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	<title>Nic Borain</title>
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		<title>Throwing excrement in Cape Town: the DA has reason to feel miffed, but the situation is best explained by the Davies J-curve</title>
		<link>http://nicborain.wordpress.com/2013/06/18/throwing-excrement-in-cape-town-the-da-has-reason-to-feel-miffed-but-the-situation-is-best-explained-by-the-davies-j-curve/</link>
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		<pubDate>Tue, 18 Jun 2013 09:11:34 +0000</pubDate>
		<dc:creator>nicborain</dc:creator>
				<category><![CDATA[African National Congress]]></category>
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		<category><![CDATA[Democratic Alliance]]></category>
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		<category><![CDATA[dirty tricks]]></category>
		<category><![CDATA[Helen Zille]]></category>
		<category><![CDATA[Interesting stuff to read]]></category>
		<category><![CDATA[public infrastructure]]></category>

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		<description><![CDATA[It is difficult to avoid an abiding suspicion that the protesters flinging faeces in the general direction of the DA led Cape Town and Western Cape provincial administrations are not always, as they claim, signed up members of the downtrodden masses. Among the reasons I am suspicious is a good friend told me that when [&#8230;]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=nicborain.wordpress.com&#038;blog=6434493&#038;post=2579&#038;subd=nicborain&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
				<content:encoded><![CDATA[<p>It is difficult to avoid an abiding suspicion that the protesters flinging faeces in the general direction of the DA led Cape Town and Western Cape provincial administrations are not always, as they claim, signed up members of the downtrodden masses.</p>
<p>Among the reasons I am suspicious is a good friend told me that when the recent group of 176 protesters carrying bags of shit &#8211; let&#8217;s call it what it is  -  were offloaded at Esplanade train station in Woodstock she couldn&#8217;t help but notice the pitter-patter of <a href="http://www.spitz.co.za/carvela">Carvella</a> clad feet,  the swish of Gucci handbags (in the hands not carrying the  shit &#8230;. hmm, whatever) and the sleekly clad and buxom bodies diagnostic of a certain species of yuppie political activist.</p>
<p class="arcticle_text">So, yes &#8230; it is difficult to separate the reality from the <a href="http://en.wikipedia.org/wiki/Hyperreality">hyperreality </a>, so to speak, when it comes to the <a href="http://en.wikipedia.org/wiki/Semiotics">semeiotics </a>of the ANC&#8217;s clash with the DA, especially in the Western Cape.</p>
<p class="arcticle_text">A more interesting take, one that doesn&#8217;t bother with the relatively minor question of political parties&#8217; attempts to manipulate or ride the underlying grievances of the poorest and most marginalised South Africans, is an excellent article by Gillian Schutte on The South African Civil Society Information Service website (SACSIS describes it&#8217;s function as: &#8220;<span id="banner-title">A nonprofit news agency promoting social justice. Seeking answers to the question: How do we make democracy work for the poor?&#8221;)</span></p>
<p class="arcticle_text">Schutte writes:</p>
<blockquote>
<p class="arcticle_text">Though ‘shitting’ has to be one of the most taboo subjects around, it is a matter that we all deal with, on average once or twice a day. Defecation, and the rules governing it, undoubtedly comprises the complete gamut of human behaviour yet open discussion around it is deemed distasteful and disgusting. Indeed this is exactly how it played out when protesters dumped the contents of portable toilets on the steps of the Western Cape legislature in a backlash against the sanitation policy of Helen Zille’s administration. This policy offers communal portable flush toilets to shack dwellers at no cost &#8212; a system, which they say, is inadequate and often ends up filthy and untended.</p>
</blockquote>
<p class="arcticle_text">Catch Schutte&#8217;s article <a href="http://sacsis.org.za/site/article/1691">here</a> and I would recommend that you subscribe to the free SACSIS.org.za email service.</p>
<p class="arcticle_text">That being said, spare a thought for the put-upon DA premier Helen Zille and Cape Town mayor Patricia De Lille.</p>
<p class="arcticle_text">I stumbled across a thorough report from the Presidency (Department of Performance, Monitoring and Evaluation) into the state of sanitation services across the country. The report (download it <a href="http://www.info.gov.za/view/DownloadFileAction?id=178724">here</a>) makes a detailed comparison between provinces. I laboriously screen-snipped the graphs for provincial performances in informal housing areas and put them together in a graphic (which is stretch for me, so I hope someone finds this useful).</p>
<p class="arcticle_text">This is what the scoreboard looks like:</p>
<p class="arcticle_text"><a href="http://nicborain.files.wordpress.com/2013/06/poolitics2.jpg"><img class="alignleft size-large wp-image-2582" alt="poolitics2" src="http://nicborain.files.wordpress.com/2013/06/poolitics2.jpg?w=490&#038;h=367" width="490" height="367" /></a></p>
<p class="arcticle_text">(When you look at relative performance in formal areas the Western Cape  also performs well, bested only by Gauteng &#8211; although, I suppose, it is not useful to run this like it was a competition. The ANC has faced rolling service delivery protests across the country for many years and the tit-for-tat between the DA and the ANC with regard to the toilet issue has almost nothing to do with &#8216;the facts&#8217; or &#8216;the truth&#8217;.)</p>
<p class="arcticle_text">However the graphic does confirm that the DA has outperformed in relation to a crucial area of service delivery to informal areas &#8211; the very areas from which it is getting flack in Cape Town. And that raises an interesting point about the stability of societies as they move away from authoritarian rule and high levels of absolute and relative poverty.</p>
<p class="arcticle_text">There is a peculiar fact, confirmed across the word and over a long period of time, that improved service delivery itself is a good predictor of protest and disaffection.</p>
<p class="arcticle_text">I have an instinctive feeling of why this might be true. The uniformly downtrodden, those with no hope and no expectation of relief from &#8216;the powers that be&#8217; are less likely to be moved to demand more.</p>
<p class="arcticle_text">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 are related to the possibility revolt but only when rising expectations – brought about by, for example, some degree of service delivery – meets an unexpected slowing in that delivery.  His theory became known as the Davies J-curve.</p>
<p class="arcticle_text">Here is the point expressed graphically:</p>
<p><a href="http://nicborain.files.wordpress.com/2011/03/daviesj.jpg"><img class="alignleft size-large wp-image-1590" alt="daviesJ" src="http://nicborain.files.wordpress.com/2011/03/daviesj.jpg?w=490&#038;h=354" width="490" height="354" /></a></p>
<p>So the theory is that as a middle-class emerges from previously marginalised groups, as education and social infrastructure improves, the expectation of improvement begins to outstrip the maximum rate, or the sustainable rate, of real improvement. The first thing that happens is that resistance and dissatisfaction intensifies.</p>
<p>This is one of the many reasons transitions like ours can be scary and unstable. The old ways of doing things and the old, essentially stable, structure is abandoned before what is replacing it has moved in a filled the vacuum and the available space.</p>
<p>We are in the moment when &#8216;the old&#8217; is gone but &#8216;the new is not yet born&#8217;.</p>
<br />Filed under: <a href='http://nicborain.wordpress.com/category/african-national-congress/'>African National Congress</a>, <a href='http://nicborain.wordpress.com/category/ancyl/'>ANCYL</a>, <a href='http://nicborain.wordpress.com/category/democratic-alliance/'>Democratic Alliance</a>, <a href='http://nicborain.wordpress.com/category/development/'>Development</a>, <a href='http://nicborain.wordpress.com/category/dirty-tricks/'>dirty tricks</a>, <a href='http://nicborain.wordpress.com/category/helen-zille/'>Helen Zille</a>, <a href='http://nicborain.wordpress.com/category/interesting-stuff-to-read/'>Interesting stuff to read</a>, <a href='http://nicborain.wordpress.com/category/public-infrastructure/'>public infrastructure</a>  <a rel="nofollow" href="http://feeds.wordpress.com/1.0/gocomments/nicborain.wordpress.com/2579/"><img alt="" border="0" src="http://feeds.wordpress.com/1.0/comments/nicborain.wordpress.com/2579/" /></a> <img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=nicborain.wordpress.com&#038;blog=6434493&#038;post=2579&#038;subd=nicborain&#038;ref=&#038;feed=1" width="1" height="1" />]]></content:encoded>
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		<title>The politics in our economics, NPA in decline, Vavi survives, Pule lies, Dali hearts Bob, Num bends the truth and more</title>
		<link>http://nicborain.wordpress.com/2013/06/05/the-politics-in-our-economics-npa-in-decline-vavi-survives-pule-lies-dali-hearts-bob-num-bends-the-truth-and-more/</link>
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		<pubDate>Wed, 05 Jun 2013 09:43:15 +0000</pubDate>
		<dc:creator>nicborain</dc:creator>
				<category><![CDATA[African National Congress]]></category>
		<category><![CDATA[Alliance Politics]]></category>
		<category><![CDATA[Cosatu]]></category>
		<category><![CDATA[Cyril Ramaphosa]]></category>
		<category><![CDATA[dirty tricks]]></category>
		<category><![CDATA[financial markets]]></category>
		<category><![CDATA[industrial relations]]></category>
		<category><![CDATA[Jacob Zuma]]></category>
		<category><![CDATA[Mangaung]]></category>
		<category><![CDATA[Mining]]></category>
		<category><![CDATA[patronage networks]]></category>
		<category><![CDATA[Vavi]]></category>
		<category><![CDATA[ZAR]]></category>
		<category><![CDATA[Zimbabwe]]></category>
		<category><![CDATA[business]]></category>
		<category><![CDATA[politics]]></category>

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		<description><![CDATA[Herewith an extract from my weekly news summary and analysis. The big question of the week was the degree to which Zuma&#8217;s Thursday morning briefing helped or hindered our economic decline. I know I cringed as he was speaking, especially during the twinkly admonishment at the end urging journalists present to report favourably on South [&#8230;]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=nicborain.wordpress.com&#038;blog=6434493&#038;post=2572&#038;subd=nicborain&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
				<content:encoded><![CDATA[<p>Herewith an extract from my weekly news summary and analysis.</p>
<p>The big question of the week was the degree to which Zuma&#8217;s Thursday morning briefing helped or hindered our economic decline.</p>
<p>I know I cringed as he was speaking, especially during the twinkly admonishment at the end urging journalists present to report favourably on South Africa. I wanted to shout at the TV and call out to my president (and he is <em>my</em> president, however much I might wish it otherwise): &#8220;Don&#8217;t be cute! This lot is ready to crucify you &#8211; and us &#8211; don&#8217;t you get it!?&#8221;</p>
<p>Well, I didn&#8217;t say anything &#8230; I have not yet sunk to shouting at the TV, but I do find myself switching channels to avoid those excruciatingly embarrassing moments our politicians seem to bless us with on an ever more regular basis. I am embarrassed at my embarrassment &#8211; it is such a childish response, but I find it gets worse not better as I get older.</p>
<p>The fact is I think Zuma&#8217;s attempt to talk up mining wage negotiations was the right thing to do. The problem, as others have pointed out, is his credibility is so shot that almost anything he says is dismissed by financial markets and the mass media out of hand.</p>
<p>So herewith, from early Monday morning, my analysis of the previous weeks news:</p>
<div class="WordSection1">
<p class="MsoNormal" style="margin-bottom:6pt;"><b><span lang="EN-GB" style="color:#339966;">Rand and GDP growth down – the drivers are complicated, but at least some of this is about politics</span></b></p>
<p class="MsoNormal" style="margin-bottom:6pt;">Last week the Rand hovered around R10 to the dollar as Stats SA released figures that showed South African GDP had grown an unexpectedly low 0.9 % in the first quarter of 2013 (seasonally adjusted, annualised). Then on Thursday Jacob Zuma held a surprise press conference during which he announced that Deputy President Kgalema Motlanthe, Finance Minister Pravin Gordhan, Mineral Resources Minister Susan Shabangu and Labour Minister Mildred Oliphant would hold talks with parties involved in the coming bargaining season in the mining sector – in the interests of reaching settlements with a minimum of production losses.</p>
</div>
<p class="MsoNormal" style="margin-bottom:6pt;">During the course of the next forty hours the Rand continued its significant decline and the media, not unexpectedly, busied itself with blaming Zuma’s performance for the country’s economic woes. “Zuma sinks Rand” – The Star, “Rand takes a dive after Zuma pep talk” – Mail &amp; Guardian, “Rand talking cure off to a rocky start” – City Press, “South Africa&#8217;s Zuma takes a drubbing for run on rand” &#8211; Reuters and “Zuma not only reason for rand fall” &#8211;  together these headlines probably give an adequate summary of the media’s take on the week’s economic turmoil.</p>
<p class="MsoNormal" style="margin-bottom:6pt;"><b><i>So what?</i></b><i></i></p>
<p class="MsoNormal" style="margin-bottom:6pt;"><i>Drivers of the price of the ZAR are complex and varied as Business Report (the Sunday Independent’s business section) points out in perhaps the best press economic analysis of the week. Ethel Hazelhurst (Sunday Independent) argues that the rand is primarily being driven by a “cocktail” of uncertainty about US quantitative easing, a continuing slowdown in the Chinese economy, falling commodity prices, a strengthening US dollar and volatility in global markets – and more, that several currency strategists are likely to be recommending ‘buys’ on the rand at this level (which has proved true as the ZAR was at 9.88/$ a few minutes ago). The Sunday Times quotes Finance Minister Pravin Gordhan supporting this view: “We are very confident that the rand will recover in time, that the markets have overreached themselves.”</i></p>
<p class="MsoNormal" style="margin-bottom:6pt;"><i>However, it is my view that the rand’s idiosyncratic behaviour (compared with the basket of currencies from emerging market resource dependent economies) requires further explanation. Traditionally it has been adequate to argue that the ‘idiosyncrasy’ is due to the fact that the rand is particularly liquid and therefore overreacts to more general exits from that group of currencies. However, so called “structural features” that relate to issues as varied as our &#8216;outlier&#8217; current account deficit, insecurity of the electricity supply, risk of labour unrest and unrealistic labour demands in the mining sector, policy paralysis as a result of the unwieldy ruling alliance, poor governance as a result of preoccupation of political leaders with patronage extraction, corruption, escalating service delivery protests and the permanent risk of instability related to high levels of unemployment and inequality are combining to make for a particularly gloomy South African story at this beginning of winter.</i></p>
<p class="MsoNormal" style="margin-bottom:6pt;"><b><span lang="EN-GB" style="color:#339966;">Vavi lives to fight another day</span></b></p>
<p class="MsoNormal" style="margin-bottom:6pt;">Zwelinzima Vavi, the Cosatu secretary general, has survived the latest attempts to remove him from his position. However an accounting firm will investigate if there was any impropriety in his involvement in the sale ‘the old Cosatu building’ and the purchase of ‘the new Cosatu House’. More importantly there will be various commissions to investigate Vavi’s political loyalties in the light of his failure to adequately articulate Cosatu support for Zuma in the lead-up to Mangaung (Mail &amp; Guardian, City Press, Sunday Times, Sunday Independent and various online news sources &#8230; although be cautious, at least some of these outlets have reported factional rumours about Vavi in the past).</p>
<p class="MsoNormal" style="margin-bottom:6pt;"><b><i>So what?</i></b></p>
<p class="MsoNormal" style="margin-bottom:6pt;"><i>The deep fracture in Cosatu is assuming a clearer ideological and political character with unions clustered around the Num attacking Vavi especially for disloyalty to Zuma and the ANC and unions clustered around Numsa defending Vavi and asserting that his criticism of the ANC leadership for corruption and policy meandering are correct and appropriate. The issues are complex – as I have repeatedly discussed before – but it is probably true to argue that Zwelinzima Vavi and Numsa have become the most significant source of opposition to Zuma’s government and leadership of the party, outweighing even that coming from opposition parties in parliament. No matter what happens with the investigation into Vavi there is likely to be a widespread belief that Vavi is the victim of a ‘stitch up’ (slang for framing someone for a crime or misdemeanour).</i></p>
<p class="MsoNormal" style="margin-bottom:6pt;"><b><span lang="EN-GB" style="color:#339966;">National Prosecuting Authority – further evidence of structural negatives</span></b></p>
<p class="MsoNormal" style="margin-bottom:6pt;">Last week senior state prosecutor Glynnis Breytenbach was cleared of 15 disciplinary charges brought against her by the National Prosecuting Authority. The subtext of all of the coverage in the weeklies is contained in the summary analysis by constitutional expert professor Pierre De Vos: “It will strengthen the increasingly widely held perception that senior NPA leaders are appointed because of their political loyalty to the dominant faction inside the ANC (and especially to President Jacob Zuma and his campaign to stay out of prison) and not because of their personal integrity, independent attitude and ability to act without fear, favour or prejudice (as required by the Constitution)”. The charges against Breytenbach related to her alleged failure to act impartially when she was investigating the Kumba Iron Ore, Arcelor Mittal SA, Sishen and Imperial Crown Trading mining rights issue but was also widely interpreted as motivated by the her insistence on pursuing several other Jacob Zuma allies including suspended crime intelligence boss Richard Mdluli and Nomgcobo Jiba, the person Jacob Zuma has appointed acting head of the NPA.</p>
<p class="MsoNormal" style="margin-bottom:6pt;"><b><i>So what?</i></b></p>
<p class="MsoNormal" style="margin-bottom:6pt;"><i>Ever since the suspension of Vusi Pikoli, the National Director of Public Prosecutions by Thabo Mbeki in 2007 (probably because Pikoli was pursuing then Mbeki ally Police Commissioner Jackie Selebi on corruption charges) and then his firing by Kgalema Mothlanthe (probably because Pikoli was pursuing corruption charges against newly elected ANC president Jacob Zuma) the National Prosecuting Authority has been in a precipitous state of decline. The institution has been used increasingly as an instrument to favour or retard various factional interests in the ruling alliance and with this has come a predictable decline in its effectiveness. The functioning of the prosecutorial authority is intimately tied up with the functioning of the South African constitution and can become a determining factor in investment decisions. The decline of the NPA should be seen as a not insignificant deterrent to investment in the country.</i></p>
<p class="MsoNormal" style="margin-bottom:6pt;"><b><span lang="EN-GB" style="color:#339966;">Bits and pieces</span></b></p>
<ul style="margin-top:0;" type="disc">
<li class="MsoNormal" style="margin-bottom:6pt;">Num officials faked stop orders to hide the degree to which it has lost ground to Amcu according to reports in City Press business section. Eight of Num’s full-time shop stewards have been ‘expelled’ by Lonmin due to alleged fraud around union membership. “Full-time shop stewards are employees of the company who do only union work, but receive a salary &#8211; usually equivalent to relatively high grade jobs.” Num has until July 15 to regain members or lose its offices at the mine. According to the report the “offices have long doubled as the branch offices of the ANC” &#8211; as is the case with the hundreds of Num offices across the country. “Amcu represents roughly 74% of the 18 000 employees and 9 000 contractors at Lonmin” – City Press.</li>
<li class="MsoNormal" style="margin-bottom:6pt;">Most of the weeklies ran stories about talk show host Dali Tambo’s <i>People of the South</i> television programme due to be broadcast in two halves on state broadcaster SABC last night and Sunday next week.  The show is an intimate and warm interview with Robert Mugabe at home with his family.</li>
<li class="MsoNormal" style="margin-bottom:6pt;">“Gaddafi billions found in SA” was the lead story in the Sunday Times but over to the right on the front page was the bigger surprise: “It’s official: Pule lied about lover.” The Sunday Times claims it has seen documents that prove Dina Pule, Minister of Communications, has repeatedly lied about her relationship with businessman Phosane Mngqibisa. Failed telecommunications policy is a structural constraint to growth in the country and Pule, who is being investigated by a parliamentary ethics committee about whether she directed business towards Mngqibisa, has proved to be part of the problem. Her removal will come as a welcome relief, but policy uncertainty in the sector is a bigger problem than just this minister.</li>
<li class="MsoNormal" style="margin-bottom:6pt;">The Sunday Times argues that Cyril Ramaphosa is going to be used to “win support from the middle class and professionals in next year’s election”, while Jacob Zuma “will still be the face of the campaign in working-class communities” &#8211; (duh). The weekly has an interesting quote from an ANC leader supporting this assertion: “(w)e realised that the majority of our people love the president, but there are also these negative perceptions about him. What we identified was the issue of his <i>associations, controversies about his children and family using their name to get business and the millions spent in Nkandla</i> … So we will make sure that the DP (Ramaphosa) is visible in campaigns” (my emphasis added). All parties are intensively polling opinions in the electorate in the lead-up to elections and it is refreshing to hear ruling party leaders speak about the obstacles they face with such candour.</li>
<li class="MsoNormal" style="margin-bottom:6pt;">The Sunday Times also interestingly reports that the national leadership of the ANC is likely to bypass the structures of the party in Gauteng to reach voters in 2014 because the provincial executive (PEC) of the ANC has “not accepted the Mangaung outcome”. This is code for the assertion that the Gauteng ANC does not support the presidency of Jacob Zuma, which certainly squares with the position of the ANC in that province prior to Mangaung.</li>
</ul>
<br />Filed under: <a href='http://nicborain.wordpress.com/category/african-national-congress/'>African National Congress</a>, <a href='http://nicborain.wordpress.com/category/alliance-politics/'>Alliance Politics</a>, <a href='http://nicborain.wordpress.com/category/cosatu/'>Cosatu</a>, <a href='http://nicborain.wordpress.com/category/cyril-ramaphosa/'>Cyril Ramaphosa</a>, <a href='http://nicborain.wordpress.com/category/dirty-tricks/'>dirty tricks</a>, <a href='http://nicborain.wordpress.com/category/financial-markets/'>financial markets</a>, <a href='http://nicborain.wordpress.com/category/industrial-relations/'>industrial relations</a>, <a href='http://nicborain.wordpress.com/category/jacob-zuma/'>Jacob Zuma</a>, <a href='http://nicborain.wordpress.com/category/mangaung/'>Mangaung</a>, <a href='http://nicborain.wordpress.com/category/mining/'>Mining</a>, <a href='http://nicborain.wordpress.com/category/patronage-networks/'>patronage networks</a>, <a href='http://nicborain.wordpress.com/category/vavi/'>Vavi</a>, <a href='http://nicborain.wordpress.com/category/zar/'>ZAR</a>, <a href='http://nicborain.wordpress.com/category/zimbabwe/'>Zimbabwe</a>  <a rel="nofollow" href="http://feeds.wordpress.com/1.0/gocomments/nicborain.wordpress.com/2572/"><img alt="" border="0" src="http://feeds.wordpress.com/1.0/comments/nicborain.wordpress.com/2572/" /></a> <img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=nicborain.wordpress.com&#038;blog=6434493&#038;post=2572&#038;subd=nicborain&#038;ref=&#038;feed=1" width="1" height="1" />]]></content:encoded>
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		<title>Top ranked political analyst in the Financial Mail survey</title>
		<link>http://nicborain.wordpress.com/2013/06/04/top-ranked-political-analyst-in-the-financial-mail-survey/</link>
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		<pubDate>Tue, 04 Jun 2013 18:32:41 +0000</pubDate>
		<dc:creator>nicborain</dc:creator>
				<category><![CDATA[analysing analysis]]></category>
		<category><![CDATA[blog administration]]></category>
		<category><![CDATA[business]]></category>
		<category><![CDATA[marketing]]></category>

