The continuous review of our economic policies must be viewed against the backdrop of the legacy the ANC inherited from the apartheid regime. It must be understood that for decades certain forces within our society have used their exclusive access to political and economic power to promote their own sectional interests at the expense of black people, resulting in a situation where South Africa had one of the world’s most unequal patterns of distribution of income and wealth . It is also a reality that the South African economy is characterized by excessive concentration of economic power in the hands of a tiny minority of the population .
The ANC similarly acknowledges great challenges that still remain to be tackled . These include high levels of unemployment with continuing job losses in the formal sector and rising joblessness especially among the youth; low growth, low savings and low levels of investment; continued mass poverty and deep inequalities based on class, race, gender and region. In addressing these challenges, we have made a firm commitment to sustain the trajectory of our economic policies in order to build a firm and stable economy that is responsive to the needs of the vast majority.
Over the next five years, we have unambiguously articulated our plan which seeks to bridge the divide between the affluent segments of our society and the impoverished one . Government should play a direct role in propelling our economy to a point where it truly responds to the aspirations of the vast majority. In recent years, we have experienced resistance from certain sections of the private sector in embracing transformation that seeks to shift investment patterns towards the underdeveloped areas and empowering the so-called informal sector.
The plan outlined in the ANC manifesto constitutes the strategic thrust of the mandate given to the ANC by the electorate. Our experience over the last decade has taught us that state intervention is necessary in a number of areas if we are to achieve the objectives outlined in our manifesto .
Our mandate from the electorate is to develop an economic model that effectively addresses the core problems of unemployment, under-development and redresses the imbalance of the dual economy inherited from the apartheid state . A simplistic view that suggests a minimalist state and a private sector that dictates the terms is rather foolish and short-sighted. Experience the world over has demonstrated that economic growth and development requires strong guidance from the state and a certain level of intervention in certain sectors. This represents a meaningful interpretation of the people’s contract endorsed by the electorate.
The decision to locate the state-owned enterprises at the centre of government’s delivery programme is a strategic refocusing of resources at the disposal of the state to accelerate service delivery and influence economic growth . The distortions in South Africa ‘s economy do not leave room for the luxury of a wait and see approach in terms of growth and development. The challenges and disparities are such that they require immediate interventions.
As we continue on the path we defined in 1994, we similarly expect the various stakeholders in different sectors of our economy, including business, labour and civil society as well as individual citizens to come on board in addressing these challenges . It is in this context that the ANC has elected to enter into a people’s contract, which will position our country as a winning nation, united and at peace with itself. All cadres of the movement are deployed to execute specific mandates and ensure that they are on the cutting edge of the drive to create a non-racial, non-sexist society. The ANC carries a mandate from the electorate, and therefore has a responsibility to ensure that the commitments it made to the electorate are fulfilled to the letter. The deployment of cadres at strategic points is therefore a necessary task that seeks to ensure that there is no deviation from that mandate.
The ANC is therefore firm in its resolve to forge ahead with accelerated delivery, which will breathe life to the people’s contract to create work and fight poverty. South Africans must judge us on the basis of what we have achieved in relation to what we have committed ourselves to do. The people’s contract calls for unity of purpose and a commitment from every citizen to deal with all the challenges collectively . We must do our best to rise to the occasion and live up to the expectations of the vast majority of our people.
President Thabo Mbeki