Department of International Relations & Cooperation Strategic Plan 2012

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International Relations

15 February 2012
Chairperson: Mr H Magama (ANC)
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Meeting Summary

The Department of International Relations and Cooperation (DIRCO) presented its Strategic Plan for 2012 to 2017. A significant initiative of DIRCO in 2012 would be the replacement of the African Renaissance and International Cooperation Fund (ARF) with the South African Development Partnership Agency (SADPA), which should be set up as a separate juristic person by 1 April 2012. The Foreign Service Bill was another initiative of DIRCO this year, and the rationale behind this legal instrument, to address the specific needs and work of DIRCO, was explained. It was noted that since the implementation of the Protocol on Trade in 2000, intra-SADC trade grew 155%, although intra-regional trade remained relatively low. Intra-African trade accounted for 12% of cross-border trade. Asia had become South Africa’s largest trading partner, surpassing Europe in 2011. It was noted that the Southern African Development Community (SADC) had approved the chairing of the African Union Commission by South African Minister Dlamini Zuma. South Africa would have to adapt, participate and be part of the shift in global economic and social dynamics that were challenging 20th century political orders and economic systems. It was noted that conflicts, tensions between the West and Iran, debt levels and global economic imbalances and the impact of climate change and resource availability all contributed to uncertainty. South Africa was likely to move out of the African Growth and Opportunities Act (AGOA), and there was a likelihood that it would not be renewed in 2015. The SADC remained relatively stable but had internal challenges. Political and economic trends in Africa were explained, and South Africa’s role in a host of peace operations, resolution of conflict, women’s empowerment and African development was outlined. South Africa remained committed to strengthening the political and economic integration of SADC. It also remained committed to the non-aligned movement, attainment of the Millennium Development Goals and International Development Goals, through interaction at high-level meetings. The presentation could not continue in full, due to time constraints, but South Africa’s participation in the human rights system was emphasised, with the debate about violence based on sexual orientation and gender identity being important. South Africa’s role in State Protocol services was outlined, as well as its management of the Diplomatic Immunities and Privileges Act.

Members asked wide-ranging questions, but few could be answered, due to time constraints and it was noted that further presentations would be given on the strategic plan, the Foreign Service Bill and the SAPDA, as well as the African Union Commission. Members suggested the need for a protocol for provinces and local government to follow when they signed agreements. They queried the position of civil servants and foreign diplomats under the Foreign Service Bill, and which legislation governed their activities. They queried why no mention was made of exports to Brazil, despite the IBSA agreement, and noted also that although South Africa granted rights of residence to other foreign nationals from BRICS and IBSA countries, in practice South Africans did not enjoy similar privileges. They felt that more attention should be given to trade on the Continent. A number of questions about the ARF Act and new SAPDA would be addressed in a later presentation, including the full rationale, why ARF could not simply be amended, and its position in the organisational structure, as well as how it would be managed. They asked if South Africa was truly the “gateway to Africa” and for a breakdown of contributions to international organisations. They wondered if the five-year objectives were addressed comprehensively in the current strategic plan, and if deadlines on commitments could be met, as well as whether reduction of poverty was sufficiently well addressed. Members asked for comment on assertions that South Africa was faced with a host of overlapping regional commitments. They noted that human trafficking was not prioritised in the Strategic Plan, nor were there indications of any specific programmes on foreign affairs and national diplomacy programmes. A Member suggested that security services needed to be consulted on state protocol services.


Meeting report

Department of International Affairs and Cooperation Strategic Plan 2012-2017
The Chairperson welcomed Members, as well as Dr Horst Freitag, the German Ambassador to South Africa, to the meeting. He noted that the State of the Nation Address (SONA), delivered by the President in the previous week, spoke mostly to domestic priorities and infrastructure development, such as the North-South corridor and job creation. There were clearly no foreign policy changes expected, but the domestic priorities must be borne in mind by the Committee as it proceeded with its work.

Ambassador Jerry Matjila, Director-General, Department of International Relations and Cooperation, noted that the work of the Department of International Relations and Cooperation (DIRCO or the Department) was divided into four budget programmes of International Relations and Cooperation, Public Diplomacy and State Protocol, Administration, and International Transfers.

The planned policy initiatives of the Partnership Fund for Development (the Fund) were to create a Board of Trustees for oversight purposes, remove the necessity for the concurrence of Ministers of International Relations and Finance for approval of projects, and make the head of the South African Development Partnership Agency (SADPA) the accounting authority for the Fund. He noted that SADPA would have a strong emphasis on project and programme management and monitoring and evaluation. The Partnership Fund would replace the African Renaissance and International Cooperation Fund (ARF) as a separate juristic person. The Fund would also provide for direct transfer of funds from multiple sources and foreign donors directly into the Fund, and provide for Audit Functions by the Office of the Auditor-General. This Fund had been approved by National Treasury and the Department of Public Service and Administration (DPSA), and was now under consideration at the Department of Justice and Constitutional Development. It was hoped to launch the Fund on 1 April 2012, to phase out the ARF and phase in to SADPA.

The second initiative for 2012 was to pass the Foreign Service Bill. Mr Matjila explained that the public service in South Africa was established in terms of section 197 of the Constitution and was governed by the Public Service Act of 1994 (PSA). DIRCO was a Schedule one department regulated by the PSA. The conditions of service applicable to the foreign service were determined by the Minister of DPSA. However, the mandate of DIRCO was neither legislated for nor specifically articulated in the Constitution. The Foreign Service Bill was needed because DIRCO operated in an international environment that was not taken into account by the PSA. It needed to take different legal systems of various countries, as well as their cultures, into account in its work. DIRCO was bound by international obligations, treaties and protocols, and had oversight over other government departments on aspects affecting international relations, including being the custodian on international law and international agreements within government, and regulating and accrediting foreign representation and interactions within the organs of the state. DIRCO provided employment in missions abroad, offered assistance to South Africans abroad, and conducted financial transactions abroad, including the possibility of purchase of properties and assets. This Bill would clarify and strengthen the role and responsibility of DIRCO with regard to Foreign Policy and the roles of the Heads of Mission (WOM) as co-ordinator.

Mr Matjila said the global environment was characterised by a major shift in global, economic, and social dynamics. This included the realignment of new economic powers, new media and social networks, innovations, environmental change, and formations of new economic and political groupings challenging the established political order. South Africa had to adapt, participate and be a part of these changes. The growth of the economy meant corresponding links to new economic powers. The rules and institutions of the 20th century global and economic changing system were under pressure for change.

He then addressed the Arab-Israeli conflict, the increasing tensions between the West and Iran, and the widening Sunni-Shia Muslim conflict in the region. There were unsustainable levels of sovereign and private debt, and global economic imbalances, whilst climate change and resource insecurity were also causing insecurity and uncertainty. He stressed that the possible gradation of South Africa out of the African Growth and Opportunities Act (AGOA) remained a challenge, as well as the likelihood of that Act not being renewed in 2015.

He reported that the South African Development Community (SADC) was relatively stable, but there were a number of internal challenges. Intra-SADC trade had grown 155% since the implementation of the Protocol on Trade in 2000. However, intra-regional trade remained relatively low. South Africa currently conducted its foreign policy in an uncertain global environment and a successful foreign policy was a prerequisite for achieving South Africa’s domestic priorities.
 
Asia became South Africa’s largest trading partner, surpassing Europe, in 2011. In terms of Foreign Direct Investment (FDI) in Africa, South Africa was still a major investor, with China, India, and Malaysia becoming more significant. South African exports grew from 2007 to 2010, with South Africa trading considerably with China and Hong Kong. The projected investment opportunities were in the categories of the consumer sector, agriculture, resources, and infrastructure.

Mr Matjila showed a map displaying the major political and economic trends in Africa, classifying countries into ‘moderate to strong growth’, ‘conflict hotspots’, ‘elections’, ‘stable outlook’, and ‘monitored’. He said the situation was better than ten years ago.

He then discussed socio-economic development trends, reporting that intra-African trade accounted for 12% of cross-border trade, and commented that this was a worrying percentage. He reported on South Africa’s top export markets in Europe in 2011, with Germany and the United Kingdom at the forefront. He showed a table of FDI from Europe, also showing Germany and United Kingdom as the major players (see attached presentation for all tables).

In regards to the enhanced African agenda and sustainable development, Mr Matjila reported that the SADC approved Minister Dlamini Zuma as the candidate for chairing the African Union (AU) Commission in February 2012.

