Hon Chair, hon Minister, hon members and fellow South Africans, in January 1917 the troopship SAS Mendi left Cape Town to play her part in World War I, with 802 African men on board. On 21 February, the SAS Mendi sank in thick fog off Plymouth in the United Kingdom. The late S E K Mqhayi, a national poet, said about this event:
Le nqanawe uMendi namhla yendisile Nali igazi lethu lisikhonzisile Ukufa kwawo loo madoda kunomvuzo nomvuka
Their death bears significance and serves as inspiration. We thus need to dedicate this debate to those unsung heroes who died on the SAS Mendi because through their sacrifice they symbolise the unity and internationalisation of Africa so that Africa can speak with one voice, so that African Renaissance can prevail. [Applause.]
Japan's Yoshi Mori contended that Africa constitutes one quarter of the world's population, and the world without a stable Africa will remain unstable.
Minister, I would like to congratulate the Department of International Relations and Co-operation on their unqualified audit and for the high- quality, regular updates to the portfolio committee.
However, if you talk about the current context and situation in South Africa, it is quite complex and challenging. The Reserve Bank has revised the growth focus of 2,7% down to 2,4% and South Africa's trade performance remains low, with exports growing at just 1% in real terms in 2012 against an increase of 7,2% in imports, pushing the deficit in the balance of payments to 6,2% and/or R190 billion. The gross domestic product, GDP, has dropped at the end of the first quarter this year to 0,9%. The Gini coefficient is approaching 0,8. The economy is shedding jobs and creating social turbulence.
This is a dangerous space to be in in the economy of a globalised world. We therefore need to be an active and constructive player in global affairs. The pressing issue here is South Africa's economics, and the diplomacy of economics should therefore prevail and be guided by the philosophy of ubuntu. The central pillars that should underpin our international relations should be the New Growth Path as well as the National Development Plan, NDP. Both South Africa and Africa need growth, and inter-African trade should be developed for the growth and prosperity of both. The international relations and foreign policy operate within two domains, that is, domestic and international. Weak states gradually lose their autonomy and the foreign policy agenda is dictated from outside.
In the context of a declining economy, South Africa is in danger of losing its power to define and set the agenda and engage in meaningful foreign relations on regional integration. The NDP advocates that South Africa should improve collaboration and co-operation through deeper integration and increased trade with its regional trade partners in Africa and the global South in general. The tripartite free trade area that comprises India, Brazil and South Africa should be the priority.
South Africa lies at the tip of the south of Africa and is strategically located between Brazil and India. We have to explore the strategic location of South Africa. With regard to Brics, we have to say that our strategy as a country must be based on quantifiable outcomes of value to South Africa. We need to see accelerated trade amongst the nations of Brics so that we deal with the economic challenges facing our country. It must not be a talk shop for the sake of it.
Our policy must be predictable. Former President Nelson Mandela moved us from a reactive to a proactive foreign policy in 1994. We must say that that bolstered our democratic government and also liberated our country. The hallmarks of the policy were based on human rights, democracy, justice, peaceful coexistence, commitment to Africa, economic development and international co-operation in an interdependent world. Foreign policy was predictable.
During former President Thabo Mbeki's time, government pursued predictable foreign policy in pursuit of a progressive agenda and relied on negotiations, diplomacy and soft power to achieve its goals. As a result, we had a positive trade balance in the year 2003, with R1 billion in imports and R2.8 billion in exports. Currently, South Africa's trade performance is very poor and has pushed the deficit of the balance of payments to 6,2%, as previously indicated. That means our balance of payment deficit is at R190 billion.
On diplomatic and economic stagnation, the ruling party has actually, in its document to Mangaung as well as in the international relations White Paper, reverted to the pre-1994 period, which focused on anti-imperialism and anticolonialism. This focus is misplaced. The nature of international relations has changed and these concepts do not provide the means for understanding and addressing the current international economic landscape. We live in a multipolar world, where blocs exist, but national positions are often shaped autonomously and independently.
In Africa, there has been an increasing diplomatic and commercial activism. Emerging powers, such as China and India, are targeting natural resources, services and potential manufacturing bases for export purposes. South Africa's socioeconomic profile requires that foreign relations must have meaningful economic benefits for the country. There needs to be a balance between the soft power elements of South Africa's foreign policy and deriving gains for the domestic economy. Unfortunately, an incident like the landing of a private aircraft by close friends of the South African President without ministerial approval at a South African air force base undermines the ethical, moral character, diplomatic strength and sovereignty of our country.
India and South Africa have ties that stretch back to colonialism and the struggle against apartheid. The two countries are closely linked through their membership of India-Brazil-South Africa, Ibsa. However, this diplomatic fiasco has weakened the historically strong relationship between South Africa and India. The way forward for South Africa must be to ensure that embassies are centres of commercial diplomacy. Also, there must be the political will to place the needs of citizens above personal political gains of our leaders. [Applause.]
Lastly, Palestine and Israel need a special committee that must focus on this issue as both countries have a high regard for the role South Africa plays. We salute the ambassadors who continue to fly and serve our country well. I thank you. [Applause.]