Anc Discussion Document - Second Transition

Part E: THOUGHTS ON THE CONTENT AND FORM OF A SECOND

TRANSITION



The need for a second transition over the next fifty years

161. South Africa is approaching the end of its second decade of freedom. During this near 20

years, we have fundamentally transformed the political landscape of this country, and

laid the foundations for progressively meeting basic needs. However, there is also

widespread consensus – expressed in a variety of ways – that our society faces

fundamental challenges that inhibit it from achieving its goal of an inclusive, non-racial

and non-sexist country, and growing consensus that this centres around the triangle of

poverty, inequality and unemployment.

162. Furthermore, there seems to be agreement on the symptoms as diagnosed by the NPC:

too few people work; the standard of education of most black learners is of poor quality;

infrastructure is poorly located, under-maintained and insufficient to foster higher

growth; spatial patterns exclude the poor from the fruits of development; the economy

is overly and unsustainably resource-intensive; a widespread disease burden is

compounded by a failing health system; public services are uneven and often of poor

quality; corruption is widespread; and South Africa remains a divided society.

163. There is much less consensus about the causes of this situation (explored in Part B) or

on what to do about this situation. Approaches range from a plea for the state to ensure

less regulation (and taxes), to a belief that if only we can implement our policies better,

we will address these challenges.

164. However, based on our understanding of the achievements of the last eighteen years,

the balance of forces and the challenges we face, we believe that the time has come to

build a new national consensus for the next 50 years. This consensus should lay the

basis for a second transition of social and economic transformation, building on the

foundation of our political transformation.

165. Why a second transition and not simply a continuation of what went before? In the first

instance, our first transition was characterised by a framework and a national consensus

that may have been appropriate for a political transition, but has proven inadequate and

even inappropriate for a social and economic transformation phase.

166. Secondly, the balance of forces at the time of our transition in the words of Gelb (13)

“ruled out some options and weighted choices towards others”, thus the “negotiated

nature of the transition meant that capital reform would necessarily be an incremental,

market-focused process, engaging with the current owners of capital”. This meant an

implicit bargain, involving the ANC committing to macroeconomic stability and

international openness, and white business agreeing to participate in capital reform to

modify the racial structure of asset ownership and to invest in national priorities. Thus

the 2000 NGC document already then asked the question “should we be satisfied with

merely maintaining and tinkering with the so-called ‘modern sophisticated economy and

infrastructure that the white man bequeathed us’ or should we search for bold and

creative solutions?” There is agreement that although we have liberalised and integrated

into the global economy and we have macro economic stability, the structure of the

apartheid colonial economy has remained the same, and that in this form, it is incapable

of fostering either higher or inclusive growth.

No comments: