SANDTON CONVENTION CENTRE, 17 OCTOBER 2001
Chairperson,
Distinguished guests, fellow policy makers
and practitioners from the public, private and community sectors
It is appropriate and commendable that a forum on corporate social investment is convened on a day set aside by the international community to remind us of our commitment to poverty eradication. National and international forums and processes have taken place during the past decade to focus attention on the scourge of poverty and what can and must be done to address it.
A central theme of our second democratic government, articulated by President Thabo Mbeki in 1999 is "mobilising for a caring society". 'Care' and the values and ethics that inform it Africa because of the apartheid legacy and its multiple impacts on all of society.
Since 1994 South Africa has come a long way. Notable achievements have been made in crafting a new Constitution, establishing democratic institutions and transforming policies and legislation. Dialogue and negotiations have become an institutional feature of our young democracy. Processes and forums for labour, business, and government to negotiate diverse interests have been established. Human rights are enshrined in the Constitution. Only a shadow of the legal edifice that supported the apartheid system remains.
State institutions are constantly challenged to be transparent, accountable, responsive and free of corruption. Building democracy and nationhood as well as ensuring that everyone has a stake in the future is a challenging task.
Millions of South Africans have experienced the benefits of democracy. However, alongside these trends, we cannot ignore the continuing crisis of widespread poverty, social exclusion and various forms of violence.
Moreover, transforming governance in an era of economic globalisation also creates new challenges, insecurities, risks and opportunities. The tragic events of September 11th, in the USA illustrate the knock on effects for countries across the world of being part of a global community. The world will never be the same. There is a profound crisis of insecurity and instability.
What are the implications of these contradictions and insecurities, for the country, the region and the continent and how do we remain focused on the need to eradicate poverty? More specifically, this forum asks the question: What is government doing to encourage corporate social investment in South Africa? I will address these questions by broadly sketching governments' attempts to address poverty and encourage corporate social investment.
Government supported and initiated processes such as the Poverty Hearings and the Poverty and Inequality Report provide us with reliable and important information on the scope and many dimensions to poverty in South Africa. Recent studies on poverty and inequality in South Africa together with a credible census data constitute the basis on which systematic and responsive programme decisions are being made to address poverty.
We now have a reliable baseline of information on the dimensions of poverty, the special problems experienced by children and young people and the risks and vulnerabilities that they are exposed to within households, communities and in other environments. Evidence suggests that long-term poverty and structural unemployment have a devastating impact on the poorest households affecting approximately 18 million people.
During my visits to the poorest communities across South Africa, I have been shocked by the conditions under which people live. I have also been amazed at the resilience and determination displayed by them in their efforts to overcome poverty. I have seen the extent to which HIV/AIDS pushes the poorest households and communities into desperate circumstances. Young people, particularly women, between the ages of 15 to 35 are the worst hit because of poverty, economic hardship and unequal power relations that make them unable to negotiate safe sex with their partners.
It is against this backdrop that we need to consider government's anti poverty programme. Government's anti-poverty programme has five elements. These include:
Government has put into place processes to achieve all five elements of its anti poverty programme. We are promoting an increased focus, through the Poverty Relief Programme and the integrated rural and urban regeneration initiatives on the needs of the most vulnerable. The Committee of Inquiry into Comprehensive Social Security is looking at options to strengthen our social safety net. A human resource strategy has been established to promote skill development and facilitate investment in job creation.
Through consultative processes we are developing connecting points with civil society organisations. Transforming the social services and systems to ensure non racial equitable and pro poor policies is an ongoing challenge. Across the board our government is reinvigorating partnerships with faith-based organisations and other civil society organisations to rebuild family, community and social relations. New partnerships are being established with the business sector and focused attention is being given to building the capacity of emerging community-based organisations as well as government.
An essential part of this process is government's role in facilitating an enabling environment for corporate social investment. Significant steps were taken in this regard by President Mandela when he launched the National Business Initiative (NBI) in March 1995. The aim of developing a partnership between business and government in the area of socio-economic delivery, without creating dependency by government structures on business assistance is still valid today. Furthermore, the need for business to make an impact on national problems, without duplicating what companies can do through their own corporate social investment programmes recognises that there has to be complementary and supportive roles.
Another example of the type of corporate social investment that is required is that of the Business Trust, managed by the National Business Initiative. It is an initiative of approximately 130 companies in South Africa working in partnership with government to undertake targeted job creation and capacity building programmes.
That business is playing a prominent and pro active role in crime prevention and education is evident. Business now makes rapid responses to both national and regional humanitarian crises. I take this opportunity to commend the various business entities that are working closely with us to make a difference in the quality of life of the most vulnerable members of our society.
Such developments are underpinned by the growing recognition of the costs of inaction, of not investing in social development. The challenge now is to broaden, deepen and consolidate corporate social investments into an integrated program of investing in social development. The questions examined at this conference will therefore provide strategic guidance to help us in our collective efforts to address poverty and achieve social development.
As I see it, we need to define the terms of our engagement in ways that have meaning and are understood by all parties. We must interrogate what we mean by partnerships and ensure that the benefits of such partnerships are also experienced by the poorest sectors of our society. A framework that promotes corporate social investment must be designed in consultation with all the role players. The conditions for effective partnerships and corporate social investment must be clearly spelt out.
Our efforts need to be directed at harnessing corporate social investment towards the most vulnerable and at risk. There is an urgent need to develop commonly understood rules and protocols to facilitate corporate social investment. With greater economic and political power comes greater social responsibility in the public and private spheres. Let us work together to transform declarations, agreements and rhetoric into concrete action and outcomes.
Defining the terms, identifying the partners, working out the conditions for corporate social investment in a changing context requires ongoing dialogue between government, the business sector and indeed the entire society. I take this opportunity to invite you to a Business - Social Development Summit, to be held next year, where we will look at how to further deepen our relationship.
The challenges are indeed many. Increasing both the financial resources and institutional capacity within government and the community sectors to collectively address the needs and concerns of the poor remains central. But government working in partnership with civil society organisations, including the private sector and faith based organisations has introduced measures to promote the rights of the poorest and most vulnerable members of society through concrete measures. These measures must be based on shared principles and initiatives that ensure partnerships are founded on universal values of human decency and affirm the right of all citizens to equitable and sustainable human development.
Since 1994 we have come a long way. We have learned about the scope of the problems facing us and shared knowledge and information on how to address these problems. Our government is committed to eradicating poverty within South Africa and on the continent of Africa. The New Africa Initiative is an outcome of this commitment just as there are many examples within South Africa. Sustained progress can however only be achieved through a new patriotism that promotes social solidarity across the many historic divides in our country.
I look forward to continued engagement with you on the issues discussed at the forum.
I thank you.
Issued by: Ministry of Social Development