20 Oct Our future - make it work. The National Development Plan 2030: What the Future Holds. Diagnostic Report of June 2011.

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1 NATIONAL DEVELOPMENT PLAN 2030 Our future - make it work The National Development Plan 2030: What the Future Holds Presentation to SARF Workshop in Kwazulu Natal, on The Road to the NDP Durban Country Club 17 October Background Diagnostic Report of June 2011 Apr President Zuma appoints the Commission Jun Diagnostic Report published Nov Draft National Development Plan released Public consultation Aug Handover to President and Nation Sep Cabinet adopts the Plan Dec ANC Conference adopts the Plan Focus on implementation / onwards There remains excessive poverty and inequality, due to Too few jobs Crumbling infrastructure Resource intensive economy Spatial divides Poor education High disease burden Poor public service Corruption Divided communities 3 4 1

2 6 5 Explaining the slow progress on jobs We need growth to sustainably raise living standards We need jobs to reduce inequality Mining, exporting management services, high skill service exports Public employment schemes, home based care, retail sector growth Good for jobs, not great for growth Greater impact What drives growth is not always good for jobs or for reducing inequality Good for growth, good for jobs Harder to do Good for growth, not great for jobs Labour intensive manufacturing, mid-skill service exports Rising public sector wage bill, low levels of investment, falling education standards Bad for both jobs and growth 7 16th May

3 Create jobs Grow the economy and make it more labour absorbing Lower the cost of living and of doing business Increase infrastructure spending to 10% of GDP Promote competitiveness and exports - diversify trade towards emerging economies Exploit our mineral endowments to pay for capability upgrading Promote manufacturing in areas of competitive advantage Grow agricultural output and focus on agroprocessing Improve the functioning of the labour market to make it easier for young work seekers to get jobs Make it possible for very skilled immigrants to work in South Africa ECONOMIC INFRASTRUCTURE IN THE SHORT TO MEDIUM TERM Regulation, energy, water transport, ICT 9 10 Expand infrastructure Transport- Vision and Reality RSA is transport intensive, work /home and producer/consumer distances are far apart Transport solutions should address both the cause and effects Priorities( for people and the economy) are: Create workable urban transit solutions with public and private components Strengthen and optimise freight corridors Provide long-distance passenger transport options Improve rural access and mobility Although many transport priorities exist, careful ranking against clear criteria is necessary to choose the welfare maximising solutions Expand infrastructure Transport Upgrade the Durban-Gauteng freight corridor Transport solutions should address both the cause and effects Build a new port at the old Durban airport site Expand the coal, iron ore and manganese lines Improve commuter rail fleet ICT Full policy review in the ICT sector, and a more comprehensive and integrated e-strategy A well resourced regulatory agencies able to encourage market entry and fair competition and regulate market failure; Targeted training of e-workers and e-consumers to grow services and stimulate employment Ensure access to low-cost high speed international bandwidth with open access policies

4 Build a capable state Create a professional public service Ensure that the public service in immersed in the development agenda but insulated from undue political interference Boost the role of the public service commission Create an administrative head of the public service Make the public service a career of choice Establish a government - wide graduate trainee programme Create career paths for technical specialists and local government civil servants Improve relations between national, provincial and local government Give metros a more coherent set of powers Build a capable state Improve state-owned enterprises a professional public service Produce clear, publicly available mandates setting out public interest Clean up governance structures: government appoints the boards and the boards appoint CEOs Clearly delineate responsibilities between departments Professionalise the police service Implement dual track recruitment process Put in place code of conduct to enforce discipline Fight Corruption Corruption must be tackled wherever it exists, in both the public and private sectors Give the tender compliance office more powers to investigate value for money Take legal and political steps to insulate anti-corruption agencies from political interference Increase resources for anti-corruption agencies Set up dedicated prosecution teams and specialist courts and speed up these cases Centralise the awarding of large tenders or tenders with long duration Make it illegal for civil servants to operate or benefit directly from certain business activities Introduce restraint of trade agreements for senior civil servants and politicians Expand protection of whistle blowers NDP Headline Numbers Economy: R1.84 trillion -+R5.27 trillion Employment: 13 million 24 million Unemployment: 25.3% 6% Poverty: 39% 0% Access to electricity: 85% 100% Inequality: 0.69 (gini)

5 What is the NDP? The NDP provides a vision & a long-term strategic plan, that serves four broad objectives: Providing overarching goals to be achieved by 2030 Building consensus on the key obstacles and specific actions to be undertaken Medium Term Strategic Framework Providing a common framework for detailed planning Creating a basis for making choices about how best to use limited resources MTSF Five year implementation plan for the NDP and the commitments in the governing party s election manifesto Develop infrastructure Continue to drive build programme through PICC and SIPS Focus on inclusive growth, employment, developing skills and other capabilities Infrastructure projects will be used to crowd-in productive investment, either through local procurement or by providing affordable quality services to investors Emphasises improving service delivery, the performance of the public service and the efficiency and effectiveness of local government Infrastructure projects will also provide employment and other opportunities for women and youth and promote BBBEE Provides clear targets and timeframes for implementation of key actions, to enable monitoring of implementation Key role for state-owned companies in driving the build programme and achieving its objectives

6 MTSF SIP 2 Priorities Durban Free State Gauteng logistics & industrial corridor Access to Durban s export and import facilities Integrate Free State industrial strategy activities New port in Durban Aerotropolis around O R Tambo International Airport MTSF Outcomes Public transport and infrastructure managed better Road-based commuter services to function properly Transport authorities to enforce sector wide compliance so as to provide commuter-friendly experience Renew the commuter rail fleet Expand capacity for mineral exports, targeting ores and coal Where SOE s fail, encourage private-sector involvement Application of information technology to transport systems e.g. railway signalling and highway traffic control systems Port of Ngqura made attractive for container transhipment Transport planning that syncronises with spatial planning Focus on problem-solving Address growth constraints Focus on measures to reduce inequality Embark on measures to build confidence Intensify social dialogue to resolve problems Work with finance institutions to develop products to finance some of the key infrastructure projects Experiment with new ways of working e.g. Operation Phakisa

7 Examples of implementation NECT Operation Phakisa Infrastructure Projects Mpumalanga Land reform Pilot Barring civil servants from doing business with state Employment Tax Incentive Act, 2013 Office of the Chief Procurement Officer Partnership on Urban Innovation Urban Reform Projects Early childhood development policy initiative