Q Mahlangu: Gauteng Global City Region Models conference

20 April 2007

Programme Director Mokgopodi Mokoena,
Executive Mayors,
Heads of Departments,
Municipal Managers,
Members of the Gauteng Legislature,
Senior Municipal Officials,
Visiting professionals and academics,
Ladies and gentlemen

A special welcome to the members of the Forum Federations who have travelled
far and wide to share their knowledge and experience with us here today.
Welcome to South Africa and in particular to the Gauteng City Region. It is now
an established fact: Knowledge is the basis for development and progress within
modern societies both domestically and internationally.

In our Global City Region (GCR) perspective, we indicate the following as
central to enhance Gauteng's global competitiveness: the capacity and ability
to manage modern knowledge economies; Innovation and Research and Development.
Thus, as part of this agenda, we have recently concluded the Gauteng Social
Development Strategy; it demands significant levels of knowledge for its
successful implementation.

This therefore, places a major challenge for the political, industrial and
social leadership within the Gauteng City Region to be on the cutting edge of
knowledge generation, dissemination and consumption on city regions. Similarly,
there is a massive challenge for city region managers across spheres of
government to be ready to provide leadership on the issues raised earlier.
Hence, we did not hesitate to host this conference upon learning that a group
of experts on city regions is in the country. This we did in the understanding
of the necessity of knowledge sharing from all corners of the world.

In this regard, on behalf of the Gauteng Premier, the Honourable Mbhazima
Shilowa let me officially welcome the expert members of the Forum of
Federations Gauteng. We welcome the Federations' commitment to create
international platforms of knowledge sharing on a variety of issues. We are
happy that the Community Law Centre at the University of the Western Cape is
devoid of the syndrome of territorialism.

Despite its location in the Western Cape province, it recognised the
importance of the Gauteng province drive to develop as a globally competitive
city region. We have correctly stated in the GCR perspective that Gauteng's
socio-economic functionary is a national project. In short, building Gauteng as
a globally competitive city region is a vital national priority. And I believe
that this has been part of the motivating recognition for the Community Law
Centre to facilitate the gathering of our experts' guests to this engagement
process. Professor Steytler; thank you very much.

We are equally very pleased that we are gaining momentum in consolidating
and strengthening partnerships between the Gauteng government and the Gauteng
based, and yet universal institutions of higher learning. In the last few
months, we have worked closely with the Universities of Wits, Jo'burg and
Pretoria in the capacitation of the senior managers in Gauteng to better
understand the GCR. We have initiated engagement processes with the University
of South Africa and partnership in this regard will be consolidated.

This we will do because universities and other research institutions are
proven to be major role players in both the developed and developing city
regions. Their core business is that of producing knowledge and therefore, is
crucial to ensure that the Gauteng City Region remains abreast of knowledge
development in its quest to remain globally competitive. When the opportunity
arose for this conference, we took cognisance that there are various dimensions
to building the Gauteng City Region. We chose to focus on models and forms of
city region governance. This decision is informed by two particular
observations, one is the fact that most of our guest experts work, research and
lecture in the field of inter-governmental relations; secondly, we considered
that the GCR implementation plan states that one of the immediate tasks is to
build the institutional framework to govern the city region. Hence, we decided
that a focus on forms and models of city region governance is ideal for this
occasion.

However, we are equally cognoscenti to the fact that governance is not
limited to the state's institutional arrangement and relations between spheres
and departments. It is now an established fact that it is not enough to have
correct policies and laws. Strategic partnerships with various stakeholders are
a crucial element of governance. Hence, we included a sub-theme to deliberate
on engagement and management of relations with civil society, academic bodies
and the private sector.

Equally important is the growing role of Public Shared Services agencies
within successful city regions. In the main, Public Shared Services agencies
aim to enhance productivity by providing a back office infrastructure to deal
with issues such as: Information Technology (IT) infrastructure and services,
Human Resources, procurement, innovation, knowledge management and at some
level co-ordination of Research and Development. The Gauteng Shared Services
Centre is in the process of concluding its own review since its establishment
and determines a more concrete role within the growth and development of the
Gauteng City Region. Linked to this, is a reflection whether local government
requires shared services and if so, of what form and content.

