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INDICATOOUTH AFRICRA

EDITORIAL A radio journalist reporting on the tragic events in INDICATOR Rwanda, when asked how people were coping, remarked: "In Africa people always have time for a smile". To the extent that wild generalisations can be made, African people are remarkably good natured. The continent is a disaster zone, trapped in war, poverty CONTENTS and oppression. But centuries of slaughter in Europe - including two World Wars, the holocaust and Bosnia in 80 years - reveal the dark side of humanity everywhere.

White South Africans should be deeply grateful for African goodwill. It is the essential ingredient of the extraordinary spirit of reconciliation abroad in this POIITICA1 MONITOR country. It is what will enable us to rise above the divisions that characterise societies like Northern Ireland. Bumbling Along Robert Schrire Reconciliation is embodied in the person of Nelson South Africa is bumbling along a middle road scenario towards a mixed First World-Third World society which Mandela and is being consolidated through institutions could, with sound management, lead to further like the Government of National Unity, the plethora of development and stable democracy. forums and, hopefully, the proposed Truth Commission. Quality leadership and unifying institutions must be nurtured if South Africa is to survive the daunting economic, political and social challenges it will face for The New Opposition years to come. AlfStadler Democracy has been gained but a vibrant and crucial However, goodwill must not be allowed to spill over into opposition culture lost. The new opposition is likely to uncritical compliance. As much as the new Government be comprised of workers, groups with unmet needs support it also needs vibrant opposition - in expectations, the marginalised and disenchanted Parliament and in civil society - to keep a check on what whites. it is doing, to point out its mistakes and to represent a range of very different interests.

It needs constructive criticism and lively debate. These New Challenges are crucial to learning and improving, to finding new Bobby Godsell choices and solutions, to forging compromises and to South Africa needs economic growth and a balance encouraging rich diversity. between reconciliation and dissent, partnership and pluralism. Consensus should be mobilised around goals but the means must be vigorously debated and We need, in other words, strong opposition in new relations forged. Parliament and lots of Desmond Tutus outside. What we certainly do not need is the intolerance of disagreement that characterised the former government and kept it stuck in a suffocating script for A Security Policy half a century. Bill Sass As Bobby Godsell writes, it will be crucial to strike a A national security policy is urgently needed. Without one there will be confusion among security agencies balance between reconciliation and dissent, and the success of the state administration and the partnership and pluralism. "Growth and development Reconstruction and Development Programme will be goals can be formulated for every aspect of our society in doubt. which can command broad stakeholder support. We need, equally, to cultivate a vigorous debate about means. That is the realm where dissent is not only permissible but vitally required. This is the duty of loyal Securing the Future opposition." Jackie Cilliers A demoralised police force and o ver-burdened defence Indicator SA's authors will criticise the new force will be unable to cope with the massive Government, institutions and policies enthusiastically challenges facing the country. Comprehensive but helpfully. We will analyse developments and plans, restructuring of the security architecture is needed. inform debates and suggest new ways forward. Meanwhile, keep smiling.

Karen Mac Gregor Local Government the Loser Editor David Christianson A distracted central government, increased provincial powers, an ineffective framework for transition and The INDICATOR SOUTH AFRICA Quarterly Report and the INDICATOR local bickering are seriously threatening the chances of PRESS investigative books are published by the Centre for Social and Development Studies at the University of Natal, Durban. Opinions expressed achieving strong local government. are not necessarily those of the Editorial Committee and should not be taken to represent the policies of companies or organisations which are donor members of Indicator South Africa.

'<: Cn;iyri:|hl I31 11!: irm-.t-ii;,; |,i.T=in is held by INDICATOR SOUTH AFRICA h.'-","iSMn "r any part of this publication must be Editor Kctreti Mac Gregor Production/Design Rob Evans obtained from the publisher. Admin/Marketing 1'ai I-ismcr Conflict Supplement Editor Antoinette Louw Cover Graphic Sarah Hills Repro Muitigraphics Printing Robprint SOUTH AFRICA SPRING 1994 Quarterly Report VOLUME 11 NUMBER 4

ECONOMIC MONITOR COMPARATIVE MONITOR

The Future of Forums Laying the Past to Rest Chris Heymans Andre du Toit The new South Africa's vision of civil society A Commission on Truth and Reconciliation is bound to participation creates space for regional economic be controversial. But the international experience is forums to continue as a check on government and a that, if properly handled, it could help settle accounts place for lobbying civil society interests. from the past and contribute towards reconciliation.

Abolishing Controls The Brazilian Ballot Jan Lombard Maria D'Alva G Kinzo The whole exchange control system and the dual Whoever wins Brazil's upcoming elections will struggle exchange rate system should be phased out together. to govern successfully a country which has a flawed This article contains the executive summary of Sacob's political system, an ongoing economic crisis and a report on exchange control. deeply disillusioned electorate.

Economic Outlook Mike McGrath and Merle Holden DEVELOPMENT MONITOR The economy's progress out of the recession remains an open question. Performance in 1994 is disappointing and the prospects for economic growth have been scaled down. Developing the Developers Bill Davies The South African development environment has been hampered by duplication, competition for funds, conflicts and uncertainty. There is a need to restructure and rationalise development agencies. INDUSTRIAL MONITOR Civic Capacity Building Craig Clarke, Simon Bekker and Catherine Cross Social Partnership Development initiatives need to move beyond merely delivering infrastructure towards enabling extensive South Africa must construct a unique social partnership community participation and empowering less between capital, labour and the Government, with an developed and marginalised communities. intensified role for the state in the labour market, says the Minister of Labour.

The Point Waterfront The Bottom Line Thabo Mpakanyane Dudley Horner After years of consultations between local interests, Despite its chequered history, a revamped Wage Board Durban's Point Waterfront development is finally could play a vital role in determining minimum wage getting underway. It is a huge project designed to make levels for uncovered workers and in mediating Durban a major tourist destination. industrial disputes.

Promoting Affirmative Action Creative Thinking Julio Faundez Mike van Graan The case for affirmative action in this country appears The arts and culture, already a low priority, are to be compelling. But it will only be effective if applied threatened with further neglect as the country struggles with caution and combined with coherent policies in key to meet basic needs. But they are crucial to democracy, social sectors. growth and nation building.

Editorial Committee Simon Bekker, Mark Bennett, Rob Evans, Mervyn Frost Richard Humphries, Myrna Kaplan, Mesliack Khosa, Karen Mac Gregor, Julian May, Mike McGrath, Valerie Moller, Lawrence Schlemmer

OilTICAl M 0 N I T O R

Provincial shares of GGP

Provincial contributions to the N-West 5.58 GGP for selected economic sectors

PWV 37.39

General Government Spending

N Cape 2.45

E Cape 11.88 OFS 5.74

KZN 13.44 W Cape 13.81

N-West 4.55

PWV 37

Percentage distribution of the GGP at factor cost and current prices per economic sector and per province, 1991

Sector W Cape E Cape N Cape OFS KZN N-West PWV ETvl NTvl Total Agriculture/ forestry/fishing 18.27 9.39 4.39 15.05 18.03 8.32 4.32 14.44 7.78 100.00 Mining/quarrying 0.33 0.13 6.25 14.26 3.30 26.22 22.34 18.50 8.67 100.00 Manufacturing 13.84 7.84 0.37 3.87 18.44 2.28 43.50 8.74 1.12 100.00 Electricity/ water 9.77 3.05 1.68 8.29 7.61 1.69 20.58 40.34 7.00 100.00 Construction 14.82 8.37 1.32 6.04 16.04 5.80 38.94 5.19 3.49 100.00 Trade/catering 17.80 7.74 1.89 4.64 15.89 3.42 42.31 3.62 2.69 100.00 Transport/ communication 14.78 9.54 3.08 5.69 21.75 2.09 37.20 4.03 1.84 100.00 Finance/real estate 18.08 6.68 1.54 4.61 13.45 3.47 47.42 3.02 1.73 100.00 Community services 13.43 5.51 1.27 3.73 14.88 2.91 53.28 3.15 1.85 100.00 LESS imputations 20.75 5.88 1.55 4.30 12.36 2.68 47.83 3.16 1.49 100.00 General government 13.81 11.88 2.45 5.74 13.44 4.55 37.00 3.94 7.20 100.00 Other producers 19.51 7.29 1.78 6.50 14.91 4.08 41.22 2.22 2.49 100.00 Total 13.88 7.57 2.13 6.34 14.93 5.58 37.39 8.40 3.79 100.00

Source: Statistical release P0401 'Gross Geographical product at factor incomes by kind of economic activity and magisterial district, 1991. Central Statistical Service, July 1994. Provided by the Development Bank of Southern Africa. GOVERNMENT OF NATIONAL UNITY

( PRESIDENT'S OFFICE )

President Mr Nelson R Mandela Tel: (012) 325 2000

Executive Deputy President .... Mr Tel: (012) 325 2000

Executive Deputy President .... Mr FW de Klerk Tel: (012) 325 2000

( MINISTERS )

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By Robert Schrire Department of Political Studies, University of Cape Town

South Africa has achieved political democracy but the big challenge still lies ahead of us. The route is fraught with dangers. A look at the current political, social and economic map of the country indicates that we are bumbling along a middle road scenario towards a mixed First World-Third World society which could, with sound management, lead to further development and stable democracy.

1 is difficult for even the most astute The power map observer to discern patterns in the political economy of a rapidly It has been said that the results of the April The single most changing society. This is particularly elections are 'designer results'. What is important factor 1so when personalities are so vitally meant by this is that the results are as which will important in shaping the larger outcomes. conducive to a democratic future as is determine our Whenever we focus on personalities, we are possible under our unique circumstances. likely to be surprised by the vagiaries of future will be the quality of our human behaviour. With the best intentions in the world, nothing is more dangerous for a democratic system leadership Who would have expected dramatic changes than a landslide victory where the victor is from I he pre-1990 FW de Klerk? Not only likely to remain in power for a long time. was In.' perceived as conservative, but as one Although the African National Congress of his close associates remarked: "The (ANC) emerged from the elections as the problem with De Klerk is not that he is clear winner, its power is limited by the reactionary but that he refuses to take following: decisions." ® The failure of the ANC to win a Yet this same De Klerk launched a two-thirds majority in the National programme of reform which has left all of us Assembly. Although even a simple amazed. Similarly, the future of South Africa majority enables the winning party to ride will be shaped largely by the actions and roughshod over its rivals, a two-thirds inactions of a handful of leaders: Nelson majority conveys the wrong message to Mandela, De Klerk and Mangosuthu the winners and may encourage them to Buthelezi. treat the losers with disdain. Psychologically it was very important for Whereas in developed societies such as the no party to win the magic two-thirds The April elections United States or Britain it doesn't really majority and the right to write the produced matter who is in charge, in a politically constitution unilaterally; 'designer results' developing society such as South Africa, it as conducive to a does. Indeed, the single most important factor • The success of the National Party (NP) in democratic future which will determine our future will be the obtaining more than 20% of the total vote as is possible quality of our leadership. and in winning majority support from the under our unique white, coloured and Asian communities. circumstances But leaders do not operate in a vacuum. They Not only did this entitle the NP to occupy are part of the polity and the value system of a deputy presidency and important cabinet their societies. The political landscape positions, but psychologically it ensures provides a context of restraints and that an opposition party has crossed an opportunities. Now that the elections are important barrier which marks the over, it is possible to discern the contours of difference between at least a partial this political landscape, or power map. victory and total defeat;

INDICATOR SA Vol 11 No 4 Spring 1994 7 ¥8

The South African power map, then, can be summarised as follows: all but two players - the ANC and the NP - were eliminated from national politics. At the provincial level the IFP is a major player because of its victory in KwaZulu-Natal, but its national aspirations have been shattered, probably permanently.

What about the losers? It is a dangerous exercise to attempt to predict the political future, but is difficult to conceive of any circumstances which could lead to the resurrection of the Democratic Party (DP), Freedom Front (FF) or Pan Africanist Congress (PAC).

These parties seem to have been struck a mortal blow and are likely to lose much of their- already limited electoral support. Given a widespread perception that their growth prospects are limited, they are unlikely to attract the resources, especially finances, which are so necessary in today's politics.

The options The failure of the ANC to win control Although we cannot predict the future, we Opposition over two of the three most important can outline the central issues and isolate the victories in two provinces. The convincing NP win in the factors which will shape outcomes. Perhaps provinces will Western Cape and the somewhat the most important questions are whether the suiprising victory of the Inkatha Freedom polity will be stable, the new democracy will ensure that real Party (IFP) in KwaZulu-Natal will survive the new challenges and what policies, restraints exist on balance the power of the ANC in the especially socio-economic, the new central other seven provinces and ensure that real Government will adopt. government power restraints exist on central government power; The answer to these questions will determine South Africa's future. We may summarise As a result of these electoral outcomes, the four possible outcomes as follows: other balancing mechanisms become more important. The Government of National Unity (GNU) could never be a • The Rwanda option substitute for electoral performance. If the South Africa disintegrates as a cooperative ANC had achieved a massive victory at society and is dominated by conflict and the polls and no other party had achieved violencb. The road to this outcome would lie a credible level of voter support, the GNU in the failure of the leaderhsip to contain would have been an empty shell from the regional conflicts, such as the power straggle very beginning. in KwaZulu-Natal, and a breakdown in the functioning of the GNU. Armed force would Now at least the junior partners will have become the arbiter of conflicts. real clout. Similarly the constitutional principles agreed upon during multi-party negotiations and new institutions such as • The Zambian option The political the Constitutional Court take on a new South Africa slides gradually into stagnation, balance of power lease of life. decay and corruption. Endemic violence reduces the would not be the defining characteristic. possbilities of The political balance of power probably Instead the nature of the South African clashes between also reduces the possbilities of clashes society would change to one dominated by the state between the state bureaucracy, including Third World elements. The First World bureaucracy and the security services, and the new political oriented elites who presently dominate the the new political elite. Had the ANC been the only major South African political economy would elite parliamentary player, tensions and gradually be displaced by Third World conl'licls may have developed with the oriented elites, practices and policies.

12 INDICATOR SA Vol 11 No 4 Spring 1994 27 vimcs m j The bumbling along option or highly underdeveloped, we could Socio-economic Smith Africa is a mixed First World-Third confidently predict its political destiny, at development is a World society in which democratisation least in the short term. critical increases die Third World influences on the determinant of political economy in the short term but does For example, we can predict that politically at political success least the United States and Germany will not not destroy the First World component. or failure be very different from their present realities Under this scenario, South Africa would in five years time. We can be equally continue to make significant economic confident, alas, that Malawi, despite the progress and the democratic ideal would not present euphoria, will not be a stable he extinguished. However, the process would democracy in five years time. remain tenuous and a strong Third World element would continue to exist and would The middle category of partially developed limit economic and political prospects. states are the most difficult to understand because their destinies are not socio-economically determined. In these j The Singapore option cases, it is the quality of the leadership which This entails rapid progress towards a is critical, particularly the actions of the predominantly First World society in which winners and the losers of the political game. the Third World components would be steadily reduced. In time, high levels of socio-economic development attained makes The winners the snr\ ival of a First World democratic system unproblematic. Perhaps the single most important factor determining the political future of middle South Africa is not unique in facing these level societies is the behaviour of the political issues. I i om a global perspective, we can winners. Do they continue to play the game In middle income find sonic of the answers by investigating the according to the rules? Are they societies like lc\cl of socio-economic development that magnanimous towards the losers? Do they South Africa a exists in the society, and how the political adopt and implement sensible policies? stable and winners and losers behave. democratic Part of the key answer to understanding system of political behaviour lies in the arena of government is Development predispositions. If the ANC has a secret possible but not agenda to subvert the polity and implement probable The le\cl of socio-economic development is populist policies, no constitution or court will a critical determinant of political success or be able to frsutrate them. failure. I .cvels of literacy, income per head and urbanisation largely determine whether a However, the disastrous consequences for the soeictv will be a stable or an unstable ANC and its constituency of such policies has democracy. Comparisons indicate that we can probably been perceived during the learning differentiate between three levels of experience of the last four years. We are development: therefore not dealing with a group with a sinister and hidden agenda. I liL'hl v developed societies characterised In high levels of literacy, affluence and No democratic society can base its survival large urban complexes. With very few on trust, however. Political power needs to be exceptions, these societies also have limited and constrained by countervailing stable democratic systems of government; powers. As I outlined earlier, our 'designer' elections produced an outcome favourable to Middle income societies characterised by a democratic South Africa. a strong, modern First World sector The ANC does not co-existing alongside a large Third World The ANC-dominated government is faced have the luxury of sector. An important section of the with powerful political forces outside of its a blank cheque in population is literate and relatively control in the GNU as well as in the regional either making affluent, but another important section is governments of the Western Cape, not. A stable and democratic system of KwaZulu-Natal and several of the ANC policy or government is possible but not probable; dominated provinces. It does not have the implementing its luxury of a blank cheque in either making decisions » Underdeveloped societies with low levels policy or implementing its decisions. of economic development and very limited literacy. With very few As significant in constraining government is exceptions, these societies are neither the domestic and global context in which democratic nor genuinely stable. government operates. It is almost universally recognised that no state can go it alone in the If South Africa was either highly developed 1990s.

27 vimcs m 12 INDICATOR SA Vol 11 No 4 Spring 1994 27 vimcs m If the Government is to deliver its promises The losers to its key constituencies, it has to be fully Cooperation reincorporated into the global political The political losers often pose an even more rather than economy. Only full reincorporation will lead serious threat to democracy and stability. confrontation will to the necessary foreign investments, access Unlike the winners, they frequently have a be the only path to to the key markets of Europe, North America vested interest in the failure of government economic and Asia, and support from global economic and public policies. In many cases the failure reconstruction and institutions such as the International of democratic government creates development Monetary Fund and the General Agreement opportunities for power which would not on Trade and Tariffs. otherwise be available to political minorities.

Similarly, control over Parliament does not We are perhaps fortunate in South Africa that automatically imply control over all the the election outcome was, with the exception power points of South African society. The of KwaZulu-Natal, so decisive. Both the public bureaucracy, including the police and white right, represented by the Freedom military, remain outside the unchallenged Front, and the black 'left', represented by the control of the ANC. Civil society, especially PAC, were demolished and at present do not the media, the professions and business, civic pose any real threat to the democratic order. associations and trade unions, value their independence greatly. It also seems improbable that their supporters will take up arms against the state or engage Thus power is not what it used to be. The NP in other forms of illegal opposition on any in 1948, with almost no support among black significant scale. The psychological people, only minority support among the consequences of their political rout have been white electorate and very little sympathy overwhelming and their ranks have become abroad, could use its small parliamentary thoroughly demoralised. majority to grab control of the state and Political losers transform society. The future consequences of the policies of often pose a the IFP remain more problematic. The end of serious threat to The ANC, with much greater popular Inkatha's dream of being a major national democracy and support, is unable to lead but can only player may contribute to national stability, since persuade. An ANC attempt to impose its will reconciliation if rational considerations shape on South Africa would have disastrous their policies. The elections showed that the they frequently consequences - not least for itself. IFP is exclusively a regional party. have a vested interest in the Cooperation rather than confrontation will be The situation in KwaZulu-Natal is more failure of the only path to achieving ANC goals such as complex, partly because the power struggle government economic reconstruction and development. has not been decisively resolved. Although President Mandela's speech at the opening of the IFP was granted 51% of the final vote, the Parliament turned that most ANC leaders ANC and others claimed widespread are liilly aware of these brutal realities. irregularities. The situation is aggravated by

timcn&fcu vttiitciis 10 INDICATOR SA Vol 11 No 4 Spring 1994 tensions and passions inherent in a situation irreconcilable interest conflicts, but they can The clanger exists of a I O-year struggle which has claimed the threaten the fabric of society by inhibiting that conflict in lives of thousands of people on both sides of economic growth and cooperation. The KwaZulu-Natal will llie political divide. management of potential economic conflict is continue, and may the foundation of all sound economic systems. spill over into the ()uNide of KwaZulu-Natal, the IFP has government, representatives in only one provincial In South Africa the uneasy coexistence of destroying the parliament. The party leadership is unlikely nominal political equality with vast levels of national dialogue to view itself as a possible national economic inequality poses particularly severe siovei iiment in any future election, and this challenges to government. Conflicts between gives the IFP the incentive to cooperate as a business and trade unions, land owners and minor partner in the ANC-dominated squatters, and in general the haves and the C io\ eminent, while hoping that the have nots, always contain the threat of (jo\ eminent stumbles and creates new dramatic escalation. opportunities for the expansion of opposition support. This has been confirmed by the recent strikes in the retail sector, where passions raised Mill llie logic of cooperation created by the were disporportionate to the actual issues balance of forces at the national level may be involved. Policies such as affirmative action, ovcrlurned by the dynamics of personalities privatisation and land reform are particularly or by the negative dynamics which may flow explosive. from unresolved regional conflicts.

'I'lie danger exists that conflict will continue • Political conflict in the region and that these conflicts may spill Although politics is about conflict, successful o\cr into the GNU, destroying the national democracies have discovered mechanisms to dialogue. Tragically the reverse dynamic ensure that conflicts do not reach a level The uneasy does not exist: cooperation at the centre does where the stability and even existence of the coexistence of not seem to influence regional conflicts. political framework itself is under threat. nominal political Political contestation is restricted largely to equality with vast policy outcomes rather than the nature of levels of economic Conflict politics itself. inequality poses particularly severe Politics is about conflict and democracy can In South Africa a legitimate framework has challenges to be viewed as a mechanism for resolving yet to be created. The ability of a GNU to government conflicts peacefully. One consequence of our contain destructive conflicts remains 'uhuru' elections is that the conflict issues are uncertain. The division and sharing of powers blurred. between the different levels of government has yet to be determined. And the vital Because the election was between the 'old machinery of state will have to meet the order' and the 'liberation' party, both the challenges to its efficient functions from new ANC and the NP represent constellations of political elites, ambitious state policies and disparate and perhaps irreconcilable interests. affirmative action programmes. When the great realignment takes place, what will the conflicts be and how will they be expressed? Prospects In this article I have tried to provide a 'road • Ethnic conflict map' rather than a predition of our future. We Of all the potentially destructive conflicts cannot yet answer the key questions I raised which may tear a society asunder, ethnic about stability, democracy and rationality of conflicts are the most difficult to manage our future polity and policy. Even a cursory On balance the successfully. Because ethnicity is at least look at the potential for conflict in our society omens are partly determined by contextual factors, can only make even an optimist cautious. encouraging. We conflicts based upon ethnic factors can take have survived a several forms. However, on balance the omens are encouraging. We have survived a difficult difficult transition In South Africa, ethnic conflicts could pit transition and a traumatic election in and a traumatic blacks against whites (the two society model) reasonably good shape. The power balance election in or could involve several less inclusive between the political groups is favourable reasonably good groupings such as Xhosa and Zulu speakers and the last four years have been useful in shape (the multi-national model). teaching all our political players some of the facts of our new reality.

• Economic conflict If we relate these factors to our earlier brief Economic conflicts do not necessarily entail outline of possible futures, the following

27 vimcs m 12 INDICATOR SA Vol 11 No 4 Spring 1994 27 vimcs m The political elites tentative conclusions can be reached. itself destroy political stability, but the end of coalition government would have every - incentive to The Rwanda option seems unlikely for encourage parties to place their own cooperate and several reasons. Firstly, the conflicts in South interests above any interest in stability Africa do not create the inevitability of and continuity. The inevitable tensions seem to have intractable ethnic, religious or racial conflicts. could undermine the system itself; learned the While the potential for such conflicts does unacceptable exist, they are mitigated by other factors such « Unwise state economic policies, based costs of as the absence of one numerically dominant upon a populism which sacrifices long unregulated ethnic community and the salience of term gains for short term applause. conflicts economic and other material issues. Policies of state income, expenditure and affirmative action are particularly In addition, the incumbent political elites vulnerable to populist expansion; and have every incentive to cooperate with other members of the political elite, and seem to « Mobilised special interests which have the have learned the unacceptable costs of power to ensure that their interests prevail unregulated conflicts. over national and weaker interests. It is possible that powerful interests such as The Zambian option also seems unlikely. the Congress of South African Trade Despite the socio-economic disparities in Unions will force a weak Government to South Africa and the possibility that a follow popular- but costly policies which majority of the population is rooted in Third destroy macro-economic balance and World poverty and deprivation, the state and harm the interests of the least privileged, society seem to be firmly under the control of and hence weakest, sections of society It is difficult to a multi-racial first world elite. such as the unemployed and rural envisage peasantry. circumstances While it is probable that Third World under which the influence will increase, it is difficult to One factor does give rise to some concern: First World envisage circumstances under which the First the absence of an alternative government to elements could be World elements could be dislodged. South the ANC. Good government demands a dislodged Africa differs from almost all its neighbours strong opposition. While the present balance precisely because its First World component, of power is a good beginning, it is difficult to both black and white, is so large and firmly see which of the existing parties could entrenched. provide a credible future alternative to an ANC Government. The Singapore scenario also seems unlikely. The prospects for economic growth are It is unlikely that the NP, with its historical relatively modest and the size of the Third legacy as a white Afrikaner party, can World community, coupled with very high achieve significant black support. None of birth rates, makes the rapid growth of First the other parties, including the IFP, DP and World elements unlikely. The PAC, seem to have significant growth legacy compounds the problem because it prospects. The interim constitution makes it makes adopting economically optimal difficult for party rebels to split because to do policies politically unviable. so would force them to resign from Parliament. The most likely future is therefore going to be along the road of bumbling towards a As a result, despite the desirability of a great mixed First World-Third World society. This realignment away from the present system- road contains many dangers but seems to versus-struggle party alignments, it is lead towards the gradual strengthening of the difficult to see how this could come about. First World elements of our society. The And unless it does, it seems unlikely that the major dangers include: ANC majority will be seriously threatened.

@ The incapacitation or death or President Managing change is never an easy task. Mandela; Managing change in a democracy is even REFERENCES more difficult to do successfully. However, Lipset SM (1960) Political • The legacy of the past which new the record of our leaders and communities in Man. Doubleday, NY Huntington S (1991) The institutions such as the Truth Commission adjusting to change is almost miraculous. Third Wave. University of could politicise with potentially Oklahoma Press. destructive consequences; Even five years ago, few of us would have Bergsten CF (1992) The Primacy of Economics'. believed our society had the capacity to Foreign Policy, Summer « Breakdown in political cooperation. The adjust to the radical changes which have 1992 No 87. GNU is only a mechanism designed to recently taken place. Yet we have done so Collingsworth T et a\ (1994) Time for a Global achieve a level of inter-party cooperation reasonably well. The biggest challenge now New Deal', Foreign Affairs and ensure lliat the political system is not lies ahead of us. We will not get another Vol 71 No 1 endangered. Its breakdown would not by second chance.

12 INDICATOR SA Vol 11 No 4 Spring 1994 27 vimcs m NEW OpposiiioN

ByAlfStadler Department of Political Studies, University of the Witwatersrand

South Africa has gained democracy but lost a vibrant opposition culture. Liberation and union leaders are in Government and the Democratic Party has withered, leaving workers, splinter groups with unmet expectations, the marginalised and disenchanted whites to lead the creation of a new opposition.

pposition to the Government of The ANC is by no means unanimous even on I National Unity is likely to be important issues of policy, as the differences Opposition to the ' fragmented and marginalised. It between Minister of Housing Joe Slovo and new Government will be prone to spill over into PWV Premier shows. will be intrinsic in resistance. It will find difficulty in being politics as the accepted as legitimate, and will possibly be However, as it changes from being a broad burden of the past deeply divisive. church to a political party, the ANC can legitimately expect its own MPs and continues to weigh It may pose disturbing moral issues to the administrators to conform to the broad lines on the present Government insofar as it reflects interests of national policy and to refrain from engaged in the liberation struggle. Leaders criticising the Government in public. may use descriptions like 'dissidents' and 'criminal elements' to dismiss or disguise the The creation of the broad consensus on which problem. the GNU rests involved reproducing as wide a range of elements within it as are present But it will be intrinsic in the politics of the outside, except for the far right which so far new South Africa as the burden of the past has proved unassimilable. continues to weigh on the present, and as new lines of social and political formations The intention behind coopting or emerge. incorporating potential critics and opponents - socialists, populists and resolute regionalists like Minister Mangosuthu Buthelezi - within the Government was to inoculate the body Topsy turvy politic against similar, but potentially more Since 1992, South African politics has gone dangerous groups outside. topsy turvy. Of the liberation movements, the African National Congress (ANC) is now the party of government - though perhaps not yet Extra-Parliamentary able to control state power - and the Pan Alricanist Congress is in disarray, more Because of the very breadth of the coalition likely to be a client than a critic of the present in Parliament, one must look for the The intention Government. opposition outside. Some of it will possibly behind coopting be located within groups which supported the opponents into the The former enemy of the liberation struggle, ANC in the election, though probably at grass Government was the National Party (NP), is part of the roots level rather than within the elites. to inoculate the Government of National Unity (GNU). The body politic Democratic Party (DP) has given ample What this may mean over the next few years against more evidence that it intends to play the role of a is not easy to determine: opposition in a dangerous groups very critical parliamentary opposition in democratic South Africa is a largely outside textbook style. But with only a handful of unchartered terrain. Many groups which MPs, it can hardly land body blows on the opposed apartheid during the 1980s are now Government. major actors in the new regime.

27 vimcs m 12 INDICATOR SA Vol 11 No 4 Spring 1994 27 vimcs m Cosatu's cooption Associations and organisations based in up public space and challenged the authority into the community and workplace - civics and of tribal chiefs. But the civics there have not Government has unions - were important elements in the yet established a democratic practice. undermined its opposition to white power and were capacity to act instrumental in initiating the transition to a The assimilation of civics into government effectively on democratic government. They are may undermine such delicate experiments in democratising rural areas, particularly if the behalf of its especially vulnerable to having their leaders incorporated or coopted by the Government concedes to pressures from interests Government. traditional leaders for special representation. If this happens, the civic project could be Several now hold high political office, partly smothered under the weight of traditional or as the reward for the part they played in the other non-democratic interests. struggle. Jay Naidoo left the Congress of South African Trade Unions (Cosatu) to Of course it was not even certain that civics become responsible for the Reconstruction would remain committed to the democratic and Development Programme (RDP), taking project once the ANC won power in Bernie Fanaroff with him. communities. Lisa Klein's study of the civic association in Ratanda, Heidelberg, suggests The consequences of Cosatu becoming a that it was instrumental in opening up public central element in the new Government, and space for political contestation. of the loss of their most gifted leaders, has undermined the confederation's capacity or But its objective in doing so was to control willingness to act militantly or even that space rather than to generate effectively on behalf of the interests they opportunities for permanent contestation. The represent. purpose was to ensure ANC hegemony, not to generate the conditions of uncertainty The intention to When the Government defended the recent which define democratic politics. bring civics into large hike in the petrol price on the specious government might grounds that it was necessitated by a have deleterious deteriorating exchange rate, Cosatu was Ngo's and media consequences for silent even though its members would be the democratic seriously affected. Non-government organisations are likely to project be given an active role in government. This This contrasted markedly with the has attractive features because they can confederation's militancy when the previous supply many elements of much-needed government put up petrol prices late last year. expertise and organisation. But this has not put a break on militant working class action, and may have But it also reduces the potential of encouraged it. authoritative independent groups, possessing technical, financial and administrative resources, to challenge the government when Civics it makes mistakes or permits corruption. Similarly, civics were major actors in the The media has largely rallied behind the new struggles of the 1980s which contributed Government. The acquisition of the Argus markedly to shifting the balance of political Group by the international O'Reilly empire is power in favour of a democratic outcome. likely to soften criticism of the Government from this now hegemonic quarter of the print Civic leaders who remain active in local media. politics will probably enter local authorities. Many of the structures of South Africa's The South African Broadcasting Authority resurgent civil society in the 1980s will has continued without missing a beat to The media has probably become involved in government or, provide the model of political correctness in largely rallied at most, subside into quiescence. the new South Africa that it provided so behind the new loyally in the old. Government President has stated his intention to bring civics into the service of It is likely that the most outspoken media government. Such a project is criticism of the present government will understandable, but it might have deleterious continue to come from papers like the Weekly unintended consequences for the democratic Mail and the Tribune, which have made project in South Africa. uninhibited assaults on Minister of Defence, Joe Modise, while the 'mainstream' press Sam Mkhabela's study, Democratisation in remained silent. Their courage bore results - Rural South Africa: the Case ofMarite, the interdict against the Weekly Mail was 1986-1993, concluded that the emergence of withdrawn. We do not yet have a civics in rural areas of the Transvaal opened Government which ignores criticism.

12 INDICATOR SA Vol 11 No 4 Spring 1994 27 vimcs m Other elements of a new opposition are likely The labour New opposition to form around the peripheries of political movement has However, we have not seen the end of society, among groups who were begun to display opposition in South Africa. The political marginalised under the old regime. It is also the potential for struggle for access to resources, for dignity likely to include groups who will be unable to forming an and for identity did not end with the election gain access to resources to which liberation opposition to the and the inauguration of a new President. and policies like the RDP led them to believe Government they were entitled. In some ways these struggles may have only just begun, and might intensify as the gap Strikes by civil servants and policemen in between popular aspiration and governmental former homelands, despite criticism from the capacity widens, as long suppressed and Government and (probably) unsupported by newly awakened interests discover that the organised labour, reveal the emergent new Government's agenda might not militancy of workers in territories where coincide with theirs. labour was repressed longer and more successfully than in metropolitan South Africa. Workers As John Kane-Berman pointed out in the There has been an almost continuous wave of Weekly Mail's June 17 issue, the homelands strikes in almost every sector of the economy enjoyed fewer benefits than any other regions this year. Twice as many man-days have been in South Africa during the apartheid era, and lost through industrial action so far in 1994 as they are likely to continue to be the least during the equivalent period in 1993. benefited in the post-apartheid society.

