Chairperson, comrades, colleagues, hon members of this House, indeed this is not simply a challenge in the title, but for all of us here and even internationally highly topical. About a year ago we heard about the collapse of Lehman Brothers and that signalled a global economic crisis that has reverberated around the world, encouraging many states to run and call for protectionist cover. Exports from developing countries were knocked down, leading to the closure of factories and retrenchment of workers. Retrenched workers joined their unemployed brothers and sisters. The most vulnerable members of our society have become victims of unbridled greed.
We may well ask ourselves: How can South Africa combat the challenges of the current global economic crises? However, we have already learnt this year, in this term of Parliament, that we have indeed been more fortunate than a number of countries in Africa and in the South and, in fact, in the West itself. There is absolutely no doubt that the financial fundamentals that we have developed over the past 15 years have stood us in good stead, for example, the National Credit Act and the Extended Public Works Programme, and more recently the infrastructural programme around Fifa. We have, even prior to the stimulus package, taken a decision to actually allocate more than R7 billion to infrastructural investment and construction and development.
What is interesting, however, when we talk about how we as a developmental state overcome these challenges, is that we will often think of the experiences of the Asian Tigers, that mythical miracle that collapsed about 20 years ago. We may ask ourselves whether that wasn't touted as a developmental state, and indeed that was, but that's about all it was. It certainly understood about state intervention but it relied upon government by decree. It was an authoritarian regime which pursued its development to become an industrialised state that would rival that of the major powers of the West but at the expense of workers and civil liberties.
Indeed we know that that is not what our people fought for. Of course people fought against apartheid, but we seem to forget that they also fought for human rights. We had a Reconstruction and Development Programme, RDP and a Freedom Charter before. That all came together in our own Constitution with the Bill of Rights.
Certainly, our idea of a developmental state is more along the lines of, as Gandhi put it, "the cornerstone of the developmental state is one where there is constant dialogue and listening to the voice of the people." Which is why we find in this fourth term of Parliament that in one sense we are returning to our roots, as we move around among our communities more earnestly and stop talking but rather start listening to what people are saying and include that in the way in which we are managing government, and in this Parliament the way in which we are exercising our oversight.
Indeed, a developmental state, as we understand it in an ANC government, is one that is people-driven and one that directs the pace and nature of the economy in pursuit of transformation. It also requires, as other members of the ANC team will put to the House, a radically different public service mindset. In the executive we also have a reconfigured Cabinet to capture this new approach. In the Presidency itself evidence of this is in the National Planning Commission and in the Performance Monitoring and Evaluation as well as Administration.
What you now have is a clear understanding that a developmental state is not just going to be about policy and it not just going to be about rights. It is about responsibilities, performance, planning for that and about actually monitoring and evaluating it and reviewing it if necessary and not trying to run postmortems five years later. It is also one in which you find that the ANC government's commitment to fighting poverty and arresting jobless growth is absolutely key in a developmental state and is not simply an economic question.
There is absolutely no doubt that, unlike that which was launched in the Asian Tigers and indeed in Japan itself, we actually understand that a developmental state will collapse unless it is directly linked to social and economic development.
In this way we cannot have jobless growth. We have also put a stop to deindustrialisation and we are funding companies in distress, reinvigorating the agricultural sector and rural development. Rural development is not simply digging in a field, it will have industrial development alongside it and it will venture forth through new systems of transport and with field workers who will actually work within a South African and African system and not try to impose something that will not work in our country. We recognise that, as President Zuma has said over and over again, the silo concept of implementation cannot work in a developmental state. To combat the current global crisis we will need an integrated co-ordinated approach to planning and policy implementation. It requires a collaborative effort from all stakeholders, not only the public and private sector working together, but both working together with the unions and civil society.
The core of all of this in the productive sector itself is our workers, and we will recognise that the biggest and most sustainable investment we can make is to invest in employment and not to simply see the cost of employment as paying out wages all the time, but as also contributing directly to increasing the productivity base of South Africa.
In conclusion, it is important to clarify that the kind of work that we are looking at is decent, quality work, retraining and upgrading the skills and recognising and developing the potential of the people in our developmental state. That is the basic of combating the economic global challenges facing us today. I thank you. [Applause.]
Hon Chairman, hon members, what South Africa needs is a viable economic policy that encourages the creation of sustainable jobs. The ANC's response to the present job crisis - after having listened to the hon Fubbs - is to implement the so-called "developmental state". But this is not clear because there is no consensus within the ANC on what a developmental state entails.
South Africa is going through a severe economic recession. The question that every South African must ask is whether this particular policy that relates to a developmental state will lead to sustainable growth and sustainable jobs, or if a developmental state is just another experiment for short-term political gain. The fact remains that thousands of members of pension funds and South Africans from all walks of life have become poorer during this present recession.
This particular economic model, namely the developmental state, was used - as the hon Fubbs said - in a number of Asian economies to industrialise and attain economic growth, with varying degrees of success. At the same time, the obsession with centralisation in these countries impeded the evolution of democracy. Whether we believe it or not, the key to sustained economic growth is also economic freedom. I think the hon Fubbs quoted Japan, but there are a number of other countries such as Korea and Taiwan. One of the outstanding characteristics of these particular developmental states was a very efficient public service that was able to deliver. The question we have to ask ourselves is how our present Public Service will fulfil the requirements and needs of a developmental state.
What we need is less debate around redesigning South Africa's entire economic growth model, and more time spent on addressing fundamental economic deficiencies within our particular system. First and foremost, the inefficiency of the public sector is untenable. Regulatory issues that impede South Africa's global competitiveness must be taken into account.
The skills mismatch with an educational system, which is not responding to the needs of the South African economy, is also of grave importance. Our university enrolment rate is only 15%, and I am quoting this from the latest edition of the Global Competitive Index. Somebody must take responsibility for this particular state of affairs.
Another factor which impedes economic growth in our country is our onerous labour regime. Parastatals such as Eskom and others are poorly managed and fail to provide adequate power for economic growth. Something else that impedes growth is the poor security situation and the cost of crime and violence. The question that is often asked by members of the public is whether the police are able to provide adequate protection.
