Sunday Times
*Let us seize the day* *Pravin Gordhan, Sunday Times, Johannesburg, 22 April 2012 *When the Sunday Times launched the Each One, Hire One campaign in February, it stated that the campaign had one objective: to get its readers "to think about what they can do to help alleviate unemployment and give hope to young South Africans".
This was a challenge to us as South Africans to lift our gaze to the possible solutions to our problems and to see how best we can do this in a collective spirit.
Our contemporary defining moment is how to transform ourselves from victims of history to active builders of a better future.
Changing the course of this beloved country, rebuilding and redirecting the state machinery to serve all the people, and creating new momentum for growth, jobs and development requires leadership with vision, boldness and magnanimity.
The process of social change is always contested - between those who have different outlooks; between those who seek personal benefit and those who work for the greater good; between armchair critics who will never know the exhilaration of struggling for change and those who work practically for a better life; between those who seek short-term benefits and those who humbly but steadfastly contribute to long-term change.
There will always be successes. There will always be failures. There will be brilliant choices in policy. There will be wrong choices. This is not unique to government. It afflicts businesses too. That's why we have to manage risk, reflect on progress, and change a plan if it isn't working.
Differences and contradictions are central to human existence. The issue is how societies build consensus - or sufficient consensus - and how they manage their differences.
At times the possibilities of building consensus appear as distant as the north is from the south, but that is no excuse for letting hopelessness trump optimism, or for allowing cynicism to become a preoccupation.
There are real challenges to overcome, opportunities to grab and strategic and practical programmes to contribute to.
Firstly, as the global economy shows signs of slow recovery, we must look ahead with vision and resolve and chart our way forward.
There is a profound structural shift in the global economy in which the emerging markets will play a key role.
This throws up an immediate opportunity for the African continent more generally, but SA specifically.
Africa and SA can, and must, ride the new wave of growth. By this I mean that, as returns on investment in developed countries have declined as a result of the financial crisis, Africa will prove to be a new source of growth and higher returns for investors seeking new opportunities.
Secondly, South Africa is being recognised all over the world as the launching pad for investment in Africa.
We must therefore focus on what we can do - as government, business and labour - to create the conditions and capabilities to seize the benefits of this development.
Thirdly, a recent World Bank study shows that the real returns to capital have risen sharply since the early 1990s, to an average rate of 15% between 1994 and 2008, or 23% in nominal terms.
Real rates of return averaged about 22% between 2005 and 2008, the same range as China's. It is our responsibility to attract long-term investment in SA and Africa.
Fourth, this government has a number of initiatives and programmes which are designed to raise the rate of economic growth, job creation and development. These programmes offer opportunities for all of us to contribute and concretely build a better South Africa.
To recap: * The National Planning Commission has placed before us a 20-year vision around which we can build national consensus; * We now have a massive infrastructure programme which extends over 20 years; * The New Growth Path spells out how we can raise the rate of economic growth and create job opportunities; * We have a programme for rebuilding SA's industrial capacity and capabilities; * We have embarked on training and skills development programmes; and * We are fixing public health.All of these programmes must, and will, be implemented within a sustainable fiscal framework.
In addition, government is undertaking structural changes which will in the longer term support our goal of creating jobs and reducing inequality. These include:
* Turning the economy around from consumption-driven to investment-led growth; * Borrowing money to finance spending on investment that will grow the potential of this economy - not for consumption expenditure; and * Building infrastructure to create economic and social benefits that last across generations.But we also need to make sacrifices today so we can have social stability later. To meet SA's development challenges requires sufficient revenue to pay for key expenditure priorities, while ensuring that government debt and the interest payments thereon are contained. It also requires that taxpayers are not overburdened.
At the same time, we must continue to improve the quality of our social spending, which has increased from 49% of government expenditure in 2002/03 to 58% in the 2012 budget.
Social spending gives expression to the government's commitment to tackle poverty and reduce inequality. Social spending, which benefits the poor the most, includes social grants, free services at public hospitals and clinics, no-fee schools which cover the poorest 60% of learners, as well as free basic services such as housing, water and electricity.
Based on social expenditure for 2012/13, current estimates are that social spending translates into a transfer of R3940 per family of four per month. These are significant transfers to the less fortunate.
The challenge now is not so much the increase in the rand value of social expenditure, but the increase in the quality of public services, especially education and health. More importantly, our task is to shift people out of the welfare net and into jobs.
Struggle icon Walter Sisulu wrote from his cell on Robben Island: "In a certain sense, the story of our struggle is a story of problems arising and problems being overcome.
"It is understandable that many of the problems should generate much controversy and emotion. However cool and detached we may strive to be in our analysis, the fact remains that we are deeply involved and interested parties and the solutions we adopt are solutions we ourselves have to implement."
Growth, equity and social cohesion must feature prominently in our national discourse. Growth, investment and development are critical to transforming aspirations on the ground.
The future will be what we make of it. It is certainly not destined for conflict, paranoia, or eternal gloom.
Like successful nations elsewhere, such as South Korea, we have a choice about how we contribute to and build a better future for all our people. We can choose to participate or we can disengage and be negative.
The people of South Africa want a better future. They want decent education for their children so they have better prospects in an increasingly competitive world.
They want jobs. They want their families to prosper and live in harmony. They want better healthcare, decent housing and the dignity of a decent life.
Let us choose to work together, support each other, and create synergies among us so we can each make our humble contribution to a better and proud South Africa.
* Pravin Gordhan is the minister of finance *From: http://www.timeslive.co.za/Feeds/2012/04/22/let-us-seize-the-day* ** ** ** -- You are subscribed. This footer can help you. Please POST your comments to [email protected] or reply to this message. You can visit the group WEB SITE at http://groups.google.com/group/yclsa-eom-forum for different delivery options, pages, files and membership. To UNSUBSCRIBE, please email [email protected] . You don't have to put anything in the "Subject:" field. 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] .
<<inline: STimesNew.gif>>
