ANC NATIONAL POLICY CONFERENCE DRAFT RESOLUTION

ON ECONOMIC TRANSFORMATION

Our Policy Framework

1. The ANC's 50th National Conference in Mafikeng in 1997 passed a comprehensive resolution on economic transformation, which was subsequently endorsed by the National General Council in Port Elizabeth in 2000. This National Policy Conference reaffirms the economics resolution taken at Mafikeng and proposes additions and refinements in various areas.
2. The ANC's vision has always been one of a prosperous, equitable, stable and democratic society. In the economy, our vision has been one of decent work and living standards for all in the context of qualitatively improved equality in ownership, skills and access to opportunities.
3. Achieving this vision requires

3.1. substantial growth in small and micro enterprise, based in large part on land reform as well as improved access to finance, infrastructure and marketing;

3.2. the diversification of the economy to enhance local value added both to meet the basic needs of all our people and to increase export revenues;

3.3. integration into the global economy in ways that create jobs and provide opportunities especially for black people, women and the poor;

3.4. development of the full productive potential of our economy

3.5. broad-based skills development; and

3.6. macro-economic stability at a level that supports economic growth and development.

4. It is imperative that we mobilise the ANC's core constituencies - the poor, workers and black business - around our economic strategies.
5. When the ANC took power, we inherited an economy shaped by colonial dispossession, and apartheid which resulted in huge inequalities and increasing poverty, rising unemployment and unsustainable government debt.

Despite this legacy, the ANC-led government has made great achievements. We have ensured:

1. high levels of confidence, certainty and stability
2. lower government debt, and inflation
3. substantial growth in exports, of manufactured goods especially in the auto industry and minerals other than gold, as well as generally rising productivity and improved skills
4. a sharper regional and continental focus
5. increased empowerment opportunities for black people, women and the poor
6. labour-market reforms that have greatly improved labour relations

6. Great challenges remain, however. Key among these are:

1. high unemployment, with continuing job losses in the formal sector and rising joblessness especially among the youth
2. low growth, low savings and investment
3. continued mass poverty and deep inequalities based on class, race, gender and region
4. to continue to mobilise support for our economic policies and strategies and seek to reach consensus on these within the Alliance and society in general.

7. In response to this situation, the ANC has set the following objectives:

1. Faster, employment-creating growth based on higher and better structured investment
2. More equitable ownership of productive assets as well as access to skills and infrastructure in order to empower in particular black people, women and the poor in general
3. A substantial expansion in employment opportunities and sustainable livelihoods.
4. Programmes to meet basic needs and alleviate poverty in ways that as far as possible expand domestic demand and increase productive employment
5. Well-managed integration within regional and world markets

8. To achieve these objectives the ANC will utilise the following strategies:

1. Maintenance of macro-economic stability
2. Comprehensive and integrated micro-economic reforms in key sectors supported by skills development, to increase productivity, meet basic needs and create employment
3. Support for small and micro enterprise, including through land reform and provision of basic infrastructure
4. Improved income transfers and services to alleviate poverty
5. Strong efforts to mobilise private capital around new productive projects and infrastructure
6. Raising the level and efficiency of Public Sector investment
7. Mobilising key stakeholders behind the concept of sustainable development through initiatives like the Growth and Development Summit
8. Implementation of a comprehensive strategy for food security
9. Continually assess our labour and safety legislation and monitor its implementation to ensure improvement in the working conditions of especially vulnerable sectors.
10. Support for the Proudly South African campaign.

9. We assume a collective responsibility to advance and strengthen the interdependent and mutually reinforcing pillars of sustainable - economic and social development and environmental protection - at local, national, regional and global levels.
10. We recognise that macroeconomic stability has been achieved through policies implemented to date, allowing us to engage in proper sequencing and towards relatively more expansionary policies.
11. We recognise that our strategies can only succeed if we mobilise our members, allies and the masses in general around them. This requires a well-defined strategy of education and discussion within the ANC, as well as on-going policy engagement within the Alliance, the broader civil society and NEDLAC. In this regard Policy Conference notes and re-affirms the Ekurhuleni Declaration on management of intra alliance relations and the NGC resolution on the inclusion of economic literacy in our political education.
12. We will measure progress in terms of:

1. The growth rate
2. reduction in unemployment
3. increase in real GDP per capita
4. the Human Development Index
5. the Poverty Gap index
6. Indices of macro-economic stability

13. The context for the above measurements will take into consideration the extent of environmental degradation and depletion, changing ownership patterns and the establishment of specific indicators for key development outcomes. Indicative examples are included as an appendix.

UNEMPLOYMENT AND UNDER-EMPLOYMENT

Noting

1. That high unemployment rates have underpinned continued poverty and aggravated social problems
2. The high proportion of low quality employment in our society.
3. The many people in the informal sector, many who are under-employed.
4. That the unemployment crisis has affected young people, women and rural people most acutely.
5. The need to encourage our people to engage in sustainable self initiated income earning opportunities
6. That many of our people resort to a mix of strategies for improving household income that combine income transfers from family members and state pensions with subsistence farming, hawking and provision of services on a very low level.

Resolve

1. To ensure that government at all levels embarks on a programme combining short term measures aimed at providing a degree of immediate relief with longer term interventions aimed at sustainable job creation and alternative income earning opportunities;
2. To support the phased implementation of a comprehensive social security system, which will be implemented alongside job creation initiatives;
3. To support a major extension of community based public works programmes to create employment, support the informal sector, develop skills and expand social infrastructure, public housing and critical services to poor communities.
4. To mobilise through our branches a comprehensive action oriented campaign involving all peoples aimed at eradicating poverty and creating employment.
5. To engage with the private sector to articulate how they will act to eradicate poverty and employment creation.
6. To ensure that Government establishes a mechanism to report on efforts it has made to facilitate employment creation.
7. To ensure that Government extends supply-side measures to relatively labour-intensive sectors and activities, including services and construction, that produce wage goods and improve incomes for the poor. In particular, these should target food production and processing, the development of producer and consumer co-operatives, and the upgrading of household income-generating enterprises.
8. To support the convening of sector summits and regional forums, which can identify where sustainable job creation is possible.
9. To ensure that provincial, national and local procurement policies increase demand for quality local products.
10. To support technology innovation through private-public partnerships that ensures production of South African goods and services in line with the Proudly South African campaign.
11. To ensure the effective deployment of state and parastatal resources in support of the integrated rural development programme and local economic development and to use these capacities to ensure access to training of the unemployed and underemployed.
12. To ensure that the informal sector is developed through interventions that formalize employment, including through creating an enabling environment for cooperatives, through training, spatial planning initiatives, micro-financing, etc.

BLACK ECONOMIC EMPOWERMENT

Noting

1. Despite our efforts, South African society remains characterised by vast racial and gender inequalities in the distribution of and access to productive assets, wealth, income, skills and employment.
2. That little progress has been made in achieving greater operational participation and control in the economy by black people, and we have instead seen the rise in so-called 'fronting'
3. This limited participation of black people in the economy limits our ability to expand the productive base, sustain economic development, eradicate poverty and contribute to a better life for all.

Resolve

1. That Black Economic Empowerment (BEE) is a moral, political, social and economic requirement of this country's collective future. BEE is defined in its broadest sense as an integrated and coherent socio-economic process located in the context of the RDP. Its benefits must be shared across society, and impact as widely as possible.
2. That the indicators for success are overall equity in incomes, wealth, increasing levels of black participation - including black women and youth - in the ownership, the extent to which there is operational participation and control of the economy and the extent to which there has been transfer and possession of skills and a retention of assets by the BEE beneficiaries.
3. To ensure that BEE is broad based, supportive of collective ownership programmes by working people and communities, in the form of collective enterprises and cooperatives, supportive of the creation of an entrepreneurial class, the accumulation of assets by the poor and with a focus on the development of rural economies.
4. That the ANC will mobilise its membership to mobilise communities in general, and targeted groups in particular - women, institutions working with children, people with disabilities, youth and the elderly - to take up the BEE opportunities and to participate in the debate.
5. That an essential component of BEE is the involvement of black business people, especially women, in the ownership, control and management of productive capital in all sectors of the economy as well as skilled occupations. In pursuing this objective the ANC will work with the emergent black capitalist class to ensure joint commitment and practical action to attain increased investment, job creation, employment equity and poverty alleviation.
6. That the government must intensify its support for small, medium and micro enterprises as a critical component of BEE and ensure that such support reaches them.
7. That the ANC at all levels must continuously monitor progress in empowering black people, especially black women, youth, children, the elderly and people living with disabilities and ensure government arrives at quantitative targets in order to measure BEE.
8. That the ANC supports the establishment of a BEE Advisory Council representing all major stakeholders to champion BEE.
9. To promote the design and implementation of broad based sector or industry empowerment programmes with clearly defined targets, based on agreements between stakeholders
10. To enhance the effective use of government's instruments such as licensing, procurement, state asset restructuring and provision of finance, to target BEE.
11. To ensure government designs an enabling regulatory framework to promote certainty in the implementation and regulation of BEE.
12. To ensure that Municipal Integrated Development Plans factor in BEE at community levels and ensure that local government communicates opportunities for BEE.

RESTRUCTURING OF STATE-OWNED ASSETS AND ENTERPRISES

Noting

1. The portfolio of state assets contains entities and agencies that operate in various ways in our country and play a fundamental and strategic role in the ongoing development of our country and our continent.
2. That these state-owned assets and enterprises operate in all spheres of government, including national, provincial, and local government structures.
3. Significant progress has been made since 1994 to align state enterprises and agencies with the priorities of our development agenda. However, inefficiencies continue to hamper the optimal operation of those assets and hence the quality of the service they provide to our people and the economy as a whole.
4. Restructuring of state-owned enterprises can have an impact on [1] the quality, accessibility and affordability of services provided to communities, particularly the poor; [2] the efficient operation of strategic sectors of our economy; or [3] employment and human resource development.
5. A fundamental aim of restructuring is to ensure that SOEs more effectively and efficiently carry out their developmental mandates, including our regional and NEPAD programmes..

Resolves

1. To reaffirm ANC Policy on restructuring, particularly the role of state owned enterprises in economic transformation, democratisation and deracialisation of our economy.
2. To extend the National Framework Agreement to provincial and local government levels.
3. To ensure that in the process of restructuring emphasis must continue to be given to job retention and job creation and a social plan, as well as training,
4. To further ensure that practical and adequate safety nets are established for those workers who cannot secure continued employment or training. Such safety nets must at the very least include effective re-training, counseling, and assistance for alternative employment.
5. That the mandates of state owned (assets and) enterprises must be revisited, evaluated and monitored more closely to ensure that their social and economic mandates (including such issues as procurement, equity and transformation) remain aligned to our development agenda.
6. To ensure that both the ANC and Government communicate effectively with the broader public about the aims, objectives, and benefits of restructuring as these unfold.

BUILDING A CO-OPERATIVE MOVEMENT

Noting

1. That a co-operative movement would support more equitable growth and ownership in our economy and empower our people, while providing important services more affordably and efficiently to poor households.
2. That the current legislative framework for co-operatives does not encourage the formation of small-scale producer co-operatives, co-operative financial institutions or consumer co-operatives.
3. That our people do not have enough understanding or information about the aims, developmental potential and functioning of co-operatives.

Resolve

1. That the ANC and it's allies support the mobilisation of a social movement to initiate the development of cooperatives as an instrument of economic growth and development
2. To ensure that Government urgently establishes at all levels appropriate enabling legislation, an appropriate institutional framework and resources for producer, consumer, services and credit co-operatives.
3. To ensure that the Departments of Housing, Trade and Industry, Finance and Agriculture and Land in particular, must develop programmes to support co-operatives and to educate the public about them.
4. That the national Department of Education, through interactions with other departments, educational institutions, including SETAs and organisations working in the cooperative sector, should ensure sustainable training programmes on cooperative and that life-skills training in the schools includes some study of co-operatives, as part of broader training on entrepreneurship.

