Communism has failed
The speech distributed to the press at Nkosazana Dlamini-Zuma’s address at Gibs on August 29 was a communist manifesto. The economy must not be in the hands of a minority — black or white — but in the hands of a democratic state. This is a textbook definition of communism.
In a capitalist country, the business leaders of the private sector are of necessity a “minority”. In the US, Jeff Bezos and Elon Musk – and others in the group of high-performing technology stocks — are most definitely a minority. Yet they control, through their minds not their hands, new and growing sectors of the US and world economy.
I wonder how Dlamini-Zuma envisages innovation occurring in her South African paradise? Will the state innovate? The looting in the state is certainly innovative, but that’s it. If the state can’t innovate, will it seize innovating sectors of the economy after they have got going?
Who in his or her right mind would apply their entrepreneurial efforts in SA? Perhaps Dlamini-Zuma does not believe that we need innovation. Just look backward and transform what we have. SA would, however, then wither away. Whether the ANC likes it or not, the world is rapidly changing. We must adapt or die.
If there is one thing that reveals the barren nature of the ANC’s ideology, it is the nonsensical yet ubiquitous belief that the economy is in the “hands” of anyone, white or black. The economy lies not in the hands of people but in their minds. Hands were more important centuries ago, but are hardly relevant now. We must understand that the economy is not a thing out there that has been unfairly seized by whites. The economy is the result of millions of individuals offering, and bidding for, goods and services.
So, much as it may dismay Dlamini-Zuma, the economy is indeed a market. It is, or certainly should be, a competitive market in goods and services.
This market is cleared by prices. Russia and China, in their communist past, tried to perform the role of markets by having the state set prices. They have long since abandoned this futility. Their economies are moving towards, not away from, markets. This is why China, in particular, has grown so rapidly over the last decades. The only would-be communist country today is Venezuela. Enough said.
Willem Cronje
Via e-mail