Transcript EDD_Spatial Perspective - Home

A Spatial Perspective
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Policy Context
 Cabinet adopted the New Growth Path (NGP), a strategy promoting decent
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work and inclusive growth.
A target was set nationally to grow employment by 5 million jobs by 2020
(around 3 million more than the anticipated growth if we extrapolated from
2002 to 2009)
In order to achieve this target 5 key job drivers were determined
The NGP recognises the urgent need to address the extraordinary divergences
in terms of the spatial concentration of economic growth in South Africa
The NGP outlines the fact that creating an enabling environment for
rural employment will require the finalisation of a spatial
perspective
that sets out the opportunities available and the choices to consider
in order to lay the basis for aligning government spending,
infrastructure, housing investment and economic development
initiatives.
 The National Infrastructure Plan was adopted in February 2012 to give
effect to the NGP infrastructure driver
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NDP: Vision 2030
New Growth Path
InfraEconomic sectors:
New
structure for
Agricultural and
economies:
employmining value chains,
The green
ment and
manufacturing,
economy and
developtourism and high-level the knowledge
ment
services
economy
Infrastructure Plan
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Outcome 4:
Inclusive Growth
deliverables
Investing in
social capital:
The social
economy and
the public
sector
Other economic
sector
implementation plans
such as IPAP and IRP
Spatial
development:
Rural
development
and African
regional
development
Social dialogue
commitments:
October 2012
Accord, Skills,
Education, Local
Procurement, Green
Economy
Infrastructure
•The 1st jobs-driver is infrastructure: laying the basis for higher
growth, inclusivity and job creation
•However, the pace of infrastructure development and
spending on infrastructure is projected to fall from 9,1% of GDP
currently to 8,1% of GDP (2013)
•Blockages include weak implementation capacity in parts of
the state (with unspent monies) and poor project development
planning
•Projects are not always strategic, integrated or aligned with
national priorities
•Poor co-ordination slows projects and limits their impact
Infrastructure....
•Through the : the Presidential Infrastructure Coordinating
Commission (PICC) Government adopted an Infrastructure
Plan that is intended to transform the economic landscape,
create a significant numbers of new jobs, strengthen the
delivery of basic services
•Establish a structure at the highest level to address the
challenges through coordination, integration and
accelerated implementation
•Develop a single common Infrastructure Plan that will be
monitored and centrally driven
•Identify who is responsible and hold them to account
•Develop a 20-year planning framework beyond one
administration to avoid stop-start patterns
Infrastructure ....
•Based on this work, 18 Strategic Integrated Projects(SIPs)
have been developed and approved to support economic
development and address service delivery in the poorest
provinces.
•Each SIP comprises a large number of specific infrastructure
components and programmes.
•An Infrastructure Book has been compiled, which contains
more than 645 infrastructure projects across the country
•Infrastructure Bill developed and undergoing approval
processes.
The Infrastructure Plan Initiatives
2. Enabling socio-economic devpt
1. Catalytic
Greening the South African economy
Electricity Generation
Electricity Transmission and Distribution
Integrated Municipal Infrastructure
Integrated Urban Space and Public Transport
Agro-logistics and rural Infrastructure
Regional Integration
Unlocking Northern mineral belt
Durban-Free State-Gauteng Corridor
Development
South Eastern Node & Corridor Development
Saldanha-Northern Cape Corridor Development
3. Crosscutting
Access to communication technology,
SKA and MeerKat
National school build programme
Higher Education
Revitalisation of public hospitals
Unlocking the economic opportunities in North
West Province
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Strategic Infrastructure Projects
18 Geographic Strategic Infrastructure Projects (SIPS) identified:
•SIP 1: Unlocking the Northern Mineral Belt with Waterberg as the Catalyst
•SIP 2: Durban- Free State– Gauteng Logistics and Industrial Corridor
•SIP 3: South Eastern node & corridor development
•SIP 4: Unlocking the economic opportunities in North West Province
•SIP 5: Saldanha-Northern Cape Development Corridor
•SIP 6: Integrated Municipal Infrastructure Project
•SIP 7: Integrated Urban Space and Public Transport Programme
•SIP 8: Green Energy in support of the South African economy
•SIP 9: Electricity Generation to support socio-economic development
•SIP 10: Electricity Transmission and distribution for all
•SIP 11: Agri-logistics and rural infrastructure
•SIP 12: Revitalisation of public hospitals and other health facilities
•SIP 13: National school build programme
•SIP 14: Higher Education Infrastructure
•SIP 15: Expanding access to communication technology
•SIP 16: SKA & Meerkat
•SIP 17: Regional Integration for African cooperation and development
•SIP 18: Water
Need for a Spatial Vision
 National Development Plan indicates that there is a need
to tackle inherited spatial divisions as SA’s spatial
structure perpetuates exclusion
 Distorted growth patterns cannot be ignored as they
worsen economic and logistical inefficiencies
 Many places are not growing economically because of a
lack of infrastructure, inadequate skills, poor innovation
capacity and weak governance
 Locked-in potential of these areas could be released
through targeted investment in economic and social
infrastructure investment strategy
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Spatial Economic Development Principles
• Principles of particular significant to economic development:
- Spatial Efficiency- Productive activity and job opportunities are
optimised and burdens on business minimised. Efficient commuting
patterns and circulation of goods and services will be supported with
regulatory procedures that go impose unnecessary costs to
development
- Spatial Justice-The historic policy of confining particular groups
to limited space and the reverse of the unfair allocation of public
resources.
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Spatial Considerations
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Where would we support development in spaces, where is the potential?
