area. All things are very convenient for the commuters who pass here daily but it raises concern to see a buzzing outside yet within there is an empty market with sombre moods. What I truly gathered from this data is that the traders really make a vital point about providing for the low income workers within the city. If one looks at it from a humanitarian aspect it is a beautiful sight to see such a historical heritage site and its origins being there for the previously disadvantaged groups who are still trying to climb up the ladder. This show how the system usually leaves people to fend for themselves and blames them for not working hard enough which results in their own misery. But what is forgotten is that we humans create the system and create these factors and systems which are carried through structures inherently and throughout history. These structures are passed down from generation to generation creating intergenerational wealth. Therefore this shows that we can edit the system through unity as the traders have shown. Unity is vital as it requires one to sacrifice their individual interest for the benefit of the group/community.
  • 31. 30 The traders also give a lesson of if we don’t lookout for each other then that is how the gap between the rich and poor increases. How so? When you look at the system it suggests that it has a trickledown effect and eventually everyone will climb up the ladder. But in reality it does not work that way because resources are not shared making those who have more benefit while those without ownership (as seen here with traders) are left on the roadside. Therefore one could say that these informal traders are a community within a growing individualist society and are a government within their own right because the government voted in usually fails to protect public property. And this is sad as within South Africa there is an issue of land ownership and it is reflecting within the early morning Market. As much as the apartheid system created dysfunction it has also created a foundation of solid social capital which is interconnected with historical roots and made up of different individuals breaking boundaries. Conclusion The data findings have validated theoretical framework and literature review in that when system fails the informal economy steps in to form a system of its own. This system provides breadwinners with a livelihood, not only a livelihood but a support system where people are the same and are able to accept each other from being rejected from main system. The methodology then sought to seek how the traders system works and also validated past findings within literature and has produced themes which were explored to understand the integration. This has shown how integration does exist but is not quiet adequate as there are many elements which still need work. The historical element keeps appearing in all issues of traders which show that the junction is part of a great history of the county socially and economically. Apartheid being forefront shows how the removal of ownership to property and lands have caused much of the problems of the traders. The most important element is the conflict of interest between the traders and the municipality which impedes facilitation of discussion. The traders show great solidarity but at the same time this solidarity can be detrimental to their future as their claim of birthright is preventing them from seeing how development can actually solve their challenges of parking, advertisement and so on. But also critically this is also been blocked by the heavy requirements of the programme in asking them to abandon their livelihood to an unknown future.
  • 32. 31 Any form of change no matter how small it is, no matter how somehow they will benefit will always have unforeseen consequences for the current traders. This is a complex issue which requires also the involvement of policy makers as we should not forget that factors that influence integration are also influenced by our interconnectedness into the international economy therefore making government intertwined in the governance of global institutions such as the IMF and the World Bank. This results in the neglecting of local governance in order for international requirements to be met. I close my argument with a quote from Marx: If we have chosen the position in life in which we can most of all work for mankind, no burdens can bow us down, because they are sacrifices for the benefit of all; then we shall experience no petty, limited, selfish joy, but our happiness will belong to millions, our deeds will live on quietly but perpetually at work, and over our ashes will be shed the hot tears of noble people. Marx, Letter to His Father (1837)
  • 33. 32 RECOMMENDATIONS: Looking at the current issues of integration it is advisable that a follow up study is done that looks at the EThekwini renewal urban management programme governance and its approach o n the informal traders. Furthermore governments regarding special cases such as the early morning market should seek or create policies of inclusivity which allows for an approach that will suit the needs of this particular area. Inclusivity will follow for a bottom up approach from traders, because currently the cause of conflict is through clash of interests (between government needs and traders’ needs). This will positively result in constructive engagement without marginalization, give a voice to underrepresented, community activism and autonomy. I say this because the main problem also stems from the fact that many African countries are adopting western models which are failing and in the process hurt the vulnerable citizens. Another recommendation for the future could be that the junction can become a heritage site which will also incorporate the traders’ needs within a formalized setup. This can be the first example of a unique set up in a formal mall which provides for low income workers. This can showcase how formal and informal can co-exist but at the same time breaking the high bureaucratic boundaries. This would seem unrealistic at the moment because it could take a lot of investment from government or private property without expecting too much in return because main emphasis would be a guideline of human needs rather than profit motive. In reality not many investors would see this as profitable but if you invest in human capital and social economy you would’ve invested in society as a whole. How so? Giving them an opportunity to compete in the system will reproduce itself enabling them to eventually stand on their own without subsidy. This will increase their social economy encouraging their independence and most important this creates good intergenerational wealth. Lastly it is important that government takes careful consideration when adopting policies that are economically orientated within a country that already has economic and social problems which had stemmed from the previous government practicing laws that used the economic sector to oppress citizens. Now these polices currently bring secondary victimization
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