Ramaphosa risks political isolation without ‘consensus’ of party heavyweights

With the watershed ANC national conference only months away, President Cyril Ramaphosa might find himself
politically isolated – with labour and party heavyweights unlikely to endorse his grand idea of creating a developmental state and an agile private sector, experts warn.

Urging labour and business to work together in building “a capable developmental state and a dynamic, agile private sector”, Ramaphosa in his weekly letter Monday made reference to the ANC policy document, Ready to Govern, adopted 30 years ago.

“The Ready to Govern document envisaged a democratic state with ultimate responsibility for coordinating, planning and guiding the development of the economy towards a sustainable growth pattern in cooperation with the trade union movement, business and other organs of society,” Ramaphosa wrote.

“The document further envisages a dynamic private sector, employing the skills and acumen of all South Africans and of business activities, which contribute significantly to job creation,” maintained Ramaphosa.

Independent political analyst Dr Ralph Mathekga described Ramaphosa as “playing with ideas when we need capacity in the public service rebuilt”.

“He is yet to get consensus on his big ideas, while the situation deteriorates.”

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University of Johannesburg economics professor Peter Baur said Ramaphosa led a Cabinet marked by tensions and appeared “to have no real support”.

“My only concern is how does government afford this initiative – it’s a make-or-break situation,” said Baur.

Congress of South African Trade Unions spokesperson Sizwe Pamla said a developmental state could not be built “on a neoliberal foundation”.

“The administration cannot talk about building a developmental state when it still argues that the private sector knows best.”

Unions, said Pamla, were grumbling because some of the statements from the administration cannot be found in the ANC literature.

“There is nothing in the ANC literature that says government does create jobs.

“A developmental state cannot be declared, but distinguishes itself on what it does.

“We are still troubled by the 46% real unemployment,” he added.

Economist Mike Schussler said: “Unemployment is the biggest problem SA has by far. It causes poverty and inequality – the highest unemployment rate in the world for countries that measured in the last two years.

“I am concerned that people somehow believe that government can fix all, when the private sector is driving growth and employment,” he said.

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“The private sector is the only sector that can create the jobs we need.”

Less sceptical was University of Pretoria politics lecturer Roland Henwood.

“It is also important to understand that the ANC-led government does not control the private sector.

“It cannot force or instruct the private sector, except through gaining the confidence and willingness to cooperate.

“There are many examples where this relationship in SA failed, due to a complete lack of understanding in government,” said Henwood.

Ramaphosa’s biggest challenge was the “incompetence of the state, leading to the demands of a developmental state not being met by our current civil service and political leaders”.

– brians@citizen.co.za