Free download from www.hsrcpress.ac.za resource flows for poverty alleviation and development in South Africa edited by Adam Habib & Brij Maharaj giving & solidarity Free download from www.hsrcpress.ac.za Published by Press Private Bag X9182, Cape Town, 8000, South Africa www.hsrcpress.ac.za First published 2008 978-0-7969-2201-4 © 2008 Human Sciences Research Council The views expressed in this publication are those of the authors. They do not necessarily reflect the views or policies of the Human Sciences Research Council (‘the Council’) or indicate that the Council endorses the views of the authors. In quoting from this publication, readers are advised to attribute the source of the information to the individual author concerned and not to the Council. : Vaun Cornell : Nimblemouse : Farm Design : comPress Distributed in Africa by Blue Weaver : +27 (0) 21 701 4477 : +27 (0) 21 701 7302 www.oneworldbooks.com Distributed in Europe and the United Kingdom by Eurospan Distribution Services () : +44 (0) 20 7240 0856 : +44 (0) 20 7379 0609 www.eurospanbookstore.com Distributed in North America by Independent Publishers Group () -: (800) 888 4741 : +1 (312) 337 5985 www.ipgbook.com Free download from www.hsrcpress.ac.za Tables 5 Figures 7 Preface 9 Acronyms and abbreviations 15 1 Giving, development and poverty alleviation 17 Adam Habib, Brij Maharaj and Annsilla Nyar 2 A nation of givers? Results from a national survey of social giving 45 David Everatt and Geetesh Solanki 3 Religion and development 79 Brij Maharaj, Adam Habib, Irwin Chetty, Merle Favis, Sultan Khan, Pearl Sithole and Reshma Sookrajh 4 Resource flows in poor communities: a reflection on four case studies 121 Mandla Seleoane 5 New whims for old? Corporate giving in South Africa 159 Steven Friedman, Judi Hudson and Shaun Mackay 6 The colour of giving: racial identity and corporate social investment 207 Steven Friedman, Judi Hudson and Shaun Mackay Contents Free download from www.hsrcpress.ac.za 7 Foreign donor funding since 1994 241 Deborah Ewing and Thulani Guliwe 8 Contextualising social giving: an analysis of state fiscal expenditure and poverty in South Africa, 1994–2004 281 Mark Swilling, John van Breda and Albert van Zyl Contributors 326 Index 327 Free download from www.hsrcpress.ac.za 5 2.1: Reported giving behaviour (all respondents) 49 2.2: Total money and time given (all respondents) 51 2.3: Total giving by race and sex (all respondents) 49 2.4: Total giving by province and socio-economic status (all respondents) 52 2.5: Amount given to organisation (among those who gave: 54 per cent of sample) 55 2.6: Causes supported (by respondents who gave money) 55 2.7: Amount of money given to beggar/street child/person asking for help (among those who gave: 45 per cent of sample) 60 2.8: Items given to poor people (among those who gave: 45 per cent of sample) 62 2.9: Giving to non-household family members by province, sex, race and socio-economic status (all respondents) 63 2.10: Giving behaviour (respondents who gave by social capital index) 71 5.1: Average budgets of 25 companies 195 7.1: The 2004 ranking 244 7.2: Main donors to Fund by volume, 2001–2003 253 7.3: Sectoral focus of donors 253 Tables Free download from www.hsrcpress.ac.za 6 7.4: Funding to South Africa by the largest private foreign donors for 2003/04 266 1: National fiscal framework, 1994/95 – 2004/05 308 2: Consolidated national and provincial expenditure 309 3: Consolidated national and provincial expenditure as % shares of total 310 4: Expenditure trends in national government 311 5: Expenditure trends in national government as % shares 312 6: Actual capital expenditure in national departments 313 7: Actual capital expenditure in national departments as % share 314 8: National divergence between budgeted and actual expenditure 315 9: Extra governmental transfers from national departments by destination 316 10: Extra governmental transfers from national departments by source 317 11: Poverty alleviation and job-creation fund transfers 318 12: Provincial expenditure by department 319 13: Provincial expenditure by department (% share) 319 14: Provincial capital expenditure by department 320 15: Provincial capital expenditure (% of total expenditure) 49 16: Provincial divergence between budgeted and actual expenditure 321 17: Transfers to provincial public entities 321 18: Local government 2002/03 capital expenditure by main function 322 19: Local government 2002/03 operational expenditure by main function 322 20: Transfers to local government from national