Infrastructure is only one part of the job-creation puzzle

Helen Zille, Leader of the Democratic Alliance
13 February 2012

President Jacob Zuma's fourth State of the Nation speech last week shows that, at last, the ANC government is coming to terms with the role of the state in facilitating job-creating economic growth.

There is a growing consensus in the centre of SA politics that sustainable job-creating growth is driven by the private sector, especially small, medium and micro enterprises. The job of the state is to create an environment that will attract and retain investment, entrepreneurship and skills.

In a globalised economy, the state must ensure that the conditions exist for SA businesses to be internationally competitive. A key component of this is the provision of excellent infrastructure, including water, energy, technology, transport and roads, sewage systems etc. It is one of the key roles of the state to lead in the development of infrastructure that creates a platform for growth.

We welcome the fact that the President focused on this aspect of the state's role in increasing South Africa's competitiveness. Without this we cannot attract investment, grow the economy and create jobs.

But infrastructure is only one aspect of the state's role in increasing a country's economic competitiveness.

There are many other roles the state must play, and this is where the President's speech fell short last week. Click here to read more.