Economics of South African Townships : Special Focus on Diepsloot
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Washington, DC: World Bank Group
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Countries everywhere are divided into
two distinct spatial realms: one urban, one rural. Classic
models of development predict faster growth in the urban
sector, causing rapid migration from rural areas to cities,
lifting average incomes in both places. The process
continues until the marginal productivity of labor is
equalized across the two realms. The pattern of rising
urbanization accompanying economic growth has become one of
the most visible and self-evident empirical facts of
development across the world, with almost 200,000 people
making the rural-to-urban trek every day, according to the
United Nations. Cities across the world are powering growth,
development, and modernization. The study then takes a close
look at Diepsloot, a large township in the Johannesburg
Metropolitan Area, to bring out more vividly the economic
realities and choices of township residents. Although
atypical in many ways, by the virtue of being newer, poorer,
and more informal, with a bigger concentration of migrants
(many of them foreign nationals), than the historically
established townships, Diepsloot also retains many of the
economic characteristics of South African townships: Issues
of joblessness, uneven access to basic public services, and
overwhelming levels of crime and violence are almost as
pervasive in Diepsloot as they are in other T&IS. At the
same time, an emergent informal sector more visibly pervades
the township than seen in the average township, which makes
it a particularly useful place to study in order to develop
an understanding of the kinds of economic activities that
are feasible in townships. It focuses particularly on the
nature of business activity in the township, the key
investment-climate constraints faced by its firms, income
and expenditure patterns across households, and some
aggregative social and human indicators. In a first attempt
of its kind for a township, the report also develops a
Social Accounting Matrix (SAM) of Diepsloot for a
comprehensive and consistent picture of the place, including
the circular flow of income within the township, the nature
of its interaction with the rest of the South African
economy, and a simple multiplier analysis of its economy.
Palabras clave
ACCESS TO CAPITAL, ACCESS TO CREDIT, ACCESS TO FINANCE, ACCESS TO FINANCIAL SERVICES, ACCESS TO FORMAL FINANCE, ACCESS TO SERVICES, ACCOUNTABILITY, ACCOUNTING, ADVANCED ECONOMIES, ADVANCED ECONOMY, AGRICULTURE, ANALYTICAL APPROACH, ARBITRAGE, BANK ACCOUNT, BANKING SECTOR, BANKING STRUCTURE, BANKS, BORROWING, BUSINESS ACTIVITY, BUSINESS CENSUS, BUSINESS DEVELOPMENT, BUSINESS ENTERPRISE, BUSINESS ENTERPRISES, BUSINESS NETWORKS, BUSINESS OPPORTUNITIES, BUSINESS OWNER, BUSINESS OWNERS, BUSINESS RECORDS, CAPACITY BUILDING, CAPITAL FLOWS, CAPITALIZATION, CC, CENTRAL PLANNING, CHILD CARE, CIRCULAR FLOW, CITIES, COMMUNITIES, COMPARATIVE ADVANTAGES, COMPETITIVENESS, COMPUTER