Accelerated and Shared Growth-South Africa (ASGI-SA)

 

 

 

The Public Service Response: Progress Report

 

 

5 September 2007

 

 

 

 

 

CONTENTS OF THE REPORT

 

 

 

1. Introduction                                                                                                                3

 

 

2. Update on the Accelerated and Shared Growth Initiative for

South Africa (ASGI-SA):                                                                                                 3                                                                                                         

 

2.1 Macroeconomic Issues                                                                                 4

2.2 Infrastructure Investments                                                                              4

2.3 Education and Skills Development                                                                 5

2.4 Second Economy Initiatives                                                                           6

2.5 Governance and State Capacity Issues                                                          6

 

3. Public Service Focus:                                                                                                 6

           

            3.1 Education and Skills                                                                                     6

            3.2 HR Connect                                                                                                 8

3.3 Human Resource Development Strategy                                                         9

3.4 Capacity Assessments                                                                                 10

3.5 Single Public Service                                                                                    11

 

 

4. Conclusion                                                                                                                13

 

 

 

 

 

 

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  1. INTRODUCTION

 

This is a progress report on the implementation of the Accelerated and Shared Growth Initiative for South Africa (ASGI-SA). The report looks focuses at the five key strategic interventions of the ASGI-SA. These strategic interventions are as follows:-

                             

·         Macroeconomic Issues

·         Infrastructure Investments

·         Education and Skills development

·         Second Economy Initiatives

·         Governance and State Capacity Issues

 

 

The report also focuses on various programmes that are currently implemented by the public service to improve the capacity of the state to deliver on its mandate. These interventions include the following:-

 

·         Education and Skills

·         Single Public Service

·         HR Connect

·         Human Resource Development Strategy

·         Capacity Assessments

 

 

 

  1. UPDATE ON THE ACCELERATED SHARED AND SHARED GROWTH INITIATIVE (ASGI-SA)

 

 

The main objectives of ASGI-SA are to achieve the following:-

 

 

                        i) Grow the economy by 6% per year by 2010

                        ii) Reduce unemployment by half by 2014

                        iii) Reduce poverty by half by 2014

 

     In order to achieve its objectives, the ASGI-SA programme will need to

     address the following key constraints in the economy and these constraints to

     the economy are as follows:-

 

    • The relative volatility of the currency
    • The cost, efficiency and capacity of the national logistics systems
    • Shortages of suitably skilled labour
    • Barriers to entry, limits to competition
    • The regulatory environment
    • Deficiencies in state organisation, capacity and leadership

 

 

In an attempt to address to some of the blockages that prohibits economic growth in South Africa. The following broad policy areas have been identified as main pillars for ASGI-SA and the intention is to accelerate economic growth:-

    • Macroeconomic Issues
    • Infrastructure Investment
    • Education and Skills Development
    • Industrial and Sector Strategies
    • Second Economy Initiatives
    • Governance and State Capacity Issues

 

 

 

2.1 Macroeconomic Issues

 

§         The gross domestic product (GDP) grew by 4,9 percent in 2006 and it forecast to grow at an average of about 5.1% percent a year over the medium term.

§         A main budget surplus of 0.3 percent in 2006/07 and 0.6 percent in 2007/08

§         The gap between budget allocations and actual expenditure is narrowing

§         The percentage of capital projects behind schedule fell from 14,5% to 4% in 2006

 

 

       2.2 Infrastructure Investment

 

§         Fixed investment reached 18,7% of the GDP in the third quarter of 2006

§         Overall public sector infrastructure expenditure increased by 15,8% per between 2003/04 and 2006/07.

§         In the current Medium Term Expenditure Framework (MTEF), R 409.7 billion has been set aside for infrastructure projects and 37% of the total budget will be spent by State Owned Enterprises (SOE’s).

§         The SOE’s will spend this budget on power generation, transmission and distribution, port, rail and pipelines.

§         Construction has started on Phase One of the Gautrain and about 58 800 direct jobs will be created

§         The 2006 Budget allocated R 3 billion for stadium construction and R2.4 billion transport infrastructure.

§         A further R9.5 billion was announced in the MTEF, half for building five new stadiums and upgrade five existing ones.