During this economic recession, it is of vital importance that we keep our economy competitive. Therefore, the appropriate reciprocal relationship between the private and public sectors must exist. In fact, we must strengthen this particular relationship. Die ANC is reeds vir meer as 15 jaar aan bewind. Word die ontwikkelingstaat nie deur Luthuli-huis as 'n model gebruik om meer beheer oor die ekonomie te verkry nie? Waarom moet beplanning en beheer sentraal geskied? Dit is 'n vraag wat nie net in Suid-Afrika gevra word nie. Dit word regoor die wreld gevra. Die staat speel wel 'n sleutelrol in ekonomiese ontwikkeling. Sy kernfunksie is di van reguleerder, maar die privaatsektor is ook belangrik. Tewens, as ons byvoorbeeld kyk na die private gesondheidsektor, sien ons dat die private gesondheidsektor die openbare gesondheidsektor nodig het. Daar moet 'n simbiotiese verhouding geskied en vice versa. Ons kan nie van die ekonomiese werklikhede wegkom nie.
As dit by ekonomiese ontwikkeling kom, gaan dit oor meer as net woorde. In die 15 jaar van die ANC-bewind, is daar etlike gonswoorde deur die ANC gebruik soos Accelerated and Shared Growth Initiative for South Africa, Asgisa; Reconstruction and Development Programme, RDP; Growth, Employment and Redistribution, Gear, en andere. Die DA s, in wese gaan dit oor die uitbou van 'n ope geleentheidsgedrewe samelewing wat spesiale klem plaas op die ontwikkeling en bemagtiging van al die mense in Suid-Afrika, nie net 'n klein minderheids- of elite groep wat noue politieke en ekonomiese bande met 'n politieke party, naamlik die ANC, het nie. Ek is bevrees dit is die toedrag van sake, of ons dit nou wil glo of nie. (Translation of Afrikaans paragraphs follows.)
[The ANC has been in power for more than 15 years already. Is Luthuli House not using the developmental state as a model to get more control over the economy? Why should planning and control be centralised? This question has not only been asked in South Africa. It has been asked throughout the world.
The state is indeed playing a key role in economic development. Its core function is that of regulator, but the private sector is also important. Besides, when we consider the private health sector, for example, we find that the private health sector needs the public health sector. There has to be a symbiotic relationship, and vice versa. We cannot escape the economic realities.
When it comes to economic development, paying lip-service is not enough. In the 15 years of ANC rule, a number of buzzwords were used by the ANC, for instance, Accelerated and Shared Growth Initiative for South Africa, Asgisa; Reconstruction and Development Programme, RDP; Growth, Employment and Redistribution, Gear, and some other buzzwords. The DA is saying that it is in essence about the development of an open opportunity society with special emphasis on the development and empowerment of all the people of South Africa, not only a small minority or elite group who has close political and economic ties with a political party, namely the ANC. I am afraid this is the state of affairs, whether or not we want to believe it.]
One of the positive outcomes of the Asian developmental state was that the small business sector in Japan and Taiwan grew at a phenomenal pace because an entrepreneurial culture was cultivated. It is tragic that South Africa does not have an entrepreneurial culture and that the ANC government's actions do not promote this. In fact, they run counter to it. Government makes it more difficult for entrepreneurs and small businesses to operate and save due to excessive red tape and a regulatory framework that is not favourable to business creation and sustainable job creation. We can look at the facts.
Instead of building an Asian tiger, the government is creating an African ostrich. I use this metaphor of the African ostrich because it is of vital importance that we face the real economic challenges that pose a threat to our economic wellbeing in a courageous, bold manner and not hide behind a controversial economic model which was used in the 70s and 80s in Asia. Thank you, Mr Chairman. [Time expired.] [Applause.]
Hon Chair, Cope agrees that this is a big question that has to be interrogated soberly by all South Africans. Within this context, Cope notes that our country in the post-apartheid period, in spite of progress made, still has vast pockets of unemployment, poverty, skills deficits and inequalities. Even though the world has opened up to a democratic South Africa, we have not developed our people adequately and we have not developed sufficiently as an export-driven economy.
We are still too reliant on our mineral resources. How will our economy survive if demand for gold, platinum, steel and coal were to decline sharply? This is not idle speculation. Even as I speak, the demand for manganese, ferrotungsten, ferroalloys and ferrochrome has been severely depressed for many months now. Our challenge, clearly, is not to be solely and entirely dependent on mining for our export income. This would be a huge mistake. We need to invest in manufacturing.
It is alarming to note that it is the domestic demand that is driving two thirds of the real growth of our domestic production. We in South Africa have not learnt lessons from the Asians who fostered domestic savings to fund their industrial growth. We in South Africa have negligible savings, and this stifles credit creation and investment in new projects.
In our country, growth is more dependent on consumption than it is on investment. According to the World Bank, investments cannot contribute only 25% to the growth of GDP, believe it or not. This is alarming as it is unsustainable. We urge that government address this glaring failure urgently. We urge that government take steps to support vigorously the creation of a culture of savings on the part of our citizens. The previous Minister of Finance was persistent in urging people to save. We most certainly need some extraordinary measures in this regard. Despite all the above challenges, we have to save as South Africans. We have to save.
While we are on the topic of the Asian tigers, as espoused by the hon Fubbs, we also need to make the point that our trade needs to focus on Bric countries for expansion and growth - that is Brazil, Russia, India and China. This would be in line with what Doreen Massey terms "Power Geometry". Yes, we need to reconfigure our trading patterns.
Another enormous challenge is that of price-fixing. Cartels continue to operate in our country, keeping prices artificially high through collusion. Cartels have operated in the food industry, in bakeries, in energy, in the construction industry, with regard to plastic pipes and in many other areas. As a result of cartels, price-fixing is endemic. Price-fixing is a major challenge to our economy and a major inhibitor of economic growth.
This is a challenge that has to be met head-on, and the government has actually failed us in this regard. It has to be met on every front. It must be defeated because it locks out or marginalises smaller businesses. Producers of steel in South Africa, for example, have been charging import parity prices to South African companies for the last seven years. This is so utterly wrong. Iron ore is locally mined and our country is a net exporter of steel. Yet, manufacturing is constrained through such collusion. As a result, we import stainless pots from Korea and elsewhere rather than making them here. In essence, we are exporting jobs. This is what we are doing, and we cannot tolerate this. We have to change it. The South African government has to uproot this practice.
The next challenge to our economy and our government is that of labour productivity. We don't fare very well internationally in this regard. Lack of skills, long journeys to and from work for workers, inadequate nutrition and limitations in education and training have all taken their toll on productivity. If we were internationally competitive in this regard, our GDP, according to the World Bank, could have grown by at least 3%. That would be a staggering growth increase.
