The dangers in overstaying your welcome

It is a known African belief that one should not invoke the names of those who have passed in a bad way. It is even frowned upon. However, you can speak of the dead to reflect the lessons gained from their lives.

Robert Mugabe recently passed away. The rise to power and long-term rule of the former Zimbabwean prime minister (1980-1987) and president (1987-2017) – he was the country’s leader for 37 years – provides valuable insights for current and future leaders.

Of particular interest are the dangers of overstaying your seat in power and the consequences for liberation movements once they acquire political power. In the context of African liberation movements, political power eventually reduces them to a club of the few, who become preoccupied with accumulation and proximity to business. They enrich themselves while the ordinary people are plagued by unemployment and poverty.

Little by little, South Africans are witnessing a ruling alliance that displays these traits or has become fully immersed in them.

Similar to Mugabe, the ANC is at risk of waning into a party that is more disliked for its bad deeds or failure to govern than it will be remembered for its good ones.

Its legacy may be forever tarnished. Moreover, a lesson from the later years of Mugabe’s presidency is that positive development can easily and quickly be eroded. A once-thriving economy, population and progressive country was reduced to a failed state leaving its citizens poor – and worse, turning them into immigrants in search of a better life.

So far in democratic South Africa, the trio of deeply rooted challenges (inequality, poverty and unemployment) is the monster that’s been lurking in the shadows. Everyone – from economist to unionist – has been warning for at least five years, in some cases 10, about the potential impact of those three factors on South Africa’s social economy and wellbeing.

The worst omen came to pass at the beginning of this month; the unintended effect of the three aggravated violent attacks on African nationals. How severe the trend may get will depend on how long the economy takes to recover, and that is contingent on politics. The threat may have stopped or retreated back into the shadows, but it could easily resurface – randomly, far more widely, and for longer.

The new dawn has passed

What is important now is the action that will be taken by the presidency. So far we don’t know what the current administration is about besides the new dawn, which has passed. One can even overlook the empty words of electioneering, but inaction at a time when it is most needed is unforgiveable.

Looking at the current mood of the country, inaction is unacceptable. Furthermore, the worrisome indicators about the economy are real: a revised GDP from 1.7% to 1.5%; the policy crisis related to state-owned enterprises (SOEs), Eskom in particular; rising unemployment; and the risk of recession.

So what other insights can be gleaned by observing the decline of Zimbabwe, besides the noticeable ones. Importantly, given the current economic and social conditions manifesting in South Africa, how does the country’s leadership avoid falling down the same rabbit hole?

Five moves we need to see

First, reform legislation that hinders the private sector in creating the low-hanging vantages that fire up the economy. Flexible labour laws, for example, provided that such flexibility is accompanied by firm rules and guidelines that carry punitive costs.

Read: Labour market change is necessary, and it needn’t hurt

Second, as government, discontinue the economic nationalism political speechmaking and promises. Such action has to take place within the ANC structures first, and then be cascaded to the party’s alliance partners. Zimbabwe’s case illustrates this point – rhetoric about a particular aspect of nationalism may appeal to party members and some in society, but it carries the far greater risk of putting off any investment. Furthermore, the character of the globalised economy has all but rendered nationalism mute, and to point to China as example, would be incorrect because even it has had to open its economy for foreign investment.

And who are we kidding, a thriving economy that creates jobs and puts enough money in Jane and Joe Citizen’s pockets so they still have a few rands left at the end of the month is better than an ideology courted by politicians seeking to acquire or stay in power.

Third, divert spending away from inefficient SOEs and towards better education and health services. However, the state has to clearly stipulate that this funding can only be availed if the expected improvements are realistic, with tangible results needing to be shown in due course, before any application for funding is approved. It must also use already-allocated budgets. In other words, while the SOE taps may be closed, it does not mean the state is flush with cash for education and health.

Read: SA’s leadership is missing in action

Finally, and perhaps more importantly, address and prioritise grievances raised by communities. Demonstrate that we have a presidency that is not afraid of putting pressure on the provincial governments and municipalities intended to service them.

There is no alternative. The country’s leadership has to find a way out of this spiral of worsening decline.

Indecisiveness and being missing in action will be catastrophic.

Source: moneyweb.co.za