The Star Early Edition

The battle for hearts and minds is still on

- Christo Owen van der Rheede is chief executive of business think-tank AHi.

Christo Owen van der Rheede

THE SOUTH African political landscape is set to change dramatical­ly with the expulsion of the National Union of Metalworke­rs of SA (Numsa) from the ANC alliance. My guess is the country is heading towards a three-party state:

The Socialists who seek state ownership and a greater share of profits generated from goods and services produced; the Pragmatist­s who seek individual ownership and empowermen­t of the masses through the free-market system; and the Crony Capitalist­s who seek unbridled selfenrich­ment through state tenders and abuse of political patronage.

Plans are afoot to launch the United Front next month, a broad-based socialist movement committed to advance the interests of the working class. Socialists are of the view that workers are exploited and their talents at their expense are geared towards maximising profits for owners only. According to Irvin Jim, the secretaryg­eneral of Numsa, workers are “duped” into sharing informatio­n about what they do to improve productivi­ty at the point of production. Such informatio­n is then used to reduce the number of workers without compromisi­ng volumes of production.

The central thrust of a socialist state is to mobilise the working class to advance their material wellbeing through the appropriat­ion and redistribu­tion of surplus value by the state.

While socialism is on the upsurge, a new free-market paradigm propagated by the Pragmatist­s is also on the rise. The National Developmen­t Plan (NDP) under the auspices of the National Planning Commission, a cohort of astute political, business and academic leaders, laid the foundation for this. In practice it takes on the form of a socio-economic plan to tackle head on the complexiti­es of a highly unequal and fragmented society such as ours. Organised business formations and key political players embraced the plan, while it was rejected by socialist labour movements such as Numsa.

The central thrust of all arguments put forward in the NDP is that rapid economic growth is the solution to our social challenges such as poverty, inequality and unemployme­nt. Economic growth is realised through a pragmatic approach.

Threesome

The Crony Capitalist­s thrive on patronage and the trading of “inside” informatio­n for personal favours. Cosy relationsh­ips between those who seek business opportunit­ies within the state and those in powerful government positions who seek financial rewards for their hand in securing it, is the hallmark of crony capitalism.

While the narrow sectarian interests that characteri­sed the political landscape pre-1994 made way for national interests’ post-1994, it was soon replaced by self-interests and personal enrichment.

Crony Capitalist­s do not have an appetite for merit and democratic processes. It seeks to centralise authority and favours the appointmen­t of cronies who will not question decisions by the powers that be. This state of affairs can easily plunge South Africa into civil conflict and is certainly in nobody’s interest, except those who thrive on chaos and looting.

Who will save South Africa from this downward trajectory of embedded corruption and economic stagnation?

I bet my money on the Pragmatist­s, because the militant mobilisati­on propagated by Numsa and the likes against owners of capital is in nobody’s interest. In an everchangi­ng local and global economic and technology-driven environmen­t, investment­s by entreprene­urs, talent optimisati­on, new ideas, innovative­ness, competitiv­eness, modernisat­ion, scientific research, high order skills, internet access, infrastruc­ture developmen­t, continuous adaptation and strategic economic organisati­on should be encouraged not discourage­d.

It is incumbent on the Pragmatist­s to convince Joe Public to opt for this route. Marketing the value propositio­n of a new free-market paradigm based on the NDP as opposed to what the old order unbridled capitalist system and its legacies of human and environmen­tal exploitati­on has to offer, therein lies the crux. More importantl­y is the need to establish a new political formation consisting of Pragmatist­s from existing political formations that seeks faster growth, more efficient social spending and an inclusive and modern free-market system.

The battle is on for the hearts and minds of the electorate. Don’t expect a threesome.

Newspapers in English

Newspapers from South Africa