Another very obvious challenge comes from the cost of capital. An industrialist in the UK or in the USA could probably borrow money for investment at four times less the price than what it is in our country. In this regard, we suggest that government make available approximately R10 billion to the banking sector at approximately 2% for lending to investors and farmers at half the market rate. Stringent conditions will apply to ensure that funds are used for purposes of new investment and nothing else. It is better to use taxpayer money to help out than to bail out companies. Viable companies and small, medium and micro enterprises - SMMEs - should have the propensity to borrow, and banks should have the propensity to lend. By ring-fencing a special pool of investment capital at half the market cost, investments will be stimulated. Economic analysis has shown that borrowing for investment purposes is sensitive to real interest rates. We are therefore proposing a two-tiered lending approach.
Finally, we need to meet the great challenge of our political and economic role in Africa. We face what is called the "hegemon's dilemma": small though we are in the world, we are very big on the continent. We must seek integration and multilateral co-operation and not domination on the continent. What we need is the fostering of a national consensus through partnerships and solidarity. We need a new way and a new agenda for change. I thank you. [Time expired.] [Applause.]
Hon Chairperson, firstly, I would like to thank hon Fubbs for the motion. I think this is a very interesting debate, one that we have had before in the third Parliament but one in terms of which the issues cannot be overemphasised. I am also glad that the hon Fubbs emphasised social development and not only pie-in-the-sky things that one normally talks - Asia, Japan and the rest of the world.
However, I want to submit that the challenges that are posed by the global economic crisis and the developmental state are challenges that we accept. We know what happened globally; we know what happened in the US; and we know that that has had an impact on the South African economy, to a lesser extent because we had a very good banking system.
However, what I want to submit to the hon Fubbs through you, Chair, is that it is not only external factors that are going to cause us not to meet this "Manna from Heaven" developmental state that we want, but also internal factors and internal weaknesses in the way government implements a number of programmes that are put on paper. I will refer to this a little later on. The situation in South Africa is no different to that in any other part of the world.
As I said, while we might not have felt the adverse effects of this crisis as harshly as other countries did, there is no doubt that it has impacted negatively on us. Hundreds of thousands of jobs have been lost, while hardly any are being created; people are losing their houses and assets; and more people will be pushed into poverty.
However, we have just had the hon Sogoni present his report of the Standing Committee on Appropriations which this House accepted, and we saw how departments were not spending money. It has been reported by Treasury that Gauteng and KwaZulu-Natal have already blown their budgets to the tune of R5,8 billion - R5,8 billion! They have run up R260 million a year on cellphone calls, travel and accommodation bills, costing our taxpayers money. Regarding education, Dr Brown from the Treasury said that South Africa spends a lot on education, but the outcomes don't reflect it.
Closer monitoring would allow for early interventions to deal with these challenges. We are also told that overspending worries the Treasury. It hits the provinces' bank balances and can slow down service delivery for years ahead, especially as the slowdown on the economy, owing to the global financial crisis, has put pressure on the provincial income. When looking at investment, what South Africans need is a return on their investments. Taxpayer money of R767 billion needs to be spent wisely. All of us in this house, in government and in the executive have to ask ourselves if we are doing enough to enough value for money. The simple answer to that is no.
We welcome the monitoring and the evaluation, but until and unless we sort out internal weaknesses in the way in which our government operates, we are not going to have this developmental state we talk about. However, I think we need to look for a seed of a hidden opportunity in every instance of adversity. And that seed for us is to sharpen our pencils and be alive to the global economic crisis ... [Time expired.] [Applause.]
Hon Chairperson, Deputy Minister and colleagues, let me start by dedicating this speech to my mother who is turning 76 years old today. [Applause.] I want to say to her, Mom, I thank you. I really thank God for giving me a mom of your calibre, and may God bless you with many more years to come.
Thank you very much, hon Chairperson, for the opportunity afforded me to discuss this very important topic. The ANC sees a successful developmental state as that which has a strong planning capacity and the capacity to intervene in strategic areas, meaning that it is a state that acts as an effective system of continual co-ordination, monitoring and evaluation of the implementation of government programmes and projects.
The ANC further understands that in order to achieve this, we need to have a public service that has the capacity to execute the tasks with which it has been entrusted and that does so through placing the right personnel in the correct positions. I think we are the first people, hon Singh, to acknowledge that we need the right personnel in the right positions and, where this is not the case, corrective measures need to be implemented through training and redeployment.
Yes, this is a problem, but it is important not to find fault, and rather, as a good citizen, to say that these are challenges - as you have been saying - and this is where we think we will be able to go. This particular topic is very important, because we have created a platform in terms of which people can assist in responding to the very same challenges we are facing today. You have that opportunity then to assist because, as the current government, we understand that we are servants of the people and we open our ears, not just to listen, but with the understanding that you are here to contribute. Whatever you are contributing is very important, especially if that contribution is towards reshaping our country, because nobody has the remedy for the challenges that we have.
The global economic crisis has increased the demand on the state to speed up its pace of delivery, while, at the same time, posing the challenge of increasing the pace of our response to the economic crisis. To me, it challenges us to transform our attitudes on how we do our business, meaning that we have to apply a professional ethos and values, while not running the risk of moving towards stagnation and chaos.
Previous speakers mentioned how countries like China have succeeded, but they also cautioned that when we do transformation or put reform systems in place, we must guard against being very hasty, because if we are too hasty, we may face chaos in the process. But, if we are too slow, we may face stagnation.
Good governance demands a very alert public service that is responsive to the needs of our people, especially the rural poor. The public service needs to respond in an equitable and transparent manner. One should remember that the state must be able to intervene as and when needed. For it to respond, it needs a quality, professional, committed and responsive public service. What is also important is for there to be a well- designed set of institutions and systems for budget formulation and execution. I agree with Mr Singh there, because that will help to define how public funds are raised, allocated and managed. To me these are quite serious prerequisites for financial prudency.
I want to join the speakers who always argue that our challenge lies in an incapacity to co-ordinate, co-operate, monitor and evaluate our brilliant and responsive programmes, policies and legislation that are already in place. If we are to see more of an impact, we have to refocus our energies towards results-based budgeting and performance budgeting which the Public Finance Management Act was geared up to achieve.
The only problem with the Act is that it is too compliance-based and it also promotes budgeting that directs planning rather than vice versa. Although it promotes transparency and timeous reporting, it lacks the mechanisms to foster this. Moreover, the authority to budget and spend lies with the accounting officer, who is an official and is not forced to consult, even though he could consult an executing authority regarding allocations to priority programmes and projects.
We also need to remember that timelines are not entirely flexible within the Public Finance Management Act regulations. If executing authorities are not vigilant, they find themselves rubber-stamping what officials have already concluded. This then concretises the criticism that planning follows budgeting. We have to turn the situation around in a speedy manner in order to avoid the repetitive cycle so that we can avoid the same occurrences in the future, especially starting from the next financial year.
