29 October 1992

1. INTRODUCTION

In recognition of the economic challenges facing South Africa, we believe that major economic stakeholders need to develop co-operative mechanisms for addressing South Africa's economic challenges. Organised labour, organised business and the governing authority have a central role in developing strategies geared toward the generation of sustained economic growth, the addressing of distortions in the economy, stability and the addressing of social needs. These areas need to be addressed as a matter of urgency if the political transition is to succeed.

It is for this reason that we acknowledge the need to establish a National Economic Forum. We are mindful of the clause contained in the Laboria Minute of 14 September 1990, which reads: "all of the parties record their willingness to discuss in an appropriate forum, the impact of labour relations issues on the economy." Taken together with other developments, it is now necessary to expand the debate to ensure that broad economic and social issues are adequately addressed.

2. AIMS AND OBJECTIVES OF NATIONAL ECONOMIC FORUM

2.1 Co-operative Body of Major Economic Stakeholders

The National Economic Forum should be a consensus-geared co-operative body to deal with economic and related socio-economic issues. The National Economic Forum should aim to provide a mechanism through which economic stakeholders can address the economic challenges facing the country. It would in the first instance be a body operative for the transition period. The National Economic Forum will seek to support the transition to democracy.

2.2 Economic Structure, Socio-economic Needs and a Framework

The National Economic Forum should focus on both economic structure and distortions therein, as well as socio-economic needs. The National Economic Forum should achieve a balance between a focus on short term challenges, including those of the transition, and the formulation of a long term economic framework. The National Economic Forum should attempt to reach short term decisions which are sustainable in the medium term to long term.

2.3 Economic Restructuring

Any major economic restructuring undertaken, particularly during the period of transition, should have the support of all economic stakeholders. The National Economic Forum must therefore deliberate on any major proposed restructuring. Each party nonetheless retains its freedom of action in its own sphere of responsibilities.

3. SCOPE

3.1 Any party to the National Economic Forum is entitled to table any issue for discussion. The National Economic Forum would then establish procedures to decide which issues should receive the attention of the forum, and which issues would be better dealt with elsewhere.

3.2 The National Economic Forum will seek to work co-operatively with the legislative and executive framework of the day.

3.3 The National Economic Forum should aim to reach practical and effective consensus on issues tabled through reason and debate. Provision should also be made to record dissenting views. It must be accepted that consensus will not be possible on all issues. In such event, there shall be no resort to arbitration.

3.4 Relationship to Other Bodies

It is not the intention of the National Economic Forum to replace other negotiating, advisory or consultative forums which exist or are being conceptualised at national, regional, industrial or sectoral level. There would however be a need for co-ordination in order to develop a coherent, integrated approach to economic growth and development.

4. PARTICIPANTS

4.1 The principal participants in the National Economic Forum should be representatives of organised business, organised labour and the governing authority of the day. The principal of parity of the sizes of delegations should be applied. Mechanisms will need to be found to relate to key political and economic players.

4.2 The National Economic Forum must be fully representative of organised labour, organised business and the governing authority. Criteria will need to be formulated to determine participation in the National Economic Forum and the level of that participation. Any party who believes that it meets the criteria set out will be invited to seek membership.

4.3 In terms of participation, a distinction needs to be drawn between a process committee, plenary sessions and working groups. Provision must be made for specialist and technical input.

5. STRUCTURE

5.1 The National Economic Forum will meet in plenary from time to time to receive reportbacks and to ensure the transparency of the process.

5.2 The Process Committee will define the mandates of working groups and receive progress reports from working groups.

5.3 Working groups will carry out the work programme of the National Economic Forum.

5.4 The plenary sessions should be chaired by an appointed chairperson/s, acceptable to all parties. Chairpersons of the Process Committee and working groups should be drawn from the principal parties on the basis of the need for inclusions and continuity.

5.5 A permanent secretariat - overseen by and accountable to the Process Committee - will need to be established and should combine participants from the principal parties.

6. RELATIONSHIP TO TRANSITIONAL ARRANGEMENTS

6.1 We enter this process mindful of the fact that unless rapid progress is made in the political arena, the National Economic Forum process could rapidly face insurmountable obstacles and fail.

6.2 We accept that some co-ordinations between political and economic change will be necessary.

7. PROCESS, TIME FRAMES AND MECHANISMS TO GIVE PRACTICAL EFFECT TO CONSENSUS AREAS

7.1 Rules of conduct will ensure that the National Economic Forum can operate in a spirit which will allow it to achieve its aims.

7.2 A statement of intent for the National Economic Forum prefaces this document.

7.3 Once established, the National Economic Forum should aim to reach practical and effective consensus on issues tabled, where this is possible.

7.4 The mandating needs of all participating parties need to be respected, without allowing mandating procedures to unduly retard the pace of work of the National Economic Forum.

7.5 Unless media statements are jointly agreed, any party/individual who speaks to the press should do so on their own behalf, and not on behalf of the National Economic Forum.