on economic opportunities for youth in 2010
15 June 2007
Salutations
Programme Director, I am deeply humbled and honoured to have been invited to
this occasion especially considering that this is month on which we commemorate
the selflessness of the youths of 1976 who consciously chose to forgo their
youth in exchange for the liberation of this country and the freedom that we so
much enjoy today. Thirty one years down the line though, it is contrasting that
the profile of young people includes amongst others:
* high unemployment rates
* low levels of education and skills
* high HIV and AIDS incidence.
As we celebrate the youth month and commemorate Youth Day, we need to
reflect on the issues that affect our youth with the view of assessing progress
made and challenges that we still face. This calls on all of us to make sure
that the freedom that the youth selflessly fought and died for, translates to
economic benefits and opportunities.
As former President Nelson Mandela said at the inception of the National
Youth Commission (NYC) in 1994, "Youth are the valued possessions of the
nation. Without them there can be no future. There needs are immense and
urgent. They are at the heart of reconstruction and development."
Interestingly, the aspect of dealing with youth has now become an arena of
contested debate, academically, socially and economically. This in my view
should never be the case. We should rather be looking at and emphasising areas
of convergence amongst these three arenas and therefore coming up with youth
development programmes that can be sustained beyond 2010. The question of
fiscal planning therefore becomes central in the context of economic literacy
and transformation in our province.
Youth development programmes cannot be confined to geographical boundaries
but should ideally be viewed in a global context, taking into consideration the
interdependencies of youth development programmes and projects within our
country. Therefore, contextualising this within the era of globalisation, the
characteristics of youth are regarded as both an advantage and
disadvantage.
The advantages being that in a fast changing world, young people are more
able to make use of new developments especially with regards to technology and
creative thinking, if given the necessary space and recognition. The
disadvantage, generally quoted, is the extent to which they are vulnerable to
the increasing homogenisation of global culture especially consumerism and the
implications for developing a sense of identity and community.
However, we cannot run away from the reality that the youth are and
represent the future. This assertion derives out of the context of discussions
about the continuation of tradition, culture and values and general complaints
by older generations about the loss of these by the younger generations. The
challenge that we have therefore, instead of lambasting the youth in terms of
the above issues, is the role that we should ideally be playing as their
predecessors and foundation in respect of the above issues. It should therefore
be acknowledged that interventions in one generation will bring benefits to
successive generations.
Finally, in the context of the youth development movement issues of
empowerment and integrated approaches seeing young people as holistic beings
and not merely as problems have become yet another way of looking at youth.
These varied approaches, with each contributing a different dimension to the
picture of youth, are all relevant to the current debate on youth policy in
South Africa and in the Free State specifically. In view of this, what remains
critical is how do we as a province, make sure that all developments for 2010,
economic and otherwise are not limited to the few who already benefit from
related contracts but translate to effective youth development in the three
arenas alluded to earlier.
It is imperative therefore that as a government, we should come up with
public policies that deliberately promote and entrench youth development as a
cornerstone of economic progression.
Key issues
The following issues are key to the development of such a policy:
* Firstly, from equity and a human rights perspective given that young
people demographically constitutes significant sections of their populations,
their issues should be on the public policy agenda.
* Secondly, youth is crucial to any national developmental agenda. Though
there were concerns during the 1980s about the impact of the 'youth bulge' on a
range of public policy issues such as employment, crime, social security and
housing, increasingly as developed countries are confronting slowing population
growth, the advantages of having a young population are gaining prominence.
Should we be playing oblivious to these realities as a province?
* Thirdly, youth development measures are seen as crucial to poverty
eradication. Unless elevated to the necessary status in public and development
arena, we will be growing generation of dependants on social security
grants.
Policy, in South Africa young people make up a significant proportion of the
population of developing countries, as such they require a significant
proportion of national anti-poverty investment on grounds of equity alone.
* Finally, 'young people without a stake in the system are more likely to
become alienated and to engage in anti social behaviour'. A number of reports
have highlighted the links between social exclusion (as a result of poverty,
dropping out of school and unemployment) and anti social behaviour. This is
especially true considering that this highlights lack of opportunities for
young people and there is therefore a feeling and reality of exclusion as
contributing towards youth marginalisation.
These issues can never be better emphasised than to reiterate what President
Mandela said when he said, "Youth are the valued possessions of the nation.
Without them there can be no future. There needs are immense and urgent. They
are at the heart of reconstruction and development."
