To achieve this the RDP seeks to address basic needs (such as housing, electricity, sanitation, water, nutrition and primary health care) by focussing on economic policies that would best encourage the provision of these needs. Such policies include increasing public sector investment (in labour-intensive endeavours), fostering private sector industrial initiatives (which would advance both industrial performance and meet basic needs) and promoting human resource development (to improve labour productivity). The government intends redirecting expenditure towards redistributive limited-cost projects such as school feeding schemes, rural water provision, public works programmes and the provision of municipal services. .
While the primary focus of the programme is on meeting basic needs, it also emphasises the need for maintaining sound economic policies, for becoming accountable and more transparent, as well as for controlling government spending through improved efficiencies and the eradication of corruption. .
If handled well and in a fiscally responsible manner, the programme will go some way towards meeting expectations and providing a necessary stimulus to growth. .
During 1994 the trade account of the balance of payments deteriorated sharply, mainly due to a surge in imports, while export growth faltered despite the improvement in commodity prices and stronger international growth. As a result, in 1994 the balance on the current account is likely to be less than R 1,O billion which is well down on the R5,9 billion surplus achieved in 1993. However, despite the disappointing trade account performance, South Africa's successful return to the international financial community has led to a substantial reversal in the capital account, translating into a sizable increase in net gold and foreign exchange reserves during the second half of 1994. .