The South African predicament

South Africa is classified as an upper-middle-income country and yet is characterised by deeply embedded socio-economic disparities. Historical factors have largely contributed to this situation. The task at hand is to find a resolution to the slanted socio-economic landscape.

The present economic architecture lacks the ability to meet the broad-based aspirations of the peopleship. Instead it favours the interests of a white elite in particular and a few black faces co-opted into the system.

Noticeably, the ongoing national discourse over-emphasises first-generation issues at the expense of second-generation issues.

They are interlinked. Politics and the economy are inextricable. Issues of social justice should be treated as the highest priority at this juncture.

In South Africa, there is no need for anyone to go to bed on an empty stomach. But this has become a perennial trend.

Occasional symbolic gestures made by SA's CEOs of sleeping out in the open are welcomed, but these have to be extended to substantive transformative issues. Social responsibility programmes are welcomed but have to be turned into sustainable interventions addressing the root causes.

This applies to Mandela Month characterised by onceoff charitable celebrations. We need to rally ourselves as a nation around what Mandela stood for throughout his entire life. Failing to adopt a new approach to the Mandela legacy could be interpreted as another public relations stunt.

In order to propel transformation, government intervention in the economy is inevitable taking into account the history of the country.

The success of state intervention in the economy largely depends on the calibre of leadership at a given time. Leadership above reproach would ensure colonial and apartheid frontiers are pushed back through an informed policy framework. The lack of such leadership may derail this strategic objective.

We need to revisit philosophical debates around the economy before the establishment of a transitional demo- cratic dispensation.

The present dispensation is a transitional mechanism to an equitable dispensation. South Africa is still grappling with issues of equity in every aspect.

For example, we may be equal before the law, but without the same access to justice due to economic factors.

The dominant debates have revolved in the main around growth through redistribution, and redistribution through growth.

The former means that economic growth and re-distribution should take place simultaneously.

The opposing view says grow the economy first and consider redistribution later.

History discredited this notion, when the 1996 economic boom benefited only a white minority elite and a small anointed black elite through political connectedness.

The government needs to rethink its approach to the economy.

This process should involve South Africans across the board. We need to transcend “radical economic transformation” rhetoric and deal with substantive issues.

Apartheid economy fundamentals are still in place and intact, stifling the transformation of the economic landscape.

The present economic architecture lacks the ability to meet broad based aspirations of the peopleship. The economic design favours the interests of white elite in particular and few black faces co-opted into the system. This system has also contributed to the perpetuation of disparities between the haves and the have nots across the board.

The media should also introduce a new dimension into their reporting by covering socio-economic issues and reflecting on hindrances to the economic upliftment of the peopleship.

Complicating matters at local level is the tender/bid model designed to outsource the core business of the municipality.

This regulatory framework has emasculated the capacity of municipalities, in particular, to deliver on their mandate efficiently and effectively.

This system has been turned into a cash cow. Ironically, it has also contributed to the factionalisation, polarisation and de-professionalisation of institutions of governance.

Power play over this system has also contributed to the criminalisation of politics.

• Christian Mxoliswa Mbekela is a strategic work consultant specialising in HR, EE and risk management. A former SAYCO NEC member, he was part of the team that re-established the ANC Youth League. He is currently doing a PhD in the Sociology Department at Rhodes University. www.cmmmindpower.co.za

The success of state intervention in the economy largely depends on the calibre of leadership at a given time.