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The Inclusive Society Institute’s expert panel looking into electoral reform in South Africa met on 9 September 2020 to further elaborate on the design of a new electoral model for South Africa. The necessity to develop a new electoral model has been spurred by the recent Constitutional Court judgement declaring the current electoral model invalid. It has given the legislature two years to introduce new legislation that will enable independent candidates to stand for election in the national and provincial spheres of government. Discussions have to date focused on garnering a clear understanding as the prescripts of the Constitutional Court’s judgement and the electoral boundaries set by the Constitution. Presentations were made by experts on electoral models in several jurisdictions that employ proportional representation electoral systems that also provide for the participation of independent candidates. In this meeting, the panel started to conceptualise unique South African electoral systems that will be capable of giving effect to the Constitutional Court’s ruling.

The Inclusive Society Institute’s expert panel looking into electoral reform in South Africa met on 28 September 2020 to further elaborate on the design of a new electoral model for South Africa. The necessity to develop a new electoral model has been spurred by the recent Constitutional Court judgement declaring the current electoral model invalid. It has given the legislature two years to introduce new legislation that will enable independent candidates to stand for election in the national and provincial spheres of government. ​Discussions have to date focussed on garnering a clear understanding as the prescripts of the Constitutional Court’s judgement and the electoral boundaries set by the Constitution. Presentations were made by experts on electoral models in several jurisdictions that employ proportional representation electoral systems that also provide for the participation of independent candidates. In this meeting, the panel further discussed the conceptualisation of a unique South African electoral system.

The 6th meeting of the Inclusive Society Institute’s expert panel on electoral reform met on Monday afternoon, 16 November 2020. In previous meetings, the panel considered presentations by international experts on proportional representation electoral models abroad, and proposals by panellists on potential electoral models for South Africa. Sufficient agreement was reached for the institute to move forward with a modelling exercise. Meetings of the panel were paused to allow for the modelling to be completed. With the exercise completed, the panel was reconvened to consider its outcome. The meeting received a presentation on the outcome, and discussed outstanding elements identified at previous meetings and as a result of the exercise. In moving towards closure, the panel will, at its next meeting, consider recommendations to be made to policymakers on the institute’s proposed way forward with regard to the most appropriate electoral system for South Africa. The model to be proposed by the institute aims to give effect to the Constitutional Court’s judgement requiring the Electoral Act to be amended in order to allow for independent candidates to participate in national and provincial elections, and, which will, simultaneously help in strengthening the country’s democratic dispensation.

The 7th panel discussion of the Inclusive Society Institute’s (ISI) expert panel on electoral reform met on Monday, 7 December 2020, to give their final inputs into the draft report which will contain their proposals for a new electoral system in South Africa. Parliament is compelled to consider a new system that will allow for independent candidates to stand for election in national and provincial elections. ​The Constitutional Court earlier this year declared the current Electoral Act unconstitutional in that it only allows for political parties to make themselves available for election at national and provincial election. The ISI aims to complete the report ready for publication in early January. It will thereafter embark on a campaign to promote its position to the public and public policymakers. The institute aims to also fully participate in the parliamentary processes to follow to deliberate a new electoral model

The Inclusive Society Institute (ISI) hosted a Financial Sector dialogue as part of its ongoing research aimed at developing an economic blueprint for growing the South African economy. The ISI will be hosting a series of dialogues with various sectors over the coming months. Each dialogue will comprise two parts. Part 1 is aimed at getting a deeper understanding as to the sector’s take on what, in terms of the current global economic architecture, the country is not doing right and how to fix it, whilst part 2 will focus of generating new ideas capable of lifting the economy’s growth trajectory. The dialogue was attended by representative drawn from the banking, insurance, accounting & advisory, and the financial analysis fraternity. It was also attended by Wolfgang Fengler, the lead economist for Southern Africa, from the World Bank, and Arthur Minsat, the head of the Africa and Middle East Unit of the Organisation for Economic Cooperation and Development (OECD).

