Under the administration of President Jacob Zuma, the trend has become clear. While South Africans are annually promised more jobs, a reduction in poverty, better education and the eradication of corruption, there is little action on the ground. In the wake of this failure to achieve tangible outcomes, the same solutions to the same problems are offered to the public year after year in the President’s State of the Nation address, amid the fanfare of the opening of Parliament. South Africans deserve better this year. They need a President who will acknowledge when mistakes have been made, and offer solutions to remedy the inherent problems. This requires bold leadership, and a willingness to stand up to those within the Tripartite Alliance who value personal political interest above the greater good. If we are to make 2012 the real ‘Year of the Job’, then creating jobs must be the non-negotiable outcome. Over the past year, between contradictory policy programmes from the president and his cabinet ministers about how the government aims to alleviate the unemployment crisis, and questionable figures about jobs lost and created, it is no surprise that we have not made the progress we could have over the past year.
This disjuncture between promise and delivery was clearly evident at the World Economic Forum (WEF) in Davos this past week. President Zuma said he would focus on enabling the private sector to drive growth and job creation. Domestically, the reality is very different indeed: a lack of innovative government policies, and excessive focus on expanding the public sector and driving up the government wage bill to boost job creation, fundamentally contradict the President’s remarks at WEF. So while we welcome the President’s position in Davos, we must question why his government’s approach to job creation is not rooted in this principle. Given this state of policy flux, it was little surprise when the Minister of Public Enterprises, Malusi Gigaba, within the same week, was quoted suggesting that the government should centralise all state-owned entities under the auspices of his department in order to stimulate growth and drive job creation.
In his State of the Nation address in 2010 President Zuma boldly stated that “Proposals will be tabled to subsidise the cost of hiring younger workers, to encourage firms to take on inexperienced staff.” Despite this commitment, the Youth Wage Subsidy – which has the potential to ensure access to employment opportunities for young South Africans by lowering the cost of employing first time workers – is now deadlocked in an ideological battle between the ANC and its alliance partners. –> If President Zuma is serious about tackling unemployment, he must put South Africans ahead of alliance politics. The Youth Wage Subsidy is an innovative solution to one of the major challenges facing our country. The President must fulfil his obligation to act in the best interests of all South Africans.
The problem which seems to evade the ANC-led government is that levels of unemployment are directly linked to the growth of the economy. If our economy remains stagnant, unemployment levels will continue to soar. The Democratic Alliance (DA) has, through its 8% growth policy project, identified the impediments of economic growth on a sustainable basis – which is the only real way to create more jobs and eradicate poverty. These include the lack of coherent vision in the Zuma administration, skills shortages in –>South Africa, legislative barriers that discourage entrepreneurship, the cost of labour and the lack of access to capital by our people, leaving many excluded from the formal economy. If these impediments are adequately addressed, the economy will have the space to grow, allowing for the 25% of unemployed South Africans to gradually enter the formal economy.
Attaining 8% growth is achievable if the government gets the right policies in place, follows through and implements them. Argentina has, through growth in its own GDP, seen a decline in unemployment from 25% to less than 8% in a decade. Brazil is one of the fastest growing emerging economies in the world.
According to the World Bank, poverty rates in –>Brazil declined from 20% of the population in 2004 to 7% in 2009. Much can be learned from the way in which these countries have committed themselves to breaking the cycle of poverty and creating a space in which their economies can thrive. We must learn from their mistakes, and emulate their successes. And we must do this with outcomes as our end goal, not internal party politics. –> To lower the unemployment rate, you need a government that will commit to creating an environment conducive to economic growth, will ensure skills development and high quality education outcomes, and a President who is intolerant of corruption and mismanagement of public funds within their administration. On February, 9th, President Zuma must bridge the divide between his promises and delivery. He must take South Africans into his confidence, and prioritise policies on the basis of their best interests. He must be a leader and a visionary. This is the alternative national government the Democratic Alliance is committed to building. It is a vision which will see millions of South Africans employed, put an end to grinding poverty, and attain true economic freedom for all.
– By COMMENT: Lindiwe Mazibuko
