/ 21 December 2007

Economy: ‘The 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 SACP has said.

Deputy general secretary of the party Jeremy Cronin said the ANC national conference saw 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 into 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 these realities with an even greater sense of urgency and determination,” SACP general secretary Blade Nzimande said.

There is, however, still strong resistance from key players in government decision-making about economics.

The Mail & Guardian has been told that Minister of Trade and Industry Mandisi Mphalwa, who attended the commission on economics, made it clear that it will not be a good idea to renationalise Mittal Steel.

A delegate to the commission said the minister did not explain his disagreement with delegates’ suggestions for the renationalisation as well as for 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.

The commission decided that mining rights should remain with the state, as is currently the case.

The growth of shopping complexes in townships, which some delegates felt was taking business away from the local shops that have been doing business in the area for many years, also came under the spotlight.

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,” another delegate said.