CYRIL’S NEW PLAN THE REAL DEAL

Analysts praise Ramaphosa’s economic revival plan, which draws on the ‘New Deal’ that pulled the US out of the Great Depression in the ’30s.

To implement it, he needs ‘decisive victory’ and ‘credible mandate’ at elective conference.

Deputy President Cyril Ramaphosa’s economic vision lines up with reality and is a page from the ANC book, political analysts say.

Analyst Andre Duvenhage praised Ramaphosa’s Franklin D Roosevelt approach of a new deal for the economy. The former American president in 1933 implemented a “New Deal” policy to grow the economy amid the Great Depression, in which a quarter of America’s workforce were unemployed. Today, the US is among the leading economies in the world, with less than 5% unemployment.

Duvenhage said Ramaphosa’s statement spoke to the ANC policy for all stakeholders to assist in growing the economy.

“The ANC on a regular basis asks business to assist,” he said.

Another analyst, Daniel Silke, said Ramaphosa’s vision was theoretically sound. “By and large, he is talking the right talk. His vision is constructive and in line with the National Development Plan, which never actually got traction within the ANC government for several years,” Silke said.

That Ramaphosa wanted to see former National Treasury budget head Michael Sachs return to the department indicated he believed skills were necessary to get the job done in government.

Ramaphosa told an ANC economic colloquium in Soweto this week that Sachs was a local product and his skills were necessary for Treasury and the government as a whole.

“It’s most unfortunate that he has chosen to resign and he’s resigning because of the instability he perceives in that department.

“I’m going to have a discussion with Minister of Finance Malusi Gigaba about stability in Treasury.

“Hopefully, Sachs can be persuaded to come back,” Ramaphosa said.

Sachs resigned from the Treasury this week over President Jacob Zuma’s plan to implement free education, despite the lack of funding for it.

Ramaphosa said Sachs’ skills were needed for the benefit of the country. “The budget office in our economy is the most important office. It drafts the budget of our country, makes sure financial resources are properly allocated.

“He knew everything to do with the budget,” he said.

Ramaphosa is aiming to be the next ANC and state president after Zuma. He is vying for these positions with six other candidates.

Outlining his vision, Ramaphosa said the country’s economy needed to be radically transformed structurally due to severe flaws inherited from the apartheid past.

“We must act now – boldly, decisively and collectively – to change the trajectory of our economy and our country.

“There is a need for a decisive new approach, we need a ‘New Deal’ for South Africa.”

The deal must bring together government, business, labour and civil society in a meaningful and effective social compact to construct a prosperous, just society founded on opportunities for all.

Duvenhage said Ramaphosa was on the right track regarding addressing the current economic crisis.

“We are in an economic and financial crisis, we need business and corporates to assist in the process.

“It is good that the government, business, labour and the community structures must align.

“We must ask who creates jobs in this country. It is business and corporates,” Duvenhage said.

Silke said to implement his vision, Ramaphosa needed a “decisive victory” and a “credible mandate” at the ANC elective conference in December. He said Ramaphosa understood that he must bring lost skills back to the government to realise his vision. –