South Africa was to implement the final key element of the African Diaspora Roadmap by convening the African Diaspora Summit. There had been strengthening of South Africa’s participation in Peace Operations, promotion of  the peaceful resolution of conflicts with a focus on conflict prevention and early warning, and continued enhancement of the role of women in peacekeeping. DIRCO had  engaged at the African Union (AU) level for the finalisation of the Algiers Protocol on unconstitutional changes of government. South Africa, in implementing the National Economic Partnership for Africa’s Development (NEPAD) had ensured that this would also support South Africa’s national priorities. The SADC was supposed to support and monitor negotiations on Tripartite Free Trade Agreements and the SADC Customs Union.

Mr Matjila emphasised DIRCO’s commitment to strengthening the political and economic integration of the SADC, especially through pursuit of negotiated political solutions in Zimbabwe and Madagascar. He also mentioned its efforts to strengthen South-South relations in order to advance the development agenda. At the Non-Aligned Movement (NAM) XVI Summit in Tehran in July 2012, South Africa would contribute to the development of common NAM positions on all issues of the United Nations’ agenda. It would also promote the attainment of the Millennium Development Goals (MDGs) and other International Development Goals (IDGs) through interaction at high-level meetings, such as the fourth BRICS Summit in India on 29 March 2012, South Africa’s hosting of the fifth BRICS Summit in 2013, and South Africa’s hosting of the eighth IBSA Trilateral Ministerial Commission in 2012. The development of a BRICS strategy in preparation for the fourth BRICS summit included the objectives of the African agenda and sustainable development, a global governance system, and strengthened political and economic relations.

Mr Matjila noted at this point that time constraints prevented the whole presentation being made, so he referred to specific slides (see attached presentation). Slides 39 and 40 referred to South Africa’s participation in the international human rights system, including the UN Development Assistance Framework (UNDAF) and various programmes under the United Nations. He stressed the importance of the debate about violence based on sexual orientation and gender identity and urged a global discourse on the issue. He also said the United Nation’s Conference on Sustainable Development (Rio+20) needed to be all-inclusive.

Slide 47 presented a graph of South African trade with Africa, noting that there were more exports than imports. Slide 50 graphs showed that South Africa both imported and exported primarily from Asia.

Mr Matjila summarised that State Protocol Services included the management of ceremonial events, international visits and conferences, and management of State Protocol lounges, guest houses and related facilities. DIRCO provided Protocol services to provincial and local government. It facilitated accreditation of Heads of Diplomatic and Consular Missions. DIRCO also managed the implementation of the Diplomatic Immunities and Privileges Act. He remarked upon the growing Diplomatic Corps in South Africa, and noted the need for public education on it.

Finally he touched upon human resources, noting that DIRCO had worked hard to reduce vacancies, as shown on slide 64. The human resources unit strove to maintain an efficient, effective, economical and fully capacitated department.

Discussion
Ms L Jacobus (ANC) stated that there needed to be a protocol around provinces and local governments signing agreements.

Ms Jacobus commented on the Foreign Service Bill and acknowledged the need to fall in line with the PSA. She assumed that foreign diplomats, being part of the civil service, fell under the PSA but asked if the same applied to support staff.

Ms W Newhoudt-Druchen (ANC) also sought clarification on which legislation governed staff who were working abroad.

Ms Jacobus noted that the IBSA agreement came into force eight years ago, yet nothing was said about exports to Brazil, which she queried since part of the IBSA partnership was about investment.

Ms Jacobus emphasised the need to do a lot ‘more work on the continent’, since intra-African trade was only at 12%, and enquired what DIRCO was doing to address this.

Mr I Davidson (DA) asked if it was DIRCO’s intent to rescind the ARF Act, and if so, asked on what basis the new fund would be governed. He also asked for clarity on the relationship between the rationale for the legal instrument and the legal instrument itself.

Ms Newhoudt-Druchen asked where the Fund fitted into the organisational structure.

Ms Jacobus asked for an in-depth explanation of the Partnership Fund for Development and the replacement of the ARF with SADPA. She asked why the ARF could not be amended, instead of being replaced.

Mr B Skosana (IFP) asked what conditions applied to the new Fund and who headed it. He remarked that there must be a direct relationship between the head of the Fund and the management of the projects. He also agreed on the system of a rung-for-rung basis, but questioned who determined the projects themselves.

Mr Davidson understood the need to diversify trade out of Europe to high-growth GDP countries. He asked what was done to deal with China’s devalued currency, since there was no trade balance. He asked for more detail on the problems were with intra-African trade, and suggested that the lack of infrastructural development was most likely an inhibiting factor.

