Consumerism continued
When I re-read my post below, I remembered something that I read the other day. In 1994, negotiations were held at the National Housing Forum to determine the new national housing policy in South Africa. One of the arguments put forward for the mass delivery of formal 'RDP' housing was that if more people had proper homes, the demand for 'white goods' (fridges, stoves, microwaves, etc) would go up, thereby stimulating the local economy (this policy was subsequently adopted and implemented).
What kind of logic is this?!! Get the poorest of the poor, who can't even afford to provide shelter for themselves, to buy appliances they can't afford so that mysterious entity "the local economy" can benefit! Meanwhile the poor get in to bottomless debt and have to sell their houses. I would guess that one of the most common sources of bad debt and garnishee orders amongst the poor is the hire-purchase of furniture and 'white goods'. It probably right up there with cellphones. But how do you stop people buying things they can't afford? Well, I suppose you could start by not deliberately designing national policy to get people to spend money they don't have.




16 Comments:
I worked out at Blackheath during the 80s. One of my enduring memories of riding home from work along Modderdam Road was of the 'repo' trucks from Russells, Ellerines and other furniture companies driving in and out of the townships. Taking advantage of the poor has always made for lucrative business.
There's an interesting article on the Habitat site (2000/1?) sketching NHF policy during '94 (I remember the 'white goods' argument coming at a time when confidence in the economy maintained high interest rates). The article outlines the seven-point plan for housing. Two points highlight 'providing housing support for communities' and 'mobilizing credit at scale'. Quite what those meant is anybody's guess, but they certainly didn't translate to the obvious. Support was non-existent (the vultures flew in) and banks were downright hostile (they took what they could get).
Interestingly, the article goes on to boast: "During year 2000, some 397,019 electricity grind-connections were installed. The Community Water Supply Programme increased its delivery a hundred-fold from 62,249 connections in 1995 to 6,495,205 by November 2000. Some 412,000 new telephone lines were installed in 1999/2000." Cut offs continue in line with installations.
On a related note, I recall Roland Hunter recently defending the chaos prevailing in the Jo'burg City Council's accounts department (billions outstanding, hundreds of thousands of people incorrectly billed, reconciliation impossible). Private and public sector corruption in housing has been paid for largely by those housed under a mismanaged, unsustainable policy many are still spinning to their advantage.
I believe it's the support, management and policing of policy that's at fault here, Nick, rather than the policy itself (which government formulates and legislates). It's up to South Africans generally to make or break official policy. Driven by greed, we broke it.
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