Mandela urges "new patriotism" to create jobs

PRESIDENT Nelson Mandela has used his key speech at the opening of South Africa's parliament to call for a spirit of "new patriotism…

PRESIDENT Nelson Mandela has used his key speech at the opening of South Africa's parliament to call for a spirit of "new patriotism", without which the country could face economic stagnation and social collapse.

In a wide ranging review of his government's performance and future plans, Mr Mandela spoke of its democratic achievements and success in bringing the economy to its most healthy state in many decades. But while business confidence had been rekindled and large inflows of foreign investment were creating grounds for future growth, he said, South Africa was still only taking the first steps towards uplifting its millions of poor.

At the centre of Mr Mandela's speech was his acknowledgment that South Africa's present growth rate of over 3 per cent is not creating the jobs needed to reduce poverty. Without a national strategic vision involving both public and private sectors, he said, balance of payments problems and skills shortages would cause growth to peter out, while poverty and unemployment "bore down" on society.

To counter this threat, major investment was required in infrastructure and people, and it was questionable whether these objectives could be obtained "if the profit motive is the only dynamo of our actions".

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The country also needed investment and restructuring in manufacturing, agriculture, tourism and mining. In order to facilitate these changes and promote investment the government was planning to make major announcements in the coming weeks. Remaining exchange controls were being constantly reviewed and it was "not a matter of whether, but of when, these controls will be phased out".

Legislation to improve labour relations, productivity and training would come before parliament during this session, he said.

Mr Mandela said that private lenders should become involved in the provision of capital for low cost housing for the homeless. The poor, meanwhile, would still have to demonstrate their commitment to the new era by ending rent and rate boycotts.

While his speech referred to a need to "restructure" state assets at "due speed", it failed to commit the government to proceed with privatisation.

Mr Mandela committed the government to improve education at all levels, including a £180 million programme to build newly schools and a £53 million funding scheme for third level students. In a reference to the National Party, the second party in government, Mr Mandela said that declarations of loyalty to were hollow if those who made them were defending schools which were islands of white privilege.

Mr Mandela also had a thinly veiled message for the Inkatha Freedom Party, the third party in the ruling coalition, when he said he was planning laws to ban the carrying of weapons in political demonstrations. He referred to events in KwaZulu/Natal, where armed IFP supporters had threatened to kill police officers investigating the massacre of 19 people on Christmas Day.

The speech committed the government to producing a crime prevention strategy and to rationalising the public service, while making it more representative of the population's racial balance. Mr Mandela also looked forward to the passing of a new constitution this spring and the opening of the Truth and Reconciliation Commission into apartheid era political crime next month.