2. National Labour and Economic Development Institute Submission to the public hearings on industrial Strategy

3. Background  High unemployment (29.5% - 41.5%)  Increasing informal and insecure jobs  >50% of employed earn <R2 500  SA 3 rd most unequal distrbtion of wealth  Rapid decline in investment to 15%.

4. NALEDI & Industrial Strategy  Conducts policy-relevant research  Industrial Strategy research focused on assisting Labour in prep for SJSs  SJS work - capacity building & research  This input based on SJS work.

5. Pillars of industrial strategy  Developmental industrial strategy  Economic performance  Job creation  Provision of basic wage goods  Address inequality  Democratisation,  Industrial strategy must be targeted and based on conditions within the sector.

6. Towards a developmental Industrial Strategy  Evidence-based policy  Co-ordination  Capacity Building  Sector Job Summits  Increase domestic demand  HIV/Aids

7. 1. Evidence-based policy  Industrial Strategy must be based on sector-specific realities  Trade deals are not always beneficial, (eg SA-EU trade deal and agriculture)  Inappropriate tariffs (eg pharmaceuticals)  De-industrialising investment (eg dairy and pharmaceuticals)  Restrictive technology transfer (eg furniture)  Undesirable technologies (eg bread)  Undesirable exports (eg food, engineering)  Devaluation as an ‘import tariff’

8. 2. Co-ordination  Co-ordination is very important  In govt, co-ordination must be across departments (eg plastic bags)  DTI directorates must co-ordinate stakeholder interests within sectors  Role of SOEs (eg of Telkom)  Co-ordination must go beyond manufacturing sector (eg Govt policies)  SETAs and relevant skills development  Accessibility of supply-side measures.

9. 3. Capacity Building  Institutions and stakeholders need to have capacity enhanced  Institutions such as BTT and Customs cannot effect policy instruments (eg washing machines & dumping apps)  Other stakeholders should engage in similar process to Labour.

10. 4. Sector Job Summits  SJSs offer the ideal forum for process of engagement  Forum for consensus-seeking based on sector-relevant evidence  Wide variety of sectors identified  SJSs the beginning of a process  Other stakeholders need to be prepared, eg mandating structures  Commitment to process will lead to success (eg Spoornet and MIDP).

11. 5. Increase domestic demand  General measures and redistributive programmes to increase demand such as a basic income grant  Targeted measures such as food stamps, infrastructure development, procurement, etc.  Integration of economic and social needs such as housing, construction, telecommunications & transport.

12. 6. HIV/Aids  Need to asses the impact of HIV/Aids on an integrated strategy  Businesses are adjusting for HIV/Aids  Decline in demand (eg furniture)  Redirection of production (eg food)  Capital intensive production (eg mining).

13. Towards a developmental Industrial Strategy 1. Evidence-based policy 2. Co-ordination 3. Capacity Building 4. Sector Job Summits 5. Increase domestic demand 6. HIV/Aids