The latest Oxfam inequality report should shock our movement and its government into action
17 January 2017
The recent Oxfam’s inequality report that shows that the rich are getting richer , while the poor are getting poorer has not surprised COSATU , but we hope that it will shock the ANC and its government into action. The revelation that the wealth of three men in South Africa is greater than the wealth of the bottom 50% of the country combined is a tragedy of epic proportions. This should jolt the movement into implementing its progressive policies that are based and rooted on the Freedom Charter’s call that the people shall share in South Africa’s wealth.
It is now obvious that the ANC will not be able to build an equitable society in which there is decent work for all through neoliberal policies. The federation would like to see some bold and decisive leadership in accelerating shared economic growth and in transforming the structures of production and ownership by the ANC led government.
This should start with macroeconomic policies that support growth, job creation and poverty eradication on a sustainable basis. We also need to expedite the process of Land reform and while we have been encouraged by the voices within the movement calling for expropriation of land to take place, we need to see some action in making that plan a reality.
The movement should remain true to its promise and pledge of a state that will play a central and strategic role, by directly investing in underdeveloped areas and directing and incentivising private sector investment, including through the effective deployment of state owned enterprises.
We can only close this growing inequality by ensuring that we have an activist government and a democratic developmental state that is capable of intervening effectively to transform economic relations as the 53rd ANC Mangaung Conference resolved.
We have to start by implementing the Alliance decisions like the review of the economic and labour chapters of the National Development Plan. We want to see some deliberate action on the side of government to nationalise the identified strategic industries ,like Sasol and Arcellor Mittal ,and the creation of a state bank.
Our ANC led government should acknowledge that even the world’s leading evangelist of neoliberalism, the International Monetary Fund{ IMF} conceded that the neoliberal agenda appear to have been somewhat overplayed.
The IMF made it very clear that austerity measures hurt demand and worsen unemployment , while at the same time admitting that capital controls are a viable, and sometimes the only, option to deal with the volatility of capital flows.
We remain adamant in our position that the task of fundamental transformation of our economy, the creation of decent work and the provision of basic services to the majority of our people cannot be left to the market forces. This latest Oxfam inequality report is another proof that government cannot afford to outsource its developmental role to the private sector and that neoliberalism is not the panacea to cure our economic ills. We need a uniquely South African developmental model that will acknowledge our past and also be flexible enough to allow us to partake in global commerce without allowing too much interference from outside.
Issued Sizwe Pamla, National Spokesperson, COSATU, 17 January 2017
