Hon Deputy Speaker, hon members, hon M B Skosana, the call for the transformation of the Bretton Woods institutions refers directly to the World Bank Group and the International Monetary Fund, the IMF, which were established as specialised agencies of the United Nations in 1944.
The reforms that South Africa is calling for relate mainly to the following areas. Firstly, they relate to the review of the quota shares. This call is aimed at realigning the quota shares held by countries to reflect current global realities. The realignment will result in countries with higher GDPs having more shares, thus changing their relative weight in the institutions.
Secondly, the reforms relate to improving governance systems to enhance the voice of developing countries. The aim in this regard is to increase the representation of developing countries on the boards and to increase diversity at management and staff levels.
Thirdly, the transformation we are calling for is likely to improve the financial and economic conditions of developing countries. Already, some reforms were agreed to at the leaders' summit in Pittsburgh in September 2009 regarding the quota shifts of 5% at the IMF and 3% at the World Bank. A quota shift to developing countries gives us, as a group, more voting power and additional resources to draw from as each country's voting power and access to financing is determined by its quota share.
We have also secured an agreement on increased representation in decision- making bodies such as the IMF's International Monetary and Financial Committee and the World Bank's Development Committee. This gives developing countries an opportunity to exercise greater influence on global, economic, financial and development governance.
No member country of the World Bank or the IMF, including South Africa, is required to change its economic policies and systems as a result of transformation at these institutions. The planned reforms will impact on South Africa's quota shares, which are expected to be realigned accordingly as underrepresented countries get more shares. South Africa will, however, have an increased voice as reforms are implemented. I thank you. [Applause.]
Thank you, Deputy President, for your reply. Your Excellency, if my assumption is correct, I think we are also calling for a new world economic order, and we are calling again for a review of continental economies. We are calling for a review of regional economies and a review of national economies, including that of South Africa.
My question then, Your Excellency, is: How are we preparing for these calls for reform at legislative and executive level? I am also interested in seeing how we deal with the idea propounded by the Minister of Economic Development, Minister Patel, on the recovery of African economies in terms of his support for the institution of social economies, community-based economies and co-operative economic ventures. Thank you.
Thank you, hon Deputy Speaker and hon M B Skosana. The review of the world economy is a matter that is on the agenda of the leaders' summit, particularly at the G20.
These institutions, particularly the Bretton Woods institutions, the World Bank and the IMF, were identified as key in terms of ensuring that the current economic recession is transformed into an opportunity. This is because these institutions have been dealing with developing countries for an extended period of time and their transformation should be speeded up to equip them for better utilisation to the benefit of developing countries.
So, that review is meant to be buttressed by the review of regional economies, as you would no doubt know that the Economic Community of West African States, Ecowas, SADC and the East African Economic Community also held a summit precisely to streamline themselves for better participation in the world economy.
In terms of the legislative and executive processes, it is still early days. These processes, on the African continent, are being led by Ministers of Finance as well as governors of central banks, and they are under the chairpersonship of the African Development Bank. I thank you.
Hon Deputy President, in addition to what you said regarding the Bretton Woods institutions, the ACDP believes that there is also an urgent need to transform the global trade regime in order for developing countries to use trade to address developmental challenges.
In particular, hon Deputy President, would the speedy conclusion of the Doha Round of negotiations at the World Trade Organisation not be a major step towards releasing the full potential of international trade? And, therefore, should developed countries not do everything to unlock the deadlock that exists at the moment to deliver on its developmental promises? Would this step not place South Africa and the international community as a whole in a better position to meet the targets set in the Millennium Development Goals? Thank you.
Thank you, hon Swart. That is indeed the way to go, and that is the route we are following. The Doha Round of negotiations has also received attention and the support of the G20; in fact, these negotiations should be concluded sooner than yesterday, precisely because of the understanding that this is the only way in which the current global economic meltdown can be turned into an advantage.
Of course, as you know, the European Union member countries, including the United States of America, have also committed themselves to oppose any form of protectionism. That augurs well for the conclusion of these negotiations. We are quite optimistic that indeed the conclusion would be one that enhances global trade and particularly promotes more meaningful participation by developing countries. I thank you.
