Women, the Budget & Economic Policy: Hearings

Ms. Taylor stressed the need for a critical gender analysis of current economic trends in government, labour, and business sectors. Although women make a major contribution to the GDP, they are still underrepresented in the aforementioned areas.

She further reminded committee members that although the South African government committed itself to addressing the critical areas of concern which were raised in Beijing, there has been no considerable shift in priorities.

There continues to be a persistent and increasing burden of poverty amongst women.

Access to education/training opportunities continues to be unequal, especially for poor women.

Women do not have equal access to health care services; malnutrition and other poverty-related illnesses remain high.

The issue of violence against women has not be sufficiently addressed, especially the provision of shelters and therapeutic treatment.

The effects of persecution and armed conflicts, particularly in the Western Cape and Kwazulu-Natal townships, are detrimental.

Women do not have equal access to the formal economy. Adding to the problem is that the Department of Trade and Industry has reduced its incentives to foreign companies, so there has been no significant increase in jobs by local industries.

The issue of gender inequality in power-sharing persists. Women are generally paid less and their skills are not generally upgraded.

There are not sufficient mechanisms within the government to promote the advancement of women.

Ms. Taylor then fielded questions from the committee:

E. Gandhi (ANC) asked what steps could be taken to ensure that women's unpaid work would not remain unpaid. F. Hajaij (ANC) asked what GCE is doing in the informal sector to improve women's lives. Ms. Taylor responded that neither the GDP nor the state national accounts consider the value of unpaid work as caregivers.

P.K. Mothoagae (ANC) inquired into the state of poverty for rural women. Ms. Taylor discussed the need for lobbying on the issue, as well as changing the current pricing mechanism. She reported that CGE is involved in providing women with access to small and medium enterprises.

M.S. Seperepere (ANC) commented on the need for increased social services for the poor and asked whose duty it was to ensure implementation of programmmes. T.J. Malan (NP) asked why Ms. Taylor favoured economic development over economic growth. E. Gandhi (ANC) questioned how to address the widening gap between rich and poor and how to support small and medium enterprises. Chairperson Govender (ANC) asked what could be done about provinces that use the Constitution and provincial independence to prevent funds allocated for the poor, actually reaching those areas.

Ms. Taylor responded that the GCE will be holding provincial hearings to explore governmental implementation of gender sensitive programmes, the outcome of which is to be presented in April. She added that provinces are subject to certain constitutional and legal frameworks, which will be explored. She stressed the need for job creation, taxation of the rich, and entitlements and training opportunities for the poor.

A SANGOCO representative outlined the coalition's main concerns.

The present budget does not make sufficient allocation for child maintenance grants.

There is no clear strategy to combat women. In fact, the new budget will likely increase the unemployment of women.

A cut in expenditure of basic needs such as housing, public works programmes, and water allocation, will adversely affect women.

To cut costs, provinces are targeting social welfare programmes.

Chairperson Govender (ANC) asked for an explanation of the poverty hearings that SANGCOCO was planning to hold. The response was that the hearings would take place country-wide from the end of March until June and that each province is to deal with a particular social or economic issue.

The remainder of the hearings have not been minuted.

The rest of the programme consisted of presentations from:

Women's Budget Initiative: Debbie Budlender

Women's Coalition: Thandi Sigodi

Women's Development Banking: Zanele Mbeki

Financial & Fiscal Commission: Renosi Mokate

SUBMISSION TO COMMITTEE ON THE QUALITY OF LIFE AND STATUS OF WOMEN

The Women's Budget Initiative has just completed the third round of research into government budgets and their implications in terms of gender. The full papers are available to all committee members who are interested. They will be published as a third book in mid-year.

This summary brings together the conclusions to the chapters. Committee members should remember that our analysis is based on the 1997/8 budgets. In some cases there may be changes in the T998/9 budgets to be presented on Budget Day. Most of the comments below will, nevertheless, almost certainly still be relevant.

