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50th National Conference: Resolutions - Economic Transformation


1. Introduction

1.1 Economics is about people, their work, their ownership of productive assets or lack of it, their share of what they produce, what they buy and sell, their accommodation, their recreation, in fact every element which we describe as quality of life, flows from the structure and management of the economy.

Therefore, from the premise that the mission of the ANC continues to be the fundamental transformation of the South African economy in order to empower black people, especially Africans, (collectively as well as communities and as individuals); eliminate poverty and the extreme inequalities generated by the apartheid system; generate productive employment opportunities for our people at a living wage and ensure balanced South African economic development. The ANC does not underestimate the problems that we inherited and acknowledges that we will not overcome these in a short period. Progress has been made in the provision of basic services and in the macroeconomic stabilisation. However, we have a long way to go, particularly, in the transformation of the economy.

1.2 In shaping our policies it is imperative that we be mindful of both trends in the global economy, within which South Africa is a small player, and of the limitations in the availability of resources. Globalisation brings important opportunities but also real dangers and constraints to the economy. In integrating South Africa into the global economy, we need to struggle for an effective regulatory system that will promote development and equity.

Taking account of all of this, our economic policies should be geared towards:

1.2.1. A competitive, fast growing and developing economy which creates sufficient jobs for all work seekers;

1.2.2. A redistribution of wealth, income and opportunities in favour of the poor and the historically disadvantaged;

1.2.3. A society in which sound health, education and other services are available to all;

1.2.4. An environment in which homes are secure and places of work are productive;

1.2.5. The popular involvement and participation of all South Africans in the economy and in economic decisions.

1.3 In pursuing these objectives the emphasis will be on four critical areas of work. These are central to the implementation of the RDP. The first is the promotion of investment for sustainable job creation (sustainable in the economic and environmental sense). The second is to ensure the continuous link between growth and development. The third is to ensure that we establish new social and economic relations that empower the black community in general and African people in particular. The fourth is to integrate all components of the economy urban/rural, women/youth and families into sustainable and meaningful economic activity. The extent to which this work succeeds and the extent to which we succeed in attaining each of these four objectives is the measure of the impact of our economic policies on transformation.

1.4 The need to reassert the importance of rural development cannot be over emphasized. In 1992, in Ready to Govern we stated that Apartheid has distorted the social and economic environment of the rural areas and accordingly the new democratic state must implement a policy to redress these distortions and create opportunities for rural people through balanced and sustainable development.

1.5 The issue of gender is fundamental to the social and economic transformation.

Accordingly all policy programmes must be able to clearly identify and integrate this important issue in their transformation agenda. Activities must be focused both where women are in the majority and are under-represented.

2. THE DEVELOPMENT OF ANC ECONOMIC POLICY

2.1. Thinking on economic policy in the ANC has been influenced by the political positions of the movement developed over many decades of struggle. One document stands out as the most comprehensive expression of the ideals of the movement, and that is the Freedom Charter. A number of the core ideas have been through various stages of development.

Each of the noted National Conferences at Morogoro (1969), at Kabwe (1985), in Durban (1991) and in Bloemfontein (1994) have added to these particular ideas. In addition, special policy initiatives such as the Ready to Govern conference (May 1992) and the drafting of the Reconstruction and Development Programme (February 1994) greatly expanded the scope and detail of economic policy.

2.2. Since the elections, and the formation of a democratic ANC-led government, we have started implementing the policy framework, often with different outcomes. Furthermore, particular areas of policy have been emphasised to deal with particular focal areas of government. The National Executive Committee, has also discussed and decided economic policy implementation from time to time.

2.3. The tradition of ANC economic policy is thus the strand which links all of these initiatives over the past four decades. It is important that this conference recognises that we are not starting anew, we are building on a tradition. This Conference's task is to reconfirm the trend which has emerged through that important set of policy elements, including the basic framework of the RDP.

