Delivering a HOME FOR ALL through Partnerships

Delivering a HOME FOR ALL Delivering a HOME FOR ALL through Partnershipsthrough PartnershipsCabinet Meets labour

Premier Ebrahim RasoolCape Town Convention Centre17 November 2004

Delivering a Home for All through Partnership

Purpose of engagementDifference DA expansion of Dialogue HistoricTo consolidate our “development consensus” reached at the PGDS in October 2003To deepen the foundation for joint action to address the challenges facing the Western CapeTo inform our labour partners about our progress in gearing-up to deliver on our vision – a home for all – through our iKapa elihlumayo strategyTo keep the channels of communication open to ensure a listening and responsive government


OverviewComing to terms with the Development Challenges in the Western CapeNeed for a developmental state & partnershipsiKapa Elihlumayo as Strategy of governmentOutcome of PGDS commitments made in 2003The strategic approach of government: deepening the strategies of iKapa and gearing up government for deliveryImplications for labourChallenges for labour to make the partnership work


Understanding the State (1)Inherited a 20th C model of public admin: Functionality principleMixed with: Fragmented Apartheid State

Fragmentation specified in terms of racial, geographic, qualitative and functional boundaries

Later on, mixed with: Weak Neo-Liberal State Non-intervention; specialised fragmentation;

separation of policy and delivery; remote from citizens

Manifested in Western Cape State…


Understanding the State (2)Western Cape State

Racialised, unequal and remote Competitive service & cost-centre model Profit-drive and private sector bias Technocratic and un-strategic Incremental budgeting

Consequences: A highly fragmented and anti-development

institutional setting with inappropriately skilled staff, low morale and tendency for silo-based competition as opposed to cooperation around shared objectives


The case for a developmental approach

All things being equal as they stand now, most cities, towns and rural regions will become more unequal, exclusionary, divisive and inevitably violent, over the course of the next decade, even with consistent economic growth and service delivery!Urgent, strategically focussed action is needed over the medium term to ensure growth with equity and social inclusion (to deliver social cohesion)However, interventions must be driven by rigorous analysis of the systemic causes of structural problems (wicked issues)Interventions must also target a limited number of strategic levers of change that can trigger large waves of transformation within and especially beyond governmentA common vision and joint programmes are therefore essential


Conceptual Framework (1) Features of a developmental state

people-oriented: it responds to the realization that people or citizens experience needs and problems in dynamic and complex ways & therefore require appropriate responses;partnership–based: it is not a paternalistic state that delivers to a passive citizenry, but a state that mobilizes the capacity of citizens and enters into partnership with them;interventionist: it harnesses the natural tools of government to address the socio-economic and sustainability needs of society, especially in the interest of the historically disadvantaged;well-managed: it excels in good governance practices which display an alignment of policy with implementation, appropriately skilled human resources, and a goal-oriented performance management system.


Recap context of transition: External challenges

Employment Unemployment: 26% of economically active Unemployability of +20 year olds 18% matric, 10% tertiary, 21% incomplete primary

educationEconomy

Growth in Tertiary sector: but no real jobs – high skills Primary & Secondary sectors: net shedders of jobs

Inequality: Gini Co-efficient Economic Wage: 0,58 Social Wage: 0,42

Social violence (inhibiter of econ development & social cohesion)Social divisions in society (inhibiter of econ development & social cohesion)


Economic growth trends I Signs of slowdown since 1999

GDP Growth rates (1995 Rands)

0.00%0.50%1.00%1.50%2.00%2.50%3.00%3.50%4.00%4.50%5.00%

1996 1997 1998 1999 2000 2001

WCape

SA


Economic growth trends II Transport & Communication and Finance, Real estate & Business

industries drive almost all growth

Figure 5: Western Cape GDP with and without Financial Services & Transport Industries

40000

50000

60000

70000

80000

90000

100000

With Without

With 78221 81850 84235 84506 88304 91365 93727

Without 55244 56635 57889 56631 57720 58679 59359

1995 1996 1997 1998 1999 2000 2001


Economic growth trends I Signs of slowdown since 1999

GDP Growth rates (1995 Rands)

0.00%0.50%1.00%1.50%2.00%2.50%3.00%3.50%4.00%4.50%5.00%

1996 1997 1998 1999 2000 2001

WCape

SA


Economic growth trends II Transport & Communication and Finance, Real estate & Business

industries drive almost all growth

Figure 5: Western Cape GDP with and without Financial Services & Transport Industries

