Discussion at the ANC special national executive committee (NEC) meeting was informed by three economic priorities: driving inclusive growth and job creation; reducing poverty and tackling the high cost of living; and building a capable, ethical and developmental state (“ANC rolls the last dice with economic recovery plan”, October 6).
This sounds like serving an old wine in a new bottle. SA’s problems have long been identified by scholars and politicians. Policies were drafted to deal with these problems but nothing has changed. Key among these problems has been a change of policy from the Reconstruction & Development Programme (RDP) to Growth, Employment & Redistribution (Gear).
Gear was imposed with the hope that it would focus on fiscal austerity, liberalising exchange controls, promoting export-led growth and reducing the government deficit. While it was said this policy would improve living conditions and reduce inequality, it is quite clear that this was the beginning of the problems for the people of SA. On the contrary, the outcome has been the opposite of what was intended.
Since its adoption, the country has experienced economic decline, except during the Mbeki era, which was marked by several positive developments. Since then it has been a disaster. Unemployment, inequality and poverty have all increased. The energy sector, freight and logistics, key industries like mining, and the township economy, have been taken over by foreign nationals. Corruption has soared, with criminals taking over community projects.
Austerity measures have also dealt a significant blow to public sector employees, resulting in a perpetual standoff between them and the government. All of these happen under the same leadership that seeks to address the problems they themselves have created.
A system driven by neoliberalism cannot address these challenges.
Tom Mhlanga
Braamfontein
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