CHAPTER 3: REVIEW OF THE EXISTING SOCIAL AND ECONOMIC POLICIES AND STRATEGIES

3.1 INTRODUCTION

Since its inception in 1980 (as SADCC), SADC has constantly engaged in developing policies and strategies in the different areas of regional cooperation and integration, aimed at achieving its objectives. These strategies and policies were consolidated into sectoral strategy papers, Memoranda of Understanding (MOUs) and Protocols, which are key to the process of Community Building.

During its 22 years of existence SADC has made significant progress in the areas of regional cooperation and regional market integration, as well as in regional infrastructure and services.

This chapter briefly analyses and evaluates current economic and social policies and strategies of the different areas of regional cooperation and integration in SADC. This evaluation is intended to identify the gaps and challenges facing SADC at present, in order to rationalise the SADC Programme of Action (SPA) and strategic priorities over the next 15 years, in line with SADC's main objectives.

The review of current policies and strategies will be done according to the following new clusters:

• Trade, Industry, Finance and Investment (TIFI);
• Infrastructure and Service (IS);
• Food, Agriculture and natural resources (FANR);
• Social and Human Development and Special Programmes (SHDSP)

3.2 TRADE, INDUSTRY, FINANCE AND INVESTMENT

3.2.1 OVERVIEW

The Trade, Industry, Finance and Investment (TIFI) cluster comprises of trade and industry, mining and finance and investment. These sectors are intrinsically interrelated and can easily influence development and poverty reduction in the region.

Trade is viewed as catalytic to deeper regional cooperation and integration and can foster growth and poverty reduction. It is therefore an important instrument for sustainable economic development. As in the case of MERCOSUR, ASEAN and CARICOM, those countries that have integrated themselves into the world economy through trade and investment have enjoyed higher economic growth, an improvement in many key social indicators and the standard of living of their peoples.

SADC exports are mainly primary and unfinished goods (about 90% of SADC exports comprise of mineral and agricultural goods), and its imports are mainly capital and intermediate goods. Only the Republic of South Africa (RSA) and to some limited extent Zimbabwe have the capacity to produce capital and intermediate goods. This impacts negatively on the development of the Region and leads to imbalances in economic levels. Furthermore, the Region produces similar primary goods, which are mainly agro and mineral based.

The SADC region produces significant quantities of major metals and minerals. It contributes about 53% of vanadium, 49% of platinum, 40% of chromite, 36% of gold, 50.1% of diamonds and 20% of cobalt to the world production. A number of SADC countries rely on this sector for their foreign exchange earnings and there is potential for investment and wealth creation in it. However, the region has been experiencing incidences of illegal mining and trade in diamonds and gemstones. With respect to diamonds, the Kimberly process that certifies the source of diamonds has already started making an impact in dissuading illegal mining and trade in diamonds. With respect to gemstones, SADC is working on improving the legal and regulatory framework that governs production and sale of gemstones in order to do away with illegal mining and sale of gemstones.

Gross Domestic Savings (GDS) fell short of regional Gross Domestic Investment by 2.7% during the period 1980-99. SADC is undertaking major financial sector reforms in order to increase gross domestic savings.

In the early 1990s SADC as a group attracted an average of US$ 691 million FDI, which quadrupled during the period 1995-98 to US$3061 million and of this investment, South Africa accounted for two-thirds. RSA also accounts for 50% of FDI inflows to other SADC countries and 25% of FDI in Sub-Saharan Africa was directed to the RSA between 1995-2000. The level of investment for the rest of SADC averaged 23 % of GDP.

In general, inflation rates showed a declining trend for the more stable countries of SADC during the first half of 2000. However interest rates have remained high for the whole of SADC with very wide variations from rates below 20% to rates ranging between 40 and over 100%. In addition to this, most Member States have experienced an increasing external debt burden in the last two decades. This calls for sound regional debt management policies in SADC.

The policies that have so far been developed in all the above sectors will be evaluated on the basis of their relevance to overall objectives of the SADC region as well as the progress so far made by member states in effecting them for the development of trade, industry, mining, finance and investment in the region. This will also be looked at in context of constraints arising from lack of capacity of Member States to implement regional policies.

3.2.2 TRADE

3.2.2.1 Review of Current Policies and Strategies

The SADC Protocol on Trade, as amended, envisages the establishment of a Free Trade Area in the region by 2008 and its objectives are to further liberalise intra-regional trade in goods and services; ensure efficient production; contribute towards the improvement of the climate for domestic, cross-border and foreign investment; and enhance economic development, diversification and industrialisation of the region. The specific strategies adopted to achieve these objectives are:

• The gradual elimination of tariffs;
• Adoption of common rules of origin;
• Harmonization of customs rules and procedures;
• Attainment of internationally acceptable standards, quality, accreditation and metrology;
• Harmonization of sanitary and phyto-sanitary measures;
• Elimination of non-tariff barriers; and
• Liberalization of trade in services.

3.2.2.2 Evaluation of Trade Policies and Strategies

The overall objective of the SADC Trade Protocol is to attain a Free Trade Area as a step towards achieving a Customs Union and subsequently a Common Market. On the whole, the SADC trade policies and strategies are consistent with the objectives of eliminating obstacles to the free movement of capital, labour and goods and services and the improvement of the region's economic management and performance through regional cooperation with the ultimate goal of eradicating poverty.

The success of this depends on the effective implementation of the trade protocol by all Member States especially with regard to elimination of tariff and non-tariff barriers that takes into consideration the specificities of different Member States. These are to be accompanied by appropriate rules of origin, which will encourage the optimum utilisation of regional resources and allow forward and backward linkages in the various production chains.

Measures have also been taken to harmonise customs rules and procedures. These coupled with internationally acceptable standards, quality, accreditation and metrology as well as harmonisation of sanitary and phytosanitary measures are expected to enhance intra-SADC trade. As far as services are concerned, a legal framework will be adopted to ensure compliance with international commitments made by SADC Member States.

3.2.2.3 Challenges for Trade Policies and Strategies

The key challenge for SADC is to establish a Common Market within a reasonable time frame in order to increase the percentage share of SADC trade in the world market. This will only be possible, when Member States comply with the decisions agreed within the framework of the SADC Trade Protocol and to speed up implementation bearing in mind the underlying principles and objectives of the protocol. This also entails compliance with and implementation of WTO obligations as well as taking advantage of preferences provided under the Cotonou Agreement and the Africa Growth Opportunity Act.

It would be essential therefore to address the supply side constraints as well as competitiveness of industry with regard to production and to cushion the impact of the international tariff reduction on the development of the smaller, landlocked and less developed members of SADC.

As SADC moves into higher levels of integration such as the customs union, the issue of overlapping membership of SADC countries in a number of other regional bodies and the conflicting obligations arising thereof should be addressed urgently. A resolution on this issue would strengthen SADC's position as a building bloc of the African Union. The challenges posed by globalisation especially within the framework of the WTO, the AGOA and the Cotonou Agreements should be taken into account.

The other challenge is in developing new policies and strategies that would target vulnerable groups such as the rural and urban poor, small businesses, informal operators and women to ensure that they take advantage of the policies.

3.2.3 INDUSTRY

3.2.3.1 Review of Current Policies and Strategies

Current policies and strategies being pursued in the region focus on export promotion, promotion of industrial linkages, efficient import substitution, improvement of the investment climate, facilitation of imports of essential goods, regional human development, enhancing industrial support services, equitable distribution of industrial activity and adopting flexible market oriented exchange rates.

3.2.3.2 Evaluation of Current Policies and Strategies

These policies are in line with the strategic objectives of harmonising sound macroeconomic policies and maintaining a conducive environment for both local and foreign investment; development of deliberate policies for industrialisation; and the development of economic and social infrastructure. SADC industrial policies and strategies have to a limited extent contributed to the development of industry in the region. There is need therefore to ensure a balanced and mutually beneficial industrialization in the region with focus on the promotion of industrial linkages and efficient utilisation of regional resources for the creation of productive employment opportunities across the region.

3.2.3.3 Challenges in Current Polices and Strategies

The industrial sector needs to withstand the challenges of globalisation, which range from competitiveness to industrial and product diversification, productivity, technology transfer and research and development. This can only be achieved with an overall improvement in productivity and competitiveness combined with a diversified and balanced industrial growth in a wider, well-linked economic space that allows for the efficient and effective use of factors of production on the basis of increased value addition. The new industrial strategies and policies need to encourage the participation of women in the development of small and medium scale enterprises and promote the use of information and communications technology. SADC should pay particular attention to investment promotion, entrepreneurship development and ensuring that the manufactured products meet internationally recognised standards and quality in order to compete favourably in the global economy.

3.2.4 MINING

3.2.4.1 Review of Current Policies and Strategies

The main focus is on the development of a regional mining sector that is economically, socially and environmentally sustainable, capable of meeting the regional mining challenges as well as ensuring long-term competitive growth for the sector. To this end, policies are being harmonised with a view to improving investment climate, information flows and development of a commercially viable small-scale mining industry with greater participation of women.

3.2.4.2 Evaluation of Current Strategies and Policies

The mining sector policies and strategies are in line with the SADC's strategic priority of promoting and maximizing productive employment and the utilization of resources of the region. Since the Protocol on mining came into force in 2000, mining legislation has almost been harmonised in all SADC Member States with the exception of the D.R.Congo. However, there is still need for harmonization of policies targeted at developing the sector. The sector has also achieved enhanced mineral prospectivity and all Member States have accessible databases. Public and private mining and training institutions have been effectively networked. The sector is, however, still constrained in terms of dealing with barriers to the flow of factors of production in order to facilitate more investment in it. In an endeavour to improve export earnings and derive more benefit from minerals, SADC is developing strategies for value addition.

3.2.4.3 Challenges in Current Policies and Strategies

The challenges in the mining sector include the acquisition of technology and know how to facilitate value addition, facilitating more investment in the sector and ensuring environmentally sustainable development. Another challenge is that of increasing the participation of small-scale operators and vulnerable groups including women.

3.2.5 FINANCE AND INVESTMENT

3.2.5.1 Review of Current Policies and Strategies

The policy objectives for the finance and investment sector include encouraging movement towards regional macroeconomic stability and convergence through prudent fiscal and monetary policies; providing a framework for co-operation in the area of finance; promoting the development of sound investment policies and encouraging savings; facilitating and stimulating investment flows and technology transfer and innovation in the region.

The strategies for achieving these policy objectives for finance and investment include pursuit of macroeconomic convergence, co-ordination of direct and indirect taxes, liberalization of current and capital account transactions, reform of payments systems, resource mobilization through development finance institutions and other financial entities and improving incentives for investment. In addition, it is important that national investment acts, codes or guidelines facilitate investment in the region and that policies promote free movement of capital in SADC as well as encouraging Member States to accede to international conventions on the protection and guarantee of investments.

For a number of themes, Memoranda of Understanding (MOUs) have been prepared. The MOUs on Macroeconomic Convergence and Cooperation in Taxation and Related Matters have been signed while those on Investment promotion, Exchange Control Policies, Payment, Clearing and Settlement Systems, and Harmonization of Legal Operational Frameworks of Central Banks of SADC and Development Finance Institutions (DFI) are still being processed. Other forms of cooperation exist amongst stock exchanges, commercial banks and non-banking financial institutions.

