"Reconstruction and Development Programme", 1994 February 17

1.1

1.2

Chapter One
Introduction to the
Reconstruction and Development Programme

WHAT IS THE RECONSTRUCTION AND DEVELOPMENT PROGRAMME (RDP)?

1.1.4

Lid

1.13

1.1.4

1.1.5

1.1.6

The RDP is an integrated, coherent socio-economic policy framework. It seeks to mobilise all our
people and our country's resources toward the final eradication of apartheid and the building of a
democratic, non-racial and non-sexist future.

Within the framework for policy represented by the RDP, the ANC will develop detailed positions
and a legislative programme of government.

The RDP has been drawn up by the ANC-led alliance in consultation with other key mass
Organisations. A wide range of non-governmental organisations (NGOs) and research
Organisations assisted in the process.

This process of consultation and joint policy formation must continue as the RDP is developed
into an effective programme of government. Other key sectors of our society such as the business
community must be consulted and encouraged to participate as fully as they may choose.

Those organisations within civil society that participated in the development of the RDP will be
encouraged by an ANC government to be active in and responsible for the effective
implementation of the RDP.

This inclusive approach to developing and implementing policy is unique in South Africa's
political history. The special nature of the ANC as a liberation movement and the traditions of the
Freedom Charter make it the only political organisation capable of unifying a wide range of social
movements, Community-based organisations and numerous other sectors and formations.
Widespread and broad-based extra-parliamentary support will allow the ANC within a
Government of National Unity to implement the programme.

WHY DO WE NEED AN RDP?

Lad

ep ae

ee

Our history has been a bitter one dominated by colonialism, racism, apartheid, sexism and
repressive labour policies. The result is that poverty and degradation exist side by side with
modem cities and a developed mining, industrial and commercial infrastructure. Our income
distribution is racially distorted and ranks as one of the most unequal in the world - lavish wealth
and abject poverty characterise our society.

The economy was built on systematically enforced racial division in every sphere of our society.
Rural areas have been divided into underdeveloped bantustans and well-developed, white-owned
commercial farming areas. Towns and cities have been divided into townships without basic
infrastructure for blacks and well-resourced suburbs for whites.

Segregation in education, health, welfare, transport and employment left deep scars of inequality
and economic inefficiency. In commerce and industry, very large conglomerates dominated by
whites control large parts of the economy. Cheap labour policies and employment segregation
concentrated skills in white hands. Our workers are poorly equipped for the rapid changes taking
place in the world economy. Small and medium-sized enterprises are underdeveloped, while
highly protected industries underinvested in research, development and training.

The result is that in every sphere of our society - economic, social, political, moral, Cultural,
environmental - South Africans are confronted by serious problems. There is not a single sector of

RECONSTRUCTION AND DEVELOPMENT PROGRAMME PREVIEW COPY FOR REGIONS + 17 February, 1994

12.5

1.2.6

1.2.7

1.2.8

1.2.9

1.2.10

1.2.11

South African society, nor a person living in South Africa, untouched by the ravages of apartheid.
Whole regions of our country are now suffering as a direct result of the apartheid policies and their

collapse.

In its dying years, apartheid unleashed a vicious wave of violence. Thousands and thousands of
people have been brutally killed, maimed, and forced from their homes. Security forces have all
too often failed to act to protect people, and have frequently been accused of being implicated in,
and even fermenting, this violence. We are close to creating a culture of violence in which no
person can feel any sense of security in their person and property. The spectre of poverty and/or
violence haunts millions of our people.

Millions of ordinary South Africans struggled against this system over decades, to improve their
lives, to restore peace, and to bring about a more just society. In their homes, in their places of
work, in townships, in classrooms, in clinics and hospitals, on the land, in cultural expression, the
people of our country, black, white, women, men, old and young devoted their lives to the cause
of a more humane South Africa. This struggle against apartheid was fought by individuals, by
political organisations and by a mass democratic movement.

It is this collective heritage of struggic, these common yeamings, which are our greatest strength
and the RDP builds on it. At the same time the challenges facing South Africa are enormous. Only
a comprehensive approach to hamessing the resources of our country can reverse the crisis created
by apartheid. Only an all-round effort to harness the life experience, skills, energies and aspirations
of the people can lay the basis for a new South Africa.

The first decisive step in this direction will be the forthcoming one-person, one-vote elections. A
victory for democratic forces in these elections will lay the basis for effective reconstruction and
development, and the restoration of peace.

But an election victory is only a first step. No political democracy can survive and flourish if the
mass of our people remain in poverty, without land, without tangible prospects for a better life.
Attacking poverty and deprivation must therefore be the first priority of a democratic government.

How can we do this successfully? It is no use merely making a long list of promises that pretend to
answer every need expressed. Making promises is casy - especially during election campaigns -
but carrying them out as a government is very much more difficult. A programme is required that
is achievable, sustainable, and meets the objectives of freedom and an improved standard of living
and quality of life for all South Africans within a peaceful and stable society.

The RDP is designed to be such a programme. To reach the RDP's objectives we face many
obstacles and we are setting ourselves a great challenge. Each and every expectation will not be
realised and each and every need will not be met immediately. Hard choices will have to be made.
The RDP provides the framework within which those choices can be made. Even more
importantly, it will involve both government and the people in further identifying needs and the
obstacles to satisfying those needs, and will involve both in jointly implementing realistic
strategies to overcome these obstacles. The RDP is an expression of confidence in the wisdom,
organisational abilities and determination of our people.

1.3 THE SIX BASIC PRINCIPLES OF THE RDP

1.3.4

Six basic principles, linked together, make up the political and economic philosophy that underlics
the whole RDP. This is an innovative and bold philosophy based on a few simple but powertul
ideas. They are:

RECONSTRUCTION AND DEVELOPMENT PROGRAMME PREVIEW COPY FOR REGIONS «17 Pebrwary, 1994

Lue

L339

1.3.4

1,35

1.3.6

An integrated and sustainable programme. The legacy of apartheid cannot be overcome with
piecemeal and uncoordinated policies. The RDP brings together strategies to harness all our
resources in a coherent and purposeful effort that can be sustained into the future. These strategies
will be implemented at national, provincial and local levels by government, parastatals and
organisations within civil society working within the framework of the RDP.

This programme is essentially centred on:

A people-driven process, Our people, with their aspirations and collective determination, are our
most important resource. The RDP is focused on our peopie's most immediate needs, and it relies,
in turn, on their energies to drive the process of meeting these needs. Regardless of race or sex, or
whether they are rural or urban, rich or poor, the people of South Africa must together Shape their
own future. Development is not about the delivery of goods to a passive citizenry. It is about
active involvement and growing empowerment.

This programme and this people-driven process are closely bound up with:

Peace and security for all. Promoting peace and security must involve all people and must build
on and expand the National Peace Initiative. Apartheid placed the security forces, police and
judicial system at the service of its racist ideology. The security forces have been unable to stem
the tide of violence that has engulfed our people. To begin the process of reconstruction and
development we must now establish security forces that reflect the national and gender character
of our country. Such forces must be non-partisan, professional, and uphold the constitution and
respect human rights. The judicial system must reflect society's racial and gender composition, and
provide fairness and equality for all before the law.

As peace and security are established, we will be able to embark upon:

Nation-building. Central to the crisis in our country are the massive divisions and inequalities left
behind by apartheid. We must not perpetuate the separation of our society into a “first world’ and a
“third world’ - another disguised way of preserving apartheid. We must not confine growth
Strategies to the former, while doing patchwork and piecemeal development in the latter, waiting
for trickle-down development. Nation-building is the basis on which to build a South Africa that
can support the development of our Southern African region. Nation-building is also the basis on
which to ensure that our country takes up an effective role within the world community. Only a
programme that develops economic, political and social viability can ensure our national
sovereignty.

Nation-building requires us to:

Link reconstruction and development. The RDP is based on reconstruction and development
being parts of an integrated process. This is in contrast to a commonly held view that growth and
development, or growth and redistribution are processes that contradict each other. Growth - the
measurable increase in the output of the modern industrial economy - is commonly seen as the
priority that must precede development. Development is portrayed as a marginal effort of
redistribution to areas of urban and rural poverty. In this view, development is a deduction from
growth. The RDP breaks decisively with this approach. If growth is defined as an increase in
output, then it is of course a basic goal. However, where growth occurs, how sustainable it is, how
it is distributed, the degrees to which it contributes to building long-term productive capacity and
human resource development, and what impact it has on the environment, are the crucial questions
when considering reconstruction and development. The RDP integrates growth, development,
reconstruction and redistribution into a unified programme. The key to this link is an
infrastructural programme that will provide access to modern and effective services like electricity,
water, telecommunications, transport, health, education and training for all our people. This

willl:

RECONSTRUCTION AND DEVELOPMENT PROGRAMME PREVIEW COPY FOR REGIONS + 17 February, 1994

1.3.7

1.3.8

programme will both meet basic needs and open up previously suppressed economic and human
potential in urban and rural areas. In turn this will lead to an increased output in all sectors of the
economy, and by modernising our infrastructure and human resource development, we will also
enhance export capacity. Success in linking reconstruction and development is essential if we are
to achieve peace and security for all.

Finally, these first five principles all depend on a thoroughgoing

Democratisation of South Africa. Minority control and privilege in every aspect of our society
are the main obstruction to developing an integrated programme that unleashes all the resources of
our country. Thoroughgoing democratisation of our society is, in other words, absolutely integral
to the whole RDP. The RDP requires fundamental changes in the way that policy is made and
programmes are implemented. Above all, the people affected must participate in decision-making.
Democratisation must begin to transform both the state and civil society. Democracy is not
confined to periodic elections. It is, rather, an active process enabling everyone to contribute to

reconstruction and development.

An integrated programme, based on the people, that provides peace and security for all and
builds the nation, links reconstruction and development and deepens democracy - these are
the six basic principles of the RDP.

1.4 THE KEY PROGRAMMES OF THE RDP

1.4.1

1.4.2

1.4.3

1.4.4

There are many proposals, strategies and policy programmes contained in the RDP. These can be
grouped into five major policy programmes that are linked one to the other. The five key

programmes are:

meeting basic needs,
developing our human resources;
building the economy;

democratising the state and society, and
implementing the RDP.

Meeting Basic Needs. the first priority is to begin to meet the basic needs of people - jobs, land,
housing, water, electricity, telecommunications, transport, a clean and healthy environment,
nutrition, health care and social welfare. In this way we can begin to reconstruct family and
community life in our society. In this chapter, achievable programmes are set out for the next five
years. These include programmes to redistribute a substantial amount of land to landless people,
build over one million houses, provide clean water and sanitation to all, electrify 2,5 million new
homes and provide access for all to affordable health care and telecommunications. The success of
these programmes is essential if we are to achieve peace and security for all.

Our people should be involved in these programmes by being made part of the decision-making on
where infrastructure is located, by being employed in its construction and by being empowered to
manage and administer these large-scale programmes. These major infrastructural programmes
should stimulate the economy through increased demand for materials such as bricks and steel,
appliances such as television sets and washing machines, and many other products. In addition, the
industrial sector must develop new, more efficient and cheaper products to meet our basic
infrastructural needs.

Development of Our Human Resources, The RDP is a people-centred programme - our people
must be involved in the decision-making process, in implementation, in new job opportunities
requiring new skills, and in managing and governing our society. This will empower our people
but an education and training programme is crucial. This chapter of the RDP deals with education

RECONSTRUCTION AND DEVELOPMENT PROGRAMME PREVIEW COPY FOR REGIONS «17 Feoreary, 1994

1.4.5

1.4.6

1.4.7

1.4.8

1.4.9

1.4.10

1.4.11

1.4.12

1.4.13

from primary to tertiary level, from child care to advanced scientific and technological training. It
focuses on young children, students and adults. It deals with training in formal institutions and at

the workplace.

The underlying approach of these programmes is that education and training should be available to
all from cradle to grave. The RDP takes a broad view of education and training, seeing it not only
as something that happens in schools or colleges, but in all areas of our society - homes,
workplaces, public works programmes, youth programmes and in rural areas.

A key focus throughout the RDP is on ensuring a full and equal role for women in every aspect of
our economy and society. With this emphasis and with the emphasis on affirmative action
throughout the RDP, we must unlock boundless energies and creativity suppressed by racism and

discrimination.

In training, particular attention is paid to the challenges posed by the restructuring of our industries
as we fully re-enter the world economy. These challenges can only be met through the extensive

development of our human resources,

An arts and Culture programme is set out as a crucial component of developing our human
resources. This will assist us m unlocking the creativity of our people, allowing for cultural
diversity within the project of developing a unifying national culture, rediscovering our historical
heritage and assuring that adequate resources are allocated.

Because of apartheid, sport and recreation have been denied to the majority of our people. Yet
there can be no real socio-economic development without there being adequate facilities for sport
and recreation in all communities. The RDP wants to assure that all people have access to such
facilities. Only in this way can all our peoples have a chance to represent their villages, towns,
cities, provinces or country in the arena of sport and to enjoy a rich diversity of recreational
activities.

The problems facing the youth are well known. If we are to develop our human resource potential,
then special attention must be paid to the youth. Our human resource policy should be aimed at
reversing youth marginalisation, empowering youth, and allowing them to reach their full
potential. Programmes for training, education and job creation will enable our youth to play a full
role in the reconstruction and development of our society.

This programme for the development of our human resources underpins the capacity to
democratise our society, thus allowing people to participate on the basis of knowledge, skill and
creativity.

Building the Economy. The economy has strengths and weaknesses. Mining, manufacturing,
agriculture, commerce, financial services and infrastructure are well developed. At present we have
a large surplus of electricity. These are strengths we can build on. But so far they have not
benefitted all our people. A process of reconstruction is proposed to ensure that these strengths
now benefit all our people.

But we must also address serious weaknesses in our economy. There are still very clear racial
inequalities in ownership, employment and skills. Past industrial policies assisted in creating
employment and were an important factor in developing industry but they were also accompanied
by repressive labour practices, neglect of training, isolation from the worid economy and excessive
concentration of economic power. The result is 4 low level of investment in research and
development, low and inappropriate skill levels. high costs. low productivity and declining
employment.

RECONSTRUCTION AND DEVELOPMENT PROGRAMME PREVIEW COPY FOR REGIONS > 17 February, 1994

1.4.14 Central to building the economy is the question of worker rights. Past policies of labour
exploitation and repression must be redressed and the imbalances of power between employers and
workers corrected. The basic rights to organise and to strike must be entrenched. And negotiations
and participative structures at national, industry and workplace level must be created to ensure that
labour plays an effective role in the reconstruction and development of our country.

1.4.15 Inthe world economy, the demand for raw materials including minerals has not grown rapidly and
there is intense competition in manufactured goods production. The General Agreement on Trade
and Tariffs (GATT) was recently updated to achieve substantial reductions in tariff levels. Our
economy must adjust to these pressures if we are to sustain economic growth and continue to
develop a large domestic manufacturing sector that makes greater use of our own raw materials
and minerals.

1.4.16 A central proposal in this chapter is that we cannot build the South African economy in isolation
from its Southern African neighbours. Such a path would benefit nobody in the long run. If South
Africa attempts to dominate its neighbours it will restrict their growth, reducing their potential as
markets, worsening their unemployment, causing increased migration to South Africa. If we seek
mutual cooperation, we can develop a large stable market offering stable employment and
common labour standards in all areas.

1.4.17 The pressures of the world economy and the operations of international organisations such as the
International Monetary Fund (IMF), World Bank and GATT, affect our neighbours and South
Africa in different ways. In the case of our neighbours, they were pressured into implementing
programmes with adverse effects on employment and standards of living. It is essential that we
combine to develop effective strategies for all Southern African countries.

| 1.4.18 In building the economy, programmes dealing with the following areas are dealt with: linking
* reconstruction and development, industry, trade and commerce; resource-based industries;
upgrading infrastructure; labour and worker rights, and Southern Africa.

1.4.19 Democratising the State and Society. Democratisation is integral to the RDP. Without

thoroughgoing democratisation the resources and potential of our country and people will not be
available for a coherent programme of reconstruction and development.

1.4.20 In linking democracy, development and a peopie-centred approach, we are paving the way for a
new democratic order. This chapter sets out the role of the Constitution and Bill of Rights, of
national, provincial and local government, the administration of justice, the public sector,
parasiatals, the police and security forces, social movements and NGOs, and a democratic
information system in facilitating socio-economic development.

1.4.21 Implementing the RDP. The RDP raises many challenges in its implementation because it
involves processes and forms of participation by organisations outside government that are very
different to the old apartheid order. To implement and coordinate the RDP will require the
establishment of effective RDP structures in government at a national, provincial and local level.

1.4.22 This chapter deals with the proposals for coordinating and planning the implementation of the
RDP. This requires substantial restructuring of present planning processes and a rationalisation of
the complex, racist and fragmented structures that exist. The RDP can only be people-centred it
the planning and coordinating processes allow the active involvement of democratic structures.

é 1.4.23 Understandably, the first questions asked are: What will the RDP cost? Who will pay for it? These

are important questions and in developing a programme to finance the RDP, certain key points are
taken into account:

RECONSTRUCTION AND DEVELOPMENT PROGRAMME PREVIEW COPY FOR REGIONS + (7 Febrwary, 1994

1.4.23.1 most of the expenditure on the RDP is not in fact new - rather it is the
better organisation and rationalisation of existing systems and resources

that will unlock resources;

1.4.23.2 we must improve the capacity of the financial sector to mobilise more
resources and to direct these to activities set out in the RDP, from housing
to small and medium-sized enterprises;

1.4.23.3 we must ensure that electrification and telecommunications will be seif-
financing;

1.4.23.4 existing funds must be reallocated and rationalisation must be effected in
many areas;

1.4,23.5 improved and reformed tax systems will collect more tax without having

to raise tax levels (as the RDP succeeds, more taxpayers will be able to
pay and revenue will rise), and

1.4.23.6 7 new funds will be raised in a number of areas.

1.5 CONCLUSION
1.5.1 All over South Africa, including in People's Forums, the same questions are posed over and over:

how will the ANC create jobs?

when will you build houses?

how can we get water and electricity?

what about education?

when will we have a fair and effective police force?
will you give us health care?

what about pensions?

1.5.2 The RDP attempts to provide achievable, realistic and clear programmes to answer these
questions. But it goes further than this and encourages people and their organisations to participate
in the process. In the conclusion we outline proposed concrete steps to make such participation

possible.

~

RECONSTRUCTION AND DEVELOPMENT PROGRAMME

PREVIEW COPY FOR REGIONS + 17 February, 1996

Chapter Two
Meeting Basic Needs

2.1 PROBLEM STATEMENT

“~

w~

th

kik

Poverty is the single greatest burden of South Africa's people, and is the direct result of the
apartheid system and the grossly skewed nature of business and industrial development which
accompanied it. Poverty affects millions of people, the majority of whom live in the rural areas
and are women, It is estimated that there are at least 17 million people surviving below the
Minimum Living Level in South Africa, and of these at least 11 million live in rural areas. For
those intent on fermenting violence, these conditions provide fertile ground.

It is not merely the lack of income which determines poverty. An enormous proportion of very
basic needs are presently unmet. In attacking poverty and deprivation, the RDP aims to set South
Africa firmly on the road to eliminating hunger, providing land and housing to all our people,
providing access to safe water and sanitation for all, ensuring the availability of affordable and
Sustainable energy sources, eliminating illiteracy, raising the quality of education and training for
children and adults, protecting the environment, and improving our health services and making
them accessible to all.

With a per capita gross national product (GNP) of more than R8 500 South Africa is classified as
an upper middle income country. Given its resources, South Africa can afford to feed, house,
educate and provide health care for ail its citizens. Yet apartheid and economic exploitation have
created the gross and unnecessary inequalities among us. Unlocking existing resources for
reconstruction and development wiil be a critical challenge during the process of reconstruction.

2.2 VISION AND OBJECTIVES

+

ee

2.1

2.2.2

a2.3

at

The RDP links reconstruction and development in a process that will lead to growth in all parts of
the economy, greater equity through redistribution, and sustainability. The RDP is committed to a
programme of sustainable development which addresses the needs of our people without
compromising the interests of future generations. Without meeting basic needs, no political
democracy can survive in South Africa. We cannot undo the effects of apartheid overnight, but an
extreme sense of urgency is required because reconstruction and development are major thrusts of
the National Peace Initiative.

Attacking poverty and deprivation is the first priority of the democratic government, and the RDP
sets out 4 facilitating and enabling environment to this end. The RDP addresses issues of social,
institutional, environmental and macro-economic sustainability in an integrated manner, with
specific attention to affordability. We acknowledge the crucial role of provincial and local
governments in adopting and implementing what are described here mainly as national-level
programmes to meet basic needs. The RDP is also based on the premise that user charges will take
into account socio-economic circumstances.

The central objective of our RDP is to improve the quality of life of all South Africans, and in
particular the most poor and marginalised sections of our communities. This objective should be
realised through a process of empowerment which gives the poor control over their lives and
increases their ability to mobilise sufficient development resources. including trom the democratic
government where necessary. The RDP reflects 4 commitment tw grassroots, bottom-up
development which is owned and driven by communities and their representative organisations.

The strategy for meeting basic needs rests on tour pillars, namely

2.2.4.1 creating opportunities for all South Africans to develop to their full potential;

RECONSTRUCTION AND DEVELOPMENT PROGRAMME PREVIEW COPY FOR REGIONS + 17 Febraary, 1994

2.2.5

2.2.6

p ley

2.2.8

2.2.4.2 boosting production and household income through job creation, productivity and
efficiency, improving conditions of employment, and creating opportunities for all to
sustain themselves through productive activity;

2.2.4.3 improving living conditions through better access to basic physical and social services,
health care, and education and training for urban and rural communities, and

2.2.4.4 establishing a social security system and other safety nets to protect the poor, the disabled,
the elderly and other vulnerable groups.

Through these strategies the RDP aims to meet the basic needs of the South African population in an
integrated manner, combining urban, peri-urban and rural development processes. The integration of
the RDP strategies is explained in Chapter Four, “Building the Economy’. Priority areas that are
considered in the present chapter are job creation through public works programmes, and provision of
a variety of basic needs:
land reform

housing and services

water and sanitation

energy and electrification

telecommunications

transport

environment

nutrition

health care

social security and social welfare
(The RDP objectives in education and training, arts and culture, sport and youth development are
elaborated in Chapter Three, ‘Development of our Human Resources’.)

A programme of affirmative action must address the deliberate marginalisation from economic,
political and social power of black people, women, and rural communities. Within this programme
particularly vulnerable groups such as farm workers, the elderly and the youth require targeted
intervention.

The role of women within the RDP requires particular emphasis. Women are the majority of the poor
in South Africa. Mechanisms to address the disempowerment of women and boost their role within
the development process and economy must be implemented. The RDP must recognise and address
existing gender inequalities as they affect access to jobs, land, housing, etc.

The issue of population growth must be put into perspective. The present population policy, which
asserts that overpopulation is the cause of poverty, ignores the role of apartheid in creating poverty,
and also implies that the population growth rate is escalating (which is untrue). It is true, however,
that a relatively high population growth rate exacerbates the basic needs backlogs our society faces.
Raising the standard of living of the entire society, through successful implementation of the RDP, is
essential over the longer term if we are to achieve a lower population growth rate. In particular, the
impact of any programme on the population growth rate must be considered. A population committee
should be located within the national RDP implementing structure. Policies on international migration
must be reassessed bearing in mind the long-term interests of all of the people ot the sub-continent.

The lack of accurate statistics to quantify and locate the problem o1 poverty underlines the need for a
national unit to monitor poverty and deprivation in an ongoing manner, and guide further
interventions. The unit must develop and evaluate key indicators tor measuring the success of the
RDP. It must pay special attention to women's legal, educational and employment status and the rates
of infant and maternal mortality and teenage pregnancy. Indeed, monitoring and gathering of all
statistical data must, where relevant, incorporate the status of women and their economic position with

RECONSTRUCTION AND OEVELOPMENT PROGRAMME PREVIEW COPY POR REGIONS + tT February, 1994

2.2.4.2 boosting production and household income through job creation, productivity and
efficiency, improving conditions of employment, and creating opportunities for all to
sustain themselves through productive activity;

2.2.4.3 improving living conditions through better access to basic physical and social services,
health care, and education and training for urban and rural communities, and

2.2.4.4 establishing a social security system and other safety nets to protect the poor, the disabled,
the elderly and other vulnerable groups.

2.2.5 Through these strategies the RDP aims to meet the basic needs of the South African population in an
integrated manner, combining urban, peri-urban and rural development processes. The integration of
the RDP strategies is explained in Chapter Four, ‘Building the Economy’. Priority areas that are
considered in the present chapter are job creation through public works programmes, and provision of
a variety of basic needs:

land reform

housing and services

water and sanitation

energy and electrification

telecommunications

transport

environment

nutrition

health care

social security and social welfare
(The RDP objectives in education and training, arts and culture, sport and youth development are
elaborated in Chapter Three, “Development of our Human Resources'.)

2.2.6 A programme of affirmative action must address the deliberate marginalisation from economic,
political and social power of black people, women, and rural communities. Within this programme
particularly vulnerable groups such as farm workers, the elderly and the youth require targeted
intervention.

2.2.7 The role of women within the RDP requires particular emphasis. Women are the majority of the poor
in South Africa. Mechanisms to address the disempowerment of women and boost their role within
the development process and economy must be implemented. The RDP must recognise and address
existing gender inequalities as they affect access to jobs, land, housing, etc.

