Transfomrbion 1 (1986) Review CONTOURS OF CAPITAL'S NEGOTIATING AGENDA Jeff ffcCarthy In his 'Rubicon II' speech to the opening of Parliament in January 1986, P.W. Botha offered further indication of the direction of state restructuring in the context of the current crisis. Sabre rattling against 'ccnmunists' and 'revolutionaries' was accompanied by Botha's strongest yet statement of reformist inclinations. The normally cautious Buthelezi, for example, all but corceded that he was ready to join Botha in a 'national statutory council' after the latter had, amongst other things, indicated: the abandorment of 'outdated' concepts of colonialism and apartheid; support for the principle of cannon citizenship in an undivided South Africa with rights of all citizens to participate in all structures to be regotlated; the scrapping of influx controls as of July 1 and its replacement with a positive urbanisation strategy; strong support for the 'sovereignty of law'. For those who might not have been familiar with the interventions of the Associated Chambers of Ccnnerce (ASSOCCM) and the Federated Chambers of Industry (FCI) before Botha's speech, the extent to which he appears to be under the influence of such organisations might be missed. The FCI intervention came shortly before Rubicon U and noted that 'a fundamental requirement is to create rapidly and urgently a climate for negotiation and a gererally accepted framework within which negotiation can occur'. Qnphasising the need for privatisation, deregulation and the elimination of social discrimination based on race, FCC emphasised all of the requirements which, in the event, were endorsed by Botha in his speech. Ihey argued further for a lifting of the State of Emergency (agreed to by Botha intetrch1986) and the release of political prisoners from detention so that 'political bargaining' could take place against an agenda roughly agreed upon by the state and capital (at the time of writing this aspect of FCE's proposals had not yet been acceeded to). Whilst the well-timed FCE intervention dealt with short term political tactics, the ASSOCCM endorsed proposal came earlier (August 1985), and it was a more comprehensive analytical work 130 Tamsfoamzbion 1 McCarthy dealing with the general principles envisaged for 'new South Africa' to be prorated by its 'new right'. The ASSOCCM docurrent entitled BmxdL of Discrumnabion against Blacks in the Bolibi/xH Economy of the Beptilic of South Africa, is co-authored by key verligte tfetionalist intellectuals - Jan Lombard (Deputy Governor of the Reserve Bank and past Professor of Economics at the University of Pretoria) and Jchan du Pisanie (current Professor of Economics at the University of Pretoria). The Lombard-du Pisanie report is described in the Preface by ASSOCCM chief Raymond Parsons as 'an agenda for negotiation'. The intended negotiating parties are not explicitly identified in the report, but Johan du Pisanie, in personal coninunication, has indicated that the documsnt has been sympathetically studied in 'Western capitals', by the South African cabinet, and by 'black leaders' who must remain unspecified at this time. This document, I would argue, is worthy of thought by any of those contemplating the implications of a negotiating table involving, possibly, the ANC and other black political movements. Explaining the necessity for such a 'negotiation agenda' in their introduction, Lombard and du Pisanie (1985:i,2) repeatedly refer to the intense crisis of legitimacy of state structures in South Africa. They undertake no detailed analysis of the origins of this crisis in the report itself, but they are unambiguously of the view that the crisis must be resolved by removing racial discrimination from the system of class relations. Their perceptions both of the crisis and the way forward are aptly suimarised as follows: It is recognised that no real progress in stabil- izing and normalizing relations between people within South Africa or between South Africa and other coun- tries can be made unless legal racial discrimination is removed in the political institutions of this coun- try. The future legitimacy of the Republic of South Africa both internally and externally depends upcn this Issue. However, together with conservatively minded people in the world, and probably a very large segment of so- called 'liberals', we recognise some very serious 131 TrcatBprmbim 1 dangers for the stability and grcwtfc of the Heptfclic's eocraiy and the material well-being of its people in processes of political democratisation which basically conflict with the principles of private enterprise ... (Lombard and du Pisanie, 1985:2, emphasis original). For all progressives, of course, the question arises as to what is meant by the cminous last phrases in this passage. Lombard and du Pisanie do not explain their perception of 'dan- gerous' processes of democratisation in any detail, but what is clear is their hostility, above all, to socialism. They express this tostility in measured and paternalistic tones. The prob- lem, it is held, in a section entitled 'The Prior Removal of a Misunderstanding', is that whilst blacks support socialism, this support is derived from a conflation