NATIONAL SPATIAL DEVELOPMENT INITIATIVE The Presidency, RSA Policy Coordination Advisory Services

1. NATIONAL SPATIAL DEVELOPMENT INITIATIVEThe Presidency, RSAPolicy Coordination & Advisory Services

2. 2 Contents Approach Objectives & principles of the NSDP � spatial perspective Explaining spatial inequality Studies/Literature Description of spatial inequalities SA�s space economy Findings & Conclusions Maps

3. 3 Approach NSDP prepared by the Presidency�s Policy Unit and endorsed by Cabinet to inform policy co-ordination � numerous studies were undertaken Annual reports of Government agencies on the NSDP (comments on how their strategies are informed by the NSDP principles, and their comments on the spatial narrative and maps) Dialogue between spheres, and between departments and institutions within spheres informed by PGDS and IDPs to ensure a top-down bottom-up process of planning for development

4. 4 Strength of spatial perspective� �..the spatial reorganization of a country can induce the release of tremendous physical and mental energies whose practical outcome is certain to give rise to the socio-economic transformation necessary to launch a country on to a path of self-centered, self-reliant and self-sustaining development�. Akin L Mabogunje

5. 5 Strength of spatial perspective� National spatial guidelines: Geographic dimension to growth, employment and poverty � policy impact. Facilitate decisive, coordinated interventions to improve the state's capacity to spend and deliver services. Puts forward mechanisms aimed at ensuring better alignment i.t.o infrastructure investment and development spending. Facilitates dialogue and exchange of information and understanding - impacts of policies given different social, economic, spatial, demographic and environmental contexts; Promotes compatibility of policies with common objectives of government; Makes the connections between various policies and actions more transparent;

6. 6 NSDP: Confronts two key questions: To address poverty and the challenge of economic growth and job creation, where should government direct its investment and development initiatives to ensure sustainable and maximum impact? what kinds of spatial forms and arrangements are more conducive to the achievement of our objectives of democratic nation building and social and economic inclusion?

7. 7 NSDP: Seeks to focus Government�s fixed investment in areas with potential for sustainable development Suggests that Government�s objectives of promoting growth & alleviating poverty will best be accomplished in areas with potential

8. 8 NSDP: Recommends that in areas with limited potential Government, over & above other initiatives/ programmes, should focus on social investment (HRD, labour market info and social transfers) to give people more sustainable opportunities

9. 9 Spatial Inequality Most countries have extreme spatial inequalities � 50% of US GGP produced in 2% of space Convergence between developed and undeveloped regions takes a long time � it took the Southern US states 100 years to reach a similar level of economic development as the North Regions and countries with unequal spatial economies converge at about 2% a year (if at all)

10. 10 Studies show that: Unfocused infrastructure spending doesn�t improve GDP growth Unfocused human resource development doesn�t improve GDP growth

11. 11 Studies show that: regions which already have some economic success are more likely to grow than other regions � this is because individuals, firms, industries and regions LEARN successful learning occurs when institutions and incentives work and these institutions are locality specific

12. 12 Categories of Development Potential Innovation and experimentation Production: High value, differentiated goods Production: Labour-intensive, mass produced goods Public services and administration Retail and Services Tourism

13. 13 SA�s space economy The highest volume of poverty occurs in the main metros and some rural areas Natural resources under increasing pressure from projected development paths Efficiency and equity supported by spending Urban �insiders� versus rural �outsiders� Migration and demographic changes will accentuate current differences

14. 14 Key findings & conclusions Economic potential and poverty are mainly found in the same localities Different forms of potential are in different places Areas identified by NSDP only involve 20% of magisterial districts but account for 92% of GGP, 81% of all households and 75% of the poor in South Africa Focusing on people not places therefore addresses Government�s primary objectives of poverty alleviation and promoting sustainable economic growth

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