3. SECTORAL POLICY ISSUES

3.1. Of the five objectives of economic policy outlined above, each merits special attention.

The areas of work set out to essentially involve the interaction of various sectoral policy initiatives thus the objective, of a competitive, fast growing economy which creates sufficient jobs for all work seekers, requires a focus on trade policy, competitions policy, industrial policy and labour markets policy, but these sectoral policies also require stable macroeconomic policies to ensure that appropriate signals can be sent to prospective investors and to ensure that we achieve a real rise in living standards . Hence, whilst we are required to dissect the detail of sectoral policy, we need an understanding of how they interact and must therefore be integrated to produce the desired results. In addition, we need to understand that government does not possess all of the instruments, for example, there are limitations on the amount of investment capital that government has at its disposal, and this reality will impact on the time frames for implementation.

3.2 Macroeconomic Framework

3.2.1. This policy deals with a particular set of ratios in the economy. The RDP base document (at 6.5.7) states: The existing ratios of the deficit, borrowing; and taxation to GNP are part of our macroeconomic problem. In meeting the financing needs of the RDP and retaining macro stability during its implementation particular attention will be paid to these ratios.

The emphasis will be on a growing GDP, improved revenue recovery, and more effective expenditure in order to make more resources available. In the process of raising new funds and applying them, the ratios mentioned above must be taken into account.

3.2.2. The emphasis in the RDP on macro economic balance has been a consistent part of ANC policy and has been mentioned in every policy document since 1990. The strategy for Growth, Employment and Redistribution (GEAR) aims at creating the environment of macro-economic balances required for the realisation of the RDP. In this therefore, the GEAR does not seek to displace the RDP.

3.2.3. A particular element of macroeconomic policy is Fiscal Policy which deals with the raising of taxes and the management of expenditure.

Effective fiscal policy requires that government raises the maximum amount of resources possible and frees the maximum resources for tangible transformation efforts; ensures that resources are allocated towards the implementation of the RDP; and ensures that the available resources are efficiently managed to realise the policy objectives. To this end, the ANC must interact with fiscal policy implementation to ensure:

3.2.3.1. the release of resources for maximum transformation. This task will include the minimisation of the costs of the state in order to free up resources.

3.2.3.2. that ANC policy objectives are realised by the most appropriate allocation of limited resources.

3.2.3.3. that capacity is built in government to ensure that only the highest standards of management are tolerated.

3.2.3.4. Monetary Policy is by and large the outcome of a number of other economic policies. It also has a significant impact on other areas of economic policy.

Therefore, monetary and fiscal policies must be consistent, mutually reinforcing and complimentary.

3.3 Industrial Policy and Trade Policy

3.3.1 We are convinced of the continued central role of industrialisation as the mainstream of growth world-wide.

Rich countries are more industrialised than poor countries. Not only is industry responsible for creating sustainable employment, it is also the key generator of resources for further economic development, opens opportunities for industry related services, promotes structural and technological changes, and enhances global linkages across economies through trade and investment. Accordingly, industrial policy lies at the heart of our economic transformation programme and must rest upon four key objectives:

3.3.1.1 Economic growth must be sustainable, both economically and environmentally.

3.3.1.2 Investment must create jobs. There should be a strong bias towards labour intensive investments and must emphasise small business development and human resource development. Investment must contribute towards growth and development in the economy.

3.3.1.3 Growth must increasingly be based on the ability to export and compete on the world market in products.

3.3.1.4 Empowerment of the historically disadvantaged citizens must be a continuous thrust of all economic programmes.

3.3.1.5 It is important to stress that our objectives will be achieved by a well designed package of policies.

3.3.2 In pursuit of these objectives the following policy instruments will be employed:

3.3.2.1 Trade Policy will remain within South Africa's commitments to the World Trade organisation. Efforts to increase the economic integration of the Southern African region will be pursued, particularly through the establishment of a free trade agreement within SADC within a fixed period of time on the basis of principles of mutual benefit, equity and balance. We will maximise South Africa's interests in regard to existing traditional trading partners such as the European Union. If appropriate, the benefits of a free trade agreement will be pursued.

