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Economics of South African Townships : Special Focus on Diepsloot

ACCESS TO CAPITAL ACCESS TO CREDIT ACCESS TO FINANCE ACCESS TO FINANCIAL SERVICES ACCESS TO FORMAL FINANCE ACCESS TO SERVICES ACCOUNTABILITY ACCOUNTING ADVANCED ECONOMIES ADVANCED ECONOMY AGRICULTURE ANALYTICAL APPROACH ARBITRAGE BANK ACCOUNT BANKING SECTOR BANKING STRUCTURE BANKS BORROWING BUSINESS ACTIVITY BUSINESS CENSUS BUSINESS DEVELOPMENT BUSINESS ENTERPRISE BUSINESS ENTERPRISES BUSINESS NETWORKS BUSINESS OPPORTUNITIES BUSINESS OWNER BUSINESS OWNERS BUSINESS RECORDS CAPACITY BUILDING CAPITAL FLOWS CAPITALIZATION CC CENTRAL PLANNING CHILD CARE CIRCULAR FLOW CITIES COMMUNITIES COMPARATIVE ADVANTAGES COMPETITIVENESS COMPUTER TRAINING CONVERGENCE ECONOMICS CREDITS CRIME CURRENT ACCOUNT CUSTOMER BASE CUSTOMER BASES DECENTRALIZATION DEMOGRAPHIC PROFILES DESCRIPTION DEVELOPMENT BANK DEVELOPMENT ECONOMICS DEVELOPMENT POLICIES DEVELOPMENT POLICY DEVELOPMENT STRATEGIES DEVELOPMENT STRATEGY DEVOLUTION DISCOURAGED WORKERS DWELLING DWELLING UNITS ECONOMIC ACTIVITIES ECONOMIC ACTIVITY ECONOMIC CHARACTERISTICS ECONOMIC COMPETITIVENESS ECONOMIC CONDITIONS ECONOMIC DEVELOPMENT ECONOMIC EFFICIENCY ECONOMIC EMPOWERMENT ECONOMIC GROWTH ECONOMIC INTEGRATION ECONOMIC OPPORTUNITIES ECONOMIC POLICY ECONOMIC STATISTICS ECONOMIC STRUCTURE ECONOMIC STRUCTURES ECONOMICS ECONOMICS RESEARCH EDUCATION LEVELS EDUCATIONAL LEVEL EMPLOYEE EMPLOYMENT OPPORTUNITIES EMPLOYMENT STATUS ENTERPRISE DEVELOPMENT ENTREPRENEUR ENTREPRENEURIAL OPPORTUNITIES ENTREPRENEURS ENTREPRENEURSHIP ENVIRONMENTAL ECONOMICS EQUALIZATION EXCLUSION EXPENDITURE EXPENDITURES FAMILIES FEMALE FINANCE ACCESS FINANCIAL SECTOR FINANCIAL SECTOR DEVELOPMENT FINANCIAL SERVICE FINANCIAL SERVICE PROVIDERS FIXED CAPITAL FIXED COSTS FORMAL ECONOMIES GDP GDP PER CAPITA GENDER GNP GREATER ACCESS GROSS DOMESTIC PRODUCT GROSS NATIONAL PRODUCT GROWTH POLICIES GROWTH POTENTIAL GROWTH RATE HOUSEHOLD ACCESS HOUSEHOLD INCOME HOUSEHOLDS HOUSING HOUSING DEMAND HUMAN CAPITAL HUMAN SETTLEMENTS INCOME LEVELS INDICATORS OF ACCESS INEQUALITY INFORMAL ECONOMY INFORMAL SETTLEMENTS INSURANCE INTEGRATED DEVELOPMENT INTERNATIONAL BANK INTERNATIONAL FINANCE JOB CREATION JOB OPPORTUNITIES KEY CHALLENGES LABOR FORCE PARTICIPATION LABOR FORCE SURVEY LABOR MARKET LABOR MARKETS LABOUR MARKET LACK OF ACCESS LAND DEVELOPMENT LAND OWNERSHIP LAND USE LAWS LEGISLATION LIVING ARRANGEMENTS LIVING CONDITIONS LIVING STANDARDS LOAN LOCAL GOVERNMENTS MACROECONOMICS MARGINAL PRODUCTIVITY MERCHANTS MIGRATION MULTIPLIER EFFECTS MULTIPLIERS MUNICIPALITIES NATIONAL INCOME NEIGHBORHOOD PENSIONS PERMANENT RESIDENTS POLITICAL ECONOMY POPULATION DISTRIBUTION PRIVATE INVESTMENT PRIVATE PROPERTY PROFITABLE BUSINESSES PROPERTY RIGHTS PUBLIC FINANCE PUBLIC HOUSING PUBLIC SERVICES PUBLIC TRANSPORT PURCHASING POWER RATES OF RETURN REAL ESTATE RED TAPE REGRESSION ANALYSES REGRESSION ANALYSIS RETAIL ENTERPRISE RISK PERCEPTIONS RURAL AREAS RURAL DEVELOPMENT RURAL ECONOMY SAFETY SALES TAXES SAVINGS SAVINGS BEHAVIOR SEGMENTATIONS SELF-EMPLOYMENT SETTLEMENT SHANTYTOWNS SHOPS SINGLE MOTHER SLUM SLUMS SMALL BUSINESSES SMALL ENTERPRISES SMALL-BUSINESS SOCIAL BARRIERS SOCIAL NETWORKS SOCIAL RIGHTS SOCIAL SECURITY SOCIAL SERVICES SOURCE OF INCOME SOURCES OF INCOME SPATIAL PLANNING START-UP START-UP CAPITAL START-UPS SUPPLY CHAINS SURPLUS LABOR TECHNICAL ASSISTANCE TELECOMMUNICATIONS TRADE BALANCE TRADITIONAL ECONOMY TRANSPORT UNEMPLOYMENT UNEMPLOYMENT RATE UNEMPLOYMENT RATES UNEQUAL ACCESS UNION URBAN AREAS URBAN DEVELOPMENT URBAN ECONOMY URBAN POLICY URBAN POPULATION URBANIZATION WAGES WOMAN WOMEN ENTREPRENEURS WORKING CAPITAL YOUTH
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Washington, DC: World Bank Group
Africa | South Africa
Mahajan, Sandeep
2014-08-11T19:24:56Z | 2014-08-11T19:24:56Z | 2014-08-04

