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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.