Special National Congress, 08-10 April 2005

Resolution on State and Economic Transformation for Jobs and Sustainable Livelihoods

The Congress resolves the following in respect of economic transformation:

1. Industrial policy

1.1 Reaffirming the broad approach agreed at the 11th Congress that sees industrial policy as a "… policy-led process of state interventions to drive and promote sectoral growth and development"

1.2 Noting with concern that insufficient progress has been made in the sector processes agreed at the Growth and Development Summit - gender and HIV/AIDS.

1.3 Affirming its views that the need for these processes is now more than ever urgent in view of the job losses being experienced in sectors identified by the GDS as strategic

1.4 Believing that sector processes must define a strategy that prioritises job creation, job security and improving living standards and decent work for workers

1.5 Believing also that sector processes must identify concrete state interventions, support packages and obligations to be placed on capitalists in the sector to take sector processes forward

1.6 Resolves that the central committee must identify ways the SACP can build power and exert influence to drive these processes forward including the consolidation and intensification of a comprehensive HIV/AIDS programme which must be integrated in the economic growth and development strategy.

2. On interest rates and exchange rate policies

2.1 Concerned that the narrow focus of the South African Reserve Bank on inflation targeting is leading to the maintenance of high interest rates and is also contributing to an overvalued currency that is impacting negatively on jobs in key sectors.

2.2 Reaffirming its view that macro-economic policy including monetary policy and inflation targeting should be informed by and subordinate to broader developmental policies.

2.3 Resolves to find ways to exert pressure on this issue.

3. On sustainable livelihoods and cooperatives

3.1 Affirming its view that building sustainable livelihoods among communities being marginalised by capitalism is critical to advancing the NDR, with and for the workers and the poor.

3.2 Calls on the CC to ensure that the proposal for a conference on building sustainable livelihoods is taken forward.

3.3 Calls on government to develop a support programme for cooperatives that acknowledges the priority cooperatives should have over other enterprises in bringing development to workers and the poor.

4. Skills development and human resources

4.1 Calls for an extension and improvement of skills training opportunities made available to workers and the poor.

4.2 Calls, in particular, for skills development programmes to be orientated to people marginalised from the formal capitalist economy and struggling to promote sustainable livelihoods.

4.3 Calls for a programme to provide assistance to persons drawing social security to become involved in sustainable productive activities.

4.4 Reiterates the important contribution that the `know you neighbourhood-basic services for all campaign` can play in this regard.

5. On engendering our perspectives on economic policy

5.1 Resolves that the SACP must strive to improve its understanding of the interrelationship of national, gender and class dynamics, particularly in its analysis of stratification of the working class and the potentiality of the struggles of those involved in casualised, contract, home-based and unpaid family labour.

5.2 Resolves to strive to promote gender equality as a central objective of its economic policy options.

6. Promoting a developmental mandate for State owned enterprises

6.1 Reiterates its view that SOEs, operating according to a public and developmental mandate, are critical to placing the economy on a new developmental growth path.

6.2 Expresses concern that developmental objectives are often in practice, subordinated to profit maximisation

6.3 Calls for a review of mandates of SOEs to ensure that developmental objectives have a stronger impact on the actual performance of these entities.

7. BEE

7.1 Affirms its view that BEE must be subordinate to a broader programme of economic transformation, with and for the workers and the poor.

7.2 Calls for BEE to be genuinely broad based and meaningful for workers and the poor - and for scorecards, charters and other instruments of BEE policy to therefore give due weight to prioritising transfers of resources and benefits to communities, workers, the poor, collective and social sectors.

7.3 Calls for the eradication of BEE fronting and activism around this.

7.4 Affirm its view that BEE processes must contribute to the development of productive forces and placing the economy on a new developmental growth path

7.5 Calls on government to use its leverage to align BEE with developmental industrial policies within a perspective of promoting a developmental state

7.6 Declares that the SACP will resist and oppose any deals that detracts from or undermines these objectives even if they benefit a few black people.

8. Developmental investment

8.1 Noting that the GDS agreed to target the investment of 5% of investible funds in developmental projects that would not necessarily attract profit-seeking investment.

8.2 Noting with concern that this target is nowhere near to being reached.

8.3 Further noting that, the 5% target is already far below than what prescribed assets legislation provided for as minimum percentages for investment by the private sector in developmental projects under apartheid.

8.4 Calls for a summit between key public institutions, like the IDC, PIC and worker representatives on boards of pension and provident funds to lead a developmental investment strategy

8.5 Calls on the CC to take this issue forward including whether the 5% target is appropriate and the need to re-open debate on prescribed assets.

9. On the financial sector campaign

9.1 Noting the important successes and also key challenges facing this important SACP-led campaign.

9.2 Resolves to take this campaign forward by, inter alia:
" Devising ways to take the campaign to and embed it in all structures of the SACP
" Taking up unresolved issues in the Financial Sector Summit Agreement such as the role of the state owned institutions and the deployment of funds agreed to as part of the BEE process in the sector

9.3 We need to take this campaign forward in a focused way to take into account focused needs in rural areas and linked to the land campaign.

9.4 Calls for an amnesty for poor people blacklisted by the Credit Bureaux

10. On the property clause in the constitution

10.1 Calls on the CC to foster a debate on the extent to which this clause impedes the people sharing in the country`s wealth with a view to identify options in this regard.

11. International and regional economic relations

11.1 Notes the continued impact of capitalist globalisation and institutions like the IMF, World Bank and WTO in promoting anti-worker neo liberal policies.

11.2 Notes also that while still powerful and globally dominant, neo liberal ideology and international financial institutions are now more contested than in the recent past.

11.3 Calls on the CC to find ways for the SACP to become more effectively engaged on this terrain of struggle.

11.4 Calls on the CC also to work with allies and supportive institutions to devise a perspective on a progressive working class orientated vision of building regional economic cooperation and integration

12. Translating economic policy perspectives into programmes

12.1 Resolves to develop programmes that translate SACP economic policy perspectives into concrete programmes that can be practically taken forward by SACP provincial, district and branch structures.