South Africa (BUSA) cocktail reception
17 October 2006
Another world is possible
Distinguished guests
Ladies and gentlemen
I am delighted to be here this evening and thank you very much indeed for
the invitation to talk to you.
Our government has often stated its vision for a better life for all and
hence a world that is different to the one presented to us, another world
particularly on the African continent.
Our history of liberation shared many of the idealistic fervour of the early
French Revolution that threw up many far sighted ideas considered wild at the
time. As early as 1789, these revolutionaries proclaimed their vision of
another world, asserting that:
"Why should we hold back our dreams? Just a few years ago many would have
said it was impossible for us to challenge the King. Now we are being told to
be modest in our aspirations, that we are impatient and unrealistic. But we
refuse to take only one step at a time, we are running towards the sun. Our
demands may never be met, but the fire of our impatience is unending: we cannot
live at ease in a world where these things are not possible."
This vision has been a consistent one advanced by progressive movements
throughout our modern history. At the historic Congress of the People on 26
June 1955, 51 years ago, the Congress of the People adopted the Freedom Charter
where they stated:
"South Africa shall be a fully independent state which respects the rights
and sovereignty of all nations.
And that:
South Africa shall strive to maintain world peace and the settlement of all
international disputes by negotiation, not war;
Peace and friendship amongst all our people shall be secured by upholding
the equal rights, opportunities and status of all."
These ideas were considered wild at the time. But these principles have
informed policy formulation and indeed our actions since. They are some of the
values that we continue to live by.
Indeed, these idealistic views are still shared by many progressive
governments and social movements in the world today, who hold the view that
another world is possible. In 2002, in an article posted in The Nation
entitled, 'Another World is Possible,' Susan George argues that:
"History does not offer second helpings" so we would better deal with what
is on our plate now, which is world poverty, inequality, exploitation and
hopelessness. How?
Personally, I have not been so hopeful in decades. The mood is changing.
People no longer believe that the unjust world order is inevitable "Another
world is possible," and urgent.
Therefore, in defining how we each envisage this other better world, I think
it is useful and appropriate to consider our respective roles in society, those
of the business community and the diplomatic community and to consider these
roles in the domestic society, but also in the international sense, and how
these roles intersect. Given the increasing complexity of 21st century
international relations and with the uncertainties that movements in global
dynamics present to both governments and people generally, it is important to
examine our respective roles and ensure that they work in unison.
There is much discussion in the world today about the role of diplomacy, of
the definition of a modern diplomat. Indeed the modern diplomat is very far
removed from the original job description of an ambassador from the era of
Greek city states, when diplomacy was limited to the interaction between
monarchs to maintain the peace. Even in relatively modern times, as the story
goes, one angry president sent word to a diplomat that he had sent abroad,
complaining that he had not received a letter from him in two years. He, the
President, added that if he did not receive word in the next year the
ambassador would be recalled.
Things move rather faster today. We operate in a much more complex
environment. The Department of Foreign Affairs is no longer the only player in
the world of international diplomacy. Other departments of state as well as
non-state actors work in areas that were previously the sole preserve of the
Ministry of Foreign Affairs.
The fact that other ministries, for example of Trade and Industry, Science
and Technology and amongst others also act in the international environment is
not necessarily a negative, it is a modern reality. It is also a reality that
business and other civil society players act in the international arena. What
becomes increasingly important is the co-ordination of our respective roles and
a unity of purpose in the work that we do abroad, as we all represent our
country and carry the responsibility for our people.
In South Africa, I believe there is a vibrant discourse between the
different players and therefore I am grateful again for this opportunity to
discuss with you some of our objectives as the lead Ministry and co-ordinating
department of South Africa's foreign policy, starting with the African
continent which is one of the key focuses of our foreign policy agenda.
Since the latter part of the twentieth century the African continent has
been engaged in a deep and fundamental reform and renewal process. The
over-arching objective has been and continues to be to break the vicious cycle
of political instability, poverty, and underdevelopment, as well as Africa's
weak capacity to defend and advance her own interests in the global arena.
For our part, South Africa has put considerable effort and resources, both
financial and human into developments on the African continent, and we regard
this as an investment, a diplomatic investment. For example we have six
government departments working in the Democratic Republic of the Congo,
including our defence force, our electoral commission and others. This we do,
not for some altruistic purpose but in fact because we firmly believe that our
own national interests are best served if we can work together with our
neighbours on the continent to eliminate conflict and its causes, to rid the
continent of poverty and underdevelopment and, ultimately, to develop a
peaceful, stable and prosperous continent.
