International Labour Organisation 12th Regional Seminar In Association with the Department of Public Works M&G Profile

For Publication: 1 October 2007

Prioritising Employment Creation in Government Policies, Programmes and Investments Durban Convention Centre 8 12 October 2007 Background to the Seminar
The bi-annual International Labour Organisations Regional Seminar for Labour-Based Practitioners will this year be hosted by South Africa at the Durban Convention Centre between 8 and 12 October. Entitled Prioritising Employment Creation in Government Policies, Programmes and Investments, the seminar will focus in particular on the role that employment-intensive infrastructure projects have to play in the urgent task of alleviating poverty and unemployment in Africa. The forum will provide African countries with the opportunity of sharing their experiences of labour utilisation on infrastructure projects, as well as of learning from successful infrastructure-based work creation models in use both on the continent and in other developing countries. It will also provide delegates with the opportunity of reviewing the objectives set at the last seminar, which was held in Mombasa, and of assessing progress in implementation. Papers will be delivered by the foremost specialists in the development field, and workshop sessions will enable delegates to discuss these papers and their implications for their own countries. The South African Department of Public Works will specifically be reporting back on the progress of its Expanded Public Works Programme (EPWP), which developed out of the Growth and Development Summit (GDS) held in this country in 2003. The project, which was launched in 2004 by then-Minister of Public Works, Stella Sicgau, set the ambitious goal of creating a million work opportunities for unemployed individuals and marginalized groups over the next five years.

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Department of Public Works Chief Director: Employment-Intensive Special Projects, Maikel Lieuw-Kie-Song, reports that, three years on, work creation goals set at the launch of the project are largely on track. And, where there are shortfalls, these will be discussed at the seminar with a view to bringing them into line with targets. The R100 billion EPWP is the cornerstone of governments poverty alleviation and work creation programme, and is aligned not only to goals set at the GDS, but also to those set out in the African Union Plan of Action for the Promotion of Employment and Alleviation of Poverty, adopted at the Third Extraordinary Session on Employment and Poverty Alleviation in September 2004. In terms of the plan, each member of the Union committed to reversing the current trends of pervasive and persistent poverty, unemployment and under-employment on the African continent, and to improving the general standard of living at individual, community and national level. Key priorities were identified as the creation of an enabling political climate, the integration of social and economic policies, the extension of social protection schemes, the improvement of human and institutional capacity, rural development, and the empowerment of both women and vulnerable groups, such as people living with HIV / AIDS. In line with this, the possible applicability for Africa of new developments such as the Employment Guarantee Programme, which was launched in India last year, will be assessed. The programme aims to provide a minimum level of employment per annum for all able-bodied people of employable age through state-funded infrastructure development projects. Employment-intensive programmes have historically proven to provide cost-effective and high-quality solutions to the challenge of creating infrastructure in developing countries, and this years seminar will further explore the effective use of this methodology for the benefit of all African nations and their people.

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South Africas Expanded Public Works Programme

In 1999, unemployment and poverty were identified as one of the most significant threats to South Africas new democracy. At that time, approximately 40% of working-age people were unemployed, with a strong weighting amongst the youth. This situation, largely a legacy of apartheid policies, was further complicated by the social change taking place at the time, by the countrys exposure to the effects of the rapid globalisation of capital that occurred simultaneously with the advent of democracy, and by the fact that previous education practices had left most working people either under skilled or unskilled. The most important socio-economic challenge that faced government in the wake of the second democratic elections was therefore fourfold: to reduce unemployment, to alleviate poverty, to strengthen the general skills base, and to improve social services. The subsequent launch of the Community-Based Public Works Programme went some way towards addressing these issues. However, between 1999 and 2001, the programme only resulted in the creation of between 13,000 and 33,000 new work opportunities per annum, accounting for a reduction of a minimal 0,5% in total unemployment labour days. According to analysts, this was largely due to limited budgetary allocations, lack of capacity in both the public and private sectors, and the persistent problem of the skills shortage. Against this backdrop, government convened the Growth and Development Summit (GDS) of 2003, at which it resolved that a R100 billion Expanded Public Works Programme (EPWP) would be established. The programme itself was launched in September 2004 by then-Minister of Public Works, Stella Sicgau, in line with governments Peoples Contract for a Better Future election campaign of that year. Aimed at creating a million new work opportunities within a five-year period, the objective of the programme is to ensure that significant numbers of unemployed people are drawn into productive work, that they receive skills training while working, and that they are so enabled to become economically active and productive members of society in the long-term. The main focus of the programme is on the countrys youth, 70% of whom remain unemployed in 2007. Women, rural workers and marginalized groups, such as people living with HIV / AIDS, also receive high priority.