3.3.2.2 Our policy in regard to Africa on trade and investment is a central component of the African Renaissance

3.3.2.3 Tariff policy, the management of tariffs will be carried out in a consultative and transparent process within a broad framework of economic policy and with regard to the specific features of industries and sectors and employment consequences in industries.

3.3.2.4 The promotion of Industrial Development will include the use of state incentives which will continue to move away from demand side to supply side measures. Incentives are designed to generate investments in productive activity that will create employment and growth. The state's Industrial Development Corporation will continue to be reoriented towards linking upstream capital intensive industries with downstream possibilities and more labour intensive industries whilst giving increasing attention to black entrepreneurs, women, the disabled and rural communities.

The development of industrial strategies will be tackled by, amongst others, facilitative processes such as sector and cluster collaborative initiatives designed to help firms meet the new challenges in collaboration with the constellation of players in their sectors. In this way, the potential of many manufacturing sub-sectors can be fully developed

3.3.2.5 Spatial Development Initiatives in regions identified as having high potential for economic growth and high needs will be pursued. These are investment promotion strategies that are financed from four sources:

  • fiscal transfers;
  • loans sources from the development finance institutions in particular the Development Bank of Southern Africa,
  • the Industrial Development Corporation and
  • the private sector.

Coordination will take place through a special committee of Ministers (Cabinet Investment Cluster).

3.3.2.6 Human Resource Development will be pursued through cooperation between the state departments and the private sector in targeting, developing and funding training programmes.

3.3.2.7 Export growth will be facilitated by incentives and sectoral strategies rather than subsidies.

3.3.2.8 Small, Medium and Micro Enterprises will be helped by improving access to finance, training, management, strategy development and assistance with technology transfer.

3.3.2.9 Government should continuously review SMME strategy with the aim of enhancing its impact and involving more role players, especially in the private sector.

The banking sector should be engaged in order to influence its lending patterns and services in support of the historically disadvantaged communities. Public sector institutions involved in provision of financial support should also focus this support on these communities and need to enhance its targeting to ensure maximum impact.

3.3.2.10 The Local Government has an important role to play in job creation and Local Economic Development. To this end Local Authorities should ensure the development and implementation of SMME specific programmes.

3.3.2.11 Anti Trust Policy, Corporate Governance and Fair Trade Regulation can play a very important part in opening up participation in our economy and ensuring fairness, transparency and the rule of law.

Current competition policy is neither clear nor effective.

Corporate law is also not sufficiently transparent or user friendly and there are many areas where consumer protection is inadequate. Accordingly a major initiative of reform is being started to address these interrelated areas of law. It is envisaged that the necessary legislation will be processed in 1998.

3.4. The liquid fuels and energy industry

3.4.1. The liquid fuels industry contributes a large share of GDP (7%) and is a strategic sector in the South African economy. The current policy dispensation was inherited from the previous government which was driven by military strategic imperatives. This requires adjustment to meet the needs of a transforming South Africa.

Currently the industry is characterised by regulation inextricably mixed with a number of voluntary agreements among various stake holders resulting in considerable complexity. Liquid fuels production has an important interface with petrochemical production.

Uncertainty among investors in the industry is emerging and needs to be addressed by clarity in government's policy trajectory.

3.4.2. The ANC will adopt a clear long term vision for the industry. Implementation will follow two phases. Phase one should focus on clarifying, tightening up and implementing the current dispensation. In Phase two, to be implemented in the medium term, government should manage the transition to a governance framework for the longer term. This should include, more open pricing of fuels, an independent industry authority, the creation of level playing fields among competing business interests whilst advancing the interests of small and medium enterprises, a social plan for displaced labour, facilitating the entry of historically disadvantaged communities, acknowledging the role of the state as a legitimate player, and optimum cooperation with state oil companies in SADC countries.

3.4.3. In the transition process, soundly mandated government negotiators will give due recognition to the vested interests and the voluntaristic nature of certain elements in the existing dispensation.

3.4.4. Although energy is a basic need and a vital input to both the formal and informal sectors, the vast majority of South African households and entrepreneurs depend on inferior and expensive fuels. Rural women face a heavy burden from collecting fire wood from far away distances with negative environmental consequences. Urban households face high costs of paraffin and gas. Coal, where it is available, is relatively cheap but results in severe health problems and extensive environmental damage.

