/ 20 December 2007

Economy: ‘Shift’s already happening’

The shift to the left is not a dramatic U-turn, it is a gradual process which is already under way, the South African Communist Party (SACP) said on Wednesday.

Deputy secretary general of the party Jeremy Cronin told journalists that the African National Congress national conference has seen a ‘deepening and consolidation” of the way in which delegates understand the need for changes in the South African economic landscape.

‘There would be no dramatic U-turn — these things should inform broader public debate. It is not about inflation targeting for the sake of it; it is about how these things slot in to the bigger picture.”

The SACP is hoping that the change in ANC leadership with the election of Jacob Zuma as ANC president will provide an opportunity for changing policy perspectives to be accommodated.

‘We will be failing the hopes and aspirations of the thousands of ANC branch delegates if we do not use the new reality as a platform to address with an even greater sense of urgency and determination these realities,” SACP general secretary Blade Nzimande said.

From the economic commission of the conference, which met on Wednesday, it emerged that there is still a strong resistance from key players in government decision-making about economics.

The Mail & Guardian was told that Minister of Trade and Industry Mandisi Mphalwa attended the commission and when the suggestion about the re-nationalisation of Mittal Steel was raised, he made it clear that it will not be a good idea.

A delegate to the commission said the minister and other senior leaders in the economics sphere do not explain why they do not agree with delegates’ suggestions for the re-nationalisation as well as a national state-owned mining company.

‘The delegates felt it is needed because it would enable them to redistribute resources. But Mphalwa did not explain their reasons for opposing it properly. They might have access to information and obviously know more about international trends, but they don’t explain it to us.”

It was decided that the mining rights should remain with the state, as is currently the case.

Other issues that came up is the growth of shopping complexes in townships, which some delegates feel is taking business away from the local shops that have been doing business in the area for many years.

‘People are seeing the mushrooming of shopping complexes coming up in townships and that is a negative thing because it is pushing out the small businesses and general dealers. But now there are Chinese and Pakistani people, coming in and taking over the small businesses and making a success of them.

‘Where does the problem lie? Obviously there is a lack of skills and that might rather be the problem, not the fact that the big shops are coming up. Also, people these days don’t want general dealers, they want specialised shops, so that also takes them away from the general dealers,” the delegate said.

Delegates at the commission asked for the government to look at possible ways to legislate the issue of access to land, which they feel is being hampered by the rule of traditional leaders in rural areas.

‘People are saying because the chiefs own the land, they cannot get access to it to do agricultural activities.”

The suggestion was also made that the youth in rural areas should be included in agricultural activities to build skills.