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28-29 September 2005

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28-29 September 2005 Powered By Docstoc
					28-29 September 2005
A REPORT ON SOUTH AFRICA’S FIRST
APRM CONSULTATIVE CONFERENCE
Contents
An introduction to the APRM
Conference programme
Summary of keynote address and President’s response
Summary of opinion piece presentations and report
back from commissions
Governing Council members
Credits and acknowledgments:
Written by: Wordsmiths
www.wordsmiths.org.za
An introduction to the APRM

The APRM (African Peer Review Mechanism) is a system introduced by the African Union (AU) and its
development programme, the New Partnership for Africa’s Development (Nepad), to help countries in
Africa improve their governance. The vision of Nepad is to eradicate poverty and to place countries,
individually and collectively, on a path of sustainable growth and development. This calls for
improved governance of all entities, both public and private, as well as action plans outlining realistic
sustainable development targets, reinforcing successful best practices, identifying deficiencies, and
assessing the need for capacity building in all African countries. The APRM country review process
helps countries look forward while taking account of where they are today. Each country identifies its
weaknesses and challenges, and comes up with realistic proposals on how to address problem areas.
The point is to encourage African countries to plan a way forward for themselves and implement
their plans in order to achieve the development goals of Nepad. The country review process is
conducted under the leadership of the APR Panel and the technical support of the APR Secretariat.
“Good governance means creating well functioning and accountable institutions
– political, judicial and administrative – which citizens regard as legitimate, in which they
participate in decisions that affect their daily lives, and by which they are empowered.”
Kofi Annan, Partnerships for a Global Community, 1998.

The process consists of five stages:

Stage 1: Preparatory process
During this stage the APR Secretariat sends a questionnaire to all participating countries. Through a
consultative process, the country develops a Self Assessment Report on the basis of the questionnaire,
which has four focal areas:

Democracy and good political governance
Economic governance and management
Corporate governance
Socio-economic development.

Each country also develops a preliminary programme of action to address its particular
challenges. During this time the APR Secretariat develops a Background document on the country
based on research and information gathering. Upon receiving the country’s self assessment
and preliminary programme of action, the APR Secretariat prepares an Issue Paper that will
guide the country in the Review process in Stage 2.

Stage 2: Country Review Visit
The APR Team visits the country and consults widely with all stakeholders such as parliamentarians,
government, political parties, business, and civil society representatives.

Stage 3: Draft Team Report
The APRM Team drafts a report. This report is based on the Background document and the Issue
Paper, and on the information provided during the consultations that took place in Stage 2. The Report
takes into account the political, economic, corporate governance and socioeconomic commitments that
were made in the preliminary programme of action, identifies
remaining weaknesses, and recommends actions. The Report is then discussed with government.

Stage 4: Final Report
The APR Team’s Report and final Programme of Action is sent to the APR Secretariat and the APR
Panel. It is then submitted to the APR Forum for consideration and the formulation of actions deemed
necessary in accordance with the mandate of the APR Forum.

Stage 5: Report Tabled Publicly
This is the final stage of the APR Process. It involves making public the Report and Programme of
Action. Six months after the APR Forum Report has considered the Report, it is tabled formally and
publicly in key regional and sub-regional structures to which the country belongs, e.g. the AU and
SADC, in the case of South Africa.

Who is participating in the
APRM process?
The APRM is open to all 53 member states of the African Union. Countries participate in the APRM
process voluntarily. Twenty-three countries are already participating in the process and several more
have indicated their intention to join in the near future. Participating countries include Ghana, Rwanda,
Kenya and Mauritius. What are the key focus areas?
The review process focuses on measuring
performance and progress in four areas:

Democracy and good political governance
Economic governance and management
Corporate governance
Socio-economic development

