Poverty Alleviation Interventions in the Public

Service

Presentation to the Portfolio Committee

13 August 2003

Cape Town

Presentation Outline

Introduction Process followed The basis for Poverty Alleviation Programme Angles of delivery - infrastructure,

services and income generation Challenges of implementation of the

programme DPSA’s role in poverty alleviation Conclusion

Introduction

Portfolio Committee identified theme of poverty alleviation interventions in Public Service

DPSA was initially invited to make presentation on poverty alleviation initiatives in the public service

DPSA requested the focus of its presentation to be on “support to service delivery institutions” since DPSA is not directly involved in implementation of poverty alleviation programme

Portfolio Committee requested DPSA again to make a presentation on “Poverty Alleviation interventions in the Public Service”

Process followed

Since DPSA is not directly involved in poverty alleviation programme, the department had to gather information from the departments involved

Information gathering proved difficult due to the fact that no work attempt has been done before to provide a comprehensive report on poverty alleviation interventions as a whole, it therefore meant that departments must be contacted individually

Given the time constraints DPSA contacted the National Treasury, the Department of Health, Department of Public Works and Department of Social Development

Process followed

Some departments expressed concern regarding their programmes being presented by DPSA as it is not directly involved in this work

DPSA’s involvement is largely around the provision of support to institutions (to build their capacity to ensure that they are able to deliver as expected)

The DPSA is therefore involved in a number of initiatives aimed at strengthening service delivery institutions including those that implement poverty alleviation programmes (e.g through the Integrated Provincial Support Programme - IPSP)

The basis for poverty alleviation

Poverty alleviation project are many and varied and are implemented by different departments through different projects

Implementation takes place at Provincial and Local government level

The basis for poverty alleviation

Poverty is distributed unevenly among the nine provinces of the country Eastern Cape, the Northern Province and more

recently , the Free State have by far the highest poverty rate

72% of poor people in SA live in rural areas 70% of rural people are poor ( DSD business plan

for poverty relief fund) Poverty is the greatest challenge to South Africa

with six out of ten children living in poverty, high unemployment rates

The basis for poverty alleviation

Enshrined in the constitution, Section 27, the State obliged to take legislative and other measures to ensure that all citizens have access to health care, food, water and social security

Poverty alleviation included in other policy frameworks like Reconstruction and Development Programme and Growth, Employment and Redistribution Strategy

Responding to the President’s call - ‘to push back the frontiers of poverty’ “Social safety nets” put in place

In dealing with poverty government made the poverty relief fund available, to deal with different types of poverty

The basis for poverty alleviation

Information received shows that poverty alleviation seeks to address the following

Income poverty - living below the estimated poverty line - in 1999 33% of the population were living below poverty line, and 45% of female headed households live below poverty line

services poverty - no access to social services including education, health, water, sanitation and electrification

infrastructure poverty - lack of asset capital which relates to land, housing, roads, community halls, parks

The basis for poverty alleviation

There has been an increase in poverty relief fund, with the highest allocation in 2003 to Water Affairs, Education and Public Works

Other poverty alleviation interventions are not supported through the poverty relief fund like the social grants which is a core function of the department of Social Development

Poverty Alleviation allocations

ALLOCATIONS BY DEPARTMENT 1997/98 TO 2003/04 in R millions DEPARMENT 1997/98 1998/99 19999/00 2000/01 2001/02 2002/03 2003/04 Agriculture - 25 20 25 35 35 50 DACST - - - 30 55 48 64 Education - - - - 73 74 114 DEAT - - 70 99 175 240 300 Health 15 28 23 7 10 12 15 Housing 75 - 75 75 - Labour - - 50 3.4 10 - - DPLG - - 45 78 79 102 120 Public Works 85 374 377 249 274 274 274 Social Dev. 50 203 40 120 50 100 100 Sport & Recr. - - - - 40 90 129.5 Transport - - 100 - 94 100 100 DWAF 150 270 200 351 380 350 330

TOTAL 300 800 1000 972.4 1350 1500 1567.5

Angles of delivery - infrastructure poverty

The angles of delivery are not mutually exclusive, for instance, when dealing with the infrastructure poverty, poverty is dealt with in two ways - which is in terms of (a) assets be it clinics or community halls and (b) income by creating jobs for the community - For instance through the Community Based Public Works Programme (CBPWP)

To date CBPWP has managed to create 124 808 jobs (temporary and permanent)

Infrastructure poverty alleviation relates to both development of new infrastructure and rehabilitation of existing infrastructure

Angles of delivery - services poverty

Provision of water and sanitation, health care services, waste removal

Water - critical in implementation of the household food security projects which also addresses the level of nutrition, provision of clean water and sanitation also protects against outbreak of diseases like cholera

Provision of primary health care is possible when the infrastructure such as clinics are available

Nutrition - the primary school feeding scheme

Angles of delivery – income poverty

Job creation through income generating activities like farming (food gardens),sewing,arts and craft

Selling of Arts and Crafts - access to markets, Emerging farmer participation - a partnership between

Agriculture, Land Affairs,Water Affairs and Public works -this will work on asset poverty by providing assets like land - to enable people to make income

The Department of Social Development has also started an Integrated Food Security and Nutrition Programme - which is food parcels costing R300, aimed at households who depend on remittances and fall out of the formal safety net system of Social Security- about R230m was allocated for 2002/2003 financial year

Angles of delivery – income poverty A safety net for those experiencing temporary

hardship or loss of income Alleviating poverty through provision of Social grants

to the most vulnerable groups ( disabled, elderly, children) and social insurance like UIF, RAF

Social grants have potential to reduce number of individuals in poverty from 42% to 24%

Increased processing of applications for grants registration - Improved social security system - training of officials in administration, designed and implemented a national standard application form, processing reduced to a national average of 54 days.

