SACP, Cosatu reject Mboweni’s plan for economy

Ideological conflicts within the tripartite alliance may be a stumbling block to the implementation of Minister of Finance Tito Mboweni’s economic recovery plan.

Both the ANC’s alliance partners have rejected the National Treasury’s proposed strategy to rescue the economy.

Trade union federation Cosatu deputy general secretary Solly Phetoe said: “The policy is exploiting the economic crisis by pushing a right-wing agenda (privatisation of state-owned enterprises ) that has been defeated at several ANC conferences.”

“Inflexible labour markets” in the strategy would be an impediment to the growth of small businesses, while the regulatory burdens and red tape were an attack on the collective bargaining council system.

SA Communist Party (SACP) spokesperson Alex Mashilo said: “There are neoliberal elements in the economic recovery strategy and we have consistently campaigned against neoliberal measures. It’s this that has plunged the world into economic crisis and our country into the undesirable economic situation it is in today.”

He added that the strategy was the opposite of the ANC manifesto the SACP campaigned for prior to the elections. Thus, if the party accepted the strategy, it would be betraying voters.

The alliance members are expected to meet next week to iron out their differences.

The partners also asked why Cabinet was not consulted before the dissemination of the strategy.

SACP general secretary Solly Mapaila said that normally, policies were discussed beforehand within the alliance. However, Mboweni’s plan had not been examined.

There were also allegations that Mboweni had not consulted the president or the ANC’s national executive committee before the Treasury disseminated the economic recovery strategy.

This would not be the first time Mboweni has swum upstream as, earlier this year, he took a stand against the proposed removal of the Gauteng e-toll system, maintaining a hard line on the user pays principle.

Political analyst Lungani Mthethwa said the proposed private-public ownership of state enterprises in the policy would be opposite to the ANC’s promises at the 2017 national conference.

“The political instability that may come with the conflict in the alliance might worsen the economy, as it’s evident the alliance partners did not consult on an economic strategy that would benefit all parties,” he said.

He was of the view that part-privatisation of government enterprises and opening the market would indirectly favour the rich at the expense of the poor majority.

The strategy maintained that opening the market to the private and independent sector would boost competitiveness.

Also planned was to decentralise the distribution of resources such as energy, transport, telecommunications and essential services and modernise network industries, which would assist the country to participate in the global economy.

It was estimated the strategy could raise growth by two to three percentage points.

– sinesiphos@citizen.co.za

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