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- Important defection from the ANC to the EFF, and the DA launches robust campaign in Soweto – but it is probably not yet enough to scare the ANC
- Appropriate concern grows at the Promotion of Investment and Protection Bill
- Stunning victory in eastern DRC is becoming a feather in Zuma’s cap …
- … while the chaos in the SAPS and crime intelligence is a serious indictment of South Africa’s political leaders – and is threatening the investment environment
Herewith my latest news summary and analysis.
As I have mentioned previously, I write these updates very early on Monday mornings for the paying clients of BNP Paribas Cadiz Securities. So thanks to those good people for allowing me to republish a few days later here (and thanks to them for giving me a fairly loose rein as to the style I am allowed to use).
Dali Mpofu announces defection from ANC to EFF
Dali Mpofu, advocate of the miners who were killed by the police in Marikana and a former CEO of the SABC, announced over the weekend that he was leaving the ANC and joining the Economic Freedom Fighters. While this is not completely unexpected (he represented Julius Malema in the ANC disciplinary hearings against the former ANCYL chairperson) Mpofu is perhaps the most mainstream figure to formally defect from the ANC and declare for the EFF.
This is my ‘shifting target’ predictions for the 2014 national election as of Friday November 1 (click on the graphic to see the details … and note the cute child sucking her thumb which is a graphic metaphor indicating I am making this up as I go along):
Some of you who saw those estimates in September might notice that I have massaged the EFF upwards and AgangSA downwards.
My Democratic Alliance results are probably too generous, although the pictures published in Afrikaans weekly Rapport on Sunday (11/03/2013) of the DA’s Gauteng premier candidate Mmusi Maimane’s launch of his campaign in the Walter Sisulu Square in Kliptown, Soweto on Saturday indicate a surprisingly robust start.
My caution about the upside for the DA is based on the history of outcomes in the four national elections since the advent of democracy in South Africa in 1994 (again click on the graphic for a version large enough to read … note DA at 16.66% in 2009 and ANC at 65.9% … hmm):
One would have to suggest that the DA has set itself too difficult a task in declaring that it hopes to achieve 30% of the national vote and be in a position to form a provincial government in Gauteng in an alliance with other opposition parties after elections in 2014. The EFF and AgangSA are likely to eat into ANC support but the challengers have a mountain to climb and the incumbent has to fall a long way before the climbers even catch sight of their objective.
Concern grows at the Promotion of Investment and Protection Bill
Legislation designed to replace a number of bilateral investment treaties that South Africa has maintained with over a hundred trade and investment partners was published in the government gazette on Friday and is starting to raise concerns among investors. Already Minister of Finance Pravin Gordhan has angrily blamed “lawyers serving the private sector” for increasing uncertainty in South Africa’s investment environment with regard to this legislation (in a deeply unhelpful statement he made on the side-lines of the African Economic Conference at Montecasino in Johannesburg last Monday – Business Day 28/03/2013).
At the height of the campaign for the nationalisation of mines during 2012 (by Julius Malema and the ANC Youth League) it was South Africa’s myriad bilateral investment protection treaties that were the strongest argument of reassurance for foreign investors. The problem is less the new legislation, and more that fact that existing treaties will not be renewed. Business Day in its front page lead story this morning says the decision not to renew the treaties has been criticised “by a range of groups, from foreign business to credit agencies for causing uncertainty over the security of future foreign investment”. An informed legal opinion would be a requirement for the proper assessment of the risk here, but it is appropriate to approach this policy and legislative shift with caution.
Jacob Zuma attempts to fill the Great Lakes power vacuum
In the light of a stunning and quick Congolese army (FARDC) victory over the occupying M23 rebels last week, Jacob Zuma has moved quickly to reinforce South Africa’s apparent sovereign advances in the region. Today he will host a joint summit of southern African and Great Lakes leaders in Pretoria to seek ways of consolidating this week’s victory by the FARDC and its Southern African allies … and on Tuesday he will chair another summit designed to kick-start an African Union plan for volunteer governments to form “coalitions of the willing” to tackle continental conflicts – Sunday Independent 03/11/2013.
The contending interests in and around the Eastern Congo are extraordinarily complex, but from a South African perspective the apparent defeat of the M23 is a success for the SADC Force Intervention Brigade (FIB) to which South Africa has contributed more than 1 300 troops alongside 1700 from Tanzania and Malawi. The M23 is backed by Rwanda which in turn is an ally of the US and the UK in the region. Crucially, those Western powers have warned Rwanda’s President Paul Kagame to back off supporting the M23 – which is probably what left the rebels vulnerable last week (Sunday Independent and other several other sources).
There are significant mineral resources in the region and the Inga hydroelectric projects might become decisive to economic development in several southern African countries. Stability in the eastern DRC impacts on Uganda, Tanzania, Rwanda, Sudan and even Angola, Zimbabwe and South Africa. Jacob Zuma has managed to shift significant obstacles out of the way of reformatting alliances in the region – an objective that eluded Thabo Mbeki. The situation is delicate and tentative but Jacob Zuma’s decisive follow-up indicates he is seizing the historical moment and the initiative in a manner that we would have thought unlikely a year ago.
The DRC is a Zuma plus but Crime Intelligence and the SAPS is deepening minus
The main domestic weekly newspapers (Mail & Guardian, Sunday Times, Sunday Independent and City Press) all attempted (unsuccessfully) to make sense of the damaging disarray and conflict in various aspects of the South African security services, most importantly in Crime Intelligence, the Hawks and the top echelons of the South African Police Services itself.
Last Monday the national police commissioner Riah Phiyega issued a suspension letter to the acting Crime Intelligence head, Chris Ngcobo (on the basis that there is some unspecified problem with Ngcobo’s qualifications). Almost immediately afterwards a spy tape emerged and was leaked to the press that indicated Riah Phiyega was guilty of a crime by having “tipped off Western Cape police boss Arno Lamoer about a crime intelligence investigation linked to him” – Mail & Guardian.
You have to go to the source code for what is happening here because the details of each claim and counter-claim are impossible to follow. Essentially the police, and particularly Crime Intelligence, have been profoundly damaged by having been drawn into high-level political contests, particularly those between former president Thabo Mbeki and then challenger Jacob Zuma. Significant parts of these apparatuses have become semi-criminal and out-of-control, pursuing sometimes arcane political (and worse) agendas. The top echelons of our political establishment are directly implicated in and linked to this chaos – having deployed these institutions in their internecine battles. No individual institutional failing in South Africa is more serious and more threatening for those seeking stability and certainty in the regulatory and institutional environment.
As promised some comments on the politics of Pravin Gordhan’s medium-term budget … but first forgive me for expressing some of my irritation at two of his (Gordhan’s) recent statements.
That will be followed by some of the bits and pieces I found interesting in the weekly newspapers – if you didn’t see the ‘Zuma gaffes” selection in the Sunday Times and City Press I reproduce some of them here.
Look I am not yet ready to start calling him a tubby little tyrant with the charisma of a mud prawn but Pravin Gordhan has been saying some things that are not hugely endearing.
First he told a joint parliamentary committee that negative news flow from ‘the media” was partly responsible for sovereign downgrades of South Africa’s debt. So what, he thinks Moody’s, S&P and Fitch get their understanding of government policy from the Sunday Times? It is just a stupid thing to say and makes him sound just like a National Party ministers circa about 1986. Catch that here.
Secondly, responding to the flurry around South Africa’s cancellation of its bilateral investment treaty with Germany he “blamed lawyers serving the private sector for increasing uncertainty in South Africa’s investment environment” – catch that Business Day story here .
I didn’t personally hear Gordhan in either of these instances but there might be a pattern emerging:
Okay, I am glad I got that off my chest – on with the rest.
Political messaging and the medium-term budget – all good
If political messaging was all that we were looking at in the MTBPS then we would have to conclude that Pravin Gordhan’s performance was overwhelmingly financial market positive. Obviously ‘messaging’ doesn’t determined the price of eggs or the price of much else. The believability of Minister Gordhan’s various estimates and projections is ultimately more important for determining sovereign risk, but the overt politics of the message indicates a more confident government prepared to stand on organised labour’s toes to reassure global capital markets (and other investors).
