Date: 18/05/2005
Source:Ministry of Trade and Industry
Title: Mpahlwa: SABS design awards
Keynote address by Minister of Trade and Industry, Mandisi Mpahlwa, at the SABS design awards banquet
CEO of SABS, Mr Martin Kuscus
Programme director
Honoured Guests
Ladies and Gentlemen
Introduction
“For countries in the vanguard of the world economy, the balance between knowledge and resources has shifted so far towards knowledge that it has become perhaps the most important factor determining the standard of living - more than land, than tools, than labour. Today's most technologically advanced economies are knowledge-based.” (World Development Report, 1999)
This quote from the World Development Report several years ago highlights the importance of knowledge and related issues such as innovation and technological capabilities for all economies. The experiences of South Africa since 1994 are indicative of this trend, especially as we increasingly form part of the global economy.
The shift in global production patterns has coincided with our own entry into global markets; and over the past 11 years we have made structural changes to our economy and industries in order to compete in these markets and to remain competitive in the domestic market. These structural changes, which include the increasing shift away from resource-based production to more value added production, require greater levels of skills; this requires us to now compete on the basis of value addition rather than commodities and cost of labour.
Skills to compete
At the dawn of our democracy we recognised that the Apartheid education policies had resulted in many people in our country not having the levels of skills required for a modern knowledge based economy. As we know the Apartheid education system was designed to keep the majority of our people in low skilled employment. And unlike competing nations the Apartheid government did not recognise, or because of racial ideology rejected, the importance of having higher skills levels across the board. Consequently, the countries we were competing with in the 1950s and 1960s, who invested heavily in education and technical skills, had greater and faster economic expansion. In contrast, South Africa’s international isolation, both in terms of access to technology and international markets, negatively affected the competitiveness of our industry and ability to compete in the knowledge economy.
In 1994 the democratic government identified education and skills development as one of our priority areas and, as we are all aware, has implemented extensive programmes to address the backlog. Despite these massive efforts the legacy of low skill levels is still with us today and is constraining our shift towards higher valued added production and ability to compete more effectively in the knowledge economy.
The reality is that changes are taking place in the global economy and since 1994 our economy has opened up, and our industry has had to adapt to global competition and become more globally orientated. Therefore, in order for South Africa to become more competitive and grow, we must embark on an economic growth path that incorporates the knowledge economy. In many industries we have already started this shift, for example business process outsourcing, telecommunications, the motor industry, the film industry, and the aerospace industry, where we have started to link into global production and technology systems. Indeed, global supply chains, and developing niche areas that fit into these supply chains require value added production. In this way even our labour intensive industries such as clothing and textiles can be re-orientated and adapt.
Our successes in this integration has contributed to achieving higher levels of growth, with our growth rates shifting from an average of 2 to 3% to an average of 3 to 4%.
However, some sectors have lagged, and unfortunately our legacy of low skills levels when combined with shifts in the global economy, have conspired to push many South Africans into what has now become known as the Second Economy. It is a priority of the state to address and support this Second Economy as well as continue to promote growth in the First Economy, so that the divide does not deepen and, over time, we are able to have a single robust economy.
Improving our capabilities
Ladies and Gentlemen, my message today is simple; if we are to put our country on a higher growth path over above 6% p.a. then we need to address the dual impact of low skills levels and technological capabilities. Both of which are closely linked to our levels of innovation, product development and design.
To improve South Africa’s technological capabilities we recognise there are several cross cutting interventions that need to be made. Firstly, we must have higher levels of education, particularly in maths and science; and increase the number of tertiary and post-graduate students in the engineering and science disciplines. Furthermore we need to increase our research and development spending in both the public and private sectors, as well as improve the cross pollination of ideas between tertiary education institutions, government research facilities and the private sector.
To improve our technological capabilities we should also be promoting greater levels of further education and training amongst employees. Paying the skills development levy is not sufficient for our companies, they need to access the levies and train their employees.
Priority must also be given to supporting the growth and technological capabilities of our manufacturing sector; this can be achieved through sector development programmes that enhance the competitiveness of our manufacturing sector. We have seen that the highest levels of world trade in recent years have been in medium technology and high value adding manufacturing sectors; and those developing countries that have capabilities in these areas have recorded the highest levels of economic growth.