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		<description><![CDATA[In this age of frenzied self-promotion I should be more comfortable about this, so let me just come out and say it: I was top ranked in the Political Trends and Industrial Relations category at the Financial Mail Analyst of the Year Awards last week. Every year since 1977 the Financial Mail has sent a [&#8230;]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=nicborain.wordpress.com&#038;blog=6434493&#038;post=2562&#038;subd=nicborain&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
				<content:encoded><![CDATA[<p>In this age of frenzied self-promotion I should be more comfortable about this, so let me just come out and say it: I was top ranked in the Political Trends and Industrial Relations category at the Financial Mail Analyst of the Year Awards last week.</p>
<p><a href="http://nicborain.files.wordpress.com/2013/06/fm-rankings.jpg"><img class="alignleft size-large wp-image-2563" alt="FM rankings" src="http://nicborain.files.wordpress.com/2013/06/fm-rankings.jpg?w=490&#038;h=192" width="490" height="192" /></a></p>
<p>Every year since 1977 the Financial Mail has sent a confidential questionnaire to domestic institutional fund managers and investment organisations to ask them to rate the research they get from brokerage houses. This year 35 institutional fund managers with more that R4 trillion assets under management were polled.</p>
<p>How this business (from which I derive a significant portion of my income) works, is JSE member firms (basically stock brokers) employ or contract specialists to produce research that somehow aids the fund manager in making investment decisions. If the research added value to the fund manager’s decision the broker is paid either directly or in the form of a commission of some kind. That&#8217;s one of the reasons I appreciate the award: the people paying for the service get to vote.</p>
<p>This year I am grateful to have been a consultant to BNP Paribas Cadiz Securities and as such part of that firm&#8217;s excellent and amiable research and sales team.</p>
<br />Filed under: <a href='http://nicborain.wordpress.com/category/analysing-analysis/'>analysing analysis</a>, <a href='http://nicborain.wordpress.com/category/blog-administration/'>blog administration</a>, <a href='http://nicborain.wordpress.com/category/business/'>business</a>, <a href='http://nicborain.wordpress.com/category/marketing/'>marketing</a>  <a rel="nofollow" href="http://feeds.wordpress.com/1.0/gocomments/nicborain.wordpress.com/2562/"><img alt="" border="0" src="http://feeds.wordpress.com/1.0/comments/nicborain.wordpress.com/2562/" /></a> <img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=nicborain.wordpress.com&#038;blog=6434493&#038;post=2562&#038;subd=nicborain&#038;ref=&#038;feed=1" width="1" height="1" />]]></content:encoded>
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		<title>Zuma in Eldorado Park = J Arthur Brown in Khayelitsha</title>
		<link>http://nicborain.wordpress.com/2013/05/26/zuma-in-eldorado-park-j-arthur-brown-in-khayelitsha/</link>
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		<pubDate>Sun, 26 May 2013 08:28:00 +0000</pubDate>
		<dc:creator>nicborain</dc:creator>
				<category><![CDATA[African National Congress]]></category>
		<category><![CDATA[Corruption]]></category>
		<category><![CDATA[Crime]]></category>
		<category><![CDATA[Cronin]]></category>
		<category><![CDATA[dirty tricks]]></category>
		<category><![CDATA[Jacob Zuma]]></category>
		<category><![CDATA[Jeremy Cronin]]></category>
		<category><![CDATA[Julius Malema]]></category>
		<category><![CDATA[patronage networks]]></category>
		<category><![CDATA[populism]]></category>

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		<description><![CDATA[The appropriate comparison for J Arthur Brown&#8217;s visit to Khayelitsha yesterday is Jacob Zuma&#8217;s visit to Eldorado Park a few weeks ago &#8211; the president&#8217;s vist conducted ostensibly to free that neighborhood from the tyranny of crystal meth and tik. Watching the visuals on eNCA (catch those here) of the white fraudster&#8217;s visit to the [&#8230;]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=nicborain.wordpress.com&#038;blog=6434493&#038;post=2549&#038;subd=nicborain&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
				<content:encoded><![CDATA[<p>The appropriate comparison for J Arthur Brown&#8217;s visit to Khayelitsha yesterday is Jacob Zuma&#8217;s visit to Eldorado Park a few weeks ago &#8211; the president&#8217;s vist conducted ostensibly to free that neighborhood from the tyranny of crystal meth and tik.</p>
<p>Watching the visuals on eNCA (catch those <a href="http://www.enca.com/south-africa/brown-unfazed-npa-s-appeal">here</a>) of the white fraudster&#8217;s visit to the Cape township yesterday was surreal. Brown, louche, handsome and relaxed in tatty jeans and gelled hair being warmly welcomed by the community meeting; the elderly African audience in their Sunday best, anxious to please, respectful and sitting up straight in their seats. Brown lounging like a  rock star being interviewed by Rolling Stone.</p>
<p>Afterwards outside: the crowd greeting him with Amandla!  &#8211; everyone taking a turn to hug their last hope for the return of the money, the man who the state accused of stealing it in the first place.</p>
<p>Zuma&#8217;s trip to Eldorado Park is the same species of manipulation. It was supposedly prompted by an eloquent request by resident Dereleen James describing her desperate efforts to get her 17-year-old son off crystal meth. See that moving <a href="http://www.iol.co.za/news/south-africa/gauteng/letter-to-zuma-from-desperate-moms-sisters-1.1508278#.UaG4Ktiw6QA">letter here.</a></p>
<p>Both these incidents have the classic elements of &#8216;big man&#8217; politics and the worst features of populism.</p>
<p>What you do is take an issue that absolutely no-one could disagree with and then you march in as the good and heroic saviour. Even those who suspect your motivations are forced into silence. The poverty-stricken victims need all the help they can get, even if it is coming from people who are motivated by the need to repair their public image.</p>
<p>I don&#8217;t buy that, in exactly the same way as I don&#8217;t buy it when repressive governments argue that the internet needs censoring because of child pornography.</p>
<p>Anyone who argues against the populist measures is immediately cast as the villain: <em>so what, are you in favour of drugs, child pornography and poverty? You are prepared to let these victims suffer just to satisfy some political principle of your own?</em></p>
<p>Julius Malema, Jacob Zuma and Winnie Mandela had one thing in common. They understood perfectly that you shouldn&#8217;t waste your time with actually solving the housing crisis, poverty, drug addiction (choose your perfect and sanctified issue.) All you need to do is go into the impoverished area and give someone a house. Do it with fanfare and praise singers. The community will come out, awed at your power and generosity, clear that you are the source of the goodies that make life possible, full of hope that <em>their</em> turn might come some time soon.</p>
<p>So maybe J Arthur Brown is going to stump up a few million rand, perhaps set up a fund for the people who have been robbed. Surely that is a good thing?</p>
<p>No, it&#8217;s not if it means that pressure is relieved on the more pervasive looting of pension and investment funds by people like J Arthur Brown.</p>
<p>How can we be anything but horrified when the fox volunteers to police the hen-house? Not for some vague political principal, but because our desire to save one chicken has endangered them all.</p>
<p>A few years ago it would have been the SACP and the ANC making these arguments and far more eloquently than I have here (catch an excellent interview with Jeremy Cronin several years ago doing precisely that <a href="http://blogs.timeslive.co.za/hartley/2010/02/20/political-notebook-jeremy-cronin-on-the-dangers-of-populism/"> &#8211; push through till he gets to the &#8216;big man&#8217; and populism bit, it will be worth your while</a>).  Of the many things I regret about the present, the loss of that perspective from our politics is the one I feel most keenly.</p>
<p>Zuma&#8217;s visit to Eldorado Park is indistinguishable, in its deeper architectural structure, from J Arthur Brown&#8217;s visit to Khayelitsha. In both cases there will be immediate changes to local people&#8217;s lives, but changes that purely result in a displacement of the problems and temporary relief.  Like the distribution of food parcels by politicians just before elections the temporary relief provided the hungry does not balance the harm done the society by the successful hoodwinking of the electorate by the &#8216;big man&#8217;.</p>
<br />Filed under: <a href='http://nicborain.wordpress.com/category/african-national-congress/'>African National Congress</a>, <a href='http://nicborain.wordpress.com/category/corruption/'>Corruption</a>, <a href='http://nicborain.wordpress.com/category/crime/'>Crime</a>, <a href='http://nicborain.wordpress.com/category/cronin/'>Cronin</a>, <a href='http://nicborain.wordpress.com/category/dirty-tricks/'>dirty tricks</a>, <a href='http://nicborain.wordpress.com/category/jacob-zuma/'>Jacob Zuma</a>, <a href='http://nicborain.wordpress.com/category/jeremy-cronin/'>Jeremy Cronin</a>, <a href='http://nicborain.wordpress.com/category/julius-malema/'>Julius Malema</a>, <a href='http://nicborain.wordpress.com/category/patronage-networks/'>patronage networks</a>, <a href='http://nicborain.wordpress.com/category/populism/'>populism</a>  <a rel="nofollow" href="http://feeds.wordpress.com/1.0/gocomments/nicborain.wordpress.com/2549/"><img alt="" border="0" src="http://feeds.wordpress.com/1.0/comments/nicborain.wordpress.com/2549/" /></a> <img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=nicborain.wordpress.com&#038;blog=6434493&#038;post=2549&#038;subd=nicborain&#038;ref=&#038;feed=1" width="1" height="1" />]]></content:encoded>
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		<title>Ten days that shook my world</title>
		<link>http://nicborain.wordpress.com/2013/05/09/ten-days-that-shook-my-world/</link>
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		<pubDate>Thu, 09 May 2013 18:28:45 +0000</pubDate>
		<dc:creator>nicborain</dc:creator>
				<category><![CDATA[capitalism]]></category>
		<category><![CDATA[Democracy]]></category>
		<category><![CDATA[Development]]></category>
		<category><![CDATA[Economics]]></category>
		<category><![CDATA[emergent properties]]></category>
		<category><![CDATA[government v private sector]]></category>
		<category><![CDATA[History]]></category>
		<category><![CDATA[Love]]></category>
		<category><![CDATA[natural disasters]]></category>
		<category><![CDATA[propaganda]]></category>
		<category><![CDATA[Socialism]]></category>
		<category><![CDATA[USSR]]></category>

