http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.20Change: -0.01
R/$ = 10.96Change: 0.00
Au 1236.07 $/ozChange: -0.85
Pt 1362.00 $/ozChange: -6.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Aug 08, 2014

Inequality top of mind as NDP debate series is launched

Back
ADAM HABIB While there were many positive aspects to the National Development Plan, it had significant challenges, including inequality

ADAM HABIB 
While there were many positive aspects to the National Development Plan, it had significant challenges, including inequality
NEIL COLEMAN The NDP reflects economic contestation in society, and the state and persistence of economic power relations embedded in key social institutions from the past
Photo: Duane Daws
NEIL COLEMAN 
The NDP reflects economic contestation in society, and the state and persistence of economic power relations embedded in key social institutions from the past
 
previous next
Africa|CoAL|Industrial|South African Trade Unions|Africa|South Africa|Building|Mining|Service|Adam Habib|Khulekani Mathe|Neil Coleman|Nonkululeko Nyembezi-Heita|Power|Proximity
Africa|CoAL|Industrial||Africa||Building|Mining|Service|Power|Proximity
africa-company|coal|industrial|south-african-trade-unions|africa|south-africa|building|mining|service|adam-habib|khulekani-mathe|neil-coleman|nonkululeko-nyembeziheita|power|proximity
More Insight
© Reuse this



The first of a series of 15 public debates exploring options for the implementation of the National Development Plan (NDP) was officially inaugurated at the University of the Witwatersrand (Wits) School of Governance last month.

In association with the Oliver and Adelaide Tambo Foundation, the Wits School of Governance hosted a panel of participants to stimulate discussions among stakeholders on the challenges of governance, policy and implementation, and the importance of building a capable State in South Africa.

National Planning Commission (NPC) Secretariat in the Presidency acting head Khulekani Mathe opened the debate, stating that the NDP called for greater collaboration between stakeholders to be successful, as acting in isolation would limit the impact of the NDP.

“To take South Africa forward, we need to discuss the problems and solutions. The NDP aims to address poverty, inequality and unemployment. We must note that the development is about the people and, if our initiative is not making an impact on people, then all we are doing will be incomplete,” he asserted.

He revealed that the Presidency would assess all the plans of the various national departments to ensure that what they put forward was aligned with the NDP. A unit would also be established to assess the impact of current and future policies and ensure that policies that went against the spirit of the NDP were not implemented.

The NPC continued to advise government on how to implement the NDP, engage with stakeholders and facilitate partnerships between stakeholders, Mathe said.

However, he put forward that the biggest challenge the NDP needed to address was inequality.

Wits vice-chancellor and principal Adam Habib agreed, noting that, while there were many positive aspects to the NDP, it had two significant challenges, including inequality.

“The NDP avoids the fundamental question of inequality in inclusive development. The NDP addresses poverty but the question is how to address inequality because it polarises society and creates relative depravation. The areas that have the most [violent] service delivery protests are not the poorest places. [These are] the places in the closest proximity to wealth,” he explained.

The dilemma of inequality, he stressed, was that, as employment increased and poverty was alleviated, the middle class would still grow faster than lower income earners.

Habib stated that this issue was avoided by government because “it is a difficult question to handle”, but warned that this approach did not help in dealing with inequality.

For the NDP to be successfully implemented, a pact and agreement were needed between different stakeholders in society, he suggested.

Further, a coherent plan from government was also required as there were many discrepancies within government in its approach to inequality.

Once coherence was established, coherence in society would be needed, as well as ongoing communication between the State, labour and business.

Congress of South African Trade Unions (Cosatu) strategist Neil Coleman noted that development plans around the world had been most successful where they had broad legitimacy and support and that the core of all institutionalised development planning had been the question of economic plans focused on industrial strategy.

“However, on both these fronts – securing broad social support and advancing coherent economic planning proposals – the NDP runs into problems. Cosatu recognised the plan was a mixed bag but we did not reject it in its totality. For a trade union federation, the critical issue was what its economic and labour market proposals were. As with other development plans, the core of the NDP rests on economic proposals.

“The NDP reflects economic contestation in society, and the state and persistence of economic power relations embedded in key social institutions from the past. We need to get to the root of structural problems in the economy and systematically address them, and the NDP fails to do this,” he stated.

There were positive elements of the plan but the economy impacted on all dimensions of the plan, he said, adding that the NDP, in relation to its economic and labour market analysis and proposals, failed to advance a radical economic shift and threatened to reverse certain progressive advances made over the last few years.