Firstly, Gordhan was on message with regard to the Employment Tax Incentive Bill. This is the latest manifestation of the youth wage subsidy and has been bitterly opposed by Cosatu and, to some degree, by members of the SACP (for reasons that I have explained elsewhere). It is unclear whether the policy will make a significant dent in South Africa’s serious youth unemployment problem (which deputy minister of Finance Nhlanlha Nene recently put at 42% for those aged between 19 and 29) but what the rating agencies have been looking for is signs that the ANC and government can forge policy independent of, especially, Cosatu – and in this confident assertion by Gordhan they have their signal.
Secondly, the Finance minister cast the MTBPS – and, in fact, all future budget statements – as the accounts of the National Development Plan (NDP). Again, the NDP is bitterly opposed by Cosatu – and is less than warmly regarded by the SACP. It is a confident Jacob Zuma that backs his Minister of Finance to define government budgeting as : “(t)aking the National Development Plan as the point of departure”.
The NDP is little more than a shopping list and a general statement of intent but it generally conceives of the market as the appropriate mechanism for the allocation of capital (at least more so than the New Growth Path and the Industrial Policy Action plans do). It also puts the infrastructure plans and improving capacity and accountability of the public service as key planning objectives. There is no evidence that the ANC and the Zuma administration is going to succeed in moving beyond planning to implementation, but Gordhan made the right noises in his speech.
Thirdly Gordhan pressed every conceivable button in his attempts to tone down excesses in the executive and the public services. He placed a number of ceilings on luxuries, cars, travel, catering, accommodation, use of credit cards – and amongst the Twitterati the cry went out: Gordhan derails the gravy train!
Again this is good form but we have to keep an eye out for the content. After all this is a government led by a president deeply implicated in the ambitious abuse of various privileges. It is going to take a more than fine sounding words to convince the country that the gravy train has, in fact, been delayed let alone derailed.
Fourthly the key political aspect of political risk in relation to the budget is the commitment to restrain growth of the public sector wage bill and social grants – two pillars of both political stability and continued electoral support for the ANC. Obviously the minister (at this stage the apparently tough and skilful Lindiwe Sisulu) in public service and administration will have to hold the line in public sector wage negotiations – we will have to wait to see how that plays out, but Sisulu is the right person for the job of holding that thin red line.
Loud and widespread muttering about power struggles in the Democratic Alliance
It should probably be seen as a sign that the Democratic Alliance is on the verge of breaking out of its previously narrow ethnic base that the fine details of its internal power struggles are becoming a matter of national public debate. All the major weeklies discussed a putative succession struggle between the DA’s national spokesman and candidate for Gauteng premier, Mmusi Maimane and the DA parliamentary leader Lindiwe Mazibuko. The point being that Maimane’s supporters are pushing for him to be on the parliamentary list so that if the DA does not win Gauteng next year (dah!) he will still get into parliament.
Obviously the Democratic Alliance believes that it needs a black leader if it is to make a serious dent on ANC support in 2019 – but the matter is not so pressingly urgent that they are likely to dump their extremely successful and popular leader Helen Zille any time soon. I still think there is space for an amalgamation of the DA and AgangSA after that new party performs adequately but fails to shoot out the lights in 2014. That will leave the tantalising possibility of Mamphela Ramphele finding her way into the top leadership of the DA some time in about 2016. So of the three potential black leaders of the DA, Maimane probably has most township credibility and would represent the DA going out there head-to-head with the ANC for the African vote. Lindiwe Mazibuko would be the most palatable for the DA’s traditional support base (yes, we all know who I mean). And Ramphele, with her struggle credibility and achievement in academia and business seems like a perfect – and heavy hitting – compromise. She might need a charisma injection, but that is purely a personal observation.
Mozambique – Renamo rears its scarred and ugly old head
The Mozambique army overran a key Renamo base in central Sofala province on Monday last week and Renamo guerrillas hit back on Saturday by ambushing a minibus, killing one person and injuring 10 more.
This might seem like small cheese, but Monday’s government attack has forced Renamo opposition leader Afonso Dhlakama to flee into the bush and has raised the spectre of the restart of the 16-year civil war which ended in a 1992 peace pact that established multi-party democracy in Mozambique. Renamo has lost every election since 1992 but Dhlakama’s party said on Monday it was abandoning the peace agreement. In and of itself what has happened over the last week is not huge, but in the context of the hopes for Mozambique’s economic growth as that country emerges as a natural gas giant, Renamo becomes a significant risk that needs careful attention.
The Cosatu vortex is sucking in everyone in – this is a clear and present danger
This weekend the national general council of the powerful South African Democratic Teachers Union lined up in precise opposition to Numsa in the on-going and bitter struggle taking place in Cosatu. Sadtu backed the disciplinary process against Zwelinzima Vavi, it vigorously opposed the holding of a special Cosatu conference and it unequivocally backed the ANC in elections next year.
My own (perhaps counter-intuitive) view is that the only way for Cosatu to remain as a functional federation and part of the ruling alliance is for a special congress to be held during which Zwelinzima Vavi wins the popular vote, escapes disciplinary action for his various infractions (both the real ones and the made up ones) and Numsa decides to stay in the federation. However, it is looking increasingly like the ANC loyalists are going to force Numsa, Vavi and their various allies out of the federation. Note that Sadtu itself is facing something of a minor palace revolt after receiving threats from some of its own members who are angry at the suspension of the union’s president Thobile Ntola for supporting Zwelinzima Vavi. Yes the key Zuma and ANC allies in Cosatu can force the leftist critics out of the federation but that will lead to a split – and, in my opinion, cascading instability throughout the labour sector as Numsa and others compete in every workplace against the incumbent Cosatu union. This outcome is closer than ever and it appears to me can only be averted if a special Cosatu congress is allowed to take place and that a likely democratic victory by Numsa and Vavi is allowed to carry at any such conference. It would stick in some ANC craws, but it would re-establish the status quo of a restive Cosatu that remains a faithful, if critical, ANC ally.
Jacob Zuma provides some light relief
Politicians often say things that outrage some and delight others by providing grist to the social satirist’s mill.
Jacob Zuma provided a gem last week when he said:
“We can’t think like Africans in Africa, generally; we’re in Johannesburg (the N1 is) not some national road in Malawi”.
(Gauteng ANC manifesto forum – October 21 2013)
This provided the opportunity for several journalists (most notably Gareth Von Onsellen in the Sunday Time and Carien Du Plessis in the City Press) to aggregate some of Jacob Zuma’s more illuminating gaffs from the last several years. Here, purely to save you from having to dig into the papers yourself, are some of those:
“I’ve always said that a wise business person will support the ANC … because supporting the ANC means you’re investing very well in your business”
(ANC 101st anniversary gala dinner in Durban – January 12 2013)
“Sorry, we have more rights here because we are a majority. You have fewer rights because you are a minority. Absolutely, that’s how democracy works”
(President’s question time in the National Assembly – September 13 2012)
“Kids are important to a woman because they give extra training to a woman, to be a mother.”
(SABC interview with Dali Tambo August 19 2012)
“Even some Africans, who become too clever, take a position, they become the most eloquent in criticising themselves about their own traditions and everything”
(Speech to the National House of Traditional Leaders November 1 2012)
“When you are carrying an ANC membership card, you are blessed.”
(Address to ANC supporter in Easter Cape – February 4 2011)
“The ANC will rule South Africa until Jesus comes back.”
(Gauteng ANC special council – March 15 2004)
We don’t want to review the Constitutional Court; we want to review its powers.
(Interview in The Star Newspaper – Feb 13 2012)
When compared with other famous presidents Zuma’s gaffes are fairly benign … (hmm I am no longer as sure that those are quite as benign and cute as I thought they were when I wrote that early Monday morning … but I will let it stand for now.) What is interesting is how socially conservative some of his off-the-cuff comments are. It gives some insight into the gradually building pressures in the ANC with regard to appealing to an urban professional class versus traditional rural groups. There is no question that Zuma represents only one of those choices.
