Anc Discussion Document - Second Transition

Part C: THE BALANCE OF FORCES IN 2012

71. We noted in Strategy and Tactics 2007 that the building of a National Democratic Society is a conscious construct (as was the case for the struggle against apartheid colonialism), dependent on conscious action and taking place in global and national conditions that are not of our choosing. As such we have to master the science and art of assessing the objective conditions and subjective factors that, together, provide opportunities and threats that render particular preferred actions possible.

72. More specifically, we must understand the terrain on which we need to undertake our
Second Transition, in terms of:

What are the domestic balance of forces today?
Who are the motive forces that must drive this phase? What are their
strengths and weaknesses?
What other forces in society should we mobilise, and how do we build
national consensus around our national vision?
What are the forces and tendencies opposed to our programme of socioeconomic
transformation, and how do we neutralise or isolate these?
What is the global context in which we operate and what opportunities and
threats does this context present?
73. Finally, are the subjective and objective conditions conducive for a qualitative leap
forward in terms of a National Democratic Society? What are the applicable lessons from
our political transition?


Drivers of change: the motive forces

74. Strategy and Tactics 2007 articulates the two imperatives that inform our approach to
the forces for change in the following manner. The first is the responsibility of the ANC
to mobilise all South Africans towards the ongoing transformation of the country. The
second is recognition that there are national and social forces within the country that
objectively stand to gain from transformation, and therefore should constitute the
motive or driving forces for change. At any point in time the ANC has to unite the nation,
as well as lead the motive forces. This is the major reason for our conscious decision to
remain a liberation movement and not simply become a political party.

75. Before 1994, our historical definitions of ‘the motive forces’ and ‘the enemy’ were as
follows:

“…the liberation movement characterised Africans in particular and Blacks in general as
the motive forces of the NDR. These communities were, by law, defined outside of the
political system except as servants of white minority domination. In class terms, they
were made up of workers and the rural poor, the middle strata including small business
operators, and real or aspirant capitalists (S&T, par. 95)

“The liberation movement defined the enemy, on the other hand, as the system of white
minority domination with the white community being the beneficiaries and defenders of
this system. These in turn were made up of workers, middle strata and capitalists.
Monopoly capital was identified as the chief enemy of the NDR. It was also emphasised
that apartheid was not in the long-term interest of the white community.” (par. 96)

76. Eighteen years into democracy, does this still apply? Strategy and Tactics 2007 notes
that although the character of the NDR remains the same, the central task has shifted
towards the eradication of the socio-economic legacy of apartheid colonialism, and will
remain so for many years. This socio-economic legacy is linked to the basic
contradictions that the National Democratic Revolution seeks to resolve. These
contradictions include the national question, the issue of super exploitation, and
patriarchal relations.

The national question and socio-economic transformation

77. The contradictions that the NDR seeks to resolve are expressed firstly in national terms,
the liberation of Africans in particular and blacks in general. After 18 years of
democracy, and in the context of social and economic transformation, the resolution of
the national question remains critical.

78. The deracialisation of our polity, the extension of basic services and affirmative action
have helped to build the confidence of our people that a non-racial and non-sexist state
is indeed for them. However, the majority of our people live in townships and rural areas
that are economically depressed, and social stratification and inequality within the black
community is increasing. The vast majority of poor households remain black, rural and
female.

79. According to the NPC, the black middle class has grown by 30% in 2005, adding another
421 000 black middle class individuals to SA’s middle-income layer, and bringing the
black section of the population’s share of the middle class to just under one third.

80. Black economic empowerment, enterprise development and efforts to build social
consensus around deracialising and broadening ownership and control of the economy
have had some effects. The Mining Charter, for example, set modest targets of black
ownership of 15% by 2009 and 26% by 2014, a 40% representation of historically
disadvantaged South African in management ranks, and a commitment from the mining
industry to improve mineworkers’ housing, literacy and skills. Eight years after the
adoption of the Charter, black ownership of the JSE’s top 25 mining companies was
recorded at about 5% at the end of March 2010 (5).

81. Another indicator of the national question and socio-economic progress is income
distribution by race. Income of any group includes wages, income from assets (i.e.
income from other factors of production, capital, land and entrepreneurship) as well as
income from social grants. Table 1 below shows that on average per capita incomes
have increased for all groups since 1993.

