Meeting the challenge of the second economy

At its Lekgotla in July, the Cabinet once more focused on the critically important issue of the struggle against poverty. In this context, it observed that our country is characterised by two parallel economies, the First and the Second. The First Economy is modern, produces the bulk of our country's wealth, and is integrated within the global economy.

The Second Economy (or the Marginalised Economy) is characterised by underdevelopment, contributes little to the GDP, contains a big percentage of our population, incorporates the poorest of our rural and urban poor, is structurally disconnected from both the First and the global economy, and is incapable of self-generated growth and development.

To respond to the challenge of this Second Economy, we have examined the system of "Structural Funds" instituted by the European Union (EU) in respect of its regional policy, which is based on financial solidarity of transferring a portion of the EU's budget to the less prosperous regions and social groups within the EU.

The EU programme is premised on the reality that "the market cannot be relied upon to meet the development needs of the 'less favoured regions' within the EU, guarantee the achievement of the centrally important objective of social cohesion, and provide the means for the implementation of 'strategies for catching up'".

In the same spirit, the Cabinet has resolved that the development of the Marginalised Economy requires the infusion of capital and other resources by the democratic state to ensure the integration of this economy within the developed sector.

The Cabinet's decisions will necessarily involve active partnership with provincial and local governments and other social partners. The key strategies to meet the growth and development challenges of the Second Economy, include:

• the Integrated and Sustainable Rural Development Programme (ISRDP);
• the Urban Renewal Programme (URP);
• the Expanded Public Works Programme;
• a major boost to infrastructure spending, with an emphasis on the underdeveloped regions and communities;
• further support to local government's preparation and implementation of Integrated Development Plans (IDPs);
• the development of SMMEs and cooperatives, in both urban and rural areas;
• black economic empowerment;
• special programmes for women's economic development ;
• the expansion of micro-credit to enable the poorest to engage in productive economic activity;
• the incorporation of the unemployed within the Skills Development Programme, especially as implemented by the Sector Education and Training Authorities (SETAs);
• the continued restructuring of our system of education so that it gives our youth the necessary skills to engage in economic activities of benefit to them;
• agrarian reform, including a Farmers Support Programme and forestry development in the interests of communities; and,
• the creation of the echelon of Community Development Workers to help build social cohesion in the Second Economy, and to help to develop strategies and forge links that can transform the Second Economy.

The Cabinet made the determination that the advances we have made with regard to the First Economy, during our first nine years of our liberation, have put us in a position to meet the objective fundamental to our strategic outlook, to reduce the numbers of those dependant on social grants, by enabling them to pull themselves out of poverty by engaging in gainful economic activity and exercising their right to human dignity.

Despite our resources limitations, we are pleased to say that the government has delivered services to our people in a way that has turned the tide against many centuries of colonialism and apartheid characterised by the ever-increasing impoverishment of the majority.

The March 2003 Labour Force Survey of Statistics SA showed that two million new jobs were created in the previous seven and a half years, bringing the total of those employed to 11.6 million. This represents an employment growth rate of over 2.5 percent a year.

However, as indicated in the Ten Year Review, the numbers of those joining the labour market has grown at a faster rate. Demographic changes, such as more women entering the labour market, have also intensified the need for our economy and society to create more jobs.

I commend to the National Council, the government's Towards a Ten Year Review. The Review frankly assesses how far we have come since we attained our freedom in 1994. It provides important indicators of what we need to do as we strive during our Second Decade of Liberation to advance our goal of pushing back the frontiers of poverty and expanding access to a better life for all.

One of the clear conclusions of The Review is that each and every one of us in the provinces, local government and traditional authorities have to continue to work together with national government as partners in order to discharge our mandate to our people to create a prosperous, healthy and vibrant multicultural society.

In the State of the Nation address in February, I promised that we would launch an Expanded Public Works Programme (EPWP) to promote economic growth and create sustainable development.

