1. 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

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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. Thank you Questions? ETHICORE Consulting and Advisory SolutionsF: E: W:
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