The NDP failed to take forward key progressive policies, including the need to fundamentally transform the economic structure and promote a new powerful growth for redistribution, Coleman said.

A massive push to industrialise the economy and the creation of decent work for all should be at the centre of economic policy.

Further, he suggested that redistribution be used as a fundamental pillar of economic development to combat economic inequality and poverty. The NDP does none of those, he asserted.

“The NDP’s job plan is problematic and unsustainable and is based on creating low-quality precarious jobs outside the core productive sectors of the economy. Secondly, it fails to pursue the Industrial Policy Action Plan and the New Growth Path vision of industrialising the economy.

“The NDP is premised on undermining worker rights and [is] a low-wage strategy, institutionalised through a two-tier labour market, which is centred particularly on repressing the wages of first-time workers,” Coleman argued.

He believed the NDP proposed a business- as-usual macroeconomic stance, which failed to address the inherited structural deficiencies of the South African economy or the domination of finance and mining capital and failed to propose the fundamental change of ownership that was needed to ensure the effective intervention by the State.

Meanwhile, mineral resource company Ichor Coal CEO Nonkululeko Nyembezi-Heita stated that the business sector was pleased with the NDP, as the plan recognised the role of business.

“The business sector remains supportive of the NDP and is keen for its implementation. There is enough in the NDP that we can begin to implement to move from where we are currently,” she said.

Edited by: Martin Zhuwakinyu
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Labour and Skills Development News
Updated 6 hours ago Financial services firm FNB and supplier development company Edge Growth on Wednesday launched the R200-million Vumela 2.0 enterprise and supplier development (ESD) programme, in Sandton, to help develop and grow sustainable small and medium-sized enterprises (SMEs)...
Hundreds of innovators and entrepreneurs have gathered in Cape Town to discuss how to support more innovation in South Africa in a bid to drive the economy forward. Venture capitalists, dealmakers, entrepreneurs and academics have been mingling at the South African...
The University of Cape Town (UCT) has maintained its upward trend in the yearly Quacquarelli Symonds (QS) World University Rankings, moving up four places to 141 for the 2014/15 ranking cycle. The QS World University Rankings compare the top 800 institutions around...
Article contains comments
More
 
 
Latest News
Ian Donald and Sullivan O’Carroll
Updated 2 hours 9 minutes ago Nestlé South Africa announced plans on Wednesday to invest a further R2-billion over the coming five years to grow its domestic manufacturing base, which would increasingly be used as a platform to supply into fast-growing sub-Saharan African markets. The Swiss food...
Updated 2 hours 15 minutes ago In a landmark R1.5-billion deal that precedes it planned listing on the JSE, Pivotal Property Fund has acquired “strategic” land and property assets from Standard Bank Properties, which includes Sandton’s landmark Alice Lane development. “Pivotal has acquired...
Updated 2 hours 28 minutes ago Lafarge Africa, Finland's Wartsila and the World Bank's IFC have agreed to build a 220 MW gas-fired power plant in Nigeria to boost electricity supplies, they said on Wednesday. The trio said in a statement their plan was to help fast-track increased power supplies...
More
 
 
Recent Research Reports
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
 
 
 
 
 
This Week's Magazine
The board of UD Trucks Southern Africa (UDTSA) has announced the resignation of MD Jacques Carelse.   Long-time UD employee, corporate planning and marketing GM, Rory Schulz, has been appointed as acting MD while the process started to appoint a new MD. The Japanese...
There is a need to start planning another pumped storage scheme in South Africa. Much work has already been done at a site in the Limpopo province and the project was very close to being put out to tender at one stage. In 2008/9 the National Energy Regulator of South...
The Coega Development Corporation (CDC) is preparing to leverage its strategic coastal position to develop the Eastern Cape economy through proposed aquaculture development zones (ADZs), with a proposed R2-billion project aiming to contribute $278-million to the...
Completion of the ongoing construction of the 102 km Zomba–Jali–Phalombe–Chitakale road, in southern Malawi, has been extended from June  to December 15 because of persistent rains and difficulties in paying the contractor. The project is being undertaken by Kuwait's...
The Malawi government has awarded South African firm  Fischer Consortium the  contract to upgrade the Malawi Road Traffic Information System. The Directorate of Road Traffic and Safety Services at Malawi's Ministry of Transport and Public Works says Fischer...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks