Development, at the first annual conference on the Economics of Social
Protection, Ivory Tree Game Lodge, Pilanesberg
12 June 2007
Honourable colleagues
Profession Sibusiso Vil-Nkomo Executive Director of the University of
Pretoria
Senior government officials
Representatives of research institutions and agencies in the social policy
family
Distinguished delegates
I thank you most sincerely for affording me the privilege of welcoming you
here this evening on behalf of the South African Government and the University
of Pretoria.
We truly appreciate your presence, as the Minister and officials responsible
for poverty alleviation, social inclusion and programmes aimed at assisting
vulnerable groups in South Africa and the rest of the region. This occasion
provides a valuable platform for us to share ideas on the similar and complex
challenges faced by our country and other developing economies.
I am also pleased to welcome our partners in this dialogue, the University
of Pretoria. We have engaged in the Charlotte Manye Maxeke Collaboration, which
is a wide-ranging research and capacity-building programme, focused on the
economics of social protection. This conference follows a round-table
discussion held during January of 2006 and presents an opportunity for
liberation amongst social partners, policy makers, scientists and all
individuals interested in research and policy design in the economics of social
protection.
This subject is of vital concern within the framework of the Accelerated and
Shared Growth Initiative for South Africa (AsgiSA) towards sustainable growth,
employment and poverty alleviation, which succeeds the Reconstruction and
Development Programme (RDP) and Growth, Employment and Redistribution strategy
(Gear) strategies. The latter policies, which focussed on macroeconomic
stabilisation and trade liberalisation, have contributed significantly in
improving the economic growth performance in South Africa over the past
decade.
However, despite the increases in GDP growth rates, economic growth has
proven to be unsuccessful in making significant progress towards eradicating
poverty by addressing the unemployment, redistribution and associated
socio-economic problems in the economy. The long-term nature of the
unemployment problem will perpetuate the cycle of poverty. The permanency of a
loss of income and limited job opportunities culminates in a worsening
socio-economic situation. This creates despondency, which negatively affects
job seekers' efforts and abilities to find jobs and leads to a loss of skills
in the longer run. Apart from its apparent economic costs, prolonged
unemployment also results in severe social costs. Despite substantial
reprioritisation of government expenditure towards socio-economic programmes,
the resilient unemployment levels still pose a significant strain on government
resources. The pressure to effectively address the backlog in various
socio-economic areas in the community in order to create social stability and
using government resources to affect this is as pertinent today as it was at
the inception of our new democracy.
It is therefore essential to analyse and research the growth-inequality and
poverty phenomena. The role of budget deficits, taxation and expenditures,
monetary policy and inflation, pricing policy, balance of payments policy,
industrial and trade policy, exchange rate policy, foreign direct investment
policy and capital account liberalisation policy and their relations with
inequality and poverty need to be analysed.
Thus, the major challenges to government are to address the country's
structural weaknesses and to lower the cost and risks of investing in this
country through a comprehensive programme of microeconomic policy reforms.
Special emphasis should be placed on the maintenance and improvement of the
quality of health services and coping with the HIV and AIDS pandemic.
Ladies and gentlemen, against this background, government has reiterated its
commitment to the "struggle against poverty and underdevelopment" by:
* encouraging growth and development of the First Economy, thereby
increasing its ability to create jobs
* implementing an expansive programme aimed at addressing the challenges of the
second economy
* establishing a social security net to meet the requirements of poverty
alleviation.
These objectives demand policies that are focused on attempts to spur
economic growth, while simultaneously establishing a mechanism to address
inequalities in South African society. The issue of distribution of the
proceeds of more rapid growth should therefore also be a priority in order to
ensure that government significantly reduces poverty. It thus demands optimal
levels of government involvement, responsibility and efficiency to ensure some
level of control over the desired outcomes and the achievement of the ultimate
socio-economic goal of a better life for all in this country.
It is our view that we need to work more vociferously to raise the profile,
and the delivery, of the social dimensions of economic policy. Policies which
promote social inclusion will assist us to respond to the challenges we face in
our country and continent, problems which know no boundaries. It is critical
that we have such a dialogue to discuss how we can deal with issues of
migration, social protection, assisting orphans and vulnerable children,
conflict prevention and management, the impact of poverty and unemployment, as
well as HIV and AIDS.
As a caring society we have to ensure that the destitute and vulnerable in
our society find refuge and comfort in the state, until they are able to
survive on their own if they are young and able-bodied.
It is therefore befitting that the central theme for this first annual
conference on the Economics of Social Protection is Towards an Integrated
Social Development Strategy, with key focus areas identified as:
* retirement reform and pensions and comprehensive healthcare
* social protection and economic growth
* social protection and poverty
* financing of social protection.
Colleagues and all our partners in development, allow me to use this
opportunity to reiterate our heartfelt gratitude on the support we received
from you during the struggle to end the nightmare of apartheid, and in
rebuilding a free and democratic South Africa. We are now working together to
fight an enemy of a different kind, the scourge of poverty, unemployment, crime
and other social ills, together.
I am happy today to be amongst you all who carry the hopes of the most
vulnerable members of our population. We are filled with hope that we can, and
will, win this war against poverty and vulnerability.
I wish you well during your stay, and fruitful deliberations. Let us
strengthen this broad front for development and toil together to build our
country.
I thank you.
Issued by: Department of Social Development
12 June 2007
Source: Department of Social Development (http://www.dsd.gov.za)
