Presentation on theme: "intermediate cities report Key findings (Work in progress)"— Presentation transcript:
1 intermediate cities report Key findings (Work in progress) CENTRE FOR DEVELOPMENT SUPPORTUNIVERSITY OF THE FREE STATE
2 OUTLINE OF THE PRESENTATION Definitions and case study frameworkLessons from literature reviewThe narrative of each cityKey themes and conceptual ideas in understanding intermediate citiesLessons in respect of differentiation and categorisationConcluding comments
3 definitionsIntermediate citiesHistorical definitions and pre-selection on sizeMore recently: Size, function and locationThe term secondary – refers to 2nd tier citiesThe term intermediate reflects on the functional role within the a settlement hierarchy (can include the flow of power, people, innovation etc).Key questions: the international, national and regional importanceThe importance of location (in relation to resources, agriculture and metros)
4 Towards a definitionBaloy and Rabinovich summarise the role of intermediate cities in the following way:“To conclude, we may say that the cities we studied, and by extension a number of urban agglomerations, have a double affiliation:their intermediate function on the one hand, their position of medium-sized town within the urban hierarchy on the other.... intermediate cities are a privileged environment for regional planning linking urban growth and regional equilibrium in a positive dynamic between the urban and the rural.They supply goods and public and private services, and often function as administrative centres, representing the provincial and national authorities”.
5 Lessons for south Africa from literature review The importance of the functional role (expressed in terms of international, national or regional importance) and understanding the risks associated with it....Understand functionality within settlement hierarchyThe importance of intermediate cities in respect of the management of urbanisationArticulate the importance of small and intermediate urban areas in rural developmentHas an appropriate environment been created for the development of place-based strategies (Can places really change their pathways...???)ID of intermediate cities (self-selection vs predetermined)
6 Lessons for south Africa from literature review Should be able to understand the impact of national policiesMining – boom-bust cyclesSpatial targeting of intermediate cities requires a long-term approach and will be subject to significant policy tensions.
7 Overview of the framework given for the individual reports HistoryCurrent status and planningEconomic trendsDemographic trendsLocal level planningSocial issuesSpatial planningMunicipal governance and financeThe environmentInfrastructure and engineering servicesLinks with rural hinterlandInnovation, Human Capital and knowledge of the areaGovernment - LG relationsSynthesis (Risks and policy implications0
8 Themes within case studies Single sector / narrow economic baseInternational connectivenessNational importanceThe importance of regional service towns (incl. An increasing trend towards private services in these areas and management of urbanisation)The technology angle (these are place of old but not unimportant technology) - except for tourism also very little evidence of new economies emerging....Historical pathways and path dependencyThe environmentThe role of freight and logistic infrastructureStrategic planning at local but also other spheres of government – a largely short term orientation...The role of national planning and policy guidelinesVaried quality of local government institutions (at institutional level but also at the level of infrastructure provision and management)General poor business – local government relationsDemarcation and functionality
9 You need to help with the following: Reasons for differentiationLessons / implications for differentiationLessons / implications for categorisationI shall make some initial points but your inputs will be appreciated....
10 City of Matlosana: History Social storyline: “Considerable mining decline but it is not that bad”Main urban areas: Klerksdorp, Orkney, Stilfontein and HartebeespoortKlerksdorp est. late 1888sMining towns after 2nd WWConsiderable growth in miningDownscaling since 1990s (Employment in mining drops from in 1996 – in 2011) (Mining GVA = 50% of total in 1996 – less than 10% in 2011)Total population:
11 City of matlosana: keynotes Historic role of gold (as exporter) – new emphasis on uraniumPopulation growth (1%p.a.)Some indication of aging (economic active population migrate)Downscaling being buffered by two factors (1) original rural service function which have expanded (2) proximity to Rustenburg – people keep residing in the areaLittle evidence of collaborative planning (SLPs and IDPs)Municipal management – (e.g. Municipal billing systems)Municipal finance (revenue bigger than some of the smaller Metros;Old Infrastructure – downscaling leads to less pressure in water but 40% of electricity is unaccounted forMaintenance – significantly below 5%Local planning and land use regulations to deal with declineSome signs of improved business – LG relationsThe environmentLower house prices
12 City of matlosana: risks AND POLICY IMPLICATIONS Impact of mine downscaling only felt a decade after initial downscalingWhat happens in the platinum belt has an impact?Agricultural servicesPolicy issuesStrategy for mine downscaling (amongst others how do we plan new mining settlements)Ensuring integration between planning instruments (IDP and SLP)
13 Emalahleni (history)Social story line: “long history of coal mining, but an increased need for energy and changing labour regimes have placed huge pressure on urban infrastructure and increased the long term environmental concerns”Witbank Est (heart of the SA coal industry)1950s – development of steel industry (mainly due to availability of energy)Population: (3.58% p.a. Growth during last 10 years resulting in informal settlements...)
