Imperatives of alignment

Imperatives of alignmentiKapa Elihlumayo – Growing & Sharing the Cape

Preparatory Premier’s Intergovernmental Forum

Spier Conference Centre1 June 2005

Premier’s Inter-governmental Forum

1 June 2005

OverviewManifestations of weak alignment

Development challenges of the Cape

National Imperatives for alignment

Tools and institutions for alignment

Priorities for moving forward


1 June 2005

Evidence of weak alignment

Contradictory and divergent development policies and plans within and between municipalities

Unstrategic competition to attract inward investment

Disconnect between local development plans and regional economic and environmental systems

Limited information and knowledge sharing on effective service delivery and management of growing demands

Inability to achieve triple bottom-line outcomes

Political tensions that arise from the lack of synergy between municipalities and spheres of government


1 June 2005

Consequences of weak alignment

Moderate economic growth (and decline in some areas)

Limited job creation (and job shedding in some areas)

Limited to zero impact on the second economy

Unsustainable development policies and practices

Growing services backlog

Loss of political legitimacy (and support)

Increased unhealthy competition between areas


1 June 2005

Weak alignment set in context

Economic growth trends & prospects: too modest

Employment/Unemployment Crisis: increase

Poverty and inequality levels: on the up

Access to basic services: rising demand


1 June 2005

WC Macro-Economic Outlook, 2004/05 - 2007/08

2003/4 2004/5F 2005/6F 2006/7F 2007/8 F

GDPR (Rbn) 185.4 203.1 222.8 244.8 263.8

Real GDPR growth

3.3 4.1 4.3 4.0 3.9

CPI inflation 4.6 2.3 4.5 5.5 3.7

GDPR inflation

6.3 5.3 5.1 5.7 3.8

RSA GDP growth

2.6 4.2 3.9 3.5 3.2


1 June 2005

WC Sectoral Real Economic Growth, 2004/5 – 2006/7

1.3

1.6

1.7

2.2

3.4

3.8

4.2

4.4

5.6

6.0

9.5

0 2 4 6 8 10

Mining and quarrying

General government

Electricity and water

Agriculture, forestry & fishing

Manufacturing

CSP services

Western Cape GDPR

Finance & business services

Transport and comm

Wholesale, retail & catering

Construction


1 June 2005

Cross-sectoral economic trends

Outperforming SA in output, poorer in employment (due to low informal sector growth)

Growth from tertiary sectors which holds implications for those with/without skills

Importance of finance and business services: output and employment generation

Decline in manufacturing employment, especially textiles and clothing

Effects of tourism: critical but also uncertain


1 June 2005

Unemployment Rates2000 2003

WC SA WC SA

Total 22.6 35.9 26.1 41.7

By Race…

- African 39.1 41.9 42.9 48.7

- Coloured 21.9 27.5 24.2 29.3

- White 5.8 8.3 9.4 7.6

By Gender…

- Male 19.2 30.8 23.3 35.7

- Female 26.4 41.1 29.2 47.7

By Age…

- 16-25 years 43.8 59.3 49.4 69.2

- 26-35 years 19.9 38.7 23.7 43.1

- 36-45 years 14.2 24.2 16.8 28.3

- 46-55 years 14.8 19.4 13.1 23.4

- 56-64 years 10.3 13.2 14.1 15.5


1 June 2005

W-Cape Poverty Levels by Race

1995 2000

WesternCape H/C H/C # Poor

R174

African 0.21 0.17 191 798

Coloured 0.09 0.08 180 515

White 0.00 0.01 7 521

R322

African 0.48 0.53 597 957

Coloured 0.33 0.27 609 240

White 0.01 0.01 7 521


1 June 2005

W-Cape Household Services Access by Income Quintile, 2000

20% 40% 60% 80% 100% Total

DWELLING TYPES

Formal 61.4 77.2 84.0 93.6 98.4 82.9

WATER ACCESS

Piped in dwelling 44.1 60.0 75.8 90.9 97.6 73.7

Piped on site 32.5 25.8 14.9 5.2 1.3 15.9

Public Tap 21.3 11.8 8.9 3.9 0.5 9.3

ENERGY : LIGHTING

Electricity 72.1 81.9 90.1 96.3 98.8 87.8

Paraffin 12.3 7.0 3.9 1.7 0.1 5.0

Candles 15.2 10.1 5.4 1.7 0.5 6.6

ENERGY : COOKING

Electricity 48.7 68.2 79.8 93.8 94.8 77.0

Paraffin 34.8 18.7 12.5 4.7 0.7 14.3

Wood 10.8 6.4 1.9 0.2 0.0 3.9


1 June 2005

W-Cape Household Services Access by Income Quintile, 2000

Quintiles 2000

20% 40% 60% 80% 100% Total

SANITATION

flush in dwelling 37.4 54.6 71.9 89.3 98.5 70.3

flush/ chem on site 34.6 26.6 16.9 7.2 1.0 17.3

pit on site 2.0 4.1 1.4 1.1 0.1 1.7

bucket on site 4.2 1.9 1.9 0.9 0.0 1.8

any offsite 16.7 8.3 4.6 1.3 0.5 6.3

none 5.0 4.4 3.4 0.2 0.0 2.6

TELEPHONE

cell only 2.5 5.2 5.7 9.3 11.9 6.9

landline only 17.4 30.1 44.6 45.3 20.2 31.5

cell & landline 1.3 3.8 9.2 30.6 62.3 21.5

other 78.6 60.5 40.4 14.2 4.9 39.7


1 June 2005

Implications of contextual trendsDevelopment Crisis

Massive and stubborn unemployment due to restructuring of the economy and insufficient growth

Deepening inequality, which exacerbates poverty

Growing services backlogs due to rapid growth of households

Social dysfunction and implosion, especially in poor communities


1 June 2005

Response: Shared Growth & Development

Critical overarching outcomes to pursue:Enhancing provincial economic growth above 6%Advancing broad-based provincial economic participation (unemployment below 20% in 5yrs; below 10% in 15 yrs)Increasing provincial employmentReducing transaction & input costs of doing business in Province (esp. SMMEs)Strengthening social inclusion & cohesion (social capital)Improving human development potential in terms of access to quality basic & social servicesEnhancing environmental & resource sustainability in relation to provincial growth & development path

HOW?HOW?


