CAROL PATON: Eskom is the big bid in Ramapolitics
To make it work, an imaginative response to labour’s opposition will be needed
Will Eskom be Cyril Ramaphosa’s Gear, or will it be the crowning victory of his brand of social compacting politics? The announcement on Thursday that Eskom will be split into three parts is the single biggest economic reform since the democratic government restructured public finances in the late 90s. Those reforms — described in part by the acronym Gear, which stood for growth, employment and redistribution — became known as “the 1996 class project” by the labour movement and the left generally, and were widely regarded as an assault by the democratic government on workers and poor communities. That is because in stabilising the macroeconomic environment, Gear reined in the budget deficit, dashing hopes for a huge expansion of social spending. Gear was also the precursor to the start of plans to corporatise and privatise state-owned entities. Gear was moderately successful. The stable investment environment laid the basis for a decade of growth, though job creation was not as robu...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.