Hlomelang: Official Online Publication of the ANCYL
ANCYL Constitution: as amended and adopted by the 25th National Congress September 2015
Hlomelang: Vol. 13 No. 1: 25 July – 07 August 2016
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6

ECONOMIC TRANSFORMATION AND YOUTH DEVELOPMENT

The ANCYL has it goes into its National Conference after the second resound victory of the ANC in 1999, is faced with challenges of in 1999, is faced with challenges of assessing whether there has been improvement in the conditions of the youth, and under which circumstances has these developments taken place. The performance of the economy in the last 4 years has not changed the material conditions of our people in a greater degree. This is a challenge for the movement as a whole to design programs that ameliorate the situation.

Aims of Economic transformation

  • The South African economy bears a magnanimous structural problem and distortion. It is characterized by huge gulf of inequalities, poverty, and unemployment. The economy had experienced a two decade long deepest recession, and was virtually stagnant. There has been a net outflow of capital, which made investment in productive sectors impossible. It had a chronic trade deficit linked to an overly protective trade regime, which led to decline in competitive production, and lack of skills. The economy was also characterized by excessive concentration of economic power in the hands of minority group through a pyramid system of monopoly and large conglomerates. The agricultural sector and the rural economies are obsolete. The consequences include serious fiscal crisis, with high personal income tax rates accompanying a large budget deficit.
  • The central objective of economic transformation is to effect a structural effect a structural change in order to achieve sustainable growth, development and improve the standards of living of the people. The goal is to address economic imbalances and structural problems in all sectors, and ensure the development and empowerment of the historically disadvantaged through high skills and wages. The discourse also intends to create capacity and efficiency in the domestic production process for integration in the highly competitive global economy.

The global economy and South Africa

  • The influence of the global economy on our accumulation process is central and has to be well understood. Accumulation refers to the process of mobilizing inputs, exploiting and transforming inputs in the production system, and the selling and distribution of the resultant outputs. It also denotes a wider structural process that requires an analysis of the extent and origins of surplus and resource mobilization; the deployment of surplus into investment or consumption and the social groups and classes that benefit from these processes. It is this system of production and distribution that is likely to influence further investment and the reproduction of the particular form of the economic system.
  • The digression into the economic history of accumulation emphasis the magnitude of the challengnitude of the challenge that our own development confronts us with. We need to ask some penetrating questions as to the possibilities for rapid economic growth and development in South Africa.
  • At the heart of the debate on the nature and theoretical categorization of accumulation process in South Africa in the 1970s, which was not new and unique, but it was part of a major revision of orthodox approaches to development in the developing world. The issue was whether capitalism would progress in the colonial world in the same manner it was evident in the advanced industrial world? Many argue that capitalism will not have the same developmental effects on the productive forces and the relations of production in the developing world, the capitalist path would lead to underdevelopment, inequality, stagnation, cultural servitude and instability. For many non-capitalist path is the only hope for development, and this remains a profound analytical debate. To what extent can development be achieved without this enforced resource (capital) transfer from one economy to another?
  • Economic, social and political interaction within the global economy has intensified over the course of human history. In the past it was glacial and not easily recognized, it was the growth in trade that initially increased the immediacy and intensity of interaction. The of interaction. The expansion of the capitalist system in the 19th and 20th centuries was a qualitatively new dimension of global interaction and profoundly shaped the accumulation processes in virtually all of the new nation states of the world economy.
  • As the capitalist system has come to dominate the world economy one of its defining features has been the cyclical nature of its development. The stronger and healthier the economies of the advanced industrial countries the more they are advocates of free trade and liberalization. The more they experience recession; they revert back to protectionism. In recent decades there has been a strong trend to liberalize industrial product markets, certain services and financial markets. These pressures are in large measure consonant with cyclical nature of the previous period of globalization. What is central is that these liberalizing pressure had not run their cyclical course when a new impetus was added in the form of the information technology revolution that is now upon us. What is still open analytically is whether this will qualitatively and chronologically alter the globalization process?
  • The major effect of information and communication technology is felt in the production process. The key impacts are speed, precision and rapid diffusion of information. This has reduced the time it treduced the time it takes to complete the production chain for any one product, made resource utilization more efficient and altered the interface between producer and consumer. As with all technological change the ratio of the use of capital goods and tools of production to actual workers has changed in favor of the former. As a consequence, the patterns of employment are changing more rapidly and the extent of employment depends on the speed of adjustment of the economy to a greater degree than before. An inability to adjust means an equally rapid structural deterioration in an economy`s employment creating ability.
  • It is therefore apparent that the political and social instinct to protect and isolate an economy and a society from this process will be strong. The emergence of this view in the developed world shows the extent to w extent to which the impact of the new global economic forces now affects all economies. In the developing world where benefits of globalization have been far more meagre, the view is understandably strong. The question is whether such isolation will in fact be a solution?

