Abstract
This article focuses on the modus operandi of the sector education and training authorities (SETAs) in South Africa – seen by many critics of the training system as largely driven by the regulatory pressures of financial compliance imposed on public-sector organisations by the all-powerful Public Finance Management Act 29 of 1999 (PFMA). The article proposes an alternative modus operandi, one informed by the literature on ‘intermediaries’, where the main function of such intermediary organisations is not financial compliance but the strategic ‘brokering’ of training compacts. The article first outlines the role of the SETAs and the problems with a compliance mode of working. In explaining the alternative of intermediation, the discussion considers some best practices of intermediation in South Africa, but concludes that such practices are not fully diffused across the entire training system. Why diffusion is so poor is revealed through interviews with leaders in the training system.1 The analysis concludes on a positive note, arguing that the ‘social compact’ politics being emphasised by the new South African President, Cyril Ramaphosa, could usher in a more conducive environment for brokering training and job compacts.
Highlights
The South African training system currently comprises 21 SETAs, with each authority established in a key sector of the economy
Having outlined the theoretical evolution of the concept of intermediation, the key practical question which arises is: How does this conceptualisation of intermediaries translate into a doable number of functions that a body such as a SETA could carry out? The theoretical literature reviewed above points to at least two capabilities that are required to perform intermediation: (1) having embedded sectoral expertise to convince actors to behave differently; and (2) possessing brokerage skills
The interviewee indicated that SETAs were formally constituted, independent bodies and so it had been difficult for the Department of Higher Education and Training (DHET) to prescribe to these institutions what training should be conducted
Summary
The South African training system currently comprises 21 SETAs, with each authority established in a key sector of the economy. Most importantly, the SETAs will need to establish ‘awareness raising strategies to enable links with employers, trade unions, providers and other groupings to be established’ (RSA, 1999:24) These networks will take the shape of both formal and informal partnerships across a wide array of public and private institutions. Weaver and Osterman (2014) argue that labour market intermediaries are entities that connect actors in the labour market to one another They range organisationally from labour employment bureaus, NGOs and small business development agencies to regional economic development organisations and employer associations. They undertake a wide array of activities that vary from collecting information to policy advocacy and orchestrating the coordination of new economic activities – all acts for the public good that. These costs are best managed and kept low through some intermediate set of contractual relationships, rather than through open-market competition (Williamson, 1985; North, 1990)
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