We must give social justice real meaning in the daily

We must give social justice real meaning in the daily lives of
all South Africans, not just in debates. State-owned enterprises
are part of a capable, ethical and developmental state. State-
owned enterprises must play a vital role in generating inclusive
growth, in providing efficient and cost-effective network
services and deliver public services to both those who can

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afford to pay and those that can’t. As the National Development
Plan has outlined and I quote:
State-owned enterprises are central to advancing national
objectives through providing economic and social
infrastructure. If this is done in an equitable and cost-
effective way, SOEs can contribute to both deliver a
quality and reliable service at a cost that enables South
Africa to be globally competitive. To live up to these
expectations, SOEs will require clear public-interest
mandate, which are consistently enforced.
What is happening globally in relation to state-owned
enterprises is that the rationale for the state’s ownership of
public enterprises varies among countries and industries. It
can typically be said - according to one international
organisation
- to comprise a mix of social, economic and strategic
interests. Over the last few decades however, globalisation of
markets, technological changes, and the deregulation of
previously monopolistic markets have led to readjustment and
restructuring of the state-owned sector in many countries.
Moreover, SOEs’

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participation in international trade and investment has grown
significantly. They are an influential and growing force
globally.
The proportion of SOEs among the Fortune Global 500 has grown
from 9% in 2005 to 23% in 2014, driven particularly by the
growth of Chinese SOEs. The Organisation for Economic Co-
operation and Development, OECD, recently conducted a third
review of SOEs amongst its members and certain affiliates and
it found the following: Countries with the largest SOE sectors
by share of national employment were in Europe interestingly,
led by Norway with almost 10% nonagricultural employment;
countries with the largest SOE sectors in absolute terms by
corporate valuation are China which has valued the SOEs at
almost US$30 trillion, India at US$338 billion, Korea at US$217
billion and Italy at US$205 billion.
There was a concentration of SOEs in the network industries,
that is telecoms, gas, electricity and transportation
industries. Mr President, we are pretty much in line with the
international terms that we have seen not many years ago, but

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just today. And quite contrary to what some of our colleagues
and hon members from the DA might have been arguing about
earlier on.