AVAILABLE NOW

This book traces the economic debates in the ANC from the Freedom Charter, to Morogoro, to the RDP and to the present.

It shows that the shift to macro-economic stabilisation in the transition to democracy in 1994 was due to international pressure and how it changed the trajectory of ANC policies.

The government became frozen in the pursuit of cautious economic policies in the interests of fiscal prudence.

The commitment to development lost momentum, compensated partially by the provision of modest social services and social grants.

The book traces the revolt against economic orthodoxy at the ANC Polokwane conference which was pressed forward at the Tripartite Economic Summit in 2008. The book analyses the economic challenges that will face the new government in 2009 with original insights into what should be done to address the economic crisis. It sets out a framework for alternative development programmes based on a change of mindset about the centrality of development planning in a pro-people developmental state.

The analysis is based on 15 years work in parliament and in economic committees of the ANC which provided unequalled access to vast documentation and discussions with the top policy makers of the ANC and government.

The contents include extensive examination of the international conditions at the transition in 1994, the creation of the RDP, the switch to Gear, the distortions of BEE, the dual economy, the lessons from Africa and the reasons why  the productive sectors of the economy have stalled. There is a postscript on the decisions of the Tripartite Economic Summit in which the proposed changes to government policies are assessed.

Prof Ben Turok is a member of parliament in South Africa and visiting professor at the University of KwaZulu-Natal. He is a veteran of the ANC, Editor of New Agenda, and founder of the Institute for African Alternatives in the UK and Africa. He has published many books on development economics and politics in Africa.

NEW AGENDA (S A)

ISBN:  978-0-620-42565-0

Enquiries; Germaine, Tel: 021 403 2593/ 073 9559 473, Fax: 021 461 9390, Email bturok@anc.org.za , PRICE: R150

Bank: Standard Bank

Account number: 070394903
Account type: Business current account
Branch name: Cape Town
Branch code: 02 0009
Account name: NA Publications

CONTENTS

Introduction                                                                                          p11

Ch 1     ANC Economic Policy in the Struggle Years                             p18

Ch 2     The Political Context of the Transition 1990-1994                     p33

Ch 3     The International Context of the Transition                                 p49

Ch 4     Reconstruction and Development Programme                p75

Ch 5     The Switch to Gear                                                                   p111

Ch 6     Black Economic Empowerment (BEE)                          p139

Ch 7     The Dual Economy                                                                   p179

Ch 8     The ANC and Africa                                                                p211

Ch 9     Stalled in Orthodoxy                                                                 p245

Postscript                                                                                             p271

Acronyms                                                                                             p274

Index                                                                                                    p277

After ten years of remarkable political stability, our country is now experiencing  considerable stress.  Most of the institutions of  government remain a stable  arena, but governance, in the sense of how parts  of the  administration function,  is showing unexpected strain. (more…)

Paper 869a

1.    Since the rules governing trade between Europe and Africa have become increasingly complex, we need to set down some basic issues:

a.    In colonial times, trade between the colonial powers and the colonies was marked by unequal exchange with the values wholly out of proportion.
b.    In the period of European industrialization, European manufacturing relied on protection behind high tariff walls, keeping out cheaper imports.
c.    In the present period of so-called free market economics, Europe continues to maintain massive protectionism while demanding opening up by trading partners.
d.     Europe wants access for manufactured goods and services in Africa which will seriously weaken the domestic economy.
e.    All these negotiations are conducted in highly complex terms, and in numerous extended sessions, possibly designed to obscure Europe’s real intentions.
f.    Where small concessions are given by Europe, it is immediately compensated for by additional demands.
g.    If we are moving to a system of global free markets, why not make a few simple rules, which will apply to all, without any complexity, and without any hidden advantages to the strong. (more…)

1.    The increasing attention to the modalities of Official Development Assistance (ODA) from Europe to Africa provides a good opportunity to examine the overarching environment in which ODA occurs.

2.    Among these considerations those which seem to be important presently are:  the role of Parliaments in Europe and Africa in promoting good governance, the jurisprudence of international cooperation, the rights to property and the right to work. (more…)

There is now a great deal of attention in Europe to relations between Europe and Africa. This is partly due to the arrival of large number of African immigrants, but also to wider concerns about global security and environmental issues. There is also much concern about “good governance” in Africa, though, strangely, the role of Parliaments is generally omitted in the relevant documentation. Yet, clearly, good performances by Parliaments are an essential element of good governance. (more…)

1 Present Europe-Africa relations are based on primary commodity exports from Africa to Europe and consumer goods and services exports to Africa.

