Table of Contents
Page
Question 1
1 Introduction ………………………………………………………………………. 3
2 Activities in the community of Masobye ………………………………………… 3
3 Actions to reverse unemployment ……………………………………………... 4
4 Results of the actions at reversing unemployment …………………………. 4
5 How the municipality can reduce unemployment and grow the economy … 5
6 Conclusion ………………………………………………………………………. 5
7 Reference list …………………………………………………………………… 5
Question 2
1 Introduction ……………………………………………………………………. 7
2 Reasons why economies in the Global South are declining or stagnant
while others are growing
2.1 Declining economies in the Global South ……………………………. 8
2.2 Growing economies in the Global South ……………………………… 8
3 Solutions for weak economies ………………………………………………. 9
4 Suggestions to achieve economic development while maintaining
environmental integrity for generations ………………………………………. 11
5 Conclusion ……………………………………………………………………. 11
6 Reference list ………………………………………………………………… 12
7 List of Appendices ……………………………………………………………13
1
, Question 1
1 Introduction
The issue of unemployment in South Africa is an ongoing topic, it has been a topic of
discussion since the early 1980s to date. In accordance to many authors,
unemployment in South Africa results from the context of high population growth and
large net inflows into the labour market. “The labour market expands on average by
about 600 000 net new entrants each year. By 2001, the strict and broad
unemployment rates had risen to 30 per cent and 41 per cent respectively. Even by
the strict definition, unemployed continue to rise by about two or three per cent each
year” (Altman n.d.). In the post-1994 the South African country had hopes of tackling
the issue of unemployment and achieving economic growth as a result of supportive
economic policies that were aimed at creating jobs and eradicating poverty levels and
inequality. However, such did not happen as improvements on the employment front
received less attention from the government. Today, South Africa is facing the
challenge of shifting the state of its economy to a technologically, advanced future and
doing so in a manner that ensures that most marginalised communities are also
shifting to sustainable economic growth and development (Burger & Woodland, citied
by Ferreira & Rossouw 2016).
However, the shift is derailed by high population growth in the country, which leads to
a high demand of job opportunities which are already scarce in the country and some
communities not being able to develop. As a result of this, individuals have to make
ends meet on their own by engaging in activities that can improve their livelihoods.
This paper focuses on a discussion about the activities that individuals in the
community of Masobye formally known as ‘Pankop’ are engaged in as a way of
improving their livelihoods, what the people in the community are doing to reverse
unemployment and how Dr J.S Moroka Municipality can help reduce unemployment
and grow the economy at the same time.
2 Activities in the community of Masobye
Most individuals in the community of Masobye are operating small businesses as a
way of improving their livelihoods. The most common small businesses in the
community are tuck shops, fast foods and car washes. Some operate hair salons from
their homes which makes their lives easy because they do not have to pay rent, all
their earnings go towards improving their lives. There are also people who sell snacks
at schools during break, the heads of the schools in Masobye allow local community
members to sell in their respective schools as a way of contributing towards rural
development. However, a maximum of only five individuals are allowed to sell in each
school, this ensures income and lessens competition between the individuals. For one
to sell in a school, they have to receive permit from the head of the school.
There are individuals who are into crop production, with this kind of production they
are able to provide food for their families and raw materials for agro-based industries
in the cities. Most people are into crop production because it is their traditional
occupation and the village has enough land to accommodate this activity. Others
2
Page
Question 1
1 Introduction ………………………………………………………………………. 3
2 Activities in the community of Masobye ………………………………………… 3
3 Actions to reverse unemployment ……………………………………………... 4
4 Results of the actions at reversing unemployment …………………………. 4
5 How the municipality can reduce unemployment and grow the economy … 5
6 Conclusion ………………………………………………………………………. 5
7 Reference list …………………………………………………………………… 5
Question 2
1 Introduction ……………………………………………………………………. 7
2 Reasons why economies in the Global South are declining or stagnant
while others are growing
2.1 Declining economies in the Global South ……………………………. 8
2.2 Growing economies in the Global South ……………………………… 8
3 Solutions for weak economies ………………………………………………. 9
4 Suggestions to achieve economic development while maintaining
environmental integrity for generations ………………………………………. 11
5 Conclusion ……………………………………………………………………. 11
6 Reference list ………………………………………………………………… 12
7 List of Appendices ……………………………………………………………13
1
, Question 1
1 Introduction
The issue of unemployment in South Africa is an ongoing topic, it has been a topic of
discussion since the early 1980s to date. In accordance to many authors,
unemployment in South Africa results from the context of high population growth and
large net inflows into the labour market. “The labour market expands on average by
about 600 000 net new entrants each year. By 2001, the strict and broad
unemployment rates had risen to 30 per cent and 41 per cent respectively. Even by
the strict definition, unemployed continue to rise by about two or three per cent each
year” (Altman n.d.). In the post-1994 the South African country had hopes of tackling
the issue of unemployment and achieving economic growth as a result of supportive
economic policies that were aimed at creating jobs and eradicating poverty levels and
inequality. However, such did not happen as improvements on the employment front
received less attention from the government. Today, South Africa is facing the
challenge of shifting the state of its economy to a technologically, advanced future and
doing so in a manner that ensures that most marginalised communities are also
shifting to sustainable economic growth and development (Burger & Woodland, citied
by Ferreira & Rossouw 2016).
However, the shift is derailed by high population growth in the country, which leads to
a high demand of job opportunities which are already scarce in the country and some
communities not being able to develop. As a result of this, individuals have to make
ends meet on their own by engaging in activities that can improve their livelihoods.
This paper focuses on a discussion about the activities that individuals in the
community of Masobye formally known as ‘Pankop’ are engaged in as a way of
improving their livelihoods, what the people in the community are doing to reverse
unemployment and how Dr J.S Moroka Municipality can help reduce unemployment
and grow the economy at the same time.
2 Activities in the community of Masobye
Most individuals in the community of Masobye are operating small businesses as a
way of improving their livelihoods. The most common small businesses in the
community are tuck shops, fast foods and car washes. Some operate hair salons from
their homes which makes their lives easy because they do not have to pay rent, all
their earnings go towards improving their lives. There are also people who sell snacks
at schools during break, the heads of the schools in Masobye allow local community
members to sell in their respective schools as a way of contributing towards rural
development. However, a maximum of only five individuals are allowed to sell in each
school, this ensures income and lessens competition between the individuals. For one
to sell in a school, they have to receive permit from the head of the school.
There are individuals who are into crop production, with this kind of production they
are able to provide food for their families and raw materials for agro-based industries
in the cities. Most people are into crop production because it is their traditional
occupation and the village has enough land to accommodate this activity. Others
2