Thank you, Madam Deputy Speaker. Hon Deputy President, in your reply you referred to the Bretton Woods institutions. You said that emerging countries would get additional quota shares. You also referred to the fact that the rising GDP would also play a role in that they would get a higher quota.
My question to you, hon Deputy President, is: What will the developing or emerging countries do with their increased leverage within the Bretton Woods institutions? Thank you, Madam Deputy Speaker.
Thank you very much, hon member. Well, the developing countries will ensure that these Bretton Woods institutions - the World Bank and the IMF - do not go back to their old habits and that, in dealing with developing countries, they are more supportive and completely abandon their know-it-all attitude and also seek to interact and engage with developing countries as equal partners.
I found that the attitude and spirit of the leaders of these institutions were very positive. This is one of the benefits of the shock that hit all of us when the financial institutions suffered losses that were primarily as a result of these rather fancy products they were trading in. So, there's a soberness that is most welcome in these institutions.
With the additional votes, the developing world, which of course includes some economies that are quite sizable now and are growing, will be able to utilise these institutions in a more productive manner. Thank you. [Applause.]
Hon Deputy Speaker, hon Deputy President, I must say that I highly appreciate the information that the Deputy President is sharing with us. It does actually give us some optimism with regard to these institutions.
However, my fear, Deputy President, is whether we are not seeing a superficial transformation at a structural level and even at a technical level rather than at a philosophical and content level with regard to these institutions aligning themselves in addressing poverty in the world.
Thank you, hon Ngonyama. Well, I suppose the developing countries should not be passive in this matter. I think we also have the responsibility to participate - as I indicated - as equals and to identify our own strengths and guide these institutions accordingly.
The general thrust of the thinking within the regional economic communities on the continent is that these institutions should be invited primarily to invest in bulk infrastructure development so that trade within the continent itself can happen without the current difficulties. If you go through the Central African Republic, which I did a few weeks ago, their access to any seaport is through Cameroon, and yet there isn't even a decent tarred road linking the capital of the Central African Republic to the seaport.
So, if these institutions could be directed to invest in the development of such infrastructure, that in itself would enhance the capabilities on the continent so that the developing countries don't present themselves as weak, without ideas and without understanding their own countries and economies. They should participate more as masters of their own situations. Thank you. [Applause.]
Attendance at, and outcome of, meeting called by the President
10. Mrs P de Lille (ID) asked the Deputy President:
Whether he attended a certain meeting (details furnished) that was called by the President and to which the chief executive officer of a certain company (details furnished) was invited; if so, (a) what were the reasons for the meeting and (b) what was the outcome of the meeting? NO2118E
Madam Deputy Speaker, the hon member should be aware that information regarding whether the Deputy President held a meeting with a person and, if he did, what was discussed at the meeting is not usually provided in reply to parliamentary questions. This is done in order to ensure the confidentiality of the meetings that the Deputy President has.
However, notwithstanding this, I would like to inform this House that I have already instructed my legal representatives to demand a retraction from the Financial Mail as the allegations contained in their article are devoid of any truth. At the time I was unaware of the ITWeb article that contained similar allegations until this question was tabled. I have now instructed my legal representatives to follow the same course of action in this regard. Thank you.
Madam Deputy Speaker, unfortunately hon De Lille is at the Judicial Service Commission, JSC, therefore, I'll take the follow-up question. The debacle of the Congress of South African Trade Unions, Cosatu, and the Independent Communications Authority of South Africa, Icasa's, urgent court application to prevent the Vodacom deal from going through, have proved to be a great embarrassment and costly to the country. The rand loss of 3% of its value and the cost of the unsuccessful court application was alleged to have been in excess of R10 million.
Icasa's low credibility sunk even lower as a result of a sudden about-turn and surprising stance on this issue. The ID therefore believes that it is imperative that we know the truth around who bears the ultimate responsibility for this entire charade.