§         About R15 billion is earmarked for EPWP for the next five years and pilot programmes created 47 530 jobs in 2005/06

 

 

 

            2.3  Education and Skills Development

 

§         The School Quality Improvement and Development Strategy was developed by the department of Education to improve the quality of teaching in poorest primary schools.

§         The department of Education identified 6000 schools which will receive indigenous language material to improve literacy.

§         The programme also targets teacher training and development in Maths, Science and Technology skills.

§         The intention of the department of Education is also to increase the number of learners passing Maths and Science in higher grades from previously disadvantaged groups.

 

§         The following professions has been identified Joint Initiative on Priority Skills Acquisition (JIPSA) as requiring urgent attention for growing the economy:-

§         High level planning and engineering skills

§         Town and regional planners

§         Engineers and technologists

§         Artisans

§         Mathematics, Science and Information and Communication Technologies (ICT’s) in schools

§         Planning and management skills for the public education and healthcare systems.

§         Cross-cutting skills in project management, ICT’s finance and ABET.

 

 

§         The JIPSA has set a target of 1000 additional engineers per year over the next four years.

§         Increase the number of architects by 30% to 35% and the number of surveyors by 65% in a long term.

§         The JIPSA has also set a target to train 50 000 artisans over the next four years.

 

 

 

2.4 Second Economy Initiatives

 

§         Infrastructure maintenance and construction have created around 70 000 full-time jobs

§         ECD and Home-based care systems should create 72 000 permanent jobs and 205 000 part-time jobs by the end of 2007.

§         Working for Water has created 27 000 short term jobs

§         UYF has JOBS database which currently places 500 people a year and would expand to 2000 in the future.

 

 

2.5 Governance and State Capacity Issues

 

§         Marked acceleration of service delivery by deploying scarce skills

§         Signing performance agreements and filling of critical posts

§         Improved financial viability

§         New ward committees and engagements through Presidential Imbizo Programme.

 

 

 

 

3. PUBLIC SERVICE FOCUS

 

 

3.1 Education and skills

 

§         Growth envisaged through AsgiSA depends in part on resolving the shortage of suitably skilled labour

§         Thus a number of medium & long term interventions identified:

§         Build a strong foundation in public schooling

§         Focus on areas of greater priority in tertiary education & training

§         Initiate & improve work-based training programmes & scarce skills initiatives

§         Jipsa to coordinate & strengthen activities

 

 

Proposed measures aimed at closing skills gaps in the Public Service

 

§         Four measures for implementation:

§         Supporting the flow of talent into the PS

§         Building a developmental ethos in the PS

§         Coordination & strategic focusing of resources

§         Improving systems & processes

 

 

3.1.1 Supporting the flow of talent

 

§         (Re) orientation and induction programmes for newly recruited public servants to introduce them to developmental state’s ethos.

§         Intensification of Internships to reduce graduate unemployment & to introduce graduates to the public sector ethos.

§         Intensification of 18.1 and 18.2 learnerships to provide career-pathing and employment opportunities for the unemployed and under qualified.

§         Development of linkages with the private sector for revolving door, secondments & other mechanisms to enable flows of personnel between private & public sectors to gain experience

§         Build on current international exchange programmes & capacity building international programmes

 

 

3.1.2 Building developmental ethos

 

§         Norms & Standards for an integrated public service so that mobility between the spheres is facilitated

§         Evolution of a learning culture that supports on the job training & knowledge sharing within communities of practice

§         Development of a cadre of line managers who embody skills development principles in their management style & approach and which forms part of their KPA.

§         Provision of focused, short term training for selected employees or occupations to assist them in working within a developmental state

§         Strategic frameworks & policies to help the different layers of management in all spheres of Gov. to work towards a common goal

 

 

3.1.3 Coordination and strategic focuses of resources

 

§         Targeted partnerships with private sector service providers as a temporary measure to fill immediate skills gaps

§         Designated mechanism/body to facilitate relationship between private sector suppliers & public sector users of training services

§         Establish structure for HEI & government to work more closely towards meeting public sector training needs

§         Establish a training facility providing bridging skills for professionals without public service experience to provide them with easier entry in to the PS.

 

 

 

 

 

3.1.4 Improving systems and processes

 

§         Bring HRM & HRD functions into closer cooperation so that recruitment, promotion & career development activities are linked to skills development planning.

