AFRICAN PEER REVIEW MECHANISM

1
AFRICAN PEER REVIEW MECHANISM

• Presentation to the Ad Hoc Joint Committee on
  Economic Governance and Management
• 01 November 2005

2
Overview of the Presentation

• Rationale and context
• Overview of the APRM
• Economic governance
• Macro- economic policies
• Public Finance Management
• Regional economic integration
• Conclusion
• Questions?

3
Rationale

• South Africa as a champion of NEPAD and its
  objectives
• Resistance of forces to shift focus and
  intention of APRM
• Continental and global leadership role in
  promotion of good governance
• South Africas Constitution
• Prominence in political mobilisation Minister
  of Public Service and Ministers of Environmental
  Affairs Ministers of Health etc
• Support for Post Conflict and Reconstruction
  Efforts

4
Overview of APRM

• Programme of the AU
• Country self-assessment tool
• Covers four thematic areas
• - Democracy and good political governance
• - Economic governance and management
• - Corporate governance
• Socio-economic governance
• Purpose of the APRM
• - Fosters adoption of policies, standards and
  practices that lead to
• Political stability
• High economic growth
• Sustainable development
• Accelerated sub-regional and continental
• economic integration
• Encourages sharing of experiences
• identification of capacity building needs

5
Economic governance

• South Africas role in NEPAD
• - SA is member of the HSGIC
• - SA is a founding member of NEPAD
• - SAs level of economic development
• necessitates a strong external focus
• - Private sector capability
• - Experiences in terms of political and economic
• governance
• - Strong institutional capability
• - Commitment to mobilize support for NEPAD and
• advance Africas interests in the global
  trading
• environment

6
Efficient economic governance

• Constitutive Act of the African Union
• - SAs commitment is evident through the
• active involvement in the following areas
• Acceleration of the political and
  socio-economic integration of the continent
• Promotion of peace, security and stability on
  the continent through peace missions and the
  commitment to the standby force to be established

7
Macro-economic policies

• RDP- integrated, coherent socio-economic policy
  framework to mobilise domestic resources
• GEAR increase employment and reduce poverty
• Exchange rate management market forces and
  controls over capital movement of residents
• Monetary policy inflation targeting
• Fiscal policy MTEF and PFMA
• Other policies
• BBBEE
• National Small Business Act
• Competition policy

8
Sound and transparent economic policies

• Regulatory framework created e.g. Access to
  information Act
• Participation of Departments in cluster
  structures e.g. ARC, IRPS cluster promotes
  collaboration and ensures predictability of
  policies
• Roundtable discussions held on key economic issues

9
Public finance management

• PFMA
• Maximisation of service delivery
• Promotes accountability and transparency
• Regulates financial management in all spheres and
  public entities
• Deals with corruption and money laundering, the
  following has been implemented
• codes of conduct
• whistle-blower protection,
• effective auditing, monitoring and law
• enforcement
• MTEF
• Promotes predictability of government expenditure
• Indicates medium term plan and key priorities of
  government

10
Regional Economic Integration

• SA pursues policies that promote regional
  industrial development underpinned by the
  manufacturing of high-tech and high value-added
  products
• SA encourages intra-Africa trade and facilitates
  technology and skills transfer through outward
  investment and technical assistance to the rest
  continent

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Regional Economic Integration (conted)

• This requires
• Comprehensive and integrated trade policy and
  strategies
• Adoption of appropriate macro-economic policies
• Development of a stable and transparent
  regulatory environment.
• Strengthening of the capacity of States in
  African countries to understand and facilitate
  changes.

12
Regional Economic Integration (conted)

• SACU
• - The main objectives include
• Development of SACU common policies
• Strengthening of SACU institutions
• SADC
• - The main objectives include
• Implementing the SADC Protocol on Trade
• Conclusion of negotiations on outstanding
• issues such as agreement on rules of origin
• SADC negotiations on trade in services
• Implementation of tariff reduction schedules

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Conclusion

• Sound policy framework exists within the country
• NEPAD is a good framework for Africas
  development
• APRM a good assessment tool to monitor progress
  made by the country and to identify deficiencies
• Role of South Africa
• Capacity building on policy formulation and
  development within the continent
• Enhancement of economic regional integration
• Mobilising support for NEPAD

14
Questions?