30 December 2001
The SACP wishes to take this opportunity to wish all South Africans a happy new year. In particular we would like to send a special message to the working people of our country, millions of whom normally take a holiday at this time, that their rest is a well-deserved rest. It is their toil, perseverance and hard work – under very difficult circumstances - that keep the wheels of our economy turning. To the millions of unemployed and rural masses the SACP says, let us organise and work together with government at all levels to mobilize our domestic physical and human resources, including the building of co-operatives and social capital, to struggle for a more job-creating economy and fight against the culture of the narrow pursuit of profit, in order to build an economy more responsive to the needs of the overwhelming majority of our people. Let us make 2002 truly a year of building a people’s economy!
Satisfactory progress on a number of fronts
As the SACP we take satisfaction in some of the achievements of our people and our government this year, and the steady consolidation of our democracy. For us one of the highlights of this year has been the shift, albeit still minimal, away from pre-occupation with macro-economic issues towards the micro-economy, in particular the more increased spending on infrastructure by government, including the implementation of the integrated rural development and urban renewal strategies and plans. It is our considered view that consolidating this focus will take us a long way towards finding a more appropriate economic developmental path for our economy that is better able to respond to the challenges of growth and tackling of poverty in our country. These measures are of fundamental importance and have a major potential in contributing towards turning the tide against unemployment, and tackling the major priority of job-creation in our country.
We also note the steady progress in the consolidation of our democracy, in particular as marked, by amongst other things, the disintegration of the DA, thus dealing a severe but necessary blow to white-based, and reactionary oppositional forces. This opportunity should be seized by all progressive South Africans to intensify the struggle for the creation of a single, non-racial South African nation.
Like most South Africans, the SACP also welcomes the improved matric pass rate, as this is a clear indication of the success of government policies, since 1994, to create a new and equitable education system in our country. The policies of the democratic government are beginning to bear fruit on this front. However this improved pass rate also underlines the urgency of the development of an integrated human resources strategy, linking education and training, skills development, and job-creation, in order to absorb the thousands of matriculants into the job market as well as facilitate access to further education and training, including higher education.
The year 2001 has been a challenging year for the SACP, our ANC-led Alliance and progressive South Africans in general. We should build on our achievements in order to tackle the numerous challenges that face us in the year ahead. There are indeed many things that give rise to serious concerns and pose many awkward challenges for our people and the country as a whole. Among them are the free fall of the rand, the sheer scale of unemployment in our country, the HIV/AIDS pandemic, the growing instability in Zimbabwe, the deteriorating situation in the Middle East, the danger of a post-September 11th US increasing in belligerence, and more prepared to act militarily in a unilateral fashion, as well as the clear failure and crisis of neo-liberal policies to eradicate poverty and overcome the growing poverty gap between rich and poor nations.
Our economy and currency
The year ends with an unprecedented assault on the Rand in international currency markets. Orthodox commentators and analysts have been singularly unable to offer any convincing explanation for our currency’s decline to levels unwarranted by the underlying state of the economy. Even the opinionated, dial-a-quote economic “experts”, who have been giving us unsolicited lessons on the value of “liberalizing” and privatizing everything in sight, are now admitting to being confused themselves about the free fall of our currency.
They are all agreed, however, that among the factors are speculation in a “thin” market, depleted of foreign capital inflows especially since September 11th, and the repatriation of profits by South African firms that have listed abroad. Most analysts also appear to agree that although the currency’s fall will have some positive effects on exports and mining industry, the extent of the drop is likely to impact negatively on ordinary people in the form of sharply rising prices. Once again, therefore, we witnessing a case where the pursuit of private profit in free markets is threatening both the prospects of our national economy and the well being of our people.
The SACP has noted with concern a chorus of voices urging government to respond with a “rescue package” including an IMF loan, the removal of remaining exchange controls, raising of interest rates and commitment to accelerated privatization. The SACP views such proposals, emanating as they do from economists linked to major banks, as self-interested, ideologically driven attempts to lock us further into a policy framework that will be incapable of delivering development orientated growth.
We welcome the fact that government has not been pushed into a panic reaction. At the same time, we believe that these events do require a measured and carefully considered response. This needs to include the mobilization of defensive measures to insulate the productive economy from the destabilizing effects of speculative movements in currency markets, and a response to the inflationary pressures that will be generated by the present decline in the value of the Rand. As the SACP it is our considered opinion that a solution must be found in the direction of measures to limit the scope for speculative activity, rather than in further exposing ourselves to the vagaries of speculative markets and once again attempting to appeal to sentiment.
There is no doubt that as a country and a people, we face major challenges on the economic front in the year ahead. Our ongoing debates and discussions on issues like industrial policy, restructuring of the financial sector, state-owned enterprises and the building of cooperatives have all been given added urgency by recent developments in currency markets. The SACP calls for an opportunity at the earliest possible moment for the alliance to engage on these pressing matters, and reiterates its call for the alliance lekgotla that has already been agreed of to be brought forward.
The challenge of the HIV/AIDS pandemic
The scope and sheer tragedy of the HIV/AIDS pandemic ravaging our country has become more and more apparent to most of us in the course of this year, not just in the burgeoning statistics, but in lived reality itself. Few of us have not been touched more or less directly by the loss of family members, partners, work colleagues, comrades and friends. Many of our people are HIV positive.
Earlier in the year, government and a range of progressive HIV/AIDS groups (notably the Treatment Action Campaign) combined forces and won a famous and internationally significant court victory against the pharmaceutical transnationals. Unfortunately, by the end of the year, this progressive front was on opposite sides of another legal hearing – with the TAC successfully taking government to court on the question of supplying medication to HIV positive mothers and their newborn infants. We are indeed concerned about this development, and as the SACP we call for a more concerted and renewed effort by all progressive forces to unite and work together on this front, in order to successfully fight the HIV/AIDS scourge.
On the Tripartite Alliance
On this front we have considerable potential resources. Whatever our shortcomings, the ANC-led liberation movement continues to enjoy overwhelming majority support in our country. The ANC is the ruling party, but it also is potentially the leading formation across a broad front of very significant social movements – trade unions, HIV/AIDS activist networks, a burgeoning co-operative movement, and a variety of other developmental and anti-crime community based formations. Let us use 2002 to build and realize this potential.
In August, tensions within our ANC/SACP/COSATU alliance around the restructuring of parastatals surfaced publicly, and resulted in a major strike, that pitted COSATU (supported by the SACP) against aspects of government policy. It is our view as the SACP that whatever other explanations are given to the unhealthy state of the Alliance in 2001 – whether from within or outside our movement – these are simply diversions. The real source of tensions is the absence of effective collective debate and consensus-seeking policy consultative processes within the Alliance itself, especially in areas where there are legitimate differences. The SACP is confident that by addressing these matters, we can set our Alliance back on a much sounder footing. Let us use 2002 to earnestly, honestly and frankly tackle the problems amongst ourselves, and the SACP is ready and committed as ever to play its part in this regard. We remain convinced that our country needs this Alliance even more in the light of the very numerous and complicated challenges facing our country.
For further information contact: Solly Mapaila – 082 886 3526