| European cows and global clamour against African poverty
Towards the end of January, we joined an important delegation of South African government, business and civil society leaders at the 2005 Davos, Switzerland, Annual Meeting of the World Economic Forum (WEF).
I believe that our national delegation would agree that what distinguished this year's WEF Annual Meeting was its concentrated and sustained focus on the challenge of global poverty. In this context, this year's Davos Meeting was doubly inspiring to us because, for the first time, it succeeded to place the challenge of Africa's renewal and development high on the global agenda.
In its 28 January 2005 edition, the important global newspaper, the 'International Herald Tribune' (IHT), carried a front page article under the headline "In Davos, spotlight turns to Africa: Assembly presses agenda of continent at 'its moment'". Its author, Alan Cowell, wrote:
"After decades languishing as the last item on the global agenda, seemingly helpless to stem its own decline, Africa is poised this year for what the rock-star Bono called 'its moment' - a time when the world will be pressed to provide the money and the will to reverse a continent's slide.
"To reinforce the point, Thursday at the World Economic Forum in (Davos), an American billionaire, a former American President, a British Prime Minister, two African Presidents and Bono himself took to the stage to drum home the point to an assembly of more than 2,000 of the world's rich and powerful people...
" 'The United States needs to move up the table' of aid donors, as listed by the proportion of their overall wealth that they contribute to development aid, Bill Gates, the Microsoft founder, said at a news conference. Gates, who has just announced a $750 million gift to help poor children gain access to vaccines, was speaking shortly before he, Bono and Prime Minister Tony Blair of Britain joined Presidents Thabo Mbeki of South Africa and Olusegun Obasanjo of Nigeria and the former US president Bill Clinton at a public session that ranked as one of the heavyweight events (at Davos)."
The well-known US economist, Professor Jeffrey Sachs, participated in another of these public sessions, this one seeking to answer the outstanding questions that relate to 'Funding the War against Poverty' and achieving the Millennium Development Goals (MDGs). Reflecting and setting the mood that prevailed at Davos, Professor Sachs said, "we want to follow through on what we say; people want to be part of the generation that eliminates extreme poverty."
One of the people present at this session was the actress, Sharon Stone. During the discussion, and determined "to follow through on what we say", she stood up and introduced herself. She then said: "This is my first year in Davos. It is new to me and moving to me and I feel like it might really amount to something. And I was particularly moved by President Mkapa [of Tanzania] and his urgent need. People are dying (from malaria) in his country, today. And that's not okay with me, today. So I'd like to offer my help and support, today. I'd like to offer US$ 10,000 to buy [anti-malarial mosquito protecting] bed nets. Would anyone else like to be on a team with me and help offer their support?"
The WEF reported, correctly, that, "a second member of the audience stood up and offered another US$ 50,000. Soon three more stood and joined the commitment. A dozen. Two dozen. Participant after participant took out business cards with figures scribbled on them, and passed them along the aisle to staff."
President Mkapa thanked all these generous contributors and said: "The problem is not that we don't support these funds and want to enlarge the (development) funds, whether a trade tax or a transport tax (as proposed by French President Jacques Chirac). But seeing how countries in the EU can't agree about a common agricultural policy (to remove agricultural subsidies), I find it difficult to think they will agree on a common (development) fund very soon. We already have a mechanism for fighting the war on poverty [in the Overseas Development Assistance target of 0.7% GDP]. So why can't we put our money where our mouth is?"
The WEF reported that "minutes later, dozens of participants rose to the occasion and, spontaneously, did exactly that."
In his IHT article, Alan Cowell said: "For as long as it has been in decline, of course, much of Africa has been the object of earnest debate and hand-wringing, even as other regions of the world once known for their poverty struggled to gain niches in the global economy. The themes of poverty and disease have changed little, except to worsen."
He then quoted what British Prime Minister Tony Blair had said in a plenary address at Davos. The Prime Minister said: "If what was happening in Africa happened in any other part of the world there would be such a scandal and clamour. Africa is the one continent that has been going back over the last 30 years."
Without exception, the South African delegation was greatly moved that at last the important global decision makers who gather at Davos every year were, for the first time at this Forum, paying this kind of attention to the welfare of the peoples of Africa.