LABOUR AND HUMAN RESOURCES DEVELOPMENT

Noting

1. The democratic government and the Constitution have brought about a vast improvement in labour rights and dispute settlement systems, but most farm, domestic and informal-sector workers remain highly vulnerable and unable to exercise their rights in full.
2. Most companies have introduced weak and inadequate employment equity plans, if any.

Believing

1. Improved skills development, based on a sound general education system, is critical for economic equity, empowerment and growth

Resolve

1. The ANC will campaign to ensure that all companies register with the relevant SETA and complete a workplace skills plan, and that all companies develop meaningful employment equity plans, starting with three key sectors - finance, Information Communications and Technology (ICT) and mining.
2. To ensure that all government departments continue to actively contribute towards the success of the overall HRD Strategy and the National Skills Development Strategy.
3. In this regard, particular attention will have to be paid towards ensuring that the National Skills Authority develop effective mechanisms to disseminate information to and communicate with targeted constituencies about their programmes, and ensure further that they effectively expand their programmes to reach those that are out of school, out of work and inadequately skilled.
4. To support the principle that the Education Department ensure our youth have access to quality maths, science, computer and cultural studies they need to participate in the economy.
5. The ANC must ensure that a policy framework for access to training by the unemployed is developed.
6. Ensure that research is conducted to continually asses the impact of HIV/AIDS in the economy in order to strengthen appropriate measures designed to counteract such impact.
7. That a policy framework must be developed to encourage the private sector to accommodate learnerships so that opportunities are provided for people to acquire skills and experience in order to gain or create employment opportunities.
8. Strengthen and expand Public employment services for job matching activities such as councelling, provision of labour market and training information and job assistance.

FISCAL POLICY

Noting

1. That the democratic government has enjoyed great success in improving fiscal management, reducing government deficits and tax rates leading to lower interest cost for government. While this led to some declines in spending in the late 1990s, the strategy now permits a substantial improvement in government spending on developmental needs.
2. That the most impoverished rural areas, located in the former homelands, still lag behind in terms of most government services and infrastructure, while local governments in these regions face serious shortfalls in resourcing

Resolve

1. That Fiscal policy must support growth, employment creation and development by ensuring that government expenditure continues to grow in a robust but sustainable fashion. Like all policies, it must be subject to regular review in terms of its impact on our overall objectives.
2. To ensure that Departments and local municipalities do more to redirect and coordinate spending towards historically underserved communities.
3. To ensure that the capacity of government at all levels to spend effectively is increased,
4. To ensure that Provinces develop coherent packages to improve spending on government services in the most impoverished areas and, with the National Treasury, enhance support for local governments in these areas.

COMBATING INFLATION

Noting

1. That the ANC is concerned about periodic increases in inflation which places a heavy burden on the economy and the poor,
2. That these inflation changes could be the result of oil price increases, market inefficiency, currency movements, administered prices, local rates and taxes, input cost escalation, food price increases and other factors,
3. That policy to combat inflation has various instruments.

Resolves

1. That monetary policy must be used in a flexible manner, consistent with the broad aims and objectives of the ANC economic policy, including job creation, investment and poverty eradication.
2. That monetary policy must continue to be directed to the achievement and maintenance of macro-economic stability, in the interest of sustainable economic growth.
3. To maintain our approach on inflation targeting while ensuring that such targets are consistent with our economic objectives, and that all role players in the economy play their role in pursuing low inflation.
4. In the above regard, strive to achieve broad consensus on inflation targets.

THE GLOBAL TRADING SYSTEM

Noting

1. The current global trading system remains uneven, inequitable and subject to instability. Among other things, developed countries retain unfair trade advantages including subsidies and protective trade barriers. These practices have a negative impact on developing countries.
2. Current multilateral negotiations seek to remedy some of these imbalances, but may also present further challenges, such as further pressure to reduce domestic tariffs and increased burdens of compliance for developing countries.
3. That we have seen a substantial improvement in exports, especially in higher value-added manufactured goods.
4. Rapidly changing and unsustainable patterns of consumption in the developed world are impacting upon production patterns and market access options for developing countries

4. Resolve

1. To ensure that Government take steps to reduce the negative impact of speculative activity in capital and currency markets, including international regulations and options such as taxation of speculative capital movements.
2. To support government's continuing work for changes at the WTO, IMF and World Bank, and thus mandate government to prioritise efforts to fight poverty and to build the economies of developing countries, to work to make multi-lateral institutions more accountable to the peoples of the South; to work to strengthen the UN and its specialised economic agencies and promote greater coherence between the different multilateral agencies.
3. To support government in it's effort to resist the use of the General Agreement on Trade in Services (GATS) negotiations to push privatisation of core public services on a global scale;
4. To support government in it's efforts to work for modifications in Trade Related aspects of Intellectual Property (TRIPS) so as to address the issue of global public goods, affordable medicines and the sharing of the benefits of bio-diversity development.
5. To ensure that government's trade negotiations are guided by our economic vision, and that international and regional agreements strengthen the productive capacity of the economy of South Africa and those of the Southern African regions as a whole.

NEW PARTNERSHIP FOR AFRICA'S DEVELOPMENT

Noting

1. That Africa faces a challenge of poverty eradication and sustainable economic development
2. That the strategy is to reverse the poverty situation by changing the relationship that underpins it; by ensuring that dependency is not entrenched through aid and drawing on the potential of the rich existing African resources.
3. That South Africa is an integral part of the African continent
4. That the New Partnership for Africa 's Development (NEPAD) is a pledge by African leaders based on a common vision and a firm shared conviction to fulfil their duty to eradicate poverty and place their countries individually and collectively on a path of sustainable economic growth and development.
5. That it is also a call for a new relationship of partnership within countries in Africa and between Africa and the international community to be founded on a realisation of common interests, benefits and equality.

