South Africa is ripe for a new economic outlook, Congress of SA Trade Unions general secretary Zwelinzima Vavi said in a speech prepared for delivery on Wednesday.

Addressing business and labour leaders in Johannesburg, he gave details of the direction Cosatu believed such policies should take.

"The important political shifts, which have begun post-Polokwane, have now created the space to advance alternative economic strategies.

"Policies which produce high growth, but which benefit only a few, while reproducing continued high levels of infant mortality, poverty, illiteracy, casualisation, unemployment and inequality, are out.

"Policies promoting shared economic growth and decent work are in.

"The true test of economic policies must not be narrow economic indicators -- the level of the budget deficit, or profits -- but sustainable human and social development," Vavi said.

It was necessary to create a diversified and labour-intensive manufacturing industry, and to "break with excessive dependence on export of raw materials, imports of machinery, equipment and consumer goods, and economic domination by the financial sector and monopolies".

Further, an investment strategy was needed to channel private, public and socially-owned capital into productive investment, infrastructure, and the development of people.

"We are concerned about low levels of savings and investment in the economy, but the reality is that vast quantities of capital are lying idle, being channelled into speculative activity, or being misdirected to mega capital intensive projects, golfing estates and glass buildings, or channelled out of the country, when our people are crying out for real investment in communities, and jobs."

Vavi also called for a developmental monetary policy.

"Current monetary policy is to use interest rates as a blunt instrument to achieve a rigid inflation target -- despite the inability of this crude mechanism to impact on external factors -- and using high interest rates to maintain short-term capital inflows.

"We need to develop a policy, which uses multiple tools to combat excessive inflation, while promoting employment and growth."

He also stressed the need for a basic income grant.

"Universal income support means that unlike the current situation, everybody should enjoy this support as a right, and no person should fall through the cracks.

"Current proposals for comprehensive retirement provision don't address this need since millions, particularly unemployed adults of working age, are still left without any form of income.

"Therefore the need for a basic income grant or similar scheme remains imperative."

Vavi said he looked forward to seeing such policies implemented by the new ANC government next year.

"It will open up the next phase of the national democratic revolution and create a better life for all South Africans," he said.