Bits and pieces
- Pravin Gordhan’s medium-term budget statement received both criticism and praise. Cosatu’s spokesman Patrick Craven described it as “a conservative macroeconomic framework predicated on a neo-liberal paradigm”. Piet le Roux, the senior economic researcher at Solidarity (coming, in some ways, from the other side of the spectrum) said Gordhan’s mini budget was based on an “unsustainable model of deficit spending, mounting government debt and onerous taxation”.
- The Association of Mineworkers and Construction Union (Amcu) announced on Friday (25/10/13) it would consult its members on a possible strike after it received a certificate to strike at Impala Platinum (Implats) when wage negotiations deadlocked. Amcu is demanding a basic salary of R12 500 a month for underground workers and R11 500 for surface workers.
I have been on the road without respite for close to 4 weeks … so here is brief selection of some of my news commentary over the last few weeks, just to show that I am alive and working, albeit a little frenetically. Apologies for the out of date bits and the bits that history has caught up on already.
- Terror attack in Nairobi is the leading-edge of an expanding band across West, North and East Africa
- The conflict in Cosatu is serious for financial markets for several reasons, and while there are some narrow paths out of the quagmire it is increasingly unlikely that these will be the roads travelled by the incumbent leadership of the Ruling Alliance
- The mining regulatory instability is the tip of an iceberg of hostile policy that investors need to start putting at the centre of their vision.
Nairobi terror attack part of a developing African front
The death toll in an attack on a shopping mall in Kenya’s capital city, Nairobi, rose to 59 by the time of writing this morning. The attack began on Saturday morning and appears to have been carried out by an international unit affiliated to Somali’s al-Qaeda linked al-Shabaab movement and is retaliation for Kenya deployment of 4000 troops to back the Somali government against the rebel army. On the same weekend 80 people were killed in Northeast Nigeria in a series of Boko Haram attacks.
al-Shabaab, joins Mali’s AQIM (al-Qaeda in the Islamic Maghreb), Nigeria’s Boko Haram and similar movement in Tunisia and Algeria in a thickening arc (across the whole of West, North and East Africa) of a specific al-Qaeda franchised brand of jihadist rebellion linked to the Wahabi or Salafi traditions that have their origin in Saudi Arabia. This arc of organisations is likely to play a significantly destabilising role, pushing both North and South in the years ahead. The jihadists will be looking for equivalents of Chechnya and Afghanistan as safe ground on which to train and equip international brigades (as they did in Mali up until the French intervened in January this year but might be still doing in territory outside of government and French control) and world powers will be looking to stop them. This will become an increasingly important element of investment decision across the whole band of countries affected. Kenya, Nigeria and Uganda are not necessarily mortally injured by events like the one at the Westgate Mall in Nairobi (that is still on-going as I write this) but the signal is that we need to have this matter more central in our assessments of the region.
Cosatu ructions have potentially serious implications for investors
The trade union ally of the ruling African National Congress continues to suffer a debilitating leadership struggle. Cosatu’s Central Executive Committee has received letters from the requisite quorum of unions insisting that a special congress of the federation be held. The weekly newspapers are full of speculation as to whether such a congress would reinstate Zwelinzima Vavi and get rid of Cosatu president Sdumo Dlamini, deputy secretary general Bheki Ntshalintshali; and Cosatu’s second deputy president Zingiswa Losi – who are Vavi’s main foes and Zuma’s main friends (simplification alert) amongst Cosatu’s NOBs (National Office Bearers).
It is possible that Sdumo Dlamini will attempt to block the special congress by arguing that several administrative and technical barriers (time, money and the upcoming national elections) make it too difficult to hold. This is what is at stake:
- Based on previous voting patterns a special congress of Cosatu is likely to reinstate Vavi and it is conceivable that such a congress could expel the ANC and SACP loyalists from the federation’s top structure.
- However an alternative outcome could be the reinstatement of Vavi, and the recovery of a fragile unity in the federation prior to next year’s election. This would require the top ANC leadership and its allies in Cosatu backing off their attempts to shaft Vavi. It appears this requirement would be difficult for the Zuma leadership of The Alliance to meet. Zuma’s leadership is increasingly characterised by a (essentially weak) reliance on force and the driving out of critics – as opposed to (an essentially strong) ability to provide leadership and establish hegemony over an unruly and contested alliance of forces.
- Thus if the ruling group fails to find an accommodation with Vavi it is a real possibility that Vavi and his allies will be forced out of Cosatu. This result could be catastrophic for both the ANC and for industrial relations stability as a whole. Numsa would go with Vavi and Numsa would have the capacity to compete successfully with a host of other Cosatu unions, particularly the National Union of Mineworkers (Num). The disastrous consequences of the contest between Num and Amcu could be a template for similar contests between Numsa and several other Cosatu unions.
- A split Cosatu could conceivable lead to the formation of a new ‘worker’ or ‘left’ political party or alliance that could, ultimately, challenge the ANC at the polls. There are a number of reasons why The Alliance has maintained its integrity for so long – and generally those who have been expelled or who have left of their own volition have shrivelled in the cold. However this conflict in Cosatu, driven as it is by the Zuma leadership’s attempt to supress criticism of corruption and dissent about policy, is changing the equation.
- Vavi and his allies accuse the Zuma leadership of attempting to make Cosatu into a ‘labour desk’ of the ANC. It seems to me that this accusation is essentially correct and that the solution that would work best for the ANC and for industrial relations (in the short to medium term) would be to allow Cosatu to make its own decision about leadership at a special congress.
Mining regulatory instability is the tip of an iceberg of hostile policy
To understand how increasingly hostile is the stance of government towards business in South Africa, listen to the words of Chamber of Mines head Bheki Sibiya talking about the proposed mining law amendments after public hearings on the matter ended last week (in the Sunday Times, 22/09/2013 and Business Day of 20/09/2013).
He points out that the Mineral and Petroleum Resources Amendment Bill of 2013 intends to significantly empower the minister to intervene in the sector – specifically with regard to ownership and pricing. “Mining is long term. Once one is not so sure about one’s rights in the long term, one would rather say let’s cut our losses now. This is what investors will do … If pricing is not going to be decided by the markets but by some individual, then when you do your projections you’re shooting in the dark” he said.
Sibiya specifically bemoans the recent process of business engagement in various amendments to the Labour Relations Act and the Basic Conditions of Employment Act. In those cases years of proposals were essentially ignored by government and it (government) went ahead with what it wanted and what its alliance partner Cosatu wanted.
Business Day took these observations a little further this morning when it republished a quote from last week by Thami ka Plaatje, head of research at the ANC and an adviser to Public Service Minister Lindiwe Sisulu: “We are still wresting control from the white capitalist economy. We still reel under the oppressive yoke of all-pervading oligopolistic and monopolistic forms of the white economy.”
Regulation and policy in a complex, modern, small and open economy like South Africa’s requires a degree of sophistication that seems increasingly absent from this government. Policy and political risk is inevitably escalating as a government with a diminishing capacity develops an expanding agenda.
…. and then, from even further back, for those with an interest in ancient history …. like 4 weeks ago:
- Strike wave breaks across the country – there are both normal and abnormal drivers
- Alliance Summit – ANC’s inevitable schizophrenia on economic policy is leaving everyone dissatisfied, The tension is evident in mining minister Shabangu’s comments in Australia versus deputy president Motlanthe’s efforts at the Mining Lekgotla in Johannesburg
- The criminal justice system is ever more appropriately named
- Editor in hiding from GuptaTV – comic relief tinged with embarrassment
Strikes – turbulence as the cycle hits the secular trend
Num (the National Union of Mineworkers) has served notice on the Chamber of Mines (COM) of its intention to strike across the gold sector, beginning with the Tuesday night shift this week. Num represents 72,000 of the country’s 120,000 goldmine workers. The Chamber made a final offer of a 6-6.5% wage increase, while Num is holding out for 60%. Amcu, which is also represented in the gold sector (now 19% of workforce according to the COM, but probably as high as 30% according to Adrian Hammond, gold analyst on the BNP Paribas Cadiz Securities) wants a 150% increase but has not announced that it intends to strike, and nor have Solidarity and Uasa.
