The Central Committee of the SACP met in Johannesburg from 31 March to 2 April. Substantial discussion was devoted to the present economic situation and the prospects for sustained growth, job creation and development.
ECONOMIC CHALLENGES
The CC noted the more positive signs of growth in the economy, with projected average
growth of 3,5% for the next
three years. This projected growth offers us an important window of
opportunity. However, decisive action is required to ensure that this growth turns
out to be more than just temporary, modest and cyclical.
The challenges of chronic structural unemployment, poverty and inequality require
sustained and increased growth rates
linked to development. The key question is: what is to be the principal accelerator of
growth and development? The CC noted that since mid-1996 hopes had been vested in
attracting substantial flows of foreign direct investment (FDI) through a
programme of self-imposed fiscal austerity. Whatever contribution the austerity programme
may have made to stabilisation, FDI flows have been disappointing and, indeed, financial
liberalisation has seen a net outflow of capital.
Without for a moment denying the importance of attracting FDI, the CC agreed that much greater emphasis needed to be placed on the mobilisation and co-ordination of budgetary, parastatal and domestic private capital for a more concerted infrastructural development approach.
In underlining the need for government to play a much more pro-active industrial policy
role, the CC noted with concern
the more than R1 billion under-spent by the Department of Trade and Industry last
year. The DTI’s commitment to major restructuring was also noted and welcomed.
The CC resolved that, in a variety of ways, the SACP would endeavour to play a much
more active role in the budgetary process. We will, in the context of our alliance, seek
to shape budgetary priorities that are more aligned with our vision of infrastructural
development and industrial policy programmes as the key accelerator for growth, job
creation and development.
Such a growth path needs to be powered by a mix of budgetary, parastatal, co-operative and
domestic private capitals, while
seeking to attract FDI at the same time. All of this requires an economically active
state that is capable of and willing to plan, co-ordinate and discipline the capital
resources of our society. In this context, the CC received several reports on the ongoing
transformation of the public sector, and of the civil service.
The CC also received a report on work in progress in government around shaping policy on the restructuring of state assets. While the process is ongoing, and the SACP is contributing to it, the CC expressed general satisfaction that there was a broad agreement across the alliance that parastatals, particularly those in key social delivery sectors, needed to remain entirely or, at the very least, substantially within the public sector.
LOCAL GOVERNMENT
The CC discussed ongoing local government transformation and the implications of this
for more concerted local-level democracy and transformation. The CC connected its
earlier discussion on the economy to local-level transformation – here, too, there is
a need to use democratic institutions to mobilise public, parastatal, co-operative and
private sector resources around a coherent developmental approach. It was in this
context that the CC approached the vexed question of Public Private Partnerships
(PPPs). Where unavoidable, these should be implemented with the above strategic
understanding, and should be seen as one possible variant of Municipal Service
Partnerships. Too often, so-called PPPs have amounted to
little more than privatisation exercises in which cash-strapped municipalities have sold
off their resources, and have lost any ability to exercise strategic leverage in the
process.
The CC discussed and developed SACP plans for our participation in the ANC-led local government election campaign.
THE STATE AND THE ECONOMY
Running through all of our discussions and decisions was a commitment to strengthen,
democratise and extend the public
sector to enable the state to drive a developmental agenda.
A report was also tabled by the CC’s State Transformation Commission on Igoli
2002. The report highlighted a concern
that, in its initial conception, a package of financial emergency measures (many of which
may well have been necessary) were conflated with a supposed vision of transformation and
development for the city of Johannesburg. This got the whole process off on a wrong
footing. The report also highlighted the role that SACP provincial level structures
had since played in seeking to engage constructively with the transformation of the
city. Important advances have been made, in particular the commitment to
providing each household its first 6 kilo-litres of water free of charge. However, serious
problems persist and the CC resolved that, at whatever appropriate levels, the SACP should
do everything to ensure constructive outcomes that succeed in
mobilising the great majority of Johannesburg’s citizens around a developmental
vision of their city.
CHRIS HANI COMMEMORATION RALLIES
The CC approved a series of commemorative rallies and other events nation-wide that will be taking place over the coming ten days to mark the 7th anniversary of the assassination of our late-general secretary, cde Chris Hani. The events, in every province of the country, will be taking place under the slogan “Defend Jobs for the Eradication of Poverty.” The main national rally will be at Lulekani Stadium, Phalaborwa, Northern Province on 09 April 2000 and will be addressed by the Premier of the Northern Province, and by the SACP General Secretary.
02 April 2000
CONTACT
Mazibuko K. Jara (surname Jara)
Department of Media, Information & Publicity
South African Communist Party
COSATU House
No. 1 Leyds Street - 7th Floor
Braamfontein 2001
Republic of South Africa
Tel: 27 11 339-3621/2
Fax: 27 11 339-4244
Cell: 083 651 0271
Email: sacp1@wn.apc.org