Chairperson and hon Ministers, I have not changed my name yet and I don't intend changing it. No, I am not going to change my name, Chief Whip. The 128th Inter-Parliamentary Union Assembly is going to be held in Quito in Ecuador, from 22 to 27 March this year under the theme: From unrelenting growth to purposeful development: New approaches, new solutions.
Purposeful economic development is a process whereby an economy's real national income increases over a long time. This includes the development of agriculture, industry, trade, transport and power resources. The key elements of purposeful economic development include supply chains, geographical or location factors such as proximity to services, availability of labour, appropriate tax regimes, as well as a favourable regulatory environment.
On the other hand, unrelenting growth refers to unprecedented economic growth that surpasses all expectations, much like what we have seen in the four Asian tiger economies of Hong Kong, Singapore, South Korea and the Republic of China, also known as Taiwan.
At the heart of realising that economic growth is the issue of governance. There are some identified governance indicators which include four outcome measures, namely, government effectiveness; regulatory quality; the rule of law; and the control of corruption. These outcomes affect development in numerous ways. In other words, the issue of governance focuses on the extent to which government has incentives to adopt and enforce policies in the interests of all citizens based on the political institutions and dynamics that determine governance.
The DA's 8% growth plan for South Africa identifies a number of flaws in this government's ability to open the economic opportunities to all the people of this country. The failures include inefficient resource allocation, reduced innovation, reduced competition, poor corporate governance and heightened corruption.
There is no doubt that South Africa's economy is divided into two, namely, those who are inside and those who are outside. The DA's growth plan describes the state of our economy as, on the one side, those who have jobs - like you - homes, and the prospect of raising incomes and a better future. On the other side there are those millions of poor South Africans who struggle to participate in the country's economic mainstream.
The greatest challenge facing this country today is the lack of job opportunities for the millions of people who are out of employment, the majority of whom are young people. According to official statistics 24% of the economically active population in this country is out of work.
The DA's growth plan has identified, among others, the following as barriers to accessing employment opportunities by millions of South Africans. Firstly, there are the inflexible work conditions. Secondly, the vested interests such as those of the Congress of South African Trade Unions, Cosatu, in maintaining the status quo. Thirdly, there are the unmarketable skills as a product of our failing education system. Fourthly, there is the lack of incentives for low-key job creation. Lastly, there is the breakdown of the critical relationship between productivity and pay.
To answer some of these challenges the DA has come up with the following long-term policy proposals to overcome unemployment in South Africa today: Reduction of barriers to entry into the job market by those who are looking for jobs; improved competition and productivity; flexibility in labour markets; improved education outcomes; and matching skills with the demand in the market place.
The DA is aware of the fact that we have to overcome the inequalities that this country inherited from the past. However, a new spirit of commitment to pragmatic economic policies is what is required to overcome the current challenges. I thank you. [Applause.]