Almost two decades after south africa s political transformation, the countrys food security context demands serious attention amidst excessively high unemployment and depressed economic growth. National strategy department of environmental affairs. South africa is showing that, with its new growth path, it has learned the great recessions lesson aa in a way that america still has not, writes joseph e. The accelerated and shared growth initiative for south africa asgisa was a compromise that aimed to halve unemployment in 10 years, but implementation was hindered by political power playing. It identifies strategies that will enable south africa to grow in a more equitable and inclusive manner while attaining south africas developmental agenda. The new growth paths ngp principal objective is employment creation. President jacob zuma declared 2011 south africas year of job creation.
He noted that, along with gdp growth slowing to below 2% p. Apr 10, 2011 the new growth path commits south africa to work with other countries on the continent to build a single african integrated economy, embracing one billion consumers, and to focus immediately on expanding economic links with the rest of the continent. Coulibaly explains why stalled manufacturing growth in africa is not as worrisome as some may think. It sets out the key jobs drivers and the priority sectors that we will focus on over the next few years. South african poverty and inequality assessment discussion. This update builds on our solid partnerships with the national treasury, statistics south africa, the national planning commission, and the department of planning, monitoring, and evaluation. It marks an intended break with the growth path of the. In october 2010, with the introduction of the new growth path ngp, the new national economic policy for south africaby the minister of economic development, minister ebrahim patel, the government was severely criticised on all. It identifies strategies that will enable south africa to grow in a more equitable and inclusive manner while attaining south africa s developmental agenda. Do you believe that overall policy in the form of the newly released new growth path and the industrial policy action plan together with the budget support the development of small business in south africa.
There is growing consensus that creating decent work, reducing inequality and defeating poverty can only happen through a new growth path founded on arestructuring of the south african economy to improve its performance in terms of labour absorption as wellas the composition and rate of growth. This essay supports minister gordhans notion and provides suggestions on creating a sustainable growth model for south africa. The text of this document is reproduced in this booklet, which is the second edition of the publication. At prudentials recent showcase event face to face, guest speaker frans cronje examined the latest major trends that are likely to shape the future path of south africa to 2030. Much of its economic future will depend on what happens in the next few years. Factor productivity and potential output growth in south africa. It identifies strategies that will enable south africa to. In october 2010, with the introduction of the new growth path ngp, the new national economic policy for south africa by the minister of economic. One of the core components of the plan is to increase the amount of government funding to boost employment prospects.
Since the beginning of democracy the south african government has been increasingly trying to attract fdi into the country. Pdf on mar 1, 2016, nwabufo ufo okeke uzodike and others published south africa and brics. South african new growth path sets ambitious target to create 5 million jobs by 2020 president jacob zuma declared 2011 south africa s year of job creation. In short, the share of mining in national output has more than halved in the postapartheid period. South africa s urbanisation rate has been slower than that of other african countries. Pdf south africas national development plan and new growth.
South africa is an interesting case, since despite being a. Agro processing sector department of trade and industry. In order to rebuild and transform the economy after years of apartheid regimes economic isolation and financial sanctions which were enforced by the international community, reconstruction and. New growth path ngp booklet 1 there is growing consensus that creating decent work, reducing inequality and defeating poverty can only happen through a new growth path founded on a restructuring of the south african economy to improve its performance in terms of labour absorption as well as the composition and rate of growth. Twenty years after the fall of apartheid, social and economic disparities persist in south africa and have a profound effect on the health of the population. The new partnership for africa s development is about consolidating and accelerating these gains. Creditease and the new growth path creditease is well poised to benefit from the new growth path that ebrahim patel, the minister of economic development, has proposed.
Safetyrelated stoppages also affected mining production in 2016. It must also lay out a dynamic vision for how we can collectively achieve a more developed, democratic, cohesive and equitable economy and society over the medium term, in the context of sustained growth. Pdf the progress of social development in south africa. This is a good start, but what is most conspicuously absent is an international scan of the characteristics of countries that have succeeded at achieving high rates of economic growth and creating millions of new jobs. Fdi inflows and economic growth in south africa from 1994 to 20. The plan, announced by minister in the presidency for performance monitoring and evaluation collins chabane in november 2010, aims to address unemployment, inequality and poverty by unlocking employment opportunities in south africa s private sector. The performance of and outlook for the south african economy. This article tells about the south african path towards green growth, explains strengths and challenges of this process and what makes difficult for south africa the worlds 11th largest carbon emitter to balance growth and sustainable development. The new growth path framework government adopted the new growth path ngp as the framework for economic policy and the driver of the countrys jobs strategy this booklet is the first in a series of publications on the new growth path. This study conducts a detailed growth decomposition exercise for 19962015 to measure factor contributions to economic growth in postapartheid south africa.
