The National Development Strategy (NDS)

1. INTRODUCTION | 2. VISION | 3. KEY MACRO STRATEGIC AREAS | 4. SECTORAL STRATEGIES

3. Key Macro Strategic Areas

To achieve the vision described above, key macro strategic areas were identified. They are macro in the sense that they are broad and encompass a number of more focussed strategic considerations.

3.1 Sound Economic Management

In the context of the free-enterprise nature of the Swazi economy, the central theme of sound economic management is the creation of an attractive macroeconomic environment to increase investor confidence. This will, in turn, enable the achievement of a number of desirable social objectives such as job creation, poverty reduction, economic empowerment of locals (including women) and environmental management. It will also help sharpen the effectiveness of the other key macro strategies.

Important elements of this strategy are sustainable national budget; full transparency and accountability in the use of public funds; realistic monetary policy taking into account the small size of the economy vis-a-vis the regional economy; creation of adequate physical infrastructure; protection and regeneration of the physical environment; effective and optimum utilization of the natural resource base; maximisation of productive employment opportunities; and bringing regional economic relations to work for the benefit of the Swazi economy.

3.2 Economic Empowerment

Economic empowerment involves raising the capability of various national groupings to widen their choice horizons.

Strategic considerations in this area include the following: active promotion of local entrepreneurs to start own businesses or grow in their existing businesses or enter into mainstream business operations through share purchases on a willing-buyer and willing-seller basis; orderly promotion of informal sector activities; rural development; assisting disadvantaged groups; and mainstreaming of gender relations in project formulation. Where there are existing structures for economic empowerment they should be streamlined and made to work more efficiently and effectively. Where necessary, existing structures should be introduced. In all cases, there should be sufficient consultation with all stakeholders so that the outcome can receive maximum support.

3.3 Human Resource Development

The importance of human resource development as a key macro strategy stems from the fact that human resources are one of the primary resources Swaziland has. This resource can only contribute meaningfully to sustainable economic and political development if its capabilities and qualities are enhanced.

Important elements in this strategy are appropriate education and training (including a reorientation away from the presently academic orientation to technical and vocational orientation); adequate incentives extended to businesses and households to encourage the full development of human capital; appropriate youth programmes; special attention to members of society with disabilities; and all other areas impacting on the quality of human capital (health, water, sanitation, shelter, etc).

3.4 Agricultural Development

Swaziland has a comparative advantage in agricultural products because of its good soils, good climatic conditions, potential for more quality agricultural research and competitive wage rates. A large portion of the population will be still deriving its livelihood from agriculture over the next twenty-five years. It, therefore, makes good economic sense to select agricultural development as one of the major areas of strategic thrust. The agricultural sector has relatively strong backward linkages with other sectors in the domestic economy. Hence by stimulating it, it is hoped to stimulate other sectors of the domestic economy.

This strategic area essentially involves raising the capability of the agricultural sector to generate a higher volume of goods and services for given factors of production, without destroying the environment. Important elements are food security at the household and community levels; commercialisation of agriculture on Swazi Nation Land; efficient water resource management and usage; and rational land allocation and utilization.

3.5 Industrialisation

This strategic area entails diversification away from agriculture into industry and services, as well as from the narrow range of non-agricultural activities into a broader spectrum. Such diversification will reduce overall economic risk, raise the degree of resilience in the economy and raise the capability of the economy to sustain its operations. Hence it is important for Swaziland to identify feasible areas for industrial development.

Important elements include the maximization of value-added on agricultural and mining products; promoting financial services (including offshore operations); fostering harmonious industrial relations; promoting sectors with strong backward and forward linkages.

3.6 Research for Development

The importance of this strategy stems from the fact that knowledge is one of the important ingredients for decision making. There must be a culture of generating relevant information before any decision is made in both the public and private sectors. Institutions dedicated to research must receive adequate funding which could be encouraged by appropriate fiscal incentives. The research should span all areas - including natural science, production technology, social science, humanities, education, population and health.

Where technology transfers from abroad are made, the possibility of adapting that technology to suit local conditions must be investigated. Conversely, if the required research capability threshold has been reached, locally based research results can find applications abroad.

3.7 Environmental Management

Swaziland recognises that environmental management is a necessary condition for sustainable development. This entails the maintenance of an ecological balance must be maintained; and accommodating environmental considerations in their policies, strategies and programmes of both the public and private sectors; accommodating environmental compliance procedures; and ensuring that sector strategies for achieving the country's vision are environmentally friendly. The Government is committed to the concept of sustainable development and to the implementation of Agenda 21.

Environmental management will help to forge a development path that provides prosperity for the country's present and future generations.