This and other SA publications are filled with economic arguments about a liberal market economy being superior to too much state involvement. It is surprising that these neoliberal solutions are at the forefront of discussion, particularly in the SA of today.
The far ends of any spectrum — capitalism, socialism; free market, command economy — are not useful in this discussion. We are looking for an economy that works for everyone. It will be a so-called mixed economy, the only thing to determine is the role played by each sector.
Let’s not make the mistake of observing the behaviour and failures of the present government and basing solutions on those. It may well be that some state-owned enterprises (SOEs) need to be privatised, but don’t assume this is true of all of them.
There is no reason SOEs should not be efficient. The state must be provider of certain services given our history and the desperate situation in which most people find themselves.
Markets are clearly fundamentally important to our economy. They should be appropriately regulated, but yes, there should be easier entry, government assistance where necessary and less red tape.
The advantages of a so-called liberal order are idealised. Please read Ha-joon Chang to understand that all these advantages are simply never realised in the way they are stated. Let’s be pragmatists.
In SA today we have to have an effective public sector that includes education and health, electricity, transport and the ports, functioning alongside and in partnership with the private sector.
I propose that the only way that this vision gets a kick-start is through a job guarantee, in which government offers a job at minimum wage to anyone willing and able to work. Again, please read the literature.
Howard Pearce
Rondebosch
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