The ANC remains committed to the electrification of South Africa as outlined in the RDP.

3.5. Mining and minerals strategy

3.5.1. Mining is a key sector for employment and foreign exchange earning.

Mineral resources are inputs into many important value adding industries. Mining provided the basis for capital accumulation in South Africa's economy. Although the gold sector is mature and experiencing difficulties, high potential remains for more wealth creation from South Africa's extensive and diversified resource base and the technology and expertise that has been developed to tap it.

3.5.2. The main obstacles to sustainable access to the country's mineral wealth include the inherited legal and administrative system of mineral rights and prospecting information; a century of racism that has blocked access to skills and failed to develop the human resource base of the mining workforce and a state administration that has focused on regulation.

3.5.3. To modernise and transform the mining industry the following steps need be taken:

3.5.3.1. Our minerals functions need to include a vigorous promotion function in order to develop and sustain the industry to attract exploration and investment.

3.5.3.2. Access to mineral rights should be promoted by encouraging an efficient market in privately held mineral rights. A mineral rights tax that would be deductible against exploration expenditure should be applied to privately held mineral rights to promote their use. Such mineral rights not explored, retained or sold would be surrendered to the state. Security and continuity of tenure must be assured to promote access with stability.

3.5.3.3. For state-held mineral rights, a system of licenses should be introduced consisting of exploration and mining licenses of defined duration and work commitments in order to promote the turnover of exploration properties.

3.5.3.4. All exploration information should be lodged with the state and shall be made available on expiry of the exploration license.

3.5.3.5. Human resource development in the minerals industry particularly in the area of adult basic education and training should be facilitated. Affirmative action policies need to be implemented and all vestiges of racism rooted out.

3.5.3.6. Small scale mining should be encouraged and managed through a comprehensive system of support and appropriate regulation to facilitate financially viable mining and to maintain standards of safety, health, working conditions and environmental protection.

3.5.3.7. Beneficiation of mined raw materials via specific supply side measures and the active investment of state enterprises should be promoted. Raw materials pricing should favour local fabrication. Research and Development for benefication should be encouraged.

3.5.3.8. The State should develop a detailed systematic social plan to deal with the negative consequences of restructuring in this sector and others. This should be done through consultation with government, labour, business and affected communities.

3.6. Agriculture

3.6.1. Agriculture makes an important contribution to the economy, some 45% of GDP and about 10% of exports. It is a high employment sector and makes a major contribution to rural livelihoods and food security.

3.6.2. However, agriculture has in the past been characterised by large inequalities in the access to land in terms of both race and gender and large subsidies to commercial, largely white, enterprises. The advent of democracy and globalisation requires that the sector undergo considerable restructuring.

3.6.3. A detailed ANC Agricultural Policy document was adopted at National Conference in 1994 which provides an important starting point for further policy development.

3.6.4. Our vision of the agriculture industry incorporates:

3.6.4.1. A radically changed ownership, by race and gender, of productive resources.

3.6.4.2. Improved productivity, efficiency and international competitiveness in the sector.

3.6.4.3. Increased market access both locally and abroad.

3.6.4.4. Expanded access to land to assist those who lack resources to get established in agriculture.

3.6.4.5. A sector guided by the principles and ethics of sustainable development.

3.6.5. Key objectives and strategic areas of policy focus are:

3.6.5.1. Maximising agriculture's contribution to economic growth through scientific innovation, elimination of structural inefficiencies especially in markets whilst concentrating on comparative advantages.

3.6.5.2. Addressing inequities through land reform; targeted programmes to support resourcepoor farmers and black farmers generally; human resource development within the sector; improved access to markets, services and resources (including extension and credit).

3.6.5.3. Maximising employment in agriculture remains a key focus for ANC policy. To this end land reforms resulting in smaller farming units will be pursued as they are less capital intensive and will result in more jobs per unit of land. Greater employment will also be achieved by levelling the playing fields between capital and labour intensity. This will be done by removing subsidised interest rates and tax concessions on capital purchases. Employment gains will also be pursued by linking production and trade promotion programmes.

