Date: 20/04/2007

Source: Gauteng Provincial Government

Title: Mahlangu: Gauteng Global City Region Models conference

Speech by Gauteng MEC for Local Government Qedani Dorothy Mahlangu at the Gauteng Global City Region (GCR) Models conference

Programme Director Mokgopodi Mokoena,
Executive Mayors,
Heads of Departments,
Municipal Managers,
Members of the Gauteng Legislature,
Senior Municipal Officials,
Visiting professionals and academics,
Ladies and gentlemen

A special welcome to the members of the Forum Federations who have travelled far and wide to share their knowledge and experience with us here today. Welcome to South Africa and in particular to the Gauteng City Region. It is now an established fact: Knowledge is the basis for development and progress within modern societies both domestically and internationally.

In our Global City Region (GCR) perspective, we indicate the following as central to enhance Gauteng's global competitiveness: the capacity and ability to manage modern knowledge economies; Innovation and Research and Development. Thus, as part of this agenda, we have recently concluded the Gauteng Social Development Strategy; it demands significant levels of knowledge for its successful implementation.

This therefore, places a major challenge for the political, industrial and social leadership within the Gauteng City Region to be on the cutting edge of knowledge generation, dissemination and consumption on city regions. Similarly, there is a massive challenge for city region managers across spheres of government to be ready to provide leadership on the issues raised earlier. Hence, we did not hesitate to host this conference upon learning that a group of experts on city regions is in the country. This we did in the understanding of the necessity of knowledge sharing from all corners of the world.

In this regard, on behalf of the Gauteng Premier, the Honourable Mbhazima Shilowa let me officially welcome the expert members of the Forum of Federations Gauteng. We welcome the Federations' commitment to create international platforms of knowledge sharing on a variety of issues. We are happy that the Community Law Centre at the University of the Western Cape is devoid of the syndrome of territorialism.

Despite its location in the Western Cape province, it recognised the importance of the Gauteng province drive to develop as a globally competitive city region. We have correctly stated in the GCR perspective that Gauteng's socio-economic functionary is a national project. In short, building Gauteng as a globally competitive city region is a vital national priority. And I believe that this has been part of the motivating recognition for the Community Law Centre to facilitate the gathering of our experts' guests to this engagement process. Professor Steytler; thank you very much.

We are equally very pleased that we are gaining momentum in consolidating and strengthening partnerships between the Gauteng government and the Gauteng based, and yet universal institutions of higher learning. In the last few months, we have worked closely with the Universities of Wits, Jo'burg and Pretoria in the capacitation of the senior managers in Gauteng to better understand the GCR. We have initiated engagement processes with the University of South Africa and partnership in this regard will be consolidated.

This we will do because universities and other research institutions are proven to be major role players in both the developed and developing city regions. Their core business is that of producing knowledge and therefore, is crucial to ensure that the Gauteng City Region remains abreast of knowledge development in its quest to remain globally competitive. When the opportunity arose for this conference, we took cognisance that there are various dimensions to building the Gauteng City Region. We chose to focus on models and forms of city region governance. This decision is informed by two particular observations, one is the fact that most of our guest experts work, research and lecture in the field of inter-governmental relations; secondly, we considered that the GCR implementation plan states that one of the immediate tasks is to build the institutional framework to govern the city region. Hence, we decided that a focus on forms and models of city region governance is ideal for this occasion.

However, we are equally cognoscenti to the fact that governance is not limited to the state's institutional arrangement and relations between spheres and departments. It is now an established fact that it is not enough to have correct policies and laws. Strategic partnerships with various stakeholders are a crucial element of governance. Hence, we included a sub-theme to deliberate on engagement and management of relations with civil society, academic bodies and the private sector.

Equally important is the growing role of Public Shared Services agencies within successful city regions. In the main, Public Shared Services agencies aim to enhance productivity by providing a back office infrastructure to deal with issues such as: Information Technology (IT) infrastructure and services, Human Resources, procurement, innovation, knowledge management and at some level co-ordination of Research and Development. The Gauteng Shared Services Centre is in the process of concluding its own review since its establishment and determines a more concrete role within the growth and development of the Gauteng City Region. Linked to this, is a reflection whether local government requires shared services and if so, of what form and content.