DEPARTMENTS OF FINANCE (DOF) AND STATE EXPENDITURE (DSE), SA REVENUE SERVICE (SARS) AND CENTRAL STATISTICAL SERVICE (CSS)

By Imraan Valodia

Although minor in terms of its budget, the Financial and Economic Policy programme of the DoF is highly influential. The GEAR macroeconomic strategy forms the most important piece of policy of the DoF. In terms of GEAR, growth in the South African economy is to be achieved through three growth drivers. These are exports, investments, and a changed investment -employment relationship which will foster employment creation. This chapter suggest that trade liberalisation, the policy through which export growth is to be achieved, is likely to result in significant negative employment effects for women. The evidence on investment patterns in South Africa suggests that growth in investment is significantly below the GEAR target. Further, the investment that has occurred is shifting the economy in a capital-intensive direction, and consequently creating few, if any, employment opportunities for women. While the GEAR strategy projects a substantial growth in employment, current evidence suggests that employment is declining rapidly. The chapter argues that a more expansionary macroeconomic policy would probably better address the needs of the majority of women in South Africa. On a positive note, the fiscal deficit reduction targets in GEAR are not based on cuts in social spending, as is traditionally the case. Instead, expenditure on social services is increasing, and thus, probably advantaging women.

The Medium Term Expenditure Framework (MTEF) is a significant step in the budgetary reform process. There is, however, no inherent reason why the MTEF should be a progressive step from a gender perspective. Its effect on women will depend largely on the sorts of expenditure frameworks that are adopted, and the capacities of the treasury and line departments to implement gender-sensitive programmes. Further, while there are important benefits associated with the MTEF, there is a danger that economic and social policy may increasingly be determined by financial considerations, i.e. that numbers may drive the policy process.

In terms of budgetary reform, the DoF and DSE have not made much progress on the commitment to development indicators and performance evaluation mechanisms to assess the gender impacts of the budget. The DoF is coordinating a Commonwealth Secretariat pilot project around the budget in the form of an in-government women's budget exercise. This project is formulating a range of mechanisms which could in the future assist in assessing the gender impacts of the budget and government policies.

The fiscal targets that form a key element of the MTEF hinge critically on a substantial increase in government revenue. Revenue collection in South Africa is poor. Large numbers of businesses and persons who are liable for taxation remain outside the tax net. Tax evasion and avoidance is rife. In an effort to remedy this, government has passed legislation which grants administrative autonomy to the SARS. Early indications are that the new SARS is having some success is widening the tax net. An increase in tax revenues is critical if government is to abide by its commitment not to cut social spending, and not to shift the tax burden further onto the poor.

An informed assessment of women's tax burden is not possible because the SARS does not collect information on the gender of taxpayers. The SARS is investing up to RIOO million in new information technology which will still not collect information by gender

The CSS collects and disseminates statistical information in South Africa. The CSS is able to play a critical role in providing information which will facilitate effective government policy, and indicators to assess the performance of government departments in meeting their objectives, one of which is to redress gender imbalances. Although there are still some areas for concern, and a number of areas where the CSS could provide more useful statistics, the CSS has made impressive progress in providing new insights into the position of women. Most exciting is the much-publicised proposed time-use study. When this is finally done, it should allow better quantification and appreciation of the extent of women's unpaid labour.

DEPARTMENT OF ARTS, CULTURE, SCIENCE AND TECHNOLOGY

(DACST) AND DEPARTMENT OF SPORT AND RECREATION (DSR)

By Gail Smith

Much of the DACST budget consists of transfer payments. In many cases DACST hands on the money it receives to other institutions. It is only by looking at the nature of these institutions, the relative amounts they receive, and their internal workings that we can assess the gender implications of DACST as a whole.

Overall, however, the distribution of public funds in support of Arts, Culture, Science and Technology is still earmarked for end user institutions (performing arts councils, science councils, heritage sites, museums, etc) that reflect past inequalities in terms of geographical location, physical infrastructure, the dissemination of skills and governance. In terms of the nature, governance, mandate and geographic location of these end-user institutions, they still serve a primarily white audience. The detailed breakdowns of each DACST programme budget sheds some light on where women are positioned as end users, and whether they have equitable access to public funds.

DAC ST is very aware that the types of institutions funded by programmes such as Heritage and Films reveals the racial and cultural bias inherited from apartheid of such biases. It is determined to make its activities, and those of the institutions it funds, more reflective of the total society, including women. But this is easier said than done. One of DACST's more well-known new initiatives centres on Robben Island. The Island project certainly differs in terms of racial profile. But as a monument commemorating the apartheid struggle, it unwittingly silences women. Women were among those who struggled and who were jailed for their efforts, but women prisoners were not held on the Island.

DAC ST is responsible for both the "hard" and the "soft" sciences. This division holds within it significant gender (and race) disparities. These are most clearly seen when comparing the activities of the Foundation for Research and Development (FRD) and Centre for Science Development (CSD), DACST's two research funding institutions.

