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Sunday, March 28, 2010

A growth path that has a longer-term vision for SA

Sixteen years into South Africa's democracy, Ebrahim Patel, the country's new economic policy architect, is trying again to find a sustainable formula for growth that will create jobs for the poor.

Patel believes that if most South Africans can agree and implement a new growth path, it will stabilise the society, counter avarice and corruption and transcend the changes in emphasis that come with each new election.

"I hope it is more than just idealism," Patel said at the end of an interview in which he sought to explain his vision for a coordinated economic development strategy that ties in the government, business, labour and the institutions designed to promote entrepreneurship and investment.

"If you have a growth path that has a longer-term vision, that has got some solid planning components that come out of the national planning commission and you have the support of your business community, trade unions, community and ruling party, then you create the glue that keeps people together."



The global economic review that is happening in the wake of last year's recession offers one opportunity to rethink the future, he said. The ANC's likely durability in government is another.

"The fact that the ANC is likely to win the next election gives it the capacity now to develop plans that span multiple electoral cycles. That is one of the opportunities that we have not utilised properly," Patel said.

The current budget cycle runs for three years and is subject to the sort of change being implemented now by Zuma's new economic policy cluster. The cabinet team responsible for economic coordination is headed by Gugile Nkwinti, the minister of rural development and land reform who, separately, is driving a fundamental review of land tenure that some are interpreting as a move to nationalise the country's farms.

While Patel insists that the new growth path due to be spelt out in a document before the end of the year will carry the authority of the entire cabinet, it is likely to be based on the huge amount of work he plans for his department.

Patel said the new policy would have to build on the experience and lessons of the past 16 years.

Other challenges include safely weaning millions of people off welfare and redirecting that money to job creation that would sustain them in the future.

Part of the new growth path would use the government's infrastructure budget of more than a trillion rand over the next five years to develop local industries capable of making things like train coaches and industrial boilers and to look for export markets to keep them going.

Patel said South Africa was missing an opportunity spotted by other countries such as China to export to other African countries. But to take advantage of these markets, departments would have to work together to develop the roads, railway lines and energy supplies to get this country's goods to nearby markets.

"We have got to have a vision which stretches into the next 10, 12, 14 years," he said.

Source: Times LIVE

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