Author: JMagoro
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Annexure c 

Progress Report with reference to the achievement of MDGs

The Department of Trade and Industry’s input to MDGs

Goal 1: Eradicate extreme poverty and hunger
The South African government has used a multi-pronged strategy to eradicate extreme poverty and hunger. At the centre of this strategy is the re-orientation of economic policies to be centered on employment creation and the transformation of the economy to include those that were previously marginalized by the apartheid system. This is complemented by a social security system that is targeted to provide relief to those that are experiencing high levels of poverty. In 2010, government approved the New Growth Path that seeks to create 5 million jobs by 2010 and address the inequalities and high poverty levels that are prevalent in South Africa. 

According to the Development Indicators published by the Presidency, the monthly real income of the poorest 10% of the population increased from R742 in 1995 to R1386 in 2008/09. Whilst for the richest 10 % it almost doubled increasing from R13 416 to R26 602. Poverty and inequality remain major challenges for South Africa. Using the gini-coefficient, inequality worsened from 0.64 to 0.66 in 2008. The driver of the increase in inequality has been between-group inequality. 

Using a R524 poverty line poverty headcount index decreased from 58% in 2000 to 49% in 2008. Using a R283 poverty line poverty headcount decreased from 38% in 2000 to 22% in 2008. The decline in poverty headcount is largely due to an increase in social grant uptake. The social security system that has been implemented by government has played a major role in reducing the levels of poverty. More still needs to be done to significantly reduce the levels of poverty. 

Goal 8: Develop a global partnership for development 

MDG 8 seeks to develop a global partnership for development. This includes promoting an open rules-based, predictable, non-discriminatory trading and financial system and addressing the special needs of the least-developed countries (LDCs). 

The current playing field in trade is uneven and biased against developing countries’ interests. Key challenges persist in achieving MDG Goal 8. The launch of the WTO’s Doha Development Agenda in 2001 promised to place the needs and interests of developing countries at the heart of the Doha Work Programme. However, the development mandate of the Doha Round is gradually being eroded. Developed countries have an aggressive market opening agenda directed at the emerging developing economies like South Africa in the areas of industrial tariffs and services, while maintaining high levels of protection in agriculture. 

A conclusion of the Doha Round negotiations, consistent with the developmental mandate agreed at Doha in 2001, could provide a basis for improving the development prospects of the world’s poorest countries, many of which are African. Correcting the profound imbalances in agricultural trade is a central element of this objective, but it also requires expanding real market access for industrial products of export interest to developing countries, as well as the policy space to support and implement industrial policies. Special and differential treatment in favour of developing and least-developed countries must underpin the Doha Round negotiations and be operationalised effectively. It is also important to ensure that any benefits from the Round are shared evenly, and that should African countries bear costs, mechanisms are put in place to cushion those. 

Addressing the concerns of the poorest and most vulnerable members of the WTO will assist in achieving MDG 8, such as providing duty/quote-free market access for all products from least-developed countries; removing distortions caused by cotton subsidies, which impact adversely on Africa; and addressing the capacity-building and technical assistance needs of the poorest countries.