Vol 3 No 2 June 2000

CONTENTS

 

but is it privatisation

by Ebrahim-Khalil Hassen

'A veil over our intelligence'. This is how a senior unionist describes the iGoli 2002 plan. The Johannesburg Metropolitan Council (JMC) maintains that public-private partnerships (PPPs) - which are the plan's preferred route - are not privatisation, but a way to reorganise and improve service delivery.

Rationale

The plan has drawn lavish praise from business and government. Given the city's financial and institutional problems, this is understandable. Indeed, few would argue that the Johannesburg Metro does not need a quick and thorough transformation. Rising debt, ineffective delivery systems and a rule-driven culture are all features of the Metro. In short, it is an example of all that can go wrong in a municipality.

The plan seeks to solve these problems by changing the institutional form of the Metro and by increasing the capital budget. The administrative changes are many and varied. The logic behind them is, however, simple. 'Non-core' activities, which include running the airports and stadiums, will be privatised. Depending on how citizens pay for services, 'core' activities will be turned either into public utilities or into corporatised entities. Water and electricity - called 'trading services' - are individually billed and will be run by a public utility. Other services like stormwater drainage are 'shared services'. They will be run by a corporatised entity.

The JMC hopes that these changes will result in an enlarged capital budget by the 2002 financial year. Development will, hopefully follow. As a council official puts it: 'Let's first get the systems right, rather than develop grandiose plans'.

Eroding democracy

The obvious omissions in the plan are that it does not specify delivery targets, nor does it explicitly propose ways of cross-subsidising poorer citizens. It also signals the council's declining influence over service delivery and, consequently, less democratic space. In American cities, closed and informal pacts between the private sector and government officials have eroded local democracy. Alternatives to this model do exist, such as participatory budgeting in Porto Alerge (see page 7).

Privatisation?

The plan poses significant challenges to trade unions.

PPPs are transactionally different from privatisation. With privatisation, government transfers ownership of a service to the private sector and no longer plays any role in the enterprise. With PPP's the government does not transfer ownership. Instead, the private sector manages and operates the enterprise.

International experience shows, however, that PPPs are often a stepping stone to full privatisation. They provide the institutional form for increased private ownership. Even public utilities - which are wholly owned by local governments - are not immune. Sub-contracting arrangements open the door to further private involvement.

Less contentious than definitional issues is the role of PPPs in extending service delivery. In Buenos Aires, private contractors have simply reneged on a commitment to extend services. The local council lacks the regulatory capacity to enforce the contract. Similar experiences have occurred in other developing countries.

Johannesburg could craft a different development path to using PPPs. As a starting point, stepped tariffs for water and electricity would allow for redistribution between the rich and poor. Work reorganisation and locating staff 'on the ground' would increase efficiency and transparency. Experiences in Tilburg (Holland) indicate that these proposals are a practical alternative.

Union challenges

The experiment in the large and politically powerful JMC raises questions for trade unions and broader civil society:

The first is that the unions have had little success in stopping unilateral restructuring. The City Manager, Ketso Gordhan, has indicated that, despite the dispute between the council and the unions, 40% of the plan has been implemented. Unilateral implementation is not new, but it does highlight a central union dilemma: should they be cutting the best deals for members even though they disagree with the plans, or should they continue to fight even though they don't have the leverage to stop the plan? Alternatively, are there strategies which would increase union influence over restructuring?

The local government transformation process also means that unions will need to search for new forms of security for workers. These could include a proper consultation process and improved career paths. In the iGoli 2002 experience, the council offered a no-retrenchment guarantee as a sweetener and also committed itself to transferring workers to the private sector employer with full benefits. Unfortunately, the process has been so fractious that these new forms of security have not yet been tested.

Finally, the unions' concerns about the capacity of council to manage complex contracts are justified. The JMC sold metro-gas to a private consortium, but faced a major hitch when it was discovered that the gas station is a national monument. Another example, is the 'lease-buy back' agreement for the Metro head office in Braamfontein which could not be sold as it is still bonded to another party. These blunders require even the most ardent supporters of privatisation to rethink their positions.

New directions

The iGoli 2002 plan looks set for a rocky implementation. Trade unions are likely to face similar restructuring initiatives across the country. At this point in time, a series of processes are being undertaken to reach an agreement between the unions and council. In the meantime, the unions continue to mobilise and the council continues to implement. It is possible that the real veil over our intelligence lies in not recognising that conflict is not a condition for rapid and democratic transformation.

