Socio-Economic Insecurity in

Emerging Economies

Taking a unique comparative approach to the respective development paths

of India, Brazil and South Africa (IBSA), this book shows that people and
governments in the three emerging economies are faced with similar challenges
of heightened insecurity, caused by liberalization and structural adjustment.
The ways in which governments, as well as individuals and worker organizations
in IBSA have responded to these challenges are at the core of this book.
It explores the nature of insecurity in the Global South; the nature of the
responses to this insecurity on public and small-scale collective as well as on an
individual level; and the potential of these responses to be more than neo-lib-
eral mechanisms to govern and contain the poor and lessons to be learnt from
these three countries. The first section covers livelihood strategies in urban and
rural areas as individual and small-scale collective responses to the condition of
insecurity. Insecurity in these emerging economies of the South is characterized
by a high degree of uncertainty of the availability of income opportunities.
The second section looks at state responses to insecurity and contributions on
social protection measures taken by the respective IBSA governments. The third
section discusses whether alternative development paths can be identified. The aim
is to move beyond ‘denunciatory analysis’. Livelihood strategies as well as public
policies in some of the cases allow for the building of new spaces for agency
and contestation of a neo-liberal mainstream which provide emerging and
experimental examples.
Socio-Economic Insecurity in Emerging Economies: Building new spaces
develops new thinking on Northern welfare states and their declining trade
unions. It argues that these concepts, knowledge and policy innovations are
now travelling in three directions, from North to South, from South to North,
and between Southern countries. This book provides unique insights for
researchers and postgraduate students in development studies, social policy
and industrial sociology.

Khayaat Fakier is a Senior Lecturer at the University of Stellenbosch in

South Africa.

Ellen Ehmke is an Associate Doctoral Fellow at the International Centre for

Development and Decent Work at the University of Kassel, Germany.
Routledge Explorations in Development Studies

This Development Studies series features innovative and original research at

the regional and global scale.
It promotes interdisciplinary scholarly works drawing on a wide spectrum
of subject areas, in particular politics, health, economics, rural and urban
studies, sociology, environment, anthropology, and conflict studies.
Topics of particular interest are globalization; emerging powers; children
and youth; cities; education; media and communication; technology development;
and climate change.
In terms of theory and method, rather than basing itself on any orthodoxy,
the series draws broadly on the tool kit of the social sciences in general,
emphasizing comparison, the analysis of the structure and processes, and the
application of qualitative and quantitative methods.

The Domestic Politics Governance for Pro-Poor Urban

of Foreign Aid Development
Erik Lundsgaarde Lessons from Ghana
Franklin Obeng-Odoom
Social Protection in Developing
Countries Nationalism, Law and Statelessness
Reforming Systems Grand Illusions in the Horn of
Katja Bender, Markus Kaltenborn Africa
and Christian Pfleiderer John R. Campbell

HIV and East Africa

Formal Peace and Informal
Thirty Years in the Shadow of an
War
Epidemic
Security and Development
Janet Seeley
in Congo
Zoë Marriage
Evaluation Methodologies for
Aid in Conflict
Technology Development Assistance Ole Winckler Andersen, Beate Bull
for Agriculture and Megan Kennedy-Chouane
Putting Research into Use in Low
Income Countries Digital Technologies for Democratic
Norman Clark, Andy Frost, Governance in Latin America
Ian Maudlin and Opportunities and Risks
Andrew Ward Anita Breuer and Yanina Welp

Statelessness and Citizenship Governance Reform in Africa

Camps and the Creation of International and Domestic
Political Space Pressures and Counter-Pressures
Victoria Redclift Jérôme Bachelard
Economic Development and Political Confronting Land and Property
Action in the Arab World Problems for Peace
M.A. Mohamed Salih Shinichi Takeuchi

Development and Welfare Policy in Socio-Economic Insecurity in

South Asia Emerging Economies
Gabriele Koehler and Building New Spaces
Deepta Chopra Khayaat Fakier and Ellen Ehmke
This page intentionally left blank
Socio-Economic Insecurity in
Emerging Economies
Building New Spaces

Edited by
Khayaat Fakier and Ellen Ehmke
First published 2014
by Routledge
2 Park Square, Milton Park, Abingdon, Oxon, OX14 4RN
and by Routledge
711 Third Avenue, New York, NY 10017
Routledge is an imprint of the Taylor & Francis Group, an informa business
© 2014 selection and editorial material, Khayaat Fakier and Ellen Ehmke;
individual chapters, the contributors
The right of Khayaat Fakier and Ellen Ehmke to be identified as authors of
the editorial material, and of the authors for their individual chapters, has
been asserted by them in accordance with sections 77 and 78 of the
Copyright, Designs and Patents Act 1988.
All rights reserved. No part of this book may be reprinted or reproduced or
utilized in any form or by any electronic, mechanical, or other means, now
known or hereafter invented, including photocopying and recording, or in
any information storage or retrieval system, without permission in writing
from the publishers.
Trademark notice: Product or corporate names may be trademarks or
registered trademarks, and are used only for identification and explanation
without intent to infringe.
British Library Cataloguing in Publication Data
A catalogue record for this book is available from the British Library
Library of Congress Cataloging in Publication Data
Socio-economic insecurity in emerging economies : building new spaces /
[edited by] Khayaat Fakier and Ellen Ehmke.
pages cm. – (Routledge explorations in development studies)
Includes bibliographical references and index.
1. Economic security – Developing countries. 2. Developing countries –
Economic policy. 3. Developing countries – Social policy. I. Fakier,
Khayaat. II. Ehmke, Ellen.
HC59.7.S58657 2014
330.9172’4 – dc23
2013043361

ISBN: 978-1-138-01782-5 (hbk)

ISBN: 978-1-315-78013-9 (ebk)

Typeset in Times New Roman

by Taylor & Francis Books
Contents

List of illustrations x
List of contributors xi
Acknowledgements xiv
Acronyms and abbreviations xvi

1 Work, livelihoods and insecurity in the South:

a conceptual introduction 1
EDWARD WEBSTER AND SHARIT BHOWMIK

PART I
Urban and rural livelihood strategies 19

2 Introduction: urban and rural livelihood strategies 21

MOULESHRI VYAS

3 Precarious workers, different voices: Johannesburg’s inner-city

clothing workers 28
EDWARD WEBSTER AND KATHERINE JOYNT

4 Labour and migration patterns: the clothing industry and

Bolivian migrants 44
CIBELE RIZEK, ISABEL GEORGES AND CARLOS FREIRE DA SILVA

5 Public space and livelihood security in the urban economy:

the case of street vendors in Mumbai 56
DEBDULAL SAHA

6 Charcoal for food: livelihood diversification in two peasant

communities in Mozambique 68
CLAUDIA LEVY AND BRIGITTE KAUFMANN
viii Contents
7 Conservancy work in Mumbai and Johannesburg:
retention at the periphery 83
MOULESHRI VYAS

8 Organizing the unorganized: Mumbai’s home workers

lead the way 97
INDIRA GARTENBERG AND SHARIT BHOWMIK

PART II
State responses to insecurity 111

9 Introduction: state responses to insecurity 113

ELLEN EHMKE

10 Strategies for social protection provision: a comparison

of Brazil, India and South Africa 120
ELLEN EHMKE

11 The community work programme and care in South Africa 133

KHAYAAT FAKIER

12 Practice and priorities of the National Rural Employment

Guarantee Act in India: an activist’s perspective 147
K.S. GOPAL

13 Brazil’s strategy against poverty: the Bolsa Família and

Brasil Sem Miséria 160
AMILTON MORETTO

PART III
Alternative development paths 175

14 Introduction: alternative development paths 177

JACKLYN COCK

15 The solidarity economy alternative in South Africa:

theory and practice 183
ANDREW BENNIE

16 The buen vivir in Latin America: an alternative developmental

concept challenging extractivism in Ecuador 195
MONA ARANEA GUILLÉN
 Contents ix
17 The Lula Moment: constraints in the current peripheral
development model 207
RUY BRAGA

