Programme Director
Mr Sandeep Mahajan, Acting Country Manager for South Africa of the World Bank
Mr John Pampallis, Special Advisor to the Minister of Higher Education and Training
Mr Gwebinkundla Qonde, the Director-General of the Department of Higher Education and Training
Officials from the Department of Higher Education and Training
Representatives from business, organised labour, government, community and academia
Distinguished guests
Ladies and gentleman
Introduction
In 1994, South Africa positioned itself , as a world example of a peaceful, and, well managed transition, from an oppressive and atrocious regime, to a constitutional democracy. As William Zartman (Elusive Peace – Negotiating an End to Civil Wars – 1995) noted: “Neither history nor analysis could have predicted A negotiated outcome to the internal conflict in South Africa. In history there is no precedent anywhere for successful negotiations allowing a poor majority to take over from or even to share power with a rich minority when majority and minority identify and are identified ascriptively. That only happens by revolution or postcolonial replacement”.
Political stability and coexistence, amongst various groupings, has, indeed, to a large extent, been pursued and maintained, as evidenced by peaceful elections – one after the other.
The Socio-Economic Context in South Africa
Challenges facing post – democracy attainment, are numerous. This hard fought democracy inherited untold levels of inequalities, and, social fragmentation. For example, poverty is endemic among rural and female-headed households, inequities in education and training opportunities still prevail.
The enormous human resource and skills shortage, characterised by, over-supply of low or unskilled workforce, a shortage of high–skilled workers with critical skills and a significant underdeveloped rural population, and overall poor responsive human capital stock, limit South Africa’s global competitiveness. Unemployment is 24%, using a strict measure, and 40% using a broad measure.
Persistent unemployment especially, amongst the youth, points to a large disconnect between supply of, and demand for, human resources and skills, respectively. Income inequalities are acute. Land distribution is among the worst in the world.
Government interventions
In an attempt to address deep-seated structural inequalities, in our society, our Government initiated other interventionist measures to strike the balance, between economic growth, skills development and labour absorption.
The Accelerated and Shared Growth Initiative for South Africa (AsgiSA), was launched, in 2005, as a response to the human resource and skills development crisis, in the country. AsgiSA produced the Joint Initiative on Priority Skills (JIPSA), which was launched by Former Deputy President of the Republic of SA, Ms Phumzile Mlambo-Ngcuka, on 27 March 2006.
One of the immediate aims of JIPSA, was to find ways of helping unemployed students, who have finished their studies, to find jobs. JIPSA also focused on developing, scarce skills, in the following areas:
- Engineering projects for cities and towns
- Management and planning skills in education, health and municipalities
- Teacher training for mathematics, science, information and communications technology and language skills.
It was during this time, that the country recognised the need for an alignment of Further Education and Training (FET) colleges and Higher Education institutions. Special attention was also to be paid to Adult Basic Education, in order to draw, those adults who are poor and illiterate, into the economy. The FET Colleges and universities were identified, as “core institutions” in the realisation of JIPSA aims.
The skills needed for infrastructure development, the Expanded Public Works Programmes (EPWPs) and State Owned Enterprises (SOEs), the private sector and social services delivery, in the fields of education and health, were to be prioritised.
Key Priorities of the New Administration - The New Growth Path and Reconceptualisation of State Departments
In the State of the Nation Address, delivered in June 2009, the President of the Republic of South Africa, Mr JG Zuma, stated that, the creation of descent work will be at the centre of South African economic policies.
The International Labour Organisation (ILO) defines descent work in terms of four strategic objectives.
They are:
- employment and income opportunities.
- fundamental principles and rights at work and international labour standards.
- social protection (which includes descent working conditions) and social security, and
- social dialogue and tripartism.
This position was informed by a common understanding that, inequality and poverty will never be eliminated, in South Africa without the creation of sustainable jobs. The South African economy had to be restructured to ensure that it absorbs the workforce, it grows and becomes more inclusive.
There was, therefore, a need for a New Growth Path for the country. It was noted, to this end that, in the first quarter of 2010, the unemployment rate for young people - aged 16 to 30, was 40%, compared to 16%, for those aged between 30 and 65. The available jobs were, mostly, insecure and workers were poorly paid.