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		<description><![CDATA[Preface  I wrote what follows in July 1990 immediately after returning from a two week trip to Moscow. I was part of a group with the now sadly departed Institute for a Democratic Alternative for South Africa (Idasa). The original was published in Democracy In Action, the institute&#8217;s monthly newsletter. I had looked for a copy for [&#8230;]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=nicborain.wordpress.com&#038;blog=6434493&#038;post=2514&#038;subd=nicborain&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
				<content:encoded><![CDATA[<p><strong><em>Preface  </em></strong></p>
<p><em>I wrote what follows in July 1990 immediately after returning from a two week trip to Moscow. I was part of a group with the now </em><em>sadly</em><em> <a href="http://www.demdigest.net/blog/2013/03/idasa-closure-marks-end-of-an-era-in-south-africa/">departed</a> Institute for a Democratic Alternative for South Africa (Idasa). The original was published in Democracy In Action, the institute&#8217;s monthly newsletter. I had looked for a copy for years and </em><em>Paul Graham the last executive director of  Idasa, and a man for whom I have the highest regard, went to considerable trouble to find the article for me as he was closing up shop. </em><em>I am republishing it here exactly as it originally appeared, although I have to sit on my hands to stop myself stripping out much of the sentiment and youthful taking-of-oneself-too-seriously &#8211; and thereby cutting two thirds of the length. (I would also quite like not to admit to some of the things I once believed which I admit to in the article &#8230; and I would love to add a bit of irony &#8230; but it is all too late for that now.) </em></p>
<p><em>Why am I bothering &#8211; I am not unaware that this was not exactly seminal?  No special reason, except my desire that it form &#8216;part of the record&#8217;. I wanted it &#8220;out there&#8221; in the electronic universe to remind myself of the precise moment I stopped being a confused socialist and carried on with being </em><em>just </em><em>confused, an altogether less satisfying state than I had experienced previously. It was  bitter-sweet for me, this moment, and I have never entirely resolved the conflicted feelings that it evokes in me. I don&#8217;t promise </em><em>that what follows will be madly interesting to anyone but myself and perhaps some others directly involved in the events I describe. So, if for no other reasons than the much vaunted record, complete and unexpurgated, here is:</em><em><br />
</em></p>
<h1>Ten days that shook my world</h1>
<p>Standing on the Leningradsky Prospect &#8211; the &#8220;straight way&#8221; to Leningrad &#8211; just outside Moscow I was filled with an unhappy mixture of dismay and despair.</p>
<p>I had reached an unbearably poignant shrine. In heroic proportions and cut deep into huge blocks of concrete was the visage of the Soviet version of the Unknown Soldier. The young interpreter translated the script alongside that  haunting face in hushed tones. &#8220;It says that, &#8216;the defenders of Moscow defend here forever&#8217;. Here they fought an important battle in the Great Patriotic War. Many people died. But for us this is very sad.&#8221;</p>
<p>Twenty million Soviet citizens died in that war. more than all the other deaths put together. The German army failed to take Moscow or Leningrad and eventually broke its back on a bitterly defended Stalingrad and the even more bitter Soviet winter.</p>
<p>Standing at that memorial I felt dismay at the enormity of suffering the people of this country had experienced in the last 100 years. I felt despair because by that stage of the trip I already sensed than another tragedy was befalling this oft punished country.</p>
<p>How do  you record a credible impression of a country with 290  million inhabitant and more mutually unintelligible languages than anywhere else in the world after a brief two weeks spent in one city &#8211; albeit Moscow?</p>
<p>The answer is you probably can&#8217;t.</p>
<p>It was sunny mid-June and I was part of an Idasa delegation of &#8220;young researchers&#8221; on a fact-finding mission hosted by a group called the Committee of Youth Organisations. For me personally the visit was of particular importance.</p>
<p>The Soviet Union was the land of milk and honey for many of us who grew up politically in the student movement in the late 70s and early 80s. This was the flagship of a growing fleet that would rid our world of the uncaring and greedy imperative of profiteering capitalism and the misery it had brought our country.</p>
<p>We could quote chapter and verse of statistics that demonstrated the availability of basic goods and services to all Soviet people. We could parade the achievements of Eastern bloc socialism &#8211; in the production of iron and steel, in the eradication of illiteracy, in culture, the arts and in sports.</p>
<p>In response to perestroika and glasnost we had all reformulated our ideas and I wanted to discover two things: the soul of the Soviet people and  whether the red flag was still flying. We were not able to answer any of these questions conclusively and were left with a series of often unconnected impressions.</p>
<p>I was quite unprepared for what I found in Moscow.</p>
<p>We sat in a meeting with the editor of the Moscow Communist Youth Organisation (Komsomol) daily newspaper. The paper has a subscriber list of one and a half million and is delivered daily. This man was a political appointee yet he harangued us for over an hour about the evils and absolute unworkability of socialism.</p>
<p>We didn&#8217;t understand. Here was a powerful and influential communist, picking up a glass on the table and asking, &#8220;Who does this belong to? To the state, or the people, or some vague body? I don&#8217;t care about this glass,&#8221; and he made as if to throw it out of the window.</p>
<p>In an intense and growing fury he took a Parker pen from the inside pocket of his coat. &#8220;This is my pen! If this man (pointing at his second in command) breaks this pen, I will beat him,&#8221; he said, shaking his fist angrily.</p>
<p>Reaching some kind of climax, the editor rose to his feet and shouted pointing out of the window at the inevitable queue at a shop across the road: &#8220;Those people are queuing for children&#8217;s slippers. This is not how people should live! This is not even how animals should live!&#8221;</p>
<p>The sentiments behind these ragings were expressed by everyone we met &#8211; more cautiously only by the most senior members of the Communist Party.</p>
<p>The economy has clearly failed to meet the requirements of the population and the list of reasons they give reads like a tirade from the New Right.</p>
<p>Here is a selection of rough quotes as I jotted them down in my notebook or remember them now:</p>
<p>&#8220;The authoritarian, bureaucratic, administrative command system has created impossibly skewed production priorities.&#8221;</p>
<p>&#8220;Why work hard, or with any care and attention to detail if you are going to get your 300 roubles a month no matter what and anyway, you are not going to be able to buy anything with it? We have created workers who don&#8217;t know how to work.&#8221;</p>
<p>&#8220;Goods are expensive and if they are made here they are of inferior quality. It is very difficult to get imported goods and usually these are impossibly expensive.&#8221;</p>
<p>&#8220;I have lived here all my life. Now it is worse than anyone can remember. There are just no goods in the shops and for the first time we are really worried about hunger.&#8221;</p>
<p>Almost without exception the people we spoke to blamed socialism for their ills. When those of us with deep philosophical and political roots in the South African socialist movement protested that it wasn&#8217;t socialism per se that was the problem, but rather the errors committed in the building of the society and economy of the Soviet Union specifically, we were laughed out of court.</p>
<p>&#8220;It is the ideas themselves. 1917 was a disaster for us. We need the market economy,&#8221; was the refrain we heard time and again.</p>
<p>There seems no doubt that there is a developing  consensus amongst the intelligentsia in Moscow at any rate, that the &#8220;free market&#8221; is the panacea to many of their ills. It would have been impossible, and extremely presumptuous of us to lecture them on the evils of rampant capitalism. They want it and they want it now.</p>
<p>When Germany and Japan start buying up state enterprises for a pittance and fill the shops with goods that only a few can afford; when unemployment and lack of housing becomes a problem for the previously protected underclass and when access to a whole lot of goods ans services becomes determined by income, they may change their minds, but I wouldn&#8217;t bet my life on it.</p>
<p>The citizens of Moscow (a relatively wealthy city) are struggling, increasingly despairingly, to survive. At first I was tempted to argue that they are better off than the unemployed in the First World, but it just doesn&#8217;t appear to be true, especially as far as countries with social welfare systems are concerned.</p>
<p>The problem, of course, is that the capitalism that will be built in the Soviet Union will be a mean and half-starved animal.</p>
<p>The Soviet people look at the highly developed capitalist economies of the West for a vision of their own future. The truth is that they can expect only the vicious and exploitative versions of the system that exist on the periphery in the Third World.  The creation of that system is going to be extremely painful.</p>
<p>The other element of the unfolding drama in the Soviet Union is the collapse of the political entity itself.</p>
<p>The republics are finally starting to be flung off the edges of the vortex of rapid political change. Long repressed nationalism, often highly chauvinistic, is emerging everywhere and Gorbachev is finding it almost impossible to hold the show on the road.</p>
<p>The dark spectre of the Soviet Union&#8217;s collapse into 15 disgruntled, warring, potentially economically unviable Third World states with terrifying military resources at their disposal is starting to haunt the wold.</p>
<p>And what about the Russian people?</p>
<p>We were all astounded at the depth of education and cultural and philosophical literacy in the wide cross-section of people we met. A deep abhorrence of war and commitment to peaceful change was the characteristic feature. In response to the question &#8220;what do you want, or see as an alternative?&#8221;, the most common phrase was, &#8220;respect for universal human values.&#8221;.</p>
<p>We asked many young people if they were proud of any of their national achievements &#8211; the beautiful, cheap and efficient Moscow underground, the low price and ready availability of books and records and the level of literacy and education.</p>
<p>We were told (variously): &#8220;The Soviet Union is not a country, we have no national achievements&#8221;; &#8220;how can we be proud if it takes all our effort and time just to buy a loaf of bread in a shop&#8221;.</p>
<p>Almost every young person we met had a burning desire to leave the country. The most popular movie on the circuit is a &#8220;documentary&#8221; comparison of life in the Soviet Union versus life in the West.</p>
<p>Apparently this films looks at the worst of Soviet life compared to the best in the West. It sounds like the worst kind of anti-communist, American ultra-right chauvinism -  except it was made by a Soviet film producer. What is more, the public swallow every last detail in an orgy of masochistic self-hatred.</p>
<h5>Media freedom</h5>
<p>One thing we found interesting and encouraging was freedom and vibrancy of the media.</p>
<p>Organised political opposition to the Communist Party is weak (outside of the national movements in the republics) and many of the new parties have no real experience at mobilising the population. However, the press and television are filled with debate and exploration of new ideas and harsh examinations of social problems ranging from alcoholism through to child abuse.</p>
<p>By the end of the 10 days, the six of us were punch-drunk and exhausted. We spoke together for hours trying, unsuccessfully, to draw out the essence of the experience. We all had the sense of being in an important place at an important time. This was the exact point where a grand enterprise had come off the rails.</p>
<p>The resounding shock waves of that catastrophe have changed the whole world, not least of all our own country. We struggled with the enormity of it and the sense of hopelessness we were left with.</p>
<p>As the last day of the visit dawned, I spoke to a wise and gentle man about my confusion and disappointment. He said: &#8220;Yes, this is a tragedy of unimaginable proportions, but you are wrong to say our people are hopeless or despairing. They have spirit and humanity. We will win through in some way.&#8221;</p>
<p><em>(I was accompanied on that trip by Ian Liebenberg, Hermien Kotze, Zorah Ebrahim, Khehla Shubane and Mark Swilling &#8211; and I wish them well wherever they may be.)</em></p>
<br />Filed under: <a href='http://nicborain.wordpress.com/category/capitalism/'>capitalism</a>, <a href='http://nicborain.wordpress.com/category/democracy/'>Democracy</a>, <a href='http://nicborain.wordpress.com/category/development/'>Development</a>, <a href='http://nicborain.wordpress.com/category/economics/'>Economics</a>, <a href='http://nicborain.wordpress.com/category/emergent-properties/'>emergent properties</a>, <a href='http://nicborain.wordpress.com/category/government-v-private-sector/'>government v private sector</a>, <a href='http://nicborain.wordpress.com/category/history/'>History</a>, <a href='http://nicborain.wordpress.com/category/love/'>Love</a>, <a href='http://nicborain.wordpress.com/category/natural-disasters/'>natural disasters</a>, <a href='http://nicborain.wordpress.com/category/propaganda/'>propaganda</a>, <a href='http://nicborain.wordpress.com/category/socialism/'>Socialism</a>, <a href='http://nicborain.wordpress.com/category/ussr/'>USSR</a>  <a rel="nofollow" href="http://feeds.wordpress.com/1.0/gocomments/nicborain.wordpress.com/2514/"><img alt="" border="0" src="http://feeds.wordpress.com/1.0/comments/nicborain.wordpress.com/2514/" /></a> <img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=nicborain.wordpress.com&#038;blog=6434493&#038;post=2514&#038;subd=nicborain&#038;ref=&#038;feed=1" width="1" height="1" />]]></content:encoded>
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		<title>Freedom day good news, the bargaining season, Vavi and other matters</title>
		<link>http://nicborain.wordpress.com/2013/05/02/freedom-day-good-news-the-bargaining-season-vavi-and-other-matters/</link>
		<comments>http://nicborain.wordpress.com/2013/05/02/freedom-day-good-news-the-bargaining-season-vavi-and-other-matters/#comments</comments>
		<pubDate>Thu, 02 May 2013 14:36:30 +0000</pubDate>
		<dc:creator>nicborain</dc:creator>
				<category><![CDATA[African National Congress]]></category>
		<category><![CDATA[Alliance Politics]]></category>
		<category><![CDATA[Cosatu]]></category>
		<category><![CDATA[Jacob Zuma]]></category>
		<category><![CDATA[labour market]]></category>
		<category><![CDATA[Uncategorized]]></category>
		<category><![CDATA[Vavi]]></category>