14 Emalahleni – key notesThe mineral-energy complex: Established because of coal; coal – leads to energy production – energy to steel industry (these three sectors contribute 75% of the economy of the city)National energy providerLinkage with MaputoLong history of water shortageMajor land use regulatory problems as a result of housing demand and poor municipal managementSome notes on mine / municipal dependence – example of water by AngloMunicipality under administration (administrator describing this as a case of “....robbed a rich municipality to bankruptcy’Proximity to Gauteng an important long term considerationBut competition with MiddelburgStrategic planning - geared at ensuring municipal stabilityEnvironment: (spontaneous combustion of coal, acid mine water, air pollution)
15 Emalahleni: key risksEnvironment (air pollution / acid mine water and the ecology of the Olifants River)What happens if there is no more coal?New technologies in the steel industry?Competition with Steve Tswete (Middelburg)
16 Emfuleni - historySocial story line: “Emfuleni’s history is closely knitted with that of developing the steel industry, through ISCOR as state corporation, linked to Afrikaner nationalism. ISCOR was eventually privatised and internationalised with significant implications for the local economy”Est. of Vereeniging (coal-energy-first steel plant in SA)Est. of ISCOR in Pretoria (1928)Est. of Vanderbijlpark ( )Growth of ISCOR (1960 – 1989)Privatisation (1989 – 2000)Internationalisation (2000 +Historic development of Vaal Triangle?Population:
17 Emfuleni: Key issues Privatisation of ISCOR leads to major job losses Internationalisation helps to stabilisebut the balance can easily be disturbed....Downscaling buffered by proximity to Jhb, decentralisation of private / financial services, weekend tourism industry and university growthRDP housingInfrastructure and density problemsSocial perception of the place: the dirty place with conservative Afrikaners but it is slowly changing with significant levels of desegregationStrategic planning – weakMunicipality – history of institutional problems – last three years it has stabilised – BUT... Below the surface...Municipal – business relations (Cape Gate)
18 EMFULENI: Key risksClosure but more likely a melting down of the steel industryEnvironment (air pollution)Government intervention in the steel industryMunicipal finance dependence on electricity charges (5 enterprises pay 80% of the electricity bill)The role of new technologies as risk factorRisks in SA steel supplyIncrease in imports
19 George - HistorySocial story line: “long history of Khoi and colonial settlers, created a closed community which provided holiday space for the inland areas, with new comers being labelled “incommers”)Established settlement in 1711 (Houtpos) – Linked to wood exploitation (originally export orientated)1811 formally est. as George by the BritishLong history of tourism and second home developmentObtaining and airport in 1977 (by mere luck, but which helped to expand the tourism potential of the region)1982: Regional industrial development programme of the Apartheid state1987: Mossgas developments – significant increase in migrants from the Eastern Cape.Fancourt Golf Club (1996)Since 1994 the retirement industryPopulation:
20 George key issuesIncreased tourism and second home developments (link with the construction sector)Considerable population growth (2% p.a. Between 2001 and 2011)International tourism and the swallowsExpansion and the biodiversityAvailable waterSense of “white” and “coloured town”Fairly good business / municipal relationshipsStrategic planning and economic planning – in general good but no ref to retirement industry and tourism and LED are not linked – over emphasis on short term goalsHigh level of money borrowed from banks....to finance infrastructureThe concept of a dispersed city...