Mr M Booi (ANC) requested a more in-depth explanation of the Foreign Service Bill, and asked if DIRCO was also seeking any Constitutional amendments. He wondered if this Bill would be all-encompassing.

Mr Booi felt that too little was said about the AU Commission.

Mr Skosana asked whether the Committee needed to endorse the candidacy of Minister Dlamini Zuma, and what benefit this would offer.

Mr Booi welcomed the situational analysis on the International Monetary Fund (IMF) statistics, but felt that it needed to be more comprehensive.

Mr Booi asked if South Africa’s claim to be “the gateway to Africa” was supported factually.

Mr Booi asked for a breakdown of DIRCO’s figure of R873, 9 million for South African contributions to international organisations, and if this was paid in full and on time.

Mr B Skosana (IFP) suggested that written questions should be furnished to the Department, in view of the shortage of time.

The Chairperson noted that the Committee and Department would be holding another meeting to engage on the strategic plans and suggested that questions could be asked now, although they may only be addressed later. He also said that Members should direct any further questions to DIRCO via the Committee Secretary. He suggested that the discussion on the Quarterly Report must be postponed.

Ms C September (ANC) said that DIRCO must be careful to avoid unintended consequences of new legislation.

Ms September asked for the international relations five-year objectives for South Africa, and asked if the Strategic Plan addressed these sufficiently. She asked if all the objectives and deadlines on all of the other commitments DIRCO had made would be met. She wondered if the Strategic Plan would assist South Africa in integrating into the region, and whether its national interest in growing the economy would be met. In particular, she noted the growing international poverty, and asked if this Strategic Plan addressed reduction of poverty and improvement of lives in South Africa. She noted what plans were in place to improve the meeting of targets.

Ms September asked DIRCO to comment on the National Planning Commission’s assertions that South Africa was faced with overlapping regional affiliations and commitments, which she cautioned would not be useful.

Ms Newhoudt-Druchen was pleased to note the strengthening of protection against on violence based on sexual orientation, but also said that whilst the AU agenda discussed human trafficking, but that was not prioritised in the Strategic Plan.

Ms Newhoudt-Druchen asked what the Department was doing to promote national diplomacy countrywide.

Ms Newhoudt-Druchen welcomed the youth programmes but asked what programmes were implemented on foreign affairs.

Mr Skosana asked what determined the stability of the countries.

Mr Skosana recalled that when the Department last presented, it had mentioned 10% intra-African trade and asked how the improvement to 12% had come about.

Mr Skosana said that South Africa was allowing many people from BRICs countries into South Africa, but commented that this was largely a one-way flow.

Mr Skosana questioned state protocol services, saying that there were many difficulties, and security services should be consulted as they remained ultimately responsible for security activities.

Mr B Elof (DA) asked if manufacturers knew what was being imported, as this knowledge would help them to assess what was lacking in the market and create jobs.

Mr Matjila said that the Members asked very important questions. He prioritised his replies to questions, due to time constraints.

The Chairperson added that the Committee would be briefed on the AU Commission at another time.

Mr Matjila answered questions about SADPA and the ARF, noting that in December 2007 the ANC had adopted a resolution on the South African Development Partnership Agency, to move forward and seek cooperation, coordination and mutual understanding. He noted that South Africa should not continue to react to African issues. There was a need to change gradually so that the country could assist Africa in developing industries, enterprises and multinational organisations. It was also necessary to address post-conflict issues. Western Europe had moved toward economic cooperation, and Africa needed to do the same. As conflicts ended, conditions must be created to foster the economy so that the post-conflict areas became viable and grew. It was important to make sure that the shortcomings identified in the ARF were dealt with. Perhaps the time was ripe now to cooperate on development, to strengthen institutions of governance in post-conflict areas. The concept behind the ARF was not abandoned, but instead there was a shift towards stabilising conflict and development cooperation. He also stressed that there would be a move to having one comprehensive fund. SADPA would be more proactive than the ARF. He noted that the Committee should be briefed separately on the business case for SADPA, which was quite elaborate and detailed.

The Chairperson said that the Committee had engaged with the DIRCO on other occasions, on SADPA. He also noted that the Foreign Service Bill needed to be addressed further.

Mr Matjila noted that South African staff working abroad would be governed by local laws.

The meeting was adjourned.



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