Intermediation and the Second Economy

Type Report
Title Intermediation and the Second Economy
Publication (Day/Month/Year) 2008
Publisher Khanya
City Free State
Country/State South Africa
South Africa’s rate of inequality has continued beyond political democratization, and while rural areas remain very poor, urban poverty has deepened as poor rural people have moved to urban areas in search of services and livelihood opportunities.

The core question asked in the overall study is “What interventions are required to improve the access of the urban poor to employment, income generation and assets?”, ensuring economic inclusivity in urban areas. The strategy needs to address the failures that shape the poor relationships between the first and second economy, whether these are through spatial restructuring, enhancement of infrastructure, financial transfers, regulatory reform, institutional restructuring or community empowerment.

The key question this paper seeks to address is “what are the blockages and traps that keep the poor out of mainstream access to urban opportunity, decision-making and planning? It focuses on institutional issues, and particularly the role of intermediaries in promoting access to jobs, services, land markets, rights. This can be both direct access and the ability to influence plans and decisions as to the nature, scale, balance and location of these services.

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