Letter: Transformation can spell disaster
TRANSFORMATION of our universities, of the economy and of society in the wrong hands spells disaster for South Africa. Two countries transformed recently – Zimbabwe and Venezuela – show how things can deteriorate very fast.
We have had similar experiences in the past such as the Bolshevik revolution of Russia, the cultural revolution of China and Idi Amin's revolution of Uganda. In all these countries there existed a common theme – the rich were seen as the cause of the poor being poor and thus a forced redistribution was necessary.
The rich were thus stripped of their wealth, farms, businesses, factories, mines, shops and homes, which were either nationalised or stolen by powerful individuals. The incentive to invest was no more and the clarion call for equality was everywhere.
The result in all these five countries were the same.
Many people were tortured and died unnecessarily, there was massive social dislocation and economic decline was everywhere.
In both current examples – Zimbabwe and Venezuela – their governments do not earn enough tax money for them to function properly in spite of their rich natural resources, there is massive unemployment and poverty, and there is a shortage of food.
In 1980, South Africa was the largest economy in Africa. Egypt, where the army is a state within a state and with the added disadvantage of no credible rule of law and democratic culture, has actually pipped us into third position now.
I shudder to think what Egypt could do if it had a proper functioning free market and democratic system. With the current state of affairs, if things are not changed soon, we will be sixth in Africa in 10 years from now.
The current growth rate of 1% net of inflation is not net of population growth. If population growth is taken into account, we actually have a -2% decline rate, and when compounded over 10 or 20 years explains why we are now number three in Africa and falling fast.
We need a minimum growth rate of more than 5% to keep everyone happy and that will never happen under ANC rule for many reasons. Its racist policy of transformation and cadre deployment, where everything has to be representative of demographics – and where achieving whites, coloureds and Indians are stymied – is thus creating a dysfunctional society and state.
This scenario is leading to an increase in racist incidents as seen on social media and elsewhere, and an increase in xenophobic attacks on foreigners. I have said before that racism cannot be eradicated until the underlying social and economic conditions are resolved, and the ANC is taking us in the opposite direction.
Its socialist policies, where big business, capitalism and neoliberalism are seen as the enemies of the poor, are huge impediments and disincentives for our entrepreneurs and business classes. Corruption is systemic and endemic, and practices such as tenderpreneurism and theft from the state are pervasive from top to bottom.
Entitlement is well entrenched in the psyche of the masses and extortion by burning public property has become common practice. The ANC is ignorant of, is in denial of, and unwilling and powerless to face down the threats facing the country.
Things may look rosy on the surface in some quarters, but deep down, the state and society is rotten to the core. There is nothing on the horizon to pull us out of junk bond status, and out of a moribund and declining society.
There is no good story to tell, only a bad nightmare is beckoning.
