® SOUTHERN AFRICAN DEVELOPIIENT COIIIIUNITY DEEPLY CONCERNED about low levels of productivity, lack of a common vision and understanding of productivity, inadequate information about productivity improvement approaches, as well as low levels of co-operation among social partners on productivity issue. UNDERSTANDING that productivity is the efficiency and effectiveness with which labour, capital, materials, energy and other resources are combined and utilised in an environmentally and socially sustainable manner to produce quality goods and services for the satisfaction of human needs. ACKNOWLEDGING that increased productivity is best achieved under an environment characterised by: economic systems that are efficient, inclusive and competitive; human resources development which engenders productive behaviour; equitable distribution of the fruits of productivity gains; policies that embrace tripartism and facilitate harmonious industrial relations; productivity improvement which does not lead to a net reduction in employment, but rather one which results in job retention or yields net employment creation; a commitment by all social partners to productivity enhancement; gender equality and equity; and AWARE that the challenge for SADC is to ensure improved living standards for all its peoples, by harnessing the human, capital and material resources at its disposal in the most productive and sustainable manner. WE, the Heads of State or Government commit ourselves and our respective countries to meeting these challenges through increased productivity and WE therefore undertake to: (a) formulate and adopt appropriate national and regional policies and strategies at the macro institutional and enterprise levels to enhance productivity: Macro Level appropriate fiscal, monetary, trade, industrial, sectoral and labour market policies to ensure adequate access to economic assets and income generating activities for the majority of the labour force; Declaration on Productivity -2-