October 2021 - December 2021
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A WIN!
As you will have heard, the Eighteenth Amendment Bill to amend s25 of the Constitution, failed to pass this quarter.
Main party vote breakdown
ANC – 200 for
DA – 79 against
EFF – 40 against
IFP – 10 against
FF Plus – 10 against
Total vote breakdown
204 members of the National Assembly voted for the Bill; 145 voted against it. For a two thirds majority, 267 members would have needed to vote in favour of the Bill. Even if the EFF had voted with the ANC, their combined numbers would not have been enough for the required two thirds majority.
FMF has been opposing Expropriation Without Compensation since it was first proposed. We have held conferences, roundtables and workshops; published articles, media releases and a book; networked and canvassed. Well done to our team, and to our allies both local and international.
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FMF PROJECTS
The FMF’s projects for 2021 include: Consumer rights, Economic freedom / Economic growth, Energy, Financial sector, Healthcare, Jobs creation / Labour, Land reform / property rights (with a particular focus on #EWC – Expropriation Without Compensation), Rule of Law, Trade, Transformation, as well as ad hoc issues as they arise.
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MEDIA
The FMF works hard to increase its media coverage and reach as wide an audience as possible with its message about the benefits of economic freedom, growth and the rule of law.
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215 ARTICLES that quote or mention the FMF or originate from interviews or media releases or were written specifically for the media or the FMF’s website were published this quarter. See projects below for more information.
20 INTERVIEWS this quarter on radio and TV.
5 MEDIA RELEASES this quarter. See projects below for more information.
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The FMF is conscious of the power of SOCIAL MEDIA and we are working hard to reach more people via our website, Facebook, Twitter and YouTube offerings.
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Twitter: 7,513 followers – up from 7,448
Facebook: 7,196 followers – up from 7,193
YouTube: 15,432 subscribers – up from 15,414
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PROJECTS
(note: all articles, media releases and submissions are available on the FMF website)
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COVID-19 LOCKDOWN
The coronavirus epidemic swept the world, and South Africa, in early 2020.
The FMF recognised the serious threat which came with the lockdown; a threat aimed at the country’s hard-won civil liberties after the dawn of democracy in 1994. Amongst the work that the FMF engaged in were: research, reports, articles, media releases, TV and radio interviews, podcasts with guests, extensive social media engagement, consultations with law firms on implications for peoples’ rights, and more. The FMF drew attention to the economic and legal implications of the government-imposed lockdown, and further advocated for policies which would boost growth in post-epidemic South Africa.
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CONSUMER RIGHTS
Far-reaching health controls with severe implications for consumers have been implemented or are under consideration. What is targeted?
Products of greatest significance include tobacco, liquor, salt, sugar, traditional and faith healing, alternative medicines, baby food and junk food.
Draconian lockdown regulations, for example the ban on the sale of tobacco products, and two bans on the sale of alcohol, had devastating effects on people’s livelihoods, and greatly inflated the prices of the goods for consumers.
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ECONOMIC FREEDOM / GROWTH
The FMF is a co-publisher of the Economic Freedom of the World (EFW) index with Canadian based think tank Fraser Institute. The index, published annually, measures the degree to which the policies and institutions of countries are supportive of economic freedom. The foundations of economic freedom are personal choice, voluntary exchange, freedom to compete and security of privately owned property. The findings in the report unambiguously support the fact that economic freedom is strongly related to prosperity and growth; countries that are economically free tend to grow faster and be more prosperous.
