1. INTEGRATED SUSTAINABLE RURAL DEVELOPMENT (ISRDP) & URBAN RENEWAL (URP) PROGRAMMES PRESENTATION TO JOINT BUDGET COMMITTEE ON MEDIUM TERM BUDGET POLICY STATEMENT (MTBPS) Ms Mosa Molapo Deputy Director General: Urban & Rural Development Programmes 27 October 2005

2. Outline 1.Background: The Dual South African Economy 2.MTBPS Priorities in relation to ISRDP/ URP 3.ISRDP/ URP Objectives 4.2014 Developmental Targets for Government 5.Economic Challenges arising from the Geographic Disadvantage of the Nodes 6.Towards achieving Economic Growth & Development in the Nodes 7.ISRDP\ URP National Interventions to fast-track Economic Growth & Development 8.ISRDP\ URP Medium Term Budget 2005/06 Page 1

3. RURAL NODES Page 2

4. URBAN NODES Page 3

5. BACKGROUND: THE DUAL SOUTH AFRICAN ECONOMY  The First Economy :  High Modernity & Development  High Productivity  Contributes a lot to the Gross Domestic Product (GDP)  Integration within the global economy  The Second Economy (ISRDP/ URP NODES) :  Underdevelopment  Contributes little to the Gross Domestic Product (GDP)  Contains the majority of the population [Incorporating the rural and urban poor]  Structural disconnect from both the first economy and the global economy  Inability to achieve self-sustaining growth and development Page 4

6. MTBPS Priorities Page 5 MTBPS reflects key messages from the accelerated and shared growth initiative, medium term strategic framework and Cabinet Lekgotla discussions:  Accelerating growth and investment  Infrastructure development  Education and skills development  Second economy interventions  Progressive social security net  Increasing the capacity of the state  Community development (the built environment)  ISRDP and URP are at the centre of achieving the above priorities

7. ISRDP/ URP Objectives 1.To fight poverty and underdevelopment 2.Address gross imbalances in levels of development 3.To ensure that node(s) attain the internal capacity for integrated and sustainable development ito. achievement of: 2014 Govt. of RSA Targets 2011 ISRDP/ URP Targets Millenium Dev Goals Cabinet Lekgotla July 2005 imperatives 4.To transform node(s) into economically viable, socially cohesive & stable, sustainable entities by maximizing government’s investment impact therein Page 6

8. 2014 Developmental Targets for Government  Reduce unemployment by half  Reduce poverty by half  Provide the skills required by the economy  Ensure all South Africans are able to fully exercise their constitutional rights & enjoy the full dignity of freedom  Provide compassionate government service to all South Africans  Improve services to achieve better health profile and reduction of preventable causes of death, including violent crime & road accidents  Reduce number of serious and priority crimes and cases awaiting trial  Position South Africans strategically as an effective force in global relations Page 7

9. Economic Targets for Government  JULY 2005 CABINET LEKGOTLA  Imperative to up-scale RSA Economic growth rate from 3% to 6%  Minister of Provincial & Local Government  Imperative to facilitate the achievement of the above in the nodes  By:  Developing Comprehensive Economic Profiles for the nodes  Exploring synergies with Project Consolidate Page 8

10. ISRDP/URP NATIONAL INTERVENTIONS PROJECT CONSOLIDATE  Hands-on programme to support and engagement with local government  Project Consolidate will capacitate the nodes in integrated planning, service delivery & LED FINANCING PROTOCOL  Channeling of resources and funding from sector departments (national and provincial)  Mobilizing resources and technical support from Donors, Parastatals and Private Sector  Implementing FOSAD Cluster Interventions for the nodes  Implementing nodal anchor projects ISRDP/URP COMMUNICATION CAMPAIGN  Revamped ISRDP/URP website is being finalized ISRDP/URP ECONOMIC PROFILES  Economic Profiles and Interventions Node by Node Page 9

11. Page 10 SUMMARY CLUSTER ALLOCATIONS THAT WILL SUPPORT THE NODAL FINANCING PROTOCOL Additional allocations to National Departments and conditional grants over the MTEF period include:  R20 billion for investment in the built environment  R12 billion for education, health, libraries, social grants, cultural institutions and sports participation  R9 billion for economic services, including science and technology development and industrial policy initiatives  R7 billion for improved courts, policing, defence equipment and improving access to justice services  R8 billion for investment in improved public administration The Provincial equitable share will receive an additional R30 billion over the next three years, and allocations to municipalities will rise by R24 billion, including compensation for the phasing out of RSC levies.

12. 2005\ 2006 BUDGET ALLOCATION PROGRAMME 3: URBAN & RURAL DEVELOPMENT Sub ProgrammeOutputsMeasure/ IndicatorTargetBudget ManagementManage programme & provide strategic leadership Programmes effectively & efficiently managed and coordinated  OngoingR1,956,000 R1,912,000 Urban RenewalManage sub- programmes & consolidate nodal interventions Implement alignment & integration protocols  Coordinated technical & political nodal support  Convened Urban & Rural Technical Forums  Organized Political Champion Visits  Civil Society Stakeholders/ Partners Mobilized  Financing Protocol produced  Bi-monthly  Quarterly  Bi-monthly  July 2004 R1,831,000 R1,784,000 Rural DevelopmentR1,822,000 R1,755,000 Urban Renewal: M&EManage Information Monitor & Evaluate Programme impact Report on Programme  Monitoring & Evaluation Framework developed  Monitoring & Evaluation Framework operationalized  Information Management & Web- based reporting system designed & functional  Impact Assessment Reports produced  June 2004  June 2004 - March 2005  June 2004  Quarterly R1,822,000 R1,827,000 Rural Development: M&E R1,822,000 R1,672,000 TOTALR9,253,000 Adjusted R8,950,000 Page 11

13. CONCLUDING REMARKS  The Medium Term Policy Statement is consistent with Government’s Priorities & Programme of Action in relation to the Rural and Urban Nodes.  The Adjusted 2005/06 Budget from R9253 to R8950 is also consistent with the coordination role of dplg in respect of the implementation of all the developmental imperatives in the nodes, as well as the Monitoring & Evaluation thereof Page 12

14. END. THANK YOU