18 The green economy: a wolf in sheep’s clothing or an alternative

development path in South Africa? 219
JACKLYN COCK

19 Envisioning environmental futures: conversations around

socio-ecological struggles and industrialization in Mundra, India 232
KANCHI KOHLI

20 Conclusion – building new spaces: responses to insecurity in

the Global South 241
ELLEN EHMKE AND KHAYAAT FAKIER

Index 250
Illustrations

Figures

1.1 The Polanyian pendulum 7

3.1 The CBD, inner city and suburbs of Johannesburg 30
3.2 Value chain for clothing production and retail in inner-city
Johannesburg 32
6.1 Evolution of households working in charcoal production in
Mabomo and Mungaze 74
13.1 Families benefiting from the Bolsa Família Programme, Brazil,
2004 to 2012 164
13.2 Federal expenditure on family grants as a percentage of GDP,
Brazil, 2003 to 2009 165

Tables

1.1 Key figures on Brazil, India and South Africa, 2008 or latest
year available 10
3.1 Profile of clothing enterprises in inner-city Johannesburg 33
7.1 Categories of workers engaged in solid waste management in
Mumbai and Johannesburg 89
7.2 Unionizing contract labour in solid waste management 93
10.1 Key characteristics of Bolsa Família, NREGA and CWP 121
13.1 Benefits before and after the introduction of Brasil Sem Miséria 169
Contributors

Mona Aranea Guillén has studied sociology and politics in Germany, Czech
Republic and India and holds an MA in Global Political Economy from
Kassel University, Germany. She has previously worked in Ecuador as a
lecturer at the Federal Amazon University (UEA) in Puyo. Since 2013 she
has been employed as a researcher in the EU-funded Marie Curie project
Changing Employment at Oviedo University, Spain.
Andrew Bennie completed a Master’s degree in Sociology at the University of
the Witwatersrand, Johannesburg and now works as a researcher and
grassroots organizer for the solidarity economy movement at the Coop-
erative and Policy Alternative Centre (COPAC). He is soon to begin work
on his PhD, focusing on food sovereignty in South Africa.
Sharit Bhowmik is Professor and Chairperson of the Centre for Labour Studies
at Tata Institute of Social Sciences (TISS), Mumbai. He has been engaged
in labour studies for over three decades. His interests include plantation
labour and informal work. He is a member of the Sub-Group on Plantation
Labour of the National Advisory Committee (India) and a member of the
Expert Committee on Street Vendors in Mumbai.
Ruy Braga is an Associate Professor at the Department of Sociology of the
University of São Paulo (USP).
Jacklyn Cock is Professor Emeritus in the Department of Sociology, Wits
University and an Honorary Research Associate in the Institute for
Society, Work and Development (SWOP). She has published widely on
gender, militarization and environmental issues.
Ellen Ehmke is an Associate Doctoral Fellow at the International Centre for
Development and Decent Work (ICDD) at the University of Kassel, Germany.
She studied political science at Free University in Berlin. Her research
interests are social and labour policies, in particular social protection in the
South, informal work and international labour standards.
Khayaat Fakier is a Senior Lecturer at the University of Stellenbosch in
South Africa. During the course of the research for this book, she was
xii Contributors
employed as a researcher in the Institute for Society, Work and Development
(SWOP) at the University of the Witwatersrand, Johannesburg. Her PhD
provided a gendered analysis of the crisis of social reproduction in migrant
households in contemporary South Africa. She has published on work and
social reproduction in post-apartheid South Africa in journals such as
Antipode and the International Feminist Journal of Politics.

Carlos Freire da Silva holds a Master’s degree in Sociology and is a PhD

student at the University of São Paulo. During his PhD he also studied at
the Université de Toulouse – Le Mirail e na École des Hautes Etudes en
Sciences Sociales – EHESS. His research interests are mainly urban and
economic sociology, informal labour market and immigration processes.

Indira Gartenberg is a PhD scholar at TISS, Mumbai, and a fellow of the

ICDD. She is also organizing secretary of LEARN Mahila Kamgar
Mahila Sangathna (a trade union of women workers in informal employ-
ment). Her research interests are urban informal labour, women’s work and
trade unions.

Isabel Georges is a Sociologist at the IRD-Institut de Recherche pour le

Développement/UMR 201 Développement et Sociétés, Nogent-sur-Marne,
France, and Visiting Professor at the Federal University of São Carlos/
Department of Sociology, São Carlos (Brazil). Her current research
is about precarious work, social policies and gender studies in a global
world.
K.S. Gopal has thirty years of field experience in rural development and is
actively engaged in social protection theory and practice. His focus in
recent years is on innovation and implementation of the National Rural
Employment Guarantee Scheme. He has served as Member of the Central
Employment Guarantee Council of India.
Katherine Joynt is a PhD candidate in Sociology at the University of the
Witwatersrand, Johannesburg. She is a doctoral fellow at the International
Centre for Development and Decent Work (ICDD) at Kassel University
and the Society, Work and Development Institute (SWOP) at the University
of the Witwatersrand.
Brigitte Kaufmann is Associate Professor (Privatdozentin) at the Faculty of
Agricultural Sciences, University of Hohenheim. Since March 2008, she
also leads the research section at the German Institute for Tropical and
Subtropical Agriculture (DITSL). She specializes in tropical livestock
systems. Her research deals with the topics food security, resource man-
agement, adaptation to climate change and food value chains. She uses
transdisciplinary research approaches with the focus on dialogue between
knowledge systems, perspectives and decision making of societal actors,
collaborative learning and collective action.
 Contributors xiii
Kanchi Kohli is a researcher, writer, and campaigner working on environmental,
forest and biodiversity governance in India. Her work draws empirical
evidence from sites of conflict and relates these to the power politics ema-
nating from the legal and policy realm. She works with various networks
and organizations.
Claudia Levy is a Doctoral Fellow of the ICDD, at DITSL, University of
Kassel. She specializes in society–nature relations studying livelihoods in
rural communities. She worked in the semi-arid region of Brazil’s Northeast,
in Ghana and in Mozambique. She holds an MSc in Human Geography
from the University of Campinas, Brazil; and a Joint International MSc on
Regional Development Planning and Management from the University of
Dortmund, Germany and the Kwame Nkrumah University of Kumasi,
Ghana.
Amilton Moretto is Assistant Professor for Labour Economics at the Eco-
nomics Institute and a researcher at Cesit – Centre of Trade Union Studies
and Labour Economy of Economic Institute – at the State University of
Campinas, Brazil. He holds a PhD in Development Economics and is
engaged in research on labour market policies, public policy analysis,
employment, social inclusion and related areas.
Cibele Rizek is a Professor at the Institute of Architecture and Urbanism –
University of São Paulo, holds a Master’s and PhD in Sociology and is a
member of Studies Center of Rights and Citizenship of University of São
Paulo.
Debdulal Saha is Assistant Professor at Tata Institute of Social Sciences,
Guwahati Campus. He received his MA in Economics from the University
of North Bengal and his PhD in Social Sciences from TISS, Mumbai. His
main research interests include street vendors and the urban informal
economy, on which he has published several articles in peer-reviewed
journals and contributed chapters to books.
Mouleshri Vyas is Professor in the Centre for Community Organisation and
Development Practice in the School of Social Work at Tata Institute of
Social Sciences, Mumbai. Her teaching, field engagements, research and
publications are in the areas of community practice, social impact of
development projects and informal labour.
Edward Webster is Research Professor at Institute for Society, Work and
Development (SWOP) at the University of the Witwatersrand, Johannesburg,
and Director of the Chris Hani Institute. He is Editor-in-Chief of the
Global Labour Journal, and co-ordinates a range of research projects on
the world of work.
Acknowledgements

