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Hello and welcome to the So What podcast, in which political economic analyst JP Landman

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discusses the issues uppermost in the minds of South Africans. You can find a written

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version of this content on JP's website, jplandman.co.za. I am Ruda Landman and I am your host.

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These first few recordings were done at our dining room table, but we will soon be moving

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into a studio. Hello and as always a very warm welcome to this conversation which accompanies

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JP's latest newsletter. This one is dated the 14th August 2023 and it's titled, Coalitions:

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Important Shifts. JP, you wrote about the coalitions for the first time in May, but

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you say that three developments have happened since then. Tell me about that. Yes, absolutely.

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Since May, three important developments or shifts. The first is that on the 11th of July,

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the Incartum Freedom Party and the DA signed an agreement to cooperate in coalitions at

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the local government level in the province of kwaZulu Natal. It's a unique agreement

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in the sense that it's fairly detailed. It spells out 13 commitments that the parties

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make and 15 priorities that they set for those municipalities where they will come into power.

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The 13 commitments are very interesting. There's the normal stuff of commitment to the rule

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of law and so on, but they're also interesting new noises or new approaches. For example,

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they say that there will be a strict separation of party and state. All appointments will

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be merit based. Then the normal thing which everybody says nowadays, corruption will be

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eradicated and opposed and there will be a non-negotiable commitment to the rule of law

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and constitutionalism. I think it is important in coalition politics that you set out what

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the values are in which you base your coalition and that you have to agree on those values.

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That they've done in their agreement. But then they go a step further beyond their commitments

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and they list 15 priority areas where they will work in municipalities where they capture

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the power. Now again, there are obvious things like water, waste management, sewage, public

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transport and so on, but they're also more unusual items. For example, there's a very

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clear commitment to spend 8% of the value of municipal assets on maintenance. Now this

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is breaking new ground as far as local government levels go. We all know that maintenance is

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a huge problem and this kind of commitment is essentially the thing that addresses that

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deficit. There's also a clear commitment to review organograms of all municipalities,

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to review staff complements and reviewing salary scales downwards before filling vacant

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posts. So that is addressing another big problem that we have with local government and that

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is that salaries and wages just gobble up all the available money. So the fact that

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the DAA and IFP came to these agreements in respect of course to the Natal, I think is

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quite an important step. Basically it meets the test that we articulated in May. What

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we have to do in coalition politics in South Africa is to focus not on who will govern

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but how we will govern. Those letters need to be switched around. This agreement between

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the IFP and the DA takes us very far on the road to how government will take place instead

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of who. When or how will this be put into practice? Well currently the IFP and DA are

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controlling 13 local governments in KwaZulu-Natal. So it has already started. The second development

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that you refer to? The second development happened at the end of July, the last weekend

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in July, when the ANC Veterans League had the national conference which was attended

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by some 460 delegates from branches from all nine provinces. So the Veterans League have

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really in the last while established themselves by setting up branches. Now to be a veteran

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of ANC you must be over 60 years of age and you must have served the organization for

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40 years uninterruptedly. So it's quite a test. They had a national conference, the

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president went there, he called the Veterans League the loud start of the ANC, but what

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is very important is that they stated that a coalition between ANC and EFF is an unethical

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coalition. Now those are very strong words to use and for a senior body like that to

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say that explicitly and that unambiguously I think was also quite a strong development.

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Since we've written this note in the last week, Fekili Mbalula, the secretary general

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of the ANC was asked about this decision by the Veterans League conference and what was

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very interesting is he handled it very diplomatically, something for which he is not known. And he

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just said you know it's the view of the Veterans League and the views of all parts of the ANC

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will be taken into consideration, but he did not denounce the statement by the Veterans

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League that a coalition between ANC and EFF is unethical. So clearly it tells you that

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there's movement, there's fluidity. The third development took place on the first

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weekend in August, I think it was 4 and 5 August, when deputy president Po Maschettile

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convened a conference on coalitions on the campus of the University of the Western Cape.

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And there a very interesting thing happened, again Fekili Mbalula made a speech and he

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left, he not only left the door open, he specifically said that the ANC could go into a grand coalition

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with the DA on local government level. He emphasized that afterwards in meetings with

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journalists that he was talking about local government, not about national government,

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that fact remains the door has been opened. So if you put all these developments together

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that has taken place in July and August, then I think we have seen considerable movement

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in the body politic towards what I called in May a grand coalition of the ANC and the

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DA. At the UWC meeting it was also quite clear

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that the largest parties agree on a minimum threshold before a party can be represented

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in local provincial national government. Do you see that happening?

