Why South Africa Should Do Away With Mandelas Economic Deals

DarkSkies · Jan 16, 2016

Excerpt:

The Crippling Economic Compromises

In his 2005 bookand a more recent article, former Presidency official and now academic Alan Hirsch justifies neoliberal compromises on grounds the new government was constrained by concerns for economic stability.

Yet werent governments deals the main cause of subsequent economic instability, including the half-dozen currency crashes between 1996 and 2009 when Trevor Manuel was finance minister?

The neoliberal compromises demonstrably failed the South African society, economy and natural environment, no matter what one thinks of the ethics and politics of these Faustian Pacts. Here are the dozen biggest devils that hobbled Mandelas economic legacy:

The repayment of the US$25 billion apartheid-era foreign debt. This denied Mandela money to pay for basic needs of apartheids victims. Giving the South African Reserve Bank formal independence. This resulted in the insulation of the central banks officials from democratic accountability. It led to high interest rates and the deregulation of exchange controls. Borrowing $850 million from the International Monetary Fund in December 1993, with tough conditions persisting for years. These included rapid scrapping of import surcharges that had protected local industries, state spending cuts, lower public sector salaries and a decrease in wages across the board. Reappointing apartheids finance minister Derek Keys and Reserve Bank governor Chris Stals, who retained neoliberal policies. Joining the World Trade Organisation onadverse terms, as a transitional, not developing economy. This led to thedestruction of many clothing, textiles, appliances and other labour-intensive firms. Lowering primary corporate taxes from 48% to 29% and maintaining countless white peoples and corporate privileges. Privatising parts of the state, such as Telkom, the state-owned telecommunications company. Relaxing exchange controls. This led to sustained outflows to rich peoples overseas accounts and a persistent current account deficit even during periods of trade surplus, and raising interest rates to unprecedented levels.Adopting the neoliberal macroeconomic policyGear. This policy not only failed on its own terms, it also caused developmental austerity. Giving property rights dominance in the constitution, thereby limiting its usefulness for redress. Approving the demutualisation of the two mega-insurers Old Mutual and Sanlam. It was the privatisation of historic mutual wealth for current share owners.Permitting most of South Africas ten biggest companies to move their headquarters and primary listings abroad in the late 1990s. The results are permanent balance of payments deficits and corporate disloyalty to the society.

For More
Click to expand...

Yes, some South Africans are reevaluating certain unfavorable economic policies. It is also telling that they are able to recognize the hypocrisy dealt out by whom they call 'neo-liberals.' These liberals trot out a platform yet their actions are forever against the common good of the people. Lastly, judging by some of the antics outlined in the article, I'd say global - capitalism has a part to play in companies moving away. No allegiance to the community whatsoever.

waltky · Dec 5, 2017

Granny says it's prob'ly in Winnie's purse...

South Africa watchdog: $22M misspent on Nelson Mandela's funeral
Dec. 4, 2017 -- South Africa's corruption watchdog said Monday that officials misused $22 million during Nelson Mandela's funeral four years ago.

The Public Protector advocate, Busisiwe Mkhwebane, in a 300-page report released in Pretoria, detailed lavish and inflated spending by Eastern Cape officials on the funeral of the former leader. Mkhwebane, who said it was "very scary" and "appalling" that officials failed to follow regulations, called on President Jacob Zuma to order the Special Investigating Unit to look into the spending.

The coffin of South African former President Nelson Mandela is escorted to the funeral ceremony in Qunu, South Africa

The report said "money meant for infrastructure and social development in the Eastern Cape, the provision of running water, electricity, sanitation, the replacement of mud schools and the refurbishment of hospitals" was misspent, including on T-shirts, mourners transportation and catering at memorial services. "How do you charge R350 [$26] for a t-shirt? Yes officials are supposed to be following the public finance management act, but service providers, where is your conscience for charging the state so much money for a t-shirt? It's very concerning," Mkhwebane said. She said at the news conference it is "is very concerning that we can use a funeral to do such things. How do you charge or escalate prices or even send an invoice for something you have not delivered?"

The funeral was poorly planned, she said. "There was no properly coordinated plan for all different role players in the funeral and related activities from the level of national, provincial and local government and public entities," Mkhwebane said. "Despite the fact that there were earlier discussions and a plan at a national level for the funeral of president Mandela, it did not translate into advanced and coordinated planning in the Eastern Cape." Heads of state from around the world attended the funeral for Mandela, 95, in December 2013. South Africa observed a national mourning period of 10 days after he died on Dec. 5.

https://www.upi.com/Top_News/World-...?utm_source=sec&utm_campaign=sl&utm_medium=20
Click to expand...

Llewellyn Moss · Jan 22, 2018

Llewellyn Moss · Feb 14, 2018

Log in or Sign up

Why South Africa Should Do Away With Mandelas Economic Deals

DarkSkies Well-Known Member

waltky Well-Known Member

Llewellyn Moss Well-Known Member

Llewellyn Moss Well-Known Member

Share This Page

Log in or Sign up

Why South Africa Should Do Away With Mandelas Economic Deals

DarkSkies Well-Known Member

waltky Well-Known Member

Llewellyn Moss Well-Known Member

Llewellyn Moss Well-Known Member

Share This Page

Useful Searches

Why South Africa Should Do Away With Mandelas Economic Deals