| Open Letter
Dear Sampie,
Given how busy everybody is, we have not met
for a long time. This is not a good thing, given our very fruitful and
important exchanges in the years leading to the democratic transition.
I am not certain that what happened then has either been properly evaluated,
or communicated to our people at large.
As you recall, we had extensive discussions during our
confidential meetings in the UK about the process of transformation politically
and economically in South Africa.
One of the things I remember distinctly was your critique
of our economic policies. As I remember it, you insisted that these were
too singularly focused on redistribution, to the exclusion of the central
objective of growth.
We had no ideological or political opposition to this
objective. I would like to believe that you saw this reflected in policy
statements of the ANC.
I also remember the stories you told us of some of the
work you and others did to build the system of apartheid, as intellectual
members of the Broederbond.
I mention these things because I was somewhat surprised
to hear that you intended to publish a book which, allegedly, would attack
the ANC and our government on the basis that we have betrayed the poor
of our country, having sold out to big capital and the IMF.
Given that you are eminently aware, as we discussed
in our "secret" meetings, of the apartheid legacy of mass poverty,
gross economic inequalities, an inefficient and uncompetitive economy
in very poor shape, and an equally poor macro-economy that we inherited,
I am certain that you would know that it would take time to eradicate
this legacy. Eight years are certainly not enough to achieve this result.
Accordingly I would imagine that you would not find
it remarkable that our country continues to experience serious levels
of poverty. It would however be remarkable that you would blame this poverty
on the present government, on the basis that the dirt accumulated during
three hundred years can be swept away in eight.
As an economist you would also be aware of what we have
been doing to use a significant part of the public revenues to raise the
living standards of the poor. Even as we worked to reduce the budget deficit,
we made certain that we do not decrease our social expenditures.
Consistent with what you raised with us even before
1990, about the importance of economic growth, we have sought to attend
to this matter. The performance of our economy during the current global
slowdown indicates that we are succeeding to inject growth capacity in
the economy.
Even the report of the Bank of New York - The ADR Investor
issue of November 2002, states that the BNY South Africa ADR Index is
up 53.7% (through October 11), compared to declines of 27.0% for the BNY
Composite ADR Index and 34.7% for the BNY Emerging Markets ADR Index.
You are, of course, aware that the bulk of capital in
our country is privately owned. Obviously, it is important that this pool
of capital is mobilised for investment in our economy. Without this there
will be no growth. Most certainly, we have tried to encourage such investment,
including investment by foreign owners of capital.
I do not know whether this is what you mean when you
accuse us of having sold out to the capitalists. When we oppose retrenchment
we do so on the basis of a demand that these capitalists should at least
maintain both their capital stocks and the labour component required to
use these stocks and labour power to produce new value.
Even the correct demand to reduce the levels of unemployment
in our country is, inherently, also a demand for increased investments
in our economy. This means that we must encourage the owners of capital
to invest. Does this constitute a sell out to the capitalists?
You also know that unemployment in our country is intimately
linked to the problem of the low skills level among millions of our working
people. Again, perhaps more than most of us, you will be aware that this
is a result of deliberate policies pursued during the apartheid years
to keep especially the African majority unskilled.
At the same time, you will be familiar with the steps
we have taken, to change this situation within the context of an integrated
human resource development programme. This includes the provision of funds
to ensure that we have the means to change the skills profile. Without
this, we will never be able to solve the problem of unemployment and poverty.
To address the racial and gender skills imbalances,
we have indeed tried to get more black people and women better qualified.
We do not and will not apologise for this.
Naturally, the result of this is that these qualified
South Africans will earn more than the unqualified. As we succeed to get
more black people pulled out of the ranks of the unskilled, the larger
will be the pool of black people who belong to the middle class.
I do not understand why this should attract criticism.
It may be that the suggestion is that the black skilled and professional
should get earnings that are as close as possible to those of the black
unskilled.
Interestingly, while some are fond of remarking about
a growing income gap within the African section of our population, there
is a deafening silence about the persisting gap between those that benefited
from the apartheid system and the vast majority of our people. This suggests
that it is natural for some to be well off, while, apparently, there is
something wrong about African people escaping the clutches of poverty.