3.6.5.4. Enhancing household food security remains a priority. Our policies, including land reform, trade and marketing policies and shifts towards greater international competitiveness must result in greater availability and accessibility of food at a household level. Policy will thus shift from food self-sufficiency to an emphasis on household food security in accordance with our commitment to the elimination of hunger and malnutrition in our country.

3.6.5.5. Human resource development and capacity building in the form of farmer training, the development of institutions, improved extension services and easier access to finance will continue to be undertaken.

Efforts will be made to strengthen coordination of cooperative governance between national and provincial departments.

3.6.5.6. Strategies for the development and restructuring of agroprocessing industries will be developed to accommodate the changing nature of agricultural output.

3.6.5.7. Infrastructure development will focus on investments in marketing infrastructure to give black farmers in rural areas better access to markets.

3.6.6. These strategic imperatives will inform the national agricultural policy initiative currently underway.

3.6.7. Land is a productive asset that has a significant influence on economic development. Our policy on land reform and redistribution still remains a principle guide, however there is a need for an accelerated programme that will deal with:

  1. the transfer of ownership through redistribution, restitution and tenure reform;
  2. the creation of agricultural opportunities for the poor and the historically disadvantaged;
  3. the creation of opportunities for direct investment and increased employment through improved land use planning, fair access to land and good practice.

3.7. The marine fisheries sector

Although marine fisheries is a relatively small resource based sector, it is extremely important for the livelihood of the coastal communities. The dual challenge is to ensure both the sustainable utilisation as well as more equitable access to the resources. The industry should be restructured to give a far greater share of the resource to marginalised communities who depend on fishing for their livelihoods. The system of quota and permit allocation under apartheid denied opportunities to black entrepreneurs and systematically impoverished fishing communities. A phased but determined programme of reallocation of quotas and permits must be implemented. This programme should take into account international agreements. However South Africa's interests must be protected and promoted in all international fishing negotiations. All existing agreements will have to be carefully revised with a clear point of departure and begin to address the needs of our people. The conference instructs the NEC to develop an access rights policy that will enhance job creation, security, economic growth, advancement of our coastal communities, implementation of RDP recommendations and maintain the role of the state as custodian of the resource. In main the policy must prevent biological or economic collapse of fisheries. Our policy should be integrated with policy development of Southern Africa.

3.8 The tourism sector

3.8.1. Tourism is an important sector for job creation. It needs to be prioritised and adequately supported to enhance it's performance and job creation in the economy. The strategy to realise the potential of the tourism sector is government led, private sector driven and community based. It aims to create synergies involving the provinces, towns and local communities; the accommodation sector, the transport sector, the hospitality sector, conservation authorities and the principal marketing agency, SATOUR, to aggressively project South Africa in the existing and new markets as an attractive, affordable and safe destination for tourists in search of a unique experience.

3.8.2. There is a need to increase the tourism infrastructure if we are to succeed in attracting the increased number of tourists that we have targeted. It is also essential that tourism enhances our cultural diversity and that it takes place within a sustainable environmental policy. Within the Spatial Development Initiative the role of the tourism projects is proving to be very important.

3.9 Science and Technology

3.9.1. Technology is increasingly playing a strategic role in rapidly developing economies the world over. This is taking place in the context of the trend towards the globalisation of our economy. Accordingly the ANC formally recognises, as a key factor in national development policy, the importance of technology, as well as research and development, in fostering and sustaining new technologies. It is also critical that we put in place an effective science and technology system.

3.9.2. Fostering public appreciation of science and technology must be a key concern of our organisation. This will contribute to the recognition of the importance of developing sound innovation policies aimed at increasing the level of economic activity within the environment of international competitiveness. It is this that will facilitate sustainable employment that is required.

3.9.3. The increasing convergences of science, telecommunication information technology, broadcasting and multimedia technology is leading to the emergence of an info-communications sector as the leading edge of a global information economy.

