D Shabalala on behalf of Z Mkhize: Graduation ceremony of Management
Advancement Programme

15 December 2006

Professor Ncube, Director of Wits Business School
Master of Ceremonies, Mr Stanley Letsoko
Mr Mike Mundi, Durban Lecturer of Wits Business School
Graduates
Ladies and gentleman

“The new Africa can only be a product of the creative interface between the
public, the private and the civic domains. At the centre of this interface is
the system of education. If the education system, particularly at its higher
levels, is to supply society with citizens of vision and commitment, it must
win and enjoy the respect of the whole society, and must be accessible to all.
In this context, a university should not be an enclave or an ivory tower, whose
curricula and programmes have little relation to the society in which it
operates."

In my view, this is a key and relevant extract from a speech by President
Thabo Mbeki at the University of Cape Town in November 2004. This extract,
however, was a clear indicator, as I understand it, of a major shift in the
manner in which the government of the Republic of South Africa was to view
higher education. What is important for our purposes is the notion that higher
education is at the centre of the human development strategy of this
country.

May I pause here and convey the sincere apologies of the Honourable MEC, Dr
Zweli Mkhize, who could not deliver the address in person – he is currently
committed to another pressing engagement this afternoon as the acting Premier
of the province. Master of Ceremonies, please allow me to congratulate the Wits
Business School particularly the Management Advance Programme (MAP) graduates.
I congratulate you on your hard work, dedication, commitment and the
achievement we are celebrating today.

I would like to encourage you to explore all the opportunities that are
available to you through this qualification. Your graduation could not have
come at a more opportune time. As those of you who did macro-economics will
know, the availability of skills and the productivity of a nation’s human
capital determine the rate of growth of its economy and competitiveness in
world markets. However, South Africa, like most developing nations in Africa
has a shortage of well trained and skilled labour.

The globalisation of the labour market has only helped to perpetuate the
shortage status quo. I am therefore appealing to these learned graduates to
consider opportunities in South Africa first before contemplating Australia,
New Zealand, the United States and the United Kingdom. I can assure you - we
need you more here than they need you over there. Let me divert a bit and
embark on a philosophical trip and explore the concept of a developmental
state. South Africa is frequently referred to as a developmental state.
According to Thandika Mkandawire – the "developmental state" has two
components: one ideological, one structural. It is this ideology-structure
nexus that distinguishes developmental states from other forms of states.

In terms of ideology, such a state is essentially one whose ideological
underpinning is "develop-mentalist" in that it conceives its "mission" as that
of ensuring economic development, usually interpreted to mean high rates of
wealth accumulation and industrialisation. Such a state "establishes" as its
principle of legitimacy its ability to promote sustained development, as
measured by steady high rates of economic growth and structural change in the
productive system, both domestically and in its relationship to the
international economy" (Castells, 1992: 55).

At this ideological level, the elite must be able to establish an
"ideological hegemony", so that its developmental project becomes, a
"hegemonic" project to which key actors in the nation adhere voluntarily. The
state-structure side of the definition of the developmental state emphasises
capacity to implement economic policies effectively. Such a capacity is
determined by various elements institutional, technical, administrative and
political. Under-girding all these is the autonomy of the state from social
forces so that it can use these capacities to devise long-term economic
policies unencumbered by claims of myopic private interests.

My own interpretation of a developmental state is very simple. First, such a
state needs to care about the well-being of its citizens regardless of
political persuasions, gender, race and religious association. Such a state
needs to provide access to basic services – water, electricity, housing, health
services, etc. to all communities, particularly the poor and the vulnerable.
Such a state needs to open employment opportunities to the unemployed.

Such a state needs to foster partnerships with the private sector, research
organisations, institutions of higher learning and the civil society. A
developmental state is however not equivalent to a welfare state. A
developmental state fosters a culture of self-reliance, self-help and
empowerment. This qualification you are receiving today is a weapon you will
need to conquer the war against dependency and disempowerment. Through your
individual contributions in the economy and the society at large you will be
contributing to the realisation of a true developmental state, South Africa
aspires to be. In IsiZulu we say "phonsa itshe esivivaneni."

Partnership for growth and development

It is therefore, not asking too much to today’s graduates, that as you go
out into the wider world: you must let those who sit in the hallowed chambers
of political and economic power, as well as the media and other institutions of
ideology, hear your voices asking intellectual questions and be part of the
partnership for growth and development. In doing so you must remember
that
South Africa emphasises the importance of three aspects of partnership.

Firstly, within a changing global context, South Africa is defining its
identity by a variety of co-operative relations, first and foremost with the
rest of the African continent. We are building a special relationship with
other regions of the world at a similar stage of development and with similar
interests. In so doing we are also adding our voice to the call to ensure that
the emerging world economic order works to the benefit of all, and not only of
some, in a truly international partnership for development. And we are
redefining our relations with the developed world, so that they are of mutual
benefit.

