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National Labour and Economic Development Institute

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raoul
12 diapositives · 250 Views · Aug 02, 2014

The National Labour and Economic Development Institute (NALEDI) outlines critical insights for developing a robust industrial strategy in South Africa. With high unemployment rates (29.5%-41.5%) and a significant portion of the workforce earning below R2,500, a targeted approach is essential. This strategy emphasizes evidence-based policy-making, co-ordination across government sectors, capacity building, and the establishment of Sector Job Summits (SJSs). Addressing the challenges of inequality, investment decline, and the impact of HIV/AIDS is vital for fostering economic performance and job creation.

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  1. National Labour and Economic Development Institute Submission to the public hearings on industrial Strategy

  2. Background • High unemployment (29.5% - 41.5%) • Increasing informal and insecure jobs • >50% of employed earn <R2 500 • SA 3rd most unequal distrbtion of wealth • Rapid decline in investment to 15%.

  3. NALEDI & Industrial Strategy • Conducts policy-relevant research • Industrial Strategy research focused on assisting Labour in prep for SJSs • SJS work - capacity building & research • This input based on SJS work.

  4. Pillars of industrial strategy • Developmental industrial strategy • Economic performance • Job creation • Provision of basic wage goods • Address inequality • Democratisation, • Industrial strategy must be targeted and based on conditions within the sector.

  5. Towards a developmental Industrial Strategy • Evidence-based policy • Co-ordination • Capacity Building • Sector Job Summits • Increase domestic demand • HIV/Aids

  6. 1. Evidence-based policy • Industrial Strategy must be based on sector-specific realities • Trade deals are not always beneficial, (eg SA-EU trade deal and agriculture) • Inappropriate tariffs (eg pharmaceuticals) • De-industrialising investment (eg dairy and pharmaceuticals) • Restrictive technology transfer (eg furniture) • Undesirable technologies (eg bread) • Undesirable exports (eg food, engineering) • Devaluation as an ‘import tariff’

  7. 2. Co-ordination • Co-ordination is very important • In govt, co-ordination must be across departments (eg plastic bags) • DTI directorates must co-ordinate stakeholder interests within sectors • Role of SOEs (eg of Telkom) • Co-ordination must go beyond manufacturing sector (eg Govt policies) • SETAs and relevant skills development • Accessibility of supply-side measures.

  8. 3. Capacity Building • Institutions and stakeholders need to have capacity enhanced • Institutions such as BTT and Customs cannot effect policy instruments (eg washing machines & dumping apps) • Other stakeholders should engage in similar process to Labour.

  9. 4. Sector Job Summits • SJSs offer the ideal forum for process of engagement • Forum for consensus-seeking based on sector-relevant evidence • Wide variety of sectors identified • SJSs the beginning of a process • Other stakeholders need to be prepared, eg mandating structures • Commitment to process will lead to success (eg Spoornet and MIDP).

  10. 5. Increase domestic demand • General measures and redistributive programmes to increase demand such as a basic income grant • Targeted measures such as food stamps, infrastructure development, procurement, etc. • Integration of economic and social needs such as housing, construction, telecommunications & transport.

  11. 6. HIV/Aids • Need to asses the impact of HIV/Aids on an integrated strategy • Businesses are adjusting for HIV/Aids • Decline in demand (eg furniture) • Redirection of production (eg food) • Capital intensive production (eg mining).

  12. Towards a developmental Industrial Strategy • Evidence-based policy • Co-ordination • Capacity Building • Sector Job Summits • Increase domestic demand • HIV/Aids