PROVINCIAL SPATIAL ECONOMIC DEVELOPMENT STRATEGY

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PROVINCIAL SPATIAL ECONOMIC DEVELOPMENT STRATEGY
(PSEDS)
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National Spatial Development Perspective (NSDP)

• The key objectives of the NSDP are
• Provide a framework for future development
• Common reference point
• Identify key areas to achieve positive spatial
  outcomes with government spending
• Provide strategic response for a given time frame

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Categories of Development Potential
Category Description
Innovation and Experimentation RD Application of technology to production processes
Production High value differentiated goods Production of niche markets (eg manuf, specialised agric
Production Labour-Intensive Dependent on proximity of good, cheap transport linkages to natural resources unskilled and semi-skilled
Retail and Services Retail, catering personal services. Requires enterprises and people willing and able to pay for services
Tourism Tourist attraction, good transport routes, safety high-quality restaurants hotels
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NSDP

• Instrument for policy co-ordination
• Contributing to the principle of co-operative
  governance
• Ongoing process of elaboration, refinement and
  revision
• Informed consensus on nations spatial priorities
• Normative principles to guide all spheres in
  infrastructure investment dev spending
• Economic Growth
• Govt spending on fixed investment
• Focus on people not places
• Opportunities channeled into activity corridors
  and nodes

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Intergovernmental planning principles

• Local govts IDPs identify comparative advantage
• National guidelines principles should inform
  planning
• Each sphere own distinct dev and planning tasks
• Spirit of co-operative governance whereby plans
  of one sphere support those of another
• Critical synchronization of IDPs to NSDP
  objectives

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Govts National Spatial Dev Vision

• SA will become a nation in which investment in
  infrastructure dev programmes support govts
  growth dev objectives
• By focusing eco growth employment creation in
  areas where most effective sustainable
• By supporting restructuring where feasible to
  ensure greater competitiveness
• By fostering development to the basis of local
  potential
• By ensuring that dev institutions are able to
  provide basic needs

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Provincial Growth and Development Strategy (PGDS)

• The Objectives of the PGDS are
• Eradication of extreme poverty and hunger
• Achievement of universal primary education
• Promotion of gender equality empowerment of
  women
• Reduction in child mortality
• Improvement of maternal health
• Combating HIV-AIDS, malaria and other diseases
• Ensuring environmental sustainability
• Dev a global partnership for development

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Provincial Priorities of the PGDS

• Sustainable governance and service delivery
• Sustainable economic dev and job creation
• Integrating investment in community
  infrastructure
• Dev human capability
• Dev comprehensive response to HIV-AIDS
• Fighting poverty protecting vulnerable groups
  in society

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Cluster Programme Implementing Agents
PROVINCIAL PRIORITIES
Sustainable governance and service delivery Sustainable Economic Dev Job Creation Integrating Invest in Community Infrast Dev Human Capability Fighting Poverty and HIV-Aids and Protection of vulnerable
PROVINCIAL PRIORITY CLUSTERS PROVINCIAL PRIORITY CLUSTERS PROVINCIAL PRIORITY CLUSTERS PROVINCIAL PRIORITY CLUSTERS PROVINCIAL PRIORITY CLUSTERS
Governance Administration Economic Development Community Infrastructure Human Capability Health Social Support
Provincial Projects Water Sanitation, Electrification, Corridor Dev, DTP Provincial Projects Water Sanitation, Electrification, Corridor Dev, DTP Provincial Projects Water Sanitation, Electrification, Corridor Dev, DTP Provincial Projects Water Sanitation, Electrification, Corridor Dev, DTP Provincial Projects Water Sanitation, Electrification, Corridor Dev, DTP
Programmes of Action Programmes of Action Programmes of Action Programmes of Action Programmes of Action
CROSS-CUTTING PRIORITIES BEE SME HUMAN RIGHTS INNOVATION TECHNOLOGY RISK MGT CROSS-CUTTING PRIORITIES BEE SME HUMAN RIGHTS INNOVATION TECHNOLOGY RISK MGT CROSS-CUTTING PRIORITIES BEE SME HUMAN RIGHTS INNOVATION TECHNOLOGY RISK MGT CROSS-CUTTING PRIORITIES BEE SME HUMAN RIGHTS INNOVATION TECHNOLOGY RISK MGT CROSS-CUTTING PRIORITIES BEE SME HUMAN RIGHTS INNOVATION TECHNOLOGY RISK MGT
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The Provincial Spatial Economic Development
StrategyIntroduction
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Policy framework for a SEDS in KZN