Benchmarks

The subtle problem that confronts us was the benchmark against which the structural problems in the economy were being measured. This is important because in practice it would influence the precise nature of the policy action. The real tension in the alliance over the economic restructuring is whether the market is our benchmark or whether a more political and social benchmark can be used.

Our vision is one that espouses the intervention of the state in the accumulation process to promote development. The intervention of the state does not imply that economic forces can be ignored or that the market is to be abandoned. The state would promote partnership with private capital to accelerate the process of accumulation and investment in the productive inputs, and promote the role of the market.

Growth strategy / or path

Since 1994, South Africa has introduced major changes to domestic political, social and economic structures. After years of apartheid induced isolation from the global economy, countries lifted sanctions and companiesanctions and companies ceased disinvesting from South Africa. Profitable opportunities were opened up for South Africa to reintegrate its economy into the global economy.

An important element of South Africa`s in the restructuring of the economy to prepare it for the challenges in the global economy was the adoption in 1996 by government of the Growth, Employment and Redistribution Strategy, (GEAR). Its key tenets include fiscal deficit reduction, trade and exchange liberalization, restructuring of state assets and promoting skills development. Achieving a balance between greater openness and improved competitiveness, while pursuing a process of industrial restructuring aimed at expanding employment opportunities and productive capacity, has been a major challenge to us.

Despite the nature of these challenges, the movement has made courageous strides in achieving some key critical factors in the management of the economy. The movement has managed to effect a balance in the macro-economic dynamics: we reduced the fiscal deficit below targets, inflation brought down to 30 year low until recent pressures, and the economy has moved away from an intolerable debt situation. The South African economy is now very different in respect of its costs of production and its competitiveness. There has been fundamental reform in the budgeting system, (through the Medium Term Expenditure Framework which bring transparency), and we have succe, and we have succeeded in significantly reprioritizing spending towards health, education, welfare and infrastructure investment. The progressive tax system has been introduced which has significantly led to tax reduction on the poor and middle income earners thus leaving some money in their pockets for productive investments.

We have been able to capitulate the current account, the capital account, the gross gold and foreign reserves, which were in deficit, which would have made it difficult to stimulate the economy under those circumstances. The SARS has also shown improvement in its tax collection efforts, thus boosting the central fiscus, releasing substantial amounts and expanding on the social expenditure. Our prudent macro-economic management led us to escape the impact of the Asian crisis in large measure unlike other emerging markets economies, though this led to a slowdown in growth.

Despite these achievements, the country still has to move hurdles to realize growth and development of the economy, and enhance its competitiveness. The country is still characterized by inequalities, high levels of poverty and unemployment, with the youth as the highly affected. The economy still experiences chronic structural problems (labor market stabilization, savings and investments, and skills and productivity), hindering it to satisfy the demands for development and growth. The GDP growth has been below expectations (about 1pectations (about 1% in the last two years), formal job losses have continued throughout the 1990s, and unemployment has risen to staggering proportions.

The ANC holds a view that macro economic stability remains a necessary condition for growth and job creation, but it is not a sufficient condition for growth and development. And it is convinced the economic fundamentals as laid through GEAR are sound to effect the structural change in the economy. What is needed are measures and consensus on the Growth Path or Strategy that will accelerate delivery of services.

To realize growth and development of our economy entails identifying what is that adds to the economy. The experience of other countries suggests that this can be brought about by:

  • Promoting the development of human and social capital; and
  • Generating income and employment opportunities for the poor.

South Africa has highly developed formal sector of the economy, and institutions to facilitate these.

Industrial strategy

Industrial strategy is a complex matter. It is difficult to define an industrial strategy when there are differences in the concept of the benchmark of what is the correct position. Over the last few years this has been a very vexed question because it has led to differing views on the existence or absence of an industrial strategy. The more the observer sees thre the observer sees the benchmark as direct intervention in production by the state the more elusive that strategy that we have actually adopted. For those who see the market as some absolute arbiter of economic efficiency and well being then our actions are too subtle by far.

