He revealed the framework for the New Economic Growth Path, which is intended to help South Africa achieve its national development goals.
The minister acknowledged that there would be challenges with regards to implementation of the plan. “We have too many agencies and too little co-ordination between them.”
The New Economic Growth Path will look to the green economy, agriculture, mining, manufacturing and tourism industries for most of the employment opportunities.
The plan calls for commitments from government’s social partners, such as ensuring moderate wage increases and capping pay and bonuses for executives earning over R500 000 a year.
It also seeks the creation of a comprehensive social security system that fosters an improved savings culture in the country.
The strategy has a series of micro and micro economic measures aimed at helping the country reach its growth targets. Some of the measures are:
- Ramping up competition policy to create a more equitable marketplace
- An effective rural development policy
- Stepping up education and skills development, including a review of the training system
- Producing 30 000 more engineers by 2014 and 50 000 more artisans by 2015
- Promoting small businesses and entrepreneurship by creating a single agency to consolidate Khula, SAMAF and the Industrial Development Corporation funding
- A revamp of black economic empowerment, which will include incentivising employment creation
- Developing more focused trade policies, which better identify opportunities for exports
The New Economic Growth Path leans on the recommendations made by the Commission on Growth and Development’s Growth Report, released in 2008.
The report suggested that policymakers should target five areas if they wanted long-term economic growth, namely:
- Remain open to the world economy and new ideas
- Maintain macroeconomic stability
- Sustain high rates of saving and investment (about 20 to 25% of national income versus South Africa’s 16%)
- Allow the markets to allocate resources
- Maintain committed, credible, and capable governments
The report looked at countries which were able to maintain GDP growth of more than seven percent for two decades or longer in recent times.
These counties are: Botswana, Brazil, China, Hong Kong, China, Indonesia, Japan, South Korea, Malaysia, Malta, Oman, Singapore, Taiwan, China and Thailand. – BuaNews