Delivering a HOME FOR ALL through Partnerships

1. Delivering a HOME FOR ALL through Partnerships Cabinet Meets labour Premier Ebrahim Rasool Cape Town Convention Centre 17 November 2004

2. Purpose of engagement • Difference DA expansion of Dialogue Historic • To consolidate our “development consensus” reached at the PGDS in October 2003 • To deepen the foundation for joint action to address the challenges facing the Western Cape • To inform our labour partners about our progress in gearing-up to deliver on our vision – a home for all – through our iKapa elihlumayo strategy • To keep the channels of communication open to ensure a listening and responsive government Delivering a Home for All through Partnership

3. Overview • Coming to terms with the Development Challenges in the Western Cape • Need for a developmental state & partnerships • iKapa Elihlumayo as Strategy of government • Outcome of PGDS commitments made in 2003 • The strategic approach of government: deepening the strategies of iKapa and gearing up government for delivery • Implications for labour • Challenges for labour to make the partnership work Delivering a Home for All through Partnership

4. Understanding the State (1) • Inherited a 20th C model of public admin: Functionality principle • Mixed with: Fragmented Apartheid State • Fragmentation specified in terms of racial, geographic, qualitative and functional boundaries • Later on, mixed with: Weak Neo-Liberal State • Non-intervention; specialised fragmentation; separation of policy and delivery; remote from citizens • Manifested in Western Cape State… Delivering a Home for All through Partnership

5. Understanding the State (2) • Western Cape State • Racialised, unequal and remote • Competitive service & cost-centre model • Profit-drive and private sector bias • Technocratic and un-strategic • Incremental budgeting • Consequences: • A highly fragmented and anti-development institutional setting with inappropriately skilled staff, low morale and tendency for silo-based competition as opposed to cooperation around shared objectives Delivering a Home for All through Partnership

6. The case for a developmental approach • All things being equal as they stand now, most cities, towns and rural regions will become more unequal, exclusionary, divisive and inevitably violent, over the course of the next decade, even with consistent economic growth and service delivery! • Urgent, strategically focussed action is needed over the medium term to ensure growth with equity and social inclusion (to deliver social cohesion) • However, interventions must be driven by rigorous analysis of the systemic causes of structural problems (wicked issues) • Interventions must also target a limited number of strategic levers of change that can trigger large waves of transformation within and especially beyond government • A common vision and joint programmes are therefore essential Delivering a Home for All through Partnership

7. Conceptual Framework (1) Features of a developmental state • people-oriented: it responds to the realization that people or citizens experience needs and problems in dynamic and complex ways & therefore require appropriate responses; • partnership–based: it is not a paternalistic state that delivers to a passive citizenry, but a state that mobilizes the capacity of citizens and enters into partnership with them; • interventionist: it harnesses the natural tools of government to address the socio-economic and sustainability needs of society, especially in the interest of the historically disadvantaged; • well-managed: it excels in good governance practices which display an alignment of policy with implementation, appropriately skilled human resources, and a goal-oriented performance management system. Delivering a Home for All through Partnership

8. Recap context of transition:External challenges • Employment • Unemployment: 26% of economically active • Unemployability of +20 year olds • 18% matric, 10% tertiary, 21% incomplete primary education • Economy • Growth in Tertiary sector: but no real jobs – high skills • Primary & Secondary sectors: net shedders of jobs • Inequality: Gini Co-efficient • Economic Wage: 0,58 • Social Wage: 0,42 • Social violence (inhibiter of econ development & social cohesion) • Social divisions in society (inhibiter of econ development & social cohesion) Delivering a Home for All through Partnership

9. Economic growth trends I Signs of slowdown since 1999 Delivering a Home for All through Partnership

10. Economic growth trends II Transport & Communication and Finance, Real estate & Business industries drive almost all growth Delivering a Home for All through Partnership

11. Economic growth trends I Signs of slowdown since 1999 Delivering a Home for All through Partnership

12. Economic growth trends II Transport & Communication and Finance, Real estate & Business industries drive almost all growth Delivering a Home for All through Partnership

13. Economic growth trends III Current slow-down in these industries pulls down provincial growth Delivering a Home for All through Partnership

