Wednesday, August 11, 2010

South Africa: The Strike, The Contradiction

August 10 2010 marked the day that signaled South Africa's contradictions with the walkout by government workers from their jobs. These contradictions where clear for anybody to see by 1999, but they have sunk in now more than the power shortages. The ANC, was coerced by the minority elite to go into partnership with business, business that was there to cater strictly for the 5 million whites. The ANC should have been strong enough back in 1999, if not 1994 to introduce policies of economic growth, rather than putting those it considered appropriate into the boardrooms of business. Once that happened they would protect their interests. Yet a free market had it been introduced back in 1994 would have solved a lot of problems in South Africa, a country with the potential of 7 - 10% economic growth.

Now there is no money for increasing pay without damaging government finances, those who remained in government at the top level demanded private sector wages whilst working for the government that does not produce anything, a big no no, but nobody cared at the time they would quote white propaganda that all is okay, South Africa's GDP is equal to all sub Sahara put together, therefore there is nothing really to worry about, but the strike has laid all that nonsense to rest. The iron is struck whilst it is still hot, that was in 1994 - 2000, might be too late now. The unions rightly want more money, the government rightly has no money to give, what now.

There is still a chance to go to the free market and allow competition, either that or everybody must dig their trenches and defend their positions. A little humility, very difficult one can understand, and South Africa would boom, a little humility Africa would boom. However, the presidents of Africa do not see themselves as one with the people, they see themselves as part of the G20 club, the Davos club, it is no honor to go there, one is just being hoodwinked and convinced to forget their people, hence a man like Mugabe cries to be allowed to travel, when personal sanctions were ding him a favor to sit tight at home and fix that economy that a Joshua Nkomo or Lumumba would have put into the space age, he would not have been hood winked to believe he belongs in Davos club or G20 summits whilst his people are poor.

The ANC, though Tambo spoke like Nkomo clearly had other things in mind, they saw themselves as giants, no, an economy is a giant from work produced, a free market allows most work to be produced.

People will point at current debacle in western economies and say clearly I am wrong. Firstly the crises in the west right now has nothing to do with them following a free economy, Canada for example does not have a free economy, the problem facing America and Europe is not because of liberalism, it is because of exporting jobs, people who are not working can not afford new cars let alone a new house.

If South Africa does not follow the free market route, mark my words, the government will entrench itself and become more hostile, already the press is being curbed, eventually somebody must be blamed, I tell you right now, the blame will fall squarely on those who have, something will be taken to give it to those who do not have.

A true nationalist wants his people producing, a power monger wants to control the little they have and seek somebody to blame because they have no plan, just a despotic mind. The writing is not yet on the wall, but the writer is getting his hand ready to write on the wall.

Bhekuzulu Khumalo

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Bhekuzulu Khumalo

I write about knowledge economics, information, liberty, and freedom