According to Statistics South Africa, in the third quarter of 2008, half of all employed people earned less than R2 500 per month, and, over a third earned R1 000 a month. One in five employed African women, was a domestic worker. This shows the intersection between poverty, gender and race in South Africa. (The New Growth Path: The Framework, p.3).
To respond to the global economic challenges (in the west), South Africa has to identify and develop new areas of trade and investment in the 21st century. As the global North is facing economic recession, the economies of China, India and Brazil are expanding. Africa is no longer a source of raw materials but is increasingly becoming a role player and partner in international markets.
The questions that we need to ask and answer, is how do we make our macro-economic and micro-economic policies responsive, to these new opportunities and challenges? Can we continue on the unsustainable path of being exporters of raw materials? Can we remain with an economy that does not create jobs? Is our workforce ready for these dynamic global economic changes? The second challenge is climate change, which requires South Africa, as a member of the international community, to find alternative ways of generating energy for its economic growth.
The country also needs to improve its capacity to produce food for local and external markets in the light of changing weather patterns in the world. This requires innovative measures and the use of latest technology and knowledge, in agricultural production and in the manufacturing sector.
In addressing skills development and education and training, the new administration saw the need for the re-conceptualisation departments of state.
The Department of Higher Education and Training was established in 2009 in order to consolidate and coordinate in a more strategic manner, the post-school education and training strategies and policies of the country. The department was given the task of leading other departments in skills planning for the country (Outcome 5: “A skilled and capable workforce to support an inclusive growth path.”)
In this context, South Africa also sees it prudent to strengthen its domestic economy, in order to absorb more workers and build her skills base, to re-industrialise (State of the Nation Address, 2012) and increase investment in the green economy, tourism, road, rail and port infrastructure, mining value chain and agricultural value chain.
The National Skills Accord is an attempt to introduce policy stability and coherence through social dialogue. The accord stipulates that government, labour, business and communities must work together in ensuring that trained people gain descent jobs. As South Africans we must ensure that the trained youth are immediately absorbed by the labour market and are not snatched by foreign labour agencies. The inability to absorb trained people remains an area of concern in our country.
Job driver 4: Investing in social capital and public services is a critical component of the New Growth Path. The social economy sector involves the cooperatives, Non-Governmental Organisations, jobs in the health, education and policing sectors.
The social economy is vital as it services the well-being of the entire population and has the potential to spread the wealth of the country to all layers of society. People operating in the social economy require training in financial services, bookkeeping and marketing. Government needs to support this sector by creating more jobs for HIV and AIDS counsellors and running internship programmes that eventually lead to full-time employment.
Human Resource Development Council of South Africa (HRDC) and Human Resource Development Strategy of South Africa (HRDSA)
The Human Resource Development Strategy of South Africa (HRDSA), is meant to address the continued shortage of critical skills in the country, high unemployment, inequalities and structural challenges inherited from the apartheid and the global economy. The work of HRDSA is conducted under the auspices of the Human Resource Development Council of South Africa. The Honourable Deputy President of the Republic, Mr Kgalema Motlanthe, chairs the Council and it is managed by the Minister of Higher Education and Training, Dr Blade Nzimande.
One of the key functions of the council is to facilitate partnerships between organised labour, the private sector, government, civil society and academia in the identification and resolving of systemic human resource and skills development bottlenecks that are hindering delivery on human resources and skills development. It is also to make recommendations to project owners and stakeholders on how best to address those systemic challenges, based on the fact that human resources and skills development rely on a shared vision for the country, concrete and active partnerships.
The HRDSA further strives to improve alignment, coordination, planning, management, monitoring, evaluation and reporting of all human resource development imperatives. This will enable South Africa to measure its progress and identify areas of improvement in terms of skills development.
Out of the five point plan, two priorities for the HRD Council for this year are:
(i) increasing Artisan Training, and
(ii) building the capacity of our public FET Colleges.
In this regard we are working with the private sector to improve Further Education and Training (FET) Colleges and Higher Education and Training (HET) institutions.