		<guid isPermaLink="false">http://nicborain.wordpress.com/?p=2521</guid>
		<description><![CDATA[Herewith is an extract from my weekly news summary/analysis of what I thought was important in the main weeklies. Freedom Day, April 27 – nineteen years on from the first democratic election … a good story by-and-large City Press has a useful op-ed page by the always excellent Ferial Haffajee (who is also the editor) [&#8230;]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=nicborain.wordpress.com&#038;blog=6434493&#038;post=2521&#038;subd=nicborain&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
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<p class="MsoNormal" style="margin-bottom:6pt;">Herewith is an extract from my weekly news summary/analysis of what I thought was important in the main weeklies.</p>
<p class="MsoNormal" style="margin-bottom:6pt;"><span style="color:#000000;"><b>Freedom Day, April 27 – nineteen years on from the first democratic election … a good story by-and-large</b></span></p>
<p class="MsoNormal" style="margin-bottom:6pt;">City Press has a useful op-ed page by the always excellent Ferial Haffajee (who is also the editor) based on the South African Institute of Race Relations (SAIRR) handbook 2012. Interestingly, while SAIRR has become an ever stronger critic of the ANC, CEO Frans Cronje acknowledges that “the last 20 years have seen a revolutionary improvement for all South Africans” – a fact that is apparent from the graphic representations (each one manually scanned from the City Press … so apologies for the quality) below.</p>
<div id="attachment_2522" class="wp-caption alignleft" style="width: 500px"><a href="http://nicborain.files.wordpress.com/2013/05/first-politics-scan-001.jpg"><img class="size-large wp-image-2522" alt="Graph above – number of people living on less than $2 a day" src="http://nicborain.files.wordpress.com/2013/05/first-politics-scan-001.jpg?w=490&#038;h=390" width="490" height="390" /></a><p class="wp-caption-text">Graph above – number of people living on less than $2 a day</p></div>
<div id="attachment_2523" class="wp-caption alignleft" style="width: 500px"><a href="http://nicborain.files.wordpress.com/2013/05/political-news-eductation-reversed.jpg"><img class="size-large wp-image-2523" alt="Graph above – the (not so gradual) roll-back of Bantu Education – the number of Blacks passing matric grows more in response to changing economic requirement of the labour force." src="http://nicborain.files.wordpress.com/2013/05/political-news-eductation-reversed.jpg?w=490&#038;h=346" width="490" height="346" /></a><p class="wp-caption-text">Graph above – the (not so gradual) roll-back of Bantu Education – the number of Blacks passing matric grows more in response to changing economic requirement of the labour force.</p></div>
<div id="attachment_2525" class="wp-caption alignleft" style="width: 500px"><a href="http://nicborain.files.wordpress.com/2013/05/three-politics-stuff-001-001.jpg"><img class="size-large wp-image-2525" alt="Graph above – enrolment in tertiary education – significant changes but a long way to go. Notice the growth in African share." src="http://nicborain.files.wordpress.com/2013/05/three-politics-stuff-001-001.jpg?w=490&#038;h=317" width="490" height="317" /></a><p class="wp-caption-text">Graph above – enrolment in tertiary education – significant changes but a long way to go. Notice the growth in African share.</p></div>
<div id="attachment_2528" class="wp-caption alignleft" style="width: 500px"><a href="http://nicborain.files.wordpress.com/2013/05/three-politics-stuff-001-002.jpg"><img class="size-large wp-image-2528 " alt="" src="http://nicborain.files.wordpress.com/2013/05/three-politics-stuff-001-002.jpg?w=490&#038;h=231" width="490" height="231" /></a><p class="wp-caption-text">Graph above shows wealth distribution patterns – everyone getting wealthier, although demographics have a strong (even reinforced) apartheid structure</p></div>
<div id="attachment_2531" class="wp-caption alignleft" style="width: 500px"><a href="http://nicborain.files.wordpress.com/2013/05/asset-weath.jpg"><img class="size-large wp-image-2531" alt="Graph above – the middle class has grown (as far as I can make out from the poorly phrased explanation, this is LSMs 1-10 and how they have fared (grown or shrunk) since 1994 – indicating growth of middle class: bars six and seven." src="http://nicborain.files.wordpress.com/2013/05/asset-weath.jpg?w=490&#038;h=305" width="490" height="305" /></a><p class="wp-caption-text">Graph above – the middle class has grown (as far as I can make out from the explanation, this is LSMs 1-10 and how they have fared (grown or shrunk) since 1994 – indicating growth of middle class: bars six and seven.</p></div>
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<div id="attachment_2535" class="wp-caption alignleft" style="width: 500px"><a href="http://nicborain.files.wordpress.com/2013/05/jse2.jpg"><img class="size-large wp-image-2535" alt="Graph above: the demographics of wealth ownership improve as everyone gets richer – whites still streets ahead in the stakes and foreign ownership is an interesting outlier." src="http://nicborain.files.wordpress.com/2013/05/jse2.jpg?w=490&#038;h=302" width="490" height="302" /></a><p class="wp-caption-text">Graph above: the demographics of wealth ownership improve as everyone gets richer – whites still streets ahead in the stakes and foreign ownership is an interesting outlier.</p></div>
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<p class="MsoNormal" style="margin-bottom:6pt;"><b><i><span style="text-decoration:underline;">So what</span></i></b></p>
<p class="MsoNormal" style="margin-bottom:6pt;"><i>Worries about an Arab spring, and social unrest are often based on the assumption of intractable negative social trends. Haffajee, a strong social and political critic of government herself, says: “Over the years of covering South Africa’s freedom, I’ve come to learn this about us: We don’t count our lucky stars often enough, nor do we give ourselves credit for the things we do well. Why this is, I am not sure. But the answer probably lies inherent in the way power was peacefully transferred, but not decisively won.” These graphs run counter to popular wisdom in a number of ways, perhaps the most important one to point out for domestic consumption is that the idea that whites are the new oppressed, and the losers in the last 19 years (as argued in powerful sections of the media and Solidarity trade union, for example) is obviously, even elaborately, wrong.</i></p>
<p class="MsoNormal" style="margin-bottom:6pt;"><span style="color:#000000;"><b>Businesses unanimous in condemning draft Licensing of Business Bill</b></span></p>
<p class="MsoNormal" style="margin-bottom:6pt;">A proposed bill will force small businesses and traders to register with, and be licenced by, local councils and municipalities (“every greengrocer, car dealer, pharmacy, and livestock seller … it includes every service provider, from lawyers to hospitals and hotels, car parks, airports, freight carriers and advertising agencies” – Free Market Foundation quoted in Business Report, the Sunday Independent’s business section). The report links the bill to the latest Global Entrepreneurship Monitor that shows SA entrepreneurship levels to be the lowest in sub-Saharan Africa.</p>
<p class="MsoNormal" style="margin-bottom:6pt;"><b><i>So what?</i></b></p>
<p class="MsoNormal" style="margin-bottom:6pt;"><i>The entrepreneurship survey is deeply disturbing – although not wholly surprising and we agree with Business Unity South Africa when it says (as quoted in the same story) that the bill “will … retard the growth and development of SMEs and further harm a sector which is presently struggling with a high business failure rate.” However, we understand the real target of the Department of Trade and Industry which is floating the legislation is to restrict illegal hawking, particularly of the flood of cheap, illegally imported manufactured goods. Legislation often has unintended consequences, which is the reasons there is extensive public consultation before laws are placed on the statue books. The DTI’s instincts are to fiddle in the economy, but its intention here is undoubtedly correct, it just needs to find the best mechanism.</i></p>
<p class="MsoNormal" style="margin-bottom:6pt;"><span style="color:#000000;"><b>Wage bargaining and the strikes season is upon us</b></span></p>
</div>
<p class="MsoNormal" style="margin-bottom:6pt;">The City Press business section says “major wage talks scheduled for the mining, motor manufacturing and chemical industries haven’t even begun properly.”</p>
<p class="MsoNormal" style="margin-bottom:6pt;">“A full blown teachers’ strike is now on the cards after teachers’ union Sadtu last week presented President Jacob Zuma with a 21-page mix of labour and political demands” – City Press (those demands include the removal of Basic Education Minister Angie Motshekga and her director-general Bobby Soobrayan.</p>
<p class="MsoNormal" style="margin-bottom:6pt;">The Motor Industry Bargaining Council (MIBC), where Numsa dominates sets wages for 160 000 workers in the sector and this year will open with a demand for a 20% across-the-board increase, an industry wide minimum of R6000.00 a month and a ban on labour brokers – later this week.</p>
<p class="MsoNormal" style="margin-bottom:6pt;">The Chemical Industry also starts next week (sectors involved are “fast moving consumer goods, glass, industrial chemicals and pharmaceuticals” – City Press.)</p>
<p class="MsoNormal" style="margin-bottom:6pt;">The most widely anticipated talks are those coming up in the Chamber of Mines for the gold mining industry (and concurrently in the coal sector) – the first since illegal strikes rearranged the labour landscape and ushered in a plethora of worker committees refusing to work through unions. “The handsome increases some of the mining strikes won last year, by bypassing the formal system, will exercise the minds of everyone at the table …” City Press.</p>
<p class="MsoNormal" style="margin-bottom:6pt;">The article also says “the Chamber of Mines is meeting with Amcu again this week to try and arrange its place in the forum … where Amcu will have to share Num’s mandate for the populous lower bands.”</p>
<p class="MsoNormal" style="margin-bottom:6pt;">“The plan for a new platinum forum echoing the gold and coal forums at the chamber has not made any progress. This while mining companies will see their standing wage agreements expire this year” – City Press.</p>
<p class="MsoNormal" style="margin-bottom:3pt;"><b><i>So what?</i></b></p>
<p class="MsoNormal"><i>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. Strike action during these times can appear to cascade through the economy and we need to be clear what is ‘normal’ and what is ‘abnormal’.  The platinum and agriculture strikes last year were abnormal and have, to an important degree, contributed to destabilising the system – by creating unrealistic base expectations and by encouraging workers to bargain outside of the unions and structures of the central bargaining system. This <span style="text-decoration:underline;">does</span> lay the grounds for serious uncertainty this year. Adding to the tension is the apparent attempt of Zuma and his strategist and allies in Cosatu to get rid of popular Secretary General Zwelinzima Vavi. As we discuss below, this could contribute to serious disturbance in industrial relations this year – disturbances that are distinctly not part of the normal cycle.</i></p>
<p class="MsoNormal" style="margin-bottom:6pt;"><span style="color:#000000;"><b>The growing tension in the ruling alliance is putting Cosatu under intense strain</b></span></p>
<p class="MsoNormal" style="margin-bottom:6pt;">The Sunday Times says it has seen and analysed Cosatu’s schedule of rallies and official speakers for May 1 and argues: “May Day celebrations will once again expose the deep division in Cosatu” &#8211; a significant part of the tension concerns Num leaders refusing to address rallies in the Eastern Cape, an important labour sending area for platinum mines and likely strongholds of Amcu where Jacob Zuma’s Num allies are might to be embarrassed, heckled or driven from the stage.</p>
<p class="MsoNormal" style="margin-bottom:6pt;">City Press attempted to tote up the “for and against Vavi” unions indicating membership numbers – using figures drawn from the Cosatu 2012 national conference official ‘organisation report’- and it’s own insights into which groups of union leaders are Zuma allies/Vavi critics. It is not an extremely useful exercise because each union has for-and-against sections, with only Numsa and Num being large and significant unions with more clearly defined “for and against” positions. However the forces against Vavi appear to have the numbers if they need them, although it is not clear that this translates directly into votes in the forum that will make the decision.</p>
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<table class="MsoNormalTable" style="width:390.45pt;border-collapse:collapse;border:none;" width="492" border="1" cellspacing="0" cellpadding="0">
<tbody>
<tr style="page-break-inside:avoid;">
<td style="width:63.9pt;border:solid windowtext 1pt;padding:0;" valign="top" width="85">
<p class="MsoNormal" style="margin-bottom:6pt;"><b>Pro-Vavi</b></p>
</td>
<td style="width:65.4pt;border:solid windowtext 1pt;border-left:none;padding:0;" valign="top" width="87">
<p class="MsoNormal" style="margin-bottom:6pt;"><b>Membership Numbers</b></p>
</td>
<td style="width:65.25pt;border:solid windowtext 1pt;border-left:none;padding:0;" valign="top" width="87">
<p class="MsoNormal" style="margin-bottom:6pt;"><b>Anti-Vavi</b></p>
</td>
<td style="width:65.45pt;border:solid windowtext 1pt;border-left:none;padding:0;" valign="top" width="87">
<p class="MsoNormal" style="margin-bottom:6pt;"><b>Membership Numbers</b></p>
</td>
<td style="width:65.05pt;border:solid windowtext 1pt;border-left:none;padding:0;" valign="top" width="87">
<p class="MsoNormal" style="margin-bottom:6pt;"><b>Unclear</b></p>
</td>
<td style="width:65.4pt;border:solid windowtext 1pt;border-left:none;padding:0;" valign="top" width="87">
<p class="MsoNormal" style="margin-bottom:6pt;"><b>Membership Numbers</b></p>
</td>
</tr>
<tr style="page-break-inside:avoid;">
<td style="width:63.9pt;border:solid windowtext 1pt;border-top:none;padding:0;" valign="top" width="85">
<p class="MsoNormal" style="margin-bottom:6pt;">Numsa</p>
</td>
<td style="width:65.4pt;border-top:none;border-left:none;border-bottom:solid windowtext 1pt;border-right:solid windowtext 1pt;padding:0;" valign="top" width="87">
<p class="MsoNormal" style="margin-bottom:6pt;">291025</p>
</td>
<td style="width:65.25pt;border-top:none;border-left:none;border-bottom:solid windowtext 1pt;border-right:solid windowtext 1pt;padding:0;" valign="top" width="87">
<p class="MsoNormal" style="margin-bottom:6pt;">Ceppwawu</p>
</td>
<td style="width:65.45pt;border-top:none;border-left:none;border-bottom:solid windowtext 1pt;border-right:solid windowtext 1pt;padding:0;" valign="top" width="87">
<p class="MsoNormal" style="margin-bottom:6pt;">80658</p>
</td>
<td style="width:65.05pt;border-top:none;border-left:none;border-bottom:solid windowtext 1pt;border-right:solid windowtext 1pt;padding:0;" valign="top" width="87">
<p class="MsoNormal" style="margin-bottom:6pt;">CWU</p>
</td>
<td style="width:65.4pt;border-top:none;border-left:none;border-bottom:solid windowtext 1pt;border-right:solid windowtext 1pt;padding:0;" valign="top" width="87">
<p class="MsoNormal" style="margin-bottom:6pt;">18666</p>
</td>
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<tr style="page-break-inside:avoid;">
<td style="width:63.9pt;border:solid windowtext 1pt;border-top:none;padding:0;" valign="top" width="85">
<p class="MsoNormal" style="margin-bottom:6pt;">Fawu</p>
</td>
<td style="width:65.4pt;border-top:none;border-left:none;border-bottom:solid windowtext 1pt;border-right:solid windowtext 1pt;padding:0;" valign="top" width="87">
<p class="MsoNormal" style="margin-bottom:6pt;">126930</p>
</td>
<td style="width:65.25pt;border-top:none;border-left:none;border-bottom:solid windowtext 1pt;border-right:solid windowtext 1pt;padding:0;" valign="top" width="87">
<p class="MsoNormal" style="margin-bottom:6pt;">Num</p>
</td>
<td style="width:65.45pt;border-top:none;border-left:none;border-bottom:solid windowtext 1pt;border-right:solid windowtext 1pt;padding:0;" valign="top" width="87">
<p class="MsoNormal" style="margin-bottom:6pt;">310382</p>
</td>
<td style="width:65.05pt;border-top:none;border-left:none;border-bottom:solid windowtext 1pt;border-right:solid windowtext 1pt;padding:0;" valign="top" width="87">
<p class="MsoNormal" style="margin-bottom:6pt;">Sama</p>
</td>
<td style="width:65.4pt;border-top:none;border-left:none;border-bottom:solid windowtext 1pt;border-right:solid windowtext 1pt;padding:0;" valign="top" width="87">
<p class="MsoNormal" style="margin-bottom:6pt;">7758</p>
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<tr style="page-break-inside:avoid;">
<td style="width:63.9pt;border:solid windowtext 1pt;border-top:none;padding:0;" valign="top" width="85">
<p class="MsoNormal" style="margin-bottom:6pt;">Denosa</p>
</td>
<td style="width:65.4pt;border-top:none;border-left:none;border-bottom:solid windowtext 1pt;border-right:solid windowtext 1pt;padding:0;" valign="top" width="87">
<p class="MsoNormal" style="margin-bottom:6pt;">74</p>
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<td style="width:65.25pt;border-top:none;border-left:none;border-bottom:solid windowtext 1pt;border-right:solid windowtext 1pt;padding:0;" valign="top" width="87">
<p class="MsoNormal" style="margin-bottom:6pt;">Nehawu</p>
</td>
<td style="width:65.45pt;border-top:none;border-left:none;border-bottom:solid windowtext 1pt;border-right:solid windowtext 1pt;padding:0;" valign="top" width="87">
<p class="MsoNormal" style="margin-bottom:6pt;">260738</p>
</td>
<td style="width:65.05pt;border-top:none;border-left:none;border-bottom:solid windowtext 1pt;border-right:solid windowtext 1pt;padding:0;" valign="top" width="87">
<p class="MsoNormal" style="margin-bottom:6pt;">Pawusa</p>
</td>
<td style="width:65.4pt;border-top:none;border-left:none;border-bottom:solid windowtext 1pt;border-right:solid windowtext 1pt;padding:0;" valign="top" width="87">
<p class="MsoNormal" style="margin-bottom:6pt;">17146</p>
</td>
</tr>
<tr style="page-break-inside:avoid;">
<td style="width:63.9pt;border:solid windowtext 1pt;border-top:none;padding:0;" valign="top" width="85"></td>
<td style="width:65.4pt;border-top:none;border-left:none;border-bottom:solid windowtext 1pt;border-right:solid windowtext 1pt;padding:0;" valign="top" width="87"></td>
<td style="width:65.25pt;border-top:none;border-left:none;border-bottom:solid windowtext 1pt;border-right:solid windowtext 1pt;padding:0;" valign="top" width="87">
<p class="MsoNormal" style="margin-bottom:6pt;">Popcru</p>
</td>
<td style="width:65.45pt;border-top:none;border-left:none;border-bottom:solid windowtext 1pt;border-right:solid windowtext 1pt;padding:0;" valign="top" width="87">
<p class="MsoNormal" style="margin-bottom:6pt;">149339</p>
</td>
<td style="width:65.05pt;border-top:none;border-left:none;border-bottom:solid windowtext 1pt;border-right:solid windowtext 1pt;padding:0;" valign="top" width="87">
<p class="MsoNormal" style="margin-bottom:6pt;">Sadnu</p>
</td>
<td style="width:65.4pt;border-top:none;border-left:none;border-bottom:solid windowtext 1pt;border-right:solid windowtext 1pt;padding:0;" valign="top" width="87">
<p class="MsoNormal" style="margin-bottom:6pt;">8655</p>
</td>
</tr>
<tr style="page-break-inside:avoid;">
<td style="width:63.9pt;border:solid windowtext 1pt;border-top:none;padding:0;" valign="top" width="85"></td>
<td style="width:65.4pt;border-top:none;border-left:none;border-bottom:solid windowtext 1pt;border-right:solid windowtext 1pt;padding:0;" valign="top" width="87"></td>
<td style="width:65.25pt;border-top:none;border-left:none;border-bottom:solid windowtext 1pt;border-right:solid windowtext 1pt;padding:0;" valign="top" width="87">
<p class="MsoNormal" style="margin-bottom:6pt;">Satawu</p>
</td>
<td style="width:65.45pt;border-top:none;border-left:none;border-bottom:solid windowtext 1pt;border-right:solid windowtext 1pt;padding:0;" valign="top" width="87">
<p class="MsoNormal" style="margin-bottom:6pt;">159626</p>
</td>
<td style="width:65.05pt;border-top:none;border-left:none;border-bottom:solid windowtext 1pt;border-right:solid windowtext 1pt;padding:0;" valign="top" width="87">
<p class="MsoNormal" style="margin-bottom:6pt;">Safpu</p>
</td>
<td style="width:65.4pt;border-top:none;border-left:none;border-bottom:solid windowtext 1pt;border-right:solid windowtext 1pt;padding:0;" valign="top" width="87">
<p class="MsoNormal" style="margin-bottom:6pt;">593</p>
</td>
</tr>
<tr style="page-break-inside:avoid;">
<td style="width:63.9pt;border:solid windowtext 1pt;border-top:none;padding:0;" valign="top" width="85"></td>
<td style="width:65.4pt;border-top:none;border-left:none;border-bottom:solid windowtext 1pt;border-right:solid windowtext 1pt;padding:0;" valign="top" width="87"></td>
<td style="width:65.25pt;border-top:none;border-left:none;border-bottom:solid windowtext 1pt;border-right:solid windowtext 1pt;padding:0;" valign="top" width="87">
<p class="MsoNormal" style="margin-bottom:6pt;">Sadtu</p>
</td>
<td style="width:65.45pt;border-top:none;border-left:none;border-bottom:solid windowtext 1pt;border-right:solid windowtext 1pt;padding:0;" valign="top" width="87">
<p class="MsoNormal" style="margin-bottom:6pt;">251276</p>
</td>
<td style="width:65.05pt;border-top:none;border-left:none;border-bottom:solid windowtext 1pt;border-right:solid windowtext 1pt;padding:0;" valign="top" width="87">
<p class="MsoNormal" style="margin-bottom:6pt;">Sasawu</p>
</td>
<td style="width:65.4pt;border-top:none;border-left:none;border-bottom:solid windowtext 1pt;border-right:solid windowtext 1pt;padding:0;" valign="top" width="87">
<p class="MsoNormal" style="margin-bottom:6pt;">67402</p>
</td>
</tr>
<tr style="page-break-inside:avoid;">
<td style="width:63.9pt;border:solid windowtext 1pt;border-top:none;padding:0;" valign="top" width="85"></td>
<td style="width:65.4pt;border-top:none;border-left:none;border-bottom:solid windowtext 1pt;border-right:solid windowtext 1pt;padding:0;" valign="top" width="87"></td>
<td style="width:65.25pt;border-top:none;border-left:none;border-bottom:solid windowtext 1pt;border-right:solid windowtext 1pt;padding:0;" valign="top" width="87"></td>
<td style="width:65.45pt;border-top:none;border-left:none;border-bottom:solid windowtext 1pt;border-right:solid windowtext 1pt;padding:0;" valign="top" width="87"></td>
<td style="width:65.05pt;border-top:none;border-left:none;border-bottom:solid windowtext 1pt;border-right:solid windowtext 1pt;padding:0;" valign="top" width="87">
<p class="MsoNormal" style="margin-bottom:6pt;">Sasbo</p>
</td>
<td style="width:65.4pt;border-top:none;border-left:none;border-bottom:solid windowtext 1pt;border-right:solid windowtext 1pt;padding:0;" valign="top" width="87">
<p class="MsoNormal" style="margin-bottom:6pt;">7074</p>
</td>
</tr>
<tr style="page-break-inside:avoid;">
<td style="width:63.9pt;border:solid windowtext 1pt;border-top:none;padding:0;" valign="top" width="85"></td>
<td style="width:65.4pt;border-top:none;border-left:none;border-bottom:solid windowtext 1pt;border-right:solid windowtext 1pt;padding:0;" valign="top" width="87"></td>
<td style="width:65.25pt;border-top:none;border-left:none;border-bottom:solid windowtext 1pt;border-right:solid windowtext 1pt;padding:0;" valign="top" width="87"></td>
<td style="width:65.45pt;border-top:none;border-left:none;border-bottom:solid windowtext 1pt;border-right:solid windowtext 1pt;padding:0;" valign="top" width="87"></td>
<td style="width:65.05pt;border-top:none;border-left:none;border-bottom:solid windowtext 1pt;border-right:solid windowtext 1pt;padding:0;" valign="top" width="87">
<p class="MsoNormal" style="margin-bottom:6pt;">Sactwu</p>
</td>
<td style="width:65.4pt;border-top:none;border-left:none;border-bottom:solid windowtext 1pt;border-right:solid windowtext 1pt;padding:0;" valign="top" width="87">
<p class="MsoNormal" style="margin-bottom:6pt;">85025</p>
</td>
</tr>
<tr style="page-break-inside:avoid;">
<td style="width:63.9pt;border:solid windowtext 1pt;border-top:none;padding:0;" valign="top" width="85">
<p class="MsoNormal" style="margin-bottom:6pt;"><b>Total members</b></p>
</td>
<td style="width:65.4pt;border-top:none;border-left:none;border-bottom:solid windowtext 1pt;border-right:solid windowtext 1pt;padding:0;" valign="top" width="87">
<p class="MsoNormal" style="margin-bottom:6pt;"><b>418029</b></p>
</td>
<td style="width:65.25pt;border-top:none;border-left:none;border-bottom:solid windowtext 1pt;border-right:solid windowtext 1pt;padding:0;" valign="top" width="87">
<p class="MsoNormal" style="margin-bottom:6pt;"><b> </b></p>
</td>
<td style="width:65.45pt;border-top:none;border-left:none;border-bottom:solid windowtext 1pt;border-right:solid windowtext 1pt;padding:0;" valign="top" width="87">
<p class="MsoNormal" style="margin-bottom:6pt;"><b>820979</b></p>
</td>
<td style="width:65.05pt;border-top:none;border-left:none;border-bottom:solid windowtext 1pt;border-right:solid windowtext 1pt;padding:0;" valign="top" width="87">
<p class="MsoNormal" style="margin-bottom:6pt;"><b> </b></p>
</td>
<td style="width:65.4pt;border-top:none;border-left:none;border-bottom:solid windowtext 1pt;border-right:solid windowtext 1pt;padding:0;" valign="top" width="87">
<p class="MsoNormal" style="margin-bottom:6pt;"><b>212319</b></p>
</td>
</tr>
</tbody>
</table>
</div>
<p class="MsoNormal" style="margin-bottom:6pt;"><b><i>So what?</i></b></p>
<p class="MsoNormal" style="margin-bottom:6pt;"><i>This morning an opinion column written by this analyst exploring attempts by the Zuma allies to get rid of Zwelinzima Vavi will be published in the online newspaper The Daily Maverick. Here is an extract that contains the most salient “so what?” for financial markets:</i></p>
<p class="MsoNormal" style="margin-bottom:6pt;"><i> “Shafting Vavi could conceivably split Cosatu – and even lead to the formation of a new left or worker-based political party. Take Numsa, all the other trade unions and bits of trade unions that support Vavi and add the individuals and organisations Vavi has been accused of flirting with (in the National Anti-Corruption Forum and earlier in the Civil Society Conference &#8211; October 27 2010) and dig out all those leftists long ago alienated from the ANC (think the brilliant and creative Zackie Achmat and those connected to him); go wild and add Amcu and some not yet indiscernible political formation emerging around Amcu or even around Agang … and you have the grounds for a real and serious challenge to the ANC. At the very least shafting of Vavi might not equal clearing Cosatu of his influence. It might equal clearing the ruling alliance of Cosatu &#8230; leaving Zuma Incorporated clinging to a fading Num and a few cronies.… it is a risky game. One of the by-products could be another catastrophic year on the industrial relations front. If Cosatu splits, it won’t be a neat division between different unions … the fault lines will run through individual unions and the disturbances generated by the Amcu/Num contest could become a model for the whole economy.”</i></p>
<p class="MsoNormal" style="margin-bottom:6pt;"><span style="color:#000000;"><b>The SACP joins criticism of the National Planning Commission – final nails in Trevor Manuel’s coffin</b></span></p>
<p class="MsoNormal" style="margin-bottom:6pt;">To add to the general factional confusion in the Ruling Alliance, close Zuma allies, the SACP has published a discussion paper that has a “sharp, pointed and nuanced interrogation” of the NPC (which produced the much vaunted, in financial markets and by business, National Development Plan).  “We cannot have a free-floating NPC, with an apparent presidential endorsement and using the budget of the presidency” says the SACP discussion document.</p>
<p class="MsoNormal" style="margin-bottom:6pt;"><b><i>So what?</i></b></p>
<p class="MsoNormal" style="margin-bottom:6pt;"><i>Actually, to my surprise, I agree with the main SACP criticism: the plan “does not have a strong organic link into government and its diverse planning apparatuses and processes.” Without such links, the NDP was always going to be a fig-leaf covering up the paucity of any actually strategy for economic development in the Zuma administration. The SACP can’t hide the fact that what it mostly dislikes about the NPC or the NDP is business’ participation in the formulation of the ideas and that Cosatu is starting to come out ever more critical of the document. I expect the NDP to go the way of a myriad similar (although never quite as thoroughly and carefully wrought) such plans from South Africa’s recent past. </i></p>
<p class="MsoNormal" style="margin-bottom:6pt;"><span style="color:#000000;"><b>Bits and pieces</b></span></p>
<ul style="margin-top:0;" type="disc">
<li class="MsoNormal" style="margin-bottom:6pt;">City Press spent a day in the DRC’s Eastern Region with the M23 guerrilla movement, meeting them in Bunagana on the Rwanda border. The UN is deploying a brigade as a result of UN resolution 2008, which accuses the M23 and other rebels of mass rape, murder sprees and of recruiting child soldiers. The M23 insisted to City Press that Khulubuse Zuma (a nephew of the president) won valuable oil concession on the shores of Lake Edward and in exchange Jacob Zuma has committed “elite troops and top-drawer fire power to the UN force to smash M23.” The M23 guerrilla movement is trying to play into South African politics by accusing Zuma &#8211; sounds like one group of wolves trying to accuse another to cover up their own predatory behaviour. I have seen no evidence to back the idea that the troops are being sent to protect the Zuma family&#8217;s interests.</li>
<li class="MsoNormal" style="margin-bottom:6pt;">The Dina Pule saga continues to become ever more deeply incomprehensible. City Press claims Dina Pule  has alleged that famous soccer club owner Jomo Sono is behind a smear campaign against her to attempt to blackmail her into awarding his (Sono’s) company a the multi-billion rand set-top-box decoder contract. Pule is due to appear before Parliaments ethics and member’s interests committee on Thursday or Friday and the sooner political clarity comes to the telecommunications sector, the better.</li>
<li class="MsoNormal" style="margin-bottom:6pt;">Regional leaders are expected to hold a summit soon to discuss Zimbabwe’s readiness to hold elections, amid warnings that time is running out to ensure the poll is free, fair and credible – Sunday Independent. Lindiwe Zulu, President Jacob Zuma’s foreign policy adviser and a key member of his facilitation team in Zimbabwe confirmed that Zanu-PF had recently thrown up obstacles to ‘proper monitoring’ of the Zimbabwe negotiations. “But she said her team had persuaded Zanu-PF that as SADC was supervising negotiations, it had the right and obligation to attend whatever Jomic (Joint Monitoring and Implementation Committee) meeting it chose to. Zanu-PF conceded the point” &#8211; Sunday Independent.</li>
<li class="MsoNormal" style="margin-bottom:6pt;">Senior managers at PetroSA have been accused in the Mail &amp; Guardian of conspiring to loot billions from the national oil company. It is a big story, dense with details and looks extremely damaging to those who stand accused. I will be monitoring the implications.</li>
</ul>
<br />Filed under: <a href='http://nicborain.wordpress.com/category/african-national-congress/'>African National Congress</a>, <a href='http://nicborain.wordpress.com/category/alliance-politics/'>Alliance Politics</a>, <a href='http://nicborain.wordpress.com/category/cosatu/'>Cosatu</a>, <a href='http://nicborain.wordpress.com/category/jacob-zuma/'>Jacob Zuma</a>, <a href='http://nicborain.wordpress.com/category/labour-market/'>labour market</a>, <a href='http://nicborain.wordpress.com/category/uncategorized/'>Uncategorized</a>, <a href='http://nicborain.wordpress.com/category/vavi/'>Vavi</a>  <a rel="nofollow" href="http://feeds.wordpress.com/1.0/gocomments/nicborain.wordpress.com/2521/"><img alt="" border="0" src="http://feeds.wordpress.com/1.0/comments/nicborain.wordpress.com/2521/" /></a> <img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=nicborain.wordpress.com&#038;blog=6434493&#038;post=2521&#038;subd=nicborain&#038;ref=&#038;feed=1" width="1" height="1" />]]></content:encoded>
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		<slash:comments>4</slash:comments>
	
