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Department of Trade and Industry

Department of Trade and Industry. DRIVING COMPETITIVENESS: TOWARDS A NEW INTEGRATED INDUSTRIAL STRATEGY FOR SUSTAINABLE EMPLOYMENT AND GROWTH Dr David Kaplan Chief Economist, DTI May, 2001. 1. Why an industrial strategy?. 1.1 A good manufacturing strategy promotes investment

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Department of Trade and Industry

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  1. Department of Trade and Industry DRIVING COMPETITIVENESS: TOWARDS A NEW INTEGRATED INDUSTRIAL STRATEGY FOR SUSTAINABLE EMPLOYMENT AND GROWTH Dr David Kaplan Chief Economist, DTI May, 2001

  2. 1. Why an industrial strategy? 1.1 A good manufacturing strategy promotes investment 1.2 Global trends - the implications for SA manufacturing and the DTI

  3. 2 The changing world - the growing importance of markets 2.1 Exploding markets; new international trends The expansion of market forces in the modern era The limitations of the market New markets, new role for the state: towards a rules-based domestic economy for the people Market rules & market failure: industrial strategy in South Africa

  4. 2 The changing world 2.2 Balancing the rules for domestic and international markets • Domestic markets and the role of competition policy • A broader mandate: objectives for DTI industrial strategy: • BEE, SMMEs, Employment • The impact of new technologies is transforming the role of the state • Balancing acts: public interest and economic growth • Effective regulation requires cooperation across government

  5. 2 The changing world 2.3 Globalisation: Whom does it really benefit? Levelling the playing fields? Multilateral economic institutions The importance of bilaterals and multilaterals

  6. 3 Current Industrial Policy 3.1 The learning years: 1994-1999 3.2 Policy logic and coherence: 1994-1999 3.3 Policy design: 1994-1999 - best practice? 3.4 Industrial performance: did our policies work?

  7. Current Industrial Policy: An AssessmentTable 1: Manufacturing - Exports

  8. Table 2: Manufacturing - Labour Productivity

  9. Table 3: Manufacturing - Investment

  10. Table 4: Manufacturing - Value of Sales

  11. Table 5: Manufacturing - Employment

  12. 4 Towards an integrated industrial strategy framework • 4.1 Key factors affecting manufacturing: ICT, innovation and demanding customers • 4.2 Old modes of competitiveness count for much less • 4.3 SA manufacturing: what must be done? • Don’t rely on the old ways • Don’t bank on cheap labour • Forget protection • Do pay attention to innovation • Enhance knowledge capacities

  13. 5 Continuities and new directions 5.1 Continuities: preserving the best of the old 5.2 New directions: towards a knowledge- intensive manufacturing sector 5.3 An integrated industrial strategy for the region 5.4 Phasing in policy changes 5.5 Our history, our special concerns

  14. 6 Making the change to a knowledge-based economy 6.1 Constraints • Human resources • Infrastructure 6.2 Tensions • Breaking down departmental barriers • Employment levels

  15. 7 Making it work: indicative policies 7.1 Skills development 7.2 Acquiring and creating knowledge 7.3 Information and communication technologies 7.4 Networks and best practice 7.5 Consultative policy making

  16. 8 Government implementation of the new industrial strategy framework 8.1 Extending industrial policy across departments 8.2 Business and consumer regulation, competitiveness 8.3 Joined-up government: working with other state departments

  17. 9 Government as a learning organisation - the importance of monitoring and evaluation

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