Chairperson, I certainly would like to extend my appreciation to hon members for the helpful and constructive comments that they've made. Some cross-cutting themes seemed to have emerged: one, the recession provides a serious challenge for us and for policy; two, the centrality of employment in dealing with the challenge; three, that the framework agreement concluded in February must become the basis for South Africa's response; and four, the need to work with urgency and focus.
I'd also like to thank all of you for your good wishes and in particular extend my appreciation for the work and comments of the hon Ms Coleman and hon Ms Fubbs, and the work that committee members of all parties do at portfolio committee level.
There were a number of comments that perhaps require a brief response. The hon Mr Marais said that the IDC should have strategic and labour-absorbing industries as its focus for investment. We agree. We started a conversation with the IDC on its mandate and its effectiveness in order to place employment as an explicit part of its mandate. The hon Kotsi asked where South Africa was on the question of the African continent. I would refer the hon member to the speech I made last week in the NA, but would also just perhaps point to the fact that South Africa is now the fourth largest source of foreign direct investment on the continent, although the 6% our investments comprise is still very low compared to, say, the 21% of the UK.
Intra-African trade is growing, but not fast enough. Between 1999 and 2006, for example, intra-African trade rose by 13,6% per annum, but trade with the United States rose by 27,5% and trade with China rose by 61% per annum, so we can do more and we wish to do more.
The hon Prof Turok has regaled us with a number of very apt and useful quotes by policy-makers. What is very clear is that there is a new policy space for countries to develop policies that work. The old orthodoxies, the rigid here-are-all-the-answers approach is gone. Not only are commentators thinking in new and fresh ways, but when we talk to policy-makers across the world there is an appetite to find what works. I think that is helpful for South Africa.
I would make a point on hon Turok's comments about counter-cyclical policies; it is the position of government that we do support a counter- cyclical policy approach. In a recession the state pumps liquidity into the markets. The more severe the crisis, the more aggressive the fiscal and monetary policy measures required. Not only is this the position of the South African government, there is now a global consensus on it.
I appreciate the kind comments of hon Mr Coetzee and wish him very well in his new responsibilities. I agree with him that people should be the centre of economic policy. However, the evidence of the last few months alone shows that unregulated markets do not result in that goal.
The state steps in to address what economists may call a market failure. In doing so, we draw on rich international experience, straddling many decades of fast-growing economies with active developmental states. Placing people at the centre is the very reason for our emphasis on decent work.
I take the point and I certainly would want to make the point that decent work is the outcome of many efforts, and our people accept that it won't happen in one go. However, we need to see progress on a step-by-step basis, so that economic progress is not reduced simply to the rate of economic growth, but goes fundamentally to the quality of the people who make that growth possible.
Hon Mr Rabie makes the point that the recession requires a holistic approach. I support his view and I point out that the framework agreement that was concluded with business, labour and community organisations and government in February this year is an unusually coherent policy programme. It deals with public investment, macroeconomic policies, industrial and trade policies, public employment and private sector initiatives as well as social interventions. That is what we want to do: We want to have holistic responses to the crisis that faces us.
Hon Mr Huang's points about the importance of avoiding retrenchments and the role of an industrial strategy that is based on innovation, knowledge, productivity and fair labour standards are very well made.
So, Chairperson, the debate has certainly been really worth taking note of and we would want to incorporate many of these ideas as we develop the mandate of the Ministry of Economic Development. Thank you.