EEHCStrategy

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INTEGRATED SUSTAINABLE RURAL DEVELOPMENT (ISRDP)
URBAN RENEWAL (URP)
PROGRAMMES PRESENTATION TO JOINT BUDGET
COMMITTEE ON MEDIUM TERM BUDGET POLICY STATEMENT
(MTBPS) Ms Mosa Molapo Deputy Director General
Urban Rural Development Programmes 27 October
2005

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Outline

• 1. Background The Dual South African Economy
• 2. MTBPS Priorities in relation to ISRDP/ URP
• 3. ISRDP/ URP Objectives
• 4. 2014 Developmental Targets for Government
• 5. Economic Challenges arising from the
  Geographic Disadvantage of the Nodes
• 6. Towards achieving Economic Growth
  Development in the Nodes
• 7. ISRDP\ URP National Interventions to
  fast-track Economic Growth Development
• 8. ISRDP\ URP Medium Term Budget 2005/06

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RURAL NODES
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URBAN NODES
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BACKGROUND THE DUAL SOUTH AFRICAN ECONOMY

• The First Economy
• High Modernity Development
• High Productivity
• Contributes a lot to the Gross Domestic Product
  (GDP)
• Integration within the global economy
• The Second Economy (ISRDP/ URP NODES)
• Underdevelopment
• Contributes little to the Gross Domestic Product
  (GDP)
• Contains the majority of the population
  Incorporating the rural and urban poor
• Structural disconnect from both the first economy
  and the global economy
• Inability to achieve self-sustaining growth and
  development

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MTBPS Priorities

• MTBPS reflects key messages from the accelerated
  and shared growth initiative, medium term
  strategic framework and Cabinet Lekgotla
  discussions
• Accelerating growth and investment
• Infrastructure development
• Education and skills development
• Second economy interventions
• Progressive social security net
• Increasing the capacity of the state
• Community development (the built environment)
• ISRDP and URP are at the centre of achieving
  the above
• priorities

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ISRDP/ URP Objectives

• 1. To fight poverty and underdevelopment
• 2. Address gross imbalances in levels of
  development
• 3. To ensure that node(s) attain the internal
  capacity for integrated and sustainable
  development ito. achievement of
• 2014 Govt. of RSA Targets
• 2011 ISRDP/ URP Targets
• Millenium Dev Goals
• Cabinet Lekgotla July 2005 imperatives
• 4. To transform node(s) into economically viable,
  socially cohesive stable, sustainable entities
  by maximizing governments investment impact
  therein

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2014 Developmental Targets for Government

• Reduce unemployment by half
• Reduce poverty by half
• Provide the skills required by the economy
• Ensure all South Africans are able to fully
  exercise their constitutional rights enjoy the
  full dignity of freedom
• Provide compassionate government service to all
  South Africans
• Improve services to achieve better health profile
  and reduction of preventable causes of death,
  including violent crime road accidents
• Reduce number of serious and priority crimes and
  cases awaiting trial
• Position South Africans strategically as an
  effective force in global relations

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Economic Targets for Government

• JULY 2005 CABINET LEKGOTLA
• Imperative to up-scale RSA Economic growth rate
  from 3 to 6
• Minister of Provincial Local Government
• Imperative to facilitate the achievement of the
  above in the nodes
• By
• Developing Comprehensive Economic Profiles for
  the nodes
• Exploring synergies with Project Consolidate

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ISRDP/URP NATIONAL INTERVENTIONS

• PROJECT CONSOLIDATE
• Hands-on programme to support and engagement with
  local government
• Project Consolidate will capacitate the nodes in
  integrated planning, service delivery LED
• FINANCING PROTOCOL
• Channeling of resources and funding from sector
  departments (national and provincial)
• Mobilizing resources and technical support from
  Donors, Parastatals and Private Sector
• Implementing FOSAD Cluster Interventions for the
  nodes
• Implementing nodal anchor projects
• ISRDP/URP COMMUNICATION CAMPAIGN
• Revamped ISRDP/URP website is being finalized
• ISRDP/URP ECONOMIC PROFILES
• Economic Profiles and Interventions Node by Node

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SUMMARY CLUSTER ALLOCATIONS THAT WILL SUPPORT THE
NODAL FINANCING PROTOCOL

• Additional allocations to National Departments
  and conditional grants over the MTEF period
  include
• R20 billion for investment in the built
  environment
• R12 billion for education, health, libraries,
  social grants, cultural institutions and sports
  participation
• R9 billion for economic services, including
  science and technology development and
  industrial policy initiatives
• R7 billion for improved courts, policing,
  defence equipment and improving access to
  justice services
• R8 billion for investment in improved public
  administration
• The Provincial equitable share will receive an
  additional R30 billion over the next three years,
  and allocations to municipalities will rise by
  R24 billion, including compensation for the
  phasing out of RSC levies.

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2005\ 2006 BUDGET ALLOCATION PROGRAMME 3 URBAN
RURAL DEVELOPMENT
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CONCLUDING REMARKS

• The Medium Term Policy Statement is consistent
  with Governments Priorities Programme of
  Action in relation to the Rural and Urban Nodes.
• The Adjusted 2005/06 Budget from R9253 to R8950
  is also consistent with the coordination role of
  dplg in respect of the implementation of all the
  developmental imperatives in the nodes, as well
  as the Monitoring Evaluation thereof

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END. THANK YOU