Background briefing by Presidency Planning Commission Minister Trevor Manuel on the Medium Term Strategic Framework (MTSF), 2009-2014, July 14 200

The Medium Term Strategic Framework (MTSF) for the period 2009 to 2014 was approved by Cabinet on 01st July 2009.

The MTSF, under the theme, Together Doing More and Better, is informed by the 2009 national electoral mandate and outlines the government's medium-term strategy to meet this mandate. It serves as the foremost frame of reference outlining the government's policy posture and programme to improve the conditions of life of South Africans over the next five years. The MTSF identifies the development challenges facing South Africa and defines the priorities over the next five years.

Where does the MTSF fit into the nascent planning system of government?

As a statement of intent, the MTSF will serve as the principal guide to planning and resource allocation across all spheres of government. In this regard, focus areas and targets highlighted in the MTSF will inform the core elements of the budgetary submissions that national departments make to the government's budgeting process, through the Medium Term Expenditure Council (Committee). Similarly, Integrated Development Plans of municipalities and the Provincial Growth and Development Strategies of provinces will need to take into account the priorities identified in the MTSF, thus bringing us closer to the ideal of integrated and aligned planning across the three spheres of government. The MTSF is reviewed on an annual basis at the July extended Cabinet meeting in the light of changes in the domestic and international environment and experience in actual implementation.

While the MTSF reflects medium-term objectives, the 7 Clusters of government are finalising their contribution into a detailed Programme of Action, translating MTSF imperatives into a 6-months government action plan, leading up to the adoption of a Programme of Action for 2010 and the January Cabinet lekgotla.

The Ministry of Planning in The Presidency is developing a Green Paper on national strategic planning which will define systems, processes and structures pertaining to national planning. Among others, it is envisaged that, during the course of the coming year, in interaction with social partners and the public at large, a long-term vision and development plan for the country will be elaborated, outlining the country's broad objectives and targets for some 15 to 20 years.

What then are the strategic priorities of government for the mandate period (2009 - 2014)?

To give effect to the strategic objectives spelled out in the electoral mandate, ten priority areas have been identified in the MTSF. These were articulated in broad terms in the President's State of the Nation Address on 03 June 2009; and they are:

1. Ensuring more inclusive economic growth, decent work and sustainable livelihoods: The main objective with regard to this priority is to respond appropriately, promptly and effectively so that growth in decent employment and improvements in income security are reinforced, and investment sustained to build up national economic capability and improve industrial competitiveness. This has to be conducted in an environment of a stable macro-economy which provides conditions for higher rates of investment and creation of decent jobs.

2. Economic and social infrastructure: In the period ahead government will continue with the infrastructure investment programme aimed at expanding and improving social and economic infrastructure to increase access, quality and reliability of public services and to support economic activities while also considering environmental sustainability and pursuing maximum employment impact. The aim is to ensure sustained investment growth over the medium-term so as to achieve the target of a fixed investment ratio above 25% of GDP by 2014. Such projects will be spatially-referenced, planned for and implemented in an integrated manner. In addition, we will continue with programmes to provide and maintain health, education, library, sporting, recreation and other social infrastructure.

3. Rural development, food security and land reform: Between 10 and 15 million South Africans live in areas that are characterised by extreme poverty and underdevelopment. Recognising the diversity of our rural areas, the overall objective is to develop and implement a comprehensive strategy of rural development that will be aimed at improving the quality of life of rural households, enhancing the country's food security through a broader base of agricultural production, and exploiting the varied economic potential that each region of the country enjoys.

4. Access to quality education: Education has enjoyed the largest share of the national budget throughout the past 15 years. This significant investment in building human capital and capabilities has gradually improved the country's human resource and skills base. However, progress has not been optimal and the achievements have not taken place at the required scale. Our objective is thus to focus our skills and education system towards the delivery of quality outcomes. The focus will be on, amongst others, learner outcomes, early childhood development (ECD), improving schools management and M&E systems and supporting and developing a high quality teaching profession.

5. Improved health care: In the current MTSF period we aim to transform the public health system so as to reduce inequalities in the health system, improve quality of care and public facilities, boost human resources and step up the fight against HIV and AIDS, TB and other communicable diseases as well as lifestyle and other causes of ill-health and mortality. Elements of our strategy include the phasing in of a National Health Insurance system over the next 5 years and increasing institutional capacities to deliver health-system functions and initiate major structural reforms to improve the management of health services at all levels of healthcare delivery, including particularly hospitals.