1 June 2005

National imperatives for alignment

Ten Year Review captured impressive progress in first decade, but not sufficient to achieve overall objectives of the People’s Contract

Vision 2014 sets the course for more strategic agenda to achieve a more dynamic growth path

Primary priorities:1. GROW THE ECONOMY

2. Establish sustainable livelihoods that involve the marginalised

3. Extend grants but also move away from dependency to economic self-reliance

4. Improve the capacity and performance of the state for growth and development


1 June 2005

National imperatives (2)“there are hundreds of thousands of things that government does and should continue to do; but it should define a new trajectory of growth and development, identify the key things required to attain it, and make strategic choices in expending effort and allocating resources in order to blaze along this new trail” (MTSF 2004-2009)

NB: Making the right strategic choices requires sound information and analysis about development trends, opportunities and challenges

People’s Contract Manifesto

Vision 2014

MTSF 2004-2009NSDP

PGDSPSDF

IDPMSDF


1 June 2005

Less successful in growing the economy or creating jobs although more positive changes recently

Rationale for greater alignment (1)

Four major social trends (demographics, labour market, household size, migration) in last decade affected ability to make a sustainable impression on unemployment & poverty despite substantial government intervention

Key: Better Performance by the State

Better at providing services and grants

Persistent and widespread poverty & unemployment – foremost challenges

In the last 9 years we have been:


1 June 2005

Make govt as a whole work better

in meeting common objectives and

outcomesNeed for

decisive, coordinated

interventions to improve the

state's capacity to spend & deliver services

Need to include a geographical

dimension to growth and employment.

- Better performance by the state - - Better performance by the state -

Rationale for greater alignment (2)


1 June 2005

Elements of alignment and harmonisation

Structured and systematic dialogue

(PCC & PIF)

Coordinated and integrated action

Common objectives and maximise development

impact


1 June 2005

A system for coordinated government priority setting, resource allocation and implementation requires a strategic

basis moving beyond mere structures and procedures

A system for coordinated government priority setting, resource allocation and implementation requires a strategic

basis moving beyond mere structures and procedures

Improving the performance of the state through greater alignment

3. Strategic principles for infrastructure investment and development spending

2. A shared agreement on the

nature and characteristics of

the space economy

1. Alignment of strategic development

priorities and approaches in all

planning and budgeting processes


1 June 2005

The normative principles and guidelines embodied in the national spatial perspective provide the central organising concept for facilitating alignment and serve as the mechanism and basic platform for better coordination and alignment of government programmes.

Space economy

Infrastructure investment

Development spending

Provincial planning

National spatial

guidance

Integrated development

planning in the local sphere

National priorities

and objectives

Elements of alignment system


1 June 2005

NSDP Principles1. Economic growth is a prerequisite for the

achievement of other policy objectives, key among which would be poverty alleviation.

2. Government spending on fixed investment, beyond the constitutional obligation to provide basic services to all citizens (such as water, electricity as well as health and educational facilities), must target localities of economic growth and/or economic potential in order to attract Private-sector investment, stimulate sustainable economic activities and/or create long-term employment opportunities.

3. Efforts to address past and current social inequalities should focus on people not places.


1 June 2005

NSDP Principles, cont4. In localities where there are both high levels of

poverty and development potential, include fixed capital investment beyond basic services to exploit the potential of those localities.

5. In localities with low development potential, government spending, beyond basic services, should focus on providing social transfers, human resource development and labour market intelligence.

6. In order to overcome the spatial distortions of apartheid, future settlement and economic development opportunities should be channelled into activity corridors and nodes that are adjacent to or link the main growth centres.


1 June 2005

NSDP leads to a strategic approach

Basic Services

Economic Dev.

Safety Net

Citizenship &political

empowerment

Sustainable Human Settlements

Success requires an aligned state


1 June 2005

IDP/PGDSIDP compiled through bottom-up consultative processes Inputs from line functions Sectoral imperatives Filtering of communities’ needs into strategic objectives of

municipality and available resources and capacity to deliver

Province’s PGDS in process through Outcomes of Prov Growth & Devt Summit Agreement (PDC) iKapa elihlumayo strategies Contributions of 30 IDPs Analysis that flow from the Provincial Economic Review &

Outlook (PER&O) Sustainable Development Implementation Plan Provincialisation of NSDP guidelines and research


1 June 2005

iKapa Elihlumayo:

Eight Strategic Thrusts

Micro-economic Development Strategy

Strategic Infrastructure Plan

Prov. Spatial Development Framework

Building Human Capital

Social Capital Formation/Building

Effective Financial Governance

Coordination and communication (intra & inter-government)

Provincial-Municipal Interface towards integrated government


1 June 2005

IGR PrioritiesPractical alignment of NSDP, PGDS & IDP Establishment and operationalisation of PIF IDP Hearings Processes MFMA operationalisation

Coherent Human Settlement Policy and Strategy

PCC Priority Programmes & Projects Urban & Rural Nodes Community Development Workers

Priority Mega-Development Projects World Cup 2010 planning Public Transport, esp. Klipfontein Corridor N2 Gateway

Enkosi

www.capegateway.gov

Documents

Imperatives of alignment