Ebrahim-Khalil Hassen works on public sector issues at NALEDI.

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Realities

'Accelerated service delivery' is the new theme of government, and rightly so. Millions of people have been waiting patiently for real service delivery to reach them.

With this in mind, government has unveiled draft legislation for municipal partnerships.

The draft legislation favours service delivery partnerships between local governments and the private sector. Can the profit motive accompany service delivery to very poor communities, or will it lead to a 'two-tier' service delivery model of the haves and the have-nots? There are those who argue that private sector efficiency will mean cost savings and lower prices. They also maintain that local governments can bind private sector partners contractually to deliver to all. However, weak local government regulatory capacity does not inspire confidence.

The pricing of services also threatens to undermine all forms of delivery. In some water projects, consumption has fallen due to high cost-recovery prices. Many poor people are unable to afford safe water and are returning to unsafe water sources - undermining the very reason for 'accelerated service delivery'! Falling consumption then raises the cost per (remaining) user, leading to a vicious cycle of exclusion from services.

Behind this crisis, intergovernmental transfers to local governments have declined by 85% since 1991. GEAR's failure to create jobs also means that poverty among municipal residents is increasing, reducing the revenue potential of local authorities. Simply put, the fat-reducing goal of South Africa's conservative macro-economic policies is now destroying the muscle of social transformation!

Ravi Naidoo, Director, NALEDI

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Redrawing the map

by Patrick Bond

In early February, the Queenstown municipality cut service-charges rebates to households earning less than R1 300 per month from 40% to 25%. According to the Daily Dispatch, this was due to 'a decrease in intergovernmental grants and subsidies to the council for the poor'. As cutoffs of water and electricity commenced, SAMWU's Thobile Maso railed against the 'merciless and offensive plan to target the very poorest families.'

The Council replied that the 40% rebate cost R3,9 million a month, while Pretoria and Bisho together only allocated R3 million. Compared to most Eastern Cape municipalities, Queenstown is relatively wealthy.

This is only one instance of a municipal governance crisis momentarily disguised by technical jargon like 'fiscal decentralisation', 'demarcation', the 'equitable share' and 'indigence grants'. All these buzzwords represent policy initiatives that have emerged in response to the worst financial problems that South African local government has ever faced.

Of the 843 municipalities today, fewer than 300 will survive a shakeout later this year. The losers have been judged 'unlivable', which simply means that they are not financially self-sufficient under the present conditions of economic stagnation, growing income inequality and fiscal squeeze.

Gear's failure is partly responsible. Like the anticipated 400 000 new jobs each year and 6% sustainable annual growth by 2000, the 100 000 new municipal-level jobs associated with new infrastructure investment promised by Gear did not materialise.

Instead, the Finance Ministry's fiscal squeeze has been brutal. According to the Financial and Fiscal Commission, the size of the 'intergovernmental grant' from central to local levels recently fell to a point 85% lower in real terms than in 1991.

Impact

What impact will municipality-shrinkage have on local democracy? The geographical distance between small-town residents and their elected representatives will grow dramatically. In many areas, what was once a one kilometre trip to visit the town council to conduct basic business may now be 100 km.

Most worrisome, the strategy of combining several impoverished municipalities with one another, as is planned for ex-homeland areas, does not create one financially viable town, but rather the reverse.

Is strangling local government necessary because no other funds are available? Over the 1994-2000 period, the corporate tax rate was slashed by nearly 40%, and repayment of illegitimate apartheid debt became the government's second-largest expenditure.

Does the private sector offer a way out? The mantra of PPPs is, in reality, completely unlivable in a context of mass municipal destitution. The Demarcation Board conceded in February that only 100 of the 300 new metropolitan, district and municipal entities could offer sufficient profits to attract private sector partners.

Is there an alternative to providing local government services based more on community and worker control, with sufficient resources to prevent today's municipal services cuts? Our modeling of the costs of a nationwide rollout of adequate infrastructure suggests a decade-long cost of R12 billion per annum. If recurrent (operating and maintenance) expenses associated with consumption are paid for through cross-subsidisation by the larger consumers (wealthy households, big corporations), only an additional 10% expenditure would be needed beyond what is presently planned to finance the added capital costs for water, sanitation, electricity, tarred roads and stormwater drainage.

