Towards a Fifteen Year Review : Synthesis Report

MEDIA STATEMENT ON THE RELEASE OF ‘TOWARDS A FIFTEEN YEAR REVIEW’

1 OCTOBER 2007

Government today released the results of the fifteen year review which it initiated in 2007. It takes stock of progress, since the attainment of democracy, in achieving the objective of improving the quality of life of all South Africans.

The review is based on almost a year of research and analysis within government and by outside experts and organisations. It will feed into the long-term planning which helps direct national development. As such it is not only about taking stock of progress. It is equally about identifying shortcomings and challenges.

Government hopes that the review – as the Ten Year Review did in 2003 – will initiate public debate about South Africa’s future. The Preface states, “We would encourage social partners and citizens at large not only to articulate their own views on these critical matters, but also to assess the impact of their own activities on social dynamics within our nation and further afield.”

While the review covers the whole period since 1994, it looks closely at the last five years to see how far government has succeeded with the programmes devised after the 2004 election, to speed up growth and development.

It takes a detailed look at the impact of government activities across the different clusters of government, including the special programmes and policies aimed at meeting the needs of women, children, persons with disabilities and young people. The picture it reveals combines progress with persisting and new challenges.

It takes into account major trends in our society and internationally, such as: changes in household size and structure; growth in the economically active population; migration; structural unemployment; social cohesion; inequality; state legitimacy; national leadership and social partnership; and the global context.

The main finding is that, as we enter fifteen years of democracy, much has been done to eradicate the legacy of apartheid and build a new, just society; and that the foundations laid in the first ten years together with new initiatives since 2004 have enabled SA to notch up to a faster rate of growth and development.

However, the report says that this is not yet enough: the challenges identified five years ago have in the main proved more deep-seated than was recognised; and success has brought new challenges. The state has had to learn new ways of doing things as it implemented, but may not always have been decisive and flexible enough. The global environment is less favourable than expected.

The review concludes with a choice: on the one hand merely to continue along a path that ensures some progress but barely dents the structural ills that have prevented the country moving as fast as it could; or on the other hand to achieve a big push based on a broad national consensus that drives the totality of national endeavours towards even better social impact. The latter would depend on a number of conditions including the agency of various social actors.

Based on its findings about the impact of the state and national and global trends, the review argues that whatever is done going forward, the main elements of strategy would need to revolve around some core ideas: speeding up growth and transforming the economy; fighting poverty; building social cohesion and state legitimacy; international co-operation; and building an effective developmental state.

BRIEFING NOTES ON THE LAUNCH OF ‘TOWARDS A FIFTEEN YEAR REVIEW’

1 Why a fifteen year review?

Looking ahead to the end of its mandated term, government decided in 2007 to repeat the experience of the Ten Year Review. Informed by the lessons of the first ten years and the mandate of 2004, government had devised detailed programmes to accelerate and sustain positive trends. Critically it had to enable the country to move to a faster trajectory of growth and development. The aim of the review is to assess progress and challenges since the attainment of democracy, with special focus on the past five years.

The review is intended to contribute to the long-term planning that has become part of government’s approach to directing national development. As such it is as much concerned with shortcomings and challenges as it is with progress.

It is primarily a review of the impact of public policy on the quality of life of South Africans. Government would therefore like to see its social partners and citizens in general not only giving their own views on these critical matters, but also assessing the impact of their own activities on social dynamics within the nation and beyond. Government hopes that it serves as a catalyst for national discussion on how the country can build on what has been done, deal with the challenges and speed up development.

2 How was the Review done?

The review drew on a wide range of research, inside government and by outside organisations and experts. It built on the Ten Year Review; the Macro Social Report; and the Development Indicators. The fifty plus commissioned papers will be put on the internet. It also drew on research for the scenario planning process.

It is structured around themes corresponding to the clusters of government. The situation of the targeted groups – women, children, youth and person with disabilities – is covered both in the cluster reviews and in a dedicated section. Thematic background reports summarising the research in more detail than the final report will also go onto the internet in due course.