of apartheid with capi- talism: While most white citizens of the Republic oppose socialism, there is among the prospective black citi- zens of the Republic, on the contrary, widespread suspicion of, and opposition to, the prevailing econ- omic system in South Africa. This antagonism is len- dirg itself to vaguely articulated but strongly held support for socialism as if that political philosophy is the necessary alternative to the kind of game rules of econcmic behaviour blacks currently have to face in South Africa. Socialism is thus seen by many blacks as the true harbinger of ecorxxnic security, freedom and prosperity. Lombard and du Pisanie (1985:15) then go on to assert: However, it is obvious that what blacks in the South African ecorxxny experience is the antithesis of a free private enterprise economy! (emphasis The conclusion Lombard and du Pisanie (1985:16) reach is that blacks must be taught 'reality'. It seems to be vitally important to clarify the 132 Transfaaiabixm 1 htOarthy political climate on this level, ie to remove the grave misunderstanding among meet blacks about what the two opposing ideologies of the market economy versus socialism stand for and to make it clear that neither in any way supports the ideologies of statu- torially enforced separate development. Only then will it be possible to properly address the real issue, namely the preferability of the decentralised market economy over centrally planned socialism as a system of regulation of people's economic behaviour. How, then, is the reluctant majority consciousness to be 're- educated'? Lombard and du Pisanie (1985) offer no specific proposals, but appear to assume that a particular form of state restructuring itself will accomplish such a transformation in consciousness. The cornerstones of such an envisaged restructuring are as follows: First, there is heavy emphasis upon the need for a 'bill of rights' founded upon existing ccramon law: The essential character of the common law of the Republic is its emphasis upon the legal status of the individual as a person, as an owner of both material and inmaterial property, and as a party to binding contracts and other voluntary agreements giving rise to rights and obligations (Lombard and du Pisanie, 1985:18). Lombard and du Pisanie (1985) appear of the view that conmon law has wide acceptance amongst blacks, and that it is the violation of conroon law norms by the state that has provided the source of much black resentment. They therefore recomnend that these norms be entrenched in any future consitution; a recaimsndation which is seen to also be of crucial significance for the long term security of capitalism: LConmon law] should be so entrenched in the consti- tutional character of the Republic that they cannot be rejected or eroded by future govemrosnts without sub- stantial consensus of the population groups who orj^g- 133 Ttansfacmxbian 1 McQ&tihy inally reached consensus on their recognition ... The danger of total or categorical rejection of these fundamentals of the South African economic sys- tem by temporary, simple majorities in any future parliament of the Republic is obviously not very real under the present constitution of the Republic. Ihe extent of danger, may, however, have to be recon- sidered once the terms of black participation in poli- tics are clear. Ihis is so simply because it will take some time before the majority of blacks come to firmly embrace the private and competitive enterprise economy as the natural extension also of their ideas of hunan dignity, etc. should the forces of national and international politics in the meantime bring about the kind of constitutional changes that allow un- limited, simple majoritarian government in South Afri- ca, these foundations of the private enterprise of the private enterprise economy will obviously be exposed to rejection. Under these circumstances it is highly desirable for those inhabitants of the Republic who continue to value these foundations to be able to fall back on the protection of a specific clause or clauses in the constitution that explicitly prevent Government from acting in ways in which deny the validity of these foundations (Lombard and du RLsanie, 1985:23- 24). Although they never say so, what Lombard and du Pisanie appear to be banking on is a military that is loyal to the constitution and not necessarily to parliament. Ihe entrenchment of relevant constitutional 'caimon law1 clauses is also seen to be dependent upon the expansion of judicial control which, in turn, is regar- ded as part and parcel of the necessity for having a federal structure of government (pp 25-26). Indeed, aside from their concern to establish a 'bill of rights', an emphasis upon fed- eralism and local autonomy is the second proposed cornerstone of state restructuring. After having expounded upon the necessity for monetarist Tamsfcamxbixm 1 fbCtxrtfty economic policies to redress problems of 'confiscatory levels of taxation1 (p.30) and the 'unfortunate' expansion of state expenditure which allegedly fuels inflation (pp 27-30), the authors argue for the strict independence of a Reserve Bank within a federal political structure. They then move on to a