In addition to the strong economic multiplier effect of investing in labour-intensive infrastructure, there are billions of rands to be gained in cost savings - from foregone public health expenses, environmental clean-up, and improvements in women's socio-economic status that are presently the side-effects of inadequate municipal services.

The time is ripe, with the rise of protests against World Bank-designed neoliberal 'development' here and abroad, to reinsert the demands of communities and workers. The numbers add up in their favour.

Source: Local Government in a system of intergovernmental fiscal relations in South Africa, Discussion Document, 1997, Financial and Fiscal Commission

Patrick Bond is an associate professor at the Wits PMDM. He writes in his personal capacity.

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Lessons from Hermanus

by Ronnie Kasrils

The water management practices of many local authorities still subsidise the rich at the expense of investing in the poor - and at the expense of the environment. Such practices inhibit efforts to bring about equity, efficiency and sustainability in the supply and use of water.

Of course, there are exceptions. One of the most celebrated is the initiative in Hermanus, near Cape Town.

In 1996, Hermanus recognized that it has a water management problem. A core consideration in water management is the peak demand for water and the capacity to store, treat and deliver water to meet the demand.

On the advice of the then National Water Conservation Campaign, Hermanus embarked on an integrated plan for water management. Following discussions held in July 1996, the plan was devised and implemented by October 1996. It worked on a combination of 'carrots' and 'sticks'. The incentives included informative billing, intense communication, education through water-wise gardening, a revolutionary approach to pre-payment metering, and water audits at schools, Disincentives were applied through tariffs and regulations.

The initial results were exceptional. There was a 30% reduction in peak-demand for water (per stand), but a 20% increase in revenue from water sales. This was earmarked to promote water security in the town (for example, through joint funding of a labour-intensive Working for Water project to clear water-consumptive invading alien plants).

Equally remarkable was that a random survey revealed a 96% level of support among residents for the programme. The programme gave Hermanus some breathing-space in terms of the expense of augmenting its water supply. It has also made an important contribution to a 'sense of community' in what is a fairly typical remnant of apartheid planning. It has - after Durban, with its zero tariff for the first six kilolitres per stand per month - the most socially just water tariffs in the country. The poor can now afford water. In addition, they have come up with innovative options that they offer customers in terms of supply and have an exemplary once-off programme to fix leaks, thereby making sure that users are paying for water they actually use. This has led to a 10% reduction in water use and the best levels of payment for water (93%) in the country.

Tariffs

Water tariffs have been a key factor in the success of the programme.

The tariffs are structured on the principle that those who use so much that new sources of water may need to be found should pay more towards the costs of providing water.

Hermanus has an 11-point escalating block-rate tariff scale, starting at R0,30 per kilolitre and peaking at R10,00 per kilolitre at levels of over 100 kilolitres per month. Regrettably, the town has not seen fit to increase the middle and upper end of the tariff scale over the three-and-a-half years in which the programme has run (to keep pace with inflationary costs). Nor have they yet decided on whether to reduce the bottom block (0-5 kilolitres) to zero charge for all users, as we have advocated. This has certainly reduced the impact of the tariff scale.

Hermanus has also experimented with a tariff scale that is fair, yet ultimately supportive, for commercial users of water. This important work needs more development.

The communication programme - a second vital component of the programme - has been allowed to diminish. Other components of the integrated plan, such as the retrofitting of households with water-saving devices, have yet to be implemented. Nor has the fixing of leaks, including on the residents' side of the meters, been given full attention.

The way forward

The efforts of Hermanus and Durban have helped to show us what it possible. Although conditions in local authorities vary considerably, it is my belief that we can develop a set of principles that will guide our actions in most circumstances.

In the past two years, the Department has developed a Water Conservation and Water Demand Management Strategy for Water Service Industries and Local Authorities, as part of the National Water Resource Strategy. It is currently investigating practical ways in which all local authorities may be able to give access to a basic level of water free of charge (and thereafter ensure that users pay appropriate prices for their levels of use).

As with the development and implementation of any strategy, there are many challenges. But this is surely an initiative that is in all of our enlightened self-interests. We can, and must, make it work.

Ronnie Kasrils is the Minister of Water Affairs and Forestry.

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Can PPPs deliver?

by Thami Ngqungwana

Municipalities are confronted by serious constraints. These include:

  • lack of capacity and experience;
  • the failure of communities to pay for services;
  • the poor quality and lack of sustainability for some of the projects.

The new demarcation of 1995 also expanded the responsibilities of municipalities without increasing their budgets.

