MAY 22, 1992
Honourable Minister of Foreign Affairs,
Your Excellencies,
Distinguished Participants,
Ladies and Gentlemen,
May I, on behalf of everyone in this hall thank His Excellency Theo-Ben Gurirab, the Minister of Foreign Affairs of the Republic of Namibia, for his most inspiring welcome and opening address. I wish also to place on record, on behalf of the Special Committee against apartheid, the agencies of the United Nations system represented here, and on my own behalf, our profound thanks to His Excellency President Sam Nujoma, the Government and people of Namibia for hosting this important Seminar. We are also most appreciative of the warm hospitality that has been accorded us since our arrival here.
I believe that it is most befitting and proper that a United Nations Seminar that addresses the socio-economic problems of South Africa is taking place here in Windhoek. Namibia is a nation with profound historical links with the United Nations. Equally, it is one of the few nations that has a first-hand grasp and knowledge of the destructive consequences of apartheid and the attendant socio-economic problems it has created. Consequently, we expect to benefit from Namibia's hosting of this Seminar, and from her experience on how best to analyze and grapple with socio-economic problems that are legacies of apartheid.
Your Excellencies,
Distinguished Participants,
This Seminar, you will all agree, is taking place at an interesting and crucial junction in South Africa's political history. In the past months, we have witnessed and welcomed various positive developments in that country. Even when we have been apprehensive about certain threatening developments - most notably the ongoing violence - we have remained optimistic that South Africa is on a fairly steady course to a non-racial democracy.
Naturally, there are reasons to be disappointed that CODESA II, could not reach an agreement on a transitional government. Nonetheless, the problems facing the country are so pressing and burning that there is, more than ever, the urgent need to establish a government which enjoys broad-based support and an undisputed legitimacy. But there are also good reasons to be optimistic, and if the international community and South Africans remain vigilant and maintain pressure on the South African authorities, there is the real possibility that we may soon witness the historic beginning of a true political transition in South Africa. I feel sure that I express the feelings of this distinguished audience, in stating that high hopes are placed on the next session of CODESA which will take place towards the end of June.
As progress is made in addressing South Africa's political questions, the underlying socio-economic effects of apartheid in that country come more to the forefront. This is why we are here. This Seminar has its basis in our collective acknowledgement that, in spite of the repeal of key apartheid legislation, legacies of apartheid are still very much entrenched in existing public policies and structures of the State - both in the public and private sectors. Similarly, we must remain mindful, even as the ongoing negotiations continue, that efforts are being made by certain sectors of the South African government to unilaterally restructure the economy and privatize public goods, such as educational facilities and forestry. These are but a few areas; other different, subterranean efforts continue. Such an approach does not augur well for the interest of those already disenfranchised by apartheid. It seems clear that in order to build and to consolidate a stable and peaceful new South Africa, these socio-economic inequalities have to be urgently redressed.
This Seminar has been convened to allow South Africans involved in policy formulation, analysis and planning process for a future South Africa to work and discuss those matters with representatives of organs and agencies of the United Nations family which potentially have a helpful role to play in a new South Africa. As you may recall, the General Assembly in resolution 46/79A, urged the Secretary-General "at the appropriate time, in light of positive developments, such as agreement on transitional arrangements, to expand, in a concerted manner, through the relevant United Nations offices and in collaboration with the Specialized Agencies, the scope of assistance provided inside South Africa aimed at addressing socio-economic issues, particularly in the areas of education, health, housing and social welfare which may entail the physical presence of the United Nations system in that country".
I am convinced that each United Nations agency represented here is keenly aware of its prospective role. The United Nations High Commissioner for Refugees already has a first hand experience in that regard, and from what I have been able to glean from the background papers prepared by the other agencies, they are certainly all keenly alert to their future respective roles, and ready to make meaningful contributions when called upon to do so.
Your Excellencies,
Distinguished Participants,
It is not my intention to pre-empt in any manner the discussions you are going to have, but I would like to share with you some of my thoughts about the importance of the objectives I just mentioned. Before proceeding to discuss these ideas, however, it is necessary to analyze the present state of the South African economy in general and its negative impact on the oppressed majority.
As is well known, the South African economy is characterized on the one hand, by its recent poor growth record and thus its incapacity to create adequate employment opportunities for the population and, on the other hand, by its profound inequity in distributing the income generated, as well as, more generally, in its wealth distribution. On these two counts, the South African economy is afflicted by major structural and policy distortions.
In spite of some early optimistic forecasts, the South African economy has not yet fully recovered from the prolonged recession of the past years. Indeed, after a zero growth year in 1991 and a three-year recession which started in 1989, there are few signs of sustained recovery, amidst a world economy which is still weak. Recent data on investments, still on a downward trend, shows that business confidence has not been restored. Furthermore, difficulties in agriculture due to the current drought contributed to dampen early optimistic forecasts.
In fact, since the mid-1970s, South Africa's growth has been either small or negative, a situation widely labelled as "stagnation". It is not surprising, therefore, that unemployment and underemployment have reached such dramatic proportions, cumulating up to 30 to 40 per cent of the active population. The stagnation can be explained by many reasons and factors, and there has been extensive debate about it in South Africa. We will hear with great interest the views of the distinguished experts in this audience. Whatever the difference of opinion and analysis about the stagnation, there is, however, a large consensus that apartheid has profoundly distorted the economy. This has to do with the fact that, for decades, the economy has been driven on the demand side by the needs and the purchasing power of a wealthy minority, including a peculiar pattern of imports and domestic production. On the other hand, the South African economy indulged in exporting raw or little-processed mineral commodities, or manufactures produced by cheap labour. All these explain why the economy has gradually been out of line of the main dynamic sectors of international trade, and that it is facing now a major restructuring task.
There had been also many policy mistakes which have further aggravated the bias inherent in the production structures. Firstly, the import substitution policy which further distorted the production structures. Secondly, the major giant conglomerates of the South African economy did not undertake on time the appropriate industrial strategies, preferring to focus instead on financial and commercial operations. Thirdly, many aspects of macro economic policy, for example fiscal policy, have been conducted along racial lines, notwithstanding recent positive measures by the authorities.
While sanctions have clearly contributed to the positive changes in South Africa and to the launching of negotiations, it is clear that they affected the standards of living of the white minority, thus making extremely difficult the mere continuation of apartheid. It is also clear that sanctions have constrained the growth of the economy. It is estimated, for example, that the oil embargo cost around $2 billion per year. Let me recall here the appropriate context and the terms of the alternative for the economic and financial sanctions decided by the international community in 1986. The basic choice is not, and never has been, between apartheid, possibly modified by a few reforms and an economic situation aggravated by sanctions. Such a fallacious choice is only proposed by those who are advocates of apartheid. In fact, the true choice is between apartheid and an apartheid-free society and this is why many South Africans accept sanctions as the only way to promote peaceful changes. The quickest way to remove all the sanctions and restore confidence in the South African economy is to move rapidly towards the establishment of a transitional government and a new non-racial constitution. Only then will the South African society be in a position to undertake the major restructuring efforts required by its economy.
But the economy of South Africa faces also the sensitive problem of redistribution. This is another area of intense debate in South Africa and which is critical to its future. Indeed, it will be extremely difficult to undertake the profound structural changes needed by the economy without addressing the pressing socio-economic needs of the population and the glaring imbalances in the distribution of income, employment and wealth.
Having briefly analyzed the state of the South African economy and its destructive consequences for the majority of the country's people, I wish to make three major observations which I consider relevant to the objectives of this Seminar.
Firstly, I believe that it is of crucial importance for the international community to identify with the plight of black people in South Africa, particularly to assist in changing those socio-economic conditions. In this sense, our Seminar can play an important role in identifying the most urgent priorities, the range of the socio-economic needs of the black population, and the measures to address them.
It is bad enough for black South Africans to be denied their civil rights; it is worse that they also have to face the most severe social and economic hardships, while the white minority enjoys wealth, privilege and absolute political power. It cannot be stressed enough that apartheid never was, and never could be, considered a political system like others. It is not merely that the apartheid system had produced perverse social and economic imbalances in the society. By its nature, intents and purposes, apartheid differs completely from all other forms of organization of society in the sense that it is a totalitarian system of government, constructed around official racial discrimination and encompassing all aspects of political, social, economic and private life. As we know, this system is based on the premise that the security and well-being of the white minority is strictly dependent on the economic dispossession of the black majority and whatever official, constitutional, legal modus operandi that was needed to maintain and promote that minority domination.
The socio-economic impact of apartheid is incalculable and, in many respects, is beyond description in mere words and statistics. The scars of South African society are so deep, visible and intolerable that the healing process may take a long time. Apartheid is above all a human tragedy and an injustice of brutal proportions. The black population of South Africa must have justice and the first step in that regard is to address urgently the most basic needs of the population. This Seminar can send a powerful message to the international community in putting in perspective the immense task facing a future government in the areas of housing, health, education and training, employment and the eradication of mass poverty.
The various and momentous political changes of the last two years are certainly a reflection of the changing perceptions in the white community about their future security and well-being. At long last, it is understood that their freedom does not imply suppressing the freedom of the black majority, that their economic well-being is not guaranteed by the dispossession of others, and that their security is better assured by the security of all. We certainly have come a long way. Such a new spirit has led to the negotiations, in which the leaders speak to each other. But more needs to be done. From the genuine renunciation of white domination and confrontation, South African society should move decisively to healing and reconciliation. And it must be accepted that more will be achieved socially, economically and culturally by all people cooperating together and constructing the building blocks of a new and wholesome South Africa.
But the first step in that process of nation-building, is not only to renounce, once and for all, white domination, but to begin the process of addressing effectively, and with commensurate resources, the socio-economic needs and aspirations of the black majority.
Secondly, there is an intense and lively debate in South Africa about the appropriate policy responses to these enormous socio-economic challenges. It will be most informative for all of us to hear our South African friends describe how they see these challenges being approached and their perceptions of emerging areas of agreement, and of persisting differences, in the policy debates. While it is for the South Africans to reconcile their views and policy stances on these important matters, we are much encouraged by the quality of these debates and the democratic spirit in which they are taking place.
The international community is observing with great interest the positions advocated by the discussions, and it is my hope that the seminar will have the opportunity to review in some detail the broad policy framework that is beginning to take shape in South Africa. In this context, may I take the liberty to make a few comments. The basic objective of all the participants in the debate on South Africa is the social and economic development of all the people of South Africa. While there will certainly be important measures to redress the glaring socio-economic imbalances, the main concern is not to promote conflict between the "haves" and the "have nots"; but rather, as I see it, to initiate a new equitable social and economic framework in which all South Africans will share freedom, seek prosperity and enjoy security.
Furthermore, the situation in South Africa is so unique in its complexity, scale and dimensions that the international community should not only be ready to assist, in whatever way is needed and possible, the process of political transition and democratization, but it should also be attentive to the social and economic realities as perceived by the South Africans themselves. The temptation should be avoided to impose extraneous and inflexible models. I strongly encourage the participants to pay particular attention to the innovative views expressed in respect of, for example, the institutional framework for channelling external assistance, and to encourage a constructive exchange of ideas on this issue.
Although the socio-economic imbalances constitute daunting challenges for any future government, they also represent unique opportunities for constructing a future inspired by a genuinely inclusive spirit, as opposed to the exclusivity of apartheid; one based on mutual interests and benefits rather than one offering unilateral and one-sided advantages; a future that draws on a truly synergetic dynamism among all social components rather than on the apartheid-induced rigidity and stagnation of the social and economic systems. In essence, a democratic society that will permit all South Africans, individually and collectively, to attain their full potential.
Thirdly, once you have identified the major socio-economic priorities and needs, and reviewed, with the help of our South African friends, the kinds of policy responses that they think are needed, there should be a follow-up exchange of views on what the United Nations system can contribute to the efforts of a new South Africa in addressing its socio-economic challenges. In this part of our Seminar, we will listen more to our friends and colleagues of the United Nations system. I do not intend to dwell at length on this aspect of the debate which is the heart of the issues we are considering here. Suffice it for me to say that the United Nations system has been preparing for prompt, effective and concerted action in support of South Africa, within the context and the parametres defined by the relevant General Assembly resolutions.
It is important to note, as indeed has been stressed many times by the General Assembly, that the United Nations Secretary-General is entrusted by the General Assembly with the task of ensuring that the activities of the United Nations system are well coordinated and effective. It will be all the more important to pay careful attention to that aspect of the United Nations assistance as it is called upon to expand rapidly, as and when the criteria on the political situation and the negotiations set by the General Assembly are fulfilled. It is equally important to note that an essential contributing factor to the better coordination of external assistance, including United Nations assistance and bilateral assistance, is the capacity of the recipient country to agree on and define a sound development strategy, and to set in place national coordinating mechanisms that are supported and well understood by external donors. In this context, I await with great interest the outcome of your discussions on the most expedient arrangements for the mobilization of international resources.
It is often pointed out that South Africa has by far the most developed infrastructure on the African continent. This is true. But it is also true that such infrastructures, long built to sustain and service only a fraction of the entire population, are about to come under severe test with the necessary expansion of demands on them. Certainly, even from a layman's perceptions, South Africa's social-welfare amenities as they presently exist cannot cope with the increased demands, if they are not augmented, and more importantly made accessible to all its citizens.
Therefore, as we set about our deliberations here, we must bear in mind that our objective is to help clarify how best the international community can assist South Africans domestically, as they rejoin the community of nations. And, of course, we must not discount the importance of a peaceful and stable South Africa within the context of the Southern African sub-region. Therefore, whatever strategies we advance must take into account the geo-political realities within this sub-region.
I look forward to a free exchange of ideas, and hope that we will all learn from each other in the course of our efforts to serve this common objective.