South Africa unveils new economic growth plan
Saturday, 27 November 2010
South Africa has revealed its New Economic Growth Path plan, which has set an ambitious target of creating five million jobs over the next decade, through slashing unnecessary red-tape, improving competition in the economy and stepping up skill development in Africa's biggest economy.
The new growth plan that hopes to enhance growth, employment creation and equity in South Africa would see strategic partnerships formed between the South African government and the private sector in implementing the program.
In order for South Africa to execute the new growth plan successfully, infrastructure development has been identified as the core piece in the creating of jobs across South Africa.
The new economic growth program in South Africa highly regard investments in five key physical and social infrastructure areas -- energy, transport, communication, water and housing -- as being a critical factor in growing the economy of the country. The South African government believes that high levels of public investment in these five areas would create the required jobs in construction, operation and maintenance of infrastructure in the country.
"This document reflects Government's commitment to prioritizing employment creation in all economic policies. It lay out strategies to enable South Africa to grow in a more equitable and inclusive manner in the future, fulfilling the promise of our democracy," South African Minister of Economic Development Ebrahim Patel said in addressing the country's Parliamentary Portfolio Committee about the new growth path.
"The centerpiece of the new growth path is a massive investment in infrastructure and people through skills development, together with smart government and better coordination with the private sector and organized labor so that we can achieve our national goal."
In instigating its goal to enhance the country's economy, the South Africa government plan to work closely with business and labor in the country in an effort to develop scarce and key skills.
The South African government hopes to create 30,000 more engineers in the country by 2014, with an uplifted focus on high school maths and science.
The country also plans to undertake major changes in university funding formulae in order to achieve this target. In addition, South Africa has set a target of creating 50,000 more artisans by 3,014 as part of the new growth plan.
The economic growth path further calls for measure to be taken in South Africa to make it much easier to import scarce skills by streamlining the work permit and visa system in the country.
"The new growth path must provide bold, imaginative and effective strategies to create the millions of new jobs that South Africa needs. The economy has not created sufficient employment opportunities for many of our people over the past three decade. Creating more and better jobs must lie at the heart of any strategy to fight poverty, reduce inequities and address rural development," the New Economic Growth Path document states.
In reference to South Africa's green economy, the country's new economic growth path plans for expansions in construction and the production of technologies for solar, wind and biofuels, especially since green energy sources are set to contribute to 30 percent of new energy generation in the next 20 year in South Africa.
As a result, clean manufacturing and environmental services in the country are expected to create 300,000 jobs in the next 10 years.
In the agriculture sector, the new economic growth scheme would see the South African government exploring ways to improve working and living conditions for the country's 660,000 farm workers.
The South African government is expected to address the high cost of fertilizer and other inputs as well as upscaling processing and export marketing.
By doing so the new economic growth path in South Africa believes that more jobs would be created in the agricultural sector.
"The key challenge will be that of implementation and we are frank about the need for a more coordinated and effective state. We have too many agencies and too little coordination between them, " Patel pointed out.
"We can only achieve our jobs target if the state performs better and if the private sector grows in labor-absorbing parts of the economy. The growth path proposes ways to achieve that."
A major piece of the new economic growth path, which has been met with criticism from some South Africans, is that the program urges for South Africans to commit to moderate wage settlements in order to save jobs, create new jobs and address inequality in the country.
The growth path proposes that South Africans earning between 424 U.S.dollars and 2,832 dollars a month should settle for a modest increase above inflation.
While pay increases for employees in the country earning over 2, 832 dollars to 6,373 dollars a month would peg inflation.
Top earners in South Africa going home with above 6,373 dollars every month would see increases below inflation or capped.
However, the wage proposal settlement by the South African government hold that pay increases for those South African workers earning under 424 dollars would not be constrained.
The country's government says that as a result of South Africans committing to the proposed moderate wage settlements offer, they would in turn improve the social wage in South Africa - - that is in housing, healthcare and education.
"The Shift to a new growth path challenges every South African to contribute in building our nation over the coming twenty years. It demands collective efforts, creativity and solidarity across South African society. It will require leadership and strong governance. It takes account of the new opportunities that are available to us, the strengths we have and the constraints we face, " Patel said.
The South African government have acknowledged that South Africa cannot develop solely on the African continent.
Therefore, the country's government have also identified major opportunities on the African continent and it calls on South African business to put great focus on this opportunities in several of Africa's other fast-growing economies.