Organised labour remains committed to the The emergent opposition will probably be alliance between the ANC, South African disadvantaged by the elevation of the The possibility of a Communist Party (SACP) and Cosatu, and ANC-SACP-Cosatu alliance and the civics new labour party the Government has tried to maintain a into the ranks of the new establishment. This forming ought not neutral stance. However, strikes like that at opposition is likely to manifest itself in to be dismissed Pick 'n Pay, when police took action, 'problems' for the Government, rather than clearly reveal strains in the relationship.The articulate and organised criticism. labour movement has begun to display the potential for forming an opposition to the Government should strike action continue at present levels. Squatters The new government faces many such Wage restraints, or wage increases linked to problems. Central and regional governments productivity improvements, are likely to will find, as previous governments and local become an ingredient in attracting foreign authorities have for half a century past, that investment and providing the conditions for squatters pose an endemic problem. For each successfully implementing the RDP. solution by way of providing low-cost sites or housing has a way of attracting fresh waves The Desmond Krogh episode at the of settlers from the vast sea of poor people. Development Bank of Southern Africa suggests that the RDP has become the Local authorities responsible for housing and shibboleth of the Government which public health worldwide have found that establishes the division between 'us' and illegal land occupation poses extraordinary 'them'. Confrontation is not unlikely between problems, for squatters cannot afford to the GNU and organised labour, even though respect the principle of queuing for housing, Jay Naidoo's masterminding the RDP might nor share the petty-bourgeoisie values of help ease relations. householders. The emergent Public sector workers have not yet embarked Squatters are likely to precipitate conflicts opposition is likely on industrial action on a large scale. When within urban black communities as well as to manifest itself in they do the problem will escalate massively. reinforcing existing ones between them and 'problems' rather white peri-urbanites. Some of these problems than articulate and It is also possible that union militancy could are legacies of apartheid, others arc organised criticism generate cleavages within the labour ubiquitous features of the world we live in, movement, especially between relatively unlikely to disappear on a wave of optimistic well-paid and secure elements which rhetoric. predominate in the union movement on the one hand, and the marginalised and un- and Squatting has been with this country, and under-employed on the other. The possibility many others, for most of the century. It is of a new labour party forming ought not to be especially prevalent when opportunities for dismissed. mobility are opened up, when poor people

INDICATOR SA Vol 11 No 4 Spring 1994 15 P®(LOVO@^IL IfCSBOSOS Marginalised seek opportunities to glean precarious For this reason, unemployed and groups are likely livelihoods in urban communities, where inadequately housed people are vulnerable to to respond in little, there are no housing markets that cater for the being exploited, economically and politically, poorly organised very poor and where the supply of state by petty political bosses who can deliver episodes to housing lags behind the need for it. relief for their most pressing and urgent populist leaders political needs. The marginalised Whites Prisoners are another marginal community, usually rendered invisible, who began to Perhaps after the current euphoria evaporates, display a political identity as liberation whites will begin to form a new opposition. approached, and thereby to reveal another Whites are experiencing loss of identity and fissure in the interstices of the new South dignity most acutely as a white skin becomes Africa. They have of course gone on strike in an impediment. They will probably become the past, but never with so coherent and increasingly visible among marginalised plausible an interest to articulate. elements.

Prisoners protested before and after the The white right is of course a familiar feature election: their case has been poorly stated and of opposition politics. But it is experiencing their methods have won few friends. But they the trauma of changing from an influential expressed a telling critique of the social and hardline minority in a decaying white political order in which generations of people hegemony to become a fraction of a minority. turned routinely to crime in the absence of alternative opportunities. Its political claims and forms of action are adapting to the new situation. The claim for a It is probable that Another dimension of the emerging volkstaat has arrogant features, such as not white interests, cleavages may be gained from episodes such defining the rights of blacks within the almost certainly as the campaign conducted by the volkstaat, but it is fundamentally an within a non-racial Non-Admitted Students Congress in the admission of defeat. alignment, will northern Transvaal, to gain admission to begin emerging teacher training colleges after 90% of those But whites might develop alternative, more who sought admission had to be turned away. effective ways of protecting their interests than the archaic formulae offered by These instances suggest that marginal ultra-conservatism. elements will frequently be fragmented and inarticulate, resembling, like squatters, the It is probable that white interests, almost tail end of a queue of people who do not get certainly within a non-racial alignment, will served rather than coherent and well begin emerging. They will have little or organised pressure groups. nothing in common with traditional white parties, but will seek to express those Within the former homelands, KwaZulu interests which are not represented by presents extraordinary problems because of existing parties. the difficulty of establishing a coherent provincial government there. Significantly, This is likely to happen within the framework the location of the provincial capital, quickly of non-racial political movements. The NP resolved everywhere else, has dragged on. began carving out such a terrain some time Confrontation between the province and ago, with considerable success. central government remains possible. But it carries a great deal of ideological The actions we have reviewed do not baggage from the past, is hampered by its commonly produce coherent political fat-cat image and may be encumbered by the organisations. The marginalised and very role it plays as part of the Government. poor are difficult to organise. Unemployed people are the most difficult and the least The DP may find that its long term future lies attractive to unionise. in this direction. But they and the Nationalists will probably be disadvantaged by the Such groups are more likely to respond in ideological eclecticism of the ANC and by little, poorly organised episodes to populist the necessity forced on interest groups to pay leaders - themselves often marginal in the service to the idea of national unity. END NOTE social and political order - who can offer The studies by Mkhabela and Klein were presented illusory quick fixes rather than coherent These parties were, for all their differences, as BA Honours programmes of reform. The most coherent privileged elements in the old South Africa. dissertations to the Department of Political reform will in any case bear the They will need to change in order to operate Studies, University of the Government's imprimatur. effectively in the new. Witwatersrand, in 1993.

12 INDICATOR SA Vol 11 No 4 Spring 1994 27 vimcs m New ChallengeS

By Bobby Godsell Executive Director, Anglo American Corporation

South Africa needs economic growth, increased competitiveness and productivity, and broader worker participation. It also requires balance between reconciliation and dissent, partnership and pluralism. Consensus should be mobilised around national goals, but the means must be vigorously and openly debated and new relations forged betwen government and civil society.

here are still days when I can again be tempted to fake a New Zealand hardly believe that it happened. I accent. have lived so long with the San We not only have A ndreas fault of South African Yet this side of heaven nothing is ever quite a new country, but Tracial conflict. It seems hardly possible that finished, or ever quite established. South each one of us apartheid has gone. Elections have Africa, in the words of Robert Frost, still has has a set of new happened. A new democratically elected identities government is in place. promises to keep, and miles to go, South Africa has rejoined a range of before I sleep. international organisations, including some I didn'i know existed. Our new flag flies not onl\ al ihe United Nations, the Organisation The economy of African Unity and other important places but. probably even more significantly, on the There is only one way that the legitimate and minilnis laxis and BMWs that ply our urban desirable aspirations of our nation of nearly freeways. 40 million people can be met. We have to grow our productive economy to between Nelson Mandela, Mangosuthu Buthelezi and four and five times its present size: that is, an Coiisiaml Viljoen debate each other in around R600 billion has to become a R2,5 Parliament. A miracle has happened. trillion to R3 trillion economy. Armageddon must wait. This is a difficult but in no way impossible Nor is this miracle a once-off high. While the challenge. It will require around 25 years of wonder (and the fatigue) inevitably fade, growth rates of 5% to 6% per annum. some new realities persist. We not only have a new e< mntry, but each one of us has a set of Growth can only be achieved by enhancing new ideniilies. the inherent competitiveness of the South African economy. In the Uruguay round of I can delight in the white, male, English the General Agreement on Trade and Tariffs speaking identity which God ordained for (GATT) negotiations, South Africa joined the We have to grow |ne. 1 ean do so without either hubris or guilt world's trading nations in a commitment to a our productive in respect of my fellow not white, not male, more open global market place. economy to not Knglish-speaking South African between four and eonip;itrii)is. I can also delight in a new The consequences are profound. In simplistic five times its national identity: truly national for the first terms tariff barriers must be reduced to no present size time. In New York taxi cabs I will never more than about 30%, or a third of present

12 INDICATOR SA Vol 11 No 4 Spring 1994 27 vimcs m more output from the same input. Again this is a stiff but not impossible challenge. Also, it is everybody's challenge. From bankers and brokers and deal makers to managers and trade union leaders, to shop floor supervisors and workers.

Compelling cases can be made for a revision of workplace hierarchies, for a shift to multi-skilling, for greater workplace flexibility. This will require broader and deeper worker participation at many levels o(' workplace decision making, and an expanded agenda in collective bargaining.

This will require managers to share power and workers and their leaders to assume greater levels of responsibility. Just as politically the flag and anthem have become the property of the whole nation, so too the workplace must command a loyalty across the divisions of hierarchy and race.

Political promises Of equal importance with the major economic challenges are two critical political challenges. In each case these challenges involve striking an appropriate balance between two competing thrusts of political culture.

• Reconciliation and dissent Every South African must be thankful for the spirit of reconciliation that has been built in our country in recent months and years. From the magnanimity of FW de Klerk's statement conceding the African National Congress (ANC) victory to President Mandela's insistence before a crowd of thousands on singing Die Stem.

A Government of National Unity was almost certainly needed to build a bridge from a levels. Non-tariff barriers, including many white Afrikaner oligarchy to a pluralist forms of export promotion schemes, must be democracy. Yet politically the country needs phased out. more than inter-group reconciliation. It needs, indeed it urgently requires, a political Though South Africa's GATT offer poses culture that can resolve intense conflicts of The country needs probably the most fundamental interest. more than competitiveness challenge industry here has inter-group faced this century, if it can be met then the A culture that can make tough choices. A reconciliation. It benefits for South Africa will be immense. culture that can timeously change its mind urgently requires a and correct mistaken directions. This in turn political culture Cheaper domestic goods, better quality and requires choice, and choice necessitates that can resolve new international markets will constitute a debate. Debate requires opposing views to be intense conflicts of high road to sustainable growth from which aired. In a word it requires dissent. interest every South African, from Johannesburg's northern suburbs to the furthermost valley Already there is grounds for concern here. hamlet in Ingwavuma, will benefit. The Reconstruction and Development Programme (RDP), at present still the The competitiveness challenge can only be election manifesto of a political party, is met if we can improve the productive being elevated to the level of a civil religion. capacity of the economy. This simply means Adherence to it has become the litmus test of

12 INDICATOR SA Vol 11 No 4 Spring 1994 27 vimcs m Government faces a fundamental choice as to A second tension how it will exercise its sovereignty. In simple terms it can govern with or over its electorate. that must be managed is that F )!• the National I'aity and Jnkatha Freedom Where the Government requires more than between p-irtv an acntc dilemma exists. How can you compliance, rather cooperation from civil cultivating lnoose in Parliament that which your leaders society, it needs to build a basis of support in partnerships and Inve agreed in Cabinet? It is the dilemma, of society's non-governmental actors. These the need for course, of all coalition governments. Yet it is actors need to support the goals, debate the pluralism

,in Cven urcalcr dilemma for a means and recognise where tough choices constitutionally induced coalition. have to be made.

The tension between cooperation and dissent An additional advantage of a governmental is fundamental: it cannot be finally process which accommodates such dialogue 'resolved". It can. however, be managed. We between government and society is that need to mobilise national consensus around governmental decision makers become armed broad national goals. with a more accurate sense of the consequences of their actions. They know Growth and development goals can be that if they legislate X, the societal response formulated for e\ cry aspect of our society will be Y. which can command broad stakeholder support. We need, equally, to cultivate a vigorous debate about means. That is the realm where dissent is not only permissible New relations but vitally required. This is the duty of loyal What such a process of governance requires opposition. is a set of relationships between government and society. Relationships in which a dialogue can take place about public policy Governance J Partnership and pluralism and its consequences. requires is a set of A second tension ilial must be managed is relationships that between cultivating partnerships, or an This does not imply permanent alliances between inclusiv e political process, and the need for between anyone, only regular discourse. In a government and pluralism. healthy, plural society government, business society in which a and labour (to mention but three of society's dialogue can take This point ean he illustrated by examining the important interest groups) will agree and place about public future of llie Inrum phenomenon. South disagree with each other depending on the policy Africa has enjoyed ;i Prague spring in which issue on the table. forums ha\ e been created through the length and breadth ol the land, and about almost In some cases parties will acquiesce where ever) conceivable aspect of human affairs. disputes emerge. In other cases they will seek Some commentator predicted the imminent active opposition. The more public the debate formation of a Coca-Cola forum. the greater the constraint of corporatist horse-trading. In the end a free Press and a Some, regard this 'forumitis' as nothing more multi-party political process are the most than a symptom of transition. The efficacious protections of the public interest. government in transition was illegitimate. It could not take decisions. Therefore What is true of the debate about the future of alternative structures had to be created. That forums is as true of the relationship between is a thing of the past and so too, goes the the executive and legislative wings of argument, are forums. government. It is as true of the relationship between Cabinet and Parliament. It is as true Others dispute this. Proceeding from a vision of the tension between 'national strategies' in v. Inch democracy means more than the and autonomous institutions, such as light to vote in a government once every five universities. Striking the right years they seek, essentially, cogoverning balance between rights. Elements of both views can and Many commentators now assert that true reconciliation and should be reconciled. democracy is impossible without active civil dissent, society. Striking the right balance between We have a sovereign government. It is the partnership and these two political tensions - reconciliation pluralism, will final arbiter of the public good, and in the and dissent, partnership and pluralism - will determine whether realm of public policy it has, and must have, determine whether South Africa's vigorous the final word. Yet it seeks to govern a civil society will blossom or wither in the civil society will complex, plural society. The current new era. 0©as blossom or wither in the new era

INDICATOR SA Vol 11 No 4 Spring 1994 21 ®BVK!!,©P>fifiBCStf reiSKjOg A Security Policy

ByBHISass Institute for Defence Policy

If there is one clear policy which identifies the Government of National Unity it is commitment to the Reconstruction and Development Programme. But a long term national security policy is needed to balance it. Without this there will be confusion among security agencies and the success of the state administration - and the RDP - will be in doubt.

Security agencies his year's budget compelled Welfare and stability take a long time to security departments to sacrifice develop and are funds to implement the Security agencies take a long time to develop expensive. But the Reconstruction and Development and are expensive, as the problems of the TProgramme. While the budget is being cut, National Peace Keeping Force proved. But alternative is for individuals to arm the South African Police Service is to be the alternative is for individuals to arm and themselves restructured into a national force composed protect themselves, as events on the East of a specialist wing of expert branches and Rand and elsewhere illustrate. a paramilitary wing carrying out public order policing, border control, protection of The RDP, no matter how noble its aims, will people and places and a Special Weapons not succeed unless violence is stabilised, taxi and Tactics team. wars are controlled, hostel are pacified, personal vendettas are eliminated and the Nine provincial police services are also being flood of illegal arms into the country is halted. established, requiring the integration of the former South African Police with the 10 Good welfare for all is only possible if the police forces of the former , state is secure, safe and stable. A National Bophuthatswana, Venda, Ciskei and the six Security Policy (NSP) should compliment the The RDP, no self-governing territories. RDP and create a stable climate for welfare matter how noble to flourish. its aims, will not The National Defence Force (NDF) is also succeed unless integrating with the statutory and violence is non-statutory defence forces. This process Drafting security policy stabilised will result in a standing force of about 120 000, which will be rationalised in future In the days of the 'total onslaught' national to 90 000 full-time members. In addition to ' security policy was drafted by the Secretariat these demands, the security problems facing of the State Security Council, and execution the South African Police Service (SAPS) and of policy was monitored by the Joint the NDF have not diminished. Management Centres.

An examination of the present security The President has indicated that the State situation begs the question: where is the Secuiity Council is to be replaced in dealing security equivalent of the Reconstruction and with security and intelligence. Existing law, Development Programme (RDP)? What however, still provides for specific ministers guides the long term planning of security and civil service heads of departments to departments and where will they be in 10 form the Council. Representatives from these A National years time. departments could provide the basis for a Security Policy working group. should And on what basis did the Minister of compliment the Finance reject the forecasts of the Generals To this group must be added provincial RDP and create a and cut the budgets of the security representatives, the defence industry and stable climate for departments - the NDF by R650 million and Armscor, the Department of Finance, and welfare to flourish the SAPS by R200 million - for 1994/95. representatives from the applicable Joint

Petuwefi^ \r [5 !;[•?& 20 INDICATOR SA Vol 11 No 4 Spring 1994 including Foreign Affairs, Labour, The RDP needs to p-irli'imenian SKiiuiiin: C on.MMitee. u* NSP musi Iv »| vn to scrutiny Finance, and Mining and Agriculture address violence .,„d debate anil finally Parliament's approval. (which are the largest employers of directly and clear migrant labour including legal and illegal policy is needed crosses). Indications are that this problem for a permanent i set to escalate. provincial police Aims of the NSP presence (•'our uowN illustrate the need lor a To integrate, rationalise, restructure and coordinated naiion.il scaim> |>lan. They ai'e: organise the security forces in order to achieve maximum professionalism and To reduce and climiuaie internal violence, acceptance by the public. The NDF, both political ami criminal. 1 he SAPS and National Intelligence Service rcsponsihililv forcrailirjiins1 the roots of are all embarking on restructuring and violence rest with the security and welfare integration, but little clarity exists on the departments. The scoiriiN lorces can requirements of future strengths, weapons, stabilise an area but (hi- iua> prevail only equipment or budgets. while lhe\ arc present lo enlorce it. The ROP needs lo audie— \ ioh.-nce directly Given the shortage of police to deal with and clear polic) is ne.-iled I«»i" a permanent violence one would expect the SAPS to provincial police presence. expand. Instead it is the NDF which is increasing, although it faces South Africa is at present under-policed. rationalisation in the future. To the There is rcpoilcil lo Iv a shortage of uninformed, recruiting thousands of 14 000 police lor the l'WA alone, which unwanted members into the NDF, is one the most violent provinces in the training, equipping and administering them so that an equal number can be country. The challenges facing the SAPS The security must be translated into the objectives of retrenched in three years time, appears to forces are all the relevant provincial departments as part be a waste of money. embarking on of the NSP, or nothing will be done. As South Africa approaches a total restructuring and To effectively control entry to South population nearing 80 million by the turn of integration, but Africa at border posts and along the the century, the numbers of policemen little clarity exists borders to prevent entry of illegal required in each province and in the central on future immigrants or border crosses, particularly force must be determined. Given the present requirements gun runners, drug smugglers and poachers strength of 25 000 in the PWV and a operating under the screen of refugees. shortage of 14 000, this province alone This a problem for the whole country. should aim for between 60 000 and 80 000 policemen by the year 2000. These and Many departments besides the security countless other issues need a coordinated forces and the provinces are involved, response from the Government.

23 INDICATOR SA Vol 11 No 4 Spring 1994 23 ®BVK!!,© P>fifiBCStf reiSKjOg Provinces must • To be ready to assist or conduct United None of this will come about, however, determine what Nations (UN) or Organisation of African unless provincial premiers support the idea q their security Unity (OAU) peace-keeping or and begin developing strategies to achieve i, problems are and humanitarian operations if called on to do and maintain stability and security in the (_ how to deal with so. Current NDF priorities are likely to provinces. Once these strategies are clear, these now and in remain support of the police in both they can be coordinated to form the basis of L internal peace-keeping operations and the NSP. the future c border control. ( I The constitution provides for international Why the NSP? i peace-keeping operations as a possible task for the NDF, and a clear policy in The end of apartheid has created respect of UN and OAU support is opportunities to stop confrontations between necessary. If South Africa is to be seen as the state and organisations seeking a leader in Africa, such involvement will democracy. But it has also ushered in a at some time have to commence and the period of uncertainty and instability. There is NDF and Foreign Affairs departments no longer a well defined threat embodied in need guidelines in this regard. an adversary, but rarely has there been such strong sense of insecurity in South Africa. We must act collectively as citizens of this Where to start country to ensure a safe future. The obvious place to start is at the provincial One of the measures which this requires is a level where the problems are most critical. consideration of the country's security policy Provinces must determine what their security for the years ahead. Such a policy must problems are and how to deal with these now prescribe objectives along with time frames It should be and in the future. Certain areas need urgent and budgets. This is true of personnel, whose possible to attention and must serve as the basis for training and professional life extends over establish the planning at national level: decades. major parts of well trained forces by ® The planning and prioritisation of the It also applies to equipment, which has a long the end of 1996 future of each provincial force must be cycle of production and utilisation. Weapons agreed upon and made known to the and equipment which will be used in 2005 to public in each province. 2010 must be chosen and designed now, in accordance with operational needs, ® Funds and facilities for integration must technological and industrial capacities and be identified and allocated, and future financial resources. budgetary limits determined. To be effective and credible, the security • All forces which will contribute personnel policy must also have national support and must agree on the entry criteria for participation. Security is a collective act. The members. Their own members who are circumstances, the threats and the risks have offered for selection must be determined changed and the debates around new security by name and informed of future strategies must be exposed to the public. The arrangements, especially in respect of pay. message that peace is indeed the dividend of good security must be shared. ® The SAPS, probably with international supervision and assistance, must prepare The NSP should cover the period until the to train or retrain members. decade starting in 2010 and beyond. This is certainly a difficult objective for strategic » The NDF and SAPS can prepare to hand analysis. It is, however, indispensable to over weapons, equipment, bases and eliminate the inertia that inevitably weighs on To be effective vehicles. The administrative branch of the defence effort to improve because of the and credible, the each provincial force which handles pay longterm investments required in human and security policy logistics, ratios, uniforms etc will have to especially material resources. must have be established to take over before the national support main force can be accommodated. It is imperative that the NSP is true to the and participation. country's requirements for security. Like The message that It is essential not to force the pace in the the RDP it must be aimed at the citizens of peace is the build-up of these provincial forces. Allowing South Africa, and those whose daily task is dividend of good enough time for administrations to be the security of the country. From the security must be established and members to be retrained, it policeman on the beat to those elected by shared should be possible to establish the major the nation, there can be no credible security parts of well trained forces by the end of without the support of those who conceive 1996. Hie NDF should plan to withdraw it, serve it, and who are the origin of its from internal operations in December 1996. making. P8&

12 INDICATOR SA Vol 11 No 4 Spring 1994 27 vimcs m ECIIRING THE FUTURE

By Jakkie Cilliers Institute for Defence Policy

_ tn Afnca 'S discredited and demoralised police force, and its over-burdened defence force, will I p unable to cope with the massive challenges that face the country. A security crisis is looming. It is time for politicians, the military and the police to accept that a national security policy - and a comprehensive restructuring of the total security architecture - is needed.

outh Africa (us made fundamental foreign affairs has been established. A ^^ strides in recent years in the field of civilian Ministry of Defence and civilian We should look at saleK and security, but much Ministry of Safety and Security will both the division of ILz remains to he done. In particular we soon be in place. functions between should look at the division of functions the police and the between the police and the military and the Both the National Defence Force (NDF) military and the responsibilities lor public order policing and Armscor have made great strides responsibilities for and border sccui il>. towards increased transparency and public order communication and the Police Services policing and Bill has been widely circulated for comment. border security Achievements Discussions have begun regarding The scene has been set for much greater regional stability as a necessary partner to coordination and effectiveness in the security development. South Africans should, sector. Several areas deserve mention: however, carefully consider the practical implications before joining a regional The impetus for politically oriented security alliance in the manner recently violence has effectively been removed proposed by the South African through the establishment of a legitimate Development Community (SADC) in Government. Although pockets of Windhoek. intransigence may still exist, such as with die-hard right secessionists, they are of link.- more than nuisance value. Police problems In the run-up to elections, arms flows to The South African Police Service (SAPS) gangs, youth groups, self defence units and the new Ministry of Safety and Security (SI )l 's) and self protection units (SPUs) face a number of important challenges. increased significantly, due in part to The military has political parties which used gangs to The existing 11 police agencies have to be designed a ovale 'no-go' areas for rival political amalgamated into one service. This will comprehensive parlies. This flow has now tapered off. involve the rationalisation of different system of personnel systems and policies. Whereas the accreditation, The integration of the military, to a lesser NDF has designed a comprehensive system adjudication, extent the police and (to an unknown of accreditation, adjudication, placement and extent) the intelligence communities are demobilisation at Walmansthal and De Brug, placement and proceeding apace, at least on the surface. there appears to be no parallel programme in demobilisation - While problems can be expected, on the the SAPS. but the police whole there is remarkable progress in have not integrating 11 statutory police forces, five This creates the impression that the SAPS statutory military forces, two will eventually comprise an amalgamation of non-statutory armed forces and then- all 11 existing agencies without any attempt associated intelligence structures. at merit assessment. This could mean the excesses of many of the former homelands The framework for a greater degree of will be perpetuated in the SAPS and the parliamentary oversight and public suitability of former SAP members will be scrutiny of defence, intelligence and unquestioned.

25 INDICATOR SA Vol 11 No 4 Spring 1994 25 ®BVK!!,© P>fifiBCStf reiSKjOg The division of » Only after the new police act has been a virtual ongoing saga of revelations, resources and passed can functions be devolved to the members of the former SAP have been functions at provinces. Thereafter the Members of the implicated in violence at the most senior national and Executive Committee (MECs) for Safety levels. and Security and Police Commissioners provincial level is in each province will nominally become Many people are leaving, recruitment of bound to become responsible for crime prevention, quality personnel is bad and the transit a bone of developing community policing, to community based policing in many contention and providing visible policing etc. townships has stopped due to the repeated confusion murders of policemen and women. The National Commissioner will, however, maintain central control over all These developments were recently resources to achieve these objectives. In brought to the boil by the ongoing dispute reality South Africa will still have a between the command levels of the Polio: highly centralised police force. Service and Police Officers and Prison Civil Rights Union. Little provision has been made for the devolution of meaningful powers to either Faced with escalating crime and umvst. the provincial Commissioners or the which would have taxed the capacity of relevant MEC's in the Police Service Bill the SAPS under normal circumstances, at present. The division of both resources police effectiveness has been undermined and functions at national and provincial massively by the crisis in morale, albeit level is bound to become a bone of possibly by their own hand. This is a contention and confusion in the months process which may be further drawn out ahead. by the deliberations of the Truth Commission. There are « Community oriented policing inherently 9 increasing requires a devolution of powers to the The Internal Stability Division (ISD) indications of a lowest denominator, particularly to station faces a crisis of legitimacy. It encounters crisis in morale, commanders as well as the establishment massive popular resistance in many parts of police-community liaison forums. leadership and of metropolitan South Africa. In the l -.asi Rand, for example, the ISD had to therefore It also implies that the police should be withdraw in favour of the former SAIM -. effectiveness demilitarised, the perception of an within the Police impervious police command structure Research by the Institute for Defence Service removed and a 'flatter' organisation Policy and the Human Sciences Research created, with fewer command layers than Council on the East Rand found the I SI) exist at present. All these endeavours are was perceived as neither effective n> >r challenging in themselves. Collectively legitimate. This legitimacy crisis afleei- they present a very ambitious the police as a whole and impacts organisational re-engineering programme. negatively on their reorientation to a community based style of policing. ® The SDUs and SPUs must be disarmed and brought under control. On the East Although legitimacy can bestow authority, it Rand the PWV government's plan is to is insufficient if not supported by an effective absorb SDU and SPU members into the and impartial execution of duties. Police Service, the Police Reserve and/or neighbourhood watches. These proposals The challenges facing the SAPS in transition have apparently not been met with are massive, particularly if the crises of enthusiasm by the SAPS. Some SDUs legitimacy and effectiveness are as bad as and SPUs may also be employed in 'catch this analysis suggests. The chances are slim up' programmes for pupils. that the Government will reduce its reliance on the military to support the police, despite This is clearly only a partial solution. A the unpopularity of this role among military The greatest large number of former SDU and SPU commanders and analysts. danger is that the members will neither qualify or desire NDF will become such a 'solution'. Together with former Support to the SAPS in internal law and 'overloaded' and Umkhonto weSizwe and Azanian order duties will remain a semi-permanent thereby set the People's Organisation Army members task of the NDF for many years to come. who do not form part of the NDF, for scene for South Africa would be wise to plan and whatever reasons, these people pose a prepare accordingly. unimaginable considerable threat to law and order. developments This analysis suggests the greatest danger is • There are increasing indications of a crisis that the NDF will become 'overloaded' and in morale, leadership and therefore, thereby set the scene for unimaginable effectiveness within the Police Service. In developments.

26 ©II ^ il Ik © t-IIR! If VtBBMIDg INDICATOR SA Vol 11 No 4 Spring 1994 ability of the NDF to rely on the Citizen • I ,r -I 1TT1SS1SC UCLIIIIC. Hi There could be a 1,1 PfS h vakdou n in discipline and the Force in times of crisis has declined rapidly massive decline in and is set to do so even further. operational standards, a VSeas it mav sound if the breakdown in SSgS foxing the NO! are considered. Border security discipline and the effective There is the amalgamation of the different The influx of refugees and illegal immigrants, and related problems, is an issue that will disintegration of S ory and non-stalutor> lorces .n itself a the military mivive undertaking: integration (particularly complicate the deployment of South Africa's tr nsofrace) and aflinrulivc action; the existing security forces. It will also make !lX «f ^ bloating to 130 000 and then massive demands on available resources and SmSy down si/iny. u. W 000 or less, the strain relations with neighbouring countries. ! indine forces: and movement from a manpower procuremcni s> Mem based on South Africa has long, poorly controlled borders. These are shared with Namibia, white male conscription to an all-race volunteer .system. Botswana, Zimbabwe, , Swaziland and Lesotho. There is also the imminent c->tablishment of a civilian Defence Secretarial: the appointment Premiers such as Matthews Posa have of a military ombudsman: (he creation of a recently expressed discontent over the effect powerful and pos>ibl\ inlrusive which a lack of border security is having on piirliamentaiy dcfencc committee; a changed efforts to stabilise and develop the Eastern strategic posture I mm ol tensive to defensive; Transvaal. More recently, President Nelson regional coopeiation a- opposed to regional Mandela visited Mozambique, partly in an confroiilation: demands on the armed forces attempt to improve coordination on issues to involve themselves in projects in support relating to cross-border crime and border of the RDP. and so forth. security. There is a threat These demands will inevitably have a Under a previous system South Africa built a that senior dramatic effect on combat effectiveness, 60 kilometre electrified fence with non-commissioned discipline and morale of the military, using Mozambique to keep people out. Up to 3 000 and middle Mozambicans have been forcibly repatriated former SAI )F standards as a benchmark. As ranking officers, per week and the number of migrants from the National Peace-Keeping Force case will leave the illustrated, ii takes months for individuals further afield is also rising. Force once the with very different backgrounds, standards economy improves and (raining to determine new procedures and Ghanaians have now established a small learn lo accept one another. Standards will colony in Hillbrow, and Zairois, Ugandans initial!) drop, possibly quite dramatically. and Zambians can be found in urban centres throughout South Africa. According to the SAPS there is an estimated one million Staff problems illegals in the PWV alone. At the same time there is the threat that senior There is an obvious requirement for a much non-commissioned officers and middle greater degree of vigilance along our borders ranking former SADF officers, the backbone than has been the case. Both aerial and of the conventional forces, will leave the ground surveillance need to be expanded. Force uikv ihe economy improves. Because of long distances, poor infrastructure, low population density and There has already been a steady flow of inhospitable terrain, a string of bases along quality pcr-,onnel from the former SADF and our borders are required. indication-* are that the stream may become a Hood. I his means the NDF could, for some Active patrolling can take place from these years, be substantially less effective than the day and night, in all weather conditions. The influx of former SADF. Controlled border crossing points are needed refugees will and extended powers of search and seizure in complicate the A more immediate problem is the future of border areas. deployment of our the reserves. The NDF, like the SADF, security forces, remains a Force composed of a much larger The question is, whose task will this be and make demands on component of (white) reserves than full time where will the money come from? In terms of resources and members. The response rates to call-ups has the constitution, border security is the dropped quite dramatically, down from 80% responsibility of the Police Service. In strain relations in the 1980s to about half that in the last year. practice it is usually the NDF which with neighbours White reservists increasingly resist the physically patrols the borders with the police reliance placed on them to bolster law and patrolling certain portions and doing the order duties in the townships. As a result the investigative work.

27 INDICATOR SA Vol 11 No 4 Spring 1994 27 ®BVK!!,© P>fifiBCStf reiSKjOg headquarters and 200 commandos/Rear Ar It is imperative The challenge Ca that attention be Protection Units These forces perform given to South African security priorities of the future essentially police type duties. will inevitably be those of internal stability separating and border control. The picture presented They represent a nationwide, established community based thus far is that of a discredited and infrastructure, ready for use, replete with policing from demoralised Police Service in the throes of a communications, buildings, vehicles and a public order massive transition without a credible public logistic supply system. This system could policing order force. readily form the backbone of a rural, part-time police reserve and a full-time The NDF has to stand in for the SAPS and border control and public order police ISD, but itself suffers all the trauma of organisation. transition and has a decreasing ability to rely on call-ups to augment its full-time strength. This may not be as dramatic a solution as j[ In addition, border security will require a first appears. It would allow the NDF (army, particular and a dedicated effort. navy, air force and medical services) io regroup and focus on their primary task. It A crisis appears to be looming in the not too would enable a budgetary distinction distant future. Two considerations should between internal law and order duties, border guide us in meeting these challenges: control, public order policing and military defence preparations. ® It is imperative that attention be given to separating community based policing Conventional forces would be freed to focus from public order policing. If the ISD's on their legitimate external defensive reputation is beyond redemption and is function. More importantly, this approach affecting the acceptance by the would remove the public order function from Border security community of the SAPS as a whole, a the SAPS and allow them to concentrate on and public order replacement will have to be created. being a community police service. It would policy, which are also release those members of the police largely performed • The SAPS will continue to rely on the presently deployed in a border security r< >lc for use elsewhere. by the military, NDF for support for many years to come. The NDF should be structured could be accordingly so as to limit the effect that This is a radical solution and would require a combined in one this reliance will have on the primary boldness on the part of the authoiities, not to organisation under function of the military, namely defence mention a constitutional amendment. Along the NDF against possible foreign aggression. with other options, this one warrants serious investigation. It will require South Africans Two functions are in search of a home in the to consider the building blocks for a national security forces: border security and public security strategy. order policing. Both are presently largely but not exclusively performed by the NDF. In terms of the constitution, both rightly belong with the SAPS. Conclusion Many past structures of South African One solution to this dilemma would be to society are being reconsidered. Change combine the responsibility for border security simply for the sake of change is dangerous. and public order policing in a single When dealing with institutions upon whose organisation, nominally part of the military. effectiveness the transition process depends, The French example of the Gendarmerie can' we need to proceed with caution. be drawn upon in this regard, where the police fall under the department of defence It is nevertheless time South Africa has a but act as decentralised rural and riot control hard look at the interrelationship between the police. various state and private sector security agencies. We need to challenge our Practically this means the ISD will cease to 'accepted' division of responsibilities and exist and a separate service arm of the NDF, state funds for security. such as the Army and Navy, is created which A comprehensive contains the territorial forces of the Army. Above all else, it is time that politicians, the restructuring of This force would then be made responsible military and the police accept that a the total security for public order (under provincial control), comprehensive restructuring of the total and border control (under national control). architecture is security architecture is needed. The country needs a national security policy. This will required. The The Army presently has an extensive provide better value for money, make our country needs a counter-insurgency organisation comprised lives in our homes and workplaces safer, and national security of 10 commands which cover the total provide security so that development policy national territory, divided into 40 group becomes possible. SPSS

12 INDICATOR SA Vol 11 No 4 Spring 199427 vimcs m Local Qovernment the Loser

By David Christianson Development Bank of Southern Africa

ral aovemment in South Africa is threatened with losing many of its powers. A distracted ntral Government, increased powers for the provinces, an ineffective framework for local Tansformation and self-interested bickering between local actors is delaying transition and creating animosities, with serious implications for the future of strong local government, development and democracy.

