In June
last year, the commission released a diagnostic document which stated that the
elimination of poverty and the reduction of inequality were the objectives of a
long term plan, but that nine key challenges stood in the way. Let’s call these
the Undesirable Effects or UDEs for short.
- Too few people work.
- The quality of school
education for black people is poor.
- Infrastructure is poorly
located, inadequate and under-maintained.
- Spatial divides hobble
inclusive development.
- The economy is unsustainably
resource intensive.
- The public health system
cannot meet demand or sustain quality.
- Public services are uneven
and often of poor quality.
- Corruption levels are high.
- South Africa remains a divided society.
Then, in
November, the commission produced a draft National Development Plan for 2030.
It contained recommendations covering the following areas. Let’s call these the
Desirable Effects or DEs for short. We can see that these are in effect the
inverts of the UDEs, and hence become objectives or what we will classify as
ambitious targets.
- Create jobs
- Education and training
- Expand infrastructure
- Transform urban and rural spaces
- Transition to a low carbon economy
- Provide health care
- Build a capable state
- Fight corruption
- Transformation and unity
Then comes the following, almost casual assumption: South Africa can become
the country we want it to become. It is possible to get rid of poverty and reduce inequality in 20 years. We have the people, the goodwill, the skills,
the resources – and now, a plan.
Assuming that the ANC finds the time
at their Mangaung conference to review and approve the plan, then the 20 year
implementation process has to actually start. The ANC has never shown any glory
in action and implementation to follow their renowned rhetoric, so herein lies
the test to see whether the assumption made by the plan is more than the usual
innuendo.
Let’s take a reality check on the
proposed elements of the plan. We can approach this with a mindset that has
evolved from a fairly long exposure and many practical applications of the
theory of constraints, commonly abbreviated to TOC. It is evident that this NDP challenge is a
case of aspiring to a number of ambitious targets that not only require the full
dependence on their specific necessary and sufficient conditions, but that such
conditions can exist without any mutual conflicts. The practice of using the
strategic and tactical mechanisms of the ambitious target process makes the
assumption that the target is achievable and is approached in a confident frame
of mind rather than one of disbelieving scepticism, which understandably, most
commentary on the NDP has generated so far. Intuitively,
the NDP is doomed to failure primarily as a result of an historical lack of
effective management execution in SA. Any amount of political innuendo will
not overcome that reality. What we can only hope for is that the government, as
the sponsors so to speak of the plan, will draw on the intelligence, skills,
experience and proven competence of available resources to set up, design,
articulate, prescribe and monitor the plans making up what we should in fact
call a programme, as it
will be a collection of interactive
and dependent projects each requiring skilled planning and management
execution. The best must be used, not the most politically favoured.
There is one very fundamental factor that will render this
programme so challenging that it should convince us of the need for the most radical,
urgent, collective effort. I will simply
call it the Rule of exponential projections. It is evident in reviewing the
listed DEs that every one of them is essentially population growth rate
dependent. From 2000 to 2011 the Mundi index shows that the growth has been
12,8% in net gain of population numbers, or an annualised rate of 1,2%. This moderately
low (recent) increase in the population was due to the escalation in HIV/Aids driven
deaths. How this will change in the next 20 years is an unknown, but it could
increase if the treatment measures are effective. 30% of the current population
is 14 years old or less and all reaching the job market age in this period. There
are an estimated 4,7m unemployed persons in the employment spectrum at present,
so a rough projection shows that we need to create about 4.7 m, plus those jobs
to employ the 14 year olds, plus the result of the population growth over this
period. In my maths, the NPC vision to create 11 m jobs (see the plan) over the
next 20 years means we shall have more unemployed in numbers than we have at
present. So the elimination of unemployment and hence poverty would appear to
be a pipedream and we question whether it has taken exponential growth into
account.
Clearly economic growth is required to create these jobs and
it has to occur at a higher exponential
rate that of the population needing employment. How does one converge these
two lines? We either limit the growth rate of the independent variable
(population) or radically increase the dependent variable (economic growth
rate). If not, the lines diverge and the problem becomes greater. Many goals
are missed due to the prevalence of linear thinking.
The ability to provide the management execution to all these
components of the programme requires skilled and experienced resources (primarily
technical: Engineers, Technologists and Technicians) to be available at the
right level and numbers to implement the projects: infrastructure for example requires
that the reinvestment into the assets of the infrastructure must equal the rate
of depreciation just to remain static. Again we will find that the curves
diverge if we cannot reverse the current trend in historical deterioration of
these assets without replacement. The infrastructure is currently in a state of
serious entropic decline with little evidence of major projects in the
pipeline.
If the growth rate of urbanisation which is a major factor
in overload and breakdown of infrastructure exceeds the rate of infrastructure growth
by only 3,5% per annum, the magnitude of collapsed and underserviced urban
population with all its attendant troubles will double in 20 years.
What are the simple fundamentals that must be followed in
the big plan or programme? Firstly, identify the goal of each ambitious target
of the programme, identify the constraints, subordinate to them, elevate them
and keep following this process ensuring that interim pre-defined milestones
are being met. Prioritise what will
drive the throughput to meet the goal. Do
what should be done and do not do what should not be done. Do not waste
resources and time, for example changing town and road names, when the
resources should be used to manage the required activities to achieve the
programme objectives. Utilise the best available management and capacity to
execute the processes.
South
Africa has a major constraint in the
numbers of productive resources that it can apply to this pending challenge.
Unless some sense is brought into the skills space alone that reverses the
current trend to enforce misplaced affirmative action, uses the experienced
skilled (and ageing) work force, raises compliance levels for entrance to
learning institutions, discontinues the employment of political appointees into
roles instead of competent persons selected on merit, reviews the negative
impact of the labour laws, formulates effective policy on small business
development, and identifies measurable, interim milestones over the next twenty
years, then I have to say that the great plan will fail on the basis that
reality is again being replaced with political imperatives that make the appeal
of the planning commission to the public to join forces "to make miracles”
nothing more than hollow rhetoric we have come so used to hearing. And the exponential rule waits for no one.