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Our key weaknesses remain inadequate capacity, inconsistency and perhaps even a lack of political will t o implement key decisions of the Federation.

As part of the preparations for the Congress debates, we developed and circulated a political discussion paper summarising and analysing developments over the past three years, located in broader trends over the twelve years since the democratic transition .

The second section reports on political engagements. The political environment 2.1 Transformation of the state - strengthening our democracy The main question for this Congress is whether we made sufficient progress to allow us to proclaim that we are on course.

Sections of the COSATU discussion paper on the balance of forces and the state should help us in this analysis.

This analysis of economic trends led COSATU and the SACP to argue that in economic terms capital has gained more from democracy than the working class.

Based on this conclusion, both formations declared that they want the second decade of freedom and democracy to be a working-class decade.

Workers sh are in the national income continues to decline even though it increased very slightly from 2002 to 2005.

Since the Eighth Congress, the ANC increased its electoral strength, and now controls all provinces and indeed most of the local governments. In addition , we have seen substantial efforts to transform the state, especially the major social services, to meet the needs of the majority.To that end, we also set ourselves the task of building the ANC, the SACP and the mass democratic movement.As part of this, we agreed to mobilise our members and the public strongly around the elections. Ideological development: We committed ourselves to all-round ideological work to assert and defend the ideas of the working class in the public arena and to deepen the class-consciousness of workers.Despite these gains, the condition of the working class has not improved in many areas.Capital uses its power to find new ways to extract cheap labour by bypassing labour laws through sub-contracting and increasing reliance on atypical labour.

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It helped to unite the Alliance and to focus the movement as a whole on the challenge of defending our electoral victories.