Towards 2040 - Unlocking Our Potential

The Western Cape agenda for joint action* on economic development

Draft 23/07/12

*incorporating Future Cape and CCT City Development Strategy

Overview• Purpose and context • A Vision for Change• Transitions and goals• Phasing of ‘step changes’• Vision in action – Employment Works• Enablers • Roles and responsibilities (landing the plan in action through

partnerships)• Managing transitions – the role of a transition management agent• Measuring impact – the role of a Provincial Competitiveness Index

Long-term multi-stakeholder plan for Cape region for joint action on the economy

Purpose

Shared vision

Common values

Fresh thinking

Alignment & partnerships

Innovation and Change

The context

Inadequate job growth to meet the employment

challenge & inequality

(crisis)

Skills and assets deficit

(legacy)

Unsustainable resource use

(risk)

Technological change & innovation

Institutional inertia and fragmentation

Negative mindsets

Our 2040 Challenge*

Creating a resilient, inclusive and competitive Western Cape with higher rates of employment

producing growing incomes, greater equality and an improved quality of life

* Not a differentiated territorial marketing brand but a unifying societal vision

Our Vision for Change

Poorly skilledFactor/efficiency-driven

Resource-intensiveDependent

Low opportunity

Highly skilledInnovation-drivenResource-efficient

Enterprising

High Opportunity

Our Vision for Change

Highly skilledInnovation Driven Resource-efficient

IndependentHigh Opportunity

Can do People

Good Governance

Location & Lifestyle

Centres of excellence

Key transitions 2012-2040 From To

Knowledge transition(Educated Cape)

Unequal variable quality education plus limited innovation capacity

High quality education for all plus high innovation capacity

Economic access transition (Working Cape)

Factor and efficiency driven economy with high barriers to entry and low productivity and entrepreneurship rates

Innovation driven economy with low barriers to entry with high productivity and entrepreneurship rates

Ecological transition (Green Cape)

Unsustainable carbon-intensive resource use

Sustainable low carbon resource use

Cultural transition(Connecting Cape)

Barriers to local and global connectivity (language, identity, distance, parochial attitudes)

High level of local connectivity and global market fluency

Settlement transition (Living Cape)

Unhealthy, low access, often alienated, low opportunity neighbourhoods

Healthy, accessible, liveable multi-opportunity communities

Institutional transition (Leading Cape)

Defensive, adversarial structures Open, collaborative systems

6 Focus Areas with foundation and aspirational goals

• Every person will be appropriately educated for opportunity• Centres of ecological, creative, science and social innovationEducating Cape

• Anyone who wants to be economically active is able to work•Entrepreneurial destinations of choiceEnterprising Cape

• Functioning ecosystems working for and with communities • Leader in Green Economy especially energy and waterGreen Cape

• Welcoming, inclusive and integrated communities• Global meeting place and connector with new marketsConnecting Cape

•Liveable, accessible, high-opportunity neighbourhoods & towns• Ranked as one of greatest places to live in world

Living Cape

• Ambitious socially responsible leadership at all levels• World-class institutions Leading Cape

6 Focus Areas Levers of change

• Step change in ECD provision linked to school performance improvements and in school partnerships leveraging pockets of excellence

• Innovation networks linking investors, researchers and entrepreneursEducating Cape

•Intensive subsidised work opportunity creation in public an private sectors• Focus on social enterprise as a vehicle for economic growth and jobs

Enterprising Cape

• Energy and water infrastructure and regulation geared to sustainable resource use

• Cross sectoral partnerships to fast-track a green agendaGreen Cape

• Programmes to build inter-community partnerships and cohesion• Expanded cultural and trade ties with targeted regions in Africa, Latin

America and AsiaConnecting Cape

•Major improvement in public transport and pedestrian access• Shift from subsidised housing to improved household and community

servicesLiving Cape

• Multi-level collaborations for innovation (EDP eco-system)• Leadership development to cultivate ambition and responsibility at

all levelsLeading Cape

Required step change

Time

Mea

sura

ble

outc

omes

2012-2019Creating the

platform

2020-2026Implementing at

scale

2034-2040Sustaining

performance

2027-2033Accelerating

Improvement

Unlocking potential

Business as usual

Required step change

Time

Mea

sura

ble

outc

omes

2012-2019Creating the

platform

2020-2026Implementing at

scale

2034-2040Sustaining

performance

2027-2033Accelerating

Improvement

ScalingTesting ConsolidatingRefining

Work Jobs Productivity Job Up-skilling

School basics

Schoolenhancement

Post-schoolscaling

System excellence

Retention &diversification

Scaling innovation

Marketleadership

Embeddingexcellence

Employment

Skills

Growth

Hard an

d soft

Infrastr

ucture

The Vision in Action : Employment Works Accelerated work opportunities at scale

Flagship : Intensive programme to get unemployed young people into structured programme of supervised work and learning on subsidised stipend-based basis