2. There is a large imbalance on this trade despite high mineral and petroleum prices.

3. Official Development Assistance (ODA) helps overcome the imbalance but it is not enough to prevent Africa’s current account falling into deficit.

4. Also ODA creates undesirable inter-state relations of dependency in Africa especially if it is in the form of Budget support.

5. However ODA transfers must continue and even increase, but must be subjected to Parliamentary monitoring in Europe and Africa.

6. Furthermore, ODA is no more than a palliative and cannot uplift the continent to sustainable economic development.

7. The challenge therefore arises whether Europe can play a more constructive role in facilitating Africa’s economic development, if so, how?

8. The solution seems to lie in re-examining existing economic relations and restructuring them on a better basis.

9. Africa’s reliance on primary commodity exports must be complemented by new methods of adding value by the domestic economy.

10 It is proposed that new agreements between European and African countries be examined which will allow the allocations of ODA to be used for creating added value by means of beneficiating primary commodities prior to export.

11 Alternately, European corporations could consider investment in African production in value adding activity prior to export.

12 It is noted that most multi national corporations do produce their goods across several countries, taking advantage of the favourable conditions in each country. Thus we find production in country A, manufacture of components in country B, assembly in country C, and distribution in many other countries. In other words there is a division of labour across several countries.

13 Could this same system be introduced more widely into Africa for the mutual benefit of European corporations and African business?  If so, what incentives are needed and what conditions would be conducive to make such a process possible?

14 Obvious examples of such arrangements would be the first stage processing of coffee beans in Kenya, and of cotton in Mali. Numerous other examples come to mind.

15 It is understood that first stage processing is not possible without the necessary investment which would have to come in the form of ODA or private investment.

16 It is also accepted that there would have to be a transfer of technology and training, not only in the processing but also in the harvesting of the primary commodity.

17 There would also have to special arrangements for marketing the product to ensure a ongoing returns.

18 All this requires a new level of political will which combines national self-interest in Europe and Africa, based on a vision of longer mutual benefit than are to be found present negotiations of Economic Partnership Agreements (EPA’s)

PAPER FOR E U PRESIDENCY SEMINAR ON AFRICA

EUROPEAN PARLIAMENT, BRUSSELS

1.    Since there is a great deal of concern about the relations between Europe and Africa, we have a valuable window of opportunity to enhance the work of Parliaments in Europe and Africa. Much of the concern is about “good governance” in Africa, but the role of Parliaments is generally omitted in the relevant documentation. We need to assert strongly that good performance by Parliaments is an essential element of good governance. (more…)

There may have been talk of a Tsunami, but no one predicted the outcome at the ANC Polokwane conference. The removal of a substantial part of the top echelon of the ANC leadership is without precedent and undoubtedly a jolt to the country and the ANC itself.

The raw facts are astonishing. Six of the most important personalities in the ANC and government stood for election to leading positions and were all voted down. They included the President, Deputy President, Chairperson, the Head of Policy, the Minister of Foreign Affairs, and a member of the National Working Committee. In addition, almost all Ministers and Premiers were denied a place on the National Executive Committee (NEC) and therefore the National Working Committee,(NWC), the highest decision making bodies operating between the five year conferences.

This is not to say that the new leadership is without merit, indeed there are many distinguished personalities in the new NEC, but the removal of so many renowned figures is remarkable and needs careful examination.

I was in a privileged position in the Electoral Commission monitoring the results as they emerged and it was immediately apparent that something dramatic was underway. Not only did the Zuma slate win by a convincing margin, but the margins were almost identical for each  of the six top positions. The most successful candidate  received only 70 votes more than the least successful.

This showed that even though the Electoral Commission had emphasized that the ballot was secret and no delegate was bound by any mandate from their branch or province, voting was almost wholly according to a slate on both sides.

This must have been the most carefully organized campaign for leadership the ANC has ever seen. The signs of intense lobbying were evident at the nomination conferences in the provinces prior to conference, and clearly paid off for the winning team.

So was this a personal victory for Jacob Zuma ? To try to get some answers I joined some delegates at lunch and got more than I expected. In one group of six delegates, from four provinces, I learned that  there was  substantial disappointment  across provinces about government’s performance. They indicated that while Zuma was the spearhead of their campaign, their concerns went much deeper.