The synthesis report Towards a Fifteen Year Review is being published after presentation to the July Cabinet Lekgotla. It focuses on the impact of government programmes rather than the programmes themselves, though at times output indicators serve as proxy for impact.

3 What is the main finding?

Given the strategic objective of moving to and sustaining a higher trajectory of growth and development in order to sustain reconstruction and development, what has been achieved?

The review indicates that almost fifteen years into democracy, much has been done to eradicate the legacy of apartheid and build a new, just society. Halfway through the Second Decade of Freedom, SA has notched up to a faster rate of growth and development.

But it is not yet enough. The challenges identified five years ago have in the main proved more deep-seated than was recognised. Success has brought new challenges. The state has had to learn new ways of doing things as it implemented, but may not always have been decisive and flexible enough. The global environment is less favourable than expected.

4 What was that conclusion based on?

The conclusion is based on two sets of findings: on the one hand, about the impact of the state; and on the other about major trends in our society and in the global context, setting the scene within which the state acts.

5 What has been the impact of the state

Across the themes the review shows progress combined with persistent or new challenges, illustrated in the summary examples below:

Governance - There has been great progress in democratic transformation of the state, in building institutions and systems, including innovative platforms for citizen participation. Much has been done to improve coordination in government and to create a legislative and policy framework for good governance. Measures to improve service are having some impact.

        On the other hand there are problems of implementation and service in many of these areas and coordination is an ongoing and evolving challenge. Improving state capacity requires attention to skills, standards, systems and institutions rather than just more resources (except local government). The trend of local protests indicates shortcomings in actual practice in participation platforms

Social - There has been substantial overall improvement in people’s lives through mainly well-targeted programmes to reduce poverty with regard to income (mainly through grants), access to social services, and to assets (housing and land).

On the other hand, poverty is still a big challenge. Despite reduced income poverty and faster growth, income inequalities did not decrease and in some respects increased. Among many households, the cycle of poverty and dependency is reproduced by continuing weaknesses and inequalities in human and social capabilities. Most social services need attention to quality and to management of delivery

Economic - Successful policy evolution in a changing environment has seen the country achieve and sustain macro-economic stability creating the climate for faster job-creating growth and economic reform.

The current confluence of negative indicators, however, shows a need for faster removal of constraints to growth. Insufficient social partnership has limited the impact of polices. There is need for more attention to economic inclusion and for Second Economy interventions with mass impact rather than many small ones.

JCPS - The cluster’s polices and priorities are having an impact and are appropriate to the challenges

But the challenges have proved more difficult to deal with than anticipated, especially violent and organised crime and the need for integrated strategising and action across the criminal justice system. Mobilisation of society to participate in fighting crime has been less than required and crime is impacting on other area of social endeavour – the rule of law; the economy; public morale; and social cohesion

International relations - Advances towards most foreign policy objectives made in the first decade continued in the past five years, including a significant contribution to promotion of African peace and development. The country made fruitful responses to the evolution of global relations (e.g. China)

However, implementing NEPAD and improving the regional climate are still key challenges with minimal progress. SA needs better alignment of its political and economic diplomacy and stronger public diplomacy.

Targeted groups – In many dimensions, democratic government has been instrumental in improving the lives of women; children; people with disabilities and youth. Legislation and institutional machinery puts government on track to meeting most of its Constitutional obligations regarding vulnerable groups.

But persistent inequalities reduce the impact of state action to reduce vulnerabilities especially regarding employment and violence. Employment of persons with disabilities in public and private sectors is less than it should be.

5.1 Transversal post-2004 initiatives

Government response to the experience of implementing the 2004 mandate has included some major mainly cross-cutting initiatives in the past few years:

• Integrative interventions such as AsgiSA; JIPSA; integrated crime strategy and revamp of the Criminal Justice System; and better alignment of planning and mandate
  
• Review of critical policy areas, including the National Industrial Policy Framework; and comprehensive approaches to social insurance and social cohesion
• Crystallisation of thinking about concepts of governance, e.g. the developmental state.
  

