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Proposals for Youth Unemployment Or  youth unemployment as a  “poverty trap”.   Ebrahim-Khalil Hassen  Zapreneur  editor@zapreneur.com http://zapreneur.com Presented at the Economic Development Conference hosted by the Department of Economic Development 30-31 May 2011 Birchwood Conference Centre
 The “instrumental” problem with youth unemployment The Ticking Bomb Metaphor –Someday, somewhere in a not so distant future we could have an uprising  … but already here, just small and uncoordinated.  Economic growth – The economy will not grow and grow in a shared manner without addressing underlying reasons of why inequality exists  Service delivery and income inequality – “Good” government outputs, poor employment, educational and income outputs   Livelihoods difficult  - Rural subsistence and/or informal employment limited in SA with spatial patterns being important Coordinated and integrated – Lack of basic inputs arguably not in place
“The Poor” Dynamically Poor ,[object Object]
Poor at two different points in time
Cannot withstand a shockAlso called,  ,[object Object]
Chronically poor
Living in poverty trap
The so-called “uneverythings” ,[object Object]
With time will

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Zapreneur proposals for youth unemployment naledi panel

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