Madame Speaker
Honourable Members
" In a certain sense, the story of our struggle is a story of problems arising and problems being overcome "
A profound statement indeed, made by that great leader of South Africans to face their challenges with determination and confidence.
In 1994 we inherited an economy that was globally uncompetitive and virtually on the verge of collapse. It was an economy that no longer had the capacity to create jobs. Our people, led by their organization the ANC, turned the situation around and build one of the most sophisticated modern economy on the African continent. We are truly witnesses of problems being overcome. It has one of the most advanced financial services industry and a manufacturing industry which is now internationally competitive.
It is our national asset. We need to use its resources to address our developmental challenges. This is the part of our economy which is highly skills intensive.
There is also a second part of our economy( you may call it the informal sector) that is characterised by a low skill base, poverty, joblessness and uncertain income. Unfortunately , by the design of apartheid policy makers, this second economy is defined by race. The vast majority of black people are trapped in the second economy. The second economy comprises of spaza shops, tarvens, stokvels, taxi industry and it has the dynamic link with the first, established or advanced economy.
Vast amounts of money leave these impoverished communities daily and is injected into the economy. Very little reinvestment into these communities take place. Our people do not enjoy the benefits of the First economy even when it thrives or grows because they do not have the skills required in the First economy. There is very little that trickles down to the unskilled and unemployed masses.
Conservative economists would want us to believe that higher economic growth on its own will solve joblessness. It is not necessary to stand on this podium and reject those theories. The harsh reality on the ground has already done so.
Hence, the ANC believes in a strong developmental state, that will intervene to correct this anomaly. The ANC outlines a proper development path in its manifesto. The ANC believes that the answer lies in huge investment in education and training that will ensure that workers and the unemployed are empowered with skills to participate in the first economy. The ANC aim to create 1 million job opportunities through the Expanded Public Works Programme. The involvement of the communities in building community infrastructure will assist in providing work opportunities.
We believe that it is the correct development path. It is incorrect to hold a view that South African labour laws are an impediment to job creation. The proponents of this quick-fix solutions, the DA, argue that employers should be empowered to hire and fire as they wish and suddenly more than one million jobs will be created. What a muddled economic thinking. It is a populist thinking.
What is the view of other international development agencies on this matter?
The World Bank and the International Finance Corporation released a publication called " Doing Business in 2004 ." They give different countries scores after assessing their labour laws.
The ranking looks at the flexibility of hiring and firing and conditions of employment among others.
The higher scores implies that the country in question has more rigid or inflexible labour laws. The score range from 0 to 100.
South Africa was given a score or ranking of 36.
The question is whether does South Africa have inflexible labour market as arranged by the DA.
Let us analyse the scores or ranking of other developing countries and compare it to the South African score of 36. Brazil : 78 ( a score much higher than South Africa, which implies Brazil has rigid labour laws)
Chile : 50
China : 47
Botswana: 35
Argentina : 66
Mexico : 77
Morocco : 51
Let us turn to the Asian Tigers. Let us not forget the South African ranking : 36.
Taiwan : 57
Japan : 37
Malaysia : 25
Thailand : 61
Let us turn to developed countries. The ranking South African score is still 36. Let us not forget that. Israel : 38
Ireland : 49
Germany : 51
Finland : 55
Sweden : 42
US : 22
United Kingdom : 28
Spain : 70
Portugal : 79
France : 50
Belgium : 48
It is clear that the DA, which claim that South African labour laws are rigid cannot sustain its argument. The argument has no basis and only serve as election slogan. It is a fact that jobs will not be created by taking away the rights of workers. This will only serve to deepen poverty in our communities.
These are just lies from desperate people looking for few votes from our people. Our people cannot be fooled. Their conscience and the truth will guide them.
Ka Sesotho bare, e re ge boesa le tswalele mesoro, motho wa maaka o etla , leokobu letla le ahlame.