Chairperson, hon members, Minister and your delegation, today we are considering the Budget Vote of the National Treasury within a given context, which the chairperson outlined in his speech. I am not going to repeat that.
Each year the Budget Speech deals with the global balance of economic forces. It is these global economic forces that have a direct bearing upon our ability to execute the development path we have set ourselves, as well as how the Budget should respond to that development path.
We are the makers of history, but the terrain upon which we make this history is a contested one. Foreign economic policy must assist us to deal with the challenges of inequality and poverty in the world. In dealing with the international political economy, the critical need for the reform of the international financial institutions and economic system arises sharply. Many institutions controlling the global economy were developed during periods when colonialism held vast control over its colonies. These colonies, which were held in political and economic bondage, could not participate.
Over the past decade and more, we have been engaging in a battle of ideas in the attempt to transform the Bretton Woods institutions. We have been advocating for a more open, transparent and merit-based approach to choose the heads of the World Bank and the International Monetary Fund, IMF, not the secretive manner in which they are currently appointed. We have been mobilising the progressive forces in the world to continue advocating the completion of the Doha Development Round Negotiations to ensure that the developing countries have favourable access to markets in the developed world without restrictive conditions.
Africa, in particular, is moving towards beneficiating its raw materials. This must become the decade in which new foreign investment must be focused on beneficiation so that our domestic markets can develop and grow. It is therefore crucial that we harness and optimise these resources in the global community where there are limited trade barriers and protectionist policies. It is imperative that we achieve a just international financial and economical order.
Our National General Council in September 2010 underscored that the ANC continued to be the strategic centre of power, the leader of the alliance, a disciplined force of the left, a mass movement, and an internationalist movement with an anti-imperialist outlook. We have spoken a lot in the past about the need to speed up the reform of international institutions. The initiative with regard to the reform of the IMF requires us to provide the necessary leadership and the political will to follow through with the IMF reform. The reform of the IMF should ensure that the necessary compromises are reached to deliver on the Pittsburgh commitments. Failure to move regarding the IMF and other urgent reforms of the international financial institutions endangers the goodwill earned through the effective action of these institutions in response to the crisis. The IMF is a quota-based institution. Quotas determine the amount of resources that could be made available by the IMF. Our strongly held view is that quotas must shift to developing economies, as their need for the IMF resources is higher. The shift must essentially be from developed countries to developing countries. We must ensure that no emerging and low-income countries lose quotas as a result of these reforms.
We must play a greater role in providing strategic direction to the IMF. We must also ensure that an equitable representation is achieved in the board of the IMF to reflect appropriate regional representation. This could be achieved through reforming the composition of the board to afford an additional chair for sub-Saharan Africa, as was done at the World Bank.
The appointment of the head of the IMF must be based on merit, without regard to nationality or gender. These institutions belong to all of us. The appointment of the heads from Europe and the United States of America, USA, is a long-standing secret practice, but has no basis in the Articles of Agreement.
The Brazil, Russia, India, China and South Africa, Brics, grouping sets in motion the construction of a new financial architecture and economic multilateralism as a basis for world growth and prosperity. This demonstrates the absolute necessity that at the regional level we ensure that economies of the Southern African Development Community, SADC, countries are further integrated.
While the global financial crisis originated in rich countries, it has meant a sudden and sharp increase in the borrowing costs of developing countries and, in many cases, their currencies have fallen dramatically. The statement by African Ministers noted that the global slowdown will diminish trade opportunities for Africa. They called on all countries to refrain from protectionist measures and emphasised the need for a successful conclusion of the Doha Development Round of Negotiations.
It is in the world's common interest that countries pursue policies that do not provoke financial instability. This requires international co-operation by national authorities and strong multilateral bodies to organise and co- ordinate efforts to prevent and solve financial crises. The same applies in our region.
Our experience with economic partnership agreements, EPAs, demonstrates how vigilant we have to be and how easy it is to undermine what we are trying to develop within the region when external interests feel threatened by the regional unity. What so easily gets in the way of agreements is national sovereignty and a skewed rules-based system designed to protect national sovereignty. At the heart of such a system we require well-resourced, inclusive and accountable institutions. The IMF and World Bank can play a central role, but must be comprehensively reformed to meet the challenges of the 21st century. This will mean a stronger voice and representation for developing countries.
The international financial institutions have a critical role to play, standing behind the emerging economies that face the consequences of the international crisis. We must ensure adequate resources are available so that we avoid a downward spiral in economic activity. The emerging markets can also be an important engine of global growth if they are properly supported - to maintain well - focused investment programmes and make effective anti-poverty interventions. The ANC supports Budget Vote No 10. [Applause.]