Buyelwa Sonjica Khanyisile Kweyama Chairperson Deputy Chairperson The Advisory Council of the Inclusive Society Institute (ISI) met on Saturday, 13 March 2021, for purposes of electing its Chairperson and Deputy Chairperson and to help chart the research work for the next financial year of the institute. The Advisory Council elected Ms Buyelwa Sonjica as its Chairperson and Ms Khanyisile Kweyame as its Deputy Chairperson. The work of the institute will be driven in line with the working approach that the Board, as formulated by its Chairperson, Mr Vusi Khanyile. He defined an inclusive society as one in which people who are at risk of poverty or any other forms of exclusion, are able to gain access to the resources and opportunities that they need to fully participate in the social, economic and cultural life of the nation. The key issue to note, he said, was that people don’t just wake one day and decide that have access to resources and opportunity. An inclusive society requires deliberate policies and practices to ensure that people have the access that they require, and wherein both the state and the market recognise and play their respective complimentary roles. Key sectors that the institute will be focussing on include, amongst others, the economy, health, local government, women empowerment and social cohesion.

The Inclusive Society Institute (ISI) hosted a second round of dialogue with the Financial Sector as part of its ongoing research aimed at developing an economic blueprint for growing the South African economy. Whilst round one focussed on what is going wrong in the economy, and how to fix it, round two focussed on generating new ideas. Out of the box thinking that would help catapult the economy onto a higher growth trajectory. The dialogue was attended by representative drawn from the banking, insurance, accounting & advisory, and the financial analysis fraternity. It was also attended by representatives of the World Bank, and the Organisation for Economic Cooperation and Development (OECD). A number of innovative ideas were generated during the discussion. They included, amongst others, programmes aimed at pooling private sector resources into a private sector driven and managed bursary scheme specifically geared to deliver the skill set required to grow the economy, and the use of the presidential database of experts (e.g., engineers, accountants, etcetera) to provide, in an effort to reverse the decline in services, support to local municipalities by providing the necessary capabilities. New ideas were also generated with regard to reducing bureaucratic red-tape, and the easing of doing business. New concepts were also raised with regard to South Africa meeting its climate change obligation, how to improve the special economic zones regime, and technology and ICT roll out. Strong opinions, together with new ideas, were also raised with regard to the need for social cohesion and an active citizenry that is crucial to underpin economic growth and stability. The report capturing the discussion is expected to be completed by the end of April.

CASAC: Council for the Advancement of the South African Constitution The ISI’s Chief Executive Officer, Daryl Swanepoel, and the Convenor of the panel of experts assembled by the institute to consider electoral reform in South Africa, Roelf Meyer, on Wednesday afternoon, 24 March 2021, presented the panel’s proposals for electoral reform to CASAC. The presentation formed part of the ISI’s campaign to promote electoral reform in South Africa that would give effect to the Constitutional Court’s judgement declaring the current Electoral Act as unconstitutional. The Court granted Parliament two years in which to amend the Electoral Act to grant independent candidates the right to make themselves available for election to the national and provincial legislatures. To view the ISI’s report on electoral reform, click HERE

The President of the Republic of South Africa, HE Cyril Ramaphosa, in his State of the Nation address in February 2021, announced government’s intention to establish a National Anti-Corruption Agency for South Africa. The agency will report directly to Parliament. The Inclusive Society Institute (ISI) will be undertaking research into the potential desirability, functioning and structuring of such an agency within the South African context. The research will, in the search for best practice, explore international examples and their levels of success. It will look at the theory behind such institutions, their models and practical implementation, in order to translate it into workable solutions and actions within the South African context. The ISI intends to execute the research in conjunction with the University of Stellenbosch’s School for Public Leadership, to which end a scoping workshop was held on 24 March 2021 between representatives of the university and the ISI.

