1. Economic Development & Tourism Introducing the Western Cape’s Micro-Economic Development Strategy [MEDS] Lynne Brown 17 November 2004 … the two key issues confronting our people: creating work and fighting poverty. Premier Ebrahim Rasool, April 2004 1

2. Economic Development & Tourism The Global Economy The Western Cape economy is less than one ten thousandth of the global economy We are price takers Our place in the Global “division of labour” … the two key issues confronting our people: creating work and fighting poverty. Premier Ebrahim Rasool, April 2004 2

3. Economic Development & Tourism The Global business environment There are very powerful forces operating in the global business environment Currency fluctuations Agricultural subsidies Technological advances Primary & Secondary sector job-shedding Mobility of manufacturing plants and jobs … the two key issues confronting our people: creating work and fighting poverty. Premier Ebrahim Rasool, April 2004 3

4. Economic Development & Tourism The Western Cape economy: 1 If the economy continues on its present trajectory without intervention, the future is bleak for the lower skilled workers and the unemployed One in four potential workers unemployed: Youth, Over – 40’s Lower capacity to absorb school leavers and low-skilled workers A skills mismatch … the two key issues confronting our people: creating work and fighting poverty. Premier Ebrahim Rasool, April 2004 4

5. Economic Development & Tourism The Western Cape economy: 2 High potential growth sectors vulnerable to exogenous shocks Labour intensive sectors highly sensitive to currency fluctuations Significant in-migration of lower skilled job seekers Marginalization of the masses; low levels of participation … the two key issues confronting our people: creating work and fighting poverty. Premier Ebrahim Rasool, April 2004 5

6. Economic Development & Tourism Where we want to be: 1 A growing, sustainable [globally competitive], labour absorbing regional economy Unemployment below 10 percent A thriving, dynamic Culture of Entrepreneurship … the two key issues confronting our people: creating work and fighting poverty. Premier Ebrahim Rasool, April 2004 6

7. Economic Development & Tourism Where we want to be: 2 All citizens participating fully at all levels of Ownership, Control, Management and Employment within all sectors Differently skilled workforce; able to cope well with changes stemming from the global forces; able to participate effectively in the global environment both here and abroad … the two key issues confronting our people: creating work and fighting poverty. Premier Ebrahim Rasool, April 2004 7

8. Economic Development & Tourism 10 Year Targets Number of enterprises created15,000 to 30,000 Number of jobs created200,000 to 450,000 Entrepreneurs/business operators enskilled 10,000 to 12,000 … the two key issues confronting our people: creating work and fighting poverty. Premier Ebrahim Rasool, April 2004 8

9. Economic Development & Tourism How we get there: 1 Government and its social partners make extraordinary interventions in the economy over the next 25 years - Based on a fully integrated social and economic growth & development plan for the Western Cape (iKapa elihlumayo) - Such a plan integrates all the key strategies and approaches of the PGWC seamlessly … the two key issues confronting our people: creating work and fighting poverty. Premier Ebrahim Rasool, April 2004 9

10. Economic Development & Tourism How we get there: 2 A core component of such an integrated social and economic growth & development plan is a rigorous, constantly updated micro-economic development strategy - which articulates possible interventions in economic sectors [agriculture, clothing and so on] and in cross-cutting themes [HRD, Small Business and so on] - to shift the economy from its present trajectory to the achievement of the vision … the two key issues confronting our people: creating work and fighting poverty. Premier Ebrahim Rasool, April 2004 10

11. Economic Development & Tourism What it will contain: 1 A summary of the global, continental, SADC context and policy environment The state of the Provincial economy Current summary reports of the state of to sectors and sub sectors in the economy … the two key issues confronting our people: creating work and fighting poverty. Premier Ebrahim Rasool, April 2004 11

12. Economic Development & Tourism What it will contain: 2 * State of the Province Transversal Theme Reports: Like The Impact of HIV/Aids, The Circumstances of the Majority of Black People in the WC, The Informal Economy, Economic-stimulatory Infrastructure Development, The Potential of Land Reform, The Western Cape Global Competitiveness Rating, and so on * Proposed Interventions based on all three types of reports … the two key issues confronting our people: creating work and fighting poverty. Premier Ebrahim Rasool, April 2004 12

13. Economic Development & Tourism What it will contain: 3 * Synthesis & conclusions - A summary of the major thrusts of the MES - Proposals around how synergies & coherency of recommendations may be effected - Prioritization of potential actions on behalf of PGWC and its social partners and other spheres of Government * Authoritative forecasts … the two key issues confronting our people: creating work and fighting poverty. Premier Ebrahim Rasool, April 2004 13

14. Economic Development & Tourism … the two key issues confronting our people: creating work and fighting poverty. Premier Ebrahim Rasool, April 2004 14

15. Economic Development & Tourism … the two key issues confronting our people: creating work and fighting poverty. Premier Ebrahim Rasool, April 2004 15

16. Economic Development & Tourism … the two key issues confronting our people: creating work and fighting poverty. Premier Ebrahim Rasool, April 2004 It eventually becomes : - An authoritative basis for action and planning by all four social partners, foreign economic players, analysts, researchers, planners - An Oracle for FAQs about the Western Cape economy for economic citizens - The point of departure for 80 percent of the work of the Department of Economic Development 16

17. Economic Development & Tourism First sectors & themes: 1 Themes Themes SMME Development HRD to meet the needs of the economy Primary Sector Agriculture & Aquaculture Fishing & mariculture … the two key issues confronting our people: creating work and fighting poverty. Premier Ebrahim Rasool, April 2004 17

18. Economic Development & Tourism First sectors & themes: 2 Secondary sector Metals & Engineering Clothing & Textiles Tertiary sector Tourism ICT … the two key issues confronting our people: creating work and fighting poverty. Premier Ebrahim Rasool, April 2004 18

19. Economic Development & Tourism When it will be available Version 1 01/05 * 6 Sectors * 2 Themes Version 2 06/05 * 16 Sectors * 6 Themes … the two key issues confronting our people: creating work and fighting poverty. Premier Ebrahim Rasool, April 2004 19

20. Economic Development & Tourism Contact us at: E-mail: EcoHead@pgwc.gov.zaEcoHead@pgwc.gov.za Telephone: 021 – 483 3840 … the two key issues confronting our people: creating work and fighting poverty. Premier Ebrahim Rasool, April 2004 20