Gear+definitely+not+a+capitalist+plot,+Finance+Minister+Trevor+Manuel



=Gear definitely not a capitalist plot=


 * Finance Minister Trevor Manuel, The Times, 12 December 2007**

In his article [|“Why things fell apart”] (December 7), Xolani Xundu makes two basic errors: first, he asserts that the government’s macroeconomic policy was forced on it by big business and, secondly, he says that the Growth Employment and Redistribution (Gear) strategy was “passed at cabinet level only because the ANC leadership knew it was going to be defeated if taken to parliament”.

These factual inaccuracies cloud what should be a healthy and robust debate about economic policy and our development path.

Contrary to Xundu’s assertion, Gear was tabled in parliament on June 14 1996. Prior to its tabling, on June 9 1996, President Nelson Mandela convened a meeting of leaders of the tripartite alliance at his Johannesburg home to discuss the broad elements of the Gear strategy. Comrade Blade Nzimande led the SA Communist Party delegation and Cosatu’s then deputy general secretary, Comrade Zwelinzima Vavi, led the union federation’s delegation. The meeting agreed on vital aspects of Gear and agreed to disagree on the fiscal stance.

Among the speakers in the parliamentary debate on June 14 1996 was Philip Dexter, who announced his participation as being [on behalf of] the Communist Party.

He said: “In terms of the macroeconomic policy framework that has been outlined, I think that the key positive aspects are that it builds on the Reconstruction and Development Programme (RDP).”

He cautioned: “There is one potential pitfall in the document … which the government is going to have to be cautious about, and that is the strong emphasis on deficit reduction.”

On the same day, Cosatu issued a statement through Vavi. The Saturday Star of June 15 1996 reported: “Vavi said the labour movement was pleased to see the incorporation of several points in the plan, including the focus on education, the use of public works programmes, the commitment to infrastructure development, and the linking of tax incentives to job creation schemes.

“These aspects, among others, had all been advocated by labour and had featured strongly in its own contribution to the economic policy debate. But Vavi also said Cosatu had serious reservations over other elements of the plan, in particular the ‘conservative fiscal policies’ the document intended to implement.”

Clearly the assertion that Gear was not tabled in parliament is incorrect. It is also evident that Gear was discussed with leaders of the tripartite alliance before it was tabled and that their input was taken into account. Leaders of the Communist Party and of Cosatu expressed support for elements of Gear, and also expressed their disagreement on other aspects.

Gear was thoroughly debated inside the alliance and in parliament.

It is also worth pointing out that the ANC’s 1997 Mafikeng conference adopted Gear as its macroeconomic strategy. The resolution included the clause: “ Gear aims at creating the environment of macro-economic balances required for the realisation of the Reconstruction and Development Programme … Gear does not seek to displace the RDP.”

In the 1999 general election, Gear formed the centrepiece of [the ANC’s] economic policies and voters backed the party in even larger numbers than in 1994.

Xundu’s assertion that Gear was a deal between government and big business must also be challenged. Gear, or the RDP, or any other elements of the government’s economic policies, was not forced on it by an interest group. The government’s economic policies emerged out of a clear analysis of the domestic and international economic context, of the needs of South Africans best expressed in the RDP, and of the capability of the state.

Gear was the ANC government’s macroeconomic programme to implement the RDP, which itself was an elaboration of the Freedom Charter. A consistent feature of policy since 1994 has been the understanding that we need higher economic growth to deliver on the ANC’s social mandate, and that the number-one priority of the government is to reduce poverty and improve the lives of all. The government’s approach to policy is that it must be informed by actual conditions and practical considerations rather than by narrow ideological dogma driven by self-interested groups. Gear sought to address a number of specific problems in the economy at the time.

Confidence in the economy is much higher now, as is reflected in higher investment by the public and private sectors. Investment as a share of GDP is higher than at any point since the early 1980s. The government is now a contributor to national savings and is able to raise investment in social and economic infrastructure. The economy has grown by an average of 5percent a year for almost four years, mainly as a result of a level of macroeconomic stability not seen in the economy in decades.

Robust debate is essential to our quest to improve public policy and enhance public participation in policy making. And the “commentariat”, of which journalists are a pivotal part, has a vital role to play in this. But it is incumbent on all participants to ensure that the debate is based on facts, not versions of the truth. **— Finance Minister Trevor Manuel**


 * From: []**

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