From the analysis of globalization, our macro strategy essentially attempted to move our economy onto the same trajectory as that of the world economy`s leading edge and a series of sectoral and micro interventions that would support this in the context of particular industries.

South Africa achieved a high level of industrialization over the past century, the pattern of these posses special problems for the shift that is required to meet the development needs of the country. More gains could have been made had industrial development been planned so as to link the activities of one sector with those of other sectors. To undo these, our strategy encourages backward and forward linkages in production. The objective of world competitive production in all sectors and stages of production for domestic consumption and exportation underpin it. The strategy needs to ensure the enhancement of technological and scientific capacity, enhancing the use of information and computer technologies and business services and creating regional production systems. It should enhance benefaction.

It would be combined with a competition policy, which would improve possiwould improve possibilities for new enterprises to enter restricted spheres of production.

Restructuring of SOE

The racially based distortions in the provision of infrastructure and the need to upgrade it in order to modernize the economy meant that we had to have a strategy for the provision of this infrastructure. The restructuring of the state assets aims to achieve this by getting public corporations to undertake new investment in infrastructure and to ensure better utilization of resources.

As a consequence of the fragile macroeconomic and fiscal position that we inherited, financing a large infrastructure drive through public corporations as they existed could have been counter-productive. To effect a proactive role on the part of these corporations, a process of restructuring had to take place aimed at re-engineering and attractind attracting capital and new technologies into the assets.

The proceeds of restructuring have been mainly reinvested back in these enterprises to enhance their capacity to participate in the infrastructure delivery program and promote economic empowerment projects by supporting SMMEs.

Labor market and human resource development

The reform of the labor market in SA was and is fundamental. Reforming the labor market in order to establish basic rights and obligations and allow effective industrial relations and dispute resolution between capital and labor on the basis of a reasonable degree of equity is an imperative.

The major reforms in the labor market have been in the Labor Relations Act, the Basic Conditions of Employment Act, the Skills Development Act and the Employment Equity Act. These have all had an effect of providing a more adaptable labor market if the actors can use the legislative framework to full effect. The challenge has always been to ensure that the labor market is dynamic and adaptive - this applies to the supportive human resource development institutions.

The human capital accumulation has become a major element of new growth theory. Training and the skills level of South African workers is low by international standards, even when compared to other emerging markets. How can this be turned around in the context of South Africa`s labor marketfrica`s labor market and education and training system?

Financial sector and investment

Access to capital and other financial resources for the poor have long been recognized as one of the critical factors in development. In 1990 multilateral banks allocated about $6 billion for rural credit to developing countries, but only 5% reached women and youth. The reasons for excluding the poor and the informal sector from access to capital, range from sheer cost of capital in a country, to poorly developed capital markets or perceived high risk of repayment. But whatever the reasons, the effect of such exclusion is that an enormous amount of production is left idle.

Issues of access to credit and capital can be dealt at two levels. The first is the way the state mobilizes funds for development projects of a social and physical nature. The second is the way commercial banking sector extends credit to previously excluded groups like the poor, women and rural communities. The state has several development finance institutions, and they are developed in response to market failures to enhance development. Some of these institutions apply strict adherence to commercial banking criteria when issuing loans for development projects or charge high rates of interests.

In raising capital, the Black Economic Empowerment Commission (BEEC), has proposed the issue of prescribed which will require longch will require long term capital institutions such as pension funds and life assurance to increase the ratio of assets they hold in public bonds and reduce the ratio of assets held in equities. The introduction of a Community Reinvestment legislation to encourage financial institutions to meet the credit needs of the community they operate in should be considered.

The BEEC also proposed that in achieving development in the rural areas, the state should invests a portion of the privatization proceeds in a development agency, and this should be matched by the private sector. It wants the private sector to participate in the rural development and other infrastructure and economic initiatives in the rural areas. This would support the initiation of SMMEs and community co-operatives.

Agricultural and land reform

The area that has barely attracted any attention but is a fundamental part of the economic reform is the restructuring of the inherited agricultural support system to remove subsidy and price support mechanisms. Along with the change in the price of water this will have an important impact on the nature and pattern of crop production and will increase trade in agriculture products.