"W" "Tc have become accustomed to Secondly, development. More than 10 years % M / having high expectations of ago the World Bank made 'good Local government W W local government. Recently, government' the key variable in development could become so T » these expectations have processes. This elevated local government to disabled that even become enshrined in the Reconstruction a position of pre-eminence in development the most and Development Programme. The role flunking and struck a deep chord with mundane service allocated to 'local g<>\ ei nment in the RDP is extra-parliamentary activists. delivery and congruent vvidi conventional wisdom that regulatory has evolved and become entrenched over Finally, institutional pluralism. Where local functions will be the last few vcar-. government is able to carve out an impossible independent role for itself, it is able to act as a This pliilosophv holds ik.t strong local countervailing force against centrist government is the pertect vehicle for domination. This idea appealed to civic managing "people centred development' at activists as a mechanism for protecting local grassroots level. I low ever, as this article will democracy. It also meshed with an emerging demonstrate and .is almost any local international consensus. government piactitioncrs will currently agree, such a role is cnrivntlv under severe threat. Unfortunately, it also had considerable appeal among established interests, including the There is a grave daugei that not only will we National Party (NP), because it promised to not have strong, developmental local provide a mechanism for protecting the government but that the entire system will be interests of their constituency. There are three so disabled that even the most mundane primary service delivery and regulatory functions will, I believe that the tactical support for strong, justifications for in many cases, be impossible. autonomous local government from this quarter so devalued the concept in the eyes of strong local many in the extra-parliamentary movement government: that support for it became ambiguous. This democracy, Rationale reinforces another dynamic. development and There are three primary justifications for institutional strong local government. Firstly, democracy. pluralism I .ocal government is small in scale and thus usually responsive to the local citizenry. It Key actors was partly for this reason that local Because the impact of local insurrection was government became a 'holy grail' for the ultimately national, the problems of localities extra-parliamentary movement during the - revolving around inadequate urban struggle years. governance - were shoved aside while a national transition was negotiated. It was seen as a mechanism for institutionalising the locally mobilised Ultimate evidence of this was the exclusion democratic impulse that drove the civic of local government from the deliberations of movement and the United Democratic Front the national negotiating forum at Kempton Local problems (UDF). But with the unbanning of the Park until very late in the proceedings. The African National Congress (ANC), the framework for the new local government were shoved demise of the UDF and the shift in emphasis system was negotiated in the entirely separate aside while a to national negotiations, the close association Local Government Negotiating Forum national transition between democracy and localism was lost. (LGNF). was negotiated

12 INDICATOR SA Vol 11 No 4 Spring 1994 27 vimcs m The civics It was only after the main constitutional Perhaps the most debilitating impact o| ule succeeded negotiations were completed that the LGNF struggle has been the way it has undv.Tniiu moved into the World Trade, and that the the cultures of localism and governance in brilliantly in heavyweights from the main forum took a townships. For township residents, the civ' rendering lc hand in ironing out the last outstanding was local but the struggle was national.' townships issues. It is partly because the legal and urban struggles were first and foremost a ungovernable, but constitutional framework for local mechanism for redefining nationhood. this will impact government was the product of a last minute negatively on effort that it has turned out to be inadequate. As result there was no reason to expert tin- future local straggles of the 1980s and early 1990s ui government engender any commitment to a culture of High expectations localism. Furthermore, patterns of bcha\ '[(un- developed and have been reinforced in the Expectations of local government, during process of struggle, that are inimical to viable both the struggle era and tjie negotiations that urban governance. followed, were often too high. Reservations should have been raised by the tactics and The notion that development or services are impact of civics-driven insurrection. obtained through a coercive bargaining process, involving boycotts, is widespread. The declared puipose of mass mobilisation, This does not suggest an immutable pattern rent boycotts and activities which forced the of behaviour in townships, but that resignation of black councillors was to institutionalised mechanisms for mediating 'render townships ungovernable'. In this, the disputes in urban governance do not c\isi. civics succeeded brilliantly. Black Local Authorities (BLAs) were crippled and in The difficulty of creating these is frequently some cases collapsed entirely. underestimated. Certainly legitimacy is The costs of important and it is true that the forums ha\ e township Routine service provision, where it was achieved some success in this regard. But rehabilitation are possible, became a site of ongoing conflict. these are merely starting points which do not. high, their Through a mighty display of courage and by any stretch of the imagination, constitute administration is resolution by township residents, sustained viable institutions of urban governance. sketchy and the over several years in the face of fierce culture of repression, apartheid urban governance was These have to emerge over a period of time governance has proved unworkable. through the push and pull of ordinary, locally been undermined focused practice. It is precisely this process Pressure for far reaching changes became that is threatened by the inadequacy of the irresistible, eventually contributing to the NP transitional framework and the nature of the decision in 1989 to embark on transition. But transition itself. the success of the local insurrections have negative implications for the health of the future local government system. Transition Firstly, the task confronting any The transition framework is inadequate in reconstruction programme is much greater as that it contains a number of serious a result. Where infrastructure is badly omissions. These and other flaws are a result decayed, as it is in most townships as a result of the Local Government Transition Act of of both deliberate damage and difficulties in 1994 being the product of a hasty routine maintenance, the costs of compromise. rehabilitation are high. It is a truism worth stating that the cost of rehabilitation is many Furthermore, local transition is being allowed times that of routine maintenance. to drift and has become the plaything of powerful self-interested parties seeking to Institutionalised A second implication is that the secure their own interests at the expense of mechanisms for administrative systems required by a strong the healthy future of the entire system. mediating future system are very sketchy, or disputes in urban non-existent in some cases. TTie only short Finally, the problems facing the local governance do term solution is to apply the capacity of the government transition are all the more not exist formerly white local authorities. pressing because there is another powerful actor lurking in the wings, likely to benefit at However these officials are mostly trained local government's expense, if the local issue for routine service provision, not the is too long absent from centre stage: management of development projects, and provincial government. many will be unable or unwilling to make the transition. In any case white local authorities The framework designed to regulate and themselves are not adequately staffed, let facilitate the transition consists primarily of alone having spare capacity. the Act. Two other documents, Section 10 of

12 INDICATOR SA Vol 11 No 4 Spring 1994 27 vimcs m often not deliberately, of certain interests, Enshrining the •.• ronsiitution and The the Trans- . u ^;;;^^ Sn.v.ces and Sen/ice which corresponds to the excessive influence role of local Agrccnicnt ) i ()riniarily with writing of others; and compromise which resulted in government in a legislation which fails to give clarity in key constitution does iSevclpcd areas, are relevant but less areas. not protect it against important. The most notable exclusion was of a voice encroachments by for the rural areas. The Act makes no „ must be noted that the fact of const itutional higher tiers of provisions for the transformation of local I s or local g<» cmM means nothing in government 3 International experience clearly government in rural areas. This is a Eonstiatcslhai Vnshrunng the role of particularly pressing problem in areas, such as KwaZulu, currently under traditional fni ' , tiovernineni in a constitution does very tic to protect it a-iam-t encroachment on its forms of rural authority but which are powers and functions In higher tiers of adjacent to major urban agglomerations and should logically be a part of the future government. metropolitan government system. Wc should also n-'Ue ih.n such usurpations are particularly likeK v. her.- local government is Although forums have been established in politically weak or divided, or these areas, it is unclear whether traditional administratively disorganised. Chapter 10 of leaders can, in terms of the legislation, be the Interim Consiitulion does little to protect included and, if they are, what their status local government. It allow s the right to make should be. Is each traditional leader a local laws only if these are noi inconsistent with authority in his or her own right or are they the laws ol'either ptov inei.il or national individuals with a similar status to town legislatures: local government's formal councillors? Are they part of the statutory or political independence i- thus minimal. non statutory side? The Act is silent. Leaving it up to Furthermore, the prov isioiis of the A claim, frequently made by local actors in local government Constitution which insist ihat higher tiers KwaZulu-Natal and the Western Cape to protect its cannot encroach on (he loi din of local especially, is that the Act has a 'Central terrain is the most government "to sin h an eMent as to Witwatersrand bias'. This is not necessarily a ominous aspect of compromise iits) luudauieiital status, purpose result of exclusion from the negotiating the current and character' ol fer iiiile '.marantee as these process, but it is true that the Act is more trransition terms are ope easily applicable to some areas than others. n to almost any interpretation by aConsiiuition.il Couil. For example, it does not allow the immediate It is clear, then, thai ii is up to local election of a restructured council: all government to proicU it- own terrain. This is localities are required to go through the most ominous aspect o| Uie current transition . chrysalis stage of appointed interim councils. This mechanism was first suggested by The niosi notable chaiaciei istic of the parties in the Central Witwatersrand transiiionai li.imework is that it is designed to Metropolitan Chamber and was, at the time, facilitate and contain a process that is locally probably appropriate for that forum. But it is driven. It ivi[inrcs thai in each locality a less acceptable in areas like the Western Cape forum is c-uhlKhed io negotiate the where powerful actors wish to proceed boundaries and siuiciuic ol the new local directly to the election stage of the process. amtioriiv. It sp.-ulies boundary criteria, a timeframe and three options for structure. A further example of this 'bias' is provided by KwaZulu-Natal, where a strong case can It also regulates the character of the interim be made for treating the Joint Services local auihoiuiev ihev aie to be nominated by Boards (JSBs) differently to Regional the Services Councils (RSCs) in the rest of the Problems with the parties in the negotiating forum, on a country. basis of 5t)', [epic-cmaiiou for the 'statutory' Local Government Transition Act side and 507r for the 'non-statutory' side. Both types of bodies were established to Certain powers are allocated to the second provide development transfers between arise from hasty tier to 'drive' the process, but it is the role of wealthy White Local Authorities and less compromises local actors that is salient. developed areas, within sub-regional made during the boundaries. However the RSCs were largely final stages of urban entities, while the JSBs blanket the negotiations Flaw:-; whole of KwaZulu-Natal and include vast The problems with the Local Government tracts of rural land. Transition Act arise from compromise between interests present in the LGNF during The Act provides for the allocation of RSC the final stages of negotiations. Two and JSB funds to metropolitan transitional problems are flagged here: the exclusion, authorities. This is a straightforward matter in

12 INDICATOR SA Vol 11 No 4 Spring 1994 27 vimcs m transitional framework is lack of clarin surrounding the future of intergovernmental transfers. In many townships it was transfers from the central fiscus via the old pr< >\ administrations that provided the backh, mi- of funding for services and administration jn the face of rent boycotts.

This problem has not disappeared: vei v few township residents are currently payi ng market rates for their services. Many pav a 'flatrate', negotiated between the local civit and the authorities, based on perceptions what township residents can afford to pay. in former homeland areas, too, services are effectively subsidised, sometimes to le\ els of 70% or more.

Lack of clarity on what intergovernmental transfers will be made available in future is also frequently used as an excuse, on the pari of established interests, to delay local negotiations. But expressed by other voices, they are legitimate concerns by people who the Central Witwatersrand where the RSC genuinely want a viable non-racial future boundary coincides with the likely future system and who see intergovernmental There is lack of metropolitan boundary. But in transfers as an essential part of this. clarity surrounding KwaZulu-Natal it would leave many rural the future of and peri-urban areas bereft of their primary The issue is not addressed in the transitional intergovernmental source of capital expenditure. framework, but is to be one of the transfers, which responsibilities of the Financial and Fiscal have provided the The point is not that these problems cannot Commission which will begin its work in backbone of be dealt with - the future role of JSBs is September. funding for currently being negotiated - but that the services in the past transitional framework makes no provision for resolving them. The transitional process is thus more drawn out than it might have been, Second tier which has negative consequences. We have seen that there are genuine gaps in the transitional framework. These will probably be adequately filled but will delay Compromise local government transition. By themselves these delays would probably not have Further problems follow from the particularly baleful implications but, as compromise between major interests. The remarked, usurpations of the powers and demarcation of local government wards, as functions of local government by higher tiers spelled out in the Interim Constitution, is an are particularly likely where local attempt to placate right wing interests. government is politically divided and administratively disorganised. This is It grants disproportionate powers to currently the case. established interests by allowing the previously white areas 50% of wards. This These factors become particularly runs counter to the ideal of non-racial problematic when there is a higher tier International constitutionalism - every individual's vote authority with a particularly strong motive to experience will not carry equal weight in elections - and encroach on the terrain of local government: indicates that could have a negative impact on the precisely the situation regarding provincial systems with legitimacy of the future system. governments in contemporary South Africa. strong regional authorities often Probably more problematic, however, is that International experience indicates that have weak local this demarcation might enable entrenched systems with strong regional authorities often governments interests to resist attempts to redirect local have weak local government systems. The government spending in favour of United States, frequently quoted to counter underdeveloped areas, again with negative this claim, in fact bears it out. consequences for legitimacy. Where local government in the US has lost A final example of the problems flowing power, it has usually lost it to the states. And from omissions and compromises in the where the federal government has attempted

cmme&L ? tsstfi©® 30 INDICATOR SA Vol 11 No 4 Spring 1994 When the Act was drawn up, provision was Regions will seek i , p nower of the states, as h made for a complex procedure to resolve to extend their to cut back uk n-s "New Federalism , local deadlocks, involving interaction Stents .^benefited. powers to the between the Provincial Committees maximum at the (appointed by the Transitional Executive ,lf,,ll(i be nothing surprising about this. expense of local There snc»u« | (WlT„ ihe two tiers exists, Council in February 1994) and the old authorities Where conll U J the centre are Provincial Administrators. lhC S'Xre - 'IhcN struggle to hold onto "h'frScrpowcrs and functions they can. On Since the elections, the Provincial the h^h-!ndJnreiationships where the Administrators' side of the process has been Sd n is .he 'big brother it is the less the duty of the provincial governments. In novvcrful localities that are on the defensive this regard the delay in the re-allocation of while the higher tier is more able to act m a powers from the centre to the regions has cost dearly. The provinces have not been able to predatory manna. pass the legislation they clearly need if they In the constant ebbing ol powers and are to manage the local government transition. functions away from the lower tier, even constitutional checks arc seldom effective: Since local government is likely to be the real they are usually incrementally circumvented loser when the second tier is competing with over time. the centre for power, allocating the provinces the powers they need to force through the The understanding here is that relationships local transition would not necessarily be good of higher tier aggression and lower tier news for strong local government. defensiveness are most dangerous to the cause, of strong local ;jo\ ernment when the second tier is engaged in a 'turf war' with the Messing around centre. Under such circumstances it will be Many localities are eager to gather to itself all powers and What is most disturbing is that local actors politically divided functions possible. responsible for the transition are letting then- and proceeding own cause down. Key local actors are so very slowly This is prjciseh w hai is likely to happen in involved in defending and/or advancing then- towards South Africa. Region-* u ill seek to extend own interests that transition is proceeding at restructuring. their powers to the maximum, in areas such the slowest pace. A couple of examples Animosities as housing, ai the expense of local authorities. illustrate the point: between actors The current disorder at third tier level can might disable only assist such a proccss. Disagreements over boundaries, of the councils in future negotiating forums and within forums of the Nor will it do any good for local government interim authorities, is one major delaying to look to the centre for support. This level of factor. The underlying issue is local government has other preoccupations, one of government revenues and expenditure. which is its evolving relationship with the provinces. Indeed so slight is the centre's Many white councils are engaging in interest in local government that it has not 'cherrypicking' or attempts to have their seen lit to create a separate local government areas exempted from any responsibility for ministry, which could act as a proponent for financing underdeveloped areas. The strength strong local government. of the objections from other areas, which have not been able to engage in such tactics, is not surprising since, if the cherrypickers Local transition succeed, the burden on the other affluent areas would be much greater. Local government transition has been left to local actors. But many localities, especially in Attempts at cherrypicking are particularly the major metropolitan areas, are politically prevalent in metropolitan areas, where the Many white divided and proceeding very slowly towards Act makes provision for sub-metropolitan councils are restructuring. The primary problem is delay. authorities under the umbrella of a attempting to have Also problematic are the animosities building metropolitan government. The motive in each their areas between local actors in the course of the case is to maintain a situation as close to the exempted from transition, which might disable local councils present rates-expenditure ratio as possible. any responsibility politically in the future. for financing In pursuit of this goal some truly bizarre underdeveloped Mchind ihese issues is lack of higher tier boundary demarcation proposals have been areas capaeii\ to really make the transition happen. advanced. The point is not that cherrypicking I'lic only higher tier bodies involved, the proposals are likely to succeed - although a Pro\ incial Committees on Local few of the more subtle might - but that the (in\eminent, have the ability to regulate the transition is delayed while these issues are transition but not to drive it. resolved. Furthermore, the credibility of

INDICATOR SA VoM1 No 4 Spring 1994 31 ^©(lovoe/MLmsacsfss Sufficient delay many establishment actors in terms of their At the time of writing perhaps only two. | will necessitate a willingness to share revenues with Elizabeth and Klerksdorp - had really higher tier of underdeveloped areas is irreparably harmed. achieved this goal. These delays are government ultimately not in any local actors' interests There are equally problematic dynamics on Sufficient delay will necessitate a higher t stepping in to what used to be the extra-parliamentary side. of government stepping in to force the force the Most divisive is the conflict between transition through. If this happens, 1 ical transition: local members of local civics and of local ANC autonomy will be sacrificed, perhaps autonomy will be branches. In most metropolitan localities the permanently. sacrificed ANC was a latecomer to local negotiation processes: until at least early 1993 the burden was generally carried by the civics. Conclusion Once inside negotiating forums, ANC I do not mean to suggest that local actors demands were frequently very different from should not identify and pursue their own those of the civics, despite the supposed interests. Such behaviour is part and parcel of alliance between the two sides. TTiis conflict ordinary politics and is perfectly healthy so has been sufficiently widespread for the long as it happens within a legitimaic and South African National Civics Organisation effective framework. (Sanco) to issue a statement accusing the ANC of not having local government high on The problem in South African local the agenda and branding delays in setting up government transition is simply thai ihe transitional structures 'completely framework is ineffective, firstly because it is unnaceptable'. incomplete and, secondly, because it docs not control the behaviour of the 'loose cannons' Some commentators suggest that the among the grassroots. This means thai ihe If local Sanco-ANC clash is simply a disagreement present conflict in so many localities is not government is not over allocation of seats in interim local controlled within an institutionalised >ci of strong, it is not councils. Similar tensions over nominations rules, but instead revolves around the going to be to the transitional councils are also present on formulation of those rales. developmental the statutory side, although they have a lower either profile. This too is delaying transition and The transitional framework has left too much generating animosities that might linger on. up to local actors and processes, possibly in the hope that they will, like their nal ioiuI A final local factor is the contest over who is counterparts, reach agreement over ihe 'rules statutory and who is non-statutory. In some of the game'. But many local players are too areas the NP and Democratic Party have deeply mired in bickering, rent-seeking and applied to join the non-statutory component intrigue to see the need for effective ground in local forums. rules for the transition. And in each locality, it might take only a few spoilers to render the This is simply mischievous: it conforms to task of those who do see this need almost the wording of the act but is palpably impossible. contrary to its spirit. The intention of the act was to draw a line between those who were Both these spoilers and the contentious issues outside 'apartheid institutions' during 'the that they are exploiting should have been struggle' and those who were not. neutralised by an effective transitional framework. In the absence of this, the The most contentious point is where to place transition is going to have to be driven from a the . The KwaZulu » higher tier, with baleful implications for the government was undoubtedly a creation of future of strong local government. And if grand apartheid, but IFP representatives local government is not strong, it is not going claim that they conducted their own 'struggle to be developmental either. OtPOfii against the system', albeit on different terrain to the ANC and civics. Where these issues REFERENCES are hotly debated the possibilities for delay Centre for Development Studies (1991) Local Government and are almost endless. Planning for a Democratic South Africa, University of the Western Cape. African National Congress (1992) African National Congress The local transition has already been Policy guidelines. dramatically delayed. The original 90 day African National Congress (1994) The Reconstruction and deadline for the formation of local forums Development Programme. Christianson C & Friedman S (1992) Local Government for ihe DISCLAIMER has been extended twice. Furthermore, the New South Africa: Understanding the Options, the Urban The views expressed in number of formerly white local authorities Foundation, Johannesburg. this article are those of the who, at the beginning of the 1994/95 Simkins C & Sithole (1991) Public Sector Resources for author alone and do not financial year-, passed budgets which Infrastructural Development in the PWV Metropolitan Area. necessarily reflect the The Urban Foundation, Johannesburg. views of the Development genuinely reflect the concerns of restructured Constitution of the Republic of South Africa Act 1994, Chapter Bank. non-racial localities, is minuscule. 10 para 174 (4) p 112.

34 © II ^ il Ik © t-IIR! If VtBBMIDg 34 INDICATOR SA Vol 11 No 4 Spring 1994 ECONOMIC monitor

Sectoral share of Gross Geographic Product (GGP) by province

Total Contribution by Sector

• •

Percentage distribution of the GGP at factor cost and current prices per economic sector and per province, 1991 l!Bh&: Sector W Capo ECape N Cape OFS KZN N-West PWV ETvl NTvl Total Agriculture/ foresiry/fishing 6.7"! 6.33 10.52 12.11 6.16 7.60 0.59 8.76 10.46 5.10 Mining/quarrying 0.22 0.16 26.91 20.63 2.02 43.06 5.48 20.18 20.96 9.17 Manufacturing 24.81 25.77 4.37 15.19 30.73 10.15 28.94 25.87 7.34 24.87 Electricity/ water 3.02 1.73 3.39 5.62 2.19 1.30 2.36 20.61 7.93 4.29 Construction 3.62 3.74 2.10 3.23 3.64 3.52 3.53 2.09 3.12 3.39 Trade/catering 19.31 15.40 13.37 11.03 16.03 9.23 17.04 6.48 10.68 15.05 Transport/ communication 8.14 9.63 11.06 6.87 11.14 2.86 7.61 3.66 3.72 7.64 Finance/real estate 19.63 13.31 10.90 10.97 13.58 9.36 19.11 5.41 6.87 15.07 Community services 1.80 1.36 1.11 1.10 1.86 0.97 2.65 0.70 0.91 1.86 LESS imputations 4.90 2.55 2.39 2.23 2.72 1.57 4.20 1.23 1.29 3.28 General government 14.62 | 23.05 16.88 13.30 13.23 11.97 14.53 6.90 27.88 14.69 Other jwoducere 3.01 I 2.06 1.79 2.20 2.14 1.57 2.36 0.57 1.41 2.14 Total 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

Source; Statistical release P0401 'Grass Geographical Product at factor incomes by kind of economic activity and magisterial district, 1991. Central Statistical Service, July 1994. Provided by the Development Bank of Southern Africa.

One major become part and parcel of the new forums but much political controversy remains inhibiting legacy almost from the start. In fact, the Eastern amidst these debates. from the past was Transvaal EDF's success was at least partly the inability of due to logistical support it received from its some RDACs to inception in 1993 from the RDAC, in collaboration with other roleplayers who Achievements grasp the need for refused to work through RDAC structures. What did the new forums achieve? In most a fully fresh start cases, the forum concept won ground and In the Western Cape, a new process was more roleplayers became involved. In this started but there was at least a longer history way, new alliances emerged across political of attempts at metropolitan and sub-regional divides and around various issues. level to involve a wider range of roleplayers in planning processes. Some forums briefly ventured into project appraisal mode within the broader National In KwaZulu-Natal, the RDAC office had Economic Forum (NEF) short term reasonable ad hoc contacts and relationships employment process. But this soon proved a with roleplayers outside the apartheid rather daunting task and the project appraisal structures, but a formal structure engaging all and, especially, implementing capacities of political roleplayers was still absent. It was forums were soon show up as inadequate. only after the involvement of the CBM as facilitators that an inclusive KwaZulu-Natal Forums therefore remained essentially Regional Economic Forum got off the clearing houses for development ideas and ground. strategies, where common perspectives on problems and common visions on solutions and strategies could be developed. Representation In most cases, the By 1994, the regional forums were even forum concept The relationship between 'non system' regarded by the Transitional Executive won ground and roleplayers and the formal regional Council as an essential point of notification new alliances development advisory institutions of the for development projects undertaken by emerged across apartheid state warrant specific comment. parastatals and government departments. political divides and around While many RDACs were already seeking to The job creation programme of the NEF was various issues implement a directive from the Department also managed in consultation with regional of Regional and Land Affairs to engage in forums, thus both recognising and giving 'more representative' processes, others were impetus to their role in the emerging decision either unwilling or unable to do so. making environment. In a society as divided as South Africa, this activated a process of One major inhibiting legacy from the past enlightenment and bridge building many was the inability of some of these structures believed to be impossible. to grasp the need for a fully fresh start. They seemed unable to understand that they would have to enter new regional ventures on equal terms, and not necessarily as the kingpins of Problems the new system. There were problems too. The first was that some critics viewed forums as elitist. Just as Where they accepted this, like in the Eastern national forums were accused of moving Transvaal, existing structures in fact became away from grassroots, regional ones were recognised as resources for the future, perceived as closed shops, always in danger although suggestions that some RDAC of losing contact with their constituents. participants persisted in exclusive initiatives outside the broader participative process The Free State Forum's experience is a case Some critics fuelled some controversy about its role. in point: the management committee viewed forums as continues to meet regularly but the plenary elitist, always in Where they failed to do so, like in the PWV has effectively collapsed, leading to some danger of losing and Western Transvaal where the RDACs groups complaining that they have been contact with their persisted in inviting other roleplayers to excluded. constituents 'join' them - instead of being willing to become part of entirely new initiatives - the A contradictory problem also emerged: Committees became increasingly regional forums at one stage found marginalised. themselves having to fight for proper recognition by the NEF. It was only after There is now a line of thinking in they challenged the NEF for being 'elitist' 'progressive' circles that RDAC and 'top-down' that they became ports of call infrastructure and institutional capacity may in the discussion of project proposals within be used in a new national planning system, the NEF process.

© II ^ il Ik © t-IIR! If VtBBMIDg 36 INDICATOR SA Vol 11 No 4 Spring 1994 It seems likely that the forums' role as support structures rather than implementers will become generally accepted

The tensions between those who envisaged political and administrative structures which an implementation role for regional forums would facilitate decision making, delivery anil tho>e who saw them as facilitative and institutional transformation. avenues also had an impact. It has never been quite resolved, almost inevitably so in a Second, for 'non-establishment' roleplayers situation where the state lacked the forums epitomised the end of the old Forums have legitimacy to implement development establishment's monopoly on the formal become important instruments of executive power and public el'fecti\ cl> yet insisted that it was ultimately battle grounds for responsible for and capable of managing of policy. They managed in forums to affect the political interest development. allocation of resources, either through their impact on dialogue or through exercise of groups Now. w iih a more legitimate state, this issue veto power. These breeding grounds of will probably arise once again, but it seems institutionalised power could provide havens more likely that the forums' role as support for ongoing influence in the emerging structures rather than implementers will institutional environment. become more generally accepted. Third, forums developed a momentum of their own. A new style of politics, decision New tradition making and interaction has emerged: conflicts are brought to the discussion table, Regional forums are now almost always people are beginning to acknowledge the mentioned when future provincial institutions right of all roleplayers to have interests, and are discussed. This is partly so because the development agencies are confronted with Ituerim Constitution grants provincial beneficiary linked structures they simply governments considerable policy and have to contend with. development planning powers. Right now this might slow down delivery, but As known means to ensure the participation the momentum is an important dynamic. It ol' civil society in policy and planning brings people on course and makes it processes, the forums naturally come to important for them to remain part of the mind. However, it is worth reflecting on this processes. prominence somewhat more systematically Business and and to ask why and how forums assumed this Fourth, and related to the last point, is the labour entered the prominence. Five points come to mind: politicisation of development. Forums have become important battle grounds for political public debate First, in the apartheid days 'establishment' interest groups seeking to gain greater about actors eventually came face to face with the influence through a hold on development development more delivery problems associated with support. overtly than before illegitimate institutions. Forums offered them opportunities to build networks involving Furthermore, business and labour entered the actors they deemed to be obstructers. public debate about development more overtly than before and extended their Now, with political institutions more influence beyond labour negotiations quite legitimate, those networks could prove vital considerably through both the NEF and the in attempting to glue together a framework of regional forums.

INDICATOR SA Vol 11 No 4 Spring 1994 37 ®BVK!!,© P>fifiBCStf reiSKjOg Regional and Fifth, some roleplayers participated in forums As a wider range of actors took responsihilit other forums mark because they perceived them as a route to for delivery dilemmas, greater pragmatism ^ development funds. Several development became necessary. the advent of agencies, for example the Development Bank participative of Southern Africa and the Independent Ideologues came to acknowledge realities information Development Trust, have encouraged outside the confines of their ideal models and gathering and inclusive processes: forums represent a technocrats came to recognise the social dissemination, particularly structured example of this. complexities of communities and their needs policy analysis and dialogue This naturally could add a strongly negative There has also been growing artificial element to forums but, on the other acknowledgement of a need for trade-offs hand, the momentum referred to could also between politically desirable and mean that it becomes the start of the road economically realistic objectives. Forums arc towards more inclusive development bargaining grounds where difficult choices involving development agencies in are brought to the fore. collaboration with other roleplayers. Perhaps most importantly, however, forums have built networks which are set to underpin New culture future institutions. Policy leaders from a wide range of political, service and development, As a response to the needs of a changing and official backgrounds have been institutional environment at the regional interacting within these structures. level, forums have assumed a particular transitional significance. They arguably This has been shaping the parameters of constitute the major channels for resolution future development in all spheres: of the conflicts of the past and the movement institutional, economic, financial, physical, Perhaps most of former adversaries towards common technical and others. The impact of these importantly, ground. They have also become useful fore- networks was even firmer where regional forums have built runners of inclusive institutions for the future. forums also related to local level forums. networks which This facilitated institutional development and are set to Regional and other forums therefore mark the policy formulation through many layers of underpin future advent of participative information gathering society. institutions. and dissemination, policy analysis and dialogue. Whatever the complex dynamics of many of these processes, a base for future decision In setting a new culture they became tangible making and institutional capacity building is instruments for institution building and being shaped. This is where real institution empowerment, cooperative agenda and building has been taking place, the impact of priority setting, the democratisation of which might well outlive the present forums. development, conflict resolution and even project and programme management mechanisms. Future role These structures moved South Africans from Forums may well have facilitated the conflicts about absolutes to joint strategies, transition from illegitimacy at regional level, defined in terms of negotiated strategic focus but one can nonetheless ask whether they areas and time frames. For example, several really offer much for the future. Now that regional economic forums structured their elected provincial governments are in place, work clearly around distinctions between do we still need regional forums? short and long term strategies. Three important institutional realities suggest Political roleplayers in many of these forums that there may well be place for provincial or Government and seemed to focus on short term activities, regional forums. The first is the momentum other roleplayers perceiving these as offering readily that forums have developed and the fact that increasingly accessible opportunities to benefit politically. some of these bodies have already become assume that they At the same time, however, labour and other established at the regional level. need places to players seemed to regard the long term policy meet beyond the processes as of critical importance. In some Key roleplayers believe that they should play formal corridors of cases they have indicated that they will a role, mainly because they are seen as key power jealously guard this access to policy-making, avenues for a civil society influence on regardless of the composition of government. decision making processes. Government and other roleplayers increasingly assume that In this more nuanced policy environment, they need places to meet beyond the formal forums also became the stages for a shift corridors of power: hence forums are seen as away from purely ideological as well as from normal elements of the institutional narrowly defined technocratic approaches. landscape.