In part, our response was informed by the fact that the Davos participants were addressing exactly the same global and African challenge of poverty and underdevelopment we have sought to confront within our own country during our First Decade of Liberation, responding to its national manifestation in our country. What they said also coincided precisely with our own determination as a country and people to do everything we can to contribute to our continent's renaissance.
Fortunately, our own movement, the ANC, has always understood its obligations to the masses of our people who were deliberately and systematically impoverished by colonialism and apartheid. The democratic victory of 1994 gave us the possibility to confront this legacy of domestic apartheid.
Davos 2005 communicated the message of hope that, at last, and certainly as this relates to Africa, the world progressive movement and people of goodwill, have understood their obligations to the African masses who continue to suffer as a result of the legacy of global apartheid.
It goes without saying that it will take a considerable period of time as well as enormous resources to eradicate this global legacy, in much the same way as it will take time and enormous resources for us to eradicate the legacy of domestic apartheid. The excellent news is that our domestic experience tells the positive story that given the will to act, as demanded by Ben Mkapa, Bono, Jeffrey Sachs and Sharon Stone, it is possible gradually to overcome the legacy of global apartheid in terms of the distribution of wealth and income.
The Bureau of Market Research (BMR) of the University of South Africa has just published an enlightening Report entitled "National Personal Income of South Africans by Population Group, Income Group, Life Stage and Life Plane 1960-2007." The Report was prepared and compiled by Professor Helgard de J van Wyk.
The BMR Report says: "In South Africa horizontal segmentation of personal and personal disposable income has been by population group only for many years. Although the boundaries between population groups in terms of expenditure patterns and other socioeconomic characteristics are becoming increasingly blurred, they still remain an important segmentation tool, not only for marketers, but also for government and sociologists."
The Report proceeds to cite a 2003 statement made by Professor JH Martins of the BMR that: "The classification by population group is based on economic and demographic characteristics, which should not be regarded as primarily colour-depicting characteristics but rather as characteristics distinguishing different expenditure patterns. For a long time to come, demographic as well as economic analyses will have need of this differentiation to facilitate planning by decision makers."
The simple point made by Professors Martins and van Wyk is that so deeply entrenched is the legacy of colonialism and apartheid in our country that "for a long time to come", to be of any analytical use and to reflect reality, our national income and expenditure patterns will have to be categorised according to our "population groups".
Some time ago, to the immense chagrin of some in our country, we made exactly the same point when we described our population as being divided into "two nations". Prime Minister Blair made the same point relating to the place of Africans in the world, when he said that had the tragedy of escalating African poverty similarly affected other areas of the world, there would have been much "scandal and clamour".
Quite correctly and rationally with regard to our development programmes during our First Decade of Democracy, we ignored those who are intent on forcing us to deny the "horizontal segmentation of personal and personal disposable income by population group" analysed by Professors Martins and van Wyk, and which they use as a critical analytical tool.
We did not take this position to "reracialise" our society, as our opponents constantly argue. We proceeded in this manner precisely because we would never have addressed the legacy of domestic apartheid if we pretended that it does not exist. Davos 2005 would not have made the effort to discuss what needs to be done to confront global apartheid if its eminent participants had pretended that it does not exist.
The January 2005 Media Release announcing the publication of the BMR Report says:
"In 2001, 4,1 million out of 11,2 million households in South Africa lived on an income of R9,600 and less per year. This decreased to 3,6 million households in 2004, even after taking the negative effect of price increases on spending into account. On the other hand, the number of households receiving a real income of R153,601 and more per annum rose from 721 000 in 1998 to more than 1,2 million in 2004.
"The number of white households in the lowest income group increased by 30% to 182,000 from 1998 to 2004, while African households in this category decreased by 16% to 3,1 million. The number of African households in the high-middle and high income groups increased by 368% to 440,000 between 1998 and 2004. White households in the same category increased by 16% to 642,000...
"Calculations per income group showed that, in 2003, the top 20% of households received almost 65% of the income, indicating the skewness of the distribution of income in South Africa. Further analysis showed that 89,8% of households in the lowest income group were African households in 2001. For the high income group, the percentages were 61,6% for Whites and 29,5% for Africans."
