The National Planning Commission (NPC) has berated the government for not championing a blueprint to address the country’s socioeconomic crises after it was adopted by parliament in August 2012, casting doubt on its targets being achieved.
The NPC is the custodian of the National Development Plan (NDP), which seeks to address socioeconomic challenges by 2030 through growing an inclusive economy to address joblessness, poverty and inequality, among other crises dogging one of Africa’s largest and most industrialised economies.
In its 10-year review (2012-22) released on Tuesday, the NPC says economic growth was stagnant during the period, while poverty, unemployment and inequality were on the rise and service delivery worsened.
The assessment follows the recent launch of the ANC’s 2019 manifesto review. It kick-started a campaign to claw back successive electoral losses, promising to use the next nine months before the general election to avert the collapse of state-owned entities, intervene in failing municipalities and reduce rolling blackouts.
The NPC said its review highlights several challenges that pose a risk to constitutional democracy, to the most impoverished people and to a viable, functioning state.
They include the weakening of government and key state institutions, poor public service performance, and the erosion of confidence and trust across society; systemic corruption in the public and private sectors; and the blurring of lines between political and administrative functions. In addition, the government faces “severe and limiting fiscal constraints” and the “political leadership did not focus on the NDP after its adoption ... which consequently mean that the plan was not effectively championed”.
The review notes that the economy still is not inclusive of all South Africans. “The economic, social and spatial legacies of apartheid, inappropriate economic and social policies that prevent inclusive growth, demand-led skilling and employment, and the hollowing out of state capacity during the state capture years continue to undermine both SA’s competitiveness and the potential of its people,” the NPC said.
“This deprives SA of the skills it needs, resulting in low growth, low productivity and hence high unemployment and inequality.” The country is battling an unemployment rate of 32.6%, which is among the highest in the world.
“To realise the goals of the NDP, the commission has consistently highlighted the importance of a growing and inclusive economy,” the review states.
“The outcomes of the NDP are ultimately intended to be financed by SA achieving an economic growth rate of 5.4% from 2012-30.”
It recommends SA make every effort to increase its levels of economic growth and, in particular, measures that can promote and incentivise economic inclusion and labour by embarking on an “economy road map that will serve to put SA on the path to fundamentally addressing the challenges of unemployment, poverty and inequality”.
Economic crimes
The road map would need to be a shared effort by government, the private sector and social partners and should include implementing the Energy Action Plan to fix power stations and ensure an affordable and reliable electricity supply; implementing a programme to strengthen state-owned enterprises; reducing red tape and increasing affordable financing for small business; and developing a digital infrastructure.
Other elements include unlocking the potential of the agriculture sector — one of the beacons of the economy — by addressing land reform, administration of irrigation rights and financial challenges.
The NPC wants the government to deal “more decisively” with economic crimes, “particularly theft and vandalism of infrastructure, extortion in the construction sector and illegal mining, through strengthening confidence in the adherence to the rule of law and the capacity of the criminal justice system”.
The government also needs to rebuild state capacity and confidence in a “sustainable fiscal pathway”.
Finance minister Enoch Godongwana came under fire when the National Treasury proposed a raft of cost-cutting measures after warning that the government faces unprecedented revenue and spending pressures as the economy falters amid load-shedding, inflation and high interest rates.
The country must maintain and expand its electricity, water, transport and telecommunications infrastructure to support economic growth and social development goals in the medium and long term, the NPC said.
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