I know that in your response you have stated that you weren't at this meeting, but given that you signed off on the deal when you were President, it stands to reason that President Zuma would have consulted you on this matter. Are you therefore aware of anyone in the Presidency facilitating a meeting between Icasa and Cosatu in order to bring such a court application?
Can the Deputy President also explain why - given that it was in your previous capacity as President that you originally signed off on a deal - reservations were held by this new administration about this deal? Does this have anything to do with the fact that some members of Cope stood to benefit financially from this deal?
Finally, will the government be formulating a policy outlining the stance that the government will be taking towards the foreign listing of companies so that we can avoid embarrassing debacles like this in the future?
Thank you very much, hon Greyling. Cabinet's position with regard to this matter is very consistent. The Cabinet's decision has not changed. Even during that court application, the Minister of Communications had instructed lawyers to oppose the stance adopted by Icasa and Cosatu. I don't know how the rumour that is in the newspapers and so on has anything to do with Cabinet. Cabinet's position is very consistent in that regard. Thank you.
Madam Deputy Speaker and Deputy President, we all know that the Vodacom transaction, not only in South Africa but even worldwide, has attracted a lot of attention to South Africa. I want to hear from the Deputy President whether he does not feel that interfering in private business transactions is creating the image among possible international investors that the South African government imposes undue political influence on the outcome of private business transactions. Thank you.
Thank you, hon Van den Berg. I am unaware of any interference in private business transactions. As I have already responded to hon Greyling, with regard to the Vodacom transaction in particular, government's position has been very consistent. We promote the advancement of private business. We facilitate rather than retard and/or interfere in any business transaction.
Deputy President, in your response you emphasised the point that interference with the Chapter 9 Institutions is a problem and that government thus takes that into account, but I want you to be clearer about whether we are going to see less interference by government in the Chapter 9 Institutions.
Madam Deputy Speaker, this is a new question and is unrelated to the question we are dealing with. But, nonetheless, it is worth stating that we respect the independence of the Chapter 9 institutions. I want to place that on record. We will not interfere in any manner with those institutions. On the contrary, government's responsibility is to lead the nation in ensuring that everyone respects the Chapter 9 institutions. Thank you. [Applause.]
Plans to collaborate with civil society in instilling patriotism, nation- building and respect
11. Mr M L Fransman (ANC) asked the Deputy President:
Whether the government has any plans to collaborate with civil society to instil patriotism, nation-building and a sense of respect for the unsung heroes who contributed to liberating South Africa; if not, why not; if so, what plans? NO2116E
Deputy Speaker, hon Fransman, one of the ways in which government is endeavouring to instil patriotism, nation-building and a sense of respect for the unsung heroes and heroines who contributed to liberating South Africa is through the national legacy projects of the Department of Arts and Culture. These projects specifically support the development of new commemorative structures in the form of museums and monuments such as the Freedom Park Museum that consists of a memorial, interactive museum and Garden of Remembrance.
The Garden of Remembrance coherently narrates the journey of our humanity, survival and struggle for freedom and dignity. It reminds us of our struggle for land and resources, and of how these struggles have shaped our economic, political, social, cultural and historical landscape as a nation. The Freedom Park memorial facilitates the communal process of commemorating the pain and celebrating the victories of the past.
The Wall of Names, that accommodates a total of 120 000 names, currently has 75 names of fallen heroes and heroines inscribed on it. The Eternal Flame comprises a circular wall within which is nestled a flame surrounded by water. This flame symbolises eternity, and therefore, the monument pays tribute to the eternal remembrance of the heroes, both male and female, who perished without their names being recorded.
By preserving the memory of the fallen victims of previous wars, slavery, colonialism and racism, and by honouring the heroes and heroines of the apartheid struggle, we are essentially strengthening our unity as a nation. We are acknowledging our heritage, and this park is a reflection of the sacrificial achievements of our nation, thus ensuring that our children never forget those who gave their lives so that we could have our rights, freedom as well as social and cultural diversity.
Civil society comprising ordinary South Africans, political organisations, civil society groups and community organisations played a role in the memorial, particularly in identifying the names of the fallen heroes and heroines. However, more can be done, particularly at local, provincial and municipal level in commemorating our unsung heroes and heroines. It is, however, important that we use this process to build unity and to commemorate a shared history which we are all part of. I thank you.
