The SACP welcomes the very open and frank reflection by Minister Manuel on the performance of the South African economy in the Sunday Independent. It is indeed very rare that anywhere in the world a minister of finance would openly and frankly reflect on the strengths and weaknesses of government economic policy in the manner that Manuel has done. We believe that this is long overdue and such frankness is in the true tradition of our movement and its allies.
The SACP welcomes the recognition that our economic policies have not led to job
creation, and instead have been characterised by massive job losses. This is precisely the
point that the SACP has been raising over the last few years, and
much more prominently over the last year or so. We hope that this statement will lead to
the further opening of the debate on economic policy, including a comprehensive economic
review, including the review of the GEAR policy itself, as we had been consistently
calling for. We reiterate as the SACP that our budget deficit targets are very tight and
unrealistic for a developing economy characterised by one of the highest class, race and
gender inequalities in the world. It is our considered opinion that to call for a reviewal
of GEAR is not populism, but is actually informed by the very same considerations of
inequalities, job losses and lack of job creation that the Minister highlights in his
interview.
We particularly welcome the Minister's comments on the role of the Reserve Bank in our
economy as well as the fact that our interest rates are too high. This is the point that
the SACP has been making over and over again over the last few years, including the fact
that our Reserve Bank has for too long been characterised by a narrow, neo-liberal,
inflation-driven policy which is inconsistent with our Reconstruction and Development
Programme. It is for this reason that we have welcomed the new approach taken by the new
Reserve Bank governor, Mr Tito Mboweni, to lower the interest rates. We agree with the
Minister that we need a further reduction of these interest rates.
We also welcome the Ministe's recognition of the advances made on the labour front, as well as his condemnation of attempts by the bosses and white farmers to undermine these laws. We also agree that tighter inspection of labour laws is required. We further believe that it is however not only government's responsibility to monitor the implementation of these laws, but principally the responsibility of the workers and our entire organised mass formations. The very progressive labour laws passed by the Department of Labour, requires massive mobilisation of the working class, urban and rural, as well as all our people as a whole in order to ensure that they achieve their intended purpose.
Whilst we welcome debate on actions intended by any component of our Alliance, it is our considered view that COSATU's mass action is absolutely necessary to defend the unacceptably high levels of job losses in our country. We believe that it is the duty of every revolutionary trade union movement to effectively defend the jobs of its members whilst simultaneously throwing its full weight behind the democratic revolution. It is for this reason that the last Central Committee of the SACP held in December 1999 decided to throw its full weight behind COSATU's programme of action for this year.
It has always been our belief that debate about economic policy does not belong to
government nor to the Alliance leadership alone, but it is a public debate in which the
mass of our people must be actively involved. It is for this reason that we have
consistently raised economic matters in the public arena, and we believe that this frank
interview by the Minister will assist in opening the economic debate to our people as a
whole.
9 January 2000
Issued by the SACP Department of Information & Publicity
E-Mail: sacp1@wn.apc.org
South African Communist Party Head Office
COSATU House No. 1 Leyds Street
7th Floor Braamfontein 2001
Republic of South Africa
(Tel: 27 11 339-3621/2)
(Fax: 27 11 339-4244)