In 2009 Edward Webster and Sharit Bhowmik were integral to launching an

international research network titled ‘Work, Livelihood Strategies and Insecurity
in the Twenty-first Century: Comparing India, Brazil and South Africa’. The
network was funded by and supported through the newly established Inter-
national Centre for Development and Decent Work (ICDD) at the University
of Kassel, Germany. The intellectual support of Christoph Scherrer and Birgit
Felmeden’s organizational skill were invaluable to the research and, eventually,
this volume. The network drew together researchers from the ICDD, the Society,
Work and Development Institute (SWOP) in Johannesburg, South Africa, the
Tata Institute of Social Science (TISS) in Mumbai, India, the University of
Campinas, Brazil, and selected others. The aim was to research how the gov-
ernments of the emerging economics of India, Brazil and South Africa were
responding to social and economic insecurity through social assistance and
public work programmes. At the same time we looked at the role of civil
society and trade unions in formulating and implementing such policies, as
well as their own strategies to counter insecurity.
The network met four times: at Kassel University in April 2010, in
Mumbai in December 2010, in Johannesburg in April 2011, and in Campinas
in November 2011. In all, 46 papers were presented. It was a collaborative
approach to research and the circulation of knowledge that guided the network
and led to the production of this volume. We are grateful to all the partici-
pants at these workshops as they were all part of the development of our
argument about how insecurity affects people in the South and the building of
new spaces through which insecurity could be countered.
Fourteen articles were selected from these workshops and substantially
rewritten under the guidance of the editors and section editors. Three themes
were identified:

 Urban and rural livelihood strategies: informal clothing, recycling, street

vendors and the production of charcoal in rural areas
 State responses to insecurity: employment guarantee schemes and cash
transfers
 Acknowledgements xv
 Alternative paths to development: green jobs, Lulism, the solidarity economy
and cooperatives.

We are very grateful that Edward Webster and Sharit Bhowmik handed over
the editing of this volume to us; with faith in our ability, and at the same time
working with us when needed. We also have to thank their institutions,
the Society Work and Development Institute (SWOP) at the University of the
Witwatersrand and the Tata Institute of Social Science at Mumbai University,
respectively, for their time.
At various times we were supported financially and administratively by
various organizations. They are:

 The International Centre of Development and Decent Work (ICDD) at

the University of Kassel funded by the German Federal Ministry for
Economic Cooperation and Development (BMZ) through the German
Academic Exchange Service (DAAD)
 The Tata Institute of Social Sciences (TISS) Mumbai
 The Society Work and Development Institute (SWOP) at the University of
the Witwatersrand
 The Centre of Trade Union Studies and Labour Economy of Economic
Institute (CESIT) at the State University of Campinas, Brazil
 The Department of Sociology at the University of São Paulo
 The Self-Employed Women’s Association in Ahmedabad, India
 The Friedrich Ebert Stiftung South Africa country office in Johannesburg.

Without the commitment, support and analytical input of Mouleshry Vyas

(TISS) and Jacklyn Cock (SWOP) – editors of the first and third section of
this volume – editing this book would have been much more difficult. We are
also thankful for the patience, dedication and immense experience with which
Karin Pampallis copy-edited the draft manuscript.
Both editors made an equal contribution to the content and substance of
this book, and are listed in reverse alphabetical order.
Khayaat Fakier
Ellen Ehmke
Acronyms and abbreviations

ABCD Cities of Santo André, São Bernardo, São Caetano and

Diadema [the industrial belt of São Paulo, Brazil]
ABT Brazilian Association of Telemarketing
AFSUN African Food Security Urban Network
AIDS Acquired Immune Deficiency Syndrome
ANC African National Congress [South Africa]
APSEZ Adani Port and Special Economic Zone [India]
ARV Anti-retroviral
BEE Black economic empowerment
BF Bolsa Familia [Brazil]
BHU Bombay Hawkers Union
BIG Basic Income Grant
BMC Brihanmumbai Municipal Corporation [Mumbai, India]
BNDES National Bank for Economic and Social Development [Brazil]
BPC Benefício de Prestação Continuada [social pension scheme,
Brazil]
BSM Brasil Sem Miséria
CAAP Centro Andino de Acción Popular [Ecuador]
CAIB Cámara Argentina de Indumentaria de Bebés y Niños
CBD Central business district
CCT Conditional cash transfer
CICOPA Comité International des Coopératives de Production et Arti-
sanales (International Organisation of Industrial, Artisanal
and Service Producers’ Cooperatives)
CLAES Centro Latino Americano de Ecología Social [Ecuador]
CMT Cut, make and trim
COPAC Cooperative and Policy Alternative Centre [South Africa]
COSATU Congress of South African Trade Unions
CPGL Coastal Power Gujarat Limited
CPRC Chronic Poverty Research Centre [University of Manchester,
UK]
CSG Child Support Grant
CSO Civil society organization
 Acronyms and abbreviations xvii
CUT Central Única dos Trabalhadores (Central Workers’ Union)
[Brazil]
CWP Community Work Programme [South Africa]
DBSA Development Bank of Southern Africa
DCoG Department of Co-operative Governance [South Africa]
DG Disability Grant
DoSD Department of Social Development [South Africa]
ECHA European Chemicals Agency
ECLAC [United Nations] Economic Commission for Latin America
and the Caribbean [also known as CEPAL, Comisión
Económica para América Latina y el Caribe]
EIA Environmental Impact Assessment
EIU Economist Intelligence Unit
EPWP Extended Public Works Programme [South Africa]
EU European Union
FAO Food and Agriculture Organization
FAT Fundo de Amparo ao Trabalhador (Workers’ Support Fund)
[Brazil]
FBO Faith-based organization
FDI Foreign Direct Investment
FEWS NET Famine Early Warning Systems Network
FPM Full-package manufacturer
GAPL Gujarat Adani Port Limited
GDP Gross Domestic Product
HBW Home-based worker
HIV Human Immunodeficiency Virus
HSRC Human Sciences Research Council [South Africa]
ICDD International Centre for Development and Decent Work
[University of Kassel, Germany]
ICDS Integrated Child Development Scheme [India]
ICO Inner City Office [renamed the JDA]
ICT Information and communication technology
IFC International Finance Corporation
IGBE Instituto Brasileiro de Geografia e Estatística (Brazilian
Institute of Geography and Statistics)
IIASA International Institute for Applied Systems Analysis
ILC International Labour Conference
ILO International Labour Organization
IMF International Monetary Fund
INBAR International Network for Bamboo and Rattan
ISSE Information System on Solidarity Economy
[Brazil]
ITUC International Trade Union Confederation
JDA Johannesburg Development Agency [formerly the ICO]
KMVS Kutch Mahila Vikas Sangathan [India]
xviii Acronyms and abbreviations
KVSS Kachra Vahatuk Shramik Sangh (Waste Transportation
Workers’ Union) [Mumbai, India]
LEARN Labour Education and Research Network [India]
LGBTI Lesbian, Gay, Bi- and Transgender Intersex (individuals)
LMKS LEARN Mahila Kamgar Sangathana [LEARN Women
Workers’ Union]
LSE London School of Economics
MADER Ministério da Agricultura e Desenvolvimento Rural
[Mozambique]
MASS Machimar Adhikar Sangharsh Sangathan [a local fishing
union, India]
MCGM Municipal Corporation of Greater Mumbai
MDS Ministry for Social Development and the Fight Against
Hunger [Brazil]
MEGA Maharashtra Employment Guarantee Act [India]
MFNS Ministry for Food and Nutritional Security [Brazil]
MGNREGA Mahatma Gandhi National Rural Employment Guarantee
Act [India, also known as NREGA]
MGNREGS Mahatma Gandhi National Rural Employment Guarantee
Scheme [India, also known as NREGS]
MHUPA Ministry of Housing and Urban Poverty Alleviation
[India]
MICOA Ministério para Coordenação da Acção Ambiental
[Mozambique]
MIDUVI Ministerio de Desarrollo Urbano y Vivienda (Ministry for
Urban Development and Housing) [Ecuador]
MMU Mumbai Municipal Union
MSF Médecins sans Frontières
MSW Ministry of Social Welfare [Brazil]
MW Megawatt
MZN Mozambican metical (plural meticais) [unit of currency]
NCEUS National Commission for Enterprises in the Unorganized
Sector [India]
NFF National Fishworkers Forum [India]
NFFW National Food For Work [programme; India]
NGO Non-governmental organization
NPC National Planning Commission [South Africa]
NRI Natural Resources Institute [UK]
NTAE Non-traditional agricultural export
NTFP Non-timber forest products
NTUI New Trade Union Initiative [India]
NUMSA National Union of Metalworkers of South Africa
OAP Old age pension
OECD Organization for Economic Cooperation and Development
OWS Occupy Wall Street
 Acronyms and abbreviations xix
PAA Programa de Aquisição Alimentos (Feeding Programme)
[Brazil]
PAB Piso da Atenção Básica (Primary Health Care Limit) [Brazil]
PAC Accelerated Growth Programme [Brazil]
PBF Bolsa Família Programme [Brazil]
PEA População economicamente ativa (economically active
population) [Brazil]
PETI Programa de Erradicação do Trabalho Infantil (Programme
for the Eradication of Child Labour) [Brazil]
PIL Public Interest Litigation
PT Workers Party (Partido dos Trabalhadores) [Brazil]
PPP Purchasing parity power
Pronatec Programa Nacional de Acesso ao Ensino Técnico e Emprego
(National Programme of Access to Technical Training and
Employment) [Brazil]
Prouni Programa Universidade para Todos (University for All
Programme) [Brazil]
PSDB Party of Brazilian Social Democracy (Partido da Social
Democracia Brasileira)
PT Partido dos Trabalhadores (Workers’ Party) [Brazil]
PUCL Peoples Union for Civil Liberties [India]
RB&P Retirement Benefits and Pensions
Rio+20 Conference on Sustainable Development, July 2012
RMSP Metropolitan Region of São Paulo
R$ Real (pl. reais) [modern Brazilian unit of currency; old Real =
Rs$]
Rs Rupees [Indian unit of currency]
RSA Republic of South Africa
RVA Rabula Volunteers Association [South Africa]
SACP South African Communist Party
SACTWU South African Clothing and Textile Workers Union
SALDRU Southern Africa Labour and Development Research Unit
SAMWU South African Municipal Workers’ Union
SARS South African Revenue Service
SEECC Solidarity Economy Education and Communication
Cooperative [South Africa]
SENAES National Secretariat of Solidarity Economy [Brazil]
Senarc Secretaria Nacional de Renda de Cidadania (National
Secretary for Citizens’ Income) [Brazil]
SENPLADES Secretaría Nacional de Planificación y Desarrollo (National
Secretariat of Planning and Development) [Ecuador]
SER Standard employment relationship
SEWA Self-employed Women’s Association [India]
SEZ Special economic zone [India]
SOIVA Sindicato Obrero de la Industria del Vestido y Afines [Argentina]
xx Acronyms and abbreviations
SSR Standard Schedule of Rates [India]
SWM Solid waste management
TB Tuberculosis
TVC Town Vending Committee
UAC Utilities, agencies and corporatized entities
UI Unemployment Insurance
UK United Kingdom
UMS Ujjas Mahila Sangathan [India]
UN United Nations
UNCSD United Nations Conference on Sustainable Development
[Rio+20]
UNDP United Nations Development Programme
UNEP United Nations Environment Programme
UP Uttar Pradesh [state in India]
UPA United Progressive Alliance [India]
US(A) United States (of America)
USAID United States Agency for International Development
USD United States Dollar
VAT Value-added tax
WEF World Economic Forum
WFDP Waterfront Development Project [Adani Group, India]
WFP World Food Programme
YMC Yusuf Meharally Centre [India]
YUVA Youth for Unity and Voluntary Action [India]
ZAR South African Rand [unit of currency]
1 Work, livelihoods and insecurity
in the South
A conceptual introduction
Edward Webster and Sharit Bhowmik