Deputy Speaker, Deputy President, thank you for actually highlighting the sterling work that government and South Africa, in particular, is doing around making sure that young people understand what happened in the past. A specific issue that we are concerned about, however, is that if 16 to 24-year-olds represent seven million young people in South Africa, will the government also just consider, through the Presidential co-ordinating council, reflecting on specific strategies at local, municipal as well as provincial level, to also take this forward?
Deputy Speaker, yes, indeed, the task of nation- building is the responsibility of all institutions, including this august institution of Parliament, and we must all engage in civic education and ensure that the facts are known and disseminated, so that none of us should, in future, slide back into those challenges that divided our nation. So, lest we forget, it is important for all of us to do our bit to ensure that we know who we are and where we come from, always remembering the past we inherited and the future we have the capability to create. Thank you.
Deputy Speaker, hon President, we are on the same wavelength as regards acknowledgement and appreciation of our heroes, but surely you'll agree with me that those who joined the ANC during the floor- crossing period do not automatically qualify as heroes of the struggle; similarly, those who left the ANC do not automatically get disqualified as heroes.
The insults hurled at Prof Asmal cannot and will never obliterate his enormous contribution to the struggle for freedom. Therefore, the Deputy Minister of Police's comments are merely indicative of badly brought-up children in the leadership of the ANC.
Deputy President, we believe that people like Prof Asmal, Archbishop Tutu, Dr Mamphela Ramphele, Chief Buthelezi and Robert Sobukwe also qualify to be regarded as unsung heroes. Can you inform this House whether or not the government has a database of the unsung heroes of the struggle and the criteria utilised to compile it, including the period covered? Thank you.
Deputy Speaker, hon Kganare, as government, we confer honours on a number of prominent South Africans as well as members of other nations, and national orders, and the procedure for nomination is open to all South Africans. All South Africans, without exception, have a right to make submissions and motivations as to who should be honoured.
Therefore, the government does not have any database of heroes of our people. That rests with the people themselves, and that is why nominations have to come from the people. [Applause.] Political affiliation should play no role. If we speak of esteemed members of any of the national orders, that should be regardless of political affiliation. Thank you.
Madam Deputy Speaker, hon Deputy President, you've dealt with issues of history, but I would like to discuss the question of patriotism and nation-building in hon Fransman's question. When prominent members of the ANC leadership are heard in public using language that is racist, sexist and that threatens others, and when they're seen to do so without any kind of censure from the ANC, the government can't, here today, claim to be committed to instilling patriotism and nation-building in South Africa, when its actions so clearly run counter to this ideal.
When the ANC Youth League refers to the Western Cape Premier as "a fake racist girl"; when the uMkhonto weSizwe Military Veterans Association issues a press release claiming that the Leader of the Opposition has "a wild whore libido"; when Nehawu, a Cosatu affiliate, threatens to "mobilise" its members against the University of Free State rector, Jonathan Jansen; when the Youth League President publicly states that if a rape victim asks her attacker for taxi money it means that she "had a nice time" and lastly, when a Cabinet member, the hon Mbalula, refers to a respected elder statesman as "a bitter old man" and "a raving lunatic", these actions do nothing to enhance nation-building and social cohesion in South Africa, but instead, they do everything to tear this nation apart.
Does the government have any plans to end this divisive public rhetoric which undermines nation-building by bringing those within the ANC leadership to account for their irresponsible utterances? If not, why not; and if so, what are the details? [Applause.]
Hon Deputy President, clearly some of the questions are not supposed to be posed to the government as they are the ANC ... Order! They are the ANC's, but I'll leave it up to you to decide if you want to answer them or not.
Deputy Speaker, thank you very much. Hon Mazibuko, patriotism by definition means that one loves the piece of ground on which one lives, and therefore, to instil a particular conduct, among other things, would mean that you keep it as hygienically clean as possible.
