Gumede rocks conventional boats

The precipitous nine place fall by SA in the recent global competitiveness rankings reflects a failure by the state to get its act together more than the private sector failing to deliver. But simply knocking the state is not going to improve the picture.

Articles

Maybe something more radical is required as SA has reached its own tipping point, from where it either becomes another failed African state or becomes a beacon of light for the African Renaissance. Enter Wits professor and author of the infuential book on the battle for the soul of the ANC, William Gumede, who told an Institute of Directors conference on Thursday that business itself should set the policy agenda, create the skills it needs and hence get around all the problems off its own bat.

A look at the World Economic Forum's competitiveness ratings by futurist Daniel Silke points to poor policy choices and implementation and corruption as the major stumbling blocks to SA really becoming a success into 2050. But it can become a success due to its resource base and potential to proffer up a young work force, which will be in demand as the world population grows, but ages, and as resources become scarce. A continued focus on colonial policy responses seems to be a major hindrance still, but Gumede's remedy certainly strikes a sombre, if discordant note, against the stream of endless government knocking taking place across the country.

The immediate response from those in attendance at the conference from business was to lament that business was doing too much already, was strained and at its wits end. But Gumede held his line - going so far as to say business must get far more vocal in the nationalisation debate itself and lambasted it for saying nothing so far on the secrecy bill, still waiting in the wings to be pushed through without a public defence clause.

Yet in both the public and private sectors, a lack of leadership, moral courage and cohesiveness is holding true nation building back, with SA's true unemployment rate closer to 38% and youth unemployment in some areas at an unbelievable 70%.

Corporate greed is also leading to a lack of trust in the business sector and this is the first thing that needs to go.

Former Eskom chairman and current president of the Institute of Directors of Southern Africa, Dr Reuel Khoza, did not mince his words at the conference either in calling for more courageous leadership conversations in SA to avoid a potential fall into the mire of a revolution brought on by rising inequality and poverty, to eradicate government corruption and curb executive greed. He called for an end to what is becoming a kleptocracy in SA - a government characterised by greed and corruption, better known as "rule by thieves". You can't fault him in that assessment after reading the headlines every day in the press.

Government is now trying to roll out a new vision for 2030 via Trevor Manuel's National Planning Commission, with the steps due to be announced on November 11 leading to more efficiency and coherence by government entities.

All well and good, as government must lay a solid foundation and provide basic services efficiently, but while this happens business should focus more on Gumede's idea than what government's plans are. Clearly, waiting for government is not a short- or even medium-term solution as it is 2030 we're talking about.

I've heard of highy effective artisanship programmes right now by big companies in the US where people straight out of school are actually paid to learn critical skills by a business that knows it will need those skills in the future. After two years the best candidates are kept on at a higher rate of US$17 an hour. SA needs this to happen right now - it can if business does it - rather than waiting for 2030 in the hope government may do it. There is no guarantee government will get it right anyway - another prediction by Silke is that if SA's government doesn't stop growing a Greek scenario could beset SA by 2050.

Now that is best avoided, but the path is being laid to that unhappy outcome by a bloated, inefficient unfirable and highly paid civil service - which is exactly what Greece's became prior to the current crisis.