The South African Communist Party (SACP) does not believe that South Africa has two economies, Blade Ndzimande said at the Black Management Forum (BMF) national conference in Johannesburg on Thursday.
”It is a single economy which, like all capitalist economies, has dualistic poles, the rich and the poor,” he said.
”The division between the ‘first’ and ‘second’ economies might as well be a false one.”
Ndzimande pointed out how the taxi industry was taken to be part of the ”second” economy, yet it carried more than 60% of all commuters in the country to the ”first” economy.
”So where does it belong, the ‘first’ or ‘second’ economy?”
He cited burial societies and stokvels as other multibillion-rand industries.
”These are monies that ordinarily belong to the ‘second’ economy, but are held by the ‘first’ economy banks and companies.”
Using workers’ retirement funds as another example, Ndzimande said these funds ”daily oil South Africa’s capitalist economy”.
So the question might as well be asked which was the ”first” or ”second” economy in this respect, he said.
Ndzimande said that the role of black executives in creating a new growth path was to drive economic development that would create sustainable jobs and sustainable livelihoods.
”This means transforming the current accumulation regime, from a job-shedding one, to a job-creating one,” he told delegates.
”Growth to benefit the majority of our people can only be attained if it specifically addresses the developmental needs of this majority [investment in infrastructure for development, especially in poor areas, building an efficient public transport system, skills development, etc].”
For this to happen, the economy needed to be transformed in its entirety and ”not just focus on parts of it”.
”We expect black executives to understand their role and contribution, not just in respect to the ‘second’ economy, but to our economy as a whole and to overcome its duality.”
He said a second priority was to bring about ”truly broad-based black economic empowerment”.
”As the SACP we have consistently pointed out that the current model and trajectory of BEE is not broad-based, but very narrow, with very few beneficiaries.”
He said the big BEE deals had a ”counter-productive effect in terms of growing and developing our economy.
”It transforms equity into debt, instead of investing this into the productive sectors of our economy.”
He said the challenge for black executives was to conceptualise a BEE model that invested and grew the economy ”rather than locking some of its resources into long-term debt”.
”The current trajectory of BEE does not actually transform the colonial economic relations that we have inherited. In many ways it reinforces apartheid colonial patterns.”
He said the emerging black sections of the black capitalist class was a highly dependent stratum, financed at the behest of white financial capital.
”The difference today might as well be that the internal coloniser is no longer PW Botha, but the white controlled bank.” Ndzimande said.
”For us broad-based BEE should include development of communities, empowering their own institutions (stokvels, burial societies), as well as job creation through higher levels of investment in infrastructure.
”It is within this context that ownership should be taking place, rather than subjecting all else to narrow practices of ownership.”
He said the voice of black executives and the black middle class did not push enough to address poverty and create sustainable livelihoods.
”To say corporate social responsibility addresses these matters is frankly insulting the overwhelming majority of the workers and the poor in our country.”
Ndzimande said the black middle class and executives also needed to develop an ethic around service and development.
Poverty and unemployment constituted a real threat to democracy, he said.
”We therefore need to foster different kinds of values and service to the overwhelming majority of our people,” he said. – Sapa