Come on now, business, and take a stand
Everybody knows SA is at risk of social and economic collapse, and that even as we approach this disaster gradually, the final implosion will be sudden.
It is perhaps less widely accepted that a solution will emerge only if business and the government reach an accord, and present a plan that will restore widespread faith in the prospects of economic prosperity for all. Such a miracle will be achieved only if vested interests on both sides of the business-government divide can be set aside in the name of a far nobler cause than the selfish requirements of either. As things stand, both sides think they’re right. Neither is, entirely.
We have tried before, but remain held apart by the toxic presence of insecurity and arrogance. The elusive middle ground will continue to elude us for as long as we focus more on the past than the future. The past decade, give or take a few years, is littered with failed attempts or unexpected collateral damage.
Individual business people have served in government positions of leadership. Almost without exception, though, because of ideological differences or other less laudable causes such as ineptness, corruption, greed, racism and other blunt weapons, these efforts have failed.
Various structural impositions and alternatives have been proffered to address poverty, inequality and unemployment, such as upsideonly BEE shareholder structures, public-private partnerships or other forms of joint venture between the private sector and state. These too failed, despite often virtuous intentions. The increase of more than sevenfold in the number of social grant recipients over the past 25 years is testament to this broad-based failure, and not “one of the greatest achievements” of democratic SA, as it is held up to be.
Political coalitions failed miserably, causing havoc and silliness in consequence. At municipal level the focus is now between parties vying for control of the budget, not service delivery. This muddle invited the rogues in, to capture (without much resistance) the spoils and deal them out among themselves. The government has been reduced to a bit player in this war. Business needs to
take a stand and move on from politely putting up our hands to speak, only to retreat or acquiesce at the first sign of political resistance. Business owns the capital and it needs to present the government with some big “if-then” choices.
If the government is prepared to encourage, enable, motivate and protect capital projects proposed by business (that breach traditional publicprivate sector divides), then capital and expertise will be forthcoming in abundance, locally and internationally. If not, then what little capital is still being invested in our future locally will be deferred, withheld or diverted offshore.
These investments will initially be required to be owned and operated by the private sector. An eventual transfer deal (to a competent state) can be worked out if that is clearly required.
Conditional capital is the only weapon business has to bring government to the table. To make this happen, business leaders will have to leave their comfort zones, where common cause is logical, understood and practised, and enter the political arena, there to direct and control the centres of power, decision-making and policy formulation.
They will need to be voted into the government, no less. In a period as short as three to five years, the necessary economic structures and social attitudes can be in place to anchor the shared course of our future.
Easily, the majority of the population are by now over the speeches, dances and promises that have taken us as fools so far. From now on only hard evidence of measurable achievement will convince us.
We’ll no longer be persuaded by the loudmouths with no track record of achievement whatsoever, who beguile their followers with fantasy and fighting talk. If we start this week, it may not be too late.
Barnes is an investment banker with more than 35 years’ experience in various capacities in the financial sector.