There are ongoing strikes by workers in auto manufacturing, construction and aviation services and threatened strikes among textile workers and petrol station employees – but these strikes are, at this stage, part of the normal cycle.
We have mentioned previously:
“South Africa has a predictable strike season, the timing of which coincides with the expiration of bargaining chamber agreements in different sectors of the economy. Every year it appears that a wave of strikes is enveloping the country, but at some time during the gloom, journalists twig to the fact that this happens every year – much of the flurry in normal and predictable” – SA Politics, April 29 2013.
Several such ‘predictable’ strikes are happening or about to happen as I write this.
However, the gold sector breakdown is outside of the normal cycle both in how far the negotiating parties are away from each (6-6.5% versus 60-150%) and in the complex game being played between Num and Amcu. Amcu has quietly welcomed the impending strike as a chance to prove that, in fact, Num does not represent the majority of workers at key mines. On Friday, Amcu president Joseph Mathunjwa said Num’s strike would “qualify” its official representivity of more than 60%. He urged that everyone should: “watch this space”.
Business Report in the Sunday Independent argues that South Africa’s four biggest gold producers are hoarding cash and lining up access to more in preparing for an industry wide strike. “If we are, let’s say, bullied into a situation that we don’t like, we can ride out the storm for a very long period of time,” said Sibanye chief executive Neal Froneman in the Bloomberg sourced story.
The essence of the gamesmanship between Num and Amcu is Num must demand and win an increase via strike action that is satisfactory to its membership, and Amcu must try and undermine the strike action and argue that, anyway, the ‘demand’ in the Num led strike is inadequate. On mines where Amcu dominates (in the Carletonville region at AngloGold, Harmony Gold and Sibanye Gold, according to Adrian Hammond BNP Paribas Cadiz Securities gold analyst – see his note “Wage Negotiations – The Final Round? August 28 2013) Amcu must attempt to force mines out of the central bargaining process by ensuring that no central agreement can achieve a sustainable settlement at the local mine or company level.
An interesting discussion in today’s Business Day by the always excellent Carol Paton suggests that employers with large Amcu membership, specifically at Amcu strongholds at AngloGold Ashanti’s Mponeng mine; Harmony’s Kusasalethu and Sibanye’s Driefonteing favour a lock-out because they believe Amcu will sit out the Num strike and then strike themselves once that is settled. Paton’s story suggests that by locking workers out employers force all workers into one camp. “By declaring a lockout, employers would get around this problem, through forcing Amcu into the dispute now and exhausting workers’ resources to endure a strike.”
The African National Congress, the South African Communist Party, the Congress of South African Trade Unions and the South African National Civics Organisation met in a long postponed summit over the weekend to discuss and agree upon economic policy. The premise of the discussion was “unless we make significant inroads in addressing the challenges of poverty, inequality and unemployment, the democratic constitutional gains of the first phase of our transition will themselves be eroded” – from the Summit Declaration
The Declaration situated the discussion by arguing that
“… stagnation continues to characterise the developed economies, there has now been a significant slowing of growth in key developing economies, including China, India and Brazil. The commodity super-cycle of the recent past is now over. This has had an impact on economies dependent upon the export of industrial minerals and coal. The attempts to refloat growth in the US with a loose money policy have created further turbulence in many developing economies like SA.”
The Summit went to some lengths to defend against the accusation that poor economic performance was in any way related failures of “the South African government, or the labour movement”. Instead, the summit declaration lists achievements in infrastructure build, land reform and youth and labour market reform.
On macroeconomic policy the summit called for:
“bold forms of state intervention, including through:
- Financial regulation and control;
- Progressive and redistributive taxation
- Wage and income policies and progressive competition policies that promote decent work, growth and address poverty and inequality.
- A well-resourced state-led industrial and trade policy
- Increased state ownership and control in strategic sectors, where deemed appropriate on the balance of evidence,
- and the more effective use of state-owned enterprises
The Alliance Summit used all the right language to keep the different elements of the alliance together but said nothing that might reassure spooked investors. The opposite is probably true. Just look at the words: “progressive and redistributive taxation”, “well-resourced state-led industrial and trade policy”, “increased state ownership” and “wage and income policies … that … promote decent work, growth and address poverty and inequality.” This is not the language that Kgalema Motlanthe used as he attempted to pacify investors at the presidential mining lekgotla in Johannesburg last week, but it is precisely the atmosphere of mining minister Susan Shabangu’s words at the Africa Down Under mining conference Perth, Western Australia, where she said investors had to “moderate” the rates of return they expected to earn on their investments so as to allow for the social expenditures that need to be made (Business Day August 28). The ANC and government are increasingly schizophrenic in their attempts to keep everyone (constituents, allies and investors) happy. In trying to keep everyone happy the ANC and the government seem more likely to achieve generalised dissatisfaction.
Criminal justice system appropriately named
The lead stories in the Weeklies were indicative of a growing anxiety about the criminal justice system. The Sunday Times led with “Magistrates: drunks, thieves and killers” and the other papers all discussed National Police Commissioner General Riah Phiyega’s embarrassment after she announced the appointment of a Major-General Mondli Zuma and then quickly reversed that when she was told that Zuma (whose relationship to the President is unknown to me) was being tried for driving under the influence of alcohol, failing to comply with a traffic officer’s instructions to stop at a roadblock, escaping lawful custody, defeating the ends of justice and refusing to have a blood alcohol sample taken.
This might look like a circus but there is a darker element to the state of the criminal justice system than is not immediately obvious in these comical stories. In the Sunday Independent, journalist Nathi Oliphant writes about the security and justice sector: “President Jacob Zuma has unflinchingly stuck to his guns in promoting ‘his own ’into key positions”. The security apparatuses and the criminal justice system more generally has been profoundly weakened by political interference and the dismaying newspaper headlines about criminality amongst magistrates and senior police generals is just the visible tip of the problem of Thabo Mbeki’s and Jacob Zuma’s serious fiddling in the security and justice clusters and institutions.
Editor flees from Gupta TV
“Visibly terrified and hiding in a Johannesburg hotel room, the former consulting editor at ANN7 has made explosive claims about visits by channel bosses to President Jacob Zuma, where Zuma made editorial recommendations and was ‘given assurances by the Guptas this channel was going to be pro-ANC’” – reads the lead story in City Press.
Nothing, really. ANN7, or GuptaTV as it has been named in much of the South African media, continues to provide comic relief and excruciating embarrassment, in about equal measures. Jacob Zuma’s relationship with the Gupta brothers is probably no laughing matter, but I wouldn’t hold my breath waiting for the criminal justice system to test whether Zuma’s relationship with the Gupta brothers is in anyway similar to his relationship with the Shaik brothers.
He (Jacob Zuma) didn’t threaten me with the red lightsaber or catch me in a honey trap. My natterings, fortunately, are not impactful enough to draw the attentions of the Dark Lord (Darth Vader, dah! – ed) or his stormtroopers.
The compulsion comes from watching, slack-jawed, as Jacob Zuma skips happily across the backs of starving crocodiles - on his way, off towards the welcoming horizon.
Surely the world was an intrinsically hostile place for a black baby boy, born to a single-parent mother (who was also a domestic worker) in the South Africa of 1942? Surely when he received no formal education any chance of success in life would have become vanishingly small – in the estimation of a wandering actuarial statistician, perhaps?
When Jacob Zuma went to prison and then later was repeatedly caught with his hands in all sorts of cookie jars I imagine the hypothetical actuary would have confidently predicted a life of ignominy and poverty.