Resolve

1. To ensure that NEPAD is enriched through structured interaction with African civil society, which will in turn form the basis for mass mobilisation to support political, economic and social development.
2. To support the participation of government, business and civil society in the development and implementation of the economic programmes aimed at achieving growth while eliminating poverty, with an emphasis on investment, infrastructure, agriculture and regional integration.
3. To mobilise our membership and allies to join hands with progressive forces in African and the rest of the world in pursuit of the NEPAD objectives.
4. To affirm that the ANC stands behind the African leadership's commitment to ensure economic integration in Africa through the promotion of regional and continental forums.

MINING

Noting

1. That mining was and remains a cornerstone of the South African economy and that historically mining companies did not invest in communities that contributed towards mining, leading to extreme poverty in areas that are associated with mining, resulting in ghost towns as mines are closed.
2. A few companies, which are increasingly based outside of South Africa, continue to dominate South African mining.
3. The mines have a poor safety record and rely on migrant labour, which leads to unacceptable living conditions for miners and accelerates the spread of HIV and TB, asbestosis, chronic and non-communicable diseases.
4. The gold industry has many productive decades ahead of it, but will continue to downsize. This situation has in part been offset by increased investments and exports of other of platinum and steel.
5. Local beneficiation of our minerals remains inadequate, although there has been progress in this regard
6. The majority of our citizens were denied access to mineral resources and careers in the mining industry, which has resulted in extremely skewed ownership and staff demographics, with mining houses holding on to mineral rich state land through long term leases and mining licenses, limiting new entrants into the sector.
7. South Africa will always need mining, but diversification and increasing beneficiation is necessary in the light of the volatility of raw materials markets and the need to create employment on a mass scale

Resolve

1. To develop a mass campaign to support the transformation of the mining industry both in South Africa and internationally and support the legislation aimed at achieving transformation, such as the Mineral and Petroleum Development Bill,.
2. To ensure that we urgently develop strategies to establish value matrices around mining in ways that enhance employment and equity, by amongst other things:

2.1. Implementing strategies to overcome the obstacles to beneficiation, particularly non-competitive pricing.

2.2. Building on the strong technological base South Africa has in mining to support exports of capital goods and technological advances in other industries.

3. Implement a mining charter that facilitates meaningful and sustainable equity participation by black people in general, and women in particular, in existing and new mining operations underpinned by broad-based socio-economic empowerment. This Charter should include clearly defined targets, which should be based on agreements amongst stakeholders, with proper monitoring mechanisms.
4. To continue to pursue people centred mining, which broadly encompasses accepted sustainable development principles.
5. To mobilise for the transformation of employment patterns and recruitment processes in ways that benefit mineworkers and their families in South and Southern Africa.
6. To manage the downsizing of gold and diamond mining by requiring that mining companies provide clear plans, which take into account the lifespan of mines and the need for sustainable local development.
7. Support the development of safety standards and access to training for small-scale miners.
8. To explore the establishment of a vehicle to support mineral exploration by previously disadvantaged groups, especially rural communities, given the importance of sustaining the industry and bringing in new entrants through new legislation envisaged.

AGRICULTURE AND FOOD SECURITY

Noting

1. That landlessness is a growing problem aggravated by the challenges of poverty and unemployment.
2. The need for a comprehensive policy on agricultural land management.
3. That many Farm workers, tenants and other dwellers continue to live under highly inhuman and oppressive conditions.
4. Volatility of food prices aggravates the vulnerabilities of the poor.

Resolve

1. To work with other formations to lead a popular campaign for rural development, including the formation and development of co-operatives, farmers and rural enterprises' associations.
2. To ensure that the implementation of the Land Reform and Agricultural Development Programme is accelerated and includes a comprehensive support package for farmers, farm workers, and dwellers, rural entrepreneurs and co-operatives.
3. To extend government services to all farm dwellers.
4. To expedite the re-evaluation of the Labour Tenants Act and the Extension of Security of Tenure Act in order to ensure more effective protection of the rights and means of farm workers and dwellers.
5. To develop a comprehensive agricultural land management policy which deals with productive use of under-utilised agricultural land and sustainable agricultural land use.
6. To ensure that agricultural and other policies have a positive impact on household food security and prices.

FISHING

Noting

The progress made with respect to restructuring the fishing industry in the context of sustainability.

Poverty and unemployment remain amongst the major challenges in fishing communities.

Resolve

1. To support the full implementation of the new fishing policy, and to regularly review the impact of policies and programmes on employment, regular incomes of fishing communities in the context of seasonal nature of this industry, beneficiation and BEE.
2. Continually monitor the regional (and provincial) allocation of fishing quotas, in the context of the empowerment of fishing communities, and facilitate access of these communities to training, finance and general capacity to take advantage of fishing quotas.

TOURISM

Noting

1. That tourism remains a key growth sector for the economy and its contribution to development and job creation; Resolves
2. That the government should continue to implement programmes which promote tourism investment.
3. That support mechanisms should be designed, in partnership with stakeholders to ensure communities benefit from tourism activities and to enhance BEE and SMME outcomes.
4. To mobilise communities to participate in the community based business opportunities that underpin the tourism strategy.

MANUFACTURING

Noting

1. South Africa has a relatively strong base for manufacturing production, with sound infrastructure and an experienced labour force, and has successfully avoided the real threat of de-industrialisation.
2. Weaknesses remain, however, including continued dependence on imported inputs and the failure to develop more complete value matrices based on local mining, agriculture and petroleum refining; skills shortages; concentration of ownership and a weak SMME sector; and in consequence stagnation in employment.

