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ECONOMIC FORUM, CAPE TOWN, 24 MAY 1996

I have had a long and valued association with the World Economic Forum. However, all of my former interactions with your organisation have been from the perspective of government - either as President in the Pretoria-pre-1994 Government or more recently as Deputy President in the Government of National Unity. I am now looking forward to a new role as Leader of the Opposition.

The National Party decided two weeks ago to leave the Government of National Unity for the following reasons:

The new Constitution contained no provision in respect of any form of power sharing and the level of Governmental decision making. We entered a new era in which a Government of National Unity became an anachronism.

Our decision was an important step in the growing maturity and normalisation of our new political system. Although the Government of National Unity was functioning relatively effectively, a subtle but nonetheless important change began to assert itself. More and more the ANC members of the Government of National Unity began to show a new sense of self-confidence on the basis that they have the experience to continue on their own.

The basic economic policies of the Government of National Unity were in place and we had no reason to believe that the ANC had any intention of deviating from the course that we had agreed upon - a course they themselves had been co-instrumental in charting.

Also, the National Party's dual role as partner in the Government of National Unity and as the main opposition party was becoming more and more difficult to sustain. While the ANC was acting more and more as though they no longer wanted or needed a multi-party government, the National Party was perceived to be losing its edge. This posed a threat to the very existence of a vibrant multi-party democracy. We felt that the time had come for us to reassert our own identity as a strong and vigorous party in our own right. We believed that, with the adoption of the new constitution, the time had come for us to concentrate fully on playing a responsible opposition role, untrammelled by co-responsibility within the Government of National Unity.

The three years that now lie ahead before the next election will give us, on the one hand, and the ANC/ SACP/ Cosatu alliance on the other, the opportunity to develop clear alternative identities and platforms before the elections. It also means that the ANC will have to assume full and sole responsibility for their policies and actions.
Although we intend to play a vigorous opposition role on issues where we disagree with the Government, it will be a responsible role. In particular, we will continue to give our whole-hearted support to all efforts to promote economic growth; to alleviate the plight of the poor, the deprived and the unemployed; and to build a strong and united nation.

However, we will vigorously oppose the Government with regard to the growing number of issues where we disagree with them:

On the economy, we will urge the Government to adhere to the sound policies that we developed together within the Government of National Unity. We will, inter alia, press the Government:

* to drastically reduce the deficit before borrowing, particularly by cutting Government consumption expenditure;

* to restore a more healthy balance between business and labour - a balance which was disturbed by the removal of the lock-out clause from our Bill of Rights;

* to promote a more flexible labour system that will be more conducive to job creation and to promoting the competitiveness of our exports;

* to continue to open our economy to international competition;

* to expedite privatisation; and

* to continue with a responsible step-by-step dismantling of remaining exchange controls.

In pursuing these objectives I am confident that we will be greatly assisted by the fact that there is a basic framework of economic realities within which all governments now have to operate. The so-called "amorphous entity" of the market will effectively respond to any irresponsible actions, initiatives or neglect by the Government.

On security and stability we will continue to urge the Government:

* to take credible and effective steps against crime;

* to come to grips with the on-going violence in KwaZulu-Natal;

* to allow all of our diverse communities maximum room to protect and develop their cultures on a non-racial basis;

* to deal with vexatious and potentially divisive questions relating to our past conflict with the greatest sensitivity and balance; and

* to implement necessary affirmative action programmes in such a manner that they do not lead to a collapse of standards or degenerate into a new form of racial discrimination.

On development and nation-building we will work for

* policies that will equip people to help themselves as effectively and as quickly as possible, particularly through the creation of jobs, and the provision of practical and effective training and education;

* the provision of caring and cost-effective social and health services, with maximum community involvement;

* the extension of basic infra-structure services to all our communities, particularly with regard to the provision of clean water, sewage and electricity; and

* much greater value and effectiveness from our enormous expenditure on education. The requirement in this regard is not only for the provision of adequate facilities and teaching personnel but also the re-establishment of an ordered and disciplined culture of learning.

I am, quite frankly, looking forward to my new opposition role. I sincerely believe that we have reached the point where we will be able to exercise greater influence on the policies of the Government by publicly adopting a vigilant and critical role than by exercising an indirect influence behind the scenes within the Government National Unity.

There are many leaders at this conference from our neighbour countries in
Southern Africa.

South Africa also has a special role to play in Africa - and particularly in our own region. The success of SADC and the development of our neighbours in Southern Africa is not just a question of altruism, but also of primary national interest. Our stability depends to a considerable extent on the stability of our neighbours. As we have seen, AK47's know no borders. Neither do drugs and organised crime. We need to co-operate closely with our neighbours to address such common problems.

In the same way our prosperity will be directly affected by the prosperity of our neighbours. If there is hunger in our neighbour's house he will come to our house for food. If he is without shelter, he will seek shelter beneath our roof. We all stand to prosper if we work more closely together. We represent a growing and dynamic market of 110 million people - and South Africa is already regarded as the gateway to this market.

In promoting the ties between the countries of Southern Africa we must build on the foundations that have already been laid:

* on the existing customs union;
* on the existing structures of SADC;
* on the strong trade links that already exist between us;
* on the infrastructure and transportation networks that bind us together.

Success in respect of regionalisation will to a great extent depend upon attitudes:

* It is essential that South Africa should avoid the impression that we are trying to dominate the region with our overwhelming economic power.

* Regional relationships should be based on mutual benefit.

* We should be realistic and realise that we will not be able to re-create the European Union overnight.

* We must nevertheless accept that progress toward regionalisation is almost a prerequisite for economic survival in a competitive world which is increasingly dominated by trading blocks.

On this basis I am confident that we will begin to establish a beach-head for
growth and stability in Southern Africa which will in time help to bring peace and prosperity to our troubled continent. The international community can rely on South Africa to bring its part in launching Southern Africa as an exciting new emerging market.

<EOD>