21 George: key risksEconomic decline – tourism / swallows ( empty residential stands for middle- and high income groups)Second home industry also small and focused on a specific segment of the populationNarrow base of the retirement industry
22 Polokwane - historyStory line: “the city evolved from bastion for Afrikaner conservatism / nationalism in the north, to developing a small but significant industrial base, to the administrative capital of Limpopo with bling and an important urban centre in the north”Est. as rural service centre – Pietersburg – 1886Apartheid planning (township areas within former homeland areas)University town from the 1960s (declining numbers)Role of a town clerk in creating an improved access route between Polokwane and Gauteng and creating an industrial base of the town in the late 1980sProvincial capital – administration in the 1990sPopulation: (Polokwane city – rural )
23 Polokwane: key issues Smart city and bling 2.4% annual growth in population between 2001 and 2011 (Limpopo 0.82% p.a.)Soccer world CupAirportEaster weekend tourismProvincial capital (tender park)Rural areas (embargo on development....)WaterOverall positive and good municipal finance situation despite some problems 5/6 years ago (last 2 financial years – unqualified audit)Negative impact of politicians from provincial levelPositioning as place of trade for African countries to the north (you need not go to Gauteng, you can get it in Polokwane)Fairly good business – municipal relationships (100 business are all linked to specific managers)
24 Polokwane: key risksState driven development – lacks creativityEconomic recovery in ZimbabweChange in the structure and functions of provincesWaterThe fact that the municipality cannot control land-use on communal land
25 Umhlathuze - historyStoryline: “Original importance ito agriculture but the establishment of the port lead to the Richard Bay harbour becoming the gateway to international coal trade and a place of heavy industry, but the full potential ignored since ”Mostly wetland areasEmpangeniCane and mills up to 1960s (town also formerly established in 1969)Establishment of Port in 1970s (linked to R293 town and homeland development)Related industry (smelters but also forestry and sugar cane related)Creation of a new town (If we had to apply environmental legislation applicable today, the town would never have been developed)Port development orientated towards coal exportsRail link with what is today known as Mpumalanga HighveldPopulation: ( urban)
26 Umhlathuze – key issues AluminiumCranes at the Port / Competition with Coega? And Durban (The role of SOEs??)The expansion of the rail capacityIDZ no successes in the last 10 yearsVery little development since the mid 1990sConsiderable urbanisation from the immediate rural hinterland create informal settlement developments – no history of planning on former communal land vs well-established history of urbanising farm landA rural orientated municipal governance structure – with little understanding of the concept of internationalisationMunicipal financeStrategic planning and the risks associated with international connectivenessSignificant political instability and some under spendingImportance; closest port to east and EU; and Jhb;
27 Umhlathuze: Key risksNational plansEnvironmentInability to create local responses – high dependence on SOE (and those who influence SOEs)To some degree the inability of LG to respond?Risk associated with a smaller international coal marketFinancial risks associated with a small number of enterprises paying the billMaputo harbour
28 WHY ARE THESE CITIES DIFFERENT Their specific intermediate role (regionally, nationally and internationally)Their social and political roleTheir sustainabilityTheir institutions and capacityActors and leverage pointsOpportunities and risks
29 Reflecting on the Key themes from the case studies Single sector / narrow economic baseInternational connectivenessNational importanceThe importance of regional service towns (incl. An increasing trend towards private services in these areas and management of urbanisation)The technology angle (these are place of old but not unimportant technology) - except for tourism also very little evidence of new economies emerging....Historical pathways and path dependencyThe environmentThe role of freight and logistic infrastructureStrategic planning at local but also other spheres of government – a largely short term orientation...The role of national planning and policy guidelinesVaried quality of local government institutions (at institutional level but also at the level of infrastructure provision and management)General poor business – local government relationsDemarcation and functionalityDID YOU PERHAPS SEE OTHER THEMES?
30 Themes / rationale for a differentiated approach Interm. rolesSocial / political roleSustain-abilityInst. & capacityActors & leverage pointsOpp. & RisksNarrow economic basexInt. connectivenessXNational importanceRegional importanceTechnologyHistorical pathways / life cycleThe environmentRole of freight and log. infraStrategic planningNat planning and policyLocal Gov institutionsBusiness / LG relationsDemarcation and functionality
31 Theme 1: Single sector / narrow economic base Risk of international market change and international competitivenessRisk of changing technologyRisk of resource depletion (or extraction not being viable)Risk of poor strategic planning at local levelRisk of poor municipal managementRisk of changing government policies (economic sector policies such as steel)What does it mean for differentiation?
32 Theme 2: international connectiveness All cities a degree of international competitiveness (Polokwane, George, Matlosana, Emalahleni, Emfuleni, Umhlathuze)Mainly in narrow sectors...But, how do localities respond to this?How is SA’s logistics network orientated towards addressing this?What does it mean for differentiation?
33 Theme 3: National importance of these places Regional service cities important in managing urbanisation, spreading government / private services / and rural developmentSteel / Aluminium productionThe environment (Vaal / Olifants River ecologies)International logistics (Umhlathuze) and exports (Mining, steel and tourism)National competencies (iro steel, aluminium)Social and political roles of for example PolokwaneManaging national urbanisation.What does it mean for Differentiation?
34 Theme 4: the importance of regional service centres Polokwane, George, and KlerksdorpPlay a specific role in the urban hierarchy – usually originally linked to agricultureFunctions have grownFunctional distance of service area has expandedThe important role wrt private services (Health / education)Polokwane City / Richards Bay very specific role wrt the rural hinterlandWhat does it mean for differentiation?
