Patel's New Growth Path

In summary

• Create five million jobs over the next 10 years, especially in the green economy, agriculture, mining, manufacturing and tourism.
• Infrastructure investment will focus on energy, transport, communication and housing.
• An African development fund will be established to invest in African infrastructure.
• State agencies, including the Reserve Bank, will be reoriented to ensure the state "is not hostage to market forces and vested interests".
• Monetary policy will be looser to support a more competitive exchange rate.
• A state mining company and state bank must be established.
• Wage settlements will be moderate to save jobs, create jobs and address inequality. This includes a "modest increase above inflation" for employees earning between R3000 and R20000 a month, increases pegged to inflation for those earning between R20000 and R45000 and pay caps or increases below inflation for those earning over R45000.

Impatient Manuel berates the messenger

Perhaps it is Planning Minister Trevor Manuel's advancing age that has made him increasingly tetchy, more so than he was in his glory days as finance minister.

Ever since the umbrella incident - he is alleged to have hit a female journalist with an umbrella at the watershed ANC Polokwane conference in 2007 - his relationship with the media has been on an ever more slippery slope.

Perhaps it tracks his declining fortunes in the ruling party. After having been the most popular candidate for the ANC's national executive committee in 2002, he subsequently slipped to 57th in the ranking - out of 60 elected members - at the Polokwane conference.

Once again this week, during a briefing on the National Planning Commission appointed by President Jacob Zuma after a year of preparation, he went off. In a clear case of blaming the messenger, it was Anna Majavu's turn to be savaged.

NPC should not pander to the government

President Jacob Zuma’s endorsement of the National Planning Commission’s independence has emboldened Planning Minister Trevor Manuel.

Manuel said yesterday he would be involved in the budgeting process along with the Treasury and Finance Minister Pravin Gordhan, and he stressed that planning and budgeting always go together.

Manuel’s comment suggests he is claiming territory from Economic Development Minister Ebrahim Patel, after persistent reports of a turf battle over the past year.

Briefing the media ahead of the Presidency’s budget vote, Manuel, in response to a question, stressed that the commission was appointed by the president and had the full support of the entire executive.

NPC endorses members from business

The newly appointed National Planning Commission (NPC) got down to business yesterday, playing down complaints that business is over-represented on the 25-member panel.

When the list of commissioners was announced 12 days ago, the African National Congress’s (ANC’s) alliance partners, along with the opposition Independent Democrats, said the appointments were mainly associated with the business sector.

But NPC chairman Trevor Manuel said there was no merit in “compartmentalising” commissioners, who were appointed in their individual capacities. The commissioners, who convened for the first time on Monday, had said they did not want to be “pigeonholed” before they even started work.

The National Planning Commission revised

National Planning Minister Trevor Manuel has reassured that the Cabinet will have the final say on policy formulation.

Manuel said the revised green paper on national strategic planning clearly stated the National Planning Commission would have no executive powers and that Cabinet would make the final decisions.

This comes amid a fierce contest between the ruling African National Congress and its alliance partners — the Congress of South African Trade Unions (Cosatu) and the South African Communist Party — over the powers the commission will have over the formulation of economic policy. It suggests Manuel and the commission would have no executive powers and play an advisory role to the government, but also that the alliance partners would not be allowed to monopolise SA’s economic policy formulation arena.

It will also take some political pressure off Manuel, who has faced claims from the alliance left that he would be an “imperial” prime minister.

Manuel said although he was confident the revised document would receive support from different sectors and organisations, not everyone would be satisfied. “There is a fair amount of support now.”

The green paper — which was first released by the Cabinet in August and approved last month following a consultative process in Parliament — dealt with the work of the commission and how it would function, said Manuel.

The document states that the first output of the commission would be to draft a Vision 2025 and a long-term strategic plan.

“The Vision 2025 will be an articulation of the type of society all South Africans would want to see in about 15 years’ time. It will set out the high-level aspirations for the nation in terms of social, economic and political development,” the document reads.

Manuel said the commission would release a draft vision and long-term strategic plan within 18 months.

The commission would also produce research reports and discussion papers on key “cross- cutting issues” that affect development. “These thematic papers will cover issues such as food security, climate change and human resource development trends and will be tabled in Parliament for discussion.”

Manuel called for the public to nominate people to serve on the 20-member commission. “We seek the best, brightest minds in our country that can use their sectoral expertise to contribute towards a broad development plan.”

Nomination forms are available on the Presidency website and the closing date is February 10. Manuel said President Jacob Zuma would announce the names of the commissioners before the end of March.

Manuel said a secretariat based in the Presidency would be established to provide technical, administrative and professional help to the commission.

Source: Business Day
Read the full text of the briefing at Times Live