Extending the frontiers of prosperity

Earlier this week, the newspaper "The Citizen" carried an article under the heading "Black standard of living rising". The article reported on a study on household expenditure patterns carried out by Professor Johan Marais of the Bureau of Market Research (BMR) of the University of South Africa (UNISA).

It quoted the study as saying: "This shift in the expenditure pattern (showing a decline in spending on necessities and more money available for luxury products and services) indicates that a section of the black population has become more affluent during recent years and that their expenditure patterns are tending more towards those of middle and higher income groups."

Nobody familiar with the work we have been doing during the last eight years to implement our policies will be surprised at the outcome reported by the BMR. These policies have focused on the provision of a better life for all.

Necessarily, this has meant that we have to measure our progress by the advances we make with regard to raising the standards of living of the black majority. Because he understands this national imperative, Professor Marais conducted the study reported by "The Citizen". The study makes the simple and direct statement that our policies are producing positive results.

This success has been realised in a relatively short period of time. It has also been achieved in a manner that is consistent with the further growth and development of our economy. It has therefore coincided with a process according to which we have developed our economy so that it is better able to meet the needs of all our people. It is only on this basis that we will be able to meet our goal of a better life for all.

Correctly, the BMR refers to "a section of the black population (that) has become more affluent during recent years". Naturally, this raises the question - what about other sections of the black population?

Simple familiarity both with the realities in our country, and the regularities of social development, tells us that there will necessarily be other sections of the black population whose standard of living cannot be measured according to the term "more affluent". In this instance, we would have to speak more simply of breaking out of the grip of poverty, and progressing further upwards, away from the poverty datum line.

A study of these "other sections of the black population" would also show that we are making advances in this area as well, resulting in improvements in the quality of life of much larger numbers of people than those referred to in the BMR report we have cited. We will have occasion, in a future Letter, to reflect on this matter in some detail.

Of course, this does not refer to those among the black population whose expenditure patterns "are tending more towards those of middle and higher income groups." It concerns the ordinary working people of our country, many of whom have relatively low levels of general education and marketable skills.

There is absolutely no doubt that the standard of living of this majority has also improved. This will be clear to anybody who is familiar with the initiatives our government has taken to change the lives of the working people of our country for the better. This is to say nothing about new opportunities generated by our growing and modernising economy, which we will discuss in later issues of ANC TODAY.

The government initiatives to which we refer include free health care, the school feeding scheme, higher social grants, including pensions, provision of houses without charge, free basic services, the land redistribution programme, the provision of goods and services such as water, electricity, telephones, allocation of funds for poverty and indigent relief, support for small business, and so on. All of these have had the necessary impact in terms of improving the standard of living of the ordinary people of our country.

The informal sector of our economy is out of sight of many statisticians and public commentators. Accordingly, many among these discount this area of economic activity. They work on the assumption that those involved in this sector should be counted among those outside measurable economic activity, simply because they do not operate within the ambit of what is described as "the formal economy". Yet, as is true of many developing countries, the informal sector is an important part of the economy. In reality it is in this sector that we find the greater majority of small enterprises.

To illustrate the importance of this sector, again we will rely on work done by UNISA's BMR. This refers to two particular reports dealing with expenditure patterns in Gauteng (2000) and the Cape Peninsular (2001). These are the "Expenditure of Households in Gauteng according to Outlet" compiled by Professor Johan Martins. The second is the "Expenditure of Households in the Cape Peninsula according to Outlet" compiled by the same Professor Martins.

The Gauteng reports states that with regard household expenditure amounting to R202,7 billion:

• R41,6 billion was spent at supermarkets, hypermarkets and chain stores;
• R2,6 billion was spent with hawkers, street and flea markets;
• R1,8 billion was spent in spaza shops; and,
• R1,2 billion was spent in shebeens.

