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What South Africa should do to pay for the vaccines? Grow the economy!

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Tim Cohen is editor of Business Maverick. He is a business and political journalist and commentator of more years than he likes to admit. His freelance work has included contributions to the Wall Street Journal and the Financial Times, but he spent most of his life working for Business Day. After a mid-life crisis that didn't include the traditional fast car, Cohen now lives in the middle of nowhere in the Karoo.

Last week in this space, I argued what the SA government should not do to raise the money to buy the Covid-16 vaccines. It should not levy more taxes. This week, I’d like to suggest what it should do.

First published in the Daily Maverick 168 weekly newspaper.

During a long career in financial journalism, I have read a small mountain of strategy documents trying to answer a very difficult question: What should South Africa, or any country, do to develop the economy? You can phrase the same thing a hundred different ways: How to decrease unemployment? How to create jobs? What is the role of the public and private sectors? What about education? Small business? Health?

And so it goes on. Many of these documents are enormously well-intentioned and have fabulously good advice. The latest example is the review of the National Development Plan. It’s a powerhouse of good sense, good ideas, sensible suggestions, and provides an excellent road forward.

Yet all these ideas seem to wash off government’s back. Some lip service is paid to the ideas in broad terms. Some are even implemented – very slowly. But, as a whole, government’s response is kinda blank.

Why do all these well-intentioned documents have so little effect?

Perhaps, it has been argued, they are too long? Too complicated? Perhaps it’s because there is an impasse in government, the result of factional in-fighting? Perhaps it’s because the opposition is so weak? There are all kinds of explanations.

Let me cut to the chase. There are two problems here.

Problem one: SA is just not a determined and righteous society. We don’t hold each other to account. We demand change, but in meaningless street protests that go nowhere and achieve nothing but more looting.

When I read what is coming out of the Zondo Commission, I can’t help feeling that in any other country the government would instantly collapse. Using taxpayers’ money to illegally and surreptitiously establish fake news outlets brought down an apartheid government, for heaven’s sake. The 1970s “Info Scandal” destroyed the government of John Vorster. The scandal was about government funds being used surreptitiously to start The Citizen newspaper as a tool to build support for the National Party.

But today? Nothing. Just silence. No mass resignations. No condemnation. Just a kind of laissez-faire, life-goes-on, throw-up-your-hands nothingness.

Problem two: There is a very poor concept of how to create value. Government seems to think creating work is the same as creating jobs. It seems to think distributing cash is the same as fighting poverty. That providing cash is the same as providing welfare.

The work boondoggle

In my small town in the Karoo, a large section of the local township community works for the government’s R4-billion-a-year Community Work Programme (CWP). They are very visible: the scheme supplies orange overalls and reflective jackets. It’s great to see at least some community members getting some kind of work.

But everybody knows it’s a boondoggle. Some real work is done, but often the workers mooch around the township, notionally cleaning up and fixing the roads.

Getting one of these jobs requires knowing the right people. Organisations once set up to help the community now participate in the local government structures that run the CWP. So they have mutated into a kind of low-level local mafia, with lots of people scratching each other’s backs and a lot of looking the other way. Strongmen have taken control of these organisations and dole out favours but keep most for themselves. Wonder why independent parties are taking over local government in small towns? This is the reason.

When the excellent amaBhungane did some work on the CWP earlier this year, it contacted the Department of Local Government for its response and was promised a reply “within an hour”.

Since then, the story records, “the minister’s spokesperson, Lungi Mtshali, has ignored all attempts to contact him, including 13 phone calls, three SMSes, two WhatsApps and two e-mails, though he did manage to successfully pocket-dial amaBhungane reporters on three occasions”.

Unless SA tightens the bonds of accountability and learns the difference between distributing cash and creating value, the economy will not rebound. But if it does learn the difference, it could really bounce. And then the R20-billion for vaccines will be like paying a parking ticket.

Not that anyone does. DM168

This story first appeared in our weekly Daily Maverick 168 newspaper which is available for free to Pick n Pay Smart Shoppers at these Pick n Pay stores.

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"Information pertaining to Covid-19, vaccines, how to control the spread of the virus and potential treatments is ever-changing. Under the South African Disaster Management Act Regulation 11(5)(c) it is prohibited to publish information through any medium with the intention to deceive people on government measures to address COVID-19. We are therefore disabling the comment section on this article in order to protect both the commenting member and ourselves from potential liability. Should you have additional information that you think we should know, please email [email protected]"

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