WE HAVE a fair idea of what Thursday’s state of the nation address is likely to look like.
We have been told by the government’s communication service that it will report back on key priority areas, particularly rural development, education and health.
Chances are that it will be the usual cut-and-paste job based on inputs from a range of government departments, rather than stylish, inspirational oratory.
And with the election now set for May, and a second state of the nation address pencilled in for June, today’s address is even less likely than usual to contain anything of significance — or indeed anything controversial.
President Jacob Zuma will trumpet the achievements of his administration and of the African National Congress’s (ANC’s) 20-year rule.
And the speech might look a lot like an edited version of the ANC’s election manifesto.
Would that it were different. With the rand under siege, the economy’s growth prospects looking anaemic, and an unemployment rate that remains one of the world’s highest, South Africa deserves a much more pithy address than the president is likely to serve up on Thursday evening.
Start with the main driver of growth and job creation — business. As the president himself has noted lately, the private sector accounts for 70% of the economy.
So if the government wants the economy to thrive and to generate the resources needed to improve people’s quality of life, it is to the private sector that it must look. It must, in other words, create an environment in which the private sector is not just comfortable to operate, but is keen to expand and innovate — and hire more people.
The government talks of the need to partner with the private sector. But it’s never clear whether it has fully taken on board what this means. There is a touching faith among some in government in the state’s ability to do it all — and not nearly enough belief in the power of the profit motive to attract new investment into the economy and generate new jobs and incomes.
If the government really wants to support higher rates of economic growth and job creation, it needs to ensure that it creates an environment in which businesses can do business. It needs to make it clear that this is a priority, that it will do what it takes to create a favourable environment. The state of the nation address is an ideal platform to convey that message to investors and potential investors, domestic and foreign. At a time when capital flows are volatile, this would be an important signal to send.
It would help, too, if it were supported by some indication of bold, controversial steps that the government would be willing to take to effect some of the structural reforms being advocated by institutions such as the World Bank and the International Monetary Fund, as well as by local experts, and even within the government itself.
It would be ideal for the president to signal clearly too, to people within the ranks, that his government is serious about encouraging investment and job creation by the private sector.
The signals can’t be limited just to economic policy measures, narrowly defined.
If a more successful economy is wanted, the government would also have to start rooting out the corruption that is starting to become endemic, and to damage the state’s ability to deliver efficiently or effectively, as well as to distort its relationship with the private sector. That message too would ideally be there in Thursday evening’s address, along with a commitment to take action, without fear or favour, against corruption and cronyism.
Everyone will have their own wish list. But South Africa is entitled to look to this annual event for inspiration, and for a sense that the president and his government are willing to do what’s necessary to address the country’s most pressing problems.
Wishing is good.
President Jacob Zuma delivers the state of the nation address in Parliament in Cape Town in February last year. Picture: PARLIAMENT OF RSA
WE HAVE a fair idea of what Thursday’s state of the nation address is likely to look like.
We have been told by the government’s communication service that it will report back on key priority areas, particularly rural development, education and health.
Chances are that it will be the usual cut-and-paste job based on inputs from a range of government departments, rather than stylish, inspirational oratory.
And with the election now set for May, and a second state of the nation address pencilled in for June, today’s address is even less likely than usual to contain anything of significance — or indeed anything controversial.
President Jacob Zuma will trumpet the achievements of his administration and of the African National Congress’s (ANC’s) 20-year rule.
And the speech might look a lot like an edited version of the ANC’s election manifesto.
Would that it were different. With the rand under siege, the economy’s growth prospects looking anaemic, and an unemployment rate that remains one of the world’s highest, South Africa deserves a much more pithy address than the president is likely to serve up on Thursday evening.
Start with the main driver of growth and job creation — business. As the president himself has noted lately, the private sector accounts for 70% of the economy.
So if the government wants the economy to thrive and to generate the resources needed to improve people’s quality of life, it is to the private sector that it must look. It must, in other words, create an environment in which the private sector is not just comfortable to operate, but is keen to expand and innovate — and hire more people.
The government talks of the need to partner with the private sector. But it’s never clear whether it has fully taken on board what this means. There is a touching faith among some in government in the state’s ability to do it all — and not nearly enough belief in the power of the profit motive to attract new investment into the economy and generate new jobs and incomes.
If the government really wants to support higher rates of economic growth and job creation, it needs to ensure that it creates an environment in which businesses can do business. It needs to make it clear that this is a priority, that it will do what it takes to create a favourable environment. The state of the nation address is an ideal platform to convey that message to investors and potential investors, domestic and foreign. At a time when capital flows are volatile, this would be an important signal to send.
It would help, too, if it were supported by some indication of bold, controversial steps that the government would be willing to take to effect some of the structural reforms being advocated by institutions such as the World Bank and the International Monetary Fund, as well as by local experts, and even within the government itself.
It would be ideal for the president to signal clearly too, to people within the ranks, that his government is serious about encouraging investment and job creation by the private sector.
The signals can’t be limited just to economic policy measures, narrowly defined.
If a more successful economy is wanted, the government would also have to start rooting out the corruption that is starting to become endemic, and to damage the state’s ability to deliver efficiently or effectively, as well as to distort its relationship with the private sector. That message too would ideally be there in Thursday evening’s address, along with a commitment to take action, without fear or favour, against corruption and cronyism.
Everyone will have their own wish list. But South Africa is entitled to look to this annual event for inspiration, and for a sense that the president and his government are willing to do what’s necessary to address the country’s most pressing problems.
Wishing is good.
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