Meeting name Date

1. Meeting name • Date

2. Contents • A quick recap of what has happened • Summary of diagnostic document • Context for policy making • Vision and values in the plan • Key targets • Critical policy challenges • Key messages in the plan • Feedback on public consultation • The process going forward

3. Commission appointed by President Zuma on 11 May 2010 • ... Asked to take a critical, cross cutting and long term view of South Africa and advise the President, Cabinet and the country on a long term vision and plan • Mandate of the Commission is to engage across society on the vision and plan • A diagnostic report was released on 9 June 2011 containing • Elements of a vision statement • Combating poverty and inequality as key objectives • Nine challenges confronting the country • Draft National Development Plan released on 11 November 2011 • Six month consultation process with the public, government, political parties and social partners 3

4. Diagnostic report • Set the elimination of poverty and the reduction of inequality as the objectives of the plan • Identified nine key challenges that confront us • Too few people work • The quality of school education for black learners is of poor quality • Our infrastructure is inadequate, poorly maintained and often inappropriately located • Spatial patterns continue to reinforce economic exclusion • Our development path is unsustainably resource intensive • We face a high disease burden and our health system is creaking • Public services are uneven and often of poor quality • Corruption levels are high • Despite progress since 1994, we remain a divided society • Following the diagnostic, the draft plan added four areas • Rural economy, community safety, social protection and South Africa in the region and the world

5. Policy making in a complex world 5

6. Population dynamics to 2030 • Population projected to grow by 8.5 million to about 58.5 million in 2030 • Urban population projected to rise by 11 million to 41 million • People under 18 now less than 30% of population and percentage over 60 below 7% - the so-called demographic window • HIV/Aids reduced life expectancy significantly up to 2005, this is now beginning to be reversed with anti-retroviral treatment 6

7. 6 Pillars of the plan • The objectives of the plan is the elimination of poverty and the reduction of inequality through • Uniting South Africans of all races and classes around a common programme to eliminate poverty and reduce inequality • Citizens to be active in their own development, in strengthening democracy and in holding their government accountable • Raising economic growth, promote exports and make the economy more labour absorbing • Focusing on key capabilities of both people and the country • Capabilities include skills, infrastructure, social security, strong institutions and partnerships both within the country and with key international partners • Building a capable and developmental state • Strong leadership throughout society to work together to solve our problems

8. Cycle of development

9. Key targets of the plan 1 • Employment: 13 million in 2010 to 24 million in 2030. • Raise income from R50 000 a person to R120 000. • Increase the quality of education so that all children have at least two years of preschool education and all children in grade 6 can read, write and count. • Establish a competitive base of infrastructure, human resources and regulatory frameworks. • Reduce poverty and inequality by raising employment, bolstering productivity and incomes, and broadening the social wage. • Ensure that professional and managerial posts better reflect the country’s demography • Broaden ownership to historically disadvantaged groups. • Provide affordable access to quality health care while promoting health and well-being. • Establish effective, affordable public transport. • Produce sufficient energy at competitive prices, ensuring access for the poor, while reducing CO2 per unit of power.

10. Key targets of the plan 2 • Ensure that all people have access to clean running water in their homes. • Make high-speed broadband internet available to all at competitive prices. • Realise a food trade surplus, with one-third produced by small-scale farmers or households. • Entrench a social security system covering all working people, with social protection for the poor and other groups in need, such as children and disabled persons. • Realise a developmental, capable and ethical state that treats citizens with dignity. • Ensure that all people live safely, with an independent and fair criminal justice system. • Broaden social cohesion and unity by making use of the talents and resources of all South Africans, while taking firm steps to redress the inequities of the past. • Play a leading role in continental development, economic integration and human rights.

11. Critical policy challenges • How do we bring in new entrants into the workplace while still protecting the jobs and conditions of existing workers? • Can we transition to a low carbon economy while still exploiting our significant mineral endowment? • While infrastructure is critical to enable faster growth, it can have a cost raising effect on the economy in the short term • How do we broaden social protection and social insurance while raising the proportion of people who work? • How do we improve state capacity when the state itself is a reflection of a divided and fragmented society? • Is there a trade-off between broadening ownership and control of the economy versus stimulating investment and creating jobs These are critical policy challenges, requiring careful balance in each case