© II ^ il Ik © t-IIR! If VtBBMIDg 38 INDICATOR SA Vol 11 No 4 Spring 1994 .,„„! related, reality is that fonims at, important instruments for a flow of One current of rS'woukl appear to be an integral part information and the development of synergy thinking about "V t HHP visi-'ii. This m itself reflects the around key issues. institutions for the ot f. o which they have come to be RDP is that e n( mal elcment of the broader Whereas national forums will facilitate consultative ted -is a " sectoral policies, regional structures will Stun"""1 framework. structures for civil enable governments and other roleplayers to society should be translate national policies in more area . .1 jrtj si<-nilicant factor is that the Interim introduced at all specific terms and hence set the parameters r institution- and the unfolding constitutional levels nroccss. assign provincial governments within which local stakeholders could operate. f-onsiderable policy and planning powers. In n environment w here the institutionalised n'irticipation of civil society in policy and Relations ' • ' - - is accepted as part of the ideal decision niaking landscape, this may point If it is accepted that provincial governments towards 1brums. will have an ongoing formalised relationship with regional forums, how will this relationship be structured? Should the forums be institutionalised by statute, should they National context have state support but not be governed by One current of thinking about institutions for statute, or should they simply continue as llv Kl >1* is that o msultative structures for organs of civil society, interested in but not related to the state? civil society should be introduced at all levels. This would appear to imply that forums at all lc\ els could support and check This debate prevails at all levels and there is no clear right answer. The issue is rather government in policy formulation and Regional planning. whether the Government accepts in principle that it should consult these structures. This structures will There seems to be some consensus that seems a sound principle, but exactly how it enable sectoral forums will function at the national will be captured in law or institutions still governments and level, if the kc\ r< •ieplayers deem a forum needs to be decided. other roleplayers necessary. W hel her regional forums should to translate also be struclmcd sectorally is less clear. If Another question is whether institutionalised national policies in the patterns of the past guide the process, forums will be restructured to correspond more area specific these forums seem set to be multi-sectoral, more closely to the new provincial terms probably providing for sectoral specialisation boundaries. In many provinces this is not an through working groups. issue, because their boundaries have not changed much. Indications from some provinces are that working groups will interact with the relevant But moves are afoot in the Eastern Cape to line departments and ministries around merge the Eastern Cape and Border-Kei strategic issues, while the forum as a whole forums which have thus far operated deals with Government about multi-sectoral separately. This will align the forum's issues in an integrated manner. jurisdiction with that of the new province, rather than following the patterns of The dominant sentiment seems to be that the alignment which previously developed. spatial specificity of regional forums actually make them ideal instruments for integrative One could expect such reassessments to occur processes. On the other hand, sectoral if forums are related more closely to the formal pro\ incial forums could mark recognition of processes of provincial government. From a tlie importance of this level in the policy development planning point of view, it will be process. necessary to assess the appropriateness of such arrangements as cross-boundary arrangements To ensure Hut specialised sectoral forums at provincial are also potentially relevant. effective and level will encourage unnecessary institutional legitimate input, proliferation. And if the countiy's There is, for example, a point of view that the structuring of const itutional evolution enhances the role of parts of the Eastern Transvaal and Northwest forums would pro\ i ncial government, it might be provinces would be better served if require careful inappropriate to limit provincial forums in development planning could be done in attention favour of national ones. conjunction with the PWV. Whether these issues will receive sufficient consideration if There are some difficult trade-offs to be forums are entirely related to governmental made. But at this stage, the impetus for sector jusridictions, is as yet unclear. specific forums at regional levels seems weak. In a national institutional framework, Whatever arrangements about institutional regional forums could nonetheless form status or boundaries of jurisdiction are

27 vimcs m 12 INDICATOR SA Vol 11 No 4 Spring 199427 vimcs m Forums should not decided, one would expect forums to advise Conclusion become the only the relevant ministers or parliamentary avenues for committees either on request or proactively. Forums have been important transitionavy citizens to interact vehicles in the movement away from with government To ensure effective and legitimate input, the apartheid towards democracy in South about structuring of forums would require careful Africa. They ensured the participation of attention. They would have to be based on more stakeholders in decision making and development participation by the key interest groups in the became the platforms for joint decision issues province, yet as advisory bodies one could making once the apartheid state became expect the inclusion of a number of technical largely unable to make and implement experts, nominated by the minister and decisions on its own. perhaps some by key interests. At the national level, sector specific forum* It would generally be important to ensure that facilitated common perspectives and visions members represent major interests. Whatever- around particular policy areas. At the system of membership is decided upon regional level, former foes joined forces in would have to be the product of extensive developing common understandings of their interaction between the provincial regions and in some cases managed to sel government and major interest groups. outlines for development strategies for the future. In the interest of transparency, even statutory forums would have to be able to notify The coming of democracy means that differences with government. Perhaps the executives and legislatures will take greater time has also come for statutory bodies to responsibility and that the Government and allow for minority reports as a means to provincial authorities should be able to ensure the most open reporting of embark on development programmes witli The RDP's vision information about decision making processes greater legitimacy. creates space for and debates. regional forums to However, the RDP includes a vision of ci \ il continue as A few notes of caution are appropriate. The society participation. This creates space for checks and first is that the forums should not become forums at various levels to continue a balances on alternatives for parliamentary democracy. positive role as checks and balances on government and They provide avenues for a structured role government and as places where civil society' places where civil for organised elements of civil society in interests could influence government in a society could policy processes, but political accountability structured and transparent manner. This influence has to rest with elected government. should not replace parliamentary accountability, but could complement it Governments could create space for a usefully. substantial say for forums, but in the final analysis this can at most be a consultative This would also capture the culture of relationship. The channel into parliamentary participation which mark most forums as a process is the committee system. building block for the future. Care should he taken to prevent forums from becoming If a RDP committee is formed in each elitist, but in principle they constitute an provincial legislature, one could expect it to important South African contribution to the have a direct relationship with regional making of democracy. forums. Formalised participation by the RDP committee on the forums may be considered, They offer foundations for mutual respect, but decision making power will have to rest debate and interactive decision making, with elected structures which are formally engaging the citizenry on an ongoing basiv accountable to the electorate. Provided that they do not become obstacles In similar vein, forums should not become to other forms of interaction between state the only avenues for citizens' interaction with and civil society, they could epitomise a new DISCLAIMER Government about development issues. It understanding of politics and decision The views expressed in should at all times be possible for citizens to making centring around inclusivity, greater this article are those of the approach government independently and scepticism towards politicians and, generally, author and do not necessarily reflect the directly. a new appreciation of the interface between Development Bank's technical and political issues. views. The author wishes to thank several The aim of forums is to facilitate the interface colleagues within DBSA as between government and citizen, not to For this to occur, the forum culture at all well as forum participants complicate it by adding new institutional levels ought to be nurtured - and the regional and analysts outside the Bank for their inputs and layers through which citizens would have to level offers particular- benefits as an arena for comments on earlier drafts wrestle if they wish to interact with the policy making, multi-sectoral integration and of this article. Government. participatory development planning. QSiOfil

© II ^ il Ik © t-IIR! If VtBBMIDg 40 INDICATOR SA Vol 11 No 4 Spring 1994 Abolishing Controls

By Jan Lombard Professor of Economics, University of Pretoria

South Africa should phase out its whole exchange control system and the dual exchange rate system together, writes Lombard in his report for the South African Chamber of Business, The Abolition of Exchange Control. This article contains the executive summary of the report and further comments by Lombard.

xchange controls over capital The costs of the exchange control system to the movements by residents to and South African economy are severe. In direct The costs of the from South Africa have been in terms, they arise in the form of the large corps exchange control existence since 1939. Due to a of skilled manpower deployed in the Reserve system to the E Bank, in the private banks administering the serious uei outflow of capital during 1961 South African system, and in the corporate sector involved in these controls were extended to non- economy are foreign trade and payments. residents w ith respect to their transactions severe in South African assets. Direct costs are also incurred in the form of These restrictions on the repatriation of non- extra bank charges and commissions brought resident ins cstments in South Africa gave about by the public in surrendering and rise to a second market among non-residents repurchasing foreign exchange. Further costs for South African securities and a second stem from the bridging delays that arise from exchange rate through which non-residents the uncertainties about exchange control could turn proceeds of sales of South African rulings on particular applications. securities into foreign currency, and visa-versa, at a discount on the official The indirect macro-economic costs to South exchange rale of the rand. The market Africa are even more significant than these operated mainly in London. direct costs. They arise from the fact that The arbitrary domestic savings are deprived of access to nature of ad hoc On the recommendation of the De Kock the international spread of investment concessions Commission in 1979 this 'securities rand' opportunities, while small and medium sized granted under the system was broadened and formalised into South African business is largely deprived of system gives rise the linaneial rand market. In July 1988, the access to internationally diversified financial to serious issues resources and technology. Reserve Hank allowed South African banks of equity and authorised lo deal in foreign exchange also to unfair competition act as principals in the market for financial The exchange controls have also constituted a rands. I his decision moved the financial rand major obstacle to the monetary authorities in market from London to South Africa. their attempts to achieve and maintain sound monetary conditions through flexible forex It is neeessa/y to draw a distinction between and money markets. the s_\ sieiu of exchange control proper and Ihe existence of the financial rand market. The unavoidable arbitrary nature of ad hoc The latter sci ves as one leg of the dual concessions granted under the system gives exchange rule system. It should also be noted rise to serious issues of equity and unfair that a dual exchange rate system is to a large competition between members of society. In degree an alternative to direct controls over particular, the system has accentuated the capital movements. power of the small number of large institutional investors of the Johannesburg Exchange controls Stock Exchange. have inhibited Benefits and costs investment in The exchange controls have become South Africa, and counterproductive by inhibiting investment in The justification of the system of foreign are not preventing exchange control, as well as the existence of South Africa. Furthermore, its effectiveness residents from the dual exchange rate system in South in preventing residents from transferring transferring Africa, is based primarily and almost entirely capital out of the country has become less on their effectiveness in protecting the effective as the public, to an increasing money out of the country's gold and foreign exchange reserves. extent, finds ways to circumvent the controls country

INDICATOR SA Vol 11 No 4 Spring 1994 41 ®BVK!!,© P>fifiBCStf reiSKjOg The business legally or illegally. In addition, it is evident transition to currency convertibility- ;it. a community is in that the moral support for the control system unified exchange rate; and ' dire need of clarity is eroding. about the future of Recognise the need to immediately •„„ its fiscal, monetary, trade, labour and' exchange other market orientated policies towards constraints on the Abolishing control principles which would be seen to ab|. efficient operation e There can be no doubt that sound economic to sustain the convertible status of thc of the forex market development and growth in South Africa South African rand with reasonable demands the removal of direct controls over prospects of stability. capital movements to and from South Africa. However, circumstances currently preventing In any such statement it would be neccssur. the immediate abolition of these systems are: to reiterate the Government's belief that adjusting the South African econom\ ® The currently very low level of foreign structurally towards full integration \\ ith exchange reserves of the South African international economic relationships both in monetary systems; and trade and finance, would provide thc best platform for domestic economic de\ elopmeiu. * The severe uncertainty about the prospects for the capital account of the balance of payments with or without Options exchange control. Three broad routes towards the same ultimate To some extent, these two circumstances are, objective may be distinguished. Each may of course, mutually reinforcing. allow several variations. These are:

One option is the Moreover, there are two sets of preconditions The total abolition of the exchange total abolition of which determine the sustainability and control system and the dual exchange rate the exchange stability of a convertible currency which is system in one 'big bang'; control system strongly affected by capital inflows and and the dual outflows. These are: « The abolition of the financial rami market exchange rate and exchange control on non-residents system in one 'big ® The comparative attraction of investment only, and bang' yields in the country; and ® The phasing out of the whole exchange ® The extent to which the convertible control system and the dual exchange rale currency is supported by domestic system together. economic policies that allow optimum flexibility in domestic goods and factor The severe uncertainties surrounding the markets. initial effects on the exchange rate, domestic interest rates, domestic price and wages of Although the dilemma of the monetary the first option, as well as the severe authorities concerning the abolition of inadequacy of the foreign exchange rc^ei \es exchange control and the system of dual of the country, does not make this option a exchange rates is understandable, the feasible or credible choice. business community is in dire need of clarity about the future of these constraints on the The second option suffers to a lesser degree efficient operation of the forex market. from the same objections, that is, severe pressures on the unified exchange rate, at It is absolutely necessary for the Government least initially, while leaving the main to seek an early opportunity for making a problem of exchange control over most of the public commitment which will be feasible South African capital market unaddressed. 1 f A second option is and sufficiently credible to allow the business undertaken before perceptions of domestic the abolition of the community in South Africa and abroad to real yields and financial stability have financial rand plan ahead with confidence. improved, this option would not be market and sustainable. exchange control What is required, therefore, is an early on non-residents declaration by the South African The third option proposes to broaden the only Government, committing itself publicly to: financial rand market by channelling all capital transactions of both residents and • Commence with the phasing out of the non-residents on the capital account of the exchange control system, along a balance of payments (except trade related particular route, as soon as the country's credit) through the financial rand market, foreign reserves return to a level which leaving the commercial rand market for all will allow the monetary authorities to take transactions on the current account of the care of bridging problems during the balance of payments.

© II ^ il Ik © t-IIR! If VtBBMIDg 42 INDICATOR SA Vol 11 No 4 Spring 1994 „f dollars on the financial rand considerations: micro-economic A third, preferred, ' .j immediately rise substantially, efficiency and macro-economic option is the keV Jmand for dollars through this stability. We argue that a dual rate phasing out of the e system (with a market determined rate ,hV residents could be phased m whole exchange for capital account transactions and a control system cibl> • moderate premium over the official rate) and the dual best serves that objective." ^ Bank should be authorised to exchange rate -on tl'i* financial rand market in system together rt."SI and forward transactions in a "...a combination of a realistic ncr similar K> its i nanagement of the commercial rate and a realistic exchange OTinmercial rand exchange rate. rate ensures that the gap between the commercial and financial rate will be it would approach its management moderate and that distortions are -nonsibi li I iv.* s vv itli a view to allowing and unlikely to be major." Smoting a phasing < ait of the discount between the two exchange rates in the "We argue that a well managed system shortest feasible time, that is, with due regard of dual rates may function as a sensible lilso to the rescrv es ol' the monetary banking shock absorber in economics in which system of the country capital is highly mobile and capital controls are ineffective." and rhe particular adv ant.tge of the third option is icen to be its facilitv lo absorb unforeseen "If the exchange rate and prices and Capital account shocks to the South African wages come to be driven by portfolio ;conomy during the transition to full holders' expectations and the price and •urrency convertibility, without severely wage adjustments lead to expectations of iflecting the real el lective exchange rate of further depreciation, the economy easily A well managed he current account, upon which the real loses the anchor of nominal stability. system of dual nvestment decisions for economic growth rates may function argely depend. The present financial rand system does not as a sensible really qualify as a proper dual rate system. Its shock absorber in should either options two or three be chosen coverage is much too narrow and access economics in is the road (o convertibility, there would much too constrained by complicated which capita! is exchange control regulations. omain a number ol' matters which would highly mobile and iced lo he further addressed in detail, such as capital controls he administration ol the separation between To serve the purposes described by Dornbush are ineffective he two markets, the participation of the and Kuenzler, the financial rand market needs leserve Bank in both the spot and the to be freed from exchange controls or waul market I'oi tinancial rands, or the altogether, and to be opened up for all capital irinciplcs according lo which resident access account transactions in and out of South .1 the financial land market will be phased in. Africa, by residents and non-residents alike. The access by residents might have to be t is, accordmglv. pioposed that the staggered over a brief period, as was done in Jovernincni. in consultation with the Reserve the United Kingdom. lank, appoint a committee of experts from the •oniestic and inlei national forex community to The new financial rand system would then dvise ihe < iov eminent on the most appropriate become the free market for rand-dollar teps to be taken in such matters. transactions, in which the rand would obviously be fully convertible. Only access to the 'official' or commercial rand market would, for the time being, still require Comments exchange control permission. ince preparing the report for the South vfrican Chamber of Business (Sacob), my As is well known, however, such permission These steps ttenlion has been drawn to a most useful is automatically granted by the authorised should be rticle by Rudiger Dornbush, Professor of South African banks in respect of all current recognised as no Economics at the Massachusetts Institute of account transactions on the presentation of more than a 'echnology, which strongly supports the corroborating documents. gateway to full lird option. convertibility of These steps should be generally recognised as the rand at a ome relevant statements in an article no more than a gateway to Ml convertibility unified exchange Exchange Rate Policy: Options and Issues' of the rand at a unified exchange rate, an rate i Policymaking in the Open Economy event which should not be far off provided 1993), edited by Dornbush, read as follows: that the major relevant domestic economic policies - fiscal, monetary, trade and wages - "A streamlined exchange rate system are effectively supportive of sustained must strike a balance between two exchange rate convertibility.

JDICATOR SA Vol 11 No 4 Spring 1994 43 S@®Ki@£fili® fBtlK'tSS By Mike McGrath and Merle Holden Department of Economics, University of Natal

RETROSPECT

The South African economy's progress out of the attained in 1988 was only regained in 1993, while recession of the last four years is still an open population continued to increase, the declines in real question. Economists - private sector, government per capita income were significant. Despite such and academic - have been desperately 'talking up' the economic decline, or maybe as a result of it, South economy in the hope that we would proceed on the Africa underwent major political change. path to sustained economic growth in the new South Africa. Reflecting the dislocation arising from the wide ranging political changes occurring in 1994, total Yet when the hard figures of growth are viewed we production performed very poorly in the first quarter, are faced with a million and one reasons why 1994 is registering a contraction of 3,5% annualised. proving to be disappointing. Don't be misled, however, for there is both good and bad growth, and This decline has been attributed to poor performance the growth which we would wish to observe would in the agricultural sector, the mining sector as well as be of the sustainable variety driven by fundamentals manufacturing. Absenteeism, violence, work such as an increase in investment rather than rises in interruptions and labour unrest all contributed to government expenditure. dampened performance in the non-agricultural sectors of the economy. The Reserve Bank in the June Quarterly Bulletin observes that economic recovery faltered in the first During the period 1987 to 1993 the rate of inflation quarter of 1994, attributing it to the decrease in increased, moderated and finally started to decline to agricultural output from its high levels in the fourth the point where, in December 1992, the consumer quarter of 1993. Even so the performance of price index reached a single digit level of 9,6'<. In non-agricultural output proved to be disappointing, April 1994 the rate of increase in the consumer price apparently due to political uncertainty, the ongoing index dropped further, reaching 7,1%. violence, work stoppages and labour unrest. The Reserve Bank attributes exogenous factoi s such To come to terms with the extent of the recent as price stability among South Africa's trading recession it is instructive to review the levels and partners, lower international prices of oil and thc growth in annual real Gross Domestic Product (GDP) break in drought conditions as contributing to the since 1985. lower rate of inflation. Endogenous factors such as the low rate of economic activity is not mentioned In the Bank. Table 1 : Real Gross Domestic Product at 1990 prices. Without wanting to enter into the debate as to how monetary policy is determined, but noting that Year Gross Domestic Growth Rate (%) Product (R millions) monetary policy has nevertheless been conser\ ati \ c during the recessionary period, inflationary 1986 254221 expectations have moderated and wage flexibility improved. 1987 259561 +2.1 1988 270463 +4.2 During the 1980s and 1990s outflows were of such a 1989 276940 +2.4 magnitude that they necessitated maintaining large 1990 276060 -0.3 current account surpluses on the balance of payments. 1991 273249 -1.0 For example, in 1993 the current account surplus 1992 267257 -2.2 amounted to 1,5% of GDP. 1993 270361 +1.2 These surpluses were generated by dampening down the economy to reduce imports and encourage the The extent of the recession can be seen in Table 1, export of excess capacity. Separate measures were with negative rates of growth for the three years from also taken to stimulate exports through the 1990 through to 1993. As the level of real GDP implementation of the GEIS.

©II ^ il Ik © t-IIR! If VtBBMIDg 44 INDICATOR SA Vol 11 No 4 Spring 1994 • ,| V through the latter part of the, 1980s and such as motor vehicles, have found it necessary to iQQOs the current account surplus averaged R5 raise the price of cars in order to meet the increased illion per annum. Some concern was felt in price of their imported inputs. - t (iiiarter of 1994 when the surplus dropped to M'llised I'-.3 billion, but early indications of In financial markets growth in the money supply as measured by the broadly defined money supply, M3, an in exports for the second quarter have Eedsome of these fears. averaged out at 7% for 1993. More importantly, M3 increased at an annualised rate of 12,3 % in March mnit'int with the smaller surplus on the current 1994, exceeding the upper limit of the money 1 :,ni„,i. i,'.r the first quarter of 1994 the total net guideline range. aCrflow of capital was small, amounting to a mere R1 1 billion compared with net outflows of R4,4 By March, M3 had increased by R12,5 billion h" lion and R5.5 billion in the last two quarters of composed of increases of R14,8 billion in the 1994 However, as the election approached, the monetary institutions' net claims on the government Hecreasc of R2.2 billion in net foreign reserves in sector, R7,1 billion on the private sector with decreases of R3,l billion on net foreign assets, and AprilVndicatctl that capital outflows had once again R6,3 billion in net other assets. started to accelerate.

These changes in the balance of payments were This large increase in the monetary sector's net -ellccted in a sharp depreciation of the rand against a claims on the government sector was largely affected jaskct of currencies amounting to 8,4% for the first by the issuance of stripped coupon government stock "ivc months of N94. This decline was particularly to the Reserve Bank in March 1994 to redeem losses ievcre against the Japanese yen (12,3%) and the incurred on the Gold and Foreign Exchange Italian lira (12.ft'&). Contingency Reserve Account.

Mien inllation differentials are taken into account, It is notable that the Reserve Bank's intervention in he rand depreciated in real terms against a basket of the forward exchange market has had implications for .-urrencies by 2% in the first quarter of 1994. the growth in the money supply as well as for the size Mthough exporters have accordingly experienced an of the budget deficit. inprovement in competitiveness, certain industries, : 1994/95 BUDGET

'he Budget for 1994/95 was presented in June, less lan two months after the Government of National Table 2: Comparative Expenditure and Revenue on the South African National Revenue Account - Jnily had assumed power. There had been 1990/91 -1994/95 (R million) xpcciations of a radical budget with large increases i expenditures to fund the Reconstruction and YEAR )evelopment Programme (RDP), financed by 1990/91 1991/92 1992/93 1993/94 1994/95 icreases in direct taxes and a change in the structure budgetted f VAT to zero rate a wide range of wage goods. Total Revenue 70151 76644 81707 95163 105813

'he budget which was presented was, by contrast, on Total le surface a model of economic moderation, with Expenditure 77339 90595 110556 122559 135087 ssurances given by both the Minister and Deputy Budget Deficit linistcr of Finance, former trade unionist Alex as a percentage •rwin. that the Government remained firmly of GDP 2,5 4,3 8,3 6,9 6,6 ommitted to fiscal and monetary discipline. he revenues and expenditures of the former Total revenues of Government are expected to ^dependent states are now consolidated into the increase by 9,6% for 1994/95, with revenues from ational revenue account, and Table 2 shows that the taxes on income and profits and domestic taxes on udgeted deficit for 1994/5 is expected to decrease goods and services budgeted to increase by 12,5% •om (>.'}% of GDP for 1993/94 to 6,6% of GDP for and 10,7% respectively. W4/95. Fiscal drag is once again used to extract additional he deficit is reduced largely by holding increases in taxation from the middle classes, and excise duties udgetcd current expenditure to a modest 7,3%, even are also increased on alcohol, cigarettes and soft fter providing for a massive increase in the drinks. Radical proposals for changing the structure 'overnment's wage bill of 14,7%, and by financing of taxes were deflected by setting up a Tax ie promised transfer of R2,5 billion to the Commission to investigate the tax system. econstruction and Development Fund from nposing savings on departmental budgets. In total On the supply side some stimulus is given to government expenditure is budgeted to rise by 9,0% investment by lowering the rate of company tax on i 1994/95. undistributed profits to 35%, and by abolishing the

JD1CATOR SA Vol 11 No 4 Spring 1994 45 B@@K!®ft'!C@ WUK:®® 1

5% surcharge on intermediate and capital goods. only 10,9%. This estimate is likely to he too1 given the upsurge in long term interest rates iJn However, advance warning is given that the export e 1 incentives paid under GEIS will be taxed from domestic capital market since March IW4 a ', the likely unfavourable response in foreign March 1, 1995. markets to South African Government Bond issues as long as friction continues between the The election left a massive R3,8 billion debt which parties within the Government of National Unity had to be funded, and a once off 5% levy has been imposed on companies and people with taxable incomes exceeding R50 000. ® Government appears to be losing approximated R1 billion per annum from transfers to cover the As presented the budget appears to be a brilliantly foreign exchange losses on forward co\ cr crafted compromise between the needs of the RDP provided by the Reserve Bank, and from i: s and sensible economic practice, and we have support to shore up the underfunded ci \ il service therefore to ask why the financial markets have pension funds. treated it with such cynicism, as shown by the upward sweep in interest rates on long term Although these transfers have added to the publie government stocks since budget day. debt, and are shown as items of expenditure in the budget data published by the Reserve Bank, they*" There are several major concerns about the are not reflected in the estimates of expenditure expenditure side of the budget: presented by the Minister of Finance. The 1094 year will most likely see a continuation of the © The small budgeted increases in consumption losses arising from the forward cover pro\ ided hy expenditures could easily be overrun, as has the Reserve Bank, and we believe that explicit happened so often in the past to South African provision should have been made in the budget for governments. Wage pressures which have built up these losses. in the private sector are likely to spill over to the government sector, possibly forcing higher than We estimate that there could be increases in budgeted wage increases. The new Government expenditures which have not been budgeted w liich has still to demonstrate its ability to stick to its could amount to an additional R19 billion, pushing budgeted expenditures. the deficit to a massive 10% of GDP. It is not therefore surprising that alarm bells have started 10 • In the budget interest costs are assumed to rise by ring in the financial markets. PROSPECT

The early euphoria about the prospects for economic According to the IMF each one percentage point rise in growth in 1994 have been scaled down, and the the ratio of government current expenditure to GDI5 will consensus appears to indicate a growth rate of GDP reduce the growth rate of GDP by 0,3% a year. of 2,5% for 1994. Large inflows of direct foreign investment will not be forthcoming as long as there There are strong indications that the inflation rate is are hints of economic or political instability. once again set to soar. Rising oil prices in international markets, the depreciation in the nominal Unfortunately the surge in business confidence after exchange rate of the rand, escalating wage pressures, the election is being eroded by a resurgence of and increasing food prices because of the severe political violence, by trade union militancy, and by winter are all feeding into the inflation rate. the Government's inability to project firm leadership, by threats of disintegration of the Government of There are indications that the money supply is National Unity, and by the shock announcement that accelerating again, and this increase in supply will the Minister of Finance is to retire in October 1994. validate the increase in the inflation rate, while the possibility that an enlarged government deficit is Even though there should be some stimulus to financed through the banking system will cause a consumer demand from labour intensive projects further acceleration in the growth of the money emanating from the RDP, the transition levy and supply, and additional inflationary pressures. fiscal drag will depress the recovery of consumer demand in the durable consumer goods sector. Even though the real prime interest rate is very high at over 7%, and is out of keeping with the need to Trade union militancy has escalated since the election stimulate demand and get the economy growing and it is now threatening to cost the economy dearly rapidly, the strong inflationary pressures which are in terms of lost investment and output. The building up in the economy, and the depletion of the International Monetary Fund's (IMF's) scenarios for foreign exchange reserves in 1994, are likely to force growth in the South African economy have estimated the Reserve Bank to move with great care before that for each one half percentage point increase in allowing nominal interest rates to fall. annual wage rates above the baseline level, the growth rate of GDP will be reduced by one REFERENCE Economic Policies for a New South Africa, International Monetary Fund, percentage point. Washington DC, 1992

46 INDICATOR SA Vol 11 No 4 Spring 1994 Manufacturing Provincial

N Tvl 1.12 contributions to the

E Tvl 8.74 GGP for selected W Capo 13 8-i economic sectors

PWV 43.5

K-'.Vest 2.28

Construction

See Political Monitor cover on page 5 for a comprehensive list of the different sectoral contributions by each province to ihe GGP. You might STARCICE think they are worlds apart ASSOCIATES The econo-political resource.

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i Social Partnership

By Tito Mboweni Minister of Labour

South Africa must construct a unique social partnership between capital, labour and the Government, with an intensified role for the state in the labour market. Labour Minister Tito Mboweni outlined his department's views on tripartism and labour policy in this edited speech to the 7th Annual Labour Law Conference, held in Durban in July. This is the first of three papers from the conference.

here are essentially three 'new' Productivity I eat i ires that characterise our labour market. Firstly, we have in Secondly, we are irrevocably committed to The Government place a Government firmly dismantling the protective barriers that have is firmly committed f long insulated South African producers from com mi tied lo a social partnership. Key to a social pillars of this partnership are workers and the international market. This is the much partnership. Key their organisations. talked about global restructuring. pillars of this partnership are There is an organic and historic link between We arc now signatories to the General workers and their Agreement on Trade and Tariffs, and there the new (ii>\ eminent and the trade union organisations movement, a relationship which was built are certain requirements with GATT that over maii\ \cars and dictated to by the South African producers and the trade union material conditions in which the majority of movement have to be part of. This demands a our people lound themselves. central role for labour.

These \\ civ conditions of colonialism and We are going to have to leam to compete apartheid in which black people, whether with imports on the domestic market. Across workers or non-workers, were subjected to a wide range of fields this will be possible oppression and exploitation. Black people through significant increases in productivity. who were employed were super-exploited But important areas of production, those that We are because they had no political rights and could compete with the low wage Asian economies, irrevocably not articulate, in the way white workers are unlikely to withstand our entry into the committed to could, their interests in a free environment. global markets. dismantling the protective barriers The struggle for political freedom has The employment and output loss that occurs that have historically been linked with the struggle for in these areas will have to be compensated for insulated South trade union rights. Hence in South Africa by gains in areas of higher productivity and African producers today the trade union movement does not by penetration of the international markets for from the need to count the Government as petitioners, these high value commodities. Again this will international at least in the current period. only be possible through dramatic increases market in productivity. Since it is part and parcel of the forces of transformation which ushered in the new Thirdly, we have in place for the first time a South Africa, the new Government will Government with a major commitment to the support and advance worker rights, including millions of unemployed and to the (heir rights to organise. development of small business. Government has a his important to add that we support a role There is a vocal lobby that insists that the major commitment lor workers and their unions beyond the needs of both of these acutely disadvantaged to the millions of traditional defensive and elsewhere. This sectors of society will be accommodated by a unemployed and commitment will have a major impact on free-for-all in the labour market, by labour market policy and on the institutions wholesale elimination of the regulations that to the that bear responsibility for its further govern key areas of conduct of those who development of elaboration and implementation. participate in the labour market. small business

INDICATOR SA Vol 11 No 4 Spring 1994 7 ¥49< Mfi, VK(IKl@8 There is a substantial body of international experience which establishes a link between rapid and sustainable gains in productivity and various forms of social partnership

We must examine The first and second of these features offer role for the South African state in these areas our own history considerable room for accommodation of activity. The state cannot hide behind and our own between employers, workers and their industrial self governance but has to be a key strengths and organisations, and the Government. player in the whole process since we are weaknesses and involved in democratic transformation. construct a Thirdly, and this is a vital lesson, each uniquely South Partnership member of the social partnership must African partnership There is a substantial body of international examine some of their most revered sacred experience - gleaned from a diverse range of cows. Can we really expect unions and highly successful industrialised economies workers to downplay distributional issues in such as Germany, Japan and Sweden - which the context of the unusually large earnings establishes a link between rapid and disparities that characterise South African sustainable gains in productivity and various corporations and workplaces? forms of social partnership. Can we expect flexibility and participation Firstly, we learn from their very diversity that from workers when our grading and payment there are no neat formulae to be applied in systems are built on hierarchy and command, constructing a partnership. Each nation has hierarchies that still, for the most part, found its own form of accommodation, for embody an overwhelming racial dimension'.' the most part forged out of substantial social conflict. We must examine our own history Can we expect managers to compromise llieir and our own strengths and weaknesses and managerial authority when unions brook no construct a uniquely South African flexibility in their bargaining arrangement"-, partnership. often bargaining arrangements that we established 70 years ago, in a different We learn, secondly, that a social partnership industrial epoch? does not spell the end of the basic contradiction between capital and labour. Far And what of the Government's right to The state cannot from it. To a significant extent, however, govern, to formulate policy? Will it hide behind social partnership moves this contradiction compromise this in the name of an as yet industrial self out of the narrow distributional realm into untested social accord? governance but areas like employment security and creation, has to be a key labour skills development, work organisation player in the and also corporate governance and industrial Commitment process restructuring. We should not then kid ourselves that this It reflects a new ordering, a new social partnership can be built simply out ol' institutionalisation of this basic contradiction. goodwill and exhortation. It will take In a strong sense it demands an intensified commitment and a certain amount of

© II ^ il Ik © t-IIR! IfVtBBMID g 50 INDICATOR SA Vol 11 No 4 Spring 1994 r.rr .,|1 round. But, in my view, just as The prime examples of these We have unique i "v instructed a uniquely South underrepresented interests are small business experience of "• • • 'iccord in the constitutional realm, we and the unemployed. Just as the quest for tripartite policy p|aced to build an industrial high productivity seems to offer a prospect formulation for greater accommodation, so do the partnership- through requirements of small business and the institutions like unemployed seem to threaten the very basis h.lVC much going for ourselves. We have forums and the of this accommodation. mr' unions that have demonstrated National n ihilit\ and a willingness to sacrifice for Manpower While the reality of this threat should not be ihenational interest. underestimated, nor should it be exaggerated. Commission We have well organised employers who, Above all, it should not be allowed to Ifhough hitherto inclined to defend a narrow undermine the basis for the high productivity narwhial interest, have recently demonstrated partnership that I have sketched out. a new willingness to take on the political challenges of the new democratic order in Again a certain amount of flexibility and South Africa as well as the competitive winds mutual sacrifice is going to be necessary if blowing in 1'i'om the world economy. the imperatives of small business and the unemployed are to be addressed. We have wel I established bargaining institutions on both the shop floor and at the industrial lc\el, institutions that are by no Flexibility means perfect but that offer a solid basis for partnership building. We have unique Firstly, there is a need for flexibility in experience of tripartite policy formulation bargaining arrangements and collective and implementation through institutions like bargaining agreements. Hence, we will the National Economic Forum, the National have to recognise the resource constraints Other parties will Manpower ('ommission and the various of small start-ups and most probably permit have to concede a sectoral forums. multi-tier remuneration systems that, in a robust and active regulated fashion, accommodate the participation from interests of small businesses in their early The Ministrv of Labour is committed to the Government strengthening these institutions. High levels years. of flexibility are required from each one of them, At the same time we will not heed the Similarly, Public Works programmes will strident and short-sighted demands to only be effective on a sufficiently large scale deregulate the labour market and dismantle if there is a degree of flexibility with respect sonic of its vital institutions, without which to collective bargaining contract. this country's industrial relations would have been in complete disarray. Secondly, we will have to recognise that while small employers may require flexibility in staffing levels, the unions have an Government role absolutely legitimate right to demand employment security and worker rights. What of the Government's role in this accommodation? It is fair to say that the Here there is a major role for the state in tripartite arrangements that have sprung up in constructing retraining schemes as well as the last four years were largely created in a unemployment and other welfare schemes governmental vacuum. They were tripartite in that attempt to ameliorate the consequences name. In substance they were bipartite with of these conflicting renouncements. an illegitimate and increasingly incompetent government playing at best a neutral, at worst Thirdly, I insist that the weakness of small and more commonly an obstructionist role. and micro enterprises and their consequent shortcomings as providers of employment do While small Needless to say the role of the new not rest with employed workers and unions. employers may Government will be different. As part of our require flexibility in concrete support and encouragement of a They reside in racist regulation, in the staffing levels, the social accommodation, the other parties will barriers to entry established by our high unions have a have to concede a robust and active levels of concentration, and in the core of a legitimate right to participation from Government. system built on massive disparities in demand everything from access to basic residential employment We will not simply attend to take the minutes and industrial infrastructure through to basic security and and pick up the bills. We have constitutional literacy and numeracy skills. worker rights and electoral responsibilities. We have interests to represent: those whose voice is Overcoming these major constraints will lay not loud enough to be heard through the the basis for the emergence of sustainable medium of organised business and labour. small and micro enteiprises.

INDICATOR SA Vol 11 No 4 Spring 1994 51 ®BVK!!,© P>fifiBCStf reiSKjOg The Department of Destroying any semblance of order or amendments may be tabled in Parliiimcni Labour is outlining stability in the labour market might bring during the next sitting. Perhaps the most a five year plan short term relief to some, but it will destroy significant change will be the freedom »iVe which would the very basis for rising up the productivity to trade unions to political association and u restructure labour ladder, which is ultimately the only the funding of any political party of their ° functions and sustainable basis for an industrialised choice. adapt our labour economy and the long term success of the relations system Reconstruction and Development The process of formulating a new sei of iUWs Programme. governing labour relations in South A!Viu( started before the new Government canieht0 In mapping the role of the new Government being. We fully support the process taking in the context of globalisation and increasing place in the National Manpower Commission competition, the overriding guiding principle and expect that within the five year time is our respect for fundamental worker and frame of our transition plans South Africans human rights. We are committed to growth, will see the emergence of progressive ami but not at the expense of rights. acceptable labour legislation.