But instead Jacob Zuma is picking up an honorary Doctorate of Leadership from the Limkokwing University of Creative Technology (who writes the script of the world? … no ordinary mortal would dare make this shit up – ed) and rubbing shoulders with the great and the good and undoubtedly stashing bits of his loot in safe houses in Malaysia.
My second post on this website in mid-2009 titled The Accidental President (catch that here) argued that Zuma’s rise was pure chance and contingency. But when the same random set of things happens over-and-over (Jacob Zuma escapes danger with a sack full of cash) you have to start questioning whether this is purely the shambolic interactions of events, people, history and the world.
Politics is about power (yes, I know, we have heard that somewhere before). Power is agency, the ability to make stuff happen, to make people do your bidding and to make situations turn out in a particular way. Political analysis is the analysis of how (and why) power is exercised.
Which brings me back to Machiavelli.
I read The Prince when I was about 17 and, clearly, I didn’t understand a bleeding word.
I vaguely remember being outraged and confused by the book. Bertrand Russell is widely quoted as having said The Prince is a handbook for gangsters (which is a great line but there is much debate as to whether the great logician himself actually said it).
However, I am now kicking myself that I haven’t been reading and rereading The Prince every year – and in the flush of my transient enthusiasm, I promise myself I will do so from now on until I die … or perhaps I will stop a little before.
(As an aside: I was halfway through the book when the Syrian nerve gas story broke. I was glad to have Machiavelli as a companion to think about how those with agency might cause, or allow, such things to happen and why they might do so.)
So, anyway … Jacob Zuma is the Prince and I doubt he ever needed a Machiavelli to tell him how to be what he is and how to do what he does.
Here is the opening dedication. It’s quite compellingly mysterious to those among us who are a little thin on our Florence-during- the-Renaissance, but it is also a good explanation of the work that follows:
Dedication: To the Magnificent Lorenzo Di Piero De’ Medici
It is customary for such as seek a Prince’s favour, to present themselves before him with those things of theirs which they themselves most value, or in which they perceive him chiefly to delight. Accordingly, we often see horses, armour, cloth of gold, precious stones, and the like costly gifts, offered to Princes as worthy of their greatness. Desiring in like manner to approach your Magnificence with some token of my devotion, I have found among my possessions none that I so much prize and esteem as a knowledge of the actions of great men, acquired in the course of a long experience of modern affairs and a continual study of antiquity. Which knowledge most carefully and patiently pondered over and sifted by me, and now reduced into this little book, I send to your Magnificence. And though I deem the work unworthy of your greatness, yet am I bold enough to hope that your courtesy will dispose you to accept it, considering that I can offer you no better gift than the means of mastering in a very brief time, all that in the course of so many years, and at the cost of so many hardships and dangers, I have learned, and know.
This work I have not adorned or amplified with rounded periods, swelling and high-flown language, or any other of those extrinsic attractions and allurements wherewith many authors are wont to set off and grace their writings; since it is my desire that it should either pass wholly unhonoured, or that the truth of its matter and the importance of its subject should alone recommend it.
Nor would I have it thought presumption that a person of very mean and humble station should venture to discourse and lay down rules concerning the government of Princes. For as those who make maps of countries place themselves low down in the plains to study the character of mountains and elevated lands, and place themselves high up on the mountains to get a better view of the plains, so in like manner to understand the People a man should be a Prince, and to have a clear notion of Princes he should belong to the People.
Let your Magnificence, then, accept this little gift in the spirit in which I offer it; wherein, if you diligently read and study it, you will recognize my extreme desire that you should attain to that eminence which Fortune and your own merits promise you. Should you from the height of your greatness some time turn your eyes to these humble regions, you will become aware how undeservedly I have to endure the keen and unremitting malignity of Fortune.
I know how Niccolò feels. Sometimes these humble regions are just that little too humble. However, I would have been more cautious about calling for the Prince’s attention if I was Machiavelli. If the Prince read the little book, then the Prince would know that Machiavelli had the Prince’s number and that Machiavelli had rewritten the handbook. Which I can’t imagine would have charmed the Prince.
I will attempt a ‘highlights package’ of The Prince and possibly some learned comments (which are unlikely to be as good as you will find in this interesting article and interview). For the keenest among you, there are several places on the internet where The Prince is downloadable for no charge – I am sure the copyright has long expired … or rather I hope so. My copy, which is in electronic form on my laptop, originates at: http://www.feedbooks.com.
Finally, Jacob Zuma still has a few crocodiles to hop on before he reaches safety. I still think that the odds are against him, but I am not an actuarial statistician, wandering or otherwise . I draw comfort purely from the certainty that no-one, ultimately, gets out of this alive.
I am sure no-one has failed to notice the flood of South African high achievers passing through the United Kingdom over the last week or so.
A golfer was there recently, some swimmers, a group of cricketers … and, oh yes, Julius Malema.
Julius told BBC and Sky News that he was in London working hard and meeting investors behind closed doors – to explain the ‘economic freedom campaign’ – and to give nuances on the nationalisation call.
He – charmingly – defended the racial make-up of the South African Olympic team: “we are proud of our athletes”, he said; and he came clean on his support for Kgalema Motlanthe to succeed Jacob Zuma at Mangaung in December.
This is his Mangaung prediction:
“I am coming back to the ANC in December; once we have removed president Jacob Zuma – because we are going to remove him successfully in December … and then I will walk into that conference, shake his hand and proceed to occupy my rightful seat.” (Catch that BBC clip here.)
It is difficult not to admire the audacity … and delight in the anxiety that those who conducted the Polokwane Putsch must be feeling.
But to my mind things swerve away from the comic and towards the dark when I think about this a little more.
It is a series of small things that worry me.
He pitched up at the Chingford Rugby Club and joined a group of Zimbabweans for a braai – and was apparently welcomed with open arms. He dined with Lenox Lewis
and spoke to a group called the Pan African Congress (not our PAC – but it has some similarities) and was covered in a spooky online journal called The Zimdiaspora under the headline “We are inspired by Mugabe – Malema” as follows:
Turning to … Zimbabwe and its politics of land and mineral wealth redistribution, Malema had glowing praise for the president of Zimbabwe Robert Gabriel Mugabe for confiscating land from the whites and giving it to blacks. He stated they found inspiration from the actions of Mugabe as an African leader and were grateful to see him standing up against whites and their economic enslavement of blacks.
Glowing praise for president of Zimbabwe Robert Gabriel Mugabe? Sounds like a writer constrained by the diktats of belonging to a government department, something like, say … hmm … the Zimbabwe Central Intelligence Organisation?
What would covert aspects of the Zimbabwean state get from promoting the increasingly virulently, anti-Zuma Malema in London ? (I am not unaware that there is a wild leap in that last sentence … but still am going to just take it and move along.)
It’s a tenuous link but my nose is twitching: Zanu-PF’s preparation to hold off the MDC challenge is multifaceted and very sophisticated. A significant part of the pressure on Zanu-PF to meet its obligations under the Global Political Agreement and move towards democratic elections is coming from the SADC facilitation under the leadership of Jacob Zuma.
The next Zimbabwean election is going to be won or lost on the precise wording of the laws and constitution that set the conditions for elections – including how the security apparatuses will be controlled.
That wording is being finalised as I write this …. as Julius Malema takes his campaign against Zuma to the world stage, during the Olympics … no expenses spared.
I realise I have to be cautious; it is not as if the Malema ANC Youth League faction is not brilliant at self-promotion and has an almost preternatural ability to play into the current media obsessions.
Malema was quoted in the Zimbabwe Sunday Mail in June saying that Jacob Zuma was not the right person to be the SADC mediator in Zimbabwe because ‘he hates Robert Mugabe.’
I think that the possibility that Malema is acting as an asset for a (partially) hostile foreign power will play against him in the ANC’s internecine strife … or at least his enemies will try and make that case to his detriment. (Note added on 03/08/2012: I am not suggesting that there is necessarily any intention on Malema’s part … the point is rather that in effect he might be fulfilling Bob’s/Zanu-PF’s agenda as opposed to ‘the national interest’ as embodied – supposedly – by the South African president … or even more narrowly that the possibility of this being true will probably been used against Malema by the incumbents he is campaigning against.)
