Government ignores investors at own peril
THERE has been a lot of media coverage recently about the need for business and the government to get their act together.
It has been clear for quite some time that the government is very much at odds with business thinking, and no more so than in the area of policy formulation.
Frans Cronje’s column, “Abandon policies that inhibit growth goals” (March 20), summarises a number of issues that are of current media interest.
However, many policies and much legislation have already been adopted that are neither business- nor investor-friendly.
The government does not appear to have a clear vision of what the changing economy needs to do to face up to the inevitability of declining commodity resources such as gold, or the need for them in the medium to long term, such as coal.
And it does not have a clear understanding of what needs to be done to introduce the necessary legislation and policies to accommodate these changes.
There appears to be a disconnect within the government.
Please will you get more coverage from recognised representatives of business to pronounce on these issues more regularly in the media?
One is left with the impression more often than not that ministers are pushing agendas that do not align with what business is asking for or requires.
The social agenda is, of course, of great importance, but without a sound economy, and one that addresses the needs of a changing world, social goals have no hope of being achieved or implemented, and certainly not on a sustainable basis.
South Africa is in a situation where it is on the edge of a precipice and has had to scurry around to garner support from offshore lenders/investors.
How can this audience take any of these assurances and promises seriously when they observe the empirical developments over the past few years — and also see what is in store from a policy formulation perspective?
Clearly, they are concerned about these pending policies and have expressed concern, and have voted with their collective feet. —