NOTES FOR LUNCH WITH EU AMBASSADORS

 

1. The second decade of the new SA will be more challenging than the first because it will deal with economic and social transformation.

 

2. The ANC foresees that this will not be an easy process:

1. 1. According to the  ANC Today of 21 January the ANC sees a looming ‘struggle’ that will be ‘as demanding and bruising’ as the struggle for a democratic and non-racial South Africa – although ‘it will not be fought with guns, bans, harassment by state organs’ as had happened during the apartheid years.   It believes that this “historic political and ideological confrontation”  will determine “what our country will look like at the end of its Second Decade of Liberation.”
   2. According to the ANC’s 2002 Strategy and Tactics document ‘this is a continuing struggle which, as a matter of historical necessity, will loom ever larger as we proceed along the path of fundamental change. Because property relations are at the core of all social systems, the tensions that decisive application to this objective will generate, will require dexterity in tact and firmness to principle’.

1. When he addressed the Sudanese National Assembly at the beginning of January 2005, President Mbeki observed that while South Africa had not experienced violent social conflict since 1994, there was “perhaps what we might describe as a cold rather than a hot war, conducted by those who are unwilling to accept the end of white minority rule”

1. 1. In a speech in September 2004, Premier Rasool appeared to predict that South Africa would soon be entering a phase of increasing black/white confrontation as the ANC pursued its ideal of social justice.

 

3. The great majority of white South Africans have shown that they are prepared to accept change. Most also accept the need for a balanced process of BEE and affirmative action.  However,  unlike the situation with SA’s constitutional transformation, whites have not been consulted with regard to the principles and approaches underlying social and economic transformation.

 

4. As a result, there is confusion, deep concern and a growing gap between the politically correct sentiments they express and their private perceptions and actions. Among other negative consequences that we can anticipate are

1. 1. An outflow of expertise and experience from the private and public sectors – (which has already had a  visibly detrimental affect on public service delivery – particularly at municipal level);
   2. Reticence to start new ventures (who would want to take the risk of starting a new company if there is a likelihood that part of it will have to be surrendered to artificial BEE partners?);
   3. A reluctance to invest;
   4. Increasing pressure on minority family businesses as they are cut out of government and private sector procurement.
   5. Many whites feel alienated and are withdrawing from public involvement.

 

5. There is an urgent need for communication between government and representatives of minority communities to try to reach consensus on transformation issues.

 

6. Minorities will also need support and encouragement during the decade that lies ahead. There is a perception that foreign governments have adopted an almost ‘arms-length’ approach to minorities because of

1. 1. their wish to concentrate on relations with the government and with the majority;
   2. the relative affluence of most minorities; and
   3. associations with the past

7. However, the second decade will not be a success if minorities are not part of the process.
8. We need a transformation process that conforms with the constitution and that will comply with the following imperatives:

1. 1. It must urgently and effectively address the needs of the 50% of South Africans who have not benefited from the new SA – and it must lead to more representative public institutions.
   2. It must not breach the global economic and political consensus.
   3. It must not undermine healthy intercommunity relations.