I am certain that a study of the history of the upliftment
of the Afrikaner people, starting with the effort to address "the
poor white problem", would demonstrate that at no point was there
an effort to equalise incomes among the various sections of the Afrikaner
people.
It is not possible that a Professor at the University
of Stellenbosch would have been required to earn the same wage as an unskilled
Afrikaner working in the Suid Afrikaanse Spoorweë en Hawens, or Spoornet.
It is strange that this is required of the African people.
It is difficult to understand the factual basis of your
attack. It may however be that this derives from a passionate opposition
to neo-liberalism. I say this because you have described and condemned
our policies as being neo-liberal.
This comes across to me as calling a dog a bad name
and hanging it, regardless of the behaviour of the poor dog. Again this
is because it is impossible to demonstrate with facts that our policies
are neo-liberal.
I am sure that you do not need me to educate you about
the basic tenets of neo-liberalism. As you are aware, one of these is
the promotion of the concept of "laissez-faire", aka "the
free market".
According to this, it is argued that the economy should
be allowed to develop "freely", without any intervention by
the state. This "withering of the state" in a capitalist society,
is propagated as the very expression of the liberal principle of the freedom
of the individual, who, it is asserted, is as free as he or she is liberated
from state intervention.
These individuals include the owners of capital. Accordingly,
within the liberal/neo-liberal paradigm, the first and most important
right of these individuals is to own property. The neo-liberals therefore
preach about individual property rights as part of a theology.
The second important matter is that this right must
be sanctified into law. The doctrine and practice of the rule of law is
then most stridently proclaimed when it is thought that these property
rights are being undermined.
Thirdly, the law must prescribe that the state has no
right whatsoever to reduce or temper with these sacred property rights.
Necessarily, therefore, the owners of productive property must have unlimited
rights to use their property as they wish, with no interference from anybody.
These are the philosophical bases that inform the ideological,
as opposed to the pragmatic, pursuit of such objectives as privatisation,
deregulation and liberalisation, once again seen as sacred and inviolable
principles.
I have no doubt that try as you might, you would not
be able to prove that the ANC and our government espouse any of these
neo-liberal principles or have engaged in any activities driven by this
ideology. Nor will you be able to prove your assertion that the ANC was
once socialist, a position you claim we have now abandoned.
The ANC has always been a national liberation movement
committed to fundamental transformation of our society. Socialism was
and is the ideology and goal of the Communist Party.
Ordinary South Africans, of all colours and classes,
understand and accept that we could never successfully address our burdensome
inheritance, which continues to divide our people along racial lines,
without the collective national intervention required of the democratic
state.
What puzzles me is why, and on what basis, you make
the allegation that we are following neo-liberal policies. This is particularly
so given what I fondly recall of you, when we interacted with you and
others of our people in your delegation, to talk about the future of our
country.
At that time, we did not seek to score little victories
over one another. What we aimed at was a common victory over apartheid,
in the interests of all our people. We understood that to get this result,
we had to be as objective as possible, frank and truthful.
It is difficult to see these characteristics in what
you have been saying about the ANC and our government. Basing myself on
the past, I would have presumed that once more you would seek us out to
express your concerns, if you thought we had abandoned the majority to
poverty, whether intentionally or not. Given the legacy of what we have
inherited, we must bear in mind the enormous challenges we face to transform
our society. No country has in a short space of eight years been able
to accomplish what our government has accomplished.
I presumed you would do this in keeping with your earlier
determination to change our country for the better.
But, of course, it may be that the fact of our democracy
has convinced you that this change in our country determines that you
should seek to bring about the realisation of your objective of the defence
of the poor by launching a media struggle against those you consider to
be the enemies of the poor.
It may also be that the objective to fight and defeat
the process of transformation at all costs has, for whatever reason, become
your principal objective. If this is the case, then your actions would,
at least, be understandable.
This would be sad and puzzling, given what you did to
break with your past and place yourself among the architects of the new
South Africa that would belong to all who live in it, black and white.
As it always does, time will tell where the truth lies.
With regard to those who define themselves as progressive and continue
to oppose the transformation agenda of the government, I pose the vitally
important question - whose interests do they serve!
Yours sincerely,
Aziz Pahad
[Aziz Pahad is a member of the ANC National Executive Committee.] |