I am pleased to report that the Department of Public Works together with other Departments, including the Departments of Environment Affairs and Tourism, Agriculture, Education, Health, Social Development and Trade and Industry, provincial and local governments and civil society formations have come up with a comprehensive business plan, approved by Cabinet on 4 November 2003, which will now be implemented in phases.

The EPWP is a nation-wide programme that will draw significant numbers of the unemployed into productive employment, so that workers gain skills while they are gainfully employed, and increase their capacity to earn an income once they leave the programme. The EPWP is targeting one million unemployed people in the first five years.

The centre-piece of the EPWP is a large-scale programme of using labour-intensive methods to upgrade rural and municipal roads, municipal pipelines, storm water drains and paving as well as fencing of roads, community water supply and sanitation, maintenance of government buildings, housing, schools and clinics, rail and port infrastructure, electrification infrastructure, improving the environment, improving service delivery, and so on.

The success of the EPWP will depend on how well all our spheres of government work together as partners to achieve practical results.

The youth of our country are significant stakeholders in our reconstruction and development plans. A lot of energy has gone into infusing a youth development approach in the public delivery system though the results are still uneven. Through the National Youth Commission and the Umsobomvu Youth Fund it has been possible to provide guidance to departments and interact with senior managers to ensure that youth development is supported internally.

Youth Development must become an integral part of what we do in the provinces and municipalities. Youth development and participation must form part of our development of Integrated Development Plans.

In the coming months, we must scale the National Youth Service (NYS) upwards, from pilot service projects administered through these three partners into a coherent national effort involving key national and provincial departments.

Our macro-economic policies and micro-economic interventions have helped to place our public finances and the First Economy on a radically better footing than they were in 1994. These improvements have helped to generate the resources we need to address the challenge of the Second Economy. This also means that we must persist in our work to ensure the further growth and development and modernisation of the First Economy, including its capacity to absorb larger numbers of work-seekers.

This also relates to the important issue of black economic empowerment, which remains one of the priorities of our government, both to end the racial disparities in our economy and society and to address the challenge of poverty and underdevelopment. Government has also made significant sums of money available for this empowerment. The state corporations are also important partners in this regard.

The successful Growth and Development Summit held last June, served as a positive signal of the ability of South Africans to work together to meet our economic goals.

The government is also paying the closest attention to the proper functioning of the Presidential Working Groups, further to consolidate the people's contract for a better future. The Presidential Working Groups create the possibility for an on-going dialogue between government and representatives of civil society formations, NGOs, business and trade unions.

Since April 2001, the Presidency has engaged with the masses of our people across South Africa in the form of the iimbizo. This year, we have gone to the provinces of the North West and the Western Cape. We still have to visit KwaZulu Natal, the Northern Cape and Mpumalanga.

The iimbizo have given all of us a unique and personal insight into the lives of the masses of our people who have elected us into office. Our top priority is to ascertain what the actual needs of our people are; how efficient the delivery of services at all levels of government is, and to address problems; and whether governments' policies have had a positive and regenerative impact on our communities.

The Second Decade of Liberation will be decisive for our country because it will determine whether we succeed to meet the challenges posed by the existence of the Second Economy in our country. I am certain that we will meet our goals in this regard.

But equally, I am certain that we will not achieve this historic victory unless we join hands in a truly meaningful manner, in a real people's contract that unites the majority of our people in action to eradicate the legacy of colonialism and apartheid.

We must move forward together in unity to push back the frontiers of poverty, to expand access to a better life for all, to extricate millions of our people from the Second Economy which condemns them to poverty, underdevelopment, marginalisation and loss of human dignity.

This Letter is an abridged version of the Address of the President to the National Council of Provinces (NCOP) on 11 November 2003.

Ten Year Review IV

Fight against crime beginning to show results

South Africa's crime prevention system has undergone a radical transformation since 1994, effectively ending political violence, dealing with urban and right-wing terror and taking important steps to stabilise crime.

While crime remains a major challenge for the country, research published in government's discussion document, 'Towards a Ten Year Review', indicate levels of serious crime are continuing to stabilise or come down. "There is evidence that the government is beginning to make an impact on the crime situation," it says.

