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Agriculture, Food Security and Inclusive Growth - SID Netherlands ...

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Thirdly, cash transfers play a central role in oiling the gears <strong>and</strong><br />

supplementing the benefits of these processes of reciprocal exchange.<br />

Particularly important in South Africa is the fact that cash transfers are universal<br />

<strong>and</strong> unconditional. Perhaps cash transfers are one of the ways in which modernity<br />

arrives in these networks of reciprocal exchange. They allow many who would<br />

otherwise be marginalized within these networks of reciprocal exchange to<br />

transact more powerfully. Pensions, disability grants <strong>and</strong> child grants subsidize<br />

informal businesses. They allow people to plough, to invest in their homesteads<br />

<strong>and</strong> in small businesses. This illustrates the baselessness of South African<br />

middle class fears about poor people’s dependency on h<strong>and</strong>outs. Cash transfers,<br />

far from crowding out remittances, allow individuals <strong>and</strong> households to crowd<br />

investments in. They are essential to sustaining the vanishingly small ledges on<br />

which survival of South Africa’s marginalized poor depend.<br />

Fourthly, these practices are part of enormously complex survival<br />

strategies in which formal <strong>and</strong> informal employment, cash transfers, wages,<br />

<strong>and</strong> reciprocal exchange are brought together in sophisticated ways. The most<br />

successful marginalized households manage to engage in a kind of improvisatory<br />

bricolage in which a wide variety of activities are brought together so that they<br />

supplement <strong>and</strong> complement each other in synergistic ways. Together these<br />

activities constitute a whole that is more than the sum of its parts. The reductive,<br />

h<strong>and</strong>-to-mouth connotations of “survivalism” do not do justice to the reality.<br />

Survival requires not only a willingness for super-self-exploitation but also<br />

knowledge, know-how <strong>and</strong> experience <strong>and</strong> an artful, canny, even cunning ability<br />

to negotiate conflictual terrain, spot seemly insignificant opportunities, <strong>and</strong> then<br />

bend them to one’s will.<br />

Fifthly, within these multifaceted strategies, informal self-employment<br />

has a complex, entangled relationship with the formal sector. Household<br />

strategies are hybrid, comprising formal <strong>and</strong> informal economic activities that<br />

subsidize, supplement <strong>and</strong> complement one another. Within these strategies,<br />

informal economic activity plays a subsidiary <strong>and</strong> dependent role. In South<br />

Africa, far from the informal economy being a separate realm, informal economic<br />

activity is dependent on, <strong>and</strong> subsidized by, formal activities. In a different<br />

sense, the unpaid care work of rural women can be seen as unseen subsidy to<br />

urban wages <strong>and</strong> household production. At the same time, it is also possible to<br />

regard many kinds of informal sector activity as marginalized <strong>and</strong> beleaguered<br />

by competition from the formal sector. Informal economic activity – particularly<br />

trading <strong>and</strong> retail – exists in the interstices of the corporate economy, persisting<br />

in tiny economic niches defined by locational advantage or by culturally specific<br />

preferences <strong>and</strong> markets not yet targeted or occupied by “big retail”.<br />

70 | AGRICULTURE, FOOD SECURITY AND INCLUSIVE GROWTH

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