e-Naledi+V2+Number+10,+09+October+2006

e-NALEDI 09 October 2006 Vol. 2 Number. 10
 * National Labour and Economic Development Institute**

//Research for the working class// e-NALEDI is a monthly free to publish newsletter that provides latest NALEDI’S research reports and core projects, provides expert opinion and analysis of current issues, and highlights labour news and forthcoming events.


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 * PUBLICATIONS AND PROJECTS*****

Equity and efficiency in the restructuring of South Africa's electricity industry

//By Ebrahim- Khalil Hassen// The aim of the paper is to assess the restructuring changes that have occurred and are being undertaken from the vantage point of the role of electricity in government’s attempts to eradicate poverty. This paper assesses the restructuring proposals in the electricity sector and argues that restructuring initiatives being implemented will have significant and differentiated distributional consequences. The paper concludes that the winners in the restructuring process are likely to be large energy users, such as mines and aluminium smelters, and private contractors in the generation sector. At the same time, household electricity prices will increase and that current policy stances do not adequately link electricity pricing to job creation in South Africa.

To this end, the paper starts with a conceptual discussion on restructuring models for electricity advanced by proponents of privatisation, and argues that South Africa is going the route of a ‘managed liberalisation’. Next, a critical assessment of the electricity supply industry and its sub-sectors (viz. generation, transmission and distribution) is undertaken, together with a summary of the restructuring proposals. This is followed by an assessment of the drivers of restructuring process. Finally, the impacts –both current and future impacts – are discussed.

The arguments developed thus seek to locate electricity restructuring in the wider context of a developmental strategy for South Africa. This is not simply a narrow discussion on ownership and privatisation in the electricity sector, but rather a focused discussion on the distributional impacts of restructuring in the South African electricity industry. The reason for focusing the discussion in this manner is that the African National Congress (ANC) has indicated that ‘Eskom //(the dominant public utility in the electricity industry)// core activities will not be privatised. (//Business Day,// 11 March 2004).However, as will be shown in the discussion this does not mean that there will be no private sector participation in the industry, but that such participation will occur in the context of the state playing a dominant role. The significant policy question that arises is whether the state emphasises equity, or efficiency, or alternatively seeks a complimentary relationship between the two objectives.

Download full version here: [|http://www.naledi.org.za//pubs/2006/electricity_restructuring.pdf]

NALEDI
This edition of the policy bulletin summarises two reports: the survey of workers conducted towards the end of 2005 and the state of COSATU’s report. With these two initiatives NALEDI is breaking new ground to become a centre of expertise on the labour movement. The survey in terms of number of people sampled is unprecedented in the history of South Africa, particularly the number of people sampled. The bulletin also carries a report that explores issues of trends of employment in South Africa while taking a look at the impact of government’s policies such as the Accelerated and shared Growth Initiative of South Africa (ASGISA) and its strategies to alleviate poverty. It also reports on the challenges that are faced by the African unions in the steel industry. This report looks at trends of regulating the steel industry in Africa. NALEDI's research into the functioning of hospitals has been a hot issue for government, the trade union movement, the health care workers and the public. It came up in the President's State of the Nation address to Parliament this year; it has been discussed between public services minister Geraldine Frazer-Moleketi and trade unionists and in this issue we take a look at progress made.

Download full version here: [|http://www.naledi.org.za//pbull/vol8no1/policy_bulletin_vol8.PDF]

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 * BOOK REVIEWS*****


 * Season of Hope: Economic Reform under Mandela and Mbeki**
 * By Alan Hirsch**
 * //Reviewed by Ebrahim-Khalil Hassen//**

The book has a familiar structure starting out with a discussion of the economic legacy of apartheid, meandering through the ANC’s economic policies in exile, outlining the emergence of GEAR, and asking new questions, especially on BEE. Thus the book offers a historical account of the evolution of ANC economic policy, and its economic policy after the advent of democracy. In structure it is similar to books written by Dale Mckinley and William Mervin Gumede. Unlike the Dale McKinley who argues that the ANC has always been a bourgeoisie party, or Gamete’s lament on the ANC moving away from its principles, this book offers a spirited defence of economic policies undertaken since 1994, with careful citing of sources and reasoned arguments. In fact, reading the three books simultaneously will offer very varied, insightful and demanding interpretations of our transition. In this sense, Hirsch’s book is a must for anyone serious about understanding the debates on economic policies. Download complete review here: [|http://www.naledi.org.za//pubs/2006/Seaeason_of_Hope.PDF]


 * Transition From Below – Forging Trade Unionism and Workplace Change in South Africa**
 * By Karl Von Holdt**
 * //Reviewed by Gwede Mantashe//**

This book develops the concept of social movement unionism by linking it to activism at a time when shop stewards were highly active in their communities and in the UDF (United Democratic Front) structures. The book highlights the tensions and inherent contradictions that go with activism. Activism extends the influence of the union to the community. It gives the individual activists mobility and choices. At the same time it brings about suspicion among workers about the shopstewards’ commitment and sincerity in servicing workers’ grievances. Copies of this book are available at NALEDI @ R130 per copy. Download complete review here: http://www.naledi.org.za/pubs/2006/Gwede_review.pdf


