Business Plan for the Human Sciences Research Council: 2006/07

1. Business Plan for theHuman Sciences Research Council: 2006/07 Presentation to the Portfolio Committee on Science and Technology, 13 March 2006

2. What we do: vision and mission • The HSRC intends to become • a human and social sciences research council serving as a knowledge hub • where public policy and discourse on current and future challenges for South Africa and the African continent are independently researched, analysed and informed, and • where research-based solutions to human and social problems are developed • The HSRC is • a non-partisan organisation • that generates scientific knowledge through its research and analytical work in the social and human sciences, • to provide critical and independent information to different role players, whether in policy development, media analysis, advocacy or in debates • so that they can make informed decisions

3. The HSRC has engaged in critical self-evaluation in tandem with its restructuring initiatives and strategic planning, and as a backdrop to this business plan

4. The following factors were identified which place the HSRC in a strong position to carry out its mandate • It has a positive image as a credible, relevant, forward-looking and well- performing organisation among stakeholders, including funders • Its research areas are well aligned with national and international priorities relevant to socio-economic challenges on the African continent • It has a track record of high-quality research by well qualified staff in a well functioning organisation in terms of governance and delivery • It is endowed with excellent infrastructure, geographic location at multiple sites, a successful publishing house, and well-managed finances

5. The organisation acknowledges its weaknesses, which it is committed to address, such as • Problems with staff retention, particularly of black scientists • Transformation challenges on the demographic profile front • Insufficiently developed staff development and support programmes • Insufficient buy-in in respect of performance management systems • Unstructured relationship with universities and other research organisations • Inefficient IT system, an ageing plant and other Capex requirements

6. However, there are huge opportunities for the organisation to prosper, and include • Growing support by DST and government generally • Positive relationship with stakeholders, particularly elsewhere in Africa and abroad • Growing investment in R&D activities • The recent new initiatives in the restructured organisation, such as the PAU, with opportunities for real impact on ordinary people

7. But then again, as for any other organisation, there are always threats to beware, usually of a financial nature, but also those events that may tend to undermine the public perception of the institution

8. Our public accountability compliance is exercised at three levels • A shareholders’ compact which serves as a contractual performance agreement between management and the Council (in compliance with a 2005 Cabinet decision) • Periodic institutional review, of which were the HSRC institutional review of 1997, the system-wide review of 1998 and the most recent institutional review of 2003 • Planning, budgeting and reporting in accordance with the PMFA requirements

9. The shareholders’ compact for 2006/07, to be reviewed annually, encompasses the institutional objectives for • Strategic planning, including how the HSRC intends to fulfill its mission and vision • Organizational development plans, including employment equity targets, staff development, procurement procedures and business partnerships • Operational planning including resource allocation, the budget, and organizational performance indicators • Corporate governance encompassing compliance with statutory requirements, risk management and strategic human resource management

10. However, the 2003 Review Panel also identified new challenges that the HSRC must address in order to better serve the needs of the country and the region

11. These new challenges included • Strengthening the admin support services and systems • Deepening organizational transformation with specific regard to gender and the demographic profile of the organization at senior levels • Developing research collaboration networks within the country and across the continent • Addressing the questions of intellectual property and the management of research data • Formulating the HSRC’s public purposes constituting ‘justification or warrant for receiving public funds’, for inclusion in a new HSRC Act

12. The HSRC has acted on these recommendations by • Appointing task teams to follow up on each of the issues • Collaborating with the DST in the compilation of a draft Bill for a new HSRC Act submitted to Cabinet in 2005 • The draft Bill emerged from a consultative process with input from Council, and from internal and external stakeholders • Later on in this address, I will comment briefly on what has been achieved in respect of the issues raised in the review

13. I now turn to our organizational and management structure, which consists of • The HSRC Council, appointed by the Minister to govern the organization • The CEO, appointed on a 5-year contract to manage the organization • The COO who oversees the Support Services • The Executive Directors who head research programmes and cross-cutting units

14. The current Council

15. The following List of Research Areas provides an overview of the content of the HSRC Research Programmes

16. Child, youth and family development Research & Development Democracy and human rights Gender and development Policy Analysis Society, Culture and Identity Employment and economic growth Skills Development Quality and Access of Education Health Systems Development Urban change, city strategies & migration Land, livelihoods & poverty reduction Infrastructure & service delivery Human development, environment & tourism HIV/AIDS, TB and other public health priorities eg, Drinking and Driving, Suicide, Alcohol Misuse, Child maltreatment/neglect, and Mental Health HSRC Research Areas