• SA and KZN face two main challenges - reducing
  poverty inequality, tackling unemployment
• Main challenge for KZN is that of POVERTY and
  UNDERDEVELOPMENT based on the legacy of
  INEQUALITY
• KZNs objective to improve the quality of life of
  all citizens is premised on objectives flowing
  from both the MDGs national policies social
  delivery targets
• Broad National Goals for the medium term from
  both ASGI-SA and MTSF are
• Accelerated growth in the economy
• Halving poverty and unemployment by 2014
• Reduction of the gap between the 1st and 2nd
  Economies
• Overall target of economic growth of over 4.5 pa
  to 2009 and up to 6 thereafter
• PSEDS flows from (and the next logical step from)
  the KZNs PGDS
• is therefore aligned both to MDGs and national
  objectives

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Pillars of the economic development strategy

• Increasing investment in the province
• Improving skills and capacity building
• Broadening participation in the economy
• Increasing competitiveness
• All these require government intervention in a
  stepwise rise to prosperity

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Problem statement

• There is a disconnect between national,
  provincial and municipal planning and
  implementation
• Weak understanding of the geographic profile of
  the areas we intend to improve
• Weak impact as a result of uncoordinated
  interventions
• No clear end goal for each geographic area (DM)
  after interventions

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SEDS must

• Provide spatial context to PGDS
• Address spatial imbalances, curb urban sprawl and
  ensure sustainable interventions
• Identify priority areas and types of development
• Align to municipal spatial development frameworks
• Guide budgeting processes of the province and
  municipalities
• Influence investment decisions of the private
  sector

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PROVINCIAL SPATIAL ECONOMIC DEVELOPMENT STRATEGY

• The PSEDS is intended as a guide to service and
  to achieve the goals set in ASGI-SA to halve
  poverty unemployment by 2014
• Principles of development and growth underpinning
  PSEDS
• Government has a constitutional obligation to
  provide basic services to all citizens. Basic
  services include health, education, housing,
  transport
• All areas of the province require development
• Certain areas of the province will drive economic
  growth
• The PSEDS attempts to indicate where different
  types of investment should be directed in order
  to achieve development and/or economic growth

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• The PSEDS therefore sets out to
• Focus where government directs its investment and
  development initiatives
• Capitalise on complementarities and facilitate
  consistent and focused decision making
• bring about strategic coordination, interaction
  and alignment

• The PSEDS recognises that
• Social economic development is never uniformly
  distributed
• Apartheid created an unnatural distortion of
  development
• This distortion must be addressed

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The PSEDP is built on the principles of the
National Spatial Development strategy (NSDP),
namely Principle 1 Rapid economic growth that
is sustained and inclusive is a prerequisite for
the achievement of poverty alleviation Principle
2 Fixed investment should be focused in
localities of economic growth or economic
potential Principle 3 Where low economic
potential exists investments should be directed
at projects and programmes to address poverty and
the provision of basic services in order to
address past and current social
inequalities Principle 4Future settlement and
economic development opportunities should be
channelled into activity corridors and nodes that
are adjacent to or link the main centres
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Classification of Economic Potential

• Four key sectors have been identified as drivers
  of economic growth in the province. These sectors
  are
• The Agricultural sector (including
  agri-processing) and land reform
• The Industrial sector
• The Tourism sector
• The Service sector (including government
  services)
• The logistics and transport sector (including
  rail) in the services sector are important
  sub-sectors underpinning growth in all four
  sectors.
• Sustainable and affordable water and energy
  provision is crucial to the economic growth
  development of the province.
• A classification of potential is shown in the
  following discussion and maps.