I am convinced that our broad thinking on city region governance is the correct one. It encompasses consideration of three particular and intertwined factors: Institutional and structural framework management of various relationships and interactions and lastly a particular cultural value system commensurate with city regions development.

Writing on the subject of metropolitan system of government, Alain Thierstein and Simon Gabi make the following governance recommendations on governance strategy, governance structures and governance culture. Thierstein and Gabi argue that creativity has to become part of the above three factors.

The Organisation for Economic Co-operation and Development stated back in 2001 that appropriate metropolitan system of government is not limited to particular institutional arrangements and public financial distribution. These must be complemented by a particular behavioural and a particular governance culture. The governance strategy in city region is important because it focuses on what it needs and must be done, to achieve specific goals. These may be economic or social development goals. The governance strategy therefore is crucial in providing strategic orientation and key focus on city region activities aimed at the broader goals.

In this regard, the following Gauteng strategies are vital: the growth and development strategy, the social development strategy and the capacity and organisation of the state strategy. The governance structures are vital in that they ensure that there is proper integration, co-ordination, implementation and the monitoring of the activities and outputs of the city region. Therefore, The Premier's Co-ordination Forum as the key structural driver of intergovernmental relations and effectively the GCR is an important GCR governance structure in this regard. Hence, in the recent provincial Lekgotla, its strengthening was reiterated.

Both governance structures and strategies are led and managed by people and involve a multitude of relationships and interactions. Hence, there is a need for a particular form of a governance culture. This entails behaviour patterns, cultural attitudes, values, principles and norms and mutual trust commensurate with leading and managing city region strategies and structures.

Thierstein and Gabi conclude that: "The three structuring systems must be interdependent if governance is to be efficient and effective. Improvement of metropolitan governance means a simultaneous and mutually co-ordinated development of strategy, structures and culture."

It must be understood that the above variants of city region governance and their co-ordination happen within city region's socio-economics that are mainly knowledge based. Therefore, Research and Development and innovation in particular are crucial elements of city region governance. Thus, innovation and creativity must be considered crucial factors in the consolidation of the Gauteng city region governance.

Therefore, issues of the urban observatory as a key institutional framework to consolidate the research and development agenda, innovation and benchmarking with other city regions are crucial factors in the governance of the Gauteng City Region. Richard Florida wrote in 2002 that the knowledge economies prevalent in the city regions have necessitated the emergence of particular institutions whose primary responsibility is to engage "in support and production of innovative ideas." This includes: technological creativity which the Gauteng Shared Service Centre (GSSC) and the Blue IQ are providing; the Department of Economic Development provides leadership; production of goods and services and social and cultural cohesion.

Florida further observes that the emergence of the demands of innovative demands has resulted in the emergence of two particular components of innovation creatives: 'The super creative core' and the 'creative class.'

The 'super-creative core' includes scientists and engineers, university professors, poets and novelists, artists, entertainers, actors, designers and architects as well as "the thought-leadership of modern society: non-fiction writers, editors, cultural figures, think-tank researchers, analysts and other opinion makers." The 'creative class' includes "creative professionals who work in a wide range of knowledge-intensive industries, such as high-tech sectors, financial services, the legal and health care professions, and business management."

As the Gauteng City Region we understand very well the above. Hence, both in our GCR perspective and its implementation plan, there is a considerable focus on engagement and management of stakeholder relations to contribute to the decision made in all respects. All the above identified 'creatives' will be engaged to be part of the core planning, governance and leadership of the Gauteng City Region.

In short, the governance of the Gauteng City Region will be a comprehensive and multi-sectoral. As the political leadership of the GCR, we will strive to mobilise all sectors behind the GCR vision and mission. We will provide leadership on integration, co-ordination, implementation, benchmarking and monitoring and evaluation.

It is in this regard that we are reviewing the powers and functions between provincial and local government as we pursue the metropolitan system of local government. Whilst I am passionate about the subject of city region governance and intergovernmental relations, I am here to learn and therefore, I thank you and declare this conference officially open. I wish you the best in your deliberations in making Gauteng a better place!

Issued by: Department of Local Government, Gauteng Provincial Government
20 April 2007