We need to understand demand and supply dynamics in rural areas
spatially
How do we shape/ unlock demand potential? Where is labour relative to
demand ? Do we understand the distribution of skills across space
We need to understand spatially supply potential in relation to national
value -chains
What is the potential for clusters if we know where demand is?
How do we create better access to demand (markets)?
Can we add value to the CWP and EPWP through the use of local inputs
... where will they be sourced (local procurement)?
Where are the opportunities for productive activities in rural areas
Considerations cont...
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NGP sectors – based on labour-absorption
Where are growth sectors (economic and labour absorption)
What is the employment impact of sectors across space?
Access to factors of production (land, water, labour etc)
Comparative and competitive advantages of rural areas
Migration patterns and labour sending areas
Identify potential employment creating activities where demand is
adequate to support growth
Consider existing economic activities and what opportunities they provide
in terms of skills, infrastructure, institutions and other resources or
competencies
What is constraining growth in areas and what can be done to address
these constraints
Functional Economic Regions Project
Overview (1)
Beyond municipal boundaries and projects
 In support of the National Growth Path (NGP) and the National
Development Plan, the Economic Development Department (EDD) is
committed to grow employment by five million jobs by 2020.
 The main indicators of success will be jobs (number and quality),
economic growth (rate, labour intensity), equity (lower income
inequality and poverty) and sound environmental outcomes.
 In order to achieve the above, it is critical that:
 As a country we wisely utilise our valuable and scarce resources
and target our limited capital and capacity in such a way that it
maximises the creation of decent work opportunities;
 The State coordinates its efforts around core priorities that
contribute to sustained expansion of economic opportunities and
quality of life for its people;
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Functional Regions Project Overview (2)
To assist with the achievement of the NGP’s goal of 5 million new
jobs by providing a spatial economic understanding of:
 Where the most new jobs can be created, in the shortest span
of time, with the least new government investment/spending
 Where the same amount of government investment/spending
can create the most new jobs
 Where huge investment can create large number of jobs
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Functional Economic Regions Project
Overview (3)
Approach - Phase 1 (2013):
 International and local desktop research to inform the supra-national, national
and sub-national context
 Focus on spatial economic understanding of key job drivers, spatial priority
areas, issue based mapping, maximising impact, identifying & considering
trends, and identifying trade offs
 Develop spatial economic scenarios given existing trends, understandings &
visions and (1) explore and record their impact on the realisation of the key jobdrivers, and (2) develop a
decision-making tool to assist with determining priority areas (functional
economic regions) for State and private sector investment and spending
 USE: Interviews, bi-lateral discussions and analyses of space economy and
space economy interventions
 TO: Identify and describe categories /type of job-area-industry-people value
chains & networks, as well as Identify and explore supportive case studies
 Consultation, collaboration… on-going
 Dissemination and enhancement of perspectives and decision-making and
monitoring tool
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Rationale for the Functional economic Regions
Initiative (1)
This initiative is critical to EDDs mandate for the following key reasons:
•Development of spatial economic perspective that will essentially
underpin the SIP programme and provide the economic layer to the
National Spatial Framework
•To create space for cross-boundary planning. Allowing municipalities that
configure into functional economic regions to collectively plan catalytic
interventions
•To be provide a basis for structures such as the MINMEC, Infrastructure
Cluster and the PICC, to prioritise of high Impact infrastructure investment
across the country
•To provide a basis for EDD to proactively determine intervention areas to
ensure the impact of strategic economic interventions of the Department
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are maximised
Rationale for the Functional Economic
Regions Initiative (2)
To enable the potential basis for Provincial Economic Development
Departments to support economic planning on a regional basis with
Provinces strengthening the economic component of the PGDS
Addressing development of the former Bantustan (23 Districts) areas
within a broader economic context
Providing a spatial platform for scaling up jobs by maximising
opportunities resulting from high impact initiatives
To provide an economic context/ platform for key spatial initiatives of
government such as the SIP, IDZ and new SEZ and RIDS programme
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Proposed Regional LED Approach
Based on functional economic regions, the intention is that EDD will follow
regional approach to LED
•Coordinate actors and create a platform for partnerships i.e. Districts that
relate to a functional economic region to identify, engage on and prioritise
high impact cross-cutting interventions that affect the broader region
identified
•Implications of the main çross-boundary economic value-chains as they
relate to the functional economic regions will be examined in order to
consider opportunities to spread economic opportunities.
•Provincial Departments Economic Development can potentially drive this
coordination that will fit into the IDP cycle so that reviewed IDPs factor in
these priorities
The result will be:
• improved cross-boundary planning and projects/ initiatives supported
across municipal boundaries
•more sustainable catalytic projects that take broader market issues into
account
•more holistic approach to the development of rural areas as they relate to
their urban centres/ nodes
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Regional Economies – i.e. Regional industrial
economies, rural economies e.g. grant based, agribased, Mining based etc. , types of rural economies
and what are the typical conditions for take off and
game changes
Local and regional focus
Regional Economies i.e.
Resource critical areas
Green economy zones
Competitive growth & job centres
Regional growth & service centres
Rural restructuring
Special zones – employment
decline, vulnerability (i.e. mining)
Resource based growth regions
Competitiveness and
Regional corridors
Understanding areas in terms of spatial & temporal
trends – i.e. trends of growth & decline of economic activity
identifying special intervention areas…
Jobs & employment – spatial trends and dynamics, and
how that relate to specific job drivers – i.e. trends of growth &
decline of employment in identifying special intervention areas…
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