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02 December 2019 | Story Leonie Bolleurs | Photo Leonie Bolleurs
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Poverty in the Thabo Mofutsanyana District (the poorest district in the Free State province) has implications for both the mountain environment and the people in the area. Pictured here is Prof Geofrey Mukwada, Associate Professor in the Department of Geography on the UFS Qwaqwa Campus, also affiliated to the Afromontane Research Unit (ARU).

Poverty, defined by Statistics South Africa as earning less than R300 a month, is a reality that many mountain communities struggle with.

Prof Geofrey Mukwada, Associate Professor in the Department of Geography on the UFS Qwaqwa Campus, also affiliated to the Afromontane Research Unit (ARU), published a number of articles on the mountain population in the Thabo Mofutsanyana District (the poorest district in the Free State province). In a research paper with postgraduate student Solomon Zondo, he specifically focuses on the value-chain analysis of the Witsieshoek conservation area and its environment. 

They looked at the inter-relationship between nature and the rural population and how the environment has changed as a result. For this largely poor community, the income generated from natural resources is an important source of livelihood. 

To earn a living, the community is pursuing several ways to generate an income. This has implications for both the mountain environment and the people in the area. 

Impacting the environment

Whether it is mining for sandstone, herding cattle or selling medicinal plants, all these activities have an ecological and socio-economic impact. 

A large percentage of the population in the Witsieshoek Community Conservation Area derives their income from livestock grazing. Cattle herding often leads to overgrazing – which results in soil erosion in the long term, preventing water from draining into the ground and depriving plants from much-needed moisture. Connected to the excessive removal of indigenous plants, is the spread of invasive species. As invasive trees and vegetation gulp up water, the severe impact of drought in the area is increasing.

Harvesting and selling medicinal plants to generate income for a sustainable livelihood also affect the surrounding environment. The mostly elderly ladies harvest and sell, among others, Arum lily and Pineapple lily for their medicinal properties and ornamental use. Harvesting these plants adds to the spread of invasive species, as they push away indigenous plants.

Small sandstone mining operations are another means to earn a living. Neither the customer, locally or outside the Witsieshoek area, nor the supplier, usually from Witsieshoek, is held accountable for the degradation of the environment. Careless mining not only results in a decline in ecosystem health, with scree from sandstone cutting littering the rangelands and the finer particles causing silt in rivers and dams (damaging any equipment used to extract water from rivers and dams); it also spoils pastures which locals depend on for their livelihood. 

Even with the 15% increase in tourism (2016), a living through the holiday industry is not always keeping the wolf from the door. According to Prof Mukwada, many literature sources have shown that tourism may fail to reduce poverty. During a study, respondents interviewed in the Clarens area indicated that they only receive wages during the busy months of the year (approximately 4–6 months). Many of the workers in Clarens and the Golden Gate Highlands National Park do not have easy access to chain stores, but only to small grocery stores where goods are much more expensive. Travelling to a town where they will pay less for groceries is costly, making it difficult to have the same standard of living as workers elsewhere.

“With the current situation, water insecurity is likely to worsen,” says Prof Mukwada.

Coming up with solutions

Is it possible to look for alternative livelihood sources? It is not easy to come up with simple solutions to the challenges. As Prof Mukwada explained, what might be a solution to one problem could have negative implications on another front. “One needs an integrated approach,” he says. 

In terms of tourism, one could consider training the locals in tourism-related skills, adequately equipping them with skills to increase their value. “Develop tourism that is inclusive and will benefit low-income earners who cannot invest in hotels and restaurants,” Prof Mukwada adds. 

And with a large number of people earning their income from herding, one can suggest that nearby, flatter land is made available to resettle communities, thus providing an alternative area for grazing. In flatter areas there is also less erosion. It is, however, key to determine whether the communities would be prepared to move to a new area.

Having a voice

He also believes that good relationships between industry, government, and the community are important to make a positive difference in the area. A platform is needed where the people’s limited voice will be heard in policy making. 

“The most effective way to find a solution is to listen to the people in the community. Give people the information and find out from them which of these options are possible within their local context. And do not prescribe. One needs to understand the community and its values,” he adds.

