Vavi: Macro-economic policies must change
Fin24

Vavi: Macro-economic policies must change

2014-06-18 09:06

Johannesburg - The country's economic structure needs to change if 5% growth is to be achieved, Cosatu general secretary Zwelinzima Vavi said on Tuesday.

"From a Cosatu perspective we can never achieve the fundamental change we need in South Africa until we recognise that most of our wounds come from the fact that we inherited a growth path from the apartheid era," he said after President Jacob Zuma delivered his State of the Nation address in parliament.

"We need to change that structure, we need to move away from an economy which is dominated by mining, finance, and heavy chemicals."

Vavi said more focus needed to be put on industrialisation.

He said Zuma did not go "far enough" in his address on industrialisation.

Macro-economic policies needed to be changed.

Vavi welcomed Zuma's focus on the energy sector. However, he is not a fan of nuclear energy but supports renewable energy.

He bemoaned the fact that there have been forced power cuts again because of the strain on the country's power grid.

"We can't go on with these lights on, lights off," Vavi said.

Comments
  • John Williamsii - 2014-06-18 09:16

    Is it the guy with the PHD in economics?

      Chris P Noodle - 2014-06-18 09:42

      None so blind as those that cannot see that its the ANC policies, that gives labour more rights than business and penalising business owners on skin colour through BEE, that have brought us to this. Until these policies are reversed expect a continual decline into a failed state

      NickvanGraan - 2014-06-18 09:44

      Yip, I like you as a person Vavi, but I'm afraid when it comes to advice on how to grow the economy you are one of the last people I would take seriously! You and your mates in the SACP (in leadership by default) are the reason we are growing backwards.

      Hugo Monterro - 2014-06-18 10:13

      He is just another ANC IMBECILE. Loads of stale air but never any specific, concrete ideas just plain waffle.

      Michael Heys - 2014-06-18 10:20

      We certainly need to export value added product like manufactured goods, instead of exporting raw materials. So in this case Vavi is talking sense. The only problem is our unionised work force which wants as much money as possible for as little work as possible. That is why we are un-competitive internationally.

      Yin Yang - 2014-06-18 10:30

      Current failure is not the result of the past...it's the result of not being able to learn from it, changing it and maintaining it that benefits SA citizens(and not a select few)

      Joseph Shange - 2014-06-18 10:41

      There was talks of also removing Indians from BEE and AA benefits about 2 months ago, is that still on the cards?

  • Francois Botha - 2014-06-18 09:22

    Oh look. Blame the past again. How original.

      Carling Blacklabel - 2014-06-18 10:43

      lol, the "A" word again!!

  • nakitalee.denobrega - 2014-06-18 09:31

    Vavi you obviously don't understand economics at all! A country needs to produce the product which it is most abundant and most intensive in. We have labour but not enough skilled labour. You need to get your facts straight before you think you know anything about economics. We are rich in mining. You should be focusing on how to improve the sector and not try and be an economist

      Positive Citizen - 2014-06-18 10:23

      i believe he is talking about taking our raw materials and processing them in RSA. currently most is shipped overseas and then sold back to us etc.

      lacrimosewolf - 2014-06-18 10:48

      Beneficiation has been talked about since the 1980s. We are still waiting! Guess what the barriers are - very well established and sophisticated competitors, electricity (surprise!), skills, someone willing to invest with a very long wait for a return

  • PhilMemon - 2014-06-18 09:43

    Actually I agree with you Vavi. More focus needs to be put on industrialization, which in today's world means MECHANIZATION and CAPITAL INPUTS are needed to replace the ridiculously unproductive labour sector whose unrealistic demands are destroying the economy as a whole. We can all learn from Elon Musk's Tesla plant in Fremont!!

      Siyabonga Biyela - 2014-06-18 10:33

      And export everything we make, Phil...? Seeing there won't be demand locally if all people are unemployed?