Major direct impact on range of social challenges

from crime to drugs to employability if scaled

correctly

Builds on range of tested approaches and managed

on more holistic and innovative basis than any

previous programme

Supports all 6 focus areas and captures critical vision

elements in single programme

The Vision in Action : Employment Works Possible components, scale and ramp-up

Year Part-time CWP-type work opportunities (@R 15 000 each pa)

Full-time work experience placements (@ R 30 000 each pa)

Approximate cost per annum

2013 25 000 - R 375m2014 50 000 5 000 R 900m2015 75 000 20 000 R 1 725m2016 100 000 40 000 R 2 700 m2017 125 000 80 000 R 4 275m2018 150 000 100 000 R 5 250m2019 200 000 100 000 R 6 000m

Supplemented by incentivising the creation of range of social enterprises that address the challenges using a commercial frame and leverage new jobs and work opportunities e.g. via a Social Enterprise Fund

The Vision in Action : Employment Works CWP-type work examples – social need focus

Educating Cape

•ECD, teaching and library assistants•ICT coaching•Sports coaching•Community food gardens•Music and drama teaching

Green Cape

•Alien clearing & fire breaks•Waste collection and recycling

Living Cape •Health educators•Greening and cleaning•Green drops fixing leaks•Janitorial officers•Safety officers•Anti-drug counselling

The Vision in Action : Employment Works Multiple reinforcing possibilities

•Via agencies such as Dreamworker and MoSR•Link to business commitment to take on participants

Pathways to formal employment through

job intermediation

•Dreamfields proposed model•Firm involvement (Symphonia model)

Private involvement in enhancing project areas

•Proving management and mentoring (E.g Teach America)•Also role of retirees

Voluntary “gap year” service from

new graduates

The Vision in Action : Employment WorksBridging the Big Picture

Getting people into work • Community Works type programmes• Private Works programmes• Social enterprise at scale

Getting people into jobs• Job intermediation at scale• Community Works mainstreamed• Private Works continued• Social enterprise and business growth

Increasing productivity• Works programmes downscaled as more and more people move into employment• Impact of work and jobs programmes showing results• Big focus shifts to productivityJob up-skilling

• Big focus on building a resilient work-force through up skilling

2012-2019 2020-2026 2027-2033 2034-2040

High levels of unemployment

Low levels of confidence

Alienated youthHigh levels of anti-

social behaviour

Reducing unemployment

Increased confidenceLower levels of anti-

social behaviour

Better functioning

society

Maturing demography

Training

Employment Intermediation

Enablers

RegulationSpatial planning and land use development

and management regulations

Regulations to incentivise and facilitate the green growth agenda

Creating seamless and efficient government

Spatial FocusConnecting and concentrating

CT Coastal Metro & economic hub

‘Regional Transport Corridor and new growth area N7

‘Regional Motor’

Saldhana-Vredenburg and secondary node

‘Regional Development Corridor’Oliphants River Valley

‘Regional Development Corridor’Breede River Valley

‘Regional Motor’

South Cape and secondary node

‘Regional Transport Corridor’ new growth potential along N2

Roles and responsibilitiesGoals Public Sector Private Sector Labour Community

Educated Cape

•Manage an effective and efficient education system to global standards

•Facilitate a collaborative innovation system

•Facilitate resilient workers by providing ongoing training to adapt to new technologies •Invest in collaborative R&D and encourage spill-overs into the local economy

•Support schools based improvements in line with global standards

•Facilitate ongoing skills development of workers

•Support the education drive and run complementary programmes that unlock ambition

Enterprising Cape

•Catalyse work through public sector employment programmes & facilitate social enterprise creation

• Invest in growth and job creation and create bridges into employment linked to Employment Works

•Provide mentorship to learners and new employees

•To change consumption patterns to local, slow products

Green Cape •To leverage public sector spending to create demand for and lead the change to green technologies

•To invest in sustainable and green technologies & innovation

•To change consumption and working patterns to reduce, re-use and eliminate wastage

•To change consumption patterns to reduce, re-use and eliminate wastage

Connecting Cape

• Recognise and leverage the potential of partnerships

• Shift from Eurocentric orientation and markets to African and global orientation

• Shift from insular and scarcity based to open and abundance based relationships

• Shift from threatened closed communities to open and welcoming communities

Living Cape • Shift from a focus on housing to one on services, community infrastructure and public transport

• Invest in designing and developing new sustainable solutions to improve living environments, especially for the poor

•Work with the public sector to identify community works and innovation opportunities to improve settlements

• Create welcoming, liveable, safe, high-opportunity communities and neighbourhoods

Leading Cape • Lead world class service oriented delivery and sustainable approaches

• Lead shared value creation, collaboration and sustainable approaches

• Lead world class service delivery

• Active citizenship through collaborative partnerships

Public sector roles and responsibilities Goals Public Sector National Provincial Local and Districts

