Department%20of%20Trade%20and%20Industry

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Department of Trade and Industry

• DRIVING COMPETITIVENESS
• TOWARDS A NEW INTEGRATED INDUSTRIAL STRATEGY FOR
  SUSTAINABLE EMPLOYMENT AND GROWTH
• Dr David Kaplan
• Chief Economist, DTI
• May, 2001

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1. Why an industrial strategy?

• 1.1 A good manufacturing strategy promotes
  investment
• 1.2 Global trends - the implications for SA
  manufacturing and the DTI

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2 The changing world - the growing importance
of markets

• 2.1 Exploding markets
• new international trends
• The expansion of market forces in the
  modern era
• The limitations of the market
• New markets, new role for the state towards a
• rules-based domestic economy for the people
• Market rules market failure industrial
• strategy in South Africa

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2 The changing world 2.2 Balancing the rules
for domestic and international markets

• Domestic markets and the role of competition
  policy
• A broader mandate objectives for DTI industrial
  strategy
• BEE, SMMEs, Employment
• The impact of new technologies is transforming
  the role of the state
• Balancing acts public interest and economic
  growth
• Effective regulation requires cooperation across
  government

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2 The changing world 2.3 Globalisation Whom
does it really benefit?

• Levelling the playing fields? Multilateral
  economic institutions
• The importance of bilaterals and multilaterals

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3 Current Industrial Policy

• 3.1 The learning years 1994-1999
• 3.2 Policy logic and coherence 1994-1999
• 3.3 Policy design 1994-1999 - best practice?
• 3.4 Industrial performance did our policies
  work?

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Current Industrial Policy An AssessmentTable 1
Manufacturing - Exports
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Table 2 Manufacturing - Labour Productivity
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Table 3 Manufacturing - Investment
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Table 4 Manufacturing - Value of Sales
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Table 5 Manufacturing - Employment
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4 Towards an integrated industrial strategy
framework

• 4.1 Key factors affecting manufacturing ICT,
  innovation and demanding customers
• 4.2 Old modes of competitiveness count for much
  less
• 4.3 SA manufacturing what must be done?
• Dont rely on the old ways
• Dont bank on cheap labour
• Forget protection
• Do pay attention to innovation
• Enhance knowledge capacities

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5 Continuities and new directions

• 5.1 Continuities preserving the best of the old
• 5.2 New directions towards a knowledge- intensive
  manufacturing sector
• 5.3 An integrated industrial strategy for the
  region
• 5.4 Phasing in policy changes
• 5.5 Our history, our special concerns

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6 Making the change to a knowledge-based
economy

• 6.1 Constraints
• Human resources
• Infrastructure
• 6.2 Tensions
• Breaking down departmental barriers
• Employment levels

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7 Making it work indicative policies

• 7.1 Skills development
• 7.2 Acquiring and creating knowledge
• 7.3 Information and communication technologies
• 7.4 Networks and best practice
• 7.5 Consultative policy making

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8 Government implementation of the new
industrial strategy framework

• 8.1 Extending industrial policy across
  departments
• 8.2 Business and consumer regulation,
  competitiveness
• 8.3 Joined-up government working with other
  state departments

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9 Government as a learning organisation - the
importance of monitoring and evaluation