2.2.8 The issue of population growth must be put into perspective. The present population policy, which
asserts that overpopulation is the cause of poverty, ignores the role of apartheid in creating poverty,
and also implies that the population growth rate is escalating (which is untrue). It is true, however,
that a relatively high population growth rate exacerbates the basic needs backlogs our society faces.
Raising the standard of living of the entire society, through successful implementation of the RDP, is
essential over the longer term if we are to achieve a lower population growth rate. In particular, the
impact of any programme on the population growth rate must be considered. A population committee
should be located within the national RDP implementing structure. Policies on international migration
must be reassessed bearing in mind the long-term interests of all of the people of the sub-continent.

t I
Nv
o

The lack of accurate statistics to quantify and locate the problem of poverty underlines the need for a
national unit to monitor poverty and deprivation in an ongoing manner, and guide further
interventions. The unit must develop and evaluate key indicators tor measuring the success of the
RDP. {t must pay special attention to women's legal, educational and employment status and the rates
of infant and maternal mortality and teenage pregnancy. Indeed, monitoring and gathering of all
statistical data must, where relevant, incorporate the status of women and their economic position with

10

RECONSTRUCTION AND DEVELOPMENT PROGRAMME PREVIEW COPY FOR REGIONS + 17 Pebruary, 1994

‘ specific reference to race, income distribution, rural and urban specifics, provincial dimensions, and

age particularities (for example, women pensioners and young women). It is also necessary to develop
a more acute demographic map of our people, both as to where they are presently located and, more
importantly, where they could move so as to facilitate supply of infrastructure and services.

The first democratic South African government should sign and implement the International Covenant
on Economic, Cultural and Social Rights (and related conventions) and establish a domestic
equivalent of a high-profile Covenant review committee and reporting procedure.

2.3 JOBS THROUGH PUBLIC WORKS

y ae FS |

ead

2.3.4

vB, Bo

2.3.6

aT

aad

The democratic government must play a leading role in building an economy which offers to all South
Africans the opportunity to contribute productively. All job creation programmes should cater
particularly for women and youth. Implementing agencies should include representatives from
women's and youth organisations. Further job creation policies are identified in Chapter Four,

‘Building the Economy’.

In the short term, the RDP must generate programmes to address unemployment. These measures
must be an integral part of the programme to build the economy, and must also relate to meeting basic

needs.

Although a much stronger welfare system is needed to support all the vulnerable, the old, the disabled
and the sick who currently live in poverty, a system of ‘handouts’ for the unemployed should be
avoided. All South Africans should have the opportunity to participate in the economic life of the
country.

All short-term job creation programmes must ensure adequate incomes and labour standards, link into
local, regional or national development programmes, and promote education, training and community
capacity and empowerment.

Public works programme. The key area where special measures to create jobs can link to building
the economy and meeting basic needs is in redressing apartheid-created infrastructural disparities.
There must be a coordinated national public works programme to provide much-needed infrastructure,
to repair environmental damage, and to link back into, expand and contribute to the restructuring of
the industrial and agricultural base. ;

A further component of the public works programme must be provision of education and training and
the involvement of communities in the process so that they are empowered to contribute to their own
governance. Assets created by a public works project must be technically sound.

The public works programme must maximise the involvement of women and youth in the poorest
rural households and most deprived regions to create assets such as water supply, sanitation and
clinics. This must have significant socio-economic benefits, particularly with respect to production
which meets women's basic needs (such as child care facilities).

The public works programme must coordinate with and link to other job creation and labour-intensive
construction initiatives, A community development fund could be set up within the context of a
national public works programme to make resources available to communities. Care must be taken to
ensure that disbursements from such a fund are carefully controlled and relate to local and regional
development plans.

A national coordinating agency located in the implementing oitice of the RDP must ensure that the
public works programme is based on the capital programmes at central, provincial and local level,
give priority to job creation and training, target the most marginalised sectors of society, and where

il

RECONSTRUCTION AND DEVELOPMENT PROGRAMME PREVIEW COPY FOR REGIONS + 17 Febewary, 1994

possible encourage and support self-employment through small and medium enterprise creation to
ensure SuStainability of skills. Such programmes must not abuse labour standards nor create unfair

competition within sectors of the economy.

2.4 LAND REFORM

2.4.1

2.4.2

2.4.3

2.4.4

2.4.6

2.4.7

Land is the most basic need for rural dwellers. Apartheid policies pushed millions of black South
Africans into overcrowded and impoverished reserves, homelands and townships. In addition, capital-
intensive agricultural policies led to the large-scale eviction of farm dwellers from their land and
homes. The abolition of the Land Acts cannot redress inequities in land distribution. Only a tiny
minority of black people can afford land on the free market.

A national land reform programme is the central and driving force of a programme of rural
development. Such a programme aims to address effectively the injustices of forced removals and the
historical denial of access to land. It aims to ensure security of tenure for rural dwellers. And in
implementing the national land reform programme, and through the provision of support services, the
democratic government will build the economy by generating large-scale employment, increasing
rural incomes and eliminating overcrowding.

The RDP must implement a fundamental land reform programme. This programme must be demand-
driven and must aim to supply residential and productive land to the poorest section of the rural
population and aspirant farmers. As part of a comprehensive rural development programme, it must
raise incomes and productivity, and must encourage the use of land for agricultural, other productive,
or residential purposes.

The land policy must ensure security of tenure for all South Africans, regardiess of their system of
land-holding. It must remove all forms of discrimination in women's access to land.

The land reform programme has two aspects: redistribution of residential and productive land to
those who need it but cannot afford it, and restitution for those who lost land because of apartheid
laws.

Land redistribution, The land redistribution programme will realise its objectives in various ways,
including strengthening property rights of communities already occupying land, combining market
and non-market mechanisms to provide land, and using vacant government land.

The redistribution programme should use land already on sale and land acquired by corrupt means
from the apartheid state or mortgaged to state and parastatal bodies. Where applicable, it will
expropriate land and pay compensation as the Constitution stipulates. Land acquired from the
apartheid state through illegal means must be recovered after due process of investigation. The land
reform programme must include land outside of the historically black areas. All legal provisions
which may impede the planning and affordability of a land reform programme must be reviewed and
if necessary revised.

The democratic government must provide substantial funding for land redistribution. In addition,
beneficiaries must pay in accordance with their means. A land tax on rural land must be based on clear
criteria, must help to free up underutilised land, must raise revenues for rural infrastructure, and must
promote the productive use of land.

Rural infrastructure, support services and training at all levels musi be provided to ensure that land
can be utilised effectively. Within this, water provision must take prioritv, followed by provision of
basic health care. To this end a safe rural water supply programme must begin in the first year of the
RDP.

12

RECONSTRUCTION AND DEVELOPMENT PROGRAMME PREVIEW COPY FOR REGIONS + 17 February, 1994

2.5

2.4.10

2.4.11

2.4.12

2.4.13

2.4.14

A democratic government must ensure secure tenure rights for all South Africans by adopting a tenure
policy that recognises the diverse forms of tenure existing in South Africa. It must support the
development of new and innovative forms of tenure such as Community Land Trusts and other forms
of group land-holding.

Women face specific disabilities in obtaining land. The land redistribution programme must therefore
target women. Institutions, practices and laws that discriminate against women's access to land must
be reviewed and brought in line with national policy. In particular, tenure and matrimonial laws must
be revised appropriately.

The programme must include the provision of services to beneficiaries of land reform so that they can
use their land as productively as possible. Assistance must include support for local institution
building, so that communities can devise equitable and effective ways to allocate and administer land.

Land restitution. To redress the suffering caused by the policy of forced removais, the democratic
government must, through the mechanism of a land claims court, restore land to South Africans
dispossessed by discriminatory legislation since 1913. This court must be accessible to the poor and
illiterate. It must establish processes that enable it to take speedy decisions. In order for this court to
function effectively, constitutional rights to restitution must be guaranteed.

The land reform programme, including costing, implementing mechanisms, and a training
programme, must be in place within one year after the elections. The programme must aim to
redistribute 30 per cent of agricultural land within the first five years of the programme. The land
restitution programme must aim to complete its task of adjudication in five years.

HOUSING AND SERVICES

pe

2.5.3

2.5.4

2.5.5

The lack of adequate housing and basic services in urban townships and rural settlements today has
reached crisis proportions. The urban housing backlog in 1990 was conservatively estimated at 1,3
million units. Including hostels and rural areas, the backlog rises to approximately three million units.
To this should be added an estimated 200 000 new households each year. There is, unfortunately, little
research available on the rural housing situation and the bantustans.

About 50 000 houses were built in South Africa in 1992. This figure could reasonably be increased to
over 300 000 units each year by the end of the RDP’s five-year programme. At minimum, one million
low-cost houses should be constructed over five years. These units should be specifically intended for
low-income households and should include the rural areas.

The housing problems created by apartheid and by the limited range of the capitalist housing markets
have been aggravated by the absence of a coherent national housing policy. A mass housing
programme can help generate employment, skills and economic activity, both directly and indirectly,
and should help ensure peace and stability. A single national housing department should help to
consolidate the previously fragmented approach. The private sector and civil society also have
important roles to play in expanding housing delivery and financing capacity. The development of
small, medium-sized and micro enterprises owned and run by black people must be incorporated into
the housing delivery programme.

Right to housing. The RDP endorses the principle that all South Africans have a right to 4 secure
place in which to live in peace and dignity, Housing is a human right. One ot the RDP's first priorities
is to provide for the homeless.

Although housing may be provided by a range ot parties. the democratic government is ultimately
responsible for ensuring that housing is provided to all. [t must create a policy framework and
legislative support so that this is possible, and it must allocate subsidy funds from the budget - to

13

RECONSTRUCTION AND DEVELOPMENT PROGRAMME PREVIEW COPY FOR REGIONS +17 February, 1994

2.5.10

aa Al

2.5.13

2.5.14

reach a goal of not less than five per cent of the budget by the end of the five-year RDP - so that
housing is affordable to even the poorest South Africans.

The approach to housing, infrastructure and services must involve and empower communities; be
affordable, developmental and sustainable; take account of funding and resource constraints, and
support gender equality. The RDP is committed to establishing viable communities in areas close to
economic opportunities and to health, educational, social amenities and transport infrastructure.

Housing standards. As a minimum, all housing must provide protection from weather, a durable
structure, and reasonable living space and privacy. A house must include sanitary facilities, storm-
water drainage, a household energy supply (whether linked to grid electricity supply or derived from
other sources, such as solar energy), and convenient access to clean water. Moreover, it must provide
for secure tenure in a variety of forms. Upgrading of existing housing must be accomplished with
these minimum standards in mind.

Community organisations and other stakeholders must establish minimum basic standards for housing
types, construction, planning and development, for both units and communities. Legisiation must also
be introduced to establish appropriate housing construction standards, although such standards should
not preclude more detailed provisions negotiated at local level.

Legislation. Legislation must be rapidly developed to address issues such as tenants’ rights, squatters'
rights, the rights of people living in informal settlements, community reinvestment by banks,
evictions, consumer protection, land restoration, community participation in planning and
development, and anti-discrimination protection. Exploitation in rentals charged and in quality of
housing provided must be specifically legislated against. All legislative obstacies and constraints to
housing and credit for women must be removed. The democratic government must promote and
facilitate women's access to housing and to appropriate community design. The provision of
appropriate housing for the elderly and the disabled is also an important priority.

Administration. Administrative procedures must be simple, cheap, quick, transparent, must support
community participation and must prevent corruption, with no form of discrimination of any kind
whatsoever.

Land. Land for housing must be suitably located geologically, environmentally, and with respect to
economic opportunities and social amenities. The democratic government must intervene to facilitate
access to such land. Land speculation must be prevented and land monopolies broken up. Land
planning must involve the communities affected. Land taxes and zoning should seek to promote urban
development patterns consistent with RDP objectives. :

Tenure. The democratic government must ensure a wide range of tenure options including individual
and collective home ownership as well as rental, and facilitate a wide range of housing types.
Sufficient affordable rental housing stock should be provided to low-income earners who choose this
option.

The democratic government must support the transfer of houses to those who have been denied the
opportunity to own houses in the past, especially female heads of household. The transfer of houses to
long-term residents, as has been negotiated, must be completed. Fees charged bv the democratic
government for the transfer of private housing must be made more affordable.

Subsidies, Government funds and private sector funding must be blended in order to make housing
finance affordable. A national housing bank and national home loan guarantee tund must be initiated
to coordinate subsidies and financing most efficiently. Subsidies must be provided in ways which
reduce corruption, promote transparency, target the poor and eliminate gender discrimination.
Mechanisms (such as time limits on resale, or compulsory repayment of subsidies upon transfer ot

{4

RECONSTRUCTION AND DEVELOPMENT PROGRAMME PREVIEW COPY FOR REGIONS © 17 Feerwary, 1994

Z3:15

2.5.16

S547

2518

Fe A

property) must be introduced to prevent speculation and downward raiding. Subsidies could apply to a
variety of tenure forms, but must be paid directly to individuals, groups or community-controlled
institutions. Communities must get sufficient funds in order to ensure that they are not divided.

Finance. End-user finance and credit must be made available for diverse tenure forms, community
designs and housing construction methods. Commercial banks must be encouraged, through
legislation and incentives, to make credit and other services available in low-income areas, ‘redlining’
and other forms of discrimination by banks must be prohibited. Community-controlled financing
vehicles must be established with both private sector and government support where necessary.
Locally controlled Housing Associations or cooperatives must be supported, in part to take over
properties in possession of banks due to foreclosure. Unemployment bond insurance packages and
guarantee schemes with a demand-side orientation must be devised. Interest rates must be kept as low

as possible.

Hostels. Hostels must be transformed, upgraded and integrated within a policy framework that
recognises the numerous interest groups in and around hostels and provides a range of housing
options, including both family units and single people. The transformation of hostels must not deny
any individuals or households access to the cities, including workers who maintain a rural base,
families who desire integration into the city, and women with no security. Policies must address
integration of hostels into communities, their safety and privacy (especially for women and children),
and the various family living arrangements in hostels. Migrant labour, a consequence of past
recruitment policies, will persist in the immediate future. Some housing types should be developed to
cater for migrant workers and for those who engage in circular migration between city and
countryside. Privately-owned hostels must be given particular attention. Short-term repairs (including
provision of basic services and a baseline healthy environment) are a first priority, but must be
consistent with long-term transformation. A fundamental point of departure is affordability. The
democratic government must upgrade hostels where residents cannot pay costs. Hostels programmes
must put appropriate dispute resolution mechanisms in place, must be linked to programmes for the
unemployed, and address the legacy of migrant labour.

Rural housing. Rural people have specific concerns around housing, such as tenure forms on trust
land; the relationship with the commercial agricultural sector, inadequate or non-existent bulk
infrastructure; farm workers housed on the farms, the legacy of apartheid removals and resettlements,
access to land, and land claims procedures and processes. In rural areas, problems of ensuring full
property and home-ownership rights for women are likely to be greater. A rural housing action plan
must be developed to address this. While recognising that rural incomes are far lower, the democratic
government must consider rural housing needs in calculating backlogs, and make provision for
gradually improving housing in rural areas. In particular, labour tenants require security of tenure, and
legal defence and advice offices must be established to assist farm workers in cases of eviction.

Role players. All actors in the housing sector must be identified and their roles clearly defined, to
enable coordinated and efficient housing provision. Role players include civic associations and other
community groups, the public sector, non-governmental organisations, private sector developers and
construction materials firms, financial institutions, etc. The work of the National Housing Forum
should be encouraged to continue, but there must be effective public sector participation as well,
Duplication, inefficiency and ineffectiveness must be eliminated.

Construction, The costs of housing construction must be kept as low as possible while meeting the
proposed standards. Bulk-buying facilities and other support mechanisms must be introduced in order
to maximise use of local materials and to develop products that lower costs and increase the efficiency
of housing provision. The building materials industries must be examined, both to improve productive
output and to reduce costs. Cartels, price agreements and market share agreements must end, and
consideration must be given to public, worker and community-based ownership where the market fails
to provide a reasonably priced product. Community-controlled building materials suppliers must be

8 ES ENE ETT Ive Ue Sa PR SDN Yq RAYS REN SAS MDB aden WMAP WA a

meester.

1S

REQONS TRUCTION AND DEVELOPMENT PROGRAMME PREVIEW COPY FOR REGIONS «17 Febreary, 1994

2.6

2.5.21

‘encouraged, possibly with government subsidies to enhance competitiveness. An enforceable Code ot

Conduct must be established to guide developers. Special funds must be made available to support
small and medium-sized enterprises. Resources should be provided as loans for bridging finance, and
grants for training and entrepreneurial development.

Delivery. Delivery systems will depend upon community participation. While the central government
has financing responsibilities, provincial and local governments should be the primary agencies
facilitating the delivery of housing and should be particularly active in the delivery of rental housing
stock. Organisations of civil society should play a supportive role in relation to local government to
enhance the delivery process. The roles of various entities in the private sector (the construction and
supplies industry, etc.), local business concerns, local cooperatives and the concept of self-build in the
delivery of housing must be examined in the light of effectiveness and local benefit. Delivery systems
should aim to maximise job creation, the use of local materials, and local income generation and
training. Support must be provided to black and, more generally, to smail builders.

Community control. Beneficiary communities should be involved at all levels of decision-making
and in the implementation of their projects. Communities should benefit directly from programmes in
matters such as employment, training and award of contracts. Key to such participation is capacity
building, and funds for community-based organisations must be made available. Educational
institutions must also be reorientated to provide the skills needed for development.

WATER AND SANITATION

2.6.1

Water is a natural resource, and should be made available in a sustainable manner to all South
Africans. Today, more than 12 million people do not have access to clean drinking water and 21
million people do not have adequate sanitation (toilets and refuse removal). Less than half the rural
population has a safe and accessible water supply, and only one person in seven has access to adequate
sanitation. Communities have had little say in the provision of water and sanitation, and decision-
making in the water delivery agencies has reflected broader apartheid ideology. Access to water
resources is dominated by a privileged minority while the majority of the population enjoy little or no
water security.

South Africa is a water-scarce country. The existing limited water resources are also unevenly
distributed, with 70 per cent of the country receiving 11 per cent of the rainfall. Apartheid South
Africa used its military and economic might to coerce its neighbours into acting as sources of water,
sometimes to the detriment of these countries' own water needs and of the sub-continental watertable.

Right to water. The fundamental principle of our water resources policy is the right to access clean
water - "water security for all’. The RDP recognises the economic value of water and the environment,
and advocates an economically, environmentally and politically sustainable approach to the
management of our water resources and the collection, treatment and disposal of waste.

Because of geographic limits to the availability of water, there must be very careful attention paid to
the location of new settlements. The long-term environmental costs of sourcing water from
neighbouring countries and between provinces must be given greater consideration. South Africa is
also a drought-prone country, and a national drought management system and water reserves are a
priority,

Goals of water management. Water management has three main goals: meeting every person's health
and functional requirements, raising agricultural output, and supporting economic development.
Decisions on water resources must be transparent and justified so as to reduce conflict between
competing users. The use of water must be balanced with a realisation of the dangers of overuse and
inappropriate disposal. Community organisations must also receive training in water management and
must ensure such management is integrated into overall planning.

io

RECONSTRUCTION AND DEVELOPMENT PROGRAMME PREVIEW COPY FOR REGIONS + 17 February, 1994

2.6.7

2.6.10

2.6.11

The RDP's short-term aim is to provide every person with adequate facilities for health. The RDP will
achieve this by establishing a national water and sanitation programme which aims to provide all
households with a clean, safe water supply of 20 - 30 litres per capita per day (Icd) within 200 metres,
an adequate/safe sanitation facility per site, and a refuse removal system to ail urban households.

In the medium term, the RDP aims to provide an on-site supply of 50 - 60 Icd of clean water,
improved On-site sanitation, and an appropriate household refuse collection system. Water supply to
nearly 100 per cent of rural households should be achieved over the medium term, and adequate
sanitation facilities should be provided to at least 75 per cent of rural households.
Community/household preferences and environmental sustainability will be taken into account.

The RDP's long-term goal is to provide every South African with accessible water and sanitation.

The RDP is committed to providing operation and maintenance which ensure minimum disruptions in
service within two years. Particularly in rural areas, the RDP must develop appropriate institutions,
including village water committees, Consultation with communities is essential in the provision of
water.

Tariffs. To ensure that every person has an adequate water supply, the national tariff structure must
include the following:

2.6.10.1 a lifeline tariff to ensure that all South Africans are able to afford water services sufficient
for health and hygiene requirements;

2.6.10.2 in urban areas, a progressive block tariff to ensure that the long-term costs of supplying
large-volume users are met and that there is a cross-subsidy to promote affordability for the

poor, and

2.6.10.3 in rural areas, a tariff that covers operating and maintenance costs of services, and recovery
of capital costs from users on the basis of a cross-subsidy from urban areas in cases of
limited rural affordability.

The following institutions must be restructured:

2.6.11.1 the Department of Water Affairs should be responsible for the integrated management of the
nation's water resources for the benefit of the whole nation, and should take responsibility
for building competent local and provincial agencies that are capable of delivery;

2.6.11.2 at a second tier, water resource management must be founded on catchment-based
institutions to ensure effective control over and supply of water resources, as weil as
effective management of and control over waste water, which means that the boundaries of
such institutions will not necessarily coincide with provincial boundaries, and

2.6.11.3 at local level, local governments must be made responsible for water distribution, provision
of adequate sanitation facilities and waste removal, and the financing of these services
through appropriate tariff and local tax mechanisms.

2.6.12 The RDP must undertake a process to involve all relevant parties in updating the Water Act to ensure

2.6.13

the right of all South Africans to water security.

South Africa has several major river systems which are shared with neighbouring countries. Since
there is likely to be a need to import water from other countries, a future democratic government must
pursue a policy of mutual cooperation with its neighbours and create bilateral and multilateral treaties

» aansontc

RECONSTRUCTION AND DEVELOPMENT PROGRAMME PREVIEW COPY FOR REGIONS + 17 Pebrwary, 1994

which ensure the fair and adequate allocation of water resources to the benefit of the people of the
region as a whole.

2.7 ENERGY AND ELECTRIFICATION

BFA

Although energy is a basic need and a vital input into the informal sector, the vast majority of South
African households and entrepreneurs depend on inferior and expensive fuels. Rural women in
particular face a heavy burden collecting wood which is an inefficient and unhealthy fuel. Urban
households face high costs for paraffin and gas. Coal, where it is available, is cheap but results in
severe health problems, an underpaid workforce, and the failure to assess and internalise
environmental costs. Although Eskom has excess generating capacity, only 36 per cent of South
African households have access to electricity, leaving some three million households unelectrified.
Furthermore, some 19 000 black schools (86 per cent) and around 4 000 clinics are currently without
electricity. Little attention has been paid to utilising sustainable energy sources such as solar power.

The control of electricity distribution by the system of racially separate local government has resulted
in a terribly fragmented industry currently unable to finance or sustain a large-scale electrification
programme in an equitable fashion. At present there are around 430 electricity distributors and more
than 1 000 domestic electricity tariffs in South Africa. Rural electrification has been largely ignored
except for commercial white farms.

Past South African energy policies concentrated on achieving energy self-sufficiency at enormous cost
(such as the Mossgas project), but seriously neglected the household sector. Future energy policy must
concentrate on the provision of energy services to meet the basic needs of poor households, stimulate
productive capacity and urgently meet the energy needs associated with community services such as
schools, clinics and water supplies. Energy policies must be developed on the basis of an integration
of supply-side and demand-side considerations.

Energy sources. Immediate policies to meet energy needs must include a low-smoke coal
programme, improved management of natural woodlands, social forestry programmes, commercial
woodlots, and support for the transport of wood from areas of surplus to areas of need. Gas and
paraffin prices must be reduced through better regulation and by bringing bulk supplies closer to
households.

Energy efficiency and conservation must be a cornerstone of energy policies. This will involve the
adoption of least-cost planning approaches; the improvement of dwelling thermal performance; the
promotion of energy-efficient appliances; the use of solar water heaters; appliance labelling, and the
implementation of time-of-use electricity tariffs. Financial assistance to ensure households have access
to efficient appliances will be essential. The environmental impact of different energy sources must be
assessed.

The regulation of liquid fuels is necessary to ensure a stable, high-quality supply, stable investment
and low input prices to the economy and consumers.

Electricity for all, An accelerated and sustainable electrification programme must provide access to
electricity for an additional 2,5 million households by the year 2000, thereby increasing the level of
access to electricity to about 72 per cent of all households (double the present number). Both grid and
non-grid power sources (such as solar cells and generators) must be employed. All schools and clinics
must be electrified as soon as possible. Communities must be invoived in the planning and execution
of this programme. Micro, small and medium-sized enterprises must be given support and shown
preference in the tendering process.

The electrification programme will cost around R12 billion with annual investments peaking at R2
billion. This must be financed from within the industry as far as possible via cross-subsidies from

18
RECONSTRUCTION AND DEVELOPMENT PROGRAMME PREVIEW COPY POR REGIONS ¢ 17 Febrwary, 1994

other electricity consumers, Where necessary the democratic government will provide concessionary
finance for the electrification of poor households in remote rural areas. A national Electrification
Fund, underwritten by a government guarantee, must be created to raise bulk finance from lenders and
investors for electrification. Such a fund could potentially be linked to a Reconstruction Fund to be
utilised for other related infrastructural financing needs. A national domestic tariff structure with low
connection fees must be established to promote affordability.

2.7.9 Energy Policy Council. A national Energy Policy Council should be established to bring together
Stakeholders including the government, unions, civics, the energy industries, and consumers. This
Energy Policy Council should manage the Electrification Fund and formulate energy policies.

2.7.10 Until the formation of the Energy Policy Council the National Electricity Forum must continue to
work towards agreement on the restructuring of the fragmented electricity industry. To assist with this
a powerful, independent, national electricity regulator must be established to enforce public policy,
ensure long-term financial viability, assure environmental! sustainability, and act as an ombuds in the
event of conflicts between consumers, government and the electricity industry.

2.8 TELECOMMUNICATTONS

2.8.1 Telecommunications is an information infrastructure and must play a crucial role in South Africa's
health, education, agricultural, informal sector, policing and safety programmes. Under apartheid the
provision of telecommunications was racially distorted. For black people it is estimated that less than
| line per 100 persons is in place compared with about 60 lines per 100 white persons. Other countries
with comparable per capita wealth have 30 lines per 100 persons. The situation is far worse in rural

areas.

2.8.2 The existing parastatal Telkom is restricted by heavy debt from engaging in substantial further
borrowing, and an indiscriminate privatisation process has fragmented the telecommunications
system. The lack of infrastructure has also restricted the provision of services to peri-urban and rural
areas. Other telecommunications networks are not well integrated into the existing Telkom network.