What are the benefits of the APRM for South Africa?
The APRM country review will enhance South Africa’s efforts to meet the challenges of the next decade
and build a better future for all South Africans. It will help build institutions involved in the promotion of
democracy. It will help to improve the relationships between institutions involved in promoting
democracy, and the relationships between these institutions and individuals. It will help to create a
culture of participatory governance, and encourage conversation around important issues. It will create
a favourable climate for trade and investment to flourish. The process will also improve our ability to
address the challenges raised by the “second economy”. The APRM will also help South Africa’s
efforts in terms of job creation and improved service delivery in areas such as health,
education, housing and other basic services.
Conference programme
The APRM convened its First Consultative Conference at
Gallagher Estate, Midrand, on 28 and 29 September 2005.
DAY ONE
Opening session
Chair: Premier M Shilowa
08h30-08h35Openingandwelcome:
Chairperson M. Shilowa
08h35-08h55 Strategic overview of the APRM:
Dr Chris Stals
08h55-09h10 Civil society input: Mrs Laura
Kganyago
09h10-09h25 Keynote address: Minister
Geraldine J Fraser-Moleketi
09h25-09h35 Presidential response: President
Thabo Mbeki
09h35-09h45 Cultural activity
09h45-10h30 Tea break
10h30-11h00 Question and answer session
11h00-12h00 Presentation on Ten Year
Review
12h00-13h00 Lunch
Afternoon session
13h00-13h55 Presentation of discussion
papers:
Democracy and Good Political Governance (Chris
Landsberg)
Economic Governance and Management (Lumkile
Mondi)
Corporate Governance (Nomini Rapoo)
Socio-economic Development (Danisa Baloyi)
13h55-15h00 Plenary discussion
15h00-15h25 Tea
15h25-16h25 ECOSOCC Roadmap: ECOSOCC
17h30 Cocktail party/dinner

DAY TWO
Morning session
08h30 Opening remarks and summary of
preceding day
09h00-10h00 Community level consultations:
Bandile Sizani
10h00-10h30 Tea
10h30-12h30 Commissions to review areas:
Looking at issues such as objectives, questions,
indicators, etc. Four commissions:
1. Democracy and Good Political Governance
2. Corporate Governance
3. Economic Governance and Management
4. Socio-economic Development
12h30-13h30 Report back from commissions
13h30-14h30 Lunch
Closing session
14h30-15h00 Plenary: Inauguration of the
APRM Governing Council: Prof. Stan Sangweni
15h00-15h30 Closing session chaired by
Randall Howard and Eddie Makue
15h30-15h45 Closing address by country’s Focal
Point, Minister Geraldine Fraser-Moleketi.
Summary of keynote address
Minister Geraldine Fraser-Moleketi opened by welcoming participants to what she termed a “landmark
event”: a gathering of talented individuals to discuss and plan the way forward for South Africa’s APRM
process. She stated that our country is alive with possibilities and South Africans are indeed a
remarkable people, having overcome formidable challenges in recent years. As children, she said,
many South Africans grew up in a society characterised by fear, brutality and insufferable
oppression. The apartheid regime tolerated no opposition, mismanaged our economy, and relegated
our children to lives of servitude based on their race. Consultation, collaboration, and partnerships were
unheard of. However, since those days, said the Minister, we have become a shining beacon on the
global stage, showing how a country can save itself, overcome its past, and build an entirely different
future. Our economy has never been stronger, our political life is vibrant and dynamic, and our arts and
culture inspire the world. But, she warned, our country’s turnaround project is not complete. Too many
of our people still lead lives of extreme hardship and are excluded from the benefits of democracy
and economic growth. Some of the reasons for this situation lie in the past but others are a result
of things that we are doing today, things that could be done differently. And that is why we are
here today, she stated. This is the start of a process that will help us work out what needs to change
and how to do it. All cultures have creation stories that explain the origin and culture of their land and its
people, she said. The Aboriginal people of Australia speak of a Dreamtime. For them, this was how the
universe came to be, how human beings were created and how the Creator intended for humans to
function within the cosmos. The APRM is our dreamtime, stated the Minister. Not because we are
fantasising or building castles in the air, but because we are consciously reflecting on the things that
need to be done today to shape our country, so that tomorrow there really is a better life for all.
Our collective dreams are a powerful, unstoppable force. The dream of a non-racial, non-
sexist democracy was once only a vision, but our national will is making it a reality. Now we
must harness and channel that energy to achieve even more. Africa was once seen by many as a
victim of colonialism and conquest, doomed to poverty and misery, she said, but Africans are
working to change all that. The APRM is a call to Africans to imagine a different future and to plan
practical ways of making those dreams a reality. As part of the APRM process we need South Africans
to describe their realistic and achievable dreams for the future, which will form the heart of
the Programme of Action. Contributions shouldn’t just be about government, she said, but about the
things that ordinary people can do in their own lives to make their dreams for the future a reality.
Presidential response
The President commenced by saying that the Organisation of African Unity (OAU) was formed
in 1963. He said that its main aim was to promote cooperation among the independent nations
of Africa in order to achieve independence. All over Africa the view was that colonialism and
apartheid must come to an end, and one of the most striking things was the commitment of
ordinary people to this cause. The people of Africa did not see themselves as observers in
the liberation of South Africa, he said, but rather as participants. Their belief was that liberating
South Africa would benefit them