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Delivery is primarily through large employment-intensive infrastructure projects, such as the upgrading of roads, pipelines and storm water drains. Where technically and economically feasible, and without compromising end quality, labour is used in preference to machinery during construction, with the objective of providing either temporary or contract-based employment, as well as skills development, to local people. Other delivery channels include the environmental, cultural, social and economic sectors, which encompass such projects as the Department of Agricultures Land Care Programme, the Department of Environmental Affairs and Tourisms People and Parks initiative and the Department of Water Affairs Working for Water project. In the social sector, employment creation is through NGOs and CBOs, particularly those providing early childhood development programmes and home-based care for people living with AIDS. In the business sector, the spotlight falls on enabling and developing small, medium and micro enterprises, and on supporting these through skills development, internship and learnership programmes. In terms of the EPWP, all nine provinces, as well as all parastatals, government departments and municipalities involved in infrastructure provision, are tasked with taking steps to increase the levels of employment on these projects whenever this is technically and economically feasible. Funding is provided in the form of Municipal Infrastructure Grants, which are allocated by the Treasury on the basis of viable implementation plans. R45 billion of the EPWP budget for 2004 to 2009 has been allocated to infrastructure development, R15 billion of which has been allocated to employment-intensive construction. The projects funded by the programme are largely for the development of simple infrastructure that is particularly amenable to employment-intensive methods, and where the most additional work opportunities can be created. There are huge backlogs in this type of infrastructure in historically-disadvantaged communities, which is also where the need for employment is at its highest. The EPWP therefore aims to foster both infrastructure development and employment at a local level, ensuring that workers are not displaced from their communities by their need to work. As far as infrastructural outputs are concerned, it is intended that over the initial five-year period, 37 000 km of roads will be developed, as will 31 000 km of pipelines, 1 500 km of storm water drains and 150km of sidewalks. Further projects will include the maintenance of government buildings, and the creation of electrification trenches under the auspices of Eskom. Environmental programmes will, on the other hand, include the elimination of alien plant species on approximately a million hectares of land and the improvement of 1 200 km of coastline, while economic programmes will aim to create 400 sustainable small, medium and micro enterprises. Recognising, however, the inherent limitations in any Public Works programme, government sought early on to partner with a suitable organisation that would be able to extend the EPWPs reach and effectiveness.

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During the planning phase, it therefore approached the Business Trust with a view to providing support for the new EPWP. This resulted in the formation of the R100 million Business Trust Expanded Public Works Support Programme (EPWSP), which is aimed at ensuring that beneficiaries of the EPWP not only benefit from short- and medium-term work opportunities, but that they are also enabled with long-term marketable skills. Business Trust is a strategy-driven public / private sector initiative focused on taking practical action to reduce unemployment, combat poverty, support priority growth sectors and increase capacity throughout South Africa. The Trust mobilises resources from companies operating in the country to support initiatives designed to accelerate the achievement of agreed national objectives. Since its establishment in 1999, over 140 companies have committed more than R1,2 billion to this goal. According to Seguna Gordhun, Business Trust COO, the programmes primary purpose is to support the EPWP in order to alleviate the deep and enduring level of poverty and unemployment in South Africa. The problem, says Ms Gordhun, cannot be underestimated. Over 8 million people are currently unemployed in South Africa, 59% of whom have never had the opportunity of working before. In the 16 to 34 age category, defined as youth by the Youth Commission, the situation is even more dire - a staggering 70% have never been able to find work. In a concerted effort to address this problem, the EPWSP has now partnered with 45 municipalities across the country in order to support the government programme with business-specific skills and provide technical assistance. This accounts for approximately 80% of the infrastructure budget at municipal level. With two years remaining of EPWPs initial five-year period, South Africa will be seeking to review policy, goals and progress at the upcoming seminar. On-going strategy development and implementation evaluation will be firmly on the agenda, as will a review of the policy framework within which the EPWP operates. The seminar will also see a shift from the promotion of simple employment-intensive solutions to the potential offered by foreign and public service sector investments. The goal of full and productive employment, and of decent work for all, will receive specific attention. Indias recently-launched Employment Guarantee Programme, for instance, may have salutary lessons to offer for the countries of Africa. According to Maikel Lieuw-Kie-Song, the programme guarantees every Indian household a minimum of 100 days of work at minimum wage level every year, so addressing the issues of unemployment, infrastructure development and social security in one bold integrated initiative, and providing unemployed people with the dignity of work.

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The South African government and, in particular, the Department of Public Works, is particularly interested in learning from the methodologies developed as part of this programme, with a view to assessing the viability of a similar programme for this country. ends. Word count: 1,844

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