I want to put forward a case study that was done in Mpumalanga around early childhood development, which we all know is a national priority - and we all know that many people refer to the lack of early childhood development as an impediment to development in our rural areas.
This illustrates the dangers related to the lack of co-ordination and synergy within our programmes. In Mpumalanga, for instance, we have a population of more than 3,6 million people and, of that population, 7% are children between the ages of 0 and 4. About 20% of those children are orphans.
Based on statistics from 2006, more than 2% live in abject poverty, more than 3 000 are in pre-Grade R, and 27% are in Grade R. They are served by 268 early childhood development centres, of which 220 are community based. They are subsidised at R4,40 per child in the rural and previously disadvantaged areas, while the private ones are subsidised at R11,00 per learner, per month. Thank you. [Time expired.] [Applause.]
Chairperson, this global economic crisis has brutally exposed the shallowness of our economy. We have clearly failed over the past 15 years to diversify sufficiently our industrial base from that of a minerals-energy complex.
We have also undergone a period of deindustrialisation in which we have become overly reliant on our commodity exports, and have in turn imported most of our manufactured goods. This has led to our entering into this economic crisis with the vulnerable position of a current account deficit. It is now time for us to be bold in our development planning and put measures in place that can truly build up an industrial base that caters both to local needs and positions us as a leader in the emerging fields, particularly those related to the green economy. I thank you.
Chairperson, the global economic crisis is one year old - if one measures from the time it became public when several major American financial institutions were on the brink of collapse owing to dubious credit practices. Since that time the effects triggered by that financial crisis have reverberated around the world and have even been felt in countries, like our own, where stringent financial and credit regulations are in place.
We do not dispute that the global economy has had an effect on us, but we should not lose sight of two important factors. Firstly, we knew about this crisis from the outset and that government was in a position to devise adequate responses.
Secondly, external pressures do not negate the constitutional obligations of government, nor do they nullify the promises upon which the ruling party won its electoral mandate. It is exactly this context that should have made the government use each cent wisely and stop turning government functions into extravagant and costly pageants that are barely disguised political rallies for the ruling party. Thank you.
Hon Chairperson, hon members, the conception of a developmental state can be traced back to the Freedom Charter, to the Reconstruction and Development Programme and to the Constitution of the Republic of South Africa - and, most recently, to the ANC's 52nd conference resolutions and the ANC 2009 election manifesto. Therefore, there is an explicit commitment by the ANC government to the creation of a democratic developmental state. This is based on the belief in the ANC that government cannot overcome the current challenges facing our country outside of the developmental state. These challenges, worsened by the global economic crisis, are fighting poverty, fighting inequality and fighting unemployment, as well as delivering services to our people.
We firmly believe that it is through direct state intervention that the economy will become globally competitive, that it will increase investments, that it will achieve high growth rates and create decent employment.
Eminyakeni eyishumi nanhlanu yombuso wentandoyeningi, kunobufakazi obungephikiswe bokuthi uhulumeni kaKhongolose uqale ngempumelelo ukwakha iNingizimu Afrika ethuthukayo. Lokhu kubonakala ngezibalo zenhlolovo ezithi phakathi konyaka ka-1995 nonyaka ka-2002 umnotho wakha imisebenzi eyisigidi eziyi-1,7 kanti phakathi kuka-2002 ukuya ku-2006 kwakhiwe imisebenzi eyisigidi-eziyi-1,2 ngaphezu kwalokhu sikhuluma nje bevile ezigidini eziyishumi nambili abantu abathola izibonelelo. Ngisho phela impesheni yobudala,yokugula kanye nemali yokondla izingane.
Kanti okunye okuyizinkomba zentuthuko kuhulumeni zalo hulumeni kaKhongolose ukuthi zevile ezigidini ezintathu izindlu asezakhelwe abantu bakithi kanti nezibalo zezingane ezifundayo zenyuke kakhulu kuleminyaka eyishumi nanhlanu yombuso wentandoyeningi. (Translation of isiZulu paragraphs follows.)
[In the fifteen years of democracy there is undeniable evidence that the ANC government started with great success in building a developing South Africa. This is proved by the statistics of a survey which shows that between 1995 and 2002 the economy created 1,7 million jobs, whereas between 2002 and 2006, 1,2 million jobs were created, over and above the fact that there are more than 12 million people who receive grants. By this I mean pension for the elderly people, the disability grant and the child support grant.
Notwithstanding that some of the indicators that the ANC government has built are that there are more than 3 million houses that were built for our people, and that the number of children attending schools has increased tremendously in the 15 years of democracy.]
Recent studies show that relative successes of the democratic developmental state have brought about a significant improvement in the quality of life of most South Africans. Using the lower poverty line of R174 per person per month and the upper poverty line of R322 per person per month, both relative and absolute poverty on both the upper and lower poverty lines declined by between 5% and 8% between 1995 and 2008.
Abasebenzi abangaphezulu kwezinkulungwane ezingamashumi amane sebelahlekelwe yimisebenzi lokhu kwaqala loluhlevane lokwehla komnotho emhlabeni jikelele.
Amazinga okukhiqiza nokudayisa kwezimpahla emazweni angaphandle ngokunjalo kwehlile kakhulu. Kunezibalo ezikhishwe ngonyaka odlule ezikhomba ukuthi abantu baseNingizimu Afrika banezikweletu ezibalelwa ezigidigidini eziphindwe kathathu eziyi-1,4 zamarandi kodwa uma sisonke thina esisebenzayo sihola izigidigidi eziphindwe kathathu eziyi-1,1 zamarandi. Lokho kukhomba ukuthi akuqalanga namhlanje ukuthi thina bantu baseNingizimu Afrika sizwele lesi simo esikhona njengabo bonke abantu emhlabeni wonke jikelele.
Yingakho ke uhulumeni kaKhongolose oholwa nguNxamalala, uMongameli uJacob Zuma ufake uhlelo lwentuthuko oluzodla izigidigidi eziyi-787. Okuthokozisayo ukuthi phezu kobunzima izwe elibhekene nabo lokwehla kwezinga lokuqoqwa kwezimali zentela ngezigidigidi ezingama-80 zamarandi. Uhulumeni kaKhongolose usazibophezele kuloluhlelo lwentuthuko.
