The National Planning Commission (NPC) held its fourth ordinary plenary session for the year in Pretoria, on 8 July 2016.
The NPC is up and running and the various Work Streams of the Commission have started their work. Each work stream has a substantial body of work to undertake, with a view to enable the Commission to formulate its views and positions on a range of matters, and accordingly to advise government and other actors and stakeholders with regard to the implementation of the National Development Plan (NDP).
The agenda of this meeting included inputs by Statistics South Africa on the recently published reports on the Community Survey and the Social Profile of Youth; by the Johannesburg Stock Exchange on the transformation of the JSE and its relevance to the NDP, by the Parliamentary Budget Office (PBO) and National Treasury on the alignment of government programmes and the national budget to the priorities of the NDP.
The agenda also included the reports by the various Work Streams and Task Teams into which the NPC has organized its work, covering topics such as reducing the cost of living for households side by side with reducing the cost of doing business; enhancing the quality of life of citizens; transforming and growing the economy in an inclusive manner, with specific focus on township and rural economies; addressing youth unemployment; promoting active citizenry; improving governance in public institutions and building the capacity of the state.
The Commission noted that its meeting occurs as the economy’s performance continues to deteriorate, with GDP growth declining and unemployment rising. Recent figures show that GDP shrank at an annualized rate of 1.2 per cent in the first quarter of 2016, following a dismal growth of 0.4 per cent in the fourth quarter of 2015. The unemployment rate increased to 26.7 per cent in the three months to March 2016, from 24.5 per cent in the previous quarter and above market expectations of 25.3 percent. It is noted with concern, based on the input by JSE, that there was an unsustainable preference by households for consumption and shelter compared to spending on education. Also, long-term planning and wealth creation have become a lesser priority.
The Commission also noted with concern the International Monetary Fund’s latest forecast released last week in which the Fund has revised the South African economy’s expected growth in 2016 down to just 0.1 percent, from 0.6 percent in April
These figures illustrate the depth of the economic and unemployment challenges the country faces, and underscores the urgency to identify and act on required interventions to restore the economy to a sustainable job-creation and growth path.
The inputs by StatsSA, JSE and PBO resonate with some of the themes of the NDP, and with the issues the NPC is focusing on, specifically economic growth, transformation and inclusion, with particular emphasis on employment and youth. Together with the presentation by National Treasury, these inputs represent the interactions and partnerships that will characterize the work of the Commission going forward, which will involve drawing from the work of different players in society on the themes and issues that the NPC is addressing, with a view to identify synergies and avoid duplication. This will also enable the Commission to ground its work and advice on evidence and up-to-date information.
The Commission resolved that it will engage further in detail with these presentations as inputs into its work, and intends to undertake similar engagements with other relevant role-players on aspects of its work.
As regards the reports of the various Work Streams and Task Teams, the meeting noted the progress that is being made in each area. The Commission was encouraged by the information-sharing and networks that were developing between its processes and government departments as its work unfolds. It sees this as helping to clarify how the NPC’s work interfaces in a mutually reinforcing manner with the work being done in government, while ensuring that the independence of the Commission is maintained. A good example is the recently completed work by the Department of Social Development on the review of social welfare policy, which drew from expertise in the NPC, and which the Cabinet has since approved.
The Commission resolved to expedite its work going forward, so that it has well-considered and clear positions on the topics it is addressing, and intends to ensure these are appropriately considered in the planning and budget priority-setting processes that will soon ensue in government.
In this context, the Commission further resolved to step up its communication efforts and enhance public engagements. It plans to roll-out a number of public engagements in September 2016, having regard to this being the anniversary month of the adoption of the NDP by Parliament.
Enquiries:
Mr Tshediso Matona
Secretary of National Planning Commission
Mobile: 082 376 0448
Email: Tshediso@dpme.gov.za
