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Imperatives of alignment

Imperatives of alignment. iKapa Elihlumayo – Growing & Sharing the Cape Preparatory Premier’s Intergovernmental Forum Spier Conference Centre 1 June 2005. Overview. Manifestations of weak alignment Development challenges of the Cape National Imperatives for alignment

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Imperatives of alignment

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  1. Imperatives of alignment iKapa Elihlumayo – Growing & Sharing the Cape Preparatory Premier’s Intergovernmental Forum Spier Conference Centre 1 June 2005

  2. Overview • Manifestations of weak alignment • Development challenges of the Cape • National Imperatives for alignment • Tools and institutions for alignment • Priorities for moving forward Premier’s Inter-governmental Forum 1 June 2005

  3. Evidence of weak alignment • Contradictory and divergent development policies and plans within and between municipalities • Unstrategic competition to attract inward investment • Disconnect between local development plans and regional economic and environmental systems • Limited information and knowledge sharing on effective service delivery and management of growing demands • Inability to achieve triple bottom-line outcomes • Political tensions that arise from the lack of synergy between municipalities and spheres of government Premier’s Inter-governmental Forum 1 June 2005

  4. Consequences of weak alignment • Moderate economic growth (and decline in some areas) • Limited job creation (and job shedding in some areas) • Limited to zero impact on the second economy • Unsustainable development policies and practices • Growing services backlog • Loss of political legitimacy (and support) • Increased unhealthy competition between areas Premier’s Inter-governmental Forum 1 June 2005

  5. Weak alignment set in context • Economic growth trends & prospects: too modest • Employment/Unemployment Crisis: increase • Poverty and inequality levels: on the up • Access to basic services: rising demand Premier’s Inter-governmental Forum 1 June 2005

  6. WC Macro-Economic Outlook, 2004/05 - 2007/08 Premier’s Inter-governmental Forum 1 June 2005

  7. WC Sectoral Real Economic Growth, 2004/5 – 2006/7 Premier’s Inter-governmental Forum 1 June 2005

  8. Cross-sectoral economic trends • Outperforming SA in output, poorer in employment (due to low informal sector growth) • Growth from tertiary sectors which holds implications for those with/without skills • Importance of finance and business services: output and employment generation • Decline in manufacturing employment, especially textiles and clothing • Effects of tourism: critical but also uncertain Premier’s Inter-governmental Forum 1 June 2005

  9. Unemployment Rates Premier’s Inter-governmental Forum 1 June 2005

  10. W-Cape Poverty Levels by Race Premier’s Inter-governmental Forum 1 June 2005

  11. W-Cape Household Services Access by Income Quintile, 2000 Premier’s Inter-governmental Forum 1 June 2005

  12. W-Cape Household Services Access by Income Quintile, 2000 Premier’s Inter-governmental Forum 1 June 2005

  13. Implications of contextual trends Development Crisis • Massive and stubborn unemployment due to restructuring of the economy and insufficient growth • Deepening inequality, which exacerbates poverty • Growing services backlogs due to rapid growth of households • Social dysfunction and implosion, especially in poor communities Premier’s Inter-governmental Forum 1 June 2005

  14. Response:Shared Growth & Development Critical overarching outcomes to pursue: • Enhancing provincial economic growth above 6% • Advancing broad-based provincial economic participation (unemployment below 20% in 5yrs; below 10% in 15 yrs) • Increasing provincial employment • Reducing transaction & input costs of doing business in Province (esp. SMMEs) • Strengthening social inclusion & cohesion (social capital) • Improving human development potential in terms of access to quality basic & social services • Enhancing environmental & resource sustainability in relation to provincial growth & development path HOW? Premier’s Inter-governmental Forum 1 June 2005

  15. National imperatives for alignment • Ten Year Review captured impressive progress in first decade, but not sufficient to achieve overall objectives of the People’s Contract • Vision 2014 sets the course for more strategic agenda to achieve a more dynamic growth path • Primary priorities: • GROW THE ECONOMY • Establish sustainable livelihoods that involve the marginalised • Extend grants but also move away from dependency to economic self-reliance • Improve the capacity and performance of the state for growth and development Premier’s Inter-governmental Forum 1 June 2005

  16. National imperatives (2) • “there are hundreds of thousands of things that government does and should continue to do; but it should define a new trajectory of growth and development, identify the key things required to attain it, and make strategic choices in expending effort and allocating resources in order to blaze along this new trail” (MTSF 2004-2009) • NB: Making the right strategic choices requires sound information and analysis about development trends, opportunities and challenges People’s Contract Manifesto Vision 2014 NSDP MTSF 2004-2009 PSDF PGDS IDP MSDF Premier’s Inter-governmental Forum 1 June 2005