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The Agricultural Sector Agriculture
agri-processing

• Massive potential for growth
• Largest existing or potential employer in rural
  areas
• Can make greatest impact on reducing poverty
  levels in rural areas
• Require better linkages with 1st economy
  commercial agriculture to develop 2nd economy
  subsistence agriculture
• The sector urgently needs transformation and land
  reform is the key lever of transformation of the
  sector

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The Industrial Sector Industrial Development

• Durban and Richards Bay harbours anchor
  industrial potential
• Dube Trade Port creates huge opportunities
• Corridor linking two nodes extending to Howick
  form primary zone of industrial potential.
• Newcastle, Ladysmith and Port Shepstone are
  important secondary nodes of industrial
  development potential

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The Tourism Sector

• Primary sectors of tourism potential are beach,
  cultural and eco-tourism.
• Provincial tourism priorities are
• Greater Durban Pietermaritzburg area
• Drakensberg region
• Greater St Lucia surrounding big five reserves
• South and north coast beach tourism
• Zulu Heritage Cultural Trail
• Battlefields Route

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The Services Sector

• The tertiary sector is the largest contributor to
  the economies of all except for the Ilembe and
  Uthungulu district municipalities.
• The tertiary sector comprises
• Wholesale / retail trade
• Transport / storage
• Communication
• Financial / insurance
• Real estate
• Business / Community / social / personal services
• Government services
• This sector is vital in supporting development in
  poor rural areas.

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Water and Energy

• National targets for water, sanitation and energy
  are
• By 2008 all households will have access to clean
  water
• By 2010 all households will have access to decent
  sanitation facilities
• By 2012 all households will have access to
  electricity
• These targets must be driven provincially as well
  therefore an integral part of this (PSEDS)
  strategy
• The DLGTA is coordinating a water and sanitation
  strategy for the province
• The electricity distribution industry (EDI) is
  currently being restructured and the 1st RED is
  to be established in the metro

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Poverty Levels

• Poverty levels measure the proportion of persons
  living in a state of poverty within an area
• The highest levels of poverty are found in the
  former KwaZulu homeland areas

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Poverty Densities

• Poverty density measures the number of persons in
  a state of poverty within an area
• The highest densities of poverty are located in
  eThekwini, Msunduzi Newcastle and Umhlatuze
• Urbanised poverty is established and wont
  relocate back to rural areas. It needs to be
  addressed in parallel to rural poverty.

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Nodes Activity Corridors

• The NSDP guides that settlement economic
  development should be channelled into activity
  corridors and nodes.
• Taking the analysis of potential and need the
  PSEDP identifies nodes and activity corridors
  which would
• Facilitate increased growth of existing centres
  corridors of economic development
• Ensure that the economic development potential in
  areas of high poverty levels and densities is
  realised
• The nodes and activity corridors dont cover the
  whole province. They focus only on those nodes
  and corridors which could have the most impact in
  halving poverty and unemployment by 2010.
• The rest of the province cannot be neglected but
  the major focus of fixed investment should be
  directed at these nodes and development corridors.

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Categories of potential set out in NSDP

• Production of high value, differentiated goods
  not strongly dependent on labour costs, focused
  on local global niche markets i.e.
  manufacturing
• Production of labour intensive, mass produced
  goods more dependant on labour costs, affordable
  transport linkages i.e. agriculture and mining
• Innovation and experimentation research and
  development
• Retail and private sector services large
  employer of skilled semi skilled workers in
  advanced economies
• Tourism dependant on tourism attractions
• Public service and administration

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Definition of nodes
No. Node Classification Main Categories of Potential
PN1 eThekwini Primary Node 1, 3, 4, 5, 6
SN1 Richards Bay Secondary Node 1, 3, 4, 5, 6
SN2 Msunduzi Secondary Node 1, 3, 4, 5, 6
SN3 Newcastle Secondary Node 1, 2, 4, 5, 6
SN4 Port Shepstone Secondary Node 1, 4, 5, 6