Under the Macroeconomic Convergence MOU, Member States have agreed that to achieve and maintain macroeconomic stability, all countries should converge on stability-oriented economic policies, which include, restricting inflation to low and stable levels, maintaining prudent fiscal stance that eschews large fiscal deficits, and high debt servicing ratios, and minimize market distortions. A macroeconomic surveillance mechanism will be established to monitor the move towards convergence on selected indicators.

The MOU on Cooperation in Taxation and Related Matters underscores the need for cooperation on capacity building in the area of taxation with the aim of harmonising tax regimes, the application and treatment of tax incentives, direct and indirect taxes and treaties to avoid double taxation.

3.2.5.2 Evaluation of Current Policies and Strategies

The policies and strategies are generally consistent with the SADC Common Agenda and they conform to the overall strategic priorities of the region as they relate to achieving complementarity between national and regional strategies and programmes, creating appropriate institutions and mechanisms for mobilization of requisite resources and progressive elimination of obstacles to the free movement of capital.

There has been substantial liberalization of the banking, finance and capital markets as well as investment services in SADC unilaterally and through a number of agreements and memoranda of understanding. Apart from the ongoing initiative of developing the Finance and Investment Protocol, the sector has already implemented a number of activities to promote investment, such as the investment forums in the region and outside and the annual Southern African Economic Summit. The SADC Committee of Central Bank Governors has developed a monetary and financial statistical database, developed an information bank on the policies and structures of SADC Central Banks, improved the national clearance, payments and settlement systems and facilitated repatriation of bank notes and coin among SADC countries, among others.

Financial reforms in Southern Africa have largely focused on the banking sector with a view to making them more competitive. The main features of these reforms have been liberalization of entry into the banking industry, removal of official controls on deposit and lending interest rates, and strengthening of central bank regulatory and supervisory functions to improve prudence. The adoption of these financial reforms has permitted new financial institutions to enter the banking industry and facilitated the introduction of new financial products. These reforms have however not been sufficient to increase competition or stimulate increased savings mobilization and intermediation services in all countries. Access to credit and capital remains an area of concern for small to medium enterprises and the vulnerable groups such as the disabled and women. Most SADC members are operating effective stock exchanges, which have an important role in mobilizing savings, facilitating privatisation and attracting foreign capital.

However, except for the Multilateral Monetary Area (MMA) countries (Lesotho, Namibia, South Africa and Swaziland) there is no substantial integration in the monetary sector within SADC. As SADC approaches the Common Market, there will be need to coordinate and to some extent harmonize monetary policies in order to achieve balanced development of the region.

Seven SADC Member States have investment acts whose main aim is to attract foreign investment by offering low corporate and personal income tax rates; tax holidays and exemptions on profits, dividends, interest and royalties; exemptions from import duties and sales tax on inputs and capital equipment; tax rebates and drawbacks; and other allowances. In many respects these investment laws are similar and hence very competitive. Therefore, there is need for coordination of policies and activities for promoting investment in the region including acceptance by Member states to credit rating, which would give investors confidence in the region.

3.2.5.3 Challenges in Current Policies and Strategies

The main challenge for SADC is to intensify the pace of integration and harmonisation in this sector and to increase domestic savings and investment in the region. SADC also has to implement sound macroeconomic and prudent fiscal and monetary policies that will facilitate the reduction of inflation and interest rates, deficits, debts and the free flow of capital through liberalisation of exchange controls. Another challenge is that despite substantial liberalisation in the financial sector, small and medium enterprises continue to face difficulties in accessing credit from the banking system. There is also a need for financial reforms for the non-bank finance institutions. Such reforms should address the case for women entrepreneurs, who are constrained by laws and procedures, which deny them full capacity to access credit.

The other serious challenge facing the region is how to stamp out money laundering, which is assuming great proportions not only in the region, but also at the continental level.

3.3 INFRASTRUCTURE AND SERVICES

3.3.1 OVERVIEW

The development of infrastructure and services is critical for promoting and sustaining regional economic development, trade and investment. The potential for deepening integration through the sharing of the production, management and operations of infrastructure facilities, hubs, development corridors or poles is considerable.

While the overall picture is one of inadequate coverage, poor maintenance, weak financing and inefficient management systems, differences do exist across the countries in the Region. Many countries have been able to upgrade and expand their infrastructure assets and improve services through a combination of policy changes, institutional reforms and conducive investment climate. These policy reforms have paved the way for increased private sector involvement in the provision of infrastructure resulting in commercialisation and cost recovery measures being put in place. The major challenge now facing Governments is to establish regulatory frameworks to foster fair competition, support the emergence of a regional market and ensure that end users obtain the expected benefits.

In order to enable the region to meet the challenges of infrastructure development, SADC has put in place legal and policy frameworks through the formulation and adoption of appropriate instruments such as protocols and policy and strategy guidelines. These are examined in the subsequent sections.

3.3.2 ENERGY

3.3.2.1 Review of Current Energy Policies and Strategies

The overall goal of the Energy Sector is to ensure the availability of sufficient, reliable, least-cost energy services that will assist in the attainment of economic efficiency and the eradication of poverty whilst ensuring the environmentally sustainable use of energy resources. The sub-sectors for cooperation include woodfuel, petroleum and natural gas, electricity, coal, new and renewable sources, and energy efficiency and conservation.

The SADC Protocol on Energy was signed in August 1996 and came into force in April 1997 after receiving the required number of ratifications. The Protocol aims at the harmonisation of national and regional energy policies; cooperation in the development of energy and energy pooling; ensuring the provision of reliable, continued and sustainable energy services in the most efficient and cost-effective manner; promoting joint development of human resources and organisational capacity building; and cooperation in research, development, adaptation, dissemination and transfer of low-cost energy technologies.

The Protocol provides the broad legal and policy framework for cooperation in the energy sector and is operationalised through a SADC Energy Cooperation Policy and Strategy and an SADC Energy Sector Action Plan approved by the SADC Council of Ministers in 1996 and 1997 respectively. The Action Plan identifies four priority areas as Energy Trade, Information and Experience Exchange, Training and Organisational Capacity Building, and Investment and Funding. An SADC Energy Activity Plan (approved by Council in 2000) further elaborated the four priority areas into a detailed programme of activities to be implemented over a 3-5 year period.

3.3.2.2 Evaluation of Current Policies and Strategies

The Energy Policy Framework is comprehensive and its emphasis on the availability of sufficient, reliable and least cost energy services addresses the broader SADC objectives which include attracting investment and promoting competitiveness and trade as a means for eradicating poverty, bearing in mind the need for the environmentally sustainable use of energy resources.

The policy framework is also supportive and responsive to the SADC's strategic priorities that are targeted at industrialisation, the promotion of economic and social infrastructure, developing agriculture, gender mainstreaming, human resources development, and improving social welfare.

Although progress in the implementation of the Protocol has been rather slow, some encouraging strides have been made especially in the electricity sub-sector through the Southern African Power Pool (SAPP). The interconnection of power grids has progressed well and resulted in the introduction of a short-term energy market, which has turned SAPP into a competitive pool. Encouraging progress has also been recorded in the establishment of a Regional Regulatory Association (RERA).

3.3.2.3 Challenges in Policies and Strategies

Although the SADC Energy Sector policy framework is comprehensive and addresses the broader SADC objectives and strategic priorities, the programmes on the ground fall short of addressing some of the objectives of the Protocol. The challenges include the need to develop programmes that will address gender issues, and research and technology development. In addition, there is need to secure funding for projects/programmes dealing with grid interconnections, joint exploration, rural electrification, new and renewable sources of energy, and energy efficiency and conservation. Overcoming these challenges would not only add momentum to the longer-term vision of full economic integration, but would also contribute considerably towards increased economic growth and poverty reduction.

3.3.3 TOURISM

3.3.3.1 Review of Current Policies and Strategies

The overall goal of the Tourism Sector is to develop, promote and market the region as a single, but multifaceted tourism destination; and to improve the quality, competitiveness and standards of service of the tourism industry in the SADC region.

The protocol on Development of Tourism is the only legal policy instrument for the sector, which was developed and signed by Member States in 1998. The Protocol has been ratified and came into force on 26 November 2002, and most of its programmes are being implemented. The objectives of the protocol are to ensure equitable, balanced and complementary development of the tourism industry in the region; to optimise resource usage; involve small and micro-enterprises, local communities and women and youth; and to facilitate intra-regional travel through easing visa-restrictions.

One of the provisions of the protocol is the setting up of a regional body to market the SADC region as a collective tourism destination. In this context, the "Regional Tourism Organisation of Southern Africa" (RETOSA) was established in 1998. RETOSA is governed by a Charter, which was signed by all Member States and is in force.

Apart from ensuring greater private sector involvement in the development of the tourism sector, RETOSA is also the marketing and promotional arm of SADC, responsible for the positioning of SADC as a common destination. One of the strategies pursued by RETOSA in marketing the SADC region is the five year Business Plan (2003-2007). Its main objective is to market the SADC Region as a preferred destination; and to mobilize resources for tourism investment and development in the region.

The Tourism Sector Ministers approved a five year tourism development strategy (1995-1999) for the Tourism Sector, which is outdated and needs to be reviewed, to take into account the latest developments in the Tourism Sector.

3.3.3.2 Evaluation of Current Policies and Strategies

The Tourism Protocol, which provides the policy framework for tourism development is generally in line with "SADC" objectives, as enumerated in the SADC Treaty as well as the strategic objectives and SADC common agenda stated in the report on the "Review of Operations of SADC Institutions".

The RETOSA Charter, which is in force, is also generally in line with the objectives and Common Agenda of SADC.

The Business Plan of RETOSA is generally responsive to the strategic priorities of SADC. However, there is need to vigorously market the region as a preferred destination.

The five year tourism strategy is outdated and needs to be reviewed. It was developed and implemented before the protocol came into being.

The tourism policies and strategies are focused on joint marketing and branding the SADC region as a preferred destination for tourists; on increased private investment flows into the region; and promoting the development of quality infrastructure and services. To implement these policies and strategies, the region needs to put in place an efficient network of incoming wholesalers to programme and package comprehensive regional multi-destination tours; to sell these internationally; and to handle incoming passenger flows.

3.3.3.3 Challenges in Current Policies and Strategies

One of the most important challenges facing the sector is the review of the outdated five-year Tourism Development Strategy, in line with the SADC Indicative Strategic Development Plan (RISDP). This will allow the sector to comprehensively address the broader SADC objectives as well as the objectives of the Tourism Protocol.

The other challenges include the development of programmes and projects to address professional marketing and communication; enhancing the role of the private sector in RETOSA; developing network destinations; developing strategies to attract investment in Tourism infrastructure; harmonization of tourism policies and laws in Member States; developing a tourism inventory (capacities, assets and attractions) for SADC; promotion of intra SADC Tourism and Univisa system; human and institutional capacity building and strengthening in order to lead the transformation process by implementing the policies; putting in place safety and security measures; and the development of integrated tourism development projects aimed at linking existing and future Transfrontier Conservation Areas (TFCAs) in SADC.

Tourism services are cross sectoral in nature, its services and benefit are usually captured under a set of sectors such as transport, hospitality industry, trade, services and manufacturing.