40000

50000

60000

70000

80000

90000

100000

With Without

With 78221 81850 84235 84506 88304 91365 93727

Without 55244 56635 57889 56631 57720 58679 59359

1995 1996 1997 1998 1999 2000 2001


Economic growth trends IIICurrent slow-down in these industries pulls down provincial growth

National growth rates in key Western Cape sectors

0.00%1.00%2.00%3.00%4.00%5.00%6.00%7.00%8.00%9.00%

1995-2001

2002-2003

1995-2001 5.00% 2.20% 2.40% 2.10% 8.40% 6.30% 2.90%

2002-2003 0.20% 1.60% 2.40% 1.70% 4.60% 2.30% 2.00%

Agriculture,

Manufacturing

Construction

Wholesale &

Transport &

Finance, Real

Total


Economic growth trends SummarySteady growth from 1995-2001 (2.9% average)But signs of slowdown since 1999Growth driven by Tertiary sectorTransport & Communication and Finance, Real estate & Business industries drive almost all growthCurrent slow-down in these industries pulls down provincial growth


Labour market trends I

Faster than national employment growth, but all new entrants not being accommodated…

Unemployment Rates: WC & RSA

29%18.90%

39.50%

23.20%

0%10%

20%30%

40%50%

South Africa Western Cape

1995

2002


But high Black African unemployment

Western Cape Unemployment rates by population group

32.3

10.1 6.7

41.5

18.56.9

22.416.4

0.010.020.030.040.050.0

African Coloured Asian White

1995

2002

Labour market trends II


Skills shift mirrors shift in economy I

Unskilled employment as share of total

0%10%20%30%40%50%60%70%80%90%

100%

1995

2000

Labour market trends III


Skills shift mirrors shift in economy II

WC Employment by sector share

05

101520

19962001

Labour market trends IV


Youth Unemployment

Number of Unemployed by Age, Western Cape

0102030405060708090

100

15 18 21 24 27 30 33 36 39 42 45 48 51 54 57 60

Age

Num

ber o

f Une

mpl

oyed

Labour market trends V


The ‘Unemployable’ are…..• Over 40 • Less educated (54% less than 7 years)• Worked less recently (47% more than 3 years)• Have looked less recently (40% more than 3 years)• Less literate (12%)• Less access to salary earner (41% don’t)

Labour market trends VI


Labour Market Trends Summary• Faster than national employment growth• But increasing unemployment• Higher Black African unemployment• Skills shift mirrors shift in economy

• Youth Unemployment

• The Unemployable


Distribution of Wealth I

Increased population and EAP

Population and EAP Growth: WCape & RSA

14%21%

10% 11%

0%

10%

20%

30%

WC

RSA

WC 14% 21%

RSA 10% 11%

Population growth EAP Growth


Distribution of Wealth II Stagnant per capita GDP

Real per Capita GDP: WC and RSA

2071620685

14087 14325

0

5000

10000

15000

20000

25000

19962001

1996 20685 14087

2001 20716 14325

WC Per capita SA Per capita


Distribution of Wealth III

Inequality higher than national and increasing

WC and RSA Gini Coefficients

0.560.602

0.570.625

0.5

0.6

0.7

1995 0.56 0.602

2000 0.57 0.625

RSA WCape


Recap context of transition: Internal challenges

Budget Social Spending: 80% vs Rest: 20% Personnel: 47,5% vs Non-Personnel: 52,5% Budgeted Deficit: R800m over 3 years Search for new revenue: fuel levy & hospitability levies

Social Security = demand and efficiency challenge Prevent over-expenditure

Health = unsustainable system Healthcare 2010 is an adjustment package

Education = inability to address great inequity and job loss threats

HRD strategyHousing = massive and growing backlogs (320 000)

Programmes afoot to promote new human settlements policy (e.g. N2)

Economic development – limited expenditure available

Maximise partnerships


Our challenge“The advances made in the first decade by far

supercede the weaknesses. Yet, if all indicators were to continue along the same trajectory, especially in respect of the dynamic of economic inclusion and exclusion, we could soon reach a point where the negatives start to overwhelm the positives. This could precipitate a vicious cycle of decline in all spheres.