The Inclusive Society Institute has embarked on an extensive economic research project, which will culminate in a comprehensive ‘Blueprint for rejuvenating South Africa’s economy’. The methodology includes a series of dialogues with various sectoral stakeholders and policymakers. These dialogues each have two parts to them: Gaining an understanding from the particular sectors perspective as to what the country needs to correct policy wise What new initiatives / policies should be introduced to shift the economy onto a higher growth trajectory. This dialogue with the energy sector was held on Tuesday, 8 February 2022. Some key points raised included, amongst others: Questions were raised with regard to understanding what’s best in terms of the public good, that is private sector versus public sector dynamics. It relates to the revenues that can be used for the broader societal upliftment. The lag time between project announcement versus delivery was bemoaned. For example, lengthy, complex and slow regulatory approval, appointments, planning approval, etcetera. In addition, tenders should be geared towards South African entities. How will the switch to electrical motor vehicles fit into the greater picture of supplying sufficient electrical power? Several inhibitors were raised: Cost of labour The need to shift perspective Central planning missing in the sector New opportunity levers need to be rapidly identified Infrastructure deficiencies means we lose out on opportunities. Liquid fuels: Refineries closing, other need major overhauls There seems to be a disjuncture between planning and implementation Skilled worker shortages – a mismatch between the education curriculum and real economy needs. Model also needs to be overhauled to allow for on the job learning. Questions were raised with regard to NERSA’s functionality A full report on the deliberations will be released in due course.

On the 14th of April 2021, the Inclusive Society Institute (ISI) hosted a panel discussion on the re-invigoration of South Africa’s economy. The discussion forms part of the institute’s broader economic research into new pathways for economic growth in South Africa. The research seeks to both identify areas where the local economy is out of sync with the globally accepted economic architecture for middle-income developing nations, and to ‘think outside of the box’ in an attempt to develop new solutions capable of placing South Africa onto a higher GDP growth trajectory. The key speakers at the event were Ms Marie Marie-Nelly, Country Director, Africa, the World Bank and Mr Wolfgang Fengler, its Lead Economist for Southern Africa. They were joined by Dr Arthur Minsat, Head of the Unit for Africa and Middle East, Organisation for Economic Cooperation and Development (OECD). The panel comprised Theo Vorster, an economist and CEO of Galileo Capital (the institutes economic research group convenor); Prof Tania Ajam, who is associated with the School of Public Leadership at the University of Stellenbosch (SPL) and a member of the President’s Economic Advisory Council; Prof Zweli Ndevu, the Head of SPL and Deputy Chairperson of the ISI; and Ms Joan Fubbs, a director of the Centre for the Education in Economics and Finance (CEEF). The themes discussed included: What do the multilateral funding institutions consider the most appropriate economic structure, policies and environmental conditions needed in middle-income emerging economies and why? In terms of the aforementioned architecture, from a World Bank perspective, where is South Africa performing well, and where is it falling short? What are the corrective measures that need to be taken to reverse the current depressed economic conditions in South Africa? In terms of the aforementioned architecture, from an OECD perspective, where is South Africa performing well, and where is it falling short? What are the corrective measures that need to be taken to reverse the current depressed economic conditions in South Africa?

The Ministerial Advisory Committee on the electoral system held its first consultative meeting with stakeholders on the 30th of March 2021. The Inclusive Society Institute (ISI) was invited to present their proposal as contained in its report “Proposed Electoral Model for South Africa”. The institute was represented by its Chief Executive Officer, Daryl Swanepoel, and the convenor of the expert panel established by the ISI to develop the proposals. The essence of the ISI’s proposal are: A 400 -national assembly, 300 of which are elected via 66 Multi-Member Constituencies (MMC) and 100 elected via a compensatory proportional representation list. MMCs are based on the boundaries of the current municipal district and metropolitan council, with a number of MMCs in each metropolitan area based on sub-council/sub-regional lines. Party and independent candidates are able to participate for between 3 and 7 seats per MMC. This ensures multi-party representivity across the whole country, and greater accountability to the voters in that representative are accountable to electorate in particular MMCs. The voting system is simple to understand and implement, with only one ballot paper for the national election and one paper for the provincial election. The full proposal is available HERE After considering the range of proposals made at the consultative forum, the institute is of the firm belief that it model is best suited for the current South African realities, and that the main tenets thereof will find its way into the new Electoral Act.