Countries everywhere are divided into two distinct spatial realms: one urban, one rural. Classic models of development predict faster growth in the urban sector, causing rapid migration from rural areas to cities, lifting average incomes in both places. The process continues until the marginal productivity of labor is equalized across the two realms. The pattern of rising urbanization accompanying economic growth has become one of the most visible and self-evident empirical facts of development across the world, with almost 200,000 people making the rural-to-urban trek every day, according to the United Nations. Cities across the world are powering growth, development, and modernization. The study then takes a close look at Diepsloot, a large township in the Johannesburg Metropolitan Area, to bring out more vividly the economic realities and choices of township residents. Although atypical in many ways, by the virtue of being newer, poorer, and more informal, with a bigger concentration of migrants (many of them foreign nationals), than the historically established townships, Diepsloot also retains many of the economic characteristics of South African townships: Issues of joblessness, uneven access to basic public services, and overwhelming levels of crime and violence are almost as pervasive in Diepsloot as they are in other T&IS. At the same time, an emergent informal sector more visibly pervades the township than seen in the average township, which makes it a particularly useful place to study in order to develop an understanding of the kinds of economic activities that are feasible in townships. It focuses particularly on the nature of business activity in the township, the key investment-climate constraints faced by its firms, income and expenditure patterns across households, and some aggregative social and human indicators. In a first attempt of its kind for a township, the report also develops a Social Accounting Matrix (SAM) of Diepsloot for a comprehensive and consistent picture of the place, including the circular flow of income within the township, the nature of its interaction with the rest of the South African economy, and a simple multiplier analysis of its economy.

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