After the African countries secured political liberation, said the President, the focus shifted
to economic liberation. Initiatives such as Nepad and the APRM hope to address the economic
question, he said, and today we are here to determine where the problems lie so that we
can address those problems.
According to the President, the APRM will pave the way for our future. He warned that the rest
of the continent will be interested to see how our country does. He said that it is our responsibility
to conduct this Peer Review through popular participation, in a way that benefits the rest of
our continent.
The President went on to stress that we share a common destiny as Africans, and we need to
reinforce the APRM process elsewhere on the continent. He concluded by saying that we owe
it to the rest of Africa to conduct the APRM review in a way that improves the continent,
and he publicly committed South Africa to the APRM process.
Summary of opinion piece presentations and report back from commissions
The APRM Questionnaire is divided into four major themes:

Democracy and good political governance
Economic governance and management
Corporate governance
Socio-economic development

An opinion piece was presented on each thematic area. The conference then divided into four
commissions to discuss these themes.
1. Democracy and good political
governance

Democracy and good political governance are important prerequisites for successful economic,
corporate and socio-economic governance. They touch on the fundamental rights of citizens
(individuals and groups), the accountability of government to its people, and political stability.

Summary of opinion piece on Democracy and Good Political Governance presented by Dr
Chris Landsberg (Centre for Policy Studies)
There are many critics of the APRM process who think that the aim of the APRM is to
 legitimise governments, said Dr Landsberg. On the contrary, the main aim of the APRM is to promote
national dialogue and imploregovernments to ensure participation of civil society in policy making and
implementation.
The government has formulated very good policies but there is a problem with the
implementation of these policies. The lack of voice for the poor is the likely cause of unrest
that we have witnessed recently in poorly resourced communities, and it is not necessarily
the lack of ser vice deliver y. The broader challenge is the lack of good governance, but
government is making a huge effort to improve the situation. The integration of the former
homelands sapped the energy of the post settlement government. The government at the
same time set itself some daunting and overambitious objectives and this has led to huge
implementation problems. The challenges of governance were underestimated both within
and outside government and some civil society players still feel neglected in policy making,
even though an effort is being made to consult them. He concluded that despite all this,
the government is working hard to improve governance through public participation.

Report back: Commission on Democracy
and Good Political Governance
The commission reported that one of the guiding principles that defines the APRM is participation. It
was agreed that a substantive approach that reflects South Africans’ own strengths is needed, as well
as programmes that will popularise the APRM. The commission agreed that questions on access to
information should be included in all themes. The Commission agreed that cross-border activities were
a source of conflict, especially regarding stock theft, and raised the question of strengthening early
warning systems. It was agreed that the Commission on Languages should increase its visibility, and
the work of the Independent Electoral Commission (IEC) on constitutional democracy was
commended. Regarding the independence of the judiciary, consensus was reached on the need to
improve our justice system. Key issues around Batho Pele and the emerging role of the
CDWs (community development workers) were also raised. The Commission stated that the debate on
decentralisation should continue and received written submissions on the role of women, which will be
handed to the Secretariat. Finally,the Commission agreed that the country needs integrated and
cooperative governance.

Economic governance and management
Summary of opinion piece on Economic Governance and Management presented
by Mr Lumkile Mondi (IDC)
On the eve of our democracy there was a fear that the ANC would embark on a populist
economic policy, said Mr Mondi. Instead a growth, employment, and redistribution
strategy (GEAR) was adopted by the ANC-led government. This turned out to be the right
approach, which has facilitated huge economic expansion in the country. In the past ten years,
we have seen the growth of the black middle class, although it accounts for only eight
percent of the total middle class, with the white community constituting the majority. Therefore,
GEAR has delivered by integrating the African middle class into the mainstream economy. The
South African labour market is not that rigid. However in that respect GEAR has also achieved
a lot. Many have not experienced a qualitative difference between the current government and
the apartheid regime, but, in fact, the country has moved from being a closed economy towards
being an open economy. The main challenge is to reduce unemployment. There is a need to
create an environment that will integrate the “second economy”. Some of the challenges we
face are the questions of how to give access to the majority, and how to actualise Broad Based
Black Economic Empowerment. We need to compete globally, but we also need to be careful
of how we intervene in the economy because this can have unintended consequences.
Government departments responsible for economic development need to start talking to
each other. Economic growth should be able to absorb the second economy, and when that
happens the country will be very prosperous.

