Proposal to spur growth and development

Lauren Snyders
22 February 2012

Many key elements of South Africa’s growth and unemployment strategies are outlined in a draft national development plan published last year by the National Planning Commission building on a new path that was adopted in 2010.

Some of the key issues the commission highlighted were unemployment, income inequality, poor-quality education, poorly located and insufficient infrastructure, the resource intensity of exports, and skewed spatial patterns as main challenges facing the economy.

The anticipated interventions are aimed at expanding economic opportunity for all through investing in infrastructure, diversifying exports, making sure links between faster-growing economies stay strong, enacting reforms to lower the cost of doing business, reducing constraints to growth in various sectors, moving to a much faster and climate friendly production system and encouraging entrepreneurship and innovation.

For a more labour-absorbing growth path, the following have been proposed: Improving infrastructure and network services that support industries such as mining and agriculture, as well as new dynamic industries.

Things which will boost employment and growth prospects are narrow development, improved competitiveness and allowing investment climate.

Lowering the cost of living and improving skills training, will increase the ability of individuals to respond to job openings and economic downturns.

Together with higher labour market participation, earnings moderation will help to decrease the level of income inequality.

For South Africa to use its strengths more people have to get working, exploiting mineral wealth and making good use of local innovation and business know-how.

For these proposals to work, levers of change, the quality of leadership and improved cooperation between business, labour and government is vital.