I am convinced that our broad thinking on city region governance is the
correct one. It encompasses consideration of three particular and intertwined
factors: Institutional and structural framework management of various
relationships and interactions and lastly a particular cultural value system
commensurate with city regions development.

Writing on the subject of metropolitan system of government, Alain
Thierstein and Simon Gabi make the following governance recommendations on
governance strategy, governance structures and governance culture. Thierstein
and Gabi argue that creativity has to become part of the above three
factors.

The Organisation for Economic Co-operation and Development stated back in
2001 that appropriate metropolitan system of government is not limited to
particular institutional arrangements and public financial distribution. These
must be complemented by a particular behavioural and a particular governance
culture. The governance strategy in city region is important because it focuses
on what it needs and must be done, to achieve specific goals. These may be
economic or social development goals. The governance strategy therefore is
crucial in providing strategic orientation and key focus on city region
activities aimed at the broader goals.

In this regard, the following Gauteng strategies are vital: the growth and
development strategy, the social development strategy and the capacity and
organisation of the state strategy. The governance structures are vital in that
they ensure that there is proper integration, co-ordination, implementation and
the monitoring of the activities and outputs of the city region. Therefore, The
Premier's Co-ordination Forum as the key structural driver of intergovernmental
relations and effectively the GCR is an important GCR governance structure in
this regard. Hence, in the recent provincial Lekgotla, its strengthening was
reiterated.

Both governance structures and strategies are led and managed by people and
involve a multitude of relationships and interactions. Hence, there is a need
for a particular form of a governance culture. This entails behaviour patterns,
cultural attitudes, values, principles and norms and mutual trust commensurate
with leading and managing city region strategies and structures.

Thierstein and Gabi conclude that: "The three structuring systems must be
interdependent if governance is to be efficient and effective. Improvement of
metropolitan governance means a simultaneous and mutually co-ordinated
development of strategy, structures and culture."

It must be understood that the above variants of city region governance and
their co-ordination happen within city region's socio-economics that are mainly
knowledge based. Therefore, Research and Development and innovation in
particular are crucial elements of city region governance. Thus, innovation and
creativity must be considered crucial factors in the consolidation of the
Gauteng city region governance.

Therefore, issues of the urban observatory as a key institutional framework
to consolidate the research and development agenda, innovation and benchmarking
with other city regions are crucial factors in the governance of the Gauteng
City Region. Richard Florida wrote in 2002 that the knowledge economies
prevalent in the city regions have necessitated the emergence of particular
institutions whose primary responsibility is to engage "in support and
production of innovative ideas." This includes: technological creativity which
the Gauteng Shared Service Centre (GSSC) and the Blue IQ are providing; the
Department of Economic Development provides leadership; production of goods and
services and social and cultural cohesion.

Florida further observes that the emergence of the demands of innovative
demands has resulted in the emergence of two particular components of
innovation creatives: 'The super creative core' and the 'creative class.'

The 'super-creative core' includes scientists and engineers, university
professors, poets and novelists, artists, entertainers, actors, designers and
architects as well as "the thought-leadership of modern society: non-fiction
writers, editors, cultural figures, think-tank researchers, analysts and other
opinion makers." The 'creative class' includes "creative professionals who work
in a wide range of knowledge-intensive industries, such as high-tech sectors,
financial services, the legal and health care professions, and business
management."

As the Gauteng City Region we understand very well the above. Hence, both in
our GCR perspective and its implementation plan, there is a considerable focus
on engagement and management of stakeholder relations to contribute to the
decision made in all respects. All the above identified 'creatives' will be
engaged to be part of the core planning, governance and leadership of the
Gauteng City Region.

In short, the governance of the Gauteng City Region will be a comprehensive
and multi-sectoral. As the political leadership of the GCR, we will strive to
mobilise all sectors behind the GCR vision and mission. We will provide
leadership on integration, co-ordination, implementation, benchmarking and
monitoring and evaluation.

It is in this regard that we are reviewing the powers and functions between
provincial and local government as we pursue the metropolitan system of local
government. Whilst I am passionate about the subject of city region governance
and intergovernmental relations, I am here to learn and therefore, I thank you
and declare this conference officially open. I wish you the best in your
deliberations in making Gauteng a better place!

Issued by: Department of Local Government, Gauteng Provincial
Government
20 April 2007