The Inclusive Society Institute, through its CEO, attended the Copenhagen Democracy Summit 2021, which was held on a hybrid basis in Copenhagen and virtually from 10 – 11 May 2021. The Copenhagen Democracy Summit is hosted annually by the Alliance for Democracy Foundation, who has as its objective is dedicated to the advancement of democracy across the globe. The prominent topics that came under discussion included the protection of democracy and the rule of law, protecting democracy from authoritarianism, defending democracy as a core value and investment in democracy tech. In a presentation of the Democracy Perception Index 2021, it was noted that the single biggest threat to democracy is economic inequality. Other key points made during the dialogue was that values should drive foreign policy, and that the rule of law leads to prosperity. The positives and real dangers of social media to elections and democracy was covered extensively during the second day of the summit. Keynote speakers included, amongst others, Anders Rasmussen, former Prime Minister of Denmark and Secretary General of NATO, Zuzana Čaputová, President of Slovakia, Jeppe Kofod, Minister of Foreign Affairs of Denmark, Adam Schiff, Member of US Congress, as well a number of other former presidents, parliamentarians and democracy experts and commentators from around the world.

The Inclusive Society Institute has embarked on an extensive economic research project, which will culminate in a comprehensive ‘Blueprint for rejuvenating South Africa’s economy’. The methodology includes a series of dialogues with various sectoral stakeholders and policymakers. These dialogues each have two parts to them: (i) Gaining an understanding from the particular sectors perspective as to what the country needs to correct policy wise, and (ii) what new initiatives / policies should be introduced to shift the economy onto a higher growth trajectory. This dialogue formed the 1st part of the manufacturing sector engagement. The main challenges from the various manufacturing sectors can be grouped into: ​IDEOLOGY AND RELATIONSHIPS BETWEEN INDUSTRY, UNIONS AND GOVERNMENT: The ideology of the governing party’s National Democratic Revolution seen as antithetical to entrepeneurship e.g attenuation of property rights, mutual lack of trust between private sector and government. Bureaucrats don’t understand business and vice versa, Cadre deployment has destroyed institutional capability at all levels. Govt puts in place first world standards for a third world country. The question was raised: Should entrepreneurs look to govt to solve the problem or should government to step aside and the entrepreneurs solving the problem? On the other hand, business and government are seen to be inter-dependent. A clear and commonly accepted vision for the country is lacking. ​LABOUR LAW: skewed towards big business and labour (formal sector), not small or rural business or informal sector. Minimum wages prohibitive in the rural area, and cost and difficulties in discipline and dismissing non-performing workers. Trade unions demanding double digit increases (will sacrifice jobs for increases). Perceptions that an expensive but low productivity and low skills labour force undermines growth. Impact of BEE – smaller business can’t work with government directly but through a third party which typically adds no value but adds to costs. There are different views on what localisation is and how it should be implemented. ​QUALITY AND PRICE OF UTILITIES/INFRASTRUCTURE/SECURITY: Dysfunctional municipalities, Eskom’s loadshedding, lack of public transport creates reliance on taxis, roads, planning office slow in transferring land ownership, state vet challenges. These force entrepreneurs to invest in water and solar energy systems which increase costs of doing business. We need to get the municipalities right. LOVE HOWICK is an organisation taking over the municipality’s role but at cost to the sponsoring businesses. Costs of security of assets and staff, farmers murdered and increased cost of security. ​RED TAPE: “Make it easy for business to do business”. Costs of compliance with the various plans required by government and accreditation are high and require dedicated staff and resources which would be more profitably applied elsewhere. E.g. Sugar tax process. The business gets a phone call the day before and SARS arrives at the door and they have to explain how the tax works. No scheduling or prior meeting. It disrupted the audit with Woolworths. ​SKILLS AND EDUCATION: It is important to improve basic education as well as science, technology, engineering and mathematics skills development. FOREIGN SKILLS and a positive attitude to immigrants is critical as well as fixing Home Affairs, improving the efficiency of renewal IDs and passports. Business people need it to travel to see customers, suppliers etc. CULTURE OF ETHICS, WORK ETHIC, PRIDE IN COUNTRY, especially the youth ​FINANCIAL SECTOR: invests in malls/consumption (e.g. luxury cars) but not industry/manufacturing. ​TOO MUCH EMPHASIS ON GRANTS, a culture of dependency and an economy which cannot support it. ​INSUFFICIENT EXPORT ORIENTATION: Need export incentives and provide import protection for infant industries until they are able stand on their own. ​NEED RUTHLESS POLICY IMPLEMENTATION, NOT JUST DIAGNOSTICS AND PLANNING: The NDP is a good plan but remains largely unimplemented.

