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U.S. support for new business opportunities in South Africa - Assistant Secretary for African Affairs George E. Moose speech - Transcript
US Department of State Dispatch, Nov 1, 1993
Members of the National Foreign Trade Council and distinguished guests: Thank you for the opportunity to speak to you this morning. I have come here hoping that you have lowered your expectations for a major address, because, frankly, it would be difficult to out-do President Clinton and Nelson Mandela. But it is important to me and this Administration that you have invited me here to speak on our policy toward South Africa. The timing of this conference could not be better.
Last week, South Africa took two dramatic steps along its often rocky path to democracy. On September 23, the South African Parliament passed legislation setting the legal basis for establishment of a Transitional Executive Council, or TEC. This multiracial body will be a major landmark on the road to multiracial democracy. The following day at the United Nations, ANC President Nelson Mandela made the long-awaited call for the lifting of economic sanctions. In response to these milestones, the Administration announced a number of initiatives to support South Africa's historic transition to democracy. It was a dramatic week for South Africa, for all those Americans who gave so much to the anti-apartheid movement, and for businesses who stand to contribute to the rebuilding of South Africa's economy. The weeks ahead promise to be as momentous.
Before looking down the road ahead, however, I would like to pause to reflect for a moment on the tremendous progress South Africa has already achieved. In a little more than 3 years, Nelson Mandela walked free from Robben Island, apartheid laws were repealed, and the way has been paved for all to participate in governing the nation. Very few of us imagined then that President de Klerk's bold initiatives would bring South Africa so quickly to the edge of multiracial democracy. It is obvious South Africa's success speaks loudly and clearly to the resilience and talent of her people.
Meanwhile, the political process advances. Negotiators are now crafting a transitional constitution. Once that document is approved, the leaders of the negotiating parties will meet to endorse, formally, the constitution and the TEC. At that point, the TEC will be established, and exclusive white control of South Africa's political structure will be ended.
It is here, however, where the real challenge for South Africans and the international community truly begins. South Africa's economy suffers from a decade of slow growth, 4 years of recession, soaring unemployment, and inflation. Decades of irrational economic policies, rooted in apartheid, have created structural inefficiencies, distortions in labor and capital markets, and impediments to free trade. The situation is aggravated by the depressed world economy and a dramatic decline in investment resulting from diminished consumer and business confidence. Worldwide economic and financial sanctions tightened the screws, and last year's devastating drought, which forced South Africa to import large quantities of food, drove home the realities of South Africa's desperate predicament.
But this is only part of the picture. South Africa still has the highest GNP and per capita GNP in Africa. Its infrastructure rivals that of the developed world. Its physical location - near major international transportation routes and in the highest growth area in Africa - makes it an important base for international trade. Its location makes it a natural springboard for business opportunities in the region and the continent. Few countries rival South Africa's mineral wealth. And, most importantly, the people of South Africa have faced the challenge of apartheid and won. In a system that denied them opportunities that we take for granted, many young South Africans have persevered and succeeded. It is a talent pool that begs to be tapped.
A vibrant, free market economy is vital to generating the resources needed to address socioeconomic inequalities, but the post-apartheid government will also have a central role to play. South Africa will re-enter an increasingly competitive world economy, and the mere establishment of genuine democracy in South Africa will not be enough to attract new capital or trade opportunities. It is imperative that a new government adopt policies that promote growth and demonstrate concretely its commitment to creating a favorable investment climate.
The major parties in South Africa now appear to accept that a healthy private sector is essential to sustained economic growth and that only growth can generate the resources necessary to attack the legacy of apartheid. I am encouraged that the debate on South Africa's economic future turns less and less on matters of ideology and focuses increasingly on seeking pragmatic solutions that work.
But South Africa cannot do it alone. Outside investment and expertise will be crucial to consolidating South Africa's democratic transformation and economic recovery. In conjunction with public sector activities - domestic and foreign - these resources can transform South Africa's economic system into one that affords equal opportunities to all of South Africa's citizens.
