Sekela-Somlomo, egameni lombutho wesizwe endingumbhobho wawo emva kwemini nje mandikhahlele kuwe nakuzo zonke izinxibamxhaka ezikhoyo kule Ndlu ibaluleke kangaka. Ndiza kugawula ndiwarhuqa kwaye ukwenza oko mandithathe esi sixhobo sabantu abafundileyo ndenjenje. (Translation of isiXhosa paragraph follows.)
[Dr Z LUYENGE: Deputy Speaker, let me greet you and all the dignitaries who are in this very important House this afternoon on behalf of the ANC for which I am the spokesperson. I will be brief and in so doing let me use English to articulate my position.]
The debate on the transformation of the economy is within the budget fiscal policy. The ANC recognises the necessity to transform the economy in order to ensure that the Budget is not unevenly distributed. Budgets must serve the needs and interests of the people as an instrument for change for a better life for all.
The key task in building and transforming the economy is to ensure a strong and responsive economic system that serves all South Africans. However, this recognises that since 1994 the new government inherited an economy that was designed to meet the needs of a minority. It was an economy in deep structural crisis, and consequently required fundamental reconstruction. This economic problem emanates from the discriminatory policies of the apartheid era. Above all, the international economic balance of forces contributed immensely to unequal patterns of distribution adversely affecting the local economy. Similarly, at present, the South African economy is affected by the international economic crisis as part of the global economy.
During the years of transition in the 1990s, it was noticeable that the South African economy was characterised by the excessive concentration of economic power in the hands of a tiny minority of the population. In the mid 1990s, four corporations controlled 81% of share capital. Twenty families held shares worth R10,7 billion. Eighty-seven percent of the land was owned by whites. Comrade Prof Turok, a fundi amongst us here, argues that 80% of the country's wealth was owned by 5% of the population.
On the one hand, the international climate demanded free-market liberalisation and tended to constrain radical transformation of the economy. As a consequence, the ANC has had to reach a compromise on transition and economic reform from what had been envisaged over the years. This was done with a view to future struggles rather than as an end in itself. The impetus during the 1990s was the Freedom Charter's clarion call that the "people shall share in the country's wealth".
As a result of the vision based on the Freedom Charter since 1994, the ANC government has made substantial achievements in transforming the economy in the interests of the poor. In the same vein, the ANC recognises the huge challenges of unemployment, poverty, and inequality.
This Budget must address the socioeconomic challenges. It could do so probably through an economic policy that promotes an expansionist budget. That requires economic growth which translates into the creation of decent jobs. In this regard, fiscal policy must support economic growth, creation of decent jobs and development. This could happen through ensuring that government expenditure continues to grow in a sustainable manner.
It is noticeable that government expenditure growth has continued, reaching 34,1% of GDP during the 2009-10 financial year, particularly in some key priorities. The current Budget has shifted from a surplus of 1% of GDP in 2007-08 to a deficit of 7,3% in two years. This is despite a global economic crisis. However, the public debt is expected to rise from 23% of GDP at present to about 40% in 2013 and will probably stabilise in 2015.
The ANC is committed to a mixed economy where the state, private sector capital, co-operatives and other forms of social ownership complement one another in order to fight poverty. This should be done in an integrated manner to eradicate poverty and ensure economic growth. This economy should be part of the evolving world economy which benefits from equal trade - or the fight for equality - with the rest of the world.
Transforming the economy should mean integration into the Southern African region and the continent as a whole. This is in line with the advancement of the goals of development and African renewal indeed the advocate for a sustainable economy for a better life for all.
The transformation of the economy should increase social equality and the growing economy in a dialectical manner that changes the lives of the poor people. This includes the creation of decent jobs. It also calls for increasing productivity, labour-absorbing industrial growth, competitive markets, small business, and the co-operative sector.
Part of the goal behind the transformation of the economy is to fulfil economic rights through fair labour practices, social security for the poor, access to basic needs, and the eradication of poverty.
The hon members of the ANC need to mobilise people and build a popular hegemony in order to drive the transformation of the economy in their interest. Transforming the economy requires a state-led process. It calls for the building of a developmental state with the capacity to intervene in economic direction for the purposes of service delivery. This state must play a central and strategic role by directly investing in underdeveloped areas and directing private sector investment. This calls for industrial policy at the centre of developmental strategies.
