Ordinarily, a partnership between business and the government aimed at turning the economy around should receive universal endorsement. In the midst of a deepening crisis, a rapprochement between those who run the country’s administration and those who control the private sector should be a self-evident imperative.
Yet the decision by CEOs of more than 100 major companies to work with the government to seek ways to rescue the economy has been met with much cynicism.
The critics do not condemn co-operation between the captains of industry and the government as being inappropriate or pernicious in itself; rather, there seems to be a morbid fear that the CEOs, out of simple-mindedness or a misguided desire to prove their loyalty, have been suckered by the wily charms of a scheming ruling party.
So deep was the suspicion that the business leaders involved felt compelled to justify their participation and to swear, hand on heart, that their intentions were honourable. No less a personage than Standard Bank South Africa CEO Lungisa Fuzile was quoted in Business Day as saying: “I for one have no hesitation working with government because I want a South Africa that delivers prosperity for everyone. I am not doing it for the governing party.”
The fact is that instead of standing on the sidelines and carping, the CEOs have chosen to explore ways of contributing to the search for solutions facing us as a country.
In a pledge they signed, they declared their belief in South Africa’s potential. They were, they said, committed to build the country and “to address the current challenges with the aim of achieving sustainable, inclusive economic growth”.
“Through strategic partnerships and focused interventions, we have the power to make a significant and positive impact on our nation, creating hope for all South Africans. We are resolutely committed to being a force for good,” they added.
In the meantime, business has agreed with the government on priority areas, namely energy; transport and logistics; and crime and corruption. According to business, focusing on these three areas could help to add three percentage points to economic growth.
Apparently, they would prefer to stand by as the ANC muddles along, so its incompetence becomes even more obvious to the electorate. All in the hope that the party loses power next year.
So what’s to fault with either the pledge or the mooted interventions, both of which seem eminently reasonable and constructive?
The problem seems to lie in the now-endemic pessimism wrought by the ANC’s misgovernance of the country and the economy. After 30 years of frequently changed plans, of creating “war rooms” and task teams, and having little to show for it, the scepticism is not unjustified. Nor should it be surprising.
In addition, though, opposition to business-government co-operation will likely be tinged by politics. Among the pact’s critics will be those who, when regarding the direction in which the ANC has steered the country over the past three decades, have given up on the ability of the party to fix our many and worsening problems.
They would have reached a point of no return with the ruling party, believing that the only solution is for it to be removed from power — next year’s election being its presumed Waterloo. For those who hold that view, working with the government to make things better, to fix things, is anathema. Like giving ammunition to the enemy.
Apparently, they would prefer to stand by as the ANC muddles along, so its incompetence becomes even more obvious to the electorate. All in the hope that the party loses power next year. Such a course would, of course, harm business, fuel unemployment, diminish the standard of living and generally damage the economy.
The scorched-earth tactics are based on the fantastical belief that once the country has reached rock-bottom it will rise again, phoenix-like, at the click of the fingers, when a new administration takes office. Recent history teaches that, as in the case of state capture and other things that have gone wrong since 1994, restoring and rebuilding society will be arduous and protracted — irrespective of which party is in charge.
In any case, the presumed electoral rout of the ANC next year might very well turn out to be wishful thinking.
Further destruction of the country is a price we should not have to pay if we can avoid it. Is it not better to keep every enterprise possible operating, and preserve every job that can be saved? And, if there is a way to create new jobs, to pursue it vigorously?
If there is fair criticism of the deal between the government and the CEOs, it is that it does not address the elephant in the room — the need to expeditiously bring to life the social compact promised by the president many moons ago. Between them, the government and business can hardly claim to represent all social stakeholders, such as organised labour and civil society formations, or to be able to speak to their varied, sometimes competing interests.
For instance, it is questionable if a fight against crime can succeed amid the high levels of unemployment and wealth inequalities that mar our society. Or whether we can reach the required growth levels without industrial peace, social stability, mutual benefit and the buy-in of crucial stakeholders.
These questions aside, it is deeply ironic that the private sector signatories should come under fire for at least trying to be part of the solution to the problems facing the economy and the country. In fact, wouldn’t their own shareholders frown if an opportunity to make a difference was spurned; if the chance to create a better, more sustainable operating environment for business went begging?
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