The situation of young people in 2007
In order to therefore accelerate issues mentioned above, the following
guiding documentation becomes paramount for the development of an effective,
implementable Public Policy on Youth Development:
a) the first National Youth Policy (1997)
b) the Reconstruction and Development Programme
c) Accelerated and Shared Growth Initiative for South Africa (AsgiSA) and Joint
Initiative on Priority Skills Acquisition (JIPSA) as cornerstones or economic
development
d) the Growth, Employment and Redistribution (GEAR) Policy as a cornerstone of
economic normalisation
e) the 2003 Status of Youth Report
f) the policies of redress and affirmative action
g) the adoption of a National Youth Policy and an institutional framework for
youth development in the form of the national youth machinery.
In his speech to National Assembly on the State of the Nation address
(SONA), on 9 February 2007, President Mbeki further articulated these
challenges when he said, "None of the great social problems we have to solve is
capable of resolution outside the context of creating jobs and the alleviation
and eradication of poverty, therefore the struggle to eradicate poverty has
been and will continue to be a central part of the national effort to build the
new South Africa."
This is true for youth development challenges that we face as a
government.
Free State specific issues
Turning back to the Free State and 2010 World Cup, the economic growth in
this province is linked to and will significantly derive out of development and
empowerment of young people. It is estimated that the 2010 World Cup will
inject more than R50 billion into the South African economy. We have taken a
decision as government to ensure that young people are properly empowered with
skills so that they are able to benefit from the economic spin offs generated
by the tournament.
There was a great deal of discussion on the issue of stimulating economic
growth in various district municipalities. Small, medium and micro enterprises
(SMMEs) and co-operatives are set to benefit from the upgrading of stadiums and
construction of multi-purpose sports facilities.
We have always reiterated as provincial government our commitment to
supporting youth-owned SMMEs and co-operatives. I challenge you today to
consider what role you can play to make sure that at least 500 000 job
opportunities are created during 2010 Soccer World Cup.
This is necessary if we have to address youth development in the areas of
information technology (IT) and information communication and technology (ICT),
tourism, entrepreneurship and many other related industries!
In order to effective address these challenges the following issues have to
gain prominence in all strategies and policies that we aim to develop:
Youth profile of the Free State (1996 and 2001) reflected the following
about the situation of the youth in the Free State:
* The Free State has a significantly larger percentage of African youths in
comparison with the national percentages. In the Free State the African youths
made up 86,7% of the youth population in 1996 and 90% in 2001. For South Africa
the respective figures were 78,8% in 1996 and 79% in 2001.
* Added to the above trends and conclusion it should also be noted that the
proportion of the Free State African youths has increased between 1996 and 2001
(from 86,7% to 90,5%). This increase is also higher than the proportional
increase in the African youth population for South Africa and confirms the
earlier conclusion on the extreme and growing youth problem in the Free
State.
There is also a considerable decline in the population figures for the Free
State White youth population, from 109 075 in 1996 to 78 356 in 2001. The above
lower youth population growth rates in the Free State compared with the
national figures between 1996 and 2001, as well as the considerable decline in
the White youth population are perhaps an indication of:
* the Free State youth not finding economic opportunities in the Free State
and leaving the Free State in search of such opportunities (it seems especially
true for the white youths but also for black youths).
Another study conducted by the Free State Youth Commission, "A profile of
perceptions and behaviour of youth in the Free State (1994)" reflected the
following overall findings:
Although the majority of the unemployed youth are still hopeful that they
will find a job, a close up view shows that for a large proportion their
chances of finding employment are seriously strained by a lack of basic
employment skills and poor qualifications. This is of particular concern
amongst black youths older than 20 years, where almost one out of every two did
not complete their secondary school training. To a certain extent this group is
doomed to continued unemployment or unskilled (low income), employment
scenarios that are not contributing to endeavours to increase the quality of
life and enhance sustainable human development. Clearly this is an area that
calls for intervention, starting with the cultivation of a culture of
education.
Our policies need therefore to make sure that we create a youth generation
that focuses on job creation through various initiatives and assistance
provided by various State owned entities rather than a "youth that depends on
employment elsewhere to prosper".
One of the key issues that we need to address is therefore how do we make
sure that of the balance of the r538 million that has been allocated to the
Free State for the 2010 Soccer World Cup, how much of it is deliberately
channelled towards youth enterprises?
We need not shy away from making such determination, for failure to do so
will continue to condemn our youth to the periphery of economic activity and
benefit.
WE also need to make sure that of all the other nationally available funds,
especially in ICT development and tourism industry, we can deliberately
encourage our youth to participate and also support them to sustain their
participation beyond 2010.
A key factor, therefore, is to make sure that we can make the Free State one
of the tourism destinations of choice for the visitors, we have the perfect
whether for this!
A fact that will not change is that some soccer world cup matches will take
place in the province attracting an estimated more than 50 000 soccer fans from
all over the world. There are endless opportunities for young people in the
following areas:
* Food and beverages: major KwaZulu-Natal based food and beverages producers
have agricultural resources to draw within the province and have been able to
access the international markets. During 2006 Soccer World Cup in Germany, 10
600 litres of beer were sold in the 12 stadiums. 5 500 000 drinks in returnable
cups were also sold.
