Imperatives of alignment

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Imperatives of alignment. iKapa Elihlumayo – Growing & Sharing the Cape Preparatory Premier’s Intergovernmental Forum Spier Conference Centre 1 June 2005. Overview. Manifestations of weak alignment Development challenges of the Cape National Imperatives for alignment - PowerPoint PPT Presentation

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  • Imperatives of alignmentiKapa Elihlumayo Growing & Sharing the Cape

    Preparatory Premiers Intergovernmental ForumSpier Conference Centre1 June 2005

  • OverviewManifestations of weak alignmentDevelopment challenges of the CapeNational Imperatives for alignmentTools and institutions for alignmentPriorities for moving forward

  • Evidence of weak alignmentContradictory and divergent development policies and plans within and between municipalitiesUnstrategic competition to attract inward investmentDisconnect between local development plans and regional economic and environmental systemsLimited information and knowledge sharing on effective service delivery and management of growing demandsInability to achieve triple bottom-line outcomesPolitical tensions that arise from the lack of synergy between municipalities and spheres of government

  • Consequences of weak alignmentModerate economic growth (and decline in some areas)Limited job creation (and job shedding in some areas)Limited to zero impact on the second economyUnsustainable development policies and practicesGrowing services backlogLoss of political legitimacy (and support)Increased unhealthy competition between areas

  • Weak alignment set in contextEconomic growth trends & prospects: too modestEmployment/Unemployment Crisis: increasePoverty and inequality levels: on the upAccess to basic services: rising demand

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

    2003/42004/5F2005/6F2006/7F2007/8 FGDPR (Rbn)185.4203.1222.8244.8263.8Real GDPR growth3.34.14.34.03.9CPI inflation4.62.34.55.53.7GDPR inflation6.35.35.15.73.8RSA GDP growth2.64.23.93.53.2

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

  • Cross-sectoral economic trendsOutperforming SA in output, poorer in employment (due to low informal sector growth)Growth from tertiary sectors which holds implications for those with/without skillsImportance of finance and business services: output and employment generationDecline in manufacturing employment, especially textiles and clothingEffects of tourism: critical but also uncertain

  • Unemployment Rates

  • W-Cape Poverty Levels by Race

  • W-Cape Household Services Access by Income Quintile, 2000

  • W-Cape Household Services Access by Income Quintile, 2000

  • Implications of contextual trendsDevelopment CrisisMassive and stubborn unemployment due to restructuring of the economy and insufficient growthDeepening inequality, which exacerbates povertyGrowing services backlogs due to rapid growth of householdsSocial dysfunction and implosion, especially in poor communities

  • Response: Shared Growth & DevelopmentCritical 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 pathHOW?

  • National imperatives for alignmentTen Year Review captured impressive progress in first decade, but not sufficient to achieve overall objectives of the Peoples ContractVision 2014 sets the course for more strategic agenda to achieve a more dynamic growth pathPrimary priorities:GROW THE ECONOMYEstablish sustainable livelihoods that involve the marginalisedExtend grants but also move away from dependency to economic self-relianceImprove the capacity and performance of the state for growth and development

  • 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 challengesPeoples Contract ManifestoVision 2014MTSF 2004-2009NSDPPGDSPSDFIDPMSDF

  • Less successful in growing the economy or creating jobs although more positive changes recentlyRationale 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 interventionKey: Better Performance by the StateBetter at providing services and grantsPersistent and widespread poverty & unemployment foremost challengesIn the last 9 years we have been:

  • Need to include a geographical dimension to growth and employment.Rationale for greater alignment (2)

  • Elements of alignment and harmonisation

  • A system for coordinated government priority setting, resource allocation and implementation requires a strategic basis moving beyond mere structures and proceduresImproving the performance of the state through greater alignment3. Strategic principles for infrastructure investment and development spending2. A shared agreement on the nature and characteristics of the space economy1. Alignment of strategic development priorities and approaches in all planning and budgeting processes

  • Elements of alignment systemThe 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 economyNational priorities and objectives

  • NSDP PrinciplesEconomic growth is a prerequisite for the achievement of other policy objectives, key among which would be poverty alleviation.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.Efforts to address past and current social inequalities should focus on people not places.

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

  • NSDP leads to a strategic approachBasic ServicesEconomic Dev.Safety NetCitizenship &political empowermentSustainable Human Settlements

  • IDP/PGDSIDP compiled through bottom-up consultative processesInputs from line functionsSectoral imperativesFiltering of communities needs into strategic objectives of municipality and available resources and capacity to deliverProvinces PGDS in process throughOutcomes of Prov Growth & Devt Summit Agreement (PDC)iKapa elihlumayo strategiesContributions of 30 IDPsAnalysis that flow from the Provincial Economic Review & Outlook (PER&O)Sustainable Development Implementation PlanProvincialisation of NSDP guidelines and research

  • iKapa Elihlumayo:Eight Strategic ThrustsMicro-economic Development Strategy Strategic Infrastructure PlanProv. Spatial Development FrameworkBuilding Human CapitalSocial Capital Formation/BuildingEffective Financial GovernanceCoordination and communication (intra & inter-government)Provincial-Municipal Interface towards integrated government

  • IGR PrioritiesPractical alignment of NSDP, PGDS & IDPEstablishment and operationalisation of PIFIDP Hearings ProcessesMFMA operationalisationCoherent Human Settlement Policy and StrategyPCC Priority Programmes & ProjectsUrban & Rural NodesCommunity Development WorkersPriority Mega-Development ProjectsWorld Cup 2010 planningPublic Transport, esp. Klipfontein CorridorN2 Gateway

  • Enkosiwww.capegateway.gov