The tradition national accounts methods have therefore failed to summarise the total contributions to growth, employment, balance of payments, trade creation and poverty alleviation. As a result, the development of tourism activities has not enjoyed the priority it should, particularly when it comes to resource allocation. The challenge is to develop methodologies on how best to capture tourism sector activities in national accounts and balance of payments estimates so as to be accorded priority in national budgets.

The other challenge for the SADC region is to put in place a conducive environment for the growth of the tourism industry through a well thought out policy mix that will focus on, amongst other things, the promotion of investment into tourism facilities by both the public and private sectors; removal of barriers to tourism; and the competitive marketing of the industry.

3.3.4 TRANSPORT, COMMUNICATIONS AND METEOROLOGY (TCM)

3.3.4.1 Transport, Communications and Meteorology Policies and Strategies

The development of seamless, integrated, efficient, safe, cost effective and responsive transport, communications and meteorology systems is important to the realisation of the general objectives of SADC. The SADC Protocol on Transport, Communications and Meteorology, signed in 1996 and effected in 1998, provides the legal and broad policy framework for cooperation, and defines the strategic goals for the transport, communications and meteorology sectors.

Specific policies and strategies are reviewed and evaluated separately below for the transport, communications and meteorology sectors.

3.3.4.2 Transport

3.3.4.2.1 Review of Current Policies and Strategies

The strategic goals for the transport sector include, among others:

• Ensuring better planning, policy formulation and regulation of the transport system operations and delivery.
• Ensuring adequate funding of infrastructure maintenance to achieve cost effective and timeous delivery of services.
• Liberalising market entry by separating operating and regulatory functions.
• Ensuring that transport systems are integrated.
• Ensuring public safety and protection of the environment.
• Widening access to infrastructure services to meet the strategic objective of poverty eradication.
• Promoting regional development corridors as the tool to concentrate resources for maximum benefit.

3.3.4.2.2 Evaluation of Current Policies and Strategies

Significant progress has been made in reforming the institutional and funding arrangements for the region's transport systems. In this regard the majority of Member States now have Road Agencies or Funds, there is increasing separation of ownership and operations in seaports and the railways, concessioning of railways has gained a lot of currency while Member States continue to introduce autonomous civil aviation authorities. In efforts to improve safety, the region has adopted measures on driver training and licensing as well road signage, in maritime transport and civil aviation international conventions and standards are being applied while hydrographic survey projects have been formulated to enhance the navigability of inland waterways. There are on-going initiatives of market access for the improvement of transport services especially in the road and air transport sectors. Despite the above, significant challenges, as outlined below, remain.

3.3.4.2.3 Challenges in Current Transport Policies and Strategies

The main challenges to achieving the transport objectives of SADC are:

• Building the administrative and technical capacity of Member States to implement reforms.
• Ensuring sustainable funding for the provision, rehabilitation and maintenance of infrastructure.
• Attracting private sector participation through public private partnerships.
• Promoting regional development corridors as microcosms of regional integration and replicating lessons from successful pilot projects.
• Enhancing rural accessibility and mobility and thereby directly contributing to poverty reduction.
• Improving safety and minimising negative environmental impacts that arise from the provision and operation of regional transport systems.

3.3.4.3 Communications

3.3.4.3.1 Review of Current Policies and Strategies

Communications include telecommunications and postal services. It is one of the basic aims of SADC to develop communications systems that will transform the region into an information-based economy. The strategic goals are to:

• Clearly separate the regulatory functions from operational activities through transparent policies, predictable legal frameworks and independent regulatory regimes;
• Effectuate policy harmonisation in the region through the provisions of appropriate policy and legal frameworks;
• Develop a regional network that will address increased teledensity and universal access to diverse communication services.

3.3.4.3.2 Evaluation of Current Policies and Strategies

The majority of the Member States have policies, legal frameworks and regulatory authorities in place. A few have upgraded these to the realm of Information and Communications Technology (ICT) in order to cater for an e-commerce environment. The application of info-communication technology (IT) is yet to be increased. This will require a strong policy unit and the operational regulatory independence to attract more private sector participation.

3.3.4.3 Challenges in Current in Policies and Strategies

• Development of institutional capacity at policy level to drive the transformation process.
• Development of the ICT industry that will support an e-commerce environment.
• Aggressive promotion of a more attractive environment for the private sector.

3.3.4.4 Meteorology

3.3.4.4.1 Review of Current Policies and Strategies

Primarily, meteorology provides weather information to facilitate preparedness against hunger, social displacement, transport calamities, environmental degradation, etc. The whole region possesses high-level expertise and fairly modern infrastructure for data collection, collation and processing. Policy formulation and commercialisation is at an embryonic stage. The promotion of cost recovery strategies in the delivery of meteorological services is in place.

3.3.4.4.2 Evaluation of Current Policies and Strategies

The drought and excessive rains in recent years have helped to improve the profile of Meteorology in the region. Thus serious implementation of the SADC Protocol has recently been embarked upon.

• Satellite-based information-gathering infrastructure exists in all the countries;
• Only a few member States have had Policy level capacity to drive the transformation process;
• Development of appropriate policy and legal framework has been unsuccessful;
• Cost recovery strategies have been hampered by the fact that meteorological products are mainly for the public good;
• The inadequate regional telecommunications network hampers timely information sharing.

3.3.4.4.3 Challenges in Current Policies and Strategies

• Institutional capacity building to drive the transformation process.
• Development of model policy and legal framework.
• Reduction of dependency on the central treasury through cost recovery strategies in the meteorological services operations.
• Specification of frequency bandwidth requirements for high fidelity transfer of meteorological information.

3.3.5 WATER

3.3.5.1 Review of Current Policies and Strategies

The overall goal of the Water Sector is the attainment of sustainable, integrated planning, development, utilization and management of water resources that contribute to the overall SADC objective of an integrated regional economy on the basis of balance, equity and mutual benefit for all member States.

The SADC Protocol on Shared Watercourse Systems was signed in August 1995 and came into force in September 1998 after receiving the required number of ratifications. A process of amending the Protocol was initiated in 1996 to bring it in line with new international conventions and attend to queries of other member States on the original Protocol. The revision of the Protocol was successfully completed in 1999 and it was signed by 13 Member States in August 2000. As of February 2003, eight member States had ratified the revised Protocol.

The Protocol which provides the legal and broad policy framework for cooperation on water issues in the region, aims at promoting and facilitating sustainable, equitable and reasonable utilization of the shared watercourses through the establishment of shared watercourse agreements and institutions; harmonization and monitoring of legislation and policies; research, technology development, information exchange, capacity building, and the application of appropriate technologies in shared watercourses management.

Although there is no long-term policy and strategy for the development and management of water resources, the Protocol is being operationalised through a Regional Strategic Action Plan (RSAP) for Integrated Water Resources Management and Development in the SADC Region covering the period 1999-2004. The RSAP has identified seven key priorities to be addressed in order to enhance the region's ability to move towards a more integrated approach to the management and development of water resources. These are: improving the legal and regulatory framework; institutional strengthening; sustainable development policies; information acquisition, management and dissemination; awareness building, education and training; public participation; and infrastructure development.

In collaboration with the Global Water Partnership, a "Southern African Vision for Water, Life and the Environment in the 21st Century " was developed and formed the basis of the Africa Vision. It also shaped quite substantially the global vision on water adopted at the 2nd World Water Forum held at The Hague, Netherlands in March 2000. The vision of "Equitable and sustainable utilisation of water for social, environmental justice, and economic benefits for present and future generations" is supported by and made much more explicit by sub-visions. These are: social and economic development; equitable access to water of an acceptable quantity and quality; proper sanitation for all and safe waste management; food security for all; energy security; sustainable environment; security from disasters; and integrated water resources development and management.

3.3.5.2 Evaluation of Current Policies and Strategies

The Protocol, which aims at the sustainable management, development and utilisation of the region's water resources, and their equitable sharing for the mutual benefit of all, and for the upliftment of the quality of life, is consistent with the broader SADC objectives and Common Agenda. The emphasis on equitable sharing is consistent with the objectives of peace and security, and the strategic priority of conflict prevention.

The RSAP whose aim is to promote the adoption of an integrated approach to water resources development and management, recognises the role of water as a source of life and its use for a variety of purposes including agriculture, hydro-electric power generation, domestic and industrial requirements, as well as the maintenance of ecosystems. The RSAP, therefore, addresses the SADC strategic priorities that are targeted at industrialisation, the promotion of economic and social infrastructure, developing agriculture, and poverty eradication. Other strategic priorities that are addressed are those that relate to gender sensitivity, human resources development, and improving social welfare.

Overall, although the provisions of the Protocol have not been fully implemented, some promising initiatives are already underway. These include the full development of project concept notes into project documents to address the seven priority areas of the RSAP, and the progress being made in the establishment of River Basin Management Organisations (RBOs).

3.3.5.3 Challenges in Current Policies and Strategies

One of the most pressing challenges is the development of a policy and strategy that will not only provide a longer-term perspective for the development and management of the Region's water resources, but also guide and give strategic direction to short-medium term interventions such as the RSAP. The Southern African Vision for Water, Life and the Environment, together with its sub-visions should form the basis for the development of the long-term water policy and strategy document. Other issues to be tackled are the inclusion of research and technology development as an additional area of priority; the formulation of strategic regional infrastructure projects/programmes for water storage, transfers, irrigation, drought mitigation and flood control; and the practical operationalisation of the integrated water resources management approach. The recent development in the global arena that elevated water high on the development agenda, poses new challenges that should address the new targets agreed to at various for a such as the WSSD, the Millennium Development Goals on water supply and sanitation.

3.4 FOOD, AGRICULTURE AND NATURAL RESOURCES

3.4.1 OVERVIEW

The Food, Agriculture and Natural Resources (FANR) cluster comprises the following areas of co-operation: Food Security, Agricultural Research and Training, Crops, Livestock Production and Animal Disease Control, Environment and Land Management (ELM), Inland and Marine Fisheries, Forestry and Wildlife. In one way or another, most of these areas are related to agriculture and influence its performance.

Agriculture is a major player in the SADC regional economy, contributing 35 percent to its gross domestic product. About 70 percent of its people depend on it for food, income and employment. In addition, agriculture is a dominant source of exports in many countries, on average contributing about 13 percent to total export earnings and about 66 percent to the value of intra-regional trade. For these reasons, the performance of agriculture has a strong influence on the rate of economic growth, the level of employment, demand for other goods, economic stability and on food security and overall poverty eradication.

There is potential for increasing crop production in the SADC region through intensification and expansion of hectarage under cultivation. Intensification through the use of fertiliser, improved seed, irrigation, mechanisation and other technologies while expansion is valid option for countries such as Angola, the Democratic Republic of Congo, Mozambique, Tanzania and Zambia. The entire land mass of the region comprises 906,324,000 square kilometres or 30.9 percent of the total African land mass. Of this, 226,581,000 hectares (25%) is arable and 48,653,300 hectares is under cultivation. This large land mass implies that Member States are endowed with diverse soil and climatic characteristics; hence, they can grow a variety of crops and rear a range of animals. However, this potential is limited by the susceptibility of the region to droughts, floods, plant pests and animal diseases, the vulnerability of the agricultural population to HIV and AIDS infection, and inadequacy of irrigation and transport infrastructure. Furthermore, although they play an important role in agriculture as producers, women are handicapped by inadequate access to and control of resources, constraints that the RISDP will need to address.