As President Nelson Mandela expressed in Moreover, new legislation must be easily the International Labour Organisation accessible and less cumbersome than the publication Visions of the Future of Social complicated legalistic explanations and Justice: "We cannot rebuild our society at the procedures we see today. If the law is not expense of the standard of living of ordinary understood by the constituency it is meant to men and women. We cannot develop at the serve, and if it keeps workers waiting in expense of social justice. We cannot compete uncertainty for more than a year because of without a floor of basic human standards." complicated legal procedures, then w e need to seriously address the issue of simplifying Perhaps the most These are the parameters within which the laws. significant Department of Labour will seek economic amendments to progress and growth. Can we afford to be bogged down with the Labour lengthy legal procedures and industrial Relations Act will relations systems when the world is moving be freedom for Plan at about 10 paces ahead of us in skills trade unions to development, technological advancement, political With all these challenges facing us, the cross border trade and marketing, and new association and to Department of Labour is outlining a five year work and employment patterns? funding political transitional plan which would involve restructuring the labour functions of the parties Effective competition on the world market Department and adapting our labour relations demands that we settle as soon as possible system within the context of a new labour some of the very basic industrial relations market policy. issues and seek better ways of managing conflict rather than letting conflict be the A key priority in this regard is to harmonise obstacle of economic and political progress. labour legislation and labour functions of the former homeland administrations. We The emerging social partnerships between currently have five director generals, several labour and capital must be strengthened to more chief directors, duplicate staff members enable us to jointly chart the difficult and and offices from Ciskei to Bophuthatswana. complex road ahead. The task of harmonisation is not as simple as proclamation. Tripartism, in our view, is a key component of labour market policy and we are fully In fact the task of harmonisation makes committed to drawing greater participation amending our Labour Relations Act seem from our social partners in both the pretty straightforward. On this score, some formulation and implementation of policies. OCOfil

© II ^ il Ik © t-IIR! If VtBBMIDg 52 INDICATOR SA Vol 11 No 4 Spring 1994 I 1 I 1 I I III The Aottom Line Dudley Horner South African Labour and Development Research Unit University of Cape Town

Minimum wage fixing is a common and desirable feature of many developing and highly industrialised countries. In South Africa this function has been performed for 70 years by the Wage Board. Though its history is chequered, a revamped Board could play a vital role in determining wage levels for uncovered workers and in mediating industrial disputes, argues Horner in a paper presented to the 7th Annual Labour Law Conference.

I is w iill .i strong sense of irony that I service from very highly paid Director come to ihe topic of reconstituting the generals down to lowly clerks, and this Minimum wage Wage Hoard. For over 20 years I have trickles through our educational system. The fixing is a been associated with criticizing the Town Clerks Act grades our local authorities widespread I and effectively determines minimum wages phenomenon Board in niunue detail. Here I am trying to praise rather \lnvn bury it. up the wage hierarchy. which appears in different guises in Before addressing the role of the Wage Board If MWF be a sin there are many sinners. The many countries. If it nia> he hclplul to contextualise the issue of real matter for debate is the institutions of our it is a sin there are minimum w age fixing (MWF) which usually labour market(s) which affect the incomes of many sinners generates mure heat than light, particularly in our people and determine their wealth or the world ol uiihodox economics. poverty.

We nuisi disabuse ourselves of the In a very sober and perceptive article, written conventional and shallow notion that MWF is over 12 years ago, Norman Bromberger the domain ol the trade unions affecting only catalogued and evaluated those government production and (hopefully) productive policies relentlessly pursued between 1940 workers. In this country, in many other and 1980 which have given rise to what is developing own tries, as well as in developed probably the most skewed distribution of countries up to the group of seven most income distribution in the world. industrialized nations, MWF is a wide-spread The real matter for phenomenon w Inch appears in different He focused our attention on the role of debate is the guise-.. government as a rule-maker and as a price institutions of our and wage controller. It is in this context that a markets which We ha\e all noted, with some horror, that the wage policy must be located. affect the incomes minimum v, nges of our new legislators have and wealth of our been fixed h\ judicial commission in line people with the mai kei This poses the question of which niaikei:' It is certainly not the same Workers market in which the wages of mine workers In South Africa at the present time, and apart and domestic workers are fixed. from the institutions mentioned above, there are four principal mechanisms for fixing i hasten to add that legislators are not the only wage rates: employees in this fortunate position. The wages of our judges are fixed and will Industrial Council Agreements negotiated presumably continue to be by the Judicial between labour unions and employers or •Services Commission. The wages (they call organisations, and sanctioned by the them fees) of our lawyers are fixed in terms Minister of Manpower (Labour). of the Advocates and Attorneys Acts. The In South Africa same is true of our doctors in private practice Wage Determinations, or Labour Orders, there are four as well as our accountants and auditors. made by the Wage Board and sanctioned principal by the Minister of Manpower (Labour). I he Commission for Administration mechanisms for determines the wages of our vast public Private agreements between labour unions fixing wage rates

27 vimcs m 12 INDICATOR SA Vol 11 No 4 Spring 199427 vimcs m Of 7,8 million and employers or organisations. Of these report to him on wages and working economically the most significant is in the mining conditions and make a recommendation in active people in industry, where annual negotiations and this connection. The Board is thus subject t the formal sector their outcome resemble Industrial Council the Minister's control, its effecti\ c role js ° agreements. determined by the Minister and ii is in 1992, nearly influenced by government policy. four million were • The Public Service, where wage scales covered by a used to be determined by various state The Board's history dates back to the Watv minimum wage departments but principally by the Act No. 27 of 1925, and from its inception Commission for Administration. The the Act was 'colour blind': no explicitly Public Service Labour Relations Act of racist provisions could be incoipor.ited. 1993 and the Education Labour Relations Nevertheless, in the earlier years, the Act was Act of 1993 extended collective aimed at eradicating the 'poor white bargaining extensively in this arena. problem' in terms of the government's 'civilised labour policy'. Of 7,8 million economically active people in the formal sector in 1992, nearly four million As Donald Pursell notes: "What the Board were covered by a minimum wage of one attempted to do was fix a minimum above sort or another (Table 1). what was being paid and rely upon emnloyer reluctance to pay this higher wage to non-Europeans." Table 1 Workers Covered by Some Sort of Minimum Wage 1992 This policy was not pursued in isolation. As Iraj Abedian and Barry Standish ha\c shown, I.C. Agreements 1 275 000 it was only one aspect of a much broader Wage Determinations & Labour Orders 773 100 system to promote white advancement. It is Public Servants 1 360 100 important to bear this in mind today. Mineworkers 500 000 Within this framework the Board, under its Total 3 908 200 first chairman FAW Lucas, pursued a Sources: Department of Manpower, Annual Report for 1992; Central Statistical Services 1993; programme so vigorous and inno\ alive that and National Manpower Commission, Annual Report for 1993. the state obliged the entire Board to resign in 1935. There are some who maintain that the threat of Wage Board activities gave impetus The major sectors of the uncovered labour to the establishment of the earliei industrial force, both excluded from the Labour Councils. Relations Act and the Wage Act, are farm labour and domestic labour in private As the 'poor white problem' receded the households, where 872 900 and at least Board, from 1936 to 1950, setitscll the 800 000 workers are employed respectively. explicit goal of raising unskilled black minimum wages. From 1950 to 1<>5(i the The state, via the National Manpower Board, in line with government policy. was The Board is Commission (NMC), is investigating the relatively inactive and made few subject to the possibility of extending the Wage Act to recommendations. Minister of farmworkers following the passage of the Manpower's Agricultural Labour Act of 1993 and a From 1957 to 1966, under the chaii manship control, its subsequent agreement between Congress of of WFJ Steenkamp, the Board rev i v ed i I s effective role is South African Trade Unions and the South activity and, Pursell maintains, had a positive determined by the African Agricultural Union. impact on the real earnings of black w orkcrs. Minister and it is which rose by as much as 30%. influenced by government policy Wage Board Between 1966 and 1973 the Board's level ol' activity fell, again in line with government Loet Douwes-Dekker has provided a useful policy, and by 1973, of the 75 wage description of the Wage Board and its determinations in force, only six had been activities, while detailed analysis of specific re-investigated in less than four years. issues is provided in irregularly revised South African Labour and Development Research Three were over 20 years old, a furilicr nine Unit (Saldru) publications which tend to carp were between 10 and 20 years ol land ID about the low level of the minimums set in were older than six years. It appears that on wage determinations. average the Board's cycle of investigation ol an industry or trade in the period I to Briefly, the Wage Board is appointed by the 1973 was seven years. Minister of Manpower who also designates the chairman, and it may investigate any After a wave of wildcat strikes in I '>?.* ihc trade or industry at the Minister's direction, Board, under the chairmanship ol 1 lugli

© II ^ il Ik © t-IIR! If VtBBMIDg 54 INDICATOR SA Vol 11 No 4 Spring 1994 - was again galvanised into a flurry of 1989 that the number of determinations in As trade unions • revising outdated instruments and force would be reduced from over 70 in have grown to !'new determinations and labour operation in the 1970s to 38 or fewer due to incorporate nearly "while only eight determinations were the cancellation of old orders and the 3,5 million . cle'in l1^-- were made in 1973. amalgamation of new orders. workers, the size of the order- were an innovation enabling The Board moved swiftly to implement their 'unorganised' intentions. Between 1989 and early 1991 the • mm waues to be instituted or amended segment of the m number of determinations and labour orders -"!out the Hoard's rather cumbersome labour force has was reduced from 51 to 29. Of 24 notices of jgatory method. Between 1973 and shrunk Ktffl the a\cragc real earnings of African cancellation issued, one determination was rkcrs emplo^ ed in those sectors affected replaced in part by an Industrial Council h^thc B:>ai'd rose, but began to stick in later agreement while four in the food sector were amalgamated into two. Dears when the Hoard began to apply the mvernivent's policy on containing inflation to the "uncoN crcd' sector of the workforce. It is probably true that nearly all the sectors affected by these cancellations have been The Board itself claims that in the early unionising rapidly in recent years. The NMC 1970s. in line among other things with the estimated in 1993 that there are more than government's response to the 1973 2,89 million members of registered unions demonstration stoppages, it was 'in a position and a further 528 000 in unregistered unions. By June this year, to compensate for inflation ... by building in an incrcjsc of tip to 2% in real wages'. At the end of June 1994, the number of wage the number of determinations had plummeted from over 70 wage determinations In recent times the Board's sensitivity to the in the 1970s to a mere 19. government's 'collective campaign against had plummeted inflation', dating from 1975, has been from over 70 in reinforced In its sensitivity to government's Aims the 1970s to a deregulation objectives aimed at promoting mere 19 the small business sector. It is apparent that the Wage Board has a clear notion of its aims. In those areas of economic According)), since March 1986 it has activity which it regards as remaining within included deregulation clauses, based mainly its jurisdiction it clearly attempts to establish on the numhc: of employees in the enterprise, a normative minimum wage which it slices in most uajjc determinations and labour by sector and again between metropolitan orders. 'I his bodes ill for organised labour. areas and smaller cities, towns and country areas. In NK8. v, hen Saldru last analysed wage inovcmeni. ihe \ alue of rates for the labourers Of the 19 determinations and orders, some 14 category sei h\ the Board was only 56,2% of establish the same minimum wage by thai set h\ Industrial Councils compared with industry or trade for all four metropolitan 78..V,; in" 107s. areas. In these areas it has determined that the The minimum minimum wage for labourers between 1991 wage for labourers and 1994, and currently effective, shall be between 1991 and between R.81,29 per week (R352 per month) Unions 1994 is between and R157,44 (R682 per month). R81,29 and A fuiiheraspcci of policy requires R157,44 per week examination. Since 1937 the Department of It has differentiated between the metropolitan Labour i lattei K Manpower) has applied the areas in five areas of economic activity Wage Act onl\ when regulation under the (Table 2). Labour Relations Act was not practical because: It would be interesting to have the rationale for the differentials explained in each ^ oilers and/or employers were not instance. It may well be that the ability of organised in a sector; Table 2 Where they were organised, one or the Remaining Metropolitan Differentials other failed or refused to enter into collective bargaining Industry High wage Low wage Civil Engineering 199,18 185,84 As trade unions have grown and consolidated to incorporate nearly 3,5 million workers, Clothing & Knitting 134,90 71,70 obviously the size of the 'unorganised' Hotel Trade 96,07 73,21 segment of the labour force has shrunk. Laundry 120,98 99,36 109,50 As a result the Wage Board announced in Road Passenger Transport 121,00

INDICATOR SA Vol 11 No 4 Spring 1994 55 ®BVK!!,© P>fifiBCStf reiSKjOg We should turn small businesses to pay is considered a more An economic shock of this nature, doubling our collective important factor in some of our major cities the cash earnings of farm labour, might be wisdom to than in others. too severe for agriculture to absorb and reshaping the would probably adversely affect the non-cash Wage Board and The area differential between the component of the farm wage: free housing, rations, medical treatment, farm schooling, giving it the tools metropolitan areas and other areas is even more intriguing: it ranges from R9,93 per access to firewood, the right to live on the to do the job week in accommodation establishments to an farm after retirement etc. astonishing R63,20 in the clothing industry. Domestic workers in the employ of private We have, thus far, subjected the Wage Board households - about 800 000 regular or casual to a harsh interrogation and it may now be workers, most of them women - mirror the more seemly to consider whether its potential plight of the farm worker in that cash wages virtues do not outweigh any blemishes we are low and the non-cash component is an have uncovered. important part of their gross earnings.

I am convinced that a more virtuous role may The other areas of activity excluded from the be the destiny of the Board with the support purview of the Wage Board could also of a ministry aided by a government benefit from closer scrutiny. As there are rich interested in pursuing active labour market and poor farmers so there are rich and poor policies in the broadest sense. institutions. Exemption from the terms of a wage determination for the poor may be more appropriate than exclusion from the Future function Wage Act. Let me say forthrightly that the Wage Board It seems obvious to me that the Wage Board is an instrument in the hands of government: could be positioned to play a vital role in it can be employed delicately or it can be detemiining the remuneration levels of used as a bludgeon. Its latent power is workers in those areas of economic activity REFERENCES considerable. In terms of the Wage Act the previously excluded. Abedian i and Standish B only areas of economic activity exempt from (1985) 'An Economic Enquiry into the Poor White its scrutiny are: Moreover, it could play an even more Saga'. Saldru Working effective role in MWF in general. It has the Paper No.64. Agriculture; experience and records gathered over nearly Bromberger N (1982) 'Government Policies Domestic service in private households; 70 years to explore the complex issues Affecting the Distribution of State institutions; involved in setting standards for wages and Income 1940-1980', in Universities and public schools; other conditions of work. At times in its Schrire R (ed.) South Africa: Public Policy Perspectives. Charitable institutions; history it has been accountable and Juta, Cape Town. Institutions for the care of the blind transparent. Douwes-Dekker L (1990) 'Statutory Institutions of the Department of Manpower'. At the stroke of a ministerial pen, subject to From the 1930s until the mid-1970s it also Bilateralism Project of the Cabinet sanction and parliamentary assent, provided us with the fullest set of labour Wits Business School, Johannesburg. these exclusions may be eliminated by a market information we have ever had. It Pursell D (1967) 'Wage simple amendment of Section 2(2) of the could do this again. Regulations Under the SA Wage Act (No. 5 of 1959). Perhaps some of Wage Act'. Ann Arbor, University Microfilms Inc. them deserve this fate. In the arena of industrial disputes it could Pursell D (1968) 'Bantu Real also be far more vigorously engaged. In a Wages and Employment It is a truism that conditions in agriculture recent acrimonious dispute referred to the Opportunities in South Africa'. In SAJE 36 (2). vary widely both within and across the Industrial Court for compulsory arbitration, Shaheed Z (1994). 'Does boundaries of magisterial districts, where I endured days of tedious, unnecessary South Africa need minimum agricultural regions and provinces, as the and costly wrangling, it was borne forcefully wages as part of a system of labour standards? An ILO experience of researchers during the Second in upon me that we were sitting through an Perspective'. Paper for the Carnegie Inquiry into Poverty and utterly inappropriate process. Minimum Wage Development in 1983/84 showed. Subcommittee, National Manpower Commission, The Industrial Court has neither the Midrand, May 1994. In some rural areas within the same magisterial experience nor the requisite staff to unravel Spandau A (1972) 'South district rich and poor farms are neighbours and the complexities of MWF. The Wage Board African Wage Board Policy'. In SAJE 40 (4). a small unit of five hectares can be rich while has. We should turn our collective wisdom to Steenkamp WFJ (1962) much larger units can be poor. reshaping the Wage Board and giving it the 'Bantu wages in South tools to do the job. U0O& Africa'. In SAJE 30 (2). Young RG (1990).'A In 1990, advocates of a campaign for a National Minimum Wage: national minimum wage pressed for a Stepping Stone to the Living minimum of R500 a month for farm workers Wage'. Paper for the ACKNOWLEDGEMENT Economic Service Groups nationally. Well intentioned though such I am deeply indebted to my colleagues Ameena Palker and National Seminar. Paarl. propositions are, they raise questions which it Faldie Esau for their assistance in preparing this paper. The would be irresponsible to ignore. usual disclaimer applies.

© II ^ il Ik © t-IIR! If VtBBMIDg 56 INDICATOR SA Vol 11 No 4 Spring 1994 promoting Affirmative Action

Julio Faundez School of Law, University of Warwick

Given the legacy of apartheid, South Africa is one country where the case for affirmative action appears to be compelling. But it would be a mistake to expect affirmative action instantly to resolve the problems of a deeply unequal society. It will only be effective if used with caution and combined with coherent policies in key social sectors, argued Faundez at the 7th Annual Labour Law Conference.

ffirmative action involves treating this policy, the fact that some individuals people belonging to a specified are given the opportunity to demonstrate Affirmative action group differently so that they their abilities and skills enhances the obtain an equitable share of a is controversial standing of the whole group in society. because it is seen Aspecified good. In the area of employment, as a challenge to ji:, object is generally to ensure that the The debate over affirmative action, informed the liberal target group is equitably represented in the as it is by the conflicting ideological work force of a particular employer. perspectives of the participants, is principle of interminable. The concern here is not to equality and an Affirmative action is a controversial issue evaluate the merits of these arguments, but undesirable because it is seen as a challenge to the liberal simply to offer background information intervention in principle of equality and because it is which will, hopefully, help to clarify some of management regarded as an undesirable intervention in the points made by both proponents and decisions which, on efficiency grounds, are critics of affirmative action. better left to the discretion of management. For the arguments made by both sides raise Critics of affirmative action also point out important issues which can and ought to be that it has a negative effect on the general the object of careful analysis. Affirmative morale of the work force. For while those action - not unlike any other public policy - who benefit from the policy are made to feel can be good, bad or even indifferent. that they are underqualified for the job, those Affirmative action - who are not members of the target group feel A poorly designed or badly administered not unlike any that they have been treated unfairly and lose affirmative action policy can bring about other public policy their drive to work. enormous economic and political hardship - can be good, both to individuals and to society. bad or even Critics also point out that affirmative action Affirmative action, on the other hand, can policies only benefit a small segment within also be a necessary and useful policy tool to indifferent the target group, generally those who are bring about social justice and to further the better educated and hence do not need process of national reconciliation. affirmative action to secure a job or a promotion. Thus, according to these critics, Affirmative action is a powerful and delicate affirmative action not only fails to improve instrument which ought to be used with the lot of the target group, but also caution. In the following paragraphs I discuss exacerbates differences within it. some of the main issues likely to arise in the process of formulating and designing an Proponents of affirmative action, for their affirmative action policy for South Africa. part, claim that measures which improve job In an equal opportunities for members of target groups act as an incentive for them to compete and opportunities develop new skills. They point out that by Limits of equality system, not all agents have the promoting wider participation of members of Employment decisions are generally regarded the target group in the labour market, as fair when there is equal opportunity for all same chance of affirmative action improves the morale of the participants. In an equal opportunities system, achieving the workplace, and makes a contribution towards not all agents have the same chance of desired goal, but national integration. achieving the desired goal, but they are all they are all provided with equal means to achieve it. provided with Proponents acknowledge that while not all Hence, an equal opportunities system does equal means to members of the target group will benefit from not yield equality of result. achieve it

12 INDICATOR SA Vol 11 No 4 Spring 1994 27 vimcs m The unequal The unequal outcome of an equal In the United States, for example, affirmative outcome of an opportunities system is caused by the unequal action came about as a consequence of the equal skills or talents of the participants. While in failure of the formal system of equal opportunities theory the means available to the participants opportunity to eliminate discrimination system is caused are equal, they do not all use these means against blacks and other minorities. by the unequal with equal talent or skill. Equal opportunity is thus consistent with the model of a market skills or talents of Thus, it is reasonable to expect that thc system where unequal results are seen as the outlawing of apartheid in South Africa - an the participants engine of the competitive process. essential first step towards a more egalitarian and democratic social order - will not Since competition within an equal instantly eradicate apartheid from the I'ahrie opportunities system is a continuous process, of society. The legacy of apartheid is likely u» today's losers know that with a bit of effort live on for some time in civil society and in and perhaps better luck, the market is likely many of the country's institutions. to yield better results tomorrow. Unequal outcomes are not regarded as unacceptable, It is within this context that a carefully either from a moral or political point of view. designed affirmative action programme can make an important contribution. For policies giving preferential treatment to groups that Equal opportunity were victims of discrimination should be aimed at eliminating the present The shortcomings of a strict equal consequences of past discrimination. opportunities system are well known. Unequal results do not come about only Affirmative action can thus become a key because participants fail to make use of the mechanism for remedying the shortcomings resources at their disposal with equal skill or that are the inevitable result of a strict The need for application. The problem is that in practice, application of an equal opportunities policy. affirmative action not all means that have a bearing on a given stems from the outcome are equalised. The link between affirmative action and realisation that equal opportunity is clearly expressed in equal In some instances - such as in the case of Canada's Employment Equity Act. The opportunities does intelligence or individual aptitudes - because purpose of the Act is to achieve equality in not produce it is impossible; in other instances because it the workplace so no person is denied results which are is morally objectionable - such as removing employment opportunities or benefits for fair or even children from their parents to ensure uniform reasons unrelated to ability, and to correct disadvantage by giving effect to the principle economically psychological traits. These examples are, on the whole, not contentious. that employment equity means more than sensible treating people in the same way "but always The real problem in an equal opportunities requires special measures and the system is that the unequal distribution of accommodation of differences". means is in turn the consequence of unequal distribution in previous rounds of allocation. In the US, the Equal Employment Opportunities Commission (EEOC) Thus, a society which has consistently denied Guidelines on Affirmative Action place it basic education and health to the majority of firmly within the perspective of equal the population can hardly rely exclusively on opportunities. Affirmative action is defined an equal opportunities policy to judge the as action "appropriate to overcome the fairness of employment decisions. effects of past or present practices, policies or other barriers to equal opportunity". One way of resolving this problem is by introducing policies which attempt to The actions which the Guidelines envisage Policies giving equalise the means at the disposal of include measures which are race, sex or participants, thus making their prospects national origin conscious; that is, measures preferential more equal. Another way is to allocate means which take these factors into account in order treatment to unequally among participants so that the to enhance employment opportunities of victims of prospects of achieving the desired goal are minorities and women. discrimination more equal. should be aimed at eliminating the These two approaches to the problem raise Measures present issues which have a bearing on affirmative consequences of action. The need for affirmative action in fact The link between affirmative action and past discrimination stems from the realisation that a formal equal opportunity provides us with a basis system of equal opportunities, though upon which to select appropriate affirmative desirable, is not adequate for achieving action measures. These measures range from results which are fair or even economically those which are meant to ensure the proper sensible. operation of an equal opportunities system to

© II ^ il Ik © t-IIR! If VtBBMIDg 58 INDICATOR SA Vol 11 No 4 Spring 1994 ,sc which involve preferential treatment of is often the target of open hostility and Affirmative action p^1,pic'in target groups. isolation among colleagues. must be flexible, tailored to specific Recausc the ultimate objectives are to Appointing or promoting unqualified people needs and only in ; .uj'^vc fair equal opportunity these measures is rejected because it contravenes the merit place until the ''uist be flexible: tailored to specific needs principle which requires that the best objective of •inc only in place until the objective of qualified be chosen. Since affirmative action equitable ' litablo representation is achieved. involves preferential treatment for certain representation is individuals, it would appeal- that it is Affirmative action thus covers a variety of achieved mcaunvs designed to ensure that equal inconsistent with the merit principle. opportunity obtains in practice. This is an issue which has troubled promoters j-or example, barrier elimination measures of affirmative action. In the US, for example, such as getting rid of testing requirements not the 1964 Civil Rights Act provides that related to the job, reviewing interviewing nothing in Title VII of the Act shall be practices and fair recognition of interpreted as requiring an employer to grant qualifications and work experience are all preferential treatment to any individual or essential components of affirmative action group because of race, colour, religion, sex or programmes. This is also true in the case of national origin. job accommodation measures such as flexible hours or the provision of facilities to ensure This section was interpreted by the Supreme easy access to buildings. Court, which upheld a voluntary affirmative action plan in the case of United Steelworkers versus Weber (1979). Acceptability The plan had been established in a collective Appointing or Sinne al lirmative action measures are less bargaining agreement between the Steel promoting coninn ersial than others. Measures such as Workers Union and Kaiser Aluminium and unqualified people those aimed at broadening the scope of a firm's Chemical Corporation, and its object was to recruitment efforts, or which involve the review eliminate racial imbalance in a craft is rejected of selection and promotion procedures, are workforce which was almost exclusively because it acceptable even to many who, in principle, are white. It established a training programme contravenes the opposed to affirmative action. that reserved 50% of openings for black merit principle employees and set hiring goals for blacks at a Likewise, the provision of special training for percentage equal to that of blacks in the local groups who have suffered discrimination is workforce. widely accepted. Indeed, given the special needs of South Africa, the provision of The Supreme Court rejected the argument accelerated training is likely to become one that voluntary racial preferences were not of the most important components of allowed under Section 703(j). According to affirmative action. the Court, it does not limit what private employers or unions are permitted to do with Other measures are less acceptable either on respect to such preferences. grounds of economic efficiency or fairness. This is the case, for example, if employees The Court argued that there was serious are dismissed to make room for a person underutilisation of blacks in the relevant job from a target group. Likewise, the creation of categories, that the plan did not unnecessarily supernumerary jobs simply to meet trammel the interests of white employees as it affirmative action goals is neither did not require their discharge, that it did not economically nor politically wise. absolutely bar the employment or advancement of white employees, and was a Perhaps the most controversial of all temporary measure. In the US, affirmative action measures is the hiring of affirmative action people who do not have the requisite skills or These four factors can be seen, in my view, can be reconciled qualifications to do a particular job. This as an attempt by the Supreme Court to with the merit measure is unacceptable for several reasons. reconcile affirmative action with the merit principle if First, because it is economically inefficient principle. The plan is acceptable to the Court programmes are and could well endanger the health and safety insofar as it is flexible, is not an absolute bar flexible, temporary of a large number of people. to employment of persons who are not in the and do not target group and it has a limited duration. absolutely bar Second, because it generally involves people not in the excluding a qualified person, thus giving According to this interpretation, affirmative credibility to the allegation of reverse action is thus a temporary and limited target groups discrimination. And thirdly, because it is departure from the merit principle in order to generally counter productive as the individual eliminate racial imbalance in the workforce. who benefits from such 'token' appointment Other cases confirm that affirmative action is

INDICATOR SA Vol 11 No 4 Spring 1994 59 ®BVK!!,© P>fifiBCStf reiSKjOg The ILO's draft permissible as a temporary and flexible which set numerical quotas. In these cases, policy for Namibia departure from generally accepted practices - the Court took into account the fact that the reconciles that is, the merit principle. affirmative action plan which required preferential recruitment or promotion quotas were treatment with In Australia, the Affirmative Action (Equal flexible, narrowly tailored and did not imp(,sc merit, using the Employment Opportunities for Women) Act, an intolerable burden on non-minority applicants. notion of 'suitably 1986, contains a strong reaffirmation of the qualified persons' principle of merit. Section (4) of the Act reads: "Nothing in the Act shall require the Setting numerical quotas is an indispensable relevant employer to take action feature of any meaningful affirmative action incompatible with the principle that programme. An alternative approach is to employment matters should be dealt with on interpret the goals as flexible targets which the basis of merit." This section appears to have to be realistically based on the exclude the notion of preferential treatment circumstances of each employer. and, not surprisingly, has prompted a debate on the definition of merit. This is the approach taken by the contract compliance programme in the United States. The International Labour Organisation's The ILO's draft on Namibia also follows this (ILO's) draft affirmative action for Namibia approach: it requires companies to set approaches the problem from a different numerical goals, but in determining whether angle. Instead of seeking to reconcile an employer has complied with such goals, it preferential treatment with merit, it uses the takes into account the extent to which thc notion of 'suitably qualified persons'. employer has made good faith efforts to achieve them. Employers are required to give preferential treatment only to suitably qualified people in This flexible approach to the interpretation of Setting numerical designated groups. Since suitably qualified employers' obligations is consistent with the quotas is an people are not necessarily the best applicants, fact that employers are only required to indispensable employers will be able to comply with their afford preferential treatment to suitably feature of any affirmative action obligations without qualified people. If such people are not meaningful breaching the minimum standards required available, employers would not be able to affirmative action for the job. Employers also have to review fulfil their obligations. Hence the need to programme, but the standards upon which they make interpret this obligation in a flexible manner. they must be employment decisions to ensure fan- flexible treatment of all candidates. Conclusion Quotas In preparing an affirmative action policy for South Africa, it is important to take into One of the most heated controversies in the account the experience of other countries. field of affirmative action concerns the extent Affirmative action is used in many countries to which affirmative action can be expressed to achieve a variety of objectives. While there in numerical terms: whether quotas can ever is no ideal model, the experience of others be justified. should be a valuable source of information and, perhaps, inspiration which may help in To understand the nature of this controversy the choice and design of affirmative action in it is important to bear in mind that the use of South Africa. statistics is a necessary tool in the process of determining whether discrimination may Given the legacy of apartheid, South Africa have occurred in a particular case. Likewise, is one country where the case for affirmative the use of numbers and percentages is action appears to be compelling. It would be necessary in order to monitor progress in an a mistake, however, to expect affirmative The success or affirmative action programme. action instantly to resolve all the problems of failure of a society plagued by extreme forms of affirmative action The issue of quotas may arise from the fact inequality. It will only be successful if will depend largely that employers who find that members of the combined with coherent policies in key social on the successful target group are under represented may be sectors. implementation of required to set goals and a timetable to social policies at a correct this problem. Goals and timetables, if Affirmative action should not be seen as a wider national level interpreted rigidly, could easily become substitute for social policy. It cannot, by quotas which employers fill, regardless of the itself, bring about greater access to social qualifications of the candidates, to comply goods such as employment, education, health with their affirmative action obligations. and nutrition. The success or failure of affirmative action will, however, depend The US Supreme Court has, on several largely on the successful implementation of occasions, approved court ordered plans social policies at a wider national level.

12 INDICATOR SA Vol 11 No 4 Spring 1994 27 vimcs m 0MPARAT1VE

T M O N l °

Selected sectoral shares of provincial GGP

Total contribution of this sector to GGP - 15.07% Total contribution of this sector to GGP = 24.87%

General Government

Total contribution of this sector to GGP = 14.69% Total contribution of this sector to GGP - 15.05%

See Economic Monitor cover on page 33 for a comprehensive list of the different sectoral contributions to each province.

Laying the Past to Rest

By Andre du Toit Department of Political Studies, University of Cape Town

The new Government's proposed Commission on Truth and Reconciliation is bound to be controversial. But drawing on international experience, the Commission will wisely place concern for 'truth' above 'justice', ensuring public acknowledgement of serious human rights violations under an agreement for political amnesty, and it could help settle accounts from the past and contribute towards national reconciliation.

he notion of a Truth Commission different and more recent experience of The Truth is a novel development in South certain Latin American countries, particularly Commission African politics. When, not long Chile. proposals stops after the April 27 elections, the short of the Tnew Minister of Justice Dullah Omar For a proper understanding of the distinctive prosecution for proposed setting up a Commission on Truth aims and objectives of a Truth Commission it 'crimes against and Reconciliation, it became clear that this is helpful to survey developments leading to humanity'. It is notion was not yet generally well proposals for a commission of this kind. understood. concerned with acknowledgement of human rights The question of amnesty for acts associated Nuremberg with political objectives is, of course, highly controversial, as is the demand that serious The Nuremberg trials, in which a number of human rights violations of the recent past German leaders were prosecuted before an need to be brought into the open. international tribunal for war crimes and for crimes against humanity, remains a major In this highly charged context the unfamiliar historical landmark. But the trials required a idea of a Truth Commission was readily very special set of political circumstances, confused with the quite different model of the following the German defeat in World War Nuremberg Trials. In some minds it even II, and left a decidedly ambiguous legacy. The concern with conjured up an Orwellian spectre of political 'truth' actually show trials in which former political leaders There can be little doubt that Nuremberg set a and their henchmen would be prosecuted for dramatic example for dealing with war means that the the crimes of apartheid. crimes and human rights abuses from the past demands of through the means of law. It marked a justice' are not to In fact the proposal for a Commission on decisive break between the Nazi past and the be an overriding Truth and Reconciliation has quite new West German constitutional democracy. priority deliberately not been based on the the Nuremberg Trials in post-war Germany. It More specifically Nuremberg effectively has different aims and objectives, appropriate established the concept of crimes against to entirely different political circumstances. humanity in international law; henceforth due obedience - Befehl ist Befehl - could no It consciously stops short of the prosecution longer be invoked when gross violations of of political leaders for 'crimes against human rights were at stake. humanity'. Instead it is concerned with public acknowledgement of serious human rights On the other hand, it is evident that the violations of the past in terms of an Nuremberg Trials were possible only in the It does not derive agreement for political amnesty. The concern context of the military defeat and from the with 'truth' actually means that the demands unconditional surrender of Nazi Germany. Nuremberg Trials of 'justice' are not to be an overriding priority. Even so the Nuremberg process must be but is based on judged as mostly failed. the very different This notion of a Truth Commission did not come from nowhere, but has its own Though it compares favourably with the experience of genealogy. It does not derive from the excesses of popular vengeance wreaked on certain Latin Nuremberg Trials but is based on the very former oppressors and collaborators in the American countries

INDICATOR SA Vol 11 No 4 Spring 1994 63 ®BVK!!,© P>fifiBCStf reiSKjOg The lesson of aftermath of the war in countries like France, The context, as in the South African case, Nuremberg is that Belgium and the Netherlands, Nuremberg was usually not an overthrow of power or a there should be no remains a classic instance of 'victors' complete military defeat. Instead these other trials justice'. It was manifestly ill-suited to problems tended to arise in the negotiated establishing a political culture of universal and incomplete transitional process, and the following the human rights and the rule of law. quest for justice in transition had to be model of the tempered by the need to consolidate a still Nuremberg trials War crimes by the Allied forces were not insecure democracy. likewise prosecuted, and representatives of Stalinist Russia who were manifestly guilty What emerged is that there are no simple and of offenses similar to Germans prosecuted at safe solutions to the complex problems of Nuremberg, served on the tribunal itself. dealing with the legacies of past abuses. A striking aspect of these comparative cases is More specifically, prosecutions at the wide range of different responses to Nuremberg in terms of ex-post facto laws similar problems, depending on local tended to go against one of the fundamental circumstances and dynamics. tenets of the rale of law itself. In a recent assessment Istvan Deak concludes that it In Spain, one of the more successful would have been better if the defendants had democratic transitions, the issue of dealing been tried under existing German laws and if with the abuses of the past was, by tacit the political and legal accounts with the past agreement, kept off the national agenda had been settled by Germans among during the transitional period and its themselves. immediate aftermath.