Lastly, to improve our technological capabilities we need to attract inward investment. Ideally such investments would be of a long-term nature and take place in the medium to high value adding manufacturing sector. Not only will such investments create sustainable jobs, but they will also bring with them new technologies and innovative practices that our country requires in order to be more competitive, as well as contribute towards greater levels of exports. Programme director, there are already programmes and interventions that have been put in place by government to address South Africa’s technological capacity. However, we recognise that much more needs to be done in this area, and there needs to be a greater level of support and involvement from the private sector.
South African Design Excellence Awards
One of the programmes that have for many years played a role in addressing these critical issues is the South African Design Excellence Awards. These awards - the reason that we are here this evening - are showcasing the cutting edge of innovation in our country and they are promoting what is increasingly being recognised as an essential ingredient for the future economic success of our country. This work must continue and I thank the staff involved in the SABS’s Design Institute of South Africa (DISA) for a job well done. Design in Africa
Technological capacity and design issues are a priority for Africa as a whole, and if we are to address some of the challenges that face our continent then we need to find ways of developing in this area. There are no doubt benefits that would emerge from the cross pollination of ideas and sharing of expertise.
People often underestimate the wealth of ideas that exists in Africa and the many innovations coming out of this continent.
Conclusion
Ladies and gentlemen, to conclude, if we are to overcome the negative legacies of our past and achieve even higher levels of economic growth by competing effectively in the knowledge economy, then we have no choice but to invest heavily in skills development, and improve our technological capabilities. This will require greater support for new technologies, and significantly more investment in innovation, in product development and in design by both the public and private sector.
These design awards are an important component of our approach to encourage innovation and promote excellence in design; and as our technological capabilities improve so we will see this being reflected in the quality and quantity of the designs submitted for these awards.
Finally, I congratulate the winners of the South African Design Excellence Awards and look forward to them making a contribution to the economy, becoming ambassadors for innovation, and achieving global recognition.
I thank you.
Issued by: Ministry of Trade and Industry
18 May 2005
Source:Ministry of Trade and Industry
Title: Mpahlwa: SABS design awards
Keynote address by Minister of Trade and Industry, Mandisi Mpahlwa, at the SABS design awards banquet
CEO of SABS, Mr Martin Kuscus
Programme director
Honoured Guests
Ladies and Gentlemen
Introduction
“For countries in the vanguard of the world economy, the balance between knowledge and resources has shifted so far towards knowledge that it has become perhaps the most important factor determining the standard of living - more than land, than tools, than labour. Today's most technologically advanced economies are knowledge-based.” (World Development Report, 1999)
This quote from the World Development Report several years ago highlights the importance of knowledge and related issues such as innovation and technological capabilities for all economies. The experiences of South Africa since 1994 are indicative of this trend, especially as we increasingly form part of the global economy.
The shift in global production patterns has coincided with our own entry into global markets; and over the past 11 years we have made structural changes to our economy and industries in order to compete in these markets and to remain competitive in the domestic market. These structural changes, which include the increasing shift away from resource-based production to more value added production, require greater levels of skills; this requires us to now compete on the basis of value addition rather than commodities and cost of labour.
Skills to compete
At the dawn of our democracy we recognised that the Apartheid education policies had resulted in many people in our country not having the levels of skills required for a modern knowledge based economy. As we know the Apartheid education system was designed to keep the majority of our people in low skilled employment. And unlike competing nations the Apartheid government did not recognise, or because of racial ideology rejected, the importance of having higher skills levels across the board. Consequently, the countries we were competing with in the 1950s and 1960s, who invested heavily in education and technical skills, had greater and faster economic expansion. In contrast, South Africa’s international isolation, both in terms of access to technology and international markets, negatively affected the competitiveness of our industry and ability to compete in the knowledge economy.
In 1994 the democratic government identified education and skills development as one of our priority areas and, as we are all aware, has implemented extensive programmes to address the backlog. Despite these massive efforts the legacy of low skill levels is still with us today and is constraining our shift towards higher valued added production and ability to compete more effectively in the knowledge economy.