2.8.3 The telecommunications sector is an indispensable backbone for the development of all other socio-
economic sectors. An effective telecommunications infrastructure which includes universal access is
essential to enable the delivery of basic services and the reconstruction and development of deprived

areas.

2.8.4 The RDP aims to provide universal affordable access for all as rapidly as possible within a sustainable
and viable telecommunications system; to develop a modern and integrated telecommunications and
information technology system that is capable of enhancing, cheapening and facilitating education,
health care, business information, public administration and rural development, and to develop a
Southern African cooperative programme for telecommunications. In terms of the RDP,
telecommunications services must be provided to all schools and clinics within two years.

2.9 TRANSPORT

2.9.1 The policy of apartheid has moved the poor away from job opportunities and access to amenities. This
has burdened the workforce with enormous travel distances to their places of employment and
commercial centres, and thus with excessive costs. Apartheid transport policy deprived the majority of
people of a say in transport matters, and has led to the payment of huge travel subsidies; exposed
commuters to vast walking distances and insecure rail travel: tailed to regulate the kombi-taxi industry
adequately; largely ignored the country's outrageous road safety record; paid little attention to the
environmental impact of transport projects, and facilitated transport decision-making bodies that are
unwieldy, unfocused, unaccountable and bureaucratic.

om wna y

iy

RECONSTRUCTION AND DEVELOPMENT PROGRAMME PREVIEW COPY FOR REGIONS + 17 Febrwary, 1994

2.9.2

29.3

2.9.4

495

Rural areas require more frequent public transport and improved facilities, at an affordable cost. There
is inadequate access for emergency services in rural areas, inadequate public transport frequencies and
route coverage, poor coordination, and other inefficiencies. Indeed, in many rural areas there is no

public transport at all.

An effective publicly-owned passenger transport system must be developed, integrating road, rail and
air transportation. All privately-controlled passenger transport must be effectively regulated and
controlled. A future transport policy must:

2.9.3.1 promote coordinated, safe, affordable public transport as a social service:

2.9.3.2 be flexible enough to take cognisance of local conditions in order to make best use of the
available transport infrastructure;

2.9.3.3 ensure accountability so that the people have control over what is provided;

2.9.3.4 take into account the transport needs of disabled people;

2.9.3.5 clearly define the responsibilities of the various authorities:

2.9.3.6 ensure comprehensive land-use/transport planning;

2.9.3.7 promote road safety;

2.9.3.8 review subsidies (both operating and capital);

2.9.3.9 provide funds for long-term planning, and

2.9.3.10 facilitate high-density development to ensure efficient use of public transport.

AS population increases, the numbers of travellers and the total distances travelled will also increase.
The majority will be unable to afford private transport and will be dependent upon public transport.
Given the need for increased mobility and the cost and environmental impact of accommodating the
private motorist, the future emphasis must be on the provision of safe, convenient, affordable public
transport.

Public transport. Commuters should be encouraged to use public transport, and should be actively
discouraged from using cars (via parking, access and fuel levies). The funds so raised must be used to
directly benefit the provision of public transport. As a first priority, rail transport must be extended.
Bus lines must act as feeders to rail services, or as prime movers if rail is not available. Taxis must act
as feeders to bus/rail services or as prime movers if neither rail nor bus is available. The subsidisation
of parallel services along a common route will be avoided, Rural areas require more frequent public
transport and improved facilities, at affordable costs.

At the same time, critical ‘bottlenecks’ in the road infrastructure should be improved so that the full
capacity of the existing road network can be realised. However, the provision of primary road
infrastructure must be directed towards and take cognisance of public transport needs.

Transport planning. The planning of transport for metropolitan and major urban areas must be in
accordance with an urban/metropolitan growth management plan. A hierarchy of modes should guide
the financing of infrastructure improvements and payment of operating subsidies for public transport.
Travel modes should not compete. In rural areas, provincial governments and district councils must
present transport plans, including extensive road building and road improvement.

20

RECONSTRUCTION AND DEVELOPMENT PROGRAMME PREVIEW COPY FOR REGIONS + 17 Febreary, 1994

2.9,8

2.9.10

&.9.41

29:13

South Africa has the worst road safety record in the world. Central government funds allocated to
ameliorate this situation via education, enforcement and engineering have been negligible. Road safety
must be given the priority it deserves. The transport authorities must be charged with the task of
reducing accidents and must be given the funds to achieve that goal.

For all public transport services to be fully integrated their functioning must be coordinated and
financed by one organisation. The organisation should be accountable to the public and responsible for
the provision, coordination and funding of all public transport and the infrastructure necessary for
public transport (in cooperation with the national public works programme). The organisation should
specifically address current problems such as uncoordinated tariff structures, duplication of services,
and conflict as a result of different forms of ownership. Minimum norms and standards, policy
frameworks and the format of transport plans for national, provincial, urban and rural areas should
form an integral part of the responsibilities of this organisation.

Provincial governments should be responsible for the provision and coordination of all primary inter-
city transport outside the metropolitan areas and, on request, for localised, minor improvements for
towns and villages beyond metropolitan areas.

Metropolitan Transport Authorities (MTAs) should be responsible for planning, coordination and
provision of all ‘metropolitan’ transport facilities within metro areas. The MTAs could undertake local
authority projects on an agency basis. The MTAs must be accountable to democratically elected
metropolitan governments, and all transport projects must be in accord with metropolitan plans.
Funding for public transport would come both from central government and from local rates and
taxes. The MTAs must be empowered to impose such levies and taxes as may be appropriate and the
funds thus raised must be used primarily to promote public transport.

With respect to other forms of transport, international conventions and treaties will determine part of
the legal framework in which sea and air transport develop. Infrastructural development must,
however, be extended through democratic consultations with various stakeholders. Harmonisation of
infrastructural, legal and operational aspects of regional Southern African transport must be
considered a priority.

The needs of women and children for affordable and safe transport are important. Adequate public
transport at off-peak hours, and security measures on late-night and isolated routes, must be provided.
Additional subsidies for scholars, pensioners and others with limited incomes will be considered.

2.10 ENVIRONMENT

2.10.1

2.10.2

Apartheid legislation distorted access to natural resources, denying the majority of South Africans the
use of land, water, fisheries, minerais, wildlife and clean air. South Africa's apartheid policies,
combined with the underregulated activities of local and transnational corporations, contributed to the
degradation of environmental resources, including soil, water and vegetation. They encouraged the
misuse of fertilisers and pesticides. They placed workers' lives at severe risk because dangerous
practices and substances were inadequately monitored (mining in South Africa remains an extremely
dangerous job). Poverty and environmental degradation have been closely linked. In general, existing
environmental policies allow inefficient and wasteful use of water, energy and raw materials, and high
levels of air and water pollution.

The democratic government must ensure that all South African citizens. present and future, have the

right to a life of wellbeing through sustainable use uv! resources. To achieve this. the government must
work towards:

2.10,.2.1 equitable access to natural resources;

21

RECONSTRUCTION AND DEVELOPMENT PROGRAMME PREVIEW COPY FOR REGIONS + 1) February, 1994

2.10.3

2.10.4

2.10.5

2.10.6

2.10.7

2.10.8

2.10.9

2.10.10

2.10.2.2 safe and healthy living and working environments, and

2.10.2.3 a participatory decision-making process around environmental issues, empowering
communities to manage their natural environment.

Environmental considerations must be built into every decision. To accomplish this, procedures must
be set in place which oblige decision-makers to demonstrate what environmental considerations they

take into account when considering projects.

Development strategies must incorporate environmental consequences in the course of planning.
Measures such as land reform, provision of basic infrastructure, housing and targeted rural assistance
(including extension services), and the maintenance of food security should ultimately reduce pressure

on the natural environment.

The democratic government must revise current environmental legislation and administration with a
view to establishing an effective system of environmental management. It must make use of
environmental auditing, with provision for public disclosure. It must monitor the activities of industry

which impact on the environment.

Strategies should include:

2.10.6.1 a system of waste management with emphasis on preventing pollution and reducing waste
through direct controls, and on increasing the capacity of citizens and government to
monitor and prevent the dumping of toxic wastes,

2.10.6.2 participation of communities in management and decision-making in wildlife conservation
and the related tourism benefits;

2.10.6.3 environmental education programmes to rekindle our people's love for the land, to increase
environmental consciousness amongst our youth, to coordinate environmental education
with education policy at all levels, and to empower communities to act on environmental
issues and to promote an environmental ethic, and

2.10.6.4 the establishment of procedures, rights and duties to allow workers to monitor the effects of
pollution, noise levels and dangerous practices both within the workplace and in its impact
on surrounding communities and environment.

Marine resources must be managed and controlied for the benefit of all South Africans, especially
those communities whose livelihood depends on resources from the sea. The fishing stock must be
managed in a way that promotes sustainable yield and the development of new species. The
democratic government must assist people to have access to these resources. Legislative measures
must be introduced to establish democratic structures for the management of sea resources.

Environmental regulation. South Africa has wide-ranging environmental legislation. However,
responsibility for implementation is scattered over a number of departments (Agriculture, Water
Affairs and Forestry, Health and Mineral Resources) from national to local authority level. The
Department of Environmental Affairs administers only a few of the relevant Acts. This has resulted in
discrepancies, anomalies and ineffectiveness.

Fines for environmental offences are inadequate and inconsistent. The South Atrican legal system
makes it difficult to obtain cus seandi in the courts on environmental issues,

The democratic government must rationalise environmental legislation into a cohesive and
workable form. It must legislate the right of access to information on environmenially

22

RECONSTRUCTION AND DEVELOPMENT PROGRAMME PREVIEW COPY FOR REGIONS + 17 Febrwary, 1994

210.11

harmful practices. It must also require compulsory environmental impact assessments for all
large-scale projects. It must establish an environmental ombuds and criminalise
environmental offences. [t must review and conform with international conventions and
agreements on environmental issues.

Environmental management must be transformed to promote the active participation of civil
society.

2.10.12 Both local and provincial governments must play a crucial role in environmental

management. Strong provincial departments of Environmental Affairs must be established.
A national Department of Environmental Affairs must ensure overall standards and

financing of environmental protection.

2.10.13 A Commission on the Environment must be established as an independent body to ensure

transparency and accountability on the part of agencies dealing with the environment. Such
a body must facilitate the gathering, collation and publication of data on the environment. It
must also provide an interface between civil society and public agencies responsible for the
environment and natural resources.

2.11 NUTRITION

211.1

2.11.2

11.3

2.11.4

11.5

2.11.6

An enormous number of South African children under the age of 10 years are malnourished and/or
stunted, Many thousands of adults, especially the elderly, are hungry, and millions of people, young
and old, live in constant fear of being hungry.

The RDP must ensure that as soon as possible, and certainly within three years, every person in South
Africa can get their basic nutritional requirement each day and that they no longer live in fear of going

hungry.

The most important step toward food security remains the provision of productive employment
opportunities through land reform, jobs programmes and the reorganisation of the economy.
Short-term interventions should support nutrition education and the stable, low-cost supply of staple
foods combined with carefully targeted income transfers and food subsidies.

The democratic government must ensure that VAT is not applied to basic foodstuffs, improve social
security payments and reintroduce price controls on standard bread. It must enhance the efficiency of
marketing so that farmers receive good prices while consumers pay as little as possible. To that end,
the government should curb the powers of marketing boards and monopolies, and review the effect of

tariffs.

The democratic government should institute a National Nutrition Surveillance System, which should
aim to weigh a statistically significant proportion of children under the age of five years each month to
establish their levels of growth and wellbeing. These simple data will provide measures of food
security in each area, measures which are essential both for health planning and for targeting relief, for
instance during drought. More widely, South Africa currently lacks an early warning system which
can alert central authorities to threats to food and water security. The RDP should establish
institutions to collect and monitor nutritional and other key socio-economic and agricultural data.

2.12 HEALTH CARE

Bie

os

The mental, physical and social health of South Africans has been severely dainaged by apartheid
policies and their consequences. The health care and social services that have developed are grossly
inefficient and inadequate. There arc, by international standards, probably enough nurses, doctors and
RBOCONSTRUCTION AND DEVELOPMENT PROGRAMME PREVIEW COPY FOR REGIONS > 17 February, 1994

2.12.3

212.5

hospital beds. South Africa spends R550 per capita per annum on health care. This is nearly 10 times
what the World Bank estimates it should cost to provide basic public health services and essential
clinical care for all, yet millions of our people are without such services or such care. Health services
are fragmented, inefficient and ineffective, and resources are grossly mismanaged and poorly
distributed, The situation in rural areas is particularly bad.

This section of the RDP draws attention to a number of programmes designed to restructure the health
care services in South Africa. The aim is to ensure that all South Africans get infinitely better value
for the money spent in this area, and that their mental, physical and social health improves both for its
own sake and as a major contribution to increasing prosperity and the quality of life for all.

A fundamental objective of the RDP is to raise the standard of living through improved wages and
income-earning opportunities, and to improve sanitation, water supply, energy sources, and
accommodation. All of this will have a positive impact on health. Many other policies and
programmes affect health, and their implications should be explored and considered.

All policies affecting health must take into consideration the fact that South Africa is an integral part
of the Southern African region and has regional responsibilities to prevent and to combat the spread of
disease. .

National Health System (NHS).

2.12.5.1 One of the first priorities is to draw all the different role players and services into the NHS.
This must include both public and private providers of goods and services and must be
organised at national, provincial, district and community levels.

2.12.5.2 Reconstruction in the health sector will involve the complete transformation of the entire
delivery system. All relevant legisiation, organisations and institutions must be reviewed in
order to redress the harmful effects of apartheid; encourage and develop delivery systems
and practices that are in line with international norms and standards; introduce management
practices that promote efficient and compassionate delivery of services, and ensure respect
for human rights and accountability to users, clients and the public at large.

2.12.5.3 Communities must be encouraged to participate actively in the planning, managing,
delivery, monitoring and evaluation of the health services in their areas. |

2.12.5.4 There must be a single Minister of Health and a single National Health Authority (NHA).
The NHA must develop national policies, standards, norms and targets, allocate the health
budget, coordinate the recruitment, training, distribution and conditions of service of health
workers, and develop and implement a National Health Information System.

2.12.5.5 Each province must have a Provincial Health Authority (PHA). This PHA must be
responsible for providing support to all the District Health Authorities (DHAs) in its
province. This must include providing secondary and tertiary referral hospitals, regulating
private hospitals, running training facilities and programmes, evaluating and planning
services, and any other support the districts may request. The aim is to encourage high-
quality, efficient services through decentralised management and local accountability.

2.12.5.6 The main bodies responsible for ensuring access to and the delivery of health services must
be the DHAs. Each DHA must be responsible for the health of between 200 000 and 750
000 people in a defined geographical area. About 100 DHAs will, between them, cover the
whole country and their boundaries must, as far as possible, be the same as the new local
government boundaries. Each DHA will be responsible for all primary heaith care services
in its district, including independent general practitioners and community hospitals. The

i

a

RECONSTRUCTION AND DEVELOPMENT PROGRAMME PREVIEW COPY FOR REGIONS + 17 Febrwary, 1994

rh yaa

2.12.5.8

2.12.5.9

DHA must have as much control over its budget as possible, within national and provincial
guidelines.

In the first phase of the RDP the government must develop at least one model or pilot health
district in each province. Each DHA must appoint a team, led by a District Health Manager
and linked to a District Development Committee, to evaluate, plan and manage health
services in the district, including management of the district health budget. The system must
encourage the training, use and support of community health workers as cost-effective

additional or alternative personnel.

The whole NHS must be driven by the Primary Health Care (PHC) approach. This
emphasises community participation and empowerment, inter-sectoral collaboration and
cost-effective care, as well as integration of preventive, promotive, curative and
rehabilitation services.

All providers of health services must be accountable to the local communities they serve
through a system of community committees and through the DHAs which must be part of
democratically elected local government. Other strategies must include a charter of patients’
rights that will be displayed in all health facilities; a Code of Conduct for health workers; a
programme to promote gender balance in all categories of health workers; restructuring
statutory bodies; support and supervision of staff at peripheral facilities and inter-sectoral
structures at district, provincial and national levels.

2.12.5.10 Once statutory bodies have been rationalised and restructured to reflect the rich diversity of

the South African people, they should be better able to promote and protect standards of
training and of health care, and to protect the rights and interests of patients and clients.

2.12.6 Women and children,

2.12.6.1

212.6.2

2.12.6.3

2.12.6.4

Health care for all children under six years of age, and for all homeless children, must
immediately be provided free at government clinics and health centres.

There must be a programme to improve maternal and child health through access to quality
antenatal, delivery and postnatal services for all women. This must include better transport
facilities and in-service training programmes for midwives and for traditional birth
attendants. Targets must include 90 per cent of pregnant women receiving antenatal care and
75 per cent of deliveries being supervised and carried out under hygienic conditions within
two years. By 1999, 90 per cent of deliveries should be supervised. These services must be
free at government facilities by the third year of the RDP. In addition, there should be
established the right to six months paid maternity leave and 10 days paternity leave.

Preventive and promotive health programmes for children must be improved. Breast-feeding
must be encouraged and promoted, and the code of ethics on breast-milk substitutes
enforced. A more effective expanded programme of immunisation must achieve a coverage
of 90 per cent within three years. Polio and neonatal tetanus can be eradicated within two

years,

One important aspect of people being able to ake control of their lives is their capacity to
control their own fertility. The government must ensure that appropriate intormation and
services are available to enable all people to do this. Reproductive rights must be guaranteed
and reproductive health services must promote people's right to privacy and dignity. Every
woman must have the right to choose whether or not to have an early termination ot
pregnancy according to her own individual beliefs. Reproductive rights must include

education, counselling and confidentiality.

RECONSTRUCTION AND DEVELOPMENT PROGRAMME

PREVIEW COPY FOR REGIONS + 17 Petrwary, 1994

2.12.7 Mental and psychological health,

tw
—
th
i? 9)

2.12.9

242.74

4.12.7.2

212.7.3

2.12.7.4

Millions of South Africans abuse alcohol, tobacco, cannabis (dagga), solvents like petrol
and glue, and other harder drugs. Unless action is taken, substance abuse is likely to
increase enormously. Abuse of these substances causes immense physical, mental and social
damage and costs the country millions of rands each year. The RDP must aim to reduce
greatly the present levels of substance abuse and to prevent any increase. Comprehensive
strategies to change behaviour must include education programmes, reduction of advertising
and increasing the price of tobacco and alcohol. Strong penalties for major drug traffickers

must be imposed.

The RDP must aim to promote mental health and increase the quality, quantity and
accessibility of mental health support and counselling services, particularly for those
affected by domestic or other violence, by rape or by child abuse.

The RDP must seek to improve community care, rehabilitation and education for all
disabled people, particularly the mentally disabled, and must support their families and care-
givers. It must also increase access to relaxing environments such as recreational facilities.

There are deep divisions, fuelled by mutual suspicion and lack of communication, between
traditional and other complementary healers and medical and social workers. This is not in
the interests of people who use all types of healers. The RDP must aim to improve
communication, understanding and cooperation between different types of healers.

Sexual health and AIDS. A programme to combat the spread of sexually transmitted diseases (STDs)
and AIDS must include the active and early treatment of these diseases at all health facilities, plus
mass education programmes which involve the mass media, schools and community organisations.
The treatment of AIDS sufferers and those testing HIV positive must be with utmost respect for their
continuing contributions to society. Discrimination will not be tolerated. AIDS education for rural
communities, and especially for women, is a priority.

Other health care programmes.

2.12.9.1

2129.2

@12.9.3

2.12.9.4

There must be a programme to ensure the prevention, early detection and treatment of
specific priority diseases, including tuberculosis, carcinoma of the cervix, hypertension and
diabetes.

The RDP must ensure improved access to emergency health services through the provision
of more 24-hour emergency services accessible to communities. Access to services must be
improved by the development of emergency response centres and appropriate transport and
ambulance services, especially in rural areas.

There must be a programme to provide appropriate care for chronic diseases and the
promotion of healthy lifestyles.

A unit within the NHS must coordinate and monitor services aimed at youth. in particular
education campaigns to combat substance abuse, teenage parenthood and sexually

transmitted diseases amongst the youth.

Occupational health services must be greatly expanded and legisiation to protect the health
of workers must be enforced. Particular attention must be given to protecting the health of
the most vulnerable, including domestic, farm and commercial-sex workers. Workers must
have a say in the application of laws, through their health and safety committees. Workers

26
RECONSTRUCTION AND DEVELOPMENT PROGRAMME PREVIEW COPY FOR REGIONS + 17 February, 1994

should be given check-ups for major diseases in the workplace. Penalties for violation of
occupational health standards must be stricter. Laws must conform to International Labour
Organisation standards and other international standards, and unions and state agencies must
be empowered to monitor and enforce safety and health standards. An overhaul of
workmen's compensation must include administrative restructuring to ensure swifter
payment, increasing the coverage for permanently disabled workers to realistic levels,
minimum benefit levels in support of low wage workers, greater use of the compensation
system to encourage better workplace health and safety standards, and a combined board to
deal with preventive and compensatory aspects of worker safety and health.

2.12.9.6 The appropriate use of technology, especially sophisticated and expensive technology, is
very important. A National Advisory Board on health technology should be established and
should include representatives from all levels of the NHS. The Advisory Board must
develop appropriate and rational policies, devise a system of quality control, and advise on
regulations governing the importation and use of expensive technologies.

2.12.9.7 An effective National Health Information System is essential for rational planning and must
be introduced. This system must ensure that accurate and comparable data are collected
from al parts of the health system, that data are analysed at health- facility, district,
provincial and national levels, and that those collecting the data see it as a useful and
interesting activity. Mechanisms must be established for sharing information between

different programmes and sectors.

2.12.9.8 A programme of Essential National Health Research must be initiated. This should increase
consultation with patients, and should help to overcome the isolation and fragmentation of
research efforts and to strengthen links between research, policy and action. Special
attention must be directed to health systems research in order to improve the effectiveness of
health service delivery.

2.12.10 Human resources for the NHS.

2.12.10.1 Core teams must be provided for every Community Health Centre and clinic. This will
require incentives to attract staff to underserviced (especially rural) areas and increased
training of Community Health Workers and Environmental Health Officers.

2.12.10.2 There must be a programme of retraining and reorienting all existing health workers to the
Primary Health Care approach. The aim is to train 25 per cent of district health personnel
by the end of 1995, and 50 per cent by the end of 1997.

2.12.10.3 Redistribution of personnel will be achieved through more appropriate training, through
incentives to work in underserviced areas, through limiting openings for private practice in
overserviced areas, and through contractual obligations for those receiving subsidised

training.

2.12.10.4 Throughout the period of reconstruction and development strenuous efforts must be made to
strengthen the public sector, to attract health workers in private practice back into the
public sector, at least on a sessional basis, and to encourage active cooperation between
the sectors with the common goal of improving the health of the nation.

2.12.10.5 One of the most important parts of the RDP in the health sector will be the complete
transformation of health worker training. This must involve improving human resource
planning and management systems: reviewing ail training programmes, reviewing
selection procedures, and developing new (and often short) training programmes to
reorient existing personnel and to train new categories and auxiliary workers.

{=

4/
RECONSTRUCTION AND DEVELOPMENT PROGRAMME PREVIEW COPY FOR REGIONS + 17 Fedewary, 1994

2.12.10.6 There is a particular meed to train existing and new staff in the PHC approach, in
management, in primary clinical care, in environmental health, in health promotion and
advocacy, in occupational health and in the maintenance and repair of equipment.

2.12.11 Finance and drugs for the NHS.

2.12.11.1 The RDP must significantly shift the budget allocation from curative hospital services
towards Primary Health Care to address the needs of the majority of the people. This must
be done mainly by reallocating staff and budgets to district health services.

2.12.11.2 Within a period of five years a whole range of services must be available free to the aged,
the disabled, the unemployed and to students who cannot afford health care.

2.12.11.3 Essential drugs must be provided in all PHC facilities. An essential drugs list must be
established to reduce the current wasteful expenditure on inappropriate drugs.

2.12.11.4 The costs of medication in the private sector can be dramatically reduced through greater
use of essential drug lists coupled with a single, nationally negotiated and well-publicised
price for a given quantity of each drug.

2.13 SOCIAL SECURITY AND SOCIAL WELFARE

2.13.1 Apartheid contributed to the destruction of family and community life in various ways. The present
racially-based, discriminatory social welfare services are piecemeal! responses. They have little impact
on the root causes of social problems and on the disintegration of the social fabric.

2.13.2 The RDP aims to transform the existing social welfare policies, programmes and delivery systems so
as to ensure basic welfare rights are provided to all South Africans, prioritising those who have been
historically disadvantaged.

2.13.3 Social welfare as a focus on basic needs and development, Social welfare includes the right to basic
needs such as shelter, food, health care, work opportunities, income security and all those aspects that
promote the physical, social and emotional wellbeing of all people in our society, with special
provision made for those who are unable to provide for themselves because of specific problems.

2.13.4 The goals of a developmental social welfare programme are:

2.13.4.1 the attainment of basic social welfare rights for all South Africans, irrespective of race,
colour, religion, gender and physical disability, through the establishment of a
democratically-determined, just and effective social delivery system;

2.13.4.2 the redressing of past imbalances through a deliberate process of affirmative action in
respect of those who have been historically disadvantaged, especially women, children,
youth, the disabled, people in rural communities and informal settlements,

2.13.4.3 the empowerment of individuals, families and communities to participate in the process of
deciding on the range of needs and problems to be addressed through local. provincial and

national initiatives, and

2.13.4.4 the recognition of the role of organs of civil society in the wellare system, such as
community-based rehabilitation centres and organisations, non-governmental development
organisations, civic associations, the private sector, religious organisations. traditional and
other complementary healers, trade unions and individual initiatives, and the establishment
of guidelines for mutual cooperation.

RECONSTRUCTION AND DEVELOPMENT PROGRAMME PREVIEW COPY FOR REGIONS + 17 February, 1994

2135

2.13.6

4.13.7

2.13.8

213.9

A comprehensive non-racial unitary and democratic welfare system, including a negotiated national
social security programme, must be introduced to aid the distribution of goods and services within the
framework of public responsibility. :

The policy and legislative framework. There must be a comprehensive review of all the policies and
legislation regulating social welfare and social security. In particular the National Welfare Act of
1978, the Social Work Act of 1978, and Acts dealing with child and family welfare must be changed,
New umbrella legislation which provides the framework for a development-oriented social welfare
system based on the principles of equality, equity, access, user involvement and empowerment, and
public accountability must be developed. .