The ANC is committed to ensuring the diversification of the economy, but this is not a narrow economist notion simply to promote the accumulation of wealth by the few. In this regard, the character of a diverse economy should be informed by class, race, gender and the youth factor. This is to avoid the exclusion of certain sections of society in the economy of South Africa. It is further to transform the skewed patterns of ownership and production, which reflect the legacy of apartheid, inequalities, dualism and marginalisation. The diversification of the economy has to ensure popular economic participation for all people. This seeks to accommodate the historically excluded groups. Part of this is to strengthen and ensure access to the key sectors of the economy, involving minerals, mining, agriculture, forestry and timber, Eskom and so on. There is a need for a state-driven industrial policy to ensure effective and productive use of the Budget. This involves the use of the Public Sector and the harnessing of private sector resources that are essential.
There is a need to break away from the simplistic calls for the state merely to create an investor-friendly climate. This has failed before and it is not going to work now. A clear and coherent industrial policy needs to inform budget, fiscal and other policy-making processes, including the state's planning capacity. Comrade Minister Rob Davies revealed a promising and detailed Industrial Policy Action Plan, Ipap, which represents a step forward along the new developmental growth path. This approach could accelerate state-led development and economic transformation.
Uqoqosho nophuhliso lwamaphandle kunye namaphondo ngokubanzi luyinxalenye yoxanduva lwenkqubo yokuvuselela uqhagamshelwano phakathi kwemo yocwangciso nophuhliso lwabantu bakuthi. Uphuhliso lwamaphandle lufuna uhlaziyo olukhawulezileyo, oko kukuthi ukusekwa kweSebe lezoPhuhliso lwaMaphandle noBuyekezo lwezeMihlaba yindlela elungileyo eya phambili. Uphuhliso noqoqosho lwamaphandle lwalusoloko lungahoyekanga kwiminyaka yoorhulumente bengcinezelo. Yiyo le nto uxanduva lungamandla kubantu bakuthi ezilalini nasezifama.
Inkqubo yezoqoqosho yasemaphandleni iza kuphuhla ixhamle kwinyathelo elisungulwe ngurhulumente. Ucwangciso nokwakha ukhanyo kujongwe ukuba iinkonzo ziyaya na ebantwini kulinyathelo elikhulu elo. Kunyembelekile ke, masibhinqele phezulu siphakamise izinga lokwenza izinto phaya emaphandleni ukwenzela kubekho imiphumela yophuhliso.
Kuyafuneka siqinisekise ekwakheni imisebenzi enesidima phaya ezifama nakwiilali zakuthi. Oku kuquka uphuhliso loomama, abasebenzi nabantu abatsha.
Zombini iimeko zophuhliso lwemihlaba kwakunye nezoqoqosho maziqiniswe zisekelwe kwiimfuno zabantu phaya ekuhlaleni. Loo nto yenza uphuhliso lomhlaba lube yinxalelenye yemo yezoqoqosho. Kuyafuneka ukuba ibe ngabahlali abayinxalenye yokuthatha izigqibo ngemo yophuhliso lwabantu nentlalontle.
UMongameli weli lizwe nongumongameli wombutho wesizwe kwintetho yakhe yovulo lwale Ndlu inkulu kangakanana uyikhankanyile ngokumandla imfuneko yokuthatha inxaxheba kwabantu bonke kuphuhliso lwemihlaba namaphandle. Olu luxanduva olufanelekileyo ukwenzela ukuba uphuhliso noqoqqosho lwasemaphandleni lube sezandleni zabantu, lungabi kwizandla zegcuntswana. Kwinkomfa yombutho wesizwe i-ANC, eMorogoro ngo-1969, esinye sezindululo sasilumkisa ngolu hlobo:
Xa sisedabini kufuneka sazi ukuba sizabalazela abantu bonke. Singaba libali abanye sisuke sityebise iziqu zethu, sishiya ngasemva isininzi.
Lo yaba ngumgca onolwamvila nefuthe lokusikhuthaza singurhulumente we-ANC emaphondweni najikelele. Eneneni sibe nemiphumela enje ngoku; siphuhlise indlela, sakha izikolo neekliniki. Urhulumente uthathe unyawo evuselela imithetho yokuhlala ukuze abantu bakwazi ukuzikhusela balwe ubundlobongela bencedisana namapolisa, baze kwakhona badulise imikhwa yokurhwaphilizwa kweenkonzo zikarhulumente yimigewu.
Ngokubhekiselele kwimfundo sithi abazali nabantu bokuhlala ngokubanzi mabadlale indima eqaqambileyo kwikamva labantwana babo. Kuwo onke amaphondo lisatyelwe eli khwelo. Ndithetha nje amawaka ngamawaka abafundi afumana imfundo engahlawulelwayo ukuncedana nabazali abangathathi ntweni.
