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 Are the new buzzwords replacing these outdated and failed concepts now called the "developmental state"?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.]