The national social welfare delivery system.

2.13.7.1 The RDP must ensure the greatest coverage in terms of benefits to the poorest through a
restructured, integrated social welfare delivery system at national, provincial and local
government levels, Unnecessary bureaucratic procedures must be removed.

2.13.7.2 All the key players at local, provincial and national levels responsible for the administration
and service-delivery aspects of social welfare must be brought together to find ways of
overcoming the difficulties in the present social welfare structure.

2.13.7.3 The restructuring of the social welfare system and services at national, provincial, district
and local community levels must be in line with international norms and standards.

2.13.7.4 The planning, coordination and evaluation of social services must take place with
community and inter-sectoral involvement.

A national Social Welfare and Development Department.

2.13.8.1 The national department must be responsible for the development of national policies,
Standards, norms, setting of priorities and targets, drawing up of the national budget on
social welfare and allocating resources and grants to targeted areas.

2.13.8.2 The development of service conditions and professional standards to guide the training,
education and employment of social service personnel must be the responsibility of the
national department.

2.13.8.3 The national department must be responsible for the monitoring and evaluation of the
implementation of social welfare goals and priorities.

Provincial social welfare and development departments.

2.13.9.1 Each province must have a social welfare and development department. Such departments
must be responsible for the planning, coordinating, regulating, provision and evaluation of
social welfare and community development services required at provincial and district
levels.

2.13.9.2 Provincial departments must be responsible for social services at preventive (primary) and
curative (secondary) levels. The management and distribution of social services 4
provincial, district and community levels must fall within the provincial department's

authority.

29
RECONSTRUCTION AND OBVELOPMENT PROGRAMME PREVIEW COPY FOR REGIONS + 17 February, 1994

2.13.10 Social security. The national social security system must be designed to meet the needs of
workers in both formal and informal sectors, and of the unemployed, through:

2.13.10.1 social insurance which includes compulsory private contributory pension schemes or
provident funds for all workers and state social pensions,

2.13.10.2 linking contributory pension/provident funds and non-contributory schemes, as well as the
transfer of contributory pensions, and

2.13.10.3 criteria which entitle workers to retire between the ages of 60 and 65, or to a social pension
at 60.

2.13.11 Social safety net. Social assistance in the form of cash or in-kind benefits should be given
to those most at risk (such social assistance could take the form of work opportunities in
public works programmes; the provision of food, clothing and health care to those in need;
cash in the form of disability grants, foster care grants, maintenance grants, or grants for
veterans according to predetermined criteria).

2.13.12 The RDP aims to establish a national coordinating body with representation of workers,
community members, the social welfare sector, the private sector, government and other
appropriate organisations to review existing legislation, policies and procedures and to
monitor the implementation of a transformed social security system.

2.13.13 Social security measures must initially focus on the needs of those who have been
historically disadvantaged, such as domestic workers, agricultural workers, seasonal
workers, workers who are disabled, women, the homeless, and families in rural and informal

settiements.

2.13.14 Social welfare rights and the distribution of benefits must be guided by the principles of
user empowerment and participation through community- and worker-based citizens-rights
education programmes.

qiiavke The RDP must focus on the reconstruction of family and community life by prioritising and

responding to the needs of families with no income, women and children who have been
victims of domestic and other forms of violence, young offenders and all those affected by
substance abuse.

2.13.16 A comprehensive range of social service programmes must be developed in partnership with
community-based structures to respond to the specific needs of the elderly and those in
chronic emotional distress. Community-based and community-planned rehabilitation
programmes must be encouraged to meet the needs of the disabled, and the democratic
government must make adequate resources available for rehabilitation.

pa Gy Children. The rights of children must be protected and measures must be taken to ensure
that community-based and workplace care centres are provided for children in need of
alternate care. The RDP must ensure that immediate steps are taken to remove all children
from prisons and police cells. Alternate detention centres with proper health facilities.
counselling and other support services must be provided tor children. Special programmes
protecting homeless children, especially those on the streets, must be put into place.

213.18 Human resources for the Social Welfare and Development Department. The existing
pool of social service workers and their conditions of service must be reviewed. The present
number of social workers (approximately 7 500) is inadequate, and their training is often
inappropriate. Many social workers must be reoriented and retrained within a developmental

4

RECONSTRUCTION AND DEVELOPMENT PROGRAMME PREVIEW COPY FOR REGIONS + 17 Febreary, 1994

2.13.19

approach to social welfare. The national, provincial and local social welfare departments
must have both specialised and generic social service personnel at management, middle-
management and operational levels. The curricula of social welfare and community
development educational institutions must be reviewed. Within a five-year period a
minimum of another 3 000 community development workers must be trained to work within
provincial and local government structures to aid the process of prioritisation of community
needs and allocation of resources. Social service managers must be trained with due regard

to the need for affirmative action.

Inter-sectoral coordination. Inter-sectoral units on areas such as mental health, child care,
women, and juvenile justice must be developed to plan and implement integrated strategies
aimed at improving services to these target groups. In addition, the relationship between
social welfare, health, community development and labour institutions and related sectors

must be improved.

RECONSTRUCTION AND DEVELOPMENT PROGRAMME PREVIEW COPY FOR REGIONS + 17 February, 1994

Chapter Three
Development of Our Human Resources

3.1 PROBLEM STATEMENT

3.2

ce a |

3.4.3

3.1.4

3.1.5

Education and training under apartheid is characterised by three key features. First, the system is
fragmented along racial and ethnic lines, and is saturated with the racist and sexist ideology and
educational doctrines of apartheid. Second, there is a lack of access or unequal access to education and
training at all levels of the system. Vast disparities exist between black and white provision, and large
numbers of people - in particular, adults (and more especially women), out-of-school youth, and
children of pre-school age - have little or no access to education and training. Third, there is a lack of
democratic control within the education and training system. Students, teachers, parents and workers
are excluded from decision-making processes.

The fragmented, unequal and undemocratic nature of the education and training system has profound
effects on the development of the economy and society. It results in the destruction, distortion or
neglect of the human potential of our country, with devastating consequences for social and economic
development. This is evident in the lack of career paths offered to workers and in the effect this has on
worker motivation and general productivity of the economy. And more importantly, apartheid
education and its aftermath of resistance destroyed the culture of leaming in large sections of our
communities, leading, in the worst-affected areas, to a virtual breakdown of schooling and conditions
of anarchy in relations between students, teachers, principals, and the education authorities.

Under colonialism and apartheid, the culture of the majority of the population was suppressed. People
and communities were denied resources and facilities to develop their own cultural expression. High
illiteracy rates, the lack of an effective educational system, and extreme poverty compounded this
cultural deprivation. The state, special interest groups and wealthy South Africans promoted distorted
culture in order to accommodate apartheid ideology and needs, with a bias toward Eurocentric high
art.

Women and the youth bear the brunt of these injustices, with the consequence that special attention
must be given to these sectors of society in the planning and implementation of human resources
development policies and strategies. Many youth are presently outside the socio-economic mainstream
of the country.

The challenge that we face at the dawning of a democratic society is to create an education and
training system that ensures people are able to realise their full potential in our society, a8 a basis and
a prerequisite for the successful achievement of all other goals in this Reconstruction and
Development Programme.

VISION AND OBJECTIVES

3.2.1

Human resources, unlike other resources, think for themselves! People are, and must remain, the
architects of the RDP as it unfolds in the years to come. The provision of opportunities for people to
develop themselves in order to develop the quality of their own lives and the standard of living of
their communities is a central objective of the RDP, alongside ensuring that basic needs are met. the
democratisation of the society and the growth of its economy.

The opportunities that must he provided include 4 massive expansion and qualitative improvement in
the education and training svstem. artistic and cultural expression, and sport and recrealion,

Human resource development must address the development of human capabilities, abilities,
knowledge and knowhow to meet the people's ever-growing needs for goods and services, to improve
their standard of living and quality of life. It is a process in which the citizens of a nation acquire and

32

RECONSTRUCTION AND DEVELOPMENT PROGRAMME PREVIEW COPY FOR REGIONS + 1) Febrwary, 1994

‘

KP

S.dede

33

3.3.4

ke

develop the knowledge and skill necessary for occupational tasks and for other social, cultural,
intellectual, and political roles that are part and parcel of a vibrant democratic society.

° 3.3 EDUCATION AND TRAINING

We must develop an integrated system of education and training that provides equal opportunities to
all irrespective of race, colour, sex, language, age, religion, geographical location, political or other
opinion. It must address the development of knowledge and skills that can be used to produce high-
quality goods and services in such a way as to enable us to develop our cultures, our society and our
economy.

Education must be directed to the full development of the individual and community, and to
strengthening respect for human rights and fundamental freedoms. It must promote understanding,
tolerance, and friendship among all South Africans and must advance the principles contained in the
Bill of Rights.

A new national human resources development strategy must be based on the principles of democracy,
non-racism, non-sexism, equity and redress to avoid the pitfalls of the past.

The democratic government has the ultimate responsibility for ensuring that our human resources are
developed to the full. Education, training and development opportunities must be provided in
accordance with national standards. However, civil society must be encouraged to play an active part
in the provision of learning opportunities as part of the national human resources development
strategy. For example, democratic school governance structures must be set up which invoive
democratically elected parent and teacher representatives, as well as providing for student
participation at a consultative level.

Mechanisms, institutions and legislation. Success in rebuilding and expanding education and
training depends on having an effective and responsive organisation to manage change. The education
and training bureaucracy must be reorganised at national, sectoral and provincial levels through the
establishment of:

3.3.5.1 a Single national ministry responsible for education and training, to set national policies,
norms and standards throughout the system, to undertake planning and provide budgetary
resources for all aspects of education and training, and to manage higher education and
training development,

3.3.5.2 provincial departments responsible for education and training, to plan and manage all
aspects of education and training provision other than higher education,

3.3.5.3 statutory bodies, based on appropriate democratic representation of stakeholders, to
establish standards and advise the national ministry and provincial departments on policy
and development programmes in education and training,

3.3.5.4 industry-based education and training boards with union and employer participation, to
design and implement programmes within industries (with such boards partly financed by
industry );

3.3.5.5 structures of institutional governance which retlegi she vateresis o) all stakeholders and the
broader community served by the institution, and

3.3.5.6 a statutory South Atriean Qualiticauions Authority with responsibility tor accreditation,
certification and the maintenance of national standards.

33

RECONSTRUCTION AND DEVELOPMENT PROGRAMME PREVIEW COPY FOR REGIONS + 17 Febreary, 1996

3.3.6

aided

3.3.8

3.3.9

+aAQ

Girls and women in education and training. Girls and women are frequently denied education and
training opportunities because they are female. Furthermore, girls and women are educated and trained
to fulfil traditional roles which perpetuate their oppression. Within all education and training
programmes special attention must be given to the special interests of girls and women. For example,
adult basic education and training programmes shouid give special emphasis to women trapped in the
rural areas. Campaigns and information should also open up a wider range of learning opportunities
and choices for women, which in turn should lead to a wider range of income-generating forms of
employment. Girls and women should be encouraged to pursue non-traditional subjects such as maths
and science, for example. However, in addition to these measures, special steps must be taken to give
full recognition and value to the work and skills that are traditionally done by women. Where
appropriate these should be recognised within the national qualifications framework.

An integrated qualifications framework. By establishing a national qualifications framework which
integrates all elements of the education and training system, we must enable learners to progress to
higher levels from any starting point. They must be able to obtain recognition and credits for
qualifications and credits towards qualifications from one part of the system to another. The system
must enable assessment and recognition of prior learning and skills acquired through experience. To
this end, curriculashould cut across traditional divisions of skills and knowledge.

Early childhood educare, Educare, which introduces an educational component into child care, must
be an integral part of a future education and training system. The provision of educare for young
children is an important step toward lifetime leaming and the emancipation of women. We must
expand early childhood educare by supporting an increase in private and public funding;
institutionalising it within the ministry and the provincial departments, and raising national awareness
of the importance of such programmes. The democratic government also bears the ultimate
responsibility for training, upgrading and setting national standards for educare providers, with the
assistance of civil society.

Adult basic education and training.

3.3.9.1 Adult Basic Education (ABE), aimed at ensuring all South African adults have basic literacy
and numeracy skills, must be an integral part of a future education and training system. It
represents a crucial step in the reconstruction and development of our society. Special
provision must be made for ABE within the future national ministry and government
departments at all levels. ABE must conform to standards set out within the national
qualifications.

3.3.9.2 The provision of ABE must be expanded by building a partnership of all employer, labour,
local and provincial government, community and funding agencies. This will establish a
process t provide funding support to a national ABE programme, managed at provincial,
sectoral, local, community and workplace levels, and where possible using existing
educational and training facilities when these are unutilised or underutilised, such as at
night, over weekends and during holidays.

3.3.9.3. ABE must be centrally included in all reconstruction projects, and particularly programmes
for the unemployed. Micro enterprises must also be given assistance with respect to ABE.
Such provision should assist learners to seek related employment on conipletion of the
specific project.

Special education. Under minority rule and apartheid, the learning necus ot children and adults with
physical or other disabilities and impairments suffered massive negiect. The RDP must redress this
situation by establishing appropriate institutional! structures and inter-sectoral groups, mounting 4
national advocacy campaign to raise awareness of the issue, ensuring that existing facilities are
opumally used, and developing new programmes as needed. The education and training needs of the

RECONSTRUCTION AND DEVELOPMENT PROGRAMME PREVIEW COPY FOR REGIONS + 17 February, 1994

cm

disabled and other marginalised groups should be catered for as part of a process of facilitating access
to facilities and to the economy, whereby disadvantaged groups are seen as an asset - by themselves
and by society at large.

Compulsory school education.

3.3.41.1

Sauk ba

ke Wey oe

3.3.11.4

ae 115

a.3:11.6

bee

3.3.11.8

S482

The democratic government must restructure the education and training systems to meet the
needs of all. We must foster community participation and a culture of teaching and learning.
We must develop a national qualifications system that should recognise learners’ skills,
experience and studies, allowing them to gain access to different kinds of education and
training throughout their lives, and letting people re-enter education and training easily.

The democratic government must enable all children to go to school for at least 10 years.
The 10-year compulsory general education cycle should proceed from a pre-school reception
year to the present Standard 7, The government must phase in compulsory education as
soon as possible. To achieve this objective we must rebuild and expand our schools. Classes
of $0-80 or more students are unacceptable. We must ensure that no class exceeds 40
students»by the end of the decade.

In addition, we must align the structure, curricula and certification with the new national
qualifications system.

Education from the present Standard 8 up to the present Standard 10 must be redesigned and
incorporated into an integrated post-compulsory phase of learning, coordinated at national
level and resulting in a Further Education Certificate (or National Higher Certificate). This
will integrate post-compulsory schooling with training and should replace the matric with a
Further Education Certificate or National Higher Certificate.

The new programmes, curriculum and teaching approaches for the first four years of school
must take into account the language, learning and developmental needs of young children.

The need for school buildings must be addressed by vastly improved use of existing
facilities and a school-building programme. To this end all schools and existing facilities are
to be used to full capacity by the start of 1995 for both compulsory and non-compulsory
learning, and schools must be built in sufficient numbers to meet the real demand. We must
empower school communities to take responsibility for the care and protection of their
schools.

Farm schools and community schools must be progressively integrated into the ordinary
school system, and additional schools must be provided in commercial farming areas.

The existing curriculum bears the mark of racism, sexism, authoritarianism and outmoded
teaching practices. Transformation is essential. Curriculum change takes time, but we must
find points of entry to permit reconstruction to'start in 1994. Major stakeholders must reach
agreement through the National Education and Training Forum on the management 0!
curriculum and examinations in the transition period. We must estatlish institutes [6
curriculum development at national and provincial levels.

Black education, in particular, suffered severe deficits in the arcas |) sCaemee, mathematics,
technology, arts and culture. Curriculum develupment must therelor pas special attention
to these areas.

3.3.12 Further education and training.

a

38

RECONSTRUCTION AND DEVELOPMENT PROGRAMME PREVIEW COPY FOR REGIONS + 17 Febrwary, 1994

Da haok

33.102

Further education and training is the term used in this document to refer to those education
and training experiences which follow compulsory general education or its equivalent and
culminate in the National Higher Certificate.

Further education must provide schooling, training and adult education as an integrated
system. A balanced and flexible curriculum leading to the National Higher Certificate must
be developed for all learners in a variety of learning contexts: students learning within
formal institutions, workers in industry, out-of-school youth, and adults learning in
community learning centres. The curriculum must seek to open learning paths consistent

with the goals of lifelong learning.

3.3.13 Higher education.

Stik eed

3.43.2

The higher education system represents a major source for national development and
contributes to the world-wide advance of knowledge. But its present structure and capacity
are seriously distorted by the apartheid inheritance, its governance systems are outmoded,
and its funding arrangements have led to serious crises for both the students and the

institutions themselves.

In order to address these structural problems with the seriousness they deserve, the new
democratic government will consult all significant stakeholders with a view to appointing a
representative and expert higher education commission to investigate and report urgently on
the role of the higher education sector in national reconstruction and development; the
structure of the system; access/selection and exclusion; the role of open learning and
distance education; institutional governance and the governance of the system as a whole;
capacity-building and affirmative action in academic and administrative appointments; the
resource base for higher education, and the system of student finance.

3.3.14 Teachers, educators and trainers.

3.3,14.1

3.3.14.2

3,3.14.3

The reconstruction of education and training requires a body of teachers, educators and
trainers committed to RDP goals and competent in carrying them out. This requires that
they are able to understand and respond flexibly to the challenges of the new approaches to
curriculum, method, delivery and certification which an integrated system of education and
training demands. They must dedicate themselves to enhancing the quality of learning and
achi¢vement throughout the system. Teachers, educators and trainers who are inadequately
educated, badly treated by their employers, and poorly rewarded cannot be expected to fulfil
these expectations.

For adult basic education and training, the problems faced are those of insufficient and poor-
quality training opportunities for facilitators, non-existent qualifications and career paths,
and very low status. For school teachers, problems range from poor initial training, to
insufficient support services and low wages and poor conditions. The reconstruction of
education and training requires an overhaul of teacher/educator/trainer training and the

industrial relations system in line with other sectors.

Statutory national and provincial teacher, educator and trainer development centres should
be established to review all relevant education and training curriculum and support services.
They will take special measures to increuse the supply and competence of maths, science
and art teachers for schools, and educators traincrs for the non-compulsery learning sectors.

A transparent, participatory and cyunable process to review salaries and conditions of
service will be established. It will guarantee a living wage to the worst-paid teachers. It will
also establish appropriate career paths, introduce criteria for the recognition and grading of

REQONSTRUCTION AND DEVELOPMENT PROGRAMME PREVIEW COPY FOR REGIONS » 17 Pebrwary, 1994

3.4

teachers and trainers, and promote professional development within the proposed national
qualifications framework.

3.3.15 Restructuring training within an integrated education and training system.

3.3.15.1 The RDP proposes a substantially restructured and expanded training system, integrated

3,3.15.2

3.3.133

3.3.15.4

with Aduit Basic Education, post-Standard 7 formal schooling and higher education.

The national qualifications framework must be the mechanism by means of which this
integration is given effect.

The national ministry and provincial departments of education and training must consult
with the restructured bodies of civil society on policy issues.

Education and training for skills development must be modular and outcome-based; must
recognise prior learning and experience, must develop transferable and portable skills; must
have common standards, and must be integrated within the national qualifications and
accreditation system. Training programmes and schooling after Standard 7 should form part
of an integrated system. Training for self-employment is essential and must be offered.

ARTS AND CULTURE

3.4.1. Arts and culture embrace custom, tradition, belief, religion, language, crafts, and all the artforms like
music, dance, the visual arts, film, theatre, written and oral literature. Arts and culture permeate all
aspects of society and are integral parts of social and economic life, as well as business and industry
based upon the arts.

3.4.2 Under colonialism and apartheid the culture of the majority of South Africans was neglected, distorted
and suppressed. Freedom of expression and creativity were stifled. People and communities were
denied access to resources and facilities to exercise and develop their need for cultural and artistic
expression. Illiteracy, the lack of an effective educational system, and extreme poverty compounded
this cultural deprivation.

3.4.3 The RDP arts and culture policies aim to:

3.4.3.1

3.4.3.2

3.4.3.3

3.4.3.4

affirm and promote the rich and diverse expression of South African culture - all people
must be guaranteed the right to practise their culture, language, beliefs and customs, as well
as enjoy freedom of expression and creativity free from interference;

promote the development of a unifying national culture, representing the aspirations of all
South Africa's people (this cannot be imposed, but requires educating people in principles of
non-racialism, non-sexism, human rights and democracy);

ensure that resources and facilities for both the production and the appreciation of arts and
culture are made available and accessible to all (priority must be given to those people and
communities previously denied access to these resources),

conserve, promote and revitalise our national cultural heritage s) | iy accessible to all
communities (historical and cultural collections, resources and sites must tully reflect the
many components of our cultural heritage, and. in particular, neglected and suppressed
aspects of our people's culture must be conserved).

place arts education firmly within the national educational! curricula, as well as in non-
tormal educational structures:

37

REQONSTRUCTION AND DEVELOPMENT PROGRAMME PREVIEW COPY FOR REGIONS + 17 Pebewary, 1994

3.4.4

3.4.5

3.4.6

3.4.7

3.4.8

3.4.9

3.4.10

3.4.11

3.4.12

3.4.13

3.4.3.6 link culture firmly to areas of national priority such as health, housing, tourism, etc., to
ensure that culture is entrenched as a fundamental component of development;

3.4.3.7 establish and implement a language policy that encourages and supports, financially and
otherwise, the utilisation of all the languages of South Africa, and

3.4.3.8 cooperate with educational bodies and the media in eradicating illiteracy, and in promoting
a reading and learning culture.

A Ministry of Arts and Culture must be established to implement these objectives.

Existing publicly funded and parastatal cultural and arts structures, such as the Performing Arts
Councils, the National Gallery, museums, libraries, archives and monuments, must be democratised.
Commissions to investigate the organisation, funding, policies and future roles of such structures must
be established as a matter of urgency. These commissions should report within six months of their
appointment, and complete the tasks of transformation within two years.

Ultimately government is responsible for the provision of cultural amenities for each community. As
an immediate measure, established community art centres should be subsidised by government. In the
longer term, the Ministry of Arts and Culture should work with local and regional government and
community structures to form community art centres throughout the country.

With local and provincial government, the Ministry should establish libraries, museums, galleries,
monuments and historical sites. These should reflect the many different strands of South African
culture. Each community should have these facilities located within reach.

Arts education should be an integral part of the national school curricula at primary, secondary and
tertiary level, as weil as in non-formal education. Urgent attention must be given to the creation of
relevant arts curricula, teacher training, and provision of facilities for the arts within all schools.

Nationally and within each region, democratic Arts Councils will be established as statutory bodies.
Allocations to such bodies will be made by the government, operating within its policy framework.
Principles along which government funding will be disbursed must include redressing imbalances of
the past, transformation and development, non-racialism, non-sexism, human rights and democracy.

The Pan-South African Language Institute proposed in the Interim Constitution must be constituted as
a matter of urgency, to devise programmes and seek resources to develop all South African languages
and particularly the historically neglected indigenous languages.

The government will encourage and facilitate cultural exchange between the people of South Africa
and the rest of the world. This exchange will be informed by the views of cultural workers and
associations and will be aimed at promoting local developmental programmes and international
understanding.

A Statutory national body should be created to encourage the development of a healthy, vibrant and
diverse local South African film and audio-visual industry, retlecting the realities of all the people of
South Africa. This body should work to give the majority of South African viewers and audio-visual
practitioners access to audio-visual communications.

Legislation hindering the development of the arts (lor example. censorship laws) must be repealed.
Legislation should be adopted based on principies of transtormation. reconstruction and development,
and in line with international conventions on the arts. labour legislation protecting cultural workers,
and copyright laws

RECONSTRUCTION AND DEVELOPMENT PROGRAMME

3.5

3.6

3.4.14

3.4.15

38
PREVIEW COPY FOR REGIONS + 17 Pebreary, 1994

We must develop human resources to fulfil these objectives, in part through employing additional
civil servants on a contract or permanent basis, as well as through retraining existing personnel.

The Ministry of Arts and Culture must have its own budget. Funding for arts and culture will also be
obtained through encouraging partnerships between government, business, non-governmental
organisations, communities, and the international community. Within this framework, the national
budget will carry an allocation specifically for culture. The framework will make provision for tax
incentives and rebates to encourage investment in arts and culture.

SPORT

3.001

3.5.2

Sted

3.5.4

3.5.5

One of the cruellest legacies of apartheid is its distortion of sport and recreation in our society, the
enforced segregation of these activities and the gross neglect in providing facilities for the majority of
South Africa's people. This has denied millions of people and particularly our youth the right to a
normal and healthy life.

It is important to ensure that sporting and recreational facilities are available to all South African
communities. Pasticipation in sporting and recreational activities should reflect the country's
demographics. Removal of obstacles that preclude specific sections of the community from
participation is crucial. This cannot be left entirely in the hands of individual sporting codes or local
communities, both of whom require support and encouragment.

Sport and recreation are an integral part of reconstructing and developing a healthier society. Sport
and recreation should cut across all developmental programmes, and be accessible and affordable for
all South Africans, including those in rural areas, the young and the elderly. The RDP must facilitate
the mobilising of resources in both the public and private sectors to redress inequalities and enhance

this vital aspect of our society.

Particular attention must be paid to the provision of facilities at schools and in communities where
there are large concentrations of unemployed youth. Sport and recreation are an integral and important
part of education and youth programmes. In developing such programmes it is recognised that sport is
played at different levels of competence and that there are different specific needs at these levels.

The new democratic government must work with the National Sports Commission in developing and
implementing a sports policy. This should include issues such as the establishment of an independent
national sports controlling agency for the control of drugs in sport, as well as a national sports
academy to undertake and coordinate training programmes conceming coaching, refereeing, umpiring
and sports management.

