Address macro and micro-economic development planning Cross-cutting focus-national Depts., Provinces and Local Government

Transcription

1 The New Growth Path

2 State of Nation address 11 February 2011 We have declared 2011 a year of job creation through meaningful economic transformation and inclusive growth. We have introduced a New Growth Path that will guide our work in achieving these goals, working within the premise that the creation of decent work is at the centre of our economic policies. All government departments will align their programmes with the job creation imperative. The provincial and local spheres have been requested to do the same. The programmes of the State Owned Enterprises and development finance institutions should also be more strongly aligned to the job creation agenda. 2

3 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, spheres of government (e.g. SOEs) and private sector Ensure job creation at the centre of economic policies for better employment outcomes 3

4 The challenge: Economic growth since 1994 has equaled the average for middle-income countries BUT SA remains one of the most inequitable countries in the world Unemployment is high Apartheid left deep inequalities in asset ownership and access to education This calls for a change... 4

5 Income distribution 60 share of richest decile share of poorest quintile Share of income 0 Botswana Colombia Chile Brazil South Africa Guatemala Panama Ecuador Mexico El Salvador Malaysia Argentina Costa Rica Venezuela Hong Kong* China Philippines Uruguay Thailand Singapore* India* Morocco Indonesia Korea* *not middle income UNDP HDR

6 Working towards jobs... RDP - creation of decent work and economic security Gear - targeted new jobs per annum ( average) ASGISA - halve unemployment rate by 2014 NGP - focus on decent jobs to achieve 5 million new jobs by

7 Long-run trends Share of adults with employment 70% 60% 50% 40% 30% 20% 10% 0% Estimate based on Census/Community Survey Labour Force Survey International norm mid-'00s

8 Quarterly Labour Force Survey Q Q Q Unemployment rate Employed/ population ratio Discouraged workseekers as % of labour force Unemployment rate incl discouraged workers *Econometrix 8

9 Quarterly Labour Force Survey Unemployment rate by population Q Q Q Black/African Coloured Indian/Asian White *Econometrix 9

10 Why? The past still has certain systems entrenched These systems have reproduced despite democracy: Highly inequitable access to assets, including land, and to education and skills development Residential patterns leave many working people far from employment centres both nationally and within towns Mining based economy still the least transformed Production structures are not always friendly to employment creation 10

11 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 Compliments the Industrial Policy Action Plan 2 (IPAP) Proposes macro and micro economic policy interventions to support more equitable and employment-intensive growth Emphasizes the importance of social dialogue (engagement with business, labour and society) 11

12 What to do? Create five million new jobs over for long-term sustainability Fine-tune macro and micro policies to support more equitable and employment-intensive growth through: Measures to make the economy as a whole more competitive, e.g. infrastructure roll-out, skills development Systematically encouraging more labour-intensive and green activities with a greater focus on domestic and regional markets Social dialogue key to change 12

13 Jobs drivers Infrastructure Main economic sectors New economies Spatial opportunities Social capital Energy, transport, communications, water, housing Agriculture & agro-processing; Mining & beneficiation; Manufacturing (incl IPAP); Tourism & other services Greening the economy & knowledge economy Rural development; and African regional integration The social economy & the public sector 13

14 Policy drivers Macro-economic strategy: support a competitive rand more relaxed monetary policy address inflationary pressures through fiscal policy and targeted micro-economic strategies Microeconomic policy drivers active industrial policy for increased competitiveness and targeting employment creating comprehensive rural development stronger competition policy improved education and skills development enterprise development reform of Broad-Based BEE reform labour policies to support productivity and improve protection for vulnerable workers technology policies that support employment creation and small- and microenterprise developmental trade policies with a strong orientation to new growth centres 14

15 Resource drivers state budgets (national, provincial and local) the resources of SOEs and DFIs Universities and science council resources retirement funds Jobs Fund over the next 3 yearsfor public employment schemes plus subsidies to private employers the IDC for job-creating projects investment subsidies Comprehensive support for SMEs 15

16 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 An overall comprehensive response to the structural crises of poverty, unemployment and inequality based on engagements across society 16