Ukwakhiwa kwemigwaqo, amabhuloho, izikole, ukwakhiwa nokuthuthukisa kwamachweba izikhumulo zezindiza kanye nojantshi bezitimela sekwakhe amathuba amaningi emisebenzi futhi kuzokhuthaza ukuthuthuka komkhiqizo, ukutshalwa kwezimali ezimbonini nokwakhiwa kwezimboni ezintsha. Sekuzoba lula nokuthuthwa komkhiqizo ngaphakathi ezweni kanye nokuthuthwa kwezimpahla ezidayiswayo emazweni angaphandle. (Translation of isiZulu paragraphs follows.)
[Since the recession started, over 40 000 workers have lost their jobs.
The levels of producing and exporting goods have also dropped tremendously. Statistics published last year show that the people of South Africa have debt which amounts to approximately 1.4 trillion rand, but all the workers are collectively paid R1, 1 trillion. This is a clear indication that we as South Africans, didn't start now to feel the crunch as compared to other people around the world.
That is why the ANC government, led by President Jacob Zuma, uNxamalala, launched a programme that will cost R787 billion. The good news though is that despite the difficulty we are facing with regard to a deficit in tax collection amounting to R80 billion, the ANC government is still committed to this development programme.
The building of roads, bridges, schools, harbours, airports and railway lines has led to the creation of many job opportunities and it will also stimulate the improvement of products, investment in the industries and the building of new industries. It will be easy to transport products around the country as well as the transportation of exports.]
The 2010 Fifa World Cup could not have come at a better time. The construction of football stadiums has created job opportunities that go beyond the 2010 World Cup. For instance, the Moses Mabhida Stadium in Ethekwini is going to generate economic, sports and recreational activities well beyond 2010.
It has been suggested that the agricultural industry employs about 70% of the active labour force. There is therefore also a need to focus our attention on the agricultural sector, including the development of the agro- processing industry. Indeed, the Minister of Agriculture, Forestry and Fisheries confirms that there is serious work in progress in this regard. Special attention must be given to the emerging black farmers as well.
The ANC government is committed to the mobilisation of small businesses and co-operatives in order to bring the majority of our people into the mainstream economy. We will ensure that there is financial support, mentoring and monitoring of small businesses and co-operatives. We will also ensure that those co-operatives with the potential to grow and venture into large business operations are exposed to the export market. This is where the Department of Trade and Industry agencies such as Khula, the National Empowerment Fund, the Industrial Development Corporation, the SA Microfinance Apex Fund, the Small Enterprise Development Agency, the Enterprise Organisation and others must play a decisive role. Where there are weaknesses, Parliament will intervene effectively.
We must pursue the transformation of informal economic activities and integrate these into the formal economy. The development of the Warwick Avenue in Ethekwini is a case in point.
Economists have been suggesting that the world should recover from the current recession in the next 18 months. We must be ready to take full advantage of that. The democratic developmental state must be ready and determined to intervene and influence the direction and pace of economic development, instead of abandoning this task to the market forces whose god is profit and their church the market. I thank you. [Time expired.] [Applause.]
Chairperson, the global financial crisis continues to have an impact on economies around the world. Budget deficits have soared to unprecedented heights as tax revenue has fallen sharply. Employment, as we know, is falling in almost every country, with South Africa not being an exception. Clearly, this crisis presents a huge challenge to the developmental state, requiring government intervention as far as possible.
In this regard, the ACDP supports the framework agreement between government, labour and business and the measures that were announced recently. It must be borne in mind that such co-operation was the essence of the success of the Asian tigers. So, we look forward to further co- operation in this regard.
We can also appreciate the counter-cyclical approach adopted by government, as well as the foresight of having the R787 billion infrastructure programme that was announced way before this crisis hit us.
Clearly, the most urgent challenge relates to protecting jobs. Yesterday the Minister of Labour provided details of the R2,45 billion training lay- off scheme. We would like to see that implemented far quicker. It is interesting to note that Brazil has created almost 500 000 jobs in this climate whilst it has come out of recession in a six-month period. We know that this is a target that we are also looking at. So, it might help to look. And, whilst we appreciate that their economy is much stronger than ours, we could learn lessons there as well.
The best weapon that government has is the budget surplus that we built up in the boom years, which now allows for our deficit to be financed and for government spending to continue. However, the real challenge will be to spend the limited funds better, to do more and better without additional resources.
For us to emerge stronger from the recession, we need to focus on microeconomic issues, such as providing cheaper bandwidth, reliable electricity and uncongested ports. We also agree that we need to address inefficiency in the public sector, regulatory issues that impede our global competitiveness, the skills shortage and - let us not forget - business collusion. This is how the challenges posed by the current global economic crisis can be met. Thank you very much for this debate, Ms Fubbs.
Hon Chairperson, hon members and our distinguished guests, it is important for us to acknowledge the fact that the economic crisis is not only experienced by South Africa, but by the world at large. This situation is a call on the nation to exercise a high level of patriotism and to reconsider our expectations.
It is equally important to state the causal factors of the situation. There are many factors. A few factors include insufficient capacity and resources to deal with the imbalances or inequalities of the past. What makes this global challenge more difficult to address is the nonrepentance of the majority of the perpetrators.
A developmental state is people-centred and includes other partners such as trade unions, organised labour and business. The word "people" is inclusive of women. This is a factor denied by the ruling party in the Western Cape legislature. This is an example of perpetrators who resist development and the recognition of potential. The ruling party excluded women, but it was men and women who put them in power. The message is that it is only the premier who has the potential. Such an attitude is a hindrance towards a developmental state.
The developmental state, under the leadership of the ANC, is open to criticism, both positive and destructive, hence the institutionalisation of public participation. The Green Paper titled National Strategic Planning of September 2009 talks about gaps in our system. This is self-criticism, acknowledging weaknesses and seeking ways to improve. Our government still faces serious challenges in intergovernmental co- ordination, even though there have been significant advances over the past decade. Interdepartmental and intergovernmental co-ordination and integration should be prioritised in the system of accountability of the executive, the administration and the legislatures. It means that people cannot be held accountable if there is no monitoring and evaluation. We need an agency that authoritatively and forcefully can drive planning, monitoring and evaluation and that can make institutional improvements. We say we need an agency and not consultants. We need a clear mechanism for weighing up options and for making hard and unpopular choices where there are fiscal limitations and policies are contested.
The Green Paper further cites some international experience. This is information we gathered through research and international study tours. Government does this in order to copy best practices and improve on the cost of doing business. Monitoring the short- and long-term plans on a daily basis will automatically identify danger zones on time, thus preventing irreparable damage.
The level of corruption the country is experiencing threatens good governance. The abuse of state resources is also a challenge and a threat to development. Very often we talk about the lack of capacity in government, but the capacity to steal taxpayers' money is amazing. Nothing beats good planning and monitoring. Remember that you cannot monitor what you cannot measure. Therefore, our plans must be realistic and prudent.
