Presentation to the Joint National Assembly / NCOP Committees on Finance of the Parliament of South Africa Public Hearings on the 2011 Budget Tuesday, 1 March 2011 Abdul Waheed Patel Managing Director ETHICORE Consulting & Advisory Solutions Tuesday, June 19, 2018 By Abdul Waheed Patel

‘Long-termism’ and the National Budget Focus ‘Long-termism’ and the National Budget Tuesday, June 19, 2018 By Abdul Waheed Patel

Context ‘Great Recession’ - Defining issue of our time, acknowledged in the National Budget Statement and Fiscal Framework Exposed prevalent tendency towards ‘short-termism’ An inter-generational challenge: - Business as usual? An opportunity: - Emergence of next-generation sustainable businesses and governments, planning, allocating and utilising resources with a long-term view Tuesday, June 19, 2018 By Abdul Waheed Patel

Strategic Imperatives and Shifts Business as usual is NOT an option From ‘Short-termism’ to ‘Long-termism’ Including: - National budgeting - Public financial management and planning - Economic interventions - Associated oversight (i.e. the role of Parliament and legislators) Tuesday, June 19, 2018 By Abdul Waheed Patel

Beginnings in SA & 2011 Budget National Planning Commission Monitoring and Evaluation New Growth Path ‘Green Economy’ Draft National Climate Change Response Green Paper Integrated Energy Resource Plan Strengthening financial sector stability & prudential regulation …. to mention but a few Tuesday, June 19, 2018 By Abdul Waheed Patel

Long-termism and the National Budget Critical to further strengthening the MTEF approach Giving practical effect to: Money Bills Amendment Procedure & Related Matters Act Parliamentary oversight and accountability Inter-generational impact of the budget National Treasury Budgetary guidelines (oversight, accountability and transparency) Signaling and messaging to other non-state actors impacting on the reach of the fiscal framework Tuesday, June 19, 2018 By Abdul Waheed Patel

Comparative Analysis ‘Long-termism’ key to the success of the Asian ‘tigers’: - Typically think in terms of at least 10 – 15 years - Competitive advantage of economies and businesses - Characterising new multi-polar world order (Rise of China, India and Brazil) USA: - Nearsightedness is the norm - Public and private institutions plagued by myopia - Quarterly earnings focus - Average CEO tenure dropped from 10 to 6 years - Governmental priorities lurching from election to election - Short-term offerings - Long-term woes fester Tuesday, June 19, 2018 By Abdul Waheed Patel

Recommendations Appreciation and recognition for a long-term perspective Thinking differently about short term VS. long term trade offs Reinforce faith in public finance management and oversight Capacity of the Parliamentary Budget Office Laying foundations for future: - growth and development - innovation and competitiveness - human development … that is sustainable, based on informed decisions weighing up short-term trade offs and long-run returns, risks, challenges and opportunities Tuesday, June 19, 2018 By Abdul Waheed Patel

Thank you Questions? ETHICORE Consulting and Advisory Solutions F: 086 586 1102 E: intouch@ethicore.co.za W: www.ethicore.co.za 112 Pinehurst Road Lansdowne, Kenwyn (7780) Cape Town, South Africa Postnet Suite 53, Private Bag X3 Glosderry (7702) Questions? Tuesday, June 19, 2018 By Abdul Waheed Patel