YOUTH DEVELOPMENT

3.6.1

3.6.2

The high levels of youth unemployment require special programmes. A national youth service
programme is already giving young people structured work experience while continuing their
education and training. The programme should not just be seen as a job creation measure, however,
but as youth development and capacity building. Care must be taken to ensure that the programme
does not displace or substitute workers in permanent employment.

Youth development more generally must focus on education and traming, joh crcabon, and enabling
young people to realise their full potential and participate sully inthe society and thei future. Et must
restore the hope of our youth in the future, and tn ther. acity te Channel their resourcefulness and

energy into reconstruction and development.

The national youth service programme must beter cducaic. develop, train and empower youth and
enable them to participate in the reconstruction of society through involvement in service projects in

9%

RECONSTRUCTION AND DEVELOPMENT PROGRAMME PREVIEW COPY FOR REGIONS - 17 Pebreary, 1994

3.6.4

3.6.5

3.6.6

#., . 4

the community such as literacy, welfare, and improving infrastructure. All development and job

creation programmes such as a national public works programme must address the problem of youth
alienation and unemployment.

A national institution must coordinate the programme in consultation with other sectors. Areas in
which the youth service programme could contribute include educare and literacy programmes, health,
environmental protection, rural and urban infrastructure development, and peace monitoring. The
programme must also be used to enhance awareness of the relationships between productivity, the
economy and the role of science and technology in achieving the objectives of the RDP. Finally, the
youth service programme must also build the spirit of national unity and reconciliation amongst the
youth, as well as a sense of service towards the community and the nation.

Appropriate government departments must more forcefully represent youth interests, including
through allocating resources to organisations involved in youth work. An autonomous National Youth
Council should be given support in coordinating youth activities, lobbying for the rights of young
people, and representing South Africa internationally. A review of legislation affecting youth and to
implement youth service programmes must also be carried out.

The democratic government must support the International Convention on the Rights of the Child, and
the supporting Plan of Action. It must work to protect the lives of children, to promote the full
development of their human potential, and to make them aware of their needs, rights and
opportunities. The needs of children must be paramount throughout all programmes aimed at meeting
basic needs and socio-economic upliftment.

*

RECONSTRUCTION AND DEVELOPMENT PROGRAMME PREVIEW COPY FOR REGIONS « 17 February, 1994

Chapter Four
Building the Economy

4.1 PROBLEM STATEMENT

4.1.1

4.1.3

4.1.4

4.1.5

4.1.6

The South African economy is in a deep-seated structural crisis and as such requires fundamental!
reconstruction. For decades forces within the white minority have used their exclusive access to
political and economic power to promote their own sectional interests at the expense of black people.
Black people have been systematically exploited and oppressed economically and South Africa now
has one of the world's most unequal patterns of distribution of income and wealth. A disproportionate
Share of the burden of poverty and inequality has fallen on black women who have been subject to
systematic gender oppression. Economic deprivation has created a fertile base for the violence and
instability now engulfing our country. The ever-changing and destabilising global economy has also
adversely affected the local economy.

Marked regional disparities exist within the economy as a result of policies designed to ensure a
migratory labour supply to the mines and of the ethnic division of South Africa under the apartheid
system. Enforced segregation and industrial decentralisation have located whole communities in areas
where their economic viability is threatened. A few metropolitan regions account for the bulk of
national production, while some provinces are affected by a crisis of unemployment, and can barely
afford to provide basic services. Almost half the black population was compelled to live in so-called
“homelands” where per capita incomes are under a quarter of the national average.

Successive minority governments and business have tried to promote growth by encouraging local
production of manufactured goods which were previously imported. This policy led to the emergence
of a significant manufacturing sector in our country. However, the disparity between the low income
levels of the majority of consumers and factors leading to rising price levels, ensured that the
manufacturing sector served the wealthy and excluded the poor. The sector is in general characterised
by poor productivity and an undue dependence upon low wages. It makes little contribution to foreign
exchange earnings, but depends to a very great extent on imported machinery and equipment paid for
out of foreign exchange earned by mineral exports.

Over the past decade and more, growth stagnated, investment dropped precipitously and average real
incomes declined. The economy remains dependent on mineral exports, and the manufacturing sector
cannot Create jobs, meet the basic needs of the majority or compete on world markets. The decline in
investment within the public and private sectors, and capital flight, have contributed to an ageing
capital stock and contraction in the manufacturing sector. Capacity utilisation of manufacturing plant
and equipment remains at very low levels. Speculative investment has replaced productive investment,
with a consequent decline in job creation and overall employment levels.

The South African economy is also characterised by excessive concentration of economic power in the
hands of a tiny minority of the population. Through the pyramid system and the resultant control over
a vast network of subsidiary companies, a small number of very large conglomerates now dominate
the production, distribution and financial sectors. In addition there is a high degree of monopolisation
and blatant anti-competitive tendencies such as predatory pricing and interlocking directorships in
certain industries. With regard to land, white ownership and often corporate ownership are
overwhelming. Not only does this create racial and social tension, but it is to be seriousiv doubted that
such high levels of concentration can be economically beneficial.

A particular weakness of the economy, aggravated by racist policies, is the inabilily to maintain a
dynamic small-scale and micro enterprise sector. Smaller tirms, especially if owned by black people,
can rarely develop productive linkages with the large-scale sector. Most people in the informal sector
lack productive and managerial skills plus access to business sites, capital and markets. They face an
array of repressive regulations originally designed to undermine black business and farming.

41
RECONSTRUCTION AND DEVELOPMENT PROGRAMME PREVIEW COPY FOR REGIONS + 17 Febewary, 1994

4.1.7 A critical cause of inefficiency and inequality lies in the position of labour. Economic growth
depended on the centrality of the cheap labour system. Rigid hierarchies and oppressive labour
relations ignored the skills latent in our experienced industrial workforce. Apartheid laws denied
workers their basic rights. High levels of unemployment and oppressive legislation made it difficult
even for organised workers to maintain a living wage. The lack of skills forms a major obstacle to the
development of a modern economy able to support a decent living standard for all our people. The
apartheid state also systematically excluded workers from collective bargaining and policy making at
national and shop-floor levels. While the struggies of organised workers have reversed this to some
extent, the right to strike continues to be limited, farm and domestic workers do not have basic rights,
the majority of workers earn low wages, and there are enormous wage differentials.

4.1.8 Only a quarter as many women as men hold jobs in the formal sector. High unemployment, the
migrant labour system and the difficulties facing the informal sector hit women particularly hard.
Within formal employment, women are discriminated against in many areas such as wages, job
security, specific needs of women workers, and employment opportunities. The migrant labour system
continues to disempower both workers and their families.

4.1.9 The agricultural sector and rural economy are also in crisis. Many white-owned farms are deeply
indebted and vast tracts of land designated for occupation by whites are inefficiently cultivated. Many
thousands of black rural households are, meanwhile, crammed into tiny plots unable to produce or buy
affordable food. Government decentralisation policies have failed to channel resources to the rural
areas which remain the most deprived parts of the country.

4.1.10 The apartheid state's economic agencies have been contradictory and secretive, and were subordinate
to apartheid's logic and the seige economy mentality. Parastatals such as the Industrial Development
Corporation (IDC), Development Bank of Southern Africa (DBSA) and the Small Business
Development Corporation (SBDC) could be immensely important in driving industrial, socio-
economic and infrastructural development. But in recent years, under the cloak of secrecy, the
apartheid state privatised or commercialised many agencies in the public sector (such as Transnet,
Eskom, Telkom, Iscor, Foskor, SAA, the Post Office, Forestry and others). Often this policy,
unilaterally imposed for ideological reasons, harmed basic services to the poor or reduced the ability
of the state to mobilise resources for development.

4.1.11 The consequences of such undemocratic state policies in a structurally unbalanced economy include a
serious fiscal crisis, with high personal tax rates accompanying a large budget deficit. In addition, the
country's balance of payments problems, exacerbated by capital flight, have made it difficult to service
the foreign debt incurred during the apartheid era. The need to maintain tight controls over economic
policy as a result, has had a devastating effect on economic growth and employment.

4.1.12 In past years, South Africa's relations with its Southem African neighbours were hostile, and apartheid
destabilisation desuoyed much of their economic base. Within the South African Customs Union
(SACU) there has been no consideration of the differing needs of the participating countries and no
common developmental policies.

4.2 VISION AND OBJECTIVES

4.2.1 The fundamental principles of our economic policy are democracy, participation and development.
We are convinced that neither a commandist central planning system nor an untettered tree market
system can provide adequate solutions w the problems contronting us. Reconstruction and
development will be achieved through the teading and enabling role of the state. a thriving private
sector, and active involvement by all sectors of civil society

4.2.2 Our central goal tor reconstruction and development is to create a strong, dynamic and balanced
economy which will:

42

REQONSTRUCTION AND DEVELOPMENT PROGRAMME PREVIEW COPY FOR REGIONS - 17 February, 1994

4.2.3

4.2.4

4.2.5

4.2.2.1 eliminate the poverty, low wages and extreme inequalities in wages and wealth generated by
the apartheid system, meet basic needs, and thus ensure that every South African has a

decent living standard and economic security;

4.2.2.2 address economic imbalances and structural problems in industry, trade, commerce, mining,
agriculture, finance and labour markets;

4.2.2.4 ensure that no one suffers discrimination in hiring, promotion or training on the basis of
race or gender;

4.2.2.5 develop the human resource capacity of all South Africans so the economy achieves high
Skills and wages;

and their organisations, by encouraging broader participation in decisions about the
economy in both the private and public sector,

4.2.2.7 create productive employment opportunities at a living wage for all South Africans;

4.2.2.8 develop a prosperous and balanced regional economy in Southern Africa based on the
principle of equity and mutual benefit, and

4.2.2.9 integrate into the world economy in a manner that sustains a viable and efficient domestic

take at any point, but whether Such actions must strengthen the ability of the economy to respond to
the massive inequalities in the country, relieve the material hardship of the majority of the people, and
Stimulate economic growth and competitiveness.

In restructuring the Public sector to carry out national goals, the balance of evidence will guide will
guide the decision for or against various economic policy measures. The democratic government must

4.2.5.1 increasing the public sector in strategic areas through, for example. nationalisation.
purchasing a Shareholding in companies. establishing new public corporations or join
ventures with the private sector, and

4.2.5.2 reducing the Public sector in certain areas in wars (Nat enhance ctlicicney, advance
atfirmative action ing eMpower ine pistoricalls Uisadvantaged, while ensuring the
Protecuion of both consumers and the rights and employment ot workers.

43

RECONSTRUCTION AND DEVELOPMENT PROGRAMME PREVIEW COPY POR REGIONS + 17 February, 1994

4.2.8

4.2.9

4.2.11

The RDP will foster a new and constructive relationship between the people, their organisations in
civil society, key constituencies such as the trade unions and organised business, the democratic
government, and the workings of the market.

We can only achieve our economic objectives if we establish transparent, participatory and
accountable policy-making procedures in both the public and private sectors. The democratic
government, the trade union movement, business associations and the relevant organisations of civil
society must cooperate in formulating economic policy. The democratic government must review the
inherited economic departments and agencies to streamline policy-making and implemeniation and to
define appropriate relationships with forums and the various tiers of government.

Economic growth is critical for sustainable improvements in services and incomes. We must shape the
expansion of the social and economic infrastructure to stimulate industry and agriculture. These
policies must be coordinated with the development, on a cooperative basis, of the Southern African
region as a whole. On this foundation, we must establish a dynamic, integrated economy able to
provide higher incomes, reduce excessive dependence on imports and compete on foreign markets.

All of our policies must aim to alleviate inequalities in incomes and wealth and expand productive
opportunities. Critical programmes in this area include urban and rural development, industrial
strategy, support for small and micro enterprise (including small-scale farming), job creation, land
reform and other programmes discussed in earlier chapters. The democratic government must also
create laws and institutions to end discrimination in hiring, promotion and training.

Our economic policies require human resource development on a massive scale. Improved training
and education are fundamental to higher employment, the introduction of more advanced
technologies, and reduced inequalities. Higher labour productivity will be the result of new attitudes
towards work in the context of overall economic reconstruction and development.

Basic to the consultative and interactive approach to economic policy is the protection of worker
rights, labour standards and proactive labour market policies. The RDP makes a decisive break with
the exploitative cheap labour policies of apartheid and moves toward education, training, skills, a
living wage, and collective bargaining as the basis for enhanced productivity in the economy.

4.3 INTEGRATING RECONSTRUCTION AND DEVELOPMENT

4.3.1

4.3.3

One of the basic principles outlined in Chapter One was that of linking reconstruction and
development. This is in contrast to the argument that growth is needed before development is
possible, an approach which would leave intact the severe regional, racial and structural imbalances
that characterise the present economy. To prevent this from happening, reconstruction and
development must be an integrated process. Such integration must be basic to all economic policy.
This is where the public sector must play a major enabling role, since it cannot be expected that the
market will make such a structural transformation on its own. Yet without such a transformation
democracy will not survive, because socio-economic stability will not be achieved.

The RDP's principles recognise the mutually reinforcing nature of urban and rural development
Strategies through, for example, the benefits of improved agriculture to the urban economy. Strategies
for urban and rural development must be integrated within the RDP to ensure that the necds oF all our
people are met in a balanced and equitable manner. An integrated strategy, is cssentiai cor the process
of unifying our economy and linking reconstruction and developmen!

In general, the RDP recognises the need to break down apartheid geography through fand reform,
more compact cities, decent public transport, and the development of industries and services that use
local resources and/or meet local needs. In this context, the RDP must seck to help people generate
economic wealth in their chosen communities.

RECONSTRUCTION AND DEVELOPMENT PROGRAMME PREVIEW COPY FOR REGIONS «© 17 Febrwary, 1994

4.3.4

4.3.5

4.3.6

4.3.7

4.3.8

4.3.9

4.3.10

4.3.11

Macro-economic policies must take into consideration their effect upon the geographic distribution of
economic activity. Additional strategies must address the excessive growth of the largest urban
centres, the skewed distribution of population within rural areas, the role of small and medium-sized
towns, and the future of declining towns and regions, and the apartheid dumping grounds.

In order to foster the growth of local economies, broadly representative institutions must be
established to address local economic development needs. Their purpose would be to formulate
strategies to address job creation and community development (for example, leveraging private sector
funds for community development, investment strategies, training, small business and agricultural
development, etc.). If necessary, the democratic government must provide some subsidies as a catalyst
for job-creation programmes controlled by communities and/or workers, and target appropriate job
creation and development programmes in the most neglected and impoverished areas of our country.
Ultimately, all such projects should sustain themselves.

The incentives for decentralisation introduced under apartheid frequently proved excessively
discretionary and open to misuse. Still, in many areas simply eliminating them would cause severe job
losses. For this reason, the democratic government must establish clear-cut guidelines and procedures
for reviewing decentralisation incentives. Where communities and workers can certify that the
subsidies are being utilised in a sustainable, non-exploitative manner, the democratic government
must maintain the incentives. Otherwise, it must redirect subsidies to ventures that promote linkages
within the local economy.

The Interim Constitution will have a significant impact on economic growth. Setting up new
provinces will affect investment flows, regional assets and fiscal transfers as well as the institutions
that make and implement policies. Every province must develop a programme for regional
reconstruction and development in the context of the national RDP.

Rural development. The RDP aims to improve the quality of rural life. This must entail a dramatic
land reform programme to transfer land from the inefficient, debt-ridden, ecologically-damaging and
white-dominated large farm sector to all those who wish to produce incomes through farming in a
more sustainable agricultural system. It also entails access to affordable services, and the promotion of
non-agricultural activities. In the ‘homelands’, where most rural people live, social services and
infrastructure remain poorly developed, and this must be remedied.

Development efforts must address the special position of women, as they make up the majority of
small-scale farmers, and bear the brunt of poverty, overcrowding and hunger in rural areas. They take
responsibility for all aspects of their families’ lives, including the need to obtain food, fuel and water,
often over long distances, but are excluded from decision-making structures. They are the bulk of the
seasonal labour force in agriculture, but receive the lowest wages. Their priorities include accessible
water, sewage disposal, infrastructure, land rights, housing, training, local development committees, a
disaster relief fund, markets for their production, and good representation in local government.

To correct the history of underfunding, misuse of resources and corruption, substantial transfers of
funds from the central government to the rural areas will be required, targeted to meet the needs of the
rural poor. The democratic government must institute a land reform process that allows people in the
rural areas access to land for production and residence. It must support part-time activities. including
small-scale farming, which can increase productivity, incomes and household tood security. [t must
end the inequitable and inefficient subsidisation of the large farm sector

Rural communities need practical access to health, education, support tor entrepreneurship cincluding
agriculture), financial services. welfare, and police and the courts. The objective ot rural development
policy must be to coordinate the activities of the relevant democratic government agents, and to pass
much of the control of democratic government-funded services to the rural people tor whom they are
intended, within the framework of national and provincial policy in each sector. This will require
fundamental changes to institutions and processes.

45

RECONSTRUCTION AND DEVELOPMENT PROGRAMME PREVIEW COPY FOR REGIONS + 17 February, 1994

4.3.12

4.3.13

4.3.14

4.3.15

4.3.16

4.3.17

4.3.18

4.3.19

4.3.20

Rural people must contro! government-funded services within the framework of national and
provincial policy. We must establish democratic structures to control the finances for local
development activities. Elected councillors must replace the non-representative Regional Service
Councils and Joint Service Boards at the district and local level.

Generally, the democratic government must support Capacity-building in the District Councils, Local
Councils, and voluntary community structures such as local development forums. To advise
communities of their options, it must train a cadre of Community Development Officers. Their
training must include sensitivity to gender issues, The Community Development Officers must work
for the District Councils. Wherever possible, they must come from the areas they serve.

Educational opportunities in the rural areas lag far behind those in the cities. Human resource
development forms a key component in building the rural economy. It must include the opening up
and reorganisation of agricultural schools to meet the needs of the majority. Training and retraining of
new and existing extension workers, community development officers and officials dealing with land
reform is critical to the success of our rural development and land reform programme. These training
and retraining programmes must be designed within the first 18 months of the RDP.

The democratic government must include a central Ministry of Rural Development and Land Reform.
The Ministry must include a unit for rural data collection and an early warning system for food and
water security.

Urban development. The importance of urban development strategies within the RDP is based on a
recognition that the urban areas account for over 80 per cent of the country’s gross domestic product
(GDP), and accommodate approximately 60 per cent of South Africa's population. Continuing
demographic shifts may increase urbanisation to over 70 per cent of the population by 2000. The
urban areas account for a significant proportion of the population and the economic base of the
country. The three major metropolitan areas (the PWV, Greater Cape Town and Durban) account for
37,7 per cent of the total population and 67,7 per cent of the country's total manufacturing output. The
PWV region alone accounts for 40 per cent of the country's total economic output.

Even with a strong rural development effort, economic activities will remain concentrated in the cities.
Ensuring the quality of life, sustainability and efficiency in the urban areas will thus prove critical for
renewing growth and promoting equity. The design of a comprehensive national urban strategy will
help serve the cities’ rapidly growing populations and address the inequities and structural imbalances
caused by the apartheid system. The urban development strategy must also be aimed at fostering the
long-term development and susiainability of urban areas while alleviating poverty and fostering
economic expansion.

The urban programme must therefore have several dimensions. It must create a functionally
integrated, efficient and equitable urban economy; effective and democratic structures of urban
governance and management; enhance the position of women in the cities, and initiate a social
environment which contributes to a better quality of life.

Sustainable economic expansion must redress the imbalances in infrastructure. transportation and
basic services in our cities. Housing, transport, electrification and other infrastructure and service
programmes should promote access to employment opportunities and urban resources, and the
consequent densification and unification of the urban fabric. In particular, sites tor industries and
services that will not harm the environment should be located near existing townships. New low-
income housing should be placed near emplovment opportunities wherever possible.

The environmental impact ot urban reconstruction and development must form an integral part of an
urban development strategy. This includes the encroachment of urban development on viable
agricultural land, air pollution, water pollution and waste management.

46

RECONSTRUCTION AND DEVELOPMENT PROGRAMME PREVIEW COPY FOR REGIONS + 17 Febrwary, 1994

4.4 INDUSTRY, TRADE AND COMMERCE

4.4.1 Our economy requires coordinated and effective policies that combine private sector initiatives and
government support to address its structural weaknesses. Coherent strategies are required in industry,
trade and commerce to meet the challenges of a changing world economy, while meeting the needs of
the majority. We also require broadly accepted, well-designed programmes which minimise the costs
of restructuring and change. A five per cent growth rate and the creation of 300 000 to 500 000 non-
agricultural jobs per annum can be achieved within five years.

4.4.2

Objectives of industry, trade and commerce policy.

4.4.2.1

4.4.2.2

4.4.2.3

4.4.2.4

4.4.2.5

The key goals of our industrial strategy are a substantial increase in net national investment,
especially in manufacturing, job creation and the meeting of basic needs. Through the
prudent implementation of macro-economic policies such as monetary policies, and in
particular such instruments as interest rates and an increase in public sector investment,
gross investment in industry will increase. In general, our objective is to enhance our
technolagical capacity to ensure that as part of the restructuring of industry, South Africa
emerges as a significant exporter of manufactured goods. The industrialisation strategy aims
at the promotion of a more balanced pattern of industrial development, capable of
overcoming the acute over-concentration of industrial activities in certain metropolitan
centres of the country.

Trade and industrial policy must respond to the demands of reconstruction and
development. In particular, industrial expansion should follow from the extension of
infrastructure to urban, peri-urban and rural constituencies. Some of this new demand will
be met by utilising the considerable excess capacity that exists within industry. That should
lower unit costs, raise productivity and foster innovation, providing a new impetus for
international competitiveness.

While trade policy must introduce instruments to promote exports of manufactured goods in
general, industrial policy must support and strengthen those internationally competitive
industries that emerge on the basis of stronger internal linkages, meeting the needs of
reconstruction and raising capacity utilisation.

Specific policies aim to expand the competitive advantage already enjoyed by the mining
and capital- and energy-intensive mineral processing and chemical industries that lie at the
core of the economy and which provide the bulk of the country's foreign exchange 4s
outlined in the section on Mining and Minerals below.

Policy must address the constraints on those segments of manufacturing that fall outside of
bulk steel, metals and chemical production. The adjustments following from the recent
GATT agreement require a balance between promoting efficiency and reducing and sharing
out the painful impact of adjustment among various parties concerned. Substantial
institutional development on a national and sectoral level is necessary for this process as
discussed in the ‘Institutional Reform’ section below.

The RDP must strengthen and broaden upstream and downstream linkages between the
burgeoning mineral-based industries and other sub-sectors of industry. A broad range 0!
instruments will be deployed. including Closer scrutiny 01 pricing policies tor imermediate
inputs. Where conglomerate control impedes the objectives, anti-trust policies will be
invoked.

LAN

47

RECONSTRUCTION AND DEVELOPMENT PROGRAMMB PREVIEW COPY FOR REGIONS : 17 Febrwary, 1994

4.4.2.7

Policies must aim to reduce the gap between conglomerate control of a wide range of
activities within the financial, mining and manufacturing sectors and sub-sectors, on the one
hand, and the difficulties faced by small and micro enterprises in entering those sectors on
the other. As outlined in the section on small and micro enterprise, instruments may include
regulatory reform, supportive measures in terms of markets, credit and training, plus
measures to prevent the abuse of market power.

4.4.3 Trade policy.

4.4.3.1

4.4.3.2

4.4.3.3

4.4.3.4

Given the foreign-exchange constraints on growth in South Africa, trade policies assume
enormous importance. The agreements that a democratic South Africa enters into with her
major trading partners will play a crucial role in future development.

A democratic South Africa must rapidly restructure the relationships with neighbouring
African countries, who import about 20 per cent of our exports. More balanced and less
exploitative trade patterns will result in more mutually beneficial outcomes. That will
Strengthen the Southern African region in its relations with emerging global trading blocs,
as discussed in the section on Southern African Regional Policy below,

Tariff reductions on imports form both a GATT requirement and a strategic instrument for
trade policy. Presently, they are subject to negotiation within the National Economic Forum.
The government must develop democratic and consistent procedures for revising tariffs and
export incentives. It must simplify the tariff structure and begin a process of reducing
protection in ways that minimise disruption to employment and to sensitive socio-economic
areas. National agencies concerned with international trade and tariffs must be sensitive to
the interests of the Southern African region as a whole.

We must develop more cost-effective incentives schemes, designed to improve performance
and not just the volume of exports. Trade policy strategies to promote exports must consider
ways to reduce the bias against small and medium-sized exporters. They should facilitate
the provision of short-term export finance to small business. Any duplication between the
trade-promotion arms of the Department of Trade and Industry and the private-sector South
African Foreign Trade Organisation should be eliminated.

4.4.4 Institutional reform.

4.4.4.1

4.4.4.2

4.4.4.3

There should be a review of functions of government departments, particularly those of
importance to the RDP, and of the mandates of the various parastatals and development
institutions. As they are key structures for the successful implementation of the RDP, sucha
review must be given priority. The evaluation should identify whether the body is
appropriate and should continue more or less in its present form, or whether it should be
Significantly altered or merged or closed down. For instance, it should be considered
whether there is an advantage in maintaining the science councils or whether some or all of
them should be merged.

in order to promote greater accountability in parastatals, lines of funding and reporting mus!
be restructured to ensure that each parastatal is directly accountable to a particular ministry
This means that funding and reporting lines must be the same.

The processes of commercialisation and privatisation of parastatals must be reviewed, to the
extent that such processes are notin the public interest. This will require the claboration of
more appropriate business plans. and publication of those plans tor open debate. The
democratic government will reverse privatisation programmes that are contrary to the public
interest.

RECONSTRUCTION AND DEVELOPMENT PROGRAMME PREVIEW COPY FOR REGIONS + 17 Febrwary, 1994

4.4.5 Negotiating forums.

4.4.5.1 The RDP must work with existing forums, such as the NEF, the National Electricity Forum
and the National Housing Forum, and must develop a more coherent and representative
system on a regional and sectoral basis. These forums must continue to build consensus
around industrial and trade policy. In particular, they must: address the needs of industrial
sectors forced to adjust and the question of how to share the costs of adjustment; identify
new economic sites of competitive advantage; develop aspects of industrial and trade policy,
and deal with problems of extending infrastructure and meeting basic needs.