The overall objectives of FANR are to promote agricultural productivity and food security at household, national and regional level; promote efficient development, utilization and conservation of natural resources; improve capacity in agriculture to transform national economies; generate domestic savings and foreign exchange to finance a gradual, structural transformation of the region's agriculture-dependent economies; and facilitate improvements in the welfare of the people of the region.

This broad FANR Policy Framework recognizes promoting food security as a priority objective. As a cross-cutting issue, food security is used as a basis for guiding its strategies in all the sectors of the cluster. Furthermore, since its inception, the FANR Sector has made progress in establishing the institutional framework for implementing regional programmes to alleviate hunger and poverty.

Until recently, however, some of the pertinent issues have not been addressed. One such issue is land tenure reform. A number of Member States are now working to resolve inequities in land ownership, access and use of this key resource. But there is no regional framework to guide national policies and strategies in this area. In addition, emerging issues such as food safety and biotechnology have also not been adequately captured by FANR. The Sector has addressed specific issues like food safety in a fragmented manner, with no clear delegation of authority and accountability for the development of policies to facilitate regional positions. The Sector has also been slow to highlight and realign policies and strategies to address the potential impact of HIV and AIDS on rural households in general, and the food and agricultural sector, in particular. Furthermore, the FANR Sector has not been adequately linked to other related sectors, such as rural infrastructure, transport and tourism.

The following sections review sector-specific policies and strategies, evaluate how far these policies and strategies meet the strategic priorities of SADC, identify what needs to be put in place and examine the need to refocus the policies and strategies.

3.4.2 FOOD SECURITY

3.4.2.1 Review of the Current Policies and Strategies

The Food Security policy in SADC is to ensure that all people have access to an adequate diet to lead an active and normal life. Currently, the region has adopted three Strategies to achieve the food security policy as contained in the Food Security Framework document, approved by Council in 1997. The three Strategies are:

1. Improving Food Availability
2. Improving Access to Food, and
3. Improving Nutrition.

On the issue of food availability, Member States are required to promote agricultural production and productivity; take measures that increase competitiveness and promote trade. Member States are also urged to promote the sustainable use of natural resources.

Regarding improving access to food, Member States are encouraged to adopt policies which will generate the maximum employment gains and incomes; introduce measures that improve income stability and equity; and develop safety nets (such as food for work, cash for work and targeted distribution of inputs or food) for vulnerable groups. Most of these measures require public, private and NGO partnerships.

Regarding improving nutrition, Member States are urged to adopt strategies that improve nutritional value of food; minimize food losses, particularly for the resource poor, and address food safety.

3.4.2.2 Evaluation of Current Policies and Strategies

Food Security policies and strategies have addressed the SADC strategic priority to develop an effective disaster preparedness and management mechanism by implementing programmes and projects aimed at early detection, early warning and mitigating the disaster effects. The main achievements have been in information generation and early warning through the Regional Early Warning System, the Regional Remote Sensing Project, and Data Management and Analysis Projects. The Regional Early Warning Unit has built capacity in Member States and the region to provide advance early warning information on the food security situation. This has enabled the region to take appropriate measures to mitigate the impacts of any impeding food shortages. The Regional Food Security Training Programme has focused on building capacity of regional training institutions, while other programmes have concentrated on promoting seed availability and developing and disseminating participatory methodologies. But other suggested programmes aimed at promoting food supply and availability, such as food reserve mechanisms, irrigation development and agricultural trade facilitation have not received much attention and resources.

The above projects have been under implementation for some time. But they do not provide the full range of information required to adequately cushion the region against food insecurity. In particular, there is an urgent need for information on the operations of grain and cereal markets in the region to facilitate trade in food products.

Within FANR, there are several strategies on capacity building; however, none of these is addressing agri-business, agro-processing and trade in agricultural products.

The absence of a binding legal instrument on food security and agricultural development in general is a major weakness in the food security strategy. The current food crisis in the region has increased the need for greater cooperation in this area that would cover such issues as genetically modified organisms (GMOs), sanitary and phytosanitary (SPS) measures and trade.

3.4.2.3 Challenges in Current Policies and Strategies

• Absence of a regional food reserve facility and market development and over-dependence on rain-fed agriculture;
• Promoting private trading in agricultural products;
• Improving rural transport infrastructure; and
• Promoting agricultural production and productivity through creating an enabling policy environment for agricultural production, improving access to land and credit and enhancing technology generation and transfer.

3.4.3 AGRICULTURAL RESEARCH AND TRAINING

3.4.3.1 Review of the Current Policies and Strategies

The overall goal of Agricultural Research and Training is to contribute to poverty alleviation and sustainable growth through agricultural and natural resources research and training in the region. The specific objectives are to promote partnerships in the area of agricultural research and training, improve regional research and training co-ordination and integration, improve the information and communication system, and to review the institutional framework. The strategies for attaining these objectives focus on three broad areas. These areas are strengthening human resources capacity; strengthening regional research and training capacity, co-ordination mechanisms for related policy issues, partnerships and stakeholder ownership of collaborative research programmes; and facilitating exchange of information and dissemination of research results.

3.4.3.2 Evaluation of Current Policies and Strategies

It is apparent that the policies and strategies of Agricultural Research and Training address the following strategic priorities: the Development of Science and Technology, Research and Development; the development, utilization and management of human resources; the development of agriculture and the sustainable utilization of natural resources; and the development of measures to alleviate poverty with a view to its ultimate eradication. The question is how effectively have these met the strategic priorities.

Agricultural Research and Training has provided a platform for closer interaction and collaboration between National Agricultural Research Systems (NARS) and scientists within and outside the region. In addition, the overall research capacity has been strengthened through regional interventions focused on training and networking. A key latent achievement has been the provision of an environment for researchers to remain on the knowledge and technology frontiers, and increased efficiency in the utilization of the resources for agricultural research.

However the success of regional research interventions has directly depended on the performance of the NARS that has been constrained by limited capacity, especially in terms of size, funding and human resources, and weak linkages with local and international partner institutions.

The expansion of the mandate of Agricultural Research and Training from the original focus on co-ordinating research on food crops to research in agriculture and natural resources, and the co-ordination of advanced professional training in agriculture, has not been matched by increases in research activities in these areas and there has not been clear articulation of Agricultural Research and Training strategies in the same. As a result, Agricultural Research and Training has not been visible in initiating research on indigenous technical knowledge or guided research on emerging issues, such as biotechnology and intellectual property rights in indigenous flora and fauna. Furthermore, whereas Agricultural Research and Training has made progress in its crop research project and the gene bank, there has been limited promotion of research in indigenous vegetables, which play a significant role in the diets of rural people, and in floriculture, which is a major foreign exchange earner in some countries.

3.4.3.3 Challenges in Current Policies and Strategies

Lack of a market-oriented smallholder production system where research is market led, demand driven and follows the commodity chain approach;

• Poor research-extension-farmer linkages, amelioration of which would improve the transfer and adoption of technology;
• Need for policies and strategies to offset the high rate of natural resource degradation, focusing on soil, water and biodiversity;
• Focusing research on soil fertility improvements, soil and water management, development of irrigation, promotion of integrated livestock - wildlife-crop production systems, and development of drought mitigation strategies;
• Strengthening the capacities of institutions and farmers' organizations to support agricultural production systems;
• Information and communication for rural development; and
• Integration of a gender perspective in agricultural research and training.

3.4.4 CROPS

3.4.4.1 Review of the Current Policies and Strategies

The ultimate objective of the sector is to promote the production, protection, processing, storage and utilization of all crops, including perennial ones, as a means of enhancing food security and promoting regional and global trade and economic development in the region. The immediate objective is to enhance regional co-operation through the development of coherent regional policies and programmes related to crop production, protection, storage, processing, utilization and trade.

The strategies are to improve the availability of agricultural inputs in order to improve crop production; in conjunction with the Water Sector, implement efficient use of water in irrigation; harmonize programmes related to sanitary and phytosanitary issues; harmonize the control of crop pests; and improve the distribution, marketing and availability of seeds.

3.4.4.2 Evaluation of Current Policies and Strategies

Since the Crop Sector was established in 1998, only two programmes on seed and institutional support have been supported. The programme on seed will address enhancing the multiplication of seed of improved varieties, harmonizing the release of seed and testing procedures in Member States, and harmonizing seed laws in the region.

3.4.4.3 Challenges in Current Policies and Strategies

• Development of new agro-processing technologies;
• Adoption of policies and strategies on horticulture and other high value crops;
• Facilitating regional and global export trade in agricultural products; and
• Improving gender mainstreaming in the policies and strategies.

3.4.5 LIVESTOCK PRODUCTION AND ANIMAL DISEASE CONTROL

3.4.5.1 Review of the Current Policies and Strategies

The mission of the sector is to promote regional integration and sustainable livestock production through the co-ordination of animal disease control strategies, human resource development and utilization of livestock products in order to create employment, improve the standard of living of the people and to meet regional food security objectives.

The policies of this Sector are to increase livestock productivity and promote livestock-based industries; improve livestock management practices; and promote, harmonize and apply effective regional animal disease control measures. The strategies focus on promoting the development of livestock and livestock-based industries; promoting sound livestock management principles and animal disease control measures; and supporting existing livestock research and training programmes.

3.4.5.2 Evaluation of Current Policies and Strategies

The Sector has successfully implemented several programmes. Achievements include the facilitation of the establishment of Veterinary Science Faculties in various Member States (Zimbabwe, South Africa, Zambia, and Tanzania); the Botswana Vaccine Institute; the Regional Tsetse and Trypanosomiasis Control Centre (RTTC) and the Centre for Tick and Tick Borne Diseases in Malawi. The RTTC has become a leader on the continent in the development of low cost and environmentally friendly technology.

The region has also developed heart water vaccines through the Regional heart water Project with the Technical support from the University of Florida in the USA. The first generation vaccine and a tick decoy are now ready for commercialisation. Intervet International from the Netherlands has shown interest to manufacture the vaccine in South Africa. However, patenting of the technologies developed has not been clearly resolved and the region needs to protect its intellectual property rights and ensure that the technology is affordable to the resource poor farmers.

The Sector policies have incorporated gender issues by indicating the vital roles of both men and women in many aspects of its work, although there is still recognition that women have largely been marginalized and have not participated fully in the development of the livestock sector.

3.4.5.3 Challenges in Current Policies and Strategies

• Focusing regional co-operation on optimal sustainable rangeland utilization and animal feed flow, especially across borders;
• Lack of infrastructure and information on marketing of livestock and livestock products;
• Inadequate use of animal traction and organic manure to complement agricultural mechanization and expensive inorganic fertilizers;
• Overstocking and overgrazing in local communities;
• Unlawful use of pesticides in the region, especially non-biodegradable products; and
• Absence of concrete interventions to address the constraints faced by women.

3.4.6 FORESTRY

3.4.6.1 Review of the Current Policies and Strategies

The Forestry Protocol, which was signed in October 2002, provides the basic policy framework. The objectives of the Sector are to control, conserve and protect forest resources; sustainably manage and develop forest resources as the major source of energy in the region; and to facilitate the development of trade in forest products. The strategies for attaining these policies include co-operating in the sustainable management of shared forests; developing human resources for the Sector; harmonizing approaches to sustainable forest research management; and establishing equitable and efficient ways of facilitating public access to forests.

