Economic policy.pdf - Democratic Alliance

Creating Economic Opportunities for All
EXECUTIVE SUMMARY
At a time of almost unprecedented international financial uncertainty, the Democratic
Alliance (DA) today outlines our vision for the future of South Africa’s economy, in the
form our new economic policy “Creating Economic Opportunities for All”. Our policy
will give all South Africans the opportunity to take charge of their own lives and make
the most of their potential.
We see a future in which the government and the private sector work together in
partnership to grow an economy ripe with opportunities for all South Africans, most
especially for the millions of unemployed South Africans who have been denied
access to jobs and life changing opportunities. In our vision, every South African has
an opportunity to move forward to a more prosperous future and in so doing not only
improve their own lives and the lives of their families, but to reinvigorate our nation as
a whole.
The failure of the sub-prime mortgage industry and the resulting collapse of bank and
insurance companies in Europe and the USA has strangled credit lines and has led
to an international economic crisis on a scale unseen since the Great Depression of
the 1930s. Demand has dried up and South Africa’s major trading partners in the US,
the EU and Japan are in recession. India and China whose appetite for our
commodities is vital to our own economic prosperity are also facing slowing growth.
Around the world stock markets have collapsed; large financial institutions have gone
under or been bought out; and in the United States and Europe, governments had to
come up with rescue packages to bail out their financial systems.
Clearly South Africa is not immune from the challenges facing the international
economy. We are already experiencing large-scale job losses, the international
prices for our commodities have fallen and key high employment industries in the
mining, manufacturing and retail sectors are experiencing dramatic slowdowns.
South African policy makers have two responsibilities; not only do they need to
respond to the immediate problems caused by the credit crisis but also have to
improve the productivity of our workforce and facilitate further investment in the
productive capacity of our economy. This is the only way that our economy can
provide more opportunities for jobs to the millions of people who are sidelined by
poverty and unemployment and ensure South Africa’s future prosperity.
The DA’s economic policy allows for a virtuous cycle of skills development,
infrastructure and technology investment, improved productivity and increased
employment. Wage subsidies, the simplification of our labour and tax regulations
and the elimination of the skills development levy will cut the cost of doing business
and encourage employers to hire first time workers and improve their productivity
through on-the-job training.
In partnership with private sector contractors, the expanded public works
programme will be used as a mechanism for skills development and will be focused
specifically towards those on the sidelines of our economy whilst our opportunity
vouchers will allow our young matriculants to pursue self employment opportunities
or further study.