Finance Minister Trevor Manuel said on Friday at a Financial Mail medium-term budget briefing that the world had changed in the past 12 years and developing countries needed to become more involved in the world trade regime or else they would just be following the procession.
“As a developing country we have very high hopes for Doha round,” he said.
Manuel noted that when it came to ramping up South Africa’s competitiveness, one approach was to walk along with the procession and hope that by the time Doha was finished there would be some event.
“Or the focus must be on improving competitiveness and improving the base of manufacturing. We need to take a particular view on that — we can’t march with the procession,” said Manuel.
“Our peer-group countries are moving in different directions at the same time as we don’t have an absolute symmetry of interests,” he added.
“There is very intense lobbying by business — we need to hear business out but not feel we will be held to ransom by those issues,” said Manuel.
In response to a question by I-Net Bridge he said that no announcement had at this stage been made on lowering exchange controls.
Manuel also said that the question of border protection was a very difficult one, but that a less hysterical approach was needed and a skills balance was necessary.
“The human spirit is quite extraordinary. There have been stories of people dying trying to get into countries,” he noted.
He said the skills balance was important in immigration policy.
As far as people coming in from neighbouring countries went, he said that due to the human spirit issue, a “rational approach” was needed with neighbours.
“There is all this talk of Zimbabweans coming in, but if you meet many of the Zimbabweans coming in you will meet a lot of professionals and skilled people. Our experience is now becoming a global experience. It’s not an easy issue, but we need a less hysterical discourse about this issue,” concluded Manuel.
Meanwhile, Manuel said that one of the most difficult challenges he faces as finance minister is being able to support and drive all the micro-economic reforms that the country needs, and that the country must not just be merely an exporter of metals but must have an improved trade regime.
“The hard work is in the micro-economic reform,” said Manuel.
“There has to be a programme of micro-economic reform so into the future we are not merely an exporter of metals,” he emphasised.
He noted that more activity in the trade regime was needed.
“Among the issues we need to deal with in the budget next year is to support that which is clear, rational and planned. We need to get some expansion in there and we’re not afraid to do that if the plans are on the table. So it’s about skills and freeing up tariffs and other trade-related matters and supporting investment,” noted Manuel. — I-Net Bridge