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.
General
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