12. Key messages in the National Development Plan

13. Economy and employment • New growth path priorities • Lowering the cost of living and improving the business environment • Increasing infrastructure investment • Focusing on sectors with strong domestic linkages • Wage moderation in middle and top of income spectrum • NDP supports these priorities, calls for enhancement through • Better coordination within government • More explicit understanding that we need higher exports to finance higher investment • Some reforms to improve the functioning of the labour market to reduce tension and ease access for young people

14. Education, skills and innovation • Need clear accountability chain, including holding schools accountable for performance • Expand pre-school education to 2 years and put in place an under 3 nutrition programme • ... But delivery mechanism missing • Introduce performance agreements for principals and reduce union and political interference in appointments • Improve quality of FET education while expanding the size of the sector • The plan sets key targets for the entire sector

15. Capable and developmental state We need a capable and developmental state that acts to resolve historical inequities through delivering better public services and facilitating investment Key failings in the state include the administrative – political interface, long term skills planning, strengthening accountability and improved coordination for implementation Accountability is critical at all levels, starting with parliamentary oversight

16. Spatial settlement patterns Key priorities include: Planning adequately for urbanisation Finding an institutional location for spatial planning Resolving fragmentation in public transport planning Densifying cities Attracting investment into townships Finding different solutions to rural local government capacity

17. Economic infrastructure • Need to raise public infrastructure spending to 10% of GDP • Key priorities include • Energy and water security • Freight logistics • Public transport • Support to the mining value chain • Urban reticulation systems • ICT and broadband • Plan sets out principles on financing, cushioning the poor, lessons on sequencing and prioritisation and institutional and regulatory matters

18. Rural economy • Focuson improving small scale and commercial agriculture • High potential agricultural land in former homeland areas identified, needs to be developed • Plan focuses on building links between small farmers and food consumers • The plan provides an example of how land reform can be fast-tracked, • but recognises that weaknesses at national and municipal level bedevil implementation.

19. Environmental sustainability and resilience Environmental sustainability covers all natural resources Scorecard approach proposed to assess impact on the environment Complementary offset proposal to balance developmental needs Introduce an economy-wide price on carbon Support for renewables, but concerns raised about institutional arrangements We need to transition to a more energy efficient and lower carbon economy at a pace that makes sense for us

20. Health and wellness Long term health determinants must be tackled through Exercise, nutrition and diet, curbing alcohol and substance abuse, changing sexual behaviour NHI support, though efforts need to focus on the building blocks HR capacity in the sector Improving the quality of public health care Lowering the costs of private health care Building a district health system complete with patient database

21. Community safety • Social determinants of crime are covered in other parts of the plan • Need to professionalise the police • Skills, recruitment practices, training etc • Build specialised units in complex crime areas • Enhance capacity in detective services and improve crime scene analysis • Improve capacity in prosecutorial services and lower courts • Improve efficiency of civil justice system

22. Social protection • Long term vision for comprehensive social security • Social security reforms have to balance broadening coverage with rising employment • Getting this sequencing wrong will result in job losses • Need for alignment and rationalisation of institutions • Short term reforms focusing on broadening coverage of existing social security benefits • Longer term priorities include mandatory savings, risk benefits and health insurance

23. Corruption Three pronged strategy Enforcement Ensure that anti-corruption agencies have requisite resources and independence Prevention Focus on systems, institutional arrangements and accountability Education in society Understand social dimensions of corruption Procurement reforms Differential rules for different types of tenders Use technology and transparency to curb corruption Audit value for money in procurement contracts Clarify rules of business interests of public servants

24. South Africa in the region and the world Greater regional economic integration is necessary for long term development Many of our problems such as energy and food security can be solved taking a regional respective Obstacles include infrastructure, border post corruption, protectionism and weak regional institutions Plan also covers global linkages and need for break into fast growing markets

25. Social cohesion and nation building • Social cohesion is necessary to transform the country and the economy while reducing poverty and enhancing opportunity (especially for young people) are critical to building social cohesion • Despite diverging interests, success will depend on building partnerships across society

26. Responsibility for all in society • Implementing the plan requires change and action from all in society • Private sector • Increase investment, broaden ownership, career mobility and staff development, fight corruption, use smaller suppliers, buy local, and invest in community development • Financial sector • Use strengths to leverage other investments from firms seeking to use SA as a launch pad, support investment, broaden access to financial services, support small businesses, grow on the continent, invest in staff development, don’t collude in tax evasion and money laundering • Act prudently so as not to destabilise the real sector (as in other countries)

27. Siyabonga • Thank you