Agriculture has proven to contribute in a bigger way to the growth of the GDP. The monetary value of this sector is substantial enough to make a major difference in the lives of the poor. What aref the poor. What are needed are a fast-tracked land reform and some structural reform undertaken already. Agricultural production includes a wide range of products and processes each with its own set of market conditions. These process together form the Manufacturing-Agricultural Complex (MAC), the growth of which has been steadily rising over the years as evident by their increasing contribution to GDP. It is also an area where the sector of co-operatives has existed for years and has proved success.

The MAC has special importance in the broadening of the economy and promoting rural development. Firstly, an increase in agricultural production would result in the creation of relatively more jobs throughout the economy than could be achieved by any of the same order in any other sector. Secondly, a rise in the level of incomes of the rural population mean that a higher proportion of their incomes could be devoted to the purchase of manufactured goods thus expanding demand in the domestic market for these goods.

The potential income and employment that can be generated by small scale agriculture and agro-industry can give rise to the development of local economies that would later include banks, insurance, postal and telecommunications services, all of which entail the recruitment of higher levels of skilled personnel.

Black economic empowerment

One expression of democracy and redof democracy and redress is the concept of black economic empowerment. Developing a process of substantial empowerment of those previously disadvantaged by apartheid is fundamental to economic reconstruction. In the face of globalization black economic empowerment as an essential component of the socioeconomic empowerment strategy we need to use it to counter the adverse effects of globalization.

For it to make a meaningful program for delivery, it needs to be defined precisely and be coordinated. The BEEC in the document entitled, A National Growth Imperative, the BEEC says empowerment should be seen as an alternative development strategy to undo all the manifestations of economic disempowerment and its primary aim should be to improve the conditions of life and livelihood of the previously disadvantaged communities.

Empowerment must be aligned with broader project of national transformation. Its objectives must be sufficiently broadened to include expansion of equity participation, democratization of the corporate landscape, employment creation, skill development and the facilitation of a black business class. Meeting this challenge entails rendering our economy competitive in world terms. Competitiveness, in turn requires a vast improvement in the total quality and volume of goods and services produced in the country.

The development of the small business sector is a route towards achieving the objective oing the objective of economic deracialisation and falls within the empowerment program. Government through the procurement and tender process, and the restructuring of state assets can facilitate the growth of this sector.

Physical and social infrastructure delivery

South Africa is characterized by the uneven spread of infrastructure, with black urban areas bearing an inferior and depleted infrastructure whilst the rural areas exhibit virtually nothing. The development of physical and social infrastructure makes a contribution in the development and growth of the economy.

The first point is that the building of bridges, clinics, schools etc creates jobs that may otherwise not materialize for the vast number of the unemployed in the underdeveloped areas. Secondly, large expenditure in infrastructure spurs growth as the demand for equipmd for equipment and material is translated into new jobs, the wages from which are likely to be spent on necessities. Thirdly, the development of infrastructure makes possible a string of other economic activities that add value to the economy and, most important, create new jobs, encourage skills and generate incomes.

Social security and social plan

As the country is stark with high levels of poverty and inequality, the structural changes in the economy have exarcabetated the situation, as many people lose jobs in the formal sector of the economy. Poverty remains a concern, especially amongst families and largely it affects the growth of children.

One of the major fiscal successes achieved over the last few years by the movement has been the capacity to divert resources to direct poverty relief activities. The introduction of the MTEF as the basic budgeting method is also a factor in these changes. However, as resources became available it was decided to focus on specific poverty relief projects in the form of Community based Public Works programs, Working for Water, Clean and Green Living Campaign and the Land Care Campaign, which provide jobs for women and youth in the rural areas and are also linked to infrastructure development.

The review on the social security system is an endeavor to establish relevant and sustainable safety nets to protect the vulnerable and the vulnerable and the unemployed in the era of globalization. These conditions can be offset by an integrated redistribution strategy. We should effect redistribution strategy through education and training, these are the policies that can largely foster equal opportunities. The strategy, in the long term must as far as possible, reduce the number of people who remain in need of state social and poverty relief grants.

International engagement

Under the circumstances of severe inequality in the global governance and distribution of resources, do we abandon the ship of global integration or not.