This progress takes place against the background of a criminal justice system before 1994 that was pre-occupied with defending the apartheid system. It was fragmented, lacked legitimacy, paid little attention to the causes of crime, and was ill-equipped to respond to the significant growth of organised crime in the country.

The transformation of the security and criminal justice functions was therefore critical to ensuring the success of the process of transition, reducing political violence, bringing down levels of crime and securing democracy.

The National Crime Combating Strategy has begun to make an impact. Except for robbery and malicious damage to property, most of the 20 categories of serious crime have recently either stabilised or are decreasing compared to the figures since 1994. Rates of murder, for example, have decreased by almost a third.

Aggravated robbery, however, has persistently increased since 1996, while other types of robbery have gone up since 1994. It should be noted that almost 50 percent of robberies now relate to cell-phone theft or loss. High-profile robberies, like vehicle hijacking and bank-related heists, have gone down 33 and 52 percent respectively since data was first recorded in 1996. Over 200 criminal syndicates have been neutralised out of 300 identified and investigated.

The report notes that an analysis of all the stabilising trends indicates that significant decreases were in most cases actually achieved over the last two years: "Some cases of stabilisation can easily turn to decreases if a little more effort is spent".

Progress has also been made in other areas of the criminal justice system. Programmes of the Integrated Justice System have resulted in faster finalisation of cases, an improvement in the quality of dockets, and an increase in conviction rates from about 78 percent in 1999 to 81 percent in 2002.

Community policing has made policing more effective. The Community Police Forums (CPFs) have improved the relationship and trust between the police and communities. Research has found that the relationship with Business Against Crime has led to an 80 percent decline in street crime in targeted city centres and has increased the response time to crime scenes by the police.

A number of measures have been put in place to regulate the ownership of legal firearms and reduce the number of illegal firearms. As a result of these efforts, over 80,000 firearms have been destroyed by the justice, crime prevention and security cluster.

Correction Services has had to deal with severe overcrowding in prisons and the lack of an effective programme of rehabilitation. There is a repeat offender rate of as much as 60 percent, which makes the need for proper rehabilitation all the more urgent. Overcrowding is being relieved by the construction of new prisons, the introduction of alternative sentences, the promotion of correctional supervision and an awaiting trial prisoner project. Improved security in prisons has reduced the number of escapes from 1,244 in 1996 to 325 in 2002.

One of the greatest challenges has been, and remains, the high level of rape and other sexual assault crimes. Rape levels increased by about 10 percent after 1994, then remained stable until returning to 1994 levels in the last year. Because this type of crime is often not reported, it is difficult to establish whether these figures reflect actual trends or whether they reflect levels of reporting based on levels of confidence in the justice system.

Government has nevertheless implemented a number of measures to tackle this crime. These include the revision of the definition of the crime of rape; the establishment of Sexual Offences Courts throughout the country; empowering prosecutors, police, magistrates and doctors with specialised skills; the establishment of Specialised Family Violence, Child Abuse and Sexual Assault Units in the South African Police Service (SAPS); and the implementation of minimum sentences for those convicted of these crimes.

Much more still needs to be done however to ensure that communities are safe and justice is effective. This includes the further implementation of parts of the National Crime Prevention Strategy (NCPS) which address the causes of crime, and continuing to improve the capacity of the police and courts.

More Information:

• Towards a Ten Year Review, October 2003

African solidarity

Veteran nurses honoured

The Department of Health recently held a night of awards to honour, among others, South African nurses who in the early 1960s volunteered to work in the newly-independent Tanzania.

The Tanganyika African National Union (TANU), led by Julius Kambarange Mwalimu Nyerere, asked the ANC to invite South African nurses to take up the cause of African solidarity and work in the newly-independent Republic of Tanganyika (now known as Tanzania). Twenty nurses answered this call, among them some of South Africa's most talented practitioners.