• The nodes are defined as follows
• Primary Node (PN) An urban centre with very high
  existing economic growth and the potential for
  expansion thereof. Provides service to the
  national and provincial economy.
• Secondary Node (SN) An urban centre with good
  existing economic development and the potential
  for growth. Services the regional economy.
• Tertiary Node (TN) A centre which should provide
  service to the sub-regional economy.
• Quaternary Node (QN) A centre which should
  provide service to the localised economy
• 5th level Node (5N) A centre which provides
  service to a ward
• The first 2 levels of nodes have been identified
  for priority interventions of the cluster over
  the next 5 years

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Definition of corridors

• The development corridors have been identified
  for priority
• intervention over the next five years. The
  corridors
• identified do not include all existing corridors
  within the province
• only those corridors with the potential to
  greatly impact on economic
• growth and the development of impoverished areas
  have been
• prioritised.
• The corridors are defined as follows
• Primary Corridor (PC) A corridor with very high
  economic growth potential within all three
  sectors which serves areas of high poverty
  densities.
• Secondary Corridor (SC) A corridor serving areas
  of high poverty levels with good economic
  development potential within one or two sectors
• The priority corridors identified are listed in
  the written document.

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Nodes and Corridors The key investment nodes and
activity corridors over the next 5 years have
been identified.
Primary Purpose of Activity Corridor
Multi-Sectoral Activity Corridor
Tourism Activity Corridor
Agriculture Activity Corridor
Existing Corridor
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PROVINCIAL SPATIAL ECONOMIC DEVELOPMENT strategy
New Activity Corridors There is a need for
investment in several roads in order to support
new activity corridors. Such investment can act
as a catalyst to developing activities along
these corridors.
Primary Purpose of Activity Corridor
Multi-Sectoral Activity Corridor
Tourism Activity Corridor
Agriculture Activity Corridor
Existing Activity Corridor
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THREATS TO THE PRIORITISED SECTORS The potential
in the province is under threat. Visionary
leadership decisive action is required to
address these threats.

• Agriculture and land reform
• Loss of productive commercial agriculture to
  residential development
• Loss of land with agricultural potential in rural
  areas to dispersed settlements
• Unsupported land reform resulting in a collapse
  of commercial agriculture
• Inappropriate implementation of municipal rates
  on agricultural land
• Threats to provision of sustainable water
  supplies to agriculture

• Tourism
• Safety and security
• Land invasion
• Illegal / inappropriate development

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THREATS TO THE PRIORITISED SECTORS

• Industrial Development
• Unreliable / expensive services (water,
  electricity, transport)
• Lack of Social support services (housing,
  education, transport, health, leisure)
• Destructive inter-municipal competition for
  development
• Inappropriate implementation of municipal rates
  on industrial development

• Services Sector
• Unsustainable urbanisation
• Lack of spatial development framework to guide
  investment

Failure to act on these threats will result in
the province not achieving its goals of reducing
poverty and unemployment. If these threats are
not addressed timeously and with the required
urgency, the province will not achieve these
goals and may even see an increase in poverty and
unemployment.
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Complementary Provincial strategies to the PSEDS

• The tourism strategy for the province to
  capitalise on the potential along the defined
  corridors
• Finalisation of the provincial cooperatives
  framework
• The review and realignment of the industrial
  development strategy
• The development and approval of a provincial
  safety and security strategy
• The development of a rail strategy that will
  benefit from the SWC 2010 infrastructure
  investment

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Critical success factors in implementing PSEDS

• The successful implementation of the PSEDS is
  dependent
• on a number of factors
• Implementation at local level (LED planning)
• Centralised coordination full time support
  systems
• Clustering of packages and investment protocol
• Impact measurement monitoring and evaluation
  systems
• Common planning boundaries
• Political decisions on rural settlement patterns
• Prioritising of safety security strategy for
  the province

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In Conclusion

• The PSEDS does not negate the need for social
  development of poor areas
• The PSEDS emphasises the need to invest the
  provinces strengths in order to address poverty
  and create employment
• Unless decisive action is taken against the
  threats listed the Province will not see growth
  or a reduction in poverty.