Mandela Softpedals On Economic Policy

Like any policy it is not cast in stone, Mandela told 2,300 cheering delegates at the opening session of the Congress of South African Trade Unions (Cosatu) annual conference in Johannesburg. He was responding to a forthright attack on economic policy by John Gomomo, president of Cosatu, who described it as a monster.

Gomomo said while aspects of the policy appeared progressive these were overshadowed by conservative elements aimed at appeasing local and international capital.

He said it meant cuts in social spending, and, if left unchallenged, can only mean more poverty and an increase in the gap between rich and poor. It is my belief this conference should reject this strategy and its philosophy.

Trevor Manuel, minister of finance, introduced the policy in June last year when the rand was under intense pressure. Its emphasis on fiscal discipline, a progressive reduction in the budget deficit, removal of exchange controls, and tight monetary targets was generally well received by the markets, which were also impressed by the ministers insistence that its main terms was non-negotiable. But Mandela, wearing a red trade union T-shirt and cap, said yesterday it had been a mistake to rush the policy through without proper consultation with members of the ruling African National Congress, or with its two main allies, Cosatu and the South African Communist Party (SACP).

We ignored those who put us in power, and there is nothing more dangerous than forgetting our commitments. The danger for liberation movements is when they stop listening, he said.

But Mandela reminded delegates that economic policy was the collective responsibility of cabinet and he fully supported Manuel, whom he described as one of the most brilliant young men South Africa has produced.

A senior Cosatu official said later he was delighted with Mandelas speech which represented an important concession on economic policy, and reflected private agreements reached at a summit between the ANC, Cosatu, and the SACP, two weeks ago.

The general election is less than 18 months away and it is obvious from this conference that Mr Mandela and the ANC know where the troops on the ground will have to come from, he said.

Tension within the tripartite alliance has been growing for months, prompting speculation it could lead to a split between ANC moderates and the more radical unionists and communists. But Mr Mandela emphasised yesterday that the three organisations shared the common goal of transforming society and must be willing to compromise.

Citing one example, he congratulated Tito Mboweni, minister of labour, and the unions on reaching agreement on legislation to improve basic conditions of employment. It was an excellent compromise, he said to gasps of astonishment from delegates. Hours earlier, Cosatu denied there was an agreement, and employers vigorously attacked the legislation arguing that its provisions, including moves towards a 40-hour working week, would increase costs and reduce labour flexibility.