(Debate in Parliament: Trade, Industry and Competition Committee’s oversight visit to KwaZulu-Natal and Gauteng)
The government's response to the recent unrest, i.e., that people steal because they are poor and vandalise because they are angry, is no more than a failing ruling party's attempt to shift the blame.
The recent unrest, looting and destruction of property in KwaZulu Natal and parts of Gauteng as well as the government's response to it all has caused investor confidence in the country to plummet to its lowest level in 12 months and dealt a severe blow to the country's economic recovery process amid Covid-19.
The general response of various senior politicians and government officials is that the recent unrest has shone the spotlight on the urgent need for a more inclusive economy so as to prevent those who want to undermine the democratic dispensation from identifying and exploiting opportunities to do so in our communities. Economic inequality is widely regarded as a legacy of Apartheid.
In 1994, there were approximately 3,5 million unemployed people in South Africa and after 27 years under ANC rule, the unemployment rate currently stands at 11,4 million.
The widening inequality gap grew significantly during the period of 2008 to 2017, which corresponds perfectly with former President Jacob Zuma's term of office.
The question we should be asking is not whether inequalities have become less since the end of Apartheid, but whether inequalities have become more since the start of ANC rule.
The South African government strongly advocates for redistribution, but even if all the taxes and transfers are taken into account, the Gini coefficient for the population's proportional income will still be 0,63 – the highest in the world.
Thus, the redistribution of resources will come down to the redistribution of poverty. Sustainable job creation can only be achieved by means of economic growth.
The Department of Trade, Industry and Competition must respond to the current crisis with a new perspective on local economic development.
Stimulating localism and the development of community-based economies are essential at this time. It will also make the biggest contribution to ultimately bringing about equality.
The economic stability established in communities with self-respect will eradicate poverty and inequality.
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