Mid-Term Review of NDP 10 NDP 10 Towards 2016 Ministry of Finance and Development Planning June 2013 Table of Contents EXECUTIVE SUMMARY .................................................................................................... X Background ............................................................................................................................ x Most Critical issues ................................................................................................................ x Macroeconomic Outlook for the Remaining Plan Period ..................................................... xi Strategy and Policy Going Forward ..................................................................................... xi Thematic Areas ...................................................................................................................... xi Conclusion .......................................................................................................................... xiii CHAPTER 1: NTRODUCTION ........................................................................................... 1 CHAPTER 2: THE MOST CRITICAL ISSUES FOR MID-TERM OF NDP 10 ................ 5 2.1 Introduction ................................................................................................................ 5 2.2 Strategies for Addressing Critical Issues for NDP 10 Phase II ................................. 5 2.2.1 Accelerating Economic Growth .............................................................................. 5 2.2.2 Economic Diversification ........................................................................................ 6 2.2.3 Employment Creation and Poverty Eradication .................................................... 8 2.2.4 Macroeconomic Stability and Increased Global Competitiveness. ....................... 9 2.2.5 Governance and Factor Productivity................................................................... 10 2.2.6 Sustainable Use of Environment .......................................................................... 10 2.2.7 Disaster Management .............................................................................................. 10 CHAPER 3: MACROECONOMIC REVIEW AND OUTLOOK ................................... 12 3.1 Introduction .............................................................................................................. 12 3.2 Projections for the Second Half of NDP 10 ............................................................ 13 3.3 Government Budget .................................................................................................. 14 CHAPTER 4: STRATEGY AND POLICY ....................................................................... 15 4.1 Introduction .............................................................................................................. 15 4.2 Strategies for Addressing the Critical Issues for NDP 10 Phase II ......................... 15 4.2.1 Accelerating Economic Growth .................................................................................. 15 4.2.2 The Selection of Production Activities that Produce Rapid Growth .......................... 16 4.2.3 Turning Production Inputs into Sources of Rapid Economic Growth ........................ 17 4.2.4 The Creation of a Conducive Policy Environment for Rapid Economic Growth. ...... 20 4.2.5 Macroeconomic Stability ............................................................................................ 20 i 4.2.6 Macroeconomic Policy Coherence ............................................................................. 22 4.2.7 Macro-Micro Policy Congruence ............................................................................... 22 4.3 Economic Diversification ......................................................................................... 22 4.4 Disaster Management ............................................................................................... 23 4.5 Sustainable Development ........................................................................................ 23 4.6 Economic Growth and Governance ........................................................................ 24 CHAPTER 5: ECONOMY AND EMPLOYMENT .......................................................... 25 5.1: Introduction................................................................................................................. 25 5.2 Doing Business ........................................................................................................ 27 5.2.1 Achievements during the First Half of the Plan ................................................... 28 5.2.2 Problems/Constraints Encountered during the First Half of the Plan ....................... 30 5.2.3 Policies and Strategies for the Remainder of NDP 10 ............................................... 31 5.3 Infrastructure ............................................................................................................ 35 5.3.1 Achievements during the First Half of the Plan .................................................... 36 5.3.2 Problems/Constraints Encountered During the First Half of the Plan ................ 40 5.3.3 Policies and Strategies for the Remainder of NDP 10 ............................................... 42 5.4 Information and Communication Technology (ICT) ................................................ 45 5.4.1 Achievements during the First Half of the Plan ......................................................... 45 5.4.2 Problems/Constraints Encountered during the First Half of the Plan ....................... 48 5.4.3 Policies and Strategies for the Remainder of NDP 10 ............................................... 48 5.5 Competitive and Productive Human Resources ............................................................ 49 5.5.1 Achievements during the First Half of the Plan ......................................................... 49 5.5.2 Problems/Constraints Encountered during the First Half of the Plan ....................... 56 5.5.3 Policies and Strategies for the Remainder of NDP 10 ............................................... 57 5.6 Employment and Production ......................................................................................... 60 5.6.1 Achievements during the First Half of the Plan ......................................................... 60 5.6.2 Problems/Constraints Encountered During the First Half of the Plan ...................... 61 5.6.3 Policies and Strategies for the Remainder of NDP 10 ............................................... 62 5.7 Conclusion ............................................................................................................... 63 CHAPTER 6: SOCIAL UPLIFTMENT ............................................................................ 64 6.1 Introduction ............................................................................................................. 64 ii 6.2 Social Development– ................................................................................................ 64 6.2.1 Achievements/Progress ........................................................................................ 64 6.2.2 Social Development - Challenges ......................................................................... 66 6.2.3 Social Development- Way Forward ...................................................................... 67 6.3 Health and HIV/AIDS ............................................................................................... 69 6.3.1 Achievements/Progress ......................................................................................... 69 6.3.2 Health and HIV/AIDS - Challenges ...................................................................... 70 6.3.3 Health and HIV/AIDS – Way Forward ................................................................. 71 6.4 Conclusion ................................................................................................................ 72 CHAPTER 7: SUSTAINABLE ENVIRONMENT ........................................................... 73 7.1 Introduction ................................................................................................................ 73 7.2 Assessment of NDP10’s first half implementation Performance ............................... 74 7.2.1 Pollution Prevention and Control ............................................................................. 74 7.2.2 Sustainable Utilisation of Natural and Cultural Resources ..................................... 75 7.2.3 Climate Change/Global Warming ............................................................................ 78 7.3 Proposed Policy Reforms and Programmes for the remainder of NDP 10 ............. 79 7.4 Conclusion ................................................................................................................ 81 CHAPTER 8: GOVERNANCE, SAFETY AND SECURITY .............................................. 82 8.1 Introduction .............................................................................................................. 82 8.2 Achievements and Challenges under Open, Democratic and Accountable Pillar ... 91 8.2.1 Achievements ......................................................................................................... 91 8.2.2 Challenges ............................................................................................................. 91 8.3 Achievements