We must guard against paranoia and the instinct to see everything we can’t quite explain as evidence of the hidden hand of spies, aliens or the Elders of Zion – but equally we would have to be very naive to believe that the hundreds of billions of real dollars spent each years on espionage and dirty tricks just disappears into the ether, leaving no imprint on the world.
I am clicking “Publish” in a rush … I suspect I will come to regret this later.
The popular mobilisations in Tunisia, Egypt and a swath of authoritarian North African and Middle Eastern states are interesting and important for more reasons than can be named, let alone examined, here.
But the aspects that have fascinated me are the over excited “I told you so!” claims of pundits, politicians and much of the Twitterati.
And not just the assertion that they had this right all along, but that they somehow understand the clattering Nasserite dominoes better than anyone and would just like to point out that it’s coming to get you. Yes, you (insert name of political opponent here), the revolution is coming for you.
There are literally hundreds of “takes on the crisis” I would like to poke fun at and take to task over this absurd conceit, but there is one I will look at (only slightly) more seriously.
Blunt Blade’s Bollocks
Blade Nzimande takes George Galloway’s excellent communist tirade in his column in the Morning Star (read it, it is also bollocks and brutal and crass but has enough thought and truth in it to warrant a second look) and turns it into the obscure and rambling “Tunisia and Egypt: The deepening crisis of US imperialism and neo-liberalism“.
Where are the South African communists of yore who could always be relied upon to lift the veil, expose the skull beneath the skin and see the ape within the man? Oh yes, they are all dead or helping run the Department of Transport or become bloated and insecure plutocrats … hmm, is that everyone?
Blade has it that Tunisia and Egypt are manifestations of a series of crises in capitalism “and its contemporary neo-liberal ideology”.
In short (in as far as I can understand Nzimande) the USA as the global representative of the corporate/capitalist machine has fostered dictatorships in the Arab world because they have agreed to leave the USA’s good friend Israel in peace.
So far so good, but then things start to unravel. Political upheaval in these Arab and North African countries sets back the USA’s task to reproduce the conditions of capitalist accumulation – through an amazingly complex web of dialectical causality. Thusly, the selling of upsized McDonald’s meals to the American guest workers rebuilding (if they work for Haliburton) and de/restabilising (if they work for Blackwater USA) any countries the US has recently invaded is threatened, because democratic governments are more likely to take a hard line on Israel … eh … oh goodness, there goes the thread.
You cannot successfully characterise Tunisia and Egypt as “crises of capitalism” unless you take an amazingly complex and interlinked world and reduce it to a childish little model that even the crudest Marxists would reject as ‘reductive’ and ‘over-deterministic’.
If the term “capitalism” means the totality of international relations between states, global trade, the activities of local and international corporations and the shaping effects of culture, history and technology, then it is less than useless to characterise Tunisia and Egypt as “crises of capitalism”.
If the term “capitalism” refers (as I suspect it does, when used by Nzimande) to the secret set of rules in a secret club of greedy Americans who seek to control the world to protect and deepen their wealth, then I am sorry, but you can’t really be expected to be engaged with.
There are powerful and organised interests at play in North Africa and the Middle East and only a fool would not look to the USA for the sources of some of those forces. But there is also chaotic human activity and chance and rapidly unwinding and reforming complex systems that are part of what is happening and the blunt scalpel of Blade Nzimande’s theory takes us nowhere.
I would still recommend Galloway’s piece (as more insightful and the source of any interesting thoughts in Nzimande’s words on the subject) because part of what is happening in the Middle-East and North Africa is the unravelling of another mystifying US strategy to define, protect and advance its “national interests”.
What I wish the communists would give more attention to is not the greedy and rapacious aspects of US imperialism, but rather how it is often profoundly misconceived and poorly executed.
In my view human society should not be conceived of as “shaped” by particular forces or of being set on a certain “trajectory”. The totality of human existence is not an object (plastic and/or in motion). The totality of human existence – including the bits of it in Tunisia and Egypt – must be conceived of as a system so complex that making predictive statements is not hugely useful. Also, attempting to reduce the complexity to make it more understandable is a worthwhile endeavour only if undertaken with extreme caution and care. Cooking it up as proof that your side is winning adds no real value.
In as far as the statement: “what is happening in the Arab world is a failure of US imperialism” is true, I suspect the reason is that successive US administrations have misconceived both the nature of history (as has Nzimande) and the nature of their own interests – not an error Nzimande appears obviously to have made.
Jeremy Cronin’s criticism of Cosatu’s recent hosting of a “Civil Society Conference” is impossible to understand without understanding his – and the SACP’s – assumptions about the world and South Africa in November 2010.
Cronin’s premise is that “an enemy” is attempting to make the public debate about the future of South Africa focus on minor issues where “the enemy” believes it can score a victory over the ‘progressive forces’ (of which Cronin assumes he and his organisation and his government are a part).
Cronin and the SACP accept some version of the following as a true and accurate reflection of reality (although Cronin himself would probably not phrase things so crudely, mechanistically and deterministically, it amounts to the same story):
Global capitalism and its local allies are securing their ability to continue to accumulate wealth
The bad guys in Cronin’s universe are a complicated (and brilliantly disguised) set of global business interests linked to and by the interests of powerful Western countries, especially the USA and the UK. What this enemy wants and needs is a world in which it can make loads and loads of money – especially by paying the lowest possible wages and taking resources and wealth from the Third World and packing these tightly around themselves in the playgrounds and fortresses of the First World.
Any change in any society that puts checks and balances on its ability to make money must be opposed – destroyed even before it takes root. Thus, thoroughgoing transformation of South Africa would strengthen the hand of the poor and dispossessed relative the the global capitalist/imperialist elite and must, therefore, be stopped.
Global capital/imperialism are constrained from arguing directly in favour of the oppressive political systems and unequal economic arrangements required to support their ability to extract wealth.
Instead they weaken the existing popular governments in the Third World, encourage the spread of corruption and (crucially for our purposes here) divert real debates about change that would benefit the poor and marginalised into light-weight debates about the individual rights and freedoms of the small group of citizens who have moved on from being concerned about the basic conditions of survival. And they do this by hoodwinking essentially good people and organisations who have a weak understanding of the world.
If this is the enemy, who’s on Cronin’s side?
In this version of the universe the African National Congress, the South African Communist Party and the Congress of South African Trade Unions are the structural expressions of ordinary people’s struggles to be free and fed.
Because Cronin is constructing this version of the world wearing his South African Communist Party beret, we must understand that Cronin assumes himself and his organisation to be part of a long-term plan that will overthrow the global yoke of capitalism and imperialism and construct a society based on human imperatives other than profit.
So what’s wrong with that?
Communists like Jeremy Cronin are not misguided in fearing and distrusting global corporations of private enterprise. Left to their own devices humans will extract as much from each other – or from groups other than the group to which they feel they belong – as is possible.
They will take until they are stopped. This is reflected in every business cycle and it is reflected in every attempt to re-regulate markets after bubbles (always caused by a feeding frenzy) have burst.
Additionally big global corporations will spend billions of dollars sucking up to politicians especially in the most powerful nations on earth – or more directly manipulating the political process.
However, there are two significant things wrong with Jeremy Cronin’s (and the SACP’s) version of the world:
Firstly, the communists’ (and all tight party organisations and religious groups’) vision is obscured by their need to see the world as completely structured by two big gangs that are at war – the white hats and the black hats, the good and the evil, the oppressor and the victims.
There are more complex political choices to make than just to pick a side and back it to the hilt and defend its doctrines against all comers.
Global markets and trade and international relations are structured by hugely complex forces, not the least of which are government and supra-governmental organisations attempting to regulate various forms of behaviour. i.e democratic political processes attempting to subdue, moderate and direct the functioning of human fear and greed.
“Picking sides” in such a complex world is no easy matter.
