The ANC’s ideological approach, based on developments in the 20th century, has led it to implement misguided policies in South Africa that fail to grow the economy.
These policies have been combined with the ANC’s implementation of cadre deployment, which has resulted in high levels of incompetence throughout the state, while exacerbating corruption.
As a result, South Africa’s economy has stagnated over the past 15 years, and the state’s financial health has significantly deteriorated.
This is feedback from Efficient Group chief economist Dawie Roodt, who recently explained how the ANC’s ideological bent has resulted in poor economic outcomes in South Africa.
Speaking to State of the Nation, Roodt explained that the ANC’s policies are fundamentally based on the theories developed by Karl Marx in the 19th century and applied in the 20th century.
“The centre of this ideology is the labour value theory, where everything is built around the importance of labour and how it has supposedly been exploited,” Roodt said.
“That is the origin of the ANC and forms the basis of its ideology. Everything is about the relationship of exploitation between workers and the capitalists.”
Roodt said this thought process was completely legitimate in the 19th and 20th centuries, when workers were exploited through low wages, poor working conditions, and minimal protection.
However, in the 21st century, this ideology is far less relevant and effective, as modern economies operate in fundamentally different ways.
South Africa’s economy has become increasingly high-skilled and services-based, which requires a different way of thinking about value and growth.
“Flowing from their ideology are their various policies. These policies are based on things like expropriation, centralisation, and redistribution, rather than creation and expansion,” Roodt said.
Fundamentally, the ANC’s ideology results in it being highly interventionist in the economy, with it viewing the role of the state as central to prosperity and well-being.
“The state wants to and is responsible for everything. Thus, the ANC as the ‘vanguard party’ is meant to protect workers from exploitation and create wealth through the state,” Roodt explained.
“The things that the ANC stands for today flow from their ideology, which was more applicable a hundred years ago. The ideology is old and misguided. Thus, the policies are old and misguided.”
Cadre deployment disaster
The ANC’s implementation of outdated and poor economic policies has been coupled with cadre deployment throughout the state.
This has had a disastrous impact on service delivery, economic growth, and the well-being of citizens, despite the ANC’s intentions.
“Cadre deployment is fundamentally about employing people because they support your political party and not necessarily because they are good at what they are doing,” Roodt said.
“Another word for cadre deployment is incompetence, with this being seen throughout all levels of the state and perhaps most visibly at the local government level.”
The lack of skills and capacity at a local level has resulted in many municipalities being unable to adequately collect the revenue needed to pay for the services they provide.
A similar situation has played out at South Africa’s state-owned enterprises, with periods of mismanagement resulting in deteriorating service provision and financial collapse.
Roodt also explained that this translates into widespread corruption throughout the ranks of the government, as individuals develop patronage networks.
“The result of that is what we have today in South Africa. We have a stagnant economy, declining service delivery, and a state in poor financial health,” Roodt said.
Over the past 15 years, the party’s rule has also translated into a steady decline in the rule of law in South Africa, which hampers investment and economic growth.
Roodt said that this trend is unlikely to be reversed, with the ANC remaining committed to its misguided policies and cadre deployment.
“I am afraid to say, if you look at the South African economy, as long as the ANC is the dominant political party, this economy will not grow,” Roodt said.
“It is like asking the Pope to change his religion. The religion of the ANC is a developmental state. They want to centralise everything and control everything. It does not work in a modern economy.”
Roodt said it is highly unlikely that the ANC will change its religion, with the party showing little desire to course correct in the near future.