While everyone conceded that substantial advances have been made with social reforms, these reforms have not been transformative. Much as the building of RDP houses, the provision of clean water, the  increases in social grants have been welcomed by the poor,  they have not had the cumulative effect of releasing millions  from poverty.

Indeed there seems to be a feeling that the reforms have not altered the basic condition of South Africa with  unacceptable levels of poverty, unemployment and inequality at world record levels. Instead, as ANC leaders have conceded, inequality has increased under ANC rule.

And yet ANC cadres are repeatedly told that we are in the midst of the National Democratic Revolution, that the Freedom Charter is the lodestar, and that the RDP is the main policy instrument. It should come as no surprise  if cadres argue that the piecemeal incremental reforms do not enhance “sharing” as in the Charter’s economic clause, “The People Shall Share in the Country’s Wealth”, and will not deliver  socioeconomic transformation.

So was this a takeover by the Left? Certainly a leftward shift was discernable at the earlier Policy Conference and the same trend was visible at Polokwane. On the other hand both Cyril Ramaphosa and Tokyo Sexwale were elected while several leaders of the SACP either failed to be  nominated or elected. Nor are Cosatu leaders really prominent.The ANC remains a broad church with many differing tendencies represented at the highest level.

My impression from further interaction with delegates was that in their view, far too few have  benefited from Black Economic Empowerment or similar schemes. In their experience some job opportunities have opened up, but skill deficiencies are pervasive. The country’s economic advances have not actually empowered many working people because they have either missed out on the necessary upskilling, or  have not been drawn into productive activity, especially  delegates from the former homelands and urban townships.

Of the delegates themselves, many  are in work, but with a mean age of about 38, they are products of Bantu education which did not provide them with the skills needed to advance in a modern capital intensive and technological economy. This has increased their sense of frustration.

Hence the frequent references in the Commissions and Plenaries to the need to advance the “developmental state” which will introduce development into the underdeveloped regions, and bring those millions into the market economy. This was why perhaps the strongest applause was given to the wholly new policy pronouncements on rural development. This is a major departure for the ANC, and will be a huge challenge for the new Executive. It could provide the means for promoting far greater participation in economic and social activity than the market economy generally allows.

What distinguished the Polokwane conference from all the earlier national conferences since the legalization of the ANC,  was the level of  emotional energy evinced by the delegates. True, there were some unpleasant scenes as respected leaders were booed, and toy toying got out of hand. But it cannot be denied that democracy was at work, that a substantial part of leadership was removed from office by normal elections. This is the first time in Africa that this kind of change has occurred within a ruling party and not by the substitution of one party by another.

How the ANC will manage the potential tensions between the leadership of the party and the leadership in the state is not clear. There will doubtless be many lekhotlas  to establish  harmonious relations and a mutual understanding. Perhaps these discussions  will also be more transparent and participatory than in the past.

It is vital  that the succession debate be conducted without acrimony and separated from the forthcoming list process which leads to  membership of Parliament. While formally it is Parliament which elects the future president of the country, in practice it is the ANC National Executive which, as the senior body,  makes the decision. Thereafter that decision is conveyed to the ANC Parliamentary  Caucus which would normally accept  the recommendation and carry it to the National Assembly where the huge ANC majority ensures its adoption.

Many outstanding leaders throughout the world have found that the democratic process can bring triumphs as well as pain. The general view is that the will of the people should prevail. Whether that is what happened at Polokwane will only be decided by history.

(Ben Turok is an ANC veteran,  an M P since 1994, and  the editor of New Agenda, S A Journal of Social and Economic Policy.)

In 2006, Chief Whip Goniwe asked Ben Turok to set up a Veterans Unit for ANC M P’s. The intention was to have a forum where Veterans could raise issues of concern, particularly problems they were experiencing with their physical conditions, such as travel, housing etc. There were about 45 such members, who were then invited to a meeting to establish the Unit. The Chief Whip kindly made lunch available as the only suitable time was lunchtime. (more…)

(Chairperson, Nepad Contact Group of African Parliamentarians)

1. In recent years several European governments have moved from “development assistance” to “partnership” in describing Official Development Assistance (ODA)
2. This change followed a considerable discussion about the relationship between Africa and Europe, and the intentions behind ODA. The most favourable justification of ODA is that the provision of assistance for poor countries and their peoples is a noble act in the interest not only of the recipients but also of a better world. Poverty and underdevelopment is now recognised as a “global bad” and the responsibility of all. (more…)