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Bringing together leaders in all spheres of government, private sector and experts in service
delivery to propel effective planning, budgeting, implementation and reporting across the 44
municipal districts and 8 metros for a greater South Africa.

Concept Note

Background

South Africa may be at the precipice of a failed state when one considers the magnitude of inequality, growing unemployment,
declining manufacturing and production, service delivery protests, persistent fruitless and wasteful expenditure by majority of
municipalities in the country, inability to handle the management of undocumented illegal migrants, deteriorating race relations
that are at the lowest levels since 1994 and high levels of corruption.
The purpose of this intervention is to gather private sector, government and civil society leaders to create a wider awareness of the
DDM, thereby fostering the alignment and stimulating the execution of this model’s aims and objectives. The South African Council
for Graduate Co-operative and its partners will facilitate this process by providing coaching encounters including” The Work of
Leaders” in the process of team alignment and DDM execution.
The sixth administration headed by President Cyril Ramaphosa has been voted by electorates to:
▪ Unite South Africa;
▪ Champion accountability and grow strong work ethics;
▪ Stimulate globally competitive industries and manufacturing;
▪ Provide safety and security as well as sustainable prosperity and social stability at district levels in all the provinces.
In its response to the growing impatience by the members of society of the high levels of fruitless and wasteful expenditure as
reported repeatedly by the Auditor General’s office, the growing service delivery protests at several municipalities; President
Ramaphosa introduced the District Development Model in February 2019.

Why Call For The DDM Conference?

The District Development Model was initiated by President Cyril Ramaphosa in his Budget Speech in 2019. Subsequently, the District Development Model was discussed and adopted by Cabinet at the 2019 Presidential Coordinating Council (PCC), the March 2020 Extended Presidential Coordinating Council (PCC) and various MINMECs.

The President in the 2019 Presidency Budget Speech (2019) identified the “pattern of operating in silos” as a challenge which led to “the lack of coherence in planning and implementation and has made monitoring and oversight of government’s programme difficult”. The consequence has been non optimal delivery of services and diminished impact on the triple challenges of poverty, inequality and unemployment.

President Ramaphosa further called for the rolling out of “a new integrated district-based approach to addressing our service delivery challenges, localised procurement and job creation, that promotes and supports local businesses that involve communities…” The President is cognisant of that such an approach will require “National departments to have district-level delivery capacity together with the provinces and provide implementation plans in line with priorities identified in the State of the Nation address”.

The Model consists of a process by which joint and collaborative planning is undertaken at local, district and metropolitan level by all three spheres of governance resulting in a single strategically focussed “One Plan for each of the 44 districts and 8 metropolitan geographic spaces in the country, wherein the district is seen as the landing strip”.
The District Development Model builds on the White Paper on Local Government (1998), which seeks to ensure that “local government is capacitated and transformed to play a developmental role”. The White Paper says developmental local government “is local government committed to working with citizens and groups within the community to find sustainable ways to meet their social, economic and material needs and improve the quality of their lives”.

Consequently, the developmental local government has four interrelated characteristics; namely:
▪ Maximising social development and economic growth;
▪ Integrating and coordinating;
▪ Democratising development; and
▪ Leading and learning”.

In order for local government to advance this, the Constitution calls on “national and provincial governments to support and strengthen the capacity of municipalities to manage their own affairs”. The SACGRA proposes that the provincial and national governments work to ensure that competent staff, managers and leaders are appointed at various municipalities to achieve the lofty goals of the DDM.

Therefore, the model is a practical Intergovernmental Relations (IGR) mechanism to enable all three spheres of government to work together, with communities and stakeholders, to plan, budget and implement in unison.

In so doing the vexing service delivery challenges can also be turned into local level development opportunities, through localised procurement and job creation which “promotes and supports local businesses, and that involves communities.” It is believed that this will also require national and provincial departments to provide implementation plans and budgets which address local challenges and developmental opportunities whilst aligning with national goals and objectives.

International Benchmarks

In an effort to ensure that the DDM in South Africa is able to transcend the administration headed by President Ramaphosa, the SACGRA team took a look at international best practices similar to the model adopted in South Africa. While acknowledging that each country has unique context, environment, history and cultures – assets and liabilities that have a bearing in the success or failure of the programme. There are however, elements that are common between the countries; which warrant a measure of evaluation and comparison.

What is common amongst the three countries – South Africa, Rwanda and Ireland? All three countries implemented new policies in 1994 to bring about socio-economic changes. It seems that Rwanda and Ireland are on an incline, while South Africa’s economy is facing a grim future prospect. Many international pundits have praised South Africa’s post democracy constitution and legislation as progressive. However, there are critics of the inability or failure to implement and follow through to ensure policy accomplishments. In support of this last point, a quote by the UN representative in South Africa Ms. Nardos Bekele-Thomas: June 12, 2021; “I want to emphasize the importance of action. This means translating words, policy, and dialogue into results.”

