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Meeting name Date

ContentsA quick recap of what has happenedSummary of diagnostic documentContext for policy makingVision and values in the planKey targetsCritical policy challengesKey messages in the planFeedback on public consultationThe process going forward

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•Commission appointed by President Zuma on 11 May 2010

•... Asked to take a critical, cross cutting and long term view of South Africa and advise the President, Cabinet and the country on a long term vision and plan

•Mandate of the Commission is to engage across society on the vision and plan•A diagnostic report was released on 9 June 2011 containing

•Elements of a vision statement•Combating poverty and inequality as key objectives•Nine challenges confronting the country

•Draft National Development Plan released on 11 November 2011•Six month consultation process with the public, government, political parties and social partners

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Diagnostic reportSet the elimination of poverty and the reduction of inequality as the objectives of the planIdentified nine key challenges that confront us

1. Too few people work2. The quality of school education for black learners is of

poor quality3. Our infrastructure is inadequate, poorly maintained and often

inappropriately located4. Spatial patterns continue to reinforce economic exclusion5. Our development path is unsustainably resource intensive6. We face a high disease burden and our health system is creaking7. Public services are uneven and often of poor quality8. Corruption levels are high9. Despite progress since 1994, we remain a divided society

Following the diagnostic, the draft plan added four areas Rural economy, community safety, social protection and South

Africa in the region and the world

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Policy making in a complex world

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• Population projected to grow by 8.5 million to about 58.5 million in 2030

• Urban population projected to rise by 11 million to 41 million• People under 18 now less than 30% of population and

percentage over 60 below 7% - the so-called demographic window

• HIV/Aids reduced life expectancy significantly up to 2005, this is now beginning to be reversed with anti-retroviral treatment

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Population dynamics to 2030

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6 Pillars of the planThe objectives of the plan is the elimination of poverty and the reduction of inequality through

Uniting South Africans of all races and classes around a common programme to eliminate poverty and reduce inequality

Citizens to be active in their own development, in strengthening democracy and in holding their government accountable

Raising economic growth, promote exports and make the economy more labour absorbing

Focusing on key capabilities of both people and the country Capabilities include skills, infrastructure, social security,

strong institutions and partnerships both within the country and with key international partners

Building a capable and developmental state Strong leadership throughout society to work together

to solve our problems

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Cycle of development

Key targets of the plan 11.Employment: 13 million in 2010 to 24 million in 2030.2.Raise income from R50 000 a person to R120 000. 3.Increase the quality of education so that all children have at least

two years of preschool education and all children in grade 6 can read, write and count.

4.Establish a competitive base of infrastructure, human resources and regulatory frameworks.

5.Reduce poverty and inequality by raising employment, bolstering productivity and incomes, and broadening the social wage.

6.Ensure that professional and managerial posts better reflect the country’s demography

7.Broaden ownership to historically disadvantaged groups. 8.Provide affordable access to quality health care while promoting

health and well-being. 9.Establish effective, affordable public transport. 10.Produce sufficient energy at competitive prices, ensuring access

for the poor, while reducing CO2 per unit of power.9

Key targets of the plan 211.Ensure that all people have access to clean running water in

their homes.12.Make high-speed broadband internet available to all at

competitive prices. 13.Realise a food trade surplus, with one-third produced by small-

scale farmers or households. 14.Entrench a social security system covering all working people,

with social protection for the poor and other groups in need, such as children and disabled persons.

15.Realise a developmental, capable and ethical state that treats citizens with dignity.

16.Ensure that all people live safely, with an independent and fair criminal justice system.

17.Broaden social cohesion and unity by making use of the talents and resources of all South Africans, while taking firm steps to redress the inequities of the past.

18.Play a leading role in continental development, economic integration and human rights. 10

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Critical policy challengesHow do we bring in new entrants into the workplace while still protecting the jobs and conditions of existing workers?Can we transition to a low carbon economy while still exploiting our significant mineral endowment?While infrastructure is critical to enable faster growth, it can have a cost raising effect on the economy in the short termHow do we broaden social protection and social insurance while raising the proportion of people who work?How do we improve state capacity when the state itself is a reflection of a divided and fragmented society?Is there a trade-off between broadening ownership and control of the economy versus stimulating investment and creating jobs

These are critical policy challenges, requiring careful balance in each case

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Key messages in the National