Believing

1. Manufacturing can grow by expanding production of goods for domestic use and export, and by extending the technological base that developed to serve the mines, agriculture, energy, transport and telecommunications.
2. In the long run, manufacturing requires a well-established knowledge base, embodied in improved research and development, the diffusion of innovation, the use of ICT in procurement, marketing and design, and the development of a highly-skilled workforce.
3. There is a shift in the technological base of the economy towards labour displacing technologies in the form of micro-electronics.
4. Traditional boundaries between manufacturing and other sectors (primary products and services) are becoming less significant, requiring strategies that promote dynamic linkages cutting across traditional sectoral divides.

Resolve

1. To support the thrust of the Integrated Manufacturing Strategy as a programme to promote collective action within integrated value matrices and ensure that manufacturing, in dynamic linkage with other sectors, contributes directly and indirectly to employment creation, greater equity and small enterprise development.
2. That employment growth, the extension of income earning opportunities and equity must be key objectives of the Integrated Manufacturing Strategy.
3. Government should support the development of mechanisms to promote a transition from dialogue to collective action by stakeholders to ensure growth in output and employment in the context of increasingly integrated value matrices. Sector summits are an important way to begin this process.
4. Relevant parastatals must play a stronger role in facilitating easier access to capital in support of BEE and the promotion of SMMEs.

TRANSPORT

Noting

1. Apartheid settlement patterns and the location of major industrial centres far from the coast make road and rail transport particularly critical for South Africa and for southern Africa.
2. Huge backlogs remain in road maintenance and investment, many rural residents cannot afford the new toll roads, and rail service for commuters and rural people as well as most urban bus systems have deteriorated.
3. Most South African urban areas do not support non-motorised transport adequately.

Believing

1. In light of the distortions in settlement patterns inherited from apartheid, government must ensure affordable transport for commuters and migrant workers.
2. Government must also ensure efficient and affordable transport to serve production and communities in the interior of the country, and to support regional integration.
3. There should be a shift to infilling within metropolitan areas rather than extending costly urban sprawl.

Resolve

4. 1. To ensure that our growth and development strategies are underpinned by integrated and coherent logistical networks, using amongst other things, state-owned transport assets to achieve such integration.

5. To develop a rural transport network, including rail and roads, in ways that ensure social integration, reduce the cost of transporting foods and other goods, and support rural economic activity. We recognise that this may require a cross-subsidy from more profitable lines.
6. Government must initiate an urgent review of housing, industrial, agricultural and tourism policy to ensure they are supported by affordable transport systems. Greenfields developments must be subjected to greater control, and upgrading of city centres must be made a priority, with increased funding.
7. Public transport, especially municipal bus systems, and non-motorised transport must be supported vigorously.
8. Government must convene a Transport Summit with a view to improve national transport strategies and mobilise stakeholders around them.
9. The rail network is an important component of our economic infrastructure and it must be maintained and upgraded.
10. We call for the acceleration and intensification of efforts to take forward a taxi recapitalisation strategy.
11. The public transport system must be safe, affordable for commuters and accessible to people with disabilities.
12. In all, of the above, negative environmental impacts must be minimised. In particular, cleaner technologies in the transport sector must be implemented.

TECHNOLOGICAL INNOVATION

Noting

1. The increasing role of innovation-led growth in successful modern economies;
2. The threat posed by inadequate investment in the drivers of innovation, in particular research and development, thereby risking the loss of key knowledge upon which our strategic industries are anchored;
3. The declining investment by the South African business sector in research and development;
4. The key role of the State in developing a national platform for research and development;
5. The recent drafting by Government of a National Research and Development Strategy.
6. That our resource based industries (e.g mining and agriculture) need to be strengthened by linkages to excellent local research, technology diffusion and extension.

Resolve

To commit to a long-term research and development strategy that

1. Addresses the historical distortions in our human resources in science and technology;
2. Commits to support innovation in the context of economic growth and social development through appropriate incentives and encourage long term strategic research and development ;
3. Aligns governance structures for state-owned institutions with a strong technology mandate with such an integrated strategy.
4. In the light of micro-electronic technology, to explore the prospect of small- scale digital manufacturing which can be easily accessed by small and medium sized enterprises.

ENERGY

Noting

1. Many households still lack electricity, while some of those who are linked up to the grid have been cut off for failure to meet payments.
2. South Africa still produces some of the world's cheapest energy, which is a pillar of our economy, but expensive new investments will be necessary in around ten years.
3. The inefficient use of coal is a major source of pollution, especially in our townships, while generally South Africa does not make sufficient use of its abundant solar and wind resources.
4. Obstacles with the implementation of our commitment free basic service on electricity.

Believing

1. Affordable energy for households is critical for development, since it supports micro enterprises, improves conditions for women and children, and increases domestic demand for appliances
2. The ANC's commitment to free basic services, without a means test, should be implemented as soon as possible
3. Communities, labour and business need a higher degree of certainty about the impact of restructuring on electricity prices
4. Restructuring measures must not jeopardise the cross subsidy of poor households by formal business and richer communities

Resolve

1. That the process of rationalising electricity distribution should continue, ensuring viable and affordable electricity supply for all regions as well as the progressive achievement of universal and affordable access, on the foundation of a minimum free basic electricity service to all households.
2. That all proposals for restructuring energy generation and distribution should be analysed objectively to assess their likely impact on employment, the cost of investment in new capacity, electricity for households and formal business, and the environment.
3. To support the introduction of cleaner technologies for burning coal as well as alternative energy sources. Research into renewable energy technologies must be conducted and must include potential for local ownership and community participation.
4. To take concrete steps to combat pollution arising out of coal value chain activities by setting clean targets in the context of sustainable development without increasing cost to the poor.
5. To support the principle that decisions on nuclear energy must be based on a comprehensive and transparent environment impact assessment.
6. To ensure safety measures in energy generation, manufacture and usage, especially of paraffin.