Ms Bekele further asserted that; “The people have been patient for long enough – we should not try their patience further! The longer policies and plans take to translate into palpable, concrete results, the less legitimacy they have, the less legitimacy we have. I urge you all, we need results, and we do not have the luxury of time. We need a whole-of-government and whole-of-society approach.” This means that the private sector and civil society must engage as partners and as responsible members of society. What is needed is the knowledge and resources; but most importantly we need the added energy to ensure the culture of responsibility, accountability, transparency, and the respect of rule of law. One may say that by July 2021 Ms. Bekele-Thomas’ warning came true in South Africa when a civil unrest and looting took over, primarily in the provinces of KwaZulu-Natal and Gauteng.

While recognising that a home-grown model of the DDM is not only preferred but essential for success, exploring other countries’ success at the implementation of the DDM may provide a salutary indication of what may be achieved despite varying environments and peculiar circumstances.

Rwanda

Background

Rwanda’s transformation from a war-torn nation to expanding economy can be credited to a stable post-genocide government and large influxes of foreign aid from the international community. Thirty to forty percent of Rwandan government revenue and the government has been putting the money to good use. The Rwandan government has been committed to a development plan known as Vision 2020, which is designed with the hopes of transforming Rwanda into a middle-income country. The Rwandan government has taken several actions to spur the transition from a poor, agricultural state to a middle-income, service economy. The country has spent a significant amount on improving infrastructure, though the state of current infrastructure remains an obstacle to economic growth. Education has been expanded so that nearly every Rwandan child is enrolled in primary school. However, Rwanda continues to face challenges in ensuring quality education and continuing education into secondary school. The government has also instituted community-based health insurance and programs that have increased agricultural productivity, tourism, access to electricity and information and communication technologies. If both the Rwandan government and the international community continue to commit resources to fund Rwanda’s development, the future will continue to be bright for the Rwandan people. In the past ten years, poverty has decreased by 23 percent and poverty is expected to continue decreasing if Rwanda continues to focus on development and sees a steady influx of foreign aid.

Genocide and Effect on the Economy

One reason why Rwanda is poor is its lack of natural resources — the nation is landlocked and contains a mostly rural and agrarian populace. Thirty-five percent of Rwandans practise subsistence farming and some of Rwanda’s main sources of income are agricultural exports like coffee and tea. These conditions mean Rwandan economic activity can be highly susceptible to soil infertility, adverse climate patterns and drops in coffee prices. Another large driver of poverty in Rwanda is the impact of the 1994 Rwandan Genocide. The genocide resulted in the deaths of 800,000 people and left thousands of children without parents and many people without their homes. The conflict also drove down Rwanda’s GDP by 50 percent, destroyed Rwandan infrastructure and led to a severe decline in health, education and access to water and sanitation. Though the nation has made significant steps towards recovery, the decimating impact of the genocide cannot be easily forgotten.
Rwanda’s economy suffered heavily during the 1994 Genocide, with widespread loss of life, failure to maintain the infrastructure, looting, and neglect of important cash crops. This caused a large drop in GDP and destroyed the country’s ability to attract private and external investment.

Rwanda Vision 2020

Most of Rwanda’s development efforts have been executed in the context of vision 2020. It is a long-term strategy which was carefully presented through a consultative process between 1997 to 2000. To maintain steady economic growth for almost two decades, the government invested time and resources into soft and hard infrastructure in order to attract foreign direct investment.

In 2018, the RDB registered over US$2 billion worth of investments. Around 173 investment projects worth US$2.006 billion, against a US$2 billion target set for the year, were registered, according to an RDB press release. Of the total investments registered in 2018, an estimated 26 percent represents export-orientated projects. Across the different sectors, manufacturing, mining, agriculture and agro-processing accounted for 57 percent of investments registered.
Other sectors that attracted significant investments were tourism, healthcare, business services and ICT. The economic growth that Rwanda has experienced was able to pull at least one million citizens out of poverty between 2005 and 2011, according to the Rwandan Household Living Conditions Survey. Rwanda’s GDP per capita in 1994 was $146. In 2017 it stood at $774 and is projected to have reached around $819.652 by the end of 2018, according to the International Monetary Fund.

The Vision’s main objectives were to fundamentally transform Rwanda into a middle-income country by the year 2020. The Vision consists of six pillars or goals which the government aims to achieve, these are:
▪ Good governance and a capable state;
▪ Development of skilled human capital to drive a knowledge-based economy;
▪ Vibrant private sector to drive the economic growth;
▪ Development of a world-class physical infrastructure;
▪ Development of modernised and expert-led farming (both agriculture and livestock);
▪ Regional and global markets integration.