Plans are implemented by people, and implementation cannot be effective if employees are in acting positions for a long time - especially in senior positions. An acting position for a long time creates uncertainty and affects one's performance. It also results in premature and uninformed resignations. The global world we are competing with needs consistency not for people to die in positions, but at least a reasonable time of five years in office. It is also not a sin to be in office for more than five years, as long as government does not keep deadwood as it is detrimental to the developmental state. Let us reduce the import of labour and rely on our own capacity. This can only happen if people are trained in skills relevant to the economy.
Some people lament that the ANC has been in government for 15 years and should have responded to all the ills of the past. How does government deliver optimally when it has to clean the mess that was created over 40 years? For instance, social grants must close the gap resulting from discrimination on the basis of race and gender, with the objective being the eradication of poverty. Some information I gathered from the library indicates that the budget for social pensions in 1980 was as follows. I will read exactly what the Minister in 1980 said with pride:
I am glad that I am able once again to announce meaningful concessions to pensioners and other social beneficiaries. Full participants of the proposed concessions are set out in a document which I shall lay upon the table this afternoon. The concessions include an increase in social pensions of R12 per month in the case of whites, which means the pension will increase to R109 per month for whites. The increase for coloureds and Indians amounts to R8 per month and for blacks R5,50 per month.
I can quote more. This happened some time ago, but its impact is still felt as it is still perpetuated, albeit subtly.
However, let us ensure that the developmental state is as inclusive as possible. Let us follow the footsteps of our President and not correct a wrong with a wrong. The ANC government says: "each according to need". We are also consistent with the Freedom Charter - that is, South Africa belongs to all who live in it, black and white. We therefore have an obligation to develop South Africa so as to sustain jobs and all other achievements.
Modulasetulo ka bokgutshwanyane re a tseba hore ke kgomo ya moshate, o a e hapa, o molato, o a e tlohela, o molato. Nka etsa mohlala ka botlokotsebe bona boo re llang ka bona kamehla le matsatsi, ebile re tshosetswa hore ha e le 2010 re keke ra bona ketsahalo ya teng. Empa ha letona Commissioner a re ya bolayang ka tjhaka o tla bolawa ka tjhaka, e le ha a lwantsha dikebekwa tse hlaselang batho ba se nang molato ba sa kgoneng ho ka itshireletsa, ke mona moo ho thweng o tswile taolong, o hloka boikarabelo. Ha a sa etse jwalo le teng ho thwe ke moetapele ya se nang boikarabelo.
Ke yona kgomo ya moshate, empa rona re re ha re bontsheng boetapele. Re lwanetse Afrika Borwa, mme ba sa ntsaneng ba na le boipelaetso hore ha re pusong, re tla ba bontsha. Re tla tswela pele le ka dikgetho tse tlang, re nne re buse ka tsela e jwalo. Mme re re ho ba ileng ba bona boetapele Afrika Borwa, pele-a-pele. (Translation of Sesotho paragraphs follows.)
[Chairperson, in short, we know that we are faced with a huge dilemma, where we are damned if we do and we are damned if we don't. I can make an example with crime. We complain about it every day, sometimes we are even threatened that we will not be able to see the 2010 event because of crime. But when the Commissioner says that the police must shoot to kill when fighting criminals who attack innocent people who cannot protect themselves, he is regarded as being out of control and irresponsible. If he does not do that he is also regarded as an irresponsible leader.
This is the dilemma I am talking about. But we are saying that we have to show leadership. We fought for South Africa, and those who still doubt that we are in government; we will show them. We will prove them wrong by winning the upcoming elections and continue to govern. To those who have been in leadership in South Africa, well done.]
Chair, it is rather strange that this kind of debate about the role of the state is now being internationally recognised. In the Financial Times of a week ago, the Prime Minister of France had the following to say:
The crisis has modified Europe's ideological landscape ... even the British government, once firm proponents of liberal, free-market economic policies, had accepted that opening up markets was not sufficient and that more state intervention and investment was now needed.
You can see from that comment that it is not only in South Africa that our government ... [Interjections.] Somebody here is "Baracking" me. I will come back to you. Just a little louder, please. So, what we are saying is this: while the DA and the hecklers seem to think that the ANC has embarked on some reckless procedure, reckless policy ... [Interjections.] Did you hear that? That's what they think. But you see, the Prime Minister of France doesn't think that. [Interjections.] On the contrary, he thinks that the model that you espouse - let me read it again: "... free-market economic policies and the opening up of markets is not sufficient and that more state intervention and investment was now needed". More state intervention is needed. [Interjections.] Chair, I will need more time if these fellows are going to waste my time.
Order, hon members, please! Could you let the hon member continue.
Could you please fix the clock, Chair, because this is wasting my time. [Laughter.] Nevertheless, I am quite entertained. [Interjections.]
Furthermore, the commentator in the Financial Times says that strategic partnerships between government and big business in Europe are now being blamed by many economists for stifling growth, and for stifling small and medium-sized enterprises. In South Africa, we have huge conglomerates and monopolised industry, and what the DA wants us to do, precisely, is to create a partnership between government and big business, which will stifle the possibility of small growth and small enterprises. [Interjections.]
So the point is ... Yes, okay. Fine. Now I hear you. I think that this debate has shown quite considerable consensus in the House around state intervention, around the important role of the state. I've heard the debate. I have listened to all you guys and I can see that there is a certain amount of agreement that in South Africa we need a state which is going to intervene and which must exercise a considerable amount of influence on the economy. But what I haven't seen is a clear focus on where we are going. Now my own view - and I'm trying very hard to get to the heart of the matter - is the fact that in South Africa a large part of our population is not engaged in productive work. You can talk about capital and savings and investment, about technology, about skills - all those things are important. But, really, the heart of the matter - and I think this debate is intended to get to the heart of the matter; let us not engage in frivolous side issues - is that in this country of ours, a large proportion of the population is not engaged in productive work. And if you make comparisons ...
Why?
Okay, I'll come to the why. You know the why; you were members of all sorts of funny parties, which were responsible for the why. [Interjections.] [Applause.] So, we know. We know. So, it's okay. I'll shout if you want me to. [Interjections.] But that is the heart of the matter: that a large proportion of our population is not engaged in production work, and if people are not engaged in productive work - I'll have to yell - there are all kinds of social consequences. You will find that there is inequality ... [Interjections.]
Hon members, please! Order! Order, please!
Chair, I will have to sit down if these guys continue like this.