The ANC government understands that there are uneven levels of consciousness and understands that generally speaking, there are many people who are conservative in the sense that they cling to the truths of yesterday and do not want to move with the times. The responsibility of all of us, regardless of political party affiliation, who commit ourselves to the noble goal of uniting all of our people into a nonracial society, carry the responsibility at all times to raise issues in a manner which points society in the direction of the creation of a nonracial society and, through our pronouncements and our actions, always strive to break down the barriers of division, so that we unite our people.
Of course, if we are prophets of doom, we will accept that aberrations in society represent all of us. Those of us who are committed to the principle of nonracialism carry the responsibility, at all times, to ensure that this is what we promote in our actions, in practice and by word of mouth. If anyone among us speaks out of turn, we also bear the responsibility to take them by the ear, pull them into line and through debate and by dint of superior arguments persuade them that the route to go is a nonracial one.
There are also other factors to be taken into account, because government as government has to accept that there is freedom of speech and that in the exercise of this freedom of speech, many people will say things that we do not agree with, but it is also a measure of our own political consciousness and maturity to defend their right to say what they say, otherwise if the ideas are simply embedded in their heads, we will never get to know who we are or where we are in this journey towards a nonracial society.
That is why rather than shooting down those who speak out of turn, be they to the left or to the right, it is our responsibility at all times to engage them and ensure that we present to society the efficacy and the nobility of nonracialism. A saint by definition is a sinner who continues to mend his ways. [Applause.]
We bear the responsibility to correct. That is why even the institutions in which known convicts, those who have been tried and convicted in courts of law, are kept are no longer called jails or prisons. They are now called correctional services, because we believe we have an abiding ability to correct each other and hopefully we can only abandon the most incorrigible.
We can only give up on those who when a piece of stone is cooked in one pot and they are cooked in the other the stone gets ripe first. We abandon those ones, but otherwise it is our responsibility; it is our burden to continue trying all the time, because if we do give up then there is no hope. I thank you.
Madam Deputy Speaker, your Excellency Deputy President, I'm pleased by the response that you have just given now. In your two previous lives, your Excellency, one as secretary-general of the ANC, you were part of a three-a-side between the IFP and the ANC which produced a document that spoke about the role of the IFP and Prince M G Buthelezi in the liberation struggle. And also in your life as the former President of this country, at the funeral of the late hon Cleopas Nsibande in Benoni, you spoke about the role of, particularly, Prince M G Buthelezi in the liberation struggle. What is it that government is doing to engage young people in this role in order for them not to cling to yesterday's lies that the IFP was part of the system? Thank you.
Deputy Speaker, hon Mpontshane, as I've already stated, we all carry the responsibility to ensure that the history that we inherit is presented as factually as possible. It is not easy to write contemporary history, because the temptation to embellish one's role is always looming large.
However, it is important that the facts are always presented for what they are without suffering from false consciousness. In other words, we should always guard against living in the past, because that also carries certain dangers.
Government, through the Department of Arts and Culture and other departments, tries, within the limits of what it can do, to ensure that due recognition is given to those who played a prominent role in our country. That does not mean that that is only measured in terms of one's involvement in the struggle for liberation, because the development of a society is a function of all contributions. When we participate in an election and register, such as one party that is not with us here, the Keep It Straight and Simple party, it was called the Kiss party, I think, that played an important role in our democracy, because they made their own effort to participate in the elections and even campaigned. The fact that they did not garner sufficient support does not, in any way, detract from their contribution, and that must be the attitude that guides us in recognising the roles of those who contributed in shaping our democracy.
We, in government, regard uMntwana kaPhindangene, one of the elder statesmen of our country, as one of the doyens of the struggle for freedom and for our parliamentary politics as well; we do. I thank you.
Query regarding return of exorbitantly priced vehicles in the face of the recession
12. The Leader of the Opposition (DA) asked the Deputy President:
Whether, in light of his statement (details furnished) that it does not make economic or ethical sense for the government to be spendthrift with its financial management in the face of the recession, members of the Cabinet who have spent exorbitant amounts of money on purchasing vehicles will be requested to return those vehicles; if not, why not; if so, what are the relevant details?