82. In terms of racial distribution of per capita income, African and coloured income levels in
2008 were still only 13% and 22% respectively of white per capita income, compared to
10.9% and 19.3% in 1993. The income gap for Indians has narrowed, with Indian per
capita income in 2008 standing at 60% of those of whites as against 42% in 1993 (6).
Per capita income of whites, according to the NPC Diagnostic Report, grew by 6% per
year since 1995, whereas per capita income of Africans only grew by 2% during the
same period.

Table 1. Per capita personal income by race group
Year White Indian Coloured African Average

Per capita income in constant 2000 Rands:
1993 46 486 19 537 8 990 5 073 11 177
1995 48 387 23 424 9 668 6 525 12 572
2000 56 179 23 025 12 911 8 926 16 220
2008 75 297 51 457 16 567 9 790 17 475

Relative per capita personal incomes (% of White level):

1993 100 42.0 19.3 10.9 24.0
1995 100 48.4 20.0 13.5 26.0
2000 100 41.0 23.0 15.9 28.9
2008 100 60.0 22.0 13.0 23.2
Source: from Liebbrandt et al (2010:13)

83. Among the main reasons for slow growth in per capita income among blacks in general
are the persistently high rates of unemployment and growing under-employment, and
the fact that black income from assets also lags behind.

84. The NPC (2010:9) further drew attention to the fact that between 2001 and 2010, per
capita income grew by 2% annually, with per capita income falling by 4% during the
recession, and thus:

“Other developing countries such as Mexico, Korea and Malaysia overtook South Africa’s
level of income per capita in the 1980s. If we wanted to achieve a similar per capita
income to Poland or Portugal today, it would take 35 years at current growth rates, but if
per capita incomes grew by 4 percent annually it would take just 17 years. At our current
GDP per capita growth, we would need 90 years to achieve a level similar to the United
States.”

The working class
85. The Strategy and Tactics defines black workers as both employed and unemployed,
and urban and rural. Their tasks in this phase of the NDR are to:
advance the struggle for quality jobs and job security;
build class and national solidarity among all sectors of workers – casualised, informal
and unemployed;
ensure strategic contribution to the building of the developmental state, including
socio-economic development, provision of services and facilitating people’s
participation;
direct and expand workers’ institutional capital towards national development;
engage capital (and the state) in ensuring a national developmental vision that
contributes towards thoroughgoing socio-economic transformation;
build solidarity with white workers to contribute towards national development and
social justice;
fight patriarchal relations of production and reproduction that continue to oppress
Women

86. The black working class is also expected to lead in defining a common national vision
and implementing a common programme of action among all the motive forces and the
nation as a whole – thus exercising working class leadership.

Discussion questions

What have been the major changes impacting on the working class since our
transition to democracy?
The trade union movement and our ally Cosatu are the most important organised
formations of workers. What role does the trade union movement play in the
process of transformation, and what are its strengths and weaknesses?
What about the unemployed, those in rural areas and women workers?
What is the role of the SACP in relation to the tasks of the working class?
How should working class leadership find expression in the ANC today?
How should the national democratic state relate to the working class?

The rural poor

87. Strategy and Tactics 2007 highlighted the importance of the rural poor as part of the
working class – mostly unemployed, landless, involved in survivalist farming, or farm
workers. They therefore face the tasks of:

contributing to defining and implementing agrarian reform, land reform, food
security and rural development;
enhancing struggles for rural workers’ rights, especially farm workers;
changing patriarchal relations of production and reproduction that continue to render
women second-class citizens;
engaging white compatriots to further agrarian and land reform and rural
development.

Discussion questions

Are our ward based ANC branches rising to the occasion of organising this sector of our
people? What other organisations and social forces do we find among this section of the
motive forces that we must engage with?
As we prepare for a centenary since the 1913 Land Act, what is the state of land reform in
your region and municipality?
Our integrated rural development programme emphasises the building of emerging and
small-holding farmers. What are the tasks of the Alliance in this regard?
What are the concrete tasks to build a non-sexist society in rural areas?
How has the situation of farm workers changed over the last 18 years and what other
practical steps are necessary to improve their situation?
What other forces must we engage to take forward the programmes of agrarian and rural
development?

The middle strata

88. As part of the motive forces, the middle strata constitute a critical resource of the
NDR. They include the intelligentsia, small business operators and professionals. Their
tasks are to:

use their skills and sectoral location to advance socio-economic transformation;
foster progressive intellectual discourse on the values, culture and challenges of our
new society;
contribute towards equality, human rights and social justice.

