Trevor Manuel’s Medium Term Strategic Framework - full text

[Hennie]

Notes for background briefing on the Medium Term Strategic Framework
(MTSF), 2009 to 2014 by Mr T Manuel, Minister in The Presidency:
National Planning
14 July 2009
The Medium Term Strategic Framework (MTSF) for the period 2009 to 2014
was approved by Cabinet on 1 July 2009.

The MTSF, under the theme, ‘Together doing more and better’, is
informed by the 2009 national electoral mandate and outlines the
government’s medium-term strategy to meet this mandate. It serves as
the foremost frame of reference outlining the government’s policy
posture and programme to improve the conditions of life of South
Africans over the next five years. The MTSF identifies the development
challenges facing South Africa and defines the priorities over the
next five years.
Where does the MTSF fit into the nascent planning system of
government?

As a statement of intent, the MTSF will serve as the principal guide
to planning and resource allocation across all spheres of government.
In this regard, focus areas and targets highlighted in the MTSF will
inform the core elements of the budgetary submissions that national
departments make to the government’s budgeting process, through the
Medium Term Expenditure Committee.

Similarly, Integrated Development Plans of municipalities and the
Provincial Growth and Development Strategies of provinces will need to
take into account the priorities identified in the MTSF, thus bringing
us closer to the ideal of integrated and aligned planning across the
three spheres of government. The MTSF is reviewed on an annual basis
at the July extended Cabinet meeting in the light of changes in the
domestic and international environment and experience in actual
implementation.

While the MTSF reflects medium-term objectives, the seven clusters of
government are finalising their contribution into a detailed Programme
of Action, translating MTSF imperatives into a six-month government
action plan, leading up to the adoption of a Programme of Action for
2010 and the January Cabinet Lekgotla.

The Ministry of Planning in The Presidency is developing a Green Paper
on national strategic planning which will define systems, processes
and structures pertaining to national planning. Among others, it is
envisaged that, during the course of the coming year, in interaction
with social partners and the public at large, a long-term vision and
development plan for the country will be elaborated, outlining the
country’s broad objectives and targets for some 15 to 20 years.

What then are the strategic priorities of government for the mandate
period (2009 to 2014)?

To give effect to the strategic objectives spelled out in the
electoral mandate, ten priority areas have been identified in the
MTSF. These were articulated in broad terms in the President’s State
of the Nation Address on 3 June 2009; and they are:

1. Ensuring more inclusive economic growth, decent work and
sustainable livelihoods: The main objective with regard to this
priority is to respond appropriately, promptly and effectively so that
growth in decent employment and improvements in income security are
reinforced, and investment sustained to build up national economic
capability and improve industrial competitiveness. This has to be
conducted in an environment of a stable macro-economy which provides
conditions for higher rates of investment and creation of decent jobs.

2. Economic and social infrastructure: In the period ahead government
will continue with the infrastructure investment programme aimed at
expanding and improving social and economic infrastructure to increase
access, quality and reliability of public services and to support
economic activities while also considering environmental
sustainability and pursuing maximum employment impact. The aim is to
ensure sustained investment growth over the medium-term so as to
achieve the target of a fixed investment ratio above 25% of gross
domestic product (GDP) by 2014. Such projects will be spatially-
referenced, planned for and implemented in an integrated manner. In
addition, we will continue with programmes to provide and maintain
health, education, library, sporting, recreation and other social
infrastructure.

3. Rural development, food security and land reform: Between 10 and 15
million South Africans live in areas that are characterised by extreme
poverty and underdevelopment. Recognising the diversity of our rural
areas, the overall objective is to develop and implement a
comprehensive strategy of rural development that will be aimed at
improving the quality of life of rural households, enhancing the
country’s food security through a broader base of agricultural
production, and exploiting the varied economic potential that each
region of the country enjoys.

4. Access to quality education: Education has enjoyed the largest
share of the national budget throughout the past 15 years. This
significant investment in building human capital and capabilities has
gradually improved the country’s human resource and skills base.
However, progress has not been optimal and the achievements have not
taken place at the required scale. Our objective is thus to focus our
skills and education system towards the delivery of quality outcomes.
The focus will be on, amongst others, learner outcomes, early
childhood development (ECD), improving schools management and M&E
systems and supporting and developing a high quality teaching
profession.

5. Improved healthcare: In the current MTSF period we aim to transform
the public health system so as to reduce inequalities in the health
system, improve quality of care and public facilities, boost human
resources and step up the fight against HIV and AIDS, TB and other
communicable diseases as well as lifestyle and other causes of ill-
health and mortality. Elements of our strategy include the phasing in
of a National Health Insurance system over the next five years and
increasing institutional capacities to deliver health-system functions
and initiate major structural reforms to improve the management of
health services at all levels of healthcare delivery, including
particularly hospitals.

6. Fighting crime and corruption: Government is determined to curb
levels of crime and corruption. Contact crimes, crimes against women
and children and organised crime remain a key focus, and so is the
combating of corruption. Key to our success would be of the
comprehensive revamp of the criminal justice system (CJS), including
the strengthening of accountability systems and enhancement of citizen
involvement and community mobilisation in the fight against crime.

7. Cohesive and sustainable communities: Social cohesion is important
if we are to achieve developmental success. However, inequalities of
condition and opportunity and weaknesses with regard to a sense of
being part of a common enterprise, is placing severe stress and strain
on social cohesion. In this MTSF period, we aim to meet our target of
halving poverty and unemployment by 2014 and, in conjunction with
other priorities, to strengthen human capabilities, promote shared
values and social solidarity and strive to reduce overall inequality.

8. Creation of a better Africa and a better world: Over the medium
term, the main goal with respect to this priority is to ensure that
our foreign relations contribute to the creation of an environment
conducive to economic growth and development domestically, within
Africa and in other developing countries. Implementing New Partnership
for Africa’s Development (Nepad), promoting Southern African
Development of Community (SADC) regional integration, strengthening
South-South relations and pursuing a developmental and investment-
orientated approach to engagements with the North, are key aspects
related to this priority.

9. Sustainable resource management and use: Like the rest of the
world, we are vulnerable to the impacts of climate change,
biodiversity loss and diminishing water resources. Interventions will
include, amongst others, diversification of the energy mix in pursuit
of renewable energy alternatives and the promotion of energy
efficiency, enforcing a zero tolerance approach to illegal and
unsustainable exploitation of resources, supporting local and
sustainable food production, and promoting sustainable water use and
preserving the quality of drinking water.

10. A developmental state including improvement of public services: In
the previous mandate period, government committed itself to improving
the capacity of the state for growth and development. This remains a
priority. Whilst progress has been made, we continue to face
significant challenges in transforming the system of governance.
Challenges include capacity gaps in local government; poor quality of
some of our public services; declining trust and confidence in public
institutions such as the judiciary, legislatures and the executive
branch of government; and weak planning capacity across the three
spheres of government. As we strive to overcome these hurdles, our
long term goal remains the building of an effective and accountable
state as well as fostering active citizenship.

The above priorities, initiatives and programmes are spelt out in more
detail in the main document to be published on our website. The MTSF
recognises that we enter the fourth term of the democratic government
in an environment of a global economic crisis affecting every region
of the world. This is likely to have a huge dampening effect on
economic growth in our own country at least up to 2010, with the
concomitant negative implications for investment, employment, incomes
and government revenue. There is a danger that the burden of the
crisis may be placed on the shoulders of the poor, deepening poverty
and inequality.

Consequently the MTSF emphasises the centrality of a growth path which
addresses the economy’s structural constraints, expands the industrial
base and creates decent work opportunities on a larger scale.
Critically, investment in quality education for all young people and
in skills development forms the bedrock of the government’s approach.
Indeed, success in reducing poverty, in eliminating structural
unemployment, in implementing a comprehensive social security system,
in building social cohesion and in reducing crime will depend to a
large measure on the progress made in growing the economy in an
equitable manner, underpinned by a growing skills base. In turn,
progress in these social areas will contribute to economic growth.

Moreover, the difficult economic conditions place enormous
responsibility on all social partners to contribute to, firstly, the
recovery and, secondly, the step-change in the magnitude and content
of economic growth. The core activities identified above, as well as
the MTSF as a whole, will benefit all sectors of society: but at the
same time, there will be instances where sacrifice may be required
from all social partners, especially in the initial phase which
demands more ‘defensive’ interventions. Central to our progress is the
building of partnerships informed by the shared interests of all
social actors and society at large and reinforced by complementary and
mutually-reinforcing activities among all actors, including the state,
the corporate sector, workers, communities and households.

It is important to note that the plans, priorities and targets set out
in the MTSF do not end here with this media briefing. We can only
succeed in improving the quality and standards of the services we
deliver if we have a monitoring and evaluation system within
government to assess the impact we make and implement actions to
rectify weaknesses and enhance the strengths. Already work has begun
in this respect through Minister Collins Chabane’s Ministry, a set of
key outcomes for each MTSF priority is being developed. Ministers will
be required, in a detailed and systematic manner, to account for
performance of their departments to the President.

Issued by: The Presidency
14 July 2009