THE FINANCIAL SECTOR

Noting

1. The financial sector should play a positive developmental role supporting savings and translating it into investment, and by increasing economic activity through provision of credit and efficient payment mechanisms.
2. That in fact, the financial sector has supported the bias of investment:-

• Toward capital-intensive sectors and offshore investment,
• Against low-income housing, small and micro enterprise, infrastructure and municipalities

13. The financial sector has failed to provide affordable basic services - that is, savings, payments and ATM facilities - in poor communities; and has generally maintained a bias against black people, women and youth.
14. Employment, ownership and training in the sector remain highly unrepresentative
15. Government oversight systems of state-owned financial institutions need to be improved in order to ensure that they fulfil their developmental mandates especially those that contribute to job creation, social equity and growth.
16. Much of our population needs more training to understand personal financial management and transactions

Resolve

1. That Government urgently adopt measures to ensure the transformation of the financial sector with clear measurable targets.
2. That Government financial institutions must be strengthened and be given clearer mandates in terms of their developmental role.
3. As agreed at the Financial Sector Summit, government, business and labour must urgently define mechanisms to increase investment in developmental projects.
4. The regulatory framework for the financial sector must be made more accountable, responsive and transparent.
5. To support small-scale community and village banks, community-based saving schemes and co-operative banks, through:-

1. Appropriate changes in the legislative and regulatory framework,
2. Government and NGO programmes to strengthen these institutions through training, subsidies and other measures,
3. Encouragement to unions and public-sector employers, including local governments and parastatals, to establish co-operative banks.
4. Review the Bank's Act to enable legal Development Micro-finance Institutions to on-lend poor women's savings.
5. Campaigns for a culture of savings by all sectors of the population.

6. To support legislation on the regulation of credit bureaux as agreed by the financial sector summit.
7. To actively lead a campaign towards the implementation of the resolutions of the summit.
8. To support community reinvestment legislation prescribing developmental reporting requirements and setting targets.
9. To support developmental, non-profit legal micro-lending agencies that target the poor for income generating activities to improve family livelihoods, especially in remote rural areas, through: Capacity building, training programmes, development of organisational structures and assistance in obtaining appropriate technology.
10. Establishment of an apex fund that can on-lend to the very poor through developmental micro-lenders and community banking institutions. The apex fund should be supported financially through the treasury.
11. We must review the application of exemptions from the interest rate requirements for micro-lenders' under the Usury Act.
12. The Government must ensure that the Financial sector SETA support the work of Micro-Financing Institutions.
13. Government must urgently implement rigorous measures to end unfair discrimination in the financial sector, including against people with HIV, by strengthening disclosure and accountability requirements.
14. Education and training about the financial sector must form part of all relevant SETA programmes and be integrated into the lifeskills curricula in schools.
15. The ANC should launch a campaign to educate people on the dangers of participation in pyramid schemes.

LOCAL ECONOMIC DEVELOPMENT

Resolve that we should develop local economic development strategies that:

1. Stimulates local production and commerce, including home industries,
2. Are linked to national and provincial strategies
3. Utilizes institutional arrangements that stimulates community initiatives and broadened ownership, including through cooperatives.
4. Address apartheid spatial planning that undermines local economic development;
5. Delivery of municipal services through collective community initiatives and enterprises.

APPENDIX: KEY INDICATORS FOR OUTCOMES

Employment

Black economic empowerment

Restructuring public enterprises and assets

Building a cooperative movement

Skills development

ANC NATIONAL POLICY CONFERENCE DRAFT RESOLUTION ON TARGETED GROUPS

Women, youth, children, the elderly and people with disabilities)

Noting that:

1. Since its formation, the African National Congress and its allies have fought for the equality of all sections of the South African society irrespective of race, sex, culture, religion or physical make up;
2. Amongst the motive forces, there are sectors of our society who are marginalised, disadvantaged or vulnerable because of patriarchy, age or being differently abled. These sectors include women, youth, the elderly, children and people with disabilities;
3. Policy development within the structures of the movement has taken into consideration the special needs of these targeted groups;
4. ANC structures have to be at the forefront of championing transformation generally and in the community at large;
5. The policies of the movement are entrenched in the Constitution and fundamental policy documents governing our society at all spheres of government;
6. There are inconsistencies and lack of coordination in applying government policy to targeted groups across the three spheres of government and the private sector;
7. Our protracted struggle for fundamental social transformation constitute a focus on targeted groups;
8. There is a need to broaden the consciousness of society in general about the challenges facing the targeted groups and provide real opportunities for advancing the interests of targeted groups
9. That targeted groups in rural areas face greater obstacles than those in urban areas.
10. Procurement and tendering practices should favour targeted groups;
11. There is need to strengthen the progressive structures, build relationships and play an active role in promoting peace and stability in SADC;
12. The present electoral system ensures representation of targeted groups;
13. In SADC we should set an example in terms of the SADC Declaration which states that there should be a greater representation of women in public and private sector;
14. Protracted wars in Africa have the greatest negative impact on the targeted groups;
15. Our country in partnership with other progressive countries should play a meaningful role in the establishment of gender machinery in the AU;
16. All progressive thinking people from various sectors who aspired to see South Africa liberated from all forms of oppression have contributed and will continue to contribute towards the complete liberation of our society; and
17. Increasing high food prices have a negative impact on food security especially for the targeted groups.

Believing that:

1. There are specific intervention instruments and programs that have to be developed and implemented in order to integrate these sectors into the mainstream of societal development;
2. Addressing the specific needs of these groups stands at the center of our effort to build a better life for all. To establish the new South Africa as a caring society, the empowerment and affirmation of these groups is critical to ensuring a people-centered and people-driven transformation;
3. A massive education campaign is necessary for targeted groups and broader society to make them aware of their fundamental rights as enshrined in the constitution of the democratic Republic of South Africa;
4. The recent developments on the continent creates opportunities to formulate appropriate responses to the problems faced by targeted groups on our continent.