		<media:content url="http://2.gravatar.com/avatar/bff63e7b90e5606edd839c4db3f678b3?s=96&#38;d=identicon&#38;r=G" medium="image">
			<media:title type="html">nicborain</media:title>
		</media:content>

		<media:content url="http://nicborain.files.wordpress.com/2013/05/first-politics-scan-001.jpg?w=490" medium="image">
			<media:title type="html">Graph above – number of people living on less than $2 a day</media:title>
		</media:content>

		<media:content url="http://nicborain.files.wordpress.com/2013/05/political-news-eductation-reversed.jpg?w=490" medium="image">
			<media:title type="html">Graph above – the (not so gradual) roll-back of Bantu Education – the number of Blacks passing matric grows more in response to changing economic requirement of the labour force.</media:title>
		</media:content>

		<media:content url="http://nicborain.files.wordpress.com/2013/05/three-politics-stuff-001-001.jpg?w=490" medium="image">
			<media:title type="html">Graph above – enrolment in tertiary education – significant changes but a long way to go. Notice the growth in African share.</media:title>
		</media:content>

		<media:content url="http://nicborain.files.wordpress.com/2013/05/three-politics-stuff-001-002.jpg?w=490" medium="image" />

		<media:content url="http://nicborain.files.wordpress.com/2013/05/asset-weath.jpg?w=490" medium="image">
			<media:title type="html">Graph above – the middle class has grown (as far as I can make out from the poorly phrased explanation, this is LSMs 1-10 and how they have fared (grown or shrunk) since 1994 – indicating growth of middle class: bars six and seven.</media:title>
		</media:content>

		<media:content url="http://nicborain.files.wordpress.com/2013/05/jse2.jpg?w=490" medium="image">
			<media:title type="html">Graph above: the demographics of wealth ownership improve as everyone gets richer – whites still streets ahead in the stakes and foreign ownership is an interesting outlier.</media:title>
		</media:content>
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		<item>
		<title>Cosatu&#8217;s splitting headache, the ANC and DA try on new party dresses and those awful Mandelas</title>
		<link>http://nicborain.wordpress.com/2013/04/24/cosatus-splitting-headache-the-anc-and-da-try-on-new-party-dresses-and-those-awful-mandelas/</link>
		<comments>http://nicborain.wordpress.com/2013/04/24/cosatus-splitting-headache-the-anc-and-da-try-on-new-party-dresses-and-those-awful-mandelas/#comments</comments>
		<pubDate>Wed, 24 Apr 2013 07:51:45 +0000</pubDate>
		<dc:creator>nicborain</dc:creator>
				<category><![CDATA[African National Congress]]></category>
		<category><![CDATA[Alliance Politics]]></category>
		<category><![CDATA[business]]></category>
		<category><![CDATA[Corruption]]></category>
		<category><![CDATA[Cosatu]]></category>
		<category><![CDATA[Democratic Alliance]]></category>
		<category><![CDATA[dirty tricks]]></category>
		<category><![CDATA[Gwede Mantashe]]></category>
		<category><![CDATA[Helen Zille]]></category>
		<category><![CDATA[History]]></category>
		<category><![CDATA[industrial relations]]></category>
		<category><![CDATA[Jacob Zuma]]></category>
		<category><![CDATA[labour market]]></category>
		<category><![CDATA[public service]]></category>
		<category><![CDATA[South African government]]></category>
		<category><![CDATA[Strike]]></category>
		<category><![CDATA[Vavi]]></category>