 * ONLINE RESOURCES*****
 * The effect of China and India's growth and trade liberalisation on poverty in Africa**
 * Impacts of economic growth in India and China on levels of poverty in sub-Saharan Africa**
 * //Edwards, C.; Jenkins, R.; DFID; ODG DEV / Southern African Regional Poverty Network (SARPN), 2005//**

Despite the fact that trade between China, India (Asian Drivers) and Africa has grown significantly since 1990, it is only recently that attention has been paid to their impact on the countries of Sub-Saharan Africa. Additionally, China and India have also emerged as sources of Foreign Direct Investment (FDI). This paper therefore focuses on the impacts that these links have on poverty in sub Saharan Africa. Through analyzing 21 African countries (accounting for four-fifths of the total population of Sub-Saharan Africa) it aims to set the context for the poverty implications. The authors argue that the likely impact of trade changes on the poor will partially depend on the types of goods involved and the conditions under which they are produced. Consequently they distinguish between labour-intensive agricultural products; other agricultural products; forestry; mining and petroleum; labour-intensive manufactures; and other manufactures. Download complete version here: http://www.sarpn.org.za/documents/d0001312/P1555-China_trade_Report_May2005.pdf //Source: [|**http://www.sarpn.org.za**]//


 * Trade restrictions are severely hindering food trade to some of the food deficit countries**
 * //Technical Steering Committee (TSC) of the Cross Border Food Trade Monitoring Initiative / Southern African Regional Poverty Network (SARPN), 2004//**
 * //Technical Steering Committee (TSC) of the Cross Border Food Trade Monitoring Initiative / Southern African Regional Poverty Network (SARPN), 2004//**

This brief highlights the issue of trade barriers in southern Africa and its impact on informal cross boarder trade in the region. The report shows that while there may be surpluses in neighboring countries, food deficit countries such as Zimbabwe continue to experience a high grain prices due to import/export restrictions. The report highlights several points, including the following: - studies conducted in October 2004 show that trade barriers between Zimbabwe and her neighbours were severely hampering informal food trade - even though Zambia has no restrictions on grain exports, lower prices and a significant maize surplus, trade volumes remain low. An increase was however observed in October. Relaxing the trade restrictions would allow Zimbabwe to access some of the surplus maize in Zambia through informal cross border trade - the food deficit countries of Malawi and Zimbabwe continue to dominate the informal maize imports. It is very likely that Zambia is going to experience an increase in the volume of informal maize imports by Zimbabwe in the next few months. This is however dependent on whether or not Zimbabwe imposes any further restrictions - nearly 850 Metric Tons of rice were traded between the countries during October 2004. The Democratic Republic of Congo imports the most amount of rice, with Zambia being the main supplier - the DRC remains the major importer of beans in the cross border beans trade accounting for 58% of the trade followed by Malawi at 32% and Zambia at 6 %. Download complete version here: http://www.sarpn.org.za/documents/d0001023/P1140-Cross_Border_Trade_Bulletin-Oct_04.pdf //Source: [|**http://www.sarpn.org.za**]//


 * Policy challenges in integrating port cities into global supply chains - evidence from Durban**
 * //Hall, P.V.; Robbins, G. / School of Development Studies (SDS), University of Kwazulu-Natal, Durban, South Africa, 2006//**
 * //Hall, P.V.; Robbins, G. / School of Development Studies (SDS), University of Kwazulu-Natal, Durban, South Africa, 2006//**

Using a case study of the attempts since 1994 to insert Durban into global automotive supply chains, this working paper examines current theory on the process of insertion, integration and dominance of actors into global supply chains. The paper consists of a short section which presents the conceptual framework and key concepts used in the paper, highlighting the policy challenges raised for ports and port-cities by introducing scale into the supply chain perspective. The bulk of the paper is devoted to the second section which contains the case study and nests the analysis of automobile imports and exports moving through the port of Durban within the wider port-city and national development context. Download full version here: http://www.sds.ukzn.ac.za/files/WP46-WEB.pdf //Source: [|**http://www.eldis.org**]//


 * EVENTS*****
 * Poverty Conference (17 October 2006)**

SANGONeT and the National Development Agency (NDA) will host a national conference on 17 October 2006 in Johannesburg to coincide with the International Day for the Eradication of Poverty. The international theme for the 2006 Day is "Working Together out of Poverty". The objectives of the forthcoming conference are as follow: - Reflect on the scale and manifestation of poverty in South Africa - Critique the impact and success of poverty eradication strategies - Assess the role of the National Development Agency (NDA) in coordinating national poverty eradication efforts - Highlight the role of civil society in poverty eradication - Consider the formation of partnerships among key stakeholders as a strategic approach to meeting South Africa´s MDG targets as well as eradicating poverty Contacts: Cathy Niken at SANGONeT before 16 October 2006: Tel: (011) 403-4935 / E-mail: cathy@sangonet.org.za //Source: [|**http://www.sangonet.org.za**]// Ditsela Educators Conference and 10th Anniversary Celebration (27-30 November 2006) Venue: Birchwood Executive Hotel & Conference Centre 120 North Rand Road, Bartlett, Boksburg, 1627, (Johannesburg) Contacts: Telephone: (011) 403 2155 E-mail: info@ditsela.org.za