IMF Report: DA calls on Minister Gordhan to disregard Cosatu's hysterical criticism

The International Monetary Fund's (IMF) Article 4 report on South Africa presents a balanced and accurate view of our economic problems and Finance Minister Pravin Gordhan should disregard Cosatu's hysterical criticism of it.

While the protracted strikes in the motor and mining industries continue to place thousands of jobs at risk, Cosatu is more interested in hitting out at the IMF than responsibly resolving labour disputes and saving jobs.

The recommendation at the heart of the IMF's report is that government should "advance structural reforms, by implementing the National Development Plan (NDP), and increasing competition and flexibility in labour and product markets, to achieve faster growth and job creation".

Ironically, the biggest obstruction to these reforms is Cosatu itself. The union federation has led an assault on every major economic reform tabled by this government including the Youth Wage Subsidy and the proposals in the NDP.

The IMF also recommends that government should "tackle the key constraints that are holding back the economy" and "attack entrenched interests" to move to a higher and more labour-intensive growth path. 

Cosatu represents the ultimate set of entrenched interests in South Africa, and their blocking of policy reforms is the most damaging constraint to our country's growth.

The DA calls on Minister Gordhan to disregard Cosatu's views on the report and double down on policy reforms like the Youth Wage Subsidy and those in the NDP in the interest of economic growth and job creation. 

Statement issued by Tim Harris MP, DA Shadow Minister of Finance, October 3 2013

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