3.4.6.2 Evaluation of Current Policies and Strategies

For purposes of implementing its policies, the Sector has developed programmes on Training and Education, Improved Resource Management, Improved Knowledge of the Resource Base, Focused Research, Resource Utilization and Marketing and Environmental Management. But most of these programmes have focused on data and information gathering, and institution building at the national level. There has been limited regional collaboration and co-operation in areas of common concern, such as overexploitation, law enforcement and promotion of community-based programmes. Problems of sustainable forest output persist, as millions of rural households use fuel wood for energy. There is a paucity of regional interventions aimed at developing and promoting appropriate alternative energy sources.

Information regarding appropriate forest management systems for the various indigenous forest types is lacking in most Member States. This is partly attributed to past national policies that gave higher priority to the establishment, management and protection of exotic softwood and hardwood forest plantations than to the indigenous forests.

3.4.6.3 Challenges in Current Policies and Strategies

• Need to create public awareness and education to address agro-forestry practices, afforestation, fire control and overgrazing;
• Need to improve forestry and sericulture practices to address deforestation, genetic erosion, forest pests, disease control, invasive alien species, management and conservation of shared forests and forest resources, and law enforcement.
• Need for a regional strategy to develop small and medium scale forest-based industries, as well as appropriate fuel wood and charcoal production systems, especially in rural areas;
• Lack of information to facilitate trade in forest products and a strategy to develop standards, guidelines and other mechanisms for recording, preserving and equitably sharing of benefits from the use of traditional forest related knowledge; and
• Lack of concrete interventions to address the constraints faced by women.

3.4.7 FISHERIES

3.4.7.1 Review of Current Policies and Strategies

The Fisheries Protocol was signed in 2001, but the required number of Member States has not yet ratified it. The goal of the Sector is to promote responsible and sustainable use of the living aquatic resources and aquatic ecosystems in order to enhance food security and human health. The specific policy objectives are to promote effective management of fish stocks, protect and preserve fish resources, promote aquaculture and mariculture development and promote trade in fish.

The strategies of the Sector include establishing a regional stock assessment and fisheries management system; promoting regional trade; and building capacity for better fisheries management.

3.4.7.2 Evaluation of Current Policies and Strategies

To implement its strategies, the sector has embarked on the Assessment of the Marine Fisheries and Research programme commonly known as the Benguela Environmental and Fisheries Interaction and Training Programme (BENEFIT); the Monitoring, Control and Surveillance of Fishing Activities; the Regional Fisheries Information System and the Benguela Current Large Marine Ecosystem.

For the purpose of promoting aquaculture, the Sector initiated an Aquaculture for Local Community (ALCOM) Programme, which was phased out. It is desirable to revive and promote this programme throughout the region since it targets local and poor communities in rural areas, and directly addresses food security concerns as well as income generation. As regards trade, the latest revenue figures from fish are estimated at 3.0 billion US dollars per year. This figure can easily be increased if the Sector can adopt a strategy to improve the quality of fish through appropriate handling, processing and conservation of the catch

3.4.7.3 Challenges in Current Policies and Strategies

• Lack of a programme for the effective management of fish stocks, which would cover all the Member States;
• Absence of policies to promote aquaculture (fish grown in inland ponds) and mariculture (fish in offshore ponds);
• Improving the quality of fish through appropriate handling, processing and conservation of fish landings; and
• Lack of concrete interventions to address the constraints faced by women in the sector.

3.4.8 WILDLIFE

3.4.8.1 Review of the Current Policies and Strategies

The current policies focus on the conservation of regional ecosystems and landscapes, endangered, endemic and cross-border migratory species; management of water catchments and aquatic ecosystems; and prevention of extinction of indigenous plant and animal species, especially those distributed across national boundaries.

The key strategies to implement the above policies include promotion of community based natural resources/ wildlife resources management; promotion of transfrontier conservation; sustainable wildlife resources utilization; enhancing capacity building in wildlife management and conservation; and the development and implementation of domestic and international laws to control illicit trade in wildlife and wildlife products.

3.4.8.2 Evaluation of Current Policies and Strategies

The Wildlife sector has been instrumental in initiating Community-Based Wildlife Management particularly in Malawi, Mozambique, Tanzania and Zimbabwe. The sector has also enhanced the regional capacity using existing training institutions, such as the College of African Wildlife Management in Tanzania, and Tropical Resource Ecology Programme at the University of Zimbabwe.

The region has been successful in coordinating a common position at CITES, in particular the down listing of ivory from Appendix I to II, and the sale of ivory to Japan both of which were adopted at the 10th CITES in 1997. The region has also started to implement programmes on the transfrontier conservation areas, such as the Great Limpopo.

3.4.8.3 Challenges in Current Policies and Strategies

• Need for continuing to strengthen regional and national interventions aimed at curbing the illicit use of and trade in wild fauna and flora in order to sustainably conserve the wildlife resources;
• Lack of policies and strategies aimed at the conservation of wildlife in mountains and high diversity ecosystems such as rainforests;
• Lack of programmes covering long-term viability of wildlife -based tourism; and
• Lack of an enabling environment for women to play a more meaningful and empowering role in the management and conservation of natural resources, including wildlife.

3.5 SOCIAL AND HUMAN DEVELOPMENT AND SPECIAL PROGRAMMES

3.5.1 OVERVIEW

The Social and Human Development cluster covers areas of Human Resources Development, Health, Employment and Labour, and Culture and Information and Sport. It also caters for Special programmes. SADC Member States accord priority to social and human development in view of its crucial role both as a factor and as a broad measure of development. As one of the core areas of integration, it is mandated to ensure the availability of educated, skilled, healthy, productive human resources required for promoting investment, efficiency and competitiveness of the region in the global economy as well as improving the quality of lives of the region's population. This area also has an important role to play in consolidating the historical, social and cultural ties and affinities of the peoples of the region.

SADC has put in place policies, strategies and priorities through the formulation and adoption of instruments such as protocols and appropriate policy guidelines. These are examined in the subsequent sections.

3.5.2 HUMAN RESOURCES DEVELOPMENT

3.5.2.1 Review of Current Policies and Strategies

The main goal of SADC 's integration agenda in the human resources development field is to increase the availability of educated and highly skilled personnel through equivalent and harmonized education and training systems of Member States.

The Protocol on Education and Training, which was signed in September 1997 and came into force in July 2000, provides for seven main areas of cooperation, namely, policy for education and training, basic education, intermediate education and training, higher education, distance education, training fund, research and development, lifelong education and training, publishing and library resources. The Protocol seeks to promote a regionally integrated and harmonized educational system especially with regard to issues pertaining to access, equity, relevance, and quality of education interventions. The Protocol aims to achieve its objectives over a period of twenty years.

In order to implement the provisions of the Protocol, a Strategic Plan covering the abovementioned seven areas of cooperation was developed in 2002. The Plan has included other cross cutting issues such as HIV and AIDS pandemic. In the identification of priorities, relevant and complementary regional and international initiatives, such as those coordinated through UN agencies and NEPAD, were taken into account to avoid duplication.

3.5.2.2 Evaluation of Current Policies and Strategies

The Policy Framework on Human Resource Development and the HRD Strategic Plan is comprehensive and addresses the major challenges facing the region. However, there are a number of areas, which require improvement. For instance, the objectives of the Protocol on Education and Training do not make specific and/or direct reference to or mention gender or gender mainstreaming; people with disabilities and other disadvantaged groups; poverty eradication; economic growth and development; or HIV and AIDS control and other cross-sectoral linkages - although a regional cooperation approach is fully implied. Emphasis should be put on gender mainstreaming and equality in the development of educational and training materials, composition of professional associations, teacher/student exchange programmes, and exchange of experiences as well as inclusion of HIV and AIDS in the curriculum.

3.5.2.3 Challenges of Policies and Strategies

The challenges faced by Education and Training in the sub-region are largely common to all countries. These are access, equity, quality, efficiency, relevance and democracy in their educational and training policies.

Other challenges of the sector include: HIV and AIDS's negative impact on the education and training sector; low literacy rates; low enrolment rates especially at secondary and higher education levels; limited provision of early child hood education; inequitable access especially by disadvantaged groups such as women and disabled people and people from rural areas; limited access to vocational education and training; mismatch between supply and demand for vocational education and training, and higher education and training; inadequate education and training facilities and equipment; shortage of teaching and learning materials; lack of comparable standards and qualification across all training institutions and countries.

3.5.3 HEALTH

3.5.3.1 Review of Current Policies and Strategies

In the area of health, the main goal of integration is to attain an acceptable standard of health for all citizens to reach specific targets within the objective of "Health for All" in the twenty first century by 2020 in all Member States through the primary health care strategy.

The SADC Policy Framework for Health provides a comprehensive coverage of all the key aspects of health and health services delivery in the region. It proposes policies, strategies and priorities in various areas such as health research and surveillance; health information system; health promotion and education; HIV and AIDS and sexually transmitted diseases; communicable and non-communicable disease control; disabilities; reproductive health; health human resources development; nutrition and food safety; violence and substance abuse.

The SADC Protocol on Health, which was signed in August 1999 and is yet to come into force, provides a legal and broad policy framework for cooperation in twenty four (24) areas, which include some of the major health challenges in the region such as HIV and AIDS and STD; Tuberculosis Control; Malaria Control; Reproductive Health; Childhood and Adolescent Health; Chronic Diseases; Emergency Health Services and Disaster Management and bulk purchasing of essential drugs.

In recognition of the serious threat that HIV and AIDS continues to pose to sustainable development of the region and its integration agenda, SADC has revised and strengthened its Multi-sectoral HIV and AIDS Strategic Framework and Programme of Action 2003-2007. This Strategic Framework is a multi-dimensional response to the HIV and AIDS pandemic by the region. It is aimed at intensifying measures and actions to address the devastating and pervasive impact of the HIV and AIDS pandemic in a comprehensive and complementary way. The focus of the response is both on the prevention of HIV and AIDS and on the mitigation of its impact in order to ensure sustainable human development of member states.

The Framework takes into account and reflects the priorities of the new organisational arrangements of the restructured SADC, which clusters related issues into core areas of regional cooperation and integration. It also builds on the experience of the previous Plan for HIV and AIDS, the SADC HIV and AIDS Strategic Framework and Programme of Action, 2000-2004.

3.5.3.2 Evaluation of Current Policies and Strategies

Implementation of actions based on the Protocol has already started. The Protocol itself does fulfil the integration objectives of the SADC i.e. it definitely aims to tackle HIV and AIDS and in so doing reduce the impact of illness and deaths on production, productivity and economic decline of the Member States. The Biennial Priorities which include the HIV and AIDS/STD; reproductive health; standardization of health information and surveillance systems; communicable diseases; and resource mobilization (human, financial) have been developed to facilitate implementation of the Protocol. However, they may not fully address all the issues contained in the Protocol.

There is need therefore, to have a long plan to fit with international agreements and initiatives such as the Millennium Development Goals of: reducing child malnutrition by half between 1990 and 2015; reducing child mortality by two-thirds by 2015; reduce maternal mortality by three-quarters by 2015; and halving and reversing the HIV and AIDS prevalence by 2015.