3.9.4. The ANC should ensure that as part of the African Renaissance, Africa becomes part of the Global InfoSociety. A clear strategy for building a communications infrastructure and its content based on concrete projects should be developed.

3.9.5. The ANC needs to take creative steps to fund info communication strategy that ensures universal access to modern technologies, software engineering and the public access to the Internet.

3.9.6. The ANC should head the campaign to popularize 1998 as the year of technology and to ensure that we catapult our society into the 21st century.

3.9.7. The ANC should lead efforts to ensure that the "millennium bug" phenomena which threatens to col lapse computing systems across the economy and public sector is effectively addressed by government.

4. CROSS SECTOR POLICY PROGRAMMES

4.1 Employment strategy

4.1.1. Unemployment remains a scourge in the South African society. It is highest among blacks and within this group youths and women fare the worst.

Unemployment has multifaceted causes which cannot be solved at the stroke of a single policy pen. Therefore, coordination and alignment of government policies and initiatives should ensure maximum possible impact on employment levels.

4.1.2. The Alliance must develop a co-ordinated employment strategy which interprets all aspects of government policy around which the Alliance forges a common approach in advance of the Presidential Jobs Summit.

4.1.3. Simultaneously government will consult and negotiate with its social partners an Employment Strategy which will be cemented at a Presidential Jobs Summit. The elements of this Strategy will lie within the following:

4.1.3.1 Adopting policies which are neutral for labour and capital intensive forms of production with a possible bias in favour of those activities with greater employment generating capacity. This will be complemented by a set of disincentives to discourage shedding of labour.

4.1.3.2 Pursuing policies designed to increase access to productive assets (such as land and credit) especially in favour of previously marginalised groups stimulating the level of demand and investment.

4.1.3.3 Reducing transaction costs for labour mobility.

4.1.3.4 Improving social capital for previously marginalised groups.

4.1.3.5 Reducing the cost of wage goods.

4.1.3.6 Promoting increased total factor productivity and international competitiveness to generate increased resources for reinvestment.

4.1.3.7 Engaging in public works campaigns to generate mass employment.

4.1.3.8 Resolving labour market and pre-labour market discrimination.

4.1.4. The Employment Strategy should have policy components which embrace: a sectoral dimension on enterprise specific dimensions; a labour market segment dimension and a spatial dimension.

4.1.5. Pursuit of such an Employment Strategy will require:

4.1.5.1 Reprioritisation of government expenditures away from nonproductive activities and toward directly productive activities which generate sustainable employment;

4.1.5.2 Ensuring a strong linkage between recurrent and capital expenditures;

4.1.5.3 The strategic use of foreign aid;

4.1.5.4 The strategic promotion of foreign investment;

4.1.5.5 The continued promotion of the Masakhane ethos so that continued investment, service delivery and the rebuilding of our communities can take place;

4.1.5.6 The popularisation of a savings and investment culture amongst a large section of our people.

4.2 Rural development

4.2.1. Economic activity which takes into account special programmes for development and job creation in rural areas is necessary to ensure the development of the economy as a whole.

4.2.2. The strategy to create jobs, boost production, improve living conditions and establish a social security system must be pursued in such a way so as to ensure an integrated approach that links urban, peri-urban and rural development processes.

4.2.3. Over and above the physical and social infrastructures which should be developed in rural areas, specific forms of public sector intervention, for example with regard to human resource development, extension services, market information and appropriate financial mechanisms and institutions must be budgeted for.

4.2.4. Rural communities need practical access to health, education, water, support for entrepreneurship (including agriculture), financial services, welfare, local government centres, and police and the courts.

The objective of rural development policy should be to coordinate the activities of the relevant government agencies and pass much of the control of the democratic government-funded services to the rural people for whom they are intended within the framework of provincial and national development programmes. This requires continued fundamental changes and adjustment to institutions and processes.