Expenditure on types of projects

Analysis of expenditure 2000/01 revealed:

56 % of projects infrastructure related regraveling of roads, school buildings, bridges, clinic

upgrading, etc – thus contributing to job creation and income generation

27 % of projects are services to the communities waste removal, soil conservation, tourism, etc

17 % of projects focus on income generating activities in communities

tourism related – food service points, crafts,

Challenges of implementation of the programme - internal

need for better coordination among roleplayers(in particular health, land/agriculture, labour, dti etc) and multidisciplinary (technical/business, developmental etc) approach Particularly between spheres of government as well Lack of coordination has resulted in most instances in

overlapping, duplication and moving outside area of expertise

increased effectiveness of needs analysis – understanding target groups better

allocations per one financial year compromises the long term objectives and developmental purpose of most project – 3yr or over should allow for the systematic establishment of a sound foundation within any given target group

Challenges of implementation of the programme - internal

lack of institutional capacity – Such as skilled developmental professionals, project

management,etc resulting in outsourcing - which increases administrative costs and therefore divert money from the poor

Inadequate resources such as transport suitable to rural conditions (e.g. 4X4s) , offices etc

underspending in the first three years of NT allocations only 50% as

spent in the each of the financial years this has however improved – 93% of allocations spent

Late finalisation of allocations to departments Lack of proper implementation plans Cumbersome disbursement mechanisms The requirement of a longer planning cycle viz 10months ,

especially departments engaged in infrastructure provision

Challenges of implementation of the programme - external

ineffective community participation / ownership and targeting thus projects not being the choice of community. Therefore need for improved needs analysis mechanisms

lack of capacity and support/resources local and community level Lack of adequate business management, project

management skills coupled among beneficiaries with cumbersome disbursement mechanism - resulting in underspending

Lack of access to banks rural communities are highly dispersed – difficulty in

accessing for support low levels of literacy and numeracy skills

Challenges of implementation of the programme - external

need for better comprehensive and systematic impact / outcomes assessment mechanism - to also be able to make informed / objective intervention

due to these factors the interventions have become socio-economically unsustainable

Characteristics of successful projects

committed, enthusiastic and active officials and communities (ownership , participation)

good project management skills projects chosen fall directly within the ambit of

core departmental activities good co-operation between different spheres of

government – national, provincial and local project proposals are submitted by communities

themselves – reflecting their needs communities have invested their own resources

in the projects

DPSA’ role in poverty alleviation

government relies on its network of institutions to deliver on its priorities like poverty alleviation

even in instances where outside parties are partnered with to deliver services, government institutions still have to play a crucial role in contract management, oversight and overall accountability

thus recognise that in moving from the intents, priorities and commitments to action and practice, capable institutions are required

DPSA’ role in poverty alleviation

DPSA has generated a strategy for institutional capacity and this is already informing the support interventions the Department has embarked on

The strategy has essentially emerged from DPSA’s experience in this area and is thus informed by the Department’s previous efforts of enhancing the machinery of government towards improved service delivery

DPSA’ role in poverty alleviation

Various service delivery analyses indicate that when institutions have capacity weaknesses, these often relate to the following(individually but often in combination):

Management Capacity Human Resource and Change Management Service Delivery Planning and Execution Monitoring and Reporting

DPSA’ role in poverty alleviation

Through the Provincial Integrated Provincial Support Programme the DPSA has supported the following projects which were aimed at alleviating poverty

Supporting acceleration of social grants registrations (initial emphasis on Child Support grants) in the E Cape through alternative institutional arrangements(mobile units).3

Supporting establishment of a Social Grants Agency to ensure effective and efficient grant processing

Support improved Social Development Services through a Community Service on Wheels Facility (to start in Peddie, Cradock, and Mt Frere)

DPSA’ role in poverty alleviation

Mobile SAPS facility in Limpopo, already serving a number of communities in the former Venda and Lebowa areas

Improved institutional arrangements and capacity at the Basotho Cultural Village (Thabo Mofutsanyane) so that disadvantaged craftsmen/women and artists can be supported Includes establishment of a PPP to establish a Grass

Product Factory whereby locals would be employed to produce basic grass products which would then be purchased by the Factory

DPSA’ role in poverty alleviation

Supporting turn around of selected hospitals in Limpopo towards better service delivery (Maphuta Malatjie and Letaba Hospitals).

Conclusion

The above initiatives indicate some of the projects that DPSA is involved in that contribute to the idea of enhancing institutional capacity and eventually alleviate poverty

The initiatives contribute Supporting the institutions directly, or indirectly by providing enabling frameworks and platforms through which institutions can function better

A network of capable institutions is key to giving effect to government’s commitment to creating a better life for all.

The challenge remains overall Monitoring and Evaluation , the National Treasury says they have started on the process