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Yes, you're quite right, there was clearly agreement between the two biggest parties

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and of course the civilist opposition from all the smaller parties. I think that's very

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predictable. Now nobody, neither the ANC nor the DA put any numbers on the table at the

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Western Co-conference, but earlier in the year the ANC signaled that they would be in

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favor of a 1% threshold. The DA signaled that they would be in favor of a 3% threshold.

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So the number will, if it happens, it will land somewhere between 1 and possibly 2%,

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right about. Now a 1% threshold would have an interesting impact. It will eliminate 8

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of the 14 parties that we currently have in parliament, more than half. It will eliminate

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in the Johannesburg metro 9 of the 18 parties currently sitting in the metro. In Swaranday

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it will eliminate a whopping 10 of 15 parties and in Elstom and Delabay 5 of 13 parties.

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So you can clearly see small parties representing a really small minority of the voters are

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really influential because there's so many of them and that is what the reaction is against,

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also from the public and that is what the DA and ANC are trying to address. Now of course

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the ANC and the DA being the two biggest parties will benefit from such an arrangement and

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they argue that it will enhance stability, which it probably will, and it will reduce

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horse trading, which it probably will. The smaller parties again argue that it is inherently

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undemocratic and you're doing something which is not in line with the wishes of the voters

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and you deprive the voters of choice and they're also correct. So there are strong arguments

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on both sides of this threshold decision. Now it's quite interesting to see what's

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happening elsewhere. Internationally thresholds vary between 0.67, two thirds of 1% in the

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Netherlands to as high as 6% in Moldova. The most common threshold is 5% and one finds

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that in countries like Germany, New Zealand, Poland and Hungary. Denmark has a threshold

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of 2% while the threshold in Sweden and Norway are sitting at 4%. So you're talking old

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established democracies here. Scandinavian countries are hardly countries with immature

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democracies and they have 2%, 4% and 5% thresholds. So there is an international precedent for

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this. However, the question that one must ask is if you apply the 1% threshold in South

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Africa, parties like the African Christian Democratic Party and Al Jomar will be eliminated

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from parliament. Do you really want to force these people to go extra parliamentary? I

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mean that's what the consequence of a 1% threshold decision would be. Do you think that would

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happen or would their voters be absorbed in the bigger parties? They have people who support

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them. If their voters do not want to vote for other parties, then they are still there,

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they're still around. But by denying them access to the legislature or to the town council,

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you actually force them to go outside politics. And I don't think that's a wise idea. Can

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it happen in time for the 2024 election? Probably not. No, definitely not. We've got, it's now

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August, the election will probably be in May. If it is postponed for three months, that'll

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take it to August, 12 months from now. It'll be very hard to get legislation through parliament

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in 12 months. Parliament just doesn't move that quickly. So no, I don't think it'll happen.

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In any case, even if it does happen, the legislation will be challenged in the constitutional court.

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I mean, there's no doubt about that. Does our constitution say anything about this?

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Yes, it does. In section 46 of the constitution, it says that an electoral system must in general

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result in proportional representation. Now, what does in general mean? Is 1% does that

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satisfy the in general requirement or 3% does it satisfy that requirement? That is something

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on which the constitutional court will have to pronounce. And obviously they'll have to

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consider it carefully. So no, I think the parliamentary agenda, the parliamentary timetable,

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as well as constitutional challenges can make us fairly certain that it will not happen,

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that there will not be legislation on the statute before next year's parliamentary elections.

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You published this note on the 14th of August, but because of circumstance, we are only recording

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this conversation on the 21st. The moonshot backed convention has now happened. Thoughts?

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Yeah, it happened on 16 and 17 of August. For the parties participating, it was a huge

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success. They proclaimed it as such. Seven parties. Seven parties in total. From my point

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of view, I think there were some encouraging signs. The parties accepted the principle

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that your representation in the coalition government is based on the votes that you

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got. So there's a clear relationship. If you got 60% of the votes, then you will have

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60% of the government. You got 30% of the vote, you'll get 30% of the government. Until

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now, there was a lot of toing and froing about that. So having developed a consensus about

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that, I think is quite a good thing. The fundamental problem remains how these seven parties will

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get to 50% plus one. That is really the issue. If you take the current parliament, which

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I think one must accept is no longer representative, but if you take the current parliament, their

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total vote come to less than 30% of those seven parties. Only three of those seven parties

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are sitting in parliament. The other four are outside parliament. So they must still

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prove that they can actually get votes. We tend to forget that. We focus on the seven

