Whose recipe for economic growth would you rather follow? The International Monetary Fund (IMF) or Patrick Craven, the communist spokesperson for Cosatu?
In its annual country report on South Africa the IMF said our poor growth performance cannot be blamed only on weak global conditions. Domestic factors such as strikes and policy uncertainty play an important part in holding back growth and investment.
"SA faces low growth, widespread unemployment and a high reliance on foreign capital flows. The weak global economic outlook is not helping, but ultimately, the country needs to move ahead with planned structural reforms to boost growth and create jobs."
In a raft of other suggestions, the IMF placed emphasis on the government's National Development Plan (NDP) and called for its speedy implementation. It referred to labour unrest and the necessity for labour market reform, with a new commitment by labour to wage restraint.
Most sensible people would welcome the balanced and constructive advice from the IMF. Of course, Mr Craven of Cosatu did not. He had an all-out go at the IMF, ‘this rabidly pro-capitalist, neoliberal organisation,' and which he blamed for the ‘world capitalist crisis'. He was ‘flabbergasted' at the contents of the country report.
According to Mr Craven, the answer to South Africa's economic ills requires nothing at all from labour: no flexibility, no increased productivity, no moderation of wage and other demands. His recipe is of course the opposite of that of the IMF. He says, "Capitalism, and particularly free market capitalism, cannot be a solution to high unemployment rates and slow growth. Only through industrialisation, more state intervention and strategic nationalisation of the commanding heights of the economy will we be able to meet our job creation targets."
Mr Craven and Cosatu always neglect to tell us how the SA state which fails at running our education, our health services, our police force, our airways, our broadcasting corporation, our civil service generally and local government specifically, to name only a few areas of failure, could possibly be entrusted to run anything more in our economy.
Cosatu also does not tell us how SA is to pay for the nationalisation of the ‘commanding heights of the economy,' or what those are. Does it include agricultural land and land for development around our towns and cities? Does it include mining companies? Does it include major public companies? Banks? And where is the money to be found to enable the take-over? Or is money not necessary? Naturally if one follows the Mugabe recipe, or the policy of the Malema EFF, one does not need funds; one simply takes whatever is wanted and distributes it to politicians and their friends, judges, the wives of the well-connected and those whose favour needs to be secured. The people of the country never benefit.
The free market policies that Mr Craven so despises have ensured for two generations unprecedented prosperity and advancement of the masses all over the world. The previously communist countries have mainly followed the market economy path and have uplifted millions. Cosatu needs to point to a single example of a successful economy that has followed its disastrous recipe.
Douglas Gibson is former Opposition Chief Whip and former Ambassador to Thailand. He can be followed on Twitter @dhmgibson
This article first appeared in The Citizen.
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