19 November 2015

Yash Ramkolowan

MDG 8: Develop a global partnership for development

Leave no child behind: The post-2015 SDG agenda, HSRC

MDG 8: Develop a global partnership for development

South Africa’s domesticated indicators

3

SA has domesticated MDG 8

•MDG 8 focuses on global partnership for development– Further development of open, rule-based, non-discriminatory trading and

financial systems– Address special needs of LDCs, landlocked and small island developing

countries– Deal with the debt issues faced by developing countries– Improving access to affordable essential medicines and new technologies

(especially in ICT sector) through increased cooperation with the private sector

•Why domesticated targets– Early data limitations– Number of standard MDG 8 indicators not relevant to SA

4Goal 8: Develop a global partnership for development

Indicators Baseline 2009 Status

2011 status

2013 status Result

1. Gross domestic product (GDP) per capita in current prices, R000s

23 341 50 098 58 676 66 488 N/A

2. Investment share in GDP, % 15,7 20,7 19,1 20,1Not

achieved

3. Foreign direct investment (FDI) as a percentage of GDP, % 8,2 2,1 1,1 0,5 N/A

4. Gross savings as a percentage of gross disposable income (GDI), % 16,6 18,6 17,5 14,9 N/A

5. Public debt as a percentage of gross national income (GNI), % 43,3 30,8 39,2 45,4 N/A

6. Current account balance as a percentage of GDP, % 0,3 -2,7 -2,2 -5,8 N/A

7. Inflation rate by headline consumer price index, % 5,7 7,1 5,0 5,7 Achieved

8. Employment-to-population ratio, % 41,5 43,9 41,9 42,7 N/A

9. Labour productivity, 2008 = 100 100 98,2 105,5 103,2 N/A

10. CAPEX on research and development (CERD) as % of GDP 0,49 0,54 0,48 0,45 N/A

11. Official development assistance received as a percentage of GNI, %

0,19 0,2 0,10 0,12 N/A

12. Fixed telephone lines per 100 population 11,1 8,9 8,1 7,1Achieved

13. Cellular telephone subscribers per 100 population 24 93 124 145

5

South Africa’s performance based on MDG 8 targets

•Based on domesticated MDG indicators SA has largely failed to achieve targets

•Low growth, high unemployment and inequality levels need to be addressed

•Improvements in NSI required to enable move towards knowledge-based economy

•Universal access to voice communication achieved, focus must shift to internet penetration

ODA to South Africa

Highly focused aid to specific sectors

7

SA’s ODA receipts is small in the context of SA’s economy

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 20130

200

400

600

800

1,000

1,200

1,400

1,600

0.00%

0.05%

0.10%

0.15%

0.20%

0.25%

0.30%

0.35%

0.40%

0.45%

0.50%ODA to South Africa

US Dollar, millions ODA as % GNI (RHS)

US

$ M

illio

n

Source: OECDStat, ODA database.

8

Strong focus on support for HIV/AIDS treatment over last decade

Source: OECDStat, ODA database.

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 20130%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%ODA by sector

Health and population HIV/AIDS / STD control Govt and Civil Society Social infrastructureEducation Banking and fin services Energy MultisectorOther

9

Historic ODA focus on basic education

Source: OECDStat, ODA database.

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 20130

20

40

60

80

100

120ODA support for education, US$ millions

General education Basic education Secondary education Post-secondary education

10

ODA support for education remains small when compared to national public expenditure

Source: OECDStat, ODA database, National Treasury budget information. SA budget information reflects prior financial years.

2011 2012 20130

5,000

10,000

15,000

20,000

25,000

30,000

0

20

40

60

80

100

120SA public expenditure on education (US$ millions)

SA National Budget expenditure ODA (RHS)

Summary on MDG 8

Looking towards SDGs

12

SDGs provide ability for SA to better measure and report on range of indicators•MDG 8 suggests significant macroeconomic improvement required post-2015

•SDGs provide ability for use of internationally comparable indicators– Rather than using domesticated indicators

•Likely that ODA will continue to be highly targeted in SA context– Will education be a sector focus post-2015?

•SA is also a source of investment and funding to region, especially in Southern Africa

– Will SDGs provide ability to better measure this contribution?

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