It is often argued that knowledge flows unilaterally from the Global North to
the Global South.1 Indeed, Jimi Adesina (2012) argues that even progressive
Northern scholars seek to induce ‘epistemic dependence’ by expropriating the
voice and experiences of the South. While the North clearly continues to
dominate the production of knowledge, we believe a more interactive
approach is emerging, in the form of an exchange model where knowledge is
co-constructed (Kiem 2012).
We would argue that this volume is an example of the co-construction of
knowledge production. It is the result of a three-year research project of
scholars from the International Centre for Development and Decent Work
(ICDD) network, titled ‘Work, Livelihood Strategies and Insecurity in the
Twenty-first Century: Comparing India, Brazil and South Africa’. The aim
was to research how the governments of the three countries were responding
to social and economic insecurity through social protection and public work
programmes, and the role of civil society and trade unions in formulating and
implementing these policies. The project was initiated by the ICDD host
university in the North in Kassel, Germany, and driven by two Southern
scholars, one from India and the other from South Africa. It has given voice
to Southern scholars and built the capacity of emerging Southern scholars
through its PhD programme. It has contributed to new thinking on social
policy that not only circulates between Southern countries, but also con-
tributes to new thinking on Northern welfare states and their declining trade
unions. These concepts, knowledge and policy innovations are now travelling
in three directions – from North to South, from South to North, and between
Southern countries.
This introduction is divided into three parts. In the first part we introduce
the concept of insecurity through a theoretical reconstruction of Karl Polanyi
(2001 [1944]), challenging the hegemonic Northern interpretations of his
theory by contrasting the Great Transformation in the South with that of the
North. In the second part, we ground the network in a historical and cross-
national comparison, identifying similarity among and difference between the
three countries. In the third part, we introduce the three themes of the book,
which may be summarized as:
2 Edward Webster and Sharit Bhowmik
 urban and rural livelihood strategies: informal clothing, recycling, street
vendors and the charcoal producers in rural areas;
 state responses to insecurity: employment guarantee schemes and conditional
cash transfers;
 alternative paths to development: green jobs, Lulism, the solidarity economy
and cooperatives.

Armando Barrientos and David Hulme (2009) suggest that a ‘quiet revolution’
is taking place in social policy in the South. They argue:

Social protection is now better grounded in development theory, and

especially in an understanding of the factors preventing access to eco-
nomic opportunity and leading to persistent poverty and vulnerability.
The initially dominant conceptualization of social protection as social
risk management is being extended by approaches grounded in basic
human need and capabilities.
(Barrientos and Hulme 2009: 439)

In practice this has involved the ‘rapid up-scaling’ of ‘programmes and policies
that combine income transfers with basic services, employment guarantees or
asset building’ (Barrientos and Hulme 2009: 451).
Many of these programmes and policies have been dismissed by the left as
neo-liberal (Barchiesi 2011; Satgar 2012). The question raised by our research
is whether, as Ferguson (2009: 173) provocatively puts it:

Can we on the left do what the right has, in recent decades, done so
successfully, that is, to develop new modes and mechanisms of govern-
ment? And (perhaps more provocatively) are the neoliberal ‘arts of gov-
ernment’ that have transformed the way that states work in so many
places around the world inherently and necessarily conservative, or can
they be put to different uses? To ask such questions requires us to be
willing at least to imagine the possibility of a truly progressive politics
that would also draw on governmental mechanisms that we have become
used to terming ‘neoliberal’.

That is the challenge posed in this volume. It is a challenge to government,

civil society, policy makers and all those concerned with overcoming economic
and social insecurity in the Global South.

Part I: economic and social insecurity: a Southern perspective

We live in an age of insecurity. As the late Tony Judt (2010: 33) wrote,

we have entered the age of insecurity – economic insecurity, physical

insecurity, political insecurity. The fact that we are largely unaware of this
 Work, livelihoods and insecurity 3
is small comfort: few in 1914 predicted the utter collapse of their world
and the economic and political catastrophes that followed. Insecurity
breeds fear and fear of change, fear of decline, fear of strangers and an
unfamiliar world – corroding the trust and interdependence on which
civil society rests. The choice will no longer be between the state and the
market, but between two sorts of state. It is thus incumbent upon us to
reconceive the role of government. If we do not others will.