  • Mbuti Manopole - 2014-06-18 09:46

    Until we recognise the wounds of our growth path we inherited from apartheid era ? ? Dont u have something valuable to share ? U r still stuck in the past and thats so booring ! Mxm

  • Lunetic Mental - 2014-06-18 09:53

    Its not necessary to re-invite the wheel. Just get rid of the unions!!

  • Hennie de Ruyter - 2014-06-18 09:54

    Industrialisation means a high focus on education, especially mathematics and science. Bring back discipline to the classroom, have teachers who see teaching as a calling rather than just a salary, bring back Higher Grade level subjects and review the way exam papers are marked.

  • Reality - 2014-06-18 09:55

    > From a Cosatu perspective we can never achieve the fundamental change we need in South Africa until we recognise that most of our wounds come from the fact that we inherited a growth path from the apartheid era And we must recognize that the growth path made South Africa the largest country by GDP in Africa. Does this mean we were lucky to have had apartheid?

  • Nichola Smith - 2014-06-18 10:06

    I cringe! Everyone looking the part just to collect a fat check from the tax man each month and go home to enjoy their expensive lifestyles.

  • jeremy.howell.52687 - 2014-06-18 10:10

    No one can take this man seriously! His track record is a joke.

      Vaal Koos - 2014-06-18 10:33

      He must shout the odds now and then ,otherwise he will be forgotten

  • John Tribelhorn - 2014-06-18 10:15

    but if mr vavi is so concerned about industrialisation, the we must stop crawling up China's poephol all the time and certainly not complain about our economy being dominated by finance.

  • Mandy Ferreira - 2014-06-18 10:16

    BEE MESSED UP EVERYTHING..... Allow the Best to lead and the uneducated to follow,and not the other way round.

  • John Stoltz - 2014-06-18 10:32

    Vavi, please understand two things:- (1) COSATU only has the interest of union members who pay their fees every month and do not care for the unemployed!! (2) COSATU and all the restrictive labour legislation, B-BBEE, AA and militant unions will never create one single job!! Stop pulling out the apartheid card when run out of ideas!! Get to know the principles of free market enterprises and catch a wake up!!

  • Rudi Seyfarth - 2014-06-18 10:36

    If your members are more responsible and refrain from unreasonable strikes, and you as leaders would rather sit and discuss your demands with the employers as to what seems reasonable under the present economic conditions, we could improve on our economic growth. Instead of trying to outsmart and outbid other unions in demand, start thinking what is viable for the economy. An economic stabile country can do so much more for the citizens accept if the profits are reaped up by the selected few.

  • David Lardner-Burke - 2014-06-18 10:54

    Your macro economic policies has been replaced by a micro economic progress. It does not take a rocket scientist to figure our what is feeding the cause. Introduce equality without discriminating against race, cut red tape created by bureaucrats who are now threatening jail terms for not complying and you will have a better chance of a sustainable economy.

  • Joe Black - 2014-06-18 11:07

    Jaja! Over-zealous unions are the number one factor holding our economy back. So he should not start with his cheap talk now that the popo is hitting the fan. Everybody likes to party, but then you have the hangover.

  • Ted Hughes - 2014-06-18 11:43

    Do people like Vavi understand what the Labour act has done for the country. There is no incentive for an employee to work, productivity is pathetic and they want us to employ more people!! Vavi, you and the government need a wake up call. Stop thinking about votes to stay in power and think what is right for the country. Stop blaming apartheid YOU and the others have created this situation with your socialist policies - what happens in the next few years when the government is unable to maintain the social grants???

  • sxp - 2014-06-18 16:34

    I agree Remove the regime from undue influence on business Remove AA Remove BBeEE make trikes illegal.

      Koekie Hall - 2014-06-19 08:31

      Make trikes illegal? Nooit hey! And what about bicycles and quadbikes? :)

  • louis.elst - 2014-07-12 14:46

    Do you understand the meaning of macro economics Looks like it as you are the one trying to destroy the manufacturing industry Idiot

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