An analysis of school subject enrolment for 1994 shows that a small proportion of African boys and girls take maths and science at Standard 10 level. Only 21% of all African girls were enrolled in higher grade maths, compared to 25% of boys (Shindler et al, 1996). Enrolment in science and maths is essential for access to technical and scientific educational opportunities and employment prospects in engineering, medicine and commerce. Inadequate provision at the school level translates into low numbers in the "hard" sciences at higher levels. In 1992 almost 40 000 of the 48 500 degrees conferred by South African universities in 1992 were awarded to social sciences and humanities. Forty-four percent of these degrees were awarded to black students.

FRD has initiated programmes to address differential enrolment in science and engineering at tertiary level, and the lack of access to public funds. CSD has similar programmes to address differential access of black people and women to public funds in the social sciences and humanities. The figures suggest some progress, but that there is still a long way to go before the situation is equitable.

During 1998 the government will establish the National Research Foundation (NRF), which will bring together the different funding institutions such as FRD) and CSD. The NRF will consist of four divisions - natural sciences and engineering, social science and humanities health sciences, and agricultural and environmental sciences.

It is difficult to predict how the establishment of the NRF will affect funding patterns arid practices. It seems likely, however, that for the foreseeable future, a state funding policy that provides much greater support to (hard) science and technology than to the soft sciences will see more money going to white people and men than to black people and women. Similarly, subsidy policies for universities that are weighted in favour of the natural sciences while enrolment trends favour social sciences will advantage the men and white people who predominate in the former.

In terms of DSR's mandate, the organisational uncertainty and lack of clarity around who is responsible for school sport presents a major obstacle in the achievement of equity in sport. School and tertiary sport are still the responsibility of the Education Department.

DSR is responsible for some sports at the tertiary level, but the position of school sport remains unresolved.

DSR argues that "physical education is not a sports function per se" (Annual Report, 1996). Nevertheless, girls' participation in school sport is essential to their ongoing participation in sport. Targeted programmes within primary and secondary schools are thus essential to increasing the numbers of women and girls in sport. General policy interventions are not enough. Programmes that target women are required. Targeted programmes will encourage greater participation in organised sport and will allow women to access public funds allocated to sport via sports federations.

As part of its mandate for encouraging mass sports participation, the DSR hosted a national strategic planning workshop on Gender Equity in Sport in 1996. The workshop was held in preparation for the launch of the South African Women and Sport Movement. This initiative is an important step in women's sport advancement but its impact remains to be seen. Initiatives in the United States, such as Title IX of the 1972 Education Amendment Act, prove that organising women around sport is not enough. 'Gender strings" need to be attached to public funds if girls and women are to benefit.

Title IX compels high schools and colleges that receive government funding to actively prevent gender-based discrimination in the provision of education activities including sport. It requires proportional participation opportunities. It includes a provision that requires a matching of the percentage of women athletes in an athletics programme to the percentage of girls in the student body. Title IX also requires that women receive college scholarships proportional to sports participation, and that men and women receive the same benefits of athletic participation with respect to:

· equipment, uniforms, supplies;

· access to weight rooms and training rooms

· equal practice facilities;

· same size and quality locker rooms and competition facilities;

· equal access to practice and games during prime time;

· same quality coaches as boys teams;

· opportunity to play the same quality opponents;

· the same awards and awards banquets; and

· cheerleaders and band performances at girls games.

There will be those who are horrified by what they will see as quotas. Targeted programmes are justified in view of the large numbers of women who participate in sport, the even larger numbers who don't, women's disproportional under-representation on sports bodies and federations, and the general absence of women's sport in the media. Targeted programmes that benefit women could be encourage by DSR through compelling agencies, federations and bodies that receive public funds for sport and recreation either to channel funds towards girls and women or face losing their government subsidy.

DEPARTMENT OF CONSTITUTIONAL DEVELOPMENT (DCD)

By Deevy Holcomb and Lindiwe NdIeIa

The DCD is in many ways responsible for the political and social transition era we now find ourselves in. The chapter gives most attention to three issues indicative of this era: traditional affairs, located in the Constitutional Development branch, and, in the Local Government branch, the issues of post-transition legislation, and the development of local government infrastructure.

We note the department's commitment to addressing the complicated issues which arise as it attempts to harmonise customary traditions of law and authority with the new democratic dispensation. We urge that the department take a strong stance - through its upcoming White Paper on Traditional Leadership and other programmes - on understanding where women are placed in traditional systems of authority, and where customary law compromises their constitutional rights.