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and not on the three that have already made it into parliament. But I think it's fair

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to say that ANC will get less votes than what they got in the present parliament. They currently

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in the present parliament have 57.5% of the vote. Their share will probably drop below

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57.5%. So will the other parties then pick that up? Where will it go? I can't see the

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current seven parties going much higher than 35%. Not on current poll data as we have it

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now. Obviously anything can happen in the next nine to 12 months, but I can't see them

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going much higher than 35%. Now, if you want to take over the government, you need 50%

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as one. And that's really the basic problem that faces the moonshot coalition. In May

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you said that the most probable outcome would be that the ANC gets high 40s and that they

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can then go into coalition with the IFP, which will take them over 50. Is that still your

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view? Yes, I still think that's a possibility. But what has developed since then is this

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agreement between the DA and IFP on the local government level. And one wants to now ask

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the question, if you are a formal coalition partner in one province on the local government

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level, can you in the national government go into coalition with somebody else? That

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strikes me as a bit messy. And that strikes me as a bit sending confused signals to the

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electorate. So I'm not so sure that that is as obvious as it was in May. In May, I think

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it was quite clear that the ANC would prefer to take the IFP. I've never shared the view

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that they will go to the EFF, which was in May the dominant theme from the chattering

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classes. I just don't think I didn't think it then. And I still don't think so. I think

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events have shown to us there's a lot of opposition to ANC EFF coalition. So I'm not sure that

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they will necessarily get the cooperation of the IFP. And then the question is what else

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they will do. But as I said in May, it all depends on the numbers. If you get 47, 48%,

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well then two or three percent are enough to get you over the line. If you get towards

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40%, well then it becomes much more difficult. And then the idea of a grand coalition certainly

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comes to the fore much more strongly. But then the grand coalition would, following

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your logic, would have to include all three of those parties, the ANC, the DA and the

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IFP. Because what you said now about working with the IFP going into a coalition, or the

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other way around actually, the IFP going into a coalition with the ANC at national level,

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the same holds true for the DA. Absolutely. Yes, and I think you're right. I think the

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ANC would also like to have the protection, if you want, of the IFP in a national, in

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a grand coalition. They don't want to be exposed, have exposed flanks to the EFF and other parties

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who can then attack them. So it is quite possible that it goes that way. But you know, it's

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a year away. It's early days. It's very, very early days. Very early days. Just in almost

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theoretical terms, the German ambassador was a guest speaker at the UWC conference. And

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he made interesting points about how coalitions work best. Yes. So the German ambassador,

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they made a speech and he relayed lessons that the Germans have learned of coalitions.

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Now, you must remember the Germans have had coalitions for a very, very long time, many

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decades, and not just on the national level, but also in the land in the provinces. So

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they know about coalitions. And the ambassador shared that with the conference. And I think

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a couple of them were very important. He said coalitions is about the politics of inclusion,

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not exclusion. And I think that's a very important point for us in South Africa. We tend to emphasize

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who we will not work with, not who we will work with. So that's a strong point. Coalition

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is the art of negotiation, not the art of war. It sounds absolutely right, but a lot

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of people don't practice that. Again, in our country, we like to go to war and use war-like

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language instead of negotiating. Issues first, appointments later. In other words, how, not

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who. Issues first, how, not appointments, who. That was an important message from him.

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And then concrete policies must be agreed on in advance. Now that's exactly what the

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IFP and the DA agreed in respect of KwaZulu-Natal local government authorities. A concrete program

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of action, concrete policies that they will pursue. And then of course, trust is absolutely

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critical. And for that you need transparency and openness. And again, that is where we

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can learn from the Germans. Another interesting point about Germany, Rudi, is that after the

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last elections, when Chancellor Schulz eventually became the Chancellor, the elections were

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held in September. The government only took office and Chancellor Schulz was only inaugurated

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in December. So there was a long time lag between the elections when the results were

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known almost immediately and actually taking office. So what happened in that long time

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lag? The parties negotiated agreements on how they are going to govern. Exactly the

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kind of thing that we saw in respect of KwaZulu-Natal local government. So in South Africa, our

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constitution at the moment only allows 14 days. 14 days after the election has been

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certified by the Independent Electoral Commission, parliament must meet and at its first meeting

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it must elect a president. The constitution is quite clear on that. So we've given ourselves

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14 days or we have 14 days in terms of our constitution, while the Germans have taken

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a couple of months to form a government. So that's something that we will have to also

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keep in mind as we approach the possibility, not the inevitability, but the possibility

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of a coalition government at national level. Can I just make one more point about coalition

