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Sent: Monday, November 10, 2003 10:09 PM
Subject: [panafricanperspective] From PAC's Pres: Equitable Distribution of Land Must Redress Unemployment


Equitable Distribution of Land Must Redress Unemployment. 
Dr. Mostoko Pheko 




The issue of Land in South Africa is the most defining political and development issue of the day. It is also one of the most contentious issues because it defines and exposes the property relations of this country. It is apparent, that those who own land also own the means of production, rule the economy and influence the politics of our time. Unemployment will not be resolved until the power relations on the ownership of land are fundamentally redressed. The pathetic pace of resettling 2 percent of land by the current government contributes to unemployment and income inequalities. It maintains economic power in the hands of a few. This defies any prospects of economic growth.

The poorest people in our country live on less than R281 per month. The poorest white person lives on R5055 per month. This means that the income of the poorest African is eleven times smaller than that of a poor white person. In this country the lowest households representing 53% of the population consume only 10% of the wealth while the top 10% of households, which account for 5-8% of the population consume 40% of the wealth in this country. This is a gross anomaly. 

South Africa, according to a World Bank Report has one of the worst records in terms of social indicators. Nearly 95% of Africans in South Africa are poor. The highest unemployment rate is among Africans. The African rural areas experience up to 75% poverty. Women are poorer by almost 50% than men. South Africa is the most unequal society followed by Brazil. It is obvious that with an unemployment rate of almost 40 percent, South Africa along with equitable land redistribution needs and unemployment social security. The system should provide a social safety net for the unemployed while offering greater incentives to seek employment.

Recently, when interest rates were lowered, the CEO of Durban Deep a mining entity in KZN has threatened to retrench 3000 workers. It is rather peculiar because his salary alone is R14 million per year. Half of it could pay all those workers salaries for at least two years.

The question of equitable land redistribution is not just about restoring people’s rights. It is fundamentally about wealth and socio-economic development. It is about the ability of 70% of the poor still concentrated in the rural areas to have their economic inequalities redressed. The uneven, unequal distribution of incomes in South Africa is a direct consequence of land ownership patterns. 60,000 large-scale white commercial farmers dominate the agricultural sector in this country. As a result of their bulk access of the nation’s natural resources; land, water and minerals provides them with massive economic power. I read with great interest the Business Time Top 100 Companies survey. Mining comes from the land and continues to be a great source of wealth, contrary to those who admonish that land is not important. It is not surprising that mining companies are listed among the top companies driving the economy.


This imbalance of land holdings is reflected in the gross income inequalities between the two groups, which impede growth in jobs, and incomes. It also ensures that those with wealth control decisions around food security, investments, fiscal policy and sovereignty. What we see emerging in the market driven land reform, is more arable land being sold to the rich, to construct second houses for leisure, golf clubs, and resorts. These problems are causing a high level of poverty and colossal social inequality. The response by this government has been to criminalize and evict those seeking land. 

Unemployment in South Africa has reached disastrous levels. Almost one in two economically active South Africans are without work. People spending and saving power economies. Unemployed people earn no wages; they spend and save next to nothing. This economy with high levels of unemployment is a stalled economy. To measure whether economic policy is a social success, we have to look at economic growth, sizeable growth in employment and the level of unemployment. The writing has been on the wall for a long time. GEAR has failed to deliver full employment. The last ten years has seen government adopt neoliberal economic policies like GEAR. These only respond to those who have money.

The land question has created a divide of those privileged to own land and those destined to work on the land. The unequal access to land by those who work the land remains a glaring and troubling factor in the political economy of this country. Restructuring the power relations around land ownership is fundamental to economic freedom, not just the flag, parliament and the national anthem. 

It is ironic that in the background of high unemployment some of the winners of the Top 100 Companies are selected on the basis of what the company earns for its shareholders. It is rather startling, that companies like Woolworth’s, Pick ‘n’ Pay notorious for some of the worst labour standards in terms of wages and basic conditions of employment would be among the top 100 companies in the country. Can the income gap be bridged if the Top 100 companies still believe in a minimum wage of R4.50 per hour? What is their contribution in bridging the yawning unemployment gap?

It is evident in South East Asian countries that focusing on agrarian reform has been successful in redressing the unemployment and development questions. The struggle for access and equitable distribution of land is about challenging the historical dispossession and segregation in South Africa, which has contributed, to a violation of human rights, dignity and deep income inequalities. 

Land dispossession in this country was also driven by the need to stop African farmers from competing against white farmers, and to create cheap labour to work on the farms and mines and later in industry. We are still living with these distortions today where emerging African farmers will not enjoy the success of their counterparts who were highly subsidised by the previous regime and cheap labour. Unless these are challenged, unemployment and the historical structure of the economy of this country will not deliver social and economic emancipation for millions in this country.

The Unemployment rate has risen 1-2 percentage points each year since 1994. We have calculated that if budget priorities were shifted in favour of the unemployed, this country could afford to create one million jobs per year, if it set aside R12 billion each year. Equitable land distribution has to be understood as a guarantee for employment and survival.

The two- nations syndrome of the land lords and the landless will not evaporate, it will remain with us until there is equitable distribution of land in South Afria 

Dr. Motsoko Pheko President Pan Africanist Congress of Azania (PAC) 082-571-3207 

This article is distributd to you at the request of Dr. Pheko



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