Download - 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
Premier’s Inter-governmental Forum
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
Premier’s Inter-governmental Forum
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
Premier’s Inter-governmental Forum
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
Premier’s Inter-governmental Forum
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
Premier’s Inter-governmental Forum
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
Premier’s Inter-governmental Forum
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
Premier’s Inter-governmental Forum
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
Premier’s Inter-governmental Forum
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
Premier’s Inter-governmental Forum
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
Premier’s Inter-governmental Forum
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
Premier’s Inter-governmental Forum
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
Premier’s Inter-governmental Forum
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?
Premier’s Inter-governmental Forum
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
Premier’s Inter-governmental Forum
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
Premier’s Inter-governmental Forum
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:
Premier’s Inter-governmental Forum
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)
Premier’s Inter-governmental Forum
1 June 2005
Elements of alignment and harmonisation
Structured and systematic dialogue
(PCC & PIF)
Coordinated and integrated action
Common objectives and maximise development
impact
Premier’s Inter-governmental Forum
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
Premier’s Inter-governmental Forum
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
Premier’s Inter-governmental Forum
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.
Premier’s Inter-governmental Forum
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.
Premier’s Inter-governmental Forum
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
Premier’s Inter-governmental Forum
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
Premier’s Inter-governmental Forum
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
Premier’s Inter-governmental Forum
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