weighty chapter (pp 33-71) on Local Authorities. The heavy eirphasis upon local government appears to have two origins. Firstly, it is clear that the legitimacy crisis of the South African state has been largely spawned by the collapse of black local authorities. This gain by the progressive movements in South Africa has been responded to by the state through the promotion, for example, of Regional Services Councils. The Lombard and du Pisanie (1985) report came within the context of a specific request by the state through the promotion, for example, of Regional Services Councils. The Lombard and du Pisanie (1985) report cams within the context of a specific request by Minister Heunis for ASSOCCM to make a submission to the Cabinet on 'the political future of urban blacks', as Parsons explains in his preface. Lombard and du Pisanie (1985) themselves are critical of the Regional Services Councils and associated Primary Local Authorities on the grounds that they have been imposed on people 'top downwards', and will therefore exacerbate the legitimacy crisis. However, in many respects their own proposals are more regressive than state initiatives have been to date. In particular, they argue that local authorities should be regarded as public utility companies which are formed to provide services only when the people within an area perceive that they have the resources to afford such services. This idea of a 'bottom up', market-like creation of local government is offered to counterpose the state's recent legislation which at least contains the possibility of effecting redistribution to poor areas. A second reason for heavy emphasis upon local authorities emerges in the final chapter of the report which outlines the structure of federalism at the national level. The following observations are made here: It is clear that while the various ethnic groups in South Africa each have a relatively clear geographical 135 Tamsfaatation 1 base some degree of overlap of the geographical areas where different groups are mostly found occur. Should regional authorities on the basis of one man one vote be established in any set of regions which are bigger than individual municipal areas, a single group would obviously dominate political processes in most of such regions. Ihe Whites would not form a majority in any of such large regions. Nor would the Asians. It follows that the political problems associated with the pluralism of the South African society as a whole would also occur in each such large regions. Should territorially based federal states be estab- lished in South Africa, it is clear that local authorities with extensive powers cowering as nany cultirally sensitive gpwernnent functions as passible, will be most important in safeguarding the autonomy and self-determination of the various population groups. The federal principles governing the rela- tionship between the national government and the state governrBnts will have to be made applicable to tine relationship between all state governments and their local authorities. Should this rule not apply, no guarantee would exist that local communities would be able to maintain their autonomy (Lombard and du Pisanie, 1985:9), emphasis original). W a t this amounts to, of course, is a prescription for the maintenance of r»i«gg apartheid even after acts such as the Group Areas and Population Registration Acts are (possibly) scrapped from the statute books now that influx control is to go. As American blacks and, more particularly, the poor have discovered in the United States, market based segregation and inequality can be most effectively maintained by high degrees of local control over land use and development (is this what is meant now in South Africa by 'orderly urbanisation1?) and the management of substantial quantities of taxation and service provision (including for example schooling) at local authority level. To conclude, the contours of capital's 'negotiation agenda' are becoming increasingly clear, and they apparently are being incorporated incrementally into National Party policy, as Rubicon II demonstrates. If, as seems likely, a South African 136 Tamsfoatatum 1 ffoChrthy equivalent of Lancaster House is not far around the corner, progressives should be gearing up intellectually to meet the kind of challenge that is being offered by ASSOCCM and FCI. Interventions of the Lombard and du Pisanie (1985) type, and their paralleLs with National Party policy, certainly support sons of the predictions about directions of state restructuring made early last year in the SA Labour Bulletin by Cobbett et al (1985). However, it is becoming increasingly clear that the regional element of restructuring, so heavily emphasised by Cobbett et al (1985), is currently not central to the thinking or strategies of the state and capital. R^ERQJCES Cobbett, W, Glaser, D, Hindson, D, and Swilling, M (1985): 'Regionalism, federalism and the reconstruction of the South African state', SA Labour Builebvn., 10(5), 87-116- _ Lombard, J A and du Pisanie, J A (1985):ftmxtzl Qf l%8anm- inxbum cgavnst Blades in tits R>Utiaal Exnomy Qf the Bspbblic of South Africa (Associated Chambers of Commerce of South Africa, Johannesburg). 137