These big metrics are useful tools for tracking where we are, but they rarely give us the nuanced understanding we need to understand aspects of social change. South Africa's ranking on the Human Development Index (HDI) remains stuck between 118 and 119, with conflict countries such as Palestine (114), El Salvador (117) and Iraq (121) surrounding our ranking. It remains a shocking statistic that South Africa shared a position with Syria on HDI in the 2014-2015 report, which means South Africans have the same education, It means sharing access to health and opportunity. It is becoming essential to shift the conversation to a more nuanced understanding of inequality and the poverty it causes, so that we can take the small steps necessary to strengthen the foundations of society and build inclusive societies. there is.
In April 2017, an agreement was signed to begin the development of a social economy policy that aims to create an enabling environment for organizations to generate social change while generating income, an important process in South Africa.
This is the world of co-operatives, mutuals, associations and social enterprises that operate outside the GDP indicator spotlight of economic success and social well-being.
It is these organizations, if supported, that have the potential to unite the growing divides in our nation's landscape. This is because they operate at the forefront of entrepreneurship, navigating the nuances of poverty and catalyzing opportunity. They act like needles threading the torn fabric of our society, steadily piecing together the patches.
Poverty in South Africa manifests itself not as an economic indicator (which is a result), but as a lack of opportunity. The system decides people's lives and refuses to let people choose how they want to proceed. There is an excellent report published by the British Council earlier this year. The report asks young people in rural and urban areas across South Africa what they think about their future. The gulf is clear. South Africans born in rural areas are prejudiced from birth. The schools they attend determine the quality of their education and the jobs they can pursue as adults. The friends they make inform the jobs offered to them as they grow up, and their ability to travel influences their view of the world and their place in it. This is poverty in South Africa, driven by inequality where the system continues to determine quality of life. As important as it is to attack the effects, such as unemployment rates and the movement of people from rural to urban areas, it is equally important to address the causes.
At work here are our social and economic institutions, which often address our ongoing institutional deficiencies, such as our education and health systems, the provision of services to vulnerable populations, and the strengthening of social justice systems. It is led by people who see an opportunity to feel humiliated.
Social economy organizations are not charities. The ability to generate income sets organizations apart, creates independence from donor agendas and long-term sustainability, and can avoid the difficulties of short-term fundraising. They are organizations like Spark Schools, founded by Stacey Brewer in response to the lack of quality, affordable schooling in South Africa. GreenAble is an environmental recycling organization that works with people with disabilities and connects them with employment opportunities. and the accessible U-Care clinic franchise, founded by Dr. Darcy Rakumakoe. These organizations are typically highly innovative, constantly adapting to meet the needs of their customers, and exhibiting a high degree of accountability to the communities intricately involved in their activities. Just as there is no organization without organization.
In 2015, the Gordon Institute of Business Sciences commissioned research to understand what social enterprises in South Africa are, how they work and where they are based. The survey of more than 400 social enterprises shows the fastest growing sectors across a range of sectors, from healthcare to education, housing and social justice. These organizations are employers, with 83% of their staff ranging from 1 to 50 people. Considering the company's ties to the communities in which it operates, it can be assumed that it employs people in areas where work opportunities are difficult to obtain. 55% he has been in existence for more than 5 years and 13% he has been in existence for more than 3 years, indicating that he can survive the initial start-up stage, where failure rates are very high in South Africa. 73% say earning an income is very important to their job, marking a significant shift away from the donor-funded philanthropic model. And 65% report that growth comes before inflation. They are an important part of our supply chain, with 38% selling goods and services to disadvantaged consumers, 32% selling to middle-income customers, and 56% selling to NGOs and SMEs. I am. These are small but optimistic organizations, with 80% earning less than her R500,000 a year. And 67% expect it to “grow rapidly” over the next 12 months.
If we want to build an inclusive society, we must move beyond simplistic interpretations of poverty and arguments about labeling people as “poor” and recognize the reality of inequality. This othering perpetuates the divide between us and them, a covert position of inferiority that we think can be accommodated by centuries-old notions of charity.
If we want to build an inclusive society that connects all people across economic and social divides, we need to start by creating an enabling environment for organizations such as social enterprises, cooperatives and mutual societies. I can. , a non-profit organization that conducts transactions. We are just beginning to understand the scope of the impact of these organizations, which provide essential goods and services to our citizens while opening up opportunities for employment, skills development and trade. The consultation process that informs all policy is just as important as the resulting Green Paper or White Paper, and over the next three years we will not only change the perception of poverty in South Africa, but also change how we respond to it. You have the opportunity to make a big difference.