Trade and Industry Minister Rob Davies says in responding to the global economic crises, governments should at all times strive to avoid the risk of unfairly placing the burden of the downturn on the poor and vulnerable who did nothing to cause the crisis in the first place. He was speaking at the 13th General Conference of the United Nations Industrial Development (UNIDO), held today in Vienna.
Minister Davies said it is imperative that essential counter cyclical stimulus packages put in place by developed countries should avoid the temptation of supporting industrial activities in the developed world at the expense of those located in the developing world.
"Rather, the focus should be on co-ordinated programmes aimed at strengthening capacity of both the developed and developing countries to continue to develop industrial capacity and create decent jobs," Davies said.
Davies added that governments need also to intervene to arrest the declining demand through adopting appropriate macroeconomic and monetary policies capable of supporting firms to avoid or minimise massive job losses.
"Governments should also assist firms to improve their productive capacity and competitiveness to assist them to access global markets and therefore maintain their manufacturing capabilities," he said.
Minister Davies told the gathering that South Africa will soon be adopting the Industrial Policy Action Plan. This will focus on stimulating industrial activities capable of producing inputs to support infrastructure programmes, energy savings, green jobs and agro industries.
According to him, the country will also take forward programmes in the automotives sector, clothing and textiles and chemicals amongst others. Davies further said while the country pursues its own national programme, government is also conscious of the need to support initiatives at the regional and continental level.
"In this regard, we are working to build industrial standards and norms including institutions to enforce these standards, build industrial innovation systems, invest in energy security especially renewable energy, and build responsive human capital development systems in our region and across the continent. Our efforts in these areas are at an initial stage, but with the help of our development partners, we are beginning to see some signs of progress," he added.
He concluded that South Africa hopes that the 13th General Conference will lead to a strengthening of UNIDO as a critical agency for the promotion of industrial development in general and of greener industrial development in particular. South Africa looks forward to continued fruitful partnership with UNIDO and pledges its support for all UNIDO's efforts, particularly those on our own continent.
For further information contact:
Sidwell Medupe
Director: Media Relations and Publicity
Tel: 073 522 6801
E-mail: MSMedupe@thedti.gov.za
Lillian Mofokeng
Chief Director
Cell: 082 888 8362
E-mail: lmofokeng@thedti.gov.za
Issued by: Department of Trade and Industry
7 December 2009
Source: Department of Trade and Industry (http://www.dti.gov.za)
