Publications
Partners
Cape Town - ANC leadership has told delegates at the party's national general council (NGC) meeting on Wednesday that bringing down the cost of doing business is key to reducing inequality.
According to a discussion document, cutting the cost of doing business is all part of a more "strategic approach to capital" the ruling party said has to be adopted in order to narrow the gap between rich and poor.
The ANC document acknowledges that, in spite of the country's economic growth over the last 16 years, it has slipped in the inequality rankings and is now one of the most unequal societies in the world.
"For a capitalist economy to succeed, the state has to keep business sufficiently profitable. It should act to raise costs for business only where required by the imperative of achieving a more inclusive and equitable economy," read the document.
"We can no longer afford to let individuals, departments or agencies raise the cost of doing business in line with their own priorities or through poorly thought-out measures at the expense of national needs and aims."
This argument is diametrically opposed to the investment-unfriendly proposals that have been tabled by the ANC's alliance partner Cosatu. Until now the trade federation has proclaimed the NGC a success.
Nevertheless, key to the ANC's proposal is what it calls a "trade-off" where government "systematically reduces the cost of doing business" and, therefore, creates sufficient space for using "sticks and carrots" to get business to contribute more towards creating a more equal society and economy.
"The state must respond more effectively to factors that impose unnecessary costs on business and the economy, notably around the value of the rand, the quality and cost of infrastructure, skills bottlenecks and the regulatory framework."
The ANC will argue that the benefits of this strategy include encouraging investment in projects that can create decent work on a large scale.
At the same time, the document argued that the state should continue to increase resources available for investment through the Industrial Development Corporation and rural development schemes.
It also argued for sector strategies in agriculture, mining, manufacturing and services, including the public service, to consistently focus on employment creation.
The document also acknowledges that the state needs to ensure a broader-based black economic empowerment programme as well as strengthen social protection in ways that "enhance access to economic opportunities" for the unemployed.
- Fin24.com
According to a discussion document, cutting the cost of doing business is all part of a more "strategic approach to capital" the ruling party said has to be adopted in order to narrow the gap between rich and poor.
The ANC document acknowledges that, in spite of the country's economic growth over the last 16 years, it has slipped in the inequality rankings and is now one of the most unequal societies in the world.
"For a capitalist economy to succeed, the state has to keep business sufficiently profitable. It should act to raise costs for business only where required by the imperative of achieving a more inclusive and equitable economy," read the document.
"We can no longer afford to let individuals, departments or agencies raise the cost of doing business in line with their own priorities or through poorly thought-out measures at the expense of national needs and aims."
This argument is diametrically opposed to the investment-unfriendly proposals that have been tabled by the ANC's alliance partner Cosatu. Until now the trade federation has proclaimed the NGC a success.
Nevertheless, key to the ANC's proposal is what it calls a "trade-off" where government "systematically reduces the cost of doing business" and, therefore, creates sufficient space for using "sticks and carrots" to get business to contribute more towards creating a more equal society and economy.
"The state must respond more effectively to factors that impose unnecessary costs on business and the economy, notably around the value of the rand, the quality and cost of infrastructure, skills bottlenecks and the regulatory framework."
The ANC will argue that the benefits of this strategy include encouraging investment in projects that can create decent work on a large scale.
At the same time, the document argued that the state should continue to increase resources available for investment through the Industrial Development Corporation and rural development schemes.
It also argued for sector strategies in agriculture, mining, manufacturing and services, including the public service, to consistently focus on employment creation.
The document also acknowledges that the state needs to ensure a broader-based black economic empowerment programme as well as strengthen social protection in ways that "enhance access to economic opportunities" for the unemployed.
- Fin24.com