Faced with these constraints, government is determined to implement the municipal service partnership as an alternative form of service delivery. This would see the government becoming the ensurer of service delivery, rather than directly providing services.

Government and others argue that the private sector is better able to generate capital for municipalities and bring in new skills. They also say that the public sector is incapable of delivering alone, and that partnerships would assist in releasing resources from the private sector to implement major development objectives. Privatisation, it is argued, will lead to the reduction of costs, improved delivery, a stimulus to the private sector and better managerial practices associated with private corporations.

However there is a strong likelihood that the profit motive will lead to retrenchments. There is also a danger that the poor will not be serviced as well as high-income earners. South Africa could end up consolidating a 'two-tier' service delivery model, the 'haves' and the 'have-nots'.

The municipalities of Nelspruit and Dolphin Coast recently adopted PPPs. Nelspruit went this route because the municipal capital budget is R30 million, compared to the R250 million it needs for infrastructure expenditure following the expansion of its service jurisdiction.

Both municipalities implemented a concession system. Since the projects are new, it is difficult to assess whether or not they have been successful. While workers' jobs have been secured, the credibility of the companies they have entered into partnership with appears to be in question. Giving such companies a 30 year contract is not a good idea.

Alternatives

The South African Municipal Workers' Union (SAMWU) believes that it is possible to develop a public sector option for service delivery. This would involve expanding the capacity of existing public and parastatal structures to meet the basic needs of all South Africans in a way that is equitable, effective and affordable both for the broad community as well as municipal employees.

One alternative is public-public partnerships, which would involve different entities and levels of government in addressing local government problems. The ODI water project in Northwest is a good example of such a project. Previously, the situation was chaotic. Today people are paying for services and feel a sense of ownership of the project.

Public-community partnerships are a further alternative. NGOs and CBOs have proven to be effective in transferring skills and instilling a spirit of ownership. In general, they provide cheaper services than the private sector. Kwazulu-Natal and Northern Province have rich experiences in this field.

Thami Ngqungwana is a researcher at NALEDI.

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Defining PPPs

PPPs are defined as a contractual agreement between government and the private sector to deliver a service to the community. These contracts can take a number of different forms:

  • A service contract, whereby an agreed amount is paid to a private company for a specific service. The contract normally lasts for 1-5 years.
  • A management contract, whereby a private company is paid a regular amount which is not dependent on tariffs or fees, for the management and operations of a specific municipal works or service. This usually lasts for 5-10 years.
  • In terms of a lease contract, a private company leases assets from the municipality. The municipality retains ownership of assets and income generated through tariffs charged to users. This is a long-term contract of 10-15 years.
  • With concessions, the private company charges tariffs and connection fees. This is usually long-term (15-30 years).
  • The 'build, operate, own, transfer' contract is a variation of the concession or management contract (this is a long-term contract of 25 years or more).

Defining PPPs

PPPs are defined as a contractual agreement between government and the private sector to deliver a service to the community. These contracts can take a number of different forms:

  • A service contract, whereby an agreed amount is paid to a private company for a specific service. The contract normally lasts for 1-5 years.
  • A management contract, whereby a private company is paid a regular amount which is not dependent on tariffs or fees, for the management and operations of a specific municipal works or service. This usually lasts for 5-10 years.
  • In terms of a lease contract, a private company leases assets from the municipality. The municipality retains ownership of assets and income generated through tariffs charged to users. This is a long-term contract of 10-15 years.
  • With concessions, the private company charges tariffs and connection fees. This is usually long-term (15-30 years).
  • The 'build, operate, own, transfer' contract is a variation of the concession or management contract (this is a long-term contract of 25 years or more).

Informal work

by Francie Lund

Three important policy shifts over the past decade have given new urgency to the debate about how local government can support people working in the informal economy, particularly women workers:

  • National government has acknowledged the significance of and the need to support the development of small, medium and micro-enterprises (SMMEs).
  • Local governments have the mandate to support local economic development, including the informal economy.
  • There has been a growing understanding of the gendered effects of globalisation on the labour market.

There is widespread acknowledgement that the extent of informal sector activity is under-estimated in the national accounts and in household surveys. The statistics are, however, getting better. In Durban, for example, a study by the Bureau for Market Research of household expenditure patterns in the greater Durban Metropolitan Area shows the contribution of sales through informal outlets very clearly. Purchases, by black households only, through spazas, street stalls, backyards, shebeens and homes amounted to R800 million in 1998. Of course, this is an underestimate. The counted contribution of 7,6% is more likely to be of the order of at least 15%.

