Constructive critique indeed, which provides contributions to shaping and 
restructuring the NDP as is in line with the resolution by the ANC, that the 
adoption of the NDP seeks to unite all South Africans behind common action, in 
transforming the current socioeconomic situation, through fabrication of common 
ground that seeks to guide a projected vision, which in essence can possibly be 
'vision 2030.'

In concurrence substantiation, I quote a stipulation reiterated by this very 
statement that, " The ANC will continue to engage with the plan, conscious of 
the need to unite South Africans in action around a common vision and programme 
of change [our emphasis]" (p. 22).

Lastly, I find comfort in the approach proposed that, we ought to engage the 
NDP from a perspective fully informed by the adopted policy positions we 
already bare. As pivoting around the deliberation of the 'tax subsidy to 
employers' which harbours a view that can be made to parallel that of the 
'youth wage subsidy,'
but in essence is founded upon a similar action. I coincide with refraining to 
succumb to distortions fueled through twisting terminology in seeking 
presumptive misintepretation, hence concurrence.

A good eye-opening critique and contribution indeed.




Mlungisi P Xulu

Principal Intelligence Pty (LTD)
Executive Board Member

Blog        : http://mluxulu.wordpress.com
Twitter    : #mluxulu12
Facebook: Mlungisi Donda Xulu

e-mail     : [email protected]
Cell no. 1: 071 518 6353 - Whatsapp
Cell no. 2: 072 442 7856
Cell no. 3: 071 545 5393

"All glory comes from daring to begin" - Alexander Graham Bell

-----Original Message-----
From: Khaya Xaba <[email protected]>
Sender: [email protected]
Date: Tue, 30 Apr 2013 12:19:12 
To: <[email protected]>
Reply-To: [email protected]
Subject: [YCLSA Discussion] Special Bottomline: A contribution to the critique
 of the National Development Plan


Issue 10, Vol 10: 30 April 2013

In this issue:

Special Bottomline: YCLSA 3rd National Committee 7th Plenary Session
 

Special Bottomline: YCLSA 3rd National Committee 7th Plenary Session

19-20 April 2013

A contribution to the critique of the National Development Plan

Introduction

The African National Congress in its 53rd National Conference held in Mangaung 
adopted the National Development Plan (NDP). The economic resolution adopting 
the NDP states as follows.

"The ANC must take the lead in mobilising and uniting all South Africans around 
a common vision of economic transformation that puts South Africa first. The 
National Development Plan is a living and dynamic [our emphasis] document and 
articulates a vision which is broadly in line with our objective to create a 
national democratic society, and should be used as a common basis for this 
mobilisation. The ANC will continue to engage with the plan, conscious of the 
need to unite South Africans in action around a common vision and programme of 
change [our emphasis]" (p. 22).

This resolution clearly captures the tasks of the ANC arising out of Mangaung 
with regards to the NDP. It captures the spirit with and within which the ANC 
in its Mangaung declaration embraces the NDP. In other words, the ANC Mangaung 
declaration embracing the NDP will be misunderstood, engendering misconceptions 
and mistaken reactions, if it were to be viewed in isolation from the "main 
resolution" adopting the NDP. We endorse here reference to the "main 
resolution" on the NDP. This is not only because of the need to locate the 
declaration properly but also because there is another resolution which 
similarly needs to be located properly.

That is the (ANC Mangaung) resolution 2.1.3.1 (p.12) which is dealing with 
"social cohesion and nation building" (pp. 11-12). In so doing the resolution 
makes reference to the NDP. It states that the ANC needs to "work towards the 
implementation of the recommendations of the 2030 National Development Plan as 
a long term vision which should serve as a basis for partnerships across 
society..." (p. 12). How this work must and will be undertaken is, clearly 
captured by "the main resolution" adopting, as quoted above, the NDP, as a 
"living and dynamic" document, which the ANC itself, let alone other 
organisations and social forces, "will continue to engage with".