and provincial government 323 Free download from www.hsrcpress.ac.za 7 2.1: Causes supported by giving goods, food or clothes (among those who gave: 31% of sample) 58 2.2: Giving money directly to the poor (all respondents by education) 61 2.3: Attitudes to paying for relatives (all respondents) 65 2.4: What do you think is the most deserving cause that you would support if you could? (all respondents) 65 2.5: Attitudes to local and international causes (all respondents) 67 2.6: Attitudes to giving (all respondents, ‘neutral’ not shown) 69 2.7: ‘Help the poor because ’ (all respondents) 69 2.8: Most deserving cause (by social capital index) 71 2.9: Attitudes to giving (all respondents) 73 2.10: Short-term need vs. long-term solutions? (all respondents) 73 7.1: Global aid by donor in 2003 243 7.2: Fluctuation in aid flows (R millions) 250 Figures Free download from www.hsrcpress.ac.za Free download from www.hsrcpress.ac.za 9 This volume presenTs an analysis of the results of the first comprehensive investigation into giving by non-state stakeholders in South Africa. The investigation, while undertaken by a research team assembled by the Centre for Civil Society () at the University of KwaZulu-Natal, was jointly initiated by the leaderships of the , the National Development Agency (), and the Southern African Grantmakers’ Association (). This partnership among the worlds of the academy, governance and the market represents one among many attempts to undertake research that makes a dierence, and to transmit this into the arena of policy and practice. Given the experimental nature of this partnership, many lessons were learnt during this period of institutional collaboration, and so we must record our heartfelt thanks to the leaderships of , in particular Colleen du Toit, and the , in the persons of Tlalane Teo and Godrey Mokate. Our gratitude must also be extended to Patrick Bond and Vishnu Padayachee, current director of the and ex-director of the School of Development Studies, respectively, who provided wise counsel at various points in the life of the project. We wish to place on record our deep gratitude and appreciation to our donors, Atlantic Philanthropies, Charles Stewart Mott Foundation, the Ford Preface Free download from www.hsrcpress.ac.za 10 Foundation and the National Development Agency, all of whom generously supported this project. The researchers, who numbered about 30 at the height of the project, and the research team leaders, must be remembered for their great work, camaraderie and ultimately for their patience with institutional bureaucracies. Members of the reference group, Ms Sheila Gastrow, Mr Elliott Osrin, Mr Gil Mahlati, Mr Ashwin Trikamjee, Dr Moshe More, Ms Sibongile Mkhabela and Mr Mathole Motshekga helped facilitate access to organisations. We must also record our collective thanks to the many government, corporate and societal leaders and our fellow citizens who at one or other time participated in this study. Finally, we must in particular acknowledge the important role of Annsilla Nyar, the programme manager of this project at . Her patience with the egocentric personality of many a researcher was critical in facilitating a resolution to the most intractable of problems, and ultimately enabled the completion of this project. This study represents an excavation of patterns of giving in South Africa through an interrogation of this phenomenon in the worlds of rich and poor, the mobilisation of resources within religious communities and the distribution thereof, the extent and nature of caring and support within extended family networks, the character of corporate social responsibility initiatives, the scale of ocial development assistance () and foreign private foundation support, the changing philosophies and practices of the state in this regard, and the eects of South Africa’s democratisation on the processes of giving and, finally, their impact on development, poverty alleviation and democratic consolidation. The research process was structured to address the macro-character of, and the diverse thematic issues to be addressed in, the study. Five research teams, each managed by a senior research leader, were deployed to cover the range of issues identified above. All of the research leaders came together in regular research management meetings with responsibility for addressing matters pertaining to methodology, focus and [...]