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forming? You know, I think it's quite clear that the majority of South Africans are not

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radical. We see that from opinion polls, but we also see it from, we also saw it in the

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2021 July unrest and we've seen it in various areas of our national life. Yes, there are

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people who do violent things and do radical things and so on, but when the tire hits the

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tire, South Africans are the middle of the road a lot. Now that implies that large numbers

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of political party supporters are also middle of the road people and the logical conclusion

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that a number of ANC supporters are also middle of the road people and therefore I think the

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German message of coalitions is about inclusion, not exclusion. It's an extremely relevant

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and important one. Bring together those people that can reinforce the democratic model. It

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doesn't really matter in which parties they sit and they sit in most parties, not all

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parties but in most parties. Bring them together. That is the message that we must take from

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opinion polls and other data that tells us that South Africans are not really a radical

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bunch. Many people worry, they are afraid, they have a fear that the junior partner in

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a coalition will be swapped and in the next election just wiped out. Especially I think

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DA supporters fear that. Is it legitimate? Well as one DA supporter said to me, the DA

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will be dragged down by the ANC and I think that sentiment is fairly widespread. Yes,

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I think it is legitimate. We saw it happening in the United Kingdom when the liberals went

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into a coalition with the Tories and in the subsequent election the Tories trounced and

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the liberals were wiped out. The counter example you find on the continent of Europe, Germany

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for example, where there are small parties like the free democrats who regularly fall

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below the 5% threshold, then they fall out of parliament, next election they come back

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and they are above 5%, so they are represented and then they normally, not always but quite

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often form part of some ruling coalition, yet they remain, they retain, they remain

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independent and they retain an independent identity and political programme and so on.

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So I think what one must learn from that is to be very clear on what you will agree to

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and what you won't agree to. What are fundamental commitments or values that you as a party

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have on which you are prepared to negotiate and which not. And again that is where the

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case that in agreement between the DA and the IFP for me is so interesting. There are

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clear commitments and there are clear priorities. That's the kind of model we need. The liberals

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never negotiated that kind of agreement as far as I know in the UK. So it's all about

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your identity and sticking with your identity irrespective of how big or small you are.

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So I think that is something that can be overcome. The whole of Europe is run by coalitions and

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there you've got big and small parties and they all face with the same problem and the

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small parties survive, they don't disappear. So no, I think it's just a new style of politics

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that we must get used to. In summary, so what? Well, for me the most important so what is

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that the free development since May indicate to me that the ground is shifting as far as

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coalitions go. Three months ago in May, a couple of months ago in May, beginning of

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the year, there was a sort of a consensus among the commentary that there will be ANC-EFF

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coalition and that is it. I don't think any of those people will now take such certain

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views or positions on the coalition issue. The ground has shifted quite substantially

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and what is happening in that shifting of the ground is that the parties of the middle

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has got an opportunity to get together and to form a grand coalition of the middle, strengthening

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the democratic centre. I think that opportunity now is bigger than what it was in May and

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certainly much bigger than what it was in January. So what for the probably most pressing

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area and that is local governments? The local government election is only in 2026, it's

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now 2023. So must we now for the next three years carry on with this stumbling that we

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have? Clearly not. So what I think is needed is an in principle agreement for a grand coalition

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or a coalition between parties of the middle and they must come together and reconstitute

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councils where you have this up and down all the time, of which our beloved Johannesburg

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is a classic example. And if we can get the parties of the middle to take hands and join

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together you can actually form very strong local governments, strong in the sense that

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they represent 70% and two thirds of the voters. Then you can have administrative stability

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and things can go forward. And that is a political agreement, you don't need legislation for

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that. What you need is the political world to do it and then doing the hard work of negotiating

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the political agreements and put them into practice. So that's the only way forward

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that I see for local governments, is to use the three years until the next election to

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establish such coalitions and then they will also have an impact the year from now when

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we have the national election, it can have an impact on how a national government is

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formed. Can I push you on do you think it might actually happen that people in local

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government form solid coalitions and come to this kind of agreement? Well, what we hear

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from the political arena is that people in Johannesburg are saying there will be a change

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in government again quite soon. We've now had what was it eight mayors, eight years

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or something, one year similar noises from Nelson Mandela Bay. It looks as if the DA

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coalition in Twane is surviving in spite of attempts to topple it. So it does seem to

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me that there is there as well, there's a kind of a shifting of the ground or shifting

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of positions rather. And I think it's quite possible that it can develop years. I'm not

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making a prediction, but you know, let's see what transpires over the next six months.

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