Africans in Gauteng made 18,9% of their total cash purchases of products normally sold by the retail sector at informal enterprises. The figures for Coloureds, Indians and Whites, respectively, were 13,5%, 10,5% and 3,2%.

Total household expenditure in the Cape Peninsula amounted to R54,1 billion.
Of this:

• R12 billion went to supermarkets, hypermarkets and chain stores;
• R1,2 billion went to hawkers, street and flea markets;
• R812 million was spent in spaza shops; and,
• R162 million was spent in shebeens.

Africans in the Cape Peninsula made 27,9% of their total cash purchases of products normally sold by the retail sector at informal enterprises. The figures for Coloureds and Whites, respectively, were 17,6% and 4,4%.

The figures tell the story that our country has an important informal sector, which thrives because significant numbers of black people have some money to spend. This means that in terms of both income and employment, we have considerable numbers of people who depend on the informal sector.

We mention this, and cite the figures above, to make the point that there are various activities taking place in our society which combine to contribute to the continuously improving standard of living among the ordinary people of our country. This goes beyond the group mentioned in the first BMR study we cited, who are progressing towards a situation of relative affluence.

At the base of everything we have said is the critically important fact that during the last eight years, we have succeeded in ensuring that our economy grows, develops and acquires the capacity to grow and develop even further. It is true that our rate of growth has not reached the levels that we seek to achieve.

One measure that is used to determine the necessary rate of growth is the important matter of the reduction of the level of unemployment in our country. At the least, our growth rate should result in more people entering the ranks of the employed to an extent that exceeds new entrants into the labour market, such as the young people currently going through the Matriculation examinations.

Our Statistician General, Pali Lehohla, wrote an article that appeared during the week in the newspaper "Business Report", discussing this matter. Among other things, he said: "The results of the recently released February 2002 survey suggest that South Africa's official unemployment rate remained relatively constant over the six months from September 2001 (29.5 per cent) and February (29.4 per cent), but the number of employed people increased from 10.6 million in September 2001 to 11.4 million in February this year."

This suggests that we have begun to recover from a protracted period of net job losses in the formal sector of the economy, bearing in mind the uncertainties that persist about the accuracy of our employment statistics. This matter, the reduction of the level of unemployment, is central to our continuing struggle both to ensure higher rates of economic growth and to meet our objective of ensuring a better life for all. We must therefore understand the full import of the remarks of the Statistician General that we have just quoted.

In his article, Mr Lehohla makes another important observation. He writes that: "Particularly interesting is the fact that there is no clear relationship between the level of education and unemployment. Of the 4.7 million unemployed under the official definition in South Africa in February 2002, 1.2 million had completed Standard 10/Grade 12 and 53 000 had university degrees."

What this indicates is that what our economy and society require are people with skills that are specific to the economic and social tasks we must carry out, further to develop and advance our country. The matter of the acquisition of appropriate skills by all our people, including those who will secure Matriculation Certificates, therefore stands at the centre of what we have to do to reduce unemployment and push back the frontiers of poverty.

Beyond this, we need new, large and increasing investments in our economy. We must build an economy based on modern technology, that is properly managed, that has the necessary skilled people, and which produces goods and services that can compete successfully with goods and services produced by other economies. To achieve these goals, we need and have to work with the business sector. We will do this to help to extricate the masses of our people out of conditions of poverty and underdevelopment.

Over the last weekend and earlier this week, our government took part in two important meetings with international and domestic business leaders. The first of these was the meeting of the Presidential Advisory International Investment Council. The second was the meeting of the Presidential Big Business Working Group.

The government pays close attention to these meetings because of the critical importance of the business sector to the common national effort to build South Africa as a stable and prosperous non-racial and non-sexist democracy.

The government is also fully conscious of the role that business is playing and must continue to play in the effort to achieve the central objectives of the renewal of Africa, as visualised in the Constitutive Act of the African Union and the decisions of the AU as well as the New Partnership for Africa' s Development (NEPAD).