Report back: Commission on Economic
Governance and Management
The Commission started off by raising concerns around bias in the short questionnaire. It was
agreed that the shortened questionnaire would be used alongside the main Country Self Assessment
Questionnaire. Another concern raised was the question of who is being assessed. The need
to focus on provinces and local government was raised, and there was some concern that
Good economic governance, including transparency in financial management, is essential
in order to promote economic growth and reduce poverty. The promotion of market efficiency,
control of wasteful spending, consolidation of democracy, and the encouragement of private
financial flows are critical aspects that will lead to the reduction of poverty and enhanced sustainable
development on the continent.

The APRM Questionnaire tends to focus on national government and ignore provincial and
local government. There was some confusion about the role that should be played by civil
society, and participants also brought up the issue of budgeting, raising the concern that the
government does not reflect the People’s Budget in its budgeting process. The macroeconomic
policy, GEAR, was discussed, and the Commission reported that the issue of inequality needs to
be addressed. Questions about how to deal with the issues of the second and first economies,
and market access, were raised. It was suggested that the indicators do not cover issues such
as housing, but it was later confirmed that Section 4 of the APRM Questionnaire deals with that issue.
Some members of the Commission stated that the questionnaire seemed very Eurocentric, instead of
focusing on African management systems. Others argued that capitalism is the same anywhere. The
fact that the questionnaire focuses on public corruption was dealt with, but a concern was raised that it
ignores private corruption.

Corporate governance

Summary of opinion piece on Corporate Governance presented by Ms Nomini Rapoo (IDC) Corporate
governance is about exercising accountability to “stakeholders”. “Stakeholders” goes beyond
“shareholders” in the companies or entities at play, to the broader communities. The main focus here
are the State-owned Enterprises (SOEs) but there are implications for all corporate entities. Corporate
governance is a challenge on this continent, but there is now consensus that it is also a challenge in
the developed world. One policy that seeks to ensure good corporate governance in public entities
is the Public Finance Management Act (PFMA), which ensures effective use of public finances. But
policies that are meant to improve corporate governance can impede the ability, especially of SOEs, to
compete both locally and internationally with entities that do not have to comply with this act. Some of
the entities that are affected by this Act are institutions such the Independent Development Corporation
(IDC), Telkom, and the Development Bank of South Africa (DBSA). There is a need to strike a balance
between conformance and performance. The PFMA, even though it is a good Act, might need to
be reviewed to guard against constraining SOEs. The King II Report is another document that plays a
similar role to the PFMA, prescribing best practices for board members. Shareholder activism is very
important to ensure good corporate governance.

Report back: Commission on Corporate Governance The Commission agreed that the behaviour
of corporates is important in economic development. It acknowledged the implementation
gap, discussed in the King II Report, touched on the issue of monitoring and evaluation, and
agreed that Standards and Codes of Good Practice should be enforced by both individuals
and corporates. The Commission discussed the question of how much oversight was required, and the
need for business to develop a culture of good corporate governance, acknowledging that no amount of
legislation would be able to achieve this. They agreed that while ethics Corporate governance is a
system by which corporations are directed, controlled and held accountable. It embraces all forms
of enterprise in the private and public sectors. Good corporate governance has seven
distinguishing characteristics: discipline, transparency, independence, accountability,
responsibility, fairness and social responsibility. These traits increase investor confidence, making it
easier for corporations to raise equity capital and finance investment. Africa is a continent that
has historically attracted very little investment and it is hoped that improved corporate
governance continent-wide will enhance the confidence of investors, both domestic and foreign.
cannot be legislated, business must be based on a good value system. The Commission agreed that
corporates should contribute meaningfully to issues of social responsibility. They agreed that
communities have an obligation to monitor and hold companies to account, and recognised the need to
put in place structures to empower communities. Participants said accountability should not be
relegated to big business only, since today’s small businesses are tomorrow’s big companies, and
discussed the question of how easy it is for companies to enforce laws. Sustainable development and
the link between companies and communities were touched on. Communication and access to
information were identified as problematic.

