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Minister of International Relations and Cooperation Dr. Naledi Pandor. (Photo by Gallo Images / Jeffrey Abrahams)
South Africa should take into account recent budgetary lessons to ensure profitability in international relations.
First published by ISS today
South Africa plays an important role internationally and in Africa. But meeting its commitments to institutions like the United Nations Security Council and the African Union (AU) is costly. In a struggling economy, due in part to one of the most stringent Covid-19 lockdowns in the world, justifying these commitments at the national level can be difficult.
The country’s many bilateral and multilateral commitments may need to be critically re-evaluated in terms of value for money and the overall benefits derived from promoting the national interest. To 2019 report presented findings from a Foreign Policy Review Panel that are useful from a political and strategic perspective. But a more comprehensive assessment of South Africa’s international relations administration is needed.
Passing the long awaited Foreign Service Act in June 2020 it was a step in the right direction. The purpose of the law is to professionalize and streamline the management of the Department of International Relations and Cooperation (Dirco). After a long legislative process, the law shows that the political will necessary to assess the core of South African foreign policy is gaining ground.
To this sense of urgency are added the unforeseen tensions that Covid-19 places on the fiscus. These were highlighted in a number of recent engagements between the department and Parliament’s International Relations Portfolio Committee. In April, President Cyril Ramaphosa announced a fiscal budget of 500 billion rand. package to alleviate the impact of the pandemic, of which R130 billion would come from the reduction of the budgets of national and provincial departments.
Dirco responded by cutting R317 million from its approved 2020/21 baseline budget. This was reported in two meetings between the department and the Portfolio Committee of 8 Y sixteen July. Dirco indicated that its initial allocation of R6.85 billion was revised downward by the Treasury to R6.533 billion in accordance with the president’s directive related to the pandemic.
The department cut spending on four key programs: administration, international relations, international cooperation, and protocol services. These cuts generally affected specific budget lines, including expenses related to travel, planned celebrations and entertainment. Additionally, all new capital spending projects have been suspended.
Dirco argued that despite these cuts, no major changes were expected in terms of its five-year results indicators and performance targets. Department officials further noted that the reduction in travel did not imply less international commitments, as these were simply tailored for online meetings.
Budget reviews of the Fund for African Renaissance and International Cooperation, a key mechanism for responding to continental peace and security priorities, were postponed until 2021. This decision was made despite the fact that certain goals were affected in 2020.
Given that these unforeseen cuts are expected to have only minimal operational impact, was the initial baseline budget profitable? Could the country have accomplished the same with fewer resources all the time?
These questions must be posed in the context of the country’s membership of numerous intergovernmental and multilateral organizations. South Africa is part of more than 26 multilateral bodies to which annual membership dues are paid. amount to just under R866 million in 2019/20.
The Portfolio Committee recommended that Dirco devise a long-term strategy for South Africa’s participation in such a large number of organizations. Concerns raised included duplication of efforts, possible lack of value for money, and the department’s inability to adequately inform the country about its role in such bodies.
The largest expenses, however, are those related to the compensation of Dirco employees, amount to approximately 45% (R9.8 billion) of the total expenditure allocated from 2020 to 2023. The cost of maintaining capital assets in the 125 diplomatic missions located in 108 countries constitutes the other important component of the department’s budget.
Questions about the cost-effectiveness of these missions have long been a source of frustration, especially with regard to the effective performance of key diplomatic personnel. However, such expenses are unlikely to be significantly affected by recent budget cuts, as these have largely focused on operating costs with more direct implications for Dirco’s current annual performance plan.
Regardless, department officials should use this time to tailor budgets for long-term solutions that provide a streamlined and cost-effective foreign policy. The Portfolio Committee has made numerous recommendations. These relate to the implementation of the Foreign Service Law and greater investment in the department’s information and communications technology infrastructure.
However, Dirco could also explore other opportunities. These include reassessing the optimal size of South African delegations to multilateral bodies, the country’s membership in various organizations, and the number of South African diplomatic missions required for structured bilateral engagements.
The effectiveness and necessity of electronic diplomacy, as opposed to contact diplomacy, must also be assessed. It may also be helpful to refine performance plans for key personnel and mechanisms, such as the African Renaissance and the International Cooperation Fund.
South Africa’s term on the UN Security Council ends on January 1, 2021. The country’s effectiveness on the world stage, as well as its role as president of the AU, must be assessed in an increasingly political and economic context. distressed. Dirco must identify, adapt and incorporate the budgetary and administrative lessons learned during this period to streamline the country’s international commitments in the future. DM
Priyal Singh is Researcher, Peacebuilding and Peacekeeping Operations, ISS Pretoria.
This ISS Today was published with funding from the Canada Fund for Local Initiatives.