It sets a target of five million new jobs to be created by 2020. Balancing economic growth and sustainable development. The new growth path s ngp principal objective is employment creation. South africas national development plan and new growth path. New growth path mining qualifications authority mqa.
Pdf south africas national development plan and new. Republic of south africa international labour organisation, decent work country programme 2010. The progress of social development in south africa article pdf available in international journal of social welfare 15s1. South african new growth path sets ambitious target to create. The agroprocessing sectors economic performance is closely related to the overall rate of economic growth in south africa and key exports markets. Inclusive growth an imperative for african agriculture. Economic cluster under the leadership of minister for economic development ebrahim patel. So the growth trend in african infrastructure is far from over, and several countries have already announced significant additional spending. Small business sector small business is praised for its potential to create jobs and grow the economy. Though it is abundantly clear that labour market transformation has always been a key prerequisite to the new dispensation promised by postapartheid south africa, apartheids legacy of poverty, discrimination and inequality has proven difficult to dismantle. South african new growth path sets ambitious target to create 5 million jobs by 2020 president jacob zuma declared 2011 south africas year of job creation. Structural unemployment in sa 2 extremely high compared to various highlydeveloped countries.
The new growth path 2010 and the national development plan 2011 mark important steps taken by the brics latest member, south africa. The governments new growth path aims to create five million jobs by 2020 and bring unemployment rate down to 15 per cent. As part of world banks ongoing dialogue with counterparts in south africa, the study, south africa economic performance and policies concentrates on one central question. South africas key economic policies changes 1994 20. This booklet has been produced as a public information resource. Cosatu, a growth path to full employment, september 2010. Megdp mpumalanga economic growth and development path. National development plan ndp npc, 2012 and the new growth path ngp ded, 2010. The background to the new growth path includes unemployment 12. The impact of a national minimum wage on the south africa.
The approval signalled a new wave of thinking aimed at promoting the effective stewardship of south africa s natural, social and economic resources. In africa today, a new momentum for structural transformation is gathering steam. Inclusive growth an imperative for african agriculture i since 2000, africa has been experiencing a remarkable economic growth accompanied by improving democratic environment. South africa successfully held its first democratic elections in april 1994 and the african national congress anc won with a majority vote to head the government of national unity. South africa s domestic economy is expected to grow faster than those of the major developed economies and it will be important to ensure that local producers are appropriately positioned to. Dynamic emerging economies, particularly china, india and brazil, have fuelled global growth. How to shift domestic energy economy away from coal. Central to the new growth path is a massive investment in infrastructure as a critical driver of jobs across the economy. This is a good start, but what is most conspicuously absent is an international scan of the characteristics of countries that have succeeded at achieving high rates of economic growth and creating millions of new. Despite south africas strong economic and political foundations, the country suffers from severe income inequality, poverty, unemployment and a lack of relevant job skills among historically.
It is a call for a new relationship of partnership between africa and the international community, especially the highly industrialised countries, to overcome the development chasm that has widened over centuries of unequal relations. Health and health care in south africa 20 years after. The new growth path involved substantial work in government. Inclusive growth and development national treasury. Plan and new growth path framework against the development. Developments in the south african economy and drivers of growth over the medium term domestic factors are impacting the south african economy adversely.
The continent is once again on a positive path of growth and political and socioeconomic transformation, despite the strong. One of the major objectives of gear was to enhance the credibility of the south african government by signalling to the international investor community south africa s. South africa s national development plan and new growth path. Kennedy school of government, harvard university, cambridge, ma, usa. In 2008, cabinet approved the south africa national framework for sustainable development nfsd. School of oriental and african studies, london, uk the new growth path ngp is the symbolic policy document of south africa s newly formed department of economic development. South africas inequality is getting worse as it struggle. On the domestic front, the drought that affected south africa over the 201516 summer season resulted in an 8% contraction in agricultural output last year, which shaved off 0.
The new growth path ngp for south africa showme south. This framework reflects governments commitment to prioritising employment creation in all economic policies. The national economic growth path the second chapter focuses on the national economic growth path and high level provincial applications. Pdf south africas new growth path ngp plan aims to create 5 million jobs by 2020 and bring about a new more inclusive, labourabsorbing and. A focal point of the new growth path ngp is massive investments in infrastructure as a key driver of job creation across the economy. There is growing consensus that creating decent work, reducing inequality and defeating poverty can only happen through a new growth path founded on a restructuring of the south african economy to improve its performance in terms of labour absorption as well as the composition and rate of growth. Firstly the share of mining in gdp stood at 11% in 1994, but has steadily declined over an eighteen year period to its current 5% in 2012.