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		<description><![CDATA[In high anxiety at my failure to publish here for several weeks (what with 12 days visiting fund managers in the UK and Europe and new commitments to the Daily Maverick &#8211; see here and here for the first two of those) I have decided to again post a modified version of my usually bespoke  [&#8230;]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=nicborain.wordpress.com&#038;blog=6434493&#038;post=2504&#038;subd=nicborain&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
				<content:encoded><![CDATA[<p>In high anxiety at my failure to publish here for several weeks (what with 12 days visiting fund managers in the UK and Europe and new commitments to the Daily Maverick &#8211; see <a href="http://www.dailymaverick.co.za/opinionista/2013-03-19-deep-blue-impenetrable-mysteries-in-south-african-politics/#.UXd61kqrpX8">here </a>and <a href="http://www.dailymaverick.co.za/opinionista/2013-04-04-deep-blue-what-is-to-be-done/#.UXd7IkqrpX8">here </a>for the first two of those) I have decided to again post a modified version of my usually bespoke  &#8216;SA Political news commentary&#8217; &#8230; to show willing; to demonstrate that I am not entirely unembarrassed that my last post, which was also a news commentary, was on March 18.</p>
<p>Perhaps I am edging towards closing down this blog &#8230; but I am not quite done yet, and for those who have stuck with me this long, I thank you.</p>
<p>So here,  written to a deadline of 06h30 yesterday, slightly modified for my hanging-by-a-thread website:</p>
<h3>SA Political News update 23/04/2013</h3>
<p class="MsoNormal"><span style="color:#000000;"><b>Cosatu and the ruling alliance: corruption claims and counterclaims</b></span></p>
<p>According to the <i>Mail &amp; Guardian</i> (April 19-25), the battle for control of Cosatu is becoming ever more vicious. The article states that behind the noise is an apparent attempt by the ANC to close down a powerful left faction in Cosatu that has been critical of both corruption and the alleged adoption of ‘pro-business’ policies by the ANC and government. The main issues over which the battle is playing out are:</p>
<ul style="margin-top:0;" type="disc">
<li class="MsoNormal" style="margin-bottom:6pt;">Allegations made (according to the M&amp;G) by “an informal caucus … of senior leaders from Nehawu, the NUM, Popcru, Sadtu, Cepawu [they mean CEPPWAWU, I think - ed], the SACP and the ANC<a title="" href="#_ftn1" name="_ftnref1"><span class="MsoFootnoteReference"><span class="MsoFootnoteReference"><span lang="EN-GB" style="font-size:10pt;font-family:'Arial', 'sans-serif';">[1]</span></span></span></a>” that Zwelinzima Vavi, the popular Cosatu Secretary General, has engaged in corrupt activity and is disloyal to the ANC-led alliance, including by failing to adequately support Jacob Zuma for re-election at Mangaung.</li>
<li class="MsoNormal" style="margin-bottom:6pt;">A flood of accusations made through the Cosatu linked NGO Corruption Watch that many of the leaders of unions involved in attacking Vavi are themselves corrupt – <i>Mail &amp; Guardian in a story that works more by insinuation rather than actual content &#8211; see <a href="http://mg.co.za/article/2013-04-19-00-cosatu-leadership-battle-heats-up-with-corruption-probe-into-affiliates">here</a>  for the story that was later denied by Corruption watch <a href="http://mg.co.za/article/2013-04-23-corruption-watch-denies-allegations-of-cosatu-investigation">here</a>).<br />
</i></li>
<li class="MsoNormal" style="margin-bottom:6pt;">The proposal made by Fawu (Food and Allied Workers Union) for a special Cosatu congress to resolve this issue, opposed by the group named in the first bullet, but supported by Numsa, Samwu and several smaller unions<a title="" href="#_ftn2" name="_ftnref2"><span class="MsoFootnoteReference"><span class="MsoFootnoteReference"><span lang="EN-GB" style="font-size:10pt;font-family:'Arial', 'sans-serif';">[2]</span></span></span></a>.</li>
<li class="MsoNormal" style="margin-bottom:6pt;">Support for and against the National Development Plan.</li>
</ul>
<p class="MsoNormal" style="margin-bottom:3pt;"><b><i>So what?</i></b></p>
<p class="MsoNormal" style="margin-bottom:6pt;"><i>Business might be tempted to fold its arms and sit back and delight that the old ‘thorn in the side’ Cosatu is being riven by tension. However, it is worth recalling that some industrial relations consultants also delighted in the emergence of Amcu in the platinum sector as a counter to Num for similar reasons – and look how that played out. The serious political conflict in Cosatu could as easily result in higher levels of labour unrest, with higher levels of unpredictability, in a wide variety of industries than in a generally more compliant labour movement. Several multi-year wage agreements are coming up for review before the end of this year (including in the automobile, chemical, gold mining, coal mining, retail motor industry and tyre sectors – which historically have been trendsetters &#8211; </i><em>Business Times</em><i>). Add to this my uncertainty as to whether the tight three-year public sector wage agreement set last year will hold under strain caused by a combination of:</i></p>
<ul style="margin-top:0;" type="disc">
<li class="MsoNormal" style="margin-bottom:6pt;"><i>the (welcome) reforming zeal of Public Service and Administration Minister Lindiwe Sisulu, </i></li>
<li class="MsoNormal" style="margin-bottom:6pt;"><i>government’s apparent attempt to roll back the power of the South African Democratic Teachers Union, and</i></li>
<li class="MsoNormal" style="margin-bottom:6pt;"><i>the generally difficult economic circumstances for union members, </i></li>
<li class="MsoNormal" style="margin-bottom:6pt;"><em>the successes of the wildcat strikes, particularly in the platinum sector last year, perhaps having established a new baseline for increase expectation throughout the economy</em></li>
</ul>
<p class="MsoNormal" style="margin-bottom:6pt;"><i>and it is not inconceivable that we could have another year of potentially devastating labour unrest. </i></p>
<p class="MsoNormal" style="margin-bottom:6pt;"><i>If the government’s (and the ANC’s) intention was to have a showdown with organised labour over economic growth and stability that would be one thing. But I suspect that the evident intervention in Cosatu is based on the sectarian interests at the ruling faction of the alliance rather than in any real desire to pursue the national good. If that faction faction successfully expels Vavi they might precipitate a split in Cosatu and the long awaited formation of a new &#8216;left&#8217; political formation &#8230; and just by the act of pushing, through what appears to be a dirty tricks campaign, for this outcome the ruling faction risks rapidly escalating labour unrest.<br />
</i></p>
<p class="MsoNormal" style="margin-bottom:6pt;"><span style="color:#000000;"><b>The DA and the ANC try on their best dresses (or maybe not)  for Election 2014</b></span></p>
<p class="MsoNormal" style="margin-bottom:6pt;">The DA has launched a campaign attempting to burnish its anti-apartheid credentials, including publishing a pamphlet with a picture of Nelson Mandela embracing deceased party stalwart Helen Suzman under the caption: “We played our part in opposing apartheid”.</p>
<p class="MsoNormal" style="margin-bottom:6pt;">At the same time, the <i>Mail &amp; Guardian</i> has published excerpts of what it calls ‘draft DA election material’ which explicitly compares the ANC to the National Party. The <i>M&amp;G</i>’s quotes from the draft document include the arguments that under Zuma’s ANC there is a “rise of Zulu nationalism and racist rhetoric” and “as was the case with apartheid, the ANC is using the police to suppress criticism of its government”.</p>
<p class="MsoNormal" style="margin-bottom:6pt;">In the <i>City Press</i> and <i>Sunday Independent</i>, the ANC secretary general Gwede Mantashe has separate opinion pieces that argue that the DA’s attempt to appropriate Nelson Mandela is “an abuse of the human and humble character of this icon”. He adds that the DA “remains a brazen advocate for white domination and privilege, and for elaborate schemes for its retention in the guise of liberal policies”.</p>
<p class="MsoNormal" style="margin-bottom:6pt;"><b><i>So what?</i></b></p>
<p class="MsoNormal" style="margin-bottom:6pt;"><i>The general election next year is likely to be messy and disruptive – sustaining the apparently endless flow of unsettling news coming out of South Africa. From this far out it appears possible that the ANC will be arguing that the electoral issues are essentially identical to what they were in 1994 (white domination and the legacy of apartheid) and that the DA will be arguing that that is just an excuse for delivery failure – it would be difficult to conjure up a more divisive and unhelpful framing of the issues 20 years after the first democratic election.</i></p>
<p class="MsoNormal" style="margin-bottom:6pt;"><span style="color:#000000;"><b>The unravelling of the Mandela legacy</b></span></p>
<p class="MsoNormal" style="margin-bottom:6pt;">The weeklies have a flood of stories that pick away at the fabric of the Mandela story. A reality TV show “<i>Being Mandela</i>” is reviewed in the <i>Sunday Times</i> under the heading “Opening up the canned Mandelas – comic <a href="http://en.wikipedia.org/wiki/Kugel">kugels</a><a title="" href="#_ftn3" name="_ftnref3"><span class="MsoFootnoteReference"><span class="MsoFootnoteReference"><span lang="EN-GB" style="font-size:10pt;font-family:'Arial', 'sans-serif';">[3]</span></span></span></a> help deflate the myth”. The show “unveils the vacuous, pampered lives of two of Nelson Mandela’s grand-daughters, Zaziwe Dlamini-Manaway and Swati Dlamini” – <i>Sunday Times</i>.</p>
<p class="MsoNormal" style="margin-bottom:6pt;">The <i>Sunday Independent</i> leads with a review of “struggle stalwart” Amina Cachalia’s new book “<i>When Hope and History Rhyme</i>” in which, among many other matters, she reveals aspects of her own alleged romantic relationship with Nelson Mandela post his marriage to Graça Machel.</p>
<p class="MsoNormal" style="margin-bottom:6pt;">All of this comes as a bitter fight among Mandela’s children (with, among others, Nelson Mandela nominees George Bizos and Tokyo Sexwale) for control of various trusts that Nelson Mandela set up on his children’s behalf comes to a head in the Johannesburg High Court – <i>The Sunday Tribune</i>.</p>
<p class="MsoNormal" style="margin-bottom:6pt;"><b><i>So what?</i></b><i> </i></p>
<p class="MsoNormal" style="margin-bottom:6pt;"><i>There may be some inherent advantages to the exposing of myths and legends as … myths and legends &#8211; but there really appears to be no upside to this depressing deflation. None of these stories changes the reality of the 94 year old South African former president’s contribution to the South African democracy and state-craft in general, but the incessant exposure does add to the gathering gloom around the South African story.</i></p>
<p class="MsoNormal" style="margin-bottom:6pt;"><b><span lang="EN-GB" style="color:#339966;">Bits and pieces</span></b></p>
<ul style="margin-top:0;" type="disc">
<li class="MsoNormal" style="margin-bottom:6pt;">The Youth Employment Accord has finally been signed after three years of squabbling in the National Economic Development and Labour council (Nedlac). Not unexpectedly, it does not include a youth wage subsidy in the form of a tax-break for companies employing first time youth workers. Frankly, at first glance, the accord, as reported in the <i>Sunday Independent, Sunday Times</i> and <i>City Press</i> appears vague enough to leave some confusion as to how it might result in its proposed creation of 5 million jobs for youth by 2020. No real surprises there.</li>
<li class="MsoNormal" style="margin-bottom:6pt;">The weeklies were full of scholarly &#8211; and not so scholarly &#8211; debate about the resignation of Judicial Services Council member Izak Smuts. The debate boils down to whether there is a tension between the quality of judicial appointments and the need to make the judiciary more demographically representative. This is an intrinsically South African debate that cuts across every sector of society and will likely be with us for many years to come – for better or for worse.</li>
<li class="MsoNormal" style="margin-bottom:6pt;">ANC MP, Ben Turok, explains in the <i>Sunday Times</i> the terms of reference and limitation of the nine member “inquisitorial” panel appointed by parliament to investigate the “ethical conduct and conflicts of interest, potential or otherwise” of Communications Minister Dina Pule with regard to the various allegations that she has allowed her romantic partner to make significant capital out of her ministerial post. That parliament is investigating this matter can only be a good &#8211; albeit long overdue – thing.</li>
</ul>
<div>
<hr align="left" size="1" width="33%" />
<div id="ftn1">
<p class="MsoFootnoteText"><a title="" href="#_ftnref1" name="_ftn1"><span class="MsoFootnoteReference"><span class="MsoFootnoteReference"><span lang="EN-GB" style="font-size:10pt;font-family:'Arial', 'sans-serif';">[1]</span></span></span></a> In order in which it appears in the quote, and supposedly constituting an <i>anti-Vavi, pro-NDP, pro Zuma </i> faction: the National Education Health and Allied Workers’ Union, the National Union of Mineworkers, the Police and Prison Civil Rights Union, the Chemical Energy Paper Printing Wood and Allied Workers Union, the South African Communist Party and the African National Congress</p>
</div>
<div id="ftn2">
<p class="MsoFootnoteText"><a title="" href="#_ftnref2" name="_ftn2"><span class="MsoFootnoteReference"><span class="MsoFootnoteReference"><span lang="EN-GB" style="font-size:10pt;font-family:'Arial', 'sans-serif';">[2]</span></span></span></a> And this group, supposedly constituting the <i>pro-Vavi, anti-NDP faction, anti Zuma</i> faction: National Union of Metal Workers of South Africa and the South African Municipal Workers Union (plus a host of smaller unions including the Food and Allied Workers union).</p>
<p class="MsoFootnoteText">(Note for both footnotes 1 and 2 &#8211; it is undoubtedly more complicated than this, but we need to start somewhere to attempt to make sense of the chaos.)</p>
</div>
<div id="ftn3">
<p class="MsoFootnoteText"><a title="" href="#_ftnref3" name="_ftn3"><span class="MsoFootnoteReference"><span class="MsoFootnoteReference"><span lang="EN-GB" style="font-size:10pt;font-family:'Arial', 'sans-serif';">[3]</span></span></span></a> Wikipedia (accessed 22/04/2013) explains the use of this term in South African slang as follows: <i>“Amongst South African Jews, the word &#8220;kugel&#8221; was used by the elder generation as a term for a young Jewish woman who forsook traditional Jewish dress values in favour of those of the ostentatiously wealthy, becoming overly materialistic and over groomed, the kugel being a plain pudding garnished as a delicacy. The women thus described made light of the term and it has since become an amusing rather than derogatory slang term in South African English, referring to a materialistic young woman.”</i></p>
</div>
</div>
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		<title>Zuma&#8217;s brittle grip tightens</title>
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		<pubDate>Mon, 18 Mar 2013 09:56:41 +0000</pubDate>
		<dc:creator>nicborain</dc:creator>
				<category><![CDATA[African National Congress]]></category>
		<category><![CDATA[Alliance Politics]]></category>
		<category><![CDATA[ANCYL]]></category>
		<category><![CDATA[Corruption]]></category>
		<category><![CDATA[Cosatu]]></category>
		<category><![CDATA[financial markets]]></category>
		<category><![CDATA[Gwede Mantashe]]></category>
		<category><![CDATA[Jacob Zuma]]></category>
		<category><![CDATA[Julius Malema]]></category>
		<category><![CDATA[Mangaung]]></category>
		<category><![CDATA[Media]]></category>
		<category><![CDATA[Nationalisation]]></category>
		<category><![CDATA[Nkandla]]></category>
		<category><![CDATA[opposition politics]]></category>
		<category><![CDATA[SACP]]></category>
		<category><![CDATA[Vavi]]></category>