Implementation and achievements of actions have been measured against the objectives of the Protocol. Therefore, policies, plans, programmes of the Health Sector need to give operational expression to the objectives of the Protocol. Thus, in reviewing this sector, activities that have been implemented and achievements that have been realised have been juxtaposed with the appropriate Protocol objective. It must be said from the outset that the Protocol objectives do satisfy the agenda for a regional approach to tackling health challenges. Also, it is clear that improving the health status of the people in the region will directly result in increased production and productivity (for example by reducing the number of work-days lost through illness or caring for the sick and attending funerals). This will result in higher growth rates and therefore poverty reduction.

3.5.3.3 Challenges in the Policies and Strategies

There are many health challenges bedevilling the region. These include new serious diseases and epidemics, high morbidity and mortality rates, low nutrition status, poor health care infrastructure and services, lack of well trained health care personnel, poor living conditions, and the HIV and AIDS pandemic. A growing number of TB and other communicable diseases such as malaria, typhoid, cholera and an increasing number of non-communicable diseases such as cancers and hypertension have compounded the problem. In addition, inadequate understanding or appreciation of the gender dimension in all the health challenges bedevilling the region and inadequate resources for improving the health status of people are matters of serious concern.

3.5.4 EMPLOYMENT AND LABOUR.

3.5.4.1 Review of Current Policies and Strategies

The primary objective of the employment strategy is to stimulate the demand for labour, or increase the rate of labour absorption in the economy. A number of priority areas and specific strategies are identified, with emphasis on a proactive approach to employment promotion at national level, which should be accompanied by some consensus on what such an approach entails, and how it is to be co-ordinated and harmonised at the regional level.

On the issue of Productivity, Member States have undertaken to formulate and adopt appropriate policies and strategies at the macro, institutional and enterprise level. The main objective of the Draft Social Charter is to facilitate the establishment and harmonisation of social security systems and generation of incomes.

3.5.4.2 Evaluation of Current policies and Strategies

The selection of unemployment and underemployment, and the inadequacy of labour standards and regulations, as well as their implications for regional integration, are the critical issues of concern in this sector. The objectives and strategies identified under the headings of employment promotion and labour market regulation are concrete and clearly targeted at addressing poverty reduction. Moreover, they take into account international labour standards, especially those of the ILO.

These priorities and strategies also reflect the linkages between the ELS sector and other sectors such as finance and investment. High levels of investment are necessary to promote employment, which in turn enhances people's access to finance. There is need therefore to more concretely identify these inter-sectoral linkages, and how they can be harnessed to ensure the achievement of SADC's goals.

With respect to other policy instruments, the Declaration on Productivity, the Draft Social Charter, the codes on HIV and AIDS at the Workplace and the Safe Use of Chemicals, as well as the Draft Codes of Conduct on Child Labour and Social Security address critical issues of economic growth and development.

As regards gender responsiveness, the ELS-SCU is one of the few SADC institutions that developed an explicit gender policy document, which was adopted in the year 2000. The policy acknowledges that the labour market in Southern Africa is characterised by gender inequalities, as reflected in legislation, laws, policies and practices that disadvantage women. The policy calls upon member states to review and reform them, commit themselves to develop and implement gender sensitive policies, and take positive action to promote equality for women in work and employment.

3.5.4.3 Challenges in Policies and Strategies

The Employment and Labour section faces problems with regard to employment creation. There is not enough investment to employ more people. The region has a high unemployment rate and therefore this affects the social life of many people. There is also need for social security nets for the unemployed. The labour laws need to be modified to allow collective bargaining by employees. The region also needs to guard against child labour practices.

3.5.5 CULTURE INFORMATION AND SPORT

3.5.5.1 Review of Current Policies and Strategies

The policies and strategies for the CIS sector are contained in the Protocol on Culture, Information and Sport, which was signed in August 2001 and is yet to come into force, and the Policies, Priorities and Strategies Document.

With respect to general areas of cooperation, the Protocol identifies policy harmonisation; training, capacity building and research; resource mobilisation and utilisation; production, flow, exchange and use of information products; regional interaction among stakeholders; gender equality and equity; and persons with disabilities.

3.5.5.2 Evaluation of Current Policies and Strategies

There is no doubt that the policies and strategies identified in the CIS Protocol are relevant to the attainment of the objective of regional integration. The objectives to be attained under each sub sector are quite comprehensive, and focus is on the development and harmonisation of policies in each, as well as exchange of information.

The sector has recorded some achievements, which include the successful adoption of the Protocol, the policies, priorities and strategies document, the existence of networks and institutions that promote culture, information and sport, strong interest from the donor community to support the sector, and the existence of international fora where the region can take a common stand.

In addition, a number of important initiatives to promote culture, sport and the dissemination of information about SADC in the region were embarked upon. These include the establishment of a SADC Culture Trust Fund, the hosting of cultural festivals and regional sporting events, organisation of annual media awards, and launching of the Southern African Broadcasting Association (SABA).

Weaknesses identified include inadequate research, inadequate protection of intellectual property rights, negative attitudes to gender, ethnicity and work ethics, inadequate infrastructure, limited resources available to Member States to participate in social programmes, poor implementation of regional decisions and lack of performance standards and mechanisms to enforce implementation of decisions.

The document on Policies, Priorities and Strategies contains recognition of the importance of gender equality. It notes with concern the continued absence of policies, or their inadequacies, which will continue to undermine co-ordination and harmonisation, work in the area of human rights, democracy, and gender equality as well as active publicising of SADC's achievements.

3.5.5.3 Challenges in Policies and Strategies

There are a number of challenges facing the region in the area of culture, information and sports. These include:

• Limited access to cultural institutions and lack of a legal framework for the protection of cultural heritage, intellectual property rights and related rights.
• Inadequate institutional framework for the promotion of cultural industries and the need for SADC to take advantage of its rich and diverse cultures as well as lack of research and documentation of cultural issues.
• Existence of barriers, weak institutional framework and infrastructure for the collection, utilisation and dissemination of information on regional cooperation ad integration in SADC.
• The need to promote pluralistic media systems, protect freedom of the press and other media and to ensure objectivity and responsible journalism.
• Lack of financial and technical resources for the participation of all key stakeholders in implementation and resourcing of regional cultural and sporting programmes and events as well as in publicising SADC.
• Reduction of the information gap between urban and rural areas in Member States and promotion of local/regional media content.
• Lack of efficient and cost-effective communications infrastructure and facilities to disseminate and distribute information.
• Lack of a stable institutional framework for dealing with sports issues and inadequate provision of material facilities, human and financial resources as well as the need to widen sporting disciplines by including indigenous sports.
• Limited participation of women and people with disabilities in sports.

3.5.6 SPECIAL PROGRAMMES: DRUG CONTROL

3.5.6.1 Review of Current Policies and Strategies

Development brings social problems that need to be addressed proactively, hence, the signing of the SADC Protocol on Combating Illicit Drugs in 1996. Since the early 1990s, the SADC Region, like everywhere in the world, has seen an increase in the production, trafficking and abuse of illicit drugs. Drug trafficking syndicates have been attracted by positive growth in a number of economic sectors in the SADC Region, as well as by the rapid expansion in information technology, and in the entertainment industry. On the other hand, growing stressors such as poverty, unemployment, migration, HIV and AIDS and weakened family support also bring about desperate efforts to generate income, such as illicit drug production, especially cannabis, and the trafficking and abuse of cannabis and other illicit drugs. Apart from destroying young lives and delaying the development of young people, the drug problem has broader implications such as the spread of infectious diseases, violent crime, and criminal economic activities such as corruption and money laundering. The drug trade is also associated with the smuggling of stolen cars, small arms, animal and mineral products, and human trafficking (especially females for prostitution purposes.)

The SADC Protocol on Combating Illicit Drugs, which came into force in March 1999, requires Member States to accede to a number of UN Conventions in this field, promulgate and adopt domestic legislation, which satisfies those conventions. The Protocol provides for Member States to cooperate with each other to afford mutual legal assistance in a joint effort to suppress illicit drug trafficking. With respect to law enforcement, the Protocol requires that Member States promote the effective enforcement of sentences for drug offences. The Protocol also contains provisions relating to drug demand reduction, such as drug education measures to various target groups and the monitoring of drug abuse trends in Member States. The Protocol furthermore addresses corruption, as it relates to drug trafficking, as well as the forfeiture of the proceeds of drug trafficking, which is linked to money laundering.

The first five-year SADC Regional Drug Control Programme (SRDCP) contains strategies aimed at:

National and the regional coordination and capacity building; drug control legislation; drug demand and supply reduction and research on drug abuse and irresponsible sexual behaviour.

3.5.6.2 Evaluation of Current Policies and Strategies

The policy framework for the combating of Illicit Drugs is still very relevant to a regional effort in drug control. It is also helpful with regard to the establishment of the administrative and legal framework for drug control, both at the national and regional level.

The SRDCP has been instrumental in facilitating the establishment of national drug control coordinating bodies in Member States, and has provided assistance for the elaboration of National Drug Control Master Plans in all Member States. It has further created national networks for the collation of epidemiological information on illicit drug abuse and trafficking trends, which is again collated regionally and reported to Council every six months. The Regional Drug Control programme has also developed curricula for the training of drug abuse prevention and treatment personnel for the region, alongside support to NGOs in this field and other capacity building activities in drug demand reduction.

3.5.6.3 Challenges in Current Policies and Strategies

The main challenges in the area of drug control include:

• The need to forge inter-sectoral linkages, closer cooperation and networking within the Secretariat in the operationalisation of measures for drug control and demand reduction as well as in the implementation of a future regional anti-corruption programme.
• The gender aspect of drug control and the socio-economic dimension of drug-related problems will also require special attention.
• The regional drug control policy will also need to further focus on the building of strong synergies and networks in drug supply and demand reduction, respectively, with other regional economic communities on the Continent, as well as with the Drug Control Unit at the African Union Secretariat.

3.6 CROSS-CUTTING ISSUES

3.6.1 GENDER AND DEVELOPMENT

3.6.1.1 Overview

It has been demonstrated that greater equality between women and men contributes to economic growth, the reduction of poverty and overall human development. Yet pervasive inequalities exist between women and men in the SADC region. Women constitute the majority of the poor in the region, as a result of their limited access to, and control over productive resources such as land, livestock, credit and modern technology. In addition, women have limited access to adequate health facilities, formal education and employment, and are over represented in the informal sector where returns are extremely low and unreliable. Moreover, laws exist in most Member States, which restrict women's legal capacity, and have a direct bearing on women's income earning capacities.

In order for SADC to achieve its poverty reduction and eradication objectives, its policies and strategies should address these gender gaps.

3.6.1.2 Review of Current Policies and Strategies

There are a number of instruments, which provide the overall policy framework for the achievement of gender equality at regional level. These include the Declaration on Gender and Development, its Addendum on the Prevention and Eradication of Violence Against Women and Children, and the Plan of Action for Gender in SADC.

The 1997 Declaration on Gender and Development (GAD) recognises gender equality as a fundamental human right, and that the mainstreaming of gender issues into the SADC Programme of Action and Community Building Initiative is key to the sustainable development of the SADC region. As a result, the Declaration commits SADC Member States to the following, among others:

• The achievement of at least 30% target of women in political and decision making structures by 2005;
• the reform of discriminatory laws and social practices;
• the promotion of women's full access to, and control over productive resources such as land, livestock, markets, credit, modern technology, formal employment, quality education, reproductive and other health services;
• an integrated approach to deal with the issue of violence against women;
• the cultivation and promotion of a culture of gender equality in SADC and respect for the Human Rights of Women; and
• facilitating the achievement of gender equality in access to economic structures and control of resources.