The ANC recognizes that as a country we have an ability to induce benefits out of the present global arrangement of globalization. It believes this could be achieved, not by protected markets, but the democratic state must create the possibility for sustained economic success through:

  • the expansion of the domestic market to increase its demand;
  • raising the skills levels of both management and workers;
  • modernizing the technological base of the economy;
  • building a regional economy capable of providing a better life for all the peoples of Southern Africa;
  • improving marketing within and access to the world economy, and opening up our country to the progressive impact of the international mobility of capital, skills, goods and servskills, goods and services.
  • achieving the Renaissance of Africa by first campaigning for the scrapping of debt, and improving the infrastructure of the continent so it becomes a hub for investments; and
  • Vigorously campaigning for reform in the global financial and trade architecture.

YOUTH DEVELOPMENT AND THE ECONOMY

The situation of the youth in this country is a depiction of the abnormal society they grow in. The high level of unemployment in this sector is as a result of the non-performing economy of South Africa.

The RDP recognizes the status of the youth in this economy. It further indicates that there is a need for a strategy to ameliorate the situation. However, the RDP argues that programs on youth should not just be seen as a job creation measure, but as youth development and capacity building. Youth development more generally must focus on education and training, job creation, and enabling young people to realize their full potential and participate in the society and their future.

The vision of the National Youth Service to engage youth in the building of thriving communities, by harnessing the energy, skills and resources of young people through active engagement. This vision intends to provide a long term and effective means of reconstructing the society through physical rehabilitation, renovation of community resources as wemunity resources as well as building the social fabric of communities.

The overall government priorities of infrastructure investment, agricultural development and the broader development plan coincide with areas highlighted by the National Youth Policy 2000. The youth need to ready themselves to take advantage of the opportunities these grand plans provide, in the creation of own self employment (small business initiatives and establishment of co-operatives), skills acquisition through involvement in community projects (building and construction), establishment of consortia to buy shares in the restructured state assets with assistance from the National Empowerment fund, and bid for tenders and negotiate state procurements. The recently released Mining bill also offers opportunities for the youth to engage in small-scale mining and exploration.

It is through initiative and creativity that the youth can contribute in large measure in the creation of wealth in the communities, thus stimulating economic activity in the local communities.

PROGRAMME OF ACTION

What the ANC Youth League should be doing in three years?

As indicated somewhere, the Youth League since its formation in 1943 organized and mobilized the youth behind the banner of the national liberation movement led by the ANC to fight apartheid oppression and racism. Apartheid has been defeated, April 27, 1994, markedpril 27, 1994, marked that final onslaught to this crime against humanity.

Apartheid colonialism has left our society with an enormous legacy of inequality, social exclusion, poverty, disintegration of the society, racism, and the politically and economically stagnant country. The victorious forces against apartheid face a daunting task of transformation, reconstruction and development of this society. The task entails effecting meaningful change in the regulation of the society, promotion of human rights, closing the gap of racism, enacting policies that effect transformation of the architecture of the institutions that regulate development and human emancipation, and create a better life for all.

The national liberation movement defined and elaborated on the task through the Reconstruction and Development Programme (RDP). This is a developmental framework that mobilizes community to participate in their reconstruction and emancipation.

ANCYL as part of this movement is also committed to this task. It has to continue to pursue its duty of leading the youth to be full participant in the programme. Since 1994, when the democratic government took office, the period was largely characterized by policy development and the endeavor to craft strategies to realize the objectives of the policy. It is during this period that we began to see the youth drifting away from the task of being their own liberators, that they see evors, that they see everything as a responsibility of government. It is also during this period where process to realize this better society became so much complex, that the majorities in our communities� feel isolated and disengaged.

Whilst, the realization of a better life and the caring society lie in the commitment that people and communities make. It is the communities that can make a difference in their lives and promote democratic governance, and sustainable development. The change that has engulfed our society has produced several unintended consequences, i.e. massive loss of jobs, unemployment has increased, and there is a continuing presence of inferior infrastructure, lack of capacity of institutions, lack of skills and the economy is producing growth with no jobs.

The youth as sector has been highly affected by this scenario. They are unable to acquire relevant ere relevant education; they face a hostile labour market, and grow in an abnormal society. Any attempt to deal with their conditions require a multi-pronged strategy that encompass those who never saw an entrance to any kind of an institution of learning, those who dropped out of the learning discourse, and those who interacted with learning institutions but are not thoroughly prepared to take their right full roles in the society. A mechanism to ameliorate these conditions should put youth in a position to get employment without hassles, inculcate innovativeness in them, and develop their patriotism so that any productive activity they engage in contributes to the total reconstruction and development of the society and strengthens nation-building.