17. Bridging the gap between Research and Policy : Policy Analysis Unit • To produce Policy Briefs • To produce State of the nation document • To conduct impact assessment on policies and programmes • To coordinate the social transformation of the human and social sciences programme of UNESCO (MOST) • To conduct high-level seminars, with national and international participation, on themes relating to the foremost challenges facing marginalized communities in Africa • To draw visiting scholars from universities in South Africa and elsewhere in Africa to look at specific problems and policies, with a view to developing what President Mbeki has called ‘African solutions to African problems’

18. Turning now to institutional achievements to date, the HSRC has registered successes in some areas, and significant progress in others as detailed in the Business Plan

19. With respect to institutional planning • The HSRC has finalized its new strategic vision and strategic organizational restructuring • It has articulated its public purposes in the draft Bill for a new Act now with Cabinet • It has identified the lot of marginalized communities as the overarching consideration in all its research endeavours, which includes such areas as HIV/AIDS, poverty, education and unemployment • It has placed Africa-wide collaboration at the centre of its research outreach and intellectual exchange

20. With respect to the recommendations of the 2003 Review • A Research Management System (RMS) has been implemented to streamline admin systems, put in place a networked, integrated database, and facilitate HR and Finance procedures • In terms of a recent compact, Statistics SA will henceforth serve as the repository some of HSRC research data to ensure proper storage and enhanced accessibility

21. Research Management System (RMS)

22. With regard to transformation, the HSRC has adopted a multi-pronged strategy whereby, among other things • Gender awareness in research has been prioritized as a cross-cutting programme, and gender is a weighted criterion in staff appointments • The appointment, internal advancement, retention and career pathing of African and coloured staff to redress the HSRC demographic profile has been earmarked as a matter of high priority • A strategy has been put in place to ‘grow our own timber’ to create a pool of highly qualified African and coloured scientists as a resource for the HSRC and for the country as a whole

23. On the question of the public purpose of the HSRC, the draft Bill enumerates its components, among them: • To undertake fundamental and applied research, and to help build capacity and infrastructure for human science research in South Africa and beyond • To inform the effective making, implementation, monitoring and public debate of social policy • To support and foster research collaborations within South Africa and beyond • To focus on developmental needs of vulnerable and marginalized groups within society

24. In response to the Review Panel recommendations, the HSRC conceived and implemented the ‘COUPE’ strategy

25. The COUPE strategy is made up of the following elements • C for contracts and grants (to expand the HSRC’s funding base in a sustainable manner) • O for outreach (to improve external collaboration, thereby benefiting research capacity, quality and impact) • U for user needs (to ensure that our research remains relevant) • P for performance (focusing on improved organisational performance in terms of both equity and efficiency) • E for excellence in research

26. The HSRC has performed well in all of the COUPE categories, as acknowledged in the 2003 Institutional Review Report in which it is observed that that ‘the HSRC is a different and better organization than it was in 1997’

27. Performance 2000/01 to 2005/06

28. Contracts and grants

29. Performance equity

30. Reports of Original Research HSRC’s Research Outputs • 100 peer-ReviewedJournal articles published in 2004/5 • 118 Books and chapters in books published in 2004/5 • 100 Reports (government & other sources) • 32 Newsletter articles: • Review • 105 Conference proceedings and abstracts • Bibliographic databases

31. Examples of Research that informs Policy • Kraak, A (2005) ‘The Challenge of the ‘Second Economy’ in South Africa: the contribution of skills development’, Journal of Vocational Education and Training, 57 (3). • Kahn, M.J. and Blankley, W. (2005) ‘The changing face of South Africa’s national system of innovation, 1991–2001' Industry and Higher EducationApril 2005 pp 121-130 • Shisana, et al: (2005) ‘South African HIV Prevalence, HIV incidence and Behaviour and Communication Survey, ‘ HSRC press. • Potgieter CA, Pillay R, Van Niekerk T & Rama S (2005) Women, Development & Transport in Rural Eastern Cape, South Africa, Human Sciences Research Council Press (in press) Pretoria: South Africa • State of the Nation • Richter, L., Panday, S., Emmett, T., Makiwane, M., du Toit, R., Brookes, H., Potgieter, C., Altman, M, and Makhura, M. 2005. The status of the youth report2003. Commissioned by the Umsobomvu Youth Fund. • Poverty Pockets in Gauteng: How Migration Impacts Poverty, Report tothe Gauteng Intersectoral Development Unit, Urban Rural and EconomicDevelopment (URED), Human Sciences Research Council (HSRC), Pretoria,August 2005.

