Revised development plan calls for tough decisions

2012-08-15 09:29

South Africa needs to take tough decisions involving compromise and trade-offs, according to the revised National Development Plan (NDP) handed to President Jacob Zuma today.

The document contains recommendations to government by the National Planning Commission on how to tackle the country’s challenges over the next 20 years.

Key proposals on the economy and employment include raising exports, while taking steps to prevent excessive over-valuation of the currency.

The 484-page document also calls for improving skills development, and breaking disincentives to hiring young people, as well as increasing competition and breaking monopolies.

The NDP also says there is a need for the high cost of transport and logistics to be addressed, in a bid to tackle spatial divides.

It also focuses on strengthening the social wage in order to raise the living standards of the unemployed and those with lower paying jobs.

“Rising rates of investment will be achieved initially through state spending on infrastructure. The focus needs to be on infrastructure that promotes efficiency in the economy, and reduces costs for business and for individuals.”

Labour market reforms are included in the NDP, but no drastic overhaul is suggested. Proposals on reducing tensions in the labour market are modest.

The public sector is the largest employer and the plan recognises the damage the current manner of managing disputes in essential services, such as health, education and policing, does not foster productivity.

“The current system neither discourages strike action, nor inspires confidence in other ways of addressing disputes and grievances.

“The determination of appropriate sanctions are required where essential services and minimum service level agreements are not upheld.

“Similarly, expectations of the state as employer to implement agreements on wages and conditions are required, and appropriate sanctions set where these are not implemented timeously.”

Among the NDP’s more ambitious targets is decreasing unemployment to 14% by 2020, and 6% by 2030.

The plan says this could be achieved through the promotion of employment in labour absorbing industries.
“Some 90% of jobs will be created in small and expanding firms.”

In order for this to happen, regulatory reform would be needed to drive entrepreneurship, and the cost of doing business would have to be lowered.

The NDP also proposes some short- to medium-term interventions on how the country should respond to the current global economic crisis.

“Government needs to build in macro-policy to enable South Africa to counteract the effects of the financial crisis,” it states.

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Comments have been closed for this article.

Inside News24

 
/News

Book flights

Compare, Book, Fly

Traffic Alerts
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.