The ANC in the province says the provincial government’s ‘Growth for Jobs’ strategy is based on outdated economics and would only entrench inequality.
The party expressed its concerns during a debate in the legislature on Thursday on the impact the initiative will have on employment.
Finance and Economic Opportunities MEC Mireille Wenger said the province wanted breakout economic growth and that the roadmap sets out an economic action plan on what was possible when the government had the foundation for economic growth right, among other things.
“The strategy is based on the best data available, research, modelling and experience. It has been worked on with the private sector,” she said.
“It is the private sector that creates jobs and it is our job to provide a foundation for economic growth so that businesses can grow their business and create economic growth and jobs.”
Wenger also said the economic plan set out a comprehensive, challenging and ambitious goal for Western Cape of becoming a trillion-rand inclusive economy growing at between 4% and 6% per annum by 2035.
“It is inspired by a vision of achieving an economy that is sustainable, diverse, inclusive and thriving, which generates confidence, hope and prosperity for all,” she said.
She listed the economic plan’s seven priority focus areas, saying they included Western Cape as a destination of choice for investment; stimulating domestic markets and exports; increasing energy resilience; boosting water security and resilience; technology and innovation; investment in infrastructure and working with stakeholders to improve access to economic opportunities.
ANC MP Nomi Nkondlo said there were a number of fundamental challenges with the plan.
“The most glaring challenge with this ‘Growth for Jobs’ plan or programme is that it is based on outdated economics.
“Trickle-down economics through the concentration on growth does not work,” Nkondlo said.
She also said any serious economist would point out that trickle-down economics only entrenched inequality.
“The basic philosophy of the plan, that is growth for jobs, is simply outdated economics.
“Secondly, the plan can only work on the basis of an independent Western Cape with an independent regulatory financial and fiscal framework from the rest of South Africa,” Nkondlo added.
She said Premier Alan Winde had stated in response to a parliamentary question that the estimated growth rate for the Western Cape for this year was 0.4% whereas the rest of South Africa was 0.3%.
Wesgro’s economic outlook pointed out that the province’s growth rate mirrored that of the country’s growth rate.
“So, the question becomes: if the DA wants to secure a 4% to 6% growth rate for the province without mirroring the national economy, as Wesgro suggests, how will it achieve this?” Nkondlo asked.
She argued that the DA’s plan to grow the provincial economy and create jobs was to continue on the road to an independent Western Cape.
EFF MPL Aishah Cassiem said one of the MECs in the Western Cape recently confirmed that the provincial government’s expanded public works programmes and internships were counted as job opportunities.
“Classification of internships as job opportunities as opposed to learning opportunities is grossly misleading.”
Cassiem charged that counting the internships, which funded transport costs, as jobs was downplaying the unemployment rate in the country.
The ACDP’s Ferlon Christians decried the joblessness of young people who graduated from tertiary institutions.
“A lot of graduates are on the streets unemployed. Did you do an audit on what is needed so that young people can study what is needed?” Christians asked.
Cape Times