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

Northern Cape PSDF
Volume 2
Office of the Premier &
Department of Rural Development & Land Reform
December 2011
services. They include renewable resources such as fresh water, fisheries and wood, and
non‐renewable resources such as mineral deposits.
e) Financial (Monetary) Capital plays a critical role in any economy, enabling the other types
of capital to be owned and traded, for example, through shares, bonds or money.
It is only when the networked relations and correlations among these five capitals are recognised
and operational, that a sustainable economy and a contented society can be created in the
Northern Cape. Figure D.6 illustrates the general approach to the investment of public and private
funds in terms of the business principle that investment should be directed to where the best
return on such investment can be generated.
CATEGORY 1 SETTLEMENT
Towns with High Development Potential &
Low Human Needs
CATEGORY 2 SETTLEMENT
Towns with High Development Potential &
High Human Needs
CATEGORY 3 SETTLEMENT
Towns with Low Development Potential &
High Human Needs
CATEGORY 4 SETTLEMENT
Towns with Low Development Potential &
Low Human Needs
CATEGORY 5 SETTLEMENT
Towns that are neither High nor Low as it
relates to Development Potential & Human
Needs
CATEGORY 6 SETTLEMENT
Traditional rural settlements that are not
described as urban
INVESTMENT TYPE
INVESTMENT TYPE
INVESTMENT TYPE
INVESTMENT TYPE
INVESTMENT TYPE
INVESTMENT TYPE
• Infrastructural Capital
• Infrastructural Capital
• Social & Human Capital
• Social & Human Capital
• Basic Services
• Subject to discretion of
relevant Municipality
• Subject to discretion of
relevant Municipality
Figure D.6: General approach to the appropriation of capital.
PRIORITY AREAS FOR
COMMERCIAL &
INFRASTRUCTURAL
DEVELOPMENT
NOT EXCLUDED FROM
COMMERCIAL &
INFRASTRUCTURAL
DEVELOPMENT –
HOWEVER THIS IS
SUBJECT TO CONCLUSIVE
FEASIBILITY PROOF +
CROSS‐SUBSIDY FROM
DEVELOPER
While the idea of focusing government spending on fixed infrastructure in areas with some
potential for economic development may seem to exclude other areas/settlements from
development, this is in fact not the case. Different regions and settlements have different
economic potential and the spatial variations in the incidence of poverty are also vastly different.
The NSDP argues that these diverse and disparate spatial contexts suggest a policy approach that
itself should be differentiated and conducive to the requirements of the different contexts. Hence,
in areas of low or no economic potential, the path of development and poverty reduction should
be through a focus on investment in human and social capital (e.g. education, training, social
welfare, rural development planning, land and agrarian reform, expansion of agricultural
extension services, etc). This means that each individual town should discover its real development
potential and then grow to the maximum of that development level. It is important to stress that
the NSDP does not in any way rule out investment in small settlements per se. What matters is
whether an area has the potential to grow economically in a sustainable way, create jobs and
alleviate poverty. If a small town has such potential there is nothing that precludes such
investment (Oranje et al, 2008). Maps D.13 to D.15 illustrate the investment types required for
the local municipalities and settlements of the Province.
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Dennis Moss Partnership