Quarterly Review 2018.09

Quarterly Review
July 2018 – September 2018

FMF PROJECTS

The FMF’s projects for 2018 include: consumer rights, economic freedom / growth, financial sector, healthcare, jobs creation / labour, land reform / property rights (with a particular focus on #EWC – Expropriation Without Compensation), rule of law, transformation, as well as ad hoc issues as they arise.

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.

315 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 – up from 246 last quarter. See projects below for more information.

INTERVIEWS on radio and TV number 24 this quarter – down from 35 last quarter.

The FMF hosted 3 MEDIA BRIEFINGS this quarter and aims to host one per month whenever possible. The briefings provide journalists with an opportunity to ask in-depth questions about the topic under review. See projects below for more information.

Each briefing is followed by a media release to over 1,000 editors and journalists. Additional ad hoc releases mean FMF distributed 11 MEDIA RELEASES this quarter. See projects below for more information.

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.

In September 2018, for example, our website had 33,717 visits with 93,402 page views.

In the right-hand column, the FMF’s website has three “windows” to our social media making it easier for our members and website visitors to access…

Twitter @FMFSouthAfrica: 4,098 followers
Facebook: 4,446 likes 
YouTube: 225 videos; 931 subscribers; 104,210 views

Videos
Watch these two golden oldies recently digitised and uploaded to our YouTube channel: 
South Africa: The solution
A constitution worth fighting for

FMF history series
We have begun the mammoth task of unearthing and presenting our 43-year history.
If you would like to know more, why not begin by dipping into our under-construction timeline.
We have digitised our photographs and added them to our website beginning with our 1977 (re)inauguration – see galleries.

We have digitised ancient, dusty VHS tapes and uploaded them to our YouTube channel here. A few noteworthy standouts include Leon Louw’s presentations, a prelude to the writing of South African: The Solution. There are 6 videos in this 1985 series beginning with HISTORY SERIES South Africa: The Solution 1 of 6. See also our 1986 privatisation conference: HISTORY SERIES Privatisation conference 1986 1 of 3 and our 1989 consumer conference: HISTORY SERIES Consumer power conference 1989 1 of 5.

If you have any photographs or tales from FMF’s past, we would welcome you sharing them with us.

Cartoons

Previous cartoons published by FMF can be viewed here.

PROJECTS (note: all articles, media releases and submissions are available on the FMF website)

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 alcohol laws, for example, raising the Minimum Legal Drinking Age from 18 to 21, have been presented to cabinet this quarter; similarly consumer-unfriendly tobacco laws are next.

Consumer briefing
On 17 July, Leon Louw presented Tobacco counts in the South African economy. In this workshop Leon Louw addressed: Fake Tobacco Control = Real People Control; Remove the right to smoke = suppression of free will; Is your “bad habit” next? Tobacco is inert and cannot be controlled. All control is people control.

Leon’s presentation can be viewed here.

Submissions

• FMF made a submission on the Tobacco Bill and Socio Economic Impact Assessment (SEIA)

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

• Proposed IT law vague and confusing by Martin van Staden
• Here’s how you lower the fuel price by Martin van Staden
• Only established networks can handle the investments required to run a sustainable WOAN by Thabo Mofokeng
• Venezuela under the socialism of the 21^st century – from prosperity to misfortune by Professor Sary Levy-Carciente
• Trade improves human wellbeing by James Peron
• Capitalism is the only moral economic system ever to grace the world
• The sad story of SA Express: Time to ground it permanently
• Apple and value creation by Chris Hattingh
• SAA must be euthanised to put us out of our misery by Ivo Vegter
• African Excellence: Ethiopian Airlines leads the way by Chris Hattingh
• We all benefit from freedom by James Peron
• Achieving the elusive 6 per cent growth rate by Eustace Davie

Evening event
On 5 September, Frans Cronje (Institute of Race Relations) presented South Africa to 2030: A strategic intelligence briefing. This briefing was geared for senior decision makers in the private sector and government to assist them in developing a uniquely robust sense of what is happening in South Africa, why it is happening and what will happen next. Frans reviewed the major socio-economic trends shaping the country, and distilled these into four scenarios for South Africa’s route to 2030. Each scenario was presented with markers and forecasts that enable decision makers to position themselves to match likely outcomes.

Frans’ presentation can be viewed here.

Media releases

• SAA myths being peddled to delay the inevitable closure
• Scrap the telecoms bill and revert to existing Act
• Banks need to justify to the poor why they are bailing out SAA
• SAA & SAX merger – two losses don’t make a profit
• Rein in government to end recession

FINANCIAL SECTOR

The purpose of the FMF’s Finance Policy Unit is to promote the application of free market principles to financial markets. Current actions continue to focus on the “twin peaks” regulation of which the Financial Sector Regulation (FSR) Act is the architecture, and the Financial Advisory and Intermediary Services (FAIS) Act.