Therefore the NDP was adopted in Mangaung, not absolutely for implementation as 
one extreme seeks to suggest, but for engagement as a basis for "mobilising and 
uniting all South Africans around a common vision of economic transformation 
that puts South Africa first", being "conscious of the need to unite South 
Africans in action around a common vision and programme of change".

In fact followed by a series of other resolutions on promoting 
industrialisation and thus manufacturing and employment creation, "the main 
resolution" on the NDP goes further, as thus:

"Within the NDP vision, critical instruments and policy initiatives will 
continue to drive government's medium-term policy agenda. These include:

The national infrastructure plan, which is an opportunity to change the 
structure of the economy, apartheid spatial distortions, support beneficiation 
and industrialisation and contribute to facilitating intra-African trade. As a 
flagship programme of the state, all departments and spheres of government must 
join in taking forward this programme.
The New Growth Path is the economic strategy designed to shift the trajectory 
of economic development, including through identified drivers of job creation.
The industrial policy action plan, which guides the re-industrialisation of the 
South African economy."
The above shows that the ANC's work to engage with the NDP has started, and, as 
we will show, some policy initiatives that are either contradicted or forgotten 
in the NDP are clearly reaffirmed as the policies that "will continue to drive 
government's medium-term policy agenda". This gives rise to two tasks. Firstly, 
where the NDP contradicts these policies it must be realigned to eliminate the 
contradictory relationship. Secondly, where these policies are forgotten (i.e. 
not mentioned) in the NDP they are thus accordingly incorporated in it. This 
for us does not necessarily mean that some of these policies are no longer 
sites of struggle to the extent we believe that particular aspects in their 
content must change. The struggle must indeed continue.

Flowing from the above, there are at least two important principles for us 
concerning the NDP.

First is the need to reaffirm and assert the principle of central planning, 
coupled with the principle of long-term planning, but which must be buttressed 
by participatory democracy. This brings into question the composition and modus 
operandi of the National Planning Commission (NPC) which must be re-looked at 
anew, re-engineered and re-designed to reflect the class majority of our people 
and their conditions of life.

This must ensure that both the planning processes and the planning outcomes are 
rooted and grounded where an overwhelming majority of our people are, in the 
townships, in the urban semi-peripheries and peripheries, in squatter 
settlements, in rural areas and villages, deep down in the body of the earth in 
the mines, in shops, factories and on the roads without necessarily excluding 
others elsewhere. The virtual consultation that the NPC engaged in for example, 
notwithstanding that it was extensive, excluded an overwhelming majority of our 
people. Planning processes must be preceded by and include thoroughgoing 
capacity building so that the people are included meaningfully instead of being 
included in a terrain where they are excluded because of capacity constraints.

Second is therefore the principle that was defined by the SACP in its 
assessment of the first decade of democracy in our country, that no significant 
centre of power in our society must be able to exercise that power without the 
presence, influence and impact of the working class and its input including in 
the state as a terrain of struggle, contrary to the misconception of the 
infantile disorder.

In view of the conclusion that the Party reached in its assessment, i.e. our 
first decade of democracy benefited the capitalist class the most in economic 
terms despite the many advances that the working class achieved and therefore 
that this, going forward, must as stated above challenged, we must as part of 
the working class contribute in planning processes, influence and impact on the 
plans developed as well as in the subsequent changes that are required of those 
plans.

It is exactly these two principles that we must advance.

In fact, the NDP itself states that is neither complete nor perfect but that it 
represents the basis for engagement for the advance of our country in the next 
years towards 2030. This contains some sense. The plan however contradicts 
itself. It suggests that the achievement of the vision that it sets out is 
dependent on the implementation of all the "actions" that it proposes. This 
does not make sense of a plan that recognises itself as incomplete and 
imperfect, a plan that calls for public engagement in order that it can be 
become complete and perfect.

As you read the NDP you will realise that the "actions" proposed are preceded 
by bold vision statements some of which are fairly progressive and well 
informed. But get deeper in the proposed "actions" then you will appreciate 
where some of the major problems with the NDP partly lie.

