Presidency on development indicators mid-term review

Statement on the release of the "Development Indicators
Mid-term Review"

21 June 2007

The release, for the first time, of a set of development indicators by
government, reflects progress in establishing a government-wide monitoring and
evaluation system. The publication is available on Government Online (https://www.gov.za).

This set of key development indicators provides pointers to the evolution of
our society up to the middle of this government's term, two-and-half years
after the April 2004 elections. In addition to promoting effective planning and
implementation, the publication of the indicators is intended as a contribution
to public discourse on the progress South Africa is making towards the ideals
inscribed in the Constitution.

Government is building its ability to monitor and evaluate the
implementation of its programmes because it is essential to effective
governance and facilitates democratic accountability:

* Objective, evidence-based measurement of the implementation of policy and
its impact on social-economic conditions is the lifeblood of sound and
efficient planning and implementation.

* To add value both to government work and to the broader process of social
transformation, the choice of indicators is informed by the ideals in our
Constitution: to improve the quality of life of all South Africans and ensure
that South Africa contributes to the creation of a better Africa and a better
world.

* Regular updating of the indicators will both track progress and help hold
government accountable in the fulfilment of its mandate

Publication of the indicators is a contribution to public discourse about
evolution of our society:

* Government believes that this information will help enrich public
discourse on who we are and where we are going as a nation.

* We hope that South Africans will examine the data against the backdrop of
their lived experience and research work done independently of government;
contributing to a national consensus on how we should measure the progress we
are making towards a better life for all.

The set of 72 indicators has been developed according to international good
practice adapted to South African conditions:

* The data was compiled by the Policy Co-ordination and Advisory Services
(PCAS) in The Presidency, working with Clusters and Departments, using official
statistics and research by other local and international institutions.

* Based in part on the human development indicators used in the Ten Year
Review, they are objective markers helping define milestones of social change.
Many more indicators could have been used – this is a start and the set may
expand over time.

The indicators map out in detail a broad picture of overall progress
together with some big challenges:

* The indicators are grouped under ten broad themes, set out with highlights
in the annexure below.

Annexure to statement on release of "Development Indicators Mid-Term
Review", 21 June 2007

Categories of development indicators with some highlights

The 72 development indicators are grouped under ten broad themes, listed
below with highlights.

Economic growth and transformation

* The economy has been growing continuous for eight years – faster than the
country's population - and we are likely to meet the Accelerated and Shared
Growth Initiative for South Africa (AsgiSA) targets.
* Capital investment is increasing, and is creating a platform for future
growth. Our target is 25% of Gross Domestic Product (GDP) and we are now at 19%
compared to 15% in 2000.
* Black participation in the economy has improved, but it is still far from
optimal.

Employment trends

* In the two years to September 2006 over a million new jobs were
created.
* Both broad and narrow definitions of unemployment have come down since 2003 –
if the pace is sustained we should meet the target of halving unemployment by
2014 from what it was in 2004.

Poverty and inequality

* Poverty has been reduced, especially after 2000.
– In real terms, the income of the poorest has improved.
– The number of people in Living Standards Measures (LSMs) 1 to 3 has decreased
and those in higher LSMs have increased.
– Percentage of population living under R3 000 per annum (constant Rand for the
year 2000) decreased from 50% to 43%.
– Nearly 12 million people now receive social grants.
* However the rate of income increase for the poor has not matched that of the
better off, so income inequality has not decreased.
* Different measures of life expectancy show it to have been falling since
2000, seemingly linked to HIV and AIDS.

Household and community assets

* Since 1994, 2,3 million subsidised houses have been completed or are in
progress. The number of households has increased even more due to population
growth and a shift to smaller households.
* 85% of households have access to water at the RDP standard or above compared
with 61% in 1994.
* 71% of households have access to sanitation; was 50% in 1994.
* 80% of households have access to electricity; 4,2 million households have
received electricity connections since 1994.
* The completion of over 73,000 land restitution claims brings that process
near completion. Progress in land redistribution has been slow.

Health

* Among under-fives there is less malnutrition and immunisation has reached
90%.
* Trends in infant and child mortality are unclear – Medical Research Council
(MRC) and Health Systems Trust data point to an increase whilst Statistics
South Africa and the Actuarial Society of South Africa (ASSA) show a
decrease.
* The increase in HIV prevalence has slowed down after its rapid growth in the
1990s.
* There has been a rapid increase in TB Cases since 2001.

Education

* Since the 1990s the overall balance of boys and girls amongst the 12,3
million school learners has approached parity.
* The matric pass rate has increased to a higher level since 2000. Though the
number of matriculants with higher grade maths passes has increased since 2001,
it is still low.
* Adult literacy has increased between 1995 and 2005.

Social cohesion

* Membership of voluntary civil society organisations is relatively high
compared with similar countries.
* Voter participation has been relatively high, though slightly declining, in
the three national elections since 1994. Turnout in local elections has, in
line with international trends, been lower than national turnout.
* The percentage of women in the national and provincial legislatures increased
from 25,4 per cent in 1994 to 32,5 per cent in 2004.
* Confidence in the country's future is buoyant. Though subject to electoral
cycles, the current trend is above that of previous cycles. Pride in being
South African has been at a particularly high level since 2004.
* The proportion of people who think race relations are improving was around
60% in 2006 – compared with around 40% in 2000.

Crime

* Although it is still at a high level, the incidence of crime is generally
decreasing.
* Trends in contact crime – interpersonal violence – have been slowly
decreasing, in some instances marginally and others more substantially, but are
still cause for concern.
* Case backlog in the courts has been increasing – in response there has been
greater emphasis on diversion.
* The prison population, after being reduced by remission programme in 2005, is
growing again.
* Despite increasing numbers of cars, the accident rate is slowly coming down.
New research shows that most accidents are alcohol-related.

International relations

* Africa's economic performance has been improving since 2002, at over five
per cent a year since 2005.
* Tourism has grown rapidly since 1994 and continues to do so, with a 14,5
percent increase in arrivals in 2006 compared with 2005. It has had a
significant impact on employment creation.
* Reflecting our growing relations with other countries some 25 new SA missions
have been established since 2001. 42 out of 118 missions are in Africa.

Good Governance

* Our tax administration system has become much more effective and the
number of tax payers has more than doubled since 1996.
* Whilst the number of qualified audits of national departments has increased,
they have become less frequent in provincial and municipal government.
* Whilst Transparency International finds perceptions of corruption in South
Africa increasing, the World Bank finds that South Africa compares well with
other countries in private firms' perceptions of corruption in their dealing
with public institutions.
* South Africa is ranked amongst the top six countries with regard to the
openness and transparency of budgetary processes.

Enquiries: Joel Netshitenzhe
Cell: 082 900 0083
Issued by: Government Communications (GCIS) on behalf of The Presidency
21 June 2007

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