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