2015-12-16

It is neoliberalism, and the power of capital that must fall

The political crisis unleashed by President Zumas irresponsible and irrational
decision making has turned into a crisis for democracy.
The South African public has been shown where the real centre of political
power is. Mr Zuma did not turn around because of representations made to
him over the weekend by representatives of Business, prominent public figures
or by shocked and side-stepped ANC, SACP and Cosatu leaders. He turned
around because of the outflow of hot money, the fall of the rand and pressure
from credit rating agencies. This is what unregulated finance means for South
Africa. The speculators and the finance departments of the big corporates
pressed their buttons. This time they reacted to a bizarre set of decisions by an
isolated President Zuma.
Forcing Zuma to retreat may be good in terms of making it more difficult for
his clique to plunder the resources of the country. But that it was the power of
the markets that forced Zumas hand must ring alarm bells for all committed
to democracy and to economic sovereignty. Be sure when progressive forces
propose policies aimed at reversing inequality, mass unemployment and
poverty, the markets will react in the same way or worse.
In the wake of this crisis, the constitutional centre-left is falling into the antidemocratic trap set by corporate finance and their right-wing pundits. To our
disbelief, the much respected campaign United against Corruption has put at
the centre of their demand that #Zuma Must Fall the concern that President
Jacob Zuma has attacked the independence of the treasury. This is damaging
and absolutely wrong.
The idea that the Treasury should be independent from political control is to
give more to unelected neoliberal technocrats. If the Treasury was independent,
it would make little difference which party is in government. The government

would not have the power to determine the budget and the priorities of state
expenditure. This would be determined by powerful bureaucrats connected to
the markets
The Treasury, technocrats and the Market shall of course
not dictate policy. There should be no independent Treasury! It is bad

enough that South Africa has an independent Reserve Bank. Based on this
independence the Reserve Bank will no doubt soon take another step
towards increasing interest rates again. This so called technical response is
nothing less than surrendering to the dictatorship of capital flows and ensuring
the continuity of profits to the financial speculators and hit men, no matter if
it provokes another recession and more hardship for the working class and the
poor.
Without questioning Mr Nhlanhla Nenes personal integrity and technical
qualifications, nor the integrity and qualifications of his predecessor and now
successor Mr Pravin Gordhan, let us remember that the Treasury for three
years has obstructed a cabinet decision to implement the National Health
Insurance scheme. Our opposition to Treasury whether under Nene or Gordhan
is with respect to their policy; a policy based on values that are warmly
supported by the bigots and the wealthy minority, leading lives of luxury in a
sea of unemployment and abject poverty. The leaders of the Treasury, old and
new, have refused, and will continue to refuse, to take the fiscal consequences
of the NHI reform and increase tax rates on the rich and on cash-flush
corporations. They will resist to the end the demand for Free Education. The
Treasurys policy, supported by the whole ANC government, is guided by the
neoliberal dogma that the public sector must remain small in the economy.
This policy puts everything out on tender, whether it is housing programs or
administration of the social grants. It boosts corruption among state officials
and get-rich-quick ANC cadres, who became cadres of capitalist business.
The economic policy of the ANC government must fall, regardless of who Mr
Zuma sends through the revolving doors of the Treasury. The left, the labour
movement, the movement for a new trade union federation and civil society
should be aware of its fundamental democratic values and advance our
countrys economic sovereignty, regardless of when the rand breaks through
the R16 mark to the dollar.
The days of Mr Zuma are numbered as a result of this latest scandal and the
current ANC government will not stay in power for ever. For this reason, we
will all need to reassert basic democratic principles and values against

the power of Capital. This power will try to subvert the policies of a radical left
government that listens to the people and is truly biased to the working class
and the poor. Power of money in the hands of the few will attack a government
that creates decent work for all, that implements a minimum wage, that seeks
to stop mining capitals destruction of the environment and takes far-reaching
measures to stop the violence against women and children; a government that
tries to fulfil a peoples mandate to implement socialist reforms and lay the
basis for a dignified life for all, in the here and now and not in some mythical
NDR future.
National Committee, DLF
For further comments:
Brian Ashely 0820857088;
Dick Forslund 0828957947