Socio-economic development
Report back: Commission on Socioeconomic Development
The Commission agreed that this was one of the most important commissions, if not the most important
commission of all, as the country is severely lacking in the area of socio-economic development. The
Commission reflected on the fact that the country assessment report was not just an assessment of
government, but also of the private sector and communities. The Commission also discussed the
Review process itself. It commented that the perception was that government was dominating this
process and agreed that encouraging community participation is going to be one of the major
challenges of the Governing Council. The Commission identified certain gaps, such as crosscutting
issues, and agreed that focus of the review should not be on what the country does well, but rather on
what the country can do well. The Commission reflected different viewpoints in terms of methodology.
The participants argued that the country is not short of data that speaks of success, but what the
country is short of is accounts of the lived experiences of people. There is a need to capture the views
of people on the ground. The Commission acknowledged that resources are being provided through the
Expanded Public Works Programme (EPWP), social grants and so on, but the question is whether we
have achieved what we set out to achieve. The Commission identified a need to use more
qualitative measures, rather than measures that reflect good numbers. On the issue of public
participation, the Commission questioned whether enough is being done to make sure that the views
of the people are heard. It also raised the question of blockages to women’s advancement in
the country. Crosscutting issues such as migration, dealing with refugees, and the treatment
of prisoners were raised. The Commission committed their support to the Review process, but
suggested that the process should look at being more inclusive. It stated that ECOSOCC should not be
seen as the only vehicle to encourage community participation, and that thought should be given to
how to build other structures into the process. Socio-economic development in this context implies
continuous improvement in the well being and standard of living of the people.

Summary of opinion piece on Socioeconomic Development presented by Dr Danisa Baloyi
Socio-economic development entails promotion of self-reliance and building of capacity for self-
sustaining development. Participation of the poor in development must be encouraged. There is a need
to close the gap between the rich and the poor, and between urban and rural communities.
Implementation of projects such as the Expanded Public Works Programme (EPWP) should be
prioritised. There is also a need to strengthen small, medium, and micro enterprises (SMMEs) in order
to achieve sustainable development. Agencies responsible for the needs of the poor must be
strengthened. Although policies that seek to ensure gender equality are in place, there is still a long
way to go to realise the benefit of these policies in practice. Women are still overrepresented amongst
the poor and the unemployed. Poor women are the worst affected by diseases such as AIDS. There is
a need to ensure equal access to education, especially for girls, at all levels. There is also a need for
the private sector to invest in communities to reduce poverty.

Governing Council members
The APRM Governing Council is responsible for leading and overseeing South Africa’s APRM
process. It comprises representatives of civil society and government:
ORIGINAL MEMBERS
Chair: Minister Geraldine Fraser-Moleketi
Minister of Public Service and Administration
Mr Bheki Sibiya
Business Unity South Africa (BUSA)
Mr Moemedi Phillip Kepadisa
National Council of Trade Unions (NACTU)
Ms Thabisile Cynthia Msezane
South African Council of Churches
Mr Randall Howard
SA Transport and Allied Workers Union (SATAWU)
Ms Laura Nondwe Kganyago
National Women’s Coalition
Dr Nomonde Mqhayi
SA Youth Council
Ms Zanele Twala
Sangoco
Mr Looks Matoto
Disabled People South Africa
Mr Master Mahlobogoane
SANCO
Mr Moemedi Kepadisa
NACTU
Dr Wally Mongane Serote
Cultural Sector/Freedom Park
Mr Trevor Manuel
Minister: Finance
Mr Mandisi Mpahlwa
Minister: Trade
Ms Bridgette Mabandla
Minister: Justice
Dr Essop Pahad
Minister: Presidency

ADDITIONAL MEMBERS
Ms M. Mbekeli
Nepad Business Foundation
Ms Fadila Lagadien
Disabled People South Africa
Mr Hassan Lorgat
Sangoco
Ms Martha Makholo
South African Council of Churches
Ms Thabisile Msezani
South African Council of Churches
Mr Ashwin Trikamjee
South African Hindu Maha Sabha
Mr Bheki Ntshalintshali
COSATU
Ms Kholiwe Makhohliso
Cultural Sector/Freedom Park
Mr Donovan Williams
SANCO
Ms Dudu Mhlongo
National Women’s Coalition
Mr Mahlomola Skosana
NACTU
Mr Jabu Moleketi
Deputy Minister: Finance
Prof. Anver Saloojee
Presidency
Alternate not yet appointed
Department of Justice
Alternate not yet appointed
Department of Trade and Industry

Contact details:
Unathi Bongco
Department for Public Service and Administration
Cell: 072 859 9951
unathib@dpsa.gov.za

Bandile Sizani
Department for Public Service and Administration
Cell: 082 800 6783
bandile@dpsa.gov.za

Tshepo Mashiane
ECOSOCC
Cell: 072 520 0543
tshepom@dpsa.gov.za
Zama Ndaba

ECOSOCC
Cell : 073 351 2466
zamand@dpsa.gov.za

APRM Website:http://www.aprm.org.za
E-mail: info@aprm.org.za
Call: 1020 TOLLFREE

				
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Description: 28-29 September 2005