89. The middle strata broadly, but the intelligentsia in particular, play an important role in
shaping ideas and perceptions in society. Their ongoing engagement, and their
deliberate recruitment into the movement, should be part of not only influencing this
strata, but also ensuring a constant flow of fresh and challenging ideas within the ANC
and society.

90. A section within this stratum that we should also pay particular attention to are students
and young professionals, entrepreneurs and cultural activists. Many of them, having
been the first generation experiencing integration in education (at schools and
universities), have less of the hang-ups of the older generations, are more confident
with a definite global sense and are technology savvy. They are the direct beneficiaries
of freedom and our affirmative action policies. The ANC Youth League and the
progressive student movement needs to improve its mobilisation of this sector.

91. This sector also includes students at universities and futher education and training (FET)
colleges, the future professionals, public servants and artisans. The state of the student
movement is therefore particularly important. Consideration also needs to be given to
the proposals from the ANC Youth League of a more deliberate policy of developing this
young cadre, including sending many, many more of them out of the country for further
studies and experience, something which our bilateral relations with many countries
should facilitate.

Discussion questions

Is growing the middle class part of our national democratic tasks, and what should be
done over the next few decades to further expand this strata?
A large part of the new middle strata is in the public sector. What role should they play
to advance the cause of social transformation?
Are the core values represented and articulated by different sectors within this strata the
values of the National Democratic Society we seek to build, and why is this the case?
What are the challenges faced by this strata, and is the ANC organised to engage and
organise them effectively?

The core of a patriotic bourgeoisie?

92. We have, though in a limited form, expanded the number of emerging black
capitalists as a product of democratic change and a direct creation of the task of
deracialising the economy. Given this objective interest they have been regarded as part
of the motive forces. They must therefore contribute towards changing the structure of
the economy, adding value to:

industrialisation and the development of national productive capacity;
research, innovation, productivity, technology and skills development;
job creation, labour intensive sectors and local economic development;
equality and social justice;
regional and continental economic integration; and,
South-South economic cooperation.

93. However, the dependence of this stratum on white and multinational capital and the
state, makes some susceptible to pursue narrow interests, which may not always be in
the interest of economic transformation. The last few years have seen fierce debates
about our broad-based black economic empowerment strategy (BBBEE). Relevant to this
discussion is the fact that many in this stratum may be wealthy, but it is wealth based
not on involvement in production and the expansion of productive capacity, but on
holding shares in existing companies.

94. The development of this stratum is therefore closely linked to locating our BBBEE policies in the context of economic transformation and growth through building companies in the priority and labour intensive sectors identified in industrial policies, and contributing to
localisation, technology and skills development, and fixed capital formation.

Discussion points

Is this strata organised in a manner that will help take forward these tasks, and
are we engaging them to play this role?
What role should this strata play with respect to white capital and the tasks of
developing the productive forces, industrialisation and job creation?

What about the various strata and classes in the white community?

95. Democratisation and the success of a National Democratic Society are in both the short
and long-term interest of white South Africans. This is however not always reflected in
their national consciousness or voting patterns, with many still feeling threatened by
transformation, actively campaigning against it, underpinned by skepticism about the
capabilities of a black government. Some of our own actions and a sensationalist media
also play into these perceptions. These contradictions take place in a democratic order.
We are therefore no longer locked in mortal combat, but engaging in legitimate
discourse and electoral politics.
96. The ANC must therefore continue to engage with various strata and interests within the
white community on our national vision.

Our approach to private capital

97. Strategy and Tactics describes the relationship with private (mainly white) capital as
unity and struggle of opposites – of cooperation and contestation – in the quest to
transform the structure of, and grow, the economy.

98. Globally – whether it is in the Asian developmental states, the social democratic states,
or even socialism with Chinese characteristics – in order to achieve a national
developmental vision, the participation of private capital is inevitable. Such participation
is sought voluntarily through engagement and social pacts, combined with regulation,
through allocative capital and through the state leading and directing industrialisation
and the development of priority economic sectors, including ownership in one form or
another in such sectors.

99. It includes challenging and engaging monopoly capital to the extent that they are an
obstacle to our national vision (by, for example, blocking new entrants into various
sectors of the economy) as well as with regards our quest to build social justice and
reduce inequality.

