Transcript The Growth Path: Provincial Implications

The NGP and Local Government
Economic Planning and Coordination
27 May 2011
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Outline
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EDD’s role
National Challenges
Key features of the New Growth Path
Proposed framework for alignment
Local strategies to create jobs
Conclusion
EDD’s role
• Address macro and micro-economic
development planning
• Cross-cutting focus-National Depts., Provinces
and Local Government
• Economic development planning
• Work with other departments and spheres of
government to promote –coordination
• Ensure job creation at the centre of economic
policies- for better employment outcomes
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National challenges:
• Economic growth
since 1994 has
equalled the average
for middle-income
countries
• Emissions intensity is
very high, mostly due
smelting and refining
of mining products
• BUT
– SA remains one of the
most inequitable
countries in the world
– Unemployment is far
higher than the norm
– Deep historical
inequalities in asset
ownership and access
to education
35
30
Unemployment rates
by countries-2009
25
20
15
10
5
0
Russia
Poland
Brazil
Indonesia
Macedonia South Africa Mozambique
Jamaica
Jordan
Algeria
Chile
Greece
Jobs- priority
• RDP- Creation of decent work and economic
security
• Gear- targeted new jobs per annum-104 000
average
• ASGISA- halve unemployment rate by 2014
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The New Growth Path
• Brings focus on employment creation and seeks to
achieve 5 million new jobs in the next decade-2020
• Identifies areas of job drivers- key sector
• Complements the Industrial Policy Action Plan 2
• Deal with cross-cutting issues
• Proposes macro and micro economic policy
interventions to support more equitable and
employment-intensive growth
• Emphasizes the importance of social dialogue
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Jobs drivers
Infrastructure
Energy, transport,
communications,
water,
housing.
Main economic
sectors:
Agriculture &
agroprocessing
Mining and beneficiation
Manufacturing (IPAP2)
Tourism/other services
Look for employment opportunities in
“jobs drivers” and implement policies
to take advantage of them
New economies:
Green economy
Knowledge
economy
Social capital:
The social economy
The public sector
Spatial
opportunities:
Rural
development
African regional
development
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Alignment with NGP
Spatial
Development Plans
• Balanced economic
development
Coherence of
Provincial and local
Development Plans
• Alignment with the provincial
development strategies
Monitoring and
evaluation
• Reporting on jobs created
and saved
Proposed framework for alignment
Spatial economic development action
plans
- Balanced economic development plans
across 9 provinces
- Address marginalisation and poverty,
particularly in rural areas
- Criteria for evaluating distressed areas will
focus on,
1. Poverty and deprivation measured
through composite index in the form of
Indices of Multiple Deprivation
developed by CASASP (Oxford U)
2. Employment measured through labour
absorption rate of economic activity
3. Areas of low economic growth
estimated at GVA for specific
geographic area – particularly for
historically disadvantaged areas and
former homelands
4. Grading/mapping
municipalities’
vulnerability according to 2009 State
of Local Government Report (COGTA)
Coherence of provincial and local
economic development (LED) plans
and agencies
- Coherence of provincial and LED
plans
- Identify: Corridor opportunities,
economic clusters across sectors
and regions, competitive advantages
in each province and linkages
between them, strategic relationship
between SALGA and metropolitan
councils, coherence and links
between national and provincial
development agencies, identify
social partnership opportunities to
promote economic development
Proposed framework for alignment
Assessment Indicator /Measurement
• Job creation (opportunities,
saved, lost, etc.)
• Low-carbon (human
settlements, transport, etc.)
• Green/knowledge economic
• Mapping key distressed areas
– poverty/ deprivation,
unemployment, inequality
Review
• Co-ordinate/ provide strategic
inputs from EPC
• Involve DFIs in specific
funding
arrangements/unblock
obstacles related to
governance and finance
Proposed framework for alignment
Key interventions and challenges
• Identification of viable and sustainable opportunities (e.g. smallholder schemes in
the EC can produce for factories in PE or EL; tourism in Mpumalanga relies primarily
on visitors from Gauteng);
• Adapting the broad drivers in NGP to their circumstances. A spatial economic
strategy will indicate how the job drivers affect different provinces, municipalities
and rural areas, linking in to the rural development strategy and industrial policies;
• Enhancing communication between spheres of government on their development
strategies and improving their alignment.
• Lack of infrastructure (e.g. delay to approved airport construction in DTP area;);
funding (e.g. Aspire, ELIDZ, EC – SOE’s and DFI’s to play greater role); more
community and local government involvement required (e.g. Aspire); underinvestment by public organisations in regional infrastructure (e.g. at ELIDZ – port of
East London and Buffalo City Municipality, EC in areas of former Transkei); rail
infrastructure and rail services linking EL to other regions in SA/SADC.
• Obstacles at LG (e.g. DTP where regulatory approvals are required and
rezoning/space guidelines are not clear - eThekwini Municipality, ELIDZ); more
support to regional development agencies required (e.g. Aspire, UMDA)
Local strategy for job creation
Government- Public Works, Infrastructure
(including in rural areas), Capacity Building,
Integrated and Spatial Planning and reducing
the red tape and regulatory burden,
procurement, green economy, 30-days
Targeting labour-absorbing activities in major
sector- agriculture, mining, manufacturing,
tourism and high-end services such as ICTs,
Business Processing, renewable energy
Supporting and partnering with private sector,
co-ops, local communities, NGOs, and
support SMMEs, access to funding and
physical infrastructure
Concluding remarks
• The NGP seeks to mobilise the country around
one vision- job creation
• Private sector, local communities, SMMEs,
NGOs critical in achieving the objectives
• Efficient governance and administration at local
government level is fundamental
• Implementation will have challenges, but we
should not despair
• Local Government is a key partner in the
implementation of the NGP to achieve in
creating and saving jobs
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