ANC rule strengthens democracy in S.A.

By William Pomeroy

Going freely to the polls for the second time since the ending of apartheid swept away brutal disenfranchisement of the Black majority, the people of South Africa voted June 2 to maintain in power a government headed by the African National Congress.

The ANC won with an increased vote and a stronger parliamentary mandate for its program of democratic development.

In the first post-apartheid election in 1994 the ANC had 63 percent of the vote, more than enough to establish a stable government that could undertake the social changes needed in the wake of apartheid.

Led by Nelson Mandela, who projected the theme of "reconciliation," it successfully carried out the transfer of political power from the white minority to the Black majority and began implementing a program of improving Black living conditions.

Over the past five years extensive improvements were made, particularly in the Black townships: the building of new homes and of health clinics, the provision of clean water, of electricity and of telephones for many.

These are still only beginning but they have been sufficient to sustain the confidence of the people in the ability of the ANC to achieve the development goals it has set.

On June 2 that confidence boosted the ANC share of the vote to 66.5 percent and increased ANC seats in parliament to 266 out of 400, only one seat short of the two-thirds majority required to amend the constitution. The new government is even better able to implement change.

That this is to take a more accelerated democratic course is indicated by the theme projected by the new South African president, Thabo Mbeki - "transformation." But this has meant the transfer of economic power as well as political power from the white elite to the deprived Black majority.

That ANC government has taken only the first steps toward overcoming the inequalities inherited from apartheid can be seen in the grave state of the economy: unemployment at 30 percent; stagnated manufacturing at the level of 10 years ago; a fall in the value of the currency (the rand) by one-half, the non-arrival of foreign investment, and a huge rise in the rate of crime that severely affects tourism, further reducing income.

Whatever the changes in political life and in government programs for the people the basic divisions in South African society remain, between the rich few, who are white, and the poor many, who are Black.

The end of apartheid did not mean the end of the old economic relations. White elite ownership of industry, mining, the financial system, of land, did not alter. The huge conglomerate companies and banks have continued in white hands as before.

When Thabo Mbeki has advocated a theme of transformation he is understood to mean the return of land to the dispossessed Blacks from whom it was seized in the past, the reduction of the great income gap between the races, and the increase of Black management of the now white-dominated economy.

Such changes involving land reform and adjustments of property rights would require amendments of the present constitution, which was somewhat of a compromise document to minimize conflict in the transition from apartheid.

This is why the question of the ANC attaining a two-thirds parliamentary majority became so important during the recent election. (Although one seat short the ANC could undoubtedly get the majority it needs from other parties in parliament.)

Both South African elections have been featured by the alliance of the ANC with the South African Communist Party (SACP) and the Confederation of South African Trade Unions (COSATU).

The alliance has held up in spite of critical differences of the SACP and COSATU with ANC leadership policies for the economy, especially the policy called GEAR (growth, employment and redistribution) which the left opposes because it embodies cuts in public spending and government employment, and privatization of government assets).

It was reported that 80 of those on the list of ANC candidates in the election were SACP members, and that the SACP was the most active vote-mobilizing factor in the townships.

Two weeks before the election COSATU gave warning to the future government that it would fight any sale of government assets in proposed privatization.

The Mandela government had already sold off some radio stations, and allowed private stakes in the Telkom telecommunications and in the Airports Company.

Plans have been set out for selling part of South African Airways and for sale of forestry, resort facilities, arms manufacture and diamond mining. The SACP also opposes privatization. Privatization is one of the demands made by foreign investors who are sought after by some ANC leaders.

More important for the South African economy is the behavior of the big white-owned corporations, which claim to feel constricted by the limited growth of the national economy and which seek to move capital and operations abroad for grater returns. South African law requires companies to obtain Ministry of Finance approval for moving abroad.

Some major companies - South African Breweries, Anglo-American, Billitin, and Old Mutual - were permitted in recent years to shift to stock exchange listings in London or New York, and up to 30 other companies are applying to do so.

This is strongly opposed by COSATU and the SACP, which insist on investment at home, where it is needed, and not on export of capital abroad while foreign investment is being sought.

Much emphasis was given during the ANC's first five years in government to the concept of "Black empowerment," which had to do with the development of Black entrepreneurs and Black businesses. A problem is that a lack of capital has compelled Blacks to rely on loans from white financial sources. The government has tried to offset this with its affirmative action policies such as awarding government contracts to Blacks. Moreover, hundreds of new Black companies have been formed in the past five years. Whereas in 1995 only 1 percent of market capitalization on the Johannesburg Stock Exchange had Black control or influence, today it is 16.3 percent.

In the 1994 election the ANC had to contend with relatively strong opposition from the still-intact white National Party that had ruled the apartheid state. It won 20 percent of the vote. The NP won control of the Western Cape province.

On the eastern side of the country the Inkatha Freedom Party of Chief Buthelezi conducted a semi-civil war against the ANC and held control of Kwazulu-Natal province. Extremist white groups tried to sabotage the election with terrorist attacks on Blacks and threatened armed uprisings and separate statehood.

Today the white extremist groups have faded from the scene. The Inkatha warfare has subsided and the new election brought an ANC-Inkatha coalition government for Kwazulu-Natal.

The formerly dominant NP has fallen apart, first changing its name to New National Party to escape the apartheid image and then losing half its members to a refurbished Democratic Party, which tries to appear liberal while promoting subtle racist propaganda; it took 10 percent of the vote.