Well lets discuss it comrades On Fri, Apr 8, 2011 at 7:45 AM, Dominic Tweedie <[email protected]>wrote:
> > [image: Business Day] > > > *Important plan could do a lot more * > > > *Editorial, Business Day, Johannesburg, 8 April 2011 * > > THE updated industrial policy action plan (IPAP2) was launched this week > without the attention it deserves. The Department of Trade and Industry has > decided to implement the programme over a three-year period and evaluate it > annually, in the same way the Treasury’s budget is handled. This is an > improvement as it will in theory allow regular adjustments to be made with > input from all of SA’s social partners — the government, business and > labour. > > The big question is whether this co-ordination will happen, given that the > plan is widely seen as top- down intervention in the economy by a government > with unrealistic or unreachable goals. > > The IPAP2 is a blueprint aimed at invigorating SA’s beleaguered > manufacturing sector and creating enough jobs to slash the country’s > unemployment rate to 15% from 24% in the coming decade. > > The programme will be driven by R66bn of concessional loans from the > Industrial Development Corporation to sectors seen as having the potential > to thrive. > > The document begins with a refreshingly frank assessment of the challenges > to manufacturing, including the lack of skills, ageing infrastructure, and > weak investment from the private sector. > > It admits that manufactured exports will be "faced with a long and painful > adjustment period" as their main destinations are Europe and the US, which > are both recovering very slowly from the global economy’s downturn. > > But like the government’s New Growth Path, the updated industrial policy > ventures into the arena of macroeconomic policy - which is the domain of the > Treasury. > > According to the document, success hinges on macroeconomic policies that > are "favourable", relative to SA’s main trading partners. These are, first, > a "competitive and stable exchange rate" and, second, a "competitive real > interest rate structure." > > There is wide agreement that SA needs a currency that is stable and > competitive, but not everyone understands that this is impossible for a > small country to engineer in global markets. > > Eyebrows will be raised at the mention of a "competitive real interest rate > structure". Since when has the government tried to dictate monetary policy > to the independent Reserve Bank? > > Business welcomes the support mooted for a wider range of industries, > particularly those for oil and gas, and boat-building. > > Boat repair is another opportunity given that piracy off the northern coast > of Africa has led to more shipping traffic around the Cape. > > A crackdown on obstacles to fair competition is another plus. > > But there is a sense that the IPAP2 is trying to do too much and should > focus on its priority growth areas. There are also complaints that too > little is being done to create an environment conducive to private business. > Inflexible labour rules are seen as a deterrent to hiring apprentices and > teaching them the skills they need to become fully fledged employees. > > At the same time, the IPAP2 does not do enough to align the skills of > workers to the needs of private business, executives say. > > And so far, pleas to trade unions for wage-demand restraint have fallen on > deaf ears — the National Union of Mineworkers said yesterday it wanted a 20% > wage increase this year. > > In the next two years, the department aims to finalise a national artisan > development programme agreed between the Department of Higher Education and > some of the key sector education and training authorities. > > But there is no mention of support for plans to revive technical colleges, > which could go a long way to alleviating the skills shortage. > > The new plan may have its flaws, but support is crucial — manufacturing > accounts for 15% of the economy and more than 13% of jobs. > > Business must come to the party and the government has to listen. > > > *From: http://www.businessday.co.za/articles/Content.aspx?id=139682* > * * > * * > > -- > You are subscribed. 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You don't have to put anything in the message part. All you have to do is to send an e-mail to this address (repeat): [email protected] .
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