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		<description><![CDATA[Early on Monday mornings I send my clients a review of the previous week&#8217;s political news which might be of relevance to financial markets. This morning I thought the issues were of more general interest. Thus &#8230; Summary: It is difficult not to see the main items in this review as connected: The ANC yesterday [&#8230;]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=nicborain.wordpress.com&#038;blog=6434493&#038;post=2494&#038;subd=nicborain&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
				<content:encoded><![CDATA[<p>Early on Monday mornings I send my clients a review of the previous week&#8217;s political news which might be of relevance to financial markets.</p>
<p>This morning I thought the issues were of more general interest.</p>
<p>Thus &#8230;</p>
<h4>Summary:</h4>
<p><b>It is difficult not to see the main items in this review as connected:</b></p>
<ul>
<li><b>The ANC yesterday disbanded its Youth League’s executive and the executive of its Limpopo provincial structure – both epicentres of the unsuccessful campaign against Zuma in the lead up to Mangaung;</b></li>
<li><b>An investigation into Cosatu secretary general Zwelinzima Vavi’s affairs and political loyalties deepens and widens – although, just because it is a stitch-up doesn’t mean there is no fire within the smoke;</b></li>
<li><b>Zuma’s approval rating among city dwellers drops to an all-time low and disapproval ratings rises to an all-time high.</b></li>
</ul>
<h4>Main body text:</h4>
<p><b>ANC disbands its Youth League executive soon after axing its Limpopo Provincial Executive Committee<br />
</b></p>
<p>Yesterday, it was reported that at its 4 day <i>legotla <a title="" href="#_ftn1"><b>[1]</b></a></i>, the ANC National Executive Committee disbanded, as expected, the Provincial Executive Committee of the party in Limpopo. More surprisingly the NEC of the ANC then went on to axe the NEC of the ANC Youth League – which most observers had thought abased itself adequately to Jacob Zuma after failing to unseat him at the Mangaung national conference. (Note I am reliant on news reports for this &#8230; the ANC NEC is due to hold a press conference at 12h00 today where it will give a fuller report.)</p>
<p><b><i>So what</i></b></p>
<p><i>The Limpopo ANC and the ANC Youth League were the launching pads of the challenge against Jacob Zuma that had been led by Julius Malema. Disguising itself behind the ‘nationalisation of mines’ call and funding itself through tender abuse in Limpopo the challenge peaked in mid-to-late 2011, just before Julius Malema was suspended. While the leaders of the ANC Youth League were clearly surprised by their axing yesterday, they can probably count themselves lucky that they are not being taken down the same path as their erstwhile leader Julius Malema, which might well end in prison for corruption charges.</i></p>
<p><i>While the Limpopo ANC, and to a lesser degree the ANC Youth League NEC, were riddled with corruption, it would be a very generous interpretation of what happened yesterday to see it as a “clean-up” of the ruling party. The  more appropriate prism would be to understand this as an attempt to get rid of centres of resistance to the leadership of Jacob Zuma and the faction he represents. In a less jaundiced view, it is also an attempt to establish a basic degree of coherence in the party before the national elections which will be held midyear 2014.</i></p>
<p><b>Cosatu – 3 commissions to investigate Vavi </b></p>
<p>Zwelinzima Vavi is facing 3 simultaneous commissions into aspects of the criticism that members of Cosatu’s national executive committee made against him two weeks ago – including that he has been involved in corrupt activity and that he is disloyal to the ANC. This comes against the backdrop of ANC secretary general, Gwede Mantashe, attacking Cosatu for failing to defend the ANC against “a neoliberal agenda” and he has warned that anarchy is taking root in Cosatu: “my conclusion is that Cosatu is on a dangerous downward slope” – (Mail &amp; Guardian March 15). (This added after publication &#8211; Carol Paton, in her excellent <a href="http://www.bdlive.co.za/opinion/2013/03/18/politics--not-corruption--is-biggest-threat-to-vavis-future">article </a>in Business Day about this matter a few hours ago said: &#8220;One of the most distasteful dimensions of Cosatu’s internal fight has been the partial role played by several journalists, who have published information from parties to the conflict designed to smear Vavi. For example, allegations have appeared in the press to the effect that Vavi sold Cosatu’s former headquarters for R10m less than the market price. But such a direct allegation has not been made in a Cosatu meeting.</p>
<p><b><i>So what?</i></b></p>
<p><i>The answer is best provided by a quote from “a senior Cosatu leader” in the same article: “All this is a smoke screen. The main cause of divisions in Cosatu is ANC and SACP politics. The two organisations are trying hard to capture Cosatu, but Vavi is the obstacle. He is the only one prepared to defend the interest of workers. Dealing with him will ensure that they capture the federation.” </i></p>
<p><i>Not unlike the decision by the ANC NEC to close down internal opposition in Limpopo and in the Youth League, at least part of what is happening in Cosatu is an attempt to close down criticism of Zuma (especially after Vavi called for an investigation into the R230 million state spending on Zuma’s home in Nkandla) and criticism of the ANC more generally. This is the Nkandla faction crushing the last vestiges of the attempts to unseat Zuma at Mangaung – as well as an attempt to establish coherency in the ruling alliance in the lead-up to national elections next year.</i></p>
<p><i>(The allegations against Vavi – aside from ‘collusion with opposition’ parties – includes that he sold Cosatu’s old head-office for R10 million less than its market value and that he awarded a tender to a company at which his stepdaughter was employed. Just because there are other agendas at play, says nothing of the veracity or otherwise of these charges. Vavi himself has welcomed the commissions, stating that he believes they will clear him of all charges – although, interestingly, he attempted, unsuccessfully, to have ANC stalwart Pallo Jordan and Minister of Economic Development, Ebrahim Patel as commission leaders.)<br />
</i></p>
<p>(This added after publication: Carol Paton writing in <a href="http://www.bdlive.co.za/opinion/2013/03/18/politics--not-corruption--is-biggest-threat-to-vavis-future">Business Day</a> argued a few hours ago as follows: &#8220;One of the most distasteful dimensions of Cosatu’s internal fight has been the partial role played by several journalists, who have published information from parties to the conflict designed to smear Vavi. For example, allegations have appeared in the press to the effect that Vavi sold Cosatu’s former headquarters for R10m less than the market price. But such a direct allegation has not been made in a Cosatu meeting.&#8221; I wish I had put that  in earlier.)</p>
<p><i> </i></p>
<p><b>Zuma approval rating among city dwellers drops to all time low </b></p>
<p>The Sunday Times reports that President Jacob Zuma’s approval rating among urban dwellers is lower than ever and his <i>disapproval</i> ratings are at their highest – and, in general, views are firming up on this matter.</p>
<div align="center">
<table border="1" cellspacing="0" cellpadding="0">
<tbody>
<tr>
<td valign="top" width="85">
<p align="center"><b>%</b></p>
</td>
<td valign="top" width="38">
<p align="center">Apr</p>
<p align="center">‘09</p>
</td>
<td valign="top" width="28">
<p align="center">Jun</p>
<p align="center">‘09</p>
</td>
<td valign="top" width="33">
<p align="center">Sep</p>
<p align="center">‘09</p>
</td>
<td valign="top" width="39">
<p align="center">Nov</p>
<p align="center">‘09</p>
</td>
<td valign="top" width="39">
<p align="center">Feb</p>
<p align="center">‘10</p>
</td>
<td valign="top" width="39">
<p align="center">May</p>
<p align="center">‘10</p>
</td>
<td valign="top" width="39">
<p align="center">Sep</p>
<p align="center">‘10</p>
</td>
<td valign="top" width="39">
<p align="center">Nov</p>
<p align="center">‘10</p>
</td>
<td valign="top" width="39">
<p align="center">Feb</p>
<p align="center">‘11</p>
</td>
<td valign="top" width="39">
<p align="center">Mar</p>
<p align="center">‘11</p>
</td>
<td valign="top" width="39">
<p align="center">Sep</p>
<p align="center">‘11</p>
</td>
<td valign="top" width="39">
<p align="center">O/N</p>
<p align="center">‘11</p>
</td>
<td valign="top" width="39">
<p align="center">Feb</p>
<p align="center">‘12</p>
</td>
<td valign="top" width="39">
<p align="center">Apr</p>
<p align="center">‘12</p>
</td>
<td valign="top" width="39">
<p align="center">Aug</p>
<p align="center">‘12</p>
</td>
<td valign="top" width="39">
<p align="center"><b>Feb</b></p>
<p align="center"><b>‘13</b></p>
</td>
</tr>
<tr>
<td valign="top" width="85">Approve</td>
<td valign="top" width="38">
<p align="center">52</p>
</td>
<td valign="top" width="28">
<p align="center">57</p>
</td>
<td valign="top" width="33">
<p align="center">53</p>
</td>
<td valign="top" width="39">
<p align="center">58</p>
</td>
<td valign="top" width="39">
<p align="center">43</p>
</td>
<td valign="top" width="39">
<p align="center">51</p>
</td>
<td valign="top" width="39">
<p align="center">42</p>
</td>
<td valign="top" width="39">
<p align="center">49</p>
</td>
<td valign="top" width="39">
<p align="center">49</p>
</td>
<td valign="top" width="39">
<p align="center">48</p>
</td>
<td valign="top" width="39">
<p align="center">45</p>
</td>
<td valign="top" width="39">
<p align="center">55</p>
</td>
<td valign="top" width="39">
<p align="center">55</p>
</td>
<td valign="top" width="39">
<p align="center">46</p>
</td>
<td valign="top" width="39">
<p align="center">48</p>
</td>
<td valign="top" width="39">
<p align="center"><b>41</b></p>
</td>
</tr>
<tr>
<td valign="top" width="85">Disapprove</td>
<td valign="top" width="38">
<p align="center">29</p>
</td>
<td valign="top" width="28">
<p align="center">13</p>
</td>
<td valign="top" width="33">
<p align="center">19</p>
</td>
<td valign="top" width="39">
<p align="center">23</p>
</td>
<td valign="top" width="39">
<p align="center">41</p>
</td>
<td valign="top" width="39">
<p align="center">33</p>
</td>
<td valign="top" width="39">
<p align="center">44</p>
</td>
<td valign="top" width="39">
<p align="center">34</p>
</td>
<td valign="top" width="39">
<p align="center">35</p>
</td>
<td valign="top" width="39">
<p align="center">38</p>
</td>
<td valign="top" width="39">
<p align="center">41</p>
</td>
<td valign="top" width="39">
<p align="center">38</p>
</td>
<td valign="top" width="39">
<p align="center">35</p>
</td>
<td valign="top" width="39">
<p align="center">46</p>
</td>
<td valign="top" width="39">
<p align="center">44</p>
</td>
<td valign="top" width="39">
<p align="center"><b>51</b></p>
</td>
</tr>
<tr>
<td valign="top" width="85">Don’t know</td>
<td valign="top" width="38">
<p align="center">19</p>
</td>
<td valign="top" width="28">
<p align="center">31</p>
</td>
<td valign="top" width="33">
<p align="center">28</p>
</td>
<td valign="top" width="39">
<p align="center">12</p>
</td>
<td valign="top" width="39">
<p align="center">17</p>
</td>
<td valign="top" width="39">
<p align="center">16</p>
</td>
<td valign="top" width="39">
<p align="center">15</p>
</td>
<td valign="top" width="39">
<p align="center">17</p>
</td>
<td valign="top" width="39">
<p align="center">16</p>
</td>
<td valign="top" width="39">
<p align="center">14</p>
</td>
<td valign="top" width="39">
<p align="center">14</p>
</td>
<td valign="top" width="39">
<p align="center">14</p>
</td>
<td valign="top" width="39">
<p align="center">10</p>
</td>
<td valign="top" width="39">
<p align="center">8</p>
</td>
<td valign="top" width="39">
<p align="center">8</p>
</td>
<td valign="top" width="39">
<p align="center"><b>9</b></p>
</td>
</tr>
<tr>
<td valign="top" width="85">Net positives</td>
<td valign="top" width="38">
<p align="center">+23</p>
</td>
<td valign="top" width="28">
<p align="center">+24</p>
</td>
<td valign="top" width="33">
<p align="center">+34</p>
</td>
<td valign="top" width="39">
<p align="center">+35</p>
</td>
<td valign="top" width="39">
<p align="center">+2</p>
</td>
<td valign="top" width="39">
<p align="center">+18</p>
</td>
<td valign="top" width="39">
<p align="center">+2</p>
</td>
<td valign="top" width="39">
<p align="center">+18</p>
</td>
<td valign="top" width="39">
<p align="center">+2</p>
</td>
<td valign="top" width="39">
<p align="center">+15</p>
</td>
<td valign="top" width="39">
<p align="center">+14</p>
</td>
<td valign="top" width="39">
<p align="center">+1</p>
</td>
<td valign="top" width="39">
<p align="center">+20</p>
</td>
<td valign="top" width="39">
<p align="center">0</p>
</td>
<td valign="top" width="39">
<p align="center">+4</p>
</td>
<td valign="top" width="39">
<p align="center"><b>-10</b></p>
</td>
</tr>
</tbody>
</table>
</div>
<p align="right"><i>Zuma’s approval ratings amongst city dwellers over time (TNS Research)</i></p>
<p>TNS conducted home interviews with “1290 blacks, 385 whites, 240 coloureds and 115 Indians and Asians.”<a title="" href="#_ftn2">[2]</a>  54% of black people were still happy with Zuma’s performance, but only 13% of whites. The president still has 64% of the vote from “younger Zulu-speaking adults, of whom 64% &#8211; down from 71% in August last year – were happy with his work” (Sunday Times).</p>
<p>An important indicator comes near the end of the story: “Zuma’s biggest drop in approval was recorded in Soweto, where the figure of 42% was the lowest since he assumed office. The Port Elizabeth figure of 22% was also an all-time low.”</p>
<p><b><i>So what?</i></b></p>
<p><i>National general elections must be held some time between April and July in 2014. For the first time “born frees” (young people born after 1994) will be eligible to vote. This first wave of born frees will consist of approximately 6 million people, “using the 76% turnout of the 2009 elections, these new voters could make up more than 20% of the vote by 2014 … for context, the Democratic Alliance won 17% of the vote in 2009. From 2014 onward, the born-frees will come in waves of just over 5-million each national election until they make up nearly half of the voting population by 2029” -  (Osiame Molefe in the online news source Daily Maverick).</i></p>
<p><i>There is growing excitement that, perhaps, this category of voter, and urban African voters more generally, might be open to political choices unthinkable only a few years ago. Much of the growing expectation in the Democratic Alliance and the energy behind Agang comes from this source. Could younger and urban voters (especially Africans) vote for a party other than the ANC in 2014?</i></p>
<p><i>Jacob Zuma has established a rigid hold on the ANC, but the TNS and other market research could indicate that it is precisely this victory that makes the ANC a less appetising choice for younger and urban voters. If Jacob Zuma leads the ANC in an election in which the ruling party gets much less than 60 % of the vote, his hard but brittle hold on the party could shatter.</i></p>
<p><i>ANC strategists are seriously worried about both the Eastern Cape (especially, but by no means exclusively, the Nelson Mandela Bay metropolitan area) and the Northern Cape. The idea of whole of the Cape (Western Cape is already in Democratic Alliance hands) in opposition hands and a party the equivalent to the Movement for Democratic Change in Zimbabwe giving the ANC a run for its money in urban areas throughout the country is a nightmare scenario.</i></p>
<p><i>Analysts have consistently been surprised at how well the ANC has performed in national elections (62.65% in April 1994, 66.35% in June 1999, 69.69% in April 2004 and 65.90% in April 2009) so treat any wild predictions with a degree of scepticism. However, the TNS survey of Jacob Zuma’s ratings is an indicator that shifts are in progress .<br />
</i></p>
<p><b>Bits and pieces</b></p>
<ul>
<li>Business Times quotes a succinct put-down by Finance Minister Pravin Gordhan of the ratings agencies: “[You must] understand that we in South Africa did not create this crisis …when … the financial sector began to create … derivatives, based on sub-prime mortgages … [they] had an AAA rating given to them by the same agencies.” Last week S&amp;P affirmed South Africa’s foreign currency sovereign credit rating at BBB and kept the outlook negative, arguing that external imbalances and underlying social problems remain.</li>
<li>All the major weeklies expressed deep levels of concern about what they see as out-of-control police violence in the country – most obviously evinced in the killing of Mozambican taxi driver Emidio Macia in Daveyton, but also brought into public focus by police commissioner Riah Phiyega’s spoon-fed testimony to the Markikana commission on Thursday last week. Police minister Nathi Mthethwa is one of Zuma’s closest allies and his department is, truly, in a parlous and dangerous state.</li>
</ul>
<div>
<hr align="left" size="1" width="33%" />
<div>
<p><a title="" href="#_ftnref1">[1]</a> A word in South African English borrowed from Sesotho, usually meaning a consultation or community meeting with government and the community or within a political party</p>
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<p><a title="" href="#_ftnref2">[2]</a> Categories and language routinely used in South Africa where the racial categorisation of the past is correctly understood to have a significant influence in the present and is routinely used in the media and academic analysis.</p>
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		<title>Against a dark backround &#8230; an occasional beam of light</title>
		<link>http://nicborain.wordpress.com/2013/02/20/against-a-dark-backround-an-occasional-beam-of-light/</link>
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		<pubDate>Wed, 20 Feb 2013 08:45:18 +0000</pubDate>
		<dc:creator>nicborain</dc:creator>
				<category><![CDATA[African National Congress]]></category>
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		<description><![CDATA[I am struggling to make up my mind whether there really is a small accumulation of good news, clearly visible against the looming night &#8230; or if I am just desperate. Today&#8217;s Business Day story by the always interesting Carol Paton looking at Manuel and Sisulu on a stern clean up the public service drive [&#8230;]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=nicborain.wordpress.com&#038;blog=6434493&#038;post=2471&#038;subd=nicborain&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
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<p>I am struggling to make up my mind whether there really is a small accumulation of good news, clearly visible against the looming night &#8230; or if I am just desperate. Today&#8217;s <a href="http://www.bdlive.co.za/national/2013/02/20/axe-hovers-over-officials-in-capable-state-drive">Business Day story</a> by the always interesting Carol Paton looking at Manuel and Sisulu on a stern <em>clean up the public service </em>drive must be positive, surely?</p>
<p>&#8230; and several points in my take on the political news in the English language weeklies from last week are postive:</p>
<h4><b>Cabinet reshuffle<br />
</b></h4>
<p>The Sunday Times says Jacob Zuma is planning to axe Dina Pule, Minister of Communications and Lulu Xingwana, Minister of Women, Children and People with Disabilities. Pule’s tenure has “limped from one scandal to another – including the questionable millions paid to her boyfriend from sponsorship money meant for the ICT Indaba last year” – Sunday Times.</p>
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<p><b><i>So what?</i></b></p>
<p><i>The Department of Communications has failed to unbundle the local loop, missed innumerable opportunities with Telkom, under-resourced the regulator Icasa and generally failed to appoint/settle/keep senior management … and has had three ministers in 3 years. Fixing this is a priority area in the National Development Plan and one of the key ‘bottlenecks’ or ‘obstacles to economic growth’ that need to be removed. So Pule’s removal has (if it actually happens) to be seen as a good thing.</i></p>
<p><i>(Interesting – to me &#8211; speculation on the side is that Zuma might move Thulas Nxesi (Public Works) to replace Angie Motshekga (Basic Education) and have Motshekga replace Xingwana. This means that Jeremy Cronin (deputy minister in Public Works) might then replace Nxesi. But, as the Sunday Times says “there are concerns in the Zuma camp about whether he (Cronin) can be relied on to protect the president from the repercussions over the controversial R206-milliion Nkandla upgrade.” </i></p>
<h4></h4>
<h4><b>Public service</b></h4>
</div>
<p>Lindiwe Sisulu (Minister of Public Service and Administration) is quoted in the Sunday times about planned amendments to the Public Service Act setting in place ways of stopping senior administrators benefiting from government contracts. She also promised a “super-director-general’ who would ensure that all heads of department adhere to performances linked reward systems. <b></b></p>
<p><b><i>So what?</i></b></p>
<p><i>Cosatu’s Zwelinzima Vavi lauded Sisulu plans, saying this would stop the “looting” of public funds by government employees. “We can only say halala (congratulations) to that!” he is quoted in the Sunday Times. I have to agree with Vavi. The biggest political failure that is actually in control of government in South Africa is the poor performance and monitoring systems – and therefore delivery failure and corruption &#8211; in government and public sector institutions. Sisulu’s intentions are to be welcomed – and she probably has the steel to follow through. So another plus.</i></p>