South Africa's foreign policy is "informed by our domestic policy and the
two are mutually reinforcing. Our foreign policy is guided by the vision of a
better South Africa in a better Africa and a better world."
However, realisation of this vision will not happen without mobilising and
gaining support from all formations of civil society on the one hand, and on
the other achieving positive developments in respect of good governance and
democratic practice amongst the state players.
In respect of the latter, we work with and through the African Union and its
organs and programmes such as New Partnership for Africa's Development (NEPAD),
and the African Peer Review Mechanism (APRM) to entrench democracy and good
governance on our continent.
The establishment of the African Union (AU) through the Constitutive Act,
with its profound vision and progressive principles, has generated high
expectations for rapid political, social and economic progress to transform the
lot of the African people and attain the ideal of a better life for all.
According to a 2005 report by the Economic Commission for Africa entitled,
"Progress towards Good Governance in Africa", there are four identifiable
positive trends on the road to creating capable states in Africa and these
are:
1. Democratic transition: Many African countries have made significant
strides, evolving from authoritarian or military regimes to more democratic
arrangements.
2. Political inclusiveness: Many African countries are seeking to ensure that
the executive and legislative arms of government reflect the profile of their
people in regional, ethnic, racial and religious terms.
3. Voice and accountability: New avenues are being created across Africa to
allow citizens to participate in the political process to express their demands
without fear of retribution.
4. Public financial management and accountability: More countries are running
smaller deficits, meetings their targets for revenue mobilisation, managing
their tax systems more effectively, improving fiscal transparency and creating
institutions and arrangement for better auditing.
Also recent comments by World Bank President, Paul Wolfowitz, have led to a
renewed hope in the forward progress on our the continent. Addressing an
African investment forum in July this year he argued that not enough attention
is being paid to African success stories. This at a time when there is a
decline in active armed conflicts on the continent from 16 in 2002 to six
today, and the fact that 15 African countries have had average growth rates of
better than five percent over the past decade. Wolfowitz said that the tendency
when it comes to Africa is to focus on security issues and not give enough
attention to economic and social development issues, which are equally
important.
These positive developments did not come about by accident but through the
deliberate efforts of African leaders to adopt democratic dispensations;
encourage participatory democracy; through being more accountable; and through
prudent stewardship of public resources.
These are real political gains that will contribute towards achieving the
kind of world we desire. However, these political gains will amount to naught
if not underpinned by tangible economic development.
Development entails the improvement of people's lifestyles through improved
education, incomes, skills development and employment. Development also means
that people should have decent housing, and that they should have security in
their homes and productive places of work.
While our job as diplomats is essentially to represent our countries'
interest abroad, the challenges posed by today's rapidly globalising world
means that traditional diplomacy alone is not sufficient.
Globalisation has "rendered the traditional professional boundaries of
diplomacy more porous and put into question the territorial claims of the
traditional diplomats."
We need, as partners, the business community a well as trans-national
non-government organisations (NGOs) and other institutions working in the
international arena.
As a developing country, we need to enhance their capacity to benefit from
the positive potential of globalisation.
A recent International Labour Organisation Report on the Social Dimension of
Globalisation states that:
Globalisation has set in motion a process of far reaching change that is
affecting everyone. New technology, supported by more open policies, has
created a world more interconnected than ever before. This spans not only
growing interdependence in economic relations; trade, investment, finance and
the organisation of production globally but also social and political
interaction among organisations and individuals across the world.
The potential for good is immense. The growing interconnectivity among
people across the world is nurturing the realisation that we are all part of a
global community. This nascent sense of interdependence, commitment to shared
values, and solidarity among peoples across the world can be channelled to
build enlightened and democratic global governance in the interest of all. The
global market economy has demonstrated great productive capacity. Wisely
managed, it can deliver unprecedented material progress, generate more
productive and better jobs for all, and contribute significantly to reducing
world poverty."
South Africa endorses the perspective that holds that the current path of
globalisation must change, that the benefits of globalisation can be expanded
and that the means and resources needed to create a better world are
available.
It is therefore encouraging to note that South African businesses have
increasingly been involved in creating economic opportunities in Africa that
have greatly enhanced our international standing. According to the results of a
survey published in 2004 by the South African Institute of International
Affairs on Doing Business in Africa:
"In less than a decade, South Africa has become one of the top 10 investors
in many African countries, displacing those companies from Europe (particularly
in countries that are former colonial powers) and America, which have
traditionally retained their economic links with Africa.
These developments make an examination of the role being played by our
country, and particularly its business community, important to the unfolding
picture of trade and investment in Africa. South Africans believe their
commitment to making Africa is long-term."
