Volume II - The Northern Cape Provincial Spatial Development ...

Northern Cape PSDF
Volume 2
D.2.4 INVESTMENT TYPE REQUIRED
Office of the Premier &
Department of Rural Development & Land Reform
December 2011
By integrating the Development Potential Index with the Human Needs Index, municipalities and
settlements and were classified into a Typology for Investment to provide a clearer insight into the
development potential and the development needs of the various local municipalities and
settlements and, as well as the investment policies required to manage urban growth and
development in the province in future. Apart from the town indicators, indices computed for
municipalities (cross‐sectional and temporal) are used as contextual information for providing
further investment guidelines to the various spheres of government on the type and locations for
stimulating economic growth and social advancement. The figure below illustrates the prossess of
defining the appropriate investment types for the municipalities and settlements.
INVESTMENT TYPE REQUIRED IN MUNICIPALITIES
• Investment Typology ‐ Figure D.19
COMPOSITE INDICES
DEVELOPMENT POTENTIAL
HUMAN DEVELOPMENT NEED
INVESTMENT TYPE REQUIRED
COMBINED INVESTMENT TYPE REQUIRED IN
MUNICIPALITIES & SETTLEMENTS
• Investment Typology ‐ Figure D21
INVESTMENT TYPE REQUIRED IN SETTLEMENTS
• Investment Typology ‐ Figure D.20
Figure D.5: Defining the appropriate investment types for the municipalities and settlements.
The PSDF aims to facilitate the employment of the various forms of ‘development capital’ vested
in the province in order to reach its goals and objectives pertaining to sustainable development in
the settlements. The ‘Five Capitals Model’ (Forum for the Future, 2010) suggests the following
capital components in this regard, namely (a) Natural Capital; (b) Human Capital; (c) Social Capital;
(d) Manufactured (Infrastructure) Capital; and (e) Financial (Monetary) Capital.
a) Human Capital refers to people’s health, education, training, knowledge, skills, spirituality
and motivation, which are needed for a flourishing economy, productive work, poverty
reduction and capacity for human relationships.
b) Social Capital concerns investments by institutions that help us maintain and develop
human capital e.g. families, communities, municipalities, trade unions, hospitals and
schools. This means access to varied and supportive opportunities for work, health, living
conditions, etc.
c) Manufactured (Infrastructure) Capital comprises material goods or fixed assets which
contribute to the production process and service provision rather than being the output
itself – e.g. tools, machines and buildings. The main components include buildings and
infrastructure such as roads, communications, waste disposal, water systems, etc.
d) Natural Capital of the physical environment refers to the natural resources (matter and
energy) and processes that are needed to maintain life and to produce/deliver goods and
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Dennis Moss Partnership