14. Economic growth trends Summary • Steady growth from 1995-2001 (2.9% average) • But signs of slowdown since 1999 • Growth driven by Tertiary sector • Transport & Communication and Finance, Real estate & Business industries drive almost all growth • Current slow-down in these industries pulls down provincial growth Delivering a Home for All through Partnership

15. Labour market trends I • Faster than national employment growth, but all new entrants not being accommodated… Delivering a Home for All through Partnership

16. Labour market trends II • But high Black African unemployment Delivering a Home for All through Partnership

17. Labour market trends III • Skills shift mirrors shift in economy I Delivering a Home for All through Partnership

18. Labour market trends IV • Skills shift mirrors shift in economy II Delivering a Home for All through Partnership

19. Labour market trends V Youth Unemployment Delivering a Home for All through Partnership

20. Labour market trends VI • The ‘Unemployable’ are….. • Over 40 • Less educated (54% less than 7 years) • Worked less recently (47% more than 3 years) • Have looked less recently (40% more than 3 years) • Less literate (12%) • Less access to salary earner (41% don’t) Delivering a Home for All through Partnership

21. Labour Market Trends Summary • Faster than national employment growth • But increasing unemployment • Higher Black African unemployment • Skills shift mirrors shift in economy • Youth Unemployment • The Unemployable Delivering a Home for All through Partnership

22. Distribution of Wealth I Increased population and EAP Delivering a Home for All through Partnership

23. Distribution of Wealth II Stagnant per capita GDP Delivering a Home for All through Partnership

24. Distribution of Wealth III Inequality higher than national and increasing Delivering a Home for All through Partnership

25. Recap context of transition:Internal challenges • Budget • Social Spending: 80% vs Rest: 20% • Personnel: 47,5% vs Non-Personnel: 52,5% • Budgeted Deficit: R800m over 3 years • Search for new revenue: fuel levy & hospitability levies • Social Security = demand and efficiency challenge • Prevent over-expenditure • Health = unsustainable system • Healthcare 2010 is an adjustment package • Education = inability to address great inequity and job loss threats • HRD strategy • Housing = massive and growing backlogs (320 000) • Programmes afoot to promote new human settlements policy (e.g. N2) • Economic development – limited expenditure available • Maximise partnerships Delivering a Home for All through Partnership

26. Our challenge “The advances made in the first decade by far supercede the weaknesses. Yet, if all indicators were to continue along the same trajectory, especially in respect of the dynamic of economic inclusion and exclusion, we could soon reach a point where the negatives start to overwhelm the positives. This could precipitate a vicious cycle of decline in all spheres. Required are both focus and decisiveness on the part of government, the will to weigh trade-offs and make choices, as well as strategies to inspire all of society to proceed along a new trail…” (Towards a Ten Year Review, 2003) Delivering a Home for All through Partnership

27. Implications of external & internal challenges • We have no choice but to: • Work closely with our social partners • Work in much smarter ways: achieve multiple outcomes with strategically deployed and linked investments • The future, therefore, lies in holistic and partnership-based governance • Question is: How are we going to realise this? Fix and re-make the plane whilst we flying it! HOW? Delivering a Home for All through Partnership

28. Linking strategy to institutions iKapa Elihlumayo Developmental State Developmental Partnerships (PGDS) (PDC) Delivering a Home for All through Partnership

29. iKapa Elihlumayo:Critical Paradigm Shifts for Government • Understand the nature of the State (state of the State) • Redefine the role of the State through • A theory of: the Modern African State • Aligning the budget to vision and strategy: from input-based to outcomes-based budgeting • Re-tooling the state to become integrated and holistic (Expressed in 4 pillars: integrated, co-operative, responsive and globally connected governance) • Achieve objectives through partnerships • Foster active citizenship to unleash energy within civil society and families Delivering a Home for All through Partnership

30. Stay focussed on creating:A HOME FOR ALL Societal features: • Persistence of gross economic inequalities • Racial polarisation (and denial of systemic racism) • Religious intolerance • Social conflict at household and community levels  What holds us together? Need a galvanising vision that can unify society and (re)build social cohesion A HOME FOR ALL Delivering a Home for All through Partnership

