Business Day
*Patel plan divides SACP, Cosatu* *Sibongakonke Shoba, Business Day, Johannesburg, 29 November 2010*THE South African Communist Party (SACP) gave Economic Development Minister Ebrahim Patel's New Growth Path the thumbs-up yesterday, a few days after its ally, the Congress of South African Unions (Cosatu) vowed to oppose some of the proposals.
The differing views of the leftist allies of the African National Congress (ANC) are an indication of the tense relations in the tripartite alliance over the control of the ruling party and the state.
The SACP has more influence in the government than Cosatu, as no fewer than five of its top leaders, including general secretary Blade Nzimande, serve in President Jacob Zuma 's executive, and chairman Gwede Mantashe occupies the influential post of ANC secretary-general.
Mr Nzimande praised the new strategy yesterday after a meeting of the party's central committee in Johannesburg. "It marks a very significant shift in thinking about our economy in government. The need to change the character of our economy. Our economy is based on exporting raw materials ... there is no focus on building local production." he said.
Mr Nzimande said the key achievement of Mr Patel's strategy is its focus on jobs rather than on an economic growth target.
Last week Cosatu argued the strategy will increase inequality if wages are moderated. It rejected some of the proposals, including the plan to moderate and cap salary increases.
Some Cosatu affiliates have labelled the new strategy a "recycled" Growth, Employment and Redistribution, a strategy the SACP and Cosatu have dismissed in the past.
The SACP also welcomed the aligning of macroeconomic policy with industrial policy and applauded the proposal to create a state bank.
Asked about the SACP's stance on the proposal to moderate wage hikes, Mr Nzimande said his party had no position on the matter yet, as it was still studying the document.
However, Mr Nzimande's deputy, Jeremy Cronin, who is also deputy minister of transport, said some proposals are "problematic" as workers will have to bear the costs.
While opposition parties have questioned the feasibility of some of the proposals in light of the state's capacity, the SACP leadership expressed confidence in the government's ability. "Where we don't have capacity, the state must build that capacity," Mr Nzimande said.
Clashes between Cosatu and the SACP began when the party deployed its office bearers to the Cabinet and Parliament. Cosatu complained it undermined the SACP's effectiveness, leaving few members available for party work.
Last week Cosatu called on Mr Nzimande to resign from his Cabinet post to focus on his SACP position. Sunday newspapers reported that the federation had even offered to pay Mr Nzimande his ministerial salary.
Yesterday the SACP reacted angrily to the offer. "To suggest any of us have gone to government to improve our salaries is an insult," Mr Cronin said.
He said an effective team is running the party's office. "Cosatu says the deployment of SACP leaders to government has affected the performance of the SACP. We contest that. This year the party has grown," he said.
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