When there is understanding between the different role players and when the community has a voice, the park resources, if managed properly, have a chance to provide long-term sustainable benefits to the people of the area. 

News Archive

Inaugural lecture: Prof. Phillipe Burger
2007-11-26

 

Attending the lecture were, from the left: Prof. Tienie Crous (Dean of the Faculty of Economic and Management Sciences at the UFS), Prof. Phillipe Burger (Departmental Chairperson of the Department of Economics at the UFS), and Prof. Frederick Fourie (Rector and Vice-Chancellor of the UFS).
Photo: Stephen Collet

 
A summary of an inaugural lecture presented by Prof. Phillipe Burger on the topic: “The ups and downs of the South African Economy: Rough seas or smooth sailing?”

South African business cycle shows reduction in volatility

Better monetary policy and improvements in the financial sector that place less liquidity constraints on individuals is one of the main reasons for the reduction in the volatility of the South African economy. The improvement in access to the financial sector also enables individuals to manage their debt better.

These are some of the findings in an analysis on the volatility of the South African business cycle done by Prof. Philippe Burger, Departmental Chairperson of the University of the Free State’s (UFS) Department of Economics.

Prof. Burger delivered his inaugural lecture last night (22 November 2007) on the Main Campus in Bloemfontein on the topic “The ups and downs of the South African Economy: Rough seas or smooth sailing?”

In his lecture, Prof. Burger emphasised a few key aspects of the South African business cycle and indicated how it changed during the periods 1960-1976, 1976-1994 en 1994-2006.

With the Gross Domestic Product (GDP) as an indicator of the business cycle, the analysis identified the variables that showed the highest correlation with the GDP. During the periods 1976-1994 and 1994-2006, these included durable consumption, manufacturing investment, private sector investment, as well as investment in machinery and non-residential buildings. Other variables that also show a high correlation with the GDP are imports, non-durable consumption, investment in the financial services sector, investment by general government, as well as investment in residential buildings.

Prof. Burger’s analysis also shows that changes in durable consumption, investment in the manufacturing sector, investment in the private sector, as well as investment in non-residential buildings preceded changes in the GDP. If changes in a variable such as durable consumption precede changes in the GDP, it is an indication that durable consumption is one of the drivers of the business cycle. The up or down swing of durable consumption may, in other words, just as well contribute to an up or down swing in the business cycle.

A surprising finding of the analysis is the particularly strong role durable consumption has played in the business cycle since 1994. This finding is especially surprising due to the fact that durable consumption only constitutes about 12% of the total household consumption.

A further surprising finding is the particularly small role exports have been playing since 1960 as a driver of the business cycle. In South Africa it is still generally accepted that exports are one of the most important drivers of the business cycle. It is generally accepted that, should the business cycles of South Africa’s most important trade partners show an upward phase; these partners will purchase more from South Africa. This increase in exports will contribute to the South African economy moving upward. Prof. Burger’s analyses shows, however, that exports have generally never fulfil this role.

Over and above the identification of the drivers of the South African business cycle, Prof. Burger’s analysis also investigated the volatility of the business cycle.

When the periods 1976-1994 and 1994-2006 are compared, the analysis shows that the volatility of the business cycle has reduced since 1994 with more than half. The reduction in volatility can be traced to the reduction in the volatility of household consumption (especially durables and services), as well as a reduction in the volatility of investment in machinery, non-residential buildings and transport equipment. The last three coincide with the general reduction in the volatility of investment in the manufacturing sector. Investment in sectors such as electricity and transport (not to be confused with investment in transport equipment by various sectors) which are strongly dominated by the government, did not contribute to the decrease in volatility.

In his analysis, Prof. Burger supplies reasons for the reduction in volatility. One of the explanations is the reduction in the shocks affecting the economy – especially in the South African context. Another explanation is the application of an improved monetary policy by the South African Reserve Bank since the mid 1990’s. A third explanation is the better access to liquidity and credit since the mid 1990’s, which enables the better management of household finance and the absorption of financial shocks.

A further reason which contributed to the reduction in volatility in countries such as the United States of America’s business cycle is better inventory management. While the volatility of inventory in South Africa has also reduced there is, according to Prof. Burger, little proof that better inventory management contributed to the reduction in volatility of the GDP.

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