(AsgiSA) Annual Report 2008 - South African Government Information

Accelerated and Shared Growth Initiative for South Africa
ANNUAL REPORT
2008
7. Conclusion and high-level priorities
Asgisa was formed in 2006, aiming to tackle directly constraints to inclusive growth. AsgiSA builds on
the foundations of the Reconstruction and Development Programme goals of building a united, democratic,
non-sexist and non-racial society, and a single integrated economy. AsgiSA also builds on the
achievements of the decade of democracy of a stabilised macroeconomic environment, growth rates of
3% per annum and the lowest inflation and interest rates in decades.
This third AsgiSA Annual Report outlines progress made in dealing with the constraints identified.
Indeed, if AsgiSA’s achievements are measured against what AsgiSA is – a set of concrete economic
proposals and not an overarching economic strategy – a lot has been achieved. For example:
• GFCF averaged 22% of GDP by 2008.
• Economic growth averaged over 5% from 2004 to 2007, only to be curtailed first by the electricity
emergency and then by global economic meltdown.
• Competition Ccommission capacity has been strengthened and more and more cartels and other
anti-competitive behaviour unearthed; a programme to curtail red tape in municipalities is also gathering
momentum.
• Jipsa has been declared in all quarters as one of the most successful skills interventions in South
Africa.
• The lives of many young people have been transformed though initiatives such as the NYS. Programmes
flowing from the Second Economy work, such as the community work programmes show
promise by providing guaranteed income while at the same time enabling the poor to beautify their
surroundings and build community cohesion. In communities that had community work programmes,
there was no xenophobic unrest even though there was a high percentage of people of foreign origin.
Going forward, the greatest challenge for inclusive growth is the global economic slowdown and inequality.
The research undertaken by The Presidency on the Second Economy will indeed assist in the
crafting of effective strategies that are targeted. There already exists a tripartite response to the global
economic meltdown anchored on principles such as protection of the poor and vulnerable and growing
the economy to create decent jobs. Interventions that form part of the response package include:
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