The NGP and Local Government Economic Planning and Coordination 27 May

Outline EDD’s role National Challenges Key features of the New Growth Path Proposed framework for alignment Local strategies to create jobs Conclusion

EDD’s role Address macro and micro-economic development planning Cross-cutting focus-National Depts., Provinces and Local Government Economic development planning Work with other departments and spheres of government to promote –coordination Ensure job creation at the centre of economic policies- for better employment outcomes 3

National challenges: Economic growth since 1994 has equalled the average for middle-income countries Emissions intensity is very high, mostly due smelting and refining of mining products BUT –SA remains one of the most inequitable countries in the world –Unemployment is far higher than the norm –Deep historical inequalities in asset ownership and access to education

Jobs- priority RDP- Creation of decent work and economic security Gear- targeted new jobs per annum average ASGISA- halve unemployment rate by

The New Growth Path Brings focus on employment creation and seeks to achieve 5 million new jobs in the next decade-2020 Identifies areas of job drivers- key sector Complements the Industrial Policy Action Plan 2 Deal with cross-cutting issues Proposes macro and micro economic policy interventions to support more equitable and employment-intensive growth Emphasizes the importance of social dialogue 7

Look for employment opportunities in “jobs drivers” and implement policies to take advantage of them Infrastructure Energy, transport, communications, water, housing. Spatial opportunities: Rural development African regional development Main economic sectors: Agriculture & agroprocessing Mining and beneficiation Manufacturing (IPAP2) Tourism/other services Social capital: The social economy The public sector New economies: Green economy Knowledge economy Jobs drivers 8

Alignment with NGP Balanced economic development Spatial Development Plans Alignment with the provincial development strategies Coherence of Provincial and local Development Plans Reporting on jobs created and saved Monitoring and evaluation

Proposed framework for alignment

Local strategy for job creation Government- Public Works, Infrastructure (including in rural areas), Capacity Building, Integrated and Spatial Planning and reducing the red tape and regulatory burden, procurement, green economy, 30-days Targeting labour-absorbing activities in major sector- agriculture, mining, manufacturing, tourism and high-end services such as ICTs, Business Processing, renewable energy Supporting and partnering with private sector, co-ops, local communities, NGOs, and support SMMEs, access to funding and physical infrastructure

Concluding remarks The NGP seeks to mobilise the country around one vision- job creation Private sector, local communities, SMMEs, NGOs critical in achieving the objectives Efficient governance and administration at local government level is fundamental Implementation will have challenges, but we should not despair Local Government is a key partner in the implementation of the NGP to achieve in creating and saving jobs 14