Hon Chairperson, the Department of Economic Development must involve improvements in a variety of indicators such as literacy rates, life expectancy and poverty rates. A country's economic development is related to its human development, which encompasses, among other things, health and education. These factors are closely related to economic growth so that development and growth often go together.
Our economy has been growing, so we hear, but human development of our people has been on a steady decline. Health and education standards have also steadily declined. I submit that there has been no economic development, if it cannot be seen, in improved quality of life of ordinary citizens.
Unemployment remains a terrible scourge in our country, with an economy that continues to lose jobs without creating new ones. The department has pointed out that the New Growth Path seeks to correct and address our economy's jobless growth. I am sure that we all want to see what will be done differently, because one of the biggest failures of whatever growth we've boasted about is its lack of absorbing labour and creating sustainable employment.
We appreciate that funds have been put aside for job creation, but that gives little hope that the joblessness of this economy will be resolved.
To me, resources do not play a big role, as we are made to think, but what has been lacking is political will and decisive thinking from key decision- makers. We hope to see a new thinking as this new Ministry gathers strength and establishes itself.
Thus far, the department has not done very well if we consider that R2,9 billion worth of funds were set aside to save jobs hit by the recession, but that a mere 7 000 jobs were saved while 900 000 were lost, and this was not due to a lack of resources.
We are seen by the world as the leading economy on the continent, yet our economy's labour absorption rate fares far below that of other African countries like Uganda and Tanzania. This, therefore, means that the conclusion is drawn that this is a problem owing to a lack of political will. It is embarrassing to note that our labour absorption rate is below 50% while other African countries have gone up to as much as 75% in labour absorption.
Unemployment remains a terrible scourge, as I have already said, but we say there is a need for the department to communicate its New Growth Path effectively with stakeholders and generally with the public. We have been hearing that the New growth Path is aimed at creating more jobs, but details have been scarce and there are fears that the department will seek to lower the minimum wage. Needless to say, this will result in outrage. The UCDP supports the Budget Vote. I thank you.