Trends in annual and quarterly potential output growth and the output gap were estimated using the hodrickprescott hp. The ndp was developed by the national planning commission npc and the ngp by the. As the world bank, we stand ready to work with all stakeholders and support south africa to fulfill its development agenda and contribute to ending extreme. President, aeasa agricultural economics association of south africa and director. The south african economy in the last few years, growth in the economy has been very disappointing. The deterioration in south africa s economic growth, and stubbornly high unemployment were among the most influential determinants of the countrys path to 2030, cronje said. The macroeconomic policy of the south african government was first defined in the growth, employment and redistribution gear strategy that was adopted in june 1996. Furthermore, in northern africa it fell from about to 11 per cent and in southern africa it fell from 23 to 18 per cent. Dr frans cronje, ceo of the centre for risk analysis, revealed south africas most likely roads to 2030 in his new book. According to the imf, the regions real gdp growth fell from 5.
What potential paths will sa follow in the years to 2030. South africa is a good example of a country where a record of economic growth has not necessarily translated into improvements in economic well. North west the north west economy depends heavily on platinum mining, with limited manufacturing, agriculture and construction. South africa has embarked on a bold new economic growth path in a bid to create 5million jobs and reduce unemployment from 25% to 15% over the next 10 years. South african poverty and inequality assessment discussion note draft for discussion only draft january 20161 contents 1. S53 s64 july 2006 with 4,781 reads how we measure reads. Gear growth employment and redistribution gva gross value added iec industrial and economic cluster ipap 2 industrial policy action plan ler learner. The new growth path must provide bold, imaginative and effective strategies to create the millions of new jobs south africa needs. South african new growth path sets ambitious target to create 5.
Developments in the south african economy and drivers of. The plan, announced by minister in the presidency for performance monitoring and evaluation collins chabane in november 2010, aims to address unemployment, inequality and poverty by unlocking employment opportunities in south africa. Master in economic development and growth fdi inflows and economic growth in south africa from 1994 to 20 lea strauss lea. It is argued in this paper that over the past three decades the national space has been left open for interpretation in terms of economic growth and development, which has led to a lack of execution of the wellintentioned spatial.
A summary of the work has been released as the new growth path. New growth path there is growing consensus that creating decent work, reducing inequality and defeating poverty can only happen through a new growth path founded on arestructuring of the south african economy to improve its performance in terms of labour absorption as wellas the composition and rate of growth. Analyzing fdis and exports as a new growth path for south africa ts masipa paper presented at the economies of regions learning network erln conference. Reflections on policy contradictions and implications for food security aeasa presidential address 2012 1 october 2012, bloemfontein sheryl hendriks abstract almost two decades after south africas political transformation, the countrys food security. The recent cabinet changes by president jacob zuma and the divisions within the anc are examples of such domestic instability which might see the country experiencing a ratings down grade in the near future. Govt on wrong track for new growth path, say researchers article gillian jones 2 oct 2011 the government has not created the right climate to achieve the targets of the new growth path economic. Set 1 the context of the national development plan ndp. Find, read and cite all the research you need on researchgate. As a result, over the past 20 years, its fortunes mainly tracked commodity prices, with a boom from 2003 to 2011 and a sharp slowdown from 2011 to 2014. For south africa to achieve a more inclusive and equitable economic future, rapid progress is needed on south africans want a faster pace of development and s social progress worldwide discontent fuelled by inequality. Critics are of the opinion that the new growth path ngp, the latest national economic development policy as introduced in 2010, will not have the desired impact on the economy due to a lack of detail and limited new ideas. The governments new growth path aims to create five million jobs. This national strategy for sustainable development and action plan also referred to as.
A shared strategic framework for inclusive growth and. Analyzing fdis and exports as a new growth path for. Tfp growth and growth in actual and potential output. In october 2010, with the introduction of the new growth path ngp, the new national economic policy for south africa by the minister of economic development, minister ebrahim patel, the government was severely criticised on all fronts.
According to the world economic forums wef global competitiveness report. South african new growth path sets ambitious target to. African development path development bank of south africa. Can south africa be considered a developmental state. A study of national urban policy responses to urbanisation working paper. Comment on some fundamentals of the new growth path as. The purpose of the series is to stimulate a constructive discussion. The particular focus will be on understanding it from a science, engineering, technology set perspective. After years of conflict, turmoil and economic stagnation, africa s fortunes have turned for the better. Economic policy and outlook overview conomic prospects continue to improve in the wake of the great recession. The new growth path we are living through a sea change in the world economy, and every nation has to chart its own course. In 2015, subsaharan africa experienced its slowest economic growth rate since the 1998 global financial crisis.
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