Minister of Development Cooperation Kari Nordheim-Larsen

Norwegian policy towards South Africa in the years to come

NEKSA-seminar, Oslo, 10. May 1995

One year ago - the 10th of May 1994 -I had the privilege to represent my Government at President Mandela's inauguration ceremony in Pretoria. Like everybody else present at that ceremony, I strongly felt the historical and political importance of what we witnessed. It is therefore a great pleasure for me to address this conference which takes place on this very special day in South Africa's history. May 1995 is also a historic month for Norwegians, as it marks the 50th anniversary of the end of World War II, and also marks the liberation from oppression and foreign rule. The Norwegian solidarity in the struggle against apartheid in South Africa and our determination to fight injustice and discrimination around the world, should be looked at on the background of our own experiences from the Second World War.

The struggle against apartheid received broad popular support in Norway, and the role of the NGOs in this struggle should not be underestimated. A large number of Norwegians were involved. And a large number of Norwegians are therefore carefully following what is happening in South Africa today.

Norway participated fully in the international boycott of the apartheid regime, and Norway initiated the United Nations' oil embargo. From 1977 and until today, we have supported the anti-apartheid campaign with some 1.5 billion Norwegian kroner, and for several years Norway was one of the main donors of assistance to the struggle against apartheid. It seems therefore only fair to say that Norway has contributed both financially and politically to the process which led to the historic multiracial and democratic elections of April 1994, and the inauguration of Nelson Mandela as the president of a democratic South Africa.

The 90's have been remarkable years in the history of South Africa. I can think of no other country where oppressor and oppressed have found a solution through negotiations the way it happened in South Africa. The four years of negotiations were difficult years, and there were times when many of us feared that the process would break into a civil war. But we were proven wrong, and the process that led to the elections in 1994 has gained admiration in the whole world. A standard has been set on the conduct of peaceful negotiations with mutual respect between opponents. Two persons will forever be linked with this process - president Nelson Mandela and the former president and now vice-president FW de Klerk. However, the elections could not have taken place had the people of South Africa not supported their political leaders.

The elections of April 1994 also marked a new phase in the relationship between Norway and South Africa. A very important part of this is to establish normal political and trade relations between our two countries. With the political and personal ties that were established during the years of the struggle against the apartheid regime, I do not foresee any difficulties in "normalizing" the relationship. But we also see the importance and need to continue our financial assistance. One could argue that there is no reason to spend scarce development funds in South Africa any longer, as it is a rich country, with large natural resources and a relatively high income per capita. We know, however, that the apartheid system has led to an overwhelming majority of the population living in crippling poverty. The same majority had, and still have, enormous expectations of the new Government's ability to deliver and implement promises made during the election campaign. The challenge is therefore for the Government to lead the economy on the path to stable growth and create a policy of redistribution and development to the poor and the disadvantaged. If the Government of National Unity does not succeed in doing this, the political stability in the country could be in danger. We acknowledge that this is an enormous and difficult task. At the same time we realize the importance of creating a politically stable climate in South Africa, and therefore my Government is prepared to assist the South African Government during a transtional period of five years. In this connection, I would like to mention also the regional aspect. Political and economic stability in Southern Africa as a region is to a large extent dependent on a stable and peaceful political and economic development in South Africa. In my opinion it is important to keep this in mind when discussing development and assistance to South Africa.

Norway has announced an aid package to South Africa of 600 million Norwegian kroner over the next five years, 120 million to be disbursed annually. This is a small amount compared to the vast domestic resources South Africa herself posses. We have to be realistic as to the impact Norway can hope to make as a donor. How the funds should be utilized will be decided in close cooperation between South Africa and Norway. We do, however, intend to concentrate in areas where we already have experience.

The situation in the new South Africa is not so much one of nation building as of nation re-building. A physical infrastructure exists with health services, an educational system and transportation. Political institutions are in place, as is the legal system. But they all need remodelling to be incorporated in a truly national structure.

