New Age2.png

 

 

Economic growth to dominate ANC agenda

 

 

The New Age, Johannesburg, 13 March 2017

 

The ANC is mulling budget cuts on ineffective government programmes to fund
its policy proposal on radical economic transformation. 

 

This emerged at the ANC's policy discussion document on Employment Creation,
Economic Growth and Structural Change: Strengthening the Programme of
Radical Economic Transformation, launched at the party's Luthuli House
headquarters in Johannesburg yesterday. 

 

The ANC said despite mounting cynicism from opposition benches, it would be
surge ahead in envisioning a new policy for radical economic transformation,
which included exploring avenues to source funding for the party's programme
for inclusive economic growth. 

 

"Furthermore, proposals for new transformation programmes must be cognisant
of the reality that resources are always finite and are particularly scarce
when the rate of economic growth is slow. 

 

"In order to fund new programmes or expand existing programmes, it will be
necessary to recommend the de-prioritisation or discontinuation of other
programmes, which are not having the desired policy impact." 

 

While the ANC's policy discussion document did not specify which government
programmes would fall under the axe, it said that the party was adamant that
leaks in the public purse on matters of corruption and the misappropriation
of funds needed to nipped in the bud. 

 

"To advance this vision, the democratic developmental state will need to be
decisive in allocating sufficient resources to effective transformation
programmes within a sustainable fiscal framework. The State will also be
required to monitor implementation of such programmes to improve and reform
them where necessary. 

 

"South Africa has a significant leakage of State resources, which reduces
funding available for economic transformation. More must be done to stamp
out corruption and wastage." 

 

On the land question, the ANC said in its policy discussion document that
while land was central to the creation of economic opportunity and improving
the material conditions for a great many black South Africans, the party
could not continue on a middle-of-the-road path on land redistribution. 

 

The party said that land redistribution should be fast-tracked by "passing
updated expropriation legislation by Parliament". 

 

"The Government should take heed of the Constitutional Court's finding that
agreement on the quantum of fair compensation is not a pre-condition for
land redistribution to take place and should never pay a premium in
purchasing land for the purpose of land reform. 

 

"In general, the success of land redistribution will be improved if there is
greater oversight over land, farming equipment and technical skills transfer
to the beneficiaries of land reform." 

 

The ANC's policy discussion document also reflected on the delivery of free
public goods and services. It said that in light of increasing calls for
fee-free higher education in the country, service delivery to all and sundry
irrespective of affordability would sound a death-knell on the Government's
budget. 

 

"Any dismantling of such cross-subsidisation systems will lead to increased
inequality, as those who can afford to pay will not be required to pay for
services. 

 

"Overall, it would also lead to fewer resources being available for the
development of public infrastructure and services, which in turn will lead
to a rising scarcity of such infrastructure and services, particularly for
the poor. 

 

"Ultimately, the approaches of populist and right wing forces will, from
different starting points, lead to the same result - the effective
diminution and privatisation of public infrastructure and services. 

 

"The approaches of populist and right wing forces will lead to a severe
reduction of the potential of a developmental state, as they would severely
limit mobilisation and redistribution of society's resources from the
relatively well-off to the relatively poor," the document says.

 

 

From: http://tnaepaper.co.za/DRIVE/main%20edition/13032017/epaperpdf/27.pdf

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



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