An aspect of insecurity ignored by Judt is the rapid deterioration of the

environment and the challenges posed by climate change. This is dramatically
illustrated in Claudia Levy and Brigitte Kaufmann’s case study of southern
Mozambique where agro-pastoralists have turned to charcoal production as a
livelihood strategy resulting in deforestation and further destruction of their
livelihoods. This commodification of nature is a growing phenomenon in
Brazil, India, South Africa and other Southern countries. A sustainable
developmental path will require livelihood strategies that do not further
exacerbate insecurity.
Above all, the North, as Comaroff and Comaroff (2012: 14) argue,

is now experiencing those practical workings ever more palpably as labor

markets contract and employment is casualized, as manufacture moves
away without warning, as big business seeks to coerce states to unmake
ecolaws, to drop minimum wages, to subsidize its infrastructure from
public funds, and to protect it from loss, liability, and taxation. … Which
is why so many citizens of the West – of both labouring and middle
classes – are having to face the insecurities, even the forced mobility and
disposability, characteristic of life in much of the non-West.

Insecurity is the theme of Guy Standing’s Work after Globalization: Building

Occupational Citizenship. He argues that the restructuring of the global
market economy has created a new class, which he calls the ‘precariat’:

They flit between jobs, unsure of their occupational title, with little labour
security, few enterprise benefits and tenuous access to state benefits. They
include the most fortunate of the vast informal economy. … the precariat
is the group that has grown the most. … [It] comprises a disparate group
in non-regular statuses, including casual workers, outworkers and agency
workers.
(Standing 2009: 109–10)

But, argues Standing (2009: 239),

the political consequences of a globalizing labour market based on insecurity

and inequality are frightening. Much of the remnants of the industrial
working class in rich countries have drifted into the precariat, some have
4 Edward Webster and Sharit Bhowmik
fallen into the detached albumenized stratum. As they have done so, they
have turned politically to the right … [deserting] traditional parties of the left.

Faced with insecurity, persons tend to retreat into the familiar – their country,
their neighbourhood, their homes, their family and their religion – and
sometimes their ‘race’. Indeed, at times when the world faced similar levels of
insecurity in the past, we saw the rise of some of the worst atrocities of
human history. One author who reflected on such times was Karl Polanyi,
who wrote his major work at the end of World War Two. At the forefront of
his mind was the rise of fascism. Why do people turn to fascist leaders, and
under what conditions does fascism become salient as a political ideology? It
is no wonder that people are returning to Polanyi in order to make sense of
the response to current insecurity.
In his classic study of the industrial revolution, or what he called the Great
Transformation, Polanyi (2001 [1944]) showed how society took measures to
protect itself against the disruptive impact of unregulated commodification.
He conceptualized this as the ‘double movement’ whereby ever-wider extensions
of free-market principles generated countermovements to protect society.
Against an economic system that dislocates the very fabric of society, ‘the
social countermovement’, he argued, ‘is based on the varying support of those
most immediately affected by the deleterious action of the market – primarily
but not exclusively, the working and the landed classes – and using protective
legislation, restrictive associations, and other instruments as its methods’
(Polanyi 2001 [1944]: 138–9).
During the Great Transformation, early capitalism in the industrialized
countries essentially constructed regimes of control around market despotism.
The whip of the market was used to discipline workers. If they did not perform,
they were dismissed. Since workers were treated like commodities – as
objects – they lacked voice in the workplace and hence there was no regulation
of conditions at work. However, as Polanyi showed, society took measures to
protect itself against the disruptive impact of unregulated commodification.
Society responded by making certain demands on employers and the state.
The fear of communism and the strength of labour after World War Two
encouraged the countries of the North to strike a historical compromise
between capital and labour. New regimes of control were established based on
the regulation of working hours, the setting of minimum wages, putting in
place health and safety standards, and mechanisms for trade unions to organize
and bargain collectively over wages – in short, various ways in which labour is
decommodified and made less insecure. Central to this shift is the emergence
of a form of counter-power to the power of management.
As the historical compromise of the North came under pressure in the
1970s and 1980s – the Second Great Transformation – so did these regimes of
control. Burawoy (1985) argues that these made way for what he calls hege-
monic despotism. This implies that the institutions of collective bargaining are
now utilized to enter into a process of concession bargaining, where workers
 Work, livelihoods and insecurity 5
agree to the recommodification of their labour under the threat of factory
closures or lay-offs. The ideology of globalization legitimizes this.
However, the Northern class compromise did not involve the colonies.
There, the possibility of establishing hegemonic forms of control was con-
strained by coercive labour practices. The workplace regime was often based
on what Burawoy (1985) calls colonial despotism. Because colonialism only
partially penetrates society and only partially proletarianizes its subjects,
options outside wage labour are still available to disgruntled workers. Hence
in South Africa, coercive measures, including compounds and restrictive
contracts of employment, are used as a form of control. The importance of
‘race’ in the occupational hierarchy and supervision should not be under-
estimated in the construction of this regime, as vividly illustrated in the South
African case (Von Holdt 2003).
Similarly, partial proletarianization characterizes countries that have
undergone prolonged colonization (Wolpe 1972). It could be argued that
Lenin’s propositions on multistructural socio-economic formations are more
relevant to India, Brazil and South Africa than Polanyi’s formulation of the
European transition. In colonial situations, as Lenin argued, a number of
socio-economic formations co-exist (Lenin 1920, cited in Lowy 1981: 65). In
other words, capitalism is only one such formation. In India, for example,
primitive accumulation exists alongside capitalism. In addition the caste
system has excluded the lower castes (especially the scheduled castes, formerly
called the untouchables) from the Great Transformation.
In the South there has been a transition to capitalism, but it has been
uneven. This is not merely because of the coexistence of different socio-economic
formations but also because this transformation happens within a capitalist
structure. The existence of urban informal employment may be an innovative
response to insecurity, but it also emphasizes the widespread use of manual,
unskilled labour in the production process. Instead of contributing to a
Northern-type transformation, it leads to the reproduction of traditional
occupations within the urban informal sector. For example, the home-based
workers in India are all from the lower castes who used to perform similar
manual work in the rural sector (Breman 2010). Another example comprises
conservancy workers (or waste-removal workers), who are from the same
scheduled castes that used to perform similar activities in the villages (Vyas
2013).
In effect, informal employment reproduces traditional inequalities. A classic
example is the textile industry. When it comprised large textile mills, it had
workers from different castes and regions. Since 1983 the mills have closed
and production has moved to the power-loom sector. These looms are similar
to hand looms, but run on electricity. They represent a much lower level of
technology than the mills. As a consequence, the textile industry is being
increasingly informalized, returning to traditional caste-based weaving com-
munities among Hindus and Muslims. When their products were replaced by
mill-made goods, the traditional weavers became agricultural labourers; now
6 Edward Webster and Sharit Bhowmik
they are returning to their traditional weaving occupations, and constitute a
large proportion of the power-loom workers.
As a result of this incomplete transformation, countermovements in the
South often dovetailed with struggles for national liberation. Once this was
achieved, post-colonies were faced with the dual problems of demands for
changes both in the workplace regime and in society. Possibilities for estab-
lishing hegemonic regimes of control are thus constrained. In Africa and
Asia, postcolonial states often accord workers certain rights and guarantees,
but the majority of the population are excluded from this as a rule, since they
work in the informal sector or are unemployed. Labour movements are often
integrated into the postcolonial state, in what could be called a form of state
corporatism. When this is challenged by neo-liberal globalization, usually in
the form of a ‘structural adjustment programme’ imposed by the Interna-
tional Monetary Fund (IMF), the labour movement is one of the first to
come under attack, and often ends up in opposition to their former ‘com-
rades’ from the liberation struggle. State corporatism comes under pressure in
the name of ‘labour market flexibility’ and the assumption is now that those
in formal employment are part of a labour elite.
Polanyi (2001 [1944]) uses a pendulum as a metaphor to describe the drive
to marketization and society’s attempt to protect itself against the disruptive
impact of liberalization. The Polanyian pendulum is illustrated in Figure 1.1,
and the differences between the North and South are highlighted. Indeed, in
the ‘pointedly provocative’ subtitle to their book, Theory from the South: How
Euro-America is Evolving toward Africa, Comaroff and Comaroff (2012: 12)
suggest that ‘it is the south that often is first to feel the effects of world-historical
forces, the south in which radically new assemblages of capital and labor are
taking shape, thus to prefigure the future of the global north’.