... Grantmakers’ Association Sme – small and medium enterprises uNdp – United Nations Development Program 1 giving and solidarity 1 Giving, development and poverty alleviation Adam Habib, Brij Maharaj and Annsilla Nyar Free download from www.hsrcpress.ac.za Development and poverty alleviation have over the last decade been the almost exclusive preoccupation of some of the best academic and policy minds in South... analysis and conclusions contained in the pages that follow Free download from www.hsrcpress.ac.za Adam Habib and Brij Maharaj Project leaders and volume editors 14 giving and solidarity Acronyms and abbreviations Free download from www.hsrcpress.ac.za aFRodad – African Forum and Network on Debt and Development Bee – black economic empowerment Bt – Business Trust CCS – Centre for Civil Society CdI – Commitment... assumption that giving is an act undertaken largely by richer, more resourced sections of the community and is directed toward more under-resourced sectors Donati (2003), for instance, suggests that giving is more likely to come from people who have been inancially successful and from those who have retired and accumulated wealth and assets Olson (1965), Becker (1974) and Wright (2002) argue that giving is... industrialised world Family and informal networks are highly personalised and giving is inluenced by speciic identity categories such as relatives, friends and neighbours While there may well be altruistic or selish motives, such giving is not motivated by proit, is not enforced by law, and is not entirely voluntary And more often than not this informal system of sharing and caring is taken for granted... individual-level giving through an analysis of these processes within diferent religious communities – Christian, Muslim, Hindu, Jewish and indigenous African Giving was also investigated outside the religious dimension, mainly through a focus on private domestic foundations and trusts In all these areas the focus is on who is doing the giving, who the beneiciary is, how patterns of giving are organised, and how... sizable literature on giving in South Africa But, like in many other parts of the world, this literature is largely descriptive, focused on either the philanthropic acts of inancially successful individuals and families, or the patterns of support and behaviour within particular religious and/ or ethnic communities In the corporate social responsibility arena, where the 22 giving and solidarity Free download... reasons Firstly, because they act as a reference point enabling us to understand the signiicance of giving by the other stakeholders Secondly, they are useful in their own right because 12 giving and solidarity Free download from www.hsrcpress.ac.za they enable a comprehensive understanding of resource lows to poverty alleviation and development in South Africa This study of resource lows from the state... South Africans aged 18 and above It thus speaks to both the urban and rural and the formal and informal dimensions of our social context A second sample, drawn speciically to boost the weight of minority religious groups – Hindus, Jews and Muslims – was also surveyed, but analysed separately as part of the more qualitative relections on giving processes in South Africa The survey and the analysis thereof,... 1992) 32 giving and solidarity Free download from www.hsrcpress.ac.za An excavation of giving in South Africa must thus unearth the character of corporate social responsibility initiatives Who in the corporate sector is giving, to what causes, what motivates them, and what do they hope to achieve as a result? Moreover, how signiicant a contribution are such initiatives when compared with giving by... tax the wealthy and thereby redistribute resources to those who are poor and weak This issue has taken on a particular relevance currently because global restructuring has put pressure on the giving, development and poverty alleviation 33 Free download from www.hsrcpress.ac.za ability of industrialised states to meet the social and welfare needs of their citizens Giving, philanthropy and voluntarism . Acronyms and abbreviations 15 1 Giving, development and poverty alleviation 17 Adam Habib, Brij Maharaj and Annsilla Nyar 2 A nation of givers? Results from a national survey of social giving. case studies 121 Mandla Seleoane 5 New whims for old? Corporate giving in South Africa 159 Steven Friedman, Judi Hudson and Shaun Mackay 6 The colour of giving: racial identity and corporate social. respondents) 49 2.2: Total money and time given (all respondents) 51 2.3: Total giving by race and sex (all respondents) 49 2.4: Total giving by province and socio-economic status (all