The president's address dealt with what he sees as the main aim of government, fighting poverty
Political Correspondent

Not many surprises, perhaps, but President Thabo Mbeki's state of the nation address in Parliament on Friday has been recognised by political analysts as a solid and honest mid-term assessment of government's progress so far and the challenges that lie ahead.

No significant changes in policy were announced, and if Mbeki disappointed in failing to come to grips with the major crisis of our time, HIV/AIDS, or in announcing a tougher stance on Zimbabwe as his critics hoped, he did deal systematically with what he regarded as the main aim of government, namely fighting poverty.

For the poor, he held out the promise of higher-than- inflation rate increases in old age pensions and child grants, lower taxes and increased social spending all to be announced by Finance Minister Trevor Manuel in his budget later this month and a massive mobilisation and registration campaign for social grants.

A strong theme of the speech was the need to change the relationship between state and society from one of provider to passive recipients to that of a common involvement in a shared effort towards social upliftment. Mbeki called on all social agents to participate in a campaign of volunteerism called Vuk'uzenzele arise and act.

The speech focused on the need to eradicate poverty and underdevelopment and provided a sound and honest assessment of the progress made so far as well as the challenges that lie ahead. Successes were noted in the fields of water, electricity and housing provision and in land reform, while failures were frankly laid on the table.

He outlined the framework of future policy directions, leaving the respective cabinet ministers to fill in the details in the weeks ahead. He called for a social accord between government, business and labour to achieve higher growth and said details would have to be elaborated at the planned growth and development summit later this year.

On Zimbabwe, Mbeki announced that an SA team of election observers drawn from business, government, labour and civil society groups under the leadership of former ANC MP and ambassador to Saudi Arabia, Sam Motsuenyane, would be sent to help ensure a free and fair presidential election.

A comprehensive policy on black economic empowerment would be adopted, a council established, as well as government structures and systems, in line with its objectives. A comprehensive review of all institutions assisting small, medium and micro enterprises would be undertaken and the microlending sector enhanced. The arms procurement process would proceed. Mbeki also said Microsoft would provide all the computer software needed for SA's 32000 public schools.

Centre for Political Studies director Stephen Friedman hailed the announced increases in old age and child support grants as the most effective intervention in poverty since 1994. But he felt that while Mbeki had the intelligence and grasp of the strategies required to address the country's needs, he lacked the style and ability to inspire people to participate in them.

It was not convincing simply to say government was performing a good managerial task in reaching delivery targets, Friedman said. Government needed to be more in touch with its constituency and more responsive to its needs if the Vuk'uzenzele campaign was to succeed.

Idasa governance researcher Judith February applauded Mbeki's renewed emphasis on expanding democratic values and the explicit commitments made to the principles of good governance in the public service as these were vital to improved delivery. But his focus on underdevelopment and the alleviation of poverty was overshadowed by a lack of detail and the absence of any announcement with regard to industrial policy.

Africa Institute CEO Eddy Maloka said he believed the speech reflected the growing maturity of government in its assessment of its capacity and limitations to attain social goals.

At the end of the day, Mbeki showed he was sticking to his guns in all respects, regardless of his critics whether this be reaching social delivery targets or not budging on his previous, controversial policy announcements on HIV/AIDS and Zimbabwe. Blindly obstinate to some, doggedly determined to others.