32. CeSTII – established on DST ring-fenced grant Mandate - conduct S&T surveys, build and maintain capacity; support a network of excellence in S&T policy Activities: R&D Surveys (Official Statistics); 1st official Innovation Survey; S&T policy analysis Impacts: Generate indicators and evidence-based policy briefs that inform S&T planning for DST and other Departments Seminal work on mobility of R&D personnel Development of S&T policy with AU/NEPAD Recognition of SA S&T Indicators by OECD Promote international standing of SA Centre for Science, Technology and Innovation Indicators

33. HIV/AIDS Research • Nelson Mandela/HSRC Study of HIV/AIDSSouth African National HIV Prevalence,Behavioural Risks and Mass MediaHousehold Survey 2002 • HIV PREVALENCE, INCIDENCE, BEHAVIOUR AND COMMUNICATION SURVEY2005

34. HIV prevalence by sex and age: 2005

35. GOVERNMENT STATEMENT ON THE NELSON MANDELA/HSRC STUDY ON HIV AND AIDS30 November 2005 • “Government notes the results of the survey by the HSRC and Nelson Mandela Foundation released earlier today. The results give both a cause for hope as well as a reason to intensify action to combat HIV and AIDS through implementation of our Comprehensive Plan for Management, Care and Treatment of HIV and AIDS. “ • “As part of our activities to mark 2006 as “the year of accelerated HIV and AIDS prevention”, government will intensify its interventions targeted at particular risk groups highlighted by the report including people between ages of 25-29 years and those older than 50. “

36. Infrastructure and Service Delivery • Service delivery is crucial to alleviating poverty and lessening inequality, but is poorly measured; • This project measures service delivery against the objectives and targets set out in the State of the Nation address; • Objective and verifiable measurements of delivery in water, sanitation, electricity, etc, are made from national surveys, backlogs computed, and projections made on the basis of the existing trends in delivery and household projections; • The method involved projections which uncovered important anomalies in the weighting of households in national surveys which have to be resolved to derive accurate statistics; • The study has had a high level impact: StatsSA is working on weighting national surveys to reflect consistent trends in household growth; • The work has highlighted the need for additional resources to meet national targets and the MDG in South Africa. Putting numbers to the scorecard: presidential targets and the state of delivery. Chapter 1 in State of the Nation, South Africa 2005-2006. 2006. (ed) Sakhela Buhlungu, John Daniel, Roger Southall, and Jessica Lutchman, pp11-45, (with Michael O’Donovan).

37. STUDY OF LAND DEMAND AND ATTITUDE TOWARDS LAND REFORM • Survey in three provinces, covering rural and urban dwellers. • Covering household heads and non household heads, women and • men, youth to elderly. • Selected findings: • total land demanded in three provinces exceeds commercial • farmland by factor of three; • however, approximately 10% of respondents account for 80% • of land demanded; • major reason for wanting land is ‘to grow food’. • Policy Impact • DLA moving to adopt study, because no other rigorous statistics • on land demand; • provide evidence in support of emerging policy on production corridors.

38. Employment and Economic Growth • Macro-economic scenarios, in respect of fiscal balance, external balance, exchange rates, wages, inflation, etc • The Industrial path currently and potentially, with consideration to the balance between agriculture, mining, manufacturing and services, and the respective role of international trade versus domestic circulation. • The informal economy and low wage economy • The labour market, in respect of demographics, HIV/AIDS, skills supply, wages, mobility, etc • Commercial infrastructure – in respect of critical minimum price and quality of transport, telecommunications and energy in particular. • Social infrastructure delivery – relying on a range of sources including recently commissioned studies by DPLG assessing backlogs, indigent policy, and the impact of free basic services. • Poverty and income profiling, pushing forward the HSRC’s work on the social wage.

39. Collaborating with Tertiary Education Institution • sabbaticals, • joint lecturing, • joint appointments, • post-doctoral fellowships, • post-graduate research training, • joint research collaborations, and • building research and human resource capacity in the common pursuit to address economic, cultural, and social innovation and development.