Judging by these developments, there is indeed cause for optimism that
another world is possible. These are all real steps towards the achievement of
our objectives as a country that supports our foreign policy agenda to create a
better South Africa through promoting our national interests abroad.
Consistent with our values, we do not, nor should not, seek to use our
relative economic strength on the continent to dominate others; rather, we
should continue to pursue a principled and consistent foreign policy agenda
that seeks to positively influence others through persuasion. These are the
values that we also envisage our civil society formations, business included,
will carry with them in their engagements beyond the borders of our country in
the pursuit of opportunities.
Collaborative initiatives will go a long way in contributing to durable
peace and sustainable development. Already, the value of such collaboration is
starting to bear fruit in South Africa as well as on the continent.
There are new "diplomats" now, new players in the promotion of our
countries' interests abroad and as I have said, one of those players is of
course business.
A report produced by the World Social Forum talks to the power of business
in the global community and also its location in the world.
"�transnational corporations and big business in general have increased
their power greatly in the last decade." To note just a few examples of this
power:
"In terms of sheer scale of economic activity, the giant corporations now
rival all but the largest countries. Comparing corporate turnover to Gross
National Product (GNP), 51 of the world's top 100 economies are
corporations.
There are 63 000 transnational corporations worldwide, with 690 000 foreign
affiliates. Three quarters of them are based in North America, Western Europe
and Japan. 99 of the 100 transnational corporations are from industrialised
countries.
These corporations profit from and perpetuate what is essentially a racist
global system that benefits the North, and a small minority in the South, at
the expense of the vast majority of people in the South and a growing number of
people (often of African, Latin American and Asian descent) in the North.
World Trade Organisation (WTO) rules overwhelmingly favour the giant
transnationals. In fact, these companies play a central role in shaping the WTO
and other trade and investment agreements that allow corporations increasingly
to transcend the state."
So we need to examine our roles in respect of how each contributes to the
transformation of our society to create a better South Africa and a better
Africa in a better world. We recognise that rather than being threatened by the
emergence of new actors on the foreign policy scene, we need to encourage the
positive role that business can play in advancing our foreign policy
objectives.
If government has adopted deliberate efforts to build the confidence of
other countries in our vision, we also need South African businesses that
operate on the continent to concentrate on forging partnerships for sustainable
development, rather than focusing on short-term profit gain. Otherwise we will
continue to feed into stereotypes about unscrupulous business practices.
At the domestic level here in South Africa, there are already generally
acceptable principles for good governance for businesses as enshrined in the
King Report on Corporate Governance for South Africa (King II). King II
acknowledges that there is a move away from a single bottom line (that is,
profit for shareholders) to a triple bottom line, which embraces the economic,
environmental and social aspects of a company's activities. In the words of the
King Committee:
"�successful governance in the world in the 21st century requires companies
to adopt an inclusive and not exclusive approach. The company must be open to
institutional activism and there must be greater emphasis on the sustainable or
non-financial aspects of its performance. Boards must apply the test of
fairness, accountability, responsibility and transparency to all acts or
omissions and be accountable to the company but also responsive and responsible
towards the company's identified stakeholders. The correct balance between
conformance with governance principles and performance in an entrepreneurial
market economy must be found, but this will be specific to each company.
It is of course accepted that business people have a legitimate expectation
to receive a return on investment. But the question is, at what point do our
political objectives and our economic ones converge to make the greatest impact
in terms of long term foreign policy objectives and indeed the long term goals
of our country as a whole? If we can provide an answer as to what this
convergence point is, then we can consider ourselves to be well on the way to
attaining our vision to create a just and equal world with sustainable national
economies.
Success in attaining the kind of world we strive for lies in strong
partnership between government and business. Occasion such as this provide a
valuable opportunity to share ideas on how we can work together for the
realisation of our national interests. This is especially important at a time
when the challenges in the global economy remind us all of the increasing
interdependence between our political and economic objectives.
As a new democracy, one which many people believe is dynamic and exciting,
we have the energy to consider that another world is possible, and work towards
its fulfilment.
Let me conclude with an interesting observation about the possibilities for
change that Joseph Stiglitz makes in his seminal publication entitled, Making
Globalisation Work. In the first Chapter, he argues that:
"Globalisation will change. The current system cannot continue. It will
either change as a result of crisis or it will change because we approach
problems in a systematic rational way. The hope that underpins my book is that
we will opt for the second option."
I wish to thank you for your attention and to once again emphasise the
importance which government attaches to partnership with civil society in
general and business in particular to creating a more equal and just world.
I thank you.
Issued by: Department of Foreign Affairs
17 October 2006
Source: Department of Foreign Affairs (http://www.dfa.gov.za)