The NDP adopts the capability approach to development. The Indian philosopher 
and economist Amartya Sen was instrumental in developing this approach which 
came to be incorporated in the United Nations Development Programme (UNDP) and 
inform its Human Development Index. But embedded in liberalism or neoliberalism 
or both and not coupled with without a thoroughgoing process of the 
transformation of the social relations of production this approach becomes not 
only reformist in both nature and character and its potential weakened and 
curtailed but will as such not be an answer to the South African question of 
development.

In the NDP the capability approach is subordinated or located in the growth 
school of thought, which is where one of the structural faults lies. This 
neoliberal growth school of thought argues that employment, resources with 
which to expand access to education and health care, to reduce inequality and 
poverty, and to achieve other development goals, trickledown from growth.

Therefore it follows that chasing a set growth target (e.g. 5.2% annual growth 
rate in average over a set period of time, say by 2030) is the overriding 
economic policy objective to which all else are subordinated or will result. As 
such, the action plan that is required is to identify constraints to growth and 
address them. About this ideology, which found its way in the 2013 state of the 
nation address and as usual in the budget speech, the SACP had the following to 
say.

"Chasing growth rates as a panacea to our problems has and will never be an 
appropriate response to our challenges. Similarly the myth that there are 
legislative and other bottlenecks to be unlocked in favour of business must be 
carefully examined. It seems to us that all business wants are concessions 
without any commitments on its part to realise our goals of tackling 
unemployment, poverty and inequality. The SACP will strongly resist all 
attempts by business to try and blackmail us into succumbing to their narrow 
concerns about profits without telling us about their own contributions." (15 
February 2013)

The NDP recognises the New Growth Path (NGP) as one of the policy frameworks 
that will continue to inform government's economic policy approach. However, 
the NDP reconstructs and co-opts the NGP in the neoliberal growth school of 
thought, which is actually an antithesis of the basic philosophy of and the 
experiences that led to the development of the concept of NGP.

The NGP was developed following the experiences of what is now commonly known 
as a jobless growth. Although it has some contradictions, by and large the NGP 
seeks to alter the quality and character of growth. Basically for the NGP 
either growth should result from employment creation and decent work or 
employment creation and decent work should be the drivers of growth.

It is important to recognise that given her history as a victim of colonialism 
and apartheid, South Africa and her economy require transformation and 
development, not just growth. Neither will she succeed in achieving prosperity 
on the basis of transformation and development that are subordinated to growth. 
In other words, growth as measured in Gross Domestic Product (GDP) in the South 
African context will not result in the strategic goals that the national 
democratic revolution seeks to achieve.

It is also important to recall from South Africa's experience of a jobless 
growth that the produce of the GDP are not necessarily shared and distributed 
equitably. This same experience has also shown that growth can occur while the 
share of the working class in the national income falls and profits rise for 
the capitalist class to heap up and to accumulate capital.

For example, in other words when it is said that South Africa became one of the 
world's leading middle income countries in inequalities it is partly because 
the share of the working class in the national income declined while that of 
the capitalist class increased. In essence growth in the context was and 
remained a capitalist growth. The reason why the growth school of thought has 
the support of the capitalists is because it is essentially capitalist growth 
in character that is talked about.

Indeed we must similarly pay attention to the rest of the NDP, among others 
Chapter 3, which deals with the economy and employment. There are actions 
advocated in this chapter that have serious implications for the youth. These 
include "a tax subsidy to employers" to "reduce" the "cost" of hiring new 
labour market entrants who are young; a subsidy to the "placement sector" to 
identify, prepare and place matric graduates in jobs; simplifying procedures to 
dismiss workers. These actions could prove to be diametrically opposed to our 
adopted policy positions. It is important therefore when engaging with the NDP, 
as with any other policy, to do so from the standpoint of our own policy 
positions.

The tax subsidy to employers could mean a youth wage subsidy. This has been 
discarded as a policy approach and has no expression in the latest policy 
approach on youth unemployment which we recently signed, i.e. the youth 
employment accord. The "placement sector" could mean labour brokers. Presently 
the so-called placement sector is nothing other than labour brokers, in the 
main. However, the youth employment accord again takes a step away from the 
placement sector being defined by labour brokers. By the placement sector the 
accord asserts the labour department's centres. That is how we must proceed.

