POLITICS

State ownership needed of commanding heights of economy – SACP

Party says capital not being reinvested in productive sector of our economy, especially manufacturing

Statement on the release of the 3rd Special National Congress resolutions

20 July 2015

The successful 3rd Special National Congress of the South African Communist Party, held from 7 to 11 July 2015, discussed the shared perspective of our alliance to place our country’s democratic transition on to a second, more radical phase. Since 1994, a new, democratic culture of human rights enshrined in our constitution and streamlined in various pieces of legislation, and massive social redistributive programmes have changed the quality of life of millions of South Africans for the better. This work must continue, be strengthened and deepened as part of the second radical phase of our democratic transition.

However, as the first two decades of our democratic transition demonstrate, social redistribution alone without sufficient attention paid to economic transformation will not resolve the persisting problems of high levels of class, race and gender inequality, unemployment and poverty. There could come a point where social redistribution is overwhelmed by economic constraints, becoming unsustainable to maintain, let alone to keep pace with its consequent demand that might surpass capacity.

Two decades since our April 1994 democratic breakthrough, South Africa is still heavily reliant on the export of raw materials and the import of finished goods, both for domestic consumption and industrial use. Despite its massive mineral resource endowments, the legacy of low levels of production inherited from our colonially constructed under-development persists.

However, the country is not suffering from the dearth of resources, although it has suffered, which problem must be confronted decisively still, major waves of disinvestment and capital flight as a result of the shock therapy that was imposed under the 1996 class project and neoliberal globalisation.

There is massive capital in our country that has been accumulated from labour exploitation. This is not being reinvested in the productive sector of our economy, especially manufacturing. The contribution of manufacturing as a share of our Gross Domestic Product (GDP) is under severe stress.

Congress resolved that for the second radical phase of our transition to succeed all of these and the entire structure of the colonial features of our economy must be rolled back.

In particular, congress not only emphasised the need to expand and diversify manufacturing in order to create jobs, but transformation in ownership and control to develop new social relations of production and reduce inequality and poverty.

Accordingly, the congress called for decisive implementation of state-led interventions in the economy, through, among others, massive infrastructure development and state ownership of the commanding heights of the economy.

The congress called for more active promotion and building of a strong, vibrant and thriving co-operative sector and collective forms of ownership, as a contribution towards the socialisation of the means of production and the wealth produced.

The congress further called for the strengthening and diversification of state owned enterprises, including in the banking, mining and other sectors through, among others, decisive implementation of state owned bank and mining company.

There will, however, be no radical phase of our democratic transition without a review of our macroeconomic policies. The congress thus called for, among others, decisive implementation of capital controls and, in the same vein, financial sector transformation. The SACP will take its Financial Sector Campaign to greater heights as part of the core imperatives to ensure the second radical phase of our transition.

All of these and other resolutions require a united revolutionary movement headed by our ANC-led alliance, reconfigured to function optimally both inside and outside of the state and other key sites of power. This is the context in which the congress conducted a review of Party organisation, as well as that of the alliance, to propel our overarching transformation programme, the National Democratic Revolution, to its logical conclusion.

In the current period, the main objective of the SACP is to build and cement the unity of the motive forces of this immediate revolutionary transformation, to solve the immediate problems facing the workers and the poor, and to build capacity for, and momentum towards socialism – the most sustainable solution.

The congress resolution the SACP is releasing today are not limited to the above. The resolutions are more detailed and cover a wide range of areas, including the need for the transformation and diversity of the media; transformation of the judiciary; reconfigured alliance and electoral options; governance and forthcoming local government elections; fighting crime and corruption; accessible, affordable, reliable and integrated public transport system; BIRCS and alternative global partnerships.

Resolutions on SACP organisational review and related alliance resolutions will be released separately following applicable internal and alliance processes.

The SACP would like to thank all those who made its Special National Congress successful as well as the media for coverage, in particular for those news reports and analyses that were fair, balanced and accurate.

The SACP would once more also like to congratulate our progressive trade union ally, Cosatu, for its successful Special National Congress that took place immediately after that of our Party.

Statement issued by the SACP, July 20 2015