Download Setting the scene

Delivering a HOME FOR ALL
through Partnerships
Cabinet Meets labour
Premier Ebrahim Rasool
Cape Town Convention Centre
17 November 2004
Purpose of engagement
Difference DA expansion of Dialogue Historic
To consolidate our “development consensus”
reached at the PGDS in October 2003
To deepen the foundation for joint action to
address the challenges facing the Western Cape
To inform our labour partners about our progress
in gearing-up to deliver on our vision – a home for
all – through our iKapa elihlumayo strategy
To keep the channels of communication open to
ensure a listening and responsive government
Delivering a Home for All through Partnership
Overview
Coming to terms with the Development Challenges in
the Western Cape
Need for a developmental state & partnerships
iKapa Elihlumayo as Strategy of government
Outcome of PGDS commitments made in 2003
The strategic approach of government: deepening the
strategies of iKapa and gearing up government for
delivery
Implications for labour
Challenges for labour to make the partnership work
Delivering a Home for All through Partnership
Understanding the State (1)
Inherited a 20th C model of public admin:
Functionality principle
Mixed 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…
Delivering a Home for All through Partnership
Understanding the State (2)
Western Cape State

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

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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
Delivering a Home for All through Partnership
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 government
A common vision and joint programmes are therefore essential
Delivering a Home for All through Partnership
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.
Delivering a Home for All through Partnership
Recap context of transition:
External challenges
Employment
 Unemployment: 26% of economically active
 Unemployability of +20 year olds
 18% matric, 10% tertiary, 21% incomplete primary education
Economy
 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)
Delivering a Home for All through Partnership
Economic growth trends I
Signs of slowdown since 1999
GDP Growth rates (1995 Rands)
5.00%
4.50%
4.00%
3.50%
3.00%
2.50%
2.00%
1.50%
1.00%
0.50%
0.00%
WCape
SA
1996
1997
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1998
1999
2000
2001
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
100000
90000
80000
With
70000
Without
60000
50000
40000
1995
1996
1997
1998
1999
2000
2001
With
78221
81850
84235
84506
88304
91365
93727
Without
55244
56635
57889
56631
57720
58679
59359
Delivering a Home for All through Partnership
Economic growth trends I
Signs of slowdown since 1999
GDP Growth rates (1995 Rands)
5.00%
4.50%
4.00%
3.50%
3.00%
2.50%
2.00%
1.50%
1.00%
0.50%
0.00%
WCape
SA
1996
1997
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1998
1999
2000
2001
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
100000
90000
80000
With
70000
Without
60000
50000
40000
1995
1996
1997
1998
1999
2000
2001
With
78221
81850
84235
84506
88304
91365
93727
Without
55244
56635
57889
56631
57720
58679
59359
Delivering a Home for All through Partnership
Economic growth trends III
Current slow-down in these industries pulls down provincial growth
National growth rates in key Wes tern Cape s ectors
9.00%
8.00%
7.00%
6.00%
5.00%
4.00%
3.00%
2.00%
1.00%
0.00%
1995-2001
2002-2003
Agricul Manufa Cons tr Wholes Trans p Finance
, Real
ort &
ale &
cturing uction
ture,
Total
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%
Delivering a Home for All through Partnership
Economic growth trends Summary
Steady growth from 1995-2001 (2.9% average)
But signs of slowdown since 1999
Growth driven by Tertiary sector
Transport & Communication and Finance, Real
estate & Business industries drive almost all growth
Current slow-down in these industries pulls down
provincial growth
Delivering a Home for All through Partnership
Labour market trends I
Faster than national employment growth, but all new
entrants not being accommodated…
Unemployment Rates: WC & RSA
50%
40%
30%
39.50%
29%
23.20%
18.90%
20%
1995
2002
10%
0%
South Africa
Delivering a Home for All through Partnership
Western Cape
Labour market trends II
But high Black African unemployment
Western Cape Unemployment rates by
population group
50.0
40.0
30.0
20.0
10.0
0.0
41.5
32.3
18.5 22.4
African
Delivering a Home for All through Partnership
Coloured
1995
16.4
10.1
6.7
Asian
White
6.9
2002
Labour market trends III
Skills shift mirrors shift in economy I
Unskilled employment as share of total
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
1995
2000
l
t a ed
s
i
To
ld
cif ho
pe
se
ns ou i ces
U
e H Serv
at
iv
ty
.
ni
Pr
u
i..
m
un
m
m
Co e
m
Co
nc
na t &
Fi
r
o
e
sp
a n rad
Tr l T
a
rn on
te
In uct i
tr
ns
Co
es
iti
ng
til turi ing
U
rry
ac
uf ua
Q
an
M &
g
in
e
in
M l tur
icu
gr
A
Delivering a Home for All through Partnership
Labour market trends IV
Skills shift mirrors shift in economy II
WC Employment by sector share
20
15
10
5
0
M
A
gr
ic
ul
tu
re
M
an ini
n
uf
ac g
tu
r in
g
El
ec
t
W Co rici
t
ho ns
tr u y
le
sa
ct
le
io
an n
d
re
t
Tr ail
an
Fi spo
n
r
C
om anc t
ia
m
un l et
c
it
Pr y, s
oc
iv
at
ia
e
h/ l
ho
ld
s
1996
2001
Delivering a Home for All through Partnership
Labour market trends V
Youth Unemployment
Number of Unemployed by Age, Western Cape
Number of Unemployed
100
90
80
70
60
50
40
30
20
10
Age
Delivering a Home for All through Partnership
60
57
54
51
48
45
42
39
36
33
30
27
24
21
18
15
0
Labour market trends VI
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)
Delivering a Home for All through Partnership
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
Delivering a Home for All through Partnership
Distribution of Wealth I
Increased population and EAP
Population and EAP Growth: WCape
& RSA
30%
20%
21%
14%
10%
11%
RSA
10%
0%
Population growth
EAP Growth
WC
14%
21%
RSA
10%
11%
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WC
Distribution of Wealth II
Stagnant per capita GDP
Real per Capita GDP: WC and RSA
25000
20716
20685
20000
14325
14087
15000
1996
10000
2001
5000
0
WC Per capita
SA Per capita
1996
20685
14087
2001
20716
14325
Delivering a Home for All through Partnership
Distribution of Wealth III
Inequality higher than national and increasing
WC and RSA Gini Coefficients
0.7
0.6
0.56
0.5
0.57
0.602
0.625
RSA
WCape
1995
0.56
0.602
2000
0.57
0.625
Delivering a Home for All through Partnership
Recap context of transition:
Internal challenges
Budget
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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
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Healthcare 2010 is an adjustment package
Education = inability to address great inequity and job loss
threats