Women are over-represented in the informal economy. They are more likely to be self-employed in selling fruit and vegetables than in clothing. They are also likely to earn less than men (as in the formal economy). On the other hand, globalisation appears to have opened up new opportunities for work for women. Global changes are blurring the lines between formal and informal work (if the line was ever very distinct). The distinction between public and private spaces gets blurred; private houses are increasingly used as the site for production as well as shelter, reproduction and maintenance.

Challenges

All this presents local government with new challenges. Local authorities are faced with the seemingly contradictory challenge of making local economies globally competitive, while still fulfilling the commitment to deliver to poorer areas within urban boundaries - where poorer people, and specially women, are. They have to engage in the double act of management and control, on the one hand, and creating new economic spaces and opportunities for poorer people.

Research being done at the University of Natal, under the umbrella of the WIEGO network - Women in Informal Employment: Globalising and Organising - points to a few areas where change is needed:

  • We should stop talking about 'the informal sector', and rather talk about the whole economy, which has a continuum between more formal and more informal ends to it. We need to concentrate on understanding the linkages between the steps in the continuum.
  • The promotion and management of the informal economy should, as far as possible, be dealt with in the same institutional structures as the formal economy; it should definitely be taken out of institutional places such as health, traffic control, and committees dealing with 'social problems'.
  • Many major cities are taking the path of privatisation/ outsourcing/ 'corporatisation' of local government assets. These assets - such as markets, land and the management of precincts - are important to the informal economy. There needs to be a rigorous analysis of the implications of these trends on poorer informal workers, especially poorer women.
  • Councillors and officials need to be better informed about the nature and significance of the informal economy and the creative ways in which some cities have started to manage urban space; the South African Local Government Association (SALGA) and/or its provincial affiliates, could include modules on the informal economy in their curricula for councillors and officials.
  • There needs to be a shift in mindset, which acknowledges that informal work is no longer 'atypical' - it is increasingly becoming the norm; there are more women than men on the street; not all informal workers will make it into the formal economy; and secure small spaces in the city are important. What would the tens of thousands of street traders be doing if they were not there?
  • The public at large needs to acknowledge the significant improvements that have been made in some areas of some cities - Durban and Pietermaritzburg are good cases in point - without privatising or outsourcing. A strong argument can be made that, in fact, these improvements could not have been made by private agencies.

    Francie Lund is based at the School of Development Studies, University of Natal, Durban.

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Democratic restructuring

by David Hall

In South Africa, the restructuring of municipal services has emphasised the introduction of business practices and contracting arrangements.

Trade unions are often presented with the argument that this is the only alternative. However, international experience suggests otherwise. There are other very different approaches to local service provision which focus on the need for 'development by agreement', the central role that workers have to play in shaping new structures and the importance of participative democracy.

Latin America was one of the first places to experience neo-liberal approaches to the public sector. Public administrators now acknowledge that errors were made which have to be avoided in future.

New approaches

Porto Alegre is a city of 1,3 million people in the far south of Brazil. The municipality has developed a policy through which ordinary citizens decide how best to distribute capital expenditure throughout the city. There has been a sharp reduction in traditional spending on highly visible construction projects, in favour of massive new spending on small-scale urbanissation and infrastructure projects on the city's periphery. Over 14 000 people now participate each year in the Municipal Budget Council, which decides how the city should invest in their neighbourhoods.

Regional forums, which are open to local groups and residents, discuss and decide on local expenditure. They are supported in their work by Thematic Forums, which deliberate on city-wide issues such as transport, education and health. These forums draw in business organizations, unions, professional groups, co-operatives, NGOs, and environmental movements.

These processes have led to greater transparency and participation. The new system has also redirected resources to small infrastructure projects in the poor neighbourhoods of the city.

Democracy

All over the world, local government and public services are being restructured on the basis of:

  • participation of all citizens;
  • engagement of workers and their trade unions;
  • positive use of collective organisations;
  • complete openness of documents and procedures;
  • devolution of decisions on how money is spent;
  • local accountability, even at the expense of business interests; and
  • sensitivity to the needs of communities and workers.

These reforms have had a range of tangible effects, not only on procedures but on material results:

  • expenditure is shifting to small local infrastructure;
  • local community development is enhanced;
  • employee morale is higher;
  • corruption is reduced; and
  • multinationals may find their projects obstructed.

