NEWS & ANALYSIS

BEE: Laissez faire or the Mugabe option?

Vince Musewe says a middle road is needed between the two

It's time for game change thinking in our politics: We need a new paradigm of thinking of constructive engagement with each other

There have been some interesting discussions whether the ANC needs to implement an economic transition and how that can be achieved. According to the DA, the economic transition has not happened because of the failure of the ANC to manage the problem. This is an interesting discussion that I think we ought to have. The question that keeps popping up in my mind is: Is it possible for this democracy to achieve economic transition without vehemence?

Fresh in my mind is how Mugabe, having lost patience on the issue of land, decided to take our economic fate into his hands and repossess farms at much human cost and suffering. The problem with this approach is that, it has destroyed the very economic base that indigenous Zimbabweans may seek to inherit and worse it has created an intransigent black military bourgeoisie.

In my opinion neither the ANC, the SACP nor COSATU deliberately want to create such a scenario in this country. It would be insane and not advantageous to their political interests.

I think we are where we are because of multiple reasons:

The ANC implemented BEE as a means to slowly but surely correct the economic imbalances with a view of trying to facilitate the emergence of a new black capital class. The masses were forgotten as this process became a game of political favors. Today some sit with much fear that MAYBE the ANC intends to renege on its promises to leave the capital ownership architecture untouched, change the constitution and thereby renege on its undertakings to minorities.

BEE did not work because we implemented the wrong formula; transformation in the corporate sector has been pedestrian because of resistance to change and the protective nature of capital. Monopolies have strengthened their hand and the ownership of the economy has become more concentrated.

Business has colluded in the pricing of goods and services, corruption in the public sector has sucked significant resources which have gone to waste, education and skills development has been a disaster and more important, the global economic landscape has not necessarily helped in spurring local economic growth. Added to this the South Africa masses are getting impatient: the political dividend has not materialized.

However it is very important we do some introspection as a country. In my view everyone has contributed to our current circumstances. We have all been architects of this monster that we have created.

The  Mugabe approach where we can see a more aggressive less tolerant government taking total responsibility to transform the economy by putting pressure in all sectors and changing the laws and insisting on an indigenization policy that forces majority black ownership of companies in all sectors is not advisable given its likely negative consequences. However it is attractive to some who are now impatient.

The laissez faire or market approach that says transformation will emerge if the markets are left is alone attractive economic theory which has not delivered. Naturally, it remains the preferred route by capital and the minorities.

The fact of the matter is neither of these policies alone will work and in my opinion we may need a palpable cocktail of the two approaches. Our focus now needs to be on contriving the best means of creating that cocktail together and not who will win the 2014 elections.

I am convinced that no matter how we may differ, all of us really want the same things and it is time to elevate our thinking and acknowledge that the problems we are facing CAN be solved if we come together.

To President Zuma I say now is the time to truly lead; to Hellen Zille I say now is time to take off the "opposition" mask and be who you really are, an African woman of substance who can positively contribute to change.

Let us for once banish our differences and embrace our collective responsibility in leading Africa. It has happened before so it can happen again? The only thing stopping that is our awful mental picture of a future that has not even arrived.

Time is not on our side.

Vince Musewe is an economist he is promoting new thinking about Africa under the topic "New African Minds" and you may read his philosophies about change by going to vincemusewe.blogspot.com or email him on [email protected]

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