The Inclusive Society Institute has embarked on an extensive economic research project, which will culminate in a comprehensive ‘Blueprint for rejuvenating South Africa’s economy’. The methodology includes a series of dialogues with various sectoral stakeholders and policymakers. These dialogues each have two parts to them: (i) Gaining an understanding from the particular sectors perspective as to what the country needs to correct policy wise, and (ii) what new initiatives / policies should be introduced to shift the economy onto a higher growth trajectory. This dialogue formed the 2nd part of the manufacturing sector engagement. A number of initiatives were proposed, amongst others: The primary steel manufacturing needed to be more competitive, either through the improvement of the existing and/or the introduction of new investors with more efficient technology. Old and inefficient technology should not be protected via protective duties. As regards the steel industry, where protective duties are currently in place, whilst the local producer seemingly has an inability to provide sufficient product, proposals for a USA-type exemption system was proposed. Similarly, the current basket-price mechanism has to be revisited. On protection mechanisms: One cannot protect the primary producer, without protecting the downstream industries. A number of examples for the removal of red-tape and the labour law overhaul were made. Revitalise the previous rural industrial development parks, also considering the past-incentivisation mechanisms. Greater efforts on stimulating demand, with special emphasis on creating markets beyond the local. Local markets are too small. Products need to be geared to be internationally viable.

The CEO of the Inclusive Society Institute, Mr Daryl Swanepoel, attended the Progressive Governance Summit which was held from 9 to 11 June 2021. Keynote speakers at the opening session included Olaf Scholz, Vice Chancellor and Federal Minister of Finance of Germany and Justin Trudeau, Prime Minister of Canada. Scholz spoke about the tasks for progressive governments to fend off authoritarian regimes. He said that the biggest tasks for progressives was to create hope by letting every citizen know that he/she has a future in the country. This would counter populist rhetoric. Trudeau’s message concurred. He said the role of progressive governments were to reassure, support and empower its citizens. A wide range of topics were discussed over the three days, including, amongst others: Successful governing in an Age of Complexity: Humble as the New Vision The New World of Work after the Pandemic: Who are Winners and Losers? Tomorrow’s Tech Economy: Pathways to Carbon-free Innovation Landscapes Resisting the Far-Right: Progressive Narratives that Restore Trust in Democracy Europe’s Sovereignty Post-Pandemic: Entering an Era of Deglobalization? From Building Back Better to the European Green Deal: Advancing the Climate Agenda Strategies for a World without Right-Wing Populism and Nationalism Placing Politics above Economics: How Covid has led to a Public Finance Paradigm Shift Europe in the 2020s: Reinvigorating the Spirit of Reform People Power: A message to the G& The Struggle for Democracy: How to Turn Back the Authoritarian Tide Building a New Era of Multilateralism Germany after Merkel Campaigning during and after the Covid-19 Pandemic New Economic Paradigms After the Crisis: Centre-Left Comeback or Another Conservative Decade Empowering the Politically Abandoned: Addressing Inequalities in the 2020s Visions for Europe’s (Digital) Future Stronger Together! Background Discussion on European Solidarity between National Parliamentarians from EU Member States Mayors as Progressive Motors Progressive Majorities: Best-Practices Politics on Keeping out the Centre-Right Intergenerational Justice and Social Mobility Post-Covid

