National Labour and Economic Development Institute

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
• gt50 of employed earn ltR2 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