4.4.5.2 The democratic government must work together with organised labour and business in the
NEF to ensure coordination between macro-economic policies and trade, industrial and
technology strategy. If necessary, it must restructure the NEF to ensure appropriate
participation and powers.

4.4.5.3 Coordination of issues around energy may be facilitated by a National Energy: Policy
Council, as an advisory body, to oversee financing in the energy sector and to set out
national policies on all aspects of energy, including liquid fuels, coal, gas, electricity,
nuclear power, and other forms of energy for rural and urban consumers.

4.4.6 The corporate sector.

4.4.6.1 Business can profit hugely from the new opportunities offered by economic and social
changes, especially the increased engagement with regional and international trade and the
development of social and economic infrastructure. To help bring about a more dynamic
business environment, the democratic state must develop measures to encourage increased
productive investment, greater investment in research and development, cooperation with
small and micro enterprise, workplace democratisation, and more open and flexible
management styles.

4.4.6.2 The RDP will introduce strict anti-trust legislation to create a more competitive and
dynamic business environment. The central objectives of such legislation are to
Systematically discourage the system of pyramids where they lead to over-concentration of
economic power and interlocking directorships, to abolish numerous anti-competitive
practices such as market domination and abuse, and to prevent the exploitation of
consumers. Existing state institutions and regulations concerned with competition policy
must be reviewed in accordance with the new anti-trust policy. The democratic government
Should establish a commission to review the structure of control and competition in the
economy and develop efficient and democratic solutions. It must review existing policy and
institutions with the aim of creating more widely spread control and more effective
competition. To that end, it must consider changes in regulation or management in addition
to anti-trust measures.

4.4.6.3 The domination of business activities by white business and the exclusion of black people
from the mainstream of economic activity are causes for great concern for the reconstruction
and development process. A central objective of the RDP is to deracialise business
ownership and control completely, through focused policies of black economic
empowerment. These policies must aim to make it easier for black people to gain access
Capital for business development. The democratic government musi ensure that no
discrimination occurs in tinancial insututions. State and parastatal institutions will also
provide capital for the auainment of black cconomic empowerment objectives. The
democratic government must also introduce tendering-out procedures which facilitate black

RECONSTRUCTION AND DEVELOPMENT PROGRAMME

4.4.7

4.4.6.4

49
PREVIEW COPY FOR REGIONS + 17 Febrwary, 1994

economic empowerment Special emphasis must also be placed on training, upgrading and
real participation in ownership.

Stable, consistent and predictable policies as well as a dynamic economy should create a
climate conducive to foreign investment. The democratic government must ensure treatment
of foreign investors equivalent to treatment of national investors. They should abide by our
laws and standards (especially with respect to labour), and obtain the advantages available
to all investors. The democratic government must develop policies to ensure that foreign
investment creates as much employment, technological capacity and real knowledge transfer
as possible, allowing greater participation by workers in decision-making.

Micro, small and medium-sized enterprise.

4.4.7.1

4.4.7.2

4.4.7.3

4.4.7.4

4.4.7.5

4.4.7.6

4.4.7.7

4.4.7.8

Small businesses, particularly those owned and operated by black entrepreneurs, must form
an integral part of the national economy and economic policy. Micro producers should
develop from a set of marginalised survival strategies into dynamic small enterprises that
can provide a decent living for both employees and entrepreneurs. Policies to that end must
focus om women, who are represented disproportionately in this sector, especially in the

rural areas.

Government agencies must provide infrastructure and skills to raise incomes and create
healthier working conditions in small businesses. They must protect the rights of workers,
both family members and others, and provide training in productive and managerial skills.

Experience shows that four major constraints face small and micro enterprise: the lack of
credit, access to markets, skills and supportive institutional arrangements. In collaboration
with small-scale entrepreneurs themselves, the democratic state must develop an integrated
approach to all four problems.

In the context of a supportive industrial strategy, all levels of the democratic government -
central, regional and local - must where possible foster new, dynamic relationships between
large, small and micro enterprises in ways that do not harm the interests of labour. As
discussed in the chapter, ‘Implementing the RDP’, the government must require financial
institutions to lend a rising share of their assets to black-owned enterprise. All levels of the
state should also, as far as possible, support joint marketing strategies and technological
development within the small-scale sector.

The democratic government must rationalise and restructure existing parastatals to support
small enterprise as far as their underlying purposes allow. it should reorganise the SBDC
and reform the lending criteria of other agencies such as the IDC and the development
corporations so that they incorporate small and micro enterprise in their plans as far as
feasible, and end corruption and nepotism in their lending programmes.

Local govermments must review zoning and licensing regulations to end discrimination
against micro and small enterprise,

All levels of the democratic government must review their procurement polvies to ensure
that, where costs permit, they support smail-scale enterprise. In particular, we must explore
new policies on the procurement of furniture and schou! uniforms. which micro producers
might supply. Procurement regulations must, however. require appropriats labour standards
for suppliers.

A specilic programme musi be established Ww ensure government support for women
entrepreneurs. [t must be casily accessible and include skills training and access to credit.

$0

RECONSTRUCTION AND DEVELOPMENT PROGRAMME PREVIEW COPY FOR REGIONS + 17 Pebrwary, 1994

4.4.8

4.4.7.9

4.4.7.10

4.4.7.11

4.4.7.12

In addition to policies to support small-scale producers in general, the micro enterprise
sector requires special attention. [t will benefit from measures ranging from welfare support
to activities that directly enhance competitiveness. Since the majority of informal sector
workers are women, all agencies set up to support the informal sector should address their

needs.

The development of social and economic infrastructure, including pre-schools, water
supplies, roads and electrification, will go a long way to improving productivity.
Infrastructural programmes must therefore take the implications for micro enterprise into
account.

To better serve micro enterprise, the democratic government must double the existing
number of local service centres and satellites. These satellites must enable the democratic
government to provide for rural women involved in smail, micro and medium-sized
enterprises. All training programmes for micro enterprise must provide appropriate child
care.

A varie of other measures should lower the barriers to micro enterprise. Laws should be
improved to allow people in this sector to collect debts. Market sites must be established
and access to existing sites facilitated. Land reform initiatives must reduce the land hunger
which swells the informal sector. Finally, as a basis for sound policy-making in future, the
Statistical system must incorporate micro enterprises.

Technology policy.

4.4.8.1

4.4.8.2

4.4.8.3

4.4.8.4

4.4.8.5

4.4.8.6

Technology policy is a key component in both industrial strategy and high-quality social
and economic infrastructure. It is critical for raising productivity in both small- and large-
scale enterprise.

Science and technology policy should pursue the broad objectives of developing a
supportive environment for innovation; reversing the decline in resources for formal science
and technology efforts in both the private and public sectors, enabling appropriate sectors of
the economy to compete internationally; ensuring that scientific advances translate more
effectively into technological applications, including in the small and micro sector and in
rural development, and humanising technology to minimise the effect on working
conditions and employment.

Technology policy must support inter-firm linkages that facilitate innovation. In research
and development, the democratic government should support precompetitive collaboration
between local firms and public-domain efforts combining enterprises and scientific
institutes.

Incentives should support expansion in technological capacity in both existing firms and
new start-ups. A greater share of government initiatives which facilitate technological
development, knowledge acquisition and training must directly benefit small and micro
enterprise.

Girls and women should be encouraged to obtain technical and scientific skills. The
Ministry of Education must establish targets in the study ©! science and technology in
educational institutions it subsidises. Research in the science and technology arena by the
democratic government, parastatals and cducational insututions must cater equally to the
needs of women in this arca.

New legislation must ensure that agreements to import toreign technology include a
commitment to educate and train local labour to use, maintain and extend technology.
$1

RECONSTRUCTION AND DEVELOPMENT PROGRAMME PREVIEW COPY POR REGIONS ° 17 February, 1994

4.4.8.7

4.4.8.8

4.4.8.9

Appropriate technology for small and medium-sized enterprises must be purchased where
necessary and applicable from other developing countries. The democratic government must
limit excessive payment of royalties and licence fees.

The democratic government must develop programmes to make university-based science
more responsive to the needs of the majority of our people for basic infrastructure, goods
and service. Scientific research should link up with technological advance in industry,
commerce and services and in small and micro production. In particular, there must be
research into appropriate and sustainable technologies for the rural areas.

The democratic government must redirect military/strategic production to civilian
production. Policies should encourage former employees to develop spin-offs. |

The democratic government must develop extensive institutional support and enhance
government capacities to ensure successful research foresight. Because science and
technology play a crucial role in the RDP, a strong coordinating agency in government must
maintain on-going consultation with key stakeholders.

44.9 Commerce and distribution.

4.4.9.1

4.4.9.2

Distribution patterns have been severely distorted by apartheid and in the last two decades
by particular investment pattems. Problems have emerged, including the biased location of
distribution oudets, a distorted relationship between property investment and shopping
malls, and excessive concentration of ownership, particularly in the link with the large
conglomerates and racial composition.

These issues must be addressed in order to achieve more geographically balanced and
accessible distribution, lowered costs of distribution, modernised linkages between
production and distribution, and greater participation by black people in the distribution
chain.

4.5 RESOURCE-BASED INDUSTRIES

4.5.1 Mining and minerals.

4.5.1.1

4.5.1.2

4.5.1.3

South Africa is one of the world’s richest countries in terms of minerals. Up to now,
however, this enormous wealth has only been used for the benefit of the tiny white minority.
The minerals in the ground belong to all South Africans, including future generations.
Moreover, the current system of mineral rights prevents the optimal development of mining
and the appropriate use of urban land. We must seek the return of private mineral rights to
the democratic government, in line with the rest of the world. This must be done in full
consultation with all stakeholders.

Our principal objective is to transform mining and minerals-processing industries to serve
all of our people. We can achieve this goal through a variety of government interventions.
incentives and disincentives. Estimates suggest that the establishment of a government
minerals marketing auditors’ office and the national marketing of certain minerals wouid
enable South Africa to realise greater foreign-exchange eamings. The management and
marketing of our mineral exports must be examined together with emplovers, unions and thc
government to ensure maximum benetits for our country.

Minerals and mineral products are our most important source of toreign exchange and the
success of our RDP will in part depend on the ability of this sector to expand exports to
avoid balance of payments constraints in the short to medium term.

52

REOONSTRUCTION AND DEVELOPMENT PROGRAMME PREVIEW COPY FOR REGIONS + 17 Fetreary, 1994

4.5.1.5

4.5.1.6

4.5.1.7

4.5.1.8

4.5.1.9

4,.5.1.10

4.5.1.11

4.5.1,12

Mining and minerals products contribute three-quarters of our exports and the industry
employs three-quarters of a million workers, but this could be much higher if our raw
materials were processed into intermediate and finished products before export. Our RDP
must attempt to increase the level of mineral beneficiation through appropriate incentives
and disincentives in order to increase employment and add more value to our natural
resources before export. Moreover, this policy should provide more appropriate inputs for
manufacturing in South Africa.

Minerals are a vital input for numerous mineral-based industries. These industries, however,
have difficulty in becoming internationally competitive due to the fact that the refining
companies usually set higher prices for the domestic market than their export prices, a
practice known as import parity pricing. A democratic government must consider
mechanisms to encourage companies to sell to local industries at prices that will enhance
their international competitiveness.

Existing tripartite structures such as the Mining Summit must be strengthened in order to
facilitate. national development strategies for the mining and mineral processing industry.

Democratisation of the mining sector must involve new laws to build workplace democracy
for miners by requiring employers to negotiate the organisation of work with their
employees and their unions. Programmes must be established to allow financial
participation by workers in mining companies in a meaningful way (including measures to
influence the policies of financial institutions, especially insurance companies and pension
funds, that hold significant stakes in the mining sector and in which our people have
substantial investments). And anti-trust legislation and other measures must be implemented
to permit the monitoring and appropriate control of mining, mineral processing and
marketing.

International demand and supply patterns for metals and minerals have undergone
fundamental changes in recent years that necessitate the restructuring of this major industry.
In the medium term, this probably means a continued decline in the number of people
employed in the mines. Up to now, the heaviest burdens associated with down-scaling have
been borne by miners, one third of whom have been retrenched. The RDP must put into
place mechanisms to ensure orderly down-scaling of our mines so as to minimise the
suffering of workers and their families. Measures should include the reskilling and training
of workers for other forms of employment.

Mining is a hard and dangerous job, and mineworkers labour under stressful conditions,
often deep under the earth. The RDP envisages a new set of minimum standards for the
mining industry that ensure fair wages and employment conditions for all workers and a
health and safety system that recognises the special hazards related to mining.

Most mineworkers are forced to live in single-sex hostels and remit part of their salaries. In
future all workers must have the right to live at or near their place of work in decent
accommodation and shall have full control over their after-tax salaries. In addition, the
mining companies must take some responsibility for the education, training and social needs
of miners and their families as an integral part of labour policy on the mines

Mining can be extremely destructive of our natural environment. Our policy ts to make the
companies that reap the protits from mining responsible for all environmental damage.
Existing legislation must be strengthened to ensure that our environment is protected.
Before a new mine can be established there must be a comprehensive environmental impact

study.

$3

RECONSTRUCTION AND DEVELOPMENT PROGRAMME PREVIEW COPY POR REGIONS + 17 Febraary, 1994

4.5.2

4.3.1.13

4,5.1.14

The Southern African region also has enormous mineral resources that have not been mined,
due in part to the destabilisation poticies pursued by the apartheid state in the last twenty
years. In the spirit of mutual cooperation, the RDP should extend across our borders by
using our considerable expertise in mineral exploration and exploitation to rehabilitate and
develop the mineral potential of our neighbours. In this regard a special facility should be
created to promote investment in the sub-continent.

The government must consider ways and means to encourage small-scale mining and
enhance opportunities for participation by our people through support, including financial
and technical aid and access to mineral rights. However, standards in respect of the
environment, health and safety and other working conditions must be maintained.

Agriculture.

4.5.2.1

4.5.2.2

4.5.2.3

4.5.2.4

4.5.2.5

A vibrant and expanded agricultural sector is a critical component of a rural development
and land reform programme. Agriculture contributes five per cent of GDP and over 10 per
cent of employment. Sixty-six per cent of its output is in the form of intermediates and its
forward.and backward linkages are high. The industry is characterised by a high degree of
concentration in the hands of 60 000 white farmers who own over 87 per cent of the land
and produce more than 90 per cent of its product. Agriculture in the bantustans is starved of

resources.

For every additional unit of capital invested, agriculture ultimately yields a larger number of
job opportunities than all other sectors, with the exception of construction. The RDP aims to
create a restructured agricultural sector that spreads the ownership base, encourages smali-
scale agriculture, further develops the commercial sector and increases production and
employment. Agriculture should be oriented to the provision of affordable food to meet the
basic needs of the population and towards household food security. The pursuit of national
food self-sufficiency proves too expensive and will not meet these aims. Moreover, it could
undermine trade with neighbouring countries better able to produce foodstuffs.

The present commercial agricultural sector will remain an important provider of food and
fibre, jobs and foreign exchange. The RDP must provide a framework for improving its
performance by removing unnecessary controls and levies as weil as unsustainable
subsidies.

Support services provided by the democratic government, including marketing, finance and
access to cooperatives, must concentrate on small and resource-poor farmers, especially
women. This requires a shift from the current pattern of expensive and inefficient support
for commercial farmers, as well as reform of the marketing boards and agricultural

cooperatives.

Comprehensive measures should be introduced to improve the living and working
conditions of farm workers. All labour legislation must be extended to farm workers, with

specific provisions relating to their circumstances.

Efficient, labour-intensive and sustainable methods of farming must be researched and
promoted. To this end, extension workers should he trained and fetrained and the
agricultural education and research institutions restructured. The RDP must support
effective drought management by providing agro-metcorological advice Ww larmens rather
than subsidising losses, which in the past encouraged cnvironmentally destructive tarming
methods.

84

RECONSTRUCTION AND DEVELOPMENT PROGRAMME PREVIEW COPY FOR REGIONS + 17 Febewary, 1994

4.5.2.7 Increased attention must be paid to additional processing and value-adding activities derived
from agriculture. This is linked to modernising marketing and exporting activities, and to
the considerable potential for supplying a growing tourist industry.

4.5.3 Fisheries and forestry.

4.5.3.1 The marine resources along the South African coastline form the basis of a fishing industry
which employs some 26 000 persons. The industry, however, is concentrated in the hands of
a few major companies which own not only the harvesting rights, but also the processing
and marketing concerns. In general wages are low, work is very often seasonal and provides
little security, and it is dangerous. In addition, some fish stocks have been overexploited.,

4.5.3.2 The primary objective of fisheries policy is the upliftment of impoverished coastal
communities through improved access to marine resources and the sustainable management

of those resources through appropriate strategies.

4.5.3.3 The administration of fisheries should be transferred from the Department of Environmental
Affairs to a Department of Agriculture, Forestry and Fisheries. The Sea Fisheries Advisory
Committee and the Quota Board should be retained, but their membership and functions
Should be revised. For inshore fisheries and monitoring of catches, there should be greater
community involvement in enforcement. For offshore resources, consideration must be
given to establishing a regional ‘Coastguard’ involving the Southern African Development

Community countries.

4.5.3.4 Policies must also enhance the potential for inland fisheries to improve the livelihood of
rural communities through fish farming.

4.5.3.5 The RDP recognises the vast potential of the wood-based industries in South Africa. Given
that the state owns almost a third of South Africa's commercial forests, the democratic
government has a special responsibility to manage the development of this sector. Forests
use important tracts of land, they limit the water supply in some areas, and there are
potential environmental hazards in single-crop plantations such as commercial forests, The
current usage of timber resources is wasteful, and we are opposed to the massive and
growing export of raw wood-chips.

4.5.3.6 For these reasons the RDP promotes the tightening of regulations governing land use in
sensitive areas. There is enormous scope to add value to our raw timber materials prior to
export. The local pulp and paper industry can meet the growing need for paper, especially as
education expands. But the price of paper products must be lowered to the benefit of local
consumers as well as to enable more effective competition in international markets for
value-added paper products. To achieve this, we must improve efficiency and make
Substantial investments. The trade unions have a significant contribution to make in

restructuring this industry and enhancing its performance.
45.4 Tourism.

4.5.4.1 Tourism in South Africa has been geared essentially to the loca! white and overseas
markets, and has been adversely affected bv apartheid and the resultant sanctions. All
aspects of tourism were provided on a racial basis. including intrastructurc. lodgings, and
even national parks, game reserves and recreational areas. Naturai resources are part of our
national patrimony and we must develup a culture of appreciation.

4.3.4.2 A process of reconstruction and development must take place within tourism in view of the
distortions created by apartheid. In the process of restructuring, a vast potential could be

ye”

$$
RECONSTRUCTION AND DEVELOPMENT PROGRAMME PREVIEW COPY FOR REGIONS « 49 February, 1994

realised, both in terms of the local mass market, and in terms of increased foreign exchange.
This would also result in the creation of large numbers of sustainable jobs in tourism and
allied industries, and would take advantage of South Africa's extraordinary human and
natural resources.

4.5.4.3 To achieve the desirable results, sound planning is needed, which should be predicated on
thorough research and consultation. With respect to the local mass market, education, access
to facilities and the support of black entrepreneurship are critical. In addition, promotion of
ecotourism and enhancement of South Africa's unique cultural and political heritage must be
prioritised. These afford opportunities for integrating traditional knowledge into tourism.

4.5.4.4 Community involvement in tourism projects must be encouraged, Stressing partnerships
with other agencies and initiation and ownership of enterprises. Communities must be given
access to finance, management skills, upgrading of tourist service skills, language
proficiency and connections with marketing infrastructure. Training institutions should be
located in areas accessible to local communities to prevent leakage of skills from the area.
This could be combined with other extension services and development training

programmes at regional and local level.

4.5.4.5 The Southern African dimension offers enormous tourist potential. A coordinated, mutually -
beneficial policy within the region could offer some of the world’s greatest natural and
recreational tourist attractions.

4.5.4.6 Tourism is potentially a major source of employment and foreign exchange, and could ease
balance of payments constraints in a short period of time provided that resources required
for the tourism industry are locally sourced. This requires tourism to be carefully integrated
into provincial and local-level development programmes.

4.5.4.7 Without effective Support from the democratic government, communities and hospitality
industry workers, however, there is a danger that tourism will have potentially damaging
effects on our rich and diverse cultures and natural resources. Full and transparent
environmental impact assessments should be conducted for all major tourism projects. The
tourism industry could be a major industry, and thus should receive greater priority at
national and provincial levels.

4.6 UPGRADING INFRASTRUCTURE

4.6.1 The link between meeting basic needs through an infrastructural programme and reviving economic
growth in manufacturing and other sectors is the essence of the link between reconstruction and
development. However, it is more than just providing electricity, water and telecommunications. It is
4 programme that integrates and upgrades infrastructure at the same time.

4.6.2 The infrastructural programme must ensure an integrated approach to the provision of various services
So that we upgrade our infrastructure in a manner that both meets basic needs and enhances new and
effective economic activity. This is particularly true in areas of information technology, Upgrading in
these areas can facilitate an upgrading of education, health care, recreation and other services, by
improving the quality of information available and providing communities throughout the countn
with access to expertise and usable data.

4.6.3 The use of information technology provides a major challenge in linking pasic necus with intormation
highways in innovative ways that improve the capacity of industry to successiully reintegrate int
world markets. Southern Africa could lead the Wav in providing this link so wital to the developing
world.

56

RECONSTRUCTION AND DEVELOPMENT PROGRAMME PREVIEW COPY FOR REGIONS «17 February, 1994

4.7

4.6.4

4.6.5

4.6.6

4.6.7

4.6.8

4.6.9

4.6.10

4.6.11

4.6.12

4.6.13

In addition to upgrading infrastructure in existing areas, its extension to all parts of the sub-continent
will both break down apartheid and colonial geography, and open up new economic potential in the
areas Of production and tourism.

Electrification. In addition to meeting basic energy and lighting needs for households, specific
attention must be paid to making electricity available to micro, small, medium-sized and agricultural
enterprises in both urban and rural areas. The benefits of cheap ¢lectricity presently enjoyed by large
corporations must be extended to all parts of the economy.

Telecommunications. Under apartheid, telecommunications were not developed in a manner
cognisant of the possibilities for expanding the economy to the lives of all South Africans. AS a result,
massive inefficiencies and missed opportunities characterise the sector. Information is today
considered a commodity of great significance, and South Africa must now play catch-up in order to
take advantage of the changing technological and economic roles that telecommunications can play.

The development of an advanced information network should play a crucial role in facilitating the
provision of high-quality services to all the people of South Africa. It must provide a significant
advantage to the business sector as it reduces costs and increases productivity, and serves as an
integral part of financial services, the commodities market, trade and manufacturing.

The basic infrastructural network must remain within the public sector. Certain value-added services
could be licensed within the framework of an overall telecommunications programme. An integrated
System of groundline, microwave, fibre-optic and satellite communications must Substantially enhance

the overall system.

The RDP aims to bring telecommunications closer to all potential users. A telecommunications
regulatory authority must be established, which should be Separated from policy and operating
activities,

The development of telecommunications must be underpinned by a strong telecommunications
manufacturing sector. The democratic government must encourage this sector to work closely with the
network operators in developing suitable systems’ for possible export to Africa and other developing
areas. )

Transport. There is an urgent need to develop an integrated and rapid transportation system that links
the domestic economy, Southern Africa, and world markets. This entails the upgrading of road and
rail networks and their extension to the whole area, but also a rapid interface between road, rail, air
and sea. :

A review of the current situation within all transportation Systems must be undertaken in order to
assess the capacity of these systems and how they could enhance the development of other sectors of
the economy and contribute to the RDP. Particular attention must be paid to the regulatory structures
of the transportation systems.

A Souther African transportation network enhanced by information networks could play a major role
in underpinning the socio-economic reconstruction of the sub-continent.

REFORM OF THE FINANCIAL SECTOR

4.7.1

The apartheid system severely distorted the South African tinancial system: A handful of large
financial institutions, all linked closely to the dominant conglomerates. centralise most of the
country’s financial assets. But they prove unable to serve most of the black community, especially
women. Nor do they contribute significantly to the development of new sectors of the economy. Small

57

RECONSTRUCTION AND DEVELOPMENT PROGRAMME PREVIEW COPY POR REGIONS « 17 Febrwary, 1994

4.7.2

4.7.3

4.7.4

4.7.5

informal-sector institutions meet some of the needs of the black community and micro enterprise.
They lack the resources, however, to bring about broad-scale development.

The regulatory framework. The democratic government must modify regulations and support
innovative financial institutions and instruments which mobilise private domestic savings to help fund
the RDP, while not reducing incentives for personal savings. The democratic government must
enhance accountability, access and transparency in the financial sector. [In cooperation with other
stakeholders, it must review both regulations and regulatory system to determine which aspects prove
an unnecessary impediment to the RDP, and more generally to greater efficiency in the allocation of
savings. Government must encourage the private sector to cooperate in extending financial services to
those who presently do not have access to these services. The establishment of a smoothly functioning
and inexpensive payments system, assuring safety of consumer deposits, must be considered a high
priority. To improve flexibility in the legal environment, parliament should establish an oversight
committee for the financial sector.

Prohibition against discrimination. The democratic government must introduce measures to combat
discrimination on the grounds of race, gender, location and other non-economic factors. The
democratic government must, in consultation with financial institutions, establish prudent non-
discriminatory lending criteria, especially in respect of creditworthiness and collateral; reform the laws
on women and banking to ensure equality; forbid blanket bans on mortgage bonds to specific
communities (redlining'); require banks to give their reasons when turning down a loan application,
establish community liaison boards; develop simpler forms for contracts and applications, and create
an environment which reduces the risk profile of lending to small black-owned enterprises and
requires banks to lend a rising share of their assets to small, black-owned enterprise. The law must
also require that financial institutions disclose their loans by race and gender; their assets and
liabilities by subregion and sector; their staff by race and gender; the location of their branches and
defaults by neighbourhood. To enforce laws against discrimination, the democratic government must
establish an ombuds for the financial sector. At the local level, ombuds structures must include
community representatives. Where anti-discrimination measures do not generate enough credit for
housing, small enterprise and other RDP programmes, the government must provide appropriate kinds
of financial support. The democratic government should consider reapplying the Usury Act to small
loans (in addition to loans above R6 000, as presently applies), and should enforce the Act more
effectively.

