Land grabs, nationalisation a recipe for economic meltdown

The ANC Youth League elective congress challenged the leadership of the ANC and the government through an attack on policies rather than personalities.

Nowhere has this year’s 24th National Congress been utilised to criticise President Jacob Zuma or ANC Secretary-General Gwede Mantashe but rather called for fundamental changes to the ruling party’s economic policies.

Its president, Julius Malema, has listed the nationalisation of mines and land expropriation without compensation as part of its priorities it will be carrying forward and obviously it’s support will be for those ANC candidates in 2012 who are prepared to endorse them.

While Cosatu and the SACP were told that they care more about attaining positions than ensuring the upliftment of labour and the poor, the response has been to call on members to fill the vacuum left by them rather than the tirades of old.

Indeed even the potentially confrontational challenge for the ANCYL leadership by Lebogang Maile fizzled out.

This new approach might not be as physically demanding as ANCYL get-togethers of the past but in terms of demands they will present the ANC with more headaches than ever before.

Deputy President Kgalema Motlanthe addressed the delegates on Sunday with President Zuma having spoken to them on the opening day.

While ANC elections are — in political terms — a million miles away and though I am not for a minute suggesting that the deputy president has any ambitions in that regard, he would, if he wants to keep that door open, need to throw the youth league a bone.

Unfortunately anything that even suggests that South Africa would even contemplate a Zimbabwean-style land grab or nationalise the mines would reduce the country’s balance sheet by tens of billions and the opportunity cost would be horrendous.

Yet if one has regard to today’s newspapers a number of ANC leaders are suggesting that the ANCYL might have a point.

A good analogy for this — on Father’s Day — would be where your son tells you that bungee jumping increases your blood flow and the best places to go and do it are in Spain.

Buoyed by this wonderful advice to improve your health you approach your bank manager first thing Monday morning for a loan so that you can travel abroad.

He tells you that it’s nice to see fathers and sons getting along so nicely but unfortunately not only is he not giving you the loan but he is calling up your overdraft, foreclosing on your mortgage and closing your account because while you are heavily indebted to the bank you clearly have a reckless disregard for your life, which is what they were betting on when they lent you the money.

Though it’s nice to promote family unity his is a bank which deals in reality and suicidal sports are something other banks — definitely not his — can risk their capital on.

The ANC Youth League has now given the ANC leadership a very difficult decision to make.

Do they support economic policies which in the short term will bring them the support of the influential youth league at the ANC elective conference but retard the upliftment of the masses for decades? A doctorate in economics is not required to understand that land grabs and nationalisation are a recipe for economic meltdown. Or do they do what’s right, increase their efforts to explain why these policies are dangerous and take their chances on being re-elected?

The latter includes ensuring that corruption is brought under control through measures that prevent them occurring again — scrapping the info bill, giving the Hawks independence and ensuring the police internal affairs agency has more teeth — while producing a viable alternative to speeding up land reform.

In effect does the leadership seek long-term stability built on a solid foundation or a quick fix which will lead to the next generation of ANC leaders having to unravel the mess.

One needs only have regard to Zimbabwean President Robert Mugabe trying to touch Zuma for a $50 million loan — using Bulawayo businesses … heaven help us … as the basis — as the future of the country and the party if they elect to do what is easy and expedient.