But we have first to create a favourable economic climate in which human development can thrive. We have to achieve high rates of economic growth in order to lay the foundation for the participation of our people in the process of their development. Central to this is a sound financial and economic policy framework which is suitable for the market economy. Secondly, we cannot reach our goal without first eliminating poverty, reducing population growth patterns, training and educating people, delcentralising government, liberalizing economic activity and investing material and human resources in our ecosystem. Absolute poverty is rife, the Human Development Index is low and many people survive on state social security of about R365 per month or 80 US dollars.
Adult illiteracy is very high.
Our economy is too small to meet these challenges on its own, due to negative per capita income growth. Although we have mining and agricultural sectors which have the capacity to generate appreciable revenue, much of the raw materials leave the province and there are no forward and backward linkages with the rest of the economy. The manufacturing sector is not yet developed to such an extent that it can be relied upon to contribute significantly to the economy. The first task we embarked on upon assumption of office was to create a smooth functioning of state departments and parastatals. We have kept within our budgetary limits and put an immediate end to financial wastage.