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COVID-19 has widened the gap between cities and rural areas

12 October 2020 | Story Andre Damons

Prof Ivan Turok, National Research Foundation research professor at the University of the Free State (UFS) and distinguished research fellow at the Human Sciences Research Council (HSRC).

New evidence provides a detailed picture of the extraordinary economic fallout from the COVID-19 pandemic. All regions lost about a fifth of their jobs between February-April, although the cities began to show signs of recovery with the easing of the lockdown to level 3. Half of all adults in rural areas were unemployed by June, compared with a third in the metros. So the crisis has amplified pre-existing disparities between cities and rural areas.

Prof Ivan Turok, National Research Foundation research professor at the University of the Free State (UFS) and distinguished research fellow at the Human Sciences Research Council (HSRC), and Dr Justin Visagie, a research specialist with the HSRC, analysed the impact of the crisis on different locations in a research report (Visagie & Turok 2020).

The main conclusion is that government responses need to be targeted more carefully to the distinctive challenges and opportunities of different places. A uniform, nationwide approach that treats places equally will not narrow (or even maintain) the gaps between them, just as the blanket lockdown reflex had adverse unintended consequences for jobs and livelihoods.

According to the authors, the crisis has also enlarged the chasm between suburbs, townships and informal settlements within cities. More than a third of all shack dwellers (36%) lost their jobs between February and April, compared with a quarter (24%) in the townships and one in seven (14%) in the suburbs. These effects are unprecedented.

Government grants have helped to ameliorate hardship in poor communities, but premature withdrawal of temporary relief schemes would be a serious setback for people who have come to rely on these resources following the collapse of jobs, such as unemployed men.

Before COVID-19

In February 2020, the proportion of adults in paid employment in the metros was 57%. In smaller cities and towns it was 46% and in rural areas 42%. This was a big gap, reflecting the relatively fragile local economies outside the large cities.
Similar differences existed within urban areas. The proportion of adults living in the suburbs who were in paid employment was 58%. In the townships it was 51% and in peri-urban areas it was 45%.

These employment disparities were partly offset by cash transfers to alleviate poverty among children and pensioners. Social grants were the main source of income for more than half of rural households and were also important in townships and informal settlements, although not to the same extent as in rural areas.

Despite the social grants, households in rural areas were still far more likely to run out of money to buy food than in the cities.

How did the lockdown affect jobs?

The hard lockdown haemorrhaged jobs and incomes everywhere. However, the effects were worse in some places than in others. Shack dwellers were particularly vulnerable to the level 5 lockdown and restrictions on informal enterprise. This magnified pre-existing divides between suburbs, townships and informal settlements within cities.
There appears to have been a slight recovery in the suburbs between April-June, mostly as a result of furloughed workers being brought back onto the payroll. Few new jobs were created. Other areas showed less signs of bouncing back.

Overall, the economic crisis has hit poor urban communities much harder than the suburbs, resulting in a rate of unemployment in June of 42-43% in townships and informal settlements compared with 24% in the suburbs. The collapse poses a massive challenge for the recovery, and requires the government to mobilise resources from the whole of society.

News Archive

UFS takes lead in improving quality of training in economics in schools

2006-06-20

The fourth international workshop for trainers in the National Council on Economic Education’s (NCEE) outreach programme for Africa, Latin America, Asia and the Middle East will be presented in Bloemfontein from 18-24 June 2006.

“Because of the rapid success we achieved in the Free State with similar workshops in Economics education that were presented by the NCEE the past year, we have now invited representatives from education departments and universities of five other provinces to attend the international workshop for trainers,” said Prof Klopper Oosthuizen, lecturer at the University of the Free State’s (UFS) Department of Agricultural Economics and initiator of the cooperative agreement with the NCEE.

The UFS and the Free State Department of Education are the NCEE’s first partners in Africa who received this training. “The attendance of the five provinces and universities is the first step in the extension of the programme to the rest of the country,” said Prof Oosthuizen.

The NCEE is based in the United States of America (USA) and the workshop forms part of the council’s effort to improve the quality of the training of Economics teachers and lecturers across the world.

“South Africa is urgently in need of efforts to improve the integration of black people into the market economy. An understanding of how markets work is one of the pillars of democracy. Equipping young people with economic understanding and skills will help empower them for responsible roles as individuals and citizens,” said Prof Oosthuizen.

According to Prof Oosthuizen representatives from the education departments of the Northern Cape, Western Cape, Eastern Cape, KwaZulu-Natal and North West will also be attending the international workshop for trainers. Representatives from the Universities of Rhodes, of KwaZulu-Natal, North West and the Durban University of Technology as well as the Cape Peninsula University of Technology will also attend the workshop.

During this workshop teachers and lecturers in Economics will receive certificates.

Various subjects will be covered during the workshop such as world trade patterns, cost and benefits of free trade, exchange rates and international finance. The training will be done by representatives from the NCEE by using methods such as direct instruction and role play.

The NCEE is also in the process of training teachers and learning facilitators in the Free State in an effort to improve the quality of Economics classes in secondary schools.

“A group of 84 teachers and learning facilitators were trained in December 2005, 50 were trained in January 2006 and the last group of 40 will be trained at the UFS Main Campus in Bloemfontein from 26 June - 1 July 2006,” said Prof Oosthuizen.

During this seminar the teachers will be trained in issues such as broad social goals in an economy, economic decision making, government’s role in a market economy and fiscal policy. The training will also be done by representatives from the NCEE.

The NCEE has been working together with international partners since 1992 to strengthen their Economics teaching systems. They have already succeeded in increasing literacy in Economics at schools in the USA and more than 20 East Block countries. More than 1,5 million learners in the East Block countries have already been served by this initiative. Since 2004 the NCEE’s focus has moved away from the East Block countries to Africa, Asia, Latin America and the Middle East.

“Our future plans include strengthening the growing partnership between the UFS, the Free State Department of Education and the NCEE. We also want to establish a council and centres for economic education which will serve as an umbrella for our joint efforts,” said Prof Oosthuizen.

Media release
Issued by: Lacea Loader
Media Representative
Tel: (051) 401-2584
Cell: 083 645 2454
E-mail: loaderl.stg@mail.uovs.ac.za
20 June 2006

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