The National Youth Service (NYS) as defined remains the relevant programme. The programme proceeds from a strategic premise that great possibilities exist for youth development, in cooperation with partners in the society, to overcome the conditions of disengagement and disillusionment. It recognises that the development of this sector is an essential prerequisite for a sustained economic growth and development. The programme further recognizes that youth development requires a massive mobilization of resources, in order to leapfrog stages of its development and to benefit fully the entire society. Failure to act now may mean the continuation of economic stagnation, the inability on, the inability to deliver basic services, rebounding to the disadvantage of all our people.

MINIMUM REQUIREMENTS FOR SUCCESS

Youth development challenge can no longer be addressed by the isolated efforts of individual organizations and agencies carrying out their specific development strategies. The task is one of overcoming the inequalities and lack of skills and initiative, social exclusion and the decline in the employment opportunities.

The strategy for youth development must emphasize a carefully selected set of priorities to be implemented simultaneously, having due regard to the correct application and phasing of the resource allocation. The practical operationalisation of the Umsobomvu fund is an essential trigger for resource mobilization and material support that youth development would receive. The objectives of the National Youth Service need to reverberate in any planning about the youth that any of the state departments undertakes, i.e. the Defence National Service. For the success of the coordinated approach it is essential that all the state institutions speak with one coordinated voice in elaborating youth development and skills empowerment. The state then through the National Youth Commission has to effectively interact with all agencies concerned with youth and their development, and those that their decisions and programmes impact on youth one way or the other.ne way or the other.

Fundamental to success is the capacity in the Youth Commission and the organization - ANCYL, both individually and collectively, to carry such a task. To ignore this factor is to condemn the exercise to failure.

The key priority areas in which the programme for youth participation in the economy could be implemented simultaneously and in interaction with one another are:

  • Lobbying, and policy research and development;
  • Learning and skills development;
  • Industry and SOEs restructuring;
  • Participation in community development projects;
  • Self employment creation initiatives;
  • Economic knowledge creation and stimulation of debates;
  • Smarting out partnerships and alliances; and
  • International engagement

Lobbying, and policy research and development

A strategic objective of crucial importance is the acceptance of our perspective on youth development both at the ANC leadership level and the Cabinet. That would mean support and integration in the organization and government plans and activities. For this to happen we need to strengthen our policy development and research capacity. We should request that in the deployment of personnel in the ANC Policy Research Institute, one researcher should be designated to fhould be designated to focus on youth development, nature of the youth and policy implications and interventions on youth issues.

Through the Youth Commission we need to investigate the establishment of monitoring systems to check and monitor state departments plans and programmes and how do they impact on the youth, and how many youth participate in these programmes and projects. Almost the similar system that the Human Rights Commission is using to monitor the effectiveness of government activities on delivering services to realize social and economic rights. This would give us an idea and the quantitative information on the effectiveness of government projects in changing status of youth, and would assist in guiding future planning. We need to engage departments constructively both at an organizational level and the Youth Commission level, an improvement of communication.

We must engage Parliament and its committees so that in the debates for budget allocation the issue of youth development needs to be considered seriously, the building of recreational facilities etc. We need to strengthen our parliamentary liaison and empower the youth in parliament with relevant researched policy positions.

We need to fast track the restructuring of the Secretariat of the National Youth Commission and capacitate it to effectively lead government and the society on designing plans for youth development. There should be an evaluationld be an evaluation of the current existing relationship between the National Youth Commission and the Provincial Youth Commissions, and the envisaged youth desk at local government level. If there is no consistency in the operations of these structures there would be problems in terms of realizing youth development. The youth need to be in the forefront of economic stimulation activities in the local communities. The National Youth Council needs to be strengthened to become an effective representation of youth in the NEDLAC activities, effectively arguing with industry and labor on youth employment creation and conditions. It should be able to lead civil society on endeavors to create opportunities for the youth to participate in business activities.

Learning and skills development

Human resource remains a firm pillar that guarantees success, competitiveness and sustainability of growth and development in the economy. It remains paramount that we invest much of our resources and time in this area of strategy. We must ensure that the outcome of the education transformation is a pillar of success for the society to realize its capacity. It is important to assure us that the education system produces the relevant graduate that our society requires to satisfy its developmental needs. There should be a closure of gaps between what the education system provides as knowledge and what the soce and what the society and the labor market require. These would easy the route for the youth to enter the labor market and employment. The high demand remains of campaigning for an equitable and articulate national education system which is capable of reducing the high levels of lack of skills in the economy. This is a long term achievable objective, but it requires attendance now.