These figures tell the greatly encouraging and immensely challenging story that:
- even where we use only income as a measure of wellbeing, excluding "the social wage", we have succeeded to reduce the aggregate levels of poverty;
- there has been an expansion of "the middle class", with Africans recording the highest growth rate, resulting in the reduction of racial disparities within this "class";
- there has been a similar tendency towards equalisation of incomes between blacks and whites who belong to the lowest income group;
- nevertheless, the absolute inherited racial disparities persist, despite the relative reduction of these disparities, as reflected in the high income group figures showing that this group is 61,6% white and 29,5% african; and,
- the absolute "class" disparities also continue to persist, with the top 20% of households receiving almost 65% of the national income.
Professor van Wyk has given us information we need and must use, further to intensify our struggle to build the caring, egalitarian, non-racial, non-sexist, and prosperous society towards which we aspire. This information tells us what our "people's contract" must be about. It gives us the assurance that while our struggle must continue, victory is certain.
At Davos, German Chancellor Gerhard Schröder said it was now necessary to "help developing nations more than ever before...Promises to raise funding (for Africa and the developing countries) have been hot air and speculation so far. We want to go into implementation and we are ready to pay for it."
At Davos, French President Jacques Chirac said: "The divide between rich and poor has widened to a frightening degree. This is a situation fraught with danger. It is morally unacceptable. Development is both the greatest challenge and the most urgent issue of our time. It is a matter of ethics. For the open economic system and humanist civilisation that we share, it is also the best guarantee and the best investment in the future."
At Davos, our own Kumi Naidoo, Secretary-General and Chief Executive Officer, Civicus-World Alliance for Citizen Participation, said: "The EU subsidises every cow to the tune of US$3 a day, so that most of the world's people are worse off than European cows."
Mahfuz Anam, Editor and Publisher of 'The Daily Star' in Bangladesh, who served on the same panel as Kumi Naidoo, supported this, as well as what President Mkapa had said, by stating that, "Equitable globalisation is a question of market access for developing countries and ending subsidies in developed countries. Are market-based societies really practising at home what they preach to the world? Now that developing countries are in a position to compete, it seems the goal posts have been moved!"
In our country, as in the rest of the world, there is a continuing struggle to decide what belongs to the contemporary human agenda. The global mass media plays an important role in this regard. But we would urge that we pay particular attention to the messages communicated by such honest intellectuals as Professors Martins and van Wyk, regardless of the attention the media pays or does not pay to their work.
During Davos 2004, Eason Jordan, Chief News Executive, CNN News Group, USA, said news organisations face difficult decisions about which stories to cover. He said, "We don't do everything right. We make mistakes." He said that no matter what story a news organisation covers, its bias is reflected in its choice and in the language it uses. As such, he said he finds objectivity and impartiality to be outdated, tired terms.
At Davos, Martin Wolf, Associate Editor and Chief Economics Commentator 'Financial Times', United Kingdom, noted that "we live in an extraordinarily unequal world in which on the average, relative incomes between people who live in rich countries and poor countries are shockingly different".
Davos 2005 and Professor van Wyk have made the firm statement that we must address this shocking difference. This must continue to occupy the centre stage in the continuing national and international struggle of our movement as we begin our Second Decade of Liberation.
On 17 January this year, in Cape Town, the British Chancellor of the Exchequer, Gordon Brown, proposed bold steps to advance the African renewal project. This was at a meeting of the "Africa Commission" hosted by our Finance Minister, Trevor Manuel, which was attended by 17 Finance Ministers, AU representatives, members of the NEPAD Steering Committee, the African Development Bank and others. Gordon Brown said:
"When people say what we propose is too ambitious, unrealistic, a distant and utopian dream, let the Commission for Africa remind the doubters:
- they first dismissed civil rights (in the US) as the work of dreamers;
- they first wrote off the Marshall Plan as a distant utopia;
- they first ridiculed debt write off as economically illiterate and impossible;
- and let us also remember here in Cape Town they first said those who fought against apartheid here in South Africa were violating rights when we all know they were righting wrongs...
"And so let us tell the world about our shared vision of globalisation in 2015 (the target year for the accomplishment of the MDGs)...one moral universe where progress is not just one individual or even just one or two countries doing well, but all of us advancing together, and where by the strong helping the weak it makes us all stronger."
As a people, we must and will do everything we can to eradicate the domestic, African and global legacy of apartheid as quickly as possible, helping to create one moral universe.
It portends a new and inspiring dawn that the eminent citizens of the world who were at Davos 2005 seem to agree that they too want to be "part of the generation that eliminates extreme poverty" in Africa and the world.
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