We also trace the post-transition legislative process, embodied at the time of publication in a Discussion Document and Green Paper. We note the department's efforts at broad-based consultations. But we echo one reader of drafts of the chapter, who asked what IS the definition of "stakeholder" in today's political landscape? At which point do organised civil society and NGOs with access to processes such as the Local Government White Paper stop representing ordinary citizens or even councillors? And how far is government mandated to go in order to reach all constituencies? In particular, we raise questions about the extent to which the White Paper process reached women. For women, with their unique relationship to local government, must be seen as a primary constituency by all those concerned.

Finally, we address the programme with the DCD's largest budget allocation - that of municipal infrastructure. We recognise the DCD's efforts to distribute infrastructure more equitably in order to ensure that all South Africans have access to basic services. Our analysis of the Municipal Infrastructure Investment Fund (MIIF) finds, however, that the document that frames the distribution of infrastructure such as water, electricity and transportation, leaves some cause for concern. In particular we worry about those who will continue to need assistance to pay for services once the initial subsidy provided under MIIF has been spent. The majority of citizens living in rural areas are women, and rural areas are generally poorer than urban areas. These facts cannot be wished away as we look at the ramifications of this department's attempts to realise the rights of all South Africans to basic services.

DEPARTMENT OF DEFENCE (DoD)

By Nobuntu Mbelle

South Africa is not faced with a major threat to its territorial integrity in the foreseeable future. This fact has been acknowledged by the ministry of Defence. It is therefore incongruous that South Africa should be supporting a defence blueprint that it cannot financially underwrite.

This chapter argues that the primary role of the national defence force as currently conceived is not appropriate in light of the changed political climate in South Africa and in the Southern African region. Secondly, the Defence budget has been reduced, yet the functions of the defence force under the old dispensation have been retained. The proposed force design is not affordable and cannot be sustained with the current fiscal trends. It is also not desirable given socio-economic realities.

The DoD's budget will under further real cuts in coming years. The DoD should therefore be looking at a smaller full-time armed force contingent and devise a coordinated demobilisation and civil society reintegration programme for force members. What South Africa needs is a national defence force that has a dual-function capacity. The force should be able, when called upon, to perform functions such as peacekeeping and rendering assistance to the police.

In this scenario we need to ask whether all the current arms of service are necessary. Decisions must be made in the context of the changing face of South Africa in her regional and international relations. Savings from further budget cuts can be redirected into social and developmental activities which will be infinitely more beneficial for poor women and men.

DEPARTMENTS OF PUBLIC WORKS (DPW), PUBLIC ENTERPRISES (OSE) AND COMMUNICATIONS (DoC)

By Renosi Mokate

Apart from the DPW, very little of the budgets of the three departments examined in this chapter goes towards meeting gender equity needs. The scale of work which needs to be undertaken in order to achieve gender equity is underscored by the type of services for which they are responsible. These services have significant gender implications because of their spatial nature and their impact on access to economic opportunities and basic facilities.

The location of new physical infrastructure is heavily influenced by prior investment decisions, primarily due to cost factors. In the South African context this biases provision towards urban areas, formerly white areas and more well-to-do areas. Increased private sector involvement in this arena will make it even more difficult to deal with equity and redistribution issues. The new institutional arrangements may well amount to a shift of resources from the less well off to the private sector and richer segments of society.

The DPW's most significant programme for gender equity has been the Community Based Public Works Programme. In terms of scale its budget is small In addition, a range of other problems limits its positive impact for women. Nonetheless, with corrective action it could be more effective.

Other programmes in the DPW also have the intention of shifting budgets to benefit more women. Their lack of success points to the need to link depart mental policy objectives to broader industry and economy issues. It also points to the need for better coordination within government in respect of changing the behaviour patterns in industries such as the construction industry in relation to participation of women as entrepreneurs and as employees.

In the Department of Public Enterprises there is very little in either the policy or the methodology of the department which points towards utilisation of the department's budget in a gender sensitive manner.

Many of the policies of the Department of Communications are in their formative stages, as is its Gender Desk. The policies speak about addressing gender issues but this is not yet reflected in the budget.

PARLIAMENT, OFFICES OF THE PRESIDENT AND DEPUTY PRESIDENT,SOUTH AFRICAN COMMUNICATION SERVICE (SACS) AND PREMIERS'VOTES

By Natasha Primo

The culture within parliament often negates the experiences and skills with which women MPs enter into the institution. Through its salary structures, differential access to resources, debating format, etc it foregrounds masculinist values, priorities and modes of operation. More women and men need to acquire the skills to conduct gender analyses of the institution itself as well as the legislation and policies for which it bears responsibility, if parliament is to become an effective counter to gender disparities in parliament and in the broader society.

