Business Day

SA needs federalism

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No voting reform will deliver the hard medicine that can make SA a successful nation. Political power is centralise­d in an incapacita­ted national government, failing to acknowledg­e the incredible diversity across SA. National taxation and the redistribu­tion from wealthier to poorer regions allows failing regions and municipali­ties to continue to exist when they may never be productive.

What SA badly needs is a high degree of federalism so that provinces can compete in the marketplac­e of ideas. Only national defence and immigratio­n should remain exclusivel­y the domain of central government.

Everything else should go to the provinces, including the right to raise taxes, with only a small amount of tax then given to the national government to fund its remaining competence­s. This would also weaken the grip of national party structures over their provincial branches.

A strong central government will continue to ruin this country with poor policy choices because one-size-fits-all policies only work in small, homogeneou­s nations, which is not SA. Whether it be National Health Insurance (NHI) or the persistenc­e of quasi-monopoly state-owned enterprise­s such as Eskom and Transnet, we need real-life experiment­ation to see what works and what doesn’t.

Let KwaZulu-Natal and the Western Cape have control of their ports and experiment with privatisat­ion or remaining state controlled. Let provinces that believe in NHI implement it, and if it’s a disaster others won’t. Mineral wealth can also be managed by each province — if they implement bad policy and legislatio­n, they’ll get no taxes and be forced to reform. Education delivery to poor households — the biggest failure in postaparth­eid SA — can be done very differentl­y in each province and successful processes copied.

Thirty years after Codesa, it’s time to go back to the drawing board and try something radically different, instead of tinkering around the edges.

Suhail Suleman

Cape Town

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