Required are both focus and decisiveness on the part of government, the will to weigh trade-offs and make choices, as well as strategies to inspire all of society to proceed along a new trail…”

(Towards a Ten Year Review, 2003)


Implications of external & internal challenges

We have no choice but to: Work closely with our social partners Work in much smarter ways: achieve multiple

outcomes with strategically deployed and linked investments

The future, therefore, lies in holistic and partnership-based governance

Question is: How are we going to realise this?Fix and re-make the

plane whilst we flying it!HOW?


Linking strategy to institutions

iKapaElihlumayo

DevelopmentalState

DevelopmentalPartnerships

(PGDS)(PDC)


iKapa Elihlumayo:Critical Paradigm Shifts for Government

1. Understand the nature of the State (state of the State)

2. Redefine the role of the State through1. A theory of: the Modern African State2. Aligning the budget to vision and strategy:

from input-based to outcomes-based budgeting

3. Re-tooling the state to become integrated and holistic (Expressed in 4 pillars: integrated, co-operative, responsive and globally connected governance)

4. Achieve objectives through partnerships5. Foster active citizenship to unleash

energy within civil society and families


Stay focussed on creating: A HOME FOR ALLSocietal features:

Persistence of gross economic inequalitiesRacial polarisation (and denial of systemic racism)Religious intoleranceSocial conflict at household and community levels

What holds us together?

Need a galvanising vision that can unify society and (re)build social cohesion

A HOME FOR ALLA HOME FOR ALL


iKapa Elihlumayo:Critical Paradigm Shifts for Government

Shift from Welfare Dependence to Economic Self-Reliance

Grow the Economy, Increase Employment, Broaden Ownership

Fight Poverty, Reduce Disparity, Improve Living Standards


iKapa Elihlumayo:GDS: Key Objectives for Government

Shift to Growth & Development Paradigm overcome poverty narrow disparities empowerment & employment geographic spread of development

Build Broad Front for Reconstruction & Development government not carry burden alone construct partnership around shared vision crowd in maximum co-operation & resources

Achieve buy-in around iKapa elihlumayo cohere government excite our partners give hope to the poor direct our efforts


iKapa Elihlumayo:GDS: Key Outcomes (1)

100 000 net new formal jobs by 2008 – priority economic sectorsAccelerated export growthExtended Public Works Programme: employment of 120 000 low/un-skilled people by 2008Permanent provincial rapid-response unit, working with social partners to defend current investments and jobsStrengthening the Proudly South Africa campaign Significantly increasing levels of investment in key economic and social infrastructure from the current 1.1% of GRP to 2.5% by 2008. Expressed in the Strategic Infrastructure Plan, IDPs, the NSDP


iKapa Elihlumayo:GDS: Key Outcomes (2)

Improve the investment environment: increasing efficiencies, co-ordinating policies, predictable regulatory environmentAttract new investment of R5 billion into the priority economic areas by 2008Implement the Human Resource Strategy: Youth employment through 10,000 learnerships, alignment of Further Education & Training with economic reality and demandEffective functioning of SETAs & Provincial Skills Development ForumReview the regulatory framework for informal tradingAdvance a broad-based empowerment strategyFacilitate opportunities for co-operatives Integrated system for support & service delivery to small firmsInitiate a pilot project to incubate and graduate 100 emerging entrepreneurs (30% women) providing the full spectrum of services in a coordinated and integrated system


iKapa Elihlumayo:GDS: Progress Report

Kept momentum around these commitments Mainstreamed into strategic planning & budget cycle

of government Mainstreamed into the Cabinet cluster system Monitoring & Evaluation systems are being designed

to track and analyse programmes to deliver on GDS outcomes

Each of the iKapa strategic thrusts are being developed in greater detail to ensure rigorous policies that can informed results-based managementPDC revamped to ensure more streamlined engagement around GDS action points


iKapa Elihlumayo:Lead strategic interventions

StrategicInfrastructure

Plan

Human Resource

Development

Social Capital

Micro-EconomicStrategy

Provincial Spatial Development Framework

Internal Framework for holistic government


iKapa Elihlumayo:Community Safety strategy (2)

Anti-Crime Strategy is Based on People-

orientated, Problem Solving Policing & Community Safety

Strategy


iKapa Elihlumayo:Community Safety strategy (3)10 PILLARS OF ANTI-CRIME STRATEGY

Reduce MurderMaintain Policing StrategyDevelop By Law StrategyMaintain Anti-Gang StrategyDevelop Drug StrategyPrioritise Crime against Women & ChildrenAddress alcohol related crimesAddress train violenceDevelop programme for children at riskCombat corruption


Internal Framework for:Holistic Governance

IntegratedGovernance

ResponsiveGovernance

Globally-connected

GovernanceCo-operativeGovernance

IGR

PCC CGF

IR•Agreements•Protocols•Nepad•iKapa focussed

Social dialogue (PDC)

Communication•E-gov (CEI)•Imbizo’s•Social mob.