100. During our political transition, the National Party as the political representatives of the
white ruling bloc was a critical part of the political transition. During a socio-economic
transition, white capital will have to be a critical part of consensus on a socio-economic
transition. And, as with the political negotiations, they will have their own agenda and
tactics, and we will have to engage and struggle to ensure that our vision forms the
basis of national consensus.

101. This requires an ANC that continues to deepen its understanding of the political economy of the country and the changing nature of capital in South Africa, including the
financialisation of companies, the role of trans-national corporations, and the dynamics
of different economic sectors and markets (local, national, regional and global) so as to
implement appropriate approaches.

Obstacles to transformation

102. Opposition to political consolidation and socio-economic transformation may not only
come from various national or social strata and classes. It may also be the result of
material (our productive capacity and state of industrialisation, global productive forces,
availability of agricultural land) and subjective conditions (e.g. a low-skilled workforce,
poor performing education and health systems, or a culture of greed and corruption).

103. We must therefore identify and engage with these factors as they relate to the central
task of the NDR in the current phase – i.e. our second transition of socio-economic
transformation. This is an important part of our analysis of the balance of forces, so as
to develop strategies that are realistic and aimed at achieving our objectives, even when
we have to take mitigating steps.

104. The NPC Diagnostic report (2010) explored many of these obstacles. Firstly, it identified a list of indicators of ‘societies in decline’, noting that these are to various degrees
relevant to South Africa today:
Rising corruption.
Weakening of state and civil society institutions.
Poor economic management.
Skills and capital flight.
Politics dominated by short-termism, ethnicity or factionalism.
Lack of maintenance of infrastructure and standards of service.

105. More specifically, it identified the following key obstacles to movement forward in South Africa today:
Widespread poverty and extreme and persistent inequality.
Poor and substandard quality of education for the majority.
Poorly located and inadequate infrastructure, which limits social inclusion and
faster economic growth.
A highly resource-intensive and unsustainable growth path.
Spatial challenges that continue to marginalise the poor.
An ailing public health system that confronts a massive disease burden.
Uneven performance of the public service.
Corruption, which undermines state legitimacy and service delivery.
South Africa remains a divided society

Discussion points

Are we beginning to experience elements of ‘a society in decline’ as defined by the NPC
and why?

Other macro trends

106. There are other macro trends that may not necessarily be obstacles, depending on policy responses.

107. Our youth bulge: The first is the demographic changes in South Africa. We, like many
developing countries, have a youth bulge, meaning that we have a large proportion of
young people relative to the overall population. Unlike other developing countries where
the bulge usually lasts one generation, ours may stretch over more than one due to the
impact of the AIDS epidemic.

108. Developing countries have and can reap a ‘demographic dividend’, because the
proportion of the population active in the labour market is large relative to those who
are not. A demographic dividend occurs when household dependency ratios are low,
income per head rises, allowing for greater investment per capita in social development,
the economy and in the household. The demographic dividend is only realised through
policies that ensure appropriate levels of education, health and economic participation. If
not, the opposite result may ensue – a large population of teenagers and young adults
who are unemployed and alienated.

109. The situation of young people in South Africa, and particularly of youth unemployment,
has been described as explosive. Every year, around a million young people leave or
drop out of school, and more than half of them are unable to find jobs or further
education and training opportunities, and join the ranks of the unemployed or
discouraged. And yet, this represents us with a great opportunity, to tap the energy and
creativity of the new generations.

110. Migration and spatial development issues: Another macro trend described in the NPC
Diagnostic Report is that of migration. The challenge of rapid urbanisation is something
planners and local and provincial governments deal with on a daily basis. Our focus has
been on the challenge this poses to urban and peri-urban areas, but the NPC also noted
other migration trends in rural areas, including considerable mobility, the expansion and
densification of rural informal settlements, and an emerging trend of rural populations
concentrated along transport corridors.

111. The challenge this poses for both urban and rural development, and the type of policy
trade offs that may be required are also listed in the NPC report. The ANC Youth League,
for example, in its ‘clarion call’ raises the need for us, in addition to our strategies for the
current metros and rural areas, to also identify at least nine or ten other secondary cities
that we want to develop and grow over the next two decades in a deliberate and
planned fashion.

112. Apart from inward migration, there is also migration from other countries, including but
not exclusively from the African continent. Our migration policy has to situate this in the
global, regional and national context, so that we develop sustainable and cooperative
approaches with other affected countries.

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