As we deal with issues of economic transformation, we should therefore start
thinking of how we can deliberately promote partnerships between established
enterprises and our youth development endeavours without compromising business
autonomy.
* Tourism: tourism is a R3,3 billion plus industry in KwaZulu-Natal.
We should therefore take advantage of the fact that all government
departments are providing wide ranging programmes aimed at ensuring an
effective participation of young people in the economy of before and even after
the world cup.
These could involve:
* partnerships with various stakeholders such as Umsobomvu Youth Fund (UYF),
national and provincial youth commissions;
* creating and attracting possible market and business opportunities for young
entrepreneurs;
* exposing youth entrepreneurs to economic opportunities through various SMMEs
fair, conferences and exhibitions;
* the staging of district information sessions as part of the National Youth
Entrepreneurship Campaign 2010.
In staging such events we've always ensured that government officials
involved in supply chain management are available to share information with
young entrepreneurs on how to access businesses in government.
All provincial departments have also established supply chain management
units and are now better placed to actively promote the provincial government's
economic development policies.
Provincial government has a direct influence over 63 percent or R7,5 billion
procurement budget. We have ensured that our procurement prescripts and
strategies are designed in such a way that we are able to spend more
aggressively to drive youth empowerment programmes and Black Economic
Empowerment (BEE).
We will only be able to say that efforts of inculcating the culture of
entrepreneurship are bearing fruits if more and more emerging entrepreneurs
exhibit their products and services during events such as Tourism Indaba,
International Trade and Investment Conference and Exhibitions. These events
have attracted the attention of international and national delegates and are
excellent marketing platforms for young entrepreneurs.
Skills revolution
Our effective participation in the global economy as the province is
dependent on how the four following things interact, information technology,
knowledge production, human resources and institutions.
Because it is increasingly becoming clear that knowledge production has
become central to globalisation and to economic development, on 22 May 2007,
role players from the private sector, national, provincial and local
governments gathered in Durban for the Skills Revolution Indaba. This formed
part of our continuous assessment of our institutions and the education
system.
As government we are of the view that it is incumbent upon us to put in
place an education plan that is pro-globalisation. Globalisation is redefining
the skills and knowledge that students and workers need. Companies are
following talent whether that talent is here in South Africa or any other
country.
The Draft National Plan for Higher Education released by the Department of
Education in 2001 revealed a shortage of high-level professional and managerial
skilled personnel in the country. The plan predicted the growth rate for
professional and managerial occupations of 9,5% and 6,2% between 1998 and 2003.
The growth rate for artisan occupation was expected to be 3,9% and unskilled
and semi skilled work was expected to decline by 3,4%.
The big question is, 'have we produced enough graduates in economic based
field, science and engineering to compete in the global market place?' The
demand for skilled young people especially in above fields is expected to grow
sharply as we approach 2010.
The average age of an artisan today in South Africa is about 54, compared to
about 26 in the 1980s. Projects linked to the Soccer World Cup more especially
infrastructure development present many opportunities for young people. Already
the Engineering Council of South Africa has indicated that the country needs to
produce 2 500 engineers annually in order to meet the demand.
Subsequently, skills development has a key role to play in the economic
empowerment of our youth. Failure in the skills development front of economic
empowerment will constrain progress on all the other fronts and render gains
made on them untenable and unsustainable in the longer term.
From the point of view of entrepreneurship and small business development,
the skills shortage in the trades and artisanal spheres might pose an even
bigger problem than skills shortage in the high skill professional sector. We
now have about half the number of artisans we had in the late 1980s, although
the economy is much bigger now than it then was.
Conclusion
In the area of sector strategies we reported on progress in the three
sectors identified initially by AsgiSA as sectors that deserved high priority
attention.
These sectors were:
* business process outsourcing
* tourism
* biofuels.
Stakeholders agreed that these sectors all had high growth and job creation
potential and that government could improve their prospects by removing
unnecessary obstacles or adding carefully targeted support mechanisms. It was
not the first time the government tried sector support programmes, but
previously they had proliferated and been driven by their own departments.
AsgiSA would attempt to ensure that department's co-ordinate effectively.
Our youth development policies should therefore not seek to create
millionaires without the necessary business acumen, professionals without
ethical grounding and a future generation without a future.
We should seek to create a balance between individual growth, societal
stability and developmental progress, it is only in taking a bold step to
integrate these there issues as well as the three arenas mentioned earlier that
we will create a future generation that will sustain the future of the province
and South Africa.
I thank you!
Issued by: Department of Finance, Free State Provincial Government
15 June 2007
Source: Free State Provincial Government (http://www.fs.gov.za/)
