inclusion is a critical need for the country. monetary policy should be complemented by growth - oriented and job - creating fiscal, industrial and labour policies. emerging market and developing economies are now more resilient than in previous decades but structural issues still need to be addressed. weaknesses in any subsector or in regulation or corporate governance will limit monetary policy efficacy and lead to weak growth, which in turn is a drag on fiscal consolidation. policies in general must therefore emphasise the resolution of underlying structural problems within the economy, and monetary policy must be as supportive as possible, with due regard to ensuring price stability. although monetary policy can therefore contribute to inclusive and sustainable growth ( and you will probably agree that the sarb has indeed adopted policies that are supportive in this regard ), one needs to recognise the limitations of monetary policy and hence acknowledge that other policymakers and stakeholders also have an important and significant role to play in achieving both inclusive and sustainable growth over the longer term. thank you. references : aron j. and muellbuaer, j., “ transparency, credibility and predictability of monetary policy under inflation targeting in south africa ”, department of economic, oxford and nuffield college, oxford, 31 march 2007. ianchovichina, e and lundstrom, s. what is inclusive growth?, policy research working paper no. 4851, the world bank. 2009 hausmann, r., rodrik d., and a. velasco. growth diagnostics. mimeo, harvard kennedy school. cambridge. 2005. lopez, h. “ pro - poor growth : a review of what we know ( and of what we don ’ t ) ” mimeo. world bank. 2004 the infrastructure plan, presidential infrastructure coordinating commission ( picc ), april, 2012. bis central bankers ’ speeches

imperative that our human capital development strategy is forward - looking and proactive. this necessitates us to take a hard look at our education system, as a recent assessment of the quality of state education amongst 142 countries, ranked south africa at 133rd, despite the high levels of investment in education which now stands at r207bn per annum. planning must therefore focus sharply on upgrading the quality and relevance of training while enhancing the skills of the labour force. in order to upgrade human resource skills to meet the need of an increasingly sophisticated economy, training at every level must be strengthened to generate well - trained labour to meet industry demand both now and in the future. an inclusive growth strategy looks for ways to raise the pace of growth by utilizing the labour force to the fullest possible extent. high unemployment is the result of chronic skill and geographical mismatches and of policies, product market structure, and labour market arrangements that often protect insiders at the expense of the unemployed. high margins in product markets and upward wage pressure in labour markets have resulted in uncompetitive domestic costs of production in a number of sectors. this erodes external competitiveness and as a consequence excludes part of the population from formal economic activity. it also ends up constraining a country ’ s ability to diversify exports. entry - level wages are also sometimes above the productivity levels of less experienced workers and new entrants to the labour market. this discourages labour demand. sustainable job creation that significantly reduces unemployment can be achieved with labour and product market reforms that specifically target labour intensive production processes. a more flexible wage setting mechanism that better aligns wages with productivity levels at the firm level will improve the business environment and our bis central bankers ’ speeches competitiveness and should significantly contribute towards increasing employment opportunities. important factors that serve to improve individual and enterprise or micro productivity include improved management skills, updated technology and better capital equipment. collective factors at the enterprise level that have a decisive influence on productivity outcomes include the adoption of the continuous - improvement - type work ethic and overall quality consciousness that is so prevalent in developing asia. in many countries, active labour market policies also serve to raise the rate of employment creation. this includes, transport subsidies for job seekers, on - the - job training and in some instances, temporary youth wage subsidies. infrastructure as a key jobs driver emerging - market and developing country growth is on average higher than that of south africa and is indicative of country specific structural constraints. a sustained increase in