Therefore Resolves that:

1. ANC structures must ensure the mobilisation of the different targeted groups within its ranks, and work with their sectoral organisations and NGOs.
2. Special emphasis be placed on intensifying an education and communication campaign of broader society about the challenges and problems faced by the targeted groups;
3. We must set up and promote cooperatives and other developmental initiatives aimed at the targeted groups, including broader economic empowerment through measurers such as affirmative procurement targets in favour of these groups;
4. There must be skills development for the targeted groups to benefit from tendering and procurement aimed at the economic development of the targeted groups;
5. To strengthen coordinating, monitoring and performance mechanisms, across government departments and all three spheres of government, and task the Presidency to continually asses levels of integration, and annual reviews on budgeting and programmes. This should include key performance indicators and monitoring processes to ensure improved, effective and humane service delivery to all target groups.
6. Accelerate training, literacy programmes and access to education for targeted groups.
7. Harsher sentences for those who are found guilty of abuse of the various targeted groups.

ON WOMEN

Noting that

1. The efforts by the ANC to translate its commitment to non-sexism into practice in various government and organizational policies and programs, ensuring that the Strategy and Tactics document integrates and mainstreams the issues of gender equality and women's emancipation;
2. The criminal justice system remains insensitive to the plight of abused women and to domestic violence;
3. There is a need for consistent action to empower women, particularly rural women, with information of polices and legislation with regard to their empowerment.
4. The ANC 50th National Conference on programmatic aspect of the eradication of gender oppression which included the following:

• The role of the ANCWL and the need to strengthen it;
• Introduction of one third quota in all structures of the ANC;
• Building a broad national women's movement;
• Strengthening the gender machinery in government;
• Action against violence women and maintenance violations; and
• Calling for a review of all discriminatory customs, traditions and other practices that are oppressive to women.

5. Pan African Women's Organisation (PAWO) is a continental organisation that should continue to address the plight of women in Africa and needs to be strengthened and transformed.

Further noting that

6. Despite the introduction of the one-third quota representation in all structures of the organization, there continues to be some resistance to implement this position;
7. The ANCWL still remains with the critical challenge to provide leadership to the broadest spectrum of South African women.

Believing that

1. The constitution of our country and our policy framework on gender provides a platform to intensify gender transformation at all levels; and
2. The one third representation is still not sufficient to address the question of gender transformation at all levels.

Resolve that

1. The ANC should continue to build a strong ANCWL;
2. To reaffirm the ANC 50th national conference resolutions focusing on the programmatic aspects of the eradication of gender oppression;
3. A comprehensive strategy on our programme to build a non-sexist society and provide a guide for the integration of gender in all aspects policies and programmes
4. The one third representation of women in all structures of the movement should be seen as a minimum, to be progressively increased to match the demographic profile of SA, coupled with political education and capacity building programmes;
5. The gender machinery and mechanisms should be strengthened and be consistent at all levels of the public and private sectors;
6. Necessary legislation must be looked at to ensure one-third representation of women in all legislatures
7. Capacity building and skills development be actively pursued through the relevant skills development institutions and structures including SETAs;
8. The ANC must play a critical role in accelerating efforts to building a national women's movement.
9. To either strengthen disciplinary measurers in the ANC to address the issues of sexual harassment, abuse and violence against women, children and others; or to propose that Conference establishes a special committee to deal with such offenses.
10. The Sexual Offences Act must be finalised as a matter of urgency;
11. Take forward discussions with a view to effect amendments and changes to Customary laws and practises which are inconsistent with the Bill of Rights and other laws of our country;
12. Explore the establishment of a developmental women's fund;
13. PAWO must be transformed and restructured in order to meet the current challenges women face on our continent such as pronounced within the AU and NEPAD. The ANC further reaffirms the decision of the 50th Conference to host PAWO; and to support the holding of PAWO conference in SA.

ON YOUTH

Noting that

1. The resolutions adopted at the Mafikeng conference with respect to youth remain valid and correct. That there has been limited progress with the implementation of these resolutions, especially with respect to the National Youth Service programme to address the socio-economic challenges;
2. The youth are still a constituency that is largely unemployed and out of school; and are vulnerable to crime, substance abuse and diseases which can be as a result of poor lifestyles;
3. To adequately and comprehensively address the challenges facing youth development requires that we strengthen youth institutions such as the National Youth Commission, South African Youth Council and the Umsobomvu Youth Fund, that we improve co-ordination between these structures and ensure that they function as an integrated whole;
4. Youth development is not fully integrated in most government departments and other broader society structures, in particular local government level;
5. The present education system does not prepare the youth adequately to enter the mainstream economy;
6. There is insufficient access to finance for the youth to establish SMMEs and to further their education; and
7. The problems experienced with unregulated circumcision practices and the impact on the health of young people that attend such.

Therefore resolves:

1. The ANC should pay urgent attention to the implementation of youth programs;
2. The National Youth Service Program must be speedily implemented in order to create hope among youth and enhance their employability,
3. An integrated sustainable youth economic participation strategy be developed and implemented urgently to change the situation of the youth in an integrated manner for sustainable livelihood;
4. The ANC must assist NYC and SAYC to fulfill its developmental objectives and programmes.
5. The ANC must ensure enhanced implementation and monitoring of the programs adopted with regard to youth employment and skills development and announced by the President during the State of the Nation Address,
6. The proposed legislation on cooperatives should cover the specific needs of youth,
7. The preferential procurement policy must be reformed and amended to benefit youth enterprises and links with big business for skills development and markets,
8. The ANCYL must forge relations with progressive youth NGO's.
9. The South African Aids Youth Programme must be strengthened and provided with leadership and be in line with the National Health Policies
10. The youth intervention on HIV and AIDS must raise awareness and focus on prevention, disease management, home-based care, food security and provision and support,
11. Support the mobilisation of youth volunteers through the Youth Service Corps launched by the Progressive Youth Alliance and other similar initiatives to encourage young people to do community service.
12. Capacity must be built for health workers and care givers dealing with youth health services at youth centers to ensure that they are friendly to youth.
13. The ANCYL to increase the participation of of young women in politics, sports and recreation and also other spheres of society.
14. Need to establish programmes that would cater for the youth during school holidays such as school camps.
15. To take the necessary steps to ensure a safe and healthy environment for practices such as circumcision, including working with the relevant cultural structures, through legislation, regulation and training, with due consideration for the health of the youth involved and protecting the sacredness of traditional practices.

