INPUT BY THE PRESIDENT OF THE REPUBLIC OF SOUTH AFRICA: HON MR KGALEMA MOTLANTHE

The President of the Republic of South Africa in his opening speech, acknowledged the fact that it had been another busy and challenging year for Social dialogue. During the past year, South Africa had experienced many of the challenges and complications that had come to be associated with globalisation.

The President cautioned that ignoring unemployment and job insecurity will compound the country's social problems and retard the economic growth which is already slowing because of the global financial meltdown.

The President stated that a combination of global and domestic circumstances, including the soaring food and fuel prices and increased interest rates provided a real test for the country's economic policies.

The President stated that while he saw nothing inherently destructive in globalisation; it had consequences that had put increased pressure on the economy and especially on the poor.

While the economy had maintained a growth rate of close to 3% a year in capita terms between and early 2008, recent results indicated that the country had entered different times. The last quarter has registered a growth of 0.26 %, which indicated that the economic growth prospect was taking a dive.

The President mentioned that the biggest challenges the country faced were; how to ensure greater equality, improved human development and social justice in the country, adequate supply of skills to the economy, both in private and public sectors in the current phase of globalisation.

The President further stated that scourges of HIV/Aids and crime affected everyone including the economy, as these challenges highlighted very sharply the connection between social problems and economic development.

The President highlighted that only through an effective Social dialogue system could South Africa find the best solutions to deliver economic and social development at National, Regional and Global levels.