Articles
- Freer markets aid more human well-being and happiness by James Peron
- South Africa: The Quest for an Economy with Purpose by Sindile Vabaza
- How economic freedom gave Mauritius success against all odds by Eustace Davie
- High economic growth is a matter of choice not chance or destiny by Temba Nolutshungu
- Provisional spectrum: How Icasa buckled to Telkom, again by Dr Christoph Klein
- Gas Amendment Bill threatens prosperity by Riaan Salie
- Ideas Matter | Investment will follow necessary ideological and policy reforms
by Chris Hattingh
- South Africa’s Road to Economic Recovery after Covid-19 by Sindile Vabaza
- Letter: SA should abandon failed ideologies of a developmental and centralising state
by Neil Emerick
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The FMF is concerned about the energy crisis in South Africa, which continues to impact negatively on ordinary South Africans and has deleterious consequences for economic growth in the economy. Eskom, effectively, has a vertical monopoly on the entire system from generation to transmission and a large part of the distribution of electricity. This old, outdated model is slow to respond to changing circumstances. As a result, consumers are left in the dark and asked to consume less electricity during peak-demand periods. The solution: separate the generation from the transmission and distribution of electricity to make trading possible, including the sale of electricity across the grid from generators to large consumers (wheeling); establish competitive wholesale and retail markets. The unbundling of Eskom is the only feasible option to attract independent power producers (IPPs) and to secure our electricity needs moving into the future.
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The FMF proposes a simple, one-word solution to alleviate this dire situation: Changing one word in the 2006 Electricity Regulation Act. To learn more about the proposal, click here.
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FINANCIAL SECTOR
The purpose of the FMF’s Finance Policy Unit is to promote the application of free market principles to financial markets.
Articles
- Why ‘Modern Monetary Theory’ won’t work for South Africa by Tumisho Ramodisa
- Financial Sector Laws Amendment Bill: Another Bureaucratic Power-Grab?
by Dr Brian Benfield
Oral evidence
Gary Moore led oral evidence on the Financial Sector Laws Amendment Bill to the Select Committee on Finance of the National Council of Provinces. The submission can be read here.
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The FMF’s Health Policy Unit (HPU) contends and persistently provides evidence that in all sectors of the economy, free, open markets with competitive private enterprises serve consumer needs best. For the indigent, it would be better for government to purchase higher quality healthcare at a lower cost from the private sector than to provide the service itself. The HPU argues that patients are harmed when government dictates to healthcare providers, pharmaceutical companies and other firms in the healthcare industry how to manage their affairs, or at what prices they should sell their products and services. The HPU’s mission is to increase access to high quality healthcare for all South Africans.
Articles
- Response to Dr Crisp by Michael Settas
- SIU report on Digital Vibes is a strong warning against NHI by Michael Settas
and Chris Hattingh
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Solutions to healthcare for the indigent
The FMF’s alternative solutions to improved health care for all include:
- Privatising the provision of health care – via giveaways of public hospitals to those who work in them or sales to those who wish to buy them
- Financing health care for the poor – preferably via state-sponsored vouchers, which the indigent can spend where they choose
- Encouraging more private hospitals by deregulating the industry and eliminating Certificates of Need
- Reducing prices and increasing health care quality through increased competition
- Training more doctors and nurses (the number of doctors is limited to 1,300 a year; this number has remained the same since the 1970s despite increases in the population and the disease burden)
- Allowing the private sector to train doctors and nurses
- Encouraging income-producing medical tourism
- Retaining skilled South Africans and attracting others by removing the limit on skilled foreign doctors
- Deregulating medical schemes so they can offer their clients exactly what they want
- Deregulating pharmacies
- Removing price controls, which send mixed messages to the industry
- Speeding up registration of clinical trials
- Giving those who pay for their own health care a tax deduction
- Allowing low cost insurance options
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JOBS CREATION / LABOUR
South Africa has an unacceptably high and rising level of unemployment. For government to achieve its stated objective of reducing unemployment and stimulating growth, it must urgently address labour market policies and laws that exacerbate unemployment. A significant part of our current work involves educating the public about the consequences of having a National Minimum Wage (NMW). There are currently an estimated 12.49 million working-age South Africans unemployed – a NMW makes it that much harder for these individuals to climb onto the first rung of the economic ladder.
Articles
- BEE most hurts those it was designed to help by Riaan Salie
- South Africa should focus on job growth rather than a Basic Income Grant by Sindile Vabaza
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LAND REFORM
FMF believes that secure property rights represent one of the most important requirements for the protection of both economic freedom and civil liberties. FMF is very concerned about recent proposals to amend the property rights clause in the Constitution. FMF proposes that:
1. All black occupied council-owned urban plots be converted to full ownership.
2. Superfluous government land be redistributed to the victims of apartheid as a substantial once-off compensation.
3. Pre-emptive clauses be removed from existing and future RDP titles.
4. In tribal areas, communities be allowed to grant private title over homesteads while maintaining communal rights over arable land.