Articles

• Malema – leave the South African Reserve Bank alone by Richard Grant

Submissions

• FMF made a comment on South African Reserve Bank Amendment Bill, 2018 (Private Member's Bill)

Video on Twin Peaks
Some years ago, the Financial Services Board (FSB) announced that it had “deregistered” over 15,900 financial service providers. The FSB did not specify race, but how much are you willing to bet that many of those deregistered were emerging black brokers and advisors? Now “Twin Peaks” (or Financial Sector Regulation Act) will further undermine transformation in South Africa. In addition, it will create an enormous bureaucracy with reams of red tape. It will cost an estimated R4,8 BILLION per year, every year, which is equivalent to 500,000 RDP houses or 5,000 new clinics per year, every year. Understanding the law and that it has zero measurable benefits is crucial.

The FMF’s Twin Peaks video can be viewed here

HEALTHCARE

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.

FMF 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.

Articles

• How about private-run education facilities to train doctors in South Africa by Jasson Urbach
• NHI – what is the union mandate? by Dr. Johann Serfontein
• Funding figures vital for assessing the viability of NHI by Dr. Johann Serfontein
• An unintended, but serious consequence of government’s drive to introduce NHI is that young adults and families will be hit the hardest by Jasson Urbach
• Alternatives to the NHI by Jasson Urbach
• Die NGV en die aanslag op ons Vryheid by Chris Hattingh
• State control of healthcare – a sure route to disappointment and destitution by Chris Hattingh and Martin van Staden

Media releases

• HMI report says nothing new but careful timing supports Motsoaledi’s contentious NHI Bill

Media briefings
On 15 August, Johann Serfontein and Mike Settas presented Healthcare in South Africa - major concerns. Johann and Mike discussed the Competition Commission’s inquiry into private healthcare, the NHI Bill and the Medical Schemes Amendment Bill, and detailed what the media and public need to know.

Their presentation can be viewed here.

LCBO Business Briefing
On 11 July, Evan Bradley and Mike Settas presented talks at the FMF’s Low Cost Benefit Option (LCBO) Business Briefing. Evan’s analysis highlighted key themes, and possible outcomes and risks of moving Low Cost Benefit Options (LCBOs) into the medical scheme environment. Michael analysed health policy in South Africa, and its impact on consumers and particularly the poor.

Evan’s presentation can be viewed here.
Michael’s presentation can be viewed here.

Submissions

• FMF made a submission on the Medical Schemes Amendment Bill
• FMF made a submission on the National Health Insurance Bill

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 adopting a National Minimum Wage (NMW). There are currently an estimated 9.4 million unemployed – a NMW will just make it that much harder for these individuals to climb onto the first rung of the economic ladder.

Articles

• Did parliament intend to introduce a fake minimum wage “exemption”? by Eustace Davie
• Grinding the jobless into the ground with job deprivation rules by Eustace Davie
• How to destroy jobs by FMF

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 (“freehold”) – FMF is working with Ngwathe municipality (Parys, Free State) to convert 20,000 plots to full freehold.
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.

Khaya Lam (My Home) Land Reform Project
Khaya Lam 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”.

Under the project management of Perry Feldman, the FMF’s Khaya Lam project is gaining momentum. In addition to Ngwathe (FMF’s pilot project), FMF is now working in Grabouw, Stellenbosch, Graaff-Reinet, Barkly West, Viljoenskroon, Alex, Thanda and Cape Town (Hout Bay, Vukuzenzele, Hillview).

Of the almost-7,000 transfers for which FMF has raised funding to date, over 2,320 title deeds have been registered and lodged in the deeds office. As each property transferred from council to legal resident is worth on average R120,000, this latter figure represents a boost into the economy of over R278 million – this is an approximately 5 600% return on investment! Now there’s bang for your buck.

Khaya Lam: Brief progress report

Most recent presentation ceremony
On 26 September, 45 title deeds were presented at the Montoedi Hall in Mokwallo, Vredefort. This was a unique occasion; it was the first time that the Freemasons have been involved. Dr Bart Kurek of Johannesburg, who is an avid supporter of Khaya Lam, and is a Mason, was the driving force behind the 34 title deeds that were sponsored by him and the Freemasons. The other sponsor of 10 titles was Philip Wilson who lives in the UK. We have never met him. Every 6 months or so an amount equivalent to the cost of 10 title deeds appears in the Khaya Lam account. The ceremony was presided over most graciously by Councillor Malefu Mofokeng who officiated in the place of Mayor Mochela who was unavailable at that time.

Photos from the presentation can be viewed here.

Historic MOU signed in Mkuze, KZN
Through the extraordinary generosity of wealthy Swedes and the Thanda Foundation, and the hard-headed persistence of our project manager, Perry Feldman, on 31 August Khaya Lam signed its first Memorandum of Understanding to undertake title deed transfers in KZN. KZN has proved a complex province in which to effect transfers, especially as much land falls under the Ingonyama Trust and therefore does not qualify for Khaya Lam. As our sponsors were keen to effect transfers in the Thanda region, Khaya Lam had to think outside the box to find a suitable area and project. When we did so, the complexity of the project (which requires also resurvey and town planning) made the price per transfer considerably higher than the R2,250 currently required in other areas. Our sponsors agreed to proceed despite the increase, which led in the end, following community and council buy-in, to the signing of an MOU.