Furthermore, the South African government said as part of its plan to build a common market in Africa it is committed to improve cross-border infrastructure and measures in order to address unnecessary regulatory obstacles to the movement of people and goods across Africa. — Xinhua
The new growth plan that hopes to enhance growth, employment creation and equity in South Africa would see strategic partnerships formed between the South African government and the private sector in implementing the program.
In order for South Africa to execute the new growth plan successfully, infrastructure development has been identified as the core piece in the creating of jobs across South Africa.
The new economic growth program in South Africa highly regard investments in five key physical and social infrastructure areas -- energy, transport, communication, water and housing -- as being a critical factor in growing the economy of the country. The South African government believes that high levels of public investment in these five areas would create the required jobs in construction, operation and maintenance of infrastructure in the country.
"This document reflects Government's commitment to prioritizing employment creation in all economic policies. It lay out strategies to enable South Africa to grow in a more equitable and inclusive manner in the future, fulfilling the promise of our democracy," South African Minister of Economic Development Ebrahim Patel said in addressing the country's Parliamentary Portfolio Committee about the new growth path.
"The centerpiece of the new growth path is a massive investment in infrastructure and people through skills development, together with smart government and better coordination with the private sector and organized labor so that we can achieve our national goal."
In instigating its goal to enhance the country's economy, the South Africa government plan to work closely with business and labor in the country in an effort to develop scarce and key skills.
The South African government hopes to create 30,000 more engineers in the country by 2014, with an uplifted focus on high school maths and science.
The country also plans to undertake major changes in university funding formulae in order to achieve this target. In addition, South Africa has set a target of creating 50,000 more artisans by 3,014 as part of the new growth plan.
The economic growth path further calls for measure to be taken in South Africa to make it much easier to import scarce skills by streamlining the work permit and visa system in the country.
"The new growth path must provide bold, imaginative and effective strategies to create the millions of new jobs that South Africa needs. The economy has not created sufficient employment opportunities for many of our people over the past three decade. Creating more and better jobs must lie at the heart of any strategy to fight poverty, reduce inequities and address rural development," the New Economic Growth Path document states.
In reference to South Africa's green economy, the country's new economic growth path plans for expansions in construction and the production of technologies for solar, wind and biofuels, especially since green energy sources are set to contribute to 30 percent of new energy generation in the next 20 year in South Africa.
As a result, clean manufacturing and environmental services in the country are expected to create 300,000 jobs in the next 10 years.
In the agriculture sector, the new economic growth scheme would see the South African government exploring ways to improve working and living conditions for the country's 660,000 farm workers.
The South African government is expected to address the high cost of fertilizer and other inputs as well as upscaling processing and export marketing.
By doing so the new economic growth path in South Africa believes that more jobs would be created in the agricultural sector.
"The key challenge will be that of implementation and we are frank about the need for a more coordinated and effective state. We have too many agencies and too little coordination between them, " Patel pointed out.
"We can only achieve our jobs target if the state performs better and if the private sector grows in labor-absorbing parts of the economy. The growth path proposes ways to achieve that."
A major piece of the new economic growth path, which has been met with criticism from some South Africans, is that the program urges for South Africans to commit to moderate wage settlements in order to save jobs, create new jobs and address inequality in the country.
The growth path proposes that South Africans earning between 424 U.S.dollars and 2,832 dollars a month should settle for a modest increase above inflation.
While pay increases for employees in the country earning over 2, 832 dollars to 6,373 dollars a month would peg inflation.
Top earners in South Africa going home with above 6,373 dollars every month would see increases below inflation or capped.
However, the wage proposal settlement by the South African government hold that pay increases for those South African workers earning under 424 dollars would not be constrained.
The country's government says that as a result of South Africans committing to the proposed moderate wage settlements offer, they would in turn improve the social wage in South Africa - - that is in housing, healthcare and education.
"The Shift to a new growth path challenges every South African to contribute in building our nation over the coming twenty years. It demands collective efforts, creativity and solidarity across South African society. It will require leadership and strong governance. It takes account of the new opportunities that are available to us, the strengths we have and the constraints we face, " Patel said.
The South African government have acknowledged that South Africa cannot develop solely on the African continent.
Therefore, the country's government have also identified major opportunities on the African continent and it calls on South African business to put great focus on this opportunities in several of Africa's other fast-growing economies.
Furthermore, the South African government said as part of its plan to build a common market in Africa it is committed to improve cross-border infrastructure and measures in order to address unnecessary regulatory obstacles to the movement of people and goods across Africa. — Xinhua