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Origins of this analysis in ?the Second Economy Strategy Project,' an initiative of the Presidency based in TIPS.Second Economy Strategy Framework approved by Cabinet in January 2009.The concept of two economies resonated - and became widely used - because it seemed to explain SA's stark disparit
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1. Structural inequality and its impact on economic opportunities on the margins Part 1 Kate Philip Trade and Industrial Policy Strategies (TIPS) Presentation to the Portfolio Committee: Rural Development and Land Affairs 9/11/2011
2. Origins of this analysis in ‘the Second Economy Strategy Project,’ an initiative of the Presidency based in TIPS.
Second Economy Strategy Framework approved by Cabinet in January 2009.
The concept of two economies resonated - and became widely used - because it seemed to explain SA’s stark disparities;
But in the process, it masked the extent to which inequality of outcomes are consequences of common sets of processes.
The ‘second economy’ is not poor and undeveloped because it is disconnected; instead, it is the terms of the connection that are the problem:
The 1913 Land Act was not about keeping the bantustans ‘separate’ or disconnected; it was about forcing black people off the land and into urban labour markets: it was about ‘linking’ them to the core economy on disadvantagous terms. (And it worked).
The issue is one of power and distribution: manifest as inequality.
Despite the concept fading from fashion, much development strategy is still implicitly based on the notion of ‘two economies.’
Background: The ‘second economy’ debate
3. In SA, structural inequality has its roots in key legacies of apartheid (and pre-apartheid policies also):
The structure of the core economy: highly concentrated, increased vertical integration.
The legacy of spatial inequality: bantustans and apartheid cities:
These add huge economic costs, borne disproportionately by the poor.
The history of inequality in human development and human capital formation.