HRD strategy
Housing = massive and growing backlogs (320 000)

Programmes afoot to promote new human settlements policy
(e.g. N2)
Economic development – limited expenditure available

Maximise partnerships
Delivering a Home for All through Partnership
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)
Delivering a Home for All through Partnership
Implications of external & internal
challenges
We have no choice but to:
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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?
Delivering a Home for All through Partnership
Linking strategy to institutions
iKapa
Elihlumayo
Developmental
State
Delivering a Home for All through Partnership
(PGDS)
(PDC)
Developmental
Partnerships
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 through
1. A theory of: the Modern African State
2. 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, cooperative, responsive and globally connected
governance)
4. Achieve objectives through partnerships
5. Foster active citizenship to unleash energy
within civil society and families
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Stay focussed on creating:
A HOME FOR ALL
Societal features:
Persistence of gross economic
inequalities
Racial polarisation (and denial
of systemic racism)
Religious intolerance
Social conflict at household
and community levels
 What holds us together?
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Need a galvanising
vision that can unify
society and (re)build
social cohesion
A HOME FOR ALL
iKapa Elihlumayo:
Critical Paradigm Shifts for Government
Shift from Welfare Dependence to Economic SelfReliance
Grow the Economy, Increase Employment,
Broaden Ownership
Fight Poverty, Reduce Disparity, Improve Living
Standards
Delivering a Home for All through Partnership
iKapa Elihlumayo:
GDS: Key Objectives for Government
Shift to Growth & Development Paradigm
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overcome poverty
narrow disparities
empowerment & employment
geographic spread of development
Build Broad Front for Reconstruction & Development
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government not carry burden alone
construct partnership around shared vision
crowd in maximum co-operation & resources
Achieve buy-in around iKapa elihlumayo
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cohere government
excite our partners
give hope to the poor
direct our efforts
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iKapa Elihlumayo:
GDS: Key Outcomes (1)
100 000 net new formal jobs by 2008 – priority economic
sectors
Accelerated export growth
Extended Public Works Programme: employment of 120 000
low/un-skilled people by 2008
Permanent provincial rapid-response unit, working with
social partners to defend current investments and jobs
Strengthening 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
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iKapa Elihlumayo:
GDS: Key Outcomes (2)
Improve the investment environment: increasing efficiencies, coordinating policies, predictable regulatory environment
Attract new investment of R5 billion into the priority economic
areas by 2008
Implement the Human Resource Strategy: Youth employment
through 10,000 learnerships, alignment of Further Education &
Training with economic reality and demand
Effective functioning of SETAs & Provincial Skills Development
Forum
Review the regulatory framework for informal trading
Advance a broad-based empowerment strategy
Facilitate opportunities for co-operatives
Integrated system for support & service delivery to small firms
Initiate a pilot project to incubate and graduate 100 emerging
entrepreneurs (30% women) providing the full spectrum of
services in a coordinated and integrated system
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iKapa Elihlumayo:
GDS: Progress Report
Kept momentum around these commitments
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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
management
PDC revamped to ensure more streamlined
engagement around GDS action points
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iKapa Elihlumayo:
Lead strategic interventions
MicroEconomic
Strategy
Human
Resource
Development
Provincial Spatial
Development
Framework
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Strategic
Infrastructure
Plan
Internal Framework
for holistic government
Social
Capital
iKapa Elihlumayo:
Community Safety strategy (2)
Anti-Crime Strategy is
Based on People-orientated,
Problem Solving Policing &
Community Safety Strategy
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iKapa Elihlumayo:
Community Safety strategy (3)
