Keep eye on the ball amid plenty noise

As a cacophony emanates from political-, special interest group- and ideological vuvuzelas from all sides in the buildup to the meeting of the governing ANC’s national general council next month, it is not easy to keep the eye on the ball. Observers will do well to take note of global debate about the sustainability of the economic system as we have come to know it over the last 100 years.

All indications are that economic issues such as nationalisation, fiscal- and currency policy, economic reform and the like are to dominate the agenda in Durban.

While ANC Youth League leader Julius Malema apparently has again found his own blaring vuvuzela; while the governance of mining rights is clouded in controversy; and while international competition for developmental and direct investment, to be distinguished from speculative capital movements, is becoming keener in the wake of the financial and debt crises – the public debate appears immensely complex and confusing.

If one casts a wider eye, it is clear that care should be taken not to judge the debate in simplistic domestic sloganeering and posturing. There is a wider global debate raging about the sustainability and even morality of capitalism and the purely global market as we have come to know it over the last 100 years or so.

In a recent article on the Information Clearing House website, James Petras argued that “the sustained, large-scale roll-back of social rights and welfare provisions, wages, job security, pensions and salaries demonstrates the falsity of the idea of the linear progress of capitalism.”

In another recent article on the same website, Mike Whitney writes: “The bottom line? When Wall Street is hurting, money’s never a problem. But when the states are on the brink of default and 14 million workers (in the United States) are scrimping to feed their families, there’s not a dime to spare. Explain that to your kids.”

In an article for the United Kingdom-based openDemocracy website, before his recent death, historian Tony Judt wrote about the fact that privatisation of public utilities took place despite the fact that most people were apprehensive: “We need to become confident once again in our own instincts: if a policy or decision seems somehow wrong, we must find the words to say so.”

It has become widely accepted that international investment in the development of natural recourses in developing countries often has little benefit for local communities. The lion share more often than not goes to offshore shareholders. Models such as enforced joint ventures between local capital and/or the state are becoming more and more acceptable practice.

While these models are often open to abuse and do not address the problem of ever widening inequities – be it in South Africa, often accompanied by a change in the racial complexion of the wealthy – it does not mean the problem needs to be addressed.

The upcoming fundamental discussion on economic policy – even if there are elements present in the buildup such as the playing of a race card by Malema and the ANCYL which causes great unease – is important, timely and unavoidable.

As Africa’s largest economy, South Africa has an important function as role model and has a real interest in what occurs in the rest of the continent. The recent United Nations Conference on Trade and Development annual "World Investment Report" brought to light that South Africa is the largest source from the developing world for investment into the rest of Africa – outstripping even China.

The Durban meeting could be a decisive moment for the future economic well-being of South Africa and its neighbours. Future social stability may also depend on the outcomes, more than is generally anticipated.