5. The Subdivision of Agricultural Land Act, 1970 be repealed to make it easier for poor individuals to finance smaller, more affordable plots of land.
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Khaya Lam (My Home)
The Khaya Lam Land Reform Project is an FMF initiative that seeks to reverse the evils of apartheid. FMF Executive Director, Leon Louw, notes: “Black land deprivation was probably the single worst element of apartheid. Since apartheid ended, little has changed. In South Africa today there are still around 5 million black families living as tenants or without ownership rights in houses they have lived in for generations. There has been no systematic conversion of these “council owned” and “traditional community” properties to full unrestricted ownership. The prospects for economic upliftment throughout South Africa through the Khaya Lam national property titling project are exciting and immense”.
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Change a family’s life for the better today
If you would like to sponsor a title deed at just R2,750 (or a part title deed), please email gailday@fmfsa.org or do so directly through our website here.
PLEASE NOTE: We have a sponsor who donates just R200 per month toward Khaya Lam. His monthly contribution has so far sponsored 6 title deeds, contributing a whopping R720,000 into the economy. And another who sponsors one title deed per month. Why not join them?
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Khaya Lam – BetterBond title deed ceremony
One of our great partners, BetterBond, produced a series of videos from a 2021 title deed event. The videos can be viewed at the links below:
TRIBUTE TO PERRY FELDMAN
Here’s a lovely tribute to Perry Feldman by Johann Rupert at the ABSA Jewish Awards – the tribute to Perry is at 2:28:15.
Title deed handover ceremonies took place on 14 October in Klapmuts and 21 October in Jamestown, both in Greater Stellenbosch where the municipality is doing excellent work in partnership with Khaya Lam. The Executive Mayor, Advocate Gesie van Deventer, with Temba Nolutshungu keeping her company, distributed title deeds to the oldest recipients; additional deeds were distributed by council staff.
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Articles
- A victory for private property rights in customary law by Zakhele Mthembu
- The Constitution after the section 25 proposed amendment by Prof Robert Vivian and Martin van Staden
Media release
- Khaya Lam: when ‘my home’ really is my home
Webinar
FMF Board member, Prof Robert Vivian, was a panellist this quarter on an AgriSA webinar on state custodianship. The other participants were Adv Johan de Waal (SC) from the Cape Bar and Prof Johann Kirsten, the well-known agricultural economist. The audience comprised AgriSA members (provincial, corporate and commodity) as well as members of the press.
Robert outlined the following:
- The admitted unchallenged optimal outcomes of the free market
- The role of property rights to secure free markets
- Why state custodianship will not work
- Tragedy of the commons
- The importance and significance of Khaya Lam – from the failed commons to private ownership
- State custodianship – a return to the past
- The essence of the FMF’s submissions on EWC
- Basic Structure Doctrine by Martin van Staden
- Unalienable rights approach of the US Constitution
- Amendment if passed essentially signals the end of the constitution
AgriSA have allowed FMF to upload the webinar to our YouTube channel. It can be viewed HERE.
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Upward Globility: Whose Land is it Anyway? | South Africa
Upward Globility, hosted by Australian traveller Vale Sloane, focuses on stories of Atlas Network partners that are working to create prosperity for all by supporting local opportunities for entrepreneurship, education, and community growth.
In South Africa, the legacy of apartheid has left millions of families without the legal rights to the land they live on. In the first episode, Sloane travelled to South Africa to learn about the FMF’s Khaya Lam Project.
“Protection of property is sacrosanct and at the core of individual liberty and freedom,” said Temba Nolutshungu. Khaya Lam, which means “my home” in the local Xhosa language, aspires to help more than 20 million South Africans make home ownership a reality by securing fully-tradable freehold title to the properties they currently occupy.
You can watch the full video here.
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RULE OF LAW
The Rule of Law is a Founding Provision of South Africa’s Constitution but this potentially powerful brake on the executive branch of government has not been playing its proper deterring role. A likely reason for this is that most South Africans do not have an adequate understanding of the true meaning of the rule of law.