Secondly, the communists fail to see that they and their organisations are subject to the same raging impulses of greed and terror that structure global capitalism – in fact they are structured into it, (only subject to no shareholder and less accountable and regulated than your standard global business).
The conference that Cronin criticises was precisely an attempt to discuss the best ways to regulate those impulses because they appear to have become the dominant impulses within government and the ruling party.
It is fine for Cronin to dispute this, but it is not fine for him to argue that his allies accept the functioning of criminal greed in his government and organisation because his government and organisation is struggling to combat these matters at a higher level.
We do not live in a simple world. It is my belief that the enemy is not out there in his serried ranks on the plains, he is in here with us, in our homes, in our families and in our beds. The enemy is right inside us, in our own hearts and in our own heads.
Until we realise this our best politicians will continue this Quixotic tilting at windmills.
I don’t really have time for this, but the moment seems to insist. So:
I awoke this morning to a world framed as if by an immortal hand or eye.
The bludgeoning to death of Eugène Terre’Blanche together with the Zimbabwe public display by Julius Malema feels like a tableau arranged by a naughty god with idle hands.
Here’s the shape of it:
- Malema, on a Zanu-PF platform, admires the seizure of white owned farmland and sings “kill the boer” – catch his words here. This is on a Zanu-PF platform. That party spent much of the 1980′s ransacking the liberation pantry. Just as the last few goodies were being looted and eaten by the engorged Zanu-PF fat cats popular discontent started to escalate and began focusing itself on the ruling party. With no wealth left to buy off the masses, the Zanu-PF cronies turned to what was left of the productive economy: the commercial farming sector. The land was largely white owned. Zanu-PF orchestrated the forceful invasion and seizure of the farms and commercial agriculture and foreign earnings collapsed.
- Terre’Blanche, who infamously, and almost on a whim, beat a black man into permanent brain damage, is an icon of white supremacy – much diminished now and something of a joke; but undoubtedly sanctified by the manner of his death (it appears he was killed by young black labourers over a dispute about money). Already there is noise of a white backlash – although it is too early to say whether this should be taken seriously or not.
I don’t really need to say anything more. This story tells itself and it has its own energy … except perhaps it should be mentioned that Jacob Zuma has just attempted to mediate between the MDC and Zanu-PF – the history of Zanu-PF’s violent attempts to crush the MDC refers. Julius Malema is the President of the ANC Youth League – and I suspect someone more important and threatening than he first appears, as I argue here. Jacob Zuma is the president of the ANC and of the country and the SADC negotiator between the MDC and Zanu-PF … and Julius Malema refused to see the MDC while he was in Zimbabwe.
It is starting to be whispered that there is a “hidden hand” in the service delivery protests*.
The problem (of the protests) is serious and threatening and government is starting to worry about high-profile violence during the World Cup.
These protest share a strong crossover constituency and architecture with the xenophobic violence that occurred May 2008. At that time, Thabo Mbeki’s spooks argued that a hidden hand was at work – in one bizarre version Zimbabwe’s Central Intelligence Organisation was fingered as triggering the violence to punish the Mbeki government for some impenetrably Byzantine set of motivations.
This time around the speculation is that the spreading protests have something to do with Alliance tensions i.e. the conflict (endlessly discussed in these columns) is fueling service delivery protests – I suppose that would mean either the ANCYL or Cosatu/SACP using popular discontent against the sitting council dominated by either the leftists of the nationalists respectively.
To argue that Alliance tensions is the (or even a) main driver is a bit of a stretch. The protesters themselves foreground slow delivery of housing and the whole gamut of services (toilets, sewerage, water, refuse , telecommunications, roads) but also have a sharp focus on corruption, maladministration, nepotism – and therefore, indirectly, on cadre deployment.
The protests appear to be coordinated. They have similar beginnings: “elders” – or the moral equivalent - meet in a town hall to discuss grievances; they decide to march to the municipal offices in the town centre; they carry placards about Eskom, housing, corrupt council officials; on the way they are joined by youth and the unemployed, and the march swells; somewhere near the edge of the town centre police stop the now more threatening and chaotic march; stones are thrown and rubber bullets fired; the protest breaks into smaller groups and spreads; councilors and council property are targeted and running skirmishes with the police occur over a few days; the ANC sends a SWAT team to the area and this team either moves against the council or stands firm against “anarchic” and “violent” protesters. At any point during this process the attention of the mob can turn to the foreigners – Zimbabweans, Malawians, Somalians , Mozambicans, Angolans, Nigerians and those from the DRC.
It has become something of a legend and commonly accepted “fact” by foreigners living in South African townships that post the World Cup and in the lead-up to the local government elections in 2011 the xenophobic violence will erupt on a scale beyond anything that has happened in the past.
The Davies-J Curve – the real hidden hand behind the violence
One of the reasons the government and the intelligence agencies are suspicious about the violence is that it occurs always in municipalities where there has been a degree of successful service delivery. The violence does not seem to happen in areas that are absolutely poor and unserved and have remained so for some time.
Interestingly this is precisely the situation predicted by US sociologist working in the late 1950′s, James C Davies. His theory is that rising expectations is related to the possibility of armed conflict but only when rising expectations – brought about by, for example, some degree of service delivery – meets a downturn. His theory became known as the Davies J-curve.
What happens is that when material and other conditions are improving, expectations rise faster than the individuals own situation. The system seems to be able to cope with this, except when there is a downturn of some kind – this is the sharply curved “Reality” line in the diagramme above.
This predictive framework (usefully discussed by the Centre for Security Studies here) almost perfectly mirrors what has happened in townships and poor municipalities since 1994. The violence seems to spike in early winter and it seems to be concentrated in areas that have had by-elections. In general it seems to be at its worst after national local government elections.
We must assume that in the lead up to such elections the ruling party and its councils push service delivery and the promise of service delivery. After the elections delivery collapses.
Thus the expectations are on an ascending path as the reality of delivery veers sharply downwards.
Violence results and often the weakest and poorest are both the victims and perpetrators of that violence.
* Orange Farm, Sedibeng, Siyathemba township in Balfour, Leandra, Lesilie, Oogies, Accornhoek near Bushbuckridge, Chochocho near White River in Mpumalanga, Protea-Glen, Dobsonville-Gardens in Soweto, Ennerdale in Fine Town, Reiger Park in the East Rand, Parys, Diepsloot, Attridgeville and Mamelodi – all names of service delivery protest hotspots culled from recent press reports. While I cannot place all these towns on a map (and am not even sure that some are not colloquial names for the same place) it seems clear that there is an unfolding crisis of governance in many of South Africa’s 283 municipalities , especially in the poorest, semi-rural communities.
Could IBM, Fujitsu, Ford, General Motors , Rheinmetall and Daimler be guilty of “knowing participation in and/or aiding and abetting of the crimes of apartheid; extrajudicial killing; torture; prolonged unlawful detention; and cruel, inhuman and degrading treatment”?
Should they be tried for this crime in a US federal court?
If they are found guilty should they jointly pay billions of dollars to a group of black South Africans who have brought the class action suit under the peculiarly named Alien Tort Claims Act in the New York federal court?
Here is a copy of the ‘Second Amended Complaint’ including a list of plaintiffs and defendants that is available on the Khulumani Support Group (an Apartheid victims support organisation) website. It spells out all the ways in which the plaintiffs believe each company or category of company became guilty of a crime by bolstering, arming or funding the Apartheid regime. Note that since this time the list of defendants has been narrowed to those mentioned in the first paragraph of this post.
An interesting aspect of this fascinating drama is that Thabo Mbeki’s government openly opposed this case on the grounds:
- it threatened South Africa’s sovereignty to try such a matter in a US court, especially because the much praised domestic negotiation had agreed that the Truth and Reconciliation Commission was the binding forum and chosen process;
- it would discourage foreign investment.
Jacob Zuma, on the other hand, has removed government’s objections to the process and last year had Justice Minister Jeff Radebe write to the American court and tell it the South African government believed the US court to be “the appropriate” place in which to resolve the matter.
