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 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
OverviewComing 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 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…
Delivering a Home for All through Partnership
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
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 governmentA common vision and joint programmes are therefore essential
Delivering a Home for All through Partnership
Conceptual Framework (1)
Features of a developmental statepeople-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
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)
Delivering a Home for All through Partnership
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
Delivering a Home for All through Partnership
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
Delivering a Home for All through Partnership
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
Delivering a Home for All through Partnership
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
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 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
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
29%
18.90%
39.50%
23.20%
0%
10%
20%
30%
40%
50%
South Africa Western Cape
1995
2002
Delivering a Home for All through Partnership
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
Delivering a Home for All through Partnership
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
Delivering a Home for All through Partnership
Skills shift mirrors shift in economy II
WC Employment by sector share
0
5
10
15
20
1996
2001
Labour market trends IV
Delivering a Home for All through Partnership
Youth Unemployment
Number of Unemployed by Age, Western Cape
0
10
20
30
40
50
60
70
80
90
100
15
18
21
24
27
30
33
36
39
42
45
48
51
54
57
60
Age
Num
ber
of
Unem
plo
yed
Labour market trends V
Delivering a Home for All through Partnership
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
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
14%
21%
10% 11%
0%
10%
20%
30%
WC
RSA
WC 14% 21%
RSA 10% 11%
Population growth EAP Growth
Delivering a Home for All through Partnership
Distribution of Wealth II
Stagnant per capita GDP
Real per Capita GDP: WC and RSA
2071620685
14087 14325
0
5000
10000
15000
20000
25000
1996
2001
1996 20685 14087
2001 20716 14325
WC Per capita SA Per capita
Delivering a Home for All through Partnership
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
Delivering a Home for All through Partnership
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 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: 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
iKapaElihlumayo
DevelopmentalState
DevelopmentalState
DevelopmentalPartnerships
DevelopmentalPartnerships
(PGDS)
(PDC)
Delivering a Home for All through Partnership
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
Delivering a Home for All through Partnership
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
Delivering a Home for All through Partnership
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
Delivering a Home for All through Partnership
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
Delivering a Home for All through Partnership
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
Delivering a Home for All through Partnership
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
Delivering a Home for All through Partnership
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
Delivering a Home for All through Partnership
iKapa Elihlumayo:
Lead strategic interventions
StrategicInfrastructure
Plan
StrategicInfrastructure
Plan
Human Resource
Development
Human Resource
Development
Social CapitalSocial Capital
Micro-EconomicStrategy
Micro-EconomicStrategy
Provincial Spatial Development Framework
Internal Framework for holistic government
Delivering a Home for All through Partnership
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 STRATEGYReduce 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
Delivering a Home for All through Partnership
Internal Framework for:
Holistic GovernanceIntegrated
GovernanceResponsiveGovernance
Globally-connected
Governance
Co-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
Delivering a Home for All through Partnership
iKapa Elihlumayo:
Lead strategic interventions
StrategicInfrastructure
Plan
StrategicInfrastructure
Plan
Human Resource
Development
Human Resource
Development
Social CapitalSocial Capital
Micro-EconomicStrategy
Micro-EconomicStrategy
Provincial Spatial Development Framework
Internal Framework for holistic government
Delivering a Home for All through Partnership
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 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
Delivering a Home for All through Partnership
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 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
Delivering a Home for All through Partnership
Responding to Everyday Poverty and Inequality
Inability to affordappropriate
housing
Insecurity of tenure and lack
of rights
Live in unhygienic conditions,
overcrowding, poorquality housing &
services
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
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!!!
Delivering a Home for All through Partnership
Policy LensPolicy Lens: Poverty Reduction & Job Creation
Intention is to deepen iKapa strategies by adding a more comprehensive developmental lens to ensure seamless inter-governmental 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 AtlantisNovel [+- 300 jobs] – 1 day late
Unblock 5 housing projects Imizamo Yethu, Avian Park, Mbekweni, Paarl, Lwandle
Delivering a Home for All through Partnership
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
Delivering a Home for All through Partnership
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)
Thank youEnkosi