The second policy instrument is the 1998 Addendum to the GAD Declaration, entitled the Prevention and Eradication of Violence Against Women and Children. It reaffirms the commitment of SADC Member States to the prevention and eradication of violence against women and children in the region, and contains the following major elements:

• a recognition that violence against women and children is a violation of fundamental human rights;
• an identification of the various forms of violence against women and children in SADC;
• a concern that the various forms of violence against women and children in SADC continue to increase, and a recognition that existing measures are inadequate; and
• recommendations for the adoption of measures in a number of areas.

A third policy instrument is the 1999 Plan of Action for Gender in SADC, which seeks to operationalise the commitments contained in the Declaration and Addendum. The Plan outlines a number of objectives, strategies and activities in the following areas:

• gender policy and institutional frameworks;
• women's human rights;
• access to economic structures and control of resources;
• politics and decision making;
• peace and stability;
• gender capacity building and training;
• dissemination of information and networking; and
• coordination of SADC participation and position at African and Global events.

Following the adoption of the 2001 Report on the restructuring of SADC institutions, the Plan of Action for Gender in SADC was revised, and a Framework of Activities developed, which perceives three broad strategic objectives for the SADC gender programme. These include gender mainstreaming, which covers all sectors, as clustered into the directorates; coordination and outreach; and monitoring the implementation of the SADC GAD Declaration and Addendum, as well as other regional, continental and global gender equality instruments.

3.6.1.3 Evaluation of Current Policies and Strategies

The policy documents discussed above cover a wide area, due to the cross-cutting nature of gender. They are intended to address some of the gender gaps that were earlier identified, and are generally relevant to SADC's overall objectives of poverty reduction and eradication.

A number of regional interventions focused on gender sensitisation and awareness, coordination of the women in politics and decision-making programme, and facilitating exchange of best practices have been undertaken.

The regional programme of action for women in politics and decision-making in particular has had a major impact in bringing attention to the minimum target of 30 percent of women in politics and decision-making by the year 2005. The regional level activities have produced resource materials, created a pool of gender trainers in the region, and enhanced networking among women MPs. The monitoring by the SADC Gender Unit of the implementation by Member States of the GAD Declaration and Addendum through annual reporting mechanisms, and the facilitation of information exchange between Member States can also be seen as achievements. Moreover, a certain level of awareness of the critical importance of integrating gender perspectives into policies, strategies and programmes has been achieved.

3.6.1.4 Challenges in the Policies and Strategies

There is no doubt that in many SADC member states, the increased participation of women in all sectors has contributed to improvements in the economy. In spite of the progress made towards gender equality however, there are a number of weaknesses at national and regional levels, which have resulted in slowing down progress towards the achievement of the commitments made in the policy instruments referred to earlier.

At regional level, the interventions have not as yet begun to tackle some of the core areas of regional integration, as reflected in the organisation's strategic priorities. This is especially the case with regard to mainstreaming gender into sectoral policies, strategies and programmes.

Due to capacity constraints, little progress was made in this regard, except for the conducting of a gender audit study into some of the former SCUs. This study proposed a number of concrete, sector-specific gender mainstreaming interventions. These should be used as a starting point to design gender mainstreaming strategies and programmes for the directorates, as well as develop concrete monitoring and evaluation tools to track progress towards gender equality. In addition to the mainstreaming strategy, empowerment programmes, especially in the economic and education sectors will need to be identified, with a view to fast-tracking progress towards gender equality.

A second gap at regional level is the fact that the Gender and Development Declaration and its Addendum do not have the same legally binding effect as Protocols, which are SADC's primary documents of cooperation and integration. Related to this is the failure by Member States to incorporate the provisions of regional instruments into domestic laws and policies, which undermines regional efforts at policy harmonization.

There is therefore need for a regional policy to address these weaknesses, which should provide a framework for cooperation and integration in this field, identify concrete strategies, set time-bound targets to be achieved, and indicators of progress. This policy should also provide pointers for the development of sector-specific interventions to mainstream gender into the programmes and activities of the four clusters at the Secretariat, as well as sectoral ministries in Member States.

Weaknesses at national level include limited human and financial capacity of gender coordination machineries, and poor linkages between these and sectoral ministries. This results in a piecemeal and uncoordinated approach, and delays efforts to mainstream gender into all policies, programmes and activities at national level.

At both national and regional level, there are very few agreed benchmarks and concrete targets, as well as limited monitoring and evaluation tools to track progress on the achievement of gender equality. This further underlines the need for a regional gender policy as earlier proposed, which identifies the areas of cooperation, sets targets to be achieved, indicators of progress, strategies and activities to be implemented by Member States, with support and coordination by the Secretariat.

3.6.2 SCIENCE AND TECHNOLOGY

3.6.2.1 Overview

As a region destined for deeper integration and the ultimate creation of a common market, it is imperative for SADC to cooperate on science and technology (S&T). Scientific and technological innovation could form the basis for socio-economic development in the region. Cooperation is essential in dealing with transboundary issues such environmental management, which often requires regional solutions that are based on science and technology. Collaboration and networking in addressing issues of science, technology and innovation are requirements at national, regional and global levels. SADC member states can maximize efficiency and effectiveness of their investment in research and technology development through regional cooperation.

3.6.2.2 Review of Current Policies and Strategies

The policies and strategies for regional cooperation in science and technology are not yet in place. However, the then SADCC commissioned a study on regional science and technology which addressed the following five areas concerning S&T: the economic setting; education and human resources; national organization and management; the status of research and development institutions; and the legal aspects. The report of the study published in 1994 produced the following findings, some of which are still relevant today:

• SADC economies are dominated by agriculture and mining and limited manufacturing which depend on imported technologies.
• Expenditure on research and technology development (R&D) is way below 1% of GDP throughout the region.
• Governments in the region offer little or no incentives to the private sector to encourage research and development activities.
• There are shortages in scientific and technological human resources including artisans, technicians, engineers and scientists, which are exacerbated by the brain drain due to more attractive research conditions in the developed countries.
• Education in science and technology is biased against girls and the performance of schools are not encouraging because of low enrolment and progression rates, poorly trained teachers and inappropriate curricula.
• There are gaps in legislation to protect intellectual property rights.
• There is very little cooperation in science and technology between countries in the region.

3.6.2.3 Evaluation of Science and Technology Policies and Strategies

Several meetings have taken place in the region to deliberate on issues of science and technology in SADC. The SADC Heads of Science and Technology met in April 1999 to explore regional cooperation and made several recommendations. The absence of a dedicated regional structure to drive regional cooperation in science and technology prevented the implementation of these recommendations. The SADC Heads of Science and Technology met again in May 2002 to consider a proposal on compiling a report on S&T collaboration and to identify constraints thereto. One of the recommendations of the meeting was the proposal for a SADC Science, Engineering and Technology Week to popularise science and technology in the region.

An analysis of the current situation reveals the lack of policies and strategies and the absence of an institutional framework as the main factors preventing meaningful cooperation in science and technology within SADC. Chapter 4 of the Plan will address these issues and put forward proposals for implementation.

3.6.2.4 Challenges for Policies and Strategies

There is need for an institutional framework for regional integration and cooperation in science and technology, which would include a legal instrument, well articulated policies and strategies and an organizational infrastructure to drive regional cooperation in science and technology.

Priority issues of science and technology policies and strategies could include creation of a regional indicator programme and promoting public awareness and understanding of science and technology, especially among the youth.

The science and technology function of the SADC secretariat will also prioritise the issue of building science and technology networks to promote intra and interregional cooperation and linkages. This will require the necessary institutional arrangements and resources.

3.6.3 SADC STATISTICS

3.6.3.1 Overview

The overall objective of the SADC Statistical System is to support regional integration by making available relevant, timely and accurate statistical information to be used in SADC planning, policy formulation, protocol monitoring and decision-making. The SADC Statistical Programme is the instrument through which the System is promoted. The specific objectives of the Programme include the harmonization of statistics in the region and capacity building in SADC Member States in the field of statistics. The Programme focuses on the availability of comparable, accurate and up-to-date core statistics in the economic and social areas in particular economic statistics, Social statistics and cross cutting statistical issues.

3.6.3.2 Review of Current Policies and Strategies

The development of the SADC statistics is guided by the Strategy Document approved by Council in 1998, which stipulates that SADC statistics is critical in the monitoring and evaluation of the SADC Programme of Action and the regional integration process. The strategy highlights the following challenges:

• Inadequate resources allocated to statistics in some of the member countries;
• Disparities in the statistical capacity among the countries;
• Inadequate statistical capacity at the Secretariat to co-ordinate statistics in the region;
• Absence of a legal instrument for regional cooperation in the area of statistics;
• Lack of dissemination mechanisms (including databases and connectivity); and
• Long time lag between collection of data and dissemination of statistics.

The implementation of the strategy focused on the following priorities:

• National accounts, trade, prices, balance of payments and investment statistics;
• Economic sector statistics: finance, industry, mining, and agriculture;
• Social sector statistics: population, education, labour, health, and HIV and AIDS;
• Environment and related statistics: tourism, transport, energy, and water.

In addition, the following cross-cutting themes are also prioritised:

• Poverty Statistics
• Gender Statistics
• Informal Sector Statistics
• Development of statistical databases and other dissemination, publication and accessibility mechanisms

3.6.3.3 Evaluation of the Policies and Strategies

Progress has been made in some priority areas including national accounts, prices, censuses, training, and database development. Most countries in SADC are implementing the revised United Nations System of National Accounts. A programme on the harmonisation of price statistics has been launched. The objectives of the programme is to construct a regional harmonised statistics with a view to take SADC member states to an international price comparative programme. Programmes and projects to address the poverty information systems and natural resources accounting are also under implementation. Establishment of sustainable regional statistical systems based national statistics offices (NSOs) is being addressed through capacity building at regional as well as national levels.

3.6.3.4 Challenges for the Policies and Strategies

There is need for a legal instrument for regional cooperation in the area of statistics. The instrument will ensure that the institutional arrangements for collecting, processing and dissemination of statistics are adequately resourced. The instrument will also provide a framework for enforcing compliance on minimum standards for quality statistics. The collection, processing and dissemination of statistical information for monitoring and evaluation of the policies and strategies and in particular the RISDP are crucial in the development of statistics.

Some of the important areas not covered are the statistical indicators on science and technology, research and development and the informal sector. It is imperative that these statistics are incorporated in all official statistics and may have to be addressed as a matter of urgency along with capacity building at regional and national level.

3.6.4 SADC PRIVATE SECTOR

3.6.4.1 Overview

The SADC region is evolving from a largely state controlled economy to a private sector led economy. This development has now been happening at an increasing speed over the last 10 years. The role of the private sector in wealth creation, employment generation and therefore poverty alleviation is firmly accepted by all SADC member states. However the strategies and approaches by which the private sector may be engaged to the mutual benefit of both the States and the Private Sector are not entirely in place across the Region.