A continued Norwegian assistance should therefore be based on a common wish to develop and strengthen democracy. True democracy was not won once and for all in April last year. The real test will most probably be the next national elections to be held in 1999. In the first national elections Norway was an active contributor to help secure a free and fair procedure. In preparation for local elections this autumn we are at the moment discussing with South African authorities what Norway's contribution to this process should be. It is a top priority to ensure that as many as possible participate in the local elections, and therefore register as voters as soon as possible, so as to pave the way for future national consensus. The majority of the population has little or no experience in taking actively part in elections. At the same time the candidates to local governments have no experience in ruling a local community. There is therefore a need to learn the implications of self-government, and how to co-operate with other democratic institutions in all levels of society. To assist in this challenge, Norway will continue to use the channels which were successful in the bringing down of apartheid.

Consolidation of democracy implies development. South Africa's answer is the bold Reconstruction and Development Programme, RDP. We understand the RDP as a process of transforming society to ensure a better life for all. We wish to ensure that our planning fits in with this vision. All NGOs that receive Norwegian funds have consolidated their efforts with the intentions of this plan. We support fully the South African emphasis on involving the whole society in the implementation.

An important part of our strategy is to strengthen the new administration in its efforts both to establish its own policies and to be seen to deliver the promised results. We believe that this can best be achieved by a gradual replacement of our commitments through the informal channels with a more direct input to government structures. An important factor in this regard is the strengthening of the capacity of South African institutions to manage the influx of development resources.

Among the many inequalities of apartheid South Africa, the lack of education for the black population is one of the most serious obstacles for the future distribution of wealth and influence. What is required is not only a reallocation of financial and material resources. A new educational system needs to be developed, which means a new administrative order, education and re-education of tens of thousands of teachers, and development of new educational policies - all amounts to a major effort on a national scale.

We give high priority to the educational sector in our development thinking. There is a long standing co-operation between our universities and regional colleges, and black sister institutions in South Africa. We propose to continue this work, but also to look for possibilities of co-operation in other areas of education.

The South African private sector is among the strongest in the continent. Industrial production is growing, both in terms of economic results and of employment potential. Unemployment is still a serious problem, but the potential of the South African economy is such that we may expect continuous improvement. The hope is that South Africa become a "locomotive" in the region, to the benefit and prosperity of the whole of Southern Africa.

We have noted considerable interest from the Norwegian business community for involvement in South Africa, in particular following last year's visit of the Minister for Trade, Ms Grete Knudsen. Before the boycott, South Africa was Norway's most important trade partner in Africa. There is reason to believe that this will be the situation also in the future. The private sector will figure high on the list of our development priorities as well. We propose to use a large share of our total budget to promote small and medium size businesses in South Africa and to encourage and facilitate the expansion of job creating activities. Let me also mention in this connection, that we will consider I would here like to mention that we would like to see that projects concerning developing business-creation could also hav a regional effect.

The Southern Africa region has always been important in Norwegian development policy, and this will continue also in the future. The positive political changes, that have taken place in many of SADC's member states, have also radically changed the region as such. The most important is of course the development in South Africa. The country is now a member of the organisation that was established as part of the struggle against South Africa and the apartheid regime's efforts to dominate the neighbouring countries. South Africa is now playing a positive role in the SADC cooperation. I am happy to note that the South African government puts great emphasis on the regional cooperation, because I strongly believe that this is important for a peaceful and politically stable development in the region.

The South African leaders have already proved that they are taking the regional challenges seriously. President Mandela's efforts in bringing peace to Angola is one example. The South African efforts in this respect should continue. The hope is that the peace in Angola will prevail, to the benefit of not only the country and its population, but to the whole region. All the conflicts are not solved. Rwanda is an example of the horror of ethnic strife. In Burundi, there are signs of an upcoming, armed conflict. The reconciliation in South Africa should be used as a model in Burundi, to prevent the outbreak of a war.

We have noted considerable interest in the SADC region of building up institutions dealing with confidence building and peacekeeping. Norway is ready to assist SADC in these efforts.

There are several reasons to be optimistic about the future of South Africa and also about the future relationship between Norway and South Africa. On the other hand, we should be aware of all the difficulties and challenges ahead for the South African government and people. The local elections to take place this autumn will be a major test. We will do our best to assist the South African government in making these elections a success, and as such pave the way for further consolidation on national level.

There is already a firm foundation for deepening and strengthening the relationship between Norway and South Africa. This conference is one example of the close ties between our two countries. These ties also provide the basis for long lasting contacts within such areas as human resources development, capacity, culture, environment, business-co-operation and trade.

Thank you.

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