  17. Rationale for greater alignment (1) • Persistent and widespread poverty & unemployment – foremost challenges Less successful in growing the economy or creating jobs although more positive changes recently • In the last 9 years we have been: Better at providing services and grants   • Four major social trends (demographics, labour market, household size, migration) in last decade affected ability to make a sustainable impression on unemployment & poverty despite substantial government intervention • Key: Better Performance by the State Premier’s Inter-governmental Forum 1 June 2005

  18. - Better performance by the state - Make govt as a whole work better in meeting common objectives and outcomes Need for decisive, coordinated interventions to improve the state's capacity to spend & deliver services Rationale for greater alignment (2) Need to include a geographical dimension to growth and employment. Premier’s Inter-governmental Forum 1 June 2005

  19. Structured and systematic dialogue (PCC & PIF) Coordinated and integrated action Common objectives and maximise development impact Elements of alignment and harmonisation PROCESS Premier’s Inter-governmental Forum 1 June 2005

  20. Improving the performance of the state through greater alignment A system for coordinated government priority setting, resource allocation and implementation requires a strategic basis moving beyond mere structures and procedures 1. Alignment of strategic development priorities and approaches in all planning and budgeting processes 2. A shared agreement on the nature and characteristics of the space economy 3. Strategic principles for infrastructure investment and development spending Premier’s Inter-governmental Forum 1 June 2005

  21. Need Economic potential Development spending Infrastructure investment NSDP Integrated development planning in the local sphere National spatial guidance Provincial planning Elements of alignment system Space economy National priorities and objectives The normative principles and guidelines embodied in the national spatial perspective provide the central organising concept for facilitating alignment and serve as the mechanism and basic platform for better coordination and alignment of government programmes. Premier’s Inter-governmental Forum 1 June 2005

  22. NSDP Principles • Economic growth is a prerequisite for the achievement of other policy objectives, key among which would be poverty alleviation. • Government spending on fixed investment, beyond the constitutional obligation to provide basic services to all citizens (such as water, electricity as well as health and educational facilities), must target localities of economic growth and/or economic potential in order to attract Private-sector investment, stimulate sustainable economic activities and/or create long-term employment opportunities. • Efforts to address past and current social inequalities should focus on people not places. Premier’s Inter-governmental Forum 1 June 2005

  23. NSDP Principles, cont • In localities where there are both high levels of poverty and development potential, include fixed capital investment beyond basic services to exploit the potential of those localities. • In localities with low development potential, government spending, beyond basic services, should focus on providing social transfers, human resource development and labour market intelligence. • In order to overcome the spatial distortions of apartheid, future settlement and economic development opportunities should be channelled into activity corridors and nodes that are adjacent to or link the main growth centres. Premier’s Inter-governmental Forum 1 June 2005

  24. Success requires an aligned state NSDP leads to a strategic approach Economic Dev. Basic Services Citizenship & political empowerment Safety Net Sustainable Human Settlements Premier’s Inter-governmental Forum 1 June 2005

  25. IDP/PGDS • IDP compiled through • bottom-up consultative processes • Inputs from line functions • Sectoral imperatives • Filtering of communities’ needs into strategic objectives of municipality and available resources and capacity to deliver • Province’s PGDS in process through • Outcomes of Prov Growth & Devt Summit Agreement (PDC) • iKapa elihlumayo strategies • Contributions of 30 IDPs • Analysis that flow from the Provincial Economic Review & Outlook (PER&O) • Sustainable Development Implementation Plan • Provincialisation of NSDP guidelines and research Premier’s Inter-governmental Forum 1 June 2005

  26. iKapa Elihlumayo:Eight Strategic Thrusts • Micro-economic Development Strategy • Strategic Infrastructure Plan • Prov. Spatial Development Framework • Building Human Capital • Social Capital Formation/Building • Effective Financial Governance • Coordination and communication (intra & inter-government) • Provincial-Municipal Interface towards integrated government Premier’s Inter-governmental Forum 1 June 2005

  27. IGR Priorities • Practical alignment of NSDP, PGDS & IDP • Establishment and operationalisation of PIF • IDP Hearings Processes • MFMA operationalisation • Coherent Human Settlement Policy and Strategy • PCC Priority Programmes & Projects • Urban & Rural Nodes • Community Development Workers • Priority Mega-Development Projects • World Cup 2010 planning • Public Transport, esp. Klipfontein Corridor • N2 Gateway Premier’s Inter-governmental Forum 1 June 2005

  28. Enkosi www.capegateway.gov

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