EFF STATEMENT ON RAMAPHOSA ECONOMIC STIMULUS PACKAGE
Friday, 21 September, 2018
The EFF notes the economic stimulus package announced by President Ramaphosa in an attempt to salvage an economy that is based on the preservation of white monopoly interests. Ramaphosa has announced nothing new, but an attempt to repackage old neoliberal economic plans that have proven futile; they have failed to grow the economy and create sustainable jobs.
The stimulus package has nothing to do with the overall structural changes of the economy. The promise of radical economic transformation which he made noises about prior to being elected President has been compromised at the table of cosmetic changes to an economy whose essence is the marginalisation of the black majority from the country's wealth.
The stimulus package announced, which is in any way thin on details, is no doubt continuing with more of the same misguided trust in private sector investors to take lead in resolving economic challenges. The so called growth enhancing economic reform did not make any concrete mention of the strategic role of the state in the productive sectors of the economy. Instead, the state continues to be positioned as a consumer that must continue to procure services from the private sector, including in areas that could leverage its buying power to develop industries.
The South African private sector has proven in the last 20 years that even with growth enhancing policies such as GEAR, AsgiSA and the recent NDP, they prioritise profits at the expense of creating sustainable jobs and resolving the growing inequality. A recent example is the youth employment tax incentive that Ramaphosa has now extended to 10 years. Since it was announced, more than R6.3 billion was claimed mainly by labour brokers yet youth unemployment between the age of 15 - 24 has skyrocketed from 62.6% to now 67.1%.