PORTFOLIO COMMITTEE ON LOCAL GOVERNMENT PROGRAMME 2 BRANCH: GOVERNANCE, POLICY AND RESEARCH

1. PORTFOLIO COMMITTEE ON LOCAL GOVERNMENT PROGRAMME 2 BRANCH: GOVERNANCE, POLICY AND RESEARCH Mr Derek Powell Deputy Director-General 23 MAY 2006

2. Outline of Presentation • SA Developmental State • Key Development Trends • National Space Economy • Planning Response to Key Development Trends • 2005 IDP Hearings • Progress: 2006 IDP Engagement Process • Plan of Action to Strengthen Development Planning

3. National Sphere MunicipalSphere ProvincialSphere SA Developmental State • Ideological underpinning and national interest • People-centered, equitable and sustainable development • Institutional Capability • Effective allocation of powers and functions • Performance, accountability and IGR • Infrastructure creation, management and modeling • Batho Pele • Alignment • Spatial vision of 52 areas (sustainable human settlement and local/regional economy) • National Spatial Development Perspective (NSDP) • ASGISA • Set of targeted interventions • Link to industrial policy and regional industrial strategy • Overcoming main constraints to economic growth (relevant for planners) • Under-investment in infrastructure • Disjointed and inefficient spatial formations (high input costs) • Municipal regulatory role regarding land development facilitation and by-laws impacting on small businesses operations

4. Key Development Trends • Increasing demand for decent housing and services driven by combination of: • Population growth • Decrease in household size • Splitting of households between rural and urban areas • Increase in number of people entering the employment market is faster than the rate at which new jobs are created • Youth employment is crucial factor for social stability • 68% of population expected to be urbanized over next decade; urbanization rate 2,8% per year. • South African cities generate 80% of the country’s wealth whilst 40% of urban residents live below the poverty line

5. The National Space Economy • 52 district and metro regions constitute the national space economy. Each of these areas face different challenges and opportunities • Between 1995-2003: • 13 grew above national average of 2,5% per year • 30 grew sluggishly below the national average • 10 (9) experienced negative growth • Strongest growth: • uThungulu DM (Empangeni, Richards Bay): 5,8% • Bojanala DM (Rustenburg, Moretele, Brits): 4,7% • Tshwane Metro (Pretoria): 4,6% • Johannesburg Metro: 4,2% • Francis Baard DM (Kimberly): 3,7% • Eden DM (George, Knysna, Plettenberg Bay): 3,5% • Waterberg DM (Elisras, warmbaths): 3,4% • Nkangala DM (Middelburg, Witbank): 3,0%

6. Planning Response to Key Development Trends • NSDP, PGDSs and IDPs are key governance instruments for the executive heads of each sphere of government • Constitute strategic response to national development imperatives and community needs • Overarching framework for departmental/business plans, budgets and investment • NSDP to evolve into more directive national plan centered on strategic infrastructure investment • Integrating framework for sector plans • Proposition and dynamic engagement with PGDSs and IDPs

7. District & MetropolitanSpaces MTSF 53 Impact Zones of Government Prioritisation Resource Allocation Implementation National DEPARTMENTAL STRATEGIC& SECTOR PLANS MTEF & Budget Focussed government action Provincial DEPARTMENTAL STRATEGIC & SECTOR PLANS NSDP PGDS MTEF & Budget Local Shared Impact Zones of Government DEPARTMENTAL STRATEGIC & SECTOR PLANS Financial Plans & Budget IDP IDP MonitorReport Planning Response to Key Development Trends

8. ….Planning Response to Key Development Trends 2005 IDP Hearings Key Objectives: • Evaluate implementation of IDPs over the past four years • Facilitate content related discussions on achieving national goals through appropriate municipal development strategies and plans • Support provinces with IDP monitoring and the MEC assessment process. Key Outcomes: • 5 Big Ideas • A shared paradigm of sustainable development • Government connectivity with communities • Impact of intergovernmental investment in localities • Provincial developmental and strategic role • Need to improve credibility of IDPs for new term • Addressing these Big Ideas is seen as central in dealing with the objective of strengthening planning in South Africa

9. Progress: 2006 IDP Engagement Process Key Objectives: • Implement PCC Resolution to outline national strategy for completion of credible IDPs by June 2006 (co-op with OTP and DLG) • Implement findings of IDP Hearings and Project Consolidate Izimbizos • Assist newly elected local government office bearers to adopt credible IDPs by June 2006 • Mobilise the necessary support (sectors and dev.institutions) to assist with the crafting of credible IDPs • Lay the platform for intergov. Agreements to fast trek service delivery

10. Progress: 2006 IDP Engagement Process • Energised all of government by mobilising all provinces and sector departments to participate in process • IDP Analysis Week (2-7 April): national and provincial analysed 237 (out of 283) IDPs • Analysis used to facilitate content discussions with municipal management (mayors, mm, senior managers), key sectors and service delivery agents (Eskom)- to jointly decide how services will be delivered effectively • IDP Engagements completed in 8 provinces, EC IDP engagement will be held 25 May-02 June

11. Progress: 2006 IDP Engagement Process • 237 (83%) draft IDPs submitted by 31 March • Main participants: Office of Premier, Dept. of LG, sectors, mayors, municipal and senior managers • Main sector participation: DWAF, DEAT, Land Affairs, DME, Health, Eskom in some provinces • Nature of discussion based on LG KPA: • SDF (require key demographic, economic and env. analysis) • Service Delivery- that must result in sustainable human settlements • Economic Development and LED • Financial Viability • Good Governance and Institutional Arrangements

12. Preliminary Outcomes • Key realisation that service delivery rests on all of government not only municipalities • Most municipalities do not have SDFs: rigorous analysis (stats, economic potential, social index, environment sustainability) to plan with some certainty –this would require range of stakeholders to make relevant info available timeously • Lack of spatially referenced investment and programmes • Need for LED strategies to be developed for all districts to create conducive environment for investment/economic growth • Key sectors (transport, stats sa, housing) must be mobilised • The ability of collective thinking, decision-making and strategic leadership can only assist with implementation • Renewed and heightened ownership by province and municipality of IDP process (not only the plan) • Timing of engagement crucial with relevant stakeholders (eg. building of hospital in De Aar)

13. Plan of Action to Strengthen Development Planning • Constitute national planning capability • Position all of government for local based development • Refine and rationalise planning legislation • Implement Planning Capacity Building programme • Direct support in 5 districts to prepare IDP and align to NSDP and PGDS • Implement PGDS and IDP hands-on support • Conduct rigorous analysis and prepare effective economic development strategies • Coordinate donor funding and support for planning and local economic development • Intensify utilization of the IDP Nerve Centre as intergovernmental planning information portal • Implement the National LED framework • Support District and Metropolitan Growth and Development summits as inputs for IDPs