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CAPEC INTERNATIONAL FORUM

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Title: CAPEC INTERNATIONAL FORUM


1
CAPEC INTERNATIONAL FORUM BEIJING, CHINA,
20 NOVEMBER 2013
Lefadi Makibinyane Chief Executive Officer
2
(No Transcript)
3
National Development Plan - Background
Apr President Zuma appoints the Commission
Jun Diagnostic Report published
Nov Draft National Development Plan released
Public consultation
Aug Handover to President and Nation
Sep Cabinet adopts the Plan
Dec ANC Conference adopts the Plan
Focus on implementation
2012
2013 onwards
2010
2011
2011/12
4
National Development Plan
The National Development Plan aims to eliminate
poverty and reduce inequality by 2030. South
Africa can realise these goals by drawing on the
energies of its people, growing an inclusive
economy, building capabilities, enhancing the
capacity of the state, and promoting leadership
and partnerships throughout society. Source
National Development Plan Executive Summary
5
Overview of the 18 SIPs
5 Geographically-focused SIPs 3 Spatial
SIPs 3 Energy SIPs 3 Social Infrastructure 2
Knowledge SIPs 1 Regional Integration SIP 1 One
Water Sanitation MasterplanSIP
6
  • Role of SOCs in the PICC
  • The PICC has appointed a State Owned Company
    (SOC) to lead each SIP, the intent being to
  • Ensure project focus
  • Improve project co-ordination and quality
    (development and construction) through the use of
    standardised and proven methods and tools
  • Improve progress tracking through the use of
    standardised dashboards and common information
    technology systems
  • Raise decisions required to unblock progress to a
    ministerial and presidential level
  • The creation of the asset remains the
    accountability of the asset owner e.g.
    transmission infrastructure remains with Eskom,
    rail with Transnet Freight Rail and water with
    Department of Water Affairs.

7
  • Diagnostic Report in June 2011
  • Too few people work
  • The quality of school education for black people
    is poor
  • Infrastructure is poorly located, inadequate and
    under-maintained
  • Spatial divides hobble inclusive development
  • The economy is unsustainably resource intensive
  • The public health system cannot meet demand or
    sustain quality
  • Public services are uneven and often of poor
    quality
  • Corruption levels are high
  • South Africa remains a divided society

8
Demographic trends
  • Population to reach 58.5 million by 2030
  • Fertility rates are declining
  • By 2030 70 of population will be urban
  • In 2010, SA entered a demographic window
  • large youth population

9
Key characteristics of the NDP
  • Not just a vision - a long-term strategic plan,
    that serves four broad objectives
  • Provides overarching goals to achieve by 2030
  • Builds consensus on the key obstacles and
    specific actions to be undertaken
  • Provides a common framework for detailed planning
  • Creates a basis for making choices about how best
    to use limited resources

10
Contribution
  • The Engineering profession did contribute
    significant to the NDP
  • Relevant
  • Chapter 3 Economy and Employment
  • Chapter 4 Economic Infrastructure
  • Chapter 9 Improving Education Training
    and Innovation
  • Chapter 13 Building a capable and
    Developmental state

11
Others
  • Other parts of the NDP
  • Chapter 5 Environmental Sustainability an
    equitable transition to a row carbon
    economy
  • Chapter 6 An Integrated and Inclusive Rural
    Economy
  • Chapter 7 Positioning South Africa in the
    World
  • Chapter 8 Transforming Human Settlement and
    National Space Economy

12
Rest of the NDP
  • Not highlighted by the Engineering Profession
  • Chapters 1 and 2 about policy making and
    demographic trend
  • Chapter 10 on health challenges and promoting
    health goals
  • Chapter 11 Social protection
  • Chapter 12 Building Safer Communities
  • Chapter 14 Fighting Corruption
  • Chapter 15 Transforming Society and Uniting
    the Country

13
Shortage of Engineers
  • Accredited BEng-type Programmes per million of
    population

Country Population Programmes Ratio
South Africa 51.5 51 1.0
Japan 125.0 388 3.1
Turkey 76.9 300 3.9
Singapore2 5.1 23 4.5
United States 327.2 1854 5.7
Ireland 4.6 30 6.5
Canada 35.1 261 7.4
Malaysia 28.3 211 7.5
New Zealand 4.4 36 8.1
14
Shortage
  • Accredited BEng-type Programmes per million of
    population (contd)

Country Population Programmes Ratio
S. Korea 49.2 463 9.4
Australia 23.8 248 10.4
Taiwan 25.0 3331 13.2
Hong Kong 7.1 111 15.6
United Kingdom3 64.8 1903 29.4
Extract from Engineering Professions submission
to National Planning Commission, 2012 1 Low
estimate, not all programmes accredited 2 Low
estimate number of students per programme is
large 3 High estimate cases where two
programmes are required in combination
15
(No Transcript)
16
Diagnostic of the SA Economy
  • Under apartheid, the economy was oligopolistic
  • strong mining sector and
  • sophisticated financial services sector
  • Ownership and control patterns largely unchanged
    contribute to high levels of poverty and
    inequality
  • Low skill jobs have declined high skill jobs
    grew significantly
  • Loss of low skill jobs has raised inequality
  • Too few skills to compete with advanced economies
    high cost structure to compete with developing
    countries
  • Our weak economic performance is largely
    attributed to poor export performance since the
    early 1980s

17
Explaining the slow progress on jobs
Harder to do
Greater impact
18
Migration between provinces
The in and outflows
19
Migration
Province where people were counted compared with
province of birth
Census 2011
20
Provincial Contribution to GDP
Real GDP in 2010
21
Spatial transformation
  • Tackle inherited spatial divisions in accordance
    with principles of spatial justice,
    sustainability, resilience, quality and
    efficiency
  • Contain sprawl and increase densities (but
    mitigate against rising costs of land for the
    poor)
  • Investment in public transport should be actively
    used for the spatial transformation of towns and
    cities