Part II: India, Brazil and South Africa: a contextual comparison

In South Africa, Brazil and India,2 as with many other developing countries,
the first Great Transformation took a colonial form, and was accompanied by
a contradictory process of destruction and reconstruction of many aspects of
indigenous society, including land dispossession and racial oppression. Likewise,
the Second Great Transformation takes place under specific conditions in the
postcolonial world. While Polanyi (2001 [1944]) argued that the countermovement
entailed the ‘protection’ of society, this presupposes the social cohesion, his-
torically established, of the global North. However, in societies that are still
ravaged by the uneven and dislocating effects of colonialism, the challenge is
to construct a new democratic social order in the face of neo-liberal globalization.

India and South Africa

In spite of historic similarities between India and South Africa, there has
been, until recently, little comparative scholarship. Fortunately this is
 The Polanyian Pendulum
Insecurity Security

First G re a t T ra n sfo rm a tio n

19th cen tu ry

N o rth
Rapid marketization South
and commoditization Colonial despotism
in the workplace
Uneven development
of the South

C o u n te r M o v e m e n t
2/3 of the 20th century

N o rth
South Emergence of
National liberation workplace hegemony
movements. and construction of a
Leads to political welfare state
independence and
state corporatism

Se cond G re a t T ra n sfo rm a tio n

1970s onwards

South N o rth
Structural adjustment Rapid liberalization
market despotism and erosion of the
welfare state

Rapid commoditization of labour,

money and nature

C o u n te r M o v e m e n t?
1990s onwards

South N o rth
Challenge to build a Incremental
counter-movement counter-movement
without a welfare in the post-Seattle
state. Emergence of period
counter movement
from above and below

Figure 1.1 The Polanyian pendulum.

Source: authors with Ellen Ehmke
8 Edward Webster and Sharit Bhowmik
changing and a number of studies on South Africa and India are providing
an alternative body of comparative studies (Williams 2008; Hofmeyr and
Williams 2011; Uys and Patel 2012).

Beyond the obvious similarities that India and South Africa share, such
as common histories of British imperialism, iconic liberation movements,
successful democratic consolidation in two heterogeneous societies and
two of the most remarkable leaders of the 20th century (Mahatma
Gandhi and Nelson Mandela), scholars are also exploring the less
obvious comparisons.
(Hofmeyr and Williams 2011: 11)

A suggestive example is the pattern of labour migrancy and urbanization. In

both India and South Africa, the dominant pattern has been migration by
single males who leave their families in villages, return there periodically, and
generally leave the city when jobs end through dismissal or old age. Bonner
(2011: 88) writes:

Like Bombay, [Johannesburg] was the most ethnically/regionally hetero-

geneous urban centre in South Africa. Like Bombay, migrancy and more
settled urban life existed side by side. Like Bombay, Calcutta and other
Indian cities, a measure of ethnic occupational clustering occurred among
its black population.

But here the similarity ends. As Sumit Sakar (2007: 182) argues,

survival was much more difficult in South Africa, because (unlike India,
except to some extent in the European tea plantations in the then under-
populated province of Assam) so much of the better land was ruthlessly
grabbed by Boer and British farmers. The African rural population was
pushed back into over-populated ‘homelands’. The bulk of the countryside
in India remained firmly indigenous, with only a thin scattering of European
officials who would return to England after their Indian careers were over.

Indeed the contrasts become quite striking when one probes further into these
two very different experiences of colonialism.
The most obvious difference was the much higher level of both legal and
extra-legal coercion deployed to create an African underclass in white-domi-
nated cities. This includes the pass laws first introduced on the mines in 1896,
the labour tax in the Glen Grey Act, and the Land Act of 1913 which froze
African land ownership at a mere 13 per cent of the total land area (Webster
1978: 10). In India, however, Sakar (2007: 182) argues, this blatant use of
force and legal coercion was generally absent, with the exception of recruit-
ment for plantations on an indentured basis, in Assam and overseas. The
result was that Indian migrants were able to sustain a rural base as late as the
 Work, livelihoods and insecurity 9
1960s, which provided ‘invaluable security in times of unemployment, severe
economic distress, old age and the like’ (Patel 1963: 37, in Bonner 2011: 77).
Put differently, a low-wage migrant labour system evolved and reproduced
itself in the Indian context without the repressive institutional apparatus evident
in South Africa.
A second difference, writes Bonner (2011: 78–9), is that

residential segregation, which with few exceptions was the rule for 20th
century South Africa, was largely absent in Indian cities, a difference that
reflected the different places in the colonial order occupied by India and
South Africa. In contrast to India, South Africa was a colony of white
settlement. … South African governments always saw the cities as likely
sites for the subversion of white supremacy, either through racial mixing
in slums or so-called black ‘detribalisation’.

The presence of a settler society with a large number of poor whites imposed
radically different constraints on and opportunities for the processes of
vibrancy and immigration to that experienced in the Indian context. In par-
ticular it led to a highly regulated and segmented labour market with whites,
and to a lesser extent coloureds and Indians, in the primary labour market,
with Africans in casual jobs without any security (Webster 1985: 195–216). In
addition to this racially defined job protection, coloureds, Indians and Africans
were excluded from participation in a range of economic activities, thus
restricting the development of an informal economy.
There is a third and quite fundamental difference in the pattern of
migrancy in these two countries. Although male migrancy was equally pro-
nounced in both countries, in South Africa it is credited with causing chronic
family instability and a host of associated social ills, whereas in India family
life survived relatively intact (Bonner 2011: 83–8). ‘The overwhelming
majority of the wives of Indian male migrants to the towns’, writes Bonner
(2011: 84), ‘remained firmly in the bosom of their joint families and rooted in
rural homes.’
The result of this varying history is two striking differences between the
structure of the labour market in India and South Africa. The first is that in
South Africa, unlike India, the informal sector does not provide an easy entry
point for self-employment or into the informal sector. As Kate Philip (2010:
3) argues,

most manufactured goods or processed goods bought by poor people

are mass produced in the core economy, and are easily accessible in even
the most remote spaza shops. This limits the opportunities for small-scale
manufacturing of products targeting poor consumers – which is the typi-
cal target market for entry-level enterprise. The lack of opportunities in
small-scale manufacturing contributes to the strong bias towards trading
in South Africa’s informal sector.
10 Edward Webster and Sharit Bhowmik
Second, the limited access of black people in South Africa to land has
deprived them of the kind of economic ‘sponge’ that rural Indians have. Rural
areas in South Africa are unable to provide a level of subsistence for large
numbers of people who cannot find other employment. Philip (2010: 3–4)
concludes:

[In South Africa] two of the most important avenues through which poor
people typically engage in economic activity and enter into markets are
severely constrained. This makes poor people unusually dependent on
wage remittances or social grants. This dependence is structural. It is not
a state of mind or a function of a lack of entrepreneurship – but it certainly
contributes to the lack of economic dynamism and to the levels of economic
desperation that characterizes many of South Africa’s poorest areas.

In sum, a striking difference between India and South Africa lies in the
structure of the labour market. South Africa has an official unemployment
rate of 26.5 per cent (Statistics South Africa 2009). However, when dis-
couraged work seekers are included, then the rate increases to 38.3 per cent,
with only an estimated two million persons in the informal economy (15 per
cent). In India, however, the reverse applies, as Table 1.1 illustrates. India has
a relatively low unemployment rate (3.4 per cent), with 93 per cent of the
workforce in the informal economy (Arnal and Förster 2010: 15).