Going down memory lane and recapturing the spirit of volunteerism that imbued these nurses, a member of this pioneering group wrote:

"The year is 1961. The East African colony of Tanganyika is about to become an independent state. The British colonial authorities are decamping fast. Among those making their way back to the heart of the empire are much-needed nurses. In South Africa, the African National Congress, despite its recent banning, gets a call for help from TANU. Could a few nurses be recruited to help out the soon to be 'Republic of Tanganyika'?

"In the face of relentless government oppression, the ANC swings into action. Albertina Sisulu recruits volunteers from Johannesburg. Mduduzi John Mbele and John Makhathini organise in Durban. Govan Mbeki enrols volunteers from around Port Elizabeth.

"Within a few weeks, 20 young nurses are ready to rally to the call of Africa's newest nation. In the Eastern Cape, five nurses leave Port Elizabeth by train. They arrive at Park Station [in Johannesburg] the following day. They are met by the young Thabo Mbeki. They walk from the station to Macosa House.

"From there they pile into Duma Nokwe's car and head for Ahmed Kathrada's house. The volunteers from Johannesburg arrive at 9.30pm. Inexplicably, the Durban group is nowhere to be seen.

"It is too dangerous to wait. The security police are vigilant, suspicious, omnipresent. The groups from Johannesburg and Port Elizabeth make their way onto a bus. They are accompanied by Tom Nkobi and a young white man posing as a Pastor. If stopped, their 'cover story' will be that they are on their way to a Church Congress in what was then the protectorate of Bechuanaland.

"They are stopped at a roadblock in Zeerust. Luck is on their side: it has been a long, hot day, and the police have clearly been drinking. The travellers are waved through. By dawn, they reach the border.

"Alarmingly, their 'pick up', a Mr Fish, does not appear. The bus driver is edgy. He tries to hide the bus behind a bush. Fortunately, Ntate Chomme comes to their rescue, allowing them to hide at his house. To their great relief, the missing Durban group finally catches up with the party.

"Together for the first time, the intrepid volunteers cross the border into Lobatse. There they hide, enduring some harassment from the colonial police, until the word comes: they are to move to Dar es Salaam, via Francistown.

"In Francistown, they wait patiently for the plane to take them to Dar es Salaam. It arrives, carrying the Chief Nursing Officer of Tanganyika, and JJ Radebe, the ANC representative. The plane takes off. It refuels at Salisbury and Mbeya. Finally it touches down in Dar.

"The reception at the airport is spectacular. Present to meet them are OR Tambo, Crower Radebe, the Minister of Health, and many in the South African exile community.

"The 20 nurses begin settling into the Tanzanian capital. But they have not come as holidaymakers. They have come to serve. By January 1962, they are deployed to hospitals in Dar es Salaam, Arusha, Moshi, Tanga, Mwanza, Bukoba and Kibingoto.

"Behind them lie families, careers and the familiarities of home. But in a sense they have come home: home to an Africa that is free to determine its own future, free to nurse its own way to a better tomorrow."

Today, as the land of their birth prepares to celebrate the first decade of its own freedom, the selflessness, the sense of duty of these young volunteers, is not forgotten. We salute all the nurses who received the Veteran Nursing Award. They are: Victoria Magodla-Harling, Hilda Fongqo, Edith Ncwana-Madenge, Celia Khuzwayo, Mary-Jane Socenywa, Mary Mwandla, Tana Msimang, Edith Tunyiswa, Edna Miya, Neo Raditladi, Mmoni Segatlhe, Koleka Tunyiswa-Shabaan, Sinnah Jali, Ncinci Nzimande and Nosipo Molomo.

Like the twenty nurses who went to Tanzania, we have taken a bold initiative and declared this century an African century. This is a conscious effort by us to chart and determine Africa's destiny. Emboldened by the victories of the 20 volunteer nurses and the struggles of all the other activists that came before us, we are confident that our dream will be realised.

Another lesson imparted by this selfless gesture is that there is enough reward in serving other people. It is this philosophy that guides us as we pursue the dream of an Africa free of diseases, poverty and inequity. The contribution of these 20 nurses to the continent's struggle for democracy and better health care is a forerunner to the present day movement for a New Partnership for African Development (NEPAD).

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