Mr Chairman, we would really appreciate it if Mr Turok sat down. [Laughter.] [Applause.]
You know, the way to dodge debate ... You know, these people always say we must debate, that "the ANC does not want to debate", but when we debate, they heckle, they yell. I really will withdraw if you wish me to. But, you see, if I withdraw, I will go on the SABC tonight and I will say exactly what I want to say now. [Interjections.] All right. The key problem ... [Interjections.]
Order, please! Order!
Chair, I have to cut my speech short. Could you give me some more time?
Hon Turok, just continue.
So that's the central issue. The central issue, whatever party you belong to, is that a large number of our people are not engaged in productive work and we need a developmental state to cure that, because your private sector will not do it. You see, they have realised in Europe that you cannot depend on the private sector to remedy the kind of structural problem that we have, and so we need a developmental state.
People have been talking about South Korea, Taiwan, Japan and so on. I was very fortunate a year or two ago to interview Prof Ha-Joon Chang, who is a South Korean economist at Cambridge University. I asked him, what exactly happened in South Korea? We get the wrong impression by reading newspapers and so on about what happened in South Korea, and it is highly irrelevant to us. He said the key to South Korea's success was the development of productive capabilities by investment in machines, education, infrastructure, research and development. That was the key. He said that as far as we are concerned - now listen carefully - we must build more domestic linkages internally. We must ensure that there were tens of thousands of subcontractors, people who work in small enterprises, people who grow their enterprises by relying on procurement from large firms - which is what they did in South Korea - small enterprises that depend on procurement from the large firms and from the state, and that we must constantly raise the proportion of parts and components that are bought from local producers and not imported.
Indeed, in South Korea there were rules and laws which said that a company, including a multinational company, could not be allowed to operate and import goods which could be manufactured locally. So the emphasis in South Korea was not just on the big chaebols [conglomerates] and the big motorcar manufacturers by foreign firms. The emphasis was actually on building small capacity by small people - in this country, that would mean black people in the main - in order to ensure that you built the economy from below.
So the key to South Africa's problem of the large number of people who are not in productive work is not welfare; it is not your view about the state not intervening and so on.
On the contrary, what the state must do in South Africa, increasingly, is to raise the capabilities of domestic firms by training, by promoting opportunities, by ensuring that state agencies buy South African and not overseas goods, and that the private sector too is regulated in that what it uses are primarily South African resources, produced by South Africans that are trained in South Africa - and that there is not export-oriented growth, which, I'm afraid, we have been following for some time.
Let me end by saying this: South Africa is a very rich country. It is rich in resources; it has huge amounts of mineral resources and natural resources of all kinds; and huge human potential resources. Those human potential resources have not been put to work and that is why I return to the main point of this debate.
The main point is not about big states, small states, the private sector or not the private sector, but it is about the large proportion of South African people that are not engaged in productive work. And your policies will never make it happen, but we will, because we are the ANC. [Applause.]
Chairperson, this debate is the manifestation of the ANC fantasising about the idea of a developmental state as a rescue formula for the failure in living up to the promises made, and for dealing with the global economic challenges.
In following up on my colleague's statement, this fantasising personifies the African ostrich with its head in the sand and purposefully ignoring the realities, in contrast to that of the Asian Tigers that represent the classic example of the successful Asian developmental state models. One of the reasons why the Asian developmental state models were successful was the support of especially the United States of America as a major export destination of manufactured goods. America offered these countries preferential access to its markets on favourable terms without expecting much in return.
From all evidence documented, it is clear that a classic developmental state is focused on one cohesive objective, which is to achieve the highest economic growth rate with all other elements as less important.
The concept of a developmental state is much more than just the involvement of the state in economic development. It certainly implies a specific institutional dispensation in which the role of society, in particular the private sector, and the rule of law should be non-negotiable. Furthermore, this implies a national consensus on the economic objectives, which must include the willingness to make substantial sacrifices in achieving these objectives.
How can this be related to South Africa's realities and the challenges for real economic development? Since 1994, we have heard of political jargon and super-rescue strategies like RDP, Gear and Asgisa. There was no real benefit for the millions of marginalised citizens. These, quite evidently, were failures. Are the new buzzwords replacing these outdated and failed concepts now called the "developmental state"? Without real developmental characteristics, this is more an ideology than a serious economic development policy. Is this not a method of increased centralisation of power, influence and control? We need less dependency on the state, more real and sustainable jobs, and less trade restrictions as basic requirements for a real economic development revolution where more can share in the wealth on offer in South Africa. We also need to support and encourage an education regime that can deliver globally competitive knowledge and skills.
Die vraag moet gevra word of Suid-Afrika 'n ontwikkelingstaat is en kan wees, gegrond op die erkende modelle of variasies daarvan. Suid-Afrika het sekerlik 'n paar voorbeelde van sulke elemente, byvoorbeeld die ontwikkelingsprogram in die motorbedryf, die strewe na die verryking van minerale, die druk op die finansile sektor om meer risiko's te neem en die poging om 'n nywerheidsbeleid te implementeer. Dit alleen kan nie van Suid- Afrika 'n ontwikkelingstaat maak nie.
Een van die noodsaaklike elemente, volgens die ekonoom Jac Loubser, waaraan Suid-Afrika moet voldoen, sluit in 'n klein, maar elite meritokratiese burokrasie wat die staat se nywerheidsbeleid moet formuleer en uitvoer, waarvoor die beste talent in die land gewerf moet word. Oral is kundigheid en vaardigheid 'n voorvereiste vir volhoubare ekonomiese ontwikkeling. Wat nodig is, is 'n politieke bestel wat aan die burokrasie genoeg ruimte verskaf om effektief op te tree met die behoud van die noodsaaklike vereistes van die regstaat.
Wat nie nodig is nie, is die regering se gereelde ingryping in die markprosesse deur regulasies, eerder as regstreekse deelname en steun aan die privaatsektor, wat die indruk laat dat daar nie 'n simbiotiese verhouding bestaan tussen die staat en die privaatsektor nie. Die regering se rol moet ondersteunend aan markkragte en kompetisie wees en nie ter markvervanging nie. Met ander woorde, die regering moenie die markkragte en -tendense probeer manipuleer nie, maar dit eerder navolg.
Noodsaaklik is 'n leidinggewende organisasie wat so 'n beleid moet dryf, soortgelyk aan die Japannese MITI. Twyfel bestaan of die Departement van Handel en Nywerheid in sy huidige formaat strategies geposisioneer en toegerus is om so 'n rol effektief te kan vervul.
