15TH ANNUAL CONVENTION OF THE ASSOCIATION FOR THE ADVANCEMENT OF BLACK ACCOUNTANTS IN SOUTHERN AFRICA

11 August 2000

Address by Minister Geraldine Fraser Moleketi, Ministry for Public Service and Administration, 15th Annual Convention of the Association for the Advancement of Black Accountants in Southern Africa (ASSISI)

As much as globalization may present more opportunities and choices for prosperity it is not a universal remedy. From our perspective we need to look at the role of the state in harnessing the forces of this phenomenon in the interest of the broader common good but not leading to the marginalisation of the nation state from a globalised world. This is the focus of my address to you today.

Unlike the forces of nature, globalization is neither neutral nor value free. Whilst it manifests itself primarily through technological and economic forces, it is also backed by political muscle. Although technical and economic aspects of globalisation have been accorded importance, there are nevertheless important political, social, institutional and cultural dimensions, which deserve far more attention than they have received to date. This points towards a realization nationally and internationally that we need strong and efficient governments.

There is a growing acknowledgement regionally, nationally and internationally that there is a need for a stronger, more efficient state.

A state is not determined by size but by its skills base that will allow appropriate interactions and delivery of services globally and locally.

It is important for our national democratic, non-sexist, non-racist state to have the capacity both through human resources, institutional capability and policy interventions in order to promote people-centred development and accelerate the fight against poverty, hunger, ignorance and disease. This will only be possible if the state has been transformed from the instrument of the powerful into a driver of development for the country.

If globalization is to result in greater democratization and prosperity for all, the stronger players must act in the interests of humanity as a whole rather than to maximize their own narrow interests. The leaders of developing nations must speak up in the interests of the poor and indebted countries, just as President Mbeki has done recently when he addressed the G8 summit in Okinawa.

As a developing countries we face many challenges, particularly the twin scourges of poverty and debt. In response to this crisis, developed countries such as the G8 nations have set targets for the reduction of the proportion of people living in poverty, as well as targets relating to education and health. Donor countries have made some progress towards focusing their development aid on the achievement of these goals, but many countries are still crippled by debt and the need far exceeds the assistance granted.

In this context it is critically important that we join forces on a regional level in the Southern African Development Community (SADC) and on the level of the continent in the Organisation for African Unity (OAU).

Each society must identify its fundamental developmental and governance priorities and put in place a state, which allows and enables them to achieve their objectives. This does not mean neglect or ignorance of international experience and global processes, but rather an understanding built upon analysis of local and international experience, with a view to evolving appropriate models for the country.

The current balance of forces requires greater assimilation of economic, social and strategic policies. Greater integration is also required between domestic and international policies, given also the increased penetration between the 'north' and the 'south'. This in turn requires that all components of the state be more globally aware and multi-disciplinary in their analysis and strategies. It also requires greater co-ordination between states, so that they can position themselves in a coherent and consistent manner in their interaction with other global players.

The state in a developing country is the institution capable of bargaining with global actors on the scale and the level that is required. This should not be to the exclusion of other players and skills, but the state is certainly a central player. In addition, the state is best positioned to enable democratic and equitable access by the greater majority of the population. The potential of the state to enable democratic participation and equity should not be underplayed. Patriotism is never the exclusive domain of actors within the state, and governments should promote and harness broader participation in support of development and good governance.

But what does it mean to be a strong state? This brings us back to transformation on a national level. President Mbeki gave us an indication when he restated the transformation objectives of the ANC-led government at the organisation's National General Council meeting in Port Elizabeth on 12 July. These objectives call for a strong state that is committed to development; a state which assumes responsibility for the upliftment of its people for the benefit of all. If we are to be a player in a global world then the foundation for our participation must be set firmly within the confines of our own priorities.

Our government is also sending a strong message about the nature of empowerment. In particular, empowerment must benefit all of our people, not just the few, irrespective of race or colour. A broad-based, equitable and non-favouritist approach to empowerment also links to the need for a new social morality. One of the outcomes of apartheid was a moral degradation so profound that it will take a concerted effort to re-inculcate respect for the law and the administration of justice. This challenge goes out to you today as it does us everyday.

The rules of conduct of your profession demand the highest ethical standards and unimpeachable trustworthiness. As a professional association it is incumbent upon you to uphold and enforce these standards, if necessary by ostracising those of your collective who are guilty of corruption, fraud, theft or any dishonesty that bring the professions into disrepute. It is clear that where narrow self-interest and moral duplicity exist in the accounting profession, they undermine not only the profession but also the moral fabric of the society as a whole.

For South Africa, globalisation and transformation form part of a unified vision of the present and the future. The ANC-led government believes strongly that the state must continue to play a strong, even interventionist, role to remove discrimination, strengthen democracy and uplift the poor in a caring society espousing a new morality founded on mutual respect. The state is thus a key instrument for building a better life for all.

In closure I challenge the ABASA in its South African operations. The Public Finance Management Act (PFMA) has stipulated that high levels of skills are required to ensure that the state's limited resources are utilised efficiently, effectively and economically. The skills and competencies that you possess as professionals are vital to the achievement of our development goals and we ask you as patriotic professionals to become involved and to serve on audit committees and on internal audit components.

We need your scarce skills in the public service to help us deliver on our promises. I also envisage that ABASA South Africa will increasingly participate in developing these skills in our country. I leave you with that challenge.

FOR MORE INFORMATION CONTACT: TEMBELA KULU @ 082 497 3220 MEDIA LIAISON OFFICER, MINISTRY FOR PUBLIC SERVICE AND ADMINISTRATION

ISSUED BY GOVERNMENT COMMUNICATIONS (GCIS) ON BEHALF OF THE MINISTRY FOR PUBLIC SERVICE AND ADMINISTRATION.