Human Rights

•Strategic leadership•Transversal support•M+E+analysis

Development State Ethical GovernanceHolistic Learning Organisation Public Value


iKapa Elihlumayo:Lead strategic interventions

StrategicInfrastructure

Plan

Human Resource

Development

Social Capital

Micro-EconomicStrategy

Provincial Spatial Development Framework

Internal Framework for holistic government


Character of new governmentGovernment works within a clear strategic framework that links short-term interventions and medium programmes (e.g. 100 day deliverables and iKapa strategies due by mid 2005)Government works on the basis of evidence and analysisGovernment manages through a results-oriented system of monitoring and evaluationGovernment operates on the basis of transparency, openness and a commitment to responsivenessGovernment operates within a value-based, partnership model of governance


In summaryWe aim to ensure a business environment that is efficient, corruption-free, predictable and strategic by ensuring supply-side measures to support sustained economic growthWe offer a social vision and strategy that tackles the causes of poverty and inequality which are the greatest threats to resilient economic developmentWe offer an open door for dialogue and engagement so that we can find joint solutions to our complex problems


Responding to Everyday Poverty and Inequality

Inability to affordappropriate

housing

Insecurity of tenure and lack

of rights

Live in unhygienic conditions,

overcrowding, poorquality housing &

servicesLack of safety & Security—pollution, violence & crime.

Ever-present threat of

physical abuse

Lack of access to nutrition & health—

poorer quality & quantity of food.

Poor health

Lack of appropriateeducation—inabilityto afford additional

costs affects education levels

Lack of employment.Insecure & casual work, insufficient

& irregular income

Inability to accesscredit for business

or service provision,lack of collateral

Integrated & Holistic Integrated & Holistic Government!!!Government!!!


Policy LensPolicy Lens: Poverty Reduction & Job CreationIntention is to deepen iKapa strategies by adding a more comprehensive developmental lens to ensure seamless inter-governmental efforts and impactIntention is to connect institutional prerequisites for success with the delivery focus of each iKapa strategy through M & E toolsIntention is to lead one government wide macro debate on the nature and impact of a developmental state to achieve sustainable regional developmentIntention is to feed into and drive social dialogue on (economic) development path for the provinceAchieve commonality of purpose and synergy


Deposits - first 100 days -

Arrest 3 suspected druglords 1 given bail 4 new Police Stations

Harare, Lingelethu, Phillippi East, Kleinvlei

Reopen clothing factory in AtlantisNovel [+- 300 jobs] – 1 day late

Unblock 5 housing projects Imizamo Yethu, Avian Park, Mbekweni, Paarl, Lwandle



Job creation President @ Saamstaan

Keep trains safe 433 new railway police start Jan ’05

Partnerships for development PDC Bill

Register new children for Grants 96184


Deposits - first 100 days - Roll out treatment to HIV + 23 sites 4 325 people

Activate new law to fight gangs POCA

Shorter queues, more medicines, shelter at 9 clinics Delft, Guguletu, Hanover Park, Khayelitsha, Mitchell’s Plain, etc

Electrify rural schools 9/12

Fight child & sexual abuse 13 Family and Child Sexual Abuse Units at police stations



Job creation Clean up operation – 5 Municipalities Community sports facilities – youth upgrade / build – esp. ruralHelp people start businesses R50 mill. p.a. – 118 entrepreneurs – 36 SMMEsTrain emerging farmers Clanwilliam Agricultural College openedEnsure youth development Youth Commission Bill


Deposits - first 100 days - New school in Khayelitsha

Usasazo

Export Karoo lamb Avian flu

Co-ordinate taxi industry Athlone Taxi Office

Mitigate flood disasters emergency teams – food, facilities, relief

Investigate sustainability of golf estates



Improve farmer - farm worker relations Indaba

Invest in local infrastructure – 5 CMIP cheques

Build co-operative governance Councilors Summit

Gov.t to reach the people Walk-in - log in - call in


In summary


Issues for debate (1)

Thank youEnkosi

Documents

Delivering a HOME FOR ALL through Partnerships