A very important process is underway that involves the aligning of the HRDSA with the New Growth Path (NGP) and other relevant strategies to: support sustainable employment creation in providing the human resources and skills required to grow labour-absorbing activities, encourage equity through the increasingly fair access to quality education and through the provision of opportunities for life-long human resource and skills development.
There is specific emphasis on improving the skills of workers and increase the number of mid-level skills in different occupations such as health, agriculture and engineering.
Green Paper for Post School Education and Training (2012)
The Freedom Charter, as adopted at the Congress of the People, Kliptown, on 26 June 1955, says that, and I quote: “The doors of learning and culture shall be opened to all.” The Freedom Charter also advocates the sharing of the country’s wealth by all South Africans.
I am aware that there will be a discussion on the green paper. This Green Paper amongst others aims to align the post-school education and training system with South Africa’s overall development agenda, with links to various development strategies such as the New Growth Path, the Industrial Policy Action Plan 2, the Human Resource Development Strategy for South Africa 2010-2030, and South Africa’s Ten-Year Innovation Plan.
This will allow the Department of Higher Education and Training to contribute more effectively to the goal of inclusive economic growth and development, and to contribute fundamentally in reducing unemployment and poverty in the country.
This paper sets out a broad policy for expanding post-school provision. It aims to improve access to education and training opportunities, strengthen the capacity of institutions, especially the FET Colleges and ensure that all sectors of society, the poor and illiterate, women, rural citizens and persons with disabilities receive education and training.
The Green Paper equally recognises the fact that the two sub-systems; basic education and post-school education and training, should work in a seamless manner in order to produce learners and students that will be functional citizens and play a productive role in the social and economic development of the country.
Initiatives in the area of career guidance information dissemination have already started as the education system has identified a gap in this area. Learners tend to make uninformed career choices and thereafter fail to complete their studies. The high dropout rate in our institutions contributes to high youth unemployment, exclusion and youth alienation. A new model of colleges has been proposed. The community colleges will be linked to local economies and graduates of these colleges will be trained in skills that will be beneficial to local economic development.
The community colleges are also intended to produce citizens that will create their own jobs. This is in line with the New Growth Path approach of developing regional economies and markets, in all parts of the country. The Green Paper recognises that the education and training system on its own cannot create jobs but there should be constant interaction between institutions of education, workers ‘unions and the employers. This would avoid a mismatch between skills produced by post-school education and training institutions and the needs of the economy.
Research on the Skills Gap in partnership with the World Bank
The Department of Higher Education and Training values the active and concrete partnership, with the World Bank in conducting the Multi-Sectoral Analysis Study entitled “Closing the Skills Gap”. The aim of the study is to identify and analyse key constraints to enhancing the role of human resources, skills, technology absorption and investment climate, in accelerating labour absorbing and shared growth in South Africa and to propose key leavers for overcoming those constraints.
The results, findings and policy recommendations, which will be presented and discussed today, come at an opportune time to further strengthen and inform government’s renewed efforts to align the post-school education and training system, with South Africa’s overall development agenda, through the mentioned Green Paper process. I would believe that, the recommendations on both policy notes: “Higher Education and Growth” as well as “Challenges and options for Technical and Post-Basic Education in South Africa”, will be valuable to policy makers and planners, in key partner departments, such as Department of Science and Technology. Together with social partners will guide and shape the future development of human capital, skills, innovation, academic and research institutions.
Conclusion
I would like to thank the Department of Science and Technology and the Australian Agency for International Development (AuSAID), for working with officials of our department, in ensuring that the work of the Closing the Skills Gap Project is completed. My considered opinion is that, this report, accompanied by the two policy notes, adds value to the processes of skills development, currently, taking place in the country.
Our aim is to build on the research, analysis, cooperation, and partnership that we have gained, over the past 24 months, so that this study can be the foundation for increasing the human resource, skills and innovation base of South Africa. Our main priority is to address the triple challenges of poverty, deep rooted inequality and unemployment. In the words of the Brazilian Scholar and philosopher of education, Paulo Freire: “We are engaged in education and training for critical consciousness and the de-colonisation of the mind.”
I wish you well in your discussions and deliberations. Lessons learnt from International experiences, out of this social dialogue, would certainly go a long way, in empowering us with skills to accelerate strategies and tactics “for closing the skills gap”.
I thank you.
