INTRODUCTION

Nedlac's goal is to promote economic growth, participation in economic decision making and social equity by bringing together organised business, organised labour, organised community structures and government to jointly develop social and economic policies. Nedlac's activities take on a variety of forms and differ greatly in the length and depth of engagement. During 1998/9 Nedlac parties met more than 300 times to advance these goals. This number of meetings is reflective of the extent to which social dialogue has become entrenched as a process of governance in South Africa. Further, delegates are not remunerated for their attendance at Nedlac meetings. This is another sign of the deep commitment of business, community, government and labour to dialogue and partnership.

This year's annual report focuses on Nedlac's activities from 1 April 1998 to 31 March 1999 and analyses the socio-economic conditions within which Nedlac undertook its work.

To provide readers with an indication of South Africa's performance in a global context, the report compares South Africa's socio-economic conditions to those in selected countries. These countries have been chosen according to the principles that inform the work of Nedlac -growth and equity. The countries are:

• Malaysia and Thailand, which share a similar GDP per capita with South Africa.
• South Africa, Colombia and Zimbabwe, which share a similar challenge in overcoming inequality.

Nedlac's social partners have recognised that the Southern African Development Community is increasingly important to ensuring sustainable growth in South Africa. Accordingly, the report will provide socio-economic data from SADC countries where possible.

The first section of this report provides an overview of Nedlac, explaining where it came from, how it is constituted and the roles that it must play.

The second section of the report analyses indicators of economic growth and employment. These variables constitute the parameters of the economic development challenge that faces South Africa and Nedlac. This section identifies creating employment as one of the key challenges facing South Africa.

During 1998 Nedlac participated in the negotiations leading to the Presidential Jobs Summit in October 1998. Section Three reports on the Jobs Summit agreements.

Nedlac conducts the majority of its work programme through its chambers and subcommittees of the chambers. The deliberations of each chamber are influenced by society-wide economic and social trends specific to the work of their chamber. The fourth section of the report links the work of the chambers to an analysis of the specific social and economic challenges that face the constituencies in the formulation and monitoring of policy. This structure reflects the growing linkages between information sharing, research and Nedlac's role in the monitoring and implementation of socio-economic policy.

In addition to its regular work programme, Nedlac is actively involved in a range of other activities. The fifth section of the report details these activities.

The sixth section of the report provides the public with information as to how Nedlac has used its budget.

The appendix to the Annual Report provides information on the resources available from Nedlac.