Educated Cape

•Manage an effective and efficient education system to global standards •Facilitate a collaborative innovation system

•Manage post schooling education excellence

•Set up national systems to encourage innovation

• Manage ECD and schools based excellence•Facilitate local multi-sectoral knowledge & innovation partnerships

• Facilitate ECD provision and ensure every child has access to a library and sports facilities

Enterprising Cape

•Catalyse work through public sector employment programmes & facilitate social enterprise creation

•Fund public works and community works programmes at scale• Address the business regulatory environment

• Fund provincial public and community works programmes at scale• Facilitate social enterprise creation and resourcing

• Implement and provide supplementary funding for public and community works programmes•Reduce the land development costs

Green Cape •To leverage public sector spending to create demand for and lead the change to green technologies

• Use energy, water, transport and MIG funding to lead green technology change

• Use transport, energy, housing and bulk service budgets to lead green change

• Use bulk services and energy budgets to lead green change and incentivise green building technologies

Connecting Cape

• Recognise and leverage the potential of partnerships

• Facilitate continental and global partnerships

• Facilitate regional and global partnerships with emerging markets

• Facilitate inter-community collaboration

Living Cape • Shift from a focus on housing to one on services, community infrastructure and public transport

• Promote healthy living • Invest more community services and infrastructure & incentivise rather than fund housing

• Invest more in public transport, services and community infrastructure & incentivise rather than fund housing

• Invest in public transport and safety

Leading Cape • Lead world class, service oriented delivery

• Lead world class service oriented public sector culture

• Facilitate and reward service excellence

• Collaborate to deliver world class services

Problem assessmentCreation of

Transition Arena/ Manager

VisionTransition Agendas

Mobilising stakeholders

Executing projects and experiments

EvaluatingMonitoring

LearningRecalibrating

Future Cape Contextual ReportLegacy: Skills and assets deficitsCrisis: Inadequate job growthRisk: Unsustainable resource use

Processes & toolsEconomic Data Synergy ProjectProvincial Competitiveness Index ProjectLeadership Development Programme EDP as collaborative

intermediary cross-sector partnership facilitating multi-actor transition

arena

Economic Transition Management Model

Creating institutional base for 2040 strategy managementProgrammes: Employment Works Programme Other: 110% green, regional innovation network, etc

1

2

3

4

One Cape 2040: A deliberate attempt to stimulate a transition towards a more inclusive and resilient economyJoint Transition Agendas: Knowledge, Economic, Cultural, Settlement, Ecological, Institutional

Example: Vietnam Provincial Competitiveness Index – DAI and The Asia Foundation, 2011

Entry Costs

Land access and security

of tenure

Transparency and access to information

Time costs of regulatory

compliance

Informal charges

Proactivity of provincial &

local leadership

Business support services

Labour and training

Legal institutions

2040 Index (draft)Goals Indicators

Educated Cape

• Numeracy and literacy levels and global performance

• Number of patents •Employment and earning rates of technical and tertiary education graduates

Enterprising Cape

• Employment levels and productivity of the workforce

• Entrepreneurship levels

• GDP and business growth

Green Cape • energy and water security as measured by reduction in consumption, new technology provision and cost

• Carbon footprint • Levels of technological innovations to reduce resource use

Connecting Cape

•Levels of trust and tolerance

• Levels of anti-social behaviour

• Ease of doing business across our borders into Africa

Living Cape • Health and safety levels • Public transport connectivity

• Quality of life

Leading Cape • Networks and collaborative capacity

• Pro-activity of leadership

• Mechanisms to incentivise job creation, social enterprise and green technologies

Towards 2040: Unlocking our potential Next steps

30 July 2012Draft vision &

strategy

Draft vision and strategy document approved

Aug – Sept 2012Engagements to

develop and ‘land’ the 6 transitions

Build transition management

capacity through the

EDP

Review existing government plans

(i.e. SO1-12); Develop details of

Employment Works

Oct – Dec 2012Mobilisation: projects and partnerships

Set up the project task teams and

partnerships

Secure resources to implement the

transition agendas, in particular Employment

Works

2013 onwardsCommunication &

engagement

Communicate the plan and Employment Works to the

public

Design and activate

Provincial Competitiven

ess Index

What is new?

• Reflects shift of discourse– From welfare to shared responsibility– From government leads to collaborative action– From corporatism to collaborative innovation

• Subsidised work at scale as integrating action and manifestation of vision

• Emphasis on social enterprise • Institutional arrangements required drive multi-stakeholder

agenda • Short-term action linked to long-term perspective• Merging of City, Locals and Province intent into single message

Thanks

This product is the collaborative work of a number of individuals and organisational inputs. In particular the team would like to thank:– EDP team– EDP members– Future Cape Provincial Task Team– Strategies for Change– CCT CDS Team and task team– Freedthinkers– All various individuals and organisations that have

participated in the CDS, Future Cape or One Cape process