Senze ngakumbi ukubethelela amalungelo abo baphila nogawulayo. Ukongeza apho, siqinisekisile ukuba bayaxhaswa ngumphakathi uwonke. Konke oku kuza kufumana isandla esiqinileyo sikarhulumente ngokuthi ajonge aze adibanise imali yokudiliza intlupheko kubantu bakuthi. (Translation of isiXhosa paragraphs follows.) [Rural and economic development in the provinces in general are part and parcel of the programme to revive communication between development and planning and our people. Rural development needs a speedy transformation and that is the reason it was fitting to establish the progressive Department of Rural Development and Land Reform.
Rural and economic development had always been marginalised by the previous apartheid regime. That is why it is an immense responsibility for our people in the rural areas and on the farms.
The rural economic development programme will grow and benefit from the government's initiative. It is a great step to have planning and oversight to monitor service delivery to the people.
It is becoming extremely difficult, so let us pull up our socks in the rural areas so that there is excellent development. This includes the development of women, the proletariat and the youth.
Both economic and land development must be intensified and be centred on the people's needs within their communities. That makes land development part of the economy. It must be the communities who take part in the decisions about the development and welfare of the people.
The President of the Republic, who is also the President of the ANC, in his state of the nation address emphasised the need for all the people to take part in the development of the land and the rural areas. This noble responsibility of rural economic development must not be in the hands of the few, but must be owned by the people.
In the ANC's Morogoro Conference in 1969, one of the resolutions warned us that:
In the struggle we must know that we are fighting for everyone. We must not forget others and enrich ourselves, leaving the masses behind.
This resolution was a mark that encouraged and influenced us as the ANC government in the provinces and nationally. Honestly, we have now achieved excellence; we have built roads, schools and clinics.
The government has gone the extra mile and came up with the idea of establishing community police forums which assist with security and fighting lawlessness together with the police. They also report corrupt tendencies within government departments.
In respect of education, we asked parents and communities at large to play an active role in the future of their children. All the provinces responded to this call. Thousands of learners are receiving free education to assist the struggling parents. We have even endorsed the rights of those living with HIV and Aids. To add to this, we have assured them of our support as the whole community. All this will be done through substantial funding from the government by organising funding in order to break barriers of poverty affecting our people.]
The fight against corruption should be located within the national democratic revolution. The objective of the national democratic revolution is to promote economic and political transformation. This articulation has become the ANC's moral vision to restore ubuntu - the values of humanity. The ANC's understanding of moral values is rooted within the struggle. This implies that corruption should not be viewed as a moral matter. It means meeting the needs of the people and treating them with respect. It also refers to the building of a society based on democratic values, social justice, and the rule of law. It is noticeable that privatisation, procurement, outsourcing, entrepreneurs, and tenders result in corruption, and affect the economy. However, the election manifesto of the ANC and the state of the nation address by the President call for measures to ensure the transparency of the tendering system so as to ensure the accountability of the public servants.
Corruption has a more devastating economic effect than the inflicted pain of common crime, and it affects poor people indirectly. It is mostly the crime of the rich and powerful. The ANC-led government notes that corruption erodes the economic base for effective service delivery and mostly affects poor people. It has the potential to reverse the gains of the people and of the country as well.
The purpose of broad-based black economic empowerment, BBBEE, is to deracialise the ownership and control of the economy. It has to encourage productive opportunities by black people who have been excluded from the economy over decades. BBBEE should not be narrowly responding to the minority of blacks, but rather broadly target women, youth, poor people, workers and rural communities to promote new enterprises to build skills and the production needed by the economy.
It has to broaden ownership and participation by the majority of the people and to ensure a competitive market in rural areas and the townships, not just in the big cities. This requires the continued acceleration of economic transformation, with fiscal policy talking to industrial strategy.
BBBEE has had successes and has weaknesses. It has taken strides to redress past economic imbalances; broaden the economic base of the country in the last 16 years; stimulate economic growth; create jobs while eradicating poverty; and ensure the increasing participation of black people in the productive capacity of the economy.
The shortcomings of BBBEE relate to the fact that sometimes its implementation tends to be narrow, which might lead to unintended consequences. It sometimes tends to be concentrated amongst a few males. It tends not to be visible in rural communities, resulting in fewer women entrepreneurs. Nevertheless, a lot has been said today, but the record of the transformation of the economy is evident on the ground. There is no turning back to a fragmented and skewed economy, and our fiscal policy should assist this new economic path to a better life for all.
Nditsho ndisithi umbutho wesizwe uyayibethelela into yokuba le Ndlu imele iwuphehlelele kwaye iwuthathe lo mgaqo-nkqubo usikhokelela phambili nomhle kangaka. Ndiyabulela. [Kwaqhwatywa.] (Translation of isiXhosa paragraph follows.)
[The ANC mandates this House to endorse and welcome this policy which is progressive and well articulated. [Applause.]]