ON CHILDREN

Noting that:

1. Provision of free health care and immunization to children under the age of 6, benefit the poor
2. Child support grant has been extended to reach 3 million more children by December 2003,
3. There is provision of nutrition programmes to children at primary schools
4. Children with disabilities in many cases end up in sheltered projects with no meaningful socio-economic opportunities
5. Progress being made to put in place a policy and legislative environment to protect and advance the rights of children, such as work in progress in the Integrated Child Care and Child Justice Bills, and in the provision of early childhood development and affordable, compulsory education. .
6. The investigations of the Parliamentary Task team on sexual abuse of children.

Further noting:

1. Children must not be denied access to education on the basis of affordability disability or social conditions,
2. Improved services that is provided by the SAPS (Child Protection Unit),
3. That the education system has been deracialised and integrated in particular for the benefit of children.
4. That social disintegration and breakdown of the family, exacerbated by the HIV and AIDS and poverty, are leading to larger numbers of children being orphaned or in distress.

Believing that:

1. Child abuse is a scourge in our communities and that domestic violence needs to be vigorously combated.
2. There is abuse in the usage of the child support grant by some parents,
3. Drug and substance abuse continues to be a major problem in our society,
4. There needs to be effective utilization of nutrition schemes and projects,
5. Orphaned and children in distress should ideally be provided for by family or in their communities, with support from government and other social institutions and we should as far as possible move away from institutionalisation.

Therefore resolves that:

1. The ANC should be a champion for the rights of children
2. Communities must play a role to protect the children,
3. ANC must play an active role in civil society structures,
4. Review the age limit for child support grant to cover children up to the age of 14 years,
5. People who abuse children must be given harsher sentences,
6. Review the role played by SGB's in determining schools fees,
7. Ensure that the necessary measures are taken to ensure that children with disabilities will have access to education facilities
8. To endorse recommendations from the Parliamentary Task group on sexual offenses against children, in particular:

• The shift from curative to preventative measures in the protection of children;
• Strengthening of legislation to protect children, including defining sexual abuse as a distinct form of abuse that requires a direct response from government and society;
• Ensuring an integrated response from government agencies working with children by considering for inclusion in the new children's legislation a basic basket of preventative and protective services that government must make available;
• That the new children's legislation must be clear about the responsibilities of certain categories of professionals to report abuse or suspected abuse;
• Strengthen the criminal justice system to protect children and prevent abuse; and
• Raise community awareness of the effects of abuse on children and the services available to assist in the protection of children.

9. Work with communities, families, cultural and religious institutions to protect the rights of children born outside of wedlock.
10. Strengthen the implementation of the National Plan of Action for Children, including the development of provincial and local plans of action.

ON THE ELDERLY

Noting that

1. The ANC has improved the socio-economic situation of the elderly in our society by improving their social grants, access to health care facilities and protection,
2. However, the elderly are still vulnerable to all forms of abuse and are taken advantage of by their family members, relatives and even public servants. Usually, when such abuses happen, the elderly do not know how, where and who to report this to.

Believing that

1. The difference in the qualifying pensionable age for men and women,
2. Bank service fees to the elderly who choose to use these facilities are a deterrent,
3. Access to social workers remains a challenge,
4. The elderly people are being abused by their family member, relatives and those who sometimes pretend to help them including service providers and corrupt officials and micro lenders,
5. Social housing villages for the elderly should be established with all the necessary facilities

Resolves on

1. The ANC must take a lead in creating a caring environment for the elderly,
2. Our society must be educated on the rights of and respect for the elderly,
3. The system that provide services for the elderly must be transformed,
4. There is a need for the integration of homes of the elderly across racial lines,
5. Communities must be encouraged to speak for the elderly particularly where there are incidences of abuse,
6. The elderly without houses and essential services must be prioritized and placed ahead in waiting lists.
7. We should review the retirement age and whether the pensionable age for female and male is not discriminatory

ON PEOPLE WITH DISABILITIES

Noting that

1. The Integrated Disability National Policy (IDNS) is in place
2. The Office on the Status Disabled People (OSDP) has been established in the Presidency,
3. People with Disability are now receiving state support through disability grants,
4. We are one of the countries with the highest number of MP's with disabilities in the world with necessary support in relation to their needs,
5. We are still faced with the challenge of ensuring greater representation and participation especially at the level of provincial and local governments
6. We acknowledge progress made in ensuring accessibility of government buildings to the disabled friendly.
7. Generally the public broadcaster is not sensitive to people with disabilities especially the deaf.

Believing that:

1. Access to public transport remain wholly inadequate and inaccessible especially in rural areas,
2. Progress has been made to ensure accessibility of government buildings, but more needs to be done
3. Access to the private sector buildings should be improved.
4. Employment of people with disabilities still remains a serious problem,
5. Children with disabilities are still discriminated against particularly in schools

Resolve that

1. The ANC should continue working with progressive civil society organisation such as the DPSA
2. Improve, build and provide services to people with disabilities especially in the rural areas,
3. Special consideration be given to accommodate the disability sector within the poverty reduction programmes and economic empowerment,
4. Engage in campaigns, which will ensure that all people who qualify to benefit from the disability grants are registered and receive their grants..
5. The ANC should/must lead a campaign to ensure that the public transport system is accessible for people with disabilities.
6. Ensure the effective integration of disability in all our policies and programmes, and the establishment of appropriate structures.
7. To advocate for the adoption of a SADC protocol on disability.

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