Development Plan

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Economy and employment

New growth path priorities Lowering the cost of living and

improving the business environment

Increasing infrastructure investment

Focusing on sectors with strong domestic linkages

Wage moderation in middle and top of income spectrum

NDP supports these priorities, calls for enhancement through

Better coordination within government

More explicit understanding that we need higher exports to finance higher investment

Some reforms to improve the functioning of the labour market to reduce tension and ease access for young people

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Education, skills and innovationNeed clear accountability chain, including holding schools accountable for performanceExpand pre-school education to 2 years and put in place an under 3 nutrition programme

... But delivery mechanism missing Introduce performance agreements for principals and reduce union and political interference in appointmentsImprove quality of FET education while expanding the size of the sectorThe plan sets key targets for the entire sector

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Capable and developmental state

We need a capable and developmental state that acts to resolve historical inequities through delivering better public services and facilitating investment

Key failings in the state include the administrative – political interface, long term skills planning, strengthening accountability and improved coordination for implementation

Accountability is critical at all levels, starting with parliamentary oversight

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Spatial settlement patterns

Key priorities include: Planning adequately for

urbanisation Finding an institutional

location for spatial planning Resolving fragmentation in

public transport planning Densifying cities Attracting investment into

townships Finding different solutions to

rural local government capacity

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Economic infrastructure

Need to raise public infrastructure spending to 10% of GDPKey priorities include

Energy and water security Freight logistics Public transport Support to the mining value

chain Urban reticulation systems ICT and broadband

Plan sets out principles on financing, cushioning the poor, lessons on sequencing and prioritisation and institutional and regulatory matters

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Rural economyFocuson improving small scale and commercial agricultureHigh potential agricultural land in former homeland areas identified, needs to be developedPlan focuses on building links between small farmers and food consumersThe plan provides an example of how land reform can be fast-tracked,

but recognises that weaknesses at national and municipal level bedevil implementation.

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Environmental sustainability and resilience

Environmental sustainability covers all natural resourcesScorecard approach proposed to assess impact on the environment

Complementary offset proposal to balance developmental needs

Introduce an economy-wide price on carbonSupport for renewables, but concerns raised about institutional arrangementsWe need to transition to a more energy efficient and lower carbon economy at a pace that makes sense for us

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Health and wellnessLong term health determinants must be tackled through

Exercise, nutrition and diet, curbing alcohol and substance abuse, changing sexual behaviour

NHI support, though efforts need to focus on the building blocks

HR capacity in the sector Improving the quality of public

health care Lowering the costs of private

health care Building a district health system

complete with patient database

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Community safetySocial determinants of crime are covered in other parts of the planNeed to professionalise the police

Skills, recruitment practices, training etc

Build specialised units in complex crime areas

Enhance capacity in detective services and improve crime scene analysis

Improve capacity in prosecutorial services and lower courtsImprove efficiency of civil justice system

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Social protectionLong term vision for comprehensive social securitySocial security reforms have to balance broadening coverage with rising employment

Getting this sequencing wrong will result in job losses

Need for alignment and rationalisation of institutionsShort term reforms focusing on broadening coverage of existing social security benefitsLonger term priorities include mandatory savings, risk benefits and health insurance

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CorruptionThree pronged strategy

Enforcement Ensure that anti-corruption agencies

have requisite resources and independence

Prevention Focus on systems, institutional

arrangements and accountability Education in society

Understand social dimensions of corruption

Procurement reforms Differential rules for different types

of tenders Use technology and transparency

to curb corruption Audit value for money in

procurement contracts Clarify rules of business interests

of public servants

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South Africa in the region and the world

Greater regional economic integration is necessary for long term developmentMany of our problems such as energy and food security can be solved taking a regional respectiveObstacles include infrastructure, border post corruption, protectionism and weak regional institutionsPlan also covers global linkages and need for break into fast growing markets

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Social cohesion and nation building

Social cohesion is necessary to transform the country and the economy while reducing poverty and enhancing opportunity (especially for young people) are critical to building social cohesionDespite diverging interests, success will depend on building partnerships across society

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Responsibility for all in society

Implementing the plan requires change and action from all in societyPrivate sector

Increase investment, broaden ownership, career mobility and staff development, fight corruption, use smaller suppliers, buy local, and invest in community development

Financial sector Use strengths to leverage other investments from firms

seeking to use SA as a launch pad, support investment, broaden access to financial services, support small businesses, grow on the continent, invest in staff development, don’t collude in tax evasion and money laundering

Act prudently so as not to destabilise the real sector (as in other countries)

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SiyabongaThank you