1. INTRODUCTION
The ANC’s 4th National Policy Conference is being held during a year which also marks the people’s glorious movement celebrating its 100 years of existence. The centenary of the ANC is indeed a special period which also represents the beginning of a new era and the end of another.
The centenary celebrations present an opportunity for the ANC to assess the impact of its policies in terms of the transformation of South African society from colonial rule and domination of a special type. This form of oppression was characterised by the land disposition of indigenous people as well as their total
exclusion from all forms of economic freedoms and participation otherwise.
It is against this background that the discussion document focuses on the progress made towards the attainment of the total liberation of our people and the creation of a non-racial, non-sexist, democratic and prosperous South Africa as envisioned by the founding leaders of our glorious movement fifty-six years
ago in the Freedom Charter.
The policy discussion process cannot proceed without remembering the one hundred years of collective conviction, commitment and resolve of the founding fathers and mothers of our movement to bring all fellow South Africans closer to the main strategic objectives of our National Democratic Revolution.
The year 2012 epitomises the story of countless sacrifices and immeasurable contributions made by heroes and heroines of our struggle; it is indeed a story of lifetime sacrifices, commitment, humility and discipline. It is a proud moment that is inextricably linked to the history of our struggle for freedom, non-racialism and
democracy. A moral and revolutionary duty is thus imposed upon those of us who have been privileged to serve at this historical moment and we are charged with the weighty task of preserving its culture, values and traditions.
The 53rd National Conference of the ANC must, therefore, emerge with policies and programmes that will ensure the relevance of the movement in the minds and hearts of the people of South Africa as well as those of the continent over the next one hundred years. Such policies must continue to serve as a source of inspiration to our people to realise total economic and political emancipation of black people in general and Africans in particular.
As we approach the end of the second decade of the ANC democratic government, we must be conscious of the fact that despite all of the achievements made thus far; we are still faced with the huge responsibility of
accomplishing unfulfilled tasks for the majority of the millions of South Africans. The seeds planted by the long walk to freedom can only sprout within an environment that is truly conducive to that of a united, non-racial, non-sexist, democratic and prosperous society. This is representative of a society in which all citizens will be measured by their humanity without attributing material regard to their race, gender and/or social status.
accomplishing unfulfilled tasks for the majority of the millions of South Africans. The seeds planted by the long walk to freedom can only sprout within an environment that is truly conducive to that of a united, non-racial, non-sexist, democratic and prosperous society. This is representative of a society in which all citizens will be measured by their humanity without attributing material regard to their race, gender and/or social status.
The 1994 democratic breakthrough provided the ANC as a liberation movement with the opportunity to pursue economic policies, which holds inclusive growth, development and wealth distribution at its core in order to bridge the inexorable gap between the rich and the poor within our country.
It has thus been identified that within this context, there exists a definite need to amplify the role of Development Finance Institutions (DFIs) and State-owned Enterprises (SOEs) as instruments for significantly advancing the levels of economic transformation within South Africa.
2. THE SCOPE OF POLICY PAPER
The National Executive Committee has developed a framework for all policy papers. The policy papers must be guided and focus largely on the following questions:
i. What are the existing ANC policies?
ii. What decisions have been taken?
iii. Has the policy been implemented?
iv. If not, does the problem lie within the policy or the implementation thereof or is it perhaps a combination of these two factors?
v. How are the new proposals aligned to that of those advocated by the National Development Plan and the New Growth Path?
vi. What is the ANC’s strategy with respect to the manner in which it responds to this situation?
vii. Does the conference need to adopt any new policies in this area?
The scope of this policy paper covers all publicly-owned commercial entities and/or SOEs & DFIs; parastatals in all spheres of government; national, provincial and municipal entities as well as other state institutions that operate in any other commercial manner not covered by the aforementioned. The discussion paper shall, however, nuance largely on those entities that are commercially inclined in nature.
Considering that there is an absence of a common comprehensive policy framework that guides SOEs and DFIs. This discussion document, amongst other factors, seeks to address policy gaps and, thereby suggest new policy interventions that have the ability to shape and guide the role and architecture of SOE and DFIs. It is, therefore, important that the policy conference and the upcoming 53rd National conference considers new policy proposals articulated within this discussion paper.
The discussion document seeks to provide strategic direction for economic transformation by taking into account the role of SOEs and DFIs as drivers and agents of economic restructuring to advance the objectives required by the successful creation of a developmental state, as was directed by the 52nd National Conference Polokwane Conference resolutions.
Secondly, the policy paper assesses current policies with a view of enforcing optimum alignment and co-ordination of mandates and operations of SOEs as well as DFIs to the broader objectives of a developmental state. The broader aim must be to restructure the economy in order to create decent job opportunities, improve the current disparities with respect to income distribution levels, enhance the quality of service delivery and address social justice concerns, in an all encompassing manner.
Thirdly, the policy paper explores viable ways and means to strengthen Public- Public-Partnership amongst and within the major state owned enterprises and Development Finance Institutions such as the DBSA, the IDC, pension fund institutions, ESKOM, PRASA, Transnet and others.
Fourthly, SOEs and DFIs are not created to maximise profits or incur losses, rather their existence is for the purpose of driving the development agenda. The dual mandate of SOEs and DFIs is to achieve a balance between the required level of self-funding and undertaking developmental projects that the private sector would ordinarily not. These policies must ensure that the SOEs and DFIs which are tasked with costly development mandates are strategically positioned to generate the revenues sufficient to cover the costs associated with executing their respective, but interrelated, mandates.
Fifth, the policy perspective must assess and interrogate the link between country savings levels and the funding of development. Emphasis will need to placed on mobilising national savings (such as pension funds) in order to support the strategic and long-term investment programmes. The development link between the quantity that a country saves and the manner in which it invests these savings is a critical success factor across all developmental states; as is evidenced by the East-Asian experience.
Lastly, the policy perspective should assess the manner in which a developmental state through the efficient utilisation of the strength of SOEs and DFIs, support and direct private sector investments to productive sectors of the economy to stimulate manufacturing as well as the promotion of entrepreneurship development programmes that will enhance the levels of deracialisation in existence. This will also seek to facilitate the creation of new firms and industries (black industrialist in nature) as opposed to tenderdependent economic transformation.
Broadly, the question we are expected to answer in the Policy Conference is: “what role should SOEs and DFIs play to underpin the role of the state in directing national economic development through the mobilisation of domestic and foreign capital and other social capital formation initiatives or partnerships to
achieve our stated goals? ” The aforementioned question must be considered within the context of the current global economic environment, which is characterised by volatile, turbulent and uncertain global financial markets accompanied by a weak demand in the export of goods and service due to the many economic recessions currently in force.
The key objective of this policy discussion paper is to ensure that state-owned commercial entities operate as powerful instruments of economic transformation and remain firmly within the control of the state in order to have the capacity that is capable of responding effectively and efficiently to the developmental agenda of the ANC government.
2. THE SCOPE OF POLICY PAPER
The National Executive Committee has developed a framework for all policy papers. The policy papers must be guided and focus largely on the following questions:
i. What are the existing ANC policies?
ii. What decisions have been taken?
iii. Has the policy been implemented?
iv. If not, does the problem lie within the policy or the implementation thereof or is it perhaps a combination of these two factors?
v. How are the new proposals aligned to that of those advocated by the National Development Plan and the New Growth Path?
vi. What is the ANC’s strategy with respect to the manner in which it responds to this situation?
vii. Does the conference need to adopt any new policies in this area?
The scope of this policy paper covers all publicly-owned commercial entities and/or SOEs & DFIs; parastatals in all spheres of government; national, provincial and municipal entities as well as other state institutions that operate in any other commercial manner not covered by the aforementioned. The discussion paper shall, however, nuance largely on those entities that are commercially inclined in nature.
Considering that there is an absence of a common comprehensive policy framework that guides SOEs and DFIs. This discussion document, amongst other factors, seeks to address policy gaps and, thereby suggest new policy interventions that have the ability to shape and guide the role and architecture of SOE and DFIs. It is, therefore, important that the policy conference and the upcoming 53rd National conference considers new policy proposals articulated within this discussion paper.
The discussion document seeks to provide strategic direction for economic transformation by taking into account the role of SOEs and DFIs as drivers and agents of economic restructuring to advance the objectives required by the successful creation of a developmental state, as was directed by the 52nd National Conference Polokwane Conference resolutions.
Secondly, the policy paper assesses current policies with a view of enforcing optimum alignment and co-ordination of mandates and operations of SOEs as well as DFIs to the broader objectives of a developmental state. The broader aim must be to restructure the economy in order to create decent job opportunities, improve the current disparities with respect to income distribution levels, enhance the quality of service delivery and address social justice concerns, in an all encompassing manner.
Thirdly, the policy paper explores viable ways and means to strengthen Public- Public-Partnership amongst and within the major state owned enterprises and Development Finance Institutions such as the DBSA, the IDC, pension fund institutions, ESKOM, PRASA, Transnet and others.
Fourthly, SOEs and DFIs are not created to maximise profits or incur losses, rather their existence is for the purpose of driving the development agenda. The dual mandate of SOEs and DFIs is to achieve a balance between the required level of self-funding and undertaking developmental projects that the private sector would ordinarily not. These policies must ensure that the SOEs and DFIs which are tasked with costly development mandates are strategically positioned to generate the revenues sufficient to cover the costs associated with executing their respective, but interrelated, mandates.
Fifth, the policy perspective must assess and interrogate the link between country savings levels and the funding of development. Emphasis will need to placed on mobilising national savings (such as pension funds) in order to support the strategic and long-term investment programmes. The development link between the quantity that a country saves and the manner in which it invests these savings is a critical success factor across all developmental states; as is evidenced by the East-Asian experience.
Lastly, the policy perspective should assess the manner in which a developmental state through the efficient utilisation of the strength of SOEs and DFIs, support and direct private sector investments to productive sectors of the economy to stimulate manufacturing as well as the promotion of entrepreneurship development programmes that will enhance the levels of deracialisation in existence. This will also seek to facilitate the creation of new firms and industries (black industrialist in nature) as opposed to tenderdependent economic transformation.
Broadly, the question we are expected to answer in the Policy Conference is: “what role should SOEs and DFIs play to underpin the role of the state in directing national economic development through the mobilisation of domestic and foreign capital and other social capital formation initiatives or partnerships to
achieve our stated goals? ” The aforementioned question must be considered within the context of the current global economic environment, which is characterised by volatile, turbulent and uncertain global financial markets accompanied by a weak demand in the export of goods and service due to the many economic recessions currently in force.
The key objective of this policy discussion paper is to ensure that state-owned commercial entities operate as powerful instruments of economic transformation and remain firmly within the control of the state in order to have the capacity that is capable of responding effectively and efficiently to the developmental agenda of the ANC government.
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