The reality is that changes are taking place in the global economy and since 1994 our economy has opened up, and our industry has had to adapt to global competition and become more globally orientated. Therefore, in order for South Africa to become more competitive and grow, we must embark on an economic growth path that incorporates the knowledge economy. In many industries we have already started this shift, for example business process outsourcing, telecommunications, the motor industry, the film industry, and the aerospace industry, where we have started to link into global production and technology systems. Indeed, global supply chains, and developing niche areas that fit into these supply chains require value added production. In this way even our labour intensive industries such as clothing and textiles can be re-orientated and adapt.
Our successes in this integration has contributed to achieving higher levels of growth, with our growth rates shifting from an average of 2 to 3% to an average of 3 to 4%.
However, some sectors have lagged, and unfortunately our legacy of low skills levels when combined with shifts in the global economy, have conspired to push many South Africans into what has now become known as the Second Economy. It is a priority of the state to address and support this Second Economy as well as continue to promote growth in the First Economy, so that the divide does not deepen and, over time, we are able to have a single robust economy.
Improving our capabilities
Ladies and Gentlemen, my message today is simple; if we are to put our country on a higher growth path over above 6% p.a. then we need to address the dual impact of low skills levels and technological capabilities. Both of which are closely linked to our levels of innovation, product development and design.
To improve South Africa’s technological capabilities we recognise there are several cross cutting interventions that need to be made. Firstly, we must have higher levels of education, particularly in maths and science; and increase the number of tertiary and post-graduate students in the engineering and science disciplines. Furthermore we need to increase our research and development spending in both the public and private sectors, as well as improve the cross pollination of ideas between tertiary education institutions, government research facilities and the private sector.
To improve our technological capabilities we should also be promoting greater levels of further education and training amongst employees. Paying the skills development levy is not sufficient for our companies, they need to access the levies and train their employees.
Priority must also be given to supporting the growth and technological capabilities of our manufacturing sector; this can be achieved through sector development programmes that enhance the competitiveness of our manufacturing sector. We have seen that the highest levels of world trade in recent years have been in medium technology and high value adding manufacturing sectors; and those developing countries that have capabilities in these areas have recorded the highest levels of economic growth.
Lastly, to improve our technological capabilities we need to attract inward investment. Ideally such investments would be of a long-term nature and take place in the medium to high value adding manufacturing sector. Not only will such investments create sustainable jobs, but they will also bring with them new technologies and innovative practices that our country requires in order to be more competitive, as well as contribute towards greater levels of exports. Programme director, there are already programmes and interventions that have been put in place by government to address South Africa’s technological capacity. However, we recognise that much more needs to be done in this area, and there needs to be a greater level of support and involvement from the private sector.
South African Design Excellence Awards
One of the programmes that have for many years played a role in addressing these critical issues is the South African Design Excellence Awards. These awards - the reason that we are here this evening - are showcasing the cutting edge of innovation in our country and they are promoting what is increasingly being recognised as an essential ingredient for the future economic success of our country. This work must continue and I thank the staff involved in the SABS’s Design Institute of South Africa (DISA) for a job well done. Design in Africa
Technological capacity and design issues are a priority for Africa as a whole, and if we are to address some of the challenges that face our continent then we need to find ways of developing in this area. There are no doubt benefits that would emerge from the cross pollination of ideas and sharing of expertise.
People often underestimate the wealth of ideas that exists in Africa and the many innovations coming out of this continent.
Conclusion
Ladies and gentlemen, to conclude, if we are to overcome the negative legacies of our past and achieve even higher levels of economic growth by competing effectively in the knowledge economy, then we have no choice but to invest heavily in skills development, and improve our technological capabilities. This will require greater support for new technologies, and significantly more investment in innovation, in product development and in design by both the public and private sector.
These design awards are an important component of our approach to encourage innovation and promote excellence in design; and as our technological capabilities improve so we will see this being reflected in the quality and quantity of the designs submitted for these awards.
Finally, I congratulate the winners of the South African Design Excellence Awards and look forward to them making a contribution to the economy, becoming ambassadors for innovation, and achieving global recognition.
I thank you.
Issued by: Ministry of Trade and Industry
18 May 2005
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