The domestic and international private sector is the principal source of the investment our country needs to achieve the necessary economic growth and development. The economic enterprises produced by this investment are the institutions that must and will create the jobs we need. The people working in these establishments must produce the goods and services that must out-compete the equivalent goods and services originating from other economies. All this constitutes the success formula we are, and have been working at, during the last eight years.

At the two business meetings we have mentioned, our government reached the same agreement with both the domestic and international business leaders. At both meetings it was agreed that government and business must work together to build our economy. Both meetings agreed on practical joint-action programmes covering many elements of our economy and society.

In this regard, they mirrored the outcome of last month's domestic and international Presidential Council meetings on information and communication technologies (ICT) and the information society.

The business people at all four meetings proceed firmly from the position that with regard to South Africa, they, ourselves and all humanity are dealing with an all-round success story. Consistent with the objectives that all business must necessarily pursue, but also sensitive to what we have to do to achieve the transformation of our country and continent, the business people made a commitment to work with our government, further to enhance and enrich the success story born out of the united efforts of all our people, black and white.

Our government made the same undertaking at all four meetings, responding to the business people as social partners. The government takes the same attitude towards its other social partners - labour and civil society.

The series of meetings held in September and October between our government and South African and international business leaders has presented our government, business community and country with the challenge to respond to an exciting common programme of action to accelerate our advance to the creation of the society reflected in our national Constitution.

Central to that vision is the extension of the frontiers of prosperity, to encompass ever more of the people beyond those discussed in "The Citizen" report to which we referred at the beginning of this Letter. This week's meetings, as well as the gatherings last month, have made the clarion call that, as social partners, we can and must act together to build South Africa into a winning nation.

Consistent with our political traditions as a movement, with a clear understanding of the complex and historic tasks we face, we will work to strengthen our cooperation with the business community, both local and domestic, and our other social partners, to rebuild our country and bring about the renaissance of Africa. The imperative that we succeed in our objective of building a better life for all demands that we continue to deepen this partnership.

ANC Leadership

Nominations open for National Executive Committee

The process of electing the new ANC National Executive Committee has begun with nomination forms being circulated to branches of the ANC and ANC Women's League and Youth League.

The election of the ANC's six national officials and 60-member national executive will take place at the organisation's 51st National Conference, being held at the University of Stellenbosch in December.

The process is being overseen by an 11-person Electoral Commission chaired by former NEC member Barbara Masekela, with ANC stalwart Raymond Mhlaba as deputy chairperson. Other members of the commission are Brian Bunting, Dr Essop Jassat, Josiah Jele, Henry Makgothi, Yolisa Modise, Bishop Malusi Mpumlwana, Reg September, Gertrude Shope and Adelaide Tambo.

Each of the ANC's 2,000-odd branches will be holding general meetings in the next few weeks to compile nominations for the NEC. These nominations will be consolidated in each of the ANC's 53 regions at special Regional General Councils, at which all branches in the region are represented. Each province will then hold a Provincial General Council for branches to finalise a single set of nominations for the six national officials' positions and the 60 additional members.

These nominations will be forwarded to the Electoral Commission by 15 November.

For the first time, the ANC Women's League and Youth League will be submitting nominations for the ANC national executive committee. The 50th National Conference in Mafikeng in 1997 mandated the NEC to make a recommendation on the right of the Leagues to nominate. At its meeting of 27 September the NEC agreed to sponsor a constitutional amendment at National Conference which would enable the leagues to nominate for the NEC.

The Leagues will follow the same democratic process as the ANC provinces, through their branch, regional and provincial structures. The respective league NECs will receive the nominations from the league's provincial structures and compile consolidated nominations lists. These will have the same status as the provincial nominations.

In discussing their nominations, branches will be guided by, among other things, a discussion document published in mid-2001 entitled: 'Through the Eye of the Needle'. The document, which has been extensively discussed in branches and regional and provincial conferences, emphasises that the leadership collectives of the movement, at all levels, should satisfy the character of the ANC - a revolutionary democratic movement; a non-racial and non-sexist movement; a broad national democratic movement; a mass movement and a leader of the democratic and progressive forces.