We must, as the New York Review of Books In Brazil, too, there was no official enquiry commented in October 1993, avoid "the but an extraordinary covert operation by a A problem of new sorry spectacle of a country or countries small group of human rights lawyers resulted democratic equally guilty of war crimes sitting in in the publication in 1985 of Brasil: Nitncu governments was judgement over the defeated country .... The Mais - 'Brazil: Never Again' - providing how to deal with lesson of Nuremberg is that there should be comprehensive sets of documents detailing political atrocities no other trials following the model of the many cases of official torture. In El Salvador and human rights Nuremberg trials". there was an official Truth Commission, but abuses committed in the form of an international tribunal under by the preceding Though Nuremberg cast a long shadow, it United Nations auspices. regimes has not found many emulators. The Nuremberg model, based on political The three most influential cases, though, conditions created by defeat in war, has proved to be those of Argentina, Uruguay mostly not applied when dealing with past and Chile which followed each other during abuses has had to be faced as an urgent the 1980s. Significantly, they interacted and political priority. And there were good influenced one another, constituting a kind of reasons to doubt the wisdom of following comparative international learning this course of action. experience.

Latin America Argentina It was in another part of the world and in a The Argentinian example came first, vividly different set of historical circumstances that demonstrating the risks for the transitional the distinctive notions informing a Truth and process of seeking justice through Reconciliation Commission, concerned with prosecution. After years of an internal 'dirty public acknowledgement of past human war' the position of the military junta in rights abuses more than with punishment Argentina became untenable in the wake of The quest for through prosecution, first took shape. defeats suffered during the Falklands war. justice in transition had to be During the past two decades a range of Among its finals acts in 1983 it announced a tempered by the countries in Southern Europe and Latin Documento Final - 'Final Document' - need to America experienced similar transitions from setting out its position with respect to human consolidate a still authoritarian rale to some form of democracy. rights violations, and promulgated a law of insecure self-amnesty. One of the first acts of the democracy A recurrent problem faced by the new incoming civilian government under democratic governments in Spain, Brazil, President Alfonsin was to set aside the Argentina, Chile and other countries was amnesty law. how to deal with the legacy of political atrocities and human rights abuses committed Instead the new government appointed a by the preceding military and/or authoritarian National Commission on the Disappeared regimes. which published in 1986 Nunca Mais -

© II ^ il Ik © t-IIR! If VtBBMIDg 64 INDICATOR SA Vol 11 No 4 Spring 1994 \Ne\ er Again: The Report of the Argentina pardon. In the eyes of some observers, the National Commission on the Disappeared' - Argentinian attempt to achieve justice for scrupulously documenting the fate of almost past abuses had overreached itself, lJ 000 cases of the 'disappeared', including endangering the democratic transition and testimonies by victims and witnesses of eventually forcing the civilian government to tortui e and other atrocities. legitimate the self-amnesty of the previous military rulers. The ;:overnment also proceeded with public trial- of leading military figures, including key members of the junta, who had been Uruguay The Argentinian responsible for or involved in gross human example vividly rights violations. When it became clear that No doubt partly under the influence of the demonstrated the the military Supreme Council was not drama being played out in neighbouring risks for the prepared to execute these prosecutions, they Argentina, key leaders negotiating the transitional w ere earned through with some success in Uruguayan transition embarked on an process of ci\iii.m courts. opposite course. seeking justice through Hut once started, the process of settling Though never spelled out in public, the Club prosecution accounts with the past proved difficult to Naval negotiations which led to the military contain. Alfonsin's civilian government did rulers stepping down in 1985 must have not succeed in persuading the military to involved some tacit agreement that the new pin gc themselves through military tribunals, civilian government of President Sanguinetti and lound it difficult to limit prosecutions in would not proceed with prosecutions for past the face of mounting popular pressures and atrocities, though it left the door open for the independent proceedings of the civilian civil actions. courts. A general amnesty for political prisoners was When the prosecutions extended to proclaimed, but this expressly excluded middle-ranking officers, Alfonsin's violators of human rights. Many civil actions government was faced with a military were launched, but these were consistently insurrection in the 'Easter rebellion' of 1987 defied by the military as a matter of principle and had to back down. Further prosecutions and honour. were stopped by the law of the Punto Final, The Argentinian and a law of due obedience was enacted Soon the effective impunity of those who had attempt limiting prosecutions for human rights crimes been responsible for atrocities became a by military officials. burning public issue while a showdown with overreached itself, the military loomed for the civilian endangering the Following the 1989 elections, the government government. Late in 1986 the government democratic of President Menem agreed to a presidential introduced a law effectively guaranteeing the transition

INDICATOR SA Vol 11 No 4 Spring 1994 65 ®BVK!!,© P>fifiBCStf reiSKjOg The first priority of military impunity from prosecution for friends and colleagues, as well as on offn;ja| Chile's Truth human rights violations. files made available by human rights Commission was organisations. to be truth, with as But that was by no means the end of the matter. An extraordinary popular campaign much justice as In the 'Report of the Natibnal Commission was mounted to overturn the law by forcing a on Truth and Reconciliation (1991)', possible referendum in terms of the Uruguayan published in two exemplary volumes, the constitution. This required no less than 25% personal particulars of many hundreds of of voters as signatories to petitions, a figure cases were detailed. Individual perpetrators reached even though the military used a were not named, though in some cases combination of filibustering, threats and dossiers were provided to the civil authority intimidation to prevent it at all costs. The Chilean Truth Commission was If the political and military leaderships were evidently a consciously self-limiting prepared to bury the past in the interest of enterprise, in part due to the terms of the stability and 'national reconciliation', popular transitional pact negotiated with General feeling and civil society were even more Pinochet - which excluded civilian determined that it must be confronted. prosecutions of the military - and in pari due to the lessons learned from other cases. In the event, when the referendum against the amnesty law finally took place in 1989, it Other reasons for the relative success of the was lost by a small margin. This outcome Chilean Commission included its was profoundly unsatisfactory for all sides. conspicuous bipartisan composition, its For years Uruguayan public life had been limited terms of reference tied to the central convulsed by the traumatic struggle, a burning issue of the 'disappearances', its conflict which neither succeeded in bringing limited duration (it had to report within 9 Its main business past abuses into the open nor in putting the months), the state resources at its disposal, was to compile a past behind and bitterly divided the society and the fact that the new civilian president comprehensive during the first years of the new democracy. gave it his foil and unqualified support. record of the witness of victims When the Commission reported, President of human rights Chile Aylwin appeared on national television to abuses accept responsibility and apologised to the Compared to the failed Argentina efforts to victims on behalf of the state. Chile, much achieve both justice and truth, and to the more than Argentina and Uruguay, had counter-productive Uruguyan attempts tacitly managed to settle some accounts from the to avoid dealing with the past, the Chilean past in a way which actually contributed to case proved considerably more successful. In national reconciliation. part this was because some valuable lessons had been learned from these comparative experiences. Justice in transition As one of its first actions the new civilian If it was already a notable feature of the Latin government of President Aylwin announced American cases that they interacted with one the formation of a presidential National another, generating a self-conscious Commission on Truth and Reconciliation, comparative learning experience on the part with the specific charge of establishing the of at least some key actors, this reflective truth regarding the alleged torture and process was further broadened from the end 'disappearances' of dissidents under the of the 1980s. previous military regime. With the dramatic developments in Eastern Europe from 1989, involving another range Chile managed to Quite deliberately the first priority of the Commission was to be truth, with as much of countries in democratic transitions which settle some justice as possible. In the words of Jose somehow had to deal with the bitter legacies accounts from the Zalaquett, a leading figure on the left by communist rule, there was an urgent past in a way Commission: "Priority ought to be given to need to apply lessons already learned in which actually truth... Justice would not be forgone, but circumstances which included a number of contributed to pursued to the extent possible given the additional complications. national existing political restraints". (Hastings Law reconciliation Journal, 1992). The new and complex problems of 'justice in transition' became the topic for a series of The Commission was not itself vested with international workshops and conferences, powers of prosecution: its main business was building a specialist and wide-flung network to compile a comprehensive record of the of human rights lawyers and activists, policy witness of victims of human rights abuses, making practitioners, philosophers, church based also on the testimony of their families, leaders, politicians, writers and journalists.

12 INDICATOR SA Vol 11 No 4 Spring 1994 27 vimcs m The ln'st major conference was organised by » The insidious dangers of relying on There is a he Aspen Institute in November 1988. Its security files from prior regimes and the sophisticated rocecdings were published the next year abuses and political manipulations to understanding of ynder the title 'State Crimes: Punishment or which disqualification measures are open. the complex pardon'. issues at stake in Perhaps the most succinct summary of the dealing with the flris was followed by a series of international lessons to be learned are encapsulated in the problem of truth conferences sponsored by the New York words of Samuel Huntington: and justice in based Charter 77 Foundation, later renamed transition tile foundation for a Civil Society, as part of "Recognise that on the issue of its Project on Justice in Times of Transition. 'prosecute and punish versus forgive The inaugural conference in Salzburg in and forget' each alternative presents Mjrth 1992 was followed by another that grave problems, and that the least year in Budapest, and two in 1993 in San unsatisfactory course may well be: do Salvador and Venice. not forget".

These intensive and ongoing discussions as In many ways a Truth Commission can be well as the growing number of cases - a seen as an attempt to achieve at least some of recent study compared no less than 15 Truth these divergent objectives while avoiding the Commissions since 1974 - have produced a major pitfalls. sophisticated understanding of the complex issues at stake in dealing with the problem of truth and justice in transition. Some salient South Africa themes to emerge include the following: When the South African transition got The significance of the distinction seriously under way after February 1990, not It is of between knowledge and public many South Africans were at all aware of the fundamental acknowledgement. Even and especially developments and debates elsewhere on the when both victims and perpetrators know complex issues of justice in transition. At best importance to very well what has been done and by there were vague references to a need to recognise the whom, it is morally and politically avoid 'Nuremberg trials'. dignity of the important whether this is also victims of past acknowledged on the public record; All too soon, though, some thorny issues had human rights to be faced. In order to engage in public abuses and ' The often complementary but sometimes negotiations with the formerly banned and publicly restore divergent demands of justice, in the sense exiled African National Congress (ANC) and their self-respect of seeking retribution through South African Communist Party at all, as citizens prosecution, and of truth in the sense of amnesty and indemnities for key political public acknowledgement, and their leaders and their followers were required. different implications for national reconciliation; Eventually this was administered in terms of the Indemnity Act of 1990 and the Further The need of memory and the grave Indemnity Act of 1992. These were partial dangers of forgetting even and especially and provisional measures, applied with a when national reconciliation is required, good deal of political opportunism and or in the words of Adam Michnik: manipulation. "Amnesty yes: Amnesia never"; Thus the way in which the requirements for The fundamental importance of disclosure was administered as part of the recognising the dignity of the victims of application procedures for indemnity at one past human rights abuses and of finding stage encountered serious resistance from appropriate public ways of restoring their political prisoners on . It is necessary for self-respect as citizens; individuals or At another level President FW de Klerk's groups who have The necessity, if a new democratic culture granting of amnesty to 'Wit Wolf' mass committed terrible of human rights and the rule of law is to murderer Barend Strydom as an apparent crimes not to be established, for individuals or groups quid pro quo for that extended to 'Magoo's who have committed terrible crimes not to Bomber' Robert McBride raised extremely escape with have escaped with impunity, thus serious questions regarding the criteria and impunity effectively demonstrating that they are objectives of such political amnesties. 'above the law'; Increasingly the granting or withholding of ® The special need to respect the amnesty and indemnity to various categories requirements of procedural justice and the of people were utilised as transparently rule of law in retrospective investigations political bargaining ploys. This undermined if these are not to be counterproductive; and the prospects for establishing some clear

27 vimcs m 12 INDICATOR SA Vol 11 No 4 Spring 1994 27 vimcs m The granting of principle or criterion for political amnesty Commission, evidently understood as an amnesty in South that might be needed in future, and inquiry to which the ANC would be equally Africa has raised constitutional lawyers doubted whether the subject. extremely serious Indemnity Acts would be able to withstand a questions challenge in terms of the new Bill of Rights. Though some ANC leaders, such as Kadcr regarding criteria Asmal and , came out in strong The determining context, however, has been public support for the idea of a Truth and objectives provided by the Interim Constitution. During Commission, it is not entirely clear- how well the closing stages of constitutional the notion was understood within the negotiations at Kempton Park in December organisation or how strong its support would 1993 a determined attempt was made by the be. Some observers anticipated that in the National Party government and security force aftermath of the election the ANC's representatives to have a blanket political commitment to a Truth Commission was amnesty included in the constitutional likely to be attenuated by the countervailing agreement itself. pressures of the GNU.

This was strenuously resisted by the ANC It is also significant that, while the main delegation in particular, and the outcome was political actors were engrossed in the the compromise contained in the remarkable important business of the election campaign, 'Post-amble' to the Interim Constitution: the more specific and concerted moves preparing final clause on National Unity and the way for a Truth Commission were Reconciliation. initiated within civil society.

Its central theme, in the words of Lourens du In particular Alex Boraine, outgoing Plessis, is this: for the sake of reconciliation executive director of Idasa, organised a we must forgive, but for the sake of workshop in February 1994 which brought A Truth reconstruction we dare not forget. More together a range of concerned South Africans Commission was specifically, the Interim Constitution - including Judge Richard Goldstone - and first mooted by the determines that in order to advance key members of the international network ANC. The party reconciliation and reconstruction, amnesty engaged in the comparative problems of evidently should be granted 'in respect of acts, justice in transition. understands that it omissions and offences associated with will be equally political objectives, committed in the course The objective of the workshop was to give subject to enquiry of conflicts of the past'. South Africans an opportunity to leam from the comparative experiences of societies The Interim Constitution thus commits the which had already worked their way through new Parliament and Government of National similar problems. It was an immensely Unity (GNU) to political amnesty for helpful exercise, as evidenced from the book purposes of national reconciliation. Dealing with the Past: Truth and Reconciliation in South Africa, published on Constitutionally there is no question whether the proceedings. there should be political amnesty. The only questions are what the criteria, procedures The thinking and proposals that emerged and requirements for the provision of from the workshop have also had direct and amnesty should be, and how these would best indirect impact on Minister Omar's eventual serve the overriding purposes of national proposals for a Truth and Reconciliation reconciliation. It is in this constitutional and »Commission, announced at a follow-up political context that a Truth and conference in Cape Town at the end of July. Reconciliation Commission must function. Proposals Specific and Local process concerted moves The proposals for a Truth and Reconciliation The idea of a Truth Commission for South Commission must still be approved by preparing the way Africa was first mooted by the ANC, but in a cabinet and Parliament, and may well be for a Truth specific context. Persistent allegations of transformed by political bargaining and Commission were atrocities and human rights abuses in ANC compromises in the process. initiated within civil camps led to internal investigations by the society Motsenuyane and Douglas Commissions. The proposals announced by Minister Omar indicate that note has been taken of the recent When these commissions did not international experience, and that South conclusively clear some ANC leaders from Africa may even be prepared to extend this in possible involvement, others on the national interesting ways. executive committee introduced the notion of a future Truth Commission. It is significant Carefully modelled on, especially, the that this committed the ANC to a Truth Chilean Truth Commission, and sharing its

12 INDICATOR SA Vol 11 No 4 Spring 1994 27 vimcs m ^jf-Iimiting concern with the need for public appropriate measures to restore their The legacy of acknowledgement and national reconciliation dignity and honour. apartheid also !,vev the quest for justice through prosecution, raises general the proposals also reflect the special The distinction between the functions and issues of human circumstances of the South African case. objectives of these different committees open rights violations in up interesting possibilities for the the form of forced Commission to operate in different ways on a Unlike the Chilean case, for example, the removals, group problem of dealing with past abuses cannot number of different levels. If not carefully areas, race readily be focused on a single burning issue managed, though, it could create classification etc of public concern such as that of official complications and confusion. torture and 'disappearances'. South Africa has its equivalents of the Latin Possible problems American 'duty wars' in the form of political assassinations and acts of-terror, instances of Certain main issues still need to be resolved torture and death in detention, and allegations and clarified. These include the about covert operations and a sinister 'Third Commission's precise terms of reference, the Force'. But the legacy of apartheid also raises inteipretation of the criterion for 'political' many other general and systematic issues of objectives qualifying individuals for amnesty human rights violations in the form of forced and indemnity, the extent to which the removals, group areas, race classification etc. Commission's procedures will be confidential or public and, or course, the 1 ndeed, apartheid itself has been pronounced composition of the Commission itself. a crime against humanity by the United Nations. This poses a major dilemma. On the On this last count, there may be serious one hand, any effort to address this historical problems in so far as the proposals are not for It remains to be legacy will immediately generate an immense a presidential Commission but for one seen whether and complex agenda while, on the other, appointed by a Parliamentary committee. It is South Africa has trying to do too much is a recipe for disaster critical that the Commission should be learned the and will probably be self-defeating. representative and widely perceived to be lessons of unpartisan, and it would defeat its purposes if international Hut with some care, an approach can be its very composition became a party political designed for this kind of situation. A notable battleground. experience and feature of the proposals is that the can add to this Commission is to function through three The Commission on Truth and Reconciliation collective learning specialised committees, each with distinctive can only function successfully if its specific endeavour objectives: and self-limiting objectives are accepted as an appropriate way of settling accounts with One committee will be specifically certain aspects of the past so that these can be concerned with amnesty and indemnity as put behind us. required by the Constitution, with full disclosure stipulated as a pre-condition. It Current indications are that de Klerk and the will thus be focused on perpetrators and National Party leadership is not bent on the political objectives of their actions. opposing the Commission at all costs but The implications are that individuals who accept the need for it, if properly managed. It do not successfully apply for amnesty will is to be expected that in Cabinet and remain open for civil actions and Parliament some effort will be made to prosecutions for human rights violations whittle down the powers and scope of the at a later stage. proposed Commission.

A second committee will be concerned Other parties may have an interest in with violations of human rights, defending their interests by sabotaging the identifying victims by name, giving Commission, for example by challenging its victims and their relatives an opportunity constitutionality before the new REFERENCES to tell their stories, and establishing as Constitutional Court. Delays and challenges Garrett SA (1993) Ethics complete a picture as possible of gross of this kind may well frustrate the and Air Power in World Warn. human rights violations. It will thus focus Commission, which is required to report Schmitter and O'Donnell on victims and the need for public within a year and which, more generally, (1988) Transitions from acknowledgement. The Commission will needs to complete its task in close Authoritarian Rule. not have powers of prosecution, but some conjunction with the introduction of the new Smith BF (1977) Reaching Judgement at Nuremberg. powers of subpoena, search and seizure democratic constitution. Taylor T (1993) The are proposed. Autonomy of the It remains to be seen whether South Africa Nuremberg Trials. Wechsler L (1990) A e A third committee is to deal with the issue has learned the lessons of recent international Miracle, A Universe: of reparations for victims of past abuses, experience and can add to this collective Settling Accounts with making recommendations regarding learning endeavour. P3& Torturers.

INDICATOR SA Vol 11 No 4 Spring 1994 69 ®BVK!!,© P>fifiBCStf reiSKjOg The Brazilian Ballet

By Maria D'Alva G Kinzo Department of Political Science, University of Sao Paulo

The main contenders for Brazil's upcoming presidential elections are Luis Ignacio Lula da Silva, supported by a left wing alliance, and Fernando Henrique Cardoso, a social democrat and author of the country's current economic plan. Whoever wins will struggle to govern a country which has a flawed political system, an ongoing economic crisis and a deeply disillusioned electorate.

razilians will go to the polls on The purpose of this article is not to predict There is much October 3, 1994, to elect a the election results but to outline the main disillusionment I president, congressmen, state traits of the electoral process that will choose with politicians in governors and deputies for the Brazil's next president. By examining the state assemblies. It will be the eighth features of the institutional structure under Brazil as a result election since the re-establishment of which elections take place we will also look of corruption democratic rule in 1985 and the second at some of the problems of Brazil's political scandals involving time that the around 100 million strong system. the former Brazilian electorate will choose a president president and to govern for the next four years. several members Electoral system of congress Thus elections in Brazil are no longer a novelty. They have become a part of the In Brazil all citizens have the right to vote citizen's normal life. But the electoral contest from the age of 16 years and voting is this year has special significance, due not compulsory for electors aged between 18 and only to the election of a president, which as 70 years. The citizen's obligation to vote in any similar system is the main focus of undoubtedly increases electoral participation attention, but also to the problematic in a country with low level of politicisation. circumstances under which it will take place. A social and But it also helps explain a high proportion of economic crisis There is much disillusionment with blank and null votes: these are caused part I \ has persisted, politicians as a result of the impeachment of by indifference to the result, partly by a despite seven Brazil's former president, Fernando Collor de substantial protest vote and partly by genuine economic Mello, on charges of corruption, followed by errors in completing a complicated ballot . stabilisation plans other serious corruption scandals involving several members of congress. Brazil uses a majority voting system as well as proportional representation (PR). The A social and economic crisis has persisted, president, state governors and municipal despite seven economic stabilisation plans mayors are elected by a run-off ballot between tried during the nine years of democratic the two leading candidates if neither receives government. The new economic plan, Piano an absolute majority in the first ballot. Real, has just begun to tackle Brazil's endemic high inflation. And there are serious Federal senators are elected by a simple There are serious problems of governability as a result of the plurality system - voters cast then- ballots for problems of flawed functioning of the political system. candidates - and federal and state deputies by governability as a PR. The senatorial mandate lasts for eight result of the These factors will certainly affect the years, but there are elections every four outcome of the elections. Above all, they years: once for one third of the senate and flawed functioning give us an indication of the enormous once for two-thirds. Seats in the lower house of the political challenge that the next president will face in state assemblies are changed every four system after taking office in January 1995. years.

©©f^ms&WB W8K)©@ 70 INDICATOR SA Vol 11 No 4 Spring 1994 •fo liave candidates elected for the federal Table 1: Congress Composition (as of June 1994) chamber and state assemblies, parties need to have votes equivalent to the electoral quota. Political Parties Senate Chamber of Unallocated remaining seats are shared out Deputies aniong the winning parties under the Seats % Seats % P'Hondt system.

Most important, the PR system is not based Brazilian Democratic 27 33,3 96 19,1 on a pre-determined party list order. Rather, Movement Party (PMDB - centre) Liberal Front Party {PAL - centre-right) 15 18,5 91 18,1 t(ic number of individual votes each candidate obtains determines the order in Progressive Reformist Party (PPR - right) 10 12,3 67 13,3 which he or she appears on the party list. Brazilian Social Democratic Thus, voters are asked to choose a Party (PSDB - centre-left) 10 12,3 47 9,3 particular candidate although they are also Progressive Party (PP - centre-right) 4 4,9 44 8,7 allowed to vote just for the party label Workers' Party (PT - left) 1 1,2 36 7,2 should they have no preference for any 4 34 6,8 candidate. Democratic Labour Party (PDT - centre-left) 4,9 Brazilian Labour Party (PTB - centre-right) 4 4,9 29 5,8

This voting system has the advantage of Liberal Party (PL - centre-right) - - 16 3,2 allowing the voters, rather than parties, to Social Democratic Party (PSD - centre-right) - - 11 2,2 choose the winning candidates. But it tends to Brazilian Socialist Parly (PSB) 1 1,2 10 2,0 disrupt party organisation and discipline Communist Party of Brazil (PCdoB) - - 6 1,2 because it encourages competition between individual candidates of the same party rather National Reconstruction Party (PRN - centre-right) 4 4,9 4 0,8 than between parties. Popular Socialist Party (PPS) - - 3 0,6 As each party list contains a large number of Others 1 1,2 9 1,8 candidates, it is also very confusing for voters Total 81 100,0 503 100,0 to choose one candidate among so many. For example, in the last legislative elections in Source: List provided by the Chamber of Deputies and (he Senate, June 1994. Sao Paulo state, 610 candidates competed for 60 seats in the federal chamber and 1 182 Parties candidates ran for the 84 seats in the state assembly. Political parties have played a limited role in Brazilian elections, particularly in It is almost inevitable that many votes are presidential contests in which campaigns are Free radio and either casual, because of the impossibility of personalised by individual candidates. The television assessing the merits of so many candidates, or party system in the country is weak, unstable broadcasting for based upon personal links with local political and very fragmented. Party representation in parties helps bosses whose clintelistic style remains a congress is constantly altered as disseminate common device to capture support in the parliamentarians move from one to another political rural areas. party. information among indifferent voters Political parties are allowed free radio and Also remarkable is the growing television access for two months before the fragmentation in the party system: currently elections. Two hours daily, including one 19 parties have representation in the federal hour at peak evening time, are reserved for chamber, eight of them have more than a 5% the patties, which are allotted time share of the seats and the two largest parties - proportionate to their representation in the the Brazilian Democratic Movement Party federal chamber. No other television and (PMDB) and the Liberal Front Party - have radio political advertising is permitted, only 37% of the seats (Table 1). although paid advertising is allowed in newspapers and magazines. These problems are aggravated by an electoral system and a party law which are Broadcasting must be transmitted conducive to party fragmentation and lack of simultaneously on all television or radio discipline. The use of PR based on open lists, channels. This provision has been hotly leading to candidates from the same party opposed by television and radio companies, competing with each other, undermines party but has been quite effective in disseminating development and discipline. political information among the largely The party system politically indifferent Brazilian electorate. There is no rule regulating electoral alliances, in Brazil is weak, or provisions restraining lack of discipline or unstable and very Most Brazilian voters are poor and even in change of party affiliation. Creating party fragmented the most developed state, Sao Paulo, nearly identities and developing loyalties - not to three-quarters of the electorate have had mention political accountability - are education only up to the elementary level. extremely difficult.

INDICATOR SA Vol 11 No 4 Spring 1994 71 ®BVK!!,© P>fifiBCStf reiSKjOg Brazil's The fragility and fragmentation of the party outcome. Electoral volatility has been so institutional model system is a recurrent source of crisis since it pronounced in the past that there is no combines prevents the existence of clear interlocutors certainty that the current electoral picture w ti fragmentation and in congress, while the executive does not remain the same until election day, • • a multiplicity of share responsibility with parties for considering the impact radio and tel. formulating and implementing public campaigns introduce once they start. counterweights - policies. features Ten candidates are running for president, hut characterising the only four are real contenders. The two 'consociational' leading candidates are Luis Ignacio I .ula t|y democracies - Contradictions Silva and Fernando Henrique Cardoso. with a The highly fragmented party system and plebiscitarian 'presidentialism' are two features of Brazil's presidency institutional structure which constrain the Main contenders functioning of the political system. As suggested by Bolivar Lamounier, it is an The former, known as Lula, is the candidate institutional model which combines of the Workers' Party (PT) in alliance with fragmentation and a multiplicity of the Socialist Party, Communist Parh of counterweights - features characterising the Brazil, the Popular Socialist Party, I mon of 'consociational' democracies - with a Socialist Workers Party and the Green I'arly. plebiscitarian presidency. Lula, formerly a metalworker and leader of On the one hand, as a result of PR and very the new union movement in the 197(K. was permissive party law, political competition is the second electoral force in the last oriented much more towards the presidential contest in 1989 and has been representation of minorities than towards the campaigning ever since. He is placed first in Lula was the formation of stable ruling majorities. the opinion polls. second electoral force in the last On the other hand, with a massive and Regarded as too leftist and radical b\ the presidential growing electorate incorporated into the middle classes and business, he has shown contest in 1989. political system, the presidency has a clear much more moderation in his positimis than He is leftist and plebiscitarian character. Based on nationwide in the last elections, a strategy aiming at first in the opinion and substantial electoral support, as a result widening his support. polls of the second ballot system, the president enjoys a legitimacy which is not only However, it will be difficult for Lula to distinctive but also greater than that held by distance himself from his party's statist, the Congress. nationalist and corporatist features, i f w e consider the active role played by his parly - As a result, the potential for conflict between which comprises social democrats, the branches of power is very high. This is progressive Catholics, socialists and aggravated by the very fragmented party Trotskites - in demanding participant system, making it unlikely that the democracy. government would count on a parliamentary majority. Until June voters' preference for Lula in the opinion polls was so impressive thai some The six month long and difficult negotiation observers started to believe a second round that the current administration was involved presidential election in November might not in to get congress approval of Piano Real is a " be necessary. But in July this view changed good example of the problems faced by any as the lead in support that Lula enjoyed over government in formulating and implementing Fernando Henrique Cardoso started to policies. decline.

Cardoso was Cardoso, who is from the Brazilian Social minister of finance Next president Democratic Party (PSDB) and senator from until April, when Sao Paulo, was minister of finance until he resigned to run Whoever is elected president this year will April, when he resigned to run for president. for president. He have to deal with the constraints of this He is an internationally known social and is centre-left problematic institutional arrangement. political academic, and has been in politics politically Unfortunately, constitutional revision carried since the late 1970s, when the out by congress early this year failed to democratisation process started. produce any result, and congress lost a great opportunity to reform several provisions that Cardoso is in the centre-left of the political need to be changed. spectrum, and his candidacy is supported by a broad electoral alliance including centre With two months to election day, political and centre-right parties. His platform is based observers were still reluctant to predict the on defence of the economic stabilisation plan,

©II ^ i lIk © t-IIR! If VtBBMIDg 72 INDICATOR SA Vol 11 No 4 Spring 1994 Inch formulated by the economic team Table 2: Evolution of Vote intention for President - Brazil * I hv him and has had its third phase (in percentages) Implemented by his successor in the finance 2-3 23-24 9-13 5 11-13 st! Candidate 4-5 nii»> 'y- April May June June July July

The main features of the Piano Real are; tight Lula 37 42 40 41 38 34 hiiil'-Wt spending aimed at controlling the Cardosa 21 16 17 19 21 25 Brizola 10 8 7 7 7 7 0ublie deficit and restoring government credibility; a series of monetary measures to Quercia 8 7 8 6 7 7 Others 5 4 4 7 6 7 ciirh Brazil's endemic high inflation; and a B/NI/Nn* 12 14 13 11 11 9 policy of moderate liberalisation and Don't know 7 9 11 9 10 11 priwiiisation. * Blank, Null, None. Source: Institute Datafofha r\s the initiator of Piano Real, his candidacy depends on its workability. This close link ha*, already been reflected in the opinion within which he has developed his political polls. The implementation of the plan's third career since the 1970s. A skilful and pha-c - the impressive operation of changing pragmatic politician, Quercia has never lost The main features the- country's old currency to a new one - was an election. positively received by the public and of the Piano Real Cauloso's opinion poll rating increased. He managed to build a very strong party are: tight budget machine, particularly in Sao Paulo state, spending, Lula's mid-June lead of 22% was reduced to where he has loyal allies in most of the monetary by mid-July, with Lula getting 34% of the municipalities. Nevertheless, his political measures to curb polls and Cardoso 25% (Table 2). The results prestige and his strong influence in the inflation, and of the last opinion poll, carried out by the PMDB national organisation has declined moderate Institute Gallup between July 16 and 20, are considerably because of his involvement in liberalisation and even more impressive: 30,5% for Lula and corruption. privatisation 30,1% for Cardoso. His insistence to run for president despite the According to other polls, such as that of the opposition of a considerable part of the Institute Vox Populi, Cardosa is already PMDB has provoked internal dissent and led ahead of Lula in the Sao Paulo and Minas some important party leaders to abandon him (lerais states, the two largest electoral and discreetly support Lula or Cardoso. colleges in the country. Quercia's electoral chances should, however, not be underestimated for his political history is marked by surprising victories consummated in the last weeks of electoral Others campaigns. Although none of the other candidates yet received more than 7% support, two of them deserve to be mentioned as they may be able Demographics In mid-July polls, to improve their position if new factors Lula received emerge during the crucial three months Using data from the last opinion poll carried 34% of the vote leading up to the elections. out by the Institute DataFolha, from July 11 and Cardosa 25% to 13, Table 3 shows voter intention by level They are Leonel Brizola and Orestes Quercia, of education and family income, giving an both former governors of their states, Rio de idea of the kind of social support the four Janeiro and Sao Paulo respectively. Brizola, leading candidates mobilise. from the Democratic Labour Party, is an old politician from the 1950s and 1960s Table 3: Vote intention by level of Education and Family income democratic period. His profile is populist and - Brazil (in percentages) old nationalist, and he is thus one of the most outspoken critics of privatising state firms. Total Education Family Level Income Candidates Up to Second Univer- Up to 5-10 More His electoral chances are limited, as the Elemen- ary sity 5 Min. Min, than organisational structure of his party is very tary school Salary Salary 10 Min. Salary weak and his support is concentrated in just a school few states in the south. He has been third in Lula 34 33 34 37 34 33 34 34 the opinion polls since May, rating only 7% Cardoso 25 22 31 33 22 31 Brizola 7 8 6 2 8 6 5 support, but is a statesman-like political Quercia 7 8 5 3 7 6 4 figure whose support will be important if a Others 7 5 8 9 5 8 9 second ballot is held. B/NI/Nn* 9 8 12 12 8 10 11 Don't know 11 14 5 3 12 6 3

Orestes Quercia is the candidate of the * Blank, NuH or None of them PMDB and a former president of that party, Source: institute Datafolha, 11-13 July, 1994 (14 002 voters were interviewed over 378 municipalities)

INDICATOR SA Vol 11 No 4 Spring 1994 73 ®BVK!!,© P>fifiBCStf reiSKjOg The main problem It is surprising to note that Lula's support is Lula's government would certainly scrap ulc of a government not limited to voters at the bottom of the Piano Real. Although he will keep the new*" currency, he will have to propose a new led by Lula would social structure. In fact his percentage of the preference, as compared to the average, is economic policy because his campaign lias be pressures slightly lower among voters with elementary concentrated on criticising aspects of the plUIi exerted on him schooling and higher among university such as wage policy, high interest rates, high from the left, graduates: 33% and 37% respectively. prices and liberalising the economy: in sum which could the possibility of recession. polarise the As regards family income, the data shows no political system variation, with the exception of the family More likely is that a Lula victory would he a income band from five to 10 minimum sign that the plan failed to stabilise the salaries - US$ 350 to 700 - where his economy. Lula has not announced an percentage is one point below the average. economic plan, but the PT's economic policies do not give priority to stabilisation. Fernando Henrique Cardoso has a much more noticeable pattern: while he has the The main problem with a government led hy support of 22% of voters who have only Lula would be the pressures exerted on him elementary schooling, 31% of university by his own party and from a variety of graduates will vote for him. The same organised corporatist interest groups, most of pattern occurs with family income: the them entrenched in the state. higher the family earnings the higher the preference for Cardoso. Indeed, among If he manages to control these pressures his voters whose families earn more than the government could perform reasonably. Inn if 10 minimum salaries, his percentage he is unable to control them the tendency support equals Lula's. would be for intensification of opposition from the right with a consequent polarisation A government led The tendency is the opposite in the case' of and radicalisation of the political system. by Cardosa would Brizola and Quercia: their support, though This will lead to political paralysis and have better small, comes from the lower strata, and their ungovernability, which would be a disaster prospects for indices among voters with higher education for Brazil's democracy. Brazil internally and salaries are half their average. and internationally The data shows clearly that Cardoso has the Cardoso most difficulty attracting support from the lower sectors of the population. This is a real The scenario which would follow a Cardoso problem for his candidacy which may only victory is easier to predict. Certainly a be overcome if the Piano Real succeeds in government led by him would have better controlling the impact of economic hardship prospects for Brazil internally and on the poor. internationally. Internally because Cardoso will certainly count on a large parliamentary base, which is fundamental to the ability to govern. Lula The broad alliance that he has attracted Even though it was not my intention to cannot just be seen as an electoral tool, but predict the election results and their also as a means to form a parliamentary consequences, it is worth speculating on the majority that Cardoso's party would not be scenarios that could emerge if Lula or able to obtain alone. Cardoso win the presidency. As his candidacy is so attached to the Piano If Lula is elected Brazil will encounter Real, his victory would indicate that his difficulties, unrelated to his political skill or economic policies were producing good administrative experience. Although Lula results. In that case, he would begin his will lack a parliamentary basis in congress, administration in a strong position. he will try to widen his support through negotiation with the centre and centre-left, However, his chance of performing well and it would be possible for him to form a would also depend on his capacity to team sensible enough to avoid irresponsible persuade the diversified political forces that economic policies. support his candidacy to also support the reforms that are fundamental to the country. His programme of government is not very clear on most areas of economic policy, These crucial reforms are the revision of leaving room for revision afterwards. Even several constitutional provisions concerning NOTE The author is on the the question of the moratorium on the foreign the fiscal system, privatisation, state research team supporting debt, which was a divisive issue during the monopolies and social security, and a new Cardosu's presidential Workers' Party (PT) convention, has been development project that combined growth campaign decided as a policy of last resort. with income distribution. [KPQfii

©II ^ il Ik © t-IIR !If VtBBMIDg 74 INDICATOR SA Vol 11 No 4 Spring 1994 ftEVElOPMENT M O N I T O R

Electricity/Water

KZN 7.61 OFS 8.29 Provincial N-West 1.69 N Cape 1.68 E Cape 3.05 contributions to the PWV 20.58 W Cape 9.77 GGP for selected economic sectors

N Tvl 7.00

ETVIW31

Community Services

KZN 14.88 OFS 3.73 N Cape 1.27 E Cape 5.51

N-West 2.91 See Political Monitor cover on page 5 for a W Cape 13.43 comprehensive list of the different sectoral contributions by each province to the GGP.