Given the creation of the unicities and the need for development plans, there is no doubt that South African municipal services need to be restructured. International experiences offer some exciting, but practical, lessons on how a democratic and devolved local government system can be developed.

A different approach to restructuring could use different principles:

  • identifying the economic, social and service needs of the whole unicity community;
  • developing plans by engaging all civics and economic groups;
  • reviewing the diversity of international experience and initiatives;
  • adopting a critical approach to solutions proposed by private businesses.

    David Hall is the Director, Public Services International Research Unit (PSIRU), University of Greenwich, London, UK. This article is based on a longer report prepared for the South African affiliates of the Public Services International (PSI), and published by SAMWU. The full report is available from SAMWU (samwu@apc.org) or from PSIRU (psiru@psiru.org).

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NALEDI research report

This research round-up lists recent NALEDI research and highlights forthcoming work

Globalisation's impact

Economic globalisation is a major challenge to the power and the future of trade unions. Ongoing economic restructuring and changes in the structure of work and employment demand an appropriate response from unions.

NALEDI recently conducted a research survey among unionists attending the Southern Initiative on Globalisation and Trade Union Rights (SIGTUR) Conference and the International Federation of Chemical, Energy, Mine and General Workers' Unions (ICEM) congress.

The research looked at:

  • how trade unions view globalisation;
  • the impact of globalisation on union activity;
  • the challenges facing trade unions in an era of economic globalisation;
  • how unions should respond to economic globalisation; and
  • strategies unions have come up with.

The researchers also asked South African trade unionists to identify what they see as the key issues regarding economic globalisation. Indepth interviews were conducted with trade unionists from different parts of the world.

One of the important findings of the study is that globalisation presents both problems and opportunities for unions. Some of the problems relate to ongoing job losses and retrenchments in many sectors - especially those that are resorting to modern technology as a way of speeding up production. Opportunities identified include the creation of space for information exchange and increased prospects for international working class solidarity.

Towards equity

The government has passed employment equity legislation which is intended to increase access to employment, promotion and advancement in the workplace for black people, women and the disabled.

NALEDI's research aims to highlight the key challenges facing labour in its quest to ensure that the legislation is used to advance workers. It will focus particularly on black women workers. By opening up employment opportunities for women and requiring employers to eliminate barriers to the employment of designated groups, the Act provides the opportunity to challenge occupational segregation on the basis of gender. Case studies will be conducted to highlight experiences of discrimination and disadvantage in the workplace, as well as look as management and union strategies in the implementation of employment equity.

The effective implementation of this legislation requires clear union strategies. Unions need to ensure that opportunities are created for the most disadvantaged sectors in our society and that the benefits of affirmative action reach beyond the shopfloor.

Social dialogue

Trade unions have always played an important role in the struggle for democracy. They are also the leading civil society movements in many African countries. Even traditional critics of unions, such as the World Bank, now acknowledge that they are 'the most lively defenders of democracy'. This role is becoming increasingly important in Africa, where the lack of democratic political institutions has been recognised as a barrier to development.

In the context of economic and political change, Southern Africa is embracing tripartite forms of dialogue as a means of working towards the resolution of complex societal challenges.

The International Labour Organisation (ILO) has commissioned NALEDI to conduct a study on social dialogue institutions in Namibia and South Africa. This study is part of a larger work programme between NALEDI and the Institute for Applied Social Sciences (Fafo).

The report critically assesses South Africa and Namibia's experience of social dialogue from a labour perspective. It looks at:

  • existing social dialogue frameworks in the two countries;
  • the experiences of the trade union movements at national social dialogue level; and
  • the relationship between tripartite institutions and parliament and the relationship between various labour groupings and federations.

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NALEDI undertakes labour and economic research. Its main focus is policy research which will build the capacity of the labour movement to engage effectively with the challenges of our new society.NALEDI is an initiative of COSATU, but is controlled by an independent board.

NALEDI's main focus areas are labour markets, economic, trade and industrial policy, union organisation and women and work. Our activities include the production of research reports and policy memos, facilitating workshops and training and library facilities and resources.

Contact NALEDI at:
6th floor COSATU House, 1 Leyds Street,
Braamfontein, Johannesburg. PO Box 5665
Johannesburg 2000
Tel: (011) 403-2122
Fax: (011) 403-1948

email: naledi@wn.apc.org
website:http://www.naledi.org.za