Private sector engagement in SADC is at different levels of development ranging from strong public-private sector partnerships, on one hand, to a cautious relationship between the State and Business. In the later case the private sector is generally handed down the policies and at best engaged at the programming stage. In those countries where the Public Sector sees it as mandatory to consult the Private Sector on policy, legislation and programmes that affect business, markets tend to be better regulated and developed and business environments are more attractive to both internal and external investors.

3.6.4.2 Review of Current Policy Environment and Strategies

Although collectively SADC Member States have agreed to engage the private sector in the drive towards regional integration, this is not backed by a SADC Policy on Public-Private Sector dialogue and Public-Private Sector partnership. Regional policies and strategies are also not in place:

• On how best to engage the private sector to deal with income poverty
• To mainstream strategies on tackling HIV and AIDS as the private sector is engaged
• To increase the involvement of women in business
• To ensure the development of a responsible private sector through nationally and internationally acceptable codes of good corporate governance

The current SADC Policy environment on the Private sector consists of two MoUs with ASCCI (August 2000) and SEPAC (February 2001). A subsidiary document, the ASCCI White Paper, has now been accepted by SADC Member States as a working document towards a more meaningful engagement of the Private sector. It is however not yet agreed as to how the White Paper issues will be implemented.

The ASCCI White Paper on the Economic Policy Issues in the SADC Region outlines key areas of concern by the private sector and makes several recommendations on the way forward. The White Paper explores five key issues covering Investment and Growth, Trade Expansion, Competitiveness, Harmonisation of Policies and HIV-AIDS, and identifies the following needs:

• The betterment of the macro-economic environment to attract investment, including FDI
• The security of investment
• The facilitation of the movement of labour
• The speeding up of the UNIVISA and its extension to SADC nationals
• The speeding up of free movement of capital
• The facilitation of intra-regional trade
• The removal of NTBs
• The provision of regional trade and market information
• The prevention of dumping practices
• The adoption of more liberal air access policies
• The enhancement of national and regional competitiveness
• The harmonisation of business arbitration systems and
• A concerted approach to the HIV and AIDS issue

As a follow up, the Private Sector met in May 2002 and reviewed the White Paper for areas requiring action from them. The three priority areas identified for implementation by Chamber Members of ASCCI were Training in export procedures and general business training in order to enhance investment and growth; Market Information on import/export procedures, potential buyers/sellers, data on trade flows, customs duties and NTBs in order to enhance competitiveness; and a Reduction of customs procedures and bureaucracies to enhance Trade Expansion. These areas are currently under implementation.

3.6.4.3 Evaluation of Current Policy Environment and Strategies

The MOU between SADC and ASCCI is a non-legal binding instrument of co-operation between SADC and the Region's private sector through the Chambers of Commerce and Industry and Business Associations. Since its signing the major outcome from the SADC ASCCI MOU has been the creation of a private sector desk at SADC and the inclusion of the ASCCI White Paper on the Agenda of the Finance and Trade ministries as directed by the SADC Council in Angola (October 2002).

However the SADC ASCCI MOU seems to suggest that ASCCI is an external body to the "sub-regional organization promoting development and economic growth in the sub-region through regional integration". Both the MOU and its spirit are insufficient as a tool to integrate the private sector into the SADC policy framework and regional programming.

The MOU with SEPAC came in the wake of a SADC Industry and Trade Ministers' approval of a programme for the development and promotion of Small and Medium Enterprises (SMEs) in 1992 which was followed by a Regional Programme of Action (RPA) approved by the Ministers in 1998. Both the RPA and SEPAC focus on similar areas. These are the SME Policy support (Legislation); SME support services (Information and Technology database, and training and development); Access to finance; Marketing, business linkages and cross-border trade; and Institutional co-ordination.

As in the ASCCI MOU, the SEPAC MOU sought co-operation and not integration of the SMEs into the SADC policy framework, SADC structures and programmes. The MOU, though formalizing the relationship, is non-legal and not binding between the parties.

There is no evidence of SADC servicing the SADC SEPAC MOU beyond the stated intentions as detailed in the MOU. SEPAC on its part has implemented several initiatives albeit at a declining pace to the detriment of the agreed "SADC Programme for the Development and Promotion of Small and Medium Enterprises".

The issues above offer a base for the derivation of strategies to develop, firstly, a SADC policy for a strong public-private sector partnership and dialogue, and secondly to integrate the private sector into the SADC framework. Although the intentions are substantial from both parties and the political will is in place, strategies are lacking on the way forward.

3.6.4.4 Challenges to public-private sector partnership

The base strategy for SADC will be to develop and implement all future policies and programmes through structured consultative processes in which such groupings as the private sector are an integral part. Two main challenges therefore exist for SADC. Firstly the institutionalisation of public-private sector dialogue and partnership and the enhancement of the current MOUs with ASCCI and SEPAC from mere obligations to mandatory responsibilities; and secondly the development of an action plan involving both the public and private sector to deal with issues outlined in the White Paper. The RISDP offers an opportunity to meet these challenges.

3.7 INFORMATION AND COMMUNICATIONS TECHNOLOGY

3.7.1 Overview

Information and Communications Technology (ICT) is creating new dynamics for growth, prosperity and creation of wealth and has become an essential condition for countries and regions to meaningfully integrate into the global economy and reap the benefits thereof. In the wake of globalisation, activities and transactions are increasingly being conducted via Internet. It is now estimated that 60% of the labour force of the developed world consist of knowledge-based workers.

This paradigm shift from the industrial to the digital economy is the very foundation of the new economy. In order to derive benefits from the new economy, it is imperative for the SADC Region to review and refocus development strategies and approaches by aggressively using ICT as a catalyst for socio-economic development and prosperity. There is, therefore, an urgent need for SADC Member States adjust to the new digital environment in order to maximise the opportunities availed by globalisation and minimise the risks associated with it.

3.7.2 Review of Current Policies and Strategies

The SADC's protocol on Transport, Communications and Meteorology focuses on the creation of reliable infrastructures in transport and communications to speed up development and facilitate trade among Member States. The Protocol represents a commitment by member states to embark on fundamental reforms in the transport and communications sectors. To put practical effect to the Protocol and to meet the challenges of the new digital revolution, SADC published a paper - Policy Guidelines on Making ICT a priority in turning SADC into an Information-Based Economy (November 2000). This was immediately followed by the adoption of an ICT Declaration by SADC Heads of State and Government in August 2001. The ICT Declaration is a commitment by member states to embark on in-depth reforms to take maximum advantage of the new technologies.

SADC has initiated the creation of specialized associations to carry on with the operational works related to ICT. These include the Telecommunication Regulators Association of Southern Africa (TRASA) which is responsible for the harmonisation of ICT legislation in the region, and the Southern Africa Telecommunications Association (SATA). In 1999, SATA engaged ITU Africa Region to study and identify transmission projects that have a substantial regional dimension with a view to interconnect the SADC member countries with high bandwidth backbones like fiber optics, microwave, and satellite links.

At the same time an ICT task force set up to look into the e-readiness of Member States made recommendations covering all economic sectors. The Task Force recommended that mot Member States needed to put in place the foundations on which an information economy is built: basic voice telephony, electrification, schools to increase the literacy level, etc. Other Member States were found to have a relatively high literacy level, a fairly developed banking system, a relatively high per capita income, a fairly high teledensity, and a good computer penetration per household. These countries could become the drivers of technology in SADC as some of them have already enacted legislation for e-commerce, Internet, and cybercrime.

A SADC ICT plan, which defines the priority intervention areas was prepared to be submitted to the European Union for funding under the 8th EDF.

3.7.3 Evaluation of the Policies and Strategies

SADC's protocol on Transport, Communications, and Meteorology has had a profound impact on the reforms in the telecommunication sector in SADC. The state-owned telecommunication companies have progressed towards privatization and are now competing in mobile telephony and some telecommunications related services. Most countries now have a regulator in place to address disputes and to regulate the situation created by competition.

However, the region still has a very low level of teledensity and access to basic telephony is still very expensive. This situation does not make the SADC region attractive to investors and puts the business operators of the region at a disadvantage.

Although at policy level, member states have demonstrated that there is unanimous consensus to adopt ICT as a tool to speed up development (ICT declaration of 2001), in practice at the strategic level, no serious implementation took place.

3.7.4 Challenges in the Policies and Strategies

While a sound policy framework and commitment for the development of ICT in the Region is in place, the following challenges need to be addressed in order to create an enabling environment for this to happen:

1. The need to create a permanent ICT Task Force comprising all stakeholders to ensure cross-sectoral coordination of ICT issues;
2. The need for a legally binding mechanism or a protocol to drive ICT issues at a very high level in order to facilitate implementation and follow-up and to commit stakeholders to reforms in their respective sectors.
3. The need to undertake reforms that will underscore the convergence of infrastructure usage for telecommunications and broadcasting under the broad umbrella of ICT. Some member states have already taken the lead by bringing reforms in those sectors at their national levels.
4. There is also a need to develop standards and procedures for ICT in SADC. This will facilitate the monitoring of progress among member states. The need to standardize on one computerized customs system for instance will help in creating a seamless interface and better and faster integration among member states.
5. Technology is in a state of constant change or evolution, as a result, regulating technology can prove to be very difficult and sometimes unnecessary. While market forces can sometimes decide the way forward, member states must be able to monitor progress in technology. SADC can learn from the experiences of others by constantly monitoring technological evolution and apply those technologies that are more stable, proven and appropriate for its member states.
6. The need to build capacity and create awareness on the benefits of technology as an essential condition for the success of ICT. This implies that SADC, has to among other things, put priority on an educated and healthy population, which will form the basis of this new society.

3.8 ENVIRONMENT AND SUSTAINABLE DEVELOPMENT

3.8.1 Review of Current Policies and Strategies

The policies of Environment and Land Management are designed to assess environmental conditions for sustainable development; reduce threats to human health, ecosystems and future development; promote sustainable development; manage shared natural resources on an equitable and sustainable basis; and accelerate regional integration and capacity building.

To achieve these objectives, measures have been taken to monitor and guide all sectors on the implementation of environmental policies, strategies and programmes; promote sound environmental management through pollution control, waste management and environmental education; and to ensure effective implementation of multi-lateral environmental agreements and gender mainstreaming.

3.8.2 Evaluation of Current Policies and Strategies Almost all policies and strategies of Environment and Land Management directly address the policies of promoting sustainable utilization of natural resources and, indirectly, address the promotion of agriculture development.

The achievements of the sector include the setting up of an institutional framework, infrastructure and networks for co-ordination and programme implementation, capacity building and institutional strengthening through training programmes in Member States, and partnership building with other development institutions.

The sector has co-ordinated the positions of Member States and coordinated action plans for the international conventions such as the UN Convention to Combat Desertification (UNCCD), the Persistent Organic Pollutants (POPs), and the Convention on Biological Diversity (CBD).

3.8.3 Challenges in Current Policies and Strategies

• Prioritising the promotion of good land management through land use planning.
• Inadequate professional guidance to other sectors such as Trade, Mining and Tourism.
• Inadequate attention to issues of waste management and pollution, protection of the marine and coastal environment, the promotion of environmental awareness and acquisition of knowledge and skills; and
• Need for systematic implementation of the gender strategy beyond the mainstreaming of gender into specific projects and documents.
• Trans-boundary conservation of natural resources.