Don’t vote for EFF chaos! PHUMLANI MBEKI WROTE: I CONFESS that in 2008 when Julius Malema became the ANC Youth League president, I renounced my stance as an active youth league member, became passive, then decided to join the ANC itself. My decision was caused by the manner in which Malema ascended to the league’s presidency and my firm view and/or conviction that he was a product of an illegitimate process. I take nothing away from him; he does have some leadership qualities but my concern has always been that he is a danger to himself and has been busy digging his own grave. He is a proponent of expropriation of land without compensation and nationalisation policies and he lost that debate. My hair-raising concern as he continues to advocate these policies is whether he is well-versed about them and aware of the economic ramifications if we were to effect them. Perhaps we should reflect on the status of our economy against his proposed policies and bring a few aspects to his attention. Professor V Wandrag once said “Globalisation is a system of interaction amongst the countries of the world in order to develop the global economy through trade and investment, foreign direct investment and information dissemination”. I couldn’t agree with this sentiment more. In South Africa, we are also proglobalisation, commonly known as internationalisation, meaning we are able to adapt our economic interest menus to suit different international tastes. We do this by exporting commodities like wine, beef, bananas, gold, platinum, manganese and seafood. We are involved in trade agreements and are signatories to a number of treaties, WTO, WEF and Brics. These help us draw direct foreign investment in the form of international manufacturing companies opening plants in South Africa. They create jobs in the process, boost investor confidence and help support our currency. Globalisation links us with the international community in that our foreign reserves are above par and there is reduction in deficit and the consumer price index (CPIX), which is the most highly rated economic indicator, and the gross domestic product (GDP) shows we are growing our economy by (5.5%) on average. This should tell Malema and his cronies that we are doing something right as a country and are in good hands. Our fiscal policies are respected around all the world, together with our research methodologies which are of international standard. The most imported products are fuel (24%), motor vehicles (10%), electronics (3%), pharmaceuticals and scientific instruments (2%) because our production of these commodities is minimal. The global economy is sometimes referred to as globality, characterised as a totally interconnected marketplace, unhampered by time zones or national boundaries. This is realised through good trade relations, viable and efficient fiscal policies, minimisation of risks and the creation of more certainty, and clear tax regulations. We are deemed to be a developing country; institutions like the World Bank, International Monetary Fund and International Finance Corporation have faith in how we conduct our business as things are now. The day South Africa announces that banks and mines are going to be nationalised and land expropriated without compensation, our economy will collapse. International companies will pull out; investors will sue for billions, the rand will be devalued and economic sanctions will be imposed by the international community. South Africans must reject such policies as they have the potential to take us back, beyond where we have come from. In fact, if nationalisation becomes a government policy tomorrow, shareholders of banks and mining companies will say thanks very much because they will be bought out and freed from the risks associated with running those companies. The ANC government understands perfectly how globalisation propels positives and gets us closer to that which we seek to achieve as a modern society – the total liberation of all South Africans, advancing towards practical economic freedom, eradication of poverty, decent employment opportunities and redistribution of land. These must be done in a strategic and systematic way. Remember that this movement is the oldest liberation movement and the last to be unbanned. The Economic Freedom Fighters’ conceptualisation should be that the ANC has witnessed what has been happening in Africa and to the diaspora, and therefore should not repeat overt mistakes. The EFF should not create an impression that they are wiser than those who were involved in the Codesa negotiations and the “sunset clause”. Those agreements were seen as a compromise by the movement. I do not think the EFF leadership is aware of how contentious the issue of land is and how badly it could affect a country if land is grabbed by force. Their policies are radical and are not investor friendly. Such an approach would lead to a total collapse of our economy, losses of jobs and food shortages. EFF must accept this as a fact. The international community wants to be part of a South Africa that has viable economic policies, good governance, a credible judicial system, respects human rights including foreign citizens, and is a participatory democracy. A lot of noise is always made that the ANC is heavily in the pockets of the capitalists – that is not true. The ANC as an organisation has never been anti-capitalism; it has embraced capitalism but with caution, aware that this should not be at the expense of the working class and the poor. The ANC is a broad church that caters for any class, religion and race. Its bias has been towards the poor and the working class as a matter of principle. Malema and friends lost most of the debates in the ANC; they failed to convince the ANC membership to see things the way they see them. Instead Malema resorted to irrational behaviour, showed a lack of political astuteness and, together with his friends, brought anarchy and lawlessness which led to his demise. South Africans should not even consider voting for the EFF as their policies are dangerous and could have disastrous implications. May I remind the EFF that we have created this strong and stable economy through intelligence, sweat and blood. Today there is not a single country in the world without investments or interests in South Africa. Does the EFF know who buys our gold? Who buys our diamonds? Who trades with us? Who helps us develop our economy and the skills we do not have? I vehemently suggest that they go back to the drawing board and find one another on this matter. It is their democratic right to start a new political party, but their policies must not pose a threat to hard-earned freedom. Freedom and democracy comes with responsibility. I see Malema as being impetuous and imprudent with a tendency to over-simplify head-stretching challenges. Need I say globalisation and foreign direct investment dynamics are far beyond his level of comprehension. Pumlani Mbeki is an advocate and works for the Eastern Cape government
Posted on: Sat, 09 Nov 2013 10:45:40 +0000
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