Housing bank and guarantee fund. The democratic government must establish a Housing Bank to
ensure access to wholesale finance for housing projects and programmes. A Guarantee Fund will
protect private sector funds from undue risk. Approximately half the Bank's funds will come from the
government in the form of recurrent housing subsidies, in order to ensure affordable bonds.

Community banking. Community banks of various types have proven able to finance informal
entrepreneurs, especially women. The democratic government must encourage community banking. It
must reform regulations to foster the development of community banks while protecting customers.
Where possible, government structures at all levels should conduct business with these institutions.
The government must encourage the established banks and other financial institutions to help fund the
community banks.

Pension and mutual funds. Pension and provident funds should be made more accountable to their
members, and insurance companies to contributors. The democratic government must change the law
to ensure adequate representation for workers through the trade unions and compulsory contributions
by employers, and move towards industry funds. lt must also legislate a Wranstormation of the boards
of the Mutual Funds to make them more socially responsible. The RDP must embark on a review ot
financial institution legislation, regulation and supervision ensure the protection of pension and
provident funds and other forms of savings and investment.

$8

RECONSTRUCTION AND DEVELOPMENT PROGRAMME PREVIEW COPY FOR REGIONS * 17 February, 1904

4.8

4.7.7

4.7.8

The Reserve Bank. The Interim Constitution contains several mechanisms which ensure that the
Reserve Bank is both insulated from partisan interference and accountable to the broader goals of
development and maintenance of the currency. In addition, the law must change the Act governing the
Reserve Bank to ensure a board of directors that can better serve society as a whole. The board must
include representatives from the trade unions and civil society. In future, a stronger board of governors
should emerge through the appointment of better-qualified individuals. The new constitutional
requirement that the board of governors record its decisions, publicise them when feasible, and
account to parliament should help in developing a more professional executive, with greater
credibility to exercise its mandate than the present board of governors.

The democratic government should immediately increase the resources available in the Reserve Bank
and other appropriate agencies for combating illegal capital flight. Furthermore, the democratic
government must enter into discussions with holders of wealth in an effort to persuade them of the

harmful effects their actions are having on our economy.

LABOUR AND WORKER RIGHTS

4.8.1

4.8.2

4.8.3

4.8.4

4.8.5

4.8.6

4.8.7

Over the years, workers have won many struggles and made many gains in the workplace. The
fundamental principle of the RDP is to safeguard these rights and extend them. Organised labour must
be empowered to act as a strong force in the reconstruction and development of our country.

There must be equal rights for all workers, embodied in a single set of labour statutes.

Basic organising rights. The following rights of workers must be in the Constitution:

4.8.3.1 the right to organise and join trade unions;
4.8.3.2 the right to strike and picket on all economic and social matters, and
4.8.3.3 the right to information from companies and the government.

The Constitution should not prohibit the conclusion of union security agreements, including closed
and agency shops. The right to lock out should not be in the Constitution.

Living wage. All workers should be entitled to a living wage and humane conditions of employment
in a healthy and safe working environment. The interlocking elements of the RDP, in particular the
promotion of collective bargaining, minimum wage regulation, affirmative action, education and
training, technological development, and provision of services and social security, must all be
combined to achieve a living wage for rural and urban workers and reduce wage differentials. The
required levels of growth for the successful implementation of the RDP can only be achieved on the
basis of living wage policies agreed upon by government, the labour movement and the private sector.

Reconstructing and developing the economy require far-reaching changes in employment patterns and
labour market policies. The democratic government must set up institutions and mechanisms 10
facilitate this process in order to avoid unnecessary hardships while utilising our human resources to
their full potential,

Collective bargaining. Effective implementation of the RDP requires 4 system of collective
bargaining at national, industrial and workplace level. giving workers a hey say in industry decision-
making and ensuring that unions are fully involved in designing and overseeing changes at workplace
and industry levels.

59

RECONSTRUCTION AND DEVELOPMENT PROGRAMME PREVIEW COPY FOR REGIONS +17 Febreary, 1994

4.8.8

4.8.9

4.8.10

4.8.11

4.8.12

4.8.13

Industrial bargaining forums or industrial councils must play an important role in the implementation
of the RDP. Agreements negotiated in such forums should be extended through legislation to all
workplaces in that industry. There must be enhanced jurisdiction for these forums to negotiate:

4.8.8.1 industrial policy including the implementation of the RDP at sectoral level,
4.8.8.2 training and education programmes,
4.8.8.3 job placement programmes in the industry, and

4.8.8.4 job creation programmes.

Workplace empowerment. Legislation must facilitate worker participation and decision-making in
the world of work. Such legislation must include an obligation on employers to negotiate substantial
changes conceming production matters or workplace organisation within a nationally negotiated
framework, facilities for organisation and communication with workers on such matters, and the right
of shop stewards to attend union meetings and training without loss of pay as well as to address
workers. .

In addition to the reform of labour law, company and tax law must be amended to ensure that the
rights of workers are protected and extended, for example in relation to workers’ access to company
information.

Instruments of government such as subsidies, taxes, tariffs, tenders etc. must all be utilised to
encourage stakeholder participation in the RDP and promote worker rights, human resource
development and job creation.

Since human resource development is crucial to the successful implementation of the RDP, the
democratic government must support programmes to upgrade skills on a broad basis in terms of a
national education and training policy negotiated between unions, employers and government. Further
details are set out in Chapter Three.

Affirmative action. Affirmative action measures must be used to end discrimination on the grounds
of race and gender, and to address the disparity of power between workers and management, and
between urban and rural areas. Those measures must:

4.8.13.1 entail a massive programme of education, training, retraining, adult basic education and
recognition of prior learning, to overcome the legacy of apartheid;

4.8.13.2 empower not only individuals, but communities and groups, under conditions which
promote the collective rights and capacity of workers and their representatives to negotiate
workplace issues;

4,8.13.3 establish principles for the hiring and the promotion of workers with similar skills/jobs
which will prevent discrimination against people previously disadvantaged by apartheid,

4.8.13.4 accelerate, through collective bargaining programmes, the eradication of discrimination in
each and every workplace;

4.8.13.5 provide job security tor pregnant women and promote the provision oo child care. as
discussed in Chapter Three. to further womens cquality in employment:

60

REOQONSTRUCTION AND DEVELOPMENT PROGRAMME PREVIEW COPY FOR REGIONS > 17 February, 1994

4.9

4.8.14

4.8.15

4.8.16

4.8.17

4.8.13.6 ensure that the development of special expertise among South Africans takes priority over
the import of outside personnel (this policy should not, however, prejudice foreign
investment or cooperation in the Souther African region), and

4.8.13.7 establish legislation and a strong ombuds to monitor and implement affirmative action
measures.

Legislation must prohibit sexual harassment, and education programmes must be launched to make
workers and employers aware about the issue and about how to lodge compiaints.

International conventions. The international labour conventions of the International Labour

Organisation (ILO) concerning freedom of association, collective bargaining, workplace
representation and other fundamental rights must be ratified by the South African government.

Restructuring of labour market institutions. The Department of Manpower and labour market
institutions related to it, such as the Unemployment Insurance Board, and the Workmen's
Compensation Board, must be restructured in consultation with the major stakeholders in the tripartite
labour market forums such as the National Manpower Commission.

All of the above, coupled with a democratic political dispensation, improvements in the living
Standards of workers and a programme of human resource development will unleash the resources of
the nation’s workers and significantly improve productivity in the economy.

SOUTHERN AFRICAN REGIONAL POLICY

4.9.1

4,9.2

4.9.3

4.9.4

In the long run, sustainable reconstruction and development in South Africa requires sustainable
reconstruction and development in Southern Africa as a whole. Otherwise, the region will face
continued high unemployment and underemployment, leading to labour migration and brain drain to
the more industrialised areas. The democratic government must negotiate with neighbouring countries
to forge an equitable and mutually beneficial programme of increasing cooperation, coordination and
integration appropriate to the conditions of the region. In this context, the RDP must support the goals
and ideals of African integration as laid out in the Lagos Plan of Action and the Abuja Declaration.

Whilst South Africa's trade with its neighbours in Southern Africa constitutes a relatively smail
percentage of its total trade with the world, this trade has been growing rapidly over the past few
years. In addition, a significant percentage of South Africa's exports to African countries that are not
members of the Southern African Customs Union (SACU) consists of manufactured goods. Various
Studies have shown that there is a great complementarity between the types of goods imported by
Southern African Development Community (SADC) and Preferential Trade Area (PTA) countries and
the goods that South Africa is exporting.

However, the current trade pattern between South Africa and the sub-continent is unbalanced, as
regional imports from South Africa exceed exports to South Africa by five to one. A democratic
government must develop policies in consultation with our neighbours to ensure more balanced trade.

Developing the capacity of our neighbours to export manufactured goods to South African markets
requires the democratic government, in consultation with neighbouring states, to encourage and
promote industrial development throughout the region. A democratic government must contribute
towards the development of regional and industrial Strategies for specific sub-sectors. such as mineral
beneficiation, auto components and textiles.

A democratic government should aiso chcourage the development of joint, mutually-beneficial
projects to develop our regional water resources, electricity and energy supply, transport and
telecommunications, and agricultural and food production.

fs _ ia

61

RECONSTRUCTION AND DEVELOPMENT PROGRAMME PREVIEW COPY FOR REGIONS + 17 Pebrwary, 1994

4.9.6

4.9.7

4.9.8

é. “et

One element of regional policy, defended particularly in the call for a Southern African Social Charter
by trade unions, is that minimum standards with regard to rights of workers to organise be established
across the region as a whole. This will allow a process of greater integration to become one of
levelling up rights and conditions of workers, rather than of levelling them down to the lowest

prevailing standard.

A democratic government should encourage technical and scientific cooperation with our neighbours
to enhance the development of expertise in the region in areas such as agricultural research and
development, environmental monitoring and protection, health and other research.

A democratic South African government should apply for membership in the SADC and possibly the
PTA, and should support reforms in the SACU to enhance democracy and equity.

62

RECONSTRUCTION AND DEVELOPMENT PROGRAMME PREVIEW COPY FOR REGIONS « 17 Febewary, 1994

Chapter Five
Democratising the State and Society

5.1 PROBLEM STATEMENT

§.2

5.1.1 The apartheid regime has been unrepresentative, undemocratic and highly oppressive. In past decades
the state became increasingly secretive and militarised, and less and less answerable even to the

constituency it claimed to represent.

5.1.2 The legal and institutional framework we are inheriting is fragmented and inappropriate for
reconstruction and development. [t lacks capacity to deliver services, it is inefficient and out of touch
with the needs of ordinary people. It lacks coordination and clear planning.

5.1.3 The financing of development programmes under the apartheid state was wasteful, misdirected and
mismanaged. There was corruption, and many state and development institutions carry over debts
from the apartheid era with which the new government must deal.

5.1.4 Apartheid patterns of minority domination and privilege are not confined to the state and parastatals.
Every aspect of South African life is deeply marked by minority domination and privilege. A vast
range of institutions in the private domain (in civil society) benefitted from apartheid, and also
actively fostered and sustained it.

VISION AND OBJECTIVES

5.2.1 The People shall govern. The RDP vision is one of democratising power. Democracy is intimately
linked to reconstruction and development, We will not be able to unleash the resources, neglected
Skills and stunted potential of our country and its people while minority domination of state and civil
institutions persists. Without thoroughgoing democratisation, the whole effort to reconstruct and
develop will lose momentum. Reconstruction and development require a population that is
empowered through expanded rights, meaningful information and education, and an institutional
network fostering representative, participatory and direct democracy.

5.2.2 Democracy requires that all South Africans have access to power and the right to exercise their power.
This will ensure that all people will be able to participate in the process of reconstructing our country.

5.2.3 Empowerment means, in the first place, the enfranchisement of all South Africans - one person, one
vote - and the extension of equal citizenship rights to all. Deepening democracy will require ensuring
that elected structures conduct themselves in an answerable and transparent manner. Clear Codes of
Conduct must be established and enforced for all public representatives.

5.2.4 Democratisation requires modernising the structures and functioning of government in pursuit of the
objectives of efficient, effective, responsive, transparent and accountable government. We must
develop the capacity of government for strategic intervention in social and economic development.
We must increase the capacity of the public sector to deliver improved and extended public services to
all the people of South Africa.

5.2.5 The defence force and the police and intelligence services must be translormed trom pving agents «:
oppression into effective servants of the community, with the Capacity to participate in (ne RDP. Our
society must be thoroughly demilitarised and all security torces under clear civilian control,

5.2.6 Democracy for ordinary citizens must not end with tormal rights and periodic one-person, one-vole
clections. Without undermining the authority and responsibilities of elected representative bodies (the
nauional assembly, provincial legislatures, local government), the democratic order we envisage must
loster a wide range of institutions of participatory democracy in partnership with civil society on the

63

RECONSTRUCTION AND DEVELOPMENT PROGRAMME P PREVIEW COPY POR REGIONS « 17 Febrwary, 1904

§.3

5.4

$2.7

5.2.8

5.2.9

a0

basis of informed and empowered citizens (e.g. the various sectoral forums like the National
Economic Forum) and facilitate direct democracy (people's forums, referenda where appropriate, and
other consultation processes).

A wide range of trade unions, mass organisations, other sectoral movements and community-based
organisations (CBOs) such as civic associations developed in our country in opposition to apartheid
oppression. These social movements and CBOs are a major asset in the effort to democratise and
develop our society. Attention must be given to enhancing the capacity of such formations to adapt to
partially changed roles. Attention must also be given to extending social-movement and CBO
Structures into areas and sectors where they are weak or non-existent.

Numerous non-profit non-governmental organisations (NGOs) are also developing in South Africa.
Many of these NGOs play an important capacity-building role in regard to CBOs and the development
process. NGOs are also engaged in service delivery, mobilisation, advocacy, planning, lobbying, and
financing. Thus NGOs have an important future role in the democratisation of our society. However,
NGOs must also adopt transparent processes, and operate in a manner that responds, with
accountability and democracy, to the communities they serve.

Deepening democracy in our society is not only about various governmental and non-governmental
institutions. Effective democracy implies and requires empowered citizens. Formal rights must be
given real substance. All of the social and economic issues (like job creation, housing and education)
addressed in previous chapters of the RDP are directly related to empowering our people as citizens.
One further area is absolutely central in this regard - a democratic information programme.

Ensuring gender equity is another central component in the overall democratisation of our society. The
RDP envisages special attention being paid to the empowerment of women in general, and of black,
rural women in particular. There must be representation of women in all institutions, councils and
commissions, and gender issues must be included in the terms of reference of these bodies.

CONSTITUENT ASSEMBLY

$.3.1

$.3.2

bs I Fa

$.3.4

The new Constitution should be drawn up by the Constituent Assembly in an open and transparent
manner. The new Constitution must reinforce the RDP, ensuring that equality of rights of citizens is
not just formal, but substantive. The new Constitution should ensure that social, economic,
environmental and peace rights are more fully embodied in the Bill of Rights.

The Constitution must recognise the fundamental equality of men and women in marriage,
employment and in society. There should be a continuous review of all legislation to ensure that this
Clause in the Constitution is not undermined. These principles must override customary law.
Consideration should be given to the implementation of a constitutional provision for the calling of a
referendum in order to overturn unpopular laws, and to ensure that certain laws get passed.

The Constitution should permit the regulation of the use of property when this is in the public interest.
It should also guarantee a right to restitution for victims of forced removals.

The Constitution should provide for sufficient central goverment powers so as to coordinate and
impiement the RDP effectively.

NATIONAL AND PROVINCIAL ASSEMBLIES

5.4.1

The National and Provincial Assemblies must estabiisn icgisiation and programmes which ensure
substantive equality rather than tormal equality

RECONSTRUCTION AND DEVELOPMENT PROGRAMME PREVIEW COPY FOR REGIONS ° 17 Febreary, 1964

5.4.2 There should be a review of the legislative procedures including a review of national and regional
parliamentary sessions, operating procedures and restructuring of standing committees, to promote an
improved institutional framework for public decision-making. There should be a clear right of access
to the parliamentary legislative procedures to allow inputs from interested parties. There should be a
Code of Conduct for members of the National and Regional Assemblies.

5.5 NATIONAL AND PROVINCIAL GOVERNMENT

5.5.1 South Africa has been divided into nine provinces. These provinces are at different levels of
development and are not equally endowed with resources. The existing constitutional arrangements
provided for by the interim Constitution require that provincial levels of government and the national
government develop methods for working closely together to ensure the implementation of the RDP.
This will ensure that development in all these areas takes place evenly throughout the country and that
minimum standards are attained.

5.5.2 Grants-in-aid strategies must be built into the RDP to ensure that all provinces receive an equitable
share of revenue collected nationally, The Financial and Fiscal Commission must determine criteria

for the allocation of inter-governmental grants.

5.5.3 The reincorporation of the TBVC states (Transkei, Bophuthatswana, Venda, Ciskei) and the self-
governing territories requires urgent attention. All government departments at national level must be
rationalised to end duplications due to racial divisions. Single ministries should be created at national
and provincial level in each sector of operation. At the provincial level, government institutions must
be constructed and rationalised out of existing regional structures. The role, function and mission of
government departments should be reviewed with the aim of introducing a clear development focus
for the democratic government administration. Policies of affirmative action, development and
training must be applied in all areas.

5.6 SECURITY FORCES

5.6.1 The defence force, the police and intelligence services must be firmly under civilian control, in the
first place through the relevant civilian ministry answerable to parliament. These security forces must
uphold the democratic constitution, they must be non-partisan, and they must be bound by clear codes
of conduct,

5.6.2 The size, character and doctrines of the new defence force must be appropriate to a country engaged in
a major programme of socio-economic reconstruction and development. The rights of soldiers must be
clearly defined and protected.

5.6.3. The police service must be transformed, with special attention to representivity, and gender and
human rights sensitivity. National standards and training must be combined with community-based
structures to ensure answerability to the communities served.

5.7 THE ADMINISTRATION OF JUSTICE

5.7.1 The system of justice should be made accessible and affordable to all people. It must be credible and
legitimate. The legal processes and institutions should be reformed by simplifving the language and
procedures used in the court, recognising and regulating community and customary courts, and
professionalising the Attorney-General's office. The public defence system must be promoted and the
prosecution system reformed. The pool of judicial officers should be increased through the promotion
of lay officials, scrapping the divided bar and giving the right of appearance to paralegals.

7.2 The Industrial Court system should be restructured so that workers who have complaints against
emplovers are able to have these disputes resolved in a cheap, accessible and speedy manner.

se

65
RBOONSTRUCTION AND DEVELOPMENT PROGRAMME PREVIEW COPY FOR REGIONS « 17 February, 1994

Tripartite institutions should have a say in determining appointments to the Industrial and Labour
Appeal Courts.

ite 5.7.3 A legal aid fund for women to test their rights in court must be established.

5.8 PRISONS

5.8.1 The staffing of the prison service must be based on non-racial and non-sexist principles. Prison staff
will need to be trained to reflect this approach and to transform the present military command

structure of the prison service.
5.8.2 Prisoners must enjoy human rights and must be fully protected by the constitution.

5.8.3 The prison service must play its part, not simply in restraining convicted persons, but in rehabilitating
and training them. Adequate resources must be made available for the humane accommodation of
prisoners.

5.8.4 The law dealing with children in custody must be reformed. Practices which infringe even the existing
laws (such as the accommodation of children and juvenile prisoners in cells with adults) must be

ended.

5.8.5 Pregnant women and mothers with small children in prison must be held in conditions which are
appropriate for their specific physical and psychological requirements.

5.8.6 Disciplinary codes within prison must be changed, and forms of punishment which infringe basic
human rights (solitary confinement and dietary punishment) must be ended.

5.8.7 The public has the right to be informed about prison conditions. The Prison Act must, accordingly, be
substantially reformed.

5.8.8 Prisons must be monitored by an independent prison ombuds, appointed by the State President, but
working independently of ministerial control.

5.9 RESTRUCTURING THE PUBLIC SECTOR

5.9.1 South Africa has a large public sector with many resources. The public sector consists of the public
service, the police and defence forces, the intelligence service, parastatals, public corporations and
advisory bodies, which are together some of the most important delivery and empowerment
mechanisms for the RDP. Staffing levels in and budgetary allocations to government departments and
institutions must match the requirements for service delivery, and the operational requirements for
women's empowerment, within the constraints of the budget. A defined quota of all new employees
should come from groups that were disadvantaged on the basis of race and gender, and should be
given access to appropriate training and support systems. This should be evaluated each year to
determine the progress made and identify problems which arise. By the turn of the century, the
personnel composition of the public sector, including parastatals, must have changed to reflect the
national distribution of race and gender. Such progress will enhance the full utilisation of the country's
labour power and productivity.

_ 5.10 THE PUBLIC SERVICE
5.10.1 The Public Service Commission established in terms of the interum Consutution must be responsible
for matters relating to appointments. promoting efficiency and etfectiveness in departments,
establishing and monitoring a Code of Conduct tor the public service and introducing a programme of

RECONSTRUCTION AND DEVELOPMENT PROGRAMME PREVIEW COPY FOR REGIONS « 17 February, 1994

$.10.2

5.10.3

5.10.4

5.10.5

affirmative action and other appropriate techniques to eliminate historical inequities in employment.
The Code of Conduct must incorporate the principles of the new South African public service as
outlined in the RDP. The ethos should be professional, in the most positive sense of the word; the
public service must internalise the concept of ‘serving the people’. This Code should be enforced and
annual evaluation of personnel should take into account compliance with the Code.

The public service should be composed in such a way that it is capable of and committed to the
implementation of the policies of the government and the delivery of basic goods and services to the
people of the country. In particular, priority must be given to developing the mechanisms for
implementing the policies, recommendations and directives of the restructured Public Service

Commission and the RDP.

While the public service must be based on merit, career principles, suitability, skills, competence and
qualifications, these standards should not be interpreted to further minority interests, as in the past. An
extensive programme of affirmative action must be embarked on to achieve the kind of public service
that is truly reflective of our society, particularly at the level of management and senior employees.
Such an affirmative action programme must include training and support to those who have previously
been excluded from holding responsible positions. Within two years of the implementation of the
programme, recruitment and training should reflect South African society, in terms of race, class and
gender. Mechanisms must be put in place to monitor implementation of the programme. A programme
of monitoring and retraining for all those willing to serve loyally under a democratic government
should be instituted.

The Civil Service Training Institute must be transformed to train and retrain public service employees
in line with the priorities of the RDP. One of the priorities of this Institute must be to ensure that a
cadre of public servants is developed to transform the public service effectively, with attention to
excellence and high levels of service delivery. The Institute must be provided with the necessary
resources and cater for at least four levels of training: lateral entry for progressive academics, activists,
organisers and NGO workers; top-level management development, promotion within the public
service, and retraining of present incumbents of posts.

A sound labour relations philosophy, policy and practice is an essential requirement for building a
motivated, committed cadre of personnel who have a clear vision of their development goals. Labour
relations policy must also provide for dealing systematically with corruption, mismanagement and
victimisation in public institutions. Labour policy must permit the participation of public sector
workers and their organisations in decision-making at various levels in this sector. This will require
amendment of existing labour legislation and a review of management practice in the public sector.

5.11 PARASTATALS AND STATE DEVELOPMENT INSTITUTIONS

SALA

S412

$11.3

Parastatals, public corporations and advisory boards must be structured and run in a manner that
reinforces and supports the RDP. Civil society must be adequately represented on the boards of
parastatals and public corporations. Institutions must be transparent and open in both structure and
decision-making. They should act within the framework of public policy and there must be a duty to
inform the general public as well as to account to parliament.

The statutory bodies must be independent of government departments in the sense that they should not
be directly part of any government department. They should be cuntrolied bv general government
policies and by their governance councils. The emphasis should be un creating stable long-term
policies rather than volatile short-term policy. To ensure effective civil participation of these bodies.
governance councils should be composed of mandated representatives of appronriate organisations,
not appointed individuals.

All bodies must run on full cost accounting. All subsidies paid or received must be the result of an
explicit and transparent decision. In addition, parastatals which receive 20 per cent of their funding or

67
RECONSTRUCTION AND DBVELOPMENT PROGRAMME PREVIEW COPY FOR REGIONS «17 Febrmary, 1994

R20 million (whichever is less) from government, should submit an annual director's report to the
relevant.ministry, showing how allocated funds were used given the objectives agreed to. Every
a ministry and parastatal should have an office that periodically reviews its activities and measures
performance as well as appraising staff performance. Rationalisation of the activities and resources of
parastatals should take place to promote efficiency and effectiveness. Parastatals should have a public

consciousness.

5.11.4 Control of funds set aside specifically for development purposes (be they from contracts, the
democratic government or the public domain) should vest in a competent and legitimate government

agency, which could include representation from civil society.

5.12 LOCAL GOVERNMENT

5.12.1 Local government is critical to the RDP. It is the level of representative democracy closest to the
people. Local government will often be involved in the allocation of resources directly affecting
communities. Local government should be structured on a democratic, non-racial and non-sexist basis.
The Local Government Transition Act provides for the start of this process with the establishment of
transitional counciJs, and the creation of a framework for the first non-racial local government
elections.

5.12.2 The constitutional and legal arrangements, which provide for councils of local unity for the
transitional phase, should be removed from the final Constitution to make local government more
democratic. Existing local government legislation, including the Local Government Transition Act
and the Provincial Ordinances, should be amended or repealed where necessary by a competent
legislative authority.

: 5.12.3 An estimated 800 segregated local authorities must be amalgamated into approximately 300 new local
- authorities with non-racial boundaries. The existing grading system for local authorities should be
revised to reflect needs of people, and not just existing consumption of services.