In die globale handelsomgewing van die Wreld-handelsorganisasie sal dit onwaarskynlik wees dat ons regering beskerming teen buitelandse mededinging sal kan bied, asook dat ons uitvoersubsidies sal kan gebruik om 'n uitvoerbedryf te hervestig. In die huidige ekonomiese klimaat kan dit in elk geval nie deur die fiskus bekostig word nie, en is dit bekend dat Suid- Afrika 'n ernstige tekort aan vaardighede en kundighede het. Die vrye beweging van kapitaal oor landsgrense en ons afhanklikheid van buitelandse beleggings beperk ook die beweegruimte van ons beleidmakers.
Soos ons weet, het Suid-Afrika nie 'n natuurlike afsetgebied vir sy vervaardigde goedere nie. Vir baie lande en organisasies is Suid-Afrika ook nie meer die alleenpoort tot Afrika nie, en ook is ons nie meer die Big Brother en redder vir baie Afrikalande nie. Die huidige dilemma en verleentheid met die ekonomiese vennootskapsooreenkomste wat die bestaan van die Suider-Afrikaanse Doeane-unie bedreig, is maar een so 'n simptoom wat ons verlies aan kompeterende voordele in die globale markomgewing verteenwoordig. Suid-Afrika het eerder 'n herverdelende staat geword met die fokus op sy definisie van die transformasie van die ekonomie in die samelewing en die oorregulering van die handelsomgewing om spesifieke uitkomste te bewerkstellig. Met die huidige resessie het ons sterk beleid- en aksieplanne nodig wat 'n nywerheidsrevolusie kan ontketen om buitelandse investerings te lok, om volhoubare permanente werk- en kompeterende uitvoergeleenthede te skep. (Translation of Afrikaans paragraphs follows.)
[The question should be posed whether South Africa is or can be a developmental state, based on recognised models or variations thereof. South Africa certainly displays a few examples of such elements, for example the developmental programme for the motor industry, mineral enrichment endeavours, the pressure on the financial sector to take more risks, and the attempt to implement an industrial policy. This alone cannot make South Africa a developmental state.
According to the economist Jac Loubser, one of the essential elements to which South Africa needs to conform is a small but elite meritocratic bureaucracy that should formulate and implement the state's industrial policy, which requires the recruitment of the best talent in the country. Everywhere expertise and skill are prerequisites for sustainable economic development. What is required is a political system that leaves the bureaucracy enough room to operate effectively whilst maintaining the essential requirements of the constitutional state.
What is not required is government's constant intervention in market processes by means of regulations, rather than direct participation and support to the private sector, which creates the impression that there is no symbiotic relationship between the state and the private sector. Government's role should be supportive of market forces and competition and should not be to replace the market. In other words, the government should not try to manipulate market forces and market tendencies but should rather pursue it.
What is essential is an organisation that is able to lead and drive such a policy, similar to the Japanese MITI. It is doubtful whether the Department of Trade and Industry, in its present format, is strategically positioned and equipped to fulfil such a role effectively.
In the global trade environment of the World Trade Organisation, our government will probably not be able to offer protection against foreign competition, and it is unlikely that we will be able to use export subsidies to re-establish the export business. In any case, in the present economic climate it is something that the fiscus cannot afford, and it is known that South Africa has a serious shortage of skills and expertise. The free movement of capital across borders and our dependency on foreign investments curtail our policy makers' room to manoeuvre.
As we know, South Africa does not have a natural outlet for its manufactured products. For many countries and organisations South Africa is also no longer the sole gateway to Africa, and we are also no longer the Big Brother and saviour of many African countries. The current dilemma and embarrassment regarding the economic partnership agreements that threaten the existence of the Southern African Customs Union, is but one such symptom illustrating our loss of benefits to compete globally in the market environment.
Instead, South Africa has become a state of redistribution, focusing on its definition of economic transformation in the society, and the overregulation of the trade environment to attain specific outcomes. Regarding the current recession, we require strong policy and action plans which can unleash an industrial revolution in order to attract foreign investments, and to create sustainable permanent job and competitive export opportunities.]
It would thus be misleading to refer to South Africa as a developmental state. Government should rather question the role they are to play in support of our economy and its unique circumstances to weather the global economic storm without ideological prejudice and with lots of pragmatism. The answer for the African ostrich is to pull its head out of the sand and to transform it into a goal-orientated, strong and courageous African eagle which embraces the principles of an open-opportunity society for all. I thank you. [Applause.]
Hon Speaker, I must say I never thought the day would come when I would agree with the International Monetary Fund, the IMF, or the World Bank, but the day has come. I was quite alarmed to hear that the hon Marais - and I have the greatest respect for him in the committee and so on - thought the Asian Tigers had made a great success of things as developmental states, and I don't know what else.
In fact, the IMF, the World Bank and the rest of them said that the reason why the Asian Tigers had the financial collapse was precisely because three critical things were lacking among many others. These three things were: a sound financial management system; good governance, which is entirely absent and dependent upon an elite bureaucracy which actually wrote their policies; and a democracy which had no relationship whatsoever with its civil society other than, of course, trampling them underfoot.
This is not me talking. Read the IMF reports of the time; read the World Bank; read any respected journal outside this country. [Applause.]
I want to tell you that right now you must read the papers, the press, the media. Listen. They are saying that the freedoms and rights the developed states removed from the people and gave to the markets have been seen as an error of judgment. And now in countries like Britain, America and the United States, they are busy desperately trying to reclaim these freedoms from an irresponsible market economy.
For once in my life I have agreed with the IMF - I don't know when it will be again, but I understand they are also undergoing a democratic change. But I do want to say one thing: there have been a number of valuable inputs. Even in the hon Marais' own input, one could say there were some gems here and there. [Laughter.] So, let us not throw everything out. I am sorry the hon Narend Singh is not here, because a lot of what he had to say one had to agree with. It's just a pity it became a little parochial in the end.
I want to end off by mentioning one thing. It is something, perhaps, that I didn't make very clear - and, of course, I should have realised this. It is that so much is seen as buzzwords, this, that and the next thing. Indeed, you are quite right. But, I don't think anyone in this House would say "RDP" is a buzzword. Maybe we should stop saying "RDP" and call it by its proper name. We all agree with the principles and concepts of the Freedom Charter.
I was looking into Gandhi when I looked into this. He said that politicians should be aware, from wherever they are sitting in this House, of their own integrity and ensure that it doesn't get destroyed in their own ideological fervour.
But to come back to this issue: those two words - RDP and our own Constitution - can hardly be called buzzwords. They are the basis of a developmental state. Thank you. [Applause.]
Debate concluded.