It says that an ANC leader should, among other things, understand ANC policy and be able to apply it under all conditions, which should include an understanding of the country and the world we live in; of the balance of forces; and of how to continually change the balance of forces in favour of the motive forces of change. An ANC leader should also constantly seek to improve their capacity to serve the people, win the confidence of the people in their day-to-day work, be accessible and flexible, and lead by example.

The leadership of the ANC should be above reproach in their political and social conduct, not be corrupt and actively fight against corruption. Leaders should seek to influence and be influenced by others in the collective and should be individuals that have the conviction to state their views boldly and openly within constitutional structures of the movement.

Branches have also been asked to look at a document published before the Mafikeng Conference, on 'Challenges of leadership in the current phase'.

It said that, in electing leadership, the National Conference would need to ensure an NEC that reflects the main areas of ANC work, which include governance and full-time mass work. It would need to ensure that there are sufficient full-time NEC members in the ANC, as well as leaders from the working class and other sectors of society not deployed in government.

It said members should deliberately identify women who are capable of assuming leadership position, or who have the potential to do so. And, in nominating leaders in general, the question of their commitment to gender equality should be put on the agenda. It also called on conference delegates to identify young women and men whose experience in student, youth and other structures would be valuable to the ANC's national leadership. "This is important not only for purposes of the unique contribution the youth can and should make in the NEC, but because we should actively start building the leadership of the future in actual practice today," it said.

"It is also critical that Conference addresses the question of the track record required for individuals, to be elected into the NEC, to help ensure that people demonstrate a consistent track record in ANC work before serious responsibilities are thrust on them."

Following the November deadline, the Electoral Commission will compile a consolidated list of all nominations received from the provinces and the leagues. This will be distributed to structures and will be tabled at Conference.

More Information:

• 'Through the Eye of the Needle', Umrabulo 11, June-July 2001
• 'Challenges of leadership in the current phase', July 1997

SACP publications

Umsebenzi goes online

The launch this week of Umsebenzi Online, the South African Communist Party' s new exclusively-electronic publication, is a welcome development in the ongoing effort to foster meaningful progressive debate in South Africa.

Published on the first and third Wednesday of every month, Umsebenzi Online aims to analyse current topical issues in South Africa, the continent and globally, from the standpoint and perspectives of South African communists. It will not replace the SACP's print publication, Umsebenzi, which will continue to be produced on a monthly basis.

Announcing the launch of the online publication, the SACP said it will contribute to the discussion and space for debate which has been created by ANC Today and COSATU Weekly.

According to SACP General Secretary Blade Nzimande, Umsebenzi Online is aimed at SACP activists who are in government, parliament, trade unions and civil society formations. "Many of them have been asking the Party to provide direction on key issues of the day and space for debate. We have also received similar enquiries from international allies and observers," he said.

"We will also use Umsebenzi Online to communicate with the media and the public on our positions and analysis of the fluid political and economic situation in our country," Nzimande said.

Yunus Carrim, an ANC Member of Parliament and SACP Politburo member, said Umsebenzi Online would provide an internal SACP forum "to raise and debate issues facing us in our daily work in parliament".

The SACP said that in a South Africa ideologically suffocated by bourgeois ideas, it hoped this would be an important addition to the growing list of progressive and left on-line publications. "It will be unashamedly and unapologetically communist and seek to provide on-going and timely analysis of topical political developments and working class struggles in our country and in the world," the party said.

The first edition of Umsebenzi Online includes an analysis of the debate on the restructuring of state assets following COSATU's general strike, a critique of the public listing of Telkom, a report on events in Palestine, and the opposition of world Communists to a US attack on Iraq.

More Information:

• Umsebenzi Online

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