Chairperson, let me say at the outset that the ANC supports Budget Vote 28, the budget for Economic Development. I wish to turn to the issue raised by Minister Nzimande regarding his comments on the financial institutions.
A few weeks ago, we were in this very room when the National Credit Regulator alerted us to the fact that there is an alarming, unsafe credit extension. This issue is a subject for discussion in the next few weeks, in this very Parliament. Minister Nzimande referred to that issue. Any responsible government would be worried about an unsafe extension of credit, which might plunge this country into a financial crisis that we are so desperately trying to get out of.
The global economic crisis that began in the USA in 2007 and the current eurozone sovereign debt crisis have demonstrated that the belief in the Washington Consensus - explained as a free, efficient, self-regulating and self-correcting market - is a false hypothesis.
The ANC government now has the ability to seize the moment to turn these global economic crises into an opportunity to move our country in a new direction. Examples of this ability is found in, for instance, the New Growth Path, the Industrial Policy Action Plan, the National Development Plan: Vision 2030, the massive infrastructure programme - to mention but a few - and the budget that is attached to these policies and programmes.
The impact of the global economic crisis on our economy has strengthened the ANC's resolve that the state must play a key and central role in developing and growing the economy in order to decisively reduce the high rate of unemployment, to eradicate poverty and inequality and to improve the social conditions of our people.
We have set ourselves the challenging goal of building a 21st-century democratic developmental state in which there must be inclusive and equitable growth.
Kufanele sibe nokuqonda nokwazi okulinganayo kokuthi intuthuko enjani esihlose ukufinyelela kuyo, sazi nebanga esisazolihamba ukuze sifinyelele kuyo. Futhi kufanele sibe nesineke, sisebenze ngokubambisana nangokuzikhandla ukuze sihlomule sonke ngokulinganayo. (Translation of isiZulu paragraph follows.) [We must have a common understanding of what kind of development we need to reach and the distance we need to walk to reach it. We also need to be patient, work together and be committed so that we can all benefit equally.]
The ANC is alert to the fact that one-size-fits-all policies and programmes for constructing a democratic developmental state do not exist. Therefore our policies, programmes and institutions for development, growth and improvement of the socioeconomic conditions of our people must be specific to context. They must be reflexive and adaptable to the changing material conditions.
To address the challenge of weak and fragmented implementation, we are designing and strengthening institutions that are developmental in their orientation and are capable of acting coherently and collectively. To this end the ANC must and will continue to reflect on and eliminate factors that undermine the capacity of government to implement policies and programmes aimed at building a 21st-century democratic developmental state.
Government needs competent officials who are able to manage large systems and complex projects. Equally, the private sector requires a skilled and productive work force. It is for this reason that the Department of Economic Development and the Department of Higher Education have signed the National Skills Accord to address the capabilities and competences needed in the Public Service and the skills required in the economy in general.
In this context as well, improving the health of our people by minimising the burden of HIV and TB, and focusing our attention on the growing importance of the knowledge economy are both key goals of economic development. Many development and growth strategies have in the past carried with them the destruction of the environment and the threat of ecological collapse. The 21st-century developmental state must have a light ecological footprint and grow the green economy. On this front, the ANC government is on course and that is why we signed the Green Economy Accord.
One of the necessary conditions that must be met if our country is to enjoy sustained levels of development and growth is more effective and efficient mobilisation and deployment of our own resources to finance investment. There is a sizeable amount of financial capital in the country, estimated to be more than R2,3 trillion, not to mention the capital assets, estimated to be more than double this amount. These financial resources can be invested in manufacturing and infrastructure.
What we need is a very serious and constructive conversation at the National Economic Development and Labour Council, Nedlac, about bold and innovative ways of investing in labour-intensive and productive sectors of our economy. It would be a very patriotic way of contributing to building a 21st-century democratic developmental state.
The capture by market fundamentalism is one of the biggest challenges in the construction of a 21st-century democratic developmental state. Linked to this challenge would be creating the capability of the state and then neglecting the role of the input of and engagement with our constituencies. Such neglect arises from the comfort of technocrats and those deputised to public office in dealing with managers rather than consulting community leaders on issues of development.
The successful implementation of our policies and the massive infrastructure programme announced by His Excellency the President in the state of the nation address, shall be measured by the extent to which we shall have brought the black majority into the mainstream of economic activity, not only as wage-earning workers but also as wealth creators themselves.
When we count 5 million jobs in 2020 and 11 million jobs in 2030, we must also count the number of sustainable and successful black-owned small, medium and micro enterprises and co-operatives. When we count these millions of jobs, we must also count the number of truly knowledgeable, skilled and competent persons in our population. When we count the number of roads, bridges, railway lines, ports and dams we shall have constructed and the number of locomotives and buses we shall have manufactured, we must also count the number of successful black-owned companies. When we count the number of hectares of productive land we shall have transferred to rural women, men and the youth, we shall also count the number of successful black farmers who will have emerged. The ANC supports Budget Vote No 28. I thank you. [Applause.]