40. Recent examples of collaboration between HSRC and Universities • Student Retention and Graduate Destinations study, undertaken • with permission obtained via HESA and Department of Education, • in collaboration with CHE, Association for Black Empowerment in Higher Education (ABEHE) • with experts from HEIs on advisory panel • University-led projects, HSRC subcontracted (e.g. HSRC subcontracted by UKZN) • HSRC-led projects, universities or units subcontracted (e.g. SATPOR with various collaborating science councils and universities) • Joint projects forming part of larger research programme (e.g. projects on Teacher Education) • Joint appointments and collaboration to support internship training

41. Collaboration with the rest of Africa and the world is a high priority public purpose. To this end, the HSRC seeks • To establish an International Liaison Unit in the office of the CEO • To strengthen its existing international links, such as SAHARA and CODESRIA to address the Millennium Development Goals • To undertake joint projects and produce joint publications with individual researchers and institutions in Africa (SADC in particular) • To work on projects funded by the UN, UNDP, WHO and UNICEF • To collaborate with Africa on the basis of equal partnership and mutual respect

42. In order to execute these broad mandates, the HSRC will need to ensure its financial sustainability, through the following initiatives • Seeking increased levels of Parliamentary funding, and dedicated funding from government departments • Securing multi-year research grants • Putting in place a new and effective marketing strategy built on careful management of stakeholder relations

43. With regard to its major goals for the next 5 years, the HSRC has set itself quantifiable targets set out in detail in the Business Plan. These will be monitored in the context of • The provisions of the Shareholders’ Compact • The Council-approved KPIs and targets, in accordance with the ‘Balanced Scorecard’ reporting set by DST and NACI • Data developed from the RMS • Various for where the budget is discussed

44. Turning now to some highlights from the Budget for 2006/07 Financial Year

45. The HSRC Parliamentary grant’s allocation was informed by • In-depth discussions of performance-based funding targets with EDs and heads of departments and cross-cutters • Strategic organizational priorities and business objectives • A new financing model aimed at reducing overhead costs for research activities in 2006/07 • Acknowledgement that this model would result in slowing down of the rate of growth of overall turnover

46. Parliamentary Grant 2006/07 • The budget presented with this business plan assumes that the VAT shortfall of R2,7 million will be adjusted • The HSRC will invest R69,3 million (64% of its total Parliamentary grant allocation of R107,5 million) in new and continuing research activities • The remaining portion of parliamentary allocation is invested in Council-specific activities and Capex

47. The external research earnings target for 2006/07 is R152 million • As a percentage of total research earnings of R259 million (external earnings, ring-fenced earnings and baseline Parliamentary grant allocation), the R97 million received under the rubric of “baseline Parliamentary grant” represents just over 37% of total research earnings • If ring-fenced funding is added to the baseline allocation, the target of 40% set in earlier strategic planning documents is met • The total budget for 2006/07 is R273 million, an increase of 16% in relation to the R236 million for 2005/06 • This increase can be explained if one considers that new initiatives in the form of cross-cutting units will also have to earn external funds to enable them to deliver on their intended objectives • The new fundraising strategy of the HSRC intends to support initiatives that will enable institutional approaches to potential funders, particularly those that would consider longer-term funding for specific research or cross-cutting initiatives

48. Key programme activities for which DST support is sought are detailed in annexure B to the Business Plan, and can be recapped as follows • Free education in South Africa (Dr Anil Kanjee) in response to request by Minister of Education: R1 779 000 • Centre for Science, Technology and Innovation Indicators (CESTII) for Science (Professor Michael Khan) commissioned by DST: R2 000 000 • Assessing the impact of HIV/AIDS prevention and care programmes (Dr Thomas Rehle) R2 054 000 • Assessing the impact of gender policies and interventions in South Africa (Professor Cheryl Potgieter) R1 500 000 • Impact assessment: Millennium Development Goals 1-7: R 600 000

49. Expense Budget 2006/07 • The cost structure of the HSRC will grow at the same rate as the income target • Research and administration costs make up R128,1 million or 47% of the total cost budget • Other operating cost and depreciation add up to R24,3 million or 9% of the total cost budge • The staff costs of the HSRC are for the 2006/07 financial year and exceed the total baseline grant and ring-fenced allocations for the year • Permanent staff costs (total staff 286) are projected at R120 million, representing 44% of the total cost budget for the year • Additional skills required in the course of the year will be contracted in on short-term, project-based assignments

50. Balance Sheet 2006/07 • Non Current Assets grow after estimated investment of R4 million • Inventory is Publication stock • Cash and cash equivalents are retained on behalf of donors –Cash received in advance • Capital and Reserves represent the Current account, Capital investment in the building and Deferred Income • Provisions are salary related and increase because of salary increase