A review of 2006 State of the Nation Address by President Thabo Mbeki
By: Tengo Tengela
The State of the Nation Address delivered by President Mbeki has been welcomed by South African social actors as representing South Africa ‘s “Age of Hope”.
Just two days before this historic event Business Day published two articles – one written by Nedlac Business Convener Professor Parson, and the other by Dr Nolutshungu of the Free Market Foundation.
Parsons’ argument was that “these elections offer business an opportunity to influence the course of events”.
Nolutshungu’s contention was that “having a large part of the economy owned and controlled by government is a deterrent to growth, government should sell off these enterprises to the highest bidders”.
What may appear as a coincidence, in reality was a conscious effort to set the national agenda in favour of business.
It is in this context that we ask: “Is there hope for labour in this age of hope?” What is it that the labour movement can claim as a victory from the pronouncement of the President from the State of the Nation Address? Can the labour movement sing the same song that we have entered the ‘age of hope’? Can the labour movement ignore the calls that are made by those who are paid to be missionaries of market fundamentalism? If South Africa has entered the “age of hope” who shall set the agenda in this “age of hope”?
This year’s State of the Nation Address is organised around the following themes:
National Reconciliation and Nation Building
Social partnership between labour, business and government
The unveiling of ASGISA
Essential services and land reform
Role of South Africa in Africa and the world
It appears that the calls by a market fundamentalist like Noluntshungu have not reached the President’s ears: “The state-owned enterprises and the public sector as a whole will make large investments in various sectors”, Mbeki said. “The public sector will also accelerate infrastructure investment in the underdeveloped urban and rural areas of our country”. The government has set aside R372 bn for these programmes.
On education and training “school fees will be eliminated for the poorest quintile of primary schools, and a focus on re-equipping and financing of Further Education and Training Sector”.
Of importance for labour is the issue of the social wage, the President says. “Even as we implement the programmes focused on accelerated and shared growth, with its important element of job creation, we cannot forget that the social wage plays a vital role in addressing the challenge of poverty.” The question is, do we as labour share the same understanding with government on what constitutes the social wage?
On housing, R42 bn has been set aside for housing development for the poor and middle income groups and by 2007, the bucket system should have been eradicated.
On land and agrarian reform “The Minister of Agriculture and Land Affairs will review the ‘willing buyer, willing seller’ policy”.
Whilst market fundamentalists like Nolutshungu are making calls for freedom, Mbeki has told them “the years of freedom have been good for business this should tell the investor community by now that, in its own interest it has to invest in the expansion of that freedom”.
Whether there is hope for labour in this “age of hope” is too early to tell. Only history will tell the truth. The duty of the labour movement is to remain vigilant.