31. iKapa Elihlumayo:Critical Paradigm Shifts for Government • Shift from Welfare Dependence to Economic Self-Reliance • Grow the Economy, Increase Employment, Broaden Ownership • Fight Poverty, Reduce Disparity, Improve Living Standards Delivering a Home for All through Partnership

32. iKapa Elihlumayo:GDS: Key Objectives for Government • Shift to Growth & Development Paradigm • overcome poverty • narrow disparities • empowerment & employment • geographic spread of development • Build Broad Front for Reconstruction & Development • government not carry burden alone • construct partnership around shared vision • crowd in maximum co-operation & resources • Achieve buy-in around iKapa elihlumayo • cohere government • excite our partners • give hope to the poor • direct our efforts Delivering a Home for All through Partnership

33. iKapa Elihlumayo:GDS: Key Outcomes (1) • 100 000 net new formal jobs by 2008 – priority economic sectors • Accelerated export growth • Extended Public Works Programme: employment of 120 000 low/un-skilled people by 2008 • Permanent provincial rapid-response unit, working with social partners to defend current investments and jobs • Strengthening the Proudly South Africa campaign • Significantly increasing levels of investment in key economic and social infrastructure from the current 1.1% of GRP to 2.5% by 2008. Expressed in the Strategic Infrastructure Plan, IDPs, the NSDP Delivering a Home for All through Partnership

34. iKapa Elihlumayo:GDS: Key Outcomes (2) • Improve the investment environment: increasing efficiencies, co-ordinating policies, predictable regulatory environment • Attract new investment of R5 billion into the priority economic areas by 2008 • Implement the Human Resource Strategy: Youth employment through 10,000 learnerships, alignment of Further Education & Training with economic reality and demand • Effective functioning of SETAs & Provincial Skills Development Forum • Review the regulatory framework for informal trading • Advance a broad-based empowerment strategy • Facilitate opportunities for co-operatives • Integrated system for support & service delivery to small firms • Initiate a pilot project to incubate and graduate 100 emerging entrepreneurs (30% women) providing the full spectrum of services in a coordinated and integrated system Delivering a Home for All through Partnership

35. iKapa Elihlumayo:GDS: Progress Report • Kept momentum around these commitments • Mainstreamed into strategic planning & budget cycle of government • Mainstreamed into the Cabinet cluster system • Monitoring & Evaluation systems are being designed to track and analyse programmes to deliver on GDS outcomes • Each of the iKapa strategic thrusts are being developed in greater detail to ensure rigorous policies that can informed results-based management • PDC revamped to ensure more streamlined engagement around GDS action points Delivering a Home for All through Partnership

36. iKapa Elihlumayo:Lead strategic interventions Micro- Economic Strategy Human Resource Development Strategic Infrastructure Plan Social Capital Internal Framework for holistic government Provincial Spatial Development Framework Delivering a Home for All through Partnership

37. iKapa Elihlumayo:Community Safety strategy (2) Anti-Crime Strategy is Based on People-orientated, Problem Solving Policing & Community Safety Strategy Delivering a Home for All through Partnership

38. iKapa Elihlumayo:Community Safety strategy (3) 10 PILLARS OF ANTI-CRIME STRATEGY • Reduce Murder • Maintain Policing Strategy • Develop By Law Strategy • Maintain Anti-Gang Strategy • Develop Drug Strategy • Prioritise Crime against Women & Children • Address alcohol related crimes • Address train violence • Develop programme for children at risk • Combat corruption Delivering a Home for All through Partnership

39. Internal Framework for:Holistic Governance Integrated Governance Responsive Governance Co-operative Governance Globally- connected Governance IR IGR • Strategic leadership • Transversal support • M+E+analysis Social dialogue (PDC) Communication • Agreements • Protocols • Nepad • iKapa focussed • E-gov (CEI) • Imbizo’s • Social mob. PCC CGF Human Rights Development State Ethical Governance Holistic Learning Organisation Public Value Delivering a Home for All through Partnership