§         Public sector-wide database located in a central department for the purpose of storing & analysing training information as well as for modeling & forecasting

§         Improved monitoring by prescribing standards for recording training expenditure.

§         Prescribed standards for the capture of information on training so that its impact can be monitored over time

§         Departments to give particular attention to quality assuring the entire skills development process

§         Skills planning is informed by overarching planning systems oriented to the developmental state. 

 

 

3.2 HR Connect

 

Requirements to manage Human Capital Development:

    • Competence Profiles of People and Posts
    • Ability to
      • Compare two Profiles – same reference language
      • Refer to Standardised (National/International) Framework
      • Manage Process that addresses the difference
    • High priority on skills transfer and self sustainability
    • Buy-in from all stakeholders to ensure continuous participation

 

 

How is HR connect different

 

§         First time Government departments have worked together on a cross-government skills agenda;

§         Significant move towards a Government demand-led approach;

§         Strong framework for delivery in which the Government and its agencies work together ;

§         Determination underpinned by political and legal mandates to deliver on a demanding change agenda.

 

 

§         Job profile for 20 departments related to the Organising Framework of Occupations (OFO) developed.

§         Held 12 workshops totaling almost 300 person training days (PTD) to:

§         generate the occupational, job and competence profiles of jobs in the various Departments;

§         assist Departments in documenting and mapping posts to employees and cleaning up  their organogram; and

§         build capacity in terms of  the processes required to manage Human Capital Development.

§         Data quality issues still persist

 

Web enablement of the system completed

 

    • Web interface to be completed end July 2007
    • Web system demonstrated to participating departments 26 July 2007
    • Web enablement and further customization of the system in terms of lessons learned and departmental inputs is continuing until mid August 2007

 

 

3.3 HRD Strategy

 

§         Targeted capacity building initiatives – skills development

§         Strong organisational support initiatives

§         Accountability through governance structures

§         Aligned to economic growth and development initiatives at all spheres of government

§         Monitoring & Evaluation

§         Annual performance reporting

§         Policies – utilisation of the 1% personnel budget; ABET for the PS; Learning Frameworks; RPL in the PS;

 

§         Presentation to Cabinet in September 2007.

§         Launch of HRDS in November 2007

§         Pilot in a provincial department & dpsa

§         Roll out in 27 departments proposed in November – January 2008.

§         Simultaneous roll out in all departments in January – March 2008.

§         All departments to have an annual HRD implementation plan for 2008/2009 FY.

 

 

3.4 Capacity assessments

 

G&A Cluster conducted assessments of the capacity of government to implement ASGI-SA initiatives

§         Freight handling in the Durban-Gauteng Corridor

§         Public transport

§         Micro-lending (MAFISA and SAMAF)

§         Licencing processes at DME

§         Vulindlela analyses

§         Key governance challenges and lessons lifted from each study for discussion at Cabinet Makgotla

 

  • Durban-Gauteng Corridor
    • Interoperability of ICT systems
    • Integration of planning of three spheres and SOE’s
    • Processing of Environmental Impact Assessments caused delays
    • Supply chain management processes caused delays
    • SETAs should be more proactive in developing the required skills
    • Ageing workforce

 

  • Public transport
    • Need for greater delegation of powers and functions and funding
    • Bureaucratic processes (e.g. granting licences) were slow
    • Contract management (e.g. bus subsidies) should be strengthened
    • Capacity in Transport department should be strengthened

 

  • Micro-lending
    • SAMAF: South African Micro-Finance Apex Fund (dti)
    • MAFISA: Micro-Agricultural Finance Scheme of SA (Agriculture)
    • Both launched in 2006 to provide credit services to the poor
    • Both underestimated the enormous demand for their services
    • Various challenges emerged from the study
      • Clients of schemes found paperwork challenging
      • Promoters of schemes did not have financial skills
      • Both needed monitoring and evaluation systems
      • Existing staff required training

 

  • Licencing processes at DME
    • Legislation set deadline and applications spiked
    • Bottlenecks caused delays
    • Some staff overloaded
    • Re-engineering of systems not required as flow of applications normalised

 

  • Vulindlela analyses
    • Challenges
      • Departments’ organisational structures out of date (inflates vacancy rates)
      • Departments experiencing difficulty in recruiting and retaining professionals
      • Job-hopping in the public service caused by differing application of the job evaluation system
      • Working environment (facilities, equipment, management) often a push factor
      • Application of the performance management system uneven

