A focal point of the new growth path ngp is massive investments in infrastructure as a key driver of job creation across the economy. The new growth path framework documents politicsweb. Nevertheless compared to other emerging economies south africa is still characterised by relatively low levels of. The national economic growth path the second chapter focuses on the national economic growth path and high level provincial applications. This essay supports minister gordhans notion and provides suggestions on creating a sustainable growth model for 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 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. However, between the period 2008 and 2010, the country lost over a million jobs with. 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. Comment on some fundamentals of the new growth path.
It identifies strategies that will enable south africa to grow in a more equitable and inclusive manner while attaining south africas developmental agenda. Oecd economic surveys south africa volume 201011 july 2010 oecd economic surveys south africa. We also collaborate in the development and introduction of health technologies that address key causes of illness and death in women and children. Both private and public sectors contributed to this moderate upsurge of investment. Critics are of the opinion that the new growth path ngp, the latest national economic. In short, the share of mining in national output has more than. South african new growth path sets ambitious target to. Moving beyond the crisis and finding a new sustainable growth path. South africas capitec bank leverages a technologydriven, lowcost banking model attractive to. It must also lay out a dynamic vision for how we can collectively achieve a more developed, democratic, cohesive and equitable economy and. In 2008, cabinet approved the national framework for sustainable development nfsd, which signalled a new wave of thinking that was aimed at promoting the effective stewardship of south africas natural, social and economic resources. The impact of a national minimum wage on the south africa. In a new policy paper treasury says that sas current economic path is unsustainable.
Megdp mpumalanga economic growth and development path. South africa is putting in place a mitigation system to realise the opportunities of a lowcarbon economy while being. It identifies strategies that will enable south africa to. National strategy department of environmental affairs. Inclusive growth and development national treasury. South african new growth path sets ambitious target to create 5. The background to the new growth path includes unemployment 12.
Central to the new growth path is a massive investment in infrastructure as a critical driver of jobs across the economy. 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. Third, the national government was required to share national tax revenues with the provinces to finance assigned provincial services. 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. This will be a complex and difficult undertaking, but the continent seems to be on the right path. South africas 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. 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. Our projects in south africa focus on improving maternal health, enhancing infant and young child health, strengthening health systems, and preventing and treating hivaids and tuberculosis. This framework reflects governments commitment to prioritising employment creation in all economic policies. Pdf south africas national development plan and new. Can south africa be considered a developmental state. Mbowenis new plan to boost growth and create a million.
If youre reading the pdf ebook edition, and your pc is connected to the internet, simply. The new partnership for africa s development will enable africa to increase her contribution to science, culture and technology. 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. 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. 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. Small, medium and micro enterprises smmes have been identified as a key component to advancing inclusive growth and development in south africa. It identifies strategies that will enable south africa to grow in a more equitable and inclusive manner while attaining south africa s developmental agenda. 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. Understanding the democratic transition in south africa 3 administration of transfers to the poor and elderly. 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.
Fiona tregenna department of economics and econometrics, university of johannesburg, johannesburg. New growth path mining qualifications authority mqa. After years of conflict, turmoil and economic stagnation, africas fortunes have turned for the better. President jacob zuma declared 2011 south africas year of job creation. All documents emphasize the role of governance and public sector for economic development. The agroprocessing sectors economic performance is closely related to the overall rate of economic growth in south africa and key exports markets. The continent is once again on a positive path of growth and political and socioeconomic transformation, despite the strong. 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. National strategy for sustainable development and action plannssd1 20112014. Given recent global and regional trends, it is likely that the imf will revise its 2016 subsaharan africa growth forecast downward. 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. The new growth path we are living through a sea change in the world economy, and every nation has to chart its own course. Acceleration of inclusive growth is therefore crucial if south africa is to realise significant reductions in poverty, inequality and unemployment.
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. Although food insecurity at household and individual levels is unacceptably high in south africa, the nation has for decades reported its aggregate national position as food secure. South africas national development plan and new growth. South africa s urbanisation rate has been slower than that of other african countries. In this new millennium, when humanity is searching for a new way to build a better world, it is critical that we bring to bear the combination of these. South african new growth path sets ambitious target to create. Understanding the democratic transition in south africa.
Abstract almost two decades after south africas political transformation, the countrys food security context demands serious attention amidst excessively high unemployment and depressed economic growth. The announcement was made on tuesday by minister in the presidency for performance monitoring and evaluation, collins chabane. Developments in the south african economy and drivers of growth over the medium term domestic factors are impacting the south african economy adversely. The governments new growth path aims to create five million jobs. 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. South africa is a good example of a country where a record of economic growth has not necessarily translated into improvements in economic well being for the majority of the population. It is a new and exciting process which allows us to enter into frank discussions on how to improve south africas competitiveness. We have since engaged actively in the ngp discussions led by minister patel. Republic of south africa systematic country diagnostic. Pdf click to increase image size click to decrease image size. Developments in the south african economy and drivers of. Growth, employment and redistribution gear, the accelerated and shared growth initiative south africa asgisa, the new growth path ngp, and the national development plan ndp.
The new growth path 2010 and the national development plan 2011 mark important steps taken by the brics latest member, south africa. Much has been said about the two initiatives and the national planning committee, the agency responsible for priority strategic planning that necessitates an interdepartmental approach. 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. One of the core components of the plan is to increase the amount of government funding to boost employment prospects. Towards an economic strategy for south africa was published. The governments new growth path aims to create five million jobs by 2020 and bring unemployment rate down to 15 per cent. New research by the brookings institutions africa growth initiative and the united nations university world institute for development economics. South africa gross capital formation displayed a growth rate of 2. Pdf does economic growth lead employment in south africa. A shared strategic framework for inclusive growth and. African development path development bank of south africa. South african new growth path sets ambitious target to create 5 million jobs by 2020. Agro processing sector department of trade and industry.
In africa today, a new momentum for structural transformation is gathering steam. South africas national development plan and new growth path. Saintpetersburg 2012 contents contents 2 economic inspection in south africa 3 the new growth path and industrial policy action plan 8 investment promotion and facilitation 12 south africas investment landscape 16 government management of incentives program 19 catalogue of incentives 20 about. A study of national urban policy responses to urbanisation working paper. According to the imf, the regions real gdp growth fell from 5. The new growth paths ngp principal objective is employment creation. South africa is to embark on a new economic growth path in a bid to create fivemillion jobs and reduce unemployment from 25% to 15% over the next 10 years. 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. The new growth path must provide bold, imaginative and effective strategies to create the millions of new jobs south africa needs.
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