I am sometimes asked why I write about politics, when this is meant to be a business column.
The answer is quite simple really, we have one of the most politicised economies in the world, and the behaviour and comments from politicians, particularly those of the ruling party, impact heavily on the economy, and business in general.
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It was to be expected, that as the ruling party set out to achieve the goals of its political manifesto, appropriate policies and regulations would need to be implemented.
However, the unintended consequences of many of these actions has been dire for the economy.
To start, the current divisions in the party about which broad economic policy to follow, either the more ‘centrist’ market friendly one or the Radical Economic Transformation (RET) path, has cast a shadow over economic activity, creating major policy uncertainty.
In addition, the entire “step aside” saga engulfing the party in its attempts to start restoring some dignity and integrity in itself has also unsettled business.
As commentator Lumkile Mondi said on Radio 702 recently, “The ructions in the ANC are affecting the South African economy.”
Next, the policy of cadre deployment, which in principle has merit, has been a woeful failure due to it being hijacked by the scourge of patronage, nepotism and corruption.
The intention of placing key party members in positions to facilitate policy implementation has been overtaken by the placement of ‘pliant’ individuals who can unlock the doors to the resources, or under or unqualified ones who hamper service delivery or destroy value, for example in state owned enterprises.
At a local level, the impact of cadre deployment at the District Municipality has in no small part contributed to the collapse of service delivery, and the financial meltdown.
It is incomprehensible that key posts are rather left unfilled if the preferred ‘cadre’ cannot be parachuted into the post by manipulation of the system, service delivery be damned.
Vijay Naidoo writes in his personal capacity as CEO of the Port Shepstone Business Forum.
The views expressed are the author’s own and do not necessarily reflect those of this publication.
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