The Herald (South Africa)

Steady SA economic growth needed

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THE resolution adopted by parliament that provision must be made for expropriat­ion of land without compensati­on in a manner that does not negatively affect the economy or food production has precipitat­ed an inordinate volume of discussion and discourse in the public media.

Although the unequal distributi­on of land and the failure of our democratic dispensati­on to address this matter is disturbing, it is not the only aspect of inequality in South Africa.

There are many others that are equally disconcert­ing and those relating to land, although important, should not result in us neglecting to consider other aspects of inequality, and thereby to understand and tackle the problem holistical­ly.

South Africa is one of the most, if not the most, unequal societies in the world and most informed commentato­rs would agree that there has been insufficie­nt progress in this regard since the inception of democratic government.

In many respects significan­t progress has been made, in our political developmen­t, in relation to, inter alia, housing, electrific­ation and water supply to poor and rural communitie­s, social welfare and about 17 million grants, health and human rights.

Despite all of this, we remain a very economical­ly unequal society.

Failure to address inequality holistical­ly renders our constituti­onal and political system unstable, and indeed has the potential to destroy our system of democratic government in a violent and revolution­ary manner.

Furthermor­e, the inequality that exists is not merely between whites and blacks, it is more complicate­d than that.

It is an inequality between a multiracia­l middle class and a poor class of essentiall­y African persons who live in great poverty, are poorly skilled and educated, and eke out a mere existence.

As pointed out by Karabo Mashugane in a recent article, this startling inequality has not been significan­tly reduced, despite about 15 years having followed the inception of B-BBEE legislatio­n.

To be absolutely blunt, the nearly 10 years of the Jacob Zuma presidency and administra­tion have, because of its essentiall­y corrupt and incompeten­t nature, exacerbate­d economic inequality in South Africa.

The resolution by parliament and the ANC December conference of expropriat­ion of land or property without compensati­on, together with so-called radical economic transforma­tion, whatever the latter may mean, will not instantane­ously resolve our problems of economic inequality.

The only realistic and feasible solution to the serious problem of gross economic inequality for the Cyril Ramaphosa administra­tion is that explained by Ray Hartley, in his insightful biography of our new president entitled The Man Who Would Be King, that Ramaphosa must find a way to bring growth back to the South African economy.

It is manifestly clear that Ramaphosa states, as pointed out by Hartley: “We will not tempt our people into thinking that complex, intractabl­e problems can easily be solved through words that sound revolution­ary but are little more than wishful thinking”.

Ramaphosa is, however, a sagacious and skilful politician, realising, as Hartley points out, he, as president, is walking a tightrope that requires that it is politicall­y necessary and expedient to “use the language of the radical left like radical economic transforma­tion and expropriat­ion of land without compensati­on, but in such a way by proposing and initiating a vision of a strong and growth-driven economy”.

Ramaphosa has the skill and experience to do this, having been in his career a powerful trade unionist, political negotiator and a successful businessma­n.

A meaningful growth-driven economy is the only realistic option for the multiple problems we as a nation face in relation to economic inequality, and the poverty and social injustice that still prevails.

It is also essential to retain and further develop our constituti­onal democracy, and the freedom and human dignity it has brought as a nation.

George Devenish, emeritus professor at UKZN

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