LETTER: State-led strategy a recipe for disaster
The government is guided by outdated political and economic ideology, which is the antithesis of what our country needs
President Cyril Ramaphosa’s ominous assertion last week that SA’s economic recovery should be “state led” might not inspire confidence in institutional, public or private investors.
Sadly, the state has proved time and again that it is incapable of managing our economy properly because it is captured by an outdated political and economic ideology, implemented by incompetent, self-serving individuals within the ANC and its alliance partners, which is the antithesis of what our country needs.
SA is blessed with excellent economists, highly successful business executives, well-informed journalists and academics and, perhaps most importantly, competent influential individuals such as the governor of the Reserve Bank, our finance minister, organised business leaders including Cas Coovadia of Business Unity SA and Busi Mavuso of Business Leadership SA, and a host of other leading citizens in our country.
Many of these people have spoken out about how our economy can best return to a path of growth that will optimally cope with unemployment, poverty and inequality. Yet the president is increasingly giving the impression that he prefers to be guided by factions within the ANC alliance.
It is to be hoped, therefore, that the president’s true colours emerge during the finance minister’s budget presentation this week. International and domestic investors will be keenly anticipating a budget that inspires confidence, trust and faith in our country’s collective ability to restore economic growth to SA. In essence, a budget that has been fashioned by our country’s experts, not ANC alliance cadres and politicians.
Certainly, the government has a role to play, but any notion that the achievement of economic growth is going to be largely left to and led by the government through a continuation or expansion of current ANC policies and practices will simply leave those investors and the nation at large in a state of disillusionment and despair.
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