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Radical Economic Transformation

A CU e-mail contribution from Cde Siphelo Ngcwangu in a debate about President 
Jacob Zuma's written reply to a question on Radical Economic Transformation


Comrades,

To me, Radical Economic Transformation as a principle has been there in the ANC 
since we adopted the Freedom Charter in 1955. It's essentially not 'new', and 
was further nuanced in many other ANC resolutions including the Kabwe 
conference papers we discussed earlier this year.

Polokwane 2007 emphasised a need for a break from the conservative GEAR 
macro-economic framework the ANC had pursued throughout the late 90s as well 
rejecting the assumptions of the 'State and Social Transformation' document of 
1996.

The response from Cdes Nzimande and Cronin in their paper 'We need 
transformation, not a balancing act' showed a strong critique of the SST paper 
as well as the growing notion of the ANC building a 'neutral' state along the 
lines of the Giddens-inspired 'Third Way'.

It's within this brief background and vicissitudes that the ANC has moved 
towards Radical Economic Transformation as a guiding policy.

There is a broad acceptance across all persuasions of the ANC broad church that 
a more radical posture in economic policy is needed, and would in content 
involve:

*        changing the structure and demography of economic ownership patterns
*        re-engaging with the country's global economic relations, and a clear 
challenge to western imperialism
*        clearer agenda to include more black people in productive economic 
activity
*        changing the direction of the economy from being an enclave economy 
within a dependency based 'Minerals Energy Complex'
*        nationalisation of key strategic assets, and the creation of a 
stronger public role in the South African economy, e.g. a State Bank, a state 
insurance company etc.. (also see Malikane's piece on this matter)
*        putting back into the hands of the people the ownership of mines and 
related industries with a stronger role for local communities.

I have said before on CU that the attempts by the likes of Cde Joel 
Netshithenze (see Poverty of Radicalism paper) to dismiss the 'Going to the 
Root' document of the SACP are signs that the social democratic centrists in 
the ANC will stop at nothing to oppose radical economic proposals.

My principle view is that some cadres in the ANC conceptualise inequality, and 
efforts of dealing with it, to a 'distributive' lens rather, and they fail to 
appreciate that unequal, racialised ownership patterns are actually a source of 
the inequalities we still have.

Distributive measures and the 'social wage' only minimize the problem, but do 
not deal with its core source.

There are many other issues that shape the RET, but in the main they are 
anchored around these that I have raised. What is interesting is that those who 
have positioned themselves as opponents of the RET have not shown what exactly 
it is that they opposed, besides saying that it's a 'Gupta' or 'Bell Pottinger' 
concept... as if the ANC hasn't been thinking about these issues.

What we need is to avoid losing focus on the matters, and deal with content, 
not personalities.


Regards,
Siphelo











































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