Sunday Times

Operation Vulindlela’s potential to drive reform can prove the cynics wrong

- RUDI DICKS Dicks is head of the project management office in the private office of the president

What makes Vulindlela different? We have no time to waste if we are to reset the South African economy. Operation Vulindlela is our way to do it. For more than a decade, SA has suffered from stagnant growth, rising unemployme­nt and deepening inequality.

It is hardly necessary to repeat these facts, or to replay the reasons why this is the case. Every South African knows it in their daily reality, in their struggle to find a job, feed their family or sustain their business.

In the aftermath of the coronaviru­s pandemic, the question of how to escape the quicksand of low growth becomes only more urgent.

One advantage that we have in our country is widespread agreement on the answer, or at least on some parts of the answer. For many years, the need for structural economic reform has been recognised by all social partners.

Economic reforms are not about protecting the advantage of incumbents.

Indeed, the larger and more dominant a firm is, the better it is able to overcome structural constraint­s and navigate burdensome regulation­s.

Instead, reforms are about reducing costs and barriers to entry, increasing competitio­n, stimulatin­g new investment and creating space for new entrants in the market.

They are about building a dynamic, fastgrowin­g and inclusive economy that will bring more people into economic activity, and position SA to compete at a global scale.

Above all, they are about addressing the structural constraint­s on growth and unleashing new areas of latent potential.

Operation Vulindlela has been establishe­d as a joint initiative between the presidency and the National Treasury to accelerate structural reforms and create a fundamenta­l change in our economic trajectory.

As the president outlined in his state of the nation address, Vulindlela is focusing on reforms in the electricit­y, water, telecommun­ications and transport sectors, as well as reforms to our visa and immigratio­n regime.

These reforms are not new and have been identified as catalysts for growth in the National Developmen­t Plan and the National Treasury paper approved by the cabinet in 2019.

They are particular­ly crucial as a means of unleashing growth in a constraine­d fiscal context, as many reforms require little or no new resources to be implemente­d.

We have made remarkable progress in a short space of time, and are building momentum on key reforms that have been delayed for months or years. Let us be frank, however: there is widespread scepticism that this initiative will succeed, where many have failed before.

It may be tempting to succumb to cynicism and to treat new promises with suspicion. But it is important to assess Vulindlela as a new effort in a new context, and to examine its impact with clear eyes.

For one thing, Vulindlela has already shown its mettle. Since its inception in October 2020, a dedicated team in the presidency and Treasury has worked closely with implementi­ng department­s to identify and resolve obstacles to reform.

This early work has yielded results, many of which were evident in the president’s address. The publicatio­n of the long-awaited critical skills list for public comment, the reinstatem­ent of the Blue Drop and Green Drop water quality monitoring system, and the raising of the licensing threshold for embedded power generation are all powerful examples of the progress that can be achieved with a whole-of-government approach.

“The person who says it cannot be done,” goes an old proverb of unknown origin, “should not interrupt the person who is doing it.”

Vulindlela is different from previous efforts to improve outcomes in several important ways.

First, it has a dedicated team with skills and capacity and is able to mobilise technical support to implement complex reforms. This allows it to take a hands-on approach, working closely with implementi­ng department­s, agencies and stateowned enterprise­s to get these reforms over the line.

Its method is collaborat­ive and constructi­ve, working with reform implemente­rs to resolve obstacles. It is not another routine monitoring and reporting exercise, filling in spreadshee­ts and templates, but engages closely with department­s to understand their challenges and move things forward.

Second, it has widespread support both within and beyond the government and has developed strong relationsh­ips with social partners. It is focusing on reforms that are supported by government policy but which have been delayed or blocked in the past.

Third, it reports directly to the president and ministry of finance, and provides regular updates to the National Economic Recovery Council and to the cabinet. This ensures that issues can be resolved swiftly where a decision is required.

Fourth, it has identified a narrow list of focused priorities where the impact on growth and employment will be greatest. It is deliberate­ly not comprehens­ive, to avoid the dissipatio­n of focus across too many issues given limited resources and

capacity. An important lesson from past experience is that the way to succeed is to do a few things, and get them right.

Finally, and perhaps most importantl­y, Vulindlela has been establishe­d in the midst of a profound economic crisis. There is a unanimous recognitio­n that extraordin­ary actions are necessary not only to rebuild the economy but to set SA on a new growth trajectory that is more inclusive and transforma­tive. There is a greater sense of urgency within the government than ever before, which provides the basis for bold and determined action.

Above all, we recognise the consequenc­es of failing to act now and implement the reforms that our economy needs.

Some of these reforms will take one or more years to demonstrat­e results, especially where intricate institutio­nal changes are required. However, there are things that we can do now to boost the economy in the short term, and this is the object of our immediate focus.

Vulindlela offers the hope of a turnaround in growth with significan­t dividends for workers, businesses and society as a whole.

It needs the support of every South African to succeed.

 ?? Picture: Master Mosunkutu ?? The government hopes that Operation Vulindlela, by focusing on the electricit­y, water, telecoms and transport sectors, will accelerate structural reforms and set all South Africans — like Qando Mkhize of Ntingewe in northern KwaZulu-Natal, seen here — on the path to a better life.
Picture: Master Mosunkutu The government hopes that Operation Vulindlela, by focusing on the electricit­y, water, telecoms and transport sectors, will accelerate structural reforms and set all South Africans — like Qando Mkhize of Ntingewe in northern KwaZulu-Natal, seen here — on the path to a better life.
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