10 PILLARS OF ANTI-CRIME STRATEGY
Reduce Murder
Maintain Policing Strategy
Develop By Law Strategy
Maintain Anti-Gang Strategy
Develop Drug Strategy
Prioritise Crime against Women & Children
Address alcohol related crimes
Address train violence
Develop programme for children at risk
Combat corruption
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Internal Framework for:
Holistic Governance
Integrated
Governance
Responsive
Governance
Co-operative
Governance
Globallyconnected
Governance
IGR
IR
•Strategic
Social Communication
leadership
dialogue •E-gov (CEI)
PCC
•Transversal
•Imbizo’s
(PDC)
support
•Social mob.
•M+E+analysis
Human
Rights
CGF
•Agreements
•Protocols
•Nepad
•iKapa focussed
Development State
Ethical Governance
Holistic
Learning Organisation Public Value
Delivering a Home for All through Partnership
iKapa Elihlumayo:
Lead strategic interventions
MicroEconomic
Strategy
Human
Resource
Development
Provincial Spatial
Development
Framework
Delivering a Home for All through Partnership
Strategic
Infrastructure
Plan
Internal Framework
for holistic government
Social
Capital
Character of new government
Government 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 analysis
Government manages through a results-oriented system
of monitoring and evaluation
Government operates on the basis of transparency,
openness and a commitment to responsiveness
Government operates within a value-based, partnership
model of governance
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In summary
We aim to ensure a business environment that is
efficient, corruption-free, predictable and strategic
by ensuring supply-side measures to support
sustained economic growth
We offer a social vision and strategy that tackles the
causes of poverty and inequality which are the
greatest threats to resilient economic development
We offer an open door for dialogue and engagement
so that we can find joint solutions to our complex
problems
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Responding to
Everyday Poverty and Inequality
Lack of employment.
Insecure & casual
work, insufficient
& irregular income
Lack of appropriate
education—inability
to afford additional
costs affects
education levels
Inability to access
credit for business
or service provision,
lack of collateral
Inability to afford
appropriate
housing
Integrated & Holistic
Government!!!
Lack of access to
nutrition & health—
poorer quality &
quantity of food.
Poor health
Delivering a Home for All through Partnership
Lack of safety &
Security—pollution,
violence & crime.
Ever-present
threat of
physical abuse
Insecurity of
tenure and lack
of rights
Live in unhygienic
conditions,
overcrowding, poor
quality housing &
services
Policy Lens
Policy Lens: Poverty Reduction & Job Creation
Intention is to deepen iKapa strategies by adding a more
comprehensive developmental lens to ensure seamless intergovernmental efforts and impact
Intention is to connect institutional prerequisites for success
with the delivery focus of each iKapa strategy through M & E
tools
Intention is to lead one government wide macro debate on the
nature and impact of a developmental state to achieve
sustainable regional development
Intention is to feed into and drive social dialogue on
(economic) development path for the province
Achieve commonality of purpose and synergy
Delivering a Home for All through Partnership
Deposits - first 100 days Arrest 3 suspected druglords
1 given bail
4 new Police Stations
Harare, Lingelethu, Phillippi East, Kleinvlei
Reopen clothing factory in Atlantis
300 jobs] – 1 day late
Novel [+-
Unblock 5 housing projects
Imizamo Yethu, Avian Park, Mbekweni, Paarl, Lwandle
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Deposits - first 100 days 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
Delivering a Home for All through Partnership
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
Delivering a Home for All through Partnership
Deposits - first 100 days Job creation
Clean up operation – 5 Municipalities
Community sports facilities – youth
upgrade / build – esp. rural
Help people start businesses
R50 mill. p.a. – 118 entrepreneurs – 36 SMMEs
Train emerging farmers
Clanwilliam Agricultural College opened
Ensure youth development
Youth Commission Bill
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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
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Deposits - first 100 days 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
Delivering a Home for All through Partnership
–
In summary
Delivering a Home for All through Partnership
Issues for debate (1)
Delivering a Home for All through Partnership
Thank you
Enkosi