Bridging the Gap Between Rich and Poor in South Africa

17–19 May 2000 Sizanani Centre Bronkhorstpruit Table of Contents

Introduction 5 Bishop Kevin Dowling, Chairperson, Southern African Catholic Bishops’ Conference (SACBC), Justice and Peace Department

Welcoming Remarks 7 Dr Michael Lange, Resident Representative, Konrad Adenauer Foundation – Johannesburg

Opening Remarks 11 Bishop Hubert Bucher, Bishop of Bethlehem Diocese, Free State

Income Inequality and Unemployment in South Africa: Facts, Causes and Perspectives 13 Prof. Charles Simkins, Department of Economics, University of Witwatersrand

Minimising the Gap Between Rich and Poor Through Democratic Local 27 Development Finance Prof. Patrick Bond, School of Public and Development Management, University of Witwatersrand

Globalisation: Facts, Problems, Prospects 37 Mr Elroy Paulus, Fair Share, School of Governance, University of the

The Importance of a Basic Framework for a Sound – Effective and Social – 47 Economic Order Prof. Franz Josef Stegmann, Professor of Christian Social Teaching, Bethlehem Social Academy

Recommendations from the SACBC Pastoral Statement “Economic Justice 57 in South Africa” Bishop Kevin Dowling, Chairperson: SACBC Justice and Peace Department

The Biblical Jubilee Principle and the Relevance of Debt Cancellation for Redistribution 61 Rev. Peter-John Pearson, Director: SACBC Parliamentary Liaison Office

3 Table of Contents

Women, Micro Job Creation and Self-Employment: The Experience of People's Dialogue 63 Ms Iris Namo, Director: People's Dialogue

The Effectiveness of Social Security Systems in Reducing Inequality 71 Prof. Hans Hemmer, World Economy and Social Ethics Study Group, German Catholic Bishops Conference

Annexe Economic Justice in South Africa: A Pastoral Statement 73

Programme 99

Participants’ List 101

Seminar Reports 105

Occasional Paper Series 107

4 Introduction

The conference Bridging the Gap Between Rich and Poor in South Africa was held at the Sizanani Centre, Bronkhorstpruit on 17–19 May 2000. It was organised by the Economics Desk: Justice and Peace Department of the Southern African Catholic Bishop’s Conference, together with the Bethlehem Social Academy and the Konrad Adenauer Foundation.

The conference was held, we believe, at an important time in our country’s history. After the inaugura- tion of the new dispensation and as part of the economic transformation of South African society, we had to search critically for strategies to bridge the gap between rich and poor in this country.

The Justice and Peace Department believes it is important for local people to be involved with local government in the process of transformation, since this is their democratic right according to the national constitution. Economic literacy is therefore one of our main programmes, the aim of which is to help people play a more meaningful role in their communities.

We believe this conference and this compendium of the conference proceedings takes us to a new level of debate on economic issues.

Bishop Kevin Dowling Bishop of Rustenburg, Northwest Province Chairperson, Southern African Catholic Bishops’ Conference, Justice and Peace Department

5 Welcoming Remarks

Michael Lange

INTRODUCTION KAF is one of five political foundations in On behalf of the Konrad Adenauer Foundation Germany today and is closely affiliated to the (KAF), I would like to extend a very warm Christian Democratic Union Party – a centrist welcome to you all. It is a great pleasure to political party in Germany. cooperate for the first time with the Bethlehem The Foundation proudly bears the name of Social Academy and the Justice and Peace one of the founding members of the Christian Department of the South African Catholic Democratic Union Party, Konrad Adenauer, Bishops’ Conference. We hope this colloquium who became the first C