Following these implementations, the country went through a period of high economic growth and managed to record an 8% growth rate which has been sustained since then and makes Rwanda one of the fastest-growing economies in Africa. The sustained economic growth has to an extent succeeded in reducing poverty. For example, between 2006 and 2011, the percentage of the country’s population living in extreme poverty reduced from 58% to 45%. Notably, of the world’s top 10 fastest-growing economies in 2020, three are East African countries including Rwanda, Ethiopia and Tanzania. In the year 2019, Ethiopia and Rwanda placed second and third respectively. Ethiopia averaged a 10.3% growth as Africa’s fastest-growing economy from 2007 to 2017.

From 2001 to 2014, Rwanda had a GDP growth rate of about 8 percent per year. Despite these improvements, 39 percent of Rwandans are below the nation’s poverty rate and 16 percent live in extreme poverty. Sixty percent of Rwandans are living on less than $1.90 per day.

International AID in Rwanda

How much international aid does Rwanda receive? Over the last 10 years, annual funding to USAID/Rwanda has increased from about $48 million in 2004 to over $128 million in 2016. Many of Rwanda’s ongoing development projects are supported by the World Bank and various development partners, including Power of Nutrition and the Global Financing Facility, which supports the Rwanda Stunting Prevention and Reduction Project.

Factors that Made Vision 2020 Work in Rwanda

Rwanda is often acclaimed as an example of what African states could achieve if they were governed better. Many of the achievements of President Kagame and his governing party have been impressive after taking over a deeply divided nation in need of political and economic restoration in 1994. (Incidentally, the same year President Mandela assumed the presidency in South Africa). Since then, Rwanda has witnessed an economic boom which has improved the living standards of many Rwandans. The government’s progressive visions have also been a catalyst for the fast-growing economy. After experiencing a horrific genocide, what measures did Rwanda take to achieve substantial economic growth?

The government established key institutions that would help it achieve its objectives enshrined in Vision 2020. The Rwanda Development Board (RDB) was put in place in 2009 to help oversee the country’s business regulations, foreign investments, tourism promotion, environmental conservation and broader economic and development planning. According to Vision 2020, the Rwandan state is tasked with ensuring good governance, which includes accountability, transparency and efficiency in deploying scarce resources to key sectors of the national economy. The 2017 Corruption Perception Index ranked Rwanda the third least corrupt country on the African continent behind the Seychelles and Botswana.

The country is not just creating a business-friendly environment but also diversifying the economy from being almost entirely dependent on agriculture to now being developing services and a growing manufacturing sector. According to the 2019 World Bank Doing Business index, Rwanda is the 29th easiest place to do business in the world – the only low-income country (LIC) in the top 30.

The Republic of Ireland

Background

From the 1960s to the 1980s, the Republic of Ireland lagged behind EU core countries (Austria, France, Belgium, the Netherlands, Germany, Luxembourg, Denmark, Finland, Sweden and the UK). Slowly but steadily, the policies implemented since 1958 enabled Ireland’s GNP per capita to grow, with a clear acceleration around 1994, to the point of catching up with the other EU member states in the early 2000s and exceeding the EU’s core countries in 2003 in terms of GNP per capita at constant prices. Between 2001 and 2007, GNP growth rates averaged 5.6%. At the end of the Celtic Tiger period, in 2007, only three countries of the European Union (Luxembourg, Sweden and the Netherlands) had a GNP per capita higher than Ireland’s.

Ireland also managed to reduce its public debt from 110% of economic output in 1987 to 24% in 2007, then the second-lowest in the eurozone. Finally in 2007, at the end of the Celtic Tiger period, the general government balance was marginally positive. In a nutshell, within four or five decades, Ireland was transformed from a poor country into a highly successful economy. Its development model was praised, studied and copied by many emerging economies like the eight countries of Central Europe which joined the EU in 2004. After this period of fast growth, in the mid-2000s, several world financial institutions forecast a soft landing for the Celtic Tiger within 5 to 10 years:
It’s a tax haven. Ireland offers businesses some of the lowest tax rates in Europe if they choose to base themselves there. This brings in loads of revenue to the country, hence the very high GDP per capita. The economy: Irish people are now richer than Americans, according to the report. For the first time since the report was compiled, the Irish GDP per capita, adjusted for purchasing power to $36,360, is higher than the USA figure of $35,750. Moreover, Ireland has a GDP per capita of $73,200 as of 2017, while in Germany, the GDP per capita is $50,800 as of 2017.

Economic crisis and recession of 2008

In September 2008, Ireland was the first country in the eurozone to enter a recession. It happened after fifteen years of exceptional growth and fast economic development, often called the Celtic Tiger. During that period, Ireland had been the euro area’s fastest-growing and one of the richest countries in terms of GNP per capita. The crisis occurred after decades of political and economic efforts to catch up with the EU member states.