 

    • Recommendations
      • Executive authorities must consult MPSA when restructuring
      • Create a special remuneration dispensation for professionals
      • Institute Public Management Watch to monitor HR utilisation
      • Create coordination mechanism for uniform application of the JE system
      • Institute system of exit interviews to determine reasons for terminations

 

 

3.5 Single Public Service

 

AsgiSA and Second Economy initiatives require a re-engineered public service:

§         Innovation and new way of thinking to ensure seamless service delivery (including the use of ICT)

§         A multi-skilled, flexible, adaptable and versatile public service which is capable of implementing its policies

§         Strong leadership, skills development, public administration and management reform and integrated planning

§         An understanding across all spheres of government that there is a critical need to better integrate and share responsibility for service delivery functions based on cooperative relationships as enshrined in Ch 3 of the RSA Constitution

§         A review of regulatory and administrative systems to ensure better alignment across all three spheres

§         Mobilising public servants to become a revolutionary engine for social change and service delivery (Batho Pele)

 

§         As part of implementing the Single Public Service, work is currently proceeding through various initiatives including:

§         Institutional integration will be facilitated by Single Public Service legislation

§         Legislation has been drafted and approved by Cabinet for consultation purposes

§         Massive communication and stakeholder engagement process underway.

§         Access and e-Gov Strategic Frameworks to ensure co-ordinated and planned approach to the interface between government and the citizens in the delivery of services

§         Human resource practices, remuneration and conditions of service in all three spheres of government are being investigated

§         Investigations will be crafted into common human resource management norms and standards for the Single Public Service

§         Scenarios for the implementation of the Single Public Service are being costed

§         Scenario selected will be factored in legislation before tabling in Parliament next year

§         Anti-corruption frameworks for the Single Public Service developed

 

 

3.5.1 Government-Wide Access Strategy

 

§         Key features of the Access Strategy include:

 

    • Front-office reengineering to create a “single view of government” and the modernisation of the back-office processes and ensuring interoperable systems

 

    • A multi-channel approach, determining which services can be delivered to citizens by which channel (service delivery vehicle or medium)

 

    • The clustering of services into baskets of services in accordance with the service delivery needs of citizens (matching the channels and the services)

 

    • Ensuring that services are provided as close as possible to people, especially in previously marginalised areas

 

 

§         The Access Strategy includes various initiatives that are aimed at bringing government closer to citizens:

 

    • Thusong Service Centres – These are one stop, integrated community centres which provide access to government services and information. There are different models of Thusong Centres, for instance, Urban Malls and mobile services

 

    • Geographical Information System – The system will identify the current location of service points in relation to where citizens are located and it will assist in the development of service delivery spatial plans for government
    • Community Development Workers - They are special public servants who are trained to visit communities and households in sustained efforts to determine what services are needed and to assist people to access government programmes and services

 

 

3.5.2 E-Government

 

§         The e-Government Strategy advocates front-end and back-end integration:

 

    • Batho Pele Gateway Portal – This is a government-wide web-enabled portal that provides a single view of government services and which provides information about such services readily available in all 11 official languages

 

    • Batho Pele Gateway Call Centre – This call centre provides a toll free number and is staffed by agents who are able to assist people to access information about government services

 

    • Citizen Relations Portal is a government-wide web-based system for people to communicate and interact with government on various matters, via a single point of entry using a range of technological communication channels, for example, SMS messages, Internet, emails, telephone calls and facsimiles.

 

  1. Conclusion

 

The main purpose of this report was to provide a general progress report on the implementation of the Accelerated and Shared Growth Initiative of South Africa (ASGI-SA) and Public Service Response.  The report highlights a number of challenges that can prohibit government’s objective of growing the economy by 6 percent by 2010. These challenges were identified and they include a relative volatile of the currency, skills shortages of critical skills and poor logistics infrastructure.   Numerous strategic interventions have also been identified to address these challenges which include the specific projects of the Joint Initiative on Priority Skills Acquisition (JIPSA), increased public spending on infrastructure and skills development. The report also focuses on the Public Service Response and Interventions such as HR Connect, HRD Strategy, Single Public Service and Government Wide Access Strategy. The objective of these interventions is to ensure that government plays a role in accelerating economic growth.