<h4></h4>
<h4><b>Ramphele wanted DA to be dissolved </b></h4>
<p>The Sunday Times quoted several DA members essentially claiming that Mamphela Ramphele almost joined forces with the DA, but wanted the party to be dissolved first and for her to have an equal share of a new institution. “She wanted a new political party and not to join the DA … she came with nothing but wanted an equal share” said one unnamed source.</p>
<p><b><i>So What?</i></b></p>
<p><i>The week has been beset with rumours about the impending announcement by the respected academic and business person Mamphela Ramphele that she is to set up a new opposition party. Speculation reached a climax when it was announced that she had resigned as Chairperson of Goldfieds on Wednesday last week. Ramphele would make an excellent addition to opposition parliamentary politics in South Africa – but the idea that one person, with no party structure or obvious constituency in hand, will change the South African game is hopeful at best. However, on the balance, this is undoubtedly another positive. (That’s three in a row for those who are counting.)</i></p>
<h4></h4>
<h4><b>Zimbabwe referendum</b></h4>
<p>Several of the weeklies reported that Zimbabwe’s President Robert Mugabe issued an official proclamation on Friday setting March 16 as the date for a referendum on a draft constitution. Most expressed concern that local activists felt that that gave very little time to explain the draft constitution (it took 3 years of bickering to cobble together) to voters and that the draconian Public Order and Security Act would need to be suspended or repealed before campaigning for a ‘Yes’ or a ‘No’ vote could take place. All opposition parties have  called for a referendum ‘Yes’ vote to allow the constitution to be accepted and signed into law without any further changes.</p>
<p><b><i>So What?</i></b></p>
<p><i>Zimbabwe’s stability and growth prospects impact on South Africa in a myriad ways, for example in the floods of economic refugees and the shifting size of the export and investment markets in Zimbabwe. An interesting story in the Sunday Times by senior editor Mondli Makhanya argued that Zanu-PF is likely to benefit from opposition disarray and an improving economy. “With the elections just months away, Zanu-PF is smiling and looking forward to strolling to victory. After having brazenly stolen four parliamentary and presidential elections between 2000 and 2008 Zanu-PF will not have to resort to violence and skulduggery this time.” If Makhanya is correct (which he may well be) it is going to stick in a lot of craws that through a combination of looting, patronage networks, repression and the chasing of the urban poor into the arms of the South African informal economy and welfare system, Zanu-PF might remain in power.</i></p>
<h4></h4>
<h4><b>New Iran claims hit MTN </b></h4>
<p>The jailing of Iranian born US citizen Mohammad Hajian for supplying “sensitive and potentially dangerous equipment to MTN’s mobile network in Iran” (Mail &amp; Guardian) deepens MTN’s woes in relation to its Iranian operations.</p>
<p><b><i>So what?                              </i></b></p>
<p><i>“The conviction is damning for the South African mobile giant, as it provides judicial corroboration that the company used sanctions-busting networks to beef up its technical infrastructure in Iran” (M&amp;G).<br />
</i></p>
<h4></h4>
<h4><b>State of the Nation Assessment </b></h4>
<p>Most reviews pointed to the key absence of any binding theme in Jacob Zuma’s State of the Nation Address.</p>
<p>City Press probably had the best coverage.</p>
<ul>
<li>It (CP) correctly points out that there was a specific “shift on land reform” &#8211;  with a move from “willing buyer, willing seller” to a “just and equitable” formulation.  This refers to the establishment of a “valuer-general who intervenes on behalf of the state … who then oversees land valuation …to keep the price … affordable for the state to redress” – CP quotes Gugile Nkwinti (Minister of Rural Development and Land Reform).</li>
<li>It argues that the youth wage subsidy has been swept aside and that government, business and labour in negotiations through Nedlac will announce a plan soon whereby “growth industries with young workforces will attract state support to hire the young and jobless … unskilled young people will also be offered a second chance to write their matric exams”. So no across-the-board subsidy … but a directed one, only in selected industries.</li>
<li>It picks away at the infrastructure programme and the various roles that will be played by Malusi Gigaba (Minister of Public Enterprises) and Ebrahim Patel (Minister of Economic Development). City Press interviewed the &#8216;up-and-coming&#8217; Gigaba and asked him if Ebrahim Patel had left him much of a role to play. Gigaba replied: ““Economic Development is responsible for a broader plan. My department is responsible for three big infrastructure projects: the roll out of broadband, electricity infrastructure and logistics like rail. Other departments are responsible for roads, transport and dams.”</li>
</ul>
<p><b><i>So What?</i></b></p>
<p><i>The State of the Nation address is always over-anticipated and usually bitterly lamented as not having been specific or visionary enough. This year, not unexpectedly, Zuma enumerated the successes of government and hyped the plans.  Much of what Zuma and his government will do and say in the next while will be focused on the national election in 2014 &#8211; and expectations likely to be disappointed.</i></p>
<p><b>Bits and Pieces</b></p>
<ul>
<li>City Press reports that the department of fisheries, headed by Tina Joemat Pettersson is in “total free fall” – raising serious concerns about government’s ability to conduct research required to determine quotas of ‘allowable catch’ for key species.</li>
<li>Sunday Times business section reports that industrial unrest and violence at the Medupi construction site make the “chances of the R91bn power station feeding power into South Africa’s overstretched grid by the end of this year … slim”.</li>
<li>Sunday Times reports Harmony Gold made history by making individual workers at its Kusasulethu mine sign a treaty with the company in order to lock individual workers into a contract with the company. “This is quite a revolutionary move … (it) means that individual workers can now be taken to task when stepping over the line” says Peter Major, Cadiz mining analyst. Major argues, according to the report, that if similar agreements had been put in place a year ago when trouble first started brewing on the mines at Impala Platinum, a “Marikana” might have been prevented.</li>
</ul>
<p>(Added as an afterthought: I realise I haven&#8217;t made any kind of conclusion given that the opening paragraph suggests I was going to indicate either that I am more positive than negative or vice versa. Frankly, I can&#8217;t make up my mind. Which probably makes me a fairly <a href="http://onlineslangdictionary.com/meaning-definition-of/bog-standard">bog standard</a> South African.)</p>
<br />Filed under: <a href='http://nicborain.wordpress.com/category/african-national-congress/'>African National Congress</a>, <a href='http://nicborain.wordpress.com/category/business/'>business</a>, <a href='http://nicborain.wordpress.com/category/cabinet/'>Cabinet</a>, <a href='http://nicborain.wordpress.com/category/cronin/'>Cronin</a>, <a href='http://nicborain.wordpress.com/category/democratic-alliance/'>Democratic Alliance</a>, <a href='http://nicborain.wordpress.com/category/eskom/'>Eskom</a>, <a href='http://nicborain.wordpress.com/category/jacob-zuma/'>Jacob Zuma</a>, <a href='http://nicborain.wordpress.com/category/jeremy-cronin/'>Jeremy Cronin</a>, <a href='http://nicborain.wordpress.com/category/mamphela-ramphele/'>Mamphela Ramphele</a>, <a href='http://nicborain.wordpress.com/category/media-2/'>Media</a>, <a href='http://nicborain.wordpress.com/category/nkandla/'>Nkandla</a>, <a href='http://nicborain.wordpress.com/category/opposition-politics/'>opposition politics</a>, <a href='http://nicborain.wordpress.com/category/public-infrastructure/'>public infrastructure</a>, <a href='http://nicborain.wordpress.com/category/public-service/'>public service</a>, <a href='http://nicborain.wordpress.com/category/risk/'>risk</a>, <a href='http://nicborain.wordpress.com/category/south-african-government/'>South African government</a>, <a href='http://nicborain.wordpress.com/category/the-state/'>the state</a>  <a rel="nofollow" href="http://feeds.wordpress.com/1.0/gocomments/nicborain.wordpress.com/2471/"><img alt="" border="0" src="http://feeds.wordpress.com/1.0/comments/nicborain.wordpress.com/2471/" /></a> <img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=nicborain.wordpress.com&#038;blog=6434493&#038;post=2471&#038;subd=nicborain&#038;ref=&#038;feed=1" width="1" height="1" />]]></content:encoded>
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		<title>That lingering odour &#8230;</title>
		<link>http://nicborain.wordpress.com/2013/02/19/that-lingering-odour/</link>
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		<pubDate>Tue, 19 Feb 2013 06:33:00 +0000</pubDate>
		<dc:creator>nicborain</dc:creator>
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		<description><![CDATA[In the 1980&#8242;s I unwittingly employed an apartheid police informer, Mark Behr, to work in the Institute for a Democratic Alternative for South Africa (of which I was a regional director). Behr had a serious talent &#8211; and zest &#8211; for self-promotion. But he was also bright, ambitious and charismatic and I naively believed that [&#8230;]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=nicborain.wordpress.com&#038;blog=6434493&#038;post=2157&#038;subd=nicborain&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
				<content:encoded><![CDATA[<p>In the 1980&#8242;s I unwittingly employed an apartheid police informer, Mark Behr, to work in the Institute for a Democratic Alternative for South Africa (of which I was a regional director).</p>
<p>Behr had a serious talent &#8211; and zest &#8211; for self-promotion. But he was also bright, ambitious and charismatic and I naively believed that all those characteristics together, could be harnessed for the good of the organisation, and &#8216;the struggle&#8217;<em> &#8230;</em> (I know. We really called it that.)</p>
<p>As it turned out he was already in the employ of the Dark Side &#8230;  and those who got the benefits of that self-promotion and ambition were the opposition to the anti-apartheid team.</p>
<p>Mark Behr was a lightweight apartheid agent and there is a part of me that wishes I could just put him and the sheer awfulness and banality of the apartheid security state machinery, and his role in it, behind me.</p>
<p>But unfortunately for me, someone pointed out last week that there is a Wikipedia entry on Behr that, when I accessed it on Friday (13/02/2013) said (without any cautionary remarks):</p>
<blockquote><p>&#8220;Undergoing a process of political <a title="Radicalization" href="http://en.wikipedia.org/wiki/Radicalization" target="_blank">radicalization</a> himself, he later turned <a title="Double agent" href="http://en.wikipedia.org/wiki/Double_agent" target="_blank">double agent</a> and spied on the South African government on behalf of the <a title="African National Congress" href="http://en.wikipedia.org/wiki/African_National_Congress" target="_blank">African National Congress</a>&#8220;</p></blockquote>
<p>&#8230; and further:</p>
<blockquote><p>&#8220;Professor Behr is a well respected and acknowledged international author and experienced double agent that left South Africa for a safer lifestyle in the USA.&#8221;</p></blockquote>
<p>The gradual santisation of Apartheid and the security machine that maintained it is disturbing to me for too many reasons to name here.</p>
<p>But that is less the issue for me in this particular story.</p>
<p>No matter how slow the historical fabrication happens, how tiny the incremental changes made to the record, there is no version of the truth in which Behr underwent &#8220;a process of political radicalization&#8221; or &#8220;turned double agent and spied on the South African government on behalf of the African National Congress&#8221; &#8211; or any similar heroic, tragic nonsense.</p>
<p>I know this because I was connected to the underground structures that dealt with Behr, heard his original confession and sent him home safely &#8211; a neutralised enemy agent; but also a narcissist and fantasist who, precisely for these reasons, could not be trusted to report back to the movement.</p>
<p>(I mean, please &#8230; Behr, in an attempt to have his credentials as an anti-apartheid activist improved, used a gun &#8211; and instructions &#8211; he got from his police handlers to shoot through an outside window into his room at his university home. He then ran back inside, and later, suitably disheveled and shocked, managed to convince the student body and administration that he was the victim of an apartheid hit-squad assassination  attempt &#8230; a little story he managed to leave out of his confession that I cover below &#8211; probably because of its obvious buffoonery and because thousands of people still remembered how convincing was his feigned shock and &#8216;injured victim&#8217; status at the time <em>&#8230; and by the way &#8211; - this as an added afterthought &#8211; he also managed to leave out of his 1996 confession &#8211; see below &#8211; that he had been a &#8220;double agent&#8221;</em>.)</p>
<p>Why am I bothering with this, all these years later?</p>
<p>Because Behr knows the truth &#8230; as do I. I am no longer certain anyone else remembers or cares. Behr could easily have corrected the hagiographic Wikipedia entry &#8211; but he has allowed this distorted tale, in which he is the dashing hero, and of which he is undoubtedly the author, to become the official version of a minor &#8211; but important to me &#8211; slice of our history.</p>
<p>In 1996 Behr made a dramatic and self-aggrandising (and unauthorised by the ANC) public confession at a writers conference in South Africa.</p>
<p>This is what I said at the time (published in the Mail &amp; Guardian <a href="http://mg.co.za/article/1996-07-12-the-smell-of-rotten-apples">here</a>) &#8230; I no longer have that condemnatory certainty, but as an antidote to the Wikipedia entry I <em>cut-and-pasted</em> above, I wouldn&#8217;t change a word.</p>
<p>Thus, purely for the record:</p>
<h2>The Smell of Rotten Apples</h2>
<p>PEOPLE who worked secretly or otherwise to undermine the movement against apartheid should be given every encouragement to say what they did and why. I am all for listening to them and forgiving those who are genuinely contrite.</p>
<p>Unfortunately the sincerity of Mark Behr’s confession is doubtful.</p>
<p>Even before one looks at the text it is difficult to believe that Behr is not engaged in another act of self-promotion. The initial signs are:</p>
<ul>
<li>He flew in from Norway, delivered his confession and fled back overseas without facing those on whom he had spied;</li>
<li> He addressed himself to a conference of people interested in writing, where he was the star speaker, rather than to the ex-Stellenbosch students he had betrayed and the anti-apartheid activists on whom he had informed;</li>
<li>He revealed to close friends he was only coming clean because he was going to be named as a spy by a witness at the Truth and Reconciliation Commission;</li>
<li>He is publishing a book dealing with spying and betrayal early next year. One must assume his high-profile confession is part of an advance publicity campaign.</li>
</ul>
<p>To grasp just how unlikely is Behr’s sincerity, we need to examine the text of the 4 000-word confession and apology.</p>
<p>A number of things are missing from the text. He never mentions the arm of the state he spied for, who his handler was, how much he was paid or what information he passed on. If Behr really wanted to redress some of the harm he did -—a crucial aspect of confession and forgiveness—- then these were the questions he should have answered. Instead of dealing with the details of what he did and for whom, Behr spends the overwhelming majority of his words worrying about how he will be judged. The repeated lament is: “I have always suspected that the only voice people will hear from that moment on &#8230; is the voice that cannot b e trusted, that is incapable of the truth.”</p>
<p>Aside from his exasperating self-absorption the problem with Behr’s words is their totalitarian thoroughness. Behr constructs his defence as a monolith. On reading the document we are left with the impression that there is nothing more to say except to forgive the poor chap, he is suffering enough already. There is no chink in the words for us to enter and engage with him. He has pre-empted any possible criticism by exhaustively criticising himself. He apologises for the betrayals, for his motivation, for his lack of moral courage; he apologises for apologising; and then, in an infinite regress, he apologises for apologising for apologising.</p>
<p>This is called “shutout”. We are left unable to engage with the truth. We can do nothing but acquiesce or reject him outright. If we reject him we place ourselves with those who deny perpetrators the right to change heart; to seek a language to express their grief and regret.</p>
<p>But to what are we being asked to acquiesce? If it was just forgiveness it would be easy. You have to listen to the rhythms of the text, the cadence of Behr ‘s voice to understand the enormity of what he wants from us. “It is with the profoundest imaginable regret &#8230;”, “I soon believed in the moral correctness of this struggle I was reporting on &#8230;”, “&#8230; this might be &#8230; yet another reinterpretation geared for justification &#8230;”, “I lacked the moral fortitude to face the consequences of my treason &#8230;”, “I &#8230; would like to capitulate into silence &#8230; there is also truth in silence as there might be in ceasing to live.”</p>
<p>Imagine a young version of the Reverend Jim Bakker &#8211; remember him? Then listen carefully to Mark Behr and you will hear something akin to the tearful televangelist minister who got caught sleeping with a prostitute &#8211; again. He is beating his breast, calling down the wrath of God on his sinner’s head, begging us to join the Lord in forgiving him. The individuals in the congregation are crying with him, wishing they could be the ones to embrace him, to soothe away the contradiction at the heart of this flawed titan of a man. Behr’s confession is a number of things. It is also an audacious attempt at seduction.</p>
<p>The Truth and Reconciliation Commission has begun bringing the painful stories of victims on to the centre stage of our history. As that process begins to take effect we are presented with Behr claiming to have been the victim: “&#8230; one is born into, loved into, violated into discrimination”. Behr claims to be the victim of propaganda, of Christian National Education, of his family, of history, of fate, of his own moral weakness. With all due respect! This is a man who spied for the apartheid police in exchange for money. He apparently didn’t even support apartheid. Ten minutes listening to the truth commission will clear the heads of anyone seduced into believing Behr is the tragic hero at the centre of our national drama.</p>
<p>I do believe there is something fragile and sacred in our process of confession and absolution. We all probably know white men who were, as conscripts, engaged in atrocities in Angola and Mozambique. We have watched them writhe in the terrible privacy of their own fear and shame. These men cannot even imagine words to describe where they have been and what they have done. We have all known someone amongst them who has descended into the hell of drug addiction or suicide.</p>
<p>Behr had the unique combination of talent and opportunity to examine how young whites became culpable. His confession could have begun giving them a voice.</p>
<p>But he misses his one chance at salvation. In an orgy of self-pity and self-promotion he abandons the only people who really needed him to speak with sincerity.</p>
<p>I hear that Behr’s confession was warmly received by many. Behr has consistently traded on his anti-apartheid credentials. I am appalled at the possibility that he will now get away with trading on his credentials as the contrite perpetrator, as the prodigal son.</p>
<p>Behr phrases his confession in the literary context of the limitations of memory and language to describe truth. He has extensive access to platforms that propogate his vision of the truth and a unique ability to manipulate language to do so efficiently. Behr is the fast-food chain in the market of truth. Perhaps in the neighbourhoods where they consume mediocrity three meals a day his version of himself and history will prevail.</p>
<p>Behr could be forgiven for spying on the anti-apartheid movement, even if it was for thrills and extra ready cash. But, quite simply, he would have to be sorry first. Not sorry for himself. Sorry for what he has done.</p>
<p>Nic Borain was secretary general of Nusas in 1985, and established a Nusas branch at Stellenbosch. He was regional director of Idasa Western Cape from 1988 to 1990, and during this time employed Mark Behr</p>
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