In the name of God Most Gracious Most Merciful
Madam Speaker, Colleagues and friends
3 June 2004
The world is divided into triad and non-triad countries, which means the developed world and the developing world. By triad, we mean North America, Japan and Western Europe, non-triad include the rest of the world. The triad countries have a population of about 750 million and earns two thirds of the worlds income. It has 15 per cent of the worlds population living and the average income is approximately $13.400 a head. A non-triad country has a population of slightly under 4,3 billion and earns a little less than a third of the worlds income; their average income is $1 100 a head.
Our country has emerged from decades of isolation and oppression to freedom and integration with the world. South Africa is recognised as a lucrative and attractive tourist and investment destination. Indeed, our charismatic leadership needs to be applauded for their confidence and resilience shown as we take up our global financial challenges.
Surely, hosting the world cup in 2010 will give impetus to our economy especiatially in tourism, job-creation, infrastructure development and many other positive and lucrative spin offs for enhancing our profile as South Africans. This will give us a tremendous opportunity to show case our beautiful country as a competitive world player. I wish to remind all of us that our preparations should be well underway at all levels of civil society let alone the political and government levels.
We need to remember that, Regional integration is definitely not a linear process. It is an endevour to increase social gains without renouncing national sovernity. Madam Speaker during the past decade we played a significant role to develop essential policies, international agreements to relevant protocols in order to reduce poverty and under development. Holistic development can only be realised with socio- economic growth together with peace and security. Global good governance and political stability for the world is necessary for peace to prevail on a continental or global level.
We all know that war has destroyed many counties. Significant damage to infrastructure and development has left many countries of the world with weak and impoverished economies. A case in point is the unilateral invasion of Iraq is a classic example of defiance of International rule of law and an insult and disregard to Multilateralism.
As women and children, we are often the victims of war and aggression. I am of the opinion that many more women should serve on international forums for global peace, security and developmental negotiations. It is pleasing to note that the UN Economic and Social Counsel has committed to women's equal participation in conflict prevention, management and conflict resolution. Therefore, women should and must play an instrumental role in global governance and peace initiatives.
We all know that the UN, WTO, IMF World Bank is core organs for multilateral and developmental discourse. If member states undermine these organs, how will the UN millennium Goals especially for the developing world. Democratisation of Bretton Woods's institutions is paramount to increase market access through the WTO. An unequal global order manifests, itself more acutely on our continent, 49% of Sub-Saharan people live below the poverty line of $ 1 per day.
It is disconcerting that in absolute terms the overseas development assistance (ODA) to African Countries dropped in the last decade and fell short of the estimated US $ 50 billion per annum. If for whatever reason this trend continues then millennium Development Goals cannot be reached.
It needs to be acknowledged that development assistance will enable poorer nations to build capabilities and capacity for exploiting the benefits for the more integrated markets. It will also reduce economic distance between nations and allow for greater exchange of global information and knowledge. Development assistance can play a valuable catalytic role, including the provision of global public goods.
Internal displacement is one of the greatest tragedies of our time: 52 countries have been affected worldwide according to recent statistics.
Region Countries IDPs Africa 20 12.7 Asia-Pacific 11 3.6 Americas 4 3.3 Europe 12 3.0 Middle East 5 2.0 Global 52 24.6
These IDPs of human resource also has the direct impact on sustainable development. In warring countries attained mend of peace and reconstruction needs to be prioritised, once that is achieved economic development can be realised and quality of lives of people of world will be improved.
On 25th September 1999 the G-20 was created - this is an international forum and Central Bank Governors representing 19 countries. It is our hope that the G-20 will carry out its mandate of promoting international financial stability globally. We need to take cognisance of the fact that the activities of G-20 compliments activities of World Bank and IMF and it should effectively translate its activities by changing the lives of ordinary people of the world.
We call upon the WTO members to give impetus to the negotiation process towards the effective fulfilment of the Doha developmental agenda. We also want to challenge the International Financial Institutions to continue to develop their initiatives to support this aim.
Reformation of global financial institutions could be realised by financial liberalizations, integration and effective regulatory policies and equitable access to all nation states including the poorest of the poor countries.
Our countries economic prosperity requires us to promote the Kyoto Protocol and operational clean development Mechanism (CDM). It needs to be noted that Russia and USA still needs to ratify this protocol.
We need to take cognisance of the fact that the International campaign against terrorism should not undermine or neglect the efforts to eradicate poverty and underdevelopment in the world.
Turning to our economic imperatives, we need to promote South relations by our India/ Brazil/ South African partnerships. It is critical that we leverage our potential by strengthening and exploiting our relations with Pacific Rim/ Caribbean ACP/ common wealth issues.
The president also met with the Caribbean Community and SA is presently negotiating to conclude a bi-lateral co-operation agreement with Jamaica and the Bahamas
Another important market for SA is Mercosur, which has more than 260 million people; therefore, the SA/SACU-Mercosur FTA needs to be concluded in the short term.
We have foreign representatives in more than 40 countries all over the world. These missions need to be adequately resourced and capacitated to meet these challenges. Our trade desks in these missions should be strengthened with attractive marketing material and armed with innovative technology, expert and knowledge based skills are required in our missions so that niche markets are exploited with great efficiency so that we meet global challenges effectively. Our challenge for Dept of Internal Affairs is to deploy skilled and well-groomed personnel to represent our country abroad in Multilateral Fora, as many of these posts are still vacant.
Our stable economic policies give us the competitive advantage to negotiate with partners around the global. I am proud to say the South Africa played a pivotal role during the WTO multilateral trade negotiations.
It is imperative that developing countries are fully integrated into the global trading system. For multilateral negotiations to be effective their needs to be a greater participation of developing countries and their economics must be reformed and this could only happen if all forms of protectionism is eradicated. LDC's also require effective technical assistance to participate realistically in World Trade.
Madam Speaker, SA is a unique combination of a highly developed first world infrastructure and a huge emergent market economy. We have a remarkable capacity i.e. our human capital, we are able to enter competitive world markets with the right entrepreneurial training therefore, and we must be given a fair and equitable chance to compete. Our country is a lucrative investment destination possessing many advantages and opportunities.
We all know international investors will scrutinise national, regional and local conditions to inform any investment decision. I can confidently say that SA is poised to attract the trillion dollar FDI markets as it offers secure and attractive emerging markets, political stability and conducive economic policy objectives. Our country's overall industrial strategy has made a paradigm shift to an integrated approach to maximise our investment potential through the creation of Spatial Development Initiatives (SDI) (ID's) and Industrial Development Zones.
I will mention only two the Maputo Corridor and Trans Africa Coast. The IDZ's are strategically positioned to make SA a global export-manufacturing platform. Our IDZ's like the Saldana bay and other projects are an integral part of SDI programme, which provides extensive investment opportunities to attract FDI.
Foreign Direct Investment is a catalyst for economic growth. Although our economy does require attract more FDI, we showed a steady increase in the last decade, through trade liberalisation and attracting foreign companies. This resulted in an increase in competition, corporate restructuring, mergers and acquisitions. This has allowed for foreign investors who successfully opened up export markets to their SA subsidiaries with some degree of success. These types of mergers and acquisitions have a ripple effect on technology and management systems being improved in our country.
In our effort the unlock our potential as South Africans as an enterprising nation, we begin test our economic clout, we endeavour to entrench our strategic partnership with our traditional trading partners in the EU. SA is also a member of Lome' convention, which links 71 counties in Africa, the Pacific Ocean and Caribbean Sea (ACP) with EU.
I am proud to say that it is the first time in history that our SA contractors were allowed to tender for eight European Development Funds contracts in ACP counties. These contracts total to R70 Billion. Indeed, we are on the world map.
SA relations with Europe i.e. Germany, France, Sweden and the Nordic Region, have been strengthened by bilateral economic cooperation, joint ventures, technology transfers, industrial partnership and exchange of trade missions have been realised.
Two high profile visits to our President and Cde Mandela increased our political and economic interaction with the Russian Federation. The UK is one of our largest investors and the SA - UK Binational Forum will only enhance and encourage more investment, which is encouraging.
Madam Speaker our country has shown great promise to the world and the global community. Our foreign trade agreement with Hungary, Croatia, Cyprus, Bulgaria and Belarus are underway. Our missions abroad are playing a pivotal role in marketing our beautiful country, which has a rich cultural heritage, strong infrastructure, and - lucrative markets.
Many niche markets include Netherlands, Belgium, Austria, Switzerland, the Chez Republic, Italy and Spain not forgetting Greece, Turkey, Bulgaria, which need to be explored.
Further, US- SA - BI - National Commission solidifies our export potential and FDI.
Now, the question is, how do we manage the resources of the world, which is divided into the rich North and Poor South situation. How does international relations help us to exploit the digital and technological innovations of the North to realise human progress, economic, social and political dynamism. Global international relations must be changed from exploitation to shared benefit, from subordination to partnership.
We need to take heed of the fact that the well being of the North and stability in the world cannot be realised without ending poverty and deprivation in the South. The over exploitation of the global ecology will have direct consequences to the Nations of the world. It is therefore imperative that the World Bank and World Health Organisation, IMF and other global Institutions should be transformed so that these global institutions exploit the resources equalitably to all the Nations of the world.
Radical readjustments - and structural changes in world economy has far - reaching implications for international economic interdependence. The reform of international trading system should be oriented towards creating a global rule-based system, which is build on the principles of transparency, multilaralism, and non-discrimination. It should lead to improved access to markets for developing countries and enable them to expand their share of world trade in products in which they have a distinct comparative advantage.
In the field of science and technology, the South should be given a fair chance to share in the benefits of North. Countries of the South should have market access on favourable terms. The institutional reform within the UN system and its specialised agencies must endeavour to democratise and increase its effectiveness to all the nations of the world.
Madam Chair, the time has come for effective multilateral action to scale down the debt and reduce the burden of debt service to tolerable levels. We all know that indebted economies have become indentured economies and it is a clear manifestation of colonialism.
I conclude by saying that growth in the world economy needs liquidity, just as an engine needs lubricants. IMF Liquidity should be available to all countries of the world equitably. Recent trends show that this liquidity has fallen into private hands i.e. the banks and other financial institutions of the North. This action puts the countries of the South at a great disadvantage.
Indeed we are South Africans members of the global village and we to wish to play a pivotal role in an effort to help eradications poverty and aspire to realise a new world order where global resources are equitably used for all nation states. So all peoples of the world are given equal opportunity to compete in global markets.
I thank you