The Zuma regime was surprisingly joined by the Obama regime in endorsing the US court as the appropriate place for the motion to proceed. The amicus curiae brief the US government sent to the court is a useful summary of the facts of an extremely complicated matter and can be read in full here - I found the link on Simon Barber’s excellent “American Notes” blog.
The go-ahead for the US court to hear the matter from both the US and the South African government is based primarily on the fact that while amnesty would have been the result of full participation in the TRC process, the defendants – and, in fact, most businesses operating in Apartheid South Africa – never participated in the process. Thus there was relatively minimal disclosure (at the TRC anyway) of business’ dealings with the Apartheid regime and hence no amnesty.
The founding myth of the Rainbow Nation is that we have dealt with the past and go into the future with knowledge and forgiveness. The case in the US federal court challenges this assumption and asks some extremely difficult questions that have consequences way beyond South Africa.
Here are some of the questions as I see them:
- The TRC process failed in a number of ways; will cases like this one help redress the failure, or will they undo the few successes – with regard to reconciliation and forgiveness – the TRC did have?
- The TRC process created a collective victim group and a collective perpetrator group in a way that allowed single people (including legal persons) to avoid carrying the can or receiving any significant compensation for Apartheid human rights abuses. Won’t legal processes with more clearly defined defendants and plaintiffs redress this?
- Won’t raking the muck of the past continue to cause conflict and division, especially between black and white South Africans in the present and the future?
- How does a publicly owned company that has operations across the globe assess risk associated with politics in the countries in which it operates – especially when oppressive governments are its direct clients and customers? Recent examples might include Nestle in Zimbabwe and Google in China.
- If the domestic government is not a customer, it still sets a regulatory environment that might make the company guilty of an offence if it complies with the law. Yes?
- Is disengagement from a particular country dominated by an oppressive government always the right approach?
- What does this say for domestic businesses?
- Should aspirant black business men and women have refused to accumulate capital in Apartheid South Africa – except as criminals?
The list of questions could probably go on ad-infinitum, but that will do as a start.
One thing you may have noticed I left off was the Mbeki government’s first objection based on the fact that such cases might deter foreign investment. Such cases might place more onerous due diligence requirements on any company that operates across borders and in countries where governments might become guilty of human rights abuses. No company is specifically going to punish an ANC led, democratic South Africa if a US court finds it culpable of bolstering the previous NP led Apartheid South Africa. It’s not logical and it is not in the company’s interests.
That was going to be my headline for the story I was going to write about the appointment of Mo Shaik to head the secret service.
I decided not to write about it. I simply can’t.
I was going to point out that the South African Secret Service is responsible for all non-military foreign intelligence and counter-intelligence functions. I was going to say that in the post-9/11 globalized world that makes SASS scary powerful.
I was going to gently hint to possible readers about Mo’s recent history of scheming mediocrity, of his Stalinist grandiosity and his few weeks training with the Stasi in the GDR in the 80′s that supposedly qualifies him for the job – but I realised the adjectives were over-the-top - and detracted from the general story.
I wanted to remind readers that Mo brought his friend Cyril Beeka to Polokwane as his bodyguard. I was going to leave that out there like a mysterious depth charge …
Then there was Trevor Manuel squashing Mo at Polokwane, when Mo said there may be a place in Zuma’s government for Trevor, if only he could break his habits of thought.
It would have been useful to put in the quote from Trevor when he snapped back:
Your conduct is certainly not something in the tradition of the ANC. It is obvious you have no intention of becoming part of any elected collective within the organisation, yet you arrogate to yourself the role of determinant
Hmm, I was going to say that Trevor underestimated Mo …. but maybe he overestimated Zuma. I was going to ask you to consider what Trevor Manuel must be feeling now.
It would have been interesting to talk about the Mandla Judson Kuzwayo Unit of the ANC underground and Operation Bible and Nkobi Holdings – and Mo’s central role in the Heffer Commission in 2003. But what could I say about these things that would stand up in court?
It would have been important to describe Mo Shaik’s role in the struggle (by the now ruling ANC faction) to prevent Jacob Zuma facing corruption charges. Or his more general role in backing Zuma’s rise to the presidency.
And I would have liked to remind us of the damage done to our politics by a partisan security establishment – and by loyalist appointments.
Then I would have had to go into Mo Shaik’s tight relationship with brother’s Chippy and Shabir – I don’t really know much about Yunus.
It almost would not have been necessary to mention that Chippy headed SANDF defence procurements – the heart of the arms-deal scandal.
And of course the “dying” convicted fraudster Shabir needs no introduction – not in his role in bribing Jacob Zuma and not in his preferential access to arms deal contracts through his relationship with Chippy and Zuma.
But then I realised I am just too discomforted to talk about this without drowning the criticism in hyperbole.
Would I be able to avoid words and phrases like “bombastic”, “mediocre”, “quasi-criminal”, “political bully” when talking about this and similar appointments?
Who cares if I think this is the first serious public sign of a deep and threatening malaise in the ANC government?
So I decided I wouldn’t write anything about it until I had calmed down and taken a deep breath.
So I didn’t.
* See the incomparable Zapiro’s “Pirates of Polkwane”
(PS – added on October 5: the DA comment published on Politicsweb is unusually good. See it here.)
Let’s see how that plays…
The Voice of America says US Secretary of State, Hilary Clinton, will, in her meeting with ”senior South African officials” in Pretoria today:
push South Africa to do more to counter embattled President Robert Mugabe’s negative effect on the Zimbabwe reform process.
South Africa under Thabo Mbeki would have bridled and gritted its teeth at the implied imperialist bullying. Word might have gone out that the USA was seeking regime change in South Africa through a delicate and implacable process of setting Thabo Mbeki up for failure, by isolating the South Africans from the African fraternity, by undermining sovereignty …. oh, whatever! It was always impossible to understand Mbeki’s coded warnings about the shenanigans of the imperialists.
The point is, I suppose, Thabo Mbeki’s administration was deeply suspicious of the USA, the UK and of European intentions and actions in Southern Africa. The Movement for Democratic Change in Zimbabwe was constantly hinted to be a front for various combinations of imperialists interests, as were the Kroll trained Scorpions of the National Prosecuting Authority.
It would be naive to imagine that the CIA and MI5 do not have significant interests and intentions in Southern Africa – and some capacity to work towards their objectives. The subject of a later post will be the rise of intelligence services in the post 9/11 world in which the cyberuniverse contains endless information lodes that are both deposited and mined by these intelligence agencies.
But seriously, are we to think of whatever Hilary Clinton says today about South Africa and Zimbabwe and the role of Mad Bob and the MDC as part of a grand imperialist plan for our region?
The first answer is “no” because the USA and their intelligence services have demonstrated that 1.) they have bigger problems to worry about and Southern Africa without oil and without Muslim fundamentalists does not warrant that kind of attention; 2.) their intelligence capacity and ability to manipulate world affairs has been shown to be less formidable than one might have expected – as revealed by that country’s endless bungling in the Middle-East.
The second answer is “yes’ (to the question: does the USA have a plan for this region?). As the world’s policeman the USA is obliged to have an opinion and a strategy about everything. Zimbabwe, while not very high on the list of concerns and objectives of US foreign policy does touch on several strands of US concern in the sub-continent. South Africa represents a major chunk of Africa’s GDP, Angola, with significant US oil interests, has the potential to be drawn into Zimbabwean affairs, Zimbabwe itself sits on the greatest unexploited Platinum reserves and China has a significant and growing interest in, and relationship with, the region. US foreign policy must ultimately focus on the long term and the long term is all about the containment of China.
But at another level it can be unproductive to comb everything that Clinton says today or fails to say for evidence of, and guides to, the deep strategic thinking of the Great Dragon. In diplomacy and the world of the spook the search for hidden meaning and intentions can become self-fulfilling. Clinton is settling into her office and Obama is still carving his role in the world and in Africa. These are not simple or obvious matters and there is undoubtedly a degree of exploration that still needs to take place before “grand strategies” can be unfurled.
I await further reports of her meeting with interest.