Economic and Socio-political Situation The 1997 census revealed a total resident population of 930, 000. In addition, there were 51, 000 absentees, mainly men working in South Africa. The annual population growth rate has fallen from 2.9% (between 1986 and 1997) to below 1% because of the effects of AIDS. The labour force increased from 111,643 in 1996 to 112,744 in 1997. Available data indicate that 84% of the labour force is employed in the formal sector. Though confirmed figures are not available, unemployment rates have generally been in excess of 20%. For the age 15-24 years, the problem is acutely worse, with national unemployment levels of 40%. During the 1980s, Swaziland's economy benefited from the sanctions that were imposed on South Africa. Thus the economy during this period was characterised by a strong GDP growth and a healthy balance of payments. The lifting of sanctions against South Africa and political reforms in other countries in the sub-region have seen Swaziland losing its comparative advantage in attracting Foreign Direct Investment inflows. Periodic spells of drought as well as the global recession exacerbated by the East Asian crisis have resulted in a decline in the country's export earnings. The economic growth rate increased from 2.7% in 1998 to over 3% in 1999 after which it fell to 2.5% in 2000 before further falling to 2% in 2001. The end of the Industrial Relations Act controversy and Swaziland’s preferential access to the US market (thanks to the African Growth Opportunity Act) is expected to improve the performance of the economy in 2002. Due to unfavourable weather conditions that affected the agricultural output of most countries in Southern Africa, Swaziland recorded a 30% deficit in maize production. The UN food agency, the World Food Programme, is making frantic efforts to make food available to the most vulnerable people in the country. The serious socio-economic challenge inherent in this situation is reinforced by the unclear dynamics of the regional environment, uncertain revenue prospects vis-à-vis rising public expenditure, increasing levels of poverty and unemployment as well as the worsening impact of the HIV/AIDS pandemic. The 1995 Swaziland Household Income and Expenditure Survey clearly shows the persistent income inequality in the country whereby the richest 10% control almost 40% of the total income. In contrast, the poorest 40% of the population control only 14% of total income, with about 43% of the rural population being poor. The proportion of households receiving incomes below the poverty line increased from 62% in 1985 to 66% in 1995. (CCA 2000). The HIV/AIDS pandemic has further compounded the poverty challenge facing the country. Statistics indicate that the HIV/AIDS prevalence rate of patients at hospitals is 49.5%. It is pertinent to note that the prevalence rate is 53% in rural areas and 46% in urban areas. The king has described the problem of HIV/AIDS as a 'National Crisis'. The government is currently preparing a Country Programme Strategy (CPS) for discussions with stakeholders. The CPS is expected to incorporate the key elements of Economic and Social Reform Agenda (ESRA) II as well as meet the strategic objectives set out in the National Development Strategy (NDS). The Kingdom of Swaziland gained independence from Britain in 1968 under King Sobhuza II who wielded almost absolute power and authority among the Swazi people. The current king, Mswati III, has maintained that legacy. The post-colonial era has been marked by two phases, the constitutional period from 1968 to 1973 and the subsequent emergency period form 1973 to date. The first phase was characterised by multi-party democratic process within a monarchical system. The inherited Westminster constitution was repealed in 1973 by the Royal Decree, which banned political activities and enabled the king to assume legislative, judicial and executive powers. However, some changes have taken place over the years with the emergence of a new parliament and regional councils based on traditional Swazi law and custom through an Order which established Tinkhundla as 'electoral' and development centres. This has resulted in a dual system of government where the king is the head of both the 'modern' and 'traditional' systems. The present parliament was elected in 1998. Demands for democratization by a wider segment of the population came to a climax with the intervention of workers under the leadership of the Swaziland Federation of Trade Unions (SFTU), which organized general strikes in 1995 and 1996. The teachers' strike of 1997 worsened the plight of the traditionalists who favoured the status quo. This process of change has been characterised by some social unrest, with the trade unions playing a catalytic role. In response the Government arrested the trade union leaders and amended the Industrial Relations Act to make it inconsistent with C.87 and 98. Because of the resultant political instability and in response to international pressure, the government agreed to draft a new Industrial Relations Bill, which was then passed in November 2000. The king also established the Constitution Review Commission (CRC) in 1996. It is pertinent to note that the CRC has been marred by controversies concerning its composition, mandate and process. Social Dialogue The Federation of Swaziland Employers, established in 1964 has had a strong influence not only on economic matters, but also on political affairs. The SFTU was banned in 1973 under the Royal Decree of 1973. The misconception of the trade union as a body similar to a political party was cleared in 1977 through the intervention of the ILO and the ICFTU. The union enjoyed the monopoly of being the only trade union federation for a long time until the establishment of the Swaziland Federation of Labour (SFL); which is considered sympathetic to the conservative government agenda. As indicated earlier, the SFTU has been fully involved in the critical political events in the recent history of the country. Though there is a legal framework for tripartite consultation on labour and social policy matters, the process is undermined by the lack of a national constitutional environment. International Labour Standards Swaziland has ratified 31 conventions, including six of the eight fundamental conventions. The Labour Advisory Board has taken necessary steps to facilitate the ratification of C.138 and 182 on Child Labour. Largely because of problems encountered with the implementation of C.87 and 98 in relation to the Labour Relations Act(1980), the ILO is providing the required technical assistance to ensure that the new labour legislation complies with these instruments. Conventions ratified by Swaziland ILO Technical Cooperation Because of the strained labour relations and the problems faced in coming up with an acceptable Industrial Relations Act no major and significant technical cooperation programmes were implemented in Swaziland. However a few programmes are in the pipeline for implementation. These include: · Extension of the ILO/Swiss project on Social Dialogue to include Swaziland; · Inclusion of Swaziland in the proposed sub-regional programme on HIV/AIDS and the world of work; and · Inclusion of Swaziland in the proposed SIYB sub-regional programme.
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