6 What trends in society does the review look at?

Major trends in our society and beyond shape the terrain in which the state acts and affect the possibilities of what can be achieved. The review therefore revisits the socio-economic trends identified at the end of the first decade of freedom, and looks at new socio-economic dynamics. These include such matters as the unbundling of households; growth in the economically active population; migration; structural unemployment; social cohesion; inequality; legitimacy of the state, national leadership and social partnership; the global context and the evolving domestic and international policy context.

7 Where does the main conclusion lead?

Given the main finding, what broad strategic framework would enable government to overcome persistent and new challenges and succeed in enabling the country to move to a trajectory of growth and development that is sufficient to meet our development objectives?

SA could continue on the path it has followed, ensuring some progress but barely denting structural ills such as economic structure, massive unemployment among youth and unskilled, inequality, poor quality in some social services and trends in violent crime. With this, society will plod on with occasional social instability

The question is whether there is a possibility for a big push based on broad national consensus propelling the totality of national endeavours towards better social impact?

The review suggests that there is such a possibility, but that it depends on a number of conditions, including the agency of various social actors. Success will require a decisive state with higher levels of legitimacy, and a more cohesive society, together prepared to pursue a common vision and make the necessary adaptations and choices between priorities when the need arises

8 Elements of strategy

Whatever is done going forward, the main elements of strategy would need to revolve around some core ideas:

Speeding up growth and transforming the economy

Faster and shared growth is essential for reducing unemployment and poverty. In turn, the country’s productive capacity needs to be improved so we can grow faster, absorb more labour including people with less skills, ensure competition, increase exports and ensure thriving conditions for small and micro-enterprises. There is also a need to develop Second Economy programmes that have a mass impact.

There will be a need to take account of a shift in the cost of energy and to protecting the environment.

Fighting poverty

Measures to overcome poverty are central to the comprehensive anti-poverty strategy that government is developing. Reducing unemployment is the key antipoverty measure. It requires removing whatever barriers are responsible for the country having a weak, small business sector and many able-bodied people discouraged from seeking work.

Fighting poverty requires a special effort towards increasing people’s chances of entering the labour market and/or setting up their own businesses. Education has enormous potential to break the cycle of poverty.

Building social cohesion and state legitimacy

Ensuring a harmonious society requires a reduction in inequality, through access to economic opportunities for all, better outcomes in education and skills-training, and sustaining pro-poor government spending.

Key to social cohesion are strong and legitimate public institutions. That requires better service by the state, improved platforms for public participation and reducing crime and corruption. Similarly, society has the responsibility to respect and protect the legitimacy and authority of state institutions.

Building a cohesive society also requires the promotion of solidarity and caring among all South Africans rather than the values of individualism. State and society need to work together in developing a new value system.

Pursuing the values of international co-operation

Much work has been done to strengthen partnerships across the world, especially in Africa and the South. This needs to continue, still prioritising Africa and the countries of the South while maintaining relationships with industrialised countries. Strengthening strategic partnerships and the deployment of resources to advance African development will help advance our national interests.

Building a developmental state

To do the things outlined above, the state would need to:

• be people-centred and people driven
• lead mobilisation of all sectors of society towards a common national agenda
• implement programmes effectively and ensure that it has the right structures and systems for co-ordinated action
• translate the broad goals and objectives in the Constitution and the electoral mandate into practical programmes and projects
• have stronger platforms for more regular interaction between citizens and their public representatives

9 Programmatic elements of strategy for reference

Achieving these broad elements of strategic posture will require specific initiatives and programmes as well as institutional changes and improvements. The concluding section of the review provides a list for consideration of a range of programmatic elements that can be implemented in various packages and sequenced in various ways depending on particular policy choices. The experience of those developing countries which have achieved accelerated development in similarly challenging circumstances emphasises that whilst all the initiatives and programmes would be critical in moving the country towards faster growth and development, success will require focus on a few catalytic initiatives as strategic priorities.