There were 2 rule of law presentations at the FMF’s EWC conference. These can be viewed here and here.
Articles
- Wat is ‘n ‘verkeerde keuse’ in ‘n vrye samelewing? by Martin van Staden
- Thousands lose right to SA citizenship without knowing it by Gary Moore
- A victory for private property rights in customary law by Zakhele Mthembu
Media release
- Free Market Foundation renounces Prevention and Combating of Hate Crimes and Hate Speech Bill as redundant and inaccessible
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10 imperatives of the Rule of Law
The Rule of Law Project formulated the following 10 imperatives of the Rule of Law.
1. All law must be clear, predictable, accessible, not contradictory, and shall not have retrospective effect.
2. All legislation that makes provision for discretionary powers, must also incorporate the objective criteria by which those powers are to be exercised. The enabling legislation must, in addition, stipulate the purpose or purposes for which the powers may be exercised.
3. All law must apply the principle of equality before the law.
4. All law must be applied fairly, impartially, and without fear, favour or prejudice.
5. The sole legitimate authority for making substantive law rests with the legislature, which authority shall not be delegated to any other entity.
6. No law shall have the aim or the effect of circumventing the final authority of the courts.
7. No one may be deprived of or have their property expropriated, except if done with due process for the public interest, and in exchange for market-related, fair and just compensation.
8. The law shall afford adequate protection of classical individual rights.
9. All law must comply with the overriding principle of reasonableness, which comprehends rationality, proportionality, and effectiveness.
10. The legislature and organs of state shall observe due process in the rational exercise of their authority.
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TRADE AND INNOVATION
After the devastation wrought by the government’s COVID-19-related lockdowns – the unemployment rate is over 42%, and more than 12 million South Africans are currently unemployed – the FMF recognised both the massive challenges facing the country, but also the great opportunities that exist for real progress and transformation to be achieved. The Africa Continental Free Trade Area stands out as perhaps the eminent opportunity for African countries to embrace policies of increased trade; the FMF aims to influence government to implement the recommendations of this agreement, to the benefit of South Africans, and people across the continent.
FMF's Trade and Innovation Policy Initiative (TIPI) has as its focus advocacy against various barriers to trade, innovation, and growth in the country.
Articles
- Time for Government to Cut Fuel Taxes and Tariffs! by Chris Hattingh
- Letter: Pressure on Transnet to toe the line? by Chris Hattingh
- Letter: Abandon localisation policies by Chris Hattingh
- Letter: Government needs to step carefully with localisation master plan by Chris Hattingh
- Ports Reform: Devil in the Details by Chris Hattingh
- Lowering tariffs will soften blow of higher container prices by Chris Hattingh
Media releases
- Improving South Africa’s trade barrier score requires correct policy choices and avoiding protectionism – Free Market Foundation
- Without Pro-Trade Reforms, Africa Risks Missing Out On Global Growth Trends – FMF and IATP
- Localisation master plans will hobble economic growth - FMF
Presentations
- Chris Hattingh delivered the keynote address to the Association of Meat Importers and Exporters. His title: South Africa in 2022 – more of the same or radical change?
- On 2 December, Chris Hattingh participated virtually in a panel discussion on The Future of the World Trade Organisation and Global Trade, as part of the GTIPA’s 2021 summit held in Washington DC, USA. The other participants were: Barbara Kolm – Austrian Economics Center (Austria), Kyungjin Song – Innovative Economy Forum (South Korea), Bipul Chatterjee – CUTS International (India), and Philip Thompson – Property Rights Alliance (United States).
Case study
By Chris Hattingh in the International Trade Barrier Index 2021 – South Africa’s Next Steps for Trade Liberalisation.
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TRANSFORMATION
Some argue that freedom from apartheid has not made a substantial impact on black advancement. Others argue that for blacks to succeed they need government assistance through Reconstruction and Development Policies and Black Economic Empowerment legislation. Still others are of the view that economic freedom and growth, the development of a strong legal framework, and good infrastructure and security, are all that is required for the realisation of human potential.
Articles
- Embracing a fit for purpose economy by Sindile Vabaza
- South Africa’s Racist and Classist History of Cannabis Regulation by Mukundi Budeli
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