PWV 53.28

Socio-economic Indicators of Health

Indicator Estimate

Housing A housing shortage of between 1,2 and 2 million.*

Water and sanitation 20% of the population had minimal water supply in 19&0. 33% of the population had minimal sanitation in 1990.

Electricity 65% of the population had no electricity in 1991 .* 23 million blacks had no access to domestic electricity in 1991.

Levels of unemployment Between 1 and 3 million had no income at all in 1992.

Income 45% were below the minimum subsistence level in 1990."

Literacy 99% for whites; 85% for Indians; 67% for coloureds; 48% for African."

Note: * SAIRR. Race Relations Survey 1993. South African Institute of Race Relations, Johannesburg. ** Rispel L&G Behr <1992) Health Indicators: Policy Implications, Centre for Health Policy No 27. Johannesburg: University of Witwatersrand.

Source: Fincham R, D Harrison, M Khosa and i le Roux (1993) Nutrition and Health in South Africa: The State of Nutrition and the Development of Nutrition Policy. Cape Town: SALDRU. DevElopiNq THE DEVEIOPERS

ByBillDavies Development Studies Unit, Rhodes University

The South African development environment has been hampered by duplication, competition for funds, internal conflicts, uncertainty and community suspicion. The initiative for any real restructuring and rationalisation of development agencies probably lies with the new Government, through its Reconstruction and Development department, and radical steps in this direction are imminent.

outh African development history is or less dedicated to addressing the plight of Many state littered with 'development agencies' the poor and managing the post-election supported whose principal intent was to ensure transition to a democratic society. organisations compliance with the apartheid were associated Sgovernment's policies, strategies and Given the range, diversity, intentions and with the enforced mechanisms designed to promote and resources of all these initiatives - from the separation of entrench separate development. ubiquitous 'community-based organisations' people rather than (CBOs) to monolithic national structures - their development The South African Development Trust one might be excused for wondering wh> Corporation, Development Boards, there is still a chronic development problem Development Corporations, the Coloured in the country. Development Corporation and many others, are among them. Most have recently fallen The question that arises concerns the extent by the wayside, or are being rationalised out to which this plethora of development of existence. initiatives actually contributes towards understanding and addressing the country's Given the range They were state supported organisations, or problems, let alone solving them. Or whether, of initiatives, one thinly disguised parastatals, whose objectives as the South African National Civics may be excused were associated with the enforced separation Organisation maintains, they are a reflection for wondering why of people rather than their development of 'an unseemly scramble' by agencies - both there is still a through equal access to opportunities. the products of apartheid and of the struggle • chronic to secure themselves a place in the new order. development Others have undergone subtle shifts into new problem guises through name changes or new 'mission statements' which incorporate Review politically correct terminology and buzz-words, but which are still controlled by It is probably too soon to attempt a the same people and have had little success in comprehensive audit of development shedding their images. agencies on which to base assessments ol' their present and possible future role, status Others again have worked hard to adapt to and contribution in the development agenda. One question changed circumstances through reviewing But it is possible to attempt a preliminary their policies, structures and operational review of the main actors. concerns the styles, or are trying to, and many have extent to which plunged into frantic affirmative action In view of the suggestion contained in the the plethora of programmes to demonstrate that they have Reconstruction and Development development now seen the light. Programme (RDP) that government initiatives departments, parastatals and development contributes Since the late 1980s many new organisations institutions should be reviewed and evaluated towards have entered the arena, and the South African in terms of their potential contribution to addressing the development environment is now thoroughly implementing the RDP, some consideration country's problems saturated with agencies and institutions more is devoted to this issue.

© II ^ il Ik © t-IIR! If VtBBMIDg 76 INDICATOR SA Vol 11 No 4 Spring 1994 Specifically, the RDP raises the question of • The Urban Foundation The RDP whether such institutions should continue The Urban Foundation (UF) was formed in questions whether fliore or less in their present form, or should 1977 as a private sector backed development be 'significantly altered or merged or closed non-governmental organisation (NGO) to institutions should down'. improve the quality of life of disadvantaged continue in their South Africans. Formed during a time of present form, or Eight major initiatives are active in the severe government repression, the early years should be development field, and these are dealt with in of the Foundation were difficult and significantly chronological order of their inception, with uncertain as it groped around for a firm altered, merged or particular reference to their RDP relevance. policy direction - and consequently achieved closed down very little in terms of its mission. j The Industrial Development The nature and dimensions of the problems it Corporation tried to address were beyond its resources The IDC is an institution of the central and, in any case, could not be resolved simply government and was created in 1940 to with money for projects. Many criticisms establish and conduct new industrial were levelled at the UF, for example that it ventures, to assist in financing industrial was an avenue for private-sector conscience development and to undertake projects of money rather than a indication of corporate strategic importance. social responsibility.

The IDC formed state-owned enterprises in, It was accused of doing the work of particularly, synthetic fuel, phosphates, government by trying to build schools and aluminium and armaments during the 1950s houses, aiding apartheid by trying to improve and 1960s. These, in the words of Gavin conditions in separate group areas, and Maasdorp, were nurtured by the government promoting exploitative capitalism through The Industrial "to increase Afrikaner participation in the training programmes for black business Development management of industry'. interests etc. Corporation should be The Corporation was involved in However the UF was perceived, the implementing government policy for nearly organisation was in the vanguard of change fashioned towards 50 years. For example, it played a significant in South Africa precisely because of its facilitating state part in the failed industrial decentralisation powerful private sector backing, which participation in strategy and the formation of ethnic and meant that it was often able to bring industrial racially based 'development corporations', pressure to bear on the government in development controlled predominantly by white Afrikaners significant policy areas.

Precisely because it was a state creation, the The UF engaged in a wide range of IDC could not avoid being drawn into the 'community based' projects and made machinations of 'separate development', discretionary grants to organisations involved through collaboration between its Board of in 'good works'. But these were seldom Directors and government ministers and their based on the depth of consultation and departments. It is from this characteristic - investigation necessaiy to deal with appropriately adapted - that the IDC should community needs and priorities. be fashioned towards facilitating state participation in industrial development. Policy oriented At least three possibilities arise: sustained IDC involvement in forward-linkage Through a series of subsequent intensive benefaction of minerals and other natural evaluations and assessments of its image, resources, constructive venture capital connections with the state and the real impact support for small and medium-sized of its portfolio of activities, the UF entered Many criticisms businesses (especially with black the 1990s as a leaner, policy-oriented were levelled at entrepreneurs), and ongoing involvement in organisation that used its experiences to the Urban industrial research and development and in engage in analysis of policy issues and Foundation, but it policy formulation and refinement. choices facing South Africa. was in the vanguard of The IDC is already involved in these kinds of More particularly, it learned - the hard way - change in South activities, and its role is acknowledged in the what not to do and how not to do it. Thus in Africa RDP and the Macro-Economic Research recent years the UF made significant Group (MERG) report, although both call for contributions towards the abolition of racial an evaluation of the IDC towards its laws and the formulation of more appropriate reorganisation and restructuring. At the very strategies for change in important areas of least, the IDC's Board of Directors should be education, housing policy, land issues, and re-vamped and its project portfolio subjected community organisation through enablement to a critical review. and capacity building.

INDICATOR SA Vol 11 No 4 Spring 1994 77 ®BVK!!,© P>fifiBCStf reiSKjOg Whether the The UF is an inclusive private voluntary that Sanco has suggested that the new Urban Foundation organisation in the sense that it involves Government should 'use its 50% survives as a several hundred people in its structures shareholding to replace the board and lop major including a Board of Governors, a Board of management' and shift its priorities towards Directors, three functional Boards dealing promoting small black business. development with development strategy and policy, agency depends education and housing, and four Regional The National Economic Forum recently on its continued Boards. devoted some attention to the role of the access to funding SBDC in a new policy framework for to sustain a R50 Yet another re-positioning is apparently in developing small business, while the Rl)p million per annum the offing, this time associated with a more calls for a reorganisation of the SBDC. budget overtly defined RDP alignment - though one particularly to end 'corruption and nepotism' would have thought that the UF's recent track in parastatal lending programmes. record has actually been very close to the RDP's vision and intent. The SBDC has committed itself to 'expand black business promotion activities' as one of Whether the UF survives as a major its priorities for the future, and has em harked development agency depends on its upon an affirmative action programme which continued access to private sector or other is being slowly implemented. funding to sustain a R50 million per annum budget. There have been rumblings among While the Corporation is by no means some corporate donors that the organisation popular among South Africa's struggle may well have served its original purpose, interests, there is a pervasive view that it and that funding might now be more usefully could be restructured to bring it into line with channelled directly to RDP initiatives at the RDP. What this might do to the central and provincial government levels. propensity for continued support by its There have been almost 150 private sector shareholders is a calls for a Such views might turn out to be somewhat matter which needs to be handled with sonic reorganisation of short-sighted in view of the wealth of sensitivity at this critical stage of transition. the Small experience, expertise and skills that the UF Business has assembled over the past decade. It would Development certainly lend credence to the more cynical • The Development Bank Corporation, but it interpretations of private sector intentions in of Southern Africa could be brought setting up the UF in the first place. Established in 1983, the DBSA was in line with the originally conceived as a support mechanism RDP for the . The Bank's initial • The Small Business stakeholders consisted of the then Development Corporation government and Transkei, Bophuthatswana, The SB DC is also a parastatal institution, Venda and Ciskei (the TBVC states), established in 1981 as an equal share although it was entirely driven, organised and state-private sector collaboration to promote financed by the South African Government. the interests of small business enterprises, including the informal business sector. At least until the latel980s, the DBSA's policies and practices were confined to the Like other parastatals associated with the TBVC entities, the other non-independent previous government, the SBDC is not bantustans, and later with black local uncontaminated by the stigma of its apartheid authorities and other institutions involved in origins, allegedly reflected in its operational (Jeveloping and maintaining townships. practices and predominantly white Afrikaner Board of Directors - although the latter has Throughout the 1980s, the Bank's image, been considerably 'blackened' in recent years. policies and operating style were moulded The Development into a fairly efficient though somewhat Bank was steeped Part of the reason for setting up the SBDC cumbersome parastatal institution whose in a culture of was as a response to the UF's activities and activities clearly reflected the previous apartheid which intent in the field of black business policy, government's promotion of bantustan which the government preferred to keep 'governments' through loans and other only began to shift under its control. The SBDC's operational financial arrangements for rural and some towards the end area excludes the former bantustans because urban infrastructural projects. of the 1980s government policy forbade it from competing with the development corporations and small Indeed, with few exceptions, the Bank was business institutions established to service steeped in a culture of apartheid which only bantustan business interests. began to shift towards the end of the 1980s, as it became more and more evident that the Its practices and services have tended to principles of 'separate development' were prefer assisting white formal small and flawed and could never be successfully medium sized business ventures, to the extent implemented or sustained.

© II ^ il Ik © t-IIR! If VtBBMIDg 78 INDICATOR SA Vol 11 No 4 Spring 1994 •flu* DBS A's own policy and research confidence in its competence. The first is the The Bank's own activities contributed significantly towards inordinate time between an application for policy and identifying these flaws and formulating more funding and a final decision. Periods of six to research appropriate alternatives. nine months are not uncommon, and contributed community initiatives have foundered while significantly waiting for a response, from the KT. towards Change mode identifying the Secondly, there have been persistent rumours flaws of separate of mismanagement of funds, even corruption, Thus, the DBSA entered the 1990s in a development change mode, however subdued and reluctant in KT structures. These have never been in some instances. It has vociferously adequately addressed and have resulted in espoused the RDP, especially through considerable uncertainty regarding the KT's support for a variety of national sectoral and reliability among donors and others. regional development forums, and has pursued a drastic affirmative action However, since its inception the KT's programme that has caused much concern trustees have reflected a solid core of and uncertainty amongst its staff. community based representation from which it has derived a significant measure of It has established a new, politically correct legitimacy. Whether this is sufficient to see it Council of Governors and Board of through difficult times remains to be seen. Directors, and is now actively seeking the agreement of the Government and other Much like the UF, the KT's present funders, stakeholders on its support role in the RDP. especially foreign governments, might be more inclined to work directly with the new Whether the DBSA can sustain its change Government through its national, provincial mode towards a credible new image with a and local RDP structures, which could mean clear commitment to the RDP remains to be the demise of an organisation seen as having Whether the seen, but it seems sensible that it should be served its original purpose. DBSA can sustain encouraged to do so because it has built up a its change wealth of experience and knowledge, and a However, the KT believes it 'stands poised to towards a credible wide network of contacts that could not be deliver an even more effective and efficient new image easily replaced in the short-term. service to its partners'. It apparently intends remains to be scaling down its operations and embarking on seen, but it should Nevertheless, the Bank has some work to do a capital investment programme to generate be encouraged to yet to satisfy its critics and to lay to rest the income to keep the Trust going. do so ghost of its apartheid origins. Clearing a few skeletons from the cupboard and trumpeting While there is little doubt that the KT has an RDP and affirmative action commitment succeeded in creating an extremely may not be enough. appropriate operational style in terms of the RDP, questions arise regarding whether it should continue to pursue its objectives in • The Kagiso Trust effective competition with other agencies for The KT was established in 1986, initially as a scarce development resources. conduit for European Community funding for development programmes. Subsequently, the KT has become a prominent NGO whose • The South African Housing Trust funding sources have diversified beyond its The SAHT was formed in 1987 as a joint original donors to other local and foreign government-private sector endeavour to help development 'partners', notably in the United provide affordable housing and shelter, and States, Canada and Japan. security of tenure, to low income communities. Its target market has turned out to be more middle income, however, and the Through its involvement with poor and The Kagiso Trust has made little real difference in access marginalised communities in education, rural Trust's operations development and capacity building, among to shelter where the need is greatest. extend deeply into others, the KT can be said to have been rural communities, directly concerned with the principles and Established with government grant funding, practices of the RDP. In fact, many KT the SAHT soon gained the image of a but there are associates were involved in drafting the RDP. parastatal set up to facilitate government doubts about its policy aimed at forming a black middle class competence Through five regional offices and extensive whose mortgage bonds would keep them networks, the KT's operations extend deeply safely committed to working for a living and into rural and small town communities out of 'trouble'. Part of the intent was for the seldom reached by other organisations. Trust to counter UF endeavours in housing.

Two organisational issues have caused But the SAHT did not establish even a serious problems for the KT in terms of reasonable track record in terms of its

INDICATOR SA Vol 11 No 4 Spring 1994 79 ®BVK!!,© P>fifiBCStf reiSKjOg The SA Housing relationships with people and their leaders, or Originally based on a lean complement of Trust did not in the quality of housing delivered through its directors and staff working through short establish even a appointed developers. Its management was term project consultants, the IDT decided in reasonable track perceived to be dominated by Afrikaners, 1993 to become a permanent development record in terms of conservative and insensitive to its clients. agency. Its track record in programme its relationships planning, implementation and evaluation, in with people or in The Trust's bond repayment requirements consultative procedures and financial the quality of placed a heavy burden on new home owners, management, is deemed to provide a secure basis for working with communities and the housing delivered led to a high default rate, and made it the target for bond boycotts which led to serious new Government - particularly in terms of cash flow problems and consequent home bringing the RDP vision to reality. re-possessions which further aggravated its precarious relationships with people. The IDT certainly has the financial resources to sustain itself. Through prudent investment The SAHT has begun getting its house in and sound financial management, its initial order through making its Board of Directors government injection of R2 billion has more representative and introducing a provided resources for its operational tentative affirmative action programme. It activities, administrative needs and the future. has also embarked upon an 'organisational cultural change programme' to improve its The IDT plans to scale down its use of client relationships and bridge the cultural external consultants and to employ teams of gap between white and black employees. professional specialists working in decentralised regional environments. This Whether these initiatives (whatever they may carries with it a real potential for bringing the mean) will be sufficient to justify the IDT's operations closer to the people, but SAHT's view that it is ideally positioned to also for dissipating resources and risking The Independent contribute to housing provision in the future, exposure to mismanagement and corruption Development remains to be seen. But the SAHT also has a in regional bureaucracies. Trust has reservoir of experience that could be valuable emerged as a in implementing new housing policies. The IDT should be cautious: there are many significant force in less successful organisations that would like the development to get their claws into its carefully husbanded field • The Independent Development Trust resources and to trade on its track record. The IDT was set up in 1990 on the basis of a R2 billion grant from the Government. Though technically a parastatal, the IDT is • The South African National Civics independent and autonomous regarding what Organisation it does, how it does it, and with whom it Sanco emerged in 1992 from the network of consults and determines priorities. civic associations involved in the struggle against the government since the 1970s. The IDT remains responsible to Parliament, Given its background and experiences, Sanco though, and subject to its auditing should be in the vanguard of community requirements. Initially regarded with some organisation and mobilisation in the quest to scepticism, the IDT has emerged as a popularise the RDP among the people. significant force in the development field and has become widely involved with people in But mostly this is not the case, and many of projects associated with housing, education, Sanco's regional and local structures are job creation, health and rural development. characterised by internal power struggles and crude attempts at gatekeeping to ensure that The IDT's operational style insists upon all development funding falls under their maximum feasible consultation with control and that their sanction should be community groups and organisations, secured by any development initiative before Through prudent together with their full participation in engaging with community groups. investment, the carefully prioritised programmes. Towards IDT's initial securing this ideal, the IDT embarked upon a While such situations are by no means government steep learning curve that began in 1990 and is universally evident in Sanco structures, and injection of R2 still proceeding. are not a position adopted by its national billion has executive, the phenomenon is sufficiently provided There is little doubt that many errors have common to be the cause of some concern. In resources for its been made during the IDT's brief history, many respects, Sanco is an enigma and its needs and for the simply because of the nature, scale and role as the 'representative of the people's future urgency of the problems it sought to address - interests' is not beyond question. and because some of its critics and 'partners' might have preferred it not to succeed since Sanco's central focus is difficult to identify, this would reflect their incompetence in not perhaps because it does not have one. There being able to get things done. is often confusion regarding three different

© II ^ il Ik © t-IIR! If VtBBMIDg 80 INDICATOR SA Vol 11 No 4 Spring 1994 kinds of roles: an advocacy or watchdog role fhe SAHT could become the basis for a If Sanco wants to in representing the interests of communities, new retail housing bank, given that be a development which was the movement's original intent changes to its management and operations agency, it will and which many are good at; a development are effected; have to build the agency role with direct involvement in capacity of its projects and their financing, in which they « Grant-making NGOs must be subjected to structures have little competence; or a role as local clear rules regarding transparency and governments in waiting. accountability;

In the latter instance, local and regional • All foreign donors should ensure their Sanco officials have been deeply involved in contributions are in line with the RDP; Local Government Negotiating Forums and many are members of transitional councils as NGOs should sell their services to representatives of non-statutory organisations. communities and not receive government subsidies; and Training and capacity building programmes in local government operations are available ® All existing institutions that might be to Sanco structures and many have taken retained should have new boards of advantage of these to good effect. But it directors and new top management. seems that Sanco's preference lies in acting as a development organisation, in which case It is perhaps in this regard that Sanco has it has much to do in terms of building the begun to create a more definitive role for capacity of its structures, and in the principles itself: to investigate and raise issues that are and practice of development. essential to people-driven development as a partnership between government and communities, and ensure these materialise through its regional and local structures. Perhaps Sanco's Commission most significant Perhaps Sanco's most significant recent recent contribution to the development-RDP debate Other players contribution has is the report of the Commission on been its proposals Development Finance, which contains some There are a number of other organisations on restructuring radical proposals regarding restructuring and interests directly involved in development existing development agencies. development initiatives. They too are agencies important because of the range of services Essentially, the report adopts the RDP's and opportunities they provide to poor and emphasis on development as a 'people-driven marginalised communities, and their process' and seeks to facilitate fundamental significant potential in realising RDP. changes to transfer responsibility for development to the people because, it says, These include the Urban Sector Network and communities can control and use funds more its affiliates, including the Development efficiently and honestly than development Action Group, the Built Environment Support agencies with bloated bureaucracies. Group, PlanAct, Corplan and the Urban Services Group; the National Land The report relies heavily on the principle of a Committee; the 1990's forum phenomenon at Reconstruction Office associated with the the national, regional and local levels; and the offices of the President and the provincial spectrum of private sector corporate social premiers to coordinate the rationalisation of responsibility participants. development procedures, including foreign funding that falls outside of government to To these add the growing list of foreign government aid. It makes some wide-ranging funding and development agencies, for suggestions, including the following: example the Ford Foundation and US AID, Some form of local and foreign NGOs, the World rationalisation and The SBDC should be reorganised to Bank-IMF and, in due course, the entire reorganisation of create a new subsidiary to target small phalanx of United Nations agencies. development Dtack business; The future prospects are both promising and agencies is clearly The DBSA should be dismembered and alarming. Promising from the perspective of necessary its functions, funds and staff transferred to increased access to development funding and other organisations, including the the real possibility of realising the imperative Reconstruction Office; of empowering the poor in a new democratic society. Alarming because of the divisive The IDT and the KT should merge and conflicts, power struggles and consequent concentrate on areas where government is confusion and misinformation that is likely to not active, using funds from private and emerge. Some form of rationalisation and foreign sources; reorganisation is clearly necessary.

27 vimcs m 12 INDICATOR SA Vol 11 No 4 Spring 1994 27 vimcs m The Government Conclusion ® A national grant-funding institution, intends, through combining the functions and resources of its RDP Following consternation precipitated by the KT and the IDT, although other department, to oblique references to the need for organisations could be included in due course. If a service function is added to reorganise organisational restructuring in the MERG report and the RDP, the Sanco-led the grant-funding function it might, for development Commission on Development Finance has example, be conceivable for the Urban agencies, probably made the most significant Sector Network to be included since they resulting in three contribution to change. would need to have close liaison with aii basic structures enlarged grant-making structure. Its report on people-driven development threw a somewhat confused cat amongst the • A development loan function, serviced by equally confused pigeons. For various a streamlined DBSA, possibly also reasons, including some rather dubious ones, including the SBDC and other existing the South African development environment small business development has indeed been characterised by organisations, as well as the SAFIT. cross-currents of duplication, competition for donor funds, internal conflicts and no small • A non-concessionary lending function measure of community suspicion. comprising private sector loans and the IDC, the latter providing financing These circumstances, together with some potential through proceeds realised by (he organisational uncertainty and insecurity, sale of some of the industrial subsidiaries have resulted in unconstructive carping and in its current portfolio. sniping at each other, which has not contributed much to resolving the situation. As an initial step towards rationalisation, A rationalised such a tri-functional division appears to make development There has been some evidence of a shift from a great deal of sense. With some imagination initiative in South organisational competition towards and flexibility, most development Africa requires cooperation, for example the IDT, KT and organisations, suitably hybridised or merged strong leadership, DBSA have formed the Mvula Trust to deal if necessary, could be fitted into one of the undisputed with rural water and sanitation issues, the UF three categories. competence and has worked closely with Sanco and the IDT guaranteed to deliver training and capacity-building Over time, the structure would settle down sustainability programmes, and affiliates of the National into a more clearly understood division of Land Committee and the Urban Sector functions and responsibilities among the Network have joined forces on occasions. country's proliferation of development agencies. This would make things By and large, however, most organisations considerably easier for local and foreign have tended to keep very much to themselves funders, for the organisations themselves, and REFERENCES and have plunged into drastic overhauls of for their community constituencies. Maasdorp G (1990) 'The their boards of directors, trustees and Role of the State in the management structures through It would also make things easier for the Economy', in Critical 're-positioning' and affirmative action. Choices for South Africa - government's RDP offices at the national and An Agenda lor the 1990s. provincial levels to keep tabs on who is Edited by R Schrire. Recent annual reports have overtly pledged funding what, and who could or should be Oxford University Press, Cape Town most organisations to the principles of the considered for government funding, tax MERG (1993) Making RDP, and many have reflected their future concessions, registration requirements and Democracy Work: A roles as being poised to make significant the like. Framework for Macroeconomic Policy in contributions to the transition and beyond. South Africa. Centre for In the final analysis, a rationalised Development Studies, But it seems evident that the initiative for any development initiative in South Africa University of the western Cape, Belville. real restructuring and rationalisation among requires strong leadership, undisputed RDP (1994) The development agencies lies elsewhere - competence and guaranteed sustainability. Reconstruction and probably with the new Government. Steps in This will not happen of its own volition: there Development Programme - A Policy Framework. this direction are imminent, more or less are already too many divisions and ANC, Johannesburg. reflecting the Sanco recommendations. competitive tendencies amongst the various SAIRR (1994) Race development agencies. Relations Survey. South African Institute of Race Recent reports have indicated Government Relations, Johannesburg. intent, through the RDP department, to What is needed is direction, focus, guidance Sanco (1994) 'Making reorganise the country's development and some inspiration. The RDP provides the People-Driven Development Work'. agencies. This intent will, apparently, result focus. With sufficient commitment and Report of the Commission in coalitions, mergers and/or realignments to determination, the rest could result from the on Development Finance. form three basic development financing proposed three-sector structure. Q08& Sanci, Johannesburg. structures:

© II ^ il Ik © t-IIR! If VtBBMIDg 82 INDICATOR SA Vol 11 No 4 Spring 1994 Civic Capacity Building

By Craig Clark, Simon Bekkerand Catherine Cross Centre for Social and Development Studies, University of Natal

Development interventions in South Africa need to move beyond merely delivering infrastructure towards enabling extensive community participation and empowering less developed and marginalised communities. This article is based on a paper prepared for the Informal Settlements Research Programme of the Institute for Social and Economic Research, University of Durban-Westville

t is estimated that around eight out of capacity matching or exchange: developers every 10 homes built for all races in must either accord value to community Important sources the Durban Functional Region are self contributions or must expand their own and of funding have provided shacks, and that the shack community capacity through a mutual made community Idelivery system will continue to be the transfer of skills, knowledge and insights. involvement in predominant way in which people obtain development housing for years to come. projects a Disempowerment precondition of This gives a good indication of the extent of financial support informal settlements and the development The inability of informal settlement challenge confronting the region. communities to become involved as equal partners in development projects was One aspect of this challenge is pressing: severely exacerbated by apartheid, which enabling community participation in the fostered a paternalistic attitude towards black development of informal settlements. In the people and located decision making about present climate in South Africa, development their lives in the hands of the white minority. interventions need to move beyond merely delivering infrastructure towards empowering Apartheid also paid lip-service to the notion less developed and marginalised of black self determination through the Developers must communities. 'bantustans', in which non representative expand their own black elites exercised nominal control over and community Important sources of funding such as the the lives of black people while real power capacity through a Independent Development Trust have made remained in white hands. mutual transfer of community involvement in development skills, knowledge projects a precondition of financial support, In the late 1970s a range of Charterist social and Insights while initiatives which draw communities movements, from labour unions to civic into the development process are becoming associations and residents' committees, an important feature of local government emerged across South Africa. It became initiatives. increasingly difficult for state structures to claim they were the legitimate representatives There exists a broad consensus that the goal of black communities. of empowerment is to transform communities from passive recipients of development In the Durban Functional Region (DFR) the benefits into active participants in the design picture was somewhat different. Most black and delivery of programmes. But this process areas were located in KwaZulu, where The inability of is fraught with problems. opposition from the authorities prevented the communities to open mobilisation of Charterist civil society become involved Communities lack the capacity to become organisations. Only in areas which lay as equal partners equal partners of development agencies. Most outside KwaZulu, were civic organisations in development do not possess the knowledge or skills needed able to mobilise. projects was to become involved in the technical, financial severely and managerial aspects of development. Charterist grassroots organisations began exacerbated by emerging in urban KwaZulu-Natal by the apartheid It is argued that capacity building within mid 1980s, probably in response to the communities needs to be accompanied by mobilisation of the United Democratic Front.

27 vimcs m 12 INDICATOR SA Vol 11 No 4 Spring 1994 27 vimcs m Many civic Local civics were almost exclusively urban informal settlements has been shaped by a and challenged the KwaZulu structures. number of important factors which are not organisations conducive to institution building. These are: have not been With political organisations banned the civics the lack of a sound resource base upon which able to develop urban social movements can mobilise; the spent most of their energy on political the institutional spatial instability of the DFR informal activities such as mass mobilisation and skills needed to population; and the endemic conflict within resistance campaigns. Local authority the region. act as equal structures became prominent targets of civic partners in protest, condemned as symbols of apartheid negotiation oppression. • Scarce resources In his influential study of urban social Since the unbanning of political movements movements, Manuel Castells argues that in 1990, the role of civic organisations has urban social movements crystallise around become ambigious. They have attempted to issues of collective consumption of urban both preserve their independence from goods. In informal settlements in the DFR, formal political structures and to transform however, the commodities available for into meaningful actors in the process of collective consumption are scarce. negotiating a new dispensation. In this they appear to be frustrated for three reasons: Few of the amenities available even to formal township residents are provided. There are • Many are relatively newly formed and so three key issues around which organisations have not been able to develop the of civil society can mobilise: control over the institutional skills needed to act as equal allocation of land for housing, over existing partners in negotiation; (scarce) resources such as water, and over development opportunities. ® The opposition with which they have until The commitment recently been met has not allowed them to • Spatial instability to community develop capacity through experience; The DFR informal population is extremely participation in spatially unstable. Nine out of 10 households development is « Many were established with the express have moved at least once since 1986. Most of widespread, but intent of resisting the efforts of the state to this population has been established in the there is no impose its will upon black communities. DFR since before 1986, so these moves consensus on how This militates against their engaging on an represent urban on-migration, not always to achieve it equal footing with state institutions. between informal settlements.

Clearly this is a generalisation. There are a Urban on-migration is motivated by a number of instances where social movements number of factors: a desire to improve the have been able to adapt and participate in household's situation in regard to urban negotiated transformation, but in the DFR access and transport; perceived better levels this has been limited. Few communities of service delivery in other areas; and desires possess institutions with the capacity for for greater security of tenure, for greater involvement in development. autonomy and to escape violence.

It is not only community based structures Spatial instability frustrates the formation of which have been slow to adapt. State bodies a stable community. In particular, it is often and private sector agencies involved in the more empowered members of development have elaborated over the years a communities who are most able to exploit legacy of bureaucratic procedures which now opportunities for on-migration. possibly constrain their ability to respond to the changing developmental climate. For this reason, those community members most able to mobilise into organisations in civil society may well be those engaged in Three important It is very difficult for organisations set up to operate in a 'top-down', non-empowering on-migration. This too frustrates the factors which fashion to adapt to new approaches which formation of civic organisations which are undermine involve communities as something other than able to participate in development. institution building passive recipients of development. are: the lack of a • Violence and conflict sound resource While the commitment to community The informal settlements of the DFR have base, spatial participation in development is widespread, experienced differing levels of violence at instability and there appears to be no consensus as to how different times, although violence is endemic, conflict this is to be achieved. sustained and permeated throughout KwaZulu-Natal. Leadership structures Violence appears to arise from the interaction of two factors: conflict over scarce resources, The character of social movements in DFR and political rivalry between the African

©II ^ il Ik © t-IIR! If VtBBMID g 84 INDICATOR SA Vol 11 No 4 Spring 1994 National Congress (ANC) and the Inkatha , civics are disorganised and lack formal Violence resulting Freedom Party (IFP). Groups and individuals organisational structure, and that there is in the diaspora of - appeal to try to control the scarce resources wide diversity within the civic movement. In a community available to residents and to dispense them so particular, the representative and accountable destroys the social as to acquire political influence. nature of the civics of the DFR informal networks which settlements is questionable. promote the Severe and prolonged violence can frustrate formation of the formation of viable civic organisations in In practice the civics almost invariably organisations of two ways: it may involve the community comprise self elected members of local elites, leadership as initiators of violence and targets often with personal agendas relating to civil society of reprisals, and it drives residents to control over scarce resources. Few on-migration, contributing further to the community structures are constituted through spatial instability of the informal population. an elective democratic process, and it is probably the norm for ordinary residents to Typically refugees from this kind of endemic have little input into their deliberations. violence are stripped of the resources which they do possess, so violence resulting in the Even community organisations driven by a diaspora of a community also destroys the genuine desire to serve the interests of the social networks which may promote the wider community may take to 'nest formation of organisations of civil society. feathering' as a result of frustration in attempts to achieve their initial (idealistic) goals. Existing arrangements This is not to say that the community Two types of community leadership may be committee structure is beyond defense. discerned to have emerged in the DFR: Committees may be comprised of elites pursuing their own agendas, but these Two types of Committee type civic structures, which agendas may coincide with the interests of community purport to be representative of the rank and file residents. Elites can also care. leadership have interests of their constituents, and emerged in the As much as it is important to guard against DFR: committee Local 'strongmen type' institutions, where romantic claims about civics, it is necessary type civic a single person asserts control over to be cautious about being too cynical. Chris structures, and available resources. Heymans notes that many civics enjoy local 'strongmen significant support, and gained sufficient type' institutions The degree of legitimacy and the extent to credibility as protagonists against apartheid which these two types of institution are viable for people to find it difficult to oppose them. is widely divergent. Swilling agues forcefully that the way ahead "J Committee structures for civics is to build a democratic and Civil society organisations are widespread developmental civil society both by throughout informal settlements of the DFR. strengthening their own democratic values Of 19 populations surveyed by the Rural and structures and by supporting a strong Urban Studies Unit (Rusu) between 1990 and local state that is decentralised and 1992, only two lacked this form of institution. democratic.