Table 1.1 Key figures on Brazil, India and South Africa, 2008 or latest
year available
Main variable Brazil India South Africa
Macro-economic
GDP growth (1990–2008) 5.1 6.1 3.1
GDP per capitaa 9,517 2,721 9,343
FDI (1990–2008)b 2,888 123 120
Labour market outcomes
Employment to population ratio 68.2 58.2 42.2
Unemployment rates 7.4 3.4 23.8
Living standards
Population in millions 191,972 1,181,412 49,688
Poverty incidencec 10.6 73.9 29.4
Income inequalityd 0.55 0.38 0.70
a
Gross Domestic Product (GDP) per capita is measured in Purchasing Parity Power
(PPP) constant, 2005 international USD.
b
Foreign Direct Investment (FDI) corresponds to the inward stock. The values are in
thousand million current USD.
c
Poverty incidence is measured by the share of the population living under USD2 per
day. National estimates vary considerably from these international figures.
d
Income inequality is measured by Gini coefficient of per capita household income or
consumption.
Source: Arnal and Förster (2010: 15).
 Work, livelihoods and insecurity 11
Brazil and South Africa
Unlike India and South Africa, comparisons between Brazil and South Africa
are common (Seidman 1994; Marx 1998). Indeed, the Congress of South
African Trade Unions (COSATU 2012: 37) has called for its own ‘Lula
Moment’, a reference to President Luiz Inácio ‘Lula’ da Silva’s second term
in office from 2006 to 2010, when more than 17 million formal-sector jobs
were created and inequality reduced.3 Historically there are striking similarities
between these two countries: they share similar settler colonial histories, both
have a legacy of sharply racialized inequality, and both share authoritarian
pasts. But, as Anthony Marx (1998) observes, South Africa built a ‘white
nation state’ on the exclusion of blacks, while Brazil allowed formal inclusion,
retaining significant informal racial discrimination.
In both Brazil and South Africa, working-class movements challenged
authoritarian rule in the 1970s. The economy underwent a pattern of rapid
transformation of the labour process, a despotic system of labour control, a
lack of social infrastructure in the community, and restricted access to poli-
tical power. These conditions led to the rise and rapid growth of militant
social movement unionism (Seidman 1994). In both cases, militant labour
played a crucial role in the transition to democracy: in South Africa leading
to the victory of the national liberation movement, the African National
Congress (ANC), and in Brazil to the victory of the Workers Party (PT)
under the leadership of Lula.
Much of the credit for Brazil’s steady growth rates, Seidman argues, goes to
former president Fernando Henrique Cardoso who implemented orthodox
macroeconomic policies. Once in power, the Workers Party shifted to what
Seidman (2010: 94) describes as ‘progressive pragmatism’, where activists sought
‘pragmatic solutions to everyday urban problems, rather than take broader
ideological stances’. Departing from standard neo-liberal orthodoxy, the state
actively intervened in facilitating Brazil’s new development path (Romano-
Schutte 2013). At the centre of their development strategy were strong public
banks, including opening up access to credit for the poor and for micro and
small enterprises, strategic investments and a comprehensive industrial policy.
One of the striking differences between the two countries is the significant
amount of Foreign Direct Investment (FDI) that Brazil attracted between
1990 and 2008 – current USD 2,888 thousand million, in comparison with
South Africa’s current USD 120 thousand million (Arnal and Förster 2010).
Importantly the Lula government introduced a 6 per cent speculative FDI and
excluded productive capital from paying this tax. It also required that multi-
national companies invest in research and development (Romano-Schutte
2013). At the same time ‘global GDP was growing at close to 4 per cent on
average a year’ (Netshitenzhe 2013). As Joel Netshitenzhe (2013) argues,

the major locomotives of this growth, China (10 per cent) and India
(8 per cent), were also gobbling up commodities that Brazil has in
12 Edward Webster and Sharit Bhowmik
abundance; and there were expanding opportunities in Latin America
itself and Africa. In other words, Brazil’s economic performance of about
4.3 per cent a year in that period cannot be divorced from dynamics of
the global economy.

Of the three countries, only Brazil has been able to reduce inequality. Impor-
tantly, it has been able to raise the rate of increase in income of the lowest
10 per cent of its population at a faster rate than the top 10 per cent
(Romano-Schutte 2013). As the poor got richer, the rich got less so (Seidman
2013). While the vastly expanded conditional cash transfer programme, Bolsa
Familia, was crucial to the country’s success in reducing poverty during President
Lula’s second term, these payments to the poor have, Gay Seidman (2010: 88)
argues, been carried out in the context of a broader, rights-based approach to
social protection. Furthermore, for the past decade or more, Brazil’s government
has improved its ability to collect taxes, enforced basic labour laws, raised the
minimum wage, and increased social protection for all Brazilians.
An innovation introduced by the Lula government ties the pension to the
minimum wage, so whenever the minimum wage is increased so are the pen-
sions. This stimulated aggregate demand as well as creating a social floor as a
moral benchmark. In order to ensure compliance with these new regulations,
a more interventionist national Department of Labour emerged. Instead of
focusing only on punishing non-compliance, compliance was incentivized by
tying it to tax rebates (Seidman 2013).
We now turn to the themes explored in this volume.

Part III: main themes in the volume

From decent work to livelihood strategies

In development discourse, it was assumed in the 1950s and 1960s that, following
modernization theory, traditional economic activities would be transformed
into dynamic industries that would absorb the rapid flow of people to the
cities. However, this did not happen. Instead the urban populations of the
developing world grew dramatically, surviving on small-scale informal eco-
nomic activities rather than on formal employment. The concept of the
‘informal sector’ emerged to describe the unregulated and invisible activities
used by the urban poor of the Third World to support themselves (Bhowmik
2009). The urban poor were not unemployed, these studies argued; they were
working, although often for low and irregular returns.
Originally the informal sector concept was applied to the self-employed
urban poor in developing countries. In 2003 the International Conference of
Statisticians expanded the definition of the informal economy from enterprises
that are not legally regulated to employment relationships that are not legally
regulated or protected. ‘Informal employment’ is now defined as being without
formal contracts, worker benefits or social protection. This includes:
 Work, livelihoods and insecurity 13
 self-employment in informal enterprises: workers in small unregistered or
unincorporated enterprises, including employers, own-account operators
and unpaid family members;
 wage employment in informal jobs: workers without formal contracts,
worker benefits or social protection for formal or informal firms, for
households or with no fixed employer, including employees of informal
enterprises and other informal wage workers such as casual or day
labourers, domestic workers, unregistered or undeclared workers and tem-
porary or part-time workers as well as industrial outworkers (also called
home-workers) (Chen 2005: 7–8).

There are two striking features of informal work. First, women and men are
creating jobs but, second, they are not ‘decent’ jobs. The concept of ‘decent
work’ was developed by the International Labour Organization (ILO) in 1998
as a way of promoting opportunities for women and men to obtain productive
work, in conditions of freedom, equality, security and human dignity (Ghai 2003).
The concept applies not only to workers in the formal economy but also to
unregulated wage workers, the self-employed and home-workers. Decent work
emphasizes the importance of workers engaging in social dialogue, where they
can present their views, defend their interests and negotiate wages and working
conditions with employers and authorities (Ghai 2003: 113).
In the first theme of the volume, we identify a range of livelihood strategies
as a response to the growing flexibility of the labour market and long-term
unemployment. Many find livelihoods as street vendors struggling over public
spaces in order to exercise their right to work. Others, often undocumented
immigrants, find work in clothing sweatshops in the inner cities of Johannesburg,
São Paulo and Mumbai or in the ‘electronic sweatshops’ of São Paulo’s call
centre industry where they work in precarious conditions under close surveillance.
Under the impact of privatization, opportunities have arisen for waste recy-
cling (or what is called conservancy work in India), often undertaken by ‘self-
employed proletarians’ or organized into cooperatives. In the rural villages of
southern Africa, under the impact of climate change, agro-pastoralists turn to
the forests to make and sell charcoal as a livelihood strategy. They experience
what Candeias (2004: 34) describes as ‘double precarisation, precarisation of
production and reproduction’.
We identify innovative attempts to organize the self-employed in Dharavi slum
in Mumbai through the Labour, Education and Research Network (LEARN).
However, the South African case study identifies the obstacles in organizing
among low-paid informal workers in the inner city of Johannesburg and the need
to go beyond the traditional trade union in organizing among informal workers.