6. Fighting crime and corruption: Government is determined to curb levels of crime and corruption. Contact crimes, crimes against women and children and organised crime remain a key focus, and so is the combating of corruption. Key to our success would be of the comprehensive revamp of the criminal justice system (CJS), including the strengthening of accountability systems and enhancement of citizen involvement and community mobilisation in the fight against crime.

7. Cohesive and sustainable communities: Social cohesion is important if we are to achieve developmental success. However, inequalities of condition and opportunity and weaknesses with regard to a sense of being part of a common enterprise, is placing severe stress and strain on social cohesion. In this MTSF period, we aim to meet our target of halving poverty and unemployment by 2014 and, in conjunction with other priorities, to strengthen human capabilities, promote shared values and social solidarity and strive to reduce overall inequality.

8. Creation of a better Africa and a better world: Over the medium term, the main goal with respect to this priority is to ensure that our foreign relations contribute to the creation of an environment conducive to economic growth and development domestically, within Africa and in other developing countries. Implementing NEPAD, promoting SADC regional integration, strengthening South-South relations and pursuing a developmental and investment-orientated approach to engagements with the North, are key aspects related to this priority.

9. Sustainable resource management and use: Like the rest of the world, we are vulnerable to the impacts of climate change, biodiversity loss and diminishing water resources. Interventions will include, amongst others, diversification of the energy mix in pursuit of renewable energy alternatives and the promotion of energy efficiency, enforcing a zero tolerance approach to illegal and unsustainable exploitation of resources, supporting local and sustainable food production, and promoting sustainable water use and preserving the quality of drinking water.

10. A developmental state including improvement of public services: In the previous mandate period, government committed itself to improving the capacity of the state for growth and development. This remains a priority. Whilst progress has been made, we continue to face significant challenges in transforming the system of governance. Challenges include capacity gaps in local government; poor quality of some of our public services; declining trust and confidence in public institutions such as the judiciary, legislatures and the executive branch of government; and weak planning capacity across the three spheres of government. As we strive to overcome these hurdles, our long term goal remains the building of an effective and accountable state as well as fostering active citizenship.

The above priorities, initiatives and programmes are spelt out in more detail in the main document to be published on our website .

The MTSF recognises that we enter the fourth term of the democratic government in an environment of a global economic crisis affecting every region of the world. This is likely to have a huge dampening effect on economic growth in our own country at least up to 2010, with the concomitant negative implications for investment, employment, incomes and government revenue. There is a danger that the burden of the crisis may be placed on the shoulders of the poor, deepening poverty and inequality.

Consequently the MTSF emphasises the centrality of a growth path which addresses the economy's structural constraints, expands the industrial base and creates decent work opportunities on a larger scale. Critically, investment in quality education for all young people and in skills development forms the bedrock of the government's approach. Indeed, success in reducing poverty, in eliminating structural unemployment, in implementing a comprehensive social security system, in building social cohesion and in reducing crime will depend to a large measure on the progress made in growing the economy in an equitable manner, underpinned by a growing skills base. In turn, progress in these social areas will contribute to economic growth.

Moreover, the difficult economic conditions place enormous responsibility on all social partners to contribute to, firstly, the recovery and, secondly, the step-change in the magnitude and content of economic growth. The core activities identified above, as well as the MTSF as a whole, will benefit all sectors of society: but at the same time, there will be instances where sacrifice may be required from all social partners, especially in the initial phase which demands more ‘defensive' interventions. Central to our progress is the building of partnerships informed by the shared interests of all social actors and society at large and reinforced by complementary and mutually-reinforcing activities among all actors, including the state, the corporate sector, workers, communities and households.

It is important to note that the plans, priorities and targets set out in the MTSF do not end here with this media briefing. We can only succeed in improving the quality and standards of the services we deliver if we have a monitoring and evaluation system within government to assess the impact we make and implement actions to rectify weaknesses and enhance the strengths. Already work has begun in this respect - through Minister Collins Chabane's Ministry, a set of key outcomes for each MTSF priority is being developed. Ministers will be required, in a detailed and systematic manner, to account for performance of their departments to the President.

Issued by the Presidency, July 14 2009

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