35 Theme 5: technology and economic type In the main old technology (steel as oppose to plastic; steel production as oppose to fabrication; aluminium smelting as oppose to fabrication; extraction as oppose to beneficiation)Or old economies (trade as oppose to tourism)Which lead to either mobile human capital (mining areas) or not always that creative human capital (Mining, steel and government services)Historic linkages between education institutions and industry have also become weaker over the past 20 years (reasons).So what is different?What does it mean for differentiation?
36 What does it mean for categorisation / differentiation? THEME 6: Historical pathways, path dependency and the ability (inability) to overcome risksThe case of KlerksdorpAll of these towns are locked into a path dependency with very little signs of breaking out of it.... In many cases they just expand their existing pathway...City of MatlosanaPolokwaneEmfuleniUmhlathuzeWhat does it mean for categorisation / differentiation?
37 THEME 7: THE ENVIRONMENT Water access in Polokwane / GeorgeThe sensitive bio-environment in George / Umhlathuze (wetlands)Acid drain water from mines in Emalahleni, Emfuleni and City of Matlosana (living with the long term implications of mining)Emfuleni and acid mine water.... (would this have happened with a metro?)Air pollution in Emfuleni, Emalahleni and UmhlathuzeImportant for river ecologies (Vaal and Olifants)Questions of cost benefit wrt the environment (Umhlathuze rail story).At what scale are we tackling environmental problems?Managing the environment and international connectiveness (the case of Emfuleni)Intermediate cities – more direct link with environmentImplications for differentiation?
38 THEME 8: Freight and logistics A crane for the port in UmhlathuzeThe upgrade of the old Ermelo – RB rail?Exports from EmfuleniImplications for differentiation?
39 THEME 9: Strategic planning Limited evidence of appropriate strategic local government spherePlanning is a five year cycle theme – something we align with performance management contracts etc (also visible in George where there has been regime changes)Cranes at Umhlathuze / Richards BayEmfuleni – the notion of not understanding the long term risks associated in the steel industry (the notion of international competitiveness does not feature in the local planning documents).Umhlathuze – the importance of the port not conceptualised in IDPImplications for differentiation?
40 THEME 10: National planning and policy The story of Umhlathuze (harbour at Coega, upgrade of Durban – Jhb rail as oppose to accessing port in Umhlathuze)CranesEmfuleni (possible creation of another steel mill / dispute between gov and AMSA)Water in Polokwane (miss calculation of demand by national department of Water)Expanding Emalahleni (does this not require some form of national response)Implications for differentiation / categorisation?
41 THEME 11: VARIED QUALITY WRT local government institutions Overall management:George and Umhlathuze – maybe the exceptions with some significant improvements at PolokwaneThe other had histories of poor municipal management, low expenditure on maintenance and political infightingOne under administrationThe risk of poor municipal management if a city is a single sector city?Financial management (Overall, PPPs)Management of urbanisation (Examples)InfrastructureSpatial planning (Desegregation)
42 Theme 12: Poor business / government relations Polokwane and George fairly good relationshipsThe others can at the best be described as ad hocCases where businesses maintain infrastructure / provide water?Municipal finance systems do not promote better relationshipsImplications for differentiation?
43 Theme 13: demarcation and functionality Administrative systems and functionalityThe case of Emfuleni and MetsimaholoEmalahleni (Witbank) / Steve Tswete (Middelburg)Umhlathuze (as administrative unit) vs Richards Bay as a dense urban settlement mediating access to international markets – largely loose from the rural hinterland.Is the one not keeping the other back? Can an overwhelming rural municipality and its local government structure (probably dominated by rural wards) plan international competitiveness?It seems as if the new boundary demarcations in Umhlathuze increase the above pressure.Rates on communal land?The ability to formalise land on communal land near Richard Bay is crucial to the development of the “city”Polokwane city vs rural hinterlandImplications of differentiation?
44 Differentiation: some initial notes Differentiation approach in municipal management – Getting the basics right but also conceptualising these places within international connectiveness?Can not think about differentiation only ito finance systems– other themes which should be considered are strategy, management performance (including financial management) and partnershipsInternational connectiveness, national and regional importance are key considerations and require differentiated approaches in policy, planning, municipal supprt and financeMining - relationship with the settlement environment in both boom and bust cycles
45 Differentiation (2)Environmental considerations and long term environmental impacts should also be considered wrt differentiation
46 categorisationLesson 1: The importance of path dependency in the evolvement and future of cities suggest that sterile categorisation frameworks have serious shortcomingsLesson 2: The dynamic nature of our case study cities cities suggest that movement within a categorisation framework should be possibleLesson 3: A multi-layer of categorisation should be possible (an initial step could be Harrison’s work in order to provide a wide framework)