They are normally referred to as the civic • Local strongmen association of the area, or sometimes simply The case of local strongmen is widely as 'the committee'. The term 'civic' is used associated in the DFR with 'warlordism': the to refer to such institutions, but it blankets a local strongman dispenses resources under wide range of different organisational his control to community members in structures and styles. exchange for political allegiance and backing Most civics are in conflicts with political rivals. disorganised, lack Mark Swilling defines civics as grassroots formal organisations that are accountable to local This form of institution is often generalised constituencies, seek to address grievances as not being conducive to capacity building in organisational local residents have with their living the community as a whole, and invariably structure, and their conditions, and are located outside formal repressive towards attempts by communities representativeness governmental, party political or development to mobilise more representative structures. is questionable agencies. He writes too that civics normally have constitutions of some kind, and have This may not be an accurate portrait. Local elected executives with defined office bearers strongmen may seek to dispense patronage in with agreed duties. such a fashion that it favours as many rank and file members of the community as While this may represent the ideal to which possible: a satisfied clientele makes for a civics aspire, our experience is that most secure patron.

INDICATOR SA Vol 11 No 4 Spring 1994 85 ®BVK!!,© P>fifiBCStf reiSKjOg By far the most A related situation occurs when a single, through an electoral process. But some civics widespread skilled individual steps in to fill the vacuum in have attempted to secure democracy problem formed by the collapse of civic structures. through other means. Broadly speaking, confronting Although such individuals are members of democracy may take one of two forms: the local elite, they may be sufficiently communities in altruistic to put their skills and resources at ® Representative democracy, where the DFR informal the disposal of the community. members of civics perceive themselves as settlements is the mandated to make binding decisions over proliferation Whether or not this form of community about the community. This may be a of community control is benevolent or malign, it has one feature of long standing civic based institutions crucial shortcoming. Should the local leader organisations. be removed, development may grind to a halt and violence may ensue that will end ® Participatory democracy, where decisions development completely. debated at civic level have to be ratified al the local neighbourhood level. Contested leadership Representative democracies are easy to draw into the development process if the developer By far the most widespread problem is able to persuade the civic that the confronting communities in DFR informal intervention is in the community's interests. settlements is the over proliferation of The decisions over the form and products of community based institutions, each claiming development projects have to be negotiated at legitimacy as the sole authentic voice of its civic level only. constituency. Participatory democracies are more difficult One extreme case encountered by the authors to engage. No decision can be taken until it is Representative was in Inanda, where authority was contested approved at both the neighbourhood and the democracies are by seven committees and several political civic level. More levels of organisation have easy to draw into party branches. Such proliferation of to be consulted, and this slows down the the development institutions gives lie to the claim of civic development process and increases the process associations that they represent the interests chances of rejection of the initiative. of all community members. It is difficult for developers to get in contact No community is homogeneous, and with entire communities, and to conduct alliances may form across socio-economic large meetings. This is less frequently divisions in response to a wide range of encountered than contested leadership, but issues, including gender, age, types of there have been a number of instances. economic activity, access to housing and standards of service delivery. This form of civic organisation is clearly intended to sidestep the threat of Such alliances may well crystallise in non-representative elites controlling decision institutions which reflect competing interests, making in civics, and it allows expertise and which may lead to open conflict without capacity existing at all levels of the some form of coordination. Even where an community to feed into the decisions. umbrella organisation does exist, poor internal communications within civics and This is a laudable exercise in transparency in communities may create problems. Jocal government, but is cumbersome and permits only very slow decision making. Within these contesting groups, however, Experiments with participatory democracy capacity may reside. Forms of capacity exist currently underway may in time prove too in interest groups such as informal sector cumbersome for efficient decision making, trading groups, which possess rudimentary which may favour the emergence of less Experiments with financial skills. transparent community organisation. participatory democracy What seems to constrain the deployment of currently this capacity for developmental ends is the Inefficient leadership underway may in failure of civics and other interest groups to time prove too resolve their differences and cooperate. It is clear that both the committee and cumbersome for strongmen type civics may be inefficient and efficient decision pose a problem if drawn into development making Forms of democracy projects. Inefficiency derives from three factors: lack of legitimacy, contested Civic organisations represent themselves as leadership and cumbersome procedures. democratically organised, and therefore as representative of the aspirations of their Institutions which lack legitimacy in the eyes constituencies. This seldom manifests itself of residents can spark conflict within the

12 INDICATOR SA Vol 11 No 4 Spring 1994 27 vimcs m development arena through contest over the It is generally agreed that one of the most Both committee control of resources in order to perpetuate important means for developing capacity and strongmen their own survival. Such struggles impede the for full involvement of communities is type civics may be prospects for development. through experiential learning: communities inefficient and can be drawn into the development process pose a problem if and can learn the necessary skills through Contested leadership can also lead to conflict drawn into over scarce resources, or may prevent being involved in all aspects of the development capacity residing in rival groupings from intervention. projects benefiting the entire community. These severely hamper the ability of civics to But this presupposes that the development participate on an equal footing in the process is structured so that its procedures are development process. understandable. Opaque procedures are likely to result in communities being unable to Where community organisations are bogged make meaningful inputs, and so being down in inflexible procedures, it becomes involved only in the identification of benefits difficult for the communities to take binding or as labour. decisions. Engagement in the development process may be too costly in terms of time Neither of these will contribute towards the and money, and they may be excluded from capacity of communities to participate fully participatory development projects. in development. Free access to information about development procedures is thus a Despite the faults of civics, they represent an prerequisite for community involvement and important category of stakeholders. The capacity building. following factors suggest that civics need to be drawn into development and need to From the developers' side comes the strengthen their capacity: argument that community control over funding and development is not at present Contested Such capacity as does reside in DFR practical. Undeniably, many communities in leadership can informal settlements, particularly in informal urban and peri-urban areas are not severely hamper regard to knowledge of developmental 'policy-literate': they are unable to the ability of civics principles, is lodged in the civics and understand the complexities of formulating to participate on other organisations in civil society; and executing development programmes. an equal footing in the development The status which the civics enjoy as It is important to draw communities into the process opponents of apartheid has given them a development process as a way of transferring degree of legitimacy in the eyes of precisely this cluster of skills. community members; What also needs to be considered is the For better or for worse, civics are the nature of the development process currently structures which exert influence over being undertaken in South Africa. The development related issues such as rates interface between communities and funders of influx and access to land. Tampering and developers is currently extremely with such structures could be disastrous, legalistic and jargon bound. and might easily spark violence. Preliminary findings of research conducted Civics are thus important institutions whose by Rusu suggests that there is a conflict strengths need to be nurtured and whose between the basic minimum need of the weaknesses need to be addressed. developer community, which is for the efficient completion of a project within the budget and on schedule, and the basic minimum need of the community, which is to Capacity building feel that they are in control of the process. Capacity building The civics of most of the DFR's informal could be achieved settlements, are in crisis. In an era in which through sensitive participatory development is fast becoming Understanding problems involvement of the the norm, most civics lack the capacity to engage in development projects as equal If there is some truth in the argument that community and partners. communities are not 'policy-literate', it may training initiatives also be argued that the developers are not Broadly speaking, two strategies may be 'poverty-literate': they are not sensitive to the identified to build capacity in civics and other problems of the communities they purport to community based structures. These are serve. The need for capacity building is thus sensitive involvement of the community in not necessarily limited to communities: the development process, and training developers need to acquire the capacity to initiatives. Both strategies need to be understand the effects of poverty on deployed simultaneously. disempowered communities.

INDICATOR SA Vol 11 No 4 Spring 1994 87 ®BVK!!,© P>fifiBCStf reiSKjOg Developers need The most rational way to promote this seems At present capacity is lacking in these to acquire the to be through development projects which communities to locate the dimensions of their capacity to aim to place communities in an equal own predicament, or to identify possible understand the partnership with the developers, but which sources of help. Clearly there is a need for a effects of poverty remain sensitive to the problems described. substantial intervention in community development through capacity building. on disempowered The transfer of skills to communities must be communities designed in such a way that potential for Even within comparatively well mobilised conflict over the control of resources is communities there are constituencies who minimised, and that transparent and efficient experience disempowerment: youth, women, civic organisation is promoted. There is no the aged and the disabled. Exercises in blueprint to be offered and it is important to capacity building need to be targeted at these emphasise that detailed understanding of constituencies as well. local dynamics is required. These needs for empowerment and capacity A novel methodology suggests one way in building are widely recognised, and an which development agencies might proceed. industry has sprung up of organisations Recent methodological exercises in promoting organisational development participative research are based on the notion through training. Such initiatives are that both the community members and frequently disorganised and unfocused. The 'outside experts' can learn from each other. objectives of community organisation were not conceptualised clearly by the trainers. A similar approach to development projects could be an important prerequisite for the Skills training in organisational and future. Interactive approaches are institutional development are relatively fundamentally transparent, since access to widely available and accessible, but their information is mutual and decision making Is complimentary skills in development training shared between all parties. They illustrate the and administrative record keeping are less contention that transparency should not be prioritised by training initiatives, and more REFERENCES separated from capacity building. often tend to be provided outside the Boaden B & Taylor R (1992): 'Informal Settlement: Theory community. Versus Practice in At present there are many opportunities KwaZulu-Natal', in Smith DM opening up for civics to become involved in This pattern of delivery may permit training (ed) The Apartheid City and Beyond. Routledge and development initiatives. One way of of a small number of designated leaders, but Witwatersrand University promoting capacity in civics is participation, is unlikely to reach the wider community or Press, London and New York. directly or indirectly, in forums. Kehla become part of its social experience. As a Cross C (1994): Preliminary research findings from an Shubane writes that this has benefited civics result training favours the emergence of investigation of leadership significantly, affording them an opportunity elites, and still fails to meet the capacity structures in DFR informal to learn and incorporate into their work building needs of disempowered people, settlements. Rural-Urban Studies Unit, Centre for Social considerations which they would not have especially women. and Development Studies, taken on board in the past. Durban, forthcoming. A general constraint on the effectiveness of Heymans C (1993): 'Towards People's Development? Civic Such opportunities need to be grasped. In the training initiatives is resource availability Associations and DFR, initiatives such as the Metropolitan matched to take-up of training. For Development in South Africa', Development Forum are seeking to expose impoverished people, the capacity to take in Urban Forum Vol 4 No 1. Louw A (1994): 'Conflicts of civics to this kind of experiential learning. advantage of training is often lacking. Interest: Overview of Conflict in KwaZulu-Natal from 1989-1993', in Indicator South This resource shortage is the major reason Africa Conflict Supplement No Training why non-governmental and service 1, Vol 11 No 2 Autumn, organisations often take a holistic approach to Durban. Development interventions may assist civil training delivery and development, and Lowe S (1986): Urban Social concentrate significant effort in single Movements: The City After society to establish viable organisations. Castells. MacMillan Education Most informal communities in the DFR lack communities. Resource poverty and the very Ltd, London. viable institutions able to receive funding and lack of capacity itself is a major barrier to Mayekiso M (1993): act as pipelines through which development successful training aimed at building capacity. 'Institutions that Themselves Need to be Watched Over: A and funding can enter. Where pipelines exist, review of recent writings on they lack transparency. This suggests the need for an approach which the civic movement', in Urban Forum Vol 4 No. 1. synthesises training in capacity building with Shubane K (1994): 'The Frequently, these disempowered development interventions, carried out in an Future of Civics', in Indicator communities are the most in need of the interactive manner. In promoting effective South Africa Vol 11 No. 2 Autumn, Durban. social and physical infrastructure which is training, more consideration needs to be Swilling M (1993): 'Civic provided by development interventions. They given to developmental issues involved in Associations in South Africa', are unable to claim the resources they need to supplying training into resource poor in Urban Forum, Vol 4 No 2. escape the ravages of poverty. communities effectively. QS>3&

© II ^ il Ik © t-IIR! If VtBBMIDg 88 INDICATOR SA Vol 11 No 4 Spring 1994 Ttif Dwmw WflTfRfROflT

By Thabo Mpakanyane Director Economic Development, Durban Unlimited

Nearly 10 years after it was first proposed, Durban's Point Waterfront development is finally underway. It is a massive development with a distinctly African theme, aimed at boosting the local economy and placing Durban back on the map as a prime tourist destination.

uch as Cape Town's vaunted Mecca of South Africa, but in recent years The consultation Victoria and Albert Waterfront the city has lost this position, competing with process delayed has taken off, KwaZulu-Natal other cities and areas for a share of the the Point has begun making a name for industry. Waterfront Mitself with its planned Point Waterfront development, but development. Durban's waterfront feature The Point Waterfront development is crucial was essential to has been a long time coming. to Durban's future as a major tourist destination. It is also intended to create a securing its support Protracted discussions have been held behind variety of jobs, training opportunities, a closed doors, as consensus seeking venue for artists, many opportunities for mechanisms among political and other major capital investment and the interested parties were hammered out. development of new facilities. Profit from the venture will be used to benefit the community Unlike the Western Cape, where perhaps at large. because of the relatively low proportion of black people it was fairly easy for the waterfront development to proceed without The Point lengthy consultation, Durban has a large number of black people and a diversity of The Point area under consideration is A Board powerful political and other actors. composed of 55 hectares of former representing all warehousing and other business areas. This interests was The consultation process delayed the Point land, which borders on the 'working' part of Waterfront development for years, but was Durban's harbour - which is Africa's biggest appointed in essential to securing its support and ensuring and busiest - is in a state of semi-disuse, August and the its success. The project has now won the made up of a series of warehousing and other development is backing of the Durban city council, the storage facilities. now set to forge African National Congress, the Inkatha ahead Freedom Party and local civics. The Point is prime land, close to the city centre and with magnificent views of the A Board representing all interests - including harbour which runs along one side and the current owners of the land to be swimming beaches which line the other side. developed and the Durban Infrastructural It will be an extension of the beachfront's Development Trust - was appointed in 'Golden Mile', where most hotels are situated. August and the development is now set to forge ahead. An interesting aspect of the development - and one which generated some conflict It was essential to Ian Wilson of the developers Stocks and during consultations - is how the area is establish some Stocks is the full-time chief executive of the constituted in terms of ownership. Around kind of mechanism new Point Waterfront Company, which will 75% of the 55 hectares is owned by Propnet, to accommodate drive the project and draw up a masterplan the property arm of Portnet, and most of the the interests of for its coherent development. remaining land is owned by the City of land owners and Durban. other groups One of the major aims of the project - which will be huge - is to be a flagship of tourism It was essential to establish some kind of related development. Durban historically mechanism to accommodate the interests of enjoyed the reputation of being the tourism the land owners and all the other groups

27 vimcs m 12 INDICATOR SA Vol 11 No 4 Spring 1994 27 vimcs m

The Point area itself has a rich history which dates from the early 19th Century. Much of THE POINT WATERFRONT this history has been studied by Professor Brian Kearney, who has traced the development of the Point area and put Conceptual Framework together an incredible catalogue of events.

The Point's history has been collated on SCOPE video, and Professor Kearney and others have Lynchpin node to generate allied tourism and leisure activities created a development and marketing vision for the area. AFRICANNESS The development will project an image consistent with the tri-cultural background of Natal. Zulu, Indian and 'Colonial'. Three phases GATEWAY STATUS The approach to developing the Point Create a unique 'must-see' venue that beckons to both local and Waterfront has been well calculated. It is international visitors. Should serve as a meeting place of local and expected that the project will have three international tourists and visitors. phases. INTEGRATIVE ASPECTS The first phase, which is already underway, The area should integrate the CBD and both the bay and the port. An involves a pilot project situated at the inlet to integrative thrust will ensure balanced growth and obviate lopsided Durban Bay. Stocks and Stocks won a development. fiercely competitive tender to construct an entertainment complex at the formerly OWNERSHIP derelict King George VI gun battery. The idea of ownership emanates from the need to involve the Durban community emotionally in the project. 'Our Point' should be the key phase. Secondly, ownership in a direct manner with the development process The R8 million project began in May and open to as many potential developers as possible, particularly black should be completed by the end of the year. developers. Ownership automatically wins support. The ground floor will comprise an outdoor action bar linked to an indoor public DIVERSITY recreational area with a stage for concerts and Broaden sustainable but diverse recreational and business needs of the other entertainment, a draught bar with an community. external deck, and an outside platform with kiosks selling fast foods, memorabilia, clothing and curios. COHERENT BLUEPRINT Kick off with a deliberate plan of projects. A well balanced blend of business. No preponderance of restaurants, bars etc. The basement will have a wine bar and the upper level a speciality restaurant and a family restaurant. The car park will be COMMUNICATION & AVAILABILITY landscaped with lawns and palms, and the The management of the Point to be as accessible as possible to interface with community, political and business needs and trends. possibility of holding flea markets there is being considered. BLACK BUSINESS ACCESS The second phase will entail 'responses' and A conscious effort to involve black interests; both business and community. This will guarantee future support and ownership. 'initiatives'. This involves drawing up the masterplan, deciding on specific projects, putting them out to tender for local and international developers, and encouraging appropriate investments. Investors will have envisaged to take place over the next five to Business interests to meet with the overall strategies established 10 years. in Malaysia want for the development. to invest R850 By the time it is completed, it is hoped that million Already business interests in Malaysia have the Point Waterfront development will be the expressed interest in the Point Waterfront. finest and most African waterfront Landmark Holdings wants to invest R850 development on the continent - and will have million and set up a joint venture company re-established Durban and KwaZulu-Natal as with the Point Waterfront Company. A group South Africa's premier tourist destination, a representing Durban will leave soon for meeting point for South Africa and Malaysia to try to negotiate this investment. international tourists.

The third stage will involve infrastructural We look forward to that time. Meanwhile and large-scale developments, which are there is a great deal of work to be done. 0S>3£\

INDICATOR SA Vol 11 No 4 Spring 1994 91 ®BVK!!,© P>fifiBCStf reiSKjOg Creative Thinking

By Mike van Graan General Secretary, National Arts Coalition Advisor to the Minister of Arts, Culture, Science and Technology

The arts and culture in South Africa, already considered low priority, are threatened with further neglect as the country struggles to meet basic needs and popular expectations. But arts and culture should be linked to development. They are crucial to the success of democracy, economic growth and nation building.

he signals from the new Government concerning the future RECONSTRUCTION AND The arts will of the arts and culture in our continue to be DEVELOPMENT country are, at best, confusing. On under increasing Tthe one hand, a ministry which profiles the pressure to justify arts signals that culture might be taken We are in the fortunate position of not being their right to exist seriously. On the other hand, the links with the first country to implement a and access science and technology and the ministerial reconstruction and development programme. resources appointments signal a potential lack of 'Development' has been the in-vogue priority accorded to culture. phenomenon of the post-colonial era, designed to help countries overcome abject Whatever the signals, the arts will continue to conditions, achieve independence and a be under increasing pressure to justify their better quality of life for their citizens. We- are right to exist and, particularly, to access in a position to learn from their experience. public and private sector resources in the context of other perceived priorities. In practice development, like democracy, does not necessarily have a liberating The challenge to the arts community, then, is meaning. Despite attempts at development, three-fold. We have to: the experience of numerous South American and African countries has been to slide « Motivate and locate the importance of the deeper into foreign debt in the pursuit of arts and culture generally within the economic growth, without facilitating human current discourses shaping national 'and social development. In many cases priorities. democracy and human rights have been neglected, and this neglect justified as We have to devise ® Devise concrete and pragmatic necessary to economic growth and pragmatic policies, recommendations for policies, funding development. funding mechanisms and strategies to develop and mechanisms and protect the arts. It would be instructive to heed the thoughts strategies to of Carl Tham, director-general of the develop and Organise ourselves in the most effective Swedish International Development protect the arts ways to have our recommendations taken Authority, in his opening address to an seriously, not only at national level but international seminar on culture and also by regional governments which now development cooperation in Stockholm in have primary constitutional responsibility 1991. Material growth alone, he said, does for the arts. not compose the evolution of a society.

National priorities, as I perceive them, are "In a world characterised by enormous shaped largely by four important themes: chasms between rich and poor countries, reconstruction and development, democracy by mass poverty, and desperation and human rights, economic growth, and emanating from misery and injustice, by multi-culturalism and nation building. enormous environmental problems ... it

© II ^ il Ik © t-IIR! If VtBBMIDg 92 INDICATOR SA Vol 11 No 4 Spring 1994 might appear extravagant and esoteric Development must create total and integrated Culture is a for a development agency to deal with conditions for the holistic growth of human fundamental part cultural issues. beings and society. of the life of individuals and "I believe -1 am convinced - that this is Perhaps we should take some encouragement communities. an error of judgment. It was no from the fact that these lessons seem to have Development coincidence that in 1987, the General been learned by our Government since the should therefore Assembly of the United Nations RDP does have an arts and culture proclaimed the period between component. The RDP document states: have a cultural 1988-1997 as the World Decade for dimension Cultural Development, thereby "An arts and culture programme is set acknowledging and promoting what was out as a crucial component of called the 'cultural dimension of developing our human resources. This development'." will assist us in unlocking the creativity of our people, allowing for cultural Unesco states in its Practical Guide to the diversity within the project of World Decade for Cultural Development developing a unifying national culture 1987 that, despite progress achieved, the first (and) rediscovering our historical two International Development Decades (the heritage... (1.4.8) 1960s and 1970s) revealed the limitations of a development concept based primarily on It states further that: quantitative and material growth. The RDP arts and culture policies aim From 1970 onwards, critical reflection led to (among other things) to link culture intergovernmental conferences on cultural firmly to areas of national priority such policies and the Mexico City Conference in as health, housing, tourism, etc, to 1982 which put forward the idea that culture ensure that culture is entrenched as a The RDP arts and constitutes a fundamental part of the life of fundamental component of culture policies individuals and communities, and that development. (3.4.3.6) aim to link culture development should therefore have a cultural firmly to areas of dimension. Of course, this aim still needs to be tested in national priority practice, but at least there appears to be a such as health, The two principal objectives of the World philosophical commitment to integrating housing and Decade for Cultural Development - greater culture and development. A practical tourism emphasis on the cultural dimension in the example of how this might work would be for development process and the stimulation of 1% to 5% of every development project creative skills and cultural life in general - budget to be allocated to the arts. reflect an awareness of the need to respond to the major challenges which shape the horizon For example, if building a clinic costs of the 21st Century. R200 000, perhaps R4 000 could be paid to an artist to design an educational poster, or to It is not true then that culture and a theatre group to raise awareness about Aids. development are mutually exclusive, or even In this way, the arts are integrated into, and that culture is legitimate but not a priority come to reflect, the concerns and issues within reconstruction and development. The affecting communities at a local level. experience of other developing countries and of international development agencies is that culture is integral to development. This DEMOCRACY AND recognition is based on two factors: HUMAN RIGHTS That Western European models of development cannot be imposed on contexts Article 25 of the Universal Declaration of The arts should be where the value systems, beliefs, traditions Human Rights states that everyone has the integrated into, and forms of social organisation militate right to a standard of living adequate for and come to against such models. Rather, to succeed health and well-being. Article 27 states: reflect, the development must be understood in terms of concerns and and be integrated into the culture or way of "Everyone has the right to freely issues affecting life of the community concerned. participate in the cultural life of the communities at a community, to enjoy the arts and to local level Colonialism, and in our case apartheid, did share in scientific advancement and its not only affect human beings physically, benefits." materially and economically, so development cannot emphasis only those dimensions of the It does not state that the arts are a luxury, or human experience. People have been stunted that bread, clothing and health care are more intellectually, scarred psychologically and important than the arts: these are all their cultural traditions decimated. fundamental human rights.

INDICATOR SA Vol 11 No 4 Spring 1994 93 ®BVK!!,© P>fifiBCStf reiSKjOg In our country the But in our country the arts have come to be of creative expression and use it to explore arts have come to seen as luxuries, available only to the monied and understand their reality in order to be seen as classes. That is a distortion of apartheid in celebrate or, perhaps, transform it. much the same way as access to houses, luxuries, available health care and jobs has been dramatically Simply replacing whites with blacks or only to the monied distorted by apartheid. changing the political masters of cultural classes organisations are no guarantees that the As Government seeks to redress the means of artistic production and appreciation fundamental human right of an adequate will be made accessible to all. standard of living for all, it is also obliged - in terms of the Universal Declaration of Human Freedom of expression could become a right Rights - to create the conditions in which which all enjoy on paper, but which in reality everyone can access and enjoy the arts. is enjoyed only by those who have access to resources, live in urban areas, are pan of In our own Bill of Rights, freedom of artistic existing institutions, or conform to the new expression is guaranteed. Human rights and political status quo. Freedom of expression democracy are inextricably linked. Whether and democracy would be compromised in these rights are upheld, though, will depend favour of the rich and politically powerful. on the nature of our democracy. Democracy in the arts requires two further The Freedom Charter states that "the doors of principles - political independence of learning and culture shall be opened", publicly funded cultural institutions, and thereby spawning recent politically correct transparency in decision making, particularly phrases such as 'democratising the arts'. But regarding the dispensing of resources for i he what does this actually mean? arts - to ensure Article 19 of the Universal Declaration of Human Rights is not Democratising the For some, this simply means implementing compromised: arts should not affirmative action in existing institutions: mean that a ensuring that governing boards, management Everyone has the right to freedom of popularly elected and staff come to reflect more accurately the opinion and expression; this right government has racial and gender composition of our society. includes freedom to hold opinions the right to appoint without interference... its lackeys to For others, democratising the arts means that publicly funded a popularly elected Government has the right Mechanisms designed to control or institutions to appoint its lackeys to the governing boards manipulate freedom of artistic expression and senior management of existing publicly through economic or political censorship are funded institutions. not consistent with fundamental human rights and democracy. Appointments which were illegitimate because the government was illegitimate No matter how large a democratically elected become legitimate if executed by a government's majority, it does not have the democratic government. Democratisation in constitutional or moral right to compromise this case merely means changing the political or eliminate fundamental human rights, direction in which the governing boards of including the rights to freedom of expression cultural institutions need to genuflect. and to enjoy the aits.

Neither of these, in my opinion, provide a There is a significant difference between the good basis for democratising the arts and for old order, where government could change encouraging freedom of artistic expression. laws and the constitution to suit its To democratise the arts means making ideological and political interests at the accessible to all the skills, knowledge, expense of fundamental human rights, and infrastructure and resources to create, the present order where government is Democracy in the distribute and appreciate the arts. accountable to and bound by a Constitution arts requires which upholds and enshrines human rights. political This means that resources, skills and independence of infrastructure in the arts, and the arts publicly funded themselves, should be geographically ECONOMIC GROWTH cultural accessible (available close to where people institutions, and live), financially accessible (affordable) and transparency in culturally accessible (for example, in the The third major theme underpinning national decision making language of the users's choice). priorities is that of economic growth. Some would argue that it is all very well to link By making the tools of artistic production culture and development, and even to support and dissemination more accessible to all, access to the arts as a fundamental human communities and individuals throughout the right, but where is the money going to come country would be empowered to take control from to make this possible?

12 INDICATOR SA Vol 11 No 4 Spring 1994 27 vimcs m The perception is that the arts consume and theatre - were displayed. It was a The Government resources through large state subsidies and practical example of how the arts can bridge spends less that that they are a luxury which our country cultural diversity and celebrate unity of 0,3% of its budget cannot afford. In countering this perception, purpose and a common identity among on the arts l our important points need to be made: people from vastly different cultural backgrounds and aesthetic tastes. firstly, the Government spends less that 0,3% of its budget on the arts, including the In the past, culture was used as the basis of performing arts councils and 13 cultural apartheid. It was argued that because institutions which receive direct state support. different people had different cultures they In developed countries the arts industries could not be together without major conflict. account for 2% to 6% of the gross national product. The presidential inauguration proved that the very opposite is true: that having different If research was done into the contribution to the cultures is not a reason for separation but economy of the local music, film, publishing rather the basis for celebrating our rich and and performing arts industries in terms of jobs diverse cultural heritage and, in so doing, to created, taxes generated and spin-off industries contribute to a democratic culture and enhanced, I am convinced that it would reflect appreciation of difference. that the arts contribute significantly more to the economy than they consume. Being exposed to different forms often impacts on your own form, eventually Secondly, the economic potential of culture representing a synthesis of various cultural in our country as a means of attracting traditions and reflecting artistically the international tourism is huge but relatively pursuit and celebration of a new dispensation. untapped. Even more recent than the recent Johannesburg's Dance Umbrella has shown rise of eco-tourism is cultural tourism, where how dance has evolved into an exciting art The arts developing countries especially are form comprising a variety of styles gleaned contribute increasingly attracting international tourists from a range of cultural and dance traditions. significantly more who wish to see the craft, listen to the music, to the economy read the literature, watch the films and enjoy National events such as the National Festival than they consume the dance and theatre of the 'exotic other'. of the Arts and Dance Umbrella will become increasingly important not only in celebrating Thirdly, while there will always need to be our diversity but also in creating new forms state subsidies for the aits, we need to which reflect a country in the process of examine how these are allocated so that they transforming, and pursuing new meanings have a more catalytic effect. Currently, end and identities. The arts are crucial in building users consume large subsidies with little a multi-cultural society and in integrating and benefit beyond themselves and with much synthesising that which before has been used wastage. as a basis of separation.

Research shows that it costs 10 times less to In summary, rather than be in conflict with create a job in the arts than it does to create a reconstruction, development, human rights, job in light industry. Limited public resources democracy, economic growth and for the arts should be used more effectively to nation-building, the aits and culture are realise its full potential both to develop the fundamental and integral to the success of arts, and as a means of creating jobs. these areas of national priority.

Lastly, if government is committed to the cultural dimension of development and to PROPOSALS TO DEVELOP democracy and human rights, then surely it THE ARTS can spend at least 1% of its budget on the arts and culture to help achieve those To develop an exciting, vibrant artistic The arts are commitments. Alternatively, it should create practice and cultural life throughout the crucial in building tax incentives to encourage the private sector country, four crucial areas needs to be a multi-cultural and individuals to help achieve adequate addressed: educating and training society funding levels for the arts. practitioners in all the arts and creating informed, supportive audiences; developing an arts infrastructure; funding the arts, MULTI-CULTURALISM AND particularly by enabling artists to work NATION BUILDING full-time; and creating mechanisms to distribute the aits more widely. The theme at the inauguration of President Nelson Mandela was 'many cultures, one • Education nation'. To give concrete evidence to that -* All pupils should have arts education as theme, numerous art forms - dance, music part of the core curriculum for the first 10

INDICATOR SA Vol 11 No 4 Spring 1994 95 ®BVK!!,© P>fifiBCStf reiSKjOg Four crucial areas years of schooling. Such exposure will art disciplines, urban-rural divides and serve need to be identify talent and create future interested for a limited period to prevent power bases addressed: audiences; from being established. Artists and arts education, organisations should be able to apply to the developing an arts • All secondary school pupils should have councils for grants to enable them to work at least one aits subject as a matriculation full-time to create or distribute their art infrastructure, option; funding the arts • Distribution and distributing « At least one publicly funded tertiary In the short term, we need mechanisms to the arts more institution per discipline in each region distribute art, help generate it and build widely should offer courses of international audiences. Local, regional and national quality for practitioners in the visual arts, festivals and events within each art discipline theatre, dance, music, literature and film. would be a major means for building artistic These institutions should also train arts consciousness and developing a vibrant administrators, arts educators in each artistic practice. discipline and critics; The best work from local arts festivals, which » Community arts centres and existing could have training programmes linked to formal arts training institutions should them, could be selected to appear at regional offer accredited courses to those who and then national festivals. This would have not had the opportunity or who do generate higher standards as artists from not have the necessary academic around the country compete, would enable qualifications to enter such institutions, artists to learn from each other, generate but wish to be trained in the arts. work for artists, and create new audiences and potential markets. • Infrastructure The primary The primary mechanism for making the arts mechanism for accessible in future should be making the arts multi-disciplinary, multi-functional Conclusion accessible should community arts centres throughout the By making skills and knowledge in the arts be community arts country, for example one for every 200 000 accessible to everyone through educational centres to 400 000 people. Each centre should institutions, by providing access to throughout the comprise a museum to preserve local infrastructure through multi-functional arts country heritage, a library, one or two centres, by making resources available to multi-functional halls for performances and fund creativity, and through a strategy of movies, and gallery space. local, regional and national arts festivals, we could develop an exciting cultural life, of There should be rehearsal rooms for high quality, throughout the country. performing artists, studios for visual artists and a shop to sell their wares, and rooms for We may have the best arguments in support classes in creative writing, dance, theatre, of the arts and exciting proposals for how the music, visual art and film. arts should develop, but all of these would be worthless unless the arts community had Having access to such infrastructure will sufficient influence on decision-makers. To assist artists in producing work, will bring the achieve such influence requires effective arts closer to where people live, and will organisation. introduce the arts to people at a grassroots level from an early age, creating new markets The National Arts Coalition came into being and audiences and facilitating greater to lobby the interests of the arts and arts participation in and ownership of cultural practitioners. Thus far it has managed to institutions by local communities. make interventions into the RDP, regional The nature and arts policies and the new Ministry of Aits, • Funding Culture, Science and Technology. It has been quality of our Public funding to assist artists to create works able to do so because of organisational culture and the should be distributed through national and strength. arts will depend as regional arts councils. These councils should much on the arts would be statutory bodies receiving funding The nature and future quality of our culture community as on from the Government but not controlled by it. and the arts will depend at least as much on the new the arts community, the quality of its Government Council members should be people involved arguments and ideas, the practicality of its in the arts, selected through a publicly policy proposals and the sophistication of its transparent process. They should be organisation, as on South Africa's new representative in terms of languages, gender, Government. 3[?SS£i

®BWi&®i?«88KlV VEtlK©® 96 INDICATOR SA Vol 11 No 4 Spring 1994 SOUTH AFRICA

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