Hon Chair, hon chair of the select committee, hon Minister of Economic Development Patel, hon Deputy Minister Enoch Godongwana, hon MECs and hon members, kindly accept our greetings from the Eastern Cape. Overcoming poverty is not a task of charity; it is an act of justice. Like slavery and apartheid, poverty is not natural. It is manmade and can be overcome and eradicated by the actions of human beings.
Poverty and underdevelopment remain our greatest challenge. It is the task of this government, and the Department of Economic Development in particular, to address these challenges to overcome poverty through decisive action, and to set our nation on a path towards sustainable economic growth.
The destabilising effects of the global economic crisis that the hon Godongwana spoke about recently, are ongoing, particularly in the developing economies. The economic imbalances brought into focus by the global economic crisis are increasingly translated into popular uprisings, a fact leaders around the world should be taking note of. The heightened global awareness of the devastating effects of climate change has challenged practitioners across the spectrum to take a relook at their relationship with nature. The relevance of these global trends to our own situation is acute. Firstly, failure to construct a clear strategy for entrenching a developmental state that defeats dualism and underdevelopment could result in growing alienation and distance between government and the masses of our people. This could pose a serious threat to the state.
Secondly, South Africa now boasts the worst income disparity in the world. The Gini coefficient increased from 0,64 to 0,69 in the first decade of democracy, and awareness of inequality in the distribution and scale of economic opportunities and disparities in the rate of economic participation is growing, particularly here in the Western Cape.
Thirdly, our provincial economy in the Eastern Cape is dominated by export- led automotive-sector manufacturing and by the tertiary sector. This makes our economy especially vulnerable to international market fluctuations.
Finally, the geographic location and socioeconomic status of the province make it particularly susceptible to climate change. These challenges, if coherently addressed, present opportunities to develop new labour- absorptive industries in the production sector, particularly aligned with the green economy and the New Growth Path.
It is important that our strategies take heed of the changing world economy. In this respect, it is notable that Chinese interest in investing in the manufacturing sector in the Eastern Cape, particularly in the East London industrial development zone, is increasing. In exploiting these opportunities, it is possible for the province to reshape its economy.
Much has been said about the challenges facing the national and provincial economies, both in this House and in the media in general. Those that have an impact on our future plans are mentioned here. They are the carbon intensity of our economy fuels climate change; the decline in the manufacturing base; possible deindustrialisation in some sectors, particularly the textile sector; ageing economic infrastructure; slow progress in reversing socioeconomic deficits, particularly in respect of employment creation, poverty reduction and population density; chronic underinvestment in the public sector and economic infrastructure and logistics; and the global recession and an unfavourable environment for exporters.
Over the Medium-Term Expenditure Framework period, we are supported in our commitment to addressing these issues by the recent pronouncement on the Department of Trade and Industry's R9 billion jobs fund, the Industrial Development Co-operation's allocation of R10 billion to finance investment in areas of high job potential, and the renewal of tax incentives for manufacturing investment.
With our partners in government and the private sector, we intend to systematically address these challenges through a process of focused economic and environmental analysis and the mobilisation of resources. As a province, we are committed to putting the right people in the right places to do the right things to sustain a high-quality, professional and enabling service in terms of the core programmes.
All our public entities have been tasked with adjusting their strategies and targets to reflect the new approach of leveraging government's share of the economy to enhance employment and growth in the context of sustainable resource utilisation. We will ensure closer collaboration, integration and alignment of the two core programmes in pursuit of the provincial green agenda.
To address these unacceptable disparities defining the provincial economy, we will champion the new integrated Wild Coast development initiative to address the myriad of challenges and to unlock the abundant possibilities in this neglected region.
We will implement vigorously the provincial industrial development strategy, focusing in particular on the auto, green, agro-processing, petrochemical, manufacturing and tourism sectors. We will address challenges in respect of the funding and mandate of the industrial development zones, and lobby for the redirection of provincial resources towards small-town development. We will work to decrease the province's dependence on imports and create much-needed jobs. Efforts will include engaging industry players to facilitate the revitalisation of the industrial parks in Butterworth, Fort Jackson and Dimbaza, and the progressive development of the Science and Technology Park at the East London industrial development zone.
We will also launch a provincial industrial jobs stimulus programme, which will boost our efforts to establish a low-carbon economy. The programme will give fiscal and programmatic content to the provincial industrial development strategy and give concrete expression to government's New Growth Path. It also responds directly to the President's call to make jobs the number one priority for 2011. The programme includes a fund to be administered in partnership with business and organised labour, and R50 million has been allocated for the fund this year. We will be creating an expected 5 000 jobs in terms of the Industrial Policy Action Plan 2, Ipap 2, and in terms of the provincial industrial development strategy- aligned sectors such as the green, renewal, nonautomotive and agro- processing sectors.
Management of our protected areas and the fauna and flora within them will receive heightened attention in 2011. We intend to move rapidly towards popularising the notion of sustainable green economic activity, with the emphasis on supporting research and development of green technologies for commercial and domestic applications.
Faced with increasing numbers of species and habitants under threat, efforts are to be increased to combat environmental crime. This requires the department to improve its regulatory and compliance regime and to augment this by urgently implementing strategies to mitigate the effects of climate change.
To that end, we will lead efforts to develop climate change mitigation and adaptation technologies, explore and develop alternative energy resources, and guide and foster behavioural change. In conclusion, we need to create new growth engines and new job opportunities. Thank you. [Time expired.] [Applause.]