Parliament’s Role
Scope of lockdown
South Africa is under a severe lockdown since 27 March. Only essential service workers, businesses, public transport and local travel for essential needs are allowed. There are no flights or sells of hot food, alcohol, cigarettes. Schools and universities are closed, though some of them are functioning through e-learning. Also, funerals are restricted to 50. These measures are being enforced through the use of the police and the army, and they are subject to penalties for transgressions.
The country is focusing on support for hospitals, house visits screening, hygiene awareness and food parcels. There has been 143 570 people tested, 3953 infected, 75 have died and 1473 recovered. However, the onslaught will probably come during the annual flu season from June to September.
South Africa has put in place a “Risk adjusted strategy” from 1 May to gradually re-open economy. 5 levels of risk are being based mainly on health and economic considerations. The country will move from current level 5 to 4 on 1 May nationally and gradually towards level I, with the fewest restrictions but each locality will adjust levels according to relevant conditions.
Challenges
South Africa’s state is performing far better than expected but still not well enough. There is an existing gap between excellent plans and capacity and resources to deliver.
Predictably, higher income earners are obeying lockdown far more than the poor. As a result, glaring, mainly racialised, inequalities of South Africa are being dramatically highlighted. Also, the pandemic has caused a significant increase in hunger and remains a potential source for social volatility. Additionally, there has been to some extent abuses by army and police, and corruption. Finally, is very difficult to find the balance between health and economic considerations.
Role of Parliament
Parliament re-opened after 3 weeks through e-parliament system and virtual meetings. Members of Parliament are very active in the oversight of lockdown implementation, awareness, responses to public queries, funding and raising funds for personal protective equipment, distributing food hampers and taking salary cuts.
The Parliament has been processing Covid-19 legislation and policies such as the Disaster Management Act Emergency regulations, health regulations and social grants. Also, parliamentarians have reached a significant overhaul of budget and supplementary budget is to be processed soon. As a result, the Parliament has been playing an important role in overseeing implementation of Covid-19 decisions.
Challenges
One of the most important challenges that parliamentarians face is finding the balance between legislative and constituency work. Additionally, there is a considerable pressure of executive to move fast and parliament to deliberate, leading to a concern about executive side-lining parliament. Finally, there are practical difficulties in encouraging virtual public participation.
On Economic Recovery
South Africa’s economy to contract between 4 and 10% instead of estimated 0.9%GDP growth. In this context, the government is applying a risk-adjusted three phased re-opening of the economy, balancing mainly economic and health considerations.
The first phase started on 15 March and it is based on tax relief, disaster relief funds, emergency procurement, wage support, and funding to small businesses.
The second phase started on 21 April and consisted on a R500 billion social and economic stimulus package – 10% of GDP – from the National Fiscus, unemployment insurance, international institutions and the private sector to stabilise the economy, spur supply and demand and protect jobs. These measures also include, interest rate cuts, mobilizing the Reserve Bank to provide more liquidity, including buying government bonds in the secondary market; support for business, especially SMMEs, and workers. In addition, the government has put in place a loan guarantee scheme with banks for businesses, urged banks and insurance companies to reduce instalment payments and providing debt relief, established tax concessions and subsidies, and funding for municipal services, especially water, electricity and shelter for the homeless. Last, social grant increased through a 6 months grant for unemployed – a “basic income grant” and the increase in food parcels
The third phase contemplates the implementation of a long economic recovery strategy with a significant restructuring of the economy, including to ensure a major reduction of inequalities.
Role of World Bank?
In this scope, International Financial Institutions could contribute by providing loans with very low interest rate and minimal, if any, conditions. Additionally, they can assist countries to reduce inequalities. Also, it is important to review WBG policies to ensure that they effectively contributes to reducing global and domestic inequalities.
Finally, IFIs can reduce or write of some debt of poor countries and help to strengthen the health sector.
Conclusion
We have brought this pandemic on us. At a huge cost. No one wanted this. But we are here now. We must learn the lessons. Most of all, that we need to treat each other and the environment much better and work more together to tackle inequality far more effectively. Else we have learnt nothing.
Hon. Carrim has been MP since 1994. He is also a former Minister of Communications and Deputy Minister of Cooperative Governance. He was the Chair of the Standing Committee on Finance in the lower house from 2014-2019 and is now the Chair of the Select Committee on Finance in the upper house. Mr. Carrim holds an MA in Sociology from Warwick University, UK, and an International Diploma in Journalism. He has been active in the anti-apartheid struggle since his high school days.