ANCYL together with the Youth Commission should engage the Education department in designing strategies on how to create reasonable relationship between institutions of learning and business / industry to deal with demand and supply in as far as employment opportunities are concerned, the mentorship and in service training offered to students by companies as preparation for labor market environment. Institutions of learning or the Education department should have an access to an information on how man on how many students this and that company is able to accommodate to offer in service training and mentorship, and even make the allocation of these students to the industry.

Skills could also be acquired in the context of the National Youth Service. Once implemented it would require the youth to participate in community development projects in the planning and the actual operation. This would also serve as a transitional bridge between schooling and the labor market environment. The establishment of co-operatives could also make head-ways where in the learned youth which is unemployed could be re-trained in other fields to offer assistance to other community members in services like marketing, financial management, business plan and skills training.

Industry and SOEs restructuring

The industry in large measures provides jobs in the society. Our industry is undergoing a process of change fostered by the changes that taking place in the bigger economy. The industry is changing in order to fit within the paradigm of the global economy and be competitive in the global market. So are the State Owned Enterprises for their sustainability and viability as business units, they need to be competitive in the provision of services. The attainment of best results by industry requires skilled human resource, and that is derived out of education and training.

The industry sho

The industry should contribute in a meaningful way in the development of human resource in the country. This could be done by offering bursaries to the needy students, facilitating relevant in service training and part time jobs for the youth during their schools vacations with the aim of integrating them in the system after completion of studies. These kind of training focuses on adaptable skills, and giving early exposure to youth will prevent the atrophy of any skills they may have acquired in their education. The training gives youth immediate job competence, transferable skills, and good motivation and discipline. The organization should engage big business on this approach and make it realize that is beneficial to employ some one who already has been exposed to the work environment and knows what exactly the company is all about.

The restructuring of SOEs offers variety of opportunities, either in the buying of shares, outsourcing and tendering processes. The youth need to establish consortia to acquire shares, offer services needed by the SOE or tender for specific tenders. This would be a contribution in the support and development of small business. Through the engagement with relevant departments, the SOEs, we could negotiate that in each an every tender, share acquisition or outsourcing there should be a requirement of 10% of youth participation.

Participation in community developmentmunity development projects

In the Medium Term Expenditure Framework (MTEF), the government has increased the infrastructure development expenditure to R8 billion, there are several other allocations related envisaged to be spend in the improvement of life. For the infrastructure investment programme to be meaningful to the people it requires communities to take a lead in deciding what is meaningful to the improvement of their conditions.

The faster pace of delivery in infrastructure requires a certain level of skills in the communities. It is through the National Youth Service that we can be able to deliver on this objective. The youth, as a group that usually posses knowledge and skills, need to be mobilized to participate in the development of infrastructure in the communities, either in the form of public works programmes, private sector engagement and or as community initiatives. Their participation should also prepare them to manage and sustain these community properties It is through these kind of processes that the youth would learn new skills, and would see opportunities created by the new infrastructure, they would engage in business ventures and stimulate local economies.

Self employment creation initiatives

The investment in infrastructure development would create an environment for creation of jobs, new business ventures and ultimately stimulate timately stimulate the local economy, and create wealth in the communities.

The youth need to take an advantage of these programmes. These would lead to reconstruction of roads, sanitation facilities, building of schools and clinics, irrigation schemes for agricultural production etc. The youth need to see these in a positive light and engage themselves in the creation of small business and small-scale farming. More generally the issue concerns the role of SMMEs in the overall development of an emerging economy, and the degree to which this sector can act as a stimulant and basis for broad based and inclusive grout and development. This approach focuses on the provision and fulfillment of basic needs of the weakest members of the society by training and supporting individuals in activities that increase supply of goods and services, thereby also expanding demand and diversifying rural production activities.

The attitude that the majority of youth hold is negative towards these kinds of activities because these do not translate into wealth in the immediate term. We need to encourage initiative and innovativeness. We need to encourage youth to advantages on opportunities provided by the process of economic restructuring and community development, and in that they would creating employment for themselves and the community at large. Counseling and guidance workshops would play an important role in this regard. As an organizatid. As an organization we need to take a lead make the youth to interact with achievers in business and adopt role models. We must encourage and facilitate the adoption of some of the youth business or project initiatives by big business and industry as part of mentorship. We should provide leadership for the Local Youth Chamber of Commerce or lead in the formation of these structures in the communities.