22
Create jobs
Grow the economy and make it more labour absorbing
  • Lower the cost of living and of doing business
  • Increase infrastructure spending to 10 of GDP
  • Promote competitiveness and exports - diversify
    trade towards emerging economies
  • Exploit our mineral endowments to pay for
    capability upgrading
  • Promote manufacturing in areas of competitive
    advantage
  • Grow agricultural output and focus on
    agro-processing
  • Improve the functioning of the labour market to
    make it easier for young work seekers to get jobs
  • Make it possible for very skilled immigrants to
    work in South Africa

23
NDP Headline Numbers
2010 2030
Economy R1.84 trillion -R5.27 trillion
Employment 13 million 24 million
Unemployment 25.3 6
Poverty 39 0
Access to electricity 85 100
Inequality 0.69 (gini) 0.60
24
ECONOMIC INFRASTRUCTUREIN THE SHORT TO MEDIUM
TERM Regulation, energy, watertransport, ICT
25
Low-carbon economy
  • Focus on more energy-efficient buildings and
    building techniques.
  • Target is zero emission building standards by
    2030.
  • Invest in research and human capacity in climate
    change adaptation and climate modelling,
    agricultural technologies
  • Establish Independent Climate Change Centre to
    support actions of government, business and civil
    society.
  • Invest in renewable energy technologies.
  • Target is for at least 20 000 MW of renewable
    energy to be contracted by 2030.

26
Regulation
  • Plan has called for a far-reaching review of
    current infrastructure regulators, to clarify
    roles and accountabilities, update legislation
    and subsidiary regulations and reform
    institutional arrangements and design

27
Regulation
  • Internationally, there has been much recent
    rethinking about the institutional arrangements
    and design of network regulators.
  • Regulators can do more to smooth prices and avoid
    these economic shocks.
  • The quality of regulation, however, is not just
    about the regulator. The state itself must have
    adequate capacity and capability to formulate
    effective policy framework, support the design,
    establishment, review and improvement of
    regulators and to respond adequately to issues
    identified by capable regulators.

28
Build a capable state
  • Create a professional public service
  • Ensure that the public service in immersed in the
    development agenda but insulated from undue
    political interference
  • Boost the role of the public service commission
  • Create an administrative head of the public
    service
  • Make the public service a career of choice
  • Establish a government - wide graduate trainee
    programme
  • Create career paths for technical specialists and
    local government civil servants
  • Improve relations between national, provincial
    and local government
  • Give metros a more coherent set of powers

29
Build a capable state
  • Improve state-owned enterprises a professional
    public service
  • Produce clear, publicly available mandates
    setting out public interest
  • Clean up governance structures government
    appoints the boards and the boards appoint CEOs
  • Clearly delineate responsibilities between
    departments
  • Professionalise the police service
  • Implement dual track recruitment process
  • Put in place code of conduct to enforce discipline

30
Implications for Local Government
  • Need to strengthen the ability of local
    government to fulfil its developmental role
  • IDPs need to focus attention on critical areas
    such as spatial planning, infrastructure and
    basic services.
  • IDP process needs to be led by municipal staff,
    not outsourced to consultants
  • Local govt must identify NDP programmes where
    implementation can start immediately
  • Build on NDP proposals and develop programme
    implementation plans

31
Managing intergovernmental relations
  • Give metros greater control over built
    environment functions
  • Broker agreements on the division of service
    provision and funding where duplication exists
    between district and local municipalities
  • Regional service providers to play a role where
    municipalities lack capacity

32
Summary on Engineering
  • We have a long standing deficit
  • Development will require greatly increased
    engineering skills to plan, design, build,
    maintain and operate services and infrastructure
    for improved quality of life for the majority
  • The shortage is a structural problem
  • Production of engineering professionals is a
    pipeline process needs an integrated approach
  • Addressing the structural problem requires a
    concerted action by a group of stakeholders, i.e.
    government, engineering universities, basic
    education employers and even Setas.

33
The six pillars of the NDP
  1. Mobilisation of all South Africans
  2. Active engagement of citizens in their own
    development
  3. Expansion of the economy making growth
    inclusive
  4. Building of key capabilities (human, physical
    institutional)
  5. Building a capable and developmental state
  6. Fostering of strong leadership throughout society

34
Engineering activities
  • Economic development and provision of services
  • to society
  • Application of engineering sciences, technology,
    and techniques
  • Engineers provide solutions predicted in often
    uncertain contexts
  • Engineering has consequences and .. Must be
    carried out
  • - responsibly and ethically
  • - efficiently and economically
  • - safeguarding health and safety

35
Relevance
  • Where Engineering comes in
  • Climate change, extreme weather, energy, new
    energy sources, low carbon economy, sanitation,
    water supply, flooding, waste management,
    manufacturing, natural/mineral resources,
    agricultural output, pollution, fuels, etc.

36
Relevance
  • Also Inclusive Growth w/c reduces unemployment
    reduces poverty and raises living standards
  • Need to improve material conditions and human
    conditions iot improve capabilities of SA
  • For all this we need active citizenry, effective
    government and strong leadership

37
The visioning has been done we must now focus
on implementation measurable outcomes
38
A focus on implementation
  • Integrate NDP into government plans for 2013, and
    make existing government work consistent with the
    Plan
  • Identify, at the outset, areas of responsibility
    and accountability
  • Prioritise critical steps to unlock
    implementation
  • Sustain broad public support and use social
    dialogue to construct cross-sectoral partnerships
    and set benchmarks

39
  • THANK
  • YOU
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