4.3. Restructuring of state assets

4.3.1 The restructuring of state assets is an integral part of the transformation of the economy. The objectives are to:

4.3.1.1. Enhance sustainable growth and development and employment creation

4.3.1.2. Increase the rate of development of infrastructure to meet basic needs and strengthen our economic potential.

4.3.1.3. Promote the development of our human resources.

4.3.2. Within the overall RDP and industrial strategy the restructuring of state assets will be effected through the development of sectoral strategies followed by the specific case by case consideration of the individual state enterprises within the context of that sectoral strategy. The structures of the National Framework Agreement (NFA) are charged with overseeing the process of interaction between government and labour.

4.3.3. Increased emphasis will have to be given to the government's capacity to effectively manage and coordinate the activities of the state owned enterprises. This will require a comprehensive strategy for the development of the human resources and the management of cadres.

4.3.4. In the process of restructuring of state assets, firm agreements on employment, skills development, training and delivery should be implemented.

4.3.5. In the process, there will have to be a prioritisation and sequencing of policy implementation in order to ensure the most effective means of achieving the objectives of the restructuring of the state assets.

4.4. National Empowerment Policy The ANC should clearly articulate a National Empowerment Policy that will focus on those who have been historically disadvantaged and particularly black people, women, youth and the disabled and rural communities. The empowerment process must constitute part of a more radical and profound change in social relations. Changing ownership and workplace relations are part of this wider process of empowerment.

4.4.1. Within the National Empowerment Framework government should establish a National Empowerment Fund which must lead to the stimulation of saving, shift people from the informal to the formal sector, and from predominantly retail to more manufacturing SMMEs.

4.4.2. The ANC government should ensure the implementation of a vigorous affirmative procurement policy which will ensure that government and parastatals facilitate awarding of tenders to our people through approved mechanisms

5. THIS CONFERENCE RE-AFFIRMS AND RESOLVES THAT:

5.1. The basic economic and social transformation framework of the ANC is the Reconstruction and Development Programme.

5.2. Conference confirms that successful economic transformation requires a set of economic policies that are mutually reinforcing, as outlined above, and which as a package begin to address the structural problems in the economy. The RDP policy implores us to focus on: growing the economy and ensuring development, promoting investment in productive job-creating capacity and infrastructure, reprioritising government expenditure, restructuring the economy for international competitiveness and redistribution of opportunities, income, wealth and opportunities. The RDP further states that in meeting the financing needs of the RDP government must do this in a way that maintains macro economic stability.

5.3. Conference reaffirms that our macroeconomic framework policies must be directed to advancing the RDP. We are not pursuing macro balances for their own sake, but to create the conditions for sustainable growth, development and reconstruction. The strategy for Growth, Employment and Redistribution (GEAR) is aimed at giving effect to the realisation of the RDP through the maintenance of macro balances and elaborates a set of mutually reinforcing policy instruments.

5.4. Conference confirms that taken together these packages of policies are designed to build the economy in the manner envisaged in the RDP, and generate the levels of sustainable growth and job creation which is the key to the transformation project which the ANC has embarked on.

5.5. The Conference endorses the basic objective of macro-economic stability. The GEAR provides a basis for achieving such stability. Like other policies it will be reviewed, monitored and adjusted as required by analysis through the policy processes adopted in this conference and in the Alliance Summit.

5.6. Conference resolves that the National Executive Committee is mandated to instruct the NEC Economic Transformation Committee to develop a detailed programme of economic transformation which will serve as a basis for systematic implementation and evaluation of progress made in this regard. Such a programme should give priority to an employment creation strategy.

5.7. In order to give effect to its programme of fundamental economic transformation, the ANC commits itself to developing a programme of further legislative changes and clear timeframes with deliverables and an implementation plan.

5.8. Further, Conference mandates the NEC through its Economic Transformation Committee to organise discussions on all economic policy issues across the broadest cross-section of members and within the Alliance to build and deepen consensus as an integral part of the political work of the movement.

5.9. Recognising that effective development and delivery of services requires that the government frees the maximum resources for tangible socio-economic transformation, Conference resolves to ensure that the highest standards of management and ethical behaviour are promoted.

Accordingly, the ANC and its Allies should spearhead a national campaign to fight against waste and corruption in management of public resources.