State responses to insecurity

The growing institutionalization of social assistance as a right through intense
political struggle is the story in all three case countries. ‘This’, James Ferguson
14 Edward Webster and Sharit Bhowmik
(2009: 167) suggests, ‘redefines groups in poverty as citizens (social citizens). A
deepening of democracy follows.’ The Bolsa Familia programme in Brazil is
thought to be the biggest social transfer scheme in the world, and presently
covers some 46 million people at a cost of about 0.4 per cent of GDP (Cichon et al.
2011: 15). The Mahatma Gandhi National Rural Employment Guarantee
Scheme (MGNREGS) in India entitles every rural household one hundred days
of work per year. The budget for this imaginative guarantee of employment in
2006–7 was 0.33 per cent of GDP (Chakraborty 2007). The Community
Work Programme (CWP) in South Africa provides two days a week of public
employment, in a scheme similar to that of the MGNREGS in India.
These emerging welfare regimes are different from the European welfare
state that was constructed around the equal contribution of three pillars:
permanent full-time employment, a strong professional public service and the
nuclear family. Instead, the emerging welfare regimes of the South – what Ian
Gough (2004) calls informal security regimes – rely on informal work as well
as a variety of livelihood strategies such as street trading, the extended family,
and the villages and communities within which they are embedded. However,
these schemes merely temporarily alleviate the conditions of the poor; they do
not enable the poor to escape poverty. Unlike the social assistance schemes in
South Africa and India, the focus of Bolsa Familia is not on providing jobs
for the unemployed poor. Instead this scheme and its predecessors focus on a
combination of income grant and means to enhance ‘human capital’ devel-
opment. This means-tested cash benefit is attached to certain conditions,
mainly school attendance and health checks for children.

Alternative paths to development

A crucial question raised by this volume is whether the governments of these
three countries are subtly shifting away from neo-liberal policies by introducing
innovative social policies. Do these innovations amount to an alternative
development path? Such a path will require an alternative set of economic
policies. COSATU (2012: 40) clearly believes that Brazil has these policies
and has ‘defied conventional economic prescriptions’ to achieve them. ‘They
asserted a central role for the state in the economy,’ COSATU suggests,
‘in terms of driving and financing development. … They put redistribution
of incomes and stimulating demand at the centre of their approach, especially
through raising wage levels and social protection’ (COSATU 2012: 40).
This led to 17 million new formal-sector jobs, minimum wages rose by 67 per cent,
and labour law was enforced by the Department of Labour (Seidman 2010).
As Seidman’s analysis of Brazil suggests, the explanation for Lula’s
successful second term is more complicated than COSATU suggests. Indeed,
in Ruy Braga’s account in this volume of the absorption of unemployed or
informally employed workers into the telecommunications sector, he under-
lines that this work is still seen as precarious, below or just above the minimum
wage.
 Work, livelihoods and insecurity 15
The question posed by Lula’s second term of government is whether Brazil
is breaking with neo-liberalism and beginning to build a social democratic
path in the Global South. Romano-Schutte (2013) calls it a neo-develop-
mental state and focuses on the way it has begun to reconcile the needs of
achieving growth through globalized markets with extensions of political,
social and economic rights.4 Whether it is possible to speak of social democ-
racy in a context of high unemployment and a large informal sector is a
matter for debate. Equally important is the continuing dependence of the
Brazilian economy on extractive exports. Although there has been a significant
decline in the rate of deforestation in the Amazon region, critics maintain that
the Brazilian growth path is not ecologically sustainable.
However, there are also variants of more radical paths, combining notions
of eco-socialism with a solidarity economy. These are discussed in Part III
through case studies of cooperatives in South Africa. The question is whether
this micro and embryonic experiment can be replicated and enlarged. More
significantly, Ecuador has embarked on an ambitious alternative development
path, Buen Vivir, which presents a major challenge to the historically extractive
path so common in the Global South.

Conclusion
Could the innovations in economic and social policy identified in this volume
amount to the beginnings of a Polanyian countermovement? We have sug-
gested that the Global South is characterized by the absence of a Polanyian
countermovement in contrast to the successful countermovement in the form
of the post-World War Two welfare states in the North. Yet the South has not
been passive in the face of colonialism. It has been characterized by anti-
colonial movements, initially in Brazil in the nineteenth century, then in India
and South Africa in the twentieth century. These early movements were driven
by anti-market and socialist demands, and in all three countries communist
parties emerged as central to these struggles.
Harris (2010) and Bowles (2010) suggest that the reforms introduced in the
last two decades in India could be seen as a Polanyian countermovement
from above – a state-driven response aimed at protecting society against the
unregulated market. However, as Kaustav Bannerjee (2011: 9) argues, rights
from above remain merely words on paper, ‘until assertions of these rights by
people from below establishes them in practice’. He describes this as a ‘double
movement from below’.
Polanyi’s (2001 [1944]) work also contains a warning. Insecurity may not
necessarily result in progressive countermovements. It could, and it has, led to
the opposite. Indeed, this was the central preoccupation of Polanyi’s classic
work, namely that the unregulated liberalization of markets between 1919
and 1939 led to the rise of fascism. Although all three countries face the dif-
ficult challenge of reconciling democracy with sharp inequalities, their
response to the economic crisis that began in 2008 has been to deepen the
16 Edward Webster and Sharit Bhowmik
instruments of social protection through democratic means. The evidence in
the chapters that follow shows that even where progress has been made in
reducing inequality, the challenges these countries face demands more dra-
matic action if the economic and social insecurities they meet are to be over-
come. Importantly, the volume identifies new spaces being built on the streets,
in the fields, in the forests, in the factories, in the homes and in sections of the
state. Whether these spaces constitute an embryo of a countermovement to
the ravages of neo-liberalism depends on the will and capacity of the people
of the South.

Notes
1 The ‘Global South’ has replaced ‘Third World’ as a more popular term of use. But
as Comaroff and Comaroff (2012: 45) assert, the label itself is inherently slippery,
inchoate, unfixed; it bespeaks a relationship, ‘not a thing in or for itself; it is a
historical artefact’.
2 The focus of our comparison is on India, Brazil and South Africa. However, in the
course of our research project, examples from two smaller Southern countries –
Ecuador in Latin America and Mozambique in southern Africa – were included.
3 These achievements became strongly associated with the personality of Lula and
have been referred to as a ‘Lula Moment’ or ‘Lulism’. In late 2012, COSATU
called for a ‘Zuma Moment’, in reference to South Africa’s president Jacob Zuma.
But, as Joel Netshitenzhe (2013) suggests, policies do not always travel well from
one context to the other. ‘Pursuit of South Africa’s “Lula Moment” is akin to
Searching for Sugarman. As with the subject of the documentary, American musi-
cian Rodriguez, we have to ask whether the Lula Moment is still alive in Brazil;
and whether the notion itself still enchants and excites’. India is also said to have
begun to speak of a Lula Moment.
4 Sandbrook et al. (2007) identify four cases – Chile, Costa Rica, Mauritius and Kerala
(India) – in which they believe governments have embarked on social-democratic paths.

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Practice and priorities of the National Rural Employment Guarantee Act

in India
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Brazil's strategy against poverty

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Introduction
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The buen vivir in Latin America

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The Lula Moment

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The green economy

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Conclusion – building new spaces

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