Parliament has access to more funds than appear in the budget vote. Most of these funds have as their aim making parliamentarians more effective and parliament more accessible to civil society. Parliament needs to become more transparent about the ways these funds are being used and where the decisions are made Structures such as the Public Education Department (PED) need to commission an external evaluation of the effectiveness of their strategies to bring the public to Parliament and inform them of its activities. In particular, incidents like the stalled rural women's project raise questions about its priorities and capacity.

Many of the institutions whose budgets are considered in this chapter contain gender structures within them. It is important that adequate resources be allocated to allow these structures to function effectively. If this is not done, the structures are being set up to fail.

Several of the programmes which target women and representivity aim to develop a critical mass of women within institutions like Parliament. But without the support of other women, the ideas, concerns and experiences of women MPs tend to get lost. Programmes which address the number and capacity of women MPs must therefore go hand in hand with programmes which promote and support the voice of women in civil society.

The budgets of the Offices of the President and the Deputy President both continue to increase. Much of the money goes on personnel. Do these offices really need the staff complements they currently employ?

The future form of SACS or its successor is uncertain. Nevertheless, one cannot stress enough the importance of constant and clear communication. In particular, the government needs effective communications structures that will reach the poor, and women in particular, in the remotest rural areas. Media that facilitate a two-way flow of information between the public and government officials, whether that be roadshows or multi-media centres equipped with the latest communication technology, need to be prioritised.

The nine Premiers' Offices have widely divergent structures and functions. They also have different practices in respect of the level of detail in which they account for their budgets and activities. In many cases the categories obscure exactly what the money is spent on. There need to be more stringent guidelines on how provinces and Premiers Offices report their activities. Nevertheless, even from the limited information, it appears that fewer than half the provinces have provided for gender structures in their Premier's Offices. Further, where such structures are provided, they often receive less funding that equivalent youth structures.

INTER-GOVERNMENTAL FISCAL RELATIONS

By Julia de Bruyn and Debbie Budlender

This chapter discusses the emerging system of intergovernmental fiscal relations. These relations comprise the systems and rules that determine which spheres of government can collect different types of revenue, and how the total amount of revenue is distributed between spheres and within spheres.

The South African Constitution envisages a set of intergovernmental fiscal relations with a clear foundation in principles of equity. The notion of equity is a strong one. It focuses on equality of output or result, rather than equality of input It thus takes account of the severe historical inequalities in the country both between provinces and within provinces

There are several factors which make it difficult to analyse the gender impact of the system. Firstly, the system is still very much in flux. Discussion of the local government allocations has not yet reached the White Paper stage. The provincial system has been in place for just over a year. The system is also still in flux because of improvements in information and because of refinements in the approach The new information - and particularly the census results - mean that more money should be available per citizen as there are fewer people in the country than expected. But the census showed not only fewer people overall, but also a different demographic profile, with fewer young people and fewer people in rural areas. The form of the provincial allocation formula implies that there will now be a smaller proportionate share for the poorer provinces and a bigger one for the wealthier.

The second factor which makes gender analysis difficult is that intergovernmental relations speaks about equity between areas, whereas gender is an individual characteristic. At the broad level we can say that there are proportionately more women in rural areas and in poorer provinces. So to some extent a system which favours poorer areas will favour women. But this is at a very broad level of generalisation.

The third factor is that the evolving system consists mainly of block grants. The amounts to be allocated are in some cases based on the types of services to be provided. For example, the provincial grant is partly based on the expected numbers of schoolchildren and people using public health facilities. But these numbers are used to calculate the division between the provinces and local governments. They are not intended as prescriptions as to how much of the money should be spent on different functions. Apart from a few conditional grants, the provinces and local governments receive the money as one block. It is then up to them to decide how to divide the amount between education, health and the other functions for which they are responsible.

This does not go far enough in ensuring gender equity. We cannot ensure gender equity by looking only at the level of intergovernmental fiscal relations. Provincial and local governments are responsible for many of the goods and services of most importance to poor women and men. They are responsible for the core areas of education and health. They are also responsible for the basic infrastructure which can relieve the daily burden of reproductive and productive tasks. The system of intergovernmental fiscal relations provides the different spheres of government with money to perform their functions. To judge gender equity, we need to know how the national government, provinces and local governments allocate their share of the money between sectors and between services that serve the interests of different groups of women and men. In a decentralised system like our own, we need detailed examination of provincial and local government budgets as well as the national.