In Mkuze, there are 202 erven with a pair of semi-detached houses on each erf. Each pair shares a single title deed. In other words, there are two (unrelated) owners of each property. This results in endless and unresolvable problems. If one improves his property but another does not, what happens to house values? If one wants to sell, but the other not, what happens? If both sell, but one effected improvements, how are the proceeds split? The disputes are endless.

Although in this case, title deeds already existed and therefore the project was unusual for Khaya Lam, without our intervention and the forbearance of our sponsors, these residents would never be home owners in the true sense of the word.

Photos from the presentation can be viewed here.

Upcoming presentations
Two title deed presentations have been confirmed for the next quarter:
Oct – 105 title deeds in Tumahole; Nov – 100 title deeds in Tumahole

Change a family’s life for the better today
If you would like to sponsor a title deed at just R2,250 (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 R600,000 into the economy. And another who sponsors one title deed per month. Why not join them?

International Property rights Index (IPRI)
On 8 August 2018, Property Rights Alliance and Free Market Foundation co-hosted the global launch of the International Property Rights Index 2018. Speakers were: Temba Nolutshungu | Director, Free Market Foundation; Mmboneni Muofhe | DDG, Science and Technology; Lorenzo Montanari | Executive Director, Property Rights Alliance; Prof Sary Levy-Carciente | Economist from Venezuela and Hernando de Soto Fellow; Leon Louw | Executive Director, Free Market Foundation | Prof Kelly Chibale | Founder & Director, H3D; MRC/UCT Drug Discovery & Development Research Unit; Jasson Urbach | Director, Free Market Foundation. The event was attended by 45 delegates.

The presentations from the IPRI launch can be viewed below.
Property Rights Index launch 1 of 7 - Temba Nolutshungu
Property Rights Index launch 2 of 7 - Mmboneni Muofhe
Property Rights Index launch 3 of 7 - Lorenzo Montanari
Property Rights Index launch 4 of 7 - Sary Levy Carciente
Property Rights Index launch 5 of 7 - Leon Louw
Property Rights Index launch 6 of 7 - Kelly Chibale
Property Rights Index launch 7 of 7 - Jasson Urbach + Q&A

Articles

• African judges defend Rule of Law by Gary Moore
• Will South Africa go the way of Zimbabwe? by Temba A. Nolutshungu
• No investment without property rights by Chris Hattingh
• ‘Never again’ until next time by Martin van Staden
• Expropriation without compensation – 75 per cent required to change the Constitution by Robert W Vivian
• The land fetish by James Peron
• EWC is an assault on the constitutional right to dignity by Mark Oppenheimer and Cecelia Kok
• Title deeds are simply a means to an end – security or property rights by Chris Hattingh, Martin van Staden, and Mpiyakhe Dhlamini
• How to provide responsibly for expropriation without compensation by Martin van Staden

Evening events
On 26 September, Anthea Jeffery presented Expropriation without compensation and the National Democratic Revolution. The ANC’s commitment to the NDR is the key to understanding its EWC demand. Yet the NDR is generally overlooked by the commentariat, or dismissed by it as unimportant. In this briefing, Dr Anthea Jeffery unpacked: the key objectives of the NDR; how South Africa’s land injustice is being used to advance the NDR; what ANC/SACP land objectives have been, both before and after 1994; whether land reform failures have been engineered to justify the EWC demand; wow EWC fits with NDR thinking; and why the NDR is so difficult to understand or counter.

Anthea’s presentation can be viewed here.

Media briefings
On 12 September, Robert W Vivian presented 75% is what it will take to change S25 of Constitution – no argument. Professor Vivian presented his expert opinion on this and why everything hinges on the essential but often misunderstood concept of the Rule of Law. Understand this, and the answer to constitutional issues becomes clear, including the significance of amending ss1 and 25.

Robert’s presentation can be viewed here.

Media releases

• South Africa PLUMMETS to 37^th in global property rights rankings, falling behind Rwanda
• Expropriation without compensation will require 75 per cent vote – Professor Robert Vivian
• Bad faith public participation in EWC hearing a travesty of participatory democracy

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 infratructure and security, are all that is required for the realisation of human potential. 

Articles

• Liberty is the source of human progress by Temba A Nolutshungu
• Die tirannie van politieke korrektheid by Temba A Nolutshungu
• Freedom and prosperity for all by Ayanda Khumalo
• Population explosion: Is the end nigh? by James Peron

Evening event
On 25 July, FMF directors Leon Louw, Temba A Nolutshungu, and Eustace Davie, presented Tales from last century - how FMF opposed apartheid. They reminisced about the best-seller, South Africa: The Solution; the Dakar conference; Fort Hare University; the last minute inclusion of the property rights clause in the Constitution; the deregulation of the agricultural boards; our engagement with traditional leaders; and much, much more.

Their presentation can be viewed here.

Submission

• FMF made a submission on the Climate Change Bill