Economic knowledge and stimulation of debates

The objective of our struggle is the total banishment of poverty and inequality. The economic restructuring process taking place is aimed at creating conditions leading towards the attainment of a better life for all. The better life for all is not realizable in a highly distorted economy like ours.

This process is taking place within a global framework characterized by faster movement financial capital, liberalization, spinning in high propensity of technology, and the unacceptable levels of inequalities. Ours is an endeavor to formulate a framework seeking to maximize the benefits and minimize the risks to our strategic objective. It is important that as an organization we lead the society in understanding the intricacies of economic transformation, and the strategies to achieve high growth and development.

The youth as representing the future society need to know and understand the history of their economy and why certain st and why certain strategies were opted above others, and what the economy is capable of achieving. The youth of today is not an activist conscious youth of the pre-1994.

Mechanisms to stimulate debate amongst the youth on this fundamental question that determines the future of our country need to be found. First, through the National Youth Commission, we could launch an annual memorial lecture named after Harry Oppenheimer, and engage De Beers and Anglo-American to fund this activity. Together with these companies design a price giving system to one or two tertiary student whom manages to write an informative, eloquent essay on the topic that raises and debates fundamental questions related to the economy of South Africa. For instance at the start we could say: "An essay on the history of mining in South Africa, and its future in the economy of South Africa". Theot;. The project can be piloted through SRCs in campuses, and the memorial lecture to be addressed by a prominent politician or businessman and the prize giving ceremony will coincide with the Youth Day, June 16, every year and the prize could be in the form of a bursary. Secondly, we could lobby Cabinet on the initiatives of youth camps annually where in sessions are organized to debate national issues that faces the nation and the youth. This will provide opportunities for Ministers dealing with economy and investment to engage the youth sector on the various questions in the economy.

The organizations needs to hold workshops, seminars and have quarterly news brief on economic and developmental issues engaging the researchers, business leaders, senior civil servants and politicians on these issues. There should be an encouragement of readership on economic issues.

International engagement

The nature of the global arrangement requires that we carefully identify our alliances. As member and important participant in several international organizations, we need to put forcefully on the agenda of these organizations the issue of global economic reforms. We need to mobilize forces that share and at most agree with our vision for the new global financial and economic setup. The failure to transform the nature of the present global arrangement is a condemnation to the develnation to the developing world to the permanence of poverty and dependency.

We must engage the International Union of Socialist Youth (IUSY) and World Forum for Democratic Youth (WFDY) on the global economic reforms with specific focus on the transformation of the IMF, World Bank, and the World Trade Organization (WTO).

We must engage Southern African Youth Forum on relevant macro-economic reforms, both in the region and within regional states, which needs to be followed to attract investment, facilitate growth and development, and create employment. The success of our regional integration would booster our position in the global market, and would increase our bargaining power in the alterations of the global governance. We need partnerships with Southern African Students Volunteers Organization (SASVO) to participate in the development projects in the region to realize the objectives of the African Renaissance.

Smart partnerships and alliances

Our strategies intend to make communities their true liberators. For us to succeed we need to curve out partnerships and alliances with civil society. That will put us in a better position to engage and influence the larger society on our plans and objectives. We need to define, build and strengthen our partnerships and relationships with the following:

  • Trade union movement - for discussing and understanding the la understanding the labor market condition, youth working conditions and skills development projects.
  • Black Business Council - for youth mentorship, in service training programmes and support of youth business initiatives.
  • Agricultural Unions i.e. Agri SA & NAFU - for guidance and assistance in the youth agricultural initiatives - farming, production, marketing and financial sustainability.
  • Co-operative movement - together with the trade union movement engages and strengthens this movement and makes it accessible to the youth.
  • Afrikander youth - for partnership in sharing resources and experiences.
  • Local business/ development forums - for the creation of synergy in our developmental objectives and the participation of youth.
  • Institutions of learning - together with the Youth Commission create an understanding of the interests of the youth and define the role that the education system should play in empowering the youth to deal with these interests.

The fundamental tenet of the idea on youth activities should be to make training an important ingredient in precipitating viable clusters of economic activities. It is this component, which if implemented across all sectors of the economy with different emphasis in each province depending on the potential that would begin to broaden the economy and make growth and developmentrowth and development more inclusive