>From the above examples of innovative engagement with the NDP as a living and 
>dynamic document can be seen, although still requiring the struggle to be 
>intensified against problematic policies such as the youth wage subsidy and 
>the practice of labour brokers. After all, we are opposed to the youth wage 
>subsidy. We do not want labour brokers. We want it to be easy to find work, 
>not to lose it. Simplifying procedures to dismiss workers could mean making it 
>easy to dismiss workers, which presupposes that the NDP could have bought into 
>the neoliberal argument that our labour laws are rigid and responsible for 
>unemployment or lack of employment creation.

Underlining, however, that there are areas where the NDP is problematic and 
backing this up with some examples does not mean, as we have highlighted, that 
there are, relatively speaking, no progressive areas in the NDP. On the 
contrary, there are progressive lines in the NDP, for example such as in health 
and education although in some instances not completely reflecting what we 
would like as our own vision. These need to be defended, advanced and developed 
further towards the achievement of the final goals that the national democratic 
revolution and by way of struggle, as part of our work to prepare for a 
socialist revolution.

The main strategic question is, therefore how must we handle the reality of a 
plan which on the one hand has progressive visions and actions which we support 
but on other hand comprises also of a mixture of counter-progressive, 
neoliberal content that stands in contrast to our principles and adopted policy 
positions.

Our detractors who are suffering from an infantile disorder and who because of 
this some at times confuse the ANC for the state, will stand in the rooftop, 
grandstand and boo us for not throwing the baby with the bath water. Some of 
them are stuck in the past as if the conditions in the alliance have not 
changed from those of the 1996 class project which marginalised the alliance 
and offered no room for engagement. Similarly, we must not be distracted by 
utopian socialist approaches. We must remain scientifically rooted.

Equally we must not give into those who would like the NDP to be embraced as if 
it is complete and perfect. Those who do so represent another extreme of the 
all or nothing tendency but in the polar opposite with the totalitarian 
rejectionists constituting the other polarity.

In maintaining a scientific outlook on development, we must recognise that 
there are other class forces in our society that are strongly opposed to the 
actions that we believe are progressive and are in favour of the actions that 
go against our principles and adopted policy positions. Ultimately, the real 
character of the battle will reveal itself in its true nature as the struggle 
of class against class, i.e. class struggle. It would be upon achieving 
advances against and victories over hostile class forces that the balance of 
forces will tilt in favour of what we want not only in the NDP and other public 
policies, but also in the overall direction of our society.

At the same time, we must be on the outlook of some who are posturing 
themselves as if they are part of our ranks in the left whereas in fact they 
are not. For example, the NDP states that small and medium enterprises have an 
important to play role in employment creation. This is the correct perspective. 
What constitutes a weakness with the NDP, which the ANC Mangaung resolutions as 
we have quoted seek to correct, is its lack of focus and emphasis on 
industrialisation.

The NDP's correct perspective on small and medium enterprises has been 
attacked. In whose class interests is the attack? Definitely, the attack is in 
the interests of "big business", conglomerates and imperialist capital in the 
form of multinational corporations. The attack does not even seek to assert 
public property rights. If the attack against the correct perspective on 
developing small and medium enterprises succeeds, then we might equally have to 
forget about co-operatives development and the participation of the workers and 
the poor in ownership and control.

The criticism against small and medium enterprises is ill-informed and needs to 
be engaged, at least from the standpoint of Karl Marx's Capital, and at least 
Volume I chapter 15 and 25 on an introductory basis. In reality, the 
large-scale conglomerates that are promoted by the attack against small and 
medium enterprises reach a point where, and this is presently the case in South 
Africa, they are saturated and contribute to the production of what Karl Marx 
called the industrial reserve army of labour through restructuring, increased 
employment of production technology and variations in the technical and organic 
compositions of capital.


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