South Africa

1990s

Summary

South Africa - 1990s

The early 1990s see a massive civil society effort that demands democratic representation. This culminates in 1994 with elections, followed by a constitution in 1996. The National Housing Forum is established to debate housing policy. Nelson Mandela is released from prison, political parties are no longer banned, and the ANC announces its Reconstruction and Development program, addressing basic needs of masses, followed by the Growth and Redistribution program in 1996.

Although local government is in transition and rarely involved in housing or urban development, a white paper on local government proposes rationalizing government boundaries and encouraging powers to enter into public/private partnerships.

Influences

  • HIV/AIDS.
  • New Constitution adopted (1996).
  • Housing Summit in Botshabelo (1994).
  • Release of Nelson Mandela; unbanning of ANC.
  • Multi-party discussions for 1994 elections.
  • National Housing Forum (1993), civil society, private sector, and political parties collaborate to chart a negotiated housing policy for the country.
  • Migration patterns create housing and infrastructure backlog.
  • Urban Development Framework proposed.
  • Housing and services struggle between quantity and quality.
  • Expectation and mandate that service delivery be provided to all South Africans.
  • World Bank deems South Africa's urban structure the most inefficient in the world.

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Policies and Programs

  • White Paper on municipal partnerships (1997).
  • 1997 Urban Development Framework.
  • 1996 Growth and Redistribution Program: delineation of administrative powers.
  • 1994 Record of Understanding for bank financing of low- and middle-income housing loans.
  • 1994 White Paper on Housing, framework for government housing policy and strategy: introduction of capital subsidy policy.
  • Reconstruction Development Program, adopted by ANC (1993) to meet the basic needs of all citizens.
  • People's Housing Process (aided self-help housing) introduced with international support.
  • Development Facilitation Act reduces red tape in acquiring land for development and introduces public participation in physical planning.
  • Proposal to introduce Community Reinvestment Legislation to force banks into lending to lower-income groups.

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Institutional Roles

  • Policy and development integrated at the local level.
  • Parastatal institution building, especially for housing (e.g., National Urban Reconstruction and Housing Agency) supports emergence of small-to-medium black contracting firms and provides construction finance for low-income housing.
  • Concurrent power between national and provincial government (e.g., housing policy implementation).
  • Local government undergoes three transitional phases.
  • Banking sector concerned with willingness-to-pay among low-income households.

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Methods, Tools, and Practices

  • Social compacts between developer and community required to ensure that projects meet local needs.
  • Government establishes several parastatals to rectify market distortions created by apartheid.
  • Insurance scheme to ensure quality control in housing (National Home-Builders Registration Council).
  • Banks redline inner-city and township areas due to negative equity concerns.
  • Municipal Infrastructure Investment Unit supports local government public-private partnerships for service delivery.

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Lessons and Outcomes

  • 100,000 units of sites-and-service housing delivered by Independent Development Trust.
  • One million low-cost houses constructed using private sector developers and capital subsidies.
  • Special Presidential Projects expedite delivery of services but not integrated in the full development plan.
  • Reconstruction and Development Program fails to meet targets due to excessive bureaucracy.
  • Unfunded mandates; no comprehensive urban development strategy; loss of capacity at the local level.
  • Strong civil society during the 1980s and 1990s paved the path for Forums, which facilitated multi-party talks.
  • Forum methodology prepared the public and leadership to grapple with change in an operational sense.

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