The economic crisis that hit Ireland in 2008 stemmed from an uncontrolled real estate bubble that had developed over the previous five years, and the resulting collapse in the domestic financial system, which was heavily exposed to the property market.

Ireland Economic Development Model

In seeking to fulfil this vision, the Government commits itself to the following principles:
▪ strong community participation and leveraging the capacity within communities to make a difference, with community-led or community development approaches retained as integral features of local and community development;
▪ a strong local government system securing and supporting individual and community engagement and participation in policy development, planning and delivery, and decision-making processes in respect of local and community interventions and supports at a local level;
▪ meaningful engagement with local communities, local development organisations and state bodies to ensure that the best outcome for the community is achieved;
CONCEPT NOTE: Annual District Development Model Conference SA, 2022
© SA Council for Graduates, 2022 Page 8 of 9
▪ robust local collaboration structures that encourage transparency, democratic legitimacy, accountability, participation, and evidence-based decision making;
▪ support for voluntary activity and active citizenship, underpinned by supporting the capacity of communities to pro-actively engage, as vital elements of flourishing communities;
▪ economic development, training and education opportunities as key drivers in creating self-sufficient vibrant communities;
▪ equality of opportunity and social inclusion, which prioritises the needs of communities experiencing social or economic disadvantage, including rural isolation.

Factors That Enabled the Economic Development Model in Ireland to Work

Since 1958, Ireland has mainly implemented an export-led development strategy backed by Foreign Direct Investment (FDI). The Irish state has been very successful in attracting FDI thanks to a combination of factors. Some factors are the basic enablers of FDI:
▪ the Irish economy is open to international trade,
▪ its infrastructure is of reasonable quality,
▪ it offers opportunities to export to an attractive region – the European Union.
▪ Additionally, Ireland has leveraged four specific factors: its overall low costs, its skilled workforce, a favourable tax structure and the critical mass it has reached in some industries. As Ireland is recovering from the crisis, are these four specific factors still a competitive advantage for Ireland?

Community Support

To create a vibrant, sustainable, and inclusive society, communities need to be empowered to develop and sustain their well-being. Ireland’s Framework Policy for Local Community Development is built around 5 core objectives:
▪ engaging with communities;
▪ working with partners;
▪ planning for local and community development;
▪ delivery
▪ evaluating, monitoring, and reviewing the methods used.

These will be implemented on a cross-government basis to create a collaborative approach to local and community development. The development and implementation of policies, programmes and other interventions will be carried out by central and local governments in line with the core objectives. This is all achieved through local development support. The Community Enhancement Programme (CEP) aims to make funding to communities in need more streamlined. Its mission is to provide funding to improve facilities available to communities.

Recommendations

Based on the lessons, practices and outcomes from Rwanda and Ireland; how can the District Development Model be enabled to work in South Africa? Can this model assist to achieve a double-digit economic growth rate, sustainable foreign direct investment, increase the living standard of the population and enable the political system to be accountable and deliver results in time and within budget?
At the South African Council for Graduates (SACGRA) it is believed that the DDM requires a political will, competent leaders and officials, prudent management of resources and most of all; the rule of law to work effectively to deal with corruption.
The planned Annual DDM conference is earmarked to become a public monitoring and evaluation process on an annual basis. It is a session where municipalities that are doing well as follows can share their secrets:
▪ Consistent achievement of clean financial audit records;
▪ Use of funds as per the budget about 90% of the time;
▪ Delivery of the Integrated Development Plan as endorsed by most community members;
▪ Have savings and reserve funds earmarked for state of disaster;
▪ Other essential actors are in line with the Municipal Systems Act.

About the Annual District Development Model Conference

The University of Stellenbosch, Office of the President, Department of Cooperative Governance and Traditional Affairs, African Council for Graduates, Auditor-General South Africa, South African Local Government Association and Development Bank of Southern Africa have been identified as initial and primary partners to the programme. Such partnership is requested for a period of 10 years to ensure that the programme of helping local government is long term and sustainable.
Primary partners will form part of the planning, programme development, funding and feedback to participating municipalities.

Primary Questions

▪ What worked in Rwanda to achieve vision 2020?
▪ What is working in Ireland and is not working in South Africa?
▪ Lesson – SA must learn from others (countries) and other local municipalities that are effective?
▪ In South Africa, we might be working together to a certain degree but there is room for improvement. (We need to work together for the common good of all) – EGO mentality – Think win-win.
▪ Decisions are made at a high level but do not cascade down to the community
▪ Be proactive, begin with the end in mind, and implement first things first
▪ Sharpen the saw annually through the DDM conference and evaluation.