Secondly, development will not be achieved if it is regarded as the
responsibility only of government. It requires governments to join hands in
partnership with their social partners: the private sector; labour,
non-governmental organisations (NGOs), institutions of higher learning and the
rest of civil society.

Finally, the private sector has the potential to make a significant
contribution to the regional development process, not simply as a source of
investment funds, but also in infrastructure development, technological change
and the development of our most precious asset, our human resources. This being
so we should join in a partnership to make development integral to private
sector activities, rather than some extra contribution which the sector might
or might not choose to engage in. South Africa has achieved many things since
the dawn of democracy, but one of the most remarkable is the way we have
embraced a shared future, the way we have had to reverse a history of
divisions, the way we are profoundly conscious that we are, together,
custodians of our nation’s well-being and future.

It is a sense that we can galvanise the full wealth of our people’s skill,
our innovation and our energy to eradicate poverty and drive development. The
development agenda is of course, formidable - quality healthcare for all;
quality education for all; safe water and sanitation for all; roads, rail,
ports, communications infrastructure, black economic empowerment; a justice
system that works; sport and cultural facilities that build pride; the
protection of our biodiversity and heritage - and much more. This means that
when we are confronted with the practical matters of how to deal with this
agenda, it is not surprising that we look to the full spectrum of our country’s
human resources, both public and private. But we do so not with a hazy notion
that somehow we are individual philanthropists. We do so rather, with a sober
understanding that the diverse interests of different sectors can in fact be
harnessed for the betterment of our people. That is what private-public
partnership is all about.

Economic growth and development strategy

For its part, KwaZulu-Natal has also developed a medium to long-term
economic growth and development agenda aimed at achieving sustainable growth
levels in the economy of 6% and more by 2014. The strategy is based on
following four pillars:

* skills and capacity building – to which higher learning institutions are
central,
* broadening participation in the economy
* increasing competitiveness
* increasing investment in the province

I put it to you, ladies and gentlemen, that to achieve these goals, a
working partnership between government and business is the key. It is in this
context that the KwaZulu-Natal government has developed long-term partnerships
with the private sector and very soon the benefits of these partnerships will
be realised. We have seen major financial institutions such as Standard Bank,
ABSA, Development Bank of Southern Africa, National Development Agency and
Ithala take a keen interest in supporting Local Economic Development and small,
medium micro-economic initiatives in the province. You will recall, ladies and
gentlemen, that financial institutions have historically tended to show a high
degree of risk aversion towards financing small businesses due to lack of
adequate collateral.

However, in recent past we have witnessed a positive change in the way these
institutions view and deal with small businesses. We have already signed
memoranda of understanding with institutions such as Standard Bank and ABSA on
the financing of the small, medium and micro enterprises (SMMEs). So if any of
the graduates here today are entrepreneurial, the opportunities in
KwaZulu-Natal are abundant.

2010 Soccer World Cup and developmental benefits

Ladies and gentleman, my speech would not be complete if I didn’t refer to
the ever-so-near 2010 soccer World Cup. Preparations particularly in
KwaZulu-Natal are very advanced. Together with the private sector and other
relevant stakeholders we have committed to building an iconic stadium to cement
our position as Africa’s sport and leisure destination. The hosting of the 2010
soccer World Cup will definitely open up many opportunities which I am sure our
graduates assembled here today will grab with both arms.

Ladies and gentlemen, imagine trying to achieve the government’s objectives
without relevant stakeholder involvement - particularly the private sector and
institutions of higher learning - combating HIV and AIDS without AIDS
researchers providing primary education without training teachers to develop
and deliver curriculum. Strengthening governance without qualified
policy-makers, judiciary and business leaders.

As key institutions of civil society, universities particularly institutions
like Wits Business Schools are uniquely and strategically positioned between
the communities they serve and the governments they advise. Clearly,
partnerships between government, private sector and institutions of higher
education are crucial to achieving government’s objectives. At the core of a
country’s knowledge infrastructure, universities assist community groups and
advise all levels of government and business. The skills developed in tertiary
education contribute to economic growth and the elimination of poverty, the
ultimate goal of the South African government.

However, this poses a challenge, to the institutions of higher learning. It
challenges them to rethink both their roles and relationships and its
partnerships with government and with the private sector and other
stakeholders. I therefore challenge WITS to rethink its relationship with
government and how such a relationship can be structured such that the
partnership gives effect to the developmental-state agenda I spoke about
earlier. Universities help develop skills and create the knowledge needed to
provide effective services to the community. Universities also provide a strong
research base that informs government policy decisions.

Universities train future business leaders, policy-makers, scientists,
teachers and front-line service professionals. They also create the knowledge
needed to better understand development challenges and identify locally
relevant solutions. In conclusion, ladies and gentlemen, let me say well done
once again to the graduates. Please utilise your qualification to the fullest.
South Africa is a country full of opportunities. Go out there and grab
them!!

Happy holidays.

Issued by: Department of Finance and Economic Development, KwaZulu-Natal
Provincial Government
15 December 2006
Source: KwaZulu-Natal Provincial Government (http://www.kwazulunatal.gov.za)