Analysts have attempted previews on how the relationship between the US and Africa will unfold under a Biden administration. Given the prominent role of China in Africa, it is also important to understand US – China relationship expectation, and how African countries ought to position themselves within this contestation. Broadly speaking, analysts have suggested that there will be a normalisation of diplomatic relations between the US, China and Africa. In this regard: The Biden administration will build on and deepen the pre-Trump initiatives as they relate to Africa. They will take a more keen interest in Africa. The contestation with China will remain, especially as it relates to trade, democracy and human rights; but the narrative will be more civil and competitive as opposed to combative. Is this so? To date we have seen mixed signals. What to expect going forward? To answer these questions the Inclusive Society Institute held a dialogue on Tuesday, 22 June 2021, with foreign policy experts from the US and South Africa. It aimed to answer the following questions: Expected US policy on Africa Expected US policy on China How should African countries, who wish to retain good relationships with both sides, position themselves to achieve mutually beneficial outcomes. Participants included: Prof William Gumede, Executive Chairperson, Democracy Works and Associate Professor at the School of Governance, University of the Witwatersrand, who moderated the discussion. Daryl Swanepoel, Chief Executive Officer of the Inclusive Society Institute Ambassador Gert Grobler, former South African diplomat and currently a Senior Research Fellow at the Zheijiang Normal University, China. Dr Bob Weseka, Coordinator: African Centre for the Study of the US, University of the Witwatersrand Prof Tom Sheehy, Principal, Quinella Global, former staff director of the House Foreign Affairs Committee Charlie Snyder, Institute for World Politics, former National Intelligence Officer for Africa Dr Joshua Stone, inter alia, former Professor of International Instruction, Beijing, China—DePaul University, and former Congressional Aide to Congresswomen Barbara Lee.

Inequality in South Africa remains stubbornly high. High-level evidence suggests that twenty-seven years into the new democratic dispensation white citizens remain, on average, three times wealthier than their black compatriots. Inequality within the black community has also deepened. The ISI is of the opinion that this knowledge on its own does not help fully understand the transformational gains made in South Africa, nor does it properly explain the reasons behind the lingering high inequality, which understanding is necessary for the development of policy interventions capable of addressing the problem. In order to find answers, the institute will be conducting a nuanced and more in-depth analysis of data which will culminate in an ‘Inequality, poverty and socio-demographic change in South Africa 27 years after the end of apartheid: an action- and policy-oriented analysis’ report. To this end the Inclusive Society Institute, in collaboration with the Swedish Institute for Future Studies, held a technical workshop on 1 July 2021, to consider: Systemic approaches to understanding inequality and the implications for its measurement; What the best inequality measurement instruments and lenses are for South Africa? This entailed a critical discussion of conventional inequality measures and the consideration of alternatives; and Data shortcomings and alternative data sources for testing and evaluating inequality within society. A high-level panel of experts participated in the dialogue, including: Dr Ellen Ehmke, Senior Expert Inequality, Global Issues; Robert Bosch Stiftung, Germany Professor Jan Jonsson, Swedish Institute for Social Research, Stockholm University Professor Carina Mood, also from the Swedish Institute for Social Research, Stockholm University Professor Gustaf Arrhenius, Director of the Swedish Institute for Future Studies Dr Anja Roux, lead researcher on inequality for the Inclusive Society Institute and her team. The Inclusive Society Institute’s inequality research is being supported by the Friedrich Ebert Stiftung, who’s South African representative, Sebastian Sperling, and his Johannesburg team, also attended.

The Inclusive Society Institute (ISI) hosted an exploratory discussion on Monday, 19 July 2021, as to what interventions were needed to address the perceived breakdown of crime intelligence in South Africa. Experts have for some time now been warning about such a breakdown, the manifestation of which was confirmed through the looting riots of last week that took the country and its security establishment by surprise. In the panel discussion between security experts, who were jointly hosted by the ISI and the In Transformation Initiative, panellists concluded that the riots pointed to a spectacular breakdown in crime intelligence. They were however of the opinion that this was to be expected given the dysfunctionality within the crime intelligence community which had become evident to the crime research community for some time now. The objective of the dialogue, moderated by Mr Roelf Meyer, was to make an assessment as to the of state of play of crime intelligence in South Africa, and to consider the type of interventions that were required to ensure well-functioning crime intelligence in the country. The dialogue served as a scoping exercise for potential research to be undertaken by the ISI and the In Transformation Initiative.