If SA wants to emulate Asia, implementation of NDP is key

THE Asian countries that experienced phenomenal economic successes are China, the Hong Kong Province of China, Indonesia, Japan, South Korea, Malaysia, the Philippines, Singapore, Taiwan and Thailand.

The growth performances of these countries had variations though. The worst performer was Philippines, which grew at average of 2 percent per capita. However, this rate was almost equal to nonAsian growth. In the middle rung we have Indonesia and Thailand that consistently posted growth rates averaging between 3 percent and 5 percent. At the upper end of the scale we have the “Asian Tigers” (Japan, South Korea, Malaysia and Indonesia), aptly named for their fearsome and assertive economic growth performance. The Asian Tigers posted consistent per capita growth of well over 6 percent over the years. The impressive economic development of the Asian countries should be attributed to their adoption of developmental state philosophy in which the state is in charge of directing the economic trajectory of the country through national planning. It is my contention that had India followed the route of a developmental state, its economy would have already eclipsed that of China.

Democratic movement

The ruling ANC has been influencing the government to follow the path of a developmental state as modelled by its international supporters such as the Communist Party of China and Vietnam’s Communist Party Congress.

Having said this, one should hasten to indicate that the ANC is not a socialist organisation, but rather a national democratic movement. The ANC has been insisting that the state must play a central role in influencing and guiding the economic growth of the country.

It is on this premise that the South African government has been using the country’s resources to meet the needs of the people, reduce poverty and increase economic opportunities.

Even though the South African government did not take a socialist route, it has not left the economic development totally to the whims of a free market system. The government has intervened by promulgating and implementing various policies, regulations and legislation which impact the economic shape of South Africa. Most of these instruments are designed to accommodate the free market system principles within a broader vision of a developmental state.

Recessionary shield

The use of fiscal and monetary policies has helped to shield South Africa from the extreme effects of the global recession which started in 2008 and are still in full force in Europe. While most banks in Europe and the US had to be bailed out by their governments, the South African banks have weathered the storm without any financial assistance; thanks to the ANC’s visionary leadership.

The national government has responded to the ANC’s call by prioritising the needs of the society such as education, health care, decent human settlement, social security, and food security. The South African government has been aiming to create enabling policies and a legislative environment conducive to foreign direct investment and the creation of new business.

The government has also taken leadership in defining a common national agenda, mobilising stakeholders to participate in the implementation of the agenda and to mobilise the country’s resources towards the shared programme.

The government is eager to unite the public sector, private sector, labour and civil society in a partnership.

One of the requirements of a developmental state is the ability to have organisational ability to set up the necessary structures and systems to realise its goals of the shared programme. Some analysts have argued that the South African government has unfortunately failed dismally here in many ways.

President Jacob Zuma’s administration is aware of this weakness and thus it had spearheaded the establishment of the National Planning Commission.

This commission produced an impressive document called the National Development Plan (NDP).

The relevant state organs and the structures of the governing party have endorsed the NDP. As part of implementing the NDP, the President has established a new Ministry of Small Business Development and the Presidential Infrastructure Coordinating Committee.

These will go a long way to address all critical blockages.

For the first time since 1994, South Africa now has integrated energy, agriculture and manufacturing plans.

If South Africa wants to attain impressive economic growth similar to those in Asian countries, both the private and public sectors should push hard to get the NDP implemented. Instead of just being armchair critics, the academia and the civil society should contribute to the success of South Africa as a developmental state.

Even though the SA government did not take a socialist route, is has not left the economic development totally to the whims of the free market system.