Description
In tracing the economic debates in the ANC from the Freedom Charter and Morogoro to the RDP and the present, this analytical overview shows that the shift to macro-economic stabilisation in the transition to democracy in 1994 was due to international pressure, and examines how it changed the trajectory of ANC policies. The government became frozen in the pursuit of cautious economic policies in the interests of fiscal prudence. The commitment to development lost momentum, compensated partially by the provision of modest social services and social grants. The revolt against economic orthodoxy at the ANC Polokwane conference which was pressed forward at the Tripartite Economic Summit in 2008 is traced, and the economic challenges that will face the new government in 2009 are analysed with original insights into what should be done to address the economic crisis. A framework for alternative development programmes based on a change of mindset about the centrality of development planning in a pro-people developmental state is set out. The analysis is based on 15 years' work in parliament and in economic committees of the ANC, which provided unequalled access to vast documentation and discussions with the top policy-makers of the ANC and government. Included are an extensive examination of the international conditions during the transition in 1994, the creation of the RDP, the switch to GEAR, the distortions of BEE, the dual economy, the lessons from Africa, and the reasons why the productive sectors of the economy have stalled. In conclusion, the decisions of the Tripartite Economic Summit and the proposed changes to government policies are assessed.