5.12.4 The demarcation of boundaries of locai authorities should ensure that informal settlements on the
outskirts of towns and cities, and urban settlements displaced behind homeland boundaries, are
incorporated into the jurisdiction of new local authorities.

5.12.5 Elected local government, with responsibility for the delivery of services, should be extended into
rural areas, including traditional authority areas. Rural! district councils that incorporate a number of
primary local councils must have a key role in rural local government.

5.12.6 In major urban centres, strong metropolitan government should be established to assist in the
integration and coordination of the urban economies.

5.12.7 Separate budgets and financial Systems must be integrated on the basis of ‘one municipality, one tax
base. The arrears and debts of the black local authorities, estimated at R1,8 billion, should be written
off by a competent legislature.

5.12.8 All local authorities should embark on programmes to restore, maintain, upgrade and extend networks
of services. Within a local authority, the total body of consumers should be responsible for the cost 0!
the service, including capital improvements, thus allowing for cross-subsidisation of new consumers

Tariff structures should be structured on a progressive basis to address problems of attordabilits
Within this framework, all consumers should pay tor services consumed.

5.12.9 Local authorities should be assisted w deal with the existing backlog of municipal services through
inter-governmenial transfers from central and provincial government, according to criteria established
by the Financial and Fiscal Commission.

RECONSTRUCTION AND DEVELOPMENT PROGRAMME PREVIEW COPY FOR REGIONS + {7 Pebreary, 1994

5.12.10

5.12.11

3.12.12

3.42.13

5.12.14

Separate local authority administrations must be amalgamated, reorganised and rationalised,
after consultation between employer and employee bodies. A centralised system of
collective bargaining for municipal employees should be established.

The Training Board for Local Government Bodies should be restructured to provide more
effective training for employees of local authorities. The entrance criteria of professional!
bodies such as the Institute of Town Clerks and the Institute of Municipal Treasurers and
Accountants should be broadened to ensure better access for all South Africans to these

professions.

At local government level a women's portfolio should be established with powers to
scrutinise local authority programmes and budgets for gender sensitivity. Local authorities
can play a role in the implementation of affirmative action with the private sector through
special criteria for local government contracts.

A developmental culture among local government administrations should be encouraged.
The actions of councillors and officials should be open and transparent, with councillors
subject to an enforceable Code of Conduct.

Local authority administrations should be structured in such a way as to ensure maximum
participation of civil society and communities in decision-making and developmental
initiatives of local authorities.

5.13 CIVIL SOCIETY

5.13.1 Apart from the strategic role of government in the RDP, mass participation in its elaboration and

by

implementation is essential. Within the first nine months of 1994 the RDP must be taken to People's
Forums, rallies and meetings in communities.

In the course of 1994, trade unions, sectoral social movements and CBOs, notably civics, must be

encouraged to develop RDP programmes of action and campaigns within their own sectors and
communities. Many social movements and CBOs will be faced with the challenge of transforming

their activities from a largely oppositional mode into a more developmental one. To play their full role
these formations will require capacity-building assistance. This should be developed with democratic

government facilitation and funded through a variety of sources. A set of rigorous criteria must be
established to ensure that beneficiaries deserve the assistance and use it for the designated purposes.
Every effort must be made to extend organisation into marginalised communities and sectors like, for

instance, rural black women.

5.13.3 Trade unions and other mass organisations must be actively involved in democratic public policy-
making. This should include involvement in negotiations ranging from the composition of the
Constitutional Court to international trade and loan agreements. Education about trade unions and
other mass organisations should also be promoted in school curricula and through publicly-funded

media.

5.13.4

Delivery or enforcement mechanisms for social and economic rights must not focus only on the

constitution, courts and judicial review, but must include agencies which have the involvement of
members and organisations of civil society as means of enforcing social justice. In this regard. a
revamped Human Rights Commission, with wider popular involvement. should have its mandate
extended to ensure that social and economic rights are being met.

Institutions of civil society should be encouraged to improve their accountability tw their various

constituencies and to the public at large. There should be no restriction on the right of the
organisations to function effectively. Measures should be introduced to create an enabling
environment for social movements, CBOs and NGOs in close consultation with those bodies and to

69

RECONSTRUCTION AND DEVELOPMENT PROGRAMME PREVIEW COPY FOR REGIONS + 17 Febrwary, 1994

5.13.6

$13.7

§.13.8

promote donations to the non-profit sector. This should include funding of Legal Advice Centres and
paralegals.

The rights of individual people should be protected and guaranteed in the processes of government.
Groups and communities should be encouraged to contribute to the reconstruction and development
process. Parents should be empowered through school governance, residents through residents’

associations, etc.

Multipartite policy forums (like the present National Economic Forum) representing the major role
players in different sectors should be established and existing forums restructured to promote efficient
and effective participation of civil society in decision-making. Such forums must exist at the national,

provincial and local levels.

Forums such as the National Economic Forum constitute important opportunities for organs of civil
society to participate in and influence policy-making. Similarly they provide the democratic
government with an important mechanism for broad consultation on policy matters. They need to be
assisted (and sometimes restructured) to improve their effectiveness, representivity and accountability.

5.14 A DEMOCRATIC INFORMATION PROGRAMME

§.14.1

5.14.2

§.14.3

5.14.4

$.14.5

5.14.6

§.14.7

Open debate and transparency in government and society are crucial elements of reconstruction and
development. This requires an information policy which guarantees active exchange of information
and opinion among all members of society. Without the free flow of accurate and comprehensive
information, the RDP will lack the mass input necessary for its success.

The new information policy must aim: at facilitating exchange of information within and among
communities and between the democratic government and society as a two-way process. [t must also
ensure that media play an important role in facilitating projects in such areas as education and health.

The democratic government must encourage the development of all three tiers of media - public,
community and private. However, it must seek to Correct the skewed legacy of apartheid where public
media were turned into instruments of National Party policy; where community media were repressed;
where private media are concentrated in the hands of a few monopolies, and where a few individuals
from the white community determine the content of media. New voices at national, regional and local
levels, and genuine competition rather than a monopoly of ideas, must be encouraged.

An affirmative action programme, consistent with the best experiences in the world, must be put into
place to empower communities and individuals from previously disadvantaged sectors of society. This
must include: mechanisms to make available resources needed to set up broadcasting and printing
enterprises at a range of levels, training and upgrading, and civic education to ensure that communities
and individuals recognise and exercise their media rights.

Measures must be undertaken to limit monopoly control of the media. Cross-ownership of print and
broadcast media must be subject to strict limitations determined in a public and transparent manner.
The democratic government must encourage unbundling of the existing media monopolies. This
includes monopolies in the areas of publishing and distribution. Where necessary. anti-trust legislation
must be brought to bear on these monopolies.

The democratic government must set aside funds for training 0! journalists and community-based
media and, at the same time, encourage media institutions to do the same

To ensure tree tlow of information - within the broad parameters of the Bill ot Rights - the Freedom
of Information Act must be broadened.

. sulle a Puy

70
RECONSTRUCTION AND DEVELOPMENT PROGRAMME PREVIEW COPY POR REGIONS + 1? Febewary, 1994

5.14.8 The democratic government must have a major role to play in the introduction of a new information
policy. This must, however, be limited to facilitation rather than dabbling in editorial content of media
enterprises. Further, a deliberate policy must be followed to prevent unwarranted state intervention in
levelling the media playing field or in preserving privileged status for government information. The
Bill of Rights and, if necessary, legislation will be crucial in this regard.

5.14.9 The South African Communications Services (SACS) must be restructured in order to undertake two
important tasks: the provision of objective information about the activities of the state and other role
players, and the facilitation of the new information policy.

§.14.10 To carry out these two functions, two distinct structures will be necessary. At the same time,
the information arms of various ministries, especially those dealing with reconstruction and

development, must be strengthened.

5.14.11 All these measures require institutional mechanisms independent of the democratic
government and representative of society as a whole. Some of the more crucial ones are:

§.14.11.1 Information Development Trust: made up of civil society, media role players, especially
community-based ones, the democratic government and political interests, to work out
detailed criteria and mechanisms for assisting relevant media enterprises.

5.14.11.2 Independent Broadcasting Authority (IBA): appointed in a transparent and participatory
process. Made up of persons of integrity and experts in the broadcasting field. Responsible
for the issuing of broadcasting licences and other broadcasting regulations.

5.14.11.3 Public Broadcaster Board: appointed in a similar manner to give broad direction to the
public broadcaster, without undermining editorial independence.

5.14.11.4 Voluntary regulatory mechanisms: for private media enterprise, and representative of all role
players, including media workers. Within broadcasting, the voluntary regulations should
be within the framework provided by the IBA.

5.14.11.5 Independent unions of media workers and associations of owners of media institutions.

71

RECONSTRUCTION AND DEVELOPMENT PROGRAMMB PREVIEW COPY FOR REGIONS + 1) Febreary, 1994

Chapter Six
Implementing the RDP

6.1 PROBLEM STATEMENT

6.1.1

The processes of planning and development in South Africa have been structurally distorted by the
objectives of apartheid, and both by design and default, have failed to meet the needs of the majority.
In recent years all parts of South Africa's excessively complex state system have been incapable of
implementing their stated goals. Increased waste, unused funds and outright corruption have
characterised government. To implement the RDP, a thoroughgoing reform will be necessary to
address the following major structural weaknesses:

6.1.1.1 Excessive departmentalism leading to uncoordinated, sometimes Contradictory, decision-
making by various state agencies.

6.1.1.2 The allocation of power between the various tiers of government - local, regional and
national - does not accord with practical needs. Generally, the central state and some
regionat governments have excessive and inappropriate power.

6.1.1.3 At all levels, the structures of government exclude the majority of the population from
participation in decision-making. Bureaucrats do not consult with most stakeholders.

6.1.1.4 Decision-making remains largely unaccountable either to the public or to monitoring
structures. Typically, civil servants act in secret. They rarely justify or explain their
decisions in public, and they often have poor relations with NGOs, civics and other

community organisations.

6.1.1.5 The potential contribution of NGOs to reconstruction and development is reduced by the
lack of an overall framework and integrative programmes. This results in fragmented and
isolated projects.

6.1.1.6 Implementation of any development programme under circumstances of violence and
corruption or clientelism is extremely difficult. The problems worsen in marginalised rural
areas where the right-wing or bantustan authorities hold power.

6.2 VISION AND OBJECTIVES

6.2.1

6.2.2

The basic principles of the RDP are that it is a coherent programme, that it builds a nation, that it is
people-driven, that it provides peace and security for all, that it links reconstruction and development,
and that it democratises the state and society. This approach has not been attempted in South Africa,
and is a fundamental break with apartheid practices. This imposes major new challenges in how to
implement such a programme.

Accordingly, specific structures are necessary to implement the RDP; their functions will be:

6.2.2.1 to manage policy and the ability to determine spending priorities within a Strategic
perspective;

6.2.2.2 to coordinate resources and actions:
6.2.2.3 to incorporate all major stakeholders in cstablishing. impiementing ane evaluating policy:

6.2.2.4 to establish legislative, procedural, institutional and tinancial frameworks that ensure that
policies can be implemented;

RECONSTRUCTION AND DEVELOPMENT PROGRAMMB

6.3

6.2.3

72
PREVIEW COPY FOR REGIONS « 17 Febrwary, 1994

6.2.2.5 to ensure adequate funding of integrated programmes and that resources reach the targeted
communities;

6.2.2.6 to facilitate the management of potential conflict over limited resources and differing needs,
and

6.2.2.7 to ensure a macro-economic policy environment that is stable.

Financing the RDP presents both a challenge and an opportunity to revive our economy and set itona
path to sustained reconstruction and development. We must finance the RDP in ways that preserve
macro-economic balances, especially in terms of avoiding undue inflation and balance-of-payments
difficulties. This requires a strategic approach that combines public and private sector funding, taking
into account the sequence and timing of funding sources and programmes.

IMPLEMENTING AND COORDINATING STRUCTURES

6.3.1

6.3.2

6.3.3

6.3.4

6.3.5

6.3.6

To implement the RDP will require the establishment of effective RDP structures within national,
provincial and logal governments. These structures must monitor implementation of the RDP,
including the elaboration of planning frameworks and coordination between departments and tiers of
government.

A prime function of these structures will be to overcome tendencies to fragmentation of different
government departments. While not displacing the line functions of other departments, the structures
will require real powers of coordination and an appropriate budget. The national RDP structure should
also have oversight of inter-governmental financial transfers (national to provincial, provincial to
local, etc.) to ensure that these are in conformity with the overall national objectives of the RDP.

The democratic government must undertake a review of all ministries, parastatals and other
democratic government agencies, in conjunction with the Public Service Commission and the
Financial and Fiscal Commission, in order to assess their abilities and willingness to achieve the goals
and objectives of the RDP.

Democratic government and parastatal programmes must be based on publicly-determined priorities in
line with the RDP, and appropriate priority-setting mechanisms must be established. Each institution
of government should establish a public priority-setting exercise, whose objectives should be
measurable, achievable, have a defined time frame and be accompanied by a pian and budget to
accomplish them. A performance audit of government programmes and agencies must be carried out
within six months of the inauguration of the Interim Government of National Unity, and regularly
thereafter.

The RDP national coordinating body must also ensure that the structures of civil society are involved
in the programme. It must ensure coordination between the various ministries, parastatals, labour,
civic and other organisations. It must link with existing sectoral and development forums at national
level, in order to establish effective systems of coordination. Similar bodies should be established at
provincial and local levels. In addition, provincial and local development forums are importam
vehicles for ensuring the participation of local communities and interest groups in the development
process. Development forums must be strengthened through the provision of adequate resources.

The RDP recognises that access to planning procedures and intormahon js unequally weighted in
favour of an already privileged group. The RDP structures must ensure that historically oppressed
communities get the resources they need to participate meaningtully in planning processes and
decision-making. Particular emphasis must be placed on the role of women in urban and rural areas

and in micro enterprises.

RECONSTRUCTION AND DEVELOPMENT PROGRAMME

73
PREVIEW COPY FOR REGIONS + 17 Febreary, 1994

6.4 PLANNING FRAMEWORKS

6.4.1

6.4.2

6.4.3

6.4.4

6.4.5

6.4.6

6.4.7

The interim Constitution lays the basis for new relationships between national, provincial and local
government. The intention of the RDP is to establish a national framework that guides provincial
government and allocates appropriate powers and functions to these levels. This requires considerable
interaction and coordination between national, provincial and Jocal structures. The objective is to
establish a framework to which statutory authorities should relate, and to guide both public and
private investment decisions to ensure the best cumulative results.

The democratic government will reduce the burden of implementation which falls upon its shoulders
through the appropriate allocation of powers and responsibilities to lower levels of government, and
through the active involvement of organisations of civil society. By providing a coherent framework it
will be able to mobilise considerable energy behind the RDP and ensure that it meets the practical
requirements of designing programmes in different areas.

In order to ensure a coherent and effective implementation of the RDP of the RDP, a planning process
must establish a clear hierarchy of areas of responsibility, role of sub-national plans, guidelines for
decision-making, strategy formulation, and procedures. Planning guidelines must also subordinate
local planning to metropolitan/district, provincial and national development planning (for example, by
reducing the status of zoning and town planning schemes to the status of local plans which are
automatically overridden by higher levels of planning).

The RDP must be based on a co-ordinated and coherent developmein strategy based on RDP
frameworks at national, provincial and local leives that:

6.4.4.1 focus on the development challenges and the strategies to meet these challenges
(frameworks at provincial and local level must address institutional, social, economic,
fiscal, cultural and physical planning requirements appropriate to that level of authority);

6.4.4.2 provide coherent and co-ordinated frameworks within which appropriate statutory
authorities can function,

6.4.4.3 guide work programming and priorities, development actions, participatory processes, and
priority-based budgeting, and

6.4.4.4 guide both public and private investment planning decisions to ensure the best cumulative
effects.

RDP Frameworks must be tied to the budgeting process, and revised, updated and tabled in parliament
annually. New plan-making processes and approval procedures must be developed. These must be
simple and easy to understand and capable of speedy implementation. The RDP requires collaborative,
integrated planning and decision-making.

To ensure the efficacy of the RDP, a national system of monitoring must establish a set of key
indicators and measure the impact of the RDP on these indicators. By mid-1994, the central RDP

agency must develop criteria for assessing targets and time frames. Every possible step must be taken
to ensure that the decision-makers are held accountable for their decisions. They must motivate

publicly all decisions with sound reasons. Affected parties must be able to appeal against planning
decisions to an independent appeals body.

Regulatory system for planning the RDP.

74

RECONSTRUCTION AND DEVELOPMENT PROGRAMME PREVIEW COPY FOR REGIONS + 17 February, 1994

' 6.4.7.1 A new legislative and regulatory system for development planning is required in order to

make the RDP a reality. Current inappropriate and unconstitutional development legislation
must be repealed.

6.4.7.2 The regulatory system must provide a basis for defining and fast-tracking strategic
reconstruction projects, and provide for rapid granting of legal status to widely supported,
interim metropolitan/district and provincial development frameworks.

6.4.7.3 The system should be consolidated in the form of a National Reconstruction and
Development Act, and promulgated as a matter of urgency. Simultaneously a prototypical
Provincial Reconstruction and Development Planning Act should be developed for
consideration and adoption by each province.

6.5 FINANCING THE RDP

6.5.1

6.5.2

6.5.3

6.5.4

6.5.5

6.5.6

The RDP will mean nothing if it cannot be financed. Two questions arise: can we afford such an
extensive programme, and will people be required to pay more? If the democratic government were to
attempt to finance all the proposals contained in the RDP then the answer to the first question would
be a clear ‘no’ and to the second a clear ‘yes’ - in other words, the RDP would fail. We must remind
ourselves of the six basic principles underlying the RDP as set out in Chapter One. These six
principles distinguish the RDP from all other programmes proposed by political parties.

The success of the RDP does not only require finance. It also requires labour, skills and coordinated
effort in combination with that finance. The six principles allow for this combination by hamessing
the underutilised resources of the democratic government, the private sector, labour communities and
women, and by utilising these resources in a rational and effective way. Only the ANC and its allies
are capable of such a programme. Finance for the RDP will come from revenues, issuing debt
(including general obligation and revenue bonds) and grants. The largest portion of all RDP proposals
will be financed by better use of existing resources.

However, it is clear that government policy and mechanisms of raising finance are crucial to the
success of the RDP. If they were to cause excessive inflation or serious balance of payments problems
they would worsen the position of the poor, curtail growth and cause the RDP to fail. Government
contributions to the financing of the RDP must, therefore, avoid undue inflation and balance of
payments difficulties. In the long run, the RDP will redirect government spending, rather than
increasing it.

The financing of the programme is a national responsibility, and provincial and local governments
would not be expected to rely on their own tax bases and resources in its implementation, although
contributions from these sources should be made in order to enhance accountability. Allocations from
national resources will take into account the existing inequalities between provinces and localities, and
will be based on population size, development backlogs, and other objective criteria as may be
determined by the Financial and Fiscal Commission.

Restructuring the national budget, Despite relatively high levels of government spending, South
Africa displays a worse record than many poorer countries in meeting basic needs. This situation
reflects the impact of apartheid in terms of both racially skewed spending and corrupt, unaccountable
government In addition, low growth rates and an absence of growth-promoting capital expenditure by
the public sector created fiscal problems. A severe imbalance exists at present between insufficient
capital expenditure and excessive consumption expenditure

The RDP is, therefore. committed Ww 4 programme ot restructuring public expenditure to finance the
democratic government's contribution to the RDP. Given the fiscal malaise left by apartheid, careful
programmes must be developed around tinancing increased capital expenditure, increasing the

RECONSTRUCTION AND DEVELOPMENT PROGRAMME

6.5.7

6.5.8

6.5.9

6.5.10

6.5.11

6.5.12

6.5.13

6.5.14

78
PREVIEW COPY FOR REGIONS + 17 Femrwary, 1994

efficiency of consumption expenditure and improving the revenue-recovery capacities of the
government.

The existing ratios of the deficit, borrowing and taxation to GNP are part of our macro-economic
problem. In meeting the financing needs of the RDP and retaining macro stability during its
implementation, particular attention will be paid to these rations, The emphasis will be on ensuring a
growing RDP, improved revenue recovery, and more effective expenditure in order to make more
resources available. In raising new funds and applying them this process must be facilitated in order to

contain these important ratios.

The democratic government must end unnecessary secrecy in the formulation of the budget. To that
end, it must change the relevant regulations. We must establish a Parliamentary Budget Office with
sufficient resources and personne! to ensure efficient democratic oversight of the budget.
Transformation of the parastatals and cooperation with forums will also help ensure more efficient and
open budgeting processes.

Efficient and open transformation of the budget requires the development of a five-year fiscal plan as
the framework for multi-year budgets.

By combining the ministries of State Expenditure and Finance to form a single finance ministry, we
will reduce duplication and streamline decision-making.

The democratic government must make the development of effective and open performance auditing a
top priority. Auditing of public institutions must broaden from its narrow focus on financial
accountability to assess how weil expenditures meet RDP targets. The Interim Constitution gives the
Auditor-General responsibility for performance auditing mandated by the President. We must begin to
define the priority sectors and agencies for performance auditing.

The democratic government must mandate the Financial and Fiscal Commission to review the tax
structure in order to develop a more progressive, fair and wansparent structure. Priorities will include:

6.5.12.1 eliminating bias in tax against women regardless of marital! status, and recognising women's
child care costs and the unpaid labour they perform;

6.5.12.2 reviewing personal income tax to reduce the burden caused by fiscal drag on middle-income
people;

6.5.12.3 rationalising company tax breaks for health, education, housing and other expenditures
~ which may conflict with RDP priorities;

6.5.12.4 simplifying the unnecessarily complex company tax system, which is biased against small
and medium-sized enterprises and leads to low effective tax rates despite a fairly high

nominal rate, and
6.5.12.5 zero-rating VAT on basic necessities,

Taxation policies should give incentives for institutional affirmative action programmes vovering race
and gender, with respect to employment and education.

All macro-economic allocations must be accompanied by social and economic impact analyses on
gender, race, urban-rural dimensions. class/income distribution, regional inequalities. and age (to
encompass marginalised young people and pensioners). Future budgetary allocations must concretely
show the commitment of a future government to women's development and empowerment. In order
for the budget to be gender sensitive it must provide details, in a social impact statement, on how
budgetary allocations affect women with respect to workload, income education and career options.

16

RECONSTRUCTION AND OSVELOPMENT PROGRAMME PREVIEW COPY FOR REGIONS + 17 Febreary, 1994

6.5.15

6.5.16

6.5.17

6.5.18

Mobilising new funds, The democratic government should establish a Reconstruction Fund (possibly
incorporating the wholesale financing requirements of the Electrification Fund and Housing Bank) for
elements of the RDP that can generate income streams in the future. The Reconstruction Fund should
include some form of dedicated reconstruction bond. In addition, it should draw on specific
reconstruction levies. The design of reconstruction levies will depend on the aims of the RDP as a
whole, especially in terms of promoting development and growth, but could include levies on capital
transfers, land and luxury goods.

There is a need for an overall foreign debt strategy. The RDP must use foreign debt financing only for
those elements of the programme that can potentially increase our capacity for earning foreign
exchange. Relationships with international financial institutions such as the World Bank and
International Monetary Fund must be conducted in such a way as to protect the integrity of domestic
policy formulation and promote the interests of the South African population and the economy. Above
all, we must pursue policies that enhance national self-sufficiency and enable us to reduce dependence
on international financial institutions. Further, we must introduce measures to ensure that foreign
governmental and non-governmental aid supports the RDP.

Socially desirablé investments. The democratic government cannot fund the RDP without support
from the private sector. Financial institutions must assist both by funding individual programmes to
meet basic needs, especially housing, and by improving their services to small-scale producers and the
black communities. The democratic government must modify regulations and support innovative
financial institutions and instruments that will fund the RDP. It must attempt to mobilise a significant
proportion of contractual savings, within an appropriate regulatory and financial framework, for
socially desirable investments, without affecting the risk profile or decreasing the returns on
investment. If the major financial institutions do not take up socially desirable and economically
targeted investments, the democratic government should consider some form of legislative
compulsion such as prescribed assets.

Other resources. The democratic government must not be alone in accessing resources. Unemployed
jocal labour must be mobilised, through job banks and community-based employment-generation
initiatives. Employed workers must be given incentives to use their skills and knowledge in the
interests of society. Creative use of local resources - such as building materials - must be encouraged.
The power of women in households, in production and in community structures must be fully
unieashed and rewarded. Only through such grassroots-oriented development initiatives can the RDP
be brought to its logical fruition as a successful programme for all South Africans.

RESTRAINT Weed oe AY a SEMEN ST ON mn er ee
——— ————t i rrr cael,

RECONSTRUCTION AND DEVELOPMENT PROGRAMME PREVIEW COPY FOR REGIONS « 17 Febreary, 1994

Chapter Seven
Conclusion

7.2 The RDP will now be used to consult widely, in order to get comment and further input. Any organisation
that wishes to make such a contribution can do so in writing, or contact the ANC to arrange a meeting. Any
Organisation that feels that they can make a specific contribution to the implementation of the RDP should do

7.3 We welcome written comment from any ¢xpert or person with knowledge about any of the areas covered in
the RDP. Clearly not every comment can be used, and the comments would need to be written within the
spirit of the basic principles outlined in Chapter One, the RDP ‘Introduction’.

7.4 In the provinces and at local levels, the Alliance, SANCO and the NECC have begun to apply the RDP

framework to their own area. Many are discussing the particular problems their provinces may have, and how
their own RDP should address these.

7.5 Material is being produced that will popularise the RDP and allow for its discussion throughout the length
and breadth of our land. However, this must not be a process of telling people what the new government's

RDP will do for them, but of encouraging people to play an active role in implementing their own RDP with
government assistance.

7.6 The Alliance will now be reaching out to many organisations to discuss and receive inputs on the RDP. This
Support and information will be used as we continue to develop detailed policy. Work groups are being

established to develop both policy and programmes of government at national and provincial levels.

7.7 The future is in our hands and we must carry forward the work needed to finally liberate ourselves from the
evils of apartheid.