40. iKapa Elihlumayo:Lead strategic interventions Micro- Economic Strategy Human Resource Development Strategic Infrastructure Plan Social Capital Internal Framework for holistic government Provincial Spatial Development Framework Delivering a Home for All through Partnership

41. Character of new government • Government works within a clear strategic framework that links short-term interventions and medium programmes (e.g. 100 day deliverables and iKapa strategies due by mid 2005) • Government works on the basis of evidence and analysis • Government manages through a results-oriented system of monitoring and evaluation • Government operates on the basis of transparency, openness and a commitment to responsiveness • Government operates within a value-based, partnership model of governance Delivering a Home for All through Partnership

42. In summary • We aim to ensure a business environment that is efficient, corruption-free, predictable and strategic by ensuring supply-side measures to support sustained economic growth • We offer a social vision and strategy that tackles the causes of poverty and inequality which are the greatest threats to resilient economic development • We offer an open door for dialogue and engagement so that we can find joint solutions to our complex problems Delivering a Home for All through Partnership

43. Responding to Everyday Poverty and Inequality Inability to access credit for business or service provision, lack of collateral Inability to afford appropriate housing Lack of employment. Insecure & casual work, insufficient & irregular income Insecurity of tenure and lack of rights Integrated & Holistic Government!!! Lack of appropriate education—inability to afford additional costs affects education levels Live in unhygienic conditions, overcrowding, poor quality housing & services Lack of access to nutrition & health— poorer quality & quantity of food. Poor health Lack of safety & Security—pollution, violence & crime. Ever-present threat of physical abuse Delivering a Home for All through Partnership

44. Policy Lens • Policy Lens: Poverty Reduction & Job Creation • Intention is to deepen iKapa strategies by adding a more comprehensive developmental lens to ensure seamless inter-governmental efforts and impact • Intention is to connect institutional prerequisites for success with the delivery focus of each iKapa strategy through M & E tools • Intention is to lead one government wide macro debate on the nature and impact of a developmental state to achieve sustainable regional development • Intention is to feed into and drive social dialogue on (economic) development path for the province • Achieve commonality of purpose and synergy Delivering a Home for All through Partnership

45. Deposits - first 100 days - • Arrest 3 suspected druglords 1 given bail • 4 new Police Stations Harare, Lingelethu, Phillippi East, Kleinvlei • Reopen clothing factory in Atlantis Novel [+- 300 jobs] – 1 day late • Unblock 5 housing projects Imizamo Yethu, Avian Park, Mbekweni, Paarl, Lwandle Delivering a Home for All through Partnership

46. Deposits - first 100 days - • Job creation President @ Saamstaan • Keep trains safe 433 new railway police start Jan ’05 • Partnerships for development PDC Bill • Register new children for Grants 96184 Delivering a Home for All through Partnership

47. Deposits - first 100 days - • Roll out treatment to HIV + 23 sites 4 325 people • Activate new law to fight gangs POCA • Shorter queues, more medicines, shelter at 9 clinics Delft, Guguletu, Hanover Park, Khayelitsha, Mitchell’s Plain, etc • Electrify rural schools 9/12 • Fight child & sexual abuse 13 Family and Child Sexual Abuse Units at police stations Delivering a Home for All through Partnership

48. Deposits - first 100 days - • Job creation Clean up operation– 5 Municipalities • Community sports facilities – youth upgrade / build – esp. rural • Help people start businesses R50 mill. p.a. – 118 entrepreneurs – 36 SMMEs • Train emerging farmers Clanwilliam Agricultural College opened • Ensure youth development Youth Commission Bill Delivering a Home for All through Partnership

49. Deposits - first 100 days - • New school in Khayelitsha Usasazo • Export Karoo lamb Avian flu • Co-ordinate taxi industry Athlone Taxi Office • Mitigate flood disasters emergency teams – food, facilities, relief • Investigate sustainability of golf estates Delivering a Home for All through Partnership

50. Deposits - first 100 days - • Improve farmer - farm worker relations Indaba • Invest in local infrastructure – 5 CMIP cheques • Build co-operative governance Councilors Summit • Gov.t to reach the people Walk-in - log in - call in Delivering a Home for All through Partnership