TRAINING, CONVERGENCE ECONOMICS, CREDITS, CRIME, CURRENT ACCOUNT, CUSTOMER BASE, CUSTOMER BASES, DECENTRALIZATION, DEMOGRAPHIC PROFILES, DESCRIPTION, DEVELOPMENT BANK, DEVELOPMENT ECONOMICS, DEVELOPMENT POLICIES, DEVELOPMENT POLICY, DEVELOPMENT STRATEGIES, DEVELOPMENT STRATEGY, DEVOLUTION, DISCOURAGED WORKERS, DWELLING, DWELLING UNITS, ECONOMIC ACTIVITIES, ECONOMIC ACTIVITY, ECONOMIC CHARACTERISTICS, ECONOMIC COMPETITIVENESS, ECONOMIC CONDITIONS, ECONOMIC DEVELOPMENT, ECONOMIC EFFICIENCY, ECONOMIC EMPOWERMENT, ECONOMIC GROWTH, ECONOMIC INTEGRATION, ECONOMIC OPPORTUNITIES, ECONOMIC POLICY, ECONOMIC STATISTICS, ECONOMIC STRUCTURE, ECONOMIC STRUCTURES, ECONOMICS, ECONOMICS RESEARCH, EDUCATION LEVELS, EDUCATIONAL LEVEL, EMPLOYEE, EMPLOYMENT OPPORTUNITIES, EMPLOYMENT STATUS, ENTERPRISE DEVELOPMENT, ENTREPRENEUR, ENTREPRENEURIAL OPPORTUNITIES, ENTREPRENEURS, ENTREPRENEURSHIP, ENVIRONMENTAL ECONOMICS, EQUALIZATION, EXCLUSION, EXPENDITURE, EXPENDITURES, FAMILIES, FEMALE, FINANCE ACCESS, FINANCIAL SECTOR, FINANCIAL SECTOR DEVELOPMENT, FINANCIAL SERVICE, FINANCIAL SERVICE PROVIDERS, FIXED CAPITAL, FIXED COSTS, FORMAL ECONOMIES, GDP, GDP PER CAPITA, GENDER, GNP, GREATER ACCESS, GROSS DOMESTIC PRODUCT, GROSS NATIONAL PRODUCT, GROWTH POLICIES, GROWTH POTENTIAL, GROWTH RATE, HOUSEHOLD ACCESS, HOUSEHOLD INCOME, HOUSEHOLDS, HOUSING, HOUSING DEMAND, HUMAN CAPITAL, HUMAN SETTLEMENTS, INCOME LEVELS, INDICATORS OF ACCESS, INEQUALITY, INFORMAL ECONOMY, INFORMAL SETTLEMENTS, INSURANCE, INTEGRATED DEVELOPMENT, INTERNATIONAL BANK, INTERNATIONAL FINANCE, JOB CREATION, JOB OPPORTUNITIES, KEY CHALLENGES, LABOR FORCE PARTICIPATION, LABOR FORCE SURVEY, LABOR MARKET, LABOR MARKETS, LABOUR MARKET, LACK OF ACCESS, LAND DEVELOPMENT, LAND OWNERSHIP, LAND USE, LAWS, LEGISLATION, LIVING ARRANGEMENTS, LIVING CONDITIONS, LIVING STANDARDS, LOAN, LOCAL GOVERNMENTS, MACROECONOMICS, MARGINAL PRODUCTIVITY, MERCHANTS, MIGRATION, MULTIPLIER EFFECTS, MULTIPLIERS, MUNICIPALITIES, NATIONAL INCOME, NEIGHBORHOOD, PENSIONS, PERMANENT RESIDENTS, POLITICAL ECONOMY, POPULATION DISTRIBUTION, PRIVATE INVESTMENT, PRIVATE PROPERTY, PROFITABLE BUSINESSES, PROPERTY RIGHTS, PUBLIC FINANCE, PUBLIC HOUSING, PUBLIC SERVICES, PUBLIC TRANSPORT, PURCHASING POWER, RATES OF RETURN, REAL ESTATE, RED TAPE, REGRESSION ANALYSES, REGRESSION ANALYSIS, RETAIL ENTERPRISE, RISK PERCEPTIONS, RURAL AREAS, RURAL DEVELOPMENT, RURAL ECONOMY, SAFETY, SALES TAXES, SAVINGS, SAVINGS BEHAVIOR, SEGMENTATIONS, SELF-EMPLOYMENT, SETTLEMENT, SHANTYTOWNS, SHOPS, SINGLE MOTHER, SLUM, SLUMS, SMALL BUSINESSES, SMALL ENTERPRISES, SMALL-BUSINESS, SOCIAL BARRIERS, SOCIAL NETWORKS, SOCIAL RIGHTS, SOCIAL SECURITY, SOCIAL SERVICES, SOURCE OF INCOME, SOURCES OF INCOME, SPATIAL PLANNING, START-UP, START-UP CAPITAL, START-UPS, SUPPLY CHAINS, SURPLUS LABOR, TECHNICAL ASSISTANCE, TELECOMMUNICATIONS, TRADE BALANCE, TRADITIONAL ECONOMY, TRANSPORT, UNEMPLOYMENT, UNEMPLOYMENT RATE, UNEMPLOYMENT RATES, UNEQUAL ACCESS, UNION, URBAN AREAS, URBAN DEVELOPMENT, URBAN ECONOMY, URBAN POLICY, URBAN POPULATION, URBANIZATION, WAGES, WOMAN, WOMEN ENTREPRENEURS, WORKING CAPITAL, YOUTH