The ANC Youth League has raised a dust storm by asking critical questions which ought to have been asked and answered by their elders a long time ago. The debate they have raised seeks to ask whether or not, we can continue to manage the economy’s commanding heights in the manner in which we are currently doing. The answer to this question cannot be, “The ANC Youth League continues to howl with its voice of ineptitude and embarrass the youth of South Africa”, as has been implied by many commentators and other seemingly interested individuals.
I’m no fan of the Youth League, but any fool can see that we need to sit around this issue since our current system has failed to distribute fairly the fruits of the soil and provide for workers who toil under its machinery. Much worse, it has burnt even the hands of those who had long been dedicated proponents of capitalism and the free economy. This writer is certainly a supporter of the notion of the free market and free trade. However, at this juncture, both of South Africa and the world, we have to ask whether or not the system can deliver the benefits as long envisaged by Adam Smith through its invisible hand. Or perhaps we must move away from Thatcher’s forceful and stubborn declaration that there is no alternative (TINA) [to the free market/capitalism], and open the debate with the prescript, there must be alternatives (TheMBA).
Quite frankly, the ANC Youth League, as one section of the youth of South Africa, has every right to speak out on the state of the country, and act to safeguard its future, of which they are heirs.
Of course, the declaration that we must nationalise the nation’s commanding heights, including mining and the banking system, in my view, is not the way to begin this critical debate. However we need to reconsider the government’s involvement in these industries. Seeking to silence the ANC Youth as foolish hooligans is a blatant display that few in our country have the adequate understanding of what it means to live in a democratic society where all must be heard with a respectful ear. More than this, it shows that importance of open debate on pertinent issues is lacking, and this should be concerning given that we need it if we are to find solutions to pressing issues.
If there was ever a time to hold the free market ideal to scrutiny, without blatantly assault, that time is certainly now. Capitalists find themselves vulnerable and cannot continue to shout from their skyscrapers their opposition and arrogant disdain of the role of government in the economy. They have found themselves at the feet of the state, the world over, begging for its intervention, clearly displaying that one or other form of government involvement in the running of the economy and in fact, private corporations, is necessary.
Summarising the message of Peter Bauer, Thabo Mbeki defined the role of the state as “…to provide such public goods as the protection of life, liberty, and the environment, leaving all else to the market, except to the extent that the state must intervene as a regulator to correct the imperfect functioning of the market”.
The state must intervene as a regulator to correct the imperfect functioning of the market, given that the market has been proven as a resounding failure at self regulation.
The market long promised efficiency and fair distribution through the invisible hand. What it has delivered, as we have seen recently, is inefficiency, crass corruption, destruction of value through greed and negligence and the waste of taxpayer funds. This has lead to the socialism of risk, and the capitalism of return, as observed by one US senator. And government has no choice but to get involved since the system has protected the drivers of capitalism and left the worker and the poor vulnerable.
In my view, there is no way the state can ever run banks and large corporations such as mining companies. But it can make sure that capitalism is forced upon the capitalists. That risk is given its due regard, and reward is distributed fairly.
The state must act to establish a healthy relationship between capital and the people so that there is trust that the one will not lead to the downfall of the other.
This is the debate we ought to be having. I wish to congratulate the ANC Youth League for the foresight to bring this out. What is now required is calm heads, and honest expression, from all corners, of what I believe most of us want to see, a equal and prosperous South Africa which bears fruits for all its people.
by Xhanti Payi
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I’m no fan of the Youth League, but any fool can see that we need to sit around this issue since our current system has failed to distribute fairly the fruits of the soil and provide for workers who toil under its machinery. Much worse, it has burnt even the hands of those who had long been dedicated proponents of capitalism and the free economy. This writer is certainly a supporter of the notion of the free market and free trade. However, at this juncture, both of South Africa and the world, we have to ask whether or not the system can deliver the benefits as long envisaged by Adam Smith through its invisible hand. Or perhaps we must move away from Thatcher’s forceful and stubborn declaration that there is no alternative (TINA) [to the free market/capitalism], and open the debate with the prescript, there must be alternatives (TheMBA).
Quite frankly, the ANC Youth League, as one section of the youth of South Africa, has every right to speak out on the state of the country, and act to safeguard its future, of which they are heirs.
Of course, the declaration that we must nationalise the nation’s commanding heights, including mining and the banking system, in my view, is not the way to begin this critical debate. However we need to reconsider the government’s involvement in these industries. Seeking to silence the ANC Youth as foolish hooligans is a blatant display that few in our country have the adequate understanding of what it means to live in a democratic society where all must be heard with a respectful ear. More than this, it shows that importance of open debate on pertinent issues is lacking, and this should be concerning given that we need it if we are to find solutions to pressing issues.
If there was ever a time to hold the free market ideal to scrutiny, without blatantly assault, that time is certainly now. Capitalists find themselves vulnerable and cannot continue to shout from their skyscrapers their opposition and arrogant disdain of the role of government in the economy. They have found themselves at the feet of the state, the world over, begging for its intervention, clearly displaying that one or other form of government involvement in the running of the economy and in fact, private corporations, is necessary.
Summarising the message of Peter Bauer, Thabo Mbeki defined the role of the state as “…to provide such public goods as the protection of life, liberty, and the environment, leaving all else to the market, except to the extent that the state must intervene as a regulator to correct the imperfect functioning of the market”.
The state must intervene as a regulator to correct the imperfect functioning of the market, given that the market has been proven as a resounding failure at self regulation.
The market long promised efficiency and fair distribution through the invisible hand. What it has delivered, as we have seen recently, is inefficiency, crass corruption, destruction of value through greed and negligence and the waste of taxpayer funds. This has lead to the socialism of risk, and the capitalism of return, as observed by one US senator. And government has no choice but to get involved since the system has protected the drivers of capitalism and left the worker and the poor vulnerable.
In my view, there is no way the state can ever run banks and large corporations such as mining companies. But it can make sure that capitalism is forced upon the capitalists. That risk is given its due regard, and reward is distributed fairly.
The state must act to establish a healthy relationship between capital and the people so that there is trust that the one will not lead to the downfall of the other.
This is the debate we ought to be having. I wish to congratulate the ANC Youth League for the foresight to bring this out. What is now required is calm heads, and honest expression, from all corners, of what I believe most of us want to see, a equal and prosperous South Africa which bears fruits for all its people.
by Xhanti Payi
2 comments:
I think that the article is